Capgemini's Finance Vision 2020 presentation of Liesbeth Bout and Klaasjan Doeswijk for the Summer Academy session of the Dutch Controllers Institute, held on August 3, 2009/

1. Finance Vision 2020 Klaasjan Doeswijk Liesbeth Bout August 3, 2009

2. Agenda 15:00 Introduction 15:10 Finance Vision 2020 15:30 Workshop: The impact of Finance Vision 2020 for you 16:00 Presentation of findings 16:30 Discussion 16:50 Wrap-up & Evaluation 17:00 Closing 2 Controllers Insitituut Zomeracademie August 3, 2009

3. Introduction Finance Vision 2020 The finance function is transforming rapidly under the influence of: Emerging global markets; Advances in technology; Changing socio-political landscape Many of these developments will drive the way a CFO works and lives. What is the future role of the CFO in a changing environment? We wanted to know and assembled creative thoughts of a diverse group of people. The finance Vision elaborates on the future role of the CFO in a changing environment From megatrends, towards the impact on your organization and your finance function. The finance vision is a state of mind; raising questions on the future and about being prepared for the future 3 August 3, 2009 Controllers Insitituut Zomeracademie Today is about sharing our thoughts with you on the future of Finance, about raising questions on your finance functions and discussing the future of Finance!

4. 4 Controllers Insitituut Zomeracademie August 3, 2009

6. Balancing security and openness

7. Real and Virtual world

8. Drive for excellence and talent and stop mediocrityControllers Insitituut Zomeracademie

9. 0 is about environmentally friendly and the exhausting of natural resources 6 August 3, 2009 Controllers Insitituut Zomeracademie

10. Finance Function Master plan 2020 from trends and drivers 7 August 3, 2009 0 What will you do as CFO to commit to the 3 times 20% objective by 2020 meaning 20% less energy consumption, 20% less CO2 and 20% share of renewable energy? Controllers Insitituut Zomeracademie

11. 1 is about balancing security and openness 8 August 3, 2009 Controllers Insitituut Zomeracademie Records Management

12. Finance Function Master plan 2020 from trends and drivers 9 August 3, 2009 1 What will you do as CFO to balance our desire for openness and our fears of terrorism, extremism and other threats to our security? BCM in place? Controllers Insitituut Zomeracademie Balancing security and openness

13. 2 is about bringing the real and virtual world more together August 3, 2009 Controllers Insitituut Zomeracademie 10

14. Finance Function Master plan 2020 from trends and drivers 11 August 3, 2009 2 How will the ever increasing influence of internet and the introduction of the Virtual Personal Assistant (VPA) that connects the physical with the virtual world impact on you as CFO? Controllers Insitituut Zomeracademie Bringing the real and virtual world more together

15. Avoiding the 6- by having a drive for excellence and talent and stopping mediocrity August 3, 2009 Controllers Insitituut Zomeracademie 12

16. Finance Function Master plan 2020 from trends and drivers 13 August 3, 2009 6- Are you as CFO able to attract and retain the most talented, experienced and skilled people in this highly mobile world full of demographic shifts? Controllers Insitituut Zomeracademie

17. What do CFO’s think of what they will be doing in 2020 August 3, 2009 What’s not Cool What’s Cool Decision maker at the forefront, to be perceived as a Chief Value Officer who can contribute to the strategic debate Focus on people management, value, risks, integrity, growth, innovation and on external challenges Daily activities include checking the dashboard, ensuring compliance, inspiring and coaching people in the team, judgement and managing external relations with shareholders and investors The CFO's team consists of diverse people from different nationalities and cultural backgrounds His KPIs are no longer solely measured in Euros. Other KPIs include reputation and company image, corporate social impact, financial performance and employer value. It is not cool to perform routine tasks; these will be automated. To work long hours in a fixed working environment. Excessive travel times Explaining (new) accounting rules to shareholders Being overloaded with information. Controllers Insitituut Zomeracademie 14

18. The CV of the CFO in 2020 August 3, 2009 Controllers Insitituut Zomeracademie 15

19. How could the Finance Transformation journey towards 2020 look like? 16 August 3, 2009 Controllers Insitituut Zomeracademie

20. Final thought … 17 Controllers Insitituut Zomeracademie August 3, 2009

21. Workshop : the impact of Finance Vision 2020 for you Given the megatrends as discussed and Knowing your company’s long term strategy Using your own ideas, thoughts and opinions ... We have four groups, each formed per branch List those impacts, have them discussed and prepare for a report out on a flip-over (5 min.) The overall time for this assignment is 30 minutes. (*) think off scope of work, place of work, way of working, required competences, etcetera. 18 August 3, 2009 Controllers Insitituut Zomeracademie What will be the impacts* of Finance Vision 2020 in your own finance organization?

