In an age when so much information is disseminated through the Internet, it's no surprise that some companies are looking to online solutions for communicating with investors. So is it possible that the printed annual report is in danger of becoming extinct?

While some public companies claim that moving its annual report to an online format will result in considerable cost savings, many acknowledge that there is a downside to the "notice and access" model. This became evident after the first season that the SEC gave companies the option of notifying shareholders by mail that proxy materials were available online. Those companies that chose to exercise this option instead of mailing printed materials saw a significant drop in the number of shareholders who voted.

There are several possible reasons for this. For example, not all individual investors have access to the Internet. Those that do have access have expressed concerns about the security of financial information on the Internet and the difficulty of reading such complex material on a computer screen.

But one blatant drawback is that "notice and access" places the burden on investors to find and request important information. For many, there is no replacement for holding a printed copy of the annual report in their hands.

More Than Just A Filing Requirement
The annual report has always been and still is an effective, tangible communication document through which a company can generate interest and promote itself. It is a credible expression of the CEO's view of performance as well as the company's vision. Simply put, it raises the level of believability. Though the main function of an annual report is to meet SEC filing requirements and deliver the company's financial information to investors and analysts, a well-crafted annual report can serve to build confidence in the company, a significant benefit in a skittish market.

Those looking to address cost concerns are finding ways to make adjustments that are appropriate for the company and its investors, whether it be printing a smaller quantity or reducing the size of a full annual report, or producing a summary annual report or 10-K Wrap.

For Neenah Paper, It's Personal
The debate on the merits of online versus printed annual reports will continue. But when it comes to Neenah Paper's annual report, there is no debate. After all, there's no more effective way for a company to promote itself than by putting its product in the hands of investors. For those who want instant access to financial information about Neenah Paper Inc. (NYSE: NP), a PDF file of the report as it appears in print is available on the corporate Web site. However, the 112-page printed annual report is a stunning example of the power of premium paper in delivering a solid, well-crafted message - the gold standard.

Designed by Addison of New York, NY, the 2007 Annual Report is a visual expression of a balanced and integrated Neenah Paper. Seven different branded fine papers work together creating a powerful image. Perhaps it's a metaphor for how the acquisition and integration of Fox River Paper brands into the Neenah Paper portfolio only strengthened the company's position as a market leader. 

"The team at Addison did a great job of continuing the Neenah Paper story that they began in the previous year and portraying us as a truly premium paper company. They used a variety of printing techniques to demonstrate what our papers can really do; yet they delivered the important financial information in a very straightforward manner. It's really a clean design and a beautiful presentation," said Tom Wright, Senior Director of Design at Neenah Paper.

The partnership between Addison and Neenah Paper extends beyond the one annual report. Addison has specified Neenah branded papers for several other very distinctive annual reports, including SL Green Realty, The Blackstone Group and Ceres. 

A New Era In Corporate Reporting
A portion of Neenah's report is devoted to corporate social responsibility, as is the case with most annual reports. This typically includes information relating to environmental policies and practices, community involvement and pro bono or charitable work. As aspects of corporate citizenship become more important to investors, however, social responsibility and sustainability reports produced separately from the annual report are gaining in popularity. It can be part of an integrated investor communications package. It's the evolution of the traditional annual report.

"Annual reports continue to be a nice niche segment for the use of a vast array of colors, weights and textures. Corporate sustainability reports are the next wave," Wright adds. "This is a significant growth area for Neenah Paper. Because we have continued to expand our environmentally certified offering, our papers are especially well suited for these types of documents."

By all accounts, change is coming. Changes in format and distribution along with increased emphasis on social responsibility, that is. So we ask the question again. Is the printed annual report in danger of becoming extinct?

The answer is probably not, especially when one considers the lasting value of being able to differentiate the company's message. Are print runs as long? No, and that's probably why the preference for premium uncoated papers is on the rise. People like the natural feel and honesty of them, and they want to make the most of the print budget. And they know what it really means to look good on paper.

To request a copy of the 2007 Neenah Paper Annual Report, click here.

To obtain Neenah Paper swatchbooks, call 1-800-994-5993 or e-mail samples@neenahpaper.com.

For more information on Neenah Papers, visit www.neenahpaper.com.