1. Page 1 | Proprietary and Copyrighted Information Success Through Integrated Reporting Stathis Gould PAIB and Integrated Reporting Lead IFAC South Asian Federation of Accountants / IFAC PAIB Forum Mumbai, 23 April 2016

2. Page 2 | Proprietary and Copyrighted Information Credit: The New Yorker Sustainable Organizations, Markets, Economies

3. Page 3 | Proprietary and Copyrighted Information IFAC and IIRC strategic partners The global profession’s commitment to as a means –Enhancing corporate reporting; and –Enabling resilient and responsible organizations IFAC’s public interest mandate - Focus on profession’s contribution to societal objectives Addressing the problems of the corporate reporting system IFAC and Integrated Reporting

4. Page 4 | Proprietary and Copyrighted Information Integrated Reporting an opportunity to –Create value (internal benefit) –Tell the story (external benefit) Research of IIRC’s Pilot Programme Companies Realizing the Benefits, The Impact of Integrated Reporting Realizing the Benefits, The Impact of Integrated Reporting 71% - strategic benefits from, the most important a change in conversations between the board and management 79% reported improvements in management information and decision making Integrated Reporting – Communicating Value Creation

5. Page 5 | Proprietary and Copyrighted Information Pacioli created a lens through which a business and its performance could be viewed and a way to hold its owners to account. While Pacioli’s focus was purely financial, Mervyn King spearheaded a multi-capital approach to reflect how value is created in a knowledge-based resource constrained global economy. — Paul Druckman, Financial Management, March 2016 From Pacioli to King

6. Page 6 | Proprietary and Copyrighted Information Non-financial Assets (Intangibles)—The Most Important Determinants of Value Measuring & managing intangibles and connectivity between financial and non-financials

7. Page 7 | Proprietary and Copyrighted Information Positioning Integrated Reporting INTEGRATED THINKING Resulting in: Sustainable organizations, financial markets, & economies International Standards Financial Performance Transparency Sustainability Reporting Overall Performance Story Integrated Reporting

8. International Integrated Reporting Council Global momentum towards

9. Over 1,000 organisations do And over 35% say they will 750 participating in Networks worldwide Over 50% of CEOs, CFOs and COOs are moving towards 182 Businesses in Japan do

10. South Africa: Companies listed on the Johannesburg Stock Exchange have been producing integrated reports since 2010 The Integrated Reporting Committee of South Africa endorsed the International Framework in 2014.

11. Japan: Around 200 companies adopted Integrated Reporting Japan's Ministry of Economy, Trade and Industry has endorsed as a means of communicating the long- term value creation proposition of companies.

12. Singapore: The Singapore Stock Exchange produces an integrated report The Singapore Accountancy Commission is working with the Ministry of Finance to set out a route towards Singapore’s adoption of

13. Malaysia: Malaysian Prime Minister, Datuk Seri Najib Razak, has said, “..the Securities Commission, together with professional bodies and other stakeholders, is exploring avenues to enhance the quality of information available to the capital market. One of the options being considered is the eventual introduction of integrated reporting”

14. North America: Harvard Business School research concluded that “more is associated with a more long-term investor base” Businesses adopting include PepsiCo, Microsoft, GE and Prudential Financial Larry Fink, CEO, Black Rock called for CEO’s to communicate their strategic framework for long-term value creation

15. The Netherlands: More than a third of Dutch listed companies are working towards Eumedion, which represents institutional investors’ interests, called on Dutch companies to take concrete steps towards

16. Brazil: Brazilian Stock Exchange BM&FBOVESPA encourages listed companies to produce integrated reports on a ‘report or explain’ principle. The network in Brazil has over 300 participants

17. United Kingdom: The Strategic Report, together with the Financial Reporting Council’s Guidance, is consistent with Integrated Reporting

18. India: The Indian Lab led by the Confederation of Indian Industry and includes 9 leading companies and support from Institute of Chartered Accountants and Institute of Cost Accountants, and the Institute of Corporate Secretaries SEBI has provided a vision and momentum is building

19. Page 19 | Proprietary and Copyrighted Information We are asking that every CEO lay out for shareholders each year a strategic framework for long-term value creation. Additionally, because boards have a critical role to play in strategic planning, we believe CEOs should explicitly affirm that their boards have reviewed those plans. BlackRock’s corporate governance team, in their engagement with companies, will be looking for this framework and board review. —Larry Fink, CEO, BlackRock Momentum – Investor Demand

20. Page 20 | Proprietary and Copyrighted Information Momentum – Investor Demand Efforts by the International Integrated Reporting Council to develop a framework for reporting value creation seem very much in- line with what Mr Fink is suggesting. —Sandra Peters, Head of Global Financial Reporting Policy, CFA Institute

21. Page 21 | Proprietary and Copyrighted Information Public company reporting has become so complicated that what matters to investors can get lost. Our priority is to provide meaningful information that all investors can readily access. For investors to make investment and voting decisions, we don’t believe that more information is necessarily better. Instead, we’ve challenged ourselves to provide better information… —Jeff Immelt, GE 2015 Integrated Summary Report Momentum – Telling the Story

22. Page 22 | Proprietary and Copyrighted Information We use different words in the UK. Strategic Report, not Integrated Report, but we are on the same journey with the same purpose. The principles in a UK strategic report are consistent with an integrated report. And we look forward to continuing to work closely with the IIRC as it pursues its mission in the years ahead. — Stephen Haddrill, CEO, Financial Reporting Council, UK Momentum – Alignment to Management Reporting should not be seen as more reporting

23. Page 23 | Proprietary and Copyrighted Information Sustainable organizations and societies ultimately depend on a changing mindset, purpose, and approach based on integrated thinking IFAC publication November ‘15: –Vision and Framework for Integrated Thinking –Enhances the relevance of finance professionals and links to business partner agenda –Focus on the information needed for decisions that matter to value creation Creating Value with Integrated Thinking available on the IFAC website

24. Page 24 | Proprietary and Copyrighted Information is a journey; it will take more than one reporting cycle –“Don’t try to do it all at once” Linked to strategy –“Forward looking” should not be seen as just additional reporting –“Embed integrated thinking in the organization” Don’t think of the Framework as a list of requirements –“Tell your own, unique, value creation story” You are probably doing some/a lot of this already –“Build on what you’ve got” Implementation

25. Page 25 | Proprietary and Copyrighted Information A profession engaged and connected Exchanging ideas, knowledge and experiences Sharing resources Key staff and volunteers involved How: –LinkedIn –Web based resources coming soon Network for Professional Accountancy Organizations

26. Page 26 | Proprietary and Copyrighted Information IFAC: www.ifac.org/gateway

27. Page 27 | Proprietary and Copyrighted Information IFAC Value Creation Model Public Interest Input Key Resources Key Value- Adding Activities Key Outputs Key Outcomes Societal Benefits + >>> Our Values: Expertise, Integrity, Transparency

28. Page 28 | Proprietary and Copyrighted Information Alan Johnson - Board and finance leader perspective Sanjiv Kumar Chaudhary, ICAI Research Committee Heshana Kuruppu, CPD Committee, CA Sri Lanka Anwaruddin Chowdhury, PAIB Committee, ICA Bangladesh Vrushali Gaud, India Lab update Q&A Panel Agenda