Report Of The Month - Best Annual Reports - e.com ReportWatch

ReportWatch Best Annual Reports

You are here:
ReportWatch
> Best Annual Reports
> Report of the month
> Cascades

Report of the month

June 2009

Download as PDF
Cascades Kingsey Falls, Québec, Canada Report Facts Company name: Cascades, Inc. Fiscal year end: December 31, 2008 Report title: Resolutely Cascades President and CEO: Alain Lemaire Number of books: Two Report length: 104 + 60 pages Auditors: PricewaterhouseCoopers LLP Production: Cascades Communications Design: Ardoise (AR), Paprika (SR) E-mail: investor@cascades.com	Report Rating 4/5 (Rating scale below) Profile-Products (Excerpts, as from the report) The fourth-largest North American tissue paper producer… Cascades produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres…80% of sales in the packaging segment… (Annual Report source) (Italics are own company’s words) Key Figures Sales: CAN$ 4,017 million Operating income: CAN$ 229 million Net earnings (loss): CAN$ (55) million Earnings per share: CAN$ (0.56) Dividend per share: CAN$ 0.16 Return on equity: -4.5% Return on assets: 8.0% Total assets/equity: 3.3X Number of employees: 13,000 (Source: 2008 figures sourced from the annual report) Competitors or Rivals Domtar Georgia-Pacific Weyerhaeuser International Paper Stora Enso UPM Sappi Kimberly-Clark SCA Boise Cascade ...

Triple A > A report that walks its talk, resolutely (report theme): integrated (as stated on p 9), as it combines annuals with a separate Sustainable Development book; Understandable (see Selected Page below), as it plainly introduces the business and its environment; and Memorable, because the simple but highly effective graphical and textual ingredients make it be reader-friendly and look different –especially from the North American league of 10-Ks. > Outstandingly clear charts and graphs facilitate the understanding and also add significant informative value. > Highlights and introductory section give a good snapshot of company position and last years’ figures. > Market positions, trends and conditions clearly set forth. > Comprehensive MD&A, with a good review of business results, an effective use of charts, and a good analysis of financial position and liquidity. > How to report sustainability issues in style -and intelligibly- without sacrificing content? This report doesn’t give all answers, but shows the way for a good starting point. It also shows the interaction with business and products.

Double A > Seven-page risk chapter that covers 15-odd risks. > Ten-year financial information includes a number of major ratios, putting key indicators in a long-term view. > There are not many, but the black-and-white photos in SR are eye-catching.

Simple A > Chart scale and height in Sustainable Development report may distort a bit the picture –and perception. Besides, some of the statements or messages could be more strongly substantiated.

B Sides > Governance matters entirely left outside the core reports. Even the President’s name is guesswork. > Some notes to statements lack details and comments. > Some might question about a totally different design for each book. But why not?

How does the company report in key areas? What are the main report pluses and minuses? The Report Scan gives an overview of strengths and weaknesses, and scores each item. Contact e.com@reportwatch.net

Selected Page (p 14 of Cascades Annual Report 2008)	Rating Scale 5 First-Rate 4.5 Excellent 4 Very good 3.5 Sound 3 Average 2.5 Uneven 2 Common 1.5 Substandard 1 Poor 0.5 Uncompetitive The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.