Best Overall Strategic Value Added by a FTSE100 Company

The four companies short-listed for this award were the highest scoring in FutureValue's Strategic Value Ranking in the 2008/09 reporting cycle. Cadbury was not only the highest scoring in this reporting cycle, it also made a return to this highest standard with an improvement on 2007/08 when the Company had partly taken its eyes off the corporate reporting 'ball' at the time of its Beverages business unit de-merger. The SPS judges considered whether a company that is no longer listed or independent should still be able to win and opined in this case that Cadbury should. Over the last few years the Company has consistently demonstrated in its corporate reporting exemplary standards of strategic thinking, strategic management and strategic capability. We have now lost this irreplaceable corporate reporting role model. Cadbury deserves the recognition, and at least some of those responsible are still there to enjoy this accolade.

Best Overall Strategic Value Added by a FTSE250 Company

The four companies in the FTSE250 index vying for this honour come from very different sectors - insurance, electronic equipment, water utilities and online gaming. Each faces very different challenges in sustaining performance and achieving growth. Indeed, one of them has already received recognition from the Society in 2009. But, it is the water utility that ultimately held the judges' focus this year. Northumbrian Water Group's 2009 Annual Report provides a comprehensive demonstration of strategic leadership. The judges are of the opinion that Report users will be left without any doubt that this is a Company that thinks strategically; pursues effective strategic management; invests appropriately in its underlying strategic capability; and, demonstrates a fundamental, integral commitment to sustainability.

Best Strategy & Objectives

Of the four companies short-listed for this award, the judges concluded that one evidenced notably a group-wide capacity for strategic thinking. There is a strong, pervasive strategic theme to the Brit Insurance Holdings' 2008 narrative - at Group, business unit and functional levels - communicating the sense of a business that is strategically led and strategically managed. All too often use of a 'Q&A' style in a CEO's report can seem trite and insubstantial, and this is invariably due to the quality of the questions posed to the CEO. Here the questions are strategic, focused and help to knit the strategic value adding narrative into the cohesive whole of the narrative and the Annual Report.

Best Sustainability

This is a new award this year. Sustainability is integral to strategic thinking and strategic management. Many companies prepare a separate sustainability or corporate responsibility report. What really matters, 'though, is for a company to show how it integrates its approach to social, ethical, environmental and the related governance processes into the strategy for its business. The Annual Report is the key document for demonstrating this interdependent linkage. There are two mining companies in the short list reflecting major strides being made in this sector and both of these are exemplary. A majority decision by the judges resulted in the award going to Rio Tinto for its 2008 Annual Report. Rio Tinto conveyed to its Report users an integral commitment, sensitivity to a wide range of stakeholders, close attention to environmental management and a fundamentally ethical approach. Independent assurance and external validation serve to confirm the Group's credentials on this issue.

Best Strengths and Resources

Strengths and resources coverage in an Annual Report is the collective expression of a company's strategic capability. This array of references dotted through the narrative provides Report users with evidence of investment in the underlying capabilities the company in question needs to deliver its strategy and achieve goals. Each of the four short-listed companies does this particularly and consistently well. This year, in the judges' opinion one company, Amlin, matched its reported investment in strengths and resources most closely to the demands of its strategy with a particular focus on knowledge, process and leadership. Amlin also managed to capture how it is working across its organisational boundaries with its partners, distributors and suppliers to leverage value. Amlin is a former winner of this award.

Most Compelling Narrative

This is about reporting narrative that tells a really good story to keep its readers' interest and attention throughout, leaving them at the end with a sense of open, objective and transparent reporting that has revealed the realities of the company. The judges were unanimous in their selection of Aggreko for the winner of this award. In its 2008 Annual Report Aggreko developed a fascinating narrative that explored in depth the business, its markets and its strategy. Few companies go to these lengths to engage and enthuse their Report users. It is hard for the reader not to feel the passion or buy into the strategic leadership that the Aggreko narrative displays.

Most Improved Narrative

Substantial improvement in a company's reporting narrative reflects an awakening to the power of more open, transparent and objective reporting for the benefit of all stakeholders, and indirectly to the possibilities of adding strategic value. Each of the four short-listed companies made a significant step change in the quality of their reporting in this 2008/09 reporting cycle compared to the previous period, although three still have a long way to go to join the 'Strategic Value Vanguard' of companies that have particularly high scores. Only one, Lonmin, has moved close to achieving that august 'Vanguard' status. Lonmin added strategic value in virtually every aspect of its reporting narrative this year, projecting the confident image of a company ready for the economic upturn. There is a solid sense of strategic direction, good evidence of strategy in action, a strong and well-explored future focus and a comprehensive and integral sustainability review. The judges were unanimous in their final decision.

Best Online Annual Reporting by a FTSE100 Company

The correlation between adding strategic value in the Annual Report and any impact on share price performance is all to do with influencing investor confidence. In this respect any switch to the use of the online medium may well be very important. All off the four short-listed companies for this award make effective use of the online medium. The judges feel that one, TUI Travel, made its Annual Report the most usable to the full span of its Report users, whatever their expertise or experience of corporate reporting. Good creative use of the internet, effective interactivity and ease of navigability all contribute to the overall usability of the online version of TUI Travel's 2009 Annual Report.

Best Online Annual Reporting by a FTSE250 Company

There is a discernible trend among FTSE250 companies to invest in the online medium to extend and enhance communication of their Annual Reports without investing first in any improvement to the actual narrative content and the strategic value the narrative adds. A notable exception to this undesirable trend is Greene King, short-listed for the 'Most Improved Narrative' award as well as for this award. The judges particularly like Greene King's 2009 online Annual Report because it recognises the importance of the key rules of web presentation and human-computer interface. It scored full marks for navigability, usability and creativity. A shortage of interactivity - hyperlinks to integrate the key content - was the only substantive weakness.