for Budget Planning & Rolling Forecast

1. FESAPlanning for Budget Planning & Rolling Forecast www.fesaconsol.com/fesaplanning.pdf www.fesaconsol.com/fesaplanning.pptx Last update: 23-Dec-2013

2. FESA Query FESA Consolidation Series Analytical Performance Management • FESA Analyst • FESA Planning Level of Automation & Investment Multinational Financial Management Group Consolidation & Budgeting • FESA Financial • FESA Professional Accounting • FESA Consol Regional Financial Management Budget Planning & Rolling Forecast Management Reporting Scope of Solutions & Services Mix

3. FlexSystem Enterprise Software Architecture

4. Web & Windows Login Client

8. Agenda

9. About Planning Your ERP systems responsible for historical data Management demand for managing future proactively HR manager analyze HR plans provided by line managers Sales department updates sales forecast every day IT department prepares annual IT budget for 201X Brand manager monitors variance of actual cf budget Finance Manager responsible for cash flow projection

10. About Challenges of Planning • Substantial time are involving data manipulation rather • the core work of planning and analysis • Nightmare of using linked formulas amongst different spreadsheet files • Difficult to ensure the correct version of forecast • Very time consuming to consolidate different budget scenarios • High frequency of errors and difficult to identify the source of errors • Internal auditor identifies current weakness of budgetary control system • Extended time for new staff to learn and practice the tedious processes of data manipulation

11. FESAPlanning Solving Issues Arising from Aggregation & Versioning

12. Aggregation Computing Issues • Simplex form of aggregation • 1 + 1 = 2 • Most common aggregation functions • Sum(), Count (), Max(), Min() • Assumptions (Based on standardized data source) • Measurement and recognition rules • Chart of accounts • Reporting currencies • Data file formats • Presentations of transactions or trial balances • Example • Each company of a consolidation group furnishes standardized transactions, vouchers or trial balances to their headquarters for aggregation in order to prepare different kinds of summary reports (i.e. aggregation scenarios)

13. Aggregation Computing Issues • Key problems encountered by headquarters • Issues of unexpected speed and accuracy when • Many data files • Many rows and many columns for each data file • Following are examples of column name: • Many amendments of data files • Identifying missing and duplication of data files • Frequent reporting, from monthly to weekly to daily to… • Issues of security control • Send data through email system to wrong recipients

14. Aggregation Computing Issues • Aggregation scenarios • Scenario 1: Aggregation for strategic management • Five-year budget planning with multi-scenario analysis • Acquisition and disposal decisions • – Capital asset, legal entity, branch, product line • Scenario 2: Aggregation for operational management • YTD actual profit and loss by business unit by month • Monthly forecast by business unit by department • Actual cfbudget scenarios cf rolling forecast versions • Sale-thru analysis by different dimensions • Scenario 3: Aggregation for statutory compliance • YTD actual consolidated trial balance by company by the following GAAPs: • – PRC GAAP • – US GAAP • – HK GAAP • – Japan GAAP

15. Aggregation Computing Issues • An example of dynamic on-line aggregation

16. Aggregation Computing Issues • An example of dynamic on-line aggregation

17. Versioning Computing Issues • Definition • Versioning means version control over data processing and/or reporting based on same sets of assumptions • It shall be differentiated from aggregation scenarios • Two types of version control • Version control for audit trial purpose • Version control for reportingpurpose • Version control for audit trial purpose • Who, when, how about the submission of data files • Who, when, why about the subsequent amendments • Who, when, what about the authorization of data postings • About the status of process: pending, completed, fail • Version control for reporting purpose • Q1, Q2, Q3, Q4 version of rolling forecast

18. Versioning Computing Issues • Key problems encountered by headquarters • Manually assign version number of file and folder name • Problem to support multi-user enquiry • Not easy to maintain completeness • Issue of security control • Implement standalone document management system • Can keep every version of data file upload itself rather than post and store relevant raw data within database • It cannot support to automate aggregation, so it cannot support the retrieval of particular version of consolidated rolling forecast

