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Contents:

02 AR TRENDS 2007
answers essential
questions
03 How the survey
was done
BarnesMcInerney
Capital Market
Communications profile
The Craib Group of
Companies profile

04 Section 1:
First impressions 14 Section 2:
Leadership 24 Section 3:
Commitment
06 Great covers: 16 Special report: 26 Strategy:
Turning heads, turning pages Barron’s most respected CEOs Laying the groundwork
08 At-a-glance: 18 Message to shareholders: 30 Objectives & targets:
Something to be remembered by In their own words Putting it on the scoreboard
10 Investment argument: 22 Corporate governance: 32 Sustainability:
Stating your case Guiding the ship forward Preparing for the future

CSR TRENDS 2007 is Craib’s first-ever

look at benchmarks and best practices in
sustainability/corporate social responsibility
reporting, and serves as a complementary
resource to AR TRENDS. For information on
obtaining copies, visit www.craib.com.
 AR TRENDS 2007

“What are other companies doing?”

“Is an annual report worth the effort and
expense?” “How does my last report compare
to other reports?” These are the three most
common questions we’re asked at the
beginning of every annual report season.
This book will help answer these
essential questions.

34 Section 4:
Credibility 42 Section 5:
Performance 48 Section 6:
Accessibility
36 Testimonials: 44 MD&A: 50 Websites:
Let them do the talking Making sense of it all Ready when you are
38 Visuals: 46 Risk management:
What you see, what you get Keeping things under control

54 Who we surveyed
56 Credits

The contents of this book are protected by copyright and may not be reproduced without permission.
© Craib Design & Communications, 2007.
To download a PDF version of this book or to obtain printed copies, visit www.barnesmcinerney.com or www.craib.com.
 AR TRENDS 2007 answers essential questions:

With the business environment changing so rapidly, It can have more impact. It’s easier to use. And a printed
with so many new regulations and fresh approaches report invites leisurely reading. As designers, writers and
– and so little time – it has become even more important communication consultants we strongly believe a well
to benchmark our performance. This report is intended written, well designed report remains at the heart of an
to give annual report producers a clearer view of current effective investor relations program.
standards and practices. We wanted to provide you with
Third, how does my last report compare to
some insight into annual report trends in Canada and
other reports? In our review of the traditional reports
the United States so that you can formulate a framework
we received, there is striking consistency in production
and rationale for your own annual report.
quality, cover treatment, use of colour, use of graphs,
First, what are other companies doing? In the use of photography, number of pages, structure, thematic
United States, most companies now issue only Form 10Ks. emphasis, use of at-a-glance and corporate objectives
In fact, in 2006 only 35% of US companies that sent us features and the content of the MD&A over the four
a copy of their annual report sent a traditional report. years that we’ve conducted this survey.
The rest sent a Form 10K, a Form 10K in a glossy wrap
Inside this book, you’ll find benchmarks, trends, best
or a summary report. In contrast, 91% of Canadian
practices, tips and guidelines with plenty of examples
companies on the TSX/S&P and 99% of companies
and illustrations. Please, enjoy.
on the Euro 350 published reports very similar in content
and production quality to the reports they’ve been issuing
since we began this survey.
Second, is an annual report worth the effort
and expense? We have to agree with the hundreds
of Canadian, American and European companies that
continue to spend hundreds of hours and thousands of
dollars to explain their performance and investment merit
to investors. Print remains more invasive than the web.

More reports include sections Fewer reports include pages devoted

devoted to CSR to corporate governance
100% 100%

80% 80%

60% 60%

40% 40%
CND
20% 20%

US 0% 0%
2005 2006 2007 2004 2005 2006 2007

Sustainability/corporate social responsibility As the corporate disasters of the 1990s recede

is becoming a top-of-mind issue. into history, fewer companies are reporting on
corporate governance.

02 AR TRENDS 2007
How the survey was done:

We ordered 625 reports from the TSX/S&P Composite,
S&P 500 and Euro 350 indices. We selected 130 Canadian
and 76 US reports to collect data on 106 items and
characteristics that we believe define an annual report.
Our goal is to explore how companies use traditional
annual reports to inform and engage investors as
effectively as possible. This is not a survey of financial
disclosure, therefore we did not order or review any
Form 10Ks. All of the reports that flooded into our
offices were used to collect examples of best practices.
BarnesMcInerney Inc.
Capital Market Communications
Over the past 20 years, BarnesMcInerney has built
a reputation as one of Canada’s leading full-service
investor relations firms. This reputation has been earned
by working with clients across a spectrum of industries –
from their infancy as public companies to their zenith
as leaders in their sectors.
Our success has been forged on a foundation of trust.
We work closely with senior management to develop
a thorough understanding of their business. This intimate
knowledge of a client’s business, combined with our
unmatched understanding of investor expectations,
empowers us to deliver compelling solutions to the
most difficult investor relations challenges.
We are committed to continually raising the bar for our
clients. This commitment is brought to life by a team
of qualified professionals dedicated to delivering all
the benefits of professional investor relations to each
of our clients.
Craib Design & Communications and
Craib Strategic Directions
The Craib group of companies is a dynamic team of
professional designers, strategists, researchers and writers
with almost 30 years of communications experience. We
have worked with a diverse range of organizations, from
prominent TSX 300 companies to small, private firms.
Clients entrust their communications needs to us year
after year, and often our relationships with them extend
well beyond the scope of our original assignment.
Our approach is based on listening to and understanding
our clients’ key business issues and communications
objectives. The more we know about your goals
and business, the better. Because we put effective,
content-driven communication first, extensive work
is done to establish a project’s direction prior to any
thoughts on design.
We use the medium that best delivers the message,
be it print, electronic or otherwise. Our services include
design and art direction, production management,
photography and illustration, website design and
construction, writing and editing, capital market research,
best practice guidance and perception audits. The net
result is solutions that are tailored to specific needs.

Posting reports in both PDF and Canadian CEOs are writing shorter 45% of Canadian companies use
HTML is less common letters to their investors special production techniques
100% 2,500 100%

80% 2,000 80%

60% 1,500 60%

40% 1,000 40%

20% 500 20%

0% 0 0%
2005 2006 2007 2004 2005 2006 2007 2005 2006 2007

Although HTML is a more powerful format The length of letters by Canadian CEOs has The use of special production techniques
for the web, more companies are using only steadily declined from 1,948 words in 2004 such as gatefolds, tip-ins, die-cuts and spot
PDF for their annual reports. to 1,658 in 2007, a drop of 23%. gloss is increasing.

AR TRENDS 2007 03
 Section 1:

First impressions
Busy investors need a quick yet thorough
explanation of your company’s performance
and investment merit. On the covers and inside,
outstanding annual reports effectively deliver
succinct, meaningful, credible information.

In this section >> • Great covers • At-a-glance • Investment argument

04 AR TRENDS 2007
“You never get a
second chance to make
a first impression.”
Author Unknown

AR TRENDS 2007 05
Section 1: First impressions

Great covers:
Turning heads, turning pages

Gre 1

Benchmarks Best practices

Cover contains a key message or theme > DO use a theme or key message that is relevant and
firmly backed up by the information inside the reports.
100%

80%
> DON’T waste your reader’s time with platitudes. If you
60%
can’t say something truly useful, and back it up, maybe
it’s best to leave the message approach to
40%
CND
next year.
20%

US 0% > DON’T forget your back cover! Use it to deliver

2004 2005 2006 2007
meaningful information – a key message, your corporate
Most Canadian and US companies continue to use cover themes mission or information available on your IR website.
to capture the reader’s attention by delivering key messages.