22. Workshop: Break-outGroups 19 Controllers Insitituut Zomeracademie August 3, 2009

24. Imago; uitdragen, zichtbaar maken (mgmt. rapportages)

25. Mileubewustzijnvs kosten

26. Maatschappelijke verslaglegging

27. One World

28. Risicomanagement; info beveiliging

29. Betrokken zijn (als FIN) bij uitvoering

30. Andere bronnen van informatie

31. Twee werelden

32. Thuisweken, files ontwijken, minder reizen

33. Virtuele wereld als kennisbank

34. Kennis delen

35. Geen middelmatigheid  focus op excellent

36. Inhuren specialistenWorkshop: Report out break-outgroup 1 Maatschappelijke verslaglegging Hoe duurzaamheid zichtbaar te maken? Risicomanagement/ beveiliging belangrijker Nieuwe informatiebronnen/ meer toegang tot informatie Meer van afstand werken Standaardisatie/ operationalexcellence Vertaling bedrijfsprocessen  financiën belangrijker Het werk van een CFO wordt breder  leuker! “Je mag je overal tegenaan bemoeien!” Wel zorgen dat je financieel niet uit de bocht vliegt, boekhouden blijft key (hoe worden de cijfers van onder af aan opgebouwd?) Het werk van CFO wordtbreder, dusleuker! Je mag je overaltegenaanbemoeien! 20 Controllers Insitituut Zomeracademie August 3, 2009

38. maatschappelijk verantwoord

39. Produkten

40. 1:_

41. 2: Management Info  real time/ online

42. 6-: Liever klein blijven met minder maar wel met goede mensenWorkshop: Report out break-outgroup 2 Duurzaamheid/ MVO wordt belangrijk Groene produkten … ook in bancaire sector? Information Real time rapportages zullen toenemen Standaard rapportage daardoor afnemen 6-  moet je altijd groter willen groeien? Of juist kleiner willen blijven in het belang van het bedrijf/ behouden van mensen? 21 Controllers Insitituut Zomeracademie August 3, 2009

43. Centralisatie van functies Globalisering Milieu gedreven beslissingen Uitbreiding regelgeving Centrale rol CFO Workshop: Report out break-outgroup 3 Centralisatie van functies (waaronder financiële functie) neemt toe Globalisering neemt toe Meer milieu gedreven beslissingen: Nu productie over de wereld verspreid  centraliseren?  impact op/ van transportkosten? Uitbreiding regelgeving Centrale rol CFO (centraal in organisatie): Financiële functie wordt slanker en centraler # lokale CFO’s/ FD’s zal afnemen CFO meer betrokken bij visionair/ strategisch beleid (meer centraal i.p.v. decentraal) Krijgt grotere rol in andere processen (bijv. logistiek/ planning) Minder financieel specifiek/ breder ingezet met focus op finance 22 Controllers Insitituut Zomeracademie August 3, 2009

45. Operationalexcellence risico’s (doorslaan ambities/ ongebreidelde gretigheid)  CFO rol vraagt/ eist meer procesbesturing/ beheersmaatregelen

46. Soft skills (CFO) worden belangrijker

47. CFO acteert meer discipline overstijgend

48. Financiële functie krijgt belangrijke ‘filter functie’ rondom ‘leading indicators’Workshop: Report out break-outgroup 4 Je moet onderscheidend zijn om bij de top te blijven horen Operationalexcellence om bij top te blijven CFO bewaakt (procesbesturing/ -bewaking) doorslaan ambities/ doorslaan in gretigheid Hoe (internationaal) talent aan te trekken (en lokaal te laten werken of kennis af te tappen)  meer faciliteren i.p.v. binnenhalen CFO moet denken/ acteren in disciplineoverstijgende zaken Indicatoren vaststellen voor rapportage Softskills (overtuigen/ argumenteren) worden belangrijker  minder toekomst voor teruggetrokken boekhouders! 23 Controllers Insitituut Zomeracademie August 3, 2009

