Back to Basics –

the power of

working capital

Vaso Januzovic

Finance Business Manager

Europe East & Central Asia

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5

Working Capital = Liquidity = Cash

• Accounts Receivable

• Inventory

• Cash

Assets Liabilities

• Accounts Payable

• short term debt (<12 mths)

NET WORKING

CAPITAL

Or

ability to cover short

term liabilities

Challenge I:

FORECASTING

7

Which priority is CASH in your company?

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Challenge II:

ACTION vs. REACTION

11 Source: Q1FY09 Analyst call

12 Source: Q1FY09 Analyst call

Challenge III:

PROFITABILITY

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16

PROFIT

Cash Flow

Working Capital

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