The Investor Relations Society Best Practice Awards 2012

Entry form

Entries for awards 1-7are open to all companies quoted on a recognised stock exchange. Entries can be submitted either by the company themselves or by their representative. In order to help you with your submissions we have provided guidance of the key criteria which the judges will be looking for in the awards. These are available on the IR Society’s web site. You should also refer to the IR Society’s Best Practice Guidelines.

Please enclose 1 printed copy of your annual reportand any other supporting documentationfor each entry in categories 1, 2, 3, and 7.

The awards are open to any entity publishing accounts between August 2011 and July 2012. Websites will be reviewed during August 2012.

The cost of entry to one award category is £60 + VAT. Subsequent categories for the same company are £30 + VAT per category. If you enter for 5 or more categories the cost is £180 + VAT . Please complete the attached application form.

To assist with the judging process, please indicate in the Awards Checklists column the pages or sections of your annual report, website or investor presentations where key information is covered.

All entries must be received by close of business on Friday 20 July 2012.

Please send your entries to:

The Investor Relations Society

3 Bedford Street

London WC2E 9HD

The Investor Relations Society Best Practice Awards

Entry Form

Company Name
Classification / FTSE100
FTSE250
Small Cap & AIM
International
Contact name
Address
Email address
Telephone
Categories for which entered / Please tick
  1. Best communication of strategy, performance and KPIs*

  1. Best communication of governance and risk*

  1. Best communication of corporate responsibility *

  1. Best use of social media tools to support investor relations communications

  1. Most effective use of innovative online technology within a corporate website

  1. Best corporate website for investors
  • International
  • Small Cap & AIM
  • FTSE 250
  • FTSE 100

  1. Award for the most effective overall Annual Report (printed and online)
  • International
  • Small Cap & AIM
  • FTSE 250
  • FTSE 100

*Through annual reports, websites and investor presentations

Payment
I enclose my remittance for :
1 category / @£60 + VAT (£72.00) / £72.00
[ ] additional category(ies)
for the same company* / @£30 +VAT (£36.00)
Total
OR
5 or more categories for the same company* / @£180 +VAT (£216.00) / £180.00

*note – only multiple entries for different categories for the SAME company attract the discount.

Please enclose your remittance made payable to The Investor Relations Society with your submission. A VAT invoice will be issued if requested. We regret we are unable to accept entries which are not accompanied by payment.

Payment Method

Our preferred method for payment is debit/credit card or cheque (please note we cannot process AMEX cards)

Debit or credit card Visa MasterCard Switch/Delta

Please charge my credit/debit card for the amount of£______

Credit card number

Expiry date ______Issue no (Switch/Delta) ______

Name of cardholder______3 digit security no.

Terms and conditions:

The Investor Relations Society reserves the right to alter the terms of these awards.

The verdict of the judging panel is final and no correspondence can be entered into in respect of any of the awards.

Awards checklists

To assist with the judging process, please indicate in the Awards Checklists column the pages or sections of your annual report, website or investor presentations where key information is covered.

  1. Best Communication of strategy, performance and KPIs (Through annual reports, websites and investor presentations)

We will be looking for those who have successfully incorporated the requirements of the Companies Act 2006 and best practice guidance into their reporting. Companies will also be expected to give a fuller discussion of the business model in line with the requirements of the Corporate Governance Code.

Business review requirements CA 2006 S417 / Best Practice / Awards
Checklist
1. ‘a fair review of the company’s business’ /
  • Sensible and understandable explanation of the company’s business model
  • Balanced perspective and clear statement of the company’s strategy which explains how the company generates or preserves value over the longer term
  • Explanation of how the strategic priorities will be achieved and are linked to the company’s objectives
  • Commentary that shows how the company’s strategy is delivering performance
  • Good use of key performance indicators, including both financial and non-financial measures
  • Clear ownership by management of the issues
  • Description of the company’s markets, including regulatory environment and competitive position.
  • Support qualitative statements with quantitative evidence, using external sources where possible

