In Control or In Business A Balancing Act

Transcription

1 The Agile CFO Acting on Business Insight In Control or In Business A Balancing Act Sam Strijckmans June 13th 2006 View of the factory & the European «head office in Belgium.» Flexible Technology Company Visit our website:

2 Agenda 2 1. Nitto Denko Corporation 2. Markets & Products: a Snapshot Company 3. The Corporate Structure in Europe 4. Balancing Being in Control & Being in Business 5. Europe: A Dispersed Organization 6. EMEA: One Profit Centre Case Study 7. Critical Succesfactors of the Project 8. Q&A

3 1. Nitto Denko Corporation (1) 3 Founded in 1918 in Tokyo, Japan Listed on the First Section of the Tokyo Stock Exchange Japan s first manufacturer of electrical insulation materials Base technology: polymer synthesis & adhesive technologies Turnover: 4.4 billion euro in FY2005 +/- 27,000 employees worldwide 115 companies 24 countries around the world Mr. Takemoto President of Nitto Denko Corporation

4 1. Nitto Denko Corporation (2) Global Business expansion 5 strategic geographical areas New emerging economies (BRICs) 4 East Asia Americas Europe Middle East - Africa South Asia Japan Manufacturing company Sales company Others

5 1. Nitto Denko Corporation (3) 5 Becoming a Global Excellent Company 900,000 Sales 800,000 Operating -Income E(%) 21.6% 700, , , , , , , , % 338, % 5.7% 378, % 9.0% 452, % 12.4% 514,867 34,824 19,314 33,901 55,912 70, , % 735, % 14.1% 13.9% 89, ,000 76% 65% 25% 27% 12% FY00 FY01 FY02 FY03 FY04 FY05 FY06 Amounts in M JPY

6 2. Market & Products: a Snapshot (1) 6 In Europe we focus on 6 markets: Automotive Electronic devices Paper & Printing Building & Construction Aerospace Medical

7 2. Market & Products: a Snapshot (2) 7 Interior Body related Engine compartment Sealing materials Double-coated tapes Surface protection films Electrical insulation tapes Dashboard Metal re-inforcement HVAC unit Automotive Electronics Nitohard Thermavator Sealing materials Legetolex Double-coated tapes Sealing materials Double-coated tapes Soft tapes Electrical insulation tapes Flexible printed circuits Double-coated tapes Electrical insulation tapes

8 2. Market & Products: a Snapshot (3) 8 Sound components LCD module Double-coated tapes Sealing materials Flexible printed circuits Temish porous membranes Lens & Cover Battery pack Printed Circuit Board Polarizing films Double-coated tapes Flexible printed circuits Surface protection films Moulding compounds Industrial labels Flexible printed circuits Shielding tapes Double-coated tapes Sealing materials Flexible printed circuits Microporous membranes Industrial labels Flexible printed circuits Double-coated tapes Sealing materials Microporous membranes Electronic Devices

9 3. The Corporate Structure in Europe 9 EMEA Headquarters & Manufacturing company Start Up Sales entities with Agency status Turnover 155 M or 22 B JPY 4 Sales branches Employees 700 (of which 620 in Belgium) 1 Shared office with Hydranautics Investments 6.5 M per year (Av. last 5 years)

10 4. Balancing Strategy & Operations (1) Synthesis Analysis The Challenge Strategy Value Creation Business Development The Answer 10 Being in Business Operations Efficiency Improvement Being in Control Stable, highly effective Finance Function

11 4. Balancing Strategy & Operations (1) Finance as a Business Partner: e.g. Credit 11 Credit Marketing Credit Management A/R Management A/R Administration

12 4. Balancing Strategy & Operations (2) Remember 12 Do Not Neglect Being in Control

13 4. Balancing Strategy & Operations (3) 13 A A Scandal anywhere within the Group will destroy the trust in the Nitto Denko Group as a whole