49. Evaluatie:Wat was het meest opvallend? Wat neem je mee naar huis? Ontwikkeling regelgeving Risk Management in ‘One World’ Toenemende milieudruk (kosten/ regelgeving/ vestigingsplaatsdiscussie) op bedrijfsleven 4 trends en de doorvertaling Toenemende belangrijkheid milieu/ duurzaamheid 4 trends (deels al gaande) maar m.n. de doorvertaling op de CFO functie Praktisch/ handvat om discussies te hebben met klanten 6- wat afgezaagd, kan ik niets mee Hoe de samenwerking over disciplines vorm te geven? Discussie over welke CFO skills nodig zijn Discussie over verschillende rollen als controller en wat nodig om die rol op te pakken Toename milieugedreven beslissingen; dichterbij dan op 1e moment gedacht 6- als handvat voor excellereren Er moet een herdefinitie voor groei komen Verbazing of angst voor toename regelgeving Discussie over verdwijnen van controllersfunctie; aardig om eens verder over na te denken Schema 4 trends aardig; discussie met elkaar over hoe alles op elkaar inspeelt waardevol Discussie over impact trends op jezelf/ je eigen rol/ functioneren 24 Controllers Insitituut Zomeracademie August 3, 2009

50. Appendix August 3, 2009

52. New players and business models in the market

53. New forms of international industrial collaboration

54. Global convergence of cost structures

55. New competitors and substitutes for services and products

56. Increased urbanization creates new metropolises

57. Access to new workforce reservoirs

58. Migration leads to social, religious and ethic diversity of employees

59. Geographical shift of markets

61. Increased ‘war for talents’

62. Innovative technology allowing for higher transparency and increases information

63. Stronger influence of society by economy

64. Innovative collaboration-/ communication methods

65. New markets are opened, more customers can be reached

66. Need for new mobility concepts and adjusted business models

68. Need for CO²-neutral processes, products and investments

69. Ageing of the working population

70. Increasing focus on health and wellness Source: Capgemini Consulting: Finance Vision Workshop 8th and 9th September 2008 26 Controllers Insitituut Zomeracademie August 3, 2009

72. Provision of structured information to create transparency for a global and complex organization

73. Increase in importance of external information and external stakeholders

74. Broadened value spectrum e.g. including environmental aspects

75. Stronger integration of the finance organization as a value advisor

76. Increased importance of risk and control aspects in a volatile and changing environment

77. Increased support for the assessment of innovations

78. Need for continuous change and adaptation

79. Recruitment, development and retention of highly qualified employees Influence of global trends on the finance organization Increasing globalization Growing world population Current finance organization Changing knowledge Virtual world and work methods Growing environmental & health awareness = Strong impact on finance organizations = No impact on finance organizations Source: Capgemini Consulting: Finance Vision Workshop 8th and 9th September 2008 27 Controllers Insitituut Zomeracademie August 3, 2009

81. Challenges transactions and reporting as required

83. + Identifies areas & ways to improve financial outcome can be improved

85. Releases value in other functions

86. CFO behaviour will be closely scrutinised and they should set a good example to the organisation

88. Set direction and guide the business to achieve strong financial performance

89. Actively identify areas of risk and concern

90. Provides information to enable decisions

92. Prevents activities that create unacceptable financial risk

93. Contorls the cross business cost agenda

101. + business & financial input

104. Control and Risk Office

105. Support Office

106. Transformation Officein order to pro-actively meet future challenges The strategic advantage of the CFO organization in 2020 will be reached through flexible and highly qualified people The future CFO will become a value partner covering all dimensions of the company People Organization CFO perspective A global and harmonized IT landscape is the backbone for the future organization “Industrialized” processes will generate the requested internal and external services Services & Processes IT Data & information The CFO acts asdata & information architectdefining and securing consistent finance-relevant data infrastructure Source: Capgemini Consulting: Finance Vision Workshop 8th and 9th September 2008 29 Controllers Insitituut Zomeracademie August 3, 2009

107. The future CFO will adapt the financial organization in order to pro-actively meet the pending challenges Value Partner Mandatory function Transaction factory Organization – Finance 2020 CFO organization Value Office Integrated manager of corporate values in an holistic way Control and Risk Office Sovereign functions and risk management Strategic impact Support Office Offers “industrialized” services Transformation Office Internal driver for change to allow for constant adaptation and progressive evolution towards high efficiency and effectiveness Operational impact Source: Capgemini Consulting: Finance Vision Workshop 8th and 9th September 2008 30 Controllers Insitituut Zomeracademie August 3, 2009

