Finance: From reporting office to decision support

Finance: From reporting office to
decision support
Visualize Your World
21. October 2014
Presenter and agenda
Christian Bjørstorp Pedersen
Director, Commercial Finance
Jan11 – Present
Jan07 – Dec10
Agenda
• Introduction to Scandlines
• Accommodate new financial demands
• Next level of value add
• Questions
2
Scandlines
Ernst & Young, Transaction Advisory Services
Cand.Merc FIR (Copenhagen Business School)
Scandlines – Snapshot
Scandlines operates high frequency, short sea distance ferry operations between the most
prosperous countries in Europe, serving foot passengers, car, bus, cargo and train customers
•
•
Scandlines Route Network
2012A (€m)
Revenue
502
EBITDA
172
FCF1
150
High Frequency Routes – “Traffic Machine Specialist”
Offers a frequent and reliable transportation service,
connecting on-land transport infrastructure
High frequency and short sea distance ferry operations
serving foot passengers, car, bus, cargo and train customers
around the clock, 365 days “Traffic Machine” concept
SWEDEN
3 route network serves essential connections in traffic
corridor between Scandinavia and Continental Europe
Helsingør
Helsingborg
DENMARK
The network is operated by a fleet of 12 well-maintained
vessels (8 vessels owned by Scandlines), custom built to
fulfill a high frequency route schedule
Rødby
Gedser
Strong positioning via ownership of key port infrastructure
in Rødby, Puttgarden, Gedser and Helsingør (southern part of
port owned by Scandlines / approx. 2/3 of port area), which
provides operational benefits and high barriers to entry
Puttgarden
Rostock
Unique Bordershop concept in Puttgarden and Rostock
GERMANY
Revenue Split by Route
Bordershops
Bordershops
Helsingør –
Helsingborg
26%
Helsingør –
Helsingborg
13%
14%
Gedser – Rostock
3
EBITDA Split by Route
46%
Rødby – Puttgarden
Gedser –
Rostock
9%
13%
10%
69%
Rødby – Puttgarden
Revenue Split by Segment
Other
Leisure
On-Board Retail
4%
Travellers
& Catering
19 % 26 %
22 %
Cargo
29 %
Border
Shoppers
History of Scandlines
4
DSB Rederi A/S changes its
name to Scandlines
Danmark A/S
Scandlines AG is sold to Allianz
Capital Partners (ACP), 3i Capital
Group (3i) and Deutsche Seereederei
(DSR). New name: Scandferries
Holding GmbH
The Baltic freight routes are
sold to Stena Line and
Swedish Orient Line
1997
2007
2012
1998
2010
2013
Scandlines AG is founded
through the merger of DFO
and Scandlines Danmark A/S
DSR sells its 20 %
share to ACP and 3i,
leaving them as equal
partners
ACP sell shares to 3i
in a structured M&A
process. Scandlines
successfully refinance
MEUR 875 senior debt
Accommodate new financial demands
2010
Accommodate new financial demands - Situation
• Reporting in Access – relying on one individual
• Cultural legacy and trust
• No structure for follow up. Business reviews held sporadic
Efficiency
• Limited transparency
• People were using their ”own” figures
Quality
• Controller mindset was ”transaction” based
Lack of business support to business managers
90/10
40/60
20/80
• Group controlling was only used for reporting
Reporting
• Business not mature for BI strategy or tools
e.g. QlikView
Value Add
<- 2010
6
Q1 2014
Goal
2010
Accommodate new financial demands - Actions
Efficiency
Step 1 - One set of numbers (key focus)
Step 2 – Restructuring reporting frame
Quality
Step 3 – People / organization
90/10
40/60
20/80
Reporting
Value Add
<- 2010
7
Q1 2014
Goal
Accommodate new financial demands – Actions
Step 1 – One set of numbers
2010
• Data warehouse implementation (SAP/BPC)
• Common understanding of numbers
• Basis for business reviews
Efficiency
• Quality assurance
• Change management - process
• Qlikview – postponed (business not mature)
Quality
90/10
40/60
20/80
Reporting
