CFO Barometer 2011 Eng Tags

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CFO Barometer 2011

A TIME OFOPPORTUNITIES?

CSC


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Copyriht CSC 2011. All rihts reserved.

Opinions expressed by contribtors are their own.

Reprodction in whole or in part withot written permission is strictly prohibited


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CSC IN TOUCH WITH CURRENT TRENDS

Within the ramework o its I.D.E.A.S. programme (Inspiration, Debate, Exective

Annal Srveys), CSC carries ot a nmber o barometers every year to analyse

the trends and otlook or key roles within the boardroom (hman resorces, nance,IT, procrement, etc.) at the Eropean level. Each o these stdies, carried ot in

cooperation with independent market research instittes (IFOP and TNS Sores),

involves the participation o hndreds o managers rom the largest bsinesses and

pblic administrationsinErope.Thereslts othesestdies arepresentedat high level

events, organised in varios Eropean cities (Paris, Madrid, Barcelona, Milan, Brssels,

Lisbon, etc.), and are also pblished by partners in the media sector (Les chos, La

Tribne, Challenges, LExpansion, Liaisons Sociales, Il Sole 24 ORE, and others) and

in academia (niversities and leading instittes or higher edcation).

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CFO Barometer 2011


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CONTENTS

11SUMMARY

PAGE 9

26. ALEJANDRO ARANDA. Finance Manager, Spain - Weber Shandwick Spain

28. DANIEL BACquEROET. Assistant General Manager, Finance and Administration - Brink's France.

30. MICHAEL BERAHA. General Manager - BNY Mellon France

32. GIuLIO DELL'AMICO. Partner - McKinsey & Company

34. VINCENzO MARAGLIANO. Chie Financial Ocer - Elica

36. JEAN-PIERRE MELLEN. Chie Financial Ocer - Recticel

38. TATIANA SIMONELLI. Finance Director - Bristol-Myers Squibb Italy

40. FABIO TOMASSINI. Chie Financial Ocer - Nuovo Trasporto Viaiatori

42. HERV VARILLON. Finance, IT and Organisational Manager - Crdit Aricole Leasin and Factorin

46. MARC BENSOuSSAN. Chie Operating Ocer, Soth and West Erope - CSC

PAGE 15RESULTS12

13PAGE 25

TESTIMONIALS

14 PAGE 45ANALYSIS

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THECFOBAROMETER IS A SURVEY THATHASBEEN CARRIED OUT FOR THE 4TH CONSECUTIVE

YEARBYCSC, IN CONJUNCTIONWITH TNSSOFRES.IT IS BASED ON A QUANTITATIVE ANALYSISOF THE TRENDS AND OUTLOOK FOR FINANCEMANAGERS FROM A SAMPLE GROUP OF LARGE

EUROPEAN COMPANIES.


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PROCEDURE AND METHODOLOgY

Thisorth edition othe CFO Barometer was prodcedin conjnction

with the leading market research institte TNS Sores, based on a

srvey carried ot among a sample o nance leaders rom Eropean

companies with over 1,000 employees. They were estioned abot

market position, concerns, reslts, the role o the nance department

and inormation systems.

INTERVIEW METHOD

The srvey was carried ot by TNS Sores sing the CATI method

(Compter Assisted Telephone Interview) between December 2010

and Janary 2011.

TARgET AND SAMPLINg

Private and semi-pblic companies

With a minimm o 1,000 employees Located in France, Germany, the united Kingdom, Italy, Spain,

Belgim and Portgal.

80 managers were estioned (no detailed criteria were applied

regarding activity sector or company sie).These managers represent

the ollowing target positions:

Chie nancial ocer / nance director / nance manager.The sample was adjsted in order to ensre that it was an accrate

representation o Eropean companies rom within the target activity

sectors with at least 1,000 employees.

CFO BAROMETERA EUROPEAN STUDYA TIME OF OPPORTUNITIES?


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1A TIME OFOPPORTUNITIES?

CFO BAROMETER 2011

SUMMARY


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Trends and Outlook forfinance departmentsFINANCE DEPARTMENTS MUST NOW DEVELOP THEIR VISION FOR THE FUTURE, ACTINg AS A gUIDE FORgENERAL MANAgEMENT IN MAKINg LONg-TERM STRATEgIC DECISIONS, IN ADDITION TO ENSURINgPROFITABILITY AND ADEQUATE RISK MANAgEMENT. THIS CAN BE SEEN FROM THE LATEST CFO BAROMETER,

A SURVEY OF FINANCE MANAgERS FROM 80 LARgE EUROPEAN COMPANIES.


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SUMMARY

CFO BAROMETERLARGE EuROPEAN COMPANIES HAVE RECOVERED BOTH BY CuTTINGINVESTMENTS AND BY DRASTICALLY REDuCING THEIR COSTS AND WORKINGCAPITAL REquIREMENTS. THIS RECOVERY HAS BROuGHT PROFITS CLOSE TOTHEIR HISTORICAL LEVELS AGAIN, AND GENERATED COMFORTABLE CASHRESERVES.2011

IN CERTAIN SECTORS, ORDER BOOKS ARE ONLY FILLED FOR TWO OR THREE MONTHSCOMPARED TO SIX TO TWELVE BEFORE THE CRISIS. CORPORATE CYCLES (R&D, PRODUCTION,SALES, ETC.) HAVE SHORTENED, AND TODAY IT IS THE SHORT TERM THAT DOMINATES THEDECISION MAKINg PROCESS.

Anewworldhasarisenromthedisorderothepresentandthepast.

This lobal upheaval has not been caused by the crisis, however it

served only to reveal and accelerate it. Firstly, we should salute the

lobal economy's tremendous resilience and emerin markets'

enormous ability to recover. Havin one up by 4.8% in 2010, the

increase in lobal gDP is expected to reach 4.2% in 2011, even i thisrowth remains unevenly distributed.

The change that we are experiencing is characterised by two main

pheavals. The rst shock is the psrge in digital living and lie

sciences, which changes hman behavior and reveals radical

changes to working, manactring and trading methods. The

second shock is the transer o global economic growth rom the

Atlantic area (uS and Erope) towards the Pacic area (China and

India) and the emergence o China as a major power. The infence

o emerging markets in the global economy has gone rom 25%

in 2000 to approximately 40% in 2010 and cold represent 60%

in 2030.

Not enogh has been done, however, to ndamentally correct the

imbalances at the sorce o the crisis in 2008. Economic revival

policies certainly avoided a worst case scenario. Nevertheless,

China's recrrent srplses still create a global overspply problem.

The expansionist monetary policy o the united States contines

to spport commercial imbalances. And the global monetary base

has shot p since 2007. This sitation means we are conronted by

two main challenges. The rst challenge concerns the redction o

pblic debt in developed contries.

The second challenge relates to restoring growth in developed

contries. We mst devise new sectors o activity, new ranges

o goods and services and new areas o technological progress.

BUSINESSES

In almost all sectors o activity, the crisis is being sed as a driver or

speeding pthenecessarytransormation, lowering prodctioncosts

andreviewingolddogmas.In2009,aterthesharpeconomicslowdown,

bsinessesdrasticallyredcedtheircosts,workingcapitalreirements

andinvestments,withlargercompaniestakingadvantageoavorable

loanconditionslinkedtolowinterestrates. In2010,thebsinessactivity

o large Eropean grops has improved overall, with prots coming

closer to their historical levels. Cash reserves testiy to the speed with

which bsinesses have adapted to a worsened environment.

This cash has not yet been reinvested, mainly on accont o a lack o

visibility as regards the economic ptrn. Going orward, companies

will have to implement a policy o active investment in order to

maintain their position in the new competitive landscape, particlarly

inemergingcontrieswherethereisgrowth.In thebackgrondbehind

the perormance o large bsinesses, however, many SMEs have not

yet rebilt their prots and are still experiencing diclties. In France,savingsonlynancetwothirdsocompanyinvestmentsaverylowlevel.