06 AR TRENDS 2007
 While annual reports do not
sell on newsstands, covers are
critical in capturing reader interest.
Good covers reflect the nature of a
company’s business, performance,
strengths and/or strategy. The best
will distinguish your company
from your peers through striking
visuals, unique messages and
original design.

1. Jazz Air Income Fund

The Jazz cover theme – safe, reliable, efficient

2 and engaging – draws the reader immediately into
a discussion of the company’s four fundamentals
for success. Inside the report, Jazz focuses
squarely on the initiatives and accomplishments
that support those fundamentals. The back cover

eat covers:
provides a succinct explanation of each concept.

2. Yum! Brands

Yum! establishes the theme of its report and its

corporate focus with its cover message, “Going for
greatness around the globe!” The cover imagery
reflects the company’s outlook for its ongoing
expansion into China. It also clearly identifies
Yum!’s five main brands for easy identification
of the company.

3. Canadian Tire

Canadian Tire’s cover launches the company’s

investment argument – explained in detail inside –
that the synergies between its five businesses
will create more opportunity to build shareholder
value than meets the eye. The back cover supports
the argument with a map of the company’s
activities and coupons similar to those used to
drive traffic between the businesses.

> More best practices...

BHP Billiton
Home Capital
IBM
Primaris

3
3

AR TRENDS 2007 07
Section 1: First impressions

At-a-glance:
Something to be remembered by

At
1

Benchmarks Best practices

Companies that provide an at-a-glance > DO use a multi-faceted approach that includes diverse
elements such as charts, photos, lists, text, maps
100% and illustrations.
80%
> DO consider a grid to organize information by business unit
60%
into categories – such as operations, sites, results, business
40%
CND
climate, strategy and outlook – that will allow the reader to
20%
understand your business segments, past performance and
US 0% the drivers of future performance.
2004 2005 2006 2007

The use of an at-a-glance to provide a succinct overview of > DON’T bury the at-a-glance. Consider using the inside front
a company’s businesses showed a resurgence in 2007 after
two years of declining in Canada and the United States. cover and page one or a gatefold for maximum exposure.

08 AR TRENDS 2007
 You should never overestimate
the reader’s knowledge about
your company. Even with well-
known companies, there can be
misunderstandings about the scope
or thrust of the business. A well-
done at-a-glance is a powerful tool
for distilling a wealth of information
on your business in an organized,
highly visual manner.

1. Fortis

Fortis uses a gatefold for its detailed at-a-glance,

which introduces the company’s vision and
mission before explaining how it delivers
sustainable shareholder value. The company has
2 three businesses and provides details on its
strategies, market positions and accomplishments,

t-a-glance:
as well as selected financial data for each. Graphs
and bullet points are used to make the information
more accessible.

2. High Liner Foods

High Liner Foods has two business segments,

operating in very different environments with
significantly different challenges. The company
uses its at-a-glance to provide segmented
profiles, KPIs, market conditions and strategies,
as well as a separate sidebar to outline company-
wide strategies and significant growth drivers.
The visual backing and clean presentation make
the spread accessible and engaging.

3. MDS

MDS has a dynamic at-a-glance: an activities

map along with bulleted profiles and a tabular
breakdown of its businesses. A standout feature
is its explanation of forward-looking priorities in
each of the three business segments. The layout
leaves the reader with a good understanding of
the basics of this complex company.

> More best practices...

CGI
Husky Energy
3 TELUS

AR TRENDS 2007 09
Section 1: First impressions

Investment argument:
Stating your case

Investment a
1

Benchmarks Best practices

Financial highlights: Providing a succinct overview > DO state your investment argument succinctly and with clarity.
Think, “if a reader spent five minutes with this report, could he
100% or she explain to a friend why we’re a good investment?”
80%
> DO support your argument with tangible evidence
60%
of your capabilities, strengths, strategic progress and
40%
CND
competitive advantages.
20%

US 0% > DO frame your argument around solid information. Some

2004 2005 2006 2007
companies stretch too far and strain credibility. Others do
Financial highlights, once an essential feature of almost every not develop as strong a message as they might, assuming
annual report, are declining in popularity.
it will be picked up through osmosis.

10 AR TRENDS 2007
 The annual report is a crucial
opportunity for companies to state
their case to potential new investors
– it should not be used simply
to describe past performance.
A persuasive, straightforward and
succinct investment argument
creates a context for every other
piece of information in the report.

1. PotashCorp

PotashCorp launches one of the most direct

and thorough investment arguments by listing
the seven reasons for its success in the fertilizer
industry on page one of the 2007 report. The
2 company goes on to explain the six keys to
understanding its business, each colour-coded

argument:
to guide the reader through the next six spreads.
The section is full of subheads, graphs, tables,
diagrams and bullet points to present the
company’s strengths with crystal clarity.

2. CIBC

CIBC condenses a compelling argument

into a compact gatefold spread inside the
front cover. It balances brief descriptions of
corporate information – such as a profile,
vision statement, value creation benchmarks
and strategic priorities – with concrete data to
substantiate its investment merit: a list of the
year’s accomplishments and a stock price graph.
The investment argument itself rests upon the
bank’s long-term sustainable performance.

3. Macquarie Power & Infrastructure

Income Fund

Macquarie presents its investment argument

in an at-a-glance style, providing a four-point
definition of infrastructure investments along
with evidence – such as details on competitive
advantages – that prove each of its businesses
meet the criteria. This segmented discussion is
used to support the argument that Macquarie’s
assets are insulated from economic cyclicality.

AR TRENDS 2007 11
Section 1: First impressions

Investment argument:
(Cont’d)

Investment a
4

Benchmarks

31% of Canadian companies and 13%

of US companies used the inside
front cover spread to present an
investment argument.

28% of companies provided a mission,

vision or value statement.

66% of companies provided

a corporate profile.

12 AR TRENDS 2007
5
4. Inter Pipeline

argument:
The cover of Inter Pipeline’s report features
a suit-clad investor and the phrase “Some
would call us conventional.” Inside, the company
endeavours to explain what that means and
why, in fact, it’s a good thing – all in the time
it takes to tie a Windsor knot. The material is
written in a crisp, easy-to-comprehend tone, and
as a neat visual touch, each spread has a visual
demonstrating one step in tying a Windsor knot.

5. TransAlta

TransAlta states its investment case on an

information-packed gatefold on the first page
that supports the report’s cover theme – “ready,
steady, grow.” With the use of bullet points, graphs,
callouts, diagrams and photos, the three-page
spread organizes a wide variety of information and
allows the reader to understand the company and
its growth potential in one visual presentation.

6. PrimeWest

PrimeWest makes the case for its long-term

value creation capabilities with straightforward
information on assets and policies that help
mitigate the impact of the commodity market’s
volatility, as well as six captioned graphs on key
metrics that illustrate the company’s performance
over a five-year span.
6

> More best practices...

Canadian Tire
GE

AR TRENDS 2007 13
 Section 2:

Leadership
Once you get them interested, the next challenge
lies in convincing your reader to believe what
you say. Readers tend to be very skeptical about
the information in an annual report, so winning
credibility is a challenge. Begin at the top with
messages from the CEO and Chairman that
are sincere.

