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

September 2013

Titre de la présentation 1

BUILDING A FINANCIAL ROADMAP FOR SUSTAINING GROWTH

ASPRI Members’ Nite

PRESENTATION OUTLINE 4

About Mazars

1

Key Financial Challenges

2

Building a Financial Roadmap

3

Getting the Right Financial Management Assistance

KEY FINANCIAL CHALLENGES

SUSTAINING PROFITABILITY MANAGING CASH FLOWS AND FINANCING WELL

Date 3 Titre de la présentation

01

1.1 SUSTAINING PROFITABILITY

4

Key Challenges

Rising costs will significantly affect an organisation’s profitability and the possibility of a successful IPO.

Price pressures from competitors Uncertain economic conditions Small domestic market Rising business costs (10% or more – ASME, 2012) Top 3 costs

• Manpower
• Materials
• Rental

Rental increased

• ver 30% in past 3

years

1 2 3 4 5 6

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

1.2 MANAGING CASH FLOWS AND FINANCING

5

Key Challenges

The lack of financial resources and strong financial planning know-how will also hamper the IPO process.

More companies facing cash flow challenges Customers take longer time to pay Suppliers want faster payments Banks becoming more careful in lending to SMEs Lack of physical assets for collateral Lack cash flow planning know-how

1 2 3 4 5 6

BUILDING A FINANCIAL ROADMAP

THE STRATEGY THE IMPLEMENTATION BENEFITS TO YOUR BUSINESS

Date 6 Titre de la présentation

02

2.1 THE STRATEGY

Developing Your Financial Roadmap

7

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

Assess Your Financial Performance

• Past performance
• Key growth drivers and barriers
• Reasons for changes

1

Know Your Star Products

• Trace and allocate costs
• Estimate real costs and margins
• Impact on pricing

2

Developing Your Financial Roadmap

8

Size up Your Markets

• Know customer groups
• Estimate market demand and

spend

• Identify and exploit market gaps

3

Build Financial Resiliency

• Benchmark against peers
• Manage major controllable costs
• Establish realistic cost structure

4

2.1 THE STRATEGY

Developing Your Financial Roadmap

9

Evaluate Your Growth Options

• Organic vs. inorganic
• Assess cost & benefits
• Prioritise and select options

5

Develop the Gameplan

• Sales and profitability
• Major targets, milestones and

gaps

• Action plans and stakeholders

6

2.1 THE STRATEGY

2.2 THE IMPLEMENTATION

Executing Your Financial Roadmap

10

Financial success also involves working level stakeholders being well aware

• f their individual roles and responsibilities

Implementation Considerations – 4 Key Issues

Understand the Specific Gaps

• Business units and departments
• Resources, people,

infrastructure, partners

• Where and when to acquire

1

Establish Detailed Operating Plans

• Individual business units
• What needs to be done (the

process)

• Who does it (the people)
• When to do (the timing)

2

Executing Your Financial Roadmap

11

Establish Forecasting Tools

• P&L and cash flows
• End-user reports
• Adopt simple, straightforward

indicators

• Scenario analysis

3

Raising Financial Competencies

• Finance as a strategic partner
• Greater stakeholder awareness
• Customised training for different

stakeholders

4

2.2 THE IMPLEMENTATION

12

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

GETTING THE RIGHT FINANCIAL MANAGEMENT ASSISTANCE

INNOVATION AND CAPABILITY VOUCHER (ICV) CAPABILITY DEVELOPMENT GRANT (CDG) QUALIFYING CRITERIA

Date 13 Titre de la présentation

03

3.1 INNOVATION AND CAPABILITY VOUCHER (ICV)

ICV

• Financial

Management

• 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

Evaluate and improve planning and budgeting process Manage your cash flows and working capital better Strengthen your internal financial controls Assess your business and develop plans for future financial growth What Mazars can Help You Do

1 2 3 4

SPRING Singapore

3.2 CAPABILITY DEVELOPMENT GRANT (CDG)

CDG

• Financial

Management

• 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

Review past financial performance Evaluate profitability

• f products &

services Identify & prioritise cost savings

• pportunities

Identify growth business

• pportunities

Develop plans to increase sales and profitability Buy and sell business - mergers and acquisitions Investor fund raising Business partners sourcing

What Mazars can Help You Do

1 2 6 5 4 3 7 8 SPRING Singapore

3.3 QUALIFYING CRITERIA

ICV CDG

SPRING Programme Qualifying Criteria

Physically present and registered in Singapore

16

Not more than $100 million annual sales or 200 employees At least 30% local shareholding

1 2 3

ABOUT MAZARS

MAZARS GLOBAL MAZARS CONSULTING SINGAPORE

Date 17 Titre de la présentation

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4.1 MAZARS GLOBAL

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Welcome to Mazars

• An international, integrated and

independent organisation

• Our global firm’s international service
• ffer brings together audit, advisory,

accounting, consulting, tax and legal services.

• Mazars is present in 71 countries

across five continents with more than 13,500 professionals

• Turnover of 1 billion euros

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

13,500 Professionals 71 Countries 250 Offices Integrated

Date 19 Titre de la présentation

INTERNATIONALISATION ADVISORY

► Feasibility Studies ► Market Entry ► Foreign Set-Up Facilitation & Documentation ► International Partner Development ► Business Intelligence & Market Research ► Public Agency Policy Advisory

PERFORMANCE ENHANCEMENT

► Performance Enhancement Road Mapping ► Industry Analysis and Evaluation ► Corporate Strategy ► Business Planning and Implementation ► Financial Review and Benchmarking ► Public Agency Strategic Advisory

4.2 MAZARS CONSULTING SINGAPORE

MAZARS SINGAPORE CONSULTING

Projects done under IE Singapore’s Schemes

► Market Readiness Assessment (MRA) ► Global Company Partnership (GCP)

Projects done under SPRING’s Schemes

► Innovation Capability Voucher (ICV) ► Capability Development Grant – Financial Management (CDG)

www.mazars.sg

Titre de la présentation 20

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

Date