FINANCE DEPARTMENTS

Financemanagerswereprevioslyresponsibleorensringprotability,

managing risk and monitoring the administrative processes o the

companies they work in. From now on, nance managers mst not

only ensre the company's continity, bt they mst also garantee

its reptation. They are increasingly involved more in orecasting than

in reporting. They project themselves into the tre so that they can

present a broader vision to general management. Three arters o

nance managers claim to spend hal o their time or more on the

strategic aspects o their role.

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CFOs are expected tobe able to respond torequests for information

in real time. Theyhave to rethink theirmanagement andforecasting processesin order to increase theirown responsiveness andmake up for the lack ofvisibility.

THE ACCELERATION OF TIME

The short term dominates or decision making processes, be they

economic, nancial or political. This clt o the immediate keeps on

shortening the time we have or refection and is accompanied by

collective memory loss. Both nance and the company as a whole are

eeling the impact o this diktat o the short term.

Thecrisisplayeda role inacceleratingtimelinesinallsectorsobsiness

activity.Corporatecycles(R&D,prodction,sales,marketing,etc.)have

becomeevenshorter.Thetimelineischangingthewayexectivesmake

decisions. Companies mst be able to react at any point in time and

be capable o immediately reviewing the allocation o their resorces.

Risksandopportnitiesonathree-monthhorionmstbereassessed

on a continos basis in the same way as those over three years.

The crisis has conrmed the act that managing on the basis o costs

and margins alone remains inadeate. While the priority or nance

departments in 2009 was to manage company cash fows and to

srvive, their objective going orward is to project themselves beyondthe crisis and take advantage o the pheavals in progress. They mst

respond to accelerated cycles by more eective management over

theshort term andbygettingmoreinvolvedinthe long-termstrategy.

How can the short term be managed while still seiing opportnities

overthelongterm?Exectivesseadalreerenceasregardsthe time

horion in order to manage a company. There are two management

methods adapted to the dierent company cycles that need to exist

in parallel:

In the short term, reactive management aimed at keeping aneye on risks (which most oten appear to be npredictable) and

ensring that the reslts are achieved;

Proactive management in the medim to long term aimed atidentiying new opportnities and steering the bsiness whiletaking operational and nancial actors into accont.

MANAgINg THE SHORT TERM

The crisis has reinorced the changes that companies are conronted

with.Visibilityhasbeen sharply redced. Order books in some sectors

are only lled or two to three months compared with six to twelve

months beore the crisis. Atomotive manactrers, whose bsiness

model was or a long time based on long cycles with low volatility,mstadaptthemselvestoshort cycle timeswith severefctationsin

demand and high volatilityin the prices o raw materials. In cosmetics,

the accelerated rate o new prodct lanches is allowing revenes to

growmoreickly.Biodermathsscceededindobling itsrevenes

since 2004 by increasing the nmber o new prodct ranges.

In order to ace this challenge, CFOs mst be capable o responding

toreests orinormationin realtime.They havetorethinkandadapt

their management and orecasting processes in order to increase

responsiveness and make p or the lack o visibility. They need to

gain control over all the parameters that are likely to have an impact

on planning so they can provide bsiness leaders with the elements

reired or decision making.

The crisis has orced companies to improve the ality o their

management processes and orecasting abilities. Improving the

reliability o orecasts is a priority or improvement or 56% o nance

managers. Achieving protability objectives remains a major concern

or64% othem,while66%oCFOsconsiderthatmanagementcontrol

and reporting plays an ever more important part in their daily role.

Finance managers need to have management tools that enable

them to make strategic decisions in a very short time period.

Organisation 2.0 is a response to the isse o organisational

management. It enables inormation gathering and reporting

applications and tools to be connected to collaborative portals,

while still meeting the demand or increased analysis, compliancewith standards and key perormance indicators.

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MANAgINg THE LONg TERM

The natre o risk and the reglatory ramework have been sbject to

continoschangeor thelasttwoyears. Increasedcrrencyvolatility,

skyrocketing raw materials prices, mistrst o banks, diclties in

analysing hedging operations, the emergence o new environmental

risks all o these actors make planning and orecasting activitiesall the more diclt. A predictive approach is essential to providing

tre direction or the bsiness going orward.

One o the challenges linked to the economic ptrn is the ability

to redene development and investment plans. Finance managers

are taking part in strategic decisions and negotiations related to

investments, acisitions, divestments, etc. They have to be highly

selective when choosing projects while still ensring the retrn on

capital employed.

They are now spporting operational personnel and helping them

make growth opportnities a reality. They are implementing more

decentralised organisations with operational personnel being givenmore responsibilities. Rhodia is ths giving more responsibility to the

managers o its bsiness nits.

Gaining control over the time horion in orecasting activities is a

priority or 72% o nance directors. They need to take into accont

both short-term risks and long-term opportnities. Now more than

ever, general management needs clarication on the tre and

needs to havealternative scenarios available. There is still demand or

highly detailed reporting, bt this is now accompanied by a search

or orecasting tools that will provide a more strategic vision or the

company. Socit Gnrale, Biomriex and Valo have all revealed

strategic 5-year plans. Lastly, some companies are considering

implementing processes to identiy and monitor risk overall, with

simlations that allow developments in nancial areas to be orecastin accordance with the associated risks.

IN ADDITION TO MANAgINg OVER THE SHORTTERM, MANAgEMENT FORECASTINg NEEDS TOALLOW CFOs TO IDENTIFY NEW OPPORTUNITIES SOTHAT THEY ARE ABLE TO SUPPORT THE COMPANY SSTRATEgIC DECISION MAKINg AND NEgOTIATIONSRELATED TO INVESTMENTS, ACQUISITIONS,DIVESTMENTS, ETC., BY BEINg HIgHLY SELECTIVEWHEN CHOOSINg PROJECTS, WHILE STILLENSURINg THE RETURN ON CAPITAL EMPLOYED.

AND TOMORROW

Actal growth is not achieved by way o excessive pblic debt

bt rather throgh innovation, trade and prot, which remain the

only ways o ensring or development. The global economy has

otstanding drivers at its disposal. The entry into the modern

world o the middle classes in emerging markets, an increase oalmost 3 billion in global poplation in a ew decades, and a wave

o exceptional innovation that has only jst started to nrl all

mark the beginnings o a cycle o strong growth or a long period.

Someobserversnotethatsince2000, theworldhasbeenat thecentre

o a new economic "sper cycle". A sper cycle is characterised by

increased global growth or at least one generation, strong growth

in international trade, rapid rbanisation and investments driven by

technological innovation. Global GDP has dobled in ten years and

cold triple by 2030.

Large Western companies wish to gain access to the middle class

markets in emerging markets, whereas companies in these contriesare interested in the matre markets o Erope and America.

According to experts, the major corporations o emerging markets

shold have collective revenes o uSD 8 trillion by 2020 compared

to uSD 1.3 trillion in 2009. The battle will be over access to resorces:

raw materials, energy, capital and technology. The rivalry between

Western powers and China will intensiy in all these areas.

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CFO BAROMETER 2011

RESULTS


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THE ROLE OF THE CFO

CHANgES IN THE ROLE OF THE FINANCE DEPARTMENT

The crrent period is marked by the end o an nprecedented nancial crisis dring which nance departments were sbjectedto major pressres. The CFO Barometer 2011 shows that the role o the nance department has contined to develop comparedto 2010. This year, the role o the nance department seems to revolve arond compliance with standards and reglations (58%).A total o 54% o respondents also attach more importance to making strategic decisions, while in 2010 the CFO's role consistedmainly o enhancing the spread o a nancial mindset among operational personnel.

33 %

2010

2011

36 %

58 %

42 %

54 %

47 %

51 %

49 %50 %

Respect des normes Prise de dcisions Amlioration de Diffusion de la culture

et rglementations stratgiques la rentabilit de financire auprsCompliance with Making strategic Improving Spreading a

l'entreprise des oprationnelsstandards and decisions company inancial mindsetreglations proitability among operational

personnel

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CFO BAROMETER

CONCERNS OF FINANCE DEPARTMENTS

PRIORITY IMPROVEMENT ACTIONS

This year, 94% o CFOs have made improvements in orecasting a priority, in terms o better control o the time horion.This was already one o the most important actors in 2010, bt in 2011, it is positioned above all other improvement actions.Following the crisis that demonstrated the limits o crrent management modes, CFOs have concentrated on the relevanceo the time horions being examined, and the relevance o inormation, in order to cope with companies' lack o visibility andeective orecasting.