2.‘the development and performance of the company’s business during the financial year’ /
  • A balanced review of the financial performance for the year which does not obfuscate poor performance and provides adequate discussion of both positive and negative events or developments
  • clear linkage in the narrative report to the financial results as disclosed (ie not adjusted for non statutory items which are not reconciled in the accounts)
  • Commentary related to the group strategy and progress in achieving objectives. This should be consistent with other communications and avoid bland, motherhood statements
  • Good use of key performance indicators, including both financial and non-financial measures
  • If multi-year trends are available use them to present underlying performance

3. ‘the position of the company’s business at the end of that year, consistent with the size and complexity of the business’ /
  • Provide understandable analyses of the key balance sheet measures at the period end
  • Appropriate review of trading trends and prospects
  • Provide an update on the key risks and uncertainties at the period end
  • Include detail on the drivers of operational performance at the divisional, product and regional level

4. ‘analysis using financial key performance indicators’ /
  • Explain why these have been selected and the basis of calculation
  • ‘Key’ means key – don’t include every KPI you can think of and obscure the ones that are most important
  • KPIs should have longevity i.e. can be used consistently from year to year
  • Explain positive and negative trends in KPIs

5. ‘a description of the main trends and factors likely to affect the future development, performance and position of the company’s business’ /
  • Clearly highlight the key trends (cyclicality, seasonal factors etc.) that have and will influence performance.
  • Provide a balanced commentary on the risks etc. presented by these trends.
  • Describe the strategic steps that are or have been taken to mitigate the impact of these measures

6. An integrated business model /
  • Does the narrative link together to describe an integrated business model ?
  • Is it clear how the company’s strategy balances risks and rewards to deliver performance which is measured through KPIs and results in value for shareholders?

UK Corporate Governance Code requirements
7. Code provision C.1.2 /
  • The directors should include in the annual report an explanation of the basis on which the company generates or preserves value over the longer term (the business model) and the strategy for delivering the objectives of the company.

  1. Best communication of governance and risk (Through annual reports, websites and investor presentations)

Best Practice / Awards
Checklist
1. Compliance with the combined code /
  • Where there has been non-compliance, a clear statement of the reasons why the Board decided not to comply. Avoid ‘boilerplate’ or ‘copycat’ wording.

2. Governance /
  • A clear summary of the company’s corporate governance framework.
  • Evidence of integration of corporate governance standards throughout the business.
  • Clear linkage between directors’ remuneration targets and the company’s financial objectives and discussion of actual remuneration compared to financial performance.
  • Clear explanation of, and reasons for, payments made to former directors.
  • Use of graphs and charts to supplement explanations.
  • Linkage between business strategy and corporate governance.
  • Explanation of the skills and experience of the Board members. Explanation of what relevant skills the Non-Executive board members bring to the company.
  • Evidence that the Board has communicated effectively with shareholders.

3. Risks /
  • Clear discussion of risks, highlighting those risks which are specific to the company’s operations.
  • Digestible presentation of the key risks and uncertainties and how the management have addressed them in order to minimise their impact on performance, or to exploit them to gain competitive advantage
  • Identify external risks (which may not be controllable by management) and internal risks which should be controllable
  • Avoid a legalistic approach to narrative and explanation if possible
  • Explanation of how risks are managed throughout the business, including discussion of the risk identification process and how risks are monitored throughout the business and communicated to the Board.
  • Evidence that the Board understands the risks inherent in the operations of the organisation, the strategic business decisions which it has taken and has monitored them.
  • Evidence that the board has, at least annually, conducted a review of the effectiveness of the company’s risk management and internal control systems and reported to shareholders that they have done so. The review should cover all material controls, including financial , operational and compliance controls. (UK Corp. Governance Code C.2.1)

  1. Best communication of corporate responsibility (Through annual reports, websites and investor presentations)

The scope of corporate responsibility reporting has expanded significantly. Many companies have now built up a record of achievement against which their performance can be measured. We are looking particularly for those companies that have integrated corporate responsibility into their business model and management targets. This award will cover CR reporting in the annual report, website and other CR reports. Please reference your checklist to the appropriate source.