14 4. Balancing Strategy & Operations (4) Lead a Crusade against complexity Reduce the number of reports 2. Reduce the number of systems / datawarehouses 3. Introduce standardized policies & procedures 4. Symplify & automate transactional flows (Payroll, A/P, T&E ) 5. Introduce one set of accounts 6. Create a self service information repository 7. Streamline the budgeting/forecasting process Aim for clarity, simplicity, and accountability transparency and performance insight will follow

15 5. Europe: a Dispersed Organization 15 Dual Billing in Europe NJ NE 7 Non Consolidated Reporting Packages NJ Nitto Denko Corporation NE Nitto Europe NV NF ND NUK NS NP NI NF Nitto France Sarl ND Nitto Deutschland GmbH NUK Nitto UK Ltd NS Nitto Scandinavia AB NP Nitto Polska Sp.zo.o Customer NI Nitto Italia Srl Invoice Flow Financial Reporting

16 6. EMEA: One Profit Centre (1) 16 Direct Billing in EMEA Once per month on the last working day NJ NE 1 Consolidated Reporting Package 2 nd working day NF ND NUK NS NP NI Customer in EMEA region Invoice Flow Commission Note Financial Reporting

17 6. EMEA: One Profit Centre (2) Nitto UK Ltd (NUK) Nitto Scandinavia AB (NS) 17 Nitto Italia Srl (NI) 04/ / / / / / Nitto Polska Sp.zo.o (NP) Nitto France Sarl (NF) Consolidation Training Sales force P/E Avoidance Transfer Pricing Nitto Deutschland GmbH (ND) A well prepared Phased Transition

18 6. EMEA: One Profit Centre (3) 18 Four Main Reasons for the project: 1. Facilitating the One Nitto thinking 2. Centralized Risk Management and Control 3. Cutting and Simplifying Administration 4. Transparent Financial Reporting

19 6. EMEA: One Profit Centre (4) Facilitating the One Nitto thinking.! Europe regarded as one profit centre " Abolishment of individual Kingdoms Vision 2007! Avoidance of local profit maximization! Making the Target of the Sales Offices clear and simple: " Maximize turnover " Keep local expenses within budget

20 6. EMEA: One Profit Centre (5) Centralized risk management and control.! Centralized Credit Collection Risk! Centralized Quality Claim Risk! One set of Terms and Conditions of Sale! Standardization of Payment Terms! Better Control on Stock Levels! Control on correct implementation of Corporate Identity

21 6. EMEA: One Profit Centre (6) 3. Cutting and simplifying administration. 21! Reduction of administrative workload in the Sales Offices: - cancelling local invoicing - eliminating local stock handling - eliminating double payment cycle - eliminating I/C pricing maintenance N of Support Staff from 24 in 2002 to 14 in 2005! Reduction in warehousing cost N of invoices cut by Approx ! Sales offices to focus on procuring sales orders!! Reducing N of transactions = reducing risk for errors! Cutting paper mountain: less paper, less printers, less IT

22 6. EMEA: One Profit Centre (7) Transparent Financial Reporting.! All turnover centralized in one legal entity! One consolidated financial reporting package to the HQ! Simplified and faster Budgeting and Forecasting cycle! Easier profitability analysis! Accounting at Sales Offices becomes very basic! Simplification of VAT and Intrastat declarations

23 7. Critical Succesfactors of the Project! One Integrated Order Management System accross EMEA 23! Focus of the Local Office Limited to Maximizing Sales! Do NOT Incentivise the Bottem Line of the Sales Office! Not only Change the Transaction Flow, also Change the Working Culture! Communicate the Change Internally & Externally! Take advice on tax (corporate tax, VAT, customs) and legal implications! A motivated Team with Open Mind! Kaikaku!

24 8. Q & A 24 Make It Happen Creativity is the Seed of Accomplishment

25 Back Up Slides 25

26 2. Market & Products: a Snapshot (4) 26 Paper production Reel starting Printing industry Splicing Reel closing Paper & Printing Reel packaging

27 2. Market & Products: a Snapshot (5) 27 Corossion Protection materials Building & Construction Double-coated adhesive tapes Surface Protection materials Sealing materials Electrical Insulation tapes