85 %

94 %

86 %

93 %

84 %

88 %

81 %81 %

Matriser lhorizon

temps dans les

exercices de

prvision

(budget, BP, PMT)

Amliorer la

pertinence des

informations des

fins danalyse et

de contrle

des risques

Gagner en agilit

pour rpondre

efficacement aux

questions des

dirigeants

Simplifier les

mthodes

danalyses

et de pilotage

68 %

ner en

nomie

ncire

Control thetime horionin orecastingactivities(bdget,

Improve therelevance oinormationsed oranalysis

Increase agilityto respondeectively toestions rommanagement

Simpliymethodso analysisandspervision

NAIncreaseinancialatonomy

NA

2010

2011

orecast,medim-termplan)

and riskmanagementprposes

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CONTROL

IMPROVEMENTS IN DASHBOARDS EXPECTED

According to the majority o CFOs in Erope (59%), dashboards mst concentrate more on managing protability. The relevanceo time horions in management tools is also estioned: 45% o nance managers intend to review the time horion in orderto improve management control.

59 %

Measre o proitabilityMesure de la rentabilit

54 %

Cot du financementFinancing costs

45 %

Time horionHorizon de temps

44 %

Pilotage des marges de main d'uvreManaging operational margins op 2 (5+4)

5- Trs important

TTop 2 (5+4)

5- Very important

4- Important4- Important

3- Moyennement important3- Medim importance

43% 2- Peu important2- Low importance

1- Pas du tout important1- Not at all important

Cot du risqueCost o risk

INTEREST IN THE DIFFERENT TIME HORIZONS BEINg CONTROLLED

Jst like last year, CFOs are showing strong interest in having greater medim and long-term visibility. In act, hal o theCFOs estioned are more interested in a 3-year horion, and 56% o them attach greater importance to a 1-year horion. Theshort-term horion (1 to 3 months) on the other hand is considered to be more important by only 37% o those interviewed,while this gre was 49% in 2010.

18

51 %

56 % 55 %

50 %49 %

37 %36 %

29 %

27 %

23 %

Budget

1 an

Plan

3 ans

Court terme

(1 3 mois)

Cycle conomique

propre

lentreprise

Exercice

fiscal1-year bdget 3-year plan Short term(1 to 3 months)

Company'sowneconomiccycle

Financial year

2010

2011


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CFO BAROMETER

GOVERNANCE

SIgNIFICANCE OF RISK

Since the crisis, CFOs have kept their important roles in the areas o governance and risk management. The risks associatedwith IT secrity (82%) and with reglations (87%) remain the most signicant concerns or CFOs in 2011. The risks that have atendency to srace dring crises, i.e. the risk o cstomer dealt and the risk associated with the nancial markets, no longergre among CFOs' major concerns in 2011.

88 %

Risk associated with reglations 93 %Risque li la rglementation 91 %

87 %

88 %

Risk associated with IT secrity 96 %Risque li la scurit informatique 82 %

82 %

85 %

85 %

Risque oprationnel et fraudesOperating risk and rad82 %

73 %

NA

NA 2008Risque li au march financier 78 % 2009Risk associated with the inancial markets

201068 %

2011

47 %

Risk o cstomer dealt 76 %Risque de dfaillance client 74 %

61 %

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Attirer de nouveaux investisseurs

Satisfaire les exigences des investisseurs

Renforcer la visibilit de la stratgie

Asseoir la crdibilit du management

Amliorer l'image institutionnelle de l'entreprise

COMMUNICATION

SIgNIFICANCE OF FINANCIAL COMMUNICATION OBJECTIVES

According to Eropean CFOs, nancial commnication mainly serves to establish management credibility (90%) and toimprove the company's corporate image (93%). Financial commnication is becoming more and more comprehensive andintegrated into corporate commnications. Above and beyond the acconting aspects, it is becoming more concerned witheconomic and strategic topics, and increasingly resembles nancial marketing. Attracting new investors, which was a lowpriority in previos years, is even less important in 2011 according to the CFOs estioned.

78 %

87 %

Improving the company's corporate image 87 %

93 %

87 %

92 %Establishing management credibility 89 %

90 %

83 %

Increasing visibility o the strategy91 %

95 %

83 %

71 %

Satisying demands rom investors 81 %

65 %

59 %

2008

35 % 2009

Attracting new investors 45 % 2010

46 %2011

26 %

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CFO BAROMETER

PERFORMANCE OF FINANCIAL MANAGEMENT

PRIORITY gIVEN TO PROJECTS RATHER THAN PROCESS IMPROVEMENT

Redcing lead times is still the priority or nance managers. However, more emphasis is placed on prodcing bdgets (94%)than on drawing p nancial statements (80%). This again conrms the priority given to bdget orecasts rather than tohistorical acconting data. Eciency in stattory reporting is o increased importance compared with last year or 89% oCFOs compliance with standards and reglations is still an important point or CFOs in 2011 in this area. Process improvementis also possible thanks to process optimisation initiatives sch as Lean Six Sigma. Even i these types o projects are not apriority, their importance is increasing year on year.

Rduire le temps

dlaboration

budgtaire

Gagner en efficacit

dans la production

rglementaire

Diminuer les

dlais de

production

des comptes

Mettre en place une

dmarche doptimisation

des processus de type

Lean Six Sigma

69%

86 %

56 %

87 %

83%

89 % 89 %

94 %

53 %

79 %

80 %

61 %

Redcingtime neededto prodcebdgets

Increasingeiciencyin stattoryreporting

Redcinglead timesor drawingp inancialstatements

Implementingprocessoptimisationinitiatives sch asLean Six Sigma

2009

2010

2011

DEVELOPMENT OF SSC FUNCTIONS

There have been some developments in the centralisation o varios activities within the acconting and nance roles. Accordingto the CFO Barometer 2011, general acconting (34%) and the prodction o stattory, scal and reglatory reporting (32%)are the nctions that will develop the most in shared service centres in the short term. Yet, ewer nancial managers want tocentralise nctions sch as IT operations and maintenance and bank acconting than in 2010.

33 %

21

28 %

34 %

24 %

32 %

34 %

30 %

27 %26 %

28 %

24 %23 %

23 %

Comptabilit

gnrale(production

des donnes

comptables)

Production

des reportingde type

rglementaire,

statutaire et

fiscal

Exploitation

etmaintenance

des SI

Comptabilit

fournisseur

Comptabilit

bancaire(rapprochement

bancaire)

Comptabilit

clientGeneralacconting(prodctionoaccontingdata)

Prodctionoreglatory,stattory,and iscalreporting

Operationandmaintenanceo IT systems

Bankacconting(bankreconciliation)

Spplieracconting

Cstomeracconting

2010

2011


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FOCUS ON IT SYSTEMS

PRIORITY OF IT ISSUES

The most signicant IT systems isses according to the nance managers estioned are integrity (93%), secrity (90%)and data accessibility (90%).

93 %

49 %Integrity44 %

Intgrit 4 %

1 %

1 %

90 %

59 %

31 %Secrity

Scurit6 %

2 %

1 %

90 %

45 %

44 %Data accessibility

Accessibilit aux donnes 9 %0 %

Top 2 (5+4)Top 2 (5+4)1 %

5- Trs important5- Very important

4- Important4- Important

78 % 3- Moyennement important3- Medim importance29% 2- Low importance2- Peu important

49%1- Not at all importantStattory developments 1- Pas du tout importantEvolutions rglementaires 17%

5 %

1 %

PRIORITY PROJECTS FOR IMPLEMENTINg NEW IT SYSTEMS

The investment projects or implementing new IT systems in 2011 are aimed mainly at the ality and relevance o inormationrom data warehoses or 92% o nance managers. The next priority relates to the development o decision spporttools. The aim o these projects is to acilitate the decision making process or management and to manage perormance.