In this section >> • Special report • Message to shareholders • Corporate governance

14 AR TRENDS 2007
“Leadership and
learning are
indispensable to
each other.”
John F. Kennedy

AR TRENDS 2007 15
Section 2: Leadership

Special report:
Barron’s most respected CEOs
Many CEO letters were very good, displaying one or more
of the following strengths:

1. They describe the company’s business,

usually in terms that allow the reader to
understand how it is different from its
competitors.
XTO CEO Bob Simpson begins his letter with a bit
of history: “About 20 years ago, our journey began with
the idea of starting an energy company where we could
own quality properties, work with good people and create
real value together.” This is a long letter running over
20 pages, and almost every discussion is imbedded
within a succinct reminder of the particular niche
within the energy industry in which XTO works.

2. They explain their strategies and provide

Most stakeholders in the company usually
read the letter to shareholders in an annual
report, even if they read little else. They are
the heart of the annual report and were a special
focus of our research in 2007. In our search
for the best CEO letters, we turned to the
March 26, 2007 issue of Barron’s* and its annual
list of the 30 most respected CEOs. Barron’s
defines “the world’s best corporate leaders”
as those who have an “unwavering focus on
delivering long-term value for shareholders.”
hard evidence that the strategies are being
implemented and bearing results – or not.
Wells Fargo is the most striking example of a letter
focused on strategic intentions and results. Imbedded
within CEO Dick Kovacevich’s letter is a single page
with a list of Wells Fargo’s 10 strategies along with the
specific initiatives driving those strategies. Most are
supported with metrics that measure the results of the
initiatives. In his discussion of the company’s strategy
of offering diverse products and services, Kovacevich
does not hesitate to admit that the strategy creates
its own challenges: “Being so large and diverse, however
also can be a disadvantage. Complexity can have a hidden
cost… As Pogo in the comics used to say, ‘we have met the
enemy, and they is us.’”

Barron’s most respected CEOs:

Warren Buffett, Berkshire Hathaway
Kenneth Chenault, American Express
George David, United Technologies
Charlie Ergen, EchoStar Communications
Larry Fink, BlackRock
Lew Frankfort, Coach
Richard Fuld, Lehman Brothers
Fred Goodwin, Royal Bank of Scotland
Jeffrey Immelt, General Electric
Satoru Iwata, Nintendo
Steven Jobs, Apple
Henning Kagermann, SAP
Richard Kovacevich, Wells Fargo
A.G. Lafley, Procter & Gamble
Terry Leahy, Tesco

* Barron’s is a trademark of Dow Jones & Company, Inc.

16 AR TRENDS 2007
3. They explain the factors driving shareholder
value, including the market conditions that
underpin corporate strategy.
This not only ensures the reader understands the
competitive circumstances driving strategy; it allows
them to understand the company’s performance as the
year unfolds. The most comprehensive discussion of
market circumstances driving corporate strategy is in the
News Corporation letter. CEO Rupert Murdoch explains
that “all of the historic constraints inherent in distribution
are being swept away by digital technology. For the first time
in media history, complete access to a truly global audience
is within our grasp… and we are taking advantage of it.”
4. They provide third party support for
their arguments.
Danone CEO Franck Riboud uses a quote from
Muhammad Yunus, Nobel Peace Prize laureate and
president of the Grameen Bank: “With Danone we have
taken a giant step. The Grameen Danone foods joint venture
shows that it is possible to do business differently. Profit is no
longer an end in itself, but the means to social ends.”
5. They have excellent introductions that
deliver the year’s core messages and draw
the readers into the body of the letter.
GE CEO Jeffrey Immelt began his letter this way:
“I assumed the CEO job on September 7, 2001, a fact most
of you know. The week after September 11, GE’s stock was
in a ‘freefall’. On September 21, GE opened at $29 and then
stabilized. As the stock hit $34 during the fall, I bought 15,000
shares thinking, ‘I love the company and when will it ever be
this cheap again?’ The answer turned out to be – in 2006.”
Immelt obviously shares his investors’ pain, but doesn’t
sugar coat the message: “This is a long-term investment.
There are no short-term tricks.”
6. They are not only written in plain English,
they carry the voice of the people who signed
their names at the end.
Many of them carry a sense of both intimacy and urgency.
These are individuals who obviously care passionately
about their businesses. Because this passion is usually
combined with solid evidence, the letters become
extraordinarily credible. Whole Foods co-founder and
CEO John Mackey tells readers that on January 1, 2007
his salary was reduced to $1 per year. He explains, “The
tremendous success of Whole Foods Market has provided
me with far more money than I ever dreamed I’d have and
far more than is necessary for either my financial security or
personal happiness. I continue to work for Whole Foods not
because of the money I can make but because of the pleasure
I get from leading such a great company.”
7. They make the structure of the letter’s
content obvious with heads and subheads that
make the letter easy to navigate and deliver
core messages.
The content of the letter and its organization are very
important. So too is the design. We like to see letters
that can be scanned. If done well, they are more likely
to effectively pull the more hesitant reader into the body
of the letter for a more thorough reading. Use type or
graphical devices to draw out the messages in the letter.
Imagine the reader looking only at those words in 16-point
type and ask if he or she would get all of the key points
that you would like taken away from the report.
In summary, the characteristics that defined a great
letter are clarity, evidence, thoroughness and voice.
Of course, humour is always a bonus.

John Mackey, Whole Foods
Lakshmi Mittal, Arcelor Mittal
Allan Moss, Macquarie
Angelo Mozilo, Countrywide Financial
Rupert Murdoch, News Corp.
Michael O’Leary, Ryanair Holdings
Franck Riboud, Group Danone
Peter Rose, Expeditors International
Steven Roth, Vornado Realty
James Schiro, Zurich Financial
Bob Simpson, XTO Energy
James Sinegal, Costco Wholesale
Fred Smith, FedEx
Ratan Tata, Tata Sons
Jong-Yong Yun, Samsung Electronics

AR TRENDS 2007 17
Section 2: Leadership

Message to shareholders:
In their own words

Message to shar 1

Benchmarks Best practices

% of CEO messages that begin on page 1 or 2 > DO provide insight into what shareholders might expect
in the coming year. This is not a forecast, but a reasonable
100% explanation of expectations.
80%
> DON’T be afraid to draw conclusions for the reader. Readers
60%
don’t have time to figure out what you are trying to say. They
40%
CND
prefer managers who know what they are doing and why –
20%
and aren’t afraid to say so.
US 0%
2005 2006 2007 > DO deal with the bad news openly. To be credible, the CEO’s
The CEO’s message to investors remains the essential annual letter must be balanced. If you’ve had a bad year, don’t gloss
report feature in establishing the foundation for all the information
that follows. over it. Provide some true perspective.

18 AR TRENDS 2007
 A good letter from the CEO should
explain and place key events
and results of the past year into
perspective, but the bulk of the letter
should focus squarely on strategy,
framed within the context of the
company’s strengths as well as
industry trends and developments.

1. Home Capital
2
The Home Capital letter to shareholders covers
five pages, replacing most of the feature material.
It thoroughly documents and explains the five
reasons to invest in Home Capital – as promised
on the report’s front cover. The joint CEO/Chair
letter clearly lays out the company’s strengths

reholders:
in its core business, explains the company’s
performance over the past year and sets hard
targets for the upcoming year.

2. GE

Jeffrey Immelt of GE boldly confronts his

company’s 2006 stock performance in the first
paragraph of his letter. But rather than dwell on
disappointments, he focuses on the company’s
long-term performance and outlook, thoroughly
outlining what makes GE a “reliable growth
company.” Text layering and illustrations help
stress key points and create visual variety to
carry the reader through this uncommonly
long CEO message.

