Annual reports Bilanz and a HarbourClub jury put the best annual reports on the podium.
In most companies, work on the next annual report is already in full swing. Countless meetings are held to discuss how it should be structured, which photo concept should be followed and what should be presented, which data it should contain, which design concept and scope are appropriate - and so on. The overriding question is always: What do the users of our report want?
For the first time this year, a jury has been created for the overall assessment of the best Swiss annual reports, which includes professional users of annual reports alongside the presidents of the design and value reporting juries. They come from the fields of auditing, journalism, corporate communications and business communications. These people are able to say what customers expect from a report, what makes it good or bad overall. We have therefore filtered out the ten most important criteria that must be fulfilled for a good annual report from their discussion. The order of the criteria below is arbitrary and says nothing about their relative importance. In practice, they are closely interlinked anyway.
A good annual report ...1. ... discusses the businessThe discussion of the company's own business is the real purpose of an annual report. Some companies do this particularly well. "In the case of Novartis, it was impressive how the company was able to place its own business in a larger context," says Gaby Tschofen, Head of Corporate Communications at Barry Callebaut, praising the pharmaceutical multinational's report. For example, a text about the pharmaceutical giant's blood pressure therapy begins with a numerical overview of the global extent of the problem of high blood pressure. In the case of the winner Straumann, Tschofen is impressed by the dental implant manufacturer's explicit approach to the issue of product safety, which is particularly vital for a medical company. Despite the refreshing texts and images, the company succeeded in maintaining the seriousness required for this business. Journalist Anne-Marie Nega-Ledermann sees another example of Nestlé's successful communication of its own business in the report on water management that accompanies the food multinational's annual report: "The report shows the problems that arise worldwide in this area and ventures a look into the future." At the same time, Nestlé uses the example of water to explain its business principles in a comprehensible way. A good annual report must not present the company's profession in an uninspired way. It needs more: the report should arouse interest in the business or ideally even inspire.
2. ... conveys the corporate values and cultureIn addition to the business, an annual report should also convey the values of the company and its culture. Although this is closely linked to the communication of the business itself, it deserves a point of its own, as the discussion has shown. Peter Vetter, Chairman of the Design Commission, praises Migros' "unconventional report", for example, because it is "extremely coherent with the values and corporate philosophy" of the two-million-member cooperative. It is very understandable that the report is aimed specifically at a younger audience: "This audience will determine the future of Migros."
The report by tour operator Kuoni also praises the values shown: "With its very appealing image concept, the company has not only captured the focus of tourists and shown beautiful beaches," emphasizes communications specialist Andreas Jäggi, "the company has also shown sensitivity and respect for the foreign cultures to which it offers trips." The explicit presentation of the basic ethical attitude and so-called corporate citizenship in the texts of second-placed Novartis also came off very well: "Many others are still lacking something similar," points out Professor Rudolf Volkart, President of the Value Reporting jury.
3. ... is credibleAn annual report can be well written, proclaim ethical principles and have a hip design: If readers do not recognize the company behind it, the report is still bad because it is not credible. What credibility means, on the other hand, is shown by the statement made by Gaby Tschofen about the orange giant: "This is Migros as I know it, as it strongly corresponds to my own impression of the company." In its design, language and information, the Migros annual report bears witness to the people-oriented and people-owned company that this cooperative group ultimately is. Tschofen added that Kuoni is less exemplary because the travel company's report does not adequately address the internal changes of the past year, "although the company has really been shaken up". Credibility therefore includes addressing significant events in a company's financial year, even if they are unpleasant.
4. ... introduces peopleAn annual report should not only convey business and data, but also bring the people who are related to the company closer - such as employees or customers. If they are depicted or represented appropriately, the company is communicated particularly effectively. This criterion also emerged in several votes during the debate on various reports. "SBB makes a noticeable effort to respond to its own employees, which I particularly liked in addition to the successful discussion of strategy in the report." Philipp Hallauer, Chairman of the Board of Directors of KPMG Switzerland, commented. Nestlé is mentioned as a negative example. Peter Vetter, president of the design jury, regrets that the food multinational's report once again looks more like a "product catalog". As recently as 2005, the company emerged as the overall winner of the balance sheet rating - partly because it had succeeded extremely well at the time in using employee portraits to convey an impression of how international and in how many cultures the multinational is active.
It is also important how the management is presented - and that those responsible appear early on in the report. The fact that the CEO of St. Galler Kantonalbank, for example, is only introduced on page 56 of the report is not well received by the expert jury.
