What else is contained in the annual reports and what is the significance of it?

Review the management letters and other front matter found in the beginning of the reports. What stands out? Can you draw any initial conclusions about the state of the business? What do the leaders have to say about their company?
Here you need to look at the two reports and determine whether the tone of the chairmans note and other notes by key leaders are positive in terms of how they performed, what were the key achievements, and find what was different from one report to the other.

What else is contained in the annual reports, and what is the significance of it?
List the key elements of the reports and say why they are important. For example the VW reports have extremely clear view of the financial charts that clearly match the balance sheets. This is an indication that the company want to give a better visual feel to their report as investors may not want to take a look at the entire balance sheet.

Compare and contrast the two consolidated statements of income for the company. Consider the yearly operating performance and environmental circumstances (economy, market, trends, etc) that are readily apparent to you as an observer, and/or those mentioned specifically by the management of the organization. – You would have done this comparison in the class and will have a clear understanding of the same. This will help you to answer the next question.

What changes do you notice in tone and content from year to year?
Refer to section above to address this question. For example the VW reports on the capture of market saw a decline from one year to the next. This needs to have a reason. It could have been that another car manufacturing company launched its operations in that region…

What is your recommendation on if this company should be explored further for potential purchase by your organization? Include a rationale for your recommendation.