Emmanuel Bernoux, CPO at Agfa - The CPO - CFO Alliance

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Emmanuel Bernoux, CPO at Agfa spoke at the CPO Event March 2014

Transcript of Emmanuel Bernoux, CPO at Agfa - The CPO - CFO Alliance

  • CPO-CFO Alliance @ Agfa Emmanuel Bernoux Chief Purchasing Officer March 20-21, 2014
  • 2 Executive Summary At Agfa, the CPO-CFO partnership emcompasses a increasing range of strategic and tactical areas, ranging from financial planning, to profitability and value support including risk management. This takes place in a fundamental change of internal and external factors. With one common objective : long term business sustainibility.
  • 3 Contents 1. Agfa Introduction 2. CPO-CFO Goal Congruence The example of the Agfa Graphics Business Group. 3. Financial Management 1. Planning & Budget 2. Cost 3. Cash 4. Risk Management 1. Materials and supplier markets in the short-mid term 2. Suppliers and supplier markets in the long term 5. Make it work : 1. Commonly defined objectives 2. Necessary Governance and working together in teams
  • Agfa An Introduction Emmanuel Bernoux Chief Purchasing Officer March 20-21, 2014
  • 5 Introduction What you have in mind
  • 6 Introduction What it is
  • 7 FY'12 FY'13 % (excl. X-rate) Sales 3.091 2.865 -7.3%(-4.8%) Gross Profit* 870 833 -4,3% as a % of sales 28,1% 29,1% SG&A* -573 -538 -6,1% SG&A as % of sales 18,5% 18,8% R&D* -163 -146 -10,4% Other operating items* 6 -5 Recurring EBITDA* 225 224 -0,4% as a % of sales 7,3% 7,8% Recurring EBIT* 139 144 3,6% as a % of sales 4,5% 5,0% Profit & Loss: Key Figures (in million Euro) * Before restructuring charges and non-recurring items
  • 8 Agfa Group: Sales Specialty Products 8% Graphics 52% HealthCare 40% Split per Business Group (YTD) By Region (YTD) Europe 40% NAFTA 25% Latin America 9% Asia and ROW 26% Two strong business groups and a smaller niche business Small half of sales in Europe; strong presence in North America and Asia (excl. Japan)
  • 9 Flexo plates Pages Images Proofing Offset press Film setter Film Analog plates Computer-to-Film Plate setter Digital plates Thermal, Polymer & SilverComputer-to-Plate Digital Inkjet Print Ink Flexo CTP Screen press Screen exposure frame Screen Industrial Inkjet Printing Flexo Printing Flexo press PC Agfa Graphics: Product Portfolio Screen Printing
  • 10 Administration Resource Management Logistics Catering Accounting Billing Planning Examining Diagnosing Treating Reporting The HealthCare Community Referring Physicians Assisted Living Home Care Pharmacists Payors Electronic Patient Record Intensive Care Emergency Room Nursing Surgery Laboratory Cardiology Intensive Care Radiology HealthCare: IT Solution Portfolio
  • 11 Conventional Radiography Radiology - Product Portfolio Conventional X-ray Film X-ray Film Processor Hardcopy Softcopy DR Scanners CT MRI US NM PET X-ray Table DR-GenRad CR PACS Dry Film Reusable Phosphor plate CR Digitizer NX workstation Dry Imager
  • 12 Specialty Products: Product Portfolio Classic Film Functional Foils Advanced Coatings and Chemicals
  • 13 Supplier Financial Content @ Agfa 2,900 MEUR 1,900 KEUR1,800 MEUR 62% 1,900 KEUR1,150 MEUR 64% 650 MEUR 36% Revenue Total Spend Non Metals Metals
  • 14 Supplier Content by Spend Categories
  • 15 Agfa Purchasing as Global Shared Service Organization Internal Customers Supplier Spend K Revenue K Agfa Graphics 832 1,491 Agfa HealthCare 416 1,160 Agfa Materials 536 214 TOTAL 1,784 2,865 Strategic Metals has global responsibility for the purchase of the strategic metals, Silver and Aluminum Global Category Management is responsible for the Quality Cost Delivery performance of the supplier base for all Agfa entities globally. Regional Purchasing - the deployment of global category strategies - and for the Quality Cost Delivery performance of the supplier base regionally. They support the globalization of Agfa and of its supplier base. - The organization covers all categories, Business Groups and GSS Purchasing needs in the region. - There are 4 regions : Europe, North America, LATAM and ASPAC. Advanced Purchasing is responsible for the Quality Cost Delivery performance of suppliers in Solutions Development (New Product Development) cycles Purchasing Process Office is focused on defining, building and implementing the necessary standards, business processes, business tools of the end-to-end Purchasing process. Legal and Controlling both support Agfa Purchasing in legal and financial monitoring fields.
  • CPO-CFO Goal Congruence The example with the Agfa Graphics Business Group. Emmanuel Bernoux Chief Purchasing Officer March 20-21, 2014
  • 17 CPO-CFO Goal Congruence The example with the Agfa Graphics Business Group. Agfa Graphics EBIT COGS Price Management & Structural Erosion SG&A Working Capital Predictiblity Business Continuity Manufacturing footprint financial efficiency Distribution Channels Performance Value Chain Optimization Revenue Life Cycle and new Businesses Agfa Purchasing Spend Efficiency Payables Financial Risk Management Strategic Category Management Key Supplier Relationship Management Advanced Purchasing Financial Management Risk Management Make it work
  • Financial Management Planning & Budget Cost Cash
  • 19 Planning, Budget and Cost Increase performance via partnership, transparency and focus.
  • 20 Cash Long term improvement stratgy supported by short term hands on approach
  • Risk Management Materials and supplier markets in the short- mid term Suppliers and supplier markets in the long term
  • 22 Short Term Financial Risk Raw Materials Price erosion distorsion Suppliers Financial Health Supply Continuity Manufacturing Efficiency
  • 23 Mid & Long Term Supplier Organic Risk KSRM Supplier Market Risk Supplier markets expertise Technology Consolidation in mature markets Versatility of Commodities Metals Petrochemicals Micro and Macro Financial risk Metals markets financiarization
  • Make it work Commonly defined objectives Necessary Governance and working together in teams
  • 25 Objectives & Governance Objectives and Targets are algined with Business cycles Along annual budget and 5 year plan Governance is aligned along purchasing categories and steered in common Teamwork is instrumental to succes
  • 26 Questions Thank You