pac webinar - kinross strikes gold
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KINROSS STRIKES GOLD WITH
ADVANCED REPORTING
Presenters:
Justin McNeely - Account Executive, Performance Analytics CorporationSharon Chadwick - Manager, Kinross Advanced Reporting SystemSusan Harris, Director of Consolidations & Kinross Advanced Reporting System
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� Canadian consulting firm focused exclusively on SAP Enterprise Performance
Management solutions
� Implementing SAP BusinessObjects Planning and Consolidation (BPC) since
2003
� Currently support the majority of Canadian customers using BPC
� Consultants located across Canada
� Consultants have Finance background: CA, CGA, CMA, CPA
� Services include: Evaluation, Design, Implementation, Project Management,
Training, and Support
Sample of Canadian SAP BPC
Customers
Common Issues
■ Silos of information
■ Data integrity and validation issues
■ Multiple currencies
■ Manual security
■ Excel hell
■ Version comparison and variance analysis difficult
■ What-if analysis difficult
■ Structural changes (account, org) are painful
■ Lack of controls, approvals, and audit trail
■ Compliance with SOX/C198 difficult
■ IFRS
■ XBRL
■ Manual process – time consuming –80/20 rule
Process Issues Environmental Issues
Lengthy Cycles
Introducing SAP BusinessObjects
Planning & Consolidation (BPC)
MS SQL Server
SAPNetWeaver
What the Industry Analysts are
saying…
� Gartner SAP is a Market Leader and has the strongest vision
� IDC SAP #1 in Performance Management Tools
� Forrester SAP has the strongest offering in the Business
Performance Solutions market
� Microsoft – SAP press release November 2009
Microsoft Corporation supports the SAP® BusinessObjects™ Planning and
Consolidation application, version for the Microsoft platform, as a preferred
solution for customers running their business applications on the Microsoft
platform.
Kinross Gold Corporation
■ Canadian based gold mining company with mines & projects in the USA, Brazil, Chile, Ecuador, Ghana, Mauritania & Russia
■ Employees: Approximately 7,000 worldwide
■ Strategic focus is to maximize net asset value & cash flow per share
■ Production: 2.3 million gold equivalent ounces
■ Revenue: USD 3 billion
■ Acquired Red Back Mining
■ Increased revenue, cash flow & earnings
■ Advanced growth projects
■ Expanded gold reserves & resources
Corporate profile
2010 performance & highlights
Kinross Advanced Reporting System
■ External auditors, KPMG, assisted with selection process:
■ Enterprise wide solution to meet both financial and operational requirements
■ Single, reliable and centralized source of information that everyone in the
company could access
■ Highly intuitive and provide familiar interfaces, including Microsoft Office
■ Scalable to support the company’s growth
■ Implementation partner: Performance Analytics Corporation
■ Two phases
■ External financial reporting
■ Internal operational reporting
KARS Implementation
Kinross Advanced Reporting System
■ Project team
■ Project managers - 1 x PAC, 2 x Kinross - Finance & IT
■ Consultants - 2 x PAC
■ KARS team - 4 x Kinross Finance, including system administrator
■ Key business users across company
■ Consulting
■ Application design
■ Fully calculated cash flow
■ Elimination of investments
■ Gold equivalent ratio by month, quarter & YTD
■ Imperial to metric conversion for USA sites
■ Reports, input schedules & custom journal report
■ Interfaces
KARS Project Team & Consulting
Kinross Advanced Reporting System
KARS Project Plan
JUN 1 JUL 1 AUG 1 SEP 1 OCT 1 NOV 1 DEC 1 JAN 1 FEB 1 MAR 1
Overview
Scrub Data
Project Coordination
Consolidation
Adjustments
19-Jun-08
Parallel sub-consolidations
KARS sub-consolidations
APR 1
31-Mar-09
Kinross Advanced Reporting System
� DailyRate: Daily currency rates, metal & oil prices.
� Rate: End of month & monthly average for Fx rates & prices.
� Finance: Consolidation of financial & operational data.
� Ownership: Entity ownership data.
� Operations: Operational/production data.
BPC Applications
Kinross Advanced Reporting System
� Dimensions (18)
� Shared e.g. Category
� Unique e.g. Account
� Alternate hierarchies e.g. Entity
� Legal, Management, Geographic and Segment.
BPC Applications – continued …
FinanceDailyRate Ownership OperationsRate
Kinross Advanced Reporting System
■ Developed
■ 1½ day training course
■ User guides for Operations & Finance
■ ½ day report writing course post ‘go-live’
■ On-site training
■ Operating mine sites
■ Regional offices
KARS Training & Documentation
Kinross Advanced Reporting System
■ Monthly reporting implemented April 2009
■ “Go live” for external reporting – Q2 2009
■ Financial statement preparation for Q2, Q3 & Q4 based on KARS data
■ Legacy/Excel consolidation run in parallel for Q2, Q3 & Q4 to verify KARS data – discontinued Q1 2010
KARS Milestones
KARS
Kinross Advanced Reporting System
■ First collected at a regional level
■ Highly summarized financial data
■ Submitted to headquarters 10 days after financial reporting cut-off date
■ Headquarters took a week to generate consolidated P&L & balance sheet
■ Another week to issue consolidated cash flow report
■ Request for more detail placed additional burden on regions and/or local business units
“Then” quarterly consolidation process
Kinross Advanced Reporting System
■ WD3
■ AP & AR closed 8am
■ Ounces produced input & transferred to Finance
■ WD6
■ Source GL (JD Edwards) closed 8am & data loaded into BPC
■ Operations data transferred to Finance at 3pm
■ WD8
■ Balance sheet continuities completed – cash flow completed
■ Supplementary input schedules completed
■ All entities submitted by COB
■ WD9
■ Operations results issued to SLT
■ Regional signoff – KARS locked for the period
■ WD10
■ Consolidated results issued to Executive Team
“Now” monthly consolidation process
Kinross Advanced Reporting System
■ Rapid external financial reporting
■ First time in company’s history that audited quarterly financial statements were released at the same time as publicly announced quarterly financial results
■ Reduced reporting cycle timeline
■ 50% faster for completing consolidated balance sheet, profit & loss and cash flow statements
■ Business users can focus more time on analytics & operational improvements
■ Consolidated ‘monthly’ internal reporting
■ Delivered on budget & on time
Results
Kinross Advanced Reporting System
KARS Report stacks
■ Profit & loss
■ Balance sheet
■ Cash flow
■ Intercompany matching
■ Note disclosures
■ MD&A
■ G&A
■ Production & costs
■ Production & sales summary
■ Site statistics
■ Production
■ Costs by element
■ Fuel costs
■ Corporate responsibility reporting e.g. consumption of carbon-emitting substances
■ Monthly commentary
■ Quarterly site financial reporting packs
Financial statements Operational metrics
Business Benefits
� Reduced cycle times and associated costs
� Improve accuracy and alignment with strategic goals
� Increase governance, control and accountability
� Spend more time analyzing and modeling the business and less time gathering data
© SAP 2009 / Page 21
Thank you!
Justin McNeelyAccount Executive
Performance Analytics Corporation
T (905) 599-7001
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