33 %

83 %

92 %

80 %

83 %

73 %

82 %

74 %

2010

2011

NA

Qualit et

pertinence des

informations des

entreptsde donnes

Dvelopper des

outils daide

la dcision

Refonte de

lorganisation

des structures

des donnes(rfrentiels)

Mettre en place

des outils de pilotage

ouvert accessible

lensemble descollaborateurs

qality andrelevance o

inormationrom datawarehoses

Developingdecision

spport tools

Overhal o thedata strctre

organisation(databases)

Implementingopen

managementtoolsaccessible to allemployees

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CFO BAROMETER

HR ASPECTS

PROFILES AND SKILLS IN gREATEST DEMAND WITHIN FINANCE DEPARTMENTS

Expert proles are increasingly in demand within nance departments (according to 45% o CFOs): this is the reslt oa desire on the part o CFOs to concentrate on high vale added roles. Expert proles that are capable o responding toast environmental changes contribte the most to vale creation and perormance improvement. At the same time, theimportance o so-called operational roles remains stable.

Increased importanceImportance accrue

Stable importanceImportance stable

Importance rduiteRedced importance

Experts

(trsoriers, analystesfinanciers, experts mtiers)

Productifs

(analystes quantitatifs,comptables)

Chargs de missions

(recruts pour mener bien des projets et/ou

coordonner des fonctions)

45 %

48 %

4 %

21 %20 %

67 %

54 %

11 %

22 %

Experts (cashmanagers, inancialanalysts, expert roles,etc.)

Operational sta(antitative analysts,accontants, etc.)

Project managers(recrited to manageprojects and/orcoordinate nctions)(antitative analysts,accontants, etc.)

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CFO BAROMETER 2011

TESTIMONIALS


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26

"OUR CHALLENGES REMAINTHE SAME: GETTING ACCESSTO FINANCING AND MANAGINGTHE PRESSURE ON LIQUIDITY."


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TESTIMONIALS

ALEJANDRO ARANDAFINANCE MANAGERWEBER SHANDWICK SPAIN

WHAT CHALLENGES WILL THERE BE AND WHAT STRATEGIES WILL COMPANIES IMPLEMENT TO IMPROVE THEIR

GROWTH AND STRENGTHEN THEIR MARKET POSITION? INTERVIEW WITH ALEJANDRO ARANDA, FINANCE MANAGER

AT THE SPANISH SUBSIDIARY OF ONE OF THE WORLD'S LARGEST PUBLIC RELATIONS COMPANIES.

HOW DO YOU SAFEgUARD THE CONTINUITY OFYOUR ACTIVITIES OVER THE LONg TERM WHILE STILLMANAgINg THE SHORT TERM?

Considering the economic slowdown, which is not condcive to risk

taking,Ibelievethatwemstremainattentivetoshort-termopportnities

whilestilldrawinglessonsromtheworkcarriedotdringtheserecent

yearso the crisis.AtWeberShandwick, wehavetriedto optimiseand

maximise available resorces so as to garantee a healthy economic

and nancial balance. We have also worked on minimising the impact

o this nstable economic sitation on or bsiness activities and

have dened the company strategy or the long term. Today we ndorselves conronted with a doble strategic challenge: on the one

hand, we have to review or approach to activities by creating new

departments and prodct lines and by involving new proessional

experts; on the other hand, we need to adapt to new consmption

habits, a direct conseence o globalisation and new technologies,

so as to meet the new needs o or clients and reisitioners. While

we do not intend to abandon or deensive strategies, we still need to

recognise that the leaders o tomorrow will be those who have made

their balance sheets healthier and have dened coherent growth

strategies that allow them to ace new market realities more nimbly

and fexibly. An ability to adapt to change will ths be a key actor or

sccess in an economic environment marked by strong competition

and major instability.

HOW CAN COMPANIES PROTECT THEMSELVES FROMFUTURE CRISES AND STILL gUARANTEE THEIRFINANCIAL INDEPENDENCE?

Severalarticlesspportthetheorythatthemainreasonsortheeconomic

recession were a nancial sector that has rn ot o steam pls a lack

o responsiveness on the part o the nancial reglators in taking

appropriate corrective measres. At present, or challenges remain

the same: getting access to nancing and managing the pressre on

liidity.Financialconditionscontinetoberestrictiveandcompanies

nd that they have excessive debt, which orces them to resort to

divestment o assets in order to generate liidity. It seems clear that

reormotheSpanishnancialsystemisessential; it isnotinsignicant

that savings banks in this contry are restrctring to become private

entities,allowingthemtoremainotsidethesphereoinfenceothe

pblicathorities.Wemst drawlessons romthis trblentperiodso

that we can know clearly where and how loans are granted.

STAgNATION OF WESTERN MARKETS VERSUS STRONggROWTH IN EMERgINg MARKETS: HOW SHOULDCOMPANIES REACT WHEN FACED WITH THIS NEW

ECONOMIC SITUATION?

Overthelastewdecades,emergingmarketshavegradallyincreased

theirshareotheglobalmarkettothedetrimento developedcontries.

It is logical that the arrival o new, more competitive economies on

the market means that we are conronted with greater sector-based

specialisation. Nevertheless, withot this representing a threat, the

rapid growth o emerging markets creates increased prchasing

power there, which improves per capita revene and will also reslt

in increased internal demand or goods and services. This represents

a real opportnity or growth or many companies that wish to adopt

a policy o international expansion. Weber Shandwick's presence

grows stronger rom year to year in these markets, particlarly in

the Asia-Pacic region and Latin America, and crrently represents

10% o the total volme o or global activities.

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"TOWARDS ANENTREPRENEURIALATTITUDE."


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TESTIMONIALS

DANIEL BACQUEROETASSISTANT GENERAL MANAGER, FINANCE AND ADMINISTRATIONBRINK'S FRANCEPRESIDENTASSOCIATION OF FINANCE MANAGERS ANDMANAGEMENT CONTROL (DFCG)

AT BRINK'S, THE FINANCE DEPARTMENT IS NOT SATISFIED WITH JUST SUPPORTING STRATEGY IN THE SHORT AND LONG TERM.

IT MUST ALSO CULTIVATE AN ENTREPRENEURIAL SPIRIT IN ORDER TO CONTRIBUTE TO THE DEVELOPMENT OF THE BUSINESS.

HOW IS YOUR BUSINESS EMERgINg FROM THERECENT TURBULENT PERIOD?

We have the advantage o operating in a niche market: managing the

monetary chain or banks and large retailers. For or varios lines o

bsiness - cash transportation, conting, management o ATMs and

also remote srveillance and airport secrity the ndamentals have

remained good overall. We have however recorded a slight drop inrevene as contract renegotiations have become togher.

HOW HAVE YOU REACTED TO THESE NEWCONDITIONS?

Faced with the pressre on volme and prices, we have adopted a

new pricing approach and have developed new prodcts. Or goal

is to ensre end-to-end management o cstomer needs rather than

one-o services. It's a matter o placing orselves as ar pstream as

possible in the vale chain and getting closer to the cstomer, to the

point o processing crrency on the cstomer's premises. So weve

pt in place a tre integration strategy.

AND HOW DO YOU SUPPORT THAT STRATEgY?

Wemodelthescenariosorthelanchingonewactivities.Thatenables

s to anticipate market reactions and to better assess the acconting

and nancial impact o new prodcts on both s and or clients. In

doing so, we gain a better nderstanding o the activities themselves

andincreaseor proximitytooperationalsta.Forexample,wespply

them with operational indicators that enable them to evalate their

perormance in respect to their goals (revene, cstomer satisaction,

etc.) and to take corrective actions.

HOW ARE YOU RESPONDINg TO THE ACCELERATIONOF DECISION MAKINg CYCLES?

Inordertobeveryresponsive inoractionplans,weneedtobe ableto

project trends on the basis o an analysis o the past. Or concernis to

improveperormancemeasrement,byreinorcingcostmonitoringand

byimplementinginstantindicators.Toachievethat,wehaveintensied

inormation gathering in real time (volmes prodced, hors worked,etc.) in order to be able to generate projections even beore this data

is taken p as gres in the income statement.

HAVE THE EXPECTATIONS OF TOP MANAgEMENTCHANgED?

The major expectation concerns not only constant improvement o

the perormance measrement tools, bt also a proven ability to be a

sorce o ideas to spport the development o the company.

