Investor Relations

IMPLEMENTING BEST PRACTICES IN INVESTOR RELATIONS 129 Stock-market data. Detailed information should be provided aboutthe shareholder base, the number of shares in issue and potential dilution,and stock prices and securities traded by the issuer. Some regulations require that annual reports provide informationabout corporate governance, internal control, and all aspects of issuers’sustainable development policies. You should make sure that historical data comparisons are possible,especially when major changes are made from one year to the next; forinstance, if the company moves to new accounting standards or makes majoracquisitions or divestments, it will need to produce proforma statements. If the issuer has been obliged to produce documents using accountingstandards other than those applied in its country of origin, it must ensurethat there are no differences vis-à-vis the annual report published in theoriginal language and provide ad hoc reconciliation tables and methods.3.6.5.3 Distribution of annual reportsSpecific distribution requirements usually apply, depending on the country:Mandatory physical distribution of printed copies to every shareholdertends to be gradually replaced by posting a link or the complete file onthe company’s Web site, thus considerably reducing printing and mailingcosts. In any case, the company must commit to deliver a paper copy ofits complete audited annual reports free of charge to any shareholder whorequests it.The company’s own mailing list is the primary distribution channel. Likemany publications, there is a subscription list for the annual report, in thiscase, the Investor Relations targets described earlier and recorded as such.The list can be steadily expanded to include new contacts and requestsreceived directly from students, libraries, prospective investors, and so on.Depending on how long this list is and the kind of visibility it is seeking,the company may also rely on other tools borrowed from marketingtechniques: Standard mailing techniques. Some financial media allow readersto order annual reports through them. Companies pay for the servicethrough advertising expenses and the cost of printing additional copies.The publications should be carefully selected based on their readershipand distribution. Nothing prevents companies from requesting additionalinformation from the recipients, that is, asking whether they would liketo receive the annual report the following year and/or whether they areshareholders. Where domestic and foreign institutional investors are concerned, asseen in chapter 2, mailing lists can be purchased from specialized vendors.