3. TELUS

TELUS gives voice to its executive team through

a Q&A feature, giving the President and three
Executive VPs an opportunity to provide
concise answers to four top-of-mind questions
for the company’s investors. Photos and first-
name-only signatures serve to personalize the
executives, reinforcing the company message
that all employees are part of the “TELUS Team.”

AR TRENDS 2007 19
Section 2: Leadership

Message to shareholders:
(Cont’d)

Message to shar
4

Benchmarks

5% published a letter from the CFO.

9% published a Q&A – 5% of Canadian reports

and 16% of US reports.

3% published letters from other members

of management.

4% of CEO letters replaced the traditional feature

material by including photos and sidebars.

20 AR TRENDS 2007
 4. Cameco

Cameco takes an unusually visual approach to

its shareholder message. Despite the somewhat
flamboyant presentation, the content is solid,
5 containing discussions of the company’s
challenges, its commitment to sustainable
development and its forward-looking priorities.

reholders:
The letter is complemented by photos, graphs,
pull quotes and a financial highlights table to
support the CEO’s discussion.

5. BMO

In addition to the CEO’s message, BMO

publishes messages from the CFO, who provides
a brief analysis of the company’s financial
performance, and from the COO, who gives
an overview of the year’s operational highlights.
The CFO and COO messages are detailed and
specific, providing solid support for the more
strategic letter from the CEO.

6. Wells Fargo

A passage in Wells Fargo’s letter asks “How

can we speak more conversationally in letters
to our customers, so they don’t have to scratch
their heads and say ‘What are they talking
about?’” The company answers its own question
by providing a letter that is largely jargon-free
and comprehensible to the average reader –
without sacrificing the quality or wealth of
hard information, including a well-defined list
of 10 strategic initiatives.

> More best practices...

IBM
6
News Corp.
Procter & Gamble
Verizon

AR TRENDS 2007 21
Section 2: Leadership

Corporate governance:
Guiding the ship forward

Corporate go
1

Benchmarks Best practices

% of reports with a message from the > DON’T sacrifice biographies for photographs. Having both is
Chair of the Board ideal, but biographies have more substance than photos.
100%

80%
> DO provide a summary of changes made in the previous year
60%
and/or planned for the coming year.
40% > DO consider using a letter from the Chair to discuss Board
CND
20% practices, policies and composition.
US 0%
2005 2006 2007

The publication of a letter from the Chair is stable in Canadian

reports, but has declined in US reports.

22 AR TRENDS 2007
 The intense scrutiny of corporate
governance that encouraged
many companies to focus their
discussions of governance on
improvements to their processes
and structure has, unfortunately,
gravitated back to boilerplate.
Directors are the stewards of
shareholder interests and the annual
report should demonstrate their
quality and depth of expertise.

1. Barclays

Barclays structures its discussion of corporate

2 governances as a Q&A signed by the Chairman
of the Board. The Q&A describes the role,
composition and performance of the Board.
The section asks questions that every report
should answer, such as “What did the Board

overnance:
do in 2006?” and very practical questions such
as “How do you assess the performance of the
Board?” The Chairman mentions that the Board
must possess “the right balance of Directors and
a good mix of skills and experience,” and then
demonstrates that this is the case with detailed
biographies of its Directors.

2. High Liner Foods

For the past several years, High Liner has focused
on the implementation of improvements to the
governance processes and procedures at the
company, directing the reader to the company’s
website for Director biographies, explanations
of Board committee responsibilities and the
key documents that govern governance at the
company such as the corporate Code of Conduct.

3. RBC

RBC provides a lengthy and detailed list of

leading governance practices, illustrating that
its governance goes beyond mere compliance.
The company explains the measures it has taken
to attain a leadership position in governance, as
well as the significance to shareholders of each
measure. Readers are then directed to a website
for more descriptive information on governance
policies and practices.

3
> More best practices...
TELUS
TransAlta

AR TRENDS 2007 23
 Section 3:

Commitment
Where are you going? How will you get there?
Have you made any progress? And, importantly,
are your operations and results sustainable?
The best annual reports address these critical
questions with precision, and with evidence.

In this section >> • Strategy • Objectives & targets • Sustainability

24 AR TRENDS 2007
“A goal without a plan
is just a wish.”
Antoine de Saint-Exupery

AR TRENDS 2007 25
Section 3: Commitment

Strategy:
Laying the groundwork

Benchmarks Best practices

% of reports that emphasize the company’s strategy > DO deal with bad news openly. To be credible, the commentary
or investment argument must be balanced. If you have had a bad year, don’t gloss
100% over it.
80%
> DON’T just tell, show. Provide proof that your strategy is
60%
working with statistics, examples and anecdotes. Readers
40%
CND
will believe you if you give them evidence.
20%

US 0% > DON’T ignore challenges or obstacles to success. Address

2004 2005 2006 2007
potential concerns while emphasizing the opportunities the
In 2007, 32% of reports described the company’s products strategy presents.
or business, while 20% focused on past performance.

26 AR TRENDS 2007
 At the heart of any annual report
are your strategies for improving
performance and building
shareholder value. This discussion
should be framed in terms of
corporate strengths as well as
industry trends and developments.
Be specific wherever possible.
The more evidence and concrete
examples, the better.

1. Monsanto

Monsanto focuses on its near-term strategy and

goals leading up to 2010 by identifying six major
growth contributors and its expectations in each
area. Each growth contributor is then explained
in terms of historical performance, the company’s
position and future outlook. Case studies are also

Strategy:
2
provided to demonstrate the real-world impact of
the company’s strategic initiatives.

2. Canadian Tire

Canadian Tire discusses its strategic initiatives

by operating segment, using a variety of visual
elements to create interest. The company distills
a good number of growth initiatives in different
segments into a single, easy-to-read spread.

3. 3i Group

3i Group ensures readers understand exactly

what each pillar of its corporate strategy
entails, providing a table outlining progress,
key risk factors and performance in each area
of the strategy. Bullet-pointed measures give
an overview of the company’s progress, while
graphs and a table provide quantifiable results.

AR TRENDS 2007 27
Section 3: Commitment

Strategy:
(Cont’d)

Benchmarks

% of annual MD&As that discuss strategy

100%

80%

60%

40%
CND
20%

US 0%
2004 2005 2006 2007

Although recommended by the CICA, a discussion of strategy

is found in the MD&A of only 55% of Canadian reports.

28 AR TRENDS 2007
 4. GE

Over four visually compelling spreads, GE identifies

major global trends and explains its strategic plans
to capitalize upon those trends. This discussion of
strategies driven by immediate market conditions
is integrated into the deeper discussion of long-
term strategy and the company’s dedication to

Strategy:
5 “Winning in the Future.”

5. IBM

IBM tracks the evolution of its strategy

chronologically, showing readers how the
company anticipated shifts within the industry,
acted accordingly, benefited as a result and is
using that success to move forward productively.
A discussion that could be very complex has
been made accessible through the use of
numbering and graphs.

6. Inmet Mining

Inmet takes a different approach to explaining its

strategy, choosing to provide this information in its
reader-friendly MD&A rather than a feature section.
The company explains the three key components of
its strategy and describes performance within the
context of those strategies.

> More best practices...

