Celemi Apples & Oranges™ – The simulation How business finance comes to life Purchasing Production Sales Accounts receivable