That is achieved rst o all by even closer control o nancial and

operational fows, by the reinorcing o or internal control processes,

andby way oincreasinglyrenedanalysis.At thesametime,weneed

to develop an entreprenerial attitde which implies ghting against

or natral rigor and cation in order to develop other skills sch asboldness, creativity and vision.

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"UNDERSTANDINGCUSTOMER NEEDS."


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TESTIMONIALS

MICHAEL BERAHAGENERAL MANAGERBNY MELLON FRANCE

COMING OUT OF THE CRISIS, THE BANK OF NEW YORK MELLON IS SHOWING POSITIVE RESULTS. MICHAEL BERAHA,

THE GENERAL MANAGER OF BNY MELLON FRANCE, EXPLAINS THE BANK'S STRATEGY AND BREAKS DOWN THE

ROLE OF THE FINANCE MANAGER.

HOW DO WE RETURN TO gROWTH?

Thecstomerhastobeatthecentreoorstrategy.Wedidn'tsertoo

mchromthecrisis:withuSD25 trilliono assetsndermanagement

oradministrationBNYMellon istheworldnmberone inthisarea,and

is 8th or 9th in the world or assets nder management with uSD 1.1

trillion (as at December 31, 2010), and or revenes are split 3/4 - 1/4

between these two areas o operations. In the united States, we have

a triple A nancial rating. Today, we're concentrating on the location

o or bsiness activities so as to be closer to or cstomers, and on

nderstandingtheir needs.Or regionsor development arerstoall

in Erope, then in Asia and Latin America. Seventy-ve percent o or

revene comes rom the united States: we are aiming or a balance

between this and the rest o the world.

HOW CAN THE COMPANY BETTER PREPARE FORMARKET FLUCTUATIONS?

The market sitation is an intrinsic part o or strategy. The more

marketsfctate,themoreweprot:we likevolatilityandvolme.Their

increase is integrated into or bsiness model. I the global nancial

market does not take o again this year, then we will be able to take

advantage o the sitation. We have liidity we can invest wherever

seemsrelevanttos:inEropein2010,weaciredInsightInvestment,

BhF Asset Servicing GmbH and PNC GIS. Each o these transactions

allowed s to expand or expertise and get closer to cstomer needs.

These are or gide and knowing where we want to go allows s to

benet rom the crisis.

WHAT ARE THE PRIORITIES FOR FINANCEDEPARTMENTS IN THIS UNUSUAL PERIOD?

It's all abot showing that there will be a retrn on investment, and

ensring that nancing secred will be sed wisely. An important

indicator is positive operating leverage: revene growth mst be

higher than any growth in costs, even thogh or operations reire

mch investment; each year a large part o or revenes are spent on

IT investment. In addition, the rising cost o capital is something we

monitor very closely.

WHAT IS THE ROLE OF THE FINANCE MANAgER?

Apart rom their traditional remits(rigor, nancial control, reglation,

etc.),theydirectcashintoinvestmentsthataregoingtogeneratethebest

positive operating leverage. BNY Mellon's image is a highly reassring

one: the market players who choose s know its sae to work with

s. Or balance sheet has grown dring the crisis becase they have

investedtheirliidassetswiths.TheCFO'sroleis centralinselecting

the investments that will be made. Were not too adventros, and

its precisely that which makes s dierent and makes s sccessl.

HOW ARE COMPANIES REACTINg TO THE STAgNATIONOF WESTERN ECONOMIES AND STRONg EMERgINg

MARKET gROWTH?

For s, Erope is a growth region: it is a market that remains highly

ragmented, bt is forishing thanks to strctral and reglatory

changes. We want to contine setting p activities there, knowing

that I already have roghly 10,000 colleages in Erope, and that

together we have managed Eropean cstomers or over a centry!

Asia interests s in the longer term: it's a gamble, whilst Erope is a

strategy which is at the centre o or hopes and desires, and is where

we see new opportnities in the short term.

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"NOWADAYS, THE CFO MUST PLAY THEROLE OF A PEER IN MAKING STRATEGICDECISIONS, WITH AN ABILITY NOT ONLYTO INTERPRET THE WEAK SIGNALSCOMING FROM THE MARKET BUT ALSOTO REACT PROMPTLY TO EXTERNALAND INTERNAL FACTORS."


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TESTIMONIALS

GIULIO DELL'AMICOPARTNERMcKINSEY & COMPANY

THE ROLE OF THE CFO IS UNDERGOING RADICAL CHANGE TO BECOME A FIGURE THAT CAN COMBINE PLANNING AND ANALYSIS,

BUT ALSO ONE THAT IS INCREASINGLY INVOLVED IN STRATEGIC DECISIONS AND ABLE TO CONTRIBUTE DECISIVELY TO THE VALUE

CREATION PROCESS OF THE COMPANY.

WHAT CAN THE CFO DO NOWADAYS TO ENSUREBOTH BUSINESS CONTINUITY AND gROWTH? WHATMEASURES HAVE BEEN TAKEN BY YOUR COMPANY TOgET THROUgH THIS DIFFICULT PERIOD?

Whatis ndamentalistheprogressiveevoltionotheroleotheCFO.

From being a process manager who carelly controls the bsiness,

he is trning into a bsiness partner who ocses on planning and

analysis, isdeeplyinvolved inbsinessdecisionmakingand whotakes

a orward-looking approach in order to become a vale partner who

bringsdistinctivecompetenciestocompany.Nowadays,the CFOmst

play the role o a peer in making strategic decisions, with an ability

to interpret the weak signals coming rom the market and to react

promptly to external and internal actors.

In addition to the normal nctions o the CFO, he/she plays a key role

as a vale partner regarding:

Active management o the company's asset portolio: decisionsrelated to the managing the companys presence, in terms o

geographic location, prodct range and distribtion channels

- the determining actors or growing the bsiness. In the last

10 years, the expansion o market presence together with

M&A activity represented 95% o the growth generated by

a sample o 720 large companies;

Investor relations and commnication, which reires a goodnderstanding o the natre o the company's investors and

the management o adeate commnication with them;

Measrement and perormance management at a highlevel o granlarity (every single element o perormance),

which links the metrics o the prot and loss accont and

cash fow to the allocation o capital employed and ths

the creation o vale.

WHAT CAN THE CFO DO TO PROTECT THE BUSINESSFROM POSSIBLE FUTURE CRISES AND, AT THESAME TIME, ENSURE THE COMPANYS FINANCIALINDEPENDENCE?

Inadditiontotheactionsalreadymentioned,nowadaysitisndamentalto

haveaproactiveapproachtoriskmanagement,throghtheidentication

and the prioritisation o key bsiness risks, the measrement thereo,

and the adoption o appropriate measres or mitigating or covering

criticalevents.Onemstnotneglectthe importanceo strategicplanning

that takes into accont alternative scenarios derived rom the trends

associated with varios macroeconomic variables that are relevant

or the bsiness, and identiying or each scenario the varios actions

to take. Last bt not least, it is important to think o and implement

stress tests that take into accont not only possible changes in the

key drivers o the bsiness, bt also the occrrence o critical events.

HOW ARE YOU REACTINg TO THE NEW ECONOMICSITUATION, CHARACTERISED BY THE STAgNATION OFWESTERN MARKETS AND STRONg EMERgINg MARKETgROWTH?

It is important to seek and to achieve growth by leveraging ones own

distinct competences and identiying at a granlar level (in terms o

geography,prodctor channel)theopportnitiesorgrowththatexist

in Western markets. It is also necessary to invest in those high growth

markets that prove to be more compatible with the presence and thecharacteristicsothecompany,andintowhich itcanmoreeasilyexport

its own distinct competences.

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"THE CFO PLAYS A KEY ROLEIN SPREADING A MINDSET OFPERFORMANCE MEASUREMENT,WHILE AT THE SAME TIMEMAINTAINING RIGOROUS COSTCONTROL THROUGHOUT THEBUSINESS."