Campbell Soup
The Capital Group
HBOS
Wells Fargo

AR TRENDS 2007 29
Section 3: Commitment

Objectives & targets:

Putting it on the scoreboard

Objectives 1

Benchmarks Best practices

% of companies that provide dedicated corporate > DO illustrate the relationship between your goals and
objectives pages or spreads your strategies.
100%

80%
> DON’T set goals that can’t be measured. “We will expand
60%
EBITDA margin to 20% in three years” is significantly more
meaningful than “We will maximize shareholder value.”
40%
CND
20% > DON’T hide missed targets. Acknowledge the situation,
US 0% explain the results, and discuss how you plan to do better
2004 2005 2006 2007
next year.
It takes courage to set targets which can be used to measure
performance, and fewer companies are taking the risk.

30 AR TRENDS 2007
 The best annual reports not
only describe the company’s
strategic direction, they quantify
it by establishing financial and
operating objectives – and measure
their performance against those
objectives. Some companies
produce detailed spreads featuring
an objectives scorecard with goals,
key metrics and relevant graphs.

1. CIBC

CIBC not only discusses its performance against

financial objectives for such metrics as EPS
2 growth and risk, it extends the discussion to non-
financial measures such as client relationships,
the environment and governance. Their results
against financial objectives are briefly explained

& targets:
in a “comments” column for additional context.

2. Alcan

Alcan did not use the typical scorecard format

for its performance against objectives page.
The company provides its targets for 2009 in
the margins of the feature pages, measuring
performance against those targets in the past two
years. Providing a published target along with
the detailed discussion of the performance lends
greater meaning to the numbers.

3. PotashCorp

PotashCorp specifies the goal for each business,

discusses performance within the context of its
goals and establishes targets for the coming
year. Icons are used to quickly identify whether a
previous target was achieved, partially achieved
or not achieved – made easier by the fact that the
company uses hard numbers, not ambiguous
statements, in its results and targets.

> More best practices...

Canadian Tire
Inmet Mining

AR TRENDS 2007 31
Section 3: Commitment

Sustainability:
Preparing for the future

Sust
1

Benchmarks Best practices

36% of reports discussed community

investment and support.
> DO speak to performance wherever possible and quantify
your progress. Can you imagine a financial report
without numbers? Environmental commentary, too,

31% of reports discussed

environmental performance.
lacks credibility unless some specifics are provided and
measurements discussed.

17% of reports discussed social

performance such as health
& safety, diversity, and
> DO provide and explain any industry-specific sustainability
metrics and detail your performance against them.

talent attraction. > DON’T forget to mention your sustainability/CSR

report if you publish one. Provide a website address and
instructions on obtaining a printed copy.

32 AR TRENDS 2007
 More companies are voluntarily
focusing on broader corporate
sustainability and responsibility
issues than ever before. The better
reports include some sort of
measurements of performance,
rather than simply motherhood
sentiment. They also outline
corporate goals, practices and beliefs
in these sections. For an in-depth
discussion of sustainability issues,
see this year’s CSR Trends booklet.

1. Abitibi-Consolidated

Abitibi-Consolidated provides an exhaustive

discussion of its initiatives in the areas of
economic, social and environmental responsibility.
The section is replete with graphs and quantifiable
metrics that show a tangible commitment to the
principles of sustainability.

tainability:
2
2. Norsk Hydro

Norsk Hydro publishes a self-contained

sustainability report within its annual report,
devoting 24 pages to a substantive discussion
of climate change, human rights, community
involvement, working conditions and economic
innovation. The section includes five-year tables
of performance against economic, environmental
and social metrics and an assurance report from
an independent auditor. It also sets objectives
and results for 2006 as well as hard targets for
2007 and 2010 in each section.

3. Entergy

Entergy puts the issue of climate change front

and centre, devoting a special feature section
to six articles written by outside experts. In an
introductory letter, CEO Wayne Leonard stresses
the importance of acknowledging climate change
and working to combat it. The feature concludes
with a discussion of the energy company’s
policies and efforts in sustainable development.

> More best practices...

CIBC
PotashCorp
Santos

AR TRENDS 2007 33
 Section 4:

Credibility
Sometimes it’s not enough to tell your story –
you need to show it. Photographs, illustrations
and third-party testimonials can give readers
a refined insight into the effectiveness of your
company’s operations and strategies.

In this section >> • Testimonials • Visuals

34 AR TRENDS 2007
“Honesty has a beautiful and
refreshing simplicity about it.
No ulterior motives. No hidden
meanings. An absence of
hypocrisy, duplicity, political
games, and verbal superficiality.”
Charles Swindoll

AR TRENDS 2007 35
Section 4: Credibility

Testimonials:
Let them do the talking

Test
1

Benchmarks Best practices

21% of US reports published

testimonials.
> DO ensure the choice of speakers is consistent with the
theme and tone of the report.

7% of Canadian reports published

testimonials.
> DO include case studies to illustrate the strength of
your relationships with customers, suppliers, employees

9%
or communities.
of testimonials were
from customers. > DON’T put words in the speaker’s mouth. A testimonial
that sounds prepared or inauthentic can do more harm
than good.

36 AR TRENDS 2007
 The best advertisement is a
satisfied customer. In the same
way, a company’s capabilities or the
quality of its products and services
can be confirmed by a few words
from a credible and relevant outside
party, lending significant credibility
to your investment argument.

1. MAN AG

To personalize the impact of their international

operations, MAN AG uses quotes from stakeholders
in Mexico, Chile and China – set against
full-spread photographs of the speakers. The
2 following magazine-style spreads explain how
the experiences of these individuals reflect the

timonials:
company’s activities in those different regions.

2. BMO

BMO eliminates the image of the “Big Bank”

by publishing customer profiles on two-page
spreads. One page uses quotes and case
studies to show how the bank has helped
a customer; the opposite page provides profiles
the employees at BMO who worked with that
customer. Small illustrations and captions
accompany the profiles providing information
about the company and its services that is
relevant to the case study being discussed.

3. QUALCOMM

QUALCOMM uses a tip-in at the beginning of

its report to highlight case studies from its global
operations, accompanied by testimonials from
employees. The phrase “Making a difference in
everyday life” unites the different stories under
the idea that the company’s products have a
positive influence wherever they’re used, while
the employee testimonials create a sense of
loyalty, strength and stability.

> More best practices...

American Express
Bank of America
Wells Fargo
3

AR TRENDS 2007 37
Section 4: Credibility

Visuals:
What you see, what you get

Benchmarks Best practices

% of annual reports with photographs > DON’T use images as wallpaper. Every image
should support the reader’s understanding of your
100% company’s messages.
80%
> DON’T use too many images. A small number of
60%
remarkable images will have more impact than a cavalcade
40%
CND
of mediocre ones.
20%

US 0% > DO provide captions for photographs, illustrations and

2004 2005 2006 2007
graphs. These captions should explain the information
Most annual reports continue to use photography to explain in the visual, not simply describe it.
their business or investment argument.

38 AR TRENDS 2007
 Photos, illustrations, maps and
graphs can effectively deliver facts
and messages that the reader
might otherwise miss if all of your
information is buried in text. They
can catch the eye of the reader who
simply scans through annual reports
or supplement your investment
argument with credible evidence.

1. United Technologies

United Technologies uses full-page images of

the parts that it manufactures to create instant
recognition of the value of its indescribable bits
2
of machinery and technology to the company’s
customers. The images of each part are supported
with descriptions of the part’s composition and

Visuals:
application. On subsequent pages, the reader
can see the parts in action, be it on an offshore
oil platform in treacherous conditions or in a
construction project in Dubai.