109. Financial risks

110. Business risks

111. Environmental risks

112. Financial advisory

113. Value management

114. Forward visibility

115. Financial advisory

116. Mergers and acquisitions

117. Investor management

119. Information architecture

120. Corporate governance and legal requirements

121. Sustainability policy

122. Group accounting / controlling

123. Information management

124. Treasury

125. Investment / initiative Controlling

127. Standard controlling services

128. Intercompany accounting

129. Cash management / cash pooling

131. Business case / benefits tracking

132. Program office

133. Plan / design / build

134. Continuous improvement programs

135. Potentially new function / Service within the CFO Organisation31 Controllers Insitituut Zomeracademie August 3, 2009

138. Standardized processes and internationally harmonized data pool

139. Transparency concerning sources, quality and availability of data

141. Labour arbitrage

142. Specialization, standardization and automation32 Controllers Insitituut Zomeracademie August 3, 2009

143. The relevant HR processes to support the organizational transformation allow for better employee fit, higher job satisfaction & better performance People – Finance 2020 Basic profile Career model Staff development Incentives & retention Recruiting & staffing Value office “Accelerating incentive” “MBA” profile Focused selection Building global leaders Cross functional development programs Support office “Accountant” and/or “Controller” profile Standardized contracts “Training on the job” Building old-hand experts “Mass” -recruiting 33 Controllers Insitituut Zomeracademie August 3, 2009

145. Drive innovation and performance to foster value for all stakeholders

146. Provide world-wide business-tailored information

148. Commit the CFO organization to a unifying mission globally and across cultures

149. Mediate the financial world and the executive board

150. Manage the portfolio of investors

151. Watch out for business and financial risksThe CFO stands for the financial vision of the company and communicates this inside and outside the CFO organization. 34 Controllers Insitituut Zomeracademie August 3, 2009

152. In order to achieve this Finance Transformation the CFO needs to operate into two strategic directions The strategic directions of the Finance Transformation Value adding services that elaborate or enhance the competitiveness of the core business “Being better” Value office Strengthen the finance function and competitive position Support office Focusing transaction services on increasing efficiency and effectiveness “industrialization” “Being cheaper” 35 Controllers Insitituut Zomeracademie August 3, 2009

154. Develop Finance strategy that supports business strategies

155. Provide forward oriented management information

156. Coach the business in solving complex problems

158. Adopt modern, harmonized processes and technologies

159. Maintain consistently high quality level, strive for continuous improvement

160. Generate new sourcesof revenue by servicing 3rd parties Source: Capgemini CFO Study with several large European companies 36 Controllers Insitituut Zomeracademie August 3, 2009

162. build competence centers, transform individual know-how to organizational intelligence

163. establish leadership to manage decentralized / virtual network

164. define necessary people portfolio

165. free talents and recruit your vision

166. energize and develop people

167. improve leadership skills

168. offer business partner and consulting services (project)

169. value management beyond value based management (e.g. intangible assets, sustainability, “green”)

170. implement processes to secure better forward visibility

171. elaborate external and intangible data & information

172. develop future oriented information models to determine customer trends along the value chain

173. provide simulation analytical reports (e.g. neural networks)

174. implement finance portal to support business partner and consulting model

175. implement flexible tools for business modeling and simulation

177. implement retention management

178. offer standardized training packages- accounting / controlling- process- application

179. implement network of business support centers- by geography- by service- by business unit

180. utilization of internal service provider(SLA )

181. split of sovereignty and service function

182. define standard set of data and information(information model)

183. implement methods, processes and systems to secure- consistency- reliability- transparency- availabilityof defined data and information

184. define standardized service portfolio allowing mass customization according to customer needs

185. set-up industrialized service delivery

186. implement a continuous improvement program

187. implement standardized ERP systems

188. implement standardized reporting and consolidationapplication

189. implement standardized planning / budgeting application37 Controllers Insitituut Zomeracademie August 3, 2009

190. Questions? Want to know more? Check www.financevision2020.comorcall/ mail LIESBETH BOUT liesbeth.bout@capgemini.com Tel. +31 (0)30 689 0388 KLAASJAN DOESWIJK klaasjan.doeswijk@capgemini.com Tel. +31 (0)30 689 7365 www.capgemini.com/consulting Copyright © 2009 Capgemini. All rights reserved.