B ENEFITS OF I NTELLECTUAL C APITAL R EPORTING

I MPORTANCE OF I NTELLECTUAL C APITAL Intellectual Capital commonly represents more than half the market value of public Companies In the case of companies like Google and Microsoft, this is as high as 90% Experts agree that Intellectual Capital is the growth driver of the knowledge economy Measuring, managing and publishing information about Intellectual Capital is becoming as important as publishing financial reports Reporting Intellectual Capital benefits a wide variety of audiences 2

B ENEFITS OF AN I NTELLECTUAL C APITAL R EPORT 3 Companies could use an Intellectual Capital Report to measure the effectiveness of their Corporate Strategy and fine tune it Investors and Lenders could use it to understand the Company’s value creation processes and the basis for sustainability of the same in the future Prospective Customers could use it to understand whether the Company has strengths in the areas it desires from its suppliers Potential employees could use it for selecting the right Company where they can hope to make a career for themselves

B ENEFITS OF AN I NTELLECTUAL C APITAL R EPORT … 4 Investment Bankers could use an Intellectual Capital Report for matching potential suitors Bankers could use it to better quantify the risk of lending to the company Fund Managers and Retail Investors could use it for discovering under and overvalued stocks, provided valuation information is published along with the IC Report Finally, Society at large will benefit since the combination of the above benefits will result in efficient utilization of Capital Thus, the wide benefit of Intellectual Capital Reports to a diverse set of stakeholder makes it an invaluable tool for communicating value