Key Elements / Awards Checklist
Governance /
  • Indication of Board-level responsibility for CR
  • Type and frequency of CR information provided to Directors
  • CR Committee, ideally with senior management and business unit participation
  • Integration of CR into normal Risk Management
  • Policies and, where relevant, management systems in place to achieve CR objectives,
  • Information on monitoring & evaluation process
  • Inclusion of CR performance in executive remuneration policies

Link to business strategy /
  • Reflection of marketplace context, ideally referring to regulations, policy, & external studies or reports
  • Clear distinction between strategic issues (for which KPIs) and non-strategic issues (for which perhaps indicators are provided)
  • Forward looking perspective
  • Information on both Group and Business Unit / Division

Information: data, targets, indicators /
  • Inclusion of both Management objectives (e.g. roll out diversity policy, conduct employee survey) and, in particular, performance targets (e.g. reduce water consumption by x%, increase key staff retention to y%)
  • Clear graphical representation of performance data
  • Time series data, ideally with reference to benchmarks (industry or other)
  • Clear distinction between KPIs and indicators
  • Comprehensive geographic coverage (e.g. not just data from country where HQ is based)
  • Appropriate aggregation: where relevant, business unit / division-specific data or country-specific data is provided (i.e. not just aggregated Group data, which may hide discrepancies in performance)
  • Data is audited, ideally by process that includes independent third parties (e.g. stakeholder panel review of internal controls or independent auditor)

Stakeholder engagement /
  • Existence of formal stakeholder engagement process
  • Prioritisation of key stakeholders, and explanation why
  • Ongoing two-way communication with key stakeholders
  • Reflection of how engagement led to changes in objectives / activities
  • Contribution to sector-based initiatives or policy debates/development

Reflection of both risks and opportunities arising from CR
Consideration of short, medium and long-term implications, presented in context of marketplace discussion
Honesty /
  • Honest reflection of weaknesses or uncertainties (narrative)
  • Clear indication of where targets have been missed
  • Indication of remedial action taken, or changes to policies
  • Indication of lessons learned (e.g. from failure to hit targets)

Contact person, or process for comment /
  • Name and contact details provided for Group
  • Name and contact details provided for countries, business units, divisions
  • Commitment to respond to comments within set timeframe

Compliance with relevant standards or codes, including /
  • GRI
  • UN Global Compact
  • AA1000 or ISAE3000
  • ISO 14001, SA8000, OHSAS18001
  • FTSE4Good or DJSI
  • BITC Index

4.Best use of social media tools to support investor relations communications

For these awards we are looking for companies that are using social media tools in a resourceful and appropriate way to improve their investor communications.

The judges will be looking for the evidence which you supply to show how you have developed your strategy, targeted appropriate channels and controlled the dissemination of information in a cost effective and timely way.

Please also see the ‘Best Practice Guidelines for using social media in an IR context’ published on our website.

Key Elements / Best Practice / Awards Checklist
Strategy / What is the objective of your social media strategy?
How have you decided which communities you want to develop a relationship with?
Have you set KPIs against which the success of your engagement can be measured?
Howhave you decided on the appropriate channels to use?
How have you decided on the information to make available on social web sites?
Who is authorised to engage on social media platforms on behalf of the company?
How is engagement controlled?
How do you ensure that information is updated in a regular and timely manner?
Control and governance / Evidence that you provide clear guidance explaining what usage is acceptable both at and away from the work place (e.g. use of social media at work / discussion of work-sensitive information, etc.).
Evidence that you provide employees who are authorised to use social media on the company’s behalf with guidelines as to how and when to engage and/or respond.
Evidence that authorised employees have been made aware of the concept of inside information and the requirements not to disclose any such information that has not already been made public through authorised channels.
Integration / Is your corporate website updated to improve the linking to any social media accounts and to facilitate the sharing of website content with other social media platforms.
  • Incorporating links to social media accounts on key pages in the site
  • Adding ‘sharing’ functionality across the site to encourage the distribution of links back to the website across social media platforms
  • Adding ‘sharing’ functionality for specific elements (eg. documents, images, video), to encourage distribution and usage of these across social media platforms
  • Dedicated social media pages to act as a hub within the website
Is your social media presence promoted on other digital and printed collateral, at events, etc.
Results / Provide details of the social media channels on which you are active.
Please provide examples of successful engagement through social media.
Provide examples of innovation in your use of social media.
How do you measure the success of your social media engagement?