2. Thomson Pharma

Thomson Pharma uses a series of captioned

diagrams to provide an example of the process
a client could go through in making use of their
services. The omnipresence of the computer
screen in each graphic reinforces the significance
of the company’s online service throughout
the process.

3. Chicago Mercantile Exchange

While some companies are more difficult to

illustrate than others, featuring photographs
of employees and customers lend a human touch
to a report. Chicago Mercantile Exchange does
just that with large photographs of employees
and customers, set against diverse and
interesting backdrops.

AR TRENDS 2007 39
Section 4: Credibility

Visuals:
(Cont’d)

Benchmarks

Average number of photos and illustrations

in a report
35
86% published graphs in the
feature sections.
30
25
20
50% published graphs in the MD&A.

12 +
15
average number of graphs
CND 10
5
in a report.
US 0
2004 2005 2006 2007

Although Canadian issuers are using fewer visuals, the few

US companies that still produce annual reports have decided
to sustain production values.

40 AR TRENDS 2007
 4. PG&E

PG&E uses captivating photography to attract

attention to a series of pressing questions, such
as “Can we slow global climate change?” and
“Can we build energy sustainability into our
5 communities?” While some photos are abstract
and others more literal, they all give an instant

Visuals:
impression of the issue that is addressed by a
member of management on the following page.

5. McDonald’s

McDonald’s sets simple, supportive quotes

from customers against full-page black and white
photographs of cheerful, wholesome situations –
people enjoying time in McDonald’s restaurants
– to illustrate the company’s five key drivers:
people, products, places, prices and promotions.
The visuals not only support the concept of the
driver, they contribute to a sense of familiarity and
comfort that the company is attempting to convey
in the report.

6. Armtec

Armtec uses a detailed illustration alongside

its at-a-glance feature to visually demonstrate
the variety of ways in which its products are
used. The use of this illustration creates a fuller
understanding of the practical aspects of the
company’s operations than a simple description
of product usage would.

> More best practices...

American Express
Entergy
GE
6
McGraw-Hill
WestJet

AR TRENDS 2007 41
 Section 5:

Performance
While the feature material in a good annual report
will provide a thorough, but concise explanation
of a company’s investment merit, management’s
discussion and analysis along with the financial
results and notes continue to represent the
annual report’s raison d’être.

In this section >> • MD&A • Risk management

42 AR TRENDS 2007
“The toughest thing
about success is that
you’ve got to keep on
being a success.”
Irving Berlin

AR TRENDS 2007 43
Section 5: Performance

MD&A:
Making sense of it all

Benchmarks Best practices

% of reports that provide an outlook in > DO follow the Canadian Institute of Chartered Accountants’
their MD&A MD&A Guidance on Preparation and Disclosure. You can
100% find it at www.cica.ca under Research & Guidance.
80%
> DO design the pages of the MD&A to encourage readers
60%
beyond the institutional investors and financial analysts
40%
CND
to explore at least some of the information provided. This
20%
can be done by layering information, and using call-outs
US 0% and graphs.
2004 2005 2006 2007

The regulatory and economic environments appear to be driving > DO consider a table of contents for easier navigation.
a trend to less discussion about future performance.

44 AR TRENDS 2007
 The most thorough MD&As have
adopted the guidelines issued by
the Canadian Institute of Chartered
Accountants, which recommends
that companies discuss their vision,
strategy, key performance drivers,
capabilities to deliver results and
risks. The best MD&As are also
written in plain English, making them
comprehensive and comprehensible.

1. Inmet Mining

Inmet’s MD&A is dynamic and all-encompassing

with maps, photos, and full-colour charts
and graphs to make the information in the
section accessible to all readers. The company
also integrates its discussions of strategy and
objectives (including human resources and

MD&A:
2 worker safety) into the MD&A, showing that
these topics are intrinsically connected to
financial results.

2. TELUS

TELUS opens its MD&A with an expanded table

of contents, which is organized according to the
CICA guidelines concerning MD&As. The section
itself is easy to navigate and read, with plenty of
bullet points, subheads and graphs to direct the
reader to the specific information they need.

3. Agrium

Agrium’s MD&A begins on page 11 and replaces

most of the information that is traditionally found
in the feature pages – but you can hardly tell the
difference. The MD&A comes complete with
photos, maps, pull outs and layered text. It’s also
written in plain English to ease comprehension.

> More best practices...

BMO
Canadian Tire
High Liner Foods
Husky Energy
PotashCorp

AR TRENDS 2007 45
Section 5: Performance

Risk management:
Keeping things under control

Risk man
1

Benchmarks Best practices

91% discussed risk in the MD&A. > DO devote more discussion to those risks that are
more likely to challenge your ability to achieve your
established goals.

47% discussed strategies to

mitigate risks. > DO explain how you are addressing each risk
factor mentioned.

28% provided a sensitivity analysis.

> DO look at the CICA’s Performance Resource Centre at
www.cica.ca/cpr for more examples of best practices and
a discussion of risk reporting.

46 AR TRENDS 2007
 Every company faces risks that arise
from the global economy, industry
trends and circumstances within the
company itself. An annual report
should include a discussion of
those risks as well as the policies
in place and measures being taken
to mitigate risk.

1. PotashCorp

PotashCorp provides a risk severity diagram,

allowing readers to see how the company
evaluates, sets priorities and responds to various
2 types of risks, most specific to PotashCorp. The
company also provides a brief description of
mitigation activities in the previous year after

nagement:
each risk factor.

2. ITV

ITV explains the risks to its results in a table,

listing the potential impact of each risk factor
along with the company’s efforts to mitigate risks.
The risks in this table are specific to the company,
not vague industry or global risks that affect
every company.

3. 3i Group

3i Group explains the company’s internal

structures designed to handle risk through
a diagram of the corporate risk management
framework and the responsibilities of key
committees. The risk factors themselves are then
divided into types, with sources of additional
information listed for each one as well as
mitigation efforts.

> More best practices...

SAS Group
TD Bank

AR TRENDS 2007 47
 Section 6:

Accessibility
While a printed annual report remains the
backbone of an effective IR program, the Internet
has become the source to which many investors
will turn for the mother lode of information
on your company. A good website will not only
reinforce your key messages, it will provide
readers with the depth of detail that was not
possible in the past.

In this section >> • Websites

48 AR TRENDS 2007
“One of the Internet’s
strengths is its ability to
help consumers find the
right needle in a digital
haystack of data.”
Jared Sandberg

AR TRENDS 2007 49
Section 6: Accessibility

Websites:
Ready when you are

Benchmarks Best practices

% of corporate websites with pages devoted > DO provide an intuitive interface, making common links
to sustainability/CSR reporting such as corporate overview, financial statements and
100% corporate governance readily accessible.
80%
> DO give the reader choice: offer documents in HTML and
60%
PDF, break reports down into their individual sections, and
40%
CND
list various options for contacting IR.
20%

US 0% > DON’T treat the site as a static repository for data. Keep
2005 2006 2007
it updated with stock numbers, press releases, industry
Sustainability and corporate responsibility tend to be web-only information and other news.
discussions, although more companies are producing printed
CSR reports as well.

50 AR TRENDS 2007
 A good investor relations website
is not simply a bulletin board for
the company’s print documents. It
provides context and supplementary
data while making full use of
the Internet’s capabilities for
interactivity, including the ability
to be constantly updated.