Value Add
<- 2010
8
Q1 2014
Goal
Accommodate new financial demands – Actions
Step 2 – Restructring reporting frame
2011->
• Place responsibility
• Understand profitability and Return on Capital
• Support fact based discussions
Efficiency
• Full transparency e.g. Retail / Catering
• Focus on KPIs
• Change management process
Quality
90/10
40/60
20/80
Reporting
Value Add
<- 2010
9
Q1 2014
Goal
Accommodate new financial demands – Actions
Step 3 – People / organization
2011-13
• Centralize Controlling
• Recruit new team
• Commercial/Finance mindset vs. transaction
mindset
Efficiency
• Finance Business Partner implementation
• Focus on value-add vs. reporting
Quality
• Improve processes
• Prepare Finance strategy from 2014-16
90/10
40/60
20/80
Reporting
Value Add
<- 2010
10
Q1 2014
Goal
Accommodate new financial demands – Actions
Step 3 – People / organization
2013
• Centralize Controlling
• Finance Business Partner implementation
• Recruit new team
• Commercial/Finance mindset vs. transaction
mindset
• Focus on value-add vs. reporting
• Improve processes
• Prepare Finance strategy from 2014-16
© BASICO
11
Accommodate new financial demands – Actions
Step 3 – People / organization
• Centralize Controlling
• Finance Business Partner implementation
• Recruit new team
• Commercial/Finance mindset vs. transaction
mindset
• Focus on value-add vs. reporting
• Improve processes
• Prepare Finance strategy from 2014-16
12
2013
Next level of value add
2013->
Next level of value add
• Increasing demands and requirements to modern finance
functions
Efficiency
• Basics from 2010-13 in place – license to play
• Business is mature for BI solutions – QlikView
• Continue implementation of Finance Business Partner
concept
Business understanding
• Focus on efficiency and business understanding
• High level of flexibility required
90/10
40/60
20/80
• Optimized closing procedures – limited questions
Reporting
• Optimize processes e.g. weekly and retail / catering
• Implemented weekly reporting via Qlikview
Value Add
<- 2010
14
Q1 2014
Goal
2014
BI solutions has improved efficiency and increase value-add in Scandlines
• Eliminated manual process
• Eliminated labor intensive work – 40% of FTE
Efficiency
Learnings in 2014
• Reduced risk of error
• Increased employee motivation
Business understanding
• Increased value-add – deliver advice vs. report
• Real time data
90/10
40/60
20/80
• Support Management decisions – fact based
Reporting
• Performance Management pushed into business
• Support “Go-to-market” strategy
• Corrective actions (beginning of month vs. end of
month)
15
Value Add
<- 2010
Q1 2014
Goal
2015->
BI solutions has improved efficiency and increase value-add in Scandlines
• Launch Qlikview in commercial areas
• Tool highly valued in implemented areas
Efficiency
Next level of BI implementation
• Secure buy-in from organization/users
– not just a finance tool
Business understanding
• Training
• BI solution embedded in strategy / Roadmap
- Steering committee (IT/Finance)
90/10
40/60
20/80
• Significant potential for value add
Reporting
• Time / departures
• Outlets
• PFD reports / intranet
• KPI focus (performance culture)
16
Value Add
<- 2010
Q1 2014
Goal
Closing remarks / Learings in turnaround
Learnings 2010 - 2013
• Data warehouse and transparency is fundamental for efficiency
• Ensure organization is mature for new systems
• Secure buy-in from key stakeholders internally and externally e.g. banks
• “Educate” organization
• Timely process
• High demand of FBP vs. Financial Controllers -> value-add
Qlikview learnings
•
QlikView: Flexible and user friendly system
•
Real time data – support quick and fact based decisions
•
Support efficiency focus
•
Early stages of QlikView strategy -> potential
17
Questions