5. Most effective use of innovative online technology within a corporate website

In this award we are looking for those companies which have constructively embraced new technology to help them get their investor relations message across. We will be looking for tools and technology that enhance or support themessages; we’re not interested in technology for the sake of it. It must have a valid purpose such as helping web users to gain a greater depth of understanding.

Provide appropriate examples / Awards
Checklist

7. Best Corporate website for investors

Websites are the first port of call for most people who are interested in finding out about a company. We are particularly looking for innovation and ease of use – not just volumes of information.

Key Elements / Best practice / Awards Checklist
Awareness /
  • The web site of a listed company should be easily accessible by all investors. For a website to be effective it needs traffic. There are a number of ways companies can encourage this.

Usability /
  • There is no point developing a useful website if it cannot be easily accessed by a wide audience.
  • The over-riding message is ‘keep it clear and simple’.

Accessibility /
  • To comply with UK legislation you should ensure that your website is fully accessible.
  • Website accessibility must comply with at least Priority 1 of WCAG 1.0 or level A of WCAG 2.0.
  • You will need to certify that your website reaches this minimum standard
  • In the scoring process some simple accessibility tests will be performed and sites which fail to pass will not be considered for awards

Sitewide /
  • See best practice principles

Navigation /
  • A prime requirement of any good website is that it should be easy to navigate and intuitive to use.
  • Navigation should facilitate quick and easy access to all categories of information on the site.

Timeliness /
  • Information should be made available to everyone at the same time, providing equal access to data or news.

Company Information /
  • A succinct summary gives regularly updated details of the company’s activities from an investment perspective.

Financial data /
  • Clear and comprehensive financial information is an essential component of any site. See best practice principles

Relevant news /
  • Keeping investors up to date with news about the company, its strategy and operating environment. See best practice principles

Shareholder Information /
  • The website should provide an up-to-date source of shareholder information. See best practice principles

Bondholder Information /
  • Credit analysts and bond investors will require much of the same information as equity shareholders (profitability, cash flows, asset ratios, etc) but also have a slightly different set of requirements.
  • Where applicable, companies should provide clear information on their corporate debt situation.

Corporate Governance /
  • The corporate website is the natural home for information about how a company is managed on behalf of its shareholders and this information should be given due prominence. It is no longer sufficient to simply refer visitors to relevant parts of the annual report.
  • UK main listed companies must comply with Combined Code requirements for disclosure of Corporate Governance arrangements (See Schedule C of the code).
  • AIM listed companies must comply with AIM requirements for Websites under Rule 26 of the rules for AIM companies.

Corporate responsibility /
  • The website should contain comprehensive information about the company’s CR policies and CR data. The information should include a detailed review of how the relevant policies are linked to environmental and social performance management. The information should include a look at health & safety issues and the management of relevant risks across the company.

Tax and other useful information for shareholders /
  • See best practice principles

Information for private shareholders /
  • Useful information such as dividend payment dates, AGM information and proxy voting forms.

Innovative use of new technologies /
  • Embracing personalisation and new technologies portrays your company as being modern and at the cutting edge. The average corporate site visitor is highly web savvy and a large number of them are familiar with (and expect) the latest technologies, functionality, personalisation and choice over how they interact with you.

8.Award for the most effective overall Annual Report (printed and online)