1. Cameco

Cameco’s main corporate site links to the IR site

with a large callout box. Once inside the IR site,
visitors are greeted with a flash banner boasting
seven reasons to invest in Cameco. The site also
2 features the “CEO’s corner” with a video Q&A
with CEO Jerry Grandey and links to an archive

Websites:
of conference calls. Unlike most companies,
Cameco posts the entire annual report in HTML.

2. Royal Dutch Shell

Shell makes good use of the Internet’s interactive

capabilities to explain its activities. The site
includes stories, games and an interactive short
film in which a “news correspondent” is taken
on a tour of Shell’s operations. Users can also
click on the film to view more information about
Shell’s activities.

3. Talisman

Talisman presents IR material on its home page,

including four reasons to invest in Talisman. The
IR site features Web-only tools, such as interactive
maps, an investment calculator, feedback form
and email alerts. Like Cameco, Talisman posts its
entire annual report in HTML.

AR TRENDS 2007 51
Section 6: Accessibility

Websites:
(Cont’d)

Benchmarks

9% published financial statements

in Excel.

50% provided a person’s name for the

IR contact information.

39% provided the PDF of the

annual report broken down
into sections.

52 AR TRENDS 2007
 Some companies direct readers
to their website for additional
commentary through their printed
report. The print and Web version
of the annual report should work in
tandem to strengthen its usefulness
to investors.

5
4. GE

GE’s online annual report expands upon the

printed report to give visitors an even more
thorough understanding of the business. A video
message from the CEO and rollover management
bios are Web exclusives. Monthly investor updates
provide a continual tracking of progress on

Websites:
strategies and goals discussed in the annual report.

5. BP

BP uses a solid navigational structure to keep

the wealth of information on its IR site organized
and accessible. Within the site, the company
provides monthly strategy updates, as well as
audio archives of presentations and quarterly
conference calls. The site also features a selection
of investor tools, a feedback form and the option
of ordering an audio CD of the annual report.

6. BMO

Visitors to BMO’s IR site are met with the latest

news and a list of upcoming events. There is also
a “frequently accessed documents” page for quick
retrieval of the most-searched-for information.
The site is robust, providing the annual report
in sections in both HTML and PDF – and as a
helpful touch, lines in the financial statement
become highlighted when rolled over for easy
cross-referencing.

> More best practices...

Kellogg’s
QUALCOMM
TELUS

AR TRENDS 2007 53
 Who we surveyed:
• indicates annual reports chosen as best practices

We began by ordering reports from 625 Canadian, US and European companies. Of those, we
identified 206 Canadian and US reports to be included in our benchmarking analysis. We did not
benchmark the European reports, but did survey 133 of them for best practices. We also surveyed
all of the Canadian and US reports for best practices. Below are the 220 companies whose reports
were included in our benchmarking analysis and/or identified as a best practice.

• 3i Group plc Calfrac Well Services Ltd. Devon Energy Corp.

Abbott Laboratories • Cameco Corporation Dominion Resources, Inc.
Abercrombie & Fitch Co. • Campbell Soup Company Dow Jones & Co.
• Abitibi-Consolidated Inc. • Canadian Imperial Dundee Real Estate
Aflac Incorporated Bank of Commerce Investment Trust
AGF Management Limited Canadian National Ecolab Inc.
• Agrium Inc. Railway Company Emera Incorporated
Air Products & Chemicals, Inc. Canadian Oil Sands Trust Emergis Inc.
Alamos Gold Inc. • Canadian Tire Emerson Electric Co.
• Alcan Inc. Corporation Limited Energy Savings Income Fund
Alcoa Inc. Canadian Utilities Limited • Entergy Corp.
Algoma Steel Inc. Canfor Corporation EOG Resources, Inc.
Alimentation Couche-Tard Inc. • The Capital Group Companies EPCOR Power LP
AltaGas Income Trust Catalyst Paper Corporation Equifax Inc.
• American Express Company CCL Industries Inc. Extendicare Real Estate
Anheuser-Busch CCS Income Trust Investment Trust
ARC Energy Trust • CGI Group Inc. FedEx Corporation
• Armtec Infrastructure Chartwell Seniors Housing Finning International Inc.
Income Fund Real Estate Investment Trust First Data Corporation
Astral Media Inc. Chevron Corp. FirstService Corporation
Aur Resources Inc. • Chicago Mercantile Exchange Ford Motor Company
Avery Dennison Corp. Holdings Inc. Fording Canadian Coal Trust
Axcan Pharma Inc. Cinram International • Fortis Group
• Bank of America Corp. Income Fund Freehold Royalty Trust
• Bank of Montreal Cisco Systems, Inc. Freeport-McMoRan
• Barclays plc Cominar Real Estate Copper & Gold Inc.
Barrick Gold Corporation Investment Trust Gabriel Resources Ltd.
Baxter International Inc. Computer Sciences Corp. Galleon Energy Inc.
BFI Canada Income Fund Connacher Oil and Gas Limited • General Electric Company
• BHP Billiton plc ConocoPhillips George Weston Limited
Blue Pearl Mining Ltd. Constellation Brands, Inc. GMP Capital Trust
Boeing Company Consumers’ Waterheater Golden Star Resources Ltd.
Bombardier Inc. Income Fund Great Canadian
• BP plc Corus Entertainment Inc. Gaming Corporation
Brookfield Properties Davis + Henderson H&R Real Estate
Corporation Income Fund Investment Trust
Brown-Forman Corp. Deere & Co. Harley-Davidson, Inc.
CAE Inc. Denison Mines Corp. • HBOS plc

