Post-Brexit Earnings Call: What You Need to Know to Be Ready

Post-Brexit Earnings Call: What You Need to Know to

Be Ready

Treasury Innovation Forum – Risk importance rankings

GTNews: 2016 Treasury Innovation Forum

2© Rim Tec Inc. All Rights Reserved. Proprietary & Confidential.

Treasury Innovation Forum – Major pain points

GTNews: 2016 Treasury Innovation Forum


Deloitte 2016 Survey: Challenges in managing FX risk

Deloitte. 2016 Global Foreign Exchange Survey.Source link: http://www2.deloitte.com/us/en/pages/advisory/articles/global-foreign-exchange-survey.html

Lack of visibility of FX exposures and reliability

of forecasts

Emerging market/restricted currency market volatility

Manual exposure Identification and capture

processes

Business unit understanding

Inadequate treasury or financial risk management

systems

Ability to analyze exposures and measure

hedging results

Hedge accounting

compliance


http://www2.deloitte.com/us/en/pages/advisory/articles/global-foreign-exchange-survey.html

Treasury & Risk – Learn from Brexit

6 Practical Questions To Ask and Answer Before the NextDomino Falls


Read Article

http://www2.fireapps.com/l/21252/2016-07-07/4qy2b3

Help fix the communication disconnects

Economic

CFO

Foreign Exchange Manager

Controller Treasurer

Accounting

Corporate

CEO &Board


Questions that are coming your way


• How exactly were we effected by Brexit?

• What will be impact on go-forward basis?

• Is what we’re doing to mitigate risk working?

Five areas to prepare for your earnings call


1. Complete FX portfolio

2. Predictive/scenario analysis

3. Corporate currency policy

4. FX impact on financial statements

5. Potential team/enterprise risks

How to build a CFO Flash Report

• Overview• Exposure & Risk• Income

Statement

$0.04

25.00%200

40 52 Countries68.0

%0.0%

20.0%

$20,234,121$18,547,294$16,392,301$13,293,192$10,392,283

$4,212,323$4,823,212$8,129,342$6,238,124$9,348,242

$10,392,283$16,392,301$13,293,192$18,547,294$20,234,121

$9,348,242$8,129,342$6,238,124$4,823,212$4,212,323

Income Statement Components (USD)Gross Gross Risk Net Risk

Revenues COGS OPEX

Exposure (Before Actions) (after actions)

NOIFX G/L

NIEPS

Exposure & RiskCurrency Volume Net Risk

5 Largest Exposures (Volume in USD)

USD EURTime Period: Q2 GBP USD

BRL CNYAUD USDUSD CLP

5 Largest Risks (VAR) USD CLPTime Period: Q2 BRL CNY

AUD USDGBP USDUSD EUR

OverviewPotential EPS Impact (Quarterly)

Total Number of Currency PairsTotal Number of CurrenciesHedge Efficiency Ratio B/S

I/S

Total


CFO Flash Report


CoRETM Analysis – Cost & risk reduction

FiREapps Customer: US$ 4 Billion Revenue Company

$40,000,000

$32,000,000

$24,000,000

$16,000,000

$8,000,000

$0


Rapid Response Analytics


Helping Treasurers and CFOs prepare for any eventuality by:• Delivering initial GBP related

exposure details in days, not months.

• Providing the visibility to quickly eliminate GBP exposure organically (without external forward hedging).

• Offering a clear, fact-based path tosensitivity and scenario analysis for exposures impacting the income statement and balance sheet

Learn More About Rapid Response Analytics

https://www.fireapps.com/rapid-response-exposure-analytics/

Post-Brexit Earnings Call: What You Need to Know to Be Ready

Economy & Finance

Transcript of Post-Brexit Earnings Call: What You Need to Know to Be Ready