Annual Report Case Studies

Dollar General Corporation

Staying close to the customer

Developing an annual report to show the company's integration within the community. 

Situation

For more than 50 years, Dollar General had been successfully retailing basic merchandise to low and middle income families. Management wanted to emphasize that they were a neighborhood retailer, close to the customer and able to understand and meet their every day needs.

Solution

That concept of “closeness” was carried out through a simple panoramic drawing which represented each of Dollar General's operations — from stores through distribution centers — in small town and city settings. The annual report was recognized as "Best in Class" among retailer public companies in National Association of Investors Corp. competition.

Turning Point Brands, Inc.

Introducing the company and why it went public

The company explains its IPO and its strategic direction.

Situation

For its first annual report, Turning Point Brands, Inc. needed to introduce its management team and its motivations for going public.

Solution

The cover of the FY2016 report featured a corporate banner hanging from the facade of the New York Stock Exchange that featured the company's logo and those of its valuable brands. The report explained management’s plan to use cash generated by its Zig-Zag cigarette papers and Stoker’s moist snuff operations to finance rollup acquisitions within the sector, reduce debt and invest in corporate infrastructure to prepare for even further growth. 

(To see the 2016 and 2017 annual reports, click the specific image below to download a PDF.)

Kimball International, Inc.

The one-time piano company evolved into a conglomerate

Situation

For years, Kimball International was known throughout the world for its magnificent pianos. Over the years the company had expanded into office, institutional and residential furniture, and into new fields, such as anti-lock braking systems, keyboards and other electronic devices. What didn’t change was Kimball’s approach to business – that the employee was a valued partner in the entire manufacturing and distribution process. The company wanted to convey the importance of this long-term approach to business, particularly because fiscal earnings had been disappointing.

Solution and results

The annual report team – which included management, an outside design firm and Mozaic – produced the theme “Heartland Values, Global Impact.” The book highlighted the company’s core values – among them, persistence toward goals and prudent management of resources. The shareholder letter emphasized long-term value creation, rather than quarter-by-quarter knee-jerk reactions to a constantly changing business climate. Kimball’s message was well-received among investors and employees, and its longer-term focus was recognized. Eight weeks after the report was distributed, the stock traded in a range roughly 20 percent higher than before.

SIGCORP, INC.

Diversifying beyond the electricity and gas distribution business

Situation

The whole system of how consumers buy electricity and natural gas was changing. SIGCORP, a utility in Southern Indiana, wanted to tell its shareholders how it was positioned to do well with coming deregulation because it was already one of the nation’s lowest-cost utilities.

Solution and results

The annual report discussed the ramifications of the changing utility industry and positioned the company's creation of  several non-regulated subsidiaries to broaden and diversify its revenue and earnings streams.

ThermoView Industries, Inc.

Communicating a recovery plan

Situation

Through a series of acquisitions, this small public company had grown to become the nation’s fifth largest home improvement company. But the growth left ThermoView overburdened by debt. Shareholders had witnessed a precipitous decline in the company’s market value.  A new CEO took the helm to resolve the financial and operational difficulties and lead the company's transformation.

Solution and results

The annual report was the centerpiece of a comprehensive investor relations program. The CEO’s message acknowledged the difficulties of the past – but more importantly, detailed plans for recovery and growth.  Informal surveys of the financial community and shareholders showed that the CEO gained significant credibility for putting forth such a public plan and then meeting the milestones that were set forth. 



Addington Resources

Demonstrating coal mining innovation and productivity

Situation

Why couldn’t the best features of underground coal mining be combined with surface mining? That was the idea that Addington Resources chairman and CEO Larry Addington pursued with the development and deployment of a radically new system for the company's Kentucky mining operations. The system eliminated the need (and risk) for personnel to work underground inside a mine shaft. Instead, mining took place at a prepared site by remote control using a camera, lights, a coal mining machine and a series of coal conveyor cars.

Solution and results

The company’s annual report featured a glamour cover shot of the machinery in operation. Inside, the book provided details about the system's development and its promise for enhanced mining productivity and worker safety.  In the months following the report, the company sold manufacturing rights to a major North American company, which built these remote mining machines and marketed them to companies in mining areas all over the world.


Integra Bank Corporation

A focus on restructuring

Situation

Integra Bank Corporation was a regional bank holding company, based in Southern Indiana. The year’s financial results reflected a large loan write-off that reduced earnings, but significantly strengthened the bank. Management’s preoccupation with these concerns meant the annual report production process got started much later than normal.

Solution and results

Mozaic developed alternative directions for the annual report, interviewed management and wrote copy. The bank chose a very simple design with the word “focus” highlighted in a circular cover cutout to draw attention to the CEO's restructuring message. The annual report was completed on time and on budget. The marketing director said, “It was the easiest annual report I have been involved with in my seven years at the bank. We are pleased with the end result and this book accomplishes the objectives we set forth.”


CBT Corporation

Innovation without "glitz"

Situation

A regional bank holding company based in Western Kentucky, CBT Corporation wanted to grow larger by acquiring regional small-town banks. The company wanted its annual report to projecting financial strength and progressiveness, but one that would not appear to waste shareholder money on a glitzy, over-the-top design and bulk.

Solution and results

After extensive discussions with bank representatives, the team developed an attractive, eye-catching yet understated report with the theme, “Beyond the Box.” Considering its growth ambitions, the bank demonstrated how it would go beyond normal boundaries to solve problems and provide financial solutions for customers and businesses (and by implication, potential bank partners).


Kentucky Medical Insurance Co.

Creating an insurance guide for reporters

Situation

The communications director for Kentucky Medical Insurance Company and its sister companies wanted to  strengthen relationships with insurance reporters in the region and, simultaneously, provide a go-to reference to explain insurance terms - particularly focused on physician medical liability insurance. This was during a time when internet resources were not as widely available as they are today.

Solution and results

We created a modular document that explained relevant insurance terms, provided references to additional resources and offered company executives for background explanation or as sources for future stories about liability insurance trends.  The resource helped build the company's media relationships.


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