54 AR TRENDS 2007
• High Liner Foods Incorporated
Highpine Oil & Gas Limited
• Home Capital Group Inc.
Huntington Bancshares Inc.
• Husky Energy Inc.
IAMGOLD Corporation
Imperial Oil Limited
ING Canada Inc.
• Inmet Mining Corporation
InnVest Real Estate
Investment Trust
Integrys Energy Group, Inc.
• Inter Pipeline Fund
• International Business
Machines Corporation
• ITV plc
• Jazz Air Income Fund
• Johnson & Johnson
JPMorgan Chase & Co.
• Kellogg Co.
Keyera Facilities Income Fund
Keyspan Energy Corporation
Kinross Gold Corporation
Laboratory Corporation of
America Holding
Laurentian Bank Of Canada
Legacy Hotels Real Estate
Investment Trust
Liz Claiborne, Inc.
Lowe’s Cos.
• Macquarie Power &
Infrastructure Income Fund
Magna International Inc.
• MAN AG
Maple Leaf Foods Inc.
Marriott International, Inc.
MBIA Inc.
McCormick & Co.
• McDonald’s Corp.
• The McGraw-Hill Companies
• MDS Inc.
Medco Health Solutions Inc.
Medtronic Inc.
Merrill Lynch & Co., Inc.
Metro Inc.
• Monsanto Co.
Mylan Laboratories Inc.
National Semiconductor
Corporation
Neurochem Inc.
Newalta Income Fund
• News Corporation
Norbord Inc.
• Norsk Hydro ASA
Northbridge Financial Corporation
Northgate Minerals Corporation
NOVA Chemicals Corporation
NovaGold Resources Inc.
Nucor Corp.
Oilexco Incorporated
Paramount Energy Trust
Patheon Inc.
• Peabody Energy
Pembina Pipeline Income Fund
Pengrowth Energy Trust
Petrobank Energy and
Resources Ltd.
• PG&E Corp.
Pinnacle West Capital
Polo Ralph Lauren Corp.
• Potash Corporation of
Saskatchewan Inc.
Power Corporation of Canada
PPL Corporation
Praxair, Inc.
Precision Drilling Trust
• Primaris Retail Real Estate
Investment Trust
• PrimeWest Energy Trust
• Procter & Gamble Co.
• QUALCOMM Inc.
Quebecor World Inc.
Regions Financial Corp.
Reitmans (Canada) Limited
RioCan Real Estate
Investment Trust
Robert Half International Inc.
Rogers Communications Inc.
• Royal Bank of Canada
• Royal Dutch Shell plc
• Santos Ltd.
Saskatchewan Wheat Pool Inc.
Sears Canada Inc.
ShawCor Ltd.
Sherwin-Williams
Shore Gold Inc.
Silver Wheaton Corp.
Sino-Forest Corporation
St. Jude Medical, Inc.
Stanley Works
Stantec Inc.
Stryker Corp.
Suncor Energy Inc.
Superior Plus Income Fund
Synenco Energy Inc.
• Talisman Energy Inc.
Teck Cominco Limited
• TELUS Corporation
• Thomson Corporation
TimberWest Forest Corp.
• Toronto-Dominion Bank
Torstar Corporation
• TransAlta Corporation
Transat A.T. Inc.
TransCanada Corporation
Trilogy Energy Trust
TSX Group Inc.
Tyson Foods Inc.
U.S. Bancorp
Unisys Corp.
• United Technologies
Corporation
• Verizon Communications
Vermilion Energy Trust
Vulcan Materials Co.
Wachovia Corp.
Walgreen Co.
• Wells Fargo & Co.
Western Union Co.
• WestJet Airlines Ltd.
Xerox Corp.
Yamana Gold Inc.
Yellow Pages Income Fund
• Yum! Brands, Inc.
AR TRENDS 2007 55
 For further information please contact:
Craib Group of Companies
42 Wellington Street East, 2nd Floor
Toronto, Ontario M5E 1C7
Tel. 416.363.5206
www.craib.com
Cameron Craib, President
ccraib@craib.com
Elaine Wyatt, Partner
Craib Strategic Directions
elaine_wyatt@craib.com
Kevin Ward, Creative Director
kward@craib.com
Special thanks to our sponsors:
Printed by:
grafikom.MIL
grafikom. is one of Canada’s leading
commercial, digital, specialty and print
management companies. With a specialty
in the print production of high profile
corporate documents such as annual and
CSR reports, they offer unsurpassed expertise
and confidentiality along with exacting quality
and accuracy. Their 24-hour-a-day operations
and equipment redundancy make it possible
for them to provide their customers with
flexible scheduling and last minute changes
while still meeting critical deadlines. They
are located in Toronto, Calgary and Edmonton
and are proud to be FSC certified in support
of responsible forest management.
For more information:
www.grafikom.ca
1-877-grafikom
info@grafikom.ca
Technical support by:
Vistek
photo • video • digital
With stores in Toronto, Calgary, Edmonton
and Ottawa, Vistek is Canada’s leading
retailer of traditional and digital photographic,
video and presentation equipment. Their
comprehensive range of services includes
sales, rentals, repairs, lab services, installation
and technical support to small business
owners, national institutions, professional
photographers, multimedia producers and
the general public.
For more information:
www.vistek.ca
1.800.365.1777 (Toronto)
sales@vistek.ca
56 AR TRENDS 2007
BarnesMcInerney Inc.
120 Adelaide Street West, Suite 2200
Toronto, Ontario M5H 1T1
Tel. 416.367.5000
www.barnesmcinerney.com
Ken Barnes, Managing Partner
kbarnes@barnesmcinerney.com
John Vincic, Executive Vice President
Investor Relations Division
jvincic@barnesmcinerney.com
Photography by:
Brian Pieters
Toronto photographer Brian Pieters
specializes in corporate and editorial studio
and location photography. An award-winning
digital commercial photographer, he has
travelled internationally for over 15 years,
shooting advertising, corporate and editorial
assignments for a prestigious client roster that
includes General Electric, Royal Bank of Canada,
Dupont, Tim Hortons and Bell Canada. Brian
also took the staff portraits on the Craib website,
and produced the video component of Craib’s
AR TRENDS 2007 presentation.
For more information:
www.pietersphoto.com
416.461.6107
brian@pietersphoto.com
Paper supplied by:
M-real
M-real Canada is a subsidiary of M-real
Corporation, one of Europe’s leading
manufacturers and suppliers of fine papers,
paperboard and consumer packaging solutions.
With a total annual production capacity
of 6.3 million tonnes, M-real is the largest
producer of fine paper in Europe. This book
is printed on M-real Galerie Art Silk 80 lb.
Text and 100 lb. Cover – part of the company’s
lineup of high quality papers that are ideally
suited for annual and corporate sustainability
reports. Galerie Art Silk is FSC certified and
contains up to 30% recycled content. M-real
supports and promotes forest certification
as a good tool for proving that the wood raw
material has been sourced from both PEFC
and FSC sustainable-managed forests. All
M-real mills have a certified chain of custody
in place, meaning they know the origin of all
the wood used to make their paper.
For more information:
www.m-real.ca
1.866.62M-REAL
jeff.tapping@m-real.ca
Supporting responsible forestry

Colette Mahon, Commercial Production

Manager, Redwood Group, UK
Redwood is one of the UK’s largest contract publishers
and I have responsibility for procurement of the paper
for all Redwood’s titles including magazines for BT, the
telecom giant, children’s charity NSPCC, travel company
Thomas Cook, retailers Marks & Spencer, Early Learning
Centre, and Boots.
Environmental issues are becoming more important
to everyone and are now a part of the decision making
process in paper choice. All our briefs assess the
environmental credentials of a paper, particularly for those
clients with high values in corporate social responsibility.
Many of M-real’s papers are used in magazine publishing, and here
We do our own annual environmental audit on our key Colette Mahon is shown with a selection of the customer magazines
paper suppliers, including M-real. It is a fundamental part produced by Redwood, one of the UK’s largest contract publishers.
of our client service offering – we don’t want rock-bottom
prices at the risk of letting in a paper with what turns
out to be a poor environmental record. The audit covers
“ Environmental issues are becoming
wood procurement, percentages of certified wood fibre in more important to everyone and
each brand, and EMAS * statements for each mill. High are now a part of the decision making
standards on emissions and water quality are taken as
a given these days, although we are aware of continuous
process in paper choice.”
improvements being made.

* Eco-Management and Audit Scheme (EMAS) is a voluntary initiative

designed to improve companies’ environmental performance.

Fully committed to the principles of sustainability

M-real is committed to promoting sustainable development through its business activities,

taking into consideration the economic, environmental and social aspects of their
operations. Their objective is to ensure both their own and their business partners’ long-
term business success, to contribute to the well-being of people through their products
and activities, and to minimize the adverse environmental impacts of their operations.
They support the principles of the UN Global Compact on human rights, labour, the
environment and anti-corruption. They are committed to advancing these principles
within their sphere of influence.
M-real Corporation defines its commitment to Corporate Responsibility in more detail
2006 M-real Annual Report,
in the company’s 2006 Annual Report, available at www.m-real.ca.
available at www.m-real.ca
With so many new regulations and fresh
approaches coming into play, it’s more important
than ever for a company to communicate its story
clearly and effectively. Printed annual reports still
remain at the heart of the best investor relations
programs, and crafting a top-notch annual report
means understanding current standards and
practices. By staying on top of the trends,
companies can stay ahead of the game.

www.craib.com
www.barnesmcinerney.com