Ernst & Young’s CFO Program

1. Ernst & Young’s CFO Program Overview June 2011

2. The Master CFO series The EMEIA CFO program looks at aspects of personal interest to CFOs and senior finance professionals, as they seek to develop themselves and their teams and learn from others within their community.  It provides insight on events and experiences that CFOs encounter as part of their role Finance Forte explores the skills, qualities and experiences which will be required of finance leaders of the future, and the role that today’s Group CFO has in identifying and cultivating this talent • CFOs and the media explores the CFO’s role in communicating with the media and is the first of a collection of studies within The Master CFO Series The DNA of the CFO looks at the expectations, aspirations, responsibilities and relationships of today’s CFO, and the makeup of this distinctive community within EMEIA

3. 9 key steps for the aspiring Group CFO to take and ensure they are well-prepared • Gain a breadth of finance experience - diversity is more important than vertical focus • Develop commercial insight; consider the option of temporarily stepping out of finance • Seek out M&A experience - get post as well as pre-deal exposure • Obtain a balance of traditional and non-traditional skills - traditional skills remain critical but will not differentiate • Develop leadership skills- build teams with diverse skills • Get international exposure - an understanding of emerging markets dynamics is important • Gain experience of finance transformation initiatives - get exposure to the full range of finance activities as well as big project experience • Get exposure to the market and its stakeholders • Build effective relationships with the board

4. The CFO and the media - role of the CFO in communicating with the media CFOs are more typically in the back seat as opposed to center stage when it comes to the media. Not all have a role, or indeed want a role, beyond engaging with the media on the annual communication of financial results. But, there are signs that this is changing. • More CFOs have a more active role with the media The primary media responsibility for most respondents remains communication of financial information. Yet, over a third also have responsibility for communicating on issues including crisis management and long term strategy. More than 4 out of 10 are communicating with the media more often and spending more time doing so. • A changing media landscape is changing the way CFOs need to communicate Fragmentation of media channels, a 24/7 rolling news model and an increasingly sophisticated, and aggressive, media is changing the way in which CFOs need to respond. Almost two-thirds of respondents agree that the media has become more aggressive , while 52% think that the crisis has made the media more suspicious of business leaders. This EY report is based on a survey of 260 CFOs across EMEIA, as well as insights from experts in media and communication. The survey was conducted by the Economist Intelligence Unit

5. The CFO and the media - role of the CFO in communicating with the media CFOs are more typically in the back seat as opposed to center stage when it comes to the media. Not all have a role, or indeed want a role, beyond engaging with the media on the annual communication of financial results. But, there are signs that this is changing. • CFO confidence levels in dealing with the media are potentially misplaced While 8 out of 10 rate their confidence in dealing with the media as good or excellent, comfort levels drop when communicating on non financial performance and long term strategy • The infrastructure to support CFOs has not caught up with their broadening media role Only 39% of respondents receive briefings from the press office or a media training company before major announcements, and only 23% work with their communications team on a strategy to build relationships with key journalist and those who influence them.

6. The CFO’s media remit is being extended The percentage of respondents who feel they have the responsibility to communicate with the media, and also the experience of communicating with the media, on these subjects Primary responsibility for the majority remains communication of financial results, yet a significant minority say their remit is being extended Base: all respondents (260)

7. The DNA of the CFO The CFO’s contribution to strategy Areas where respondents believe they play a leading role in corporate strategy Just over one-third of respondents believe they play a leading role in developing and defining organizational strategy. The fact that this group is not defined by organizational size or market that they represent (although age is a determining characteristic) suggests that this finding does not simply reflect the diversity of roles within the CFO universe between the large and the small. It does suggest a disconnect between reported aspiration and the reality, perhaps caused by a need by some to refocus on finance fundamentals during the crisis. Only 37% of respondents agree they have enough time to focus on broader organizational strategy. Shown: Percentage of respondents Base: all respondents (669)

8. The DNA of the CFO- the expectations, aspirations, responsibilities and relationships of today’s CFO Les Clifford, CFO Program chairman 7 July 2011 Sheraton hotel, Sofia • What is to be a CFO today – outcomes of the EMEIA research • What is the role of the Financial director in Bulgaria – results of the Bulgarian survey where 104 financial directors took part • Discussion on the challenges and opportunities ahead of the financial directors in Bulgaria • See more and register http://www.ey.com/BG/en/Home/cfo • Or call 8177 119

9. Thank you