To make annual reports on CD-ROM more user-friendly, put key data in front

From V Navaratnam

The corporate reporting season is now in full swing and shareholders are receiving annual reports either in printed form or in CD-ROMs, depending on their preference.

CD-ROMs are environmentally-friendly but not user-friendly. Shareholders who are not computer-savvy will find it difficult to navigate nearly 200 pages on a CD-ROM, which is why many shareholders ask for printed copies.

Small-time investors, especially retirees, look at a few times in the reports: the profitability of the company as reflected in Earnings Per Share, Dividend Per Share and so on.

If companies put this information right on top of the CD-ROM reports, CD-ROMs are more likely to become the preferred option.

The information that should be summed up on the top of annual reports are the Notice of the Annual General Meeting, as the report is also an invitation to shareholders to attend the meeting at a specific date, place and time, and the chairman’s statement to the shareholders, which shareholders pay special attention to.

This should be followed by financial highlights comparing the company’s current year performance with that of the previous year with relevant ratios, and the five-year financial summary showing revenue, profit after tax, free cash flow, capital expenditure, relevant balance sheet items, key ratios and “per share” information.

Finally, we should have the balance sheet, the income statement and the cash flow statement accompanied with the notes to the financial statements.

This should be sufficient for most small-time shareholders to make an informed decision.