Why do you need the annual report?

Or how did we at Vizuarna get a chance to develop the tool for annual reports? With the annual report! You don’t believe me? Let me explain.

Why do you need the annual report?

Every smart, responsible and sustainable company understands that print versions of annual reports belong to the past.

First ideas to start the development of the tool for annual reports

In the beginning of 2009 we realized that we will need the fund to finance the great idea we had. Namely to develop a tool that would automatize the development of interactive annual reports. Our main business partner Ljubljanske mlekarne namely said they will need only one print copy of the annual report. We checked and saw that Telekom Slovenije had in 2007 their 600 copies of annual reports reduced to 400 in 2008. Mercator had also 600 copies in 2007 and only 150 for its 2008 annual report. (Later we found the same trend in the USA, where the JPMorgan Chase reduced the copies of annual report in 2009 for 600,000 copies. Yes, they reduced it for 600,000 copies).

Negotiations with banks

We found the grants scheme for loans at the Slovene Enterprise Fund. In that scheme there were almost all banks in Slovenia. With the exception of Unicredit, with witch we were right at that time discussing possibilities of financing. So bad news number one. But there were number of other banks available. We started contacting them. Everybody wanted the balance sheet and income statement and some other forms to be filled in. Some even came to our premises, to others we went to visit them. Every single bank said: NO. Our financial statements for previous year (2008) were namely not so good. And every bank we contacted said that we need first extra capital, otherwise we do not have a bright future in front of us. Bad news number two.

But we didn’t contact one bank that was in the scheme yet. We are talking about NLB, the biggest bank in Slovenia. With not such a good reputation of doing business with small enterprises. Is that going to be bad news number three? Let’s see.

Wwe tried to find out if some of our colleges knows somebody at this bank to help us out. We found our connections.

Two friends helped us. One pointed us to a certain person at the bank. And the other works at that bank. Because of the first friend we were accepted there almost immediately.

The second friend (the one that works there at NLB) suggested we explain why are our financial statements in the shape as they are (which means bad) but even more importantly that we explain what are our plans.

Financial statements are important. But the explanation of your numbers could be of even greater importance.

Annual report benefits

So we had one afternoon to write down the explanation of the annual report. And guess what? It was totally worth it.

The next day our annual report (the financial statements and the page and half explanation in our case) was sent to the analytical department of the bank. And we were quite nervous what is the answer going to be. In less then a day we received a positive answer. We were really surprised. Not just that the analytics’s department judged us as very prospective but also on their speed. It’s good to have friends. That was really a good lesson for us, because with the same financial statements we did not receive the loan at other banks. It did not help that we explained in person our plans and everything. No, the answer was strict no. And other banks even predicted not so bright future for us.

The analytical department of our new NLB bank said on the other hand that no matter our pour financial condition we have great plans that should be definitely supported. So, that’s how we got a chance to develop the tool for interactive annual report with our annual report.

If you would like to find more on how your interactive annual report can help you, read more about nine benefits of on-line integrated interactive annual reports.

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  1. Wow that was unusual. I just wrote an incredibly long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again.
    Regardless, just wanted to say wonderful blog!

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