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TESTIMONIALS

VINCENZOMARAGLIANOCHIEF FINANCIAL OFFICERELICA

IN ORDER TO CONTINUE TO GROW IN A MATURE MARKET, ELICA LEVERAGES ITS CAPABILITIES IN PRODUCT AND

PROCESS INNOVATION TO SUPPORT A STRATEGY OF INTERNATIONAL EXPANSION AND HIGHLY SELECTIVE M&A,

FURTHER REINFORCING ITS TOP OF THE RANGE POSITIONING.

WHAT CAN A CFO DO TO ENSURE BOTH BUSINESSCONTINUITY AND gROWTH?

Personally, I believe that there can be no sstainable bsiness growth

withot increased attention to asset strength and nancial fexibility.

In this regard, the CFO plays a key role in spreading a mindset o

perormance measrement and rigoros cost control. Moreover, the

CFO hasto steer investmentsin the core bsiness, whilesaegarding

nancialfexibilityandselectingthebestopportnitiesintheM&Amarket.

To overcome the crisis, Elica took nmeros governance measres

in terms o both the bsiness and nance. In particlar, Elica prsed

processandprodctinnovations,thsincreasingmarketshare inevery

market segment in which we operate. In addition to this, we achieved

very good reslts interms o cost management, capex rationalisation,working capital optimisation and nancial risk management.

WHAT CAN THE CFO DO TO PROTECT HIS BUSINESSFROM POSSIBLE FUTURE CRISES?

In a matre sector like ors, either the bsiness has the strength and

capabilitiesnecessarytogrowinasstainablemanner,oritisinexorably

destined to old.


Since2006,Elicahasprsedapathointernationalisationbyopeninga

bsinessnitinMexico,aimedatservingAmericanmarkets(bothNorth

and Soth) and by opening a actory in Poland near the prodction

plants o or main OEM clients and Eastern Eropean markets. This

trendacceleratedoverthelasttwoyears,dringwhichElicacompleted

an acisition in the very high-end segment o kitchen hoods in

Germany in 2008, and one in China in September 2010. In May 2010,

Elica also signed a joint ventre agreement in India. In Germany, the

acisition had as primary goal the development o the sales o Elicabrands in the German-speaking markets. The operations carried ot

in Asia will promote or expansion in markets with the astest growth

rates in the world.

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"EVOLVING TO AN OPTIMALCAPITAL STRUCTURE, SO WECAN TAKE ADVANTAGE OFSTRUCTURAL MEGATRENDS."


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TESTIMONIALS

JEAN-PIERRE MELLENCHIEF FINANCIAL OFFICERRECTICEL

IN RECENT YEARS RECTICEL, WHICH MANUFACTURES VARIOUS POLYURETHANE BASED PRODUCTS, HAS FOCUSED PRIMARILY ON

THE AUTOMOTIVE SECTOR. IN THE WAKE OF THE ECONOMIC CRISIS AND LOWER MARGINS IN THE SECTOR, THE COMPANY IS NOW

CHANGING COURSE. AS OF NOW THE EMPHASIS WILL BE ON NON-CYCLICAL SECTORS WITH STRUCTURAL GROWTH TRENDS,

AND NEW NICHE PRODUCTS TAILORED TO CUSTOMER REqUIREMENTS. THE TASK OF CFO JEAN-PIERRE MELLEN IS TO ENSURE

THAT THE CAPITAL STRUCTURE AND INTERNAL ALLOCATION OF FINANCIAL RESOURCES SUPPORTS THIS NEW STRATEGY. CASH

FLOW OPTIMISATION AND SYNERGIES WILL PLAY A KEY ROLE IN THIS.

HOW IS RECTICEL PLANNINg TO gROW FURTHER INTHE CURRENT ECONOMIC CONTEXT?

In 2010 Recticel changed its strategic direction, moving away rom

or overdependence on the atomotive sector. In tre we will ocs

on or growth areas in which we can take advantage o strctral

megatrends, thanks to or knowhow and technological capabilities.

The rst is energy saving. Recticels inslation prodcts are an ideal

response to the growing awareness o the need to redce energy

consmption. Or bedding activity capitalises pon the trend toward

wellnessandcomortdringsleep.Themarketorwaterconservation

is also very promising. Water absorbent polyrethane oam is ideally

sited or agricltral applications in contries where water is scarce.

And lastly, even the atomotive sector is a growth area, althogh one

whichdoesntreireinvestmentin additionalcapacity.Orpolyrethane

lmsoramongothers dashboardcoatings t perectlyinthecontext

o continosly redcing the weight o cars and ths also their el

consmption. We intend to geographically diversiy the inslation

and bedding activities, also by way o acisitions. In addition, well

ocs on China, which represents signicant growth potential or all

or activities, and where Recticel has already been present or many

years, albeit on a limited scale.

WHAT ROLE DOES THE CFO PLAY IN THESE PLANS?

Fromthebeginning,asCFOI wasdeeplyinvolvedinthedevelopmento

thisstrategy.Itssccessdependsonrigorosperormancemanagement.

The strong emphasis on cash perormance was a necessary evoltion

or Recticel, given or traditionally high debt ratio in the past. Today

we examine every investment to determine i it ts with the strategy

andoersscientnancialretrn.Riskmanagementisalsoessential.

Recticel isdrivenbyaverystrongentreprenerialcltre,btthe rge

to take on new challenges shold be accompanied by a thorogh

nderstanding and management o risk. As CFO I rely on a well

developed internal control system to manage these things.

SO YOUR FUNCTION IS PRIMARILY ONE OF CONTROL?

Absoltely not! I see mysel in the rst place as a challenger, a

catalyst. As CFO I have the considerable advantage o being above

the divisions. And its rom that perspective that I can stimlate the

bsiness managers or example, to seek synergies which is also

one o the pillars o perormance management. When an investment

is being considered, its also the role o the CFO to ask the right

critical estions.

WHAT ARE THE MAIN CHALLENgES FOR RECTICEL INTHE NEARBY FUTURE?

First o all, to cope with continosly increasing raw materials prices,

among others by way o synergies, so that we can make the most

o economies o scale. In addition, we need to roll ot or projects in

the area o prodct development as ickly as possible. The water

absorbent oam is a nice example o this. In tre we intend to oer

evenmoretailorednichesoltionsto orindstrialcstomers,btthat

will only be easible i we can generate enogh volme in the more

traditional sectors.

AND MORE SPECIFICALLY, IN FINANCIAL TERMS?

My most important objective is the rther optimisation o or capital

strctre, partially thanks to a less volatile and stronger cash fow.

Recticelsnewstrategyisocsedongrowth.Nowthatwe haveclearly

dened or areas o activity, we need to have the necessary nancial

room to manoevre so we can seie growth opportnities!

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"A CFO CAN AND MUSTBE THE CEO'S BUSINESSPARTNER, HELPING HIMIN THE DEVELOPMENTOF STRATEGIES."


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TESTIMONIALS

TATIANA SIMONELLIFINANCE DIRECTORBRISTOL-MYERS SQUIBB ITALY

BRINGING TOGETHER PHARMA AND BIOTECH BUSINESS SINCE 2007, BRISTOL-MYERS SqUIBB HAS FOCUSED ON A STRONG M&A

STRATEGY AND ON A THOROUGH RATIONALISATION OF ITS PRODUCTION NETWORK, BECOMING THE PHARMACEUTICAL COMPANY

WITH THE MOST INNOVATIVE PIPELINE, AS RECOGNISED IN THE R&D DIRECTIONS REPORT.

WHAT CAN THE CFO DO NOWADAYS TO ENSUREBOTH BUSINESS CONTINUITY AND gROWTH? WHATMEASURES HAVE BEEN TAKEN BY YOUR COMPANY TOgET THROUgH THIS DIFFICULT PERIOD?

In my opinion, bsiness continity and growth are not in confict with

each other, bt rather mst be part o a single holistic strategy.

