© Inplenion International AG Berlin, October 10, 2013 Jann Tadorian DOAG Applications 2013 Hyperion Stream Case Study Strategic Financial Planning at Borusan
© Inplenion International AG
Berlin, October 10, 2013
Jann Tadorian
DOAG Applications 2013 Hyperion Stream Case Study Strategic Financial Planning at Borusan
1 © Inplenion International AG
About Inplenion
Agenda
Case Study: Strategic Financial Planning at Borusan
Demo HSF Solution
2 © Inplenion International AG
About Inplenion
Agenda
Case Study: Strategic Financial Planning at Borusan
Demo HSF Solution
3 © Inplenion International AG
Inplenion at a Glance
• International business consulting company headquartered in Switzerland with offices
in Zurich, Frankfurt, Vienna, Athens, Cairo and Dubai
• Catalyst between business/finance and IT
• Highly experienced EPM consultants, specialized in:
Strategy and Risk Management / Oracle Strategy and Scorecard Management and Crystal Ball
Portfolio and Value Based Management / Hyperion Strategic Finance
Planning and Budgeting / Hyperion Planning
Group Accounting and Financial Reporting / Hyperion Financial Management
Business Intelligence / Essbase and Oracle Business Intelligence
• Software Implementation, Training and Support Organization
• > 100 customers
• Oracle Gold Partner
Evaluate &
Optimize
Strategize &
Prioritize
Plan &
Execute
Monitor & Analyze
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INPLENION
PROFESSIONAL SERVICES
Consulting Implementation
Training Support
CLIENT
Our Value to You
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Financial Services
Pharma/Chemical
Telecom
Utilities
Oil & Gas
Retail
Public
Technology
Manufacturing
Customer overview
Conglomerates
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About Inplenion
Agenda
Case Study: Strategic Financial Planning at Borusan
Demo HSF Solution
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Steel Pipe
BMW / Mini
Land Rover
Port Operations
Logistics
Flat Steel
Caterpillar
3 PL integrated
logistics services
Energy
(investment stage)
Renewable energy
Generation (hydro &
wind)
Distributorship
2.0 b USD 1.6 b USD 0.3 b USD 0.01 b USD
Steel
2012 Consolidated Revenues – 4 b$
Shareholders & business partners:
7
Borusan Group Portfolio
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6 business units each with different characteristics:
Each at different stages in the company life cycle
Different growth dynamics and funding requirements
Managed through partnerships with leading global names who
have their own strategic agenda
Separate management teams who want to drive growth in their
own business units
Given this diverse structure, 7-8 large growth initiatives on the table at
any time.
Continuously changing external dynamics with dramatic impact on these
growth plans.
• Can we afford them all?
• How can we structure this initiative portfolio so as to
maximize value to the shareholder?
Borusan‘s Challenge
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Develop a portfolio strategy and deploy company strategic plan
targets accordingly with a top-down view.
Decide for the capital allocation policy.
Analyse funding requirements both at business unit and Holding
level. Determine financial discipline measures where necessary.
Review the strategic plans every year and whenever the need
arises to have a realistic outlook of the «portfolio big picture»
1
2
3
4
They need to.....
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1 A clear portfolio strategy taking into account the «strategic
health» and «value creation potential» of the business units
The Solution
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A detailed, flexible and integrated long term financial model to
capture «big picture view of the portfolio»
3
Holding
BU 1
BU 3
BU 2
BU 4
Invest to grow
- Organic growth
- Plug-in growth
initiatives
Funding
need
Capital
Injection
Capital
Injection
Funding
need
Dividends
Dividends
2
The Solution
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A detailed, flexible and integrated long term financial model to
capture «big picture view of the portfolio»
4
Assessment of growth initiatives and their affordability at the
business unit level:
• Cash flows and balance sheets checked against covenants
• Funding requirements – dividend obligations determined
Develop cash flow of Holding and optimize funding
requirements at Holding level
Develop consolidated group financials
• Prioritize growth initiatives
• Develop a funding plan
• Define financial measures to track the execution
The Solution
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Duration: 9 weeks with 2 consultants and 2 Borusan analysts
Scope: Develop financial planning model for each of Borusan’s strategic business
units. Integrate the businesses’ cash flows and earnings based on ownership levels
and agreements.
Project Plan: 2 phases. Phase 1 – Consultants develop a base system and core set
of accounts that could be used by all of Borusan’s businesses. Phase 2 –
Borusan’s analysts develop business specific “value driver” statistical accounts and
add additional financial statement accounts for Borusan’s individual businesses.
Implementation of HSF at Borusan
Implementation Day
Date
Week Day
Stakeholder 0 0 0
Technical Architecture
System Install
System Integration
System Design
Design Discussions
Technical Design Document
System Basics
Design Acceptance
Core Entity Build
Build Entity Accounts/Groups
Create HSF Entity Reports
Import/Export Interface
Essbase Setup
Single Entity Acceptence Testing
Test Core Template
Test Import/Export Logic
Full System Build
Create Named Entities
Batch Import with Hyperion Products
Build Consolidation Structure
Apply Access Controls
Multi - Entity Testing
Final Training/Support
End user training, overview
End user training, company system
End user training, consolidations
Administrator training
Documentation
Days total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Days/ Resources
Montag Dienstag Mittwoch
6-Jun-12
Donnerstag Freitag
4-Jun-12 5-Jun-12 7-Jun-12 8-Jun-12
51 2 3 4
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Analysis Benefits
• Complete set of “value-driver” accounts for each of
Borusan’s businesses
• Full income statement, balance sheet, and cash flows
for each strategic business unit ~ big picture
• DCF valuation for all business units and consolidations
• Easy what-if, alternative scenario analysis
• Easy to change “funding” management for treasury
planning of operation’s cash flows
On-going administration benefits
• System administered structure to business units’ chart of
accounts
• Time, report, calculation updates made easy
• Clear consolidation structure tree
• Results in a centralized database
The Benefits
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About Inplenion
Agenda
Case Study: Strategic Financial Planning at Borusan
Demo HSF Solution