CFOs in a new global environment Sandy Cockrell, Deloitte

CFOs in a new global environment Sandy Cockrell, Deloitte

CFOs in a new global environment 1 2 3 Background The CFO role CFOs Challenges Where does our data come from? How is the CFO role evolving in the past few years? What keeps CFOs up at night?

Where does our data come from? Global CFO Signals SEA CFO Survey North America CFO Signals CFO Transition Lab - A pulse survey intended to provide CFOs with information regarding their CFO peers thinking across a variety of topics - Twenty-eight Deloitte CFO surveys covering more than 60 countries - A one-day experience based on our extensive research on CFO transitions - Helps CFOs as they create a tangible 180-day work plan Source: Global CFO Signals survey 2018 Q1, SEA CFO Survey 2017 July, Global North America CFO Signals 2018 2Q

The CFO role: How is the CFO role evolving in the past few years? Member firms and DTTL: Insert appropriate copyright [To edit, click View > Slide Master > Slide Master] Presentation title [To edit, click View > Slide Master > Slide Master] 4

Expanding Expectations for the CFO Early 2000s The typical CFO profile was The Technical Accountant Today Strong technical capabilities are a baseline expectation Technical Foundation Business Partnering Advisor to CEO and Board of Directors

Four Faces of the CFO Framework Catalyst Catalyse behaviors and change across the organisation to execute strategic and financial objectives Strategist Provide financial leadership in determining strategic business direction, M&A, financing, capital market and longer-term strategies vital to the future performance of the company Steward Protect and preserve the critical assets of the organisation and accurately report on financial position and operations to internal and external stakeholders Operator Balance capabilities, talent, costs, and service levels to fulfill the finance organisation s core responsibilities efficiently

CFOs scope of responsibility is becoming broader CFOs functional responsibility How do the following functions report to you? Percent of CFOs selecting each type of reporting relationship CFO Many CFOs appear to be taking on broader responsibility for business planning, IT/data, and risk. There are notable industry differences, especially around operations/services and risk. Source: North America CFO Signals 2018 2Q CORE FINANCE BUSINESS PLANNING OPERATIONS/ SERVICES RISK/COMPLIANCE Controllership/accounting Financial reporting FP&A Management reporting Tax Treasury Corporate finance Investor relations Business analytics (beyond FP&A) Corporate development/m&a Strategic planning Real estate IT/systems (general/corporate) Procurement/sourcing Legal 13% 6% 3% Talent/HR 3% 5% Internal audit Risk enterprise Risk cybersecurity Risk operations Compliance 14% 12% 11% Regulatory/policy 5% 5% 22% 22% 45% 40% 40% 35% 30% 8% 36% 17% 26% 28% 17% 23% 48% 19% 15% 72% 70% 75% 73% 66% 6% 24% 35% Other, please specify 10% Merger integration, project management, operations, business services, process improvement, actuarial, pensions, and insurance 0% 20% 40% 60% 80% 100% 84% 12% 19% 21% 12% 18% 19% 22% 27% 13% 55% 22% 28% 34% 16% 53% 16% 13% 25% 24% 17% 19% 10% 15% Directly to me Via someone who reports to me Dotted line 7% 3% 3% 4% 5%

CFOs challenges: What keeps CFOs up at night? Member firms and DTTL: Insert appropriate copyright [To edit, click View > Slide Master > Slide Master] Presentation title [To edit, click View > Slide Master > Slide Master] 8

CFOs and businesses confront significant disruptions... Technology Cloud computing Robotic process automation In-memory computing Data visualisation Cognitive computing Blockchain Internet of things Business Model Co-creation Convergence Product or service to product and services Extended enterprise and gig work Process synchronisation Tax reforms Accounting standards Regulatory fragmentation: Local vs Global Investors/shareholders Social movements State to Public to Private Equity Capital Regulatory Activism

What have we heard from CFOs about their top priorities? The top priorities from our CFO Transition Lab sessions globally center around five topics #1 Talent Agenda #2 Communications and Teaming Strategies #3 Financial Planning & Analysis #4 Growth Strategies / Capital allocation #5 Operational Efficiency which are in line across industries and sectors Source: CFO Transition Lab TM 1 2 3 4 5 Financial Services Life Sciences & Health Care Technology, Media & Telco Consumer & Industrial Products Talent Talent Talent Talent Talent Communications Operations Corporate Strategy Communications Communications FP&A Communications Operations FP&A Operations Corporate Strategy Corporate Strategy Communications Operations FP&A Energy & Resources Regulation FP&A FP&A Corporate Strategy Corporate Strategy

What CFOs want their legacy to be? CFO CFOs say they want to leave behind companies and finance functions that are world-class and positioned to perform even better after they are gone. Source: North America CFO Signals 2018 2Q

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