BUILDING A FINANCIAL ROADMAP FOR SUSTAINING GROWTH September 2013 - PowerPoint PPT Presentation

ASPRI Members’ Nite BUILDING A FINANCIAL ROADMAP FOR SUSTAINING GROWTH September 2013 Titre de la présentation 1

PRESENTATION OUTLINE 1 Key Financial Challenges 2 Building a Financial Roadmap Getting the Right Financial Management 3 Assistance 4 About Mazars

01 KEY FINANCIAL CHALLENGES SUSTAINING PROFITABILITY MANAGING CASH FLOWS AND FINANCING WELL 3 Titre de la présentation Date

1.1 SUSTAINING PROFITABILITY Rising costs will significantly affect an organisation’s profitability and the possibility of a successful IPO. 1 2 3 Uncertain economic Small domestic Price pressures conditions market from competitors Key Challenges 4 5 6 Top 3 costs Rising business Rental increased costs - Manpower over 30% in past 3 (10% or more – - Materials years ASME, 2012) - Rental Source: 1. “The sentiments from the ground”, http ://www.asme.org.sg/downloads/ED%2045%20COMPLETE%20SET.23.pdf 2. Singapore Business Federation, SME Committee Recommendations for Budget 2013 4

1.2 MANAGING CASH FLOWS AND FINANCING The lack of financial resources and strong financial planning know-how will also hamper the IPO process. 2 3 1 More companies Customers take Suppliers want facing cash flow longer time to pay faster payments challenges Key Challenges 6 4 5 Banks becoming Lack cash flow Lack of physical more careful in planning know-how assets for collateral lending to SMEs 5

02 BUILDING A FINANCIAL ROADMAP THE STRATEGY THE IMPLEMENTATION BENEFITS TO YOUR BUSINESS 6 Titre de la présentation Date

2.1 THE STRATEGY All businesses, regardless of size and IPO status, should develop a well- rounded financial roadmap to drive its sustainable growth. Strategic Considerations – 6 Key Issues 1 2 Assess Your Financial Know Your Star Developing Performance Products Your Financial - Past performance - Trace and allocate costs Roadmap - Key growth drivers and barriers - Estimate real costs and margins - Reasons for changes - Impact on pricing 7

2.1 THE STRATEGY 3 4 Size up Your Build Financial Markets Resiliency Developing - Know customer groups - Benchmark against peers Your Financial - Estimate market demand and Roadmap - Manage major controllable costs spend - Establish realistic cost structure - Identify and exploit market gaps 8

2.1 THE STRATEGY 5 6 Develop the Evaluate Your Gameplan Growth Options Developing - Sales and profitability - Organic vs. inorganic Your Financial - Major targets, milestones and Roadmap - Assess cost & benefits gaps - Prioritise and select options - Action plans and stakeholders 9

2.2 THE IMPLEMENTATION Financial success also involves working level stakeholders being well aware of their individual roles and responsibilities Implementation Considerations – 4 Key Issues 1 2 Establish Detailed Operating Plans Understand the Specific Gaps Executing - Individual business units - Business units and departments Your Financial - What needs to be done (the - Resources, people, Roadmap process) infrastructure, partners - Who does it (the people) - Where and when to acquire - When to do (the timing) 10

2.2 THE IMPLEMENTATION 3 4 Establish Raising Financial Forecasting Tools Competencies Executing - P&L and cash flows - Finance as a strategic partner Your Financial - End-user reports - Greater stakeholder awareness Roadmap - Adopt simple, straightforward - Customised training for different indicators stakeholders - Scenario analysis 11

2.3 BENEFITS TO YOUR BUSINESS  Know the real reasons that changes profitability  Know the actions to increase revenue  Achieve cost savings and reduce risks  Having the right options to optimise profitability  Reduce decision uncertainties  A unified and clear direction for everyone 12

03 GETTING THE RIGHT FINANCIAL MANAGEMENT ASSISTANCE INNOVATION AND CAPABILITY VOUCHER (ICV) CAPABILITY DEVELOPMENT GRANT (CDG) QUALIFYING CRITERIA 13 Titre de la présentation Date

3.1 INNOVATION AND CAPABILITY VOUCHER (ICV) What Mazars can Help You Do 2 1 Evaluate and improve planning Manage your cash flows and SPRING and budgeting process working capital better Singapore ICV 3 4 - Financial Strengthen your internal financial Assess your business and Management controls develop plans for future financial growth  SPRING provides a S$5,000 voucher to qualifying SMEs to pay for services to build capabilities  Up to 2 grant vouchers for an individual qualifying company  4 different pre-defined areas 14

3.2 CAPABILITY DEVELOPMENT GRANT (CDG) What Mazars can Help You Do 4 1 2 3 Review past Evaluate profitability Identify & prioritise financial of products & cost savings Identify growth SPRING performance services opportunities business opportunities Singapore CDG 5 6 8 7 - Financial Develop plans to Buy and sell Investor Business partners Management increase sales and business - mergers fund raising sourcing profitability and acquisitions  SPRING funds 70% of the project cost for qualifying companies  Highly customisable scope to suit individual company’s requirements  Intended to meet a wide-range of financial management needs 15

3.3 QUALIFYING CRITERIA SPRING Qualifying Criteria Programme 1 2 3 ICV Physically present Not more than $100 At least 30% local and registered in million annual sales or shareholding Singapore 200 employees CDG 16

04 ABOUT MAZARS MAZARS GLOBAL MAZARS CONSULTING SINGAPORE 17 Titre de la présentation Date

4.1 MAZARS GLOBAL Welcome to Mazars  An international, integrated and independent organisation  Our global firm’s international service offer brings together audit, advisory, Integrated accounting, consulting, tax and legal services. 13,500  Mazars is present in 71 countries 71 Countries Professionals across five continents with more than 13,500 professionals  Turnover of 1 billion euros 250 Offices Our service package allows us to offer tailor- made solutions to large international companies as well as SMEs and individuals. In Singapore, Mazars is a partner and an endorsed service provider of the various Singapore governmental agencies 18

4.2 MAZARS CONSULTING SINGAPORE MAZARS SINGAPORE CONSULTING INTERNATIONALISATION PERFORMANCE ADVISORY ENHANCEMENT ► Performance Enhancement Road Mapping ► Feasibility Studies ► Industry Analysis and Evaluation ► Market Entry ► Corporate Strategy ► Foreign Set-Up Facilitation & Documentation ► Business Planning and Implementation ► International Partner Development ► Financial Review and Benchmarking ► Business Intelligence & Market Research ► Public Agency Strategic Advisory ► Public Agency Policy Advisory Projects done under Projects done under IE Singapore’s Schemes SPRING’s Schemes ► Innovation Capability Voucher (ICV) ► Market Readiness Assessment (MRA) ► Capability Development Grant – Financial ► Global Company Partnership (GCP) Management (CDG) 19 Titre de la présentation Date

Mazars is present in 5 continents. CONTACT Mazars LLP 133 Cecil Street #15-02 Keck Seng Tower Singapore 069535 Tel. + 65 6224 4022 Fax + 65 6225 3974 www.mazars.sg 20 Titre de la présentation Date