TREASURY & FP&A DRIVING BETTER DECISONS

AGENDA

I. Financial Planning & Analysis Defined (FP&A)

II. Technology impact on Finance & Accounting

III. Sharing Data, Creating Insights

IV. Panel Discussion

V. Recap and Q&A

FINANCIAL PLANNING &

ANALYSIS (FP&A) DEFINED

The SynFiny Advisors definition:

The critical value creation processes, which requires a deep understanding of business fluency, finance, modeling, data systems and processes, and accounting.

This typically combines financial and non-financial data as required to create strategic and operational financial plans.

When done well, these processes are a clear competitive advantage and thus are viewed as critical by senior leaders.”

WHAT IS FINANCIAL PLANNING AND ANALYSIS?

WHICH PROCESSES ARE TYPICALLY OWNED BY FP&A?

Strategic Planning

Budgeting

Forecasting

Management Reporting

Financial Analysis

Capital Planning

Business Modeling

FINANCIAL PLANNING & ANALYSIS AS GROWTH ENGINE

Higher Growth Higher Margin Investments

Competitive Cost Advantage

Improved Business Decisions & Analysis

Investment in Real Time Data & Visualization

Deliver Financial Strategy

via Financial Planning & Analysis

Lower Cost/Improved Service of FP&A Driven By Efficiency/Productivity • +6% Productivity • +25% lower SG&A cost

• Real time data (2 to 5x faster cycle times) • Master data enables analysis

Higher Sales/Lower Cost • Sales increase of app. +~2% per year • Cost decrease of app. +~2% per year

• Faster decisions and actions than competition • Make better investment decisions

TECHNOLOGY IMPACT ON FINANCE &

ACCOUNTING

A TALE OF FINANCE & ACCOUNTING SYSTEMS

COMPARING FINANCE & ACCOUNTING SYSTEMS

AREA OF WORK EARLY 90’S TODAY

Closing Books

Weeks to Months Days to Weeks

Accounting Systems Slow & poorly designed. Mostly locally, un-integrated systems

Fast & well designed. Fully integrated and standard ERP.

FP&A Systems Only excel, highly non-standard FP&A tools available.

Integrated w/ Bank Dial in bank stations, Cashiers, and mailing documents.

Web-solutions, EFT’s, and secure e-communications with bank.

Chart of Accounts No common chart of accounts, Accounts created for each use

Standard chart of accounts. Simplified for business facing use.

Ability to view details Only high level analysis. Unable to view details

Low level analysis. Drill into all levels of transactions.

SHARING DATA, CREATING INSIGHTS

TREASURY AND FP&A

TREASURY & FP&A WORKING TOGETHER

Treasury Owns FP&A Owns By working together

Explain impact of Fx, commodity, and inflation by country

Financial Strategy include impact of Fx, commodities, and inflation

Financial Strategy can be adjusted as new impacts available

Determining which country creates Fx exposures

Incorporate Fx exposures or impacts into sales/cost/profit

Fx driven gaps in Forecast or Budget identified and closed quickly

Explain current/future interest expense or income

Incorporate interest expense or revenue into forecast

Reduce overall interest expense, Increase interest income

Insurance required for catastrophic policies

Current and future forecast of by country or region profits

Reducing overall cost of insurance

Negotiating bank fees or other treasury driven transactional fees

Reflecting bank fees into the budgets

Reduce overall cost of bank or other fees

PANEL DISCUSSION

RECAP AND Q&A

How can Treasury and FP&A work together?

Expect more from Finance & Accounting systems

Big data to create insights and drive decisions

ERP for lower level, real time analytical data

Fx/Commodities modeling for P/L impacts

Work with IT on joint projects to improve data

Attend Dallas AFP and AFP National Meetings!!

TO RECAP

Questions or Comments?

Contact me directly to continue the discussion: Email: jswuest@synfiny.com Website: synfiny.com Mobile: (513) 884-6134