19. Versioning Computing Issues • An example of versioning for audit trial purpose

20. Versioning Computing Issues • An example of versioning for reporting purpose

21. What is FESA Planning ? • Sales & Marketing • Sales & Marketing • Business Dimensions • Income / Expense • Assets / Liability • Off/Post-Balance Sheet • BU / Department • Project / Product • Other Dimensions • Version / Scenario • Internal / External • Currency / Amount • Quantity / Statistics • HR & Admin • HR & Admin • Production • Production • Logistics • Logistics • Time Dimensions • Daily / Weekly • Monthly / Quarterly • Yearly • Month-To-Date • Year-To-Date • Location Dimensions • Branch • District • City • Country

22. What is FESA Planning ? • Budget • Budget • Business Dimensions • Income / Expense • Assets / Liability • Off/Post-Balance Sheet • BU / Department • Project / Product • Other Dimensions • Version / Scenario • Internal / External • Currency / Amount • Quantity / Statistics • Actual • Actual • Projection • Projection • Forecast • Forecast • Time Dimensions • Daily / Weekly • Monthly / Quarterly • Yearly • Month-To-Date • Year-To-Date • Location Dimensions • Branch • District • City • Country

23. What is FESA Planning ? • Budget • Budget • Business Dimensions • Income / Expense • Assets / Liability • Off/Post-Balance Sheet • BU / Department • Project / Product • Other Dimensions • Version / Scenario • Internal / External • Currency / Amount • Quantity / Statistics • Actual • Actual • Projection • Projection • Forecast • Forecast • Time Dimensions • Daily / Weekly • Monthly / Quarterly • Yearly • Month-To-Date • Year-To-Date • Location Dimensions • Branch • District • City • Country

24. What is FESA Planning ? • Budget • Budget • Budget • Actual • Actual • Actual • Projection • Projection • Projection • Forecast • Forecast • Forecast • Production

25. What is FESA Planning ? • C&B Code • Basic Salary • OT • Commission • Double Pay • Performance Bonus • Share Options • Housing Allowance • Medical Insurance • Life Insurance • Holiday Pay • MPF • Sick Leave • Exam Leave • And More

26. What is FESA Planning ? • Budget • Budget • Budget • Actual • Actual • Actual • Projection • Projection • Projection • Forecast • Forecast • Forecast

27. What is FESA Planning ? • Budget • Budget • Budget • Actual • Actual • Actual • Projection • Projection • Projection • Forecast • Forecast • Forecast

28. What is FESA Planning ? • Budget • Budget • Budget • Actual • Actual • Actual • Projection • Projection • Projection • Forecast • Forecast • Forecast

29. What is FESA Planning ? • Budget • Budget • Business Dimensions • Income / Expense • Assets / Liability • Off/Post-Balance Sheet • BU / Department • Project / Product • Other Dimensions • Version / Scenario • Internal / External • Currency / Amount • Quantity / Statistics • Actual • Actual • Projection • Projection • Forecast • Forecast • Time Dimensions • Daily / Weekly • Monthly / Quarterly • Yearly • Month-To-Date • Year-To-Date • Location Dimensions • Branch • District • City • Country

30. Start and Growth FESA Planningwith an Entry Point Package • Save Time • Shortest time for implementation • Save Efforts • Avoid disruption of day-to-day operations • Save Money • Commit minimum capital investment • Mitigate Risk • Walk away from associated risks of ultimate complexity

31. Agenda

32. Records to Reports (R2R) Framework EXCEL FILES FESA DBMS

33. Support Highly Flexible Formatting of Spreadsheet Data We classify formatting of spreadsheet data into two main classes: • “Pivot Table Like” or “Column” Form: • itcan support Incremental Based Budgeting • “Transaction Like” or “Row” Form: • it can support Zero Based Budgeting

34. Support Data Rewritable Methodology User can assign Segmental Rewrite Code to their date entry form so as to rewrite posted data associated with specific dimensions such as company, departmentand version: For example: • HR01 represents data entry form responsible by HR department to maintain version 01 of data set • SALE01 represents data entry form responsible by Sales department to maintain version 01 of data set

35. An Example of Report Package

42. Planning Process Management

43. Support You to Configure Authorization & User Access Right

44. Workflow Scenario 1 User A User D 2. Posting 1. Data File Upload Status Void Pending Completed Restored 2/3

45. Workflow Scenario 2 User B User C User A User D 4. Posting 3. Save as Batch 2. Validation Only 1. Data File Upload Status Void Pending Validated Completed Validated Void Void Restored 2/3

46. Provide Comprehensive Audit Trial Provide comprehensive enquiry function for administrator or auditor to monitor and audit data processing activities

50. Agenda