How to Impress Your CFO: A Financial Institution Case Study

Elena Petrou, Share Schemes Manager, Aviva

Siobhan Hurley, Vice President, Global Stock & Rewards Services, Barclays

Marlies Brecher, Share Incentive Schemes Manager, Standard Bank

Don Drybrough, VP Corporate Solutions, Solium

Agenda

•  Panel Introductions •  What Does A CFO Want? –  Influences To Financial Statements –  Analysis Of Influences, Through Various

Models And Scenarios –  Defendable, Auditable Analysis

•  Q&A From Audience

Panelists

•  Elena Petrou, Aviva •  Siobhan Hurley, Barclays •  Marlies Brecher, Standard Bank •  Don Drybrough, Solium

Motivation: What Is a CFO Looking For? •  What Impacts The Financial Statements

Of A Company, And How Do We Measure It? –  Influencers –  Analysis –  Audit

Influencer: Allocating Expense To A Cost Centre

•  Key Driver Is Ability To Allocate Expense By Cost Centre, But Also To Report Within A Cost Centre Hierarchy

•  Expensing Costs To Employees Based On Where They Are Currently (Mobility): –  Allows Functional Performance To Be

Accurately Measured (i.e. True Cost Of Sales Team vs. Marketing)

–  Allows Companies To Be Up-To-Date •  Ahead of HMRC/SARS/IRS, As The Requests Are

Becoming More Sophisticated

Influencer: Allocating Cost by Region (Mobility)

Analysis: Forecasting

•  Forecasting Performance Conditions (Market & Non-market) –  These Have A Direct Impact On P&L

•  When Working Out Year-End Position We Have To Model ‘Scenarios’ –  Impact Of Various Performance Metrics

Analysis: Management Metrics

•  Extrapolating Data From The Numbers –  Number Of Awards By Grade –  Number OF Leavers By Grade

•  Analysing Retention – Are Awards Working?

Analysis: Cash Modeling (HY & FY)

•  Using The Share Price Of The Previous Month To Book Our P&L

Analysis: Redundancies

•  Understanding The Cost of Redundancies (Good Leavers) –  Impact On Various Performance Conditions

(Incorporation To Estimated To Vest...Or Not) –  How Actuals Differ From Estimates

•  Is A Change To Estimated Forfeitures Required?

Analysis: Timely

•  Ability To Run And Create Custom Reports –  Now: On Today’s Data – Not On Historical

Values Or Assumptions •  From Real-Time Reports, To Quicker More

Accurate Analysis And Forecasting, To More Dynamic Inputs –  Time From Idea To Defendable Position Is

Minutes

Audit: Defendable

•  With A Global Footprint And Thousands Of Cost Centres, Being Able To Defend And Reconcile The Smallest Data Element Is Key

•  Expense Snapshots Allow Finance To Lock Down Expense/Liability Reporting By Reporting Period...For Life –  One Snapshot Built On The Previous, Allows

Clean, Reconcile Free Continuity Of Expense

Audit: Automation

•  Effort From Assumptions To Report Is Nominal – Definable Variables –  Reduces Our Work –  Increases Accuracy

•  Validations –  Cleaner More Consistent Data

Reconciliation Of Ideas

•  CFOs Require Good Data To Make Good Decisions

•  This Is Achieved By Including: –  Reviewing And Assessing Financial

Influencers –  Good Data Analysis –  Defendable Reports, Ready For Audit

Thank You! Any Questions?

Marlies Brecher Standard Bank

marlies.brecher@standardbank.co.za

Don Drybrough Solium

don.drybrough@solium.com

Elena Petrou

Aviva elena.petrou@aviva.com

Siobhan Hurley Barclays

siobhan.l.hurley@barclays.com