5. ... arouses emotionsThe discussion always revolves around the feelings an annual report triggers in a jury member. In particular, the overall winner Straumann was clearly praised by everyone on the basis of this criterion. Every few pages in the first part of the report there is a full-page picture of a smiling face of a man or woman. The teeth are clearly visible each time. The way in which the dental implant manufacturer is able to arouse sympathy for its business among readers is very well received: "They have succeeded in creating a tangible link between the product and its significance for human life," says Andreas Jäggi.
"This approach is ingenious," comments Philipp Hallauer. No one sees it differently. The Novartis report is also praised for its emotional content, especially because of the images of illnesses: "The cover image alone is so emotionally powerful, it almost overwhelms you," says Gaby Tschofen. In contrast, the report by SBB, which came third in the overall rating, was criticized. Here, the emotional communication of the core business shows shortcomings: "The joy of travel hardly comes across," criticizes Andreas Jäggi. The report is too technical.
6. ... is comprehensibleAn annual report should be easy to understand for a wide audience and especially for those who are not familiar with the special features or complexities of a company. How well this has been achieved is also the subject of much discussion in the jury's assessment of the reports. SBB, in particular, was praised: "This public company presented a very transparent and easy-to-read report," emphasized Peter Vetter. "The examples of SBB and Migros show how highly complex topics can be communicated well." Vetter sees the Novartis report as a contrast to this: "The information is too complex, anyone who really needs the data will get it elsewhere and doesn't need this book."
However, the jury is not unanimous on this point. Andreas Jäggi vehemently disagrees with Peter Vetter: "The Novartis report is written in good language and is very easy to read; even the figures section is well explained, even for non-experts." There is agreement that good readability is a key criterion.
7. ... is a pleasure to read "You either read an annual report like a book, or you can't consume it," says Peter Vetter. Overall winner Straumann scored particularly well in this criterion: "This report starts to communicate with me right from the cover, and the text in the report also captivates you," says Gaby Tschofen. "Even the first few pages decide whether you want to read on." Migros also scores particularly well in terms of reading enjoyment: "You could read this annual report on the train for sheer pleasure and also enjoy looking at the pictures," enthuses Andreas Jäggi.
8. ... gets to the pointAn annual report is a pleasure to read, especially if it is not unnecessarily pompous. In this respect, Novartis was criticized in the debate, although its report was ultimately voted second best. "The wealth of information that comes at the reader here is like a hammer," criticizes Rudolf Volkart. "Many people will capitulate to documents with such a large scope and level of detail." The SBB report and Straumann's report, on the other hand, are particularly praised for their short and targeted texts. Anne-Marie Nega-Ledermann would have liked the Novartis report to have been divided into several sub-reports, but this met with little approval: "Everything in a single book is better," comments Phillip Hallauer. This opinion is shared by the vast majority of the jury members. The fact that Nestlé wrote its own book on water management to accompany the report caused some to shake their heads: After all, the water business is part of Nestlé's core business. By splitting it into several reports, a company makes it difficult for readers to clearly recognize the core messages.
9. ... can be read from any point in the textA good annual report also depends on how well it is organized and structured: Philipp Hallauer has words of praise for the reports from Straumann and Novartis: "With both, you clearly know where you are within the annual report on every page." Important for this are headers or footers on each page that refer to the chapter and possibly even - as with Novartis - to the chapters before and after. But other elements can also be helpful, as the example of Novartis also highlights: "Each major chapter is introduced very well and clearly," says Gaby Tschofen. The fact that Novartis summarizes the most important points in a box highlighted in yellow at the beginning of each chapter is also well received: "If you read these short texts, you've already got the gist of it," she says.
10. ... also depends on the companyThe judgment of an annual report also depends on the conditions under which it is prepared. These can be related to the size of the company and the resources available. This is clearly evident in the assessment of Straumann's report: "The fact that a company the size of an SME has produced such a good report is particularly impressive," says Professor Volkart. Peter Vetter expresses it not much differently: "The fact that this small company can achieve such quality would be reason alone for an award." The difference in size between Straumann and Novartis, for example, is indeed striking: the dental implant manufacturer employs 1,500 people, Novartis over 100,000.
The complexity of the business to be presented can be a difficulty when creating an annual report. Straumann also scored points in this respect - arousing interest in dental implants is more challenging than advertising the products of a travel agency such as Kuoni.
One challenge that companies with previous successful annual reports in particular face is to maintain the high level. Last year's surprises are no longer a draw this year, but care must be taken to ensure that the report follows on from previous years. Peter Vetter puts it this way: "A company must give its reports consistency and yet continue to develop them." It will be interesting to see how Straumann, Novartis, SBB and others will accomplish this task next year.
Markus Diem Meier
These are the best annual reportsOverall rating1. Straumann
2. novartis
3. SBB
Category Design1. Valora
2. SBB
3. migros
Category Value Reporting1. UBS
2. roche
3 Thurgauer Kantonalbank