post-brexit earnings call: what you need to know to be ready
Post on 13-Apr-2017
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Post-Brexit Earnings Call: What You Need to Know to
Be Ready
Treasury Innovation Forum – Risk importance rankings
GTNews: 2016 Treasury Innovation Forum
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Treasury Innovation Forum – Major pain points
GTNews: 2016 Treasury Innovation Forum
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Deloitte 2016 Survey: Challenges in managing FX risk
Deloitte. 2016 Global Foreign Exchange Survey.Source link: http://www2.deloitte.com/us/en/pages/advisory/articles/global-foreign-exchange-survey.html
Lack of visibility of FX exposures and reliability
of forecasts
Emerging market/restricted currency market volatility
Manual exposure Identification and capture
processes
Business unit understanding
Inadequate treasury or financial risk management
systems
Ability to analyze exposures and measure
hedging results
Hedge accounting
compliance
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Treasury & Risk – Learn from Brexit
6 Practical Questions To Ask and Answer Before the NextDomino Falls
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Read Article
Help fix the communication disconnects
Economic
CFO
Foreign Exchange Manager
Controller Treasurer
Accounting
Corporate
CEO &Board
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Questions that are coming your way
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• How exactly were we effected by Brexit?
• What will be impact on go-forward basis?
• Is what we’re doing to mitigate risk working?
Five areas to prepare for your earnings call
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1. Complete FX portfolio
2. Predictive/scenario analysis
3. Corporate currency policy
4. FX impact on financial statements
5. Potential team/enterprise risks
How to build a CFO Flash Report
• Overview• Exposure & Risk• Income
Statement
$0.04
25.00%200
40 52 Countries68.0
%0.0%
20.0%
$20,234,121$18,547,294$16,392,301$13,293,192$10,392,283
$4,212,323$4,823,212$8,129,342$6,238,124$9,348,242
$10,392,283$16,392,301$13,293,192$18,547,294$20,234,121
$9,348,242$8,129,342$6,238,124$4,823,212$4,212,323
Income Statement Components (USD)Gross Gross Risk Net Risk
Revenues COGS OPEX
Exposure (Before Actions) (after actions)
NOIFX G/L
NIEPS
Exposure & RiskCurrency Volume Net Risk
5 Largest Exposures (Volume in USD)
USD EURTime Period: Q2 GBP USD
BRL CNYAUD USDUSD CLP
5 Largest Risks (VAR) USD CLPTime Period: Q2 BRL CNY
AUD USDGBP USDUSD EUR
OverviewPotential EPS Impact (Quarterly)
Total Number of Currency PairsTotal Number of CurrenciesHedge Efficiency Ratio B/S
I/S
Total
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CFO Flash Report
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CFO Flash Report
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CFO Flash Report
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CoRETM Analysis – Cost & risk reduction
FiREapps Customer: US$ 4 Billion Revenue Company
$40,000,000
$32,000,000
$24,000,000
$16,000,000
$8,000,000
$0
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Rapid Response Analytics
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Helping Treasurers and CFOs prepare for any eventuality by:• Delivering initial GBP related
exposure details in days, not months.
• Providing the visibility to quickly eliminate GBP exposure organically (without external forward hedging).
• Offering a clear, fact-based path tosensitivity and scenario analysis for exposures impacting the income statement and balance sheet
Learn More About Rapid Response Analytics
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