An increasing number of countries recognise the need for enhanced transparency around their state-owned enterprise (SOE) portfolio. Drawing from diverse international experiences, the publication Monitoring the performance of state-owned enterprises: Good practice guide for annual aggregate reporting is a step-by-step guide on best practices in annual aggregate reporting. The guide: •develops the business case for annual reporting and “forward looking” performance monitoring of SOEs to support active and informed ownership •provides insights on institutional design and capacity to develop quality annual reporting •offers key financial and non-financial information for inclusion •develops strategies for accessibility, communication and dissemination. The Guide can support newcomers to the practice, as well as policy makers who wish to enhance reporting to better align with the Recommendations of the OECD Guidelines on Corporate Governance of State-Owned Enterprises

1. © OECD |
Monitoring the Performance of
State-Owned Enterprises
KEY FINDINGS
28 January 2022
Good Practice Guide for Annual Aggregate Reporting

2. © OECD |
Key takeways: Overview
• What is aggregate reporting and why is it
important?
• Trends driving enhanced transparency
• Three main block of aggregate reporting
• Typical reporting cycle
• Good practices in publication and dissemination
Annual Aggregate Reporting by State Owners: Good Practices 2

3. © OECD |
What is annual aggregate reporting?
• One-stop-shop for annual reporting on financial
and non-financial performance of a country’s
SOE sector
• Key disclosure tool for state owner
• Recommended by OECD Guidelines
On corporate governance of SOEs (VI.C)
Annual Aggregate Reporting by State Owners: Good Practices 3

4. © OECD |
Why is it important – the business case
Annual Aggregate Reporting by State Owners: Good Practices 4
Active and informed
ownership
• Professional and effective
owner
• Long-term value creation
• Informed decision making
• Connecting the dots
• Accountability, monitoring
and evaluation Open and
transparent
government
• Enhance trust,
stakeholder
engagement, public
sector integrity
• Transparency and
accountability
• Performance and
efficiency
Levelling the
playing field
• Transparency
obligations
• National
competitiveness
• One-stop-shop
• Raise awareness
Drive inter-
connection
and whole-of-
government
approach
Better policy
articultion
and linkages
Develop
metrics to
set, monitor,
evaluate
achievement
of ownerhip
objectives
Enhanced
awareness and
political buy-in and
better
understanding
Raise
transparency
and
disclosure in
SOEs

5. © OECD |
TRENDS – 3 major trends driving
enhanced transparency
Annual Aggregate Reporting by State Owners: Good Practices 5
0 5 10 15 20 25
Independent External Audit
Internal Audit/Controls
State Audit
Ad hoc/other
Large (or majority-owned) SOEs
Listed/Financial SOEs
All SOEs
Centralised
28%
Centralised
w/
exceptions
22%
Coordinated
17%
Twin
track
5%
Dual
11%
Decentralised
17%
1. Better & More Robust SOE
Disclosure
2. More centralised/ coordinated
ownership
3. Upward trend in aggregate
reporting
Aggregate
reporting
(full
portfolio)
37%
Aggregat
e
reporting
(partial)…
Online
inventory
13%
No
aggregat
e
reporting
37%
Source: https://www.oecd.org/corporate/Transparency-Disclosure-Practices-SOEs.pdf

6. © OECD |
Content and coverage of reporting
Block 1: Overview
Annual Aggregate Reporting by State Owners: Good Practices 6
Foreword
• Key events/highlights
• State ownership priorities
• Notable results from the
reporting year
• Signed by head of
government or responsible
Minister/Agency
Portfolio overview
• Key facts and figures
presented "at a glance"
Overview of important
events
• Performance related
• Recent changes updates to
ownership practices/policies
• Legislative developments
• Privatization activity

7. © OECD |
Content and coverage of reporting
Block 2: Financial reporting
Annual Aggregate Reporting by State Owners: Good Practices 7
Aggregate figures on the overall portfolio
• SOE portfolio value, size, scope and sectorial
distribution
• Financial performance indicators: Turnover, profit, cash
flow, gross investment
• RoE, ROA ratios
• Dividends
• Methodology for aggregating
Individual SOE/By sector
• SOE performance in reporting year
• 5 year historical period
• Company information
• Key activities and responsibilities
• Board composition
• Gender diversity
• Opportunities and challenges
• Climate related indicators (CO2 emmissions)

8. © OECD |
Content and coverage of reporting
Block 3: Non-financial reporting
Annual Aggregate Reporting by State Owners: Good Practices 8
Ownership function
•General information
•Size & Staffing
•Placement in government
•Accountability
•Changes in ownership
arrangements
Performance and results
•Implementation of
ownership policy, strategy,
targets
•Portfolio management
•Tracking targets for
financial and public
objectives
•Profiles of important
SOEs, ownership
objectives and rationales
•Key non-financial
indicators
•ESG reporting
Ownership and
shareholding
responsibilities
•Recent developments or
evolution
•Completed or planned
privatisation transactions
•Responsible business
conduct practices
•Appointment and
nomination of boards
•Board statistics
(remuneration, diversity,
board, independence)
•Transparency and dis-
closure requirements
Other relevant areas
•Non-commercial
assistance
•Public procurement
practices
•Cost of public policy
objectives.
•Amount of budget
appropriations or transfers
to SOEs

9. © OECD |
Typical Reporting cycle
Annual Aggregate Reporting by State Owners: Good Practices 9
Month 1
Information
request sent to
responsible
teams in the
ownership
entity for year-
end data
Month 2
Information is
analysed by the
drafting team,
clarification
requests sent,
drafting begins
Month 3
Aggregate
information is
sent back to
ownership
entities for
review fact-
checking,
internal review
process
Month 4
A draft is
prepared
according to
design
specification.
Reviewed by
senior
leadership.
Updated
according to
latest financial
indicators
Month 5
(optional)
Presented/
Debated in
Parliament
Month 6
Public release.
Launch event

10. © OECD |
Publication and dissemination
Annual Aggregate Reporting by State Owners: Good Practices 10
Publication and
dissemination
Launch event
with key
stakeholders,
streamed
online Paper and
digital copy
mailings to
key contacts
and
stakeholders
Press
release and
press
conference
Launch on
web platform
Translate into
3rd language
for broader
audience
Presentation
to the
legislature

11. © OECD |
24 January 2022
Thank you for your attention!
www.oecd.org/corporate/soes/