After the games, it’s already time to start training for the next season. Though certainly true for the biggest global athletic competition, this mindset can also be applied to many other areas of life, such as the translation of annual reports. Another event that gets the hearts racing.
Resource planning begins in the fall at the latest: Capacities are coordinated and translators are booked to ensure that the season runs smoothly.
In our experience, the peak period occurs during the first few months of the new year, when our teams translate numerous annual reports simultaneously in a very short space of time. Then as soon as the results are released, preparations for the next round begin.
Precise, fast and knowledgeable
In today’s global economy, companies tend to operate in an international setting: This means differences in cultural nuances, terminology and linguistic subtleties, but globalization is also reflected in the legal requirements of the various countries.
This is why the translation of annual reports—as well as quarterly and semiannual reports—is one of the most challenging jobs we take on. Here, even more so than for other types of translation, precision, speed and expertise are paramount. It’s a delicate task, because every step of the job, every word and every figure must be exactly right. The process also requires a high level of confidentiality and secure communications.
You have to handle annual reports with very special care
says Senior Group Account Manager Wolfram Reichel, one of our experts on financial communications, speaking from experience. Working closely with other colleagues, he coordinates the team of translators and editors specializing in corporate reporting, financial publications and investor relations.
Well-versed in relevant reporting standards and legal regulations—such as the German Commercial Code, IFRS and CRR— our team translates texts for companies listed in Germany’s blue-chip DAX index and groups whose shares are traded on the German stock exchange, among others, as well as for small and medium-sized enterprises.
This usually involves the translation of annual reports into English or German, but there is also a need for other languages.
Sustainable excellence
On January 5, 2023, the new EU Corporate Sustainability Reporting Directive (CSRD) came into force, bringing with it significant changes to the previously applicable legal requirements for the Non-financial Reporting Directive (NFRD) in the EU. Since then, large unlisted companies, publicly traded companies with at least 1,000 employees and certain companies from third countries with a relevant EU connection have also been subject to a corresponding reporting obligation.
So to what extent does this play a role in the translation of annual reports? Quite simply, the new directive stipulates that sustainability reporting must be an integral part of the management report. This poses additional challenges for everyone involved—not only in terms of the timeframe due to the higher volume of text, but also with regard to the specific sustainability terminology.
In order to meet the new requirements, our team is increasingly consulting with customers so that any spontaneous changes can be coordinated immediately and implemented efficiently.
This also ensures that the terminology subtleties in connection with sustainability aspects correspond exactly to the respective specifications. To this end, our account managers store specific technical terms according to customer preference in a dedicated database, ensuring maximum consistency for subsequent translations.
While the CSRD refers to the legal framework for sustainability reporting, the European Sustainability Reporting Standards (ESRS) define how, what and in which form reporting is to be carried out. Since official terminology must be adhered to in this context, some customers like to have access to a compendium of these key terms.
Our range of services therefore also includes professionally compiled bilingual glossaries on the subject of sustainability, which can be used for any communication in accordance with the applicable requirements.
In addition to terminology, data security is also gaining in importance with the expansion of these reports. After all, certain information must remain confidential until the release of an annual and sustainability report. As a TISAX-certified language services provider, Leinhäuser Language Services guarantees the highest level of confidentiality, ensuring that all sensitive data is protected at all times.
Not only do we take a number of security steps, such as protected discussion platforms, passwords and e-mail encryption, we also regularly conduct data protection training programs for employees and security audits to ensure compliance with the highest standards. Focusing on security and the responsible handling of sensitive customer information creates the sound basis required for smooth collaboration.
Some companies have also given us insider status
Robert Röder, Senior Group Account Manager at Leinhäuser.
Translation is all about timing
Even if the annual reports we receive to translate don’t include a sustainability declaration, the complex subject matter is compounded by an additional challenge: The texts tend to come in waves. While portions of the management report will arrive early, the figures-packed sections—such as the balance sheet, the income statement and the notes to the financial statement—will frequently turn up just days or even hours before the release date.
In short, this means that the process extending from the initial contact to the finished annual report has to run like clockwork.
The biggest problem we face is the lack of time we have to carry out the translation
says Reichel.
If the annual report is supposed to be released in March, we should ideally have all documents translated and edited by mid-February.
Faced with such tight deadlines, translators must be brought on board for the planning of the report at an early stage.
During the peak period—from January to March—six account managers and 15 highly specialized translators and editors will be involved solely with the job of translating and editing annual reports.
Meanwhile, our account managers coordinate the multistep process in the background while serving as the customer’s primary contact partner throughout the process.
For Röder, too, time is the toughest challenge:
Ideally, we will start planning the translation of an annual report six months before its release date. We’ll even hear from many companies as early as August
With this information in hand, our account managers begin assembling their teams, estimating timeframes and coordinating schedules with customers. This leaves enough room for figuring out which texts or steps should potentially be given a higher priority, thereby preventing bottlenecks down the road, while also providing the time needed to ensure the total accuracy of the translation.
Standby service: the reserve force for the deadline phase
We’re also ready when deadlines grow tight. Our account managers set up a standby team that can handle any last-minute changes made to an annual report. As part of this service, a standby manager and a native-speaker translator from the team are available after business hours to take care of any information or changes made shortly before the annual report is to be printed.
For example, it might be that an important board meeting may be held to discuss the numbers on the evening before the print deadline; or a company may work over the weekend to hone the final versions of the texts that will then have to be added to the annual report and the corresponding translation.
To make sure that the job is done quickly and smoothly, we use established file formats such as documents created with special editorial software for financial publications.
Additional financial communications services
The financial communications team works on more than just annual reports from DAX companies and related financial documents. As the name suggests, the team’s expertise spans the entire financial world: They translate financial information and investor-relations texts for customers year-round—from ad-hoc announcements and press releases to invitations to the next annual general meeting.
Our financial communications team will be happy to assist you:
Our sustainability reporting team led by Julia Haas will also help you with any questions relating to the CSRD and ESRS.