Analysis o the pharmacetical sector, and specically the Italian one,

showsthatitiscrrentlycharacterisedbya all ingrowthratesandlower

margins,orreasonsthatarenotentirelyattribtabletotheglobalcrisis.In

ordertomeetexternalmarketreirementsandcreateaondationor

tresccess,at theendo2007,BristolMyersSibb(BMS)decided

to transorm itsel into a biopharmacetical company, by combining

thebesto thetraditionalpharmamodel(strongcompetenceinclinical

trialsandtheapprovalprocess,nancialsolidity,geographicscopeand

penetration) with the best o the biotech model (innovative research,

agileandentreprenerialcltre).Sincethen,BMShasalwaysoperated

in acoherentmanner, ocsingon prescriptiondrgs(leavingasideall

theothersecondarybsinessesthat itwasprevioslyengagedin)and

concentrating on the development o innovative molecles or cring

seriosdiseaseswithastrongsocial impact.Thepipelinehascontined

toevolve and,asnancial analystshave conrmed,ithasbecomeone

othemostpromisinginthesector, inthevetherapeticareasinwhich

it competes. In addition, we have prsed a very innovative approach

by integrating internal research with a selective acisition strategy

called String o Pearls, which has led to ten important acisitions in

lessthanthreeyears.Inaddition,the decisiontoenterintopartnerships

has allowed the company to redce the risk o clinical trials and, at thesametime,tosharethecostodevelopmentandmarketing, leveraging

the competencies acired rom each partner. In short, its a win-win

approachthatoptimises retrnorpartnersbyavoidingextraordinary

nancialoperations(mergersand/oracisitions),whichdonotgenerate

immediate vale or shareholders, as has been widely demonstrated

in varios cross-sector analyses.

BMS has also reported excellent inancial reslts thanks to the

implementation o initiatives aimed at increasing prodctivity, by

rationalising the prodction network, ocsing on core competences

and otsorcing those activities which specialised players can do

better than in-hose organisations.

WHAT CAN CFOS DO TO PROTECT THEIR BUSINESSESFROM POSSIBLE FUTURE CRISES AND, AT THE SAMETIME, SAFEgUARD THE COMPANY'S FINANCIALINDEPENDENCE?

There is no panacea, bt one can, and indeed mst, prepare or the

tre in the best possible way, making the most o not only prodcts

and services, bt also o the bsiness and management models.The

analysis o sccess stories illstrates the importance o thinking and

actingonamedim-termbasis, strikingabalancebetweenimmediate

andtreinvestments,orecastingdevelopmentsinreerencemarkets.

O corse, we dont have a crystal ball, bt there are varios types o

what-ianalysesthatcanbe sedtoidentiy possible tre scenarios.

Occasionally some otcomes may seem absrd and disastros, bt it

is necessary to make an eort to nderstand the nderlying rationale.

Ocorse, ailreispossible;orthisreason, itisndamentaltomeasre

and monitor risk, to have alternative plans, and to have the corage

to stop new projects whenever they prove to be inadeate.Throgh

long-termnancialorecasts, riskadjstedmodels,choicemanagement

andthedevelopmento alternativeplans,theCFOcanandmstbethe

CEO's bsiness partner, helping him in developing strategies. Added

valeiscreatedbyathoroghknowledgeo thebsiness,thecompany's

operational bsiness context and its bsiness partners. Regarding

nancial independence, there is denitely no garantee o avoiding

possibleacisitionbyanothercompany. Itisalsotrethatcompanies

that are capable o planning their own tre and o lly exploiting

their potential enjoy good ratings not only rom nancial analysts, bt

also rom investors. ultimately, I dont think one shold be scared oacisitions, as they are oten nothing more than the recognition o

the companys vale, and invariably whoever is bying will integrate

the best parts o the acired company: prodcts, bsiness models,

and sta. Excellence is a winning card even in this case!

HOW IS YOUR COMPANY REACTINg TO THE NEWECONOMIC SITUATION, CHARACTERISED BY THESTAgNATION OF WESTERN MARKETS AND STRONgEMERgINg MARKET gROWTH?

Innovation and excellence are always rewarded. One shold not give

pwhenconrontedbyannavorablemacroeconomiccontext.Ata

globallevel,evenBMSis lookingcarellyat marketswithhighgrowth

rates(weoperateinChina, Indiaand Brail),developingstrategiesand

deploying adeate resorces. In addition, I mst insist on the act

that notwithstanding the stagnation o or domestic market, Italy still

oers many opportnities!

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http:///reader/full/margins,forreasonsthatarenotentirelyattributabletotheglobalcrisis.Inhttp:///reader/full/margins,forreasonsthatarenotentirelyattributabletotheglobalcrisis.In


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"CFOs HAVE A LARGE RANGE OFPRIORITIES. CERTAINLY, THEY MUSTBE ABLE TO MAINTAIN A CONSTANTFOCUS ON THE GROWTH DRIVERSOF THE BUSINESS."


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TESTIMONIALS

FABIO TOMASSINICHIEF FINANCIAL OFFICERNUOVO TRASPORTO VIAggIATORI

NTV IS THE LEADING ITALIAN PRIVATE OPERATOR ON THE ITALIAN HIGH-SPEED RAIL NETWORK. IT IS ALSO THE

FIRST PLAYER TO OPERATE IN A SECTOR OPEN TO COMPETITION. NTV IS A COMPANY BORN OUT OF THE DRIVE TO

INNOVATE, IN WHICH STRATEGIC PLANNING IS CONSIDERED TO BE A FUNDAMENTAL COMPANY ASSET.

WHAT CAN THE CFO DO NOWADAYS TO ENSURE BOTHBUSINESS CONTINUITY AND gROWTH?

A great deal o ncertainty srronds the traditional markets, which

are characterised by increased competition and the evoltion o

major macroeconomic actors, in trn increasingly infenced by new

internationalpoliticalbalancesandthesteadyriseoemergingmarkets.

Inthiscontext,CFOshavetojgglenmerospriorities.Certainly, they

mst be able to maintain a constant ocs on the growth drivers that

enablethebsinesstogenerateprotandthsensreitsexistence inthe

marketplace.Atthesametime,theCFOmstparticipatein ormlating

corporate strategy, by helping identiy bsiness opportnities. Lastly,

the CFO mst saegard the long-term continity o the bsiness bymonitoringtheconditionsinwhichitoperates,andmakingsreneither

internal nor external actors change those conditions in a manner

that threatens the companys existence. The crrent crisis has had a

signicant impact on the nmber o players in the market, and has

rewardedtheleadingcompaniesabletoensretheircontinity.These

bsinesses have also been able to capitalise on the opportnities or

growth linked to market consolidation. Another signicant eect o

thecrisiswastoheightenawarenessotheneedtocloselymonitorthe

evoltion o risk actors. This implies being able to develop alternative

scenarios that enable the rapid implementation o measres reired

to saegard the companys resorces.

WHAT ABOUT NTV?

Novo Trasporto Viaggiatori (NTV) is the leading private Italian

high-speed rail network. It has several distinctive eatres, as it is the

rst player to operate in a sector that is open to competition, in which

the liberalisation process is still nderway, and it is there thanks to the

strong commitmento itsshareholdersandbankswhohaveprovided

signicant amontso capital andcredit. Inthiscontext, the priorityo

the nance department was to dene an ecient nancial planning

processtoensretheavailabilityo theresorcesneededtodevelopthe

bsiness, and toptin placeamanagementcontrolmodelthat wold

enable ick corrective action to be taken.The choice o ocsing on

planningactivities impliestwomajorelements:awidespreadawareness

within the companyo the keyoperational driversothebsiness,and

the spport o top management to ensre the implementation o astrctred and objective nancial planning process.

WHAT CAN THE CFO DO TO PROTECT HIS BUSINESSFROM POSSIBLE FUTURE CRISES?

Financialresorcesareincreasinglyconsideredtobearealprodction

actor and the corresponding sppliers demand in addition to an

adeate compensation or the risk associated with the project or

company acertainstability andcontinityo thebsiness.Toensre

bsiness continity and proper remneration or risk, it is crcial

or the company to ocs on prsing long-term objectives while

maintaining scient fexibility to enable it to seie opportnities

or growth and to withstand volatility and trblence in the short to

medim term. The CFO can help top management dene a method

to measre vale creation in order to reconcile two reirements:rstly, to garantee the implementation o the right strategic plan in

order to achieve long-term goals; and secondly, to be able to react

to nexpected events.


