© Inplenion International AG

Berlin, October 10, 2013

Jann Tadorian

DOAG Applications 2013 Hyperion Stream Case Study Strategic Financial Planning at Borusan

1 © Inplenion International AG

About Inplenion

Agenda

Case Study: Strategic Financial Planning at Borusan

Demo HSF Solution

2 © Inplenion International AG

About Inplenion

Agenda

Case Study: Strategic Financial Planning at Borusan

Demo HSF Solution

3 © Inplenion International AG

Inplenion at a Glance

• International business consulting company headquartered in Switzerland with offices

in Zurich, Frankfurt, Vienna, Athens, Cairo and Dubai

• Catalyst between business/finance and IT

• Highly experienced EPM consultants, specialized in:

Strategy and Risk Management / Oracle Strategy and Scorecard Management and Crystal Ball

Portfolio and Value Based Management / Hyperion Strategic Finance

Planning and Budgeting / Hyperion Planning

Group Accounting and Financial Reporting / Hyperion Financial Management

Business Intelligence / Essbase and Oracle Business Intelligence

• Software Implementation, Training and Support Organization

• > 100 customers

• Oracle Gold Partner

Evaluate &

Optimize

Strategize &

Prioritize

Plan &

Execute

Monitor & Analyze

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INPLENION

PROFESSIONAL SERVICES

Consulting Implementation

Training Support

CLIENT

Our Value to You

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Financial Services

Pharma/Chemical

Telecom

Utilities

Oil & Gas

Retail

Public

Technology

Manufacturing

Customer overview

Conglomerates

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About Inplenion

Agenda

Case Study: Strategic Financial Planning at Borusan

Demo HSF Solution

7 © Inplenion International AG

Steel Pipe

BMW / Mini

Land Rover

Port Operations

Logistics

Flat Steel

Caterpillar

3 PL integrated

logistics services

Energy

(investment stage)

Renewable energy

Generation (hydro &

wind)

Distributorship

2.0 b USD 1.6 b USD 0.3 b USD 0.01 b USD

Steel

2012 Consolidated Revenues – 4 b$

Shareholders & business partners:

7

Borusan Group Portfolio

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6 business units each with different characteristics:

Each at different stages in the company life cycle

Different growth dynamics and funding requirements

Managed through partnerships with leading global names who

have their own strategic agenda

Separate management teams who want to drive growth in their

own business units

Given this diverse structure, 7-8 large growth initiatives on the table at

any time.

Continuously changing external dynamics with dramatic impact on these

growth plans.

• Can we afford them all?

• How can we structure this initiative portfolio so as to

maximize value to the shareholder?

Borusan‘s Challenge

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Develop a portfolio strategy and deploy company strategic plan

targets accordingly with a top-down view.

Decide for the capital allocation policy.

Analyse funding requirements both at business unit and Holding

level. Determine financial discipline measures where necessary.

Review the strategic plans every year and whenever the need

arises to have a realistic outlook of the «portfolio big picture»

1

2

3

4

They need to.....

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1 A clear portfolio strategy taking into account the «strategic

health» and «value creation potential» of the business units

The Solution

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A detailed, flexible and integrated long term financial model to

capture «big picture view of the portfolio»

3

Holding

BU 1

BU 3

BU 2

BU 4

Invest to grow

- Organic growth

- Plug-in growth

initiatives

Funding

need

Capital

Injection

Capital

Injection

Funding

need

Dividends

Dividends

2

The Solution

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A detailed, flexible and integrated long term financial model to

capture «big picture view of the portfolio»

4

Assessment of growth initiatives and their affordability at the

business unit level:

• Cash flows and balance sheets checked against covenants

• Funding requirements – dividend obligations determined

Develop cash flow of Holding and optimize funding

requirements at Holding level

Develop consolidated group financials

• Prioritize growth initiatives

• Develop a funding plan

• Define financial measures to track the execution

The Solution

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Duration: 9 weeks with 2 consultants and 2 Borusan analysts

Scope: Develop financial planning model for each of Borusan’s strategic business

units. Integrate the businesses’ cash flows and earnings based on ownership levels

and agreements.

Project Plan: 2 phases. Phase 1 – Consultants develop a base system and core set

of accounts that could be used by all of Borusan’s businesses. Phase 2 –

Borusan’s analysts develop business specific “value driver” statistical accounts and

add additional financial statement accounts for Borusan’s individual businesses.

Implementation of HSF at Borusan

Implementation Day

Date

Week Day

Stakeholder 0 0 0

Technical Architecture

System Install

System Integration

System Design

Design Discussions

Technical Design Document

System Basics

Design Acceptance

Core Entity Build

Build Entity Accounts/Groups

Create HSF Entity Reports

Import/Export Interface

Essbase Setup

Single Entity Acceptence Testing

Test Core Template

Test Import/Export Logic

Full System Build

Create Named Entities

Batch Import with Hyperion Products

Build Consolidation Structure

Apply Access Controls

Multi - Entity Testing

Final Training/Support

End user training, overview

End user training, company system

End user training, consolidations

Administrator training

Documentation

Days total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Days/ Resources

Montag Dienstag Mittwoch

6-Jun-12

Donnerstag Freitag

4-Jun-12 5-Jun-12 7-Jun-12 8-Jun-12

51 2 3 4

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Analysis Benefits

• Complete set of “value-driver” accounts for each of

Borusan’s businesses

• Full income statement, balance sheet, and cash flows

for each strategic business unit ~ big picture

• DCF valuation for all business units and consolidations

• Easy what-if, alternative scenario analysis

• Easy to change “funding” management for treasury

planning of operation’s cash flows

On-going administration benefits

• System administered structure to business units’ chart of

accounts

• Time, report, calculation updates made easy

• Clear consolidation structure tree

• Results in a centralized database

The Benefits

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About Inplenion

Agenda

Case Study: Strategic Financial Planning at Borusan

Demo HSF Solution

16 © Inplenion International AG

Demo HSF Solution

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