THE 53rd ABAF-BVFA AWARD

FOR BEST FINANCIAL

INFORMATION

24/10/2013

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24/10/2013 3

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53rd

Awards Ceremony for Best Financial Information

Financial reporting: the secrets of the best recipes

THE 53rd ABAF-BVFA AWARD

FOR BEST FINANCIAL

INFORMATION

Luc Van der Elst – Chairman ABAF-BVFA 24/10/2013 5

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Interview Mr. Bart De Smet

CEO Ageas

Winner of the 2012 overall Award

By Douglas Geddes (The Crew)

Award 2013

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Panel

-Wim Hoste (KBC Securities)

-Arnaud Goossens (Emerald Fin. Advisers)

-Ilse Moens (PwC)

Moderator Douglas Geddes (The Crew)

Best Practice: Intro…

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Film

(The Investor Relations point of view)

Prepared by BIRA

Best Practice: Intro

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Best Practice:

Annual Report

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KBC – AbInbev – Telenet – Delhaize – Quest – Belgacom…

Annual Report “Market & Competition”

PwC

Link market discussion to strategic choices

What is clear and what is not

Headline findings – 2013 PwC Pilot Programme benchmarking

40%

Discuss future market trends

83% 11

PwC

External impact on activities

Shanks group

12

13

Befimmo – UCB – Ageas – Cofinimmo…

Annual Report: “Strategy”

PwC

Integrate the business model into other areas of the reporting

What is clear and what is not

Headline findings – 2013 PwC Pilot Programme benchmarking

40%

Make reference to the business model

67% 14

PwC

Base reporting on strategic themes

What is clear and what is not

Headline findings – 2013 PwC Pilot Programme benchmarking

21%

Include strategic priorities

94%

Embed sustainability in strategy

25% 15

PwC

Business model - inputs, outputs and outcomes

Coca Cola - HBC AG

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Umicore – Befimmo – Cofinimmo – Delhaize – Deceuninck …

Annual Report: Risks

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PwC

Integrate the risks into other areas of the reporting

What is clear and what is not

Headline findings – 2013 PwC Pilot Programme benchmarking

23%

Report the principal risks

96% 18

PwC

Risks and opportunities – current and emerging

Schroders

The key risks are assessed in the light of the

current economic and geographical

environment. The probability and dynamics of

potential costs of the key risks are also

presented in a very concise manner.

The diagram indicates the

assessment of the likelihood,

timeframe and impact of the

emerging risks on the

business.

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PwC

Risks and opportunities - risk appetite and risk dynamics

Fresnillo

Shows where there is a

difference between the

risk rating and risk

appetite and sets out

what action is being

taken; gives a clear

indication of where there

have been changes in

each risk during the

year, together with an

explanation.

After identifying nine

principal risks, defines

the individual risks in a

table and describes the

action being taken to

mitigate the risk.

Input to Risks

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What is the future of Annual

Reports?

Annual Report

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Best Practice:

Press releases

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Press Releases: Topline breakdown

Telenet – Belgacom – Deceuninck - AbI – D’Ieteren – Solvay…

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Press Releases: Publication delays

Quest – Barco – Deceuninck – Melexis – Mobistar – Nyrstar…

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Belgacom – EVS – Telenet – KBC – Delhaize – Tessenderlo…

Press Releases: Quarterly Results

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Best Practice:

Investor Relations

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“Dear all,

Bekaert will release its third quarter

trading update 2013 on 14 November

before opening of the Brussels stock

exchange.

Please be informed that Bekaert will be in

closed period as from 14 October

onwards.“

Investor Relations: Alert Service

Deceuninck – D’Ieteren – Recticel – Ablynx – Delhaize …

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Investor Relations: Consensus

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Can social media be useful for

analysts?

Investor Relations

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Best Practice:

Website

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Delhaize – Cofinimmo – Befimmo – KBC – Ageas - Belgacom

Website: Debt Section

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Best Practice

Want to see more…?

•Full Award 2013 presentation (next week) on

www.abaf-bvfa.be

•PwC survey on Integrated Reporting …

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Luc Van der Elst Chairman ABAF-BVFA

Award Ceremony

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The Award Screening Process

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• 51 companies, 70 analysts, 192 valuation forms

Screening Process

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• Annual Report (100 points)

• Press Releases (100 points)

• Investor Relations (200 points)

• Website (100 points)

• Overall (500 points)

Screening Process

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• Companies: 51 (2012: 53)

In: RealDolmen

Out: Devgen / Duvel / Transics

• Analysts: 70 (2012: 74)

Belgium: 57 (53)

Outside Belgium: 13 (21)

Screening Process

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• Good mix Sell-side and Buy-Side Analysts

Screening Process

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Screening Process

• Changes versus last year

Separate guidelines for Biotech companies

Additional horizontal analysis for Press Releases

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• Objective : minimum 3 surveys per company

Quality objective and control

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• Nice distribution of coverage (min. 2 – max. 6)

Quality objective and control

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Results

&

Ranking

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Theoretical

max. Highest score

Benchmarks

Average Average Average

Overall M&S Bel20

OVERALL 500 412,4 337,9 330,3 359,8

1. ANNUAL REPORT 100 84,7 67,1 65,3 71,8

2. PRESS RELEASES 100 87,6 65,1 60,9 72,3

3. INVESTOR RELATIONS 200 173,7 138,4 139,0 144,0

4. WEBSITE 100 81,8 67,2 65,1 71,7

SECONDARY CLASSIFICATION

Info regarding the past 125 104,7 84,7 82,3 91,0

Info regarding the present 285 238,7 196,8 192,4 207,7

Info regarding the future 90 72,5 56,4 55,6 61,1

Aggregate Results

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Annual Report

Average Average AverageOverall M&S Bel20

1. ANNUAL REPORT 100 84,7 67,1 65,3 71,8

1.1 Key figures & ratios 10 9,6 6,9 7,5 7,3

1.1.1. Key figures & ratios 5 5,0 3,8 3,7 3,9

1.1.2. Years of history 5 5,0 3,1 3,7 3,4

1.2 Products & Services and Segments 10 10,0 7,4 7,0 8,0

1.3 Competitive position 10 8,0 5,5 5,1 6,1

1.4 Strategy 20 18,7 12,2 11,4 13,5

1.4.1. Info on strategy 10 10,0 6,8 6,4 7,3

1.4.2. Medium to long term objectives 10 9,3 5,4 5,0 6,2

1.5 Financial section 30 28,7 21,8 21,4 22,6

1.5.1. Quality financial statements 10 9,3 7,3 7,2 7,7

1.5.2. Quality of the Notes 20 20,0 14,5 14,2 15,0

Eg info on intangible assets 5 4,7 3,7 3,7 3,9

Eg info on financial debt 5 5,0 3,6 3,7 3,9

Eg info on pension deficit 5 5,0 3,4 3,4 3,8

1.6 Operational and financial risks 10 8,8 6,7 6,5 7,1

1.7 Other (relevant) info 10 8,7 6,7 6,4 7,2

Theoretical

max.Highest score

Benchmarks

45

Press Releases

Average Average AverageOverall M&S Bel20

2. PRESS RELEASES 100 87,6 65,1 60,9 72,3

2.1 FY/HY results: Numbers 20 18,0 14,8 14,3 15,6

2.1.1. Is set of numbers complete? 10 10,0 7,6 7,3 8,1

2.1.2. Is there YoY comparison? 10 9,6 7,2 7,0 7,5

2.2 FY/HY results: Comments 30 27,2 20,0 18,6 22,5

2.2.1. Changes in topline numbers 10 9,2 6,5 6,1 7,2

2.2.2. Quality of comments 10 9,6 6,7 6,2 7,4

2.2.3. Info on segments/ assets 10 9,2 6,8 6,3 7,8

2.3 FY/HY results: Guidance 10 9,6 5,8 5,3 6,7

2.4 FY/HY results: Publication delays 20 20,0 12,0 10,9 13,8

2.4.1. Time to publish full year results 10 10,0 5,7 5,3 6,1

2.4.2. Time to publish half year results 10 10,0 6,3 5,5 7,7

2.5 Quarterly results 10 10,0 6,1 5,6 7,0

2.6 Other 10 8,4 6,4 6,2 6,8

Theoretical

max.Highest score

Benchmarks

46

Investor Relations

Average Average AverageOverall M&S Bel20

3. INVESTOR RELATIONS 200 173,7 138,4 139,0 144,0

3.1 Availability & Reactivity 20 20,0 15,9 15,8 16,3

3.2 Consistency 20 20,0 15,3 15,3 15,9

3.3 Reliability 20 20,0 15,1 15,0 16,2

3.4 Access to senior management 20 20,0 14,7 15,3 13,3

3.5 Date alert service 20 20,0 14,9 14,2 15,5

3.6 Consensus number 20 20,0 9,9 9,4 12,0

3.7 Analyst meetings & Conf. calls 20 18,7 14,2 14,2 14,7

3.8 Insight business model & activities 20 20,0 13,7 14,1 13,8

3.9 Updates on strategy 20 17,3 13,1 13,0 13,7

3.10 Guidance 20 20,0 11,6 12,7 12,5

Theoretical

max.Highest score

Benchmarks*

47

Website

Average Average AverageOverall M&S Bel20

4. WEBSITE 100 81,8 67,2 65,1 71,7

4.1 Operational information 25 20,3 16,3 16,0 16,7

4.1.1. Info on history 10 9,3 6,5 6,3 6,7

4.1.2. Info on services, products, mrkts 10 9,0 7,1 7,1 7,0

4.1.3. Links to other relevant websites 5 4,0 2,7 2,6 3,0

4.2 Financial information 30 29,0 20,1 18,9 23,1

4.2.1. Archive ann. rep./press releases 10 10,0 7,9 7,6 8,2

4.2.2. Archive recent presentations 10 10,0 6,7 6,1 7,8

4.2.3. Info on financial debt 10 9,5 5,5 5,1 7,1

4.3 Investor relations 20 18,5 13,8 13,4 14,5

4.3.1. Contact details of IR 5 5,0 3,4 3,4 3,6

4.3.2. Subscription service 5 5,0 3,4 3,4 3,3

4.3.3. Financial calendar 10 10,0 7,0 6,7 7,6

4.4 Varia 10 8,3 6,7 6,7 6,9

4.4.1. Info on shareholder structure 5 4,3 3,3 3,3 3,3

4.4.2. Info on corporate governance 5 4,4 3,5 3,4 3,6

4.5 Organisation & navigation comfort 15 13,8 10,3 10,1 10,4

Theoretical

max.Highest score

Benchmarks

48

The Award

Rankings

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3. Cofinimmo

2. Befimmo

1. UCB

Best Annual Report

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3. UCB

2. Belgacom

1. Telenet

Best Press Releases

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3. GIMV

2. Deceuninck

1. KBC

Best Investor Relations

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3. Delhaize

2. Belgacom

1. KBC

Best Website

53

Winner 2011: Belgacom

Winner 2010: Umicore

Winner 2012: Ageas

Not eligible overall 2013 Award:

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5. Belgacom

4. Umicore

3. Telenet

2. UCB

1. KBC

Ranking Overall Award 2013

All screening criteria will be

available on www.abaf-bvfa.be

as from tomorrow

Detailed individual scores will be

made available asap to the

participating companies via BIRA

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Lottery

Offered by

Ann Vanlommel, Managing Director

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