NTV is crrently operating in a national market and, given the specic

natreoitsbsiness,itsspplymarketsarenot locatedintheemerging

markets sch as those collectively called the BRIC contries. I believe

thatthestagnationoEropeanmarketscanonlybeovercomethrogh

strctral measres at the Eu level.

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"SECURING THE MEANSTO SUPPORT OURDEVELOPMENT."


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TESTIMONIALS

HERV VARILLONFINANCE, IT AND ORGANISATIONAL MANAGERCRDIT AgRICOLE LEASINg AND FACTORINg

CRDIT AGRICOLE LEASING AND FACTORING IS STRENGTHENING ITS RISK MANAGEMENT AND MANAGEMENT CONTROL PROCESSES

TO SUPPORT BUSINESS GROWTH

IS A RETURN TO gROWTH AN ADEQUATE INDICATOROF THE COMPANY'S DURABILITY?

Inortwolinesobsiness,leasingandactoring,therecentperiodhas

not reslted in a slowdown in activities despite the diclt economic

climate and the increasedcost onance. Inact, periodso economic

stress are avorable or specialised nancing. To manage their short

termcash fow,companiessetechniesschas assigningacconts

receivable,likeactoring,andtrntoleasingtonancetheir investments.

For banks, these two prodcts provide greater secrity in periods o

increased risk (credit secred by actoring and ownership o leased

goods). As the French leader in these two lines o bsiness we have

taken advantage o this economic context and recorded 10% growth

in or exposre in 2009. So or s, the estion does not apply in

ite the same way.

WHAT IS YOUR MAIN CONCERN?

Given the above, or nmber one problem is not recovery ater the

crisis, bt rather contining to grow, and ths spporting companies

in a time o economic recovery. Or main challenge is ths obtaining

theliidityreiredtollorroleas anancierotherealeconomy

and o investment and working capital reirements o bsinesses

at a reasonable cost. Natrally, we benet rom the strength o the

Crdit Agricole grop in this area, bt the constraints are becoming

increasinglysevere,particlarlyinthecontexto BaselIII,bothinterms

o the availability and cost o this liidity (which has tripled between

the end o 2007 and the end o 2010). Or objective is ths to se orresorces as best we can. In other words, to optimise the protability

o or investments and o or prodcts.

WHAT IS YOUR STRATEgY FOR ACHIEVINg THIS?

Weareprioritisingdynamicmanagementandgreaterselectivityoor

assets and o or resorces, capital and liidity. We do this by way o

more detailed analysis o the protability and nancial perormance

o or lines o bsiness, by territory and by activity so throgh ever

more ecient management control. We are also strengthening or

orecasting and controlling capabilities to ensre or ability to secre

renancing over shorter or longer time horions. This will enable s to

improve or risk management and better prepare orselves to meet

the reirements o Basel III.

WHAT WILL THE RESULT OF THIS BE IN PRACTICE?

Inordertobemorevigilantandresponsive,wehavertherdeveloped

or processes and tools, and will contine to do so with the aim o

increasing prodctivity bt above all o improving the ality o or

service.IntermsoITsystems,thisoccrsmainlythroghmanagement

in real time, interaces with external data (databases, web clients, etc.)

and enhancements to or data warehoses in order to improve the

depth o the databases and the ality o or orecasting. In addition,

we have also reinorced or nancial commnication toward or

cstomers, in cooperation with similar eorts at grop level.

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CFO BAROMETER 2011

ANALYSIS


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"BUSINESSES AREFACED WITH THEACCELERATION OFTIMELINES."


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ANALYSIS

MARC BENSOUSSANCHIEF OPERATING OFFICER, SOuTH AND WEST EuROPECSC

Thenewworldthatweseeunoldineachdaywasnotcausedbythe

crisis. The crisis only served to reveal and accelerate it. Businesses

are in the vanuard o the chanes which characterise this new

world. The frst shock sustained concerns the emerence o diitaltechnoloiesandliesciences, whichheraldproounddisruptions in

ourwaysoworkin,producinandinteractin.Thesecondshockis

related to the shit o the enine or lobal rowth rom the Atlantic

areatowardsthePacifcand theemerenceo Chinaasaneconomic

superpower.Inalmostallbusinesssectors,thecrisishasbeenusedby

businesses in a very relevant manner to accelerate transormations,

lower production costs and to re-examine a certain number o old

domas rom every anle.

CONTROLLINg THE TIME HORIZON

In 2009, ater the brtal downtrn in the global economy, bsinesses

madedrasticredctionsintheircosts,workingcapitalreirementsand

investments. Larger companies beneted rom avorable borrowing

conditions with low interest rates. Their priority was to manage their

cash fow and to srvive. In 2010, the perormance o large Eropean

grops improved overall. Their prots are close to historical levels and

demonstrateanabilitytorapidlyadapttoadeterioratedenvironment.

Forthemostpart, theircashreserveshavenotbeenreinvestedbecase

o lack o visibility as regards the economic ptrn. However, in the

backgrond behind the perormance o large bsinesses, many SMEs

havenotyetrebilttheirprotsandcontinetoexperiencediclties.

We know that short term considerations drive the decision making

o or companies, be they political, economic or nancial. For a long

time already, the operations o bsinesses have been impacted bya clt o the immediate, which never ceases to redce or thoght

horion. The last CFO Barometer srvey condcted by CSC among

Eropean nance managers shows that the crisis has contribted to

the acceleration o timelines in every bsiness sector. Bsiness cycles,

sch as those in R&D, prodction, marketing, sales, etc., have again

been shortened. This shiting timeline is also changing the way in

which managers make decisions. Bsinesses mst be able to react

at any time, to immediately revise the allocation o their resorces,

to constantly re-evalate risks and opportnities over a three-month

horion as well as those over a three-year time span. 72%oEropean

nancemanagersconsidermasteringthetimehoriontobeapriority.

The estion all managers ask themselves is: how best to manage the

short term while seiing opportnities in the medim and long term?

MANAgEMENT MODES ADAPTED TO DIFFERENTCYCLES

In order to steer their bsinesses, managers se a dal reerence asregards the time horion. Two management modes mst coexist,

adapted to the dierent cycles o the bsiness. For the short term, a

reactivemanagementmodeintendedtomonitorriskandensrereslts

areachieved.Forthemedimandlongterm,a predictivemanagement

modeto identitynewopportnitiesandsteerthebsinesswhile taking

operationaland nancialelementsintoaccont.Fromnowon, thegoal

o CFOs is to project themselves beyond the crisis and to be involved

inthechangesnderway.Bsinessesmstrespondto theacceleration

o cycles with more eective short-term management and deeper

involvement in long-term strategy. They mst improve the ality o

their steering and their ability to anticipate. Firstly, visibility is greatly

redced. In certain sectors, order books are only lled or two to three

months compared with six to twelve months in the past. Managers

ths need tools that enable them to make strategic decisions in a

very short time period. Secondly, the natre o risk and the reglatory

rameworkareconstantlychanging.Planningandorecastingareths

evenmorediclt.Yet,anapproachbasedon managementorecasting

is indispensable in order to give the bsiness a direction or the tre.

Tre growth cannot be achieved by way o excessive pblic debt bt

ratherbywayo innovation,investment,tradeandprot,whichremain

the only means o saegarding or rther development. The global

economy has otstanding growth drivers at its disposal. The entry

into the modern world o the middle classes in emerging markets; an

increase o 3 billion in global poplation in a ew decades; and a wave

o exceptional innovation that has only jst started to nrl. All mark

the beginnings o a cycle o strong growth or a long period. Oneo the challenges linked to the ptrn is the ability o bsinesses to

redenetheirdevelopmentplans. Inorder to maintaintheirpositionin

thenewcompetitivelandscape,they willneed toimplement anactive

investment policy, especially where there is growth. Their expansion

and sccess are vital or or society.

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CFO Barometer 2011


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CSC

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About CSC

The mission o CSC is to be a global leader in providing technology-enabled bsiness soltions and services.

With the broadest range o capabilities, CSC oers clients the soltions they need to manage complexity, ocs on core bsinesses,

collaborate with partners and clients and improve operations CSC makes a special point o nderstanding its clients and provides

experts with real-world experience to work with them. CSC is vendor independent, delivering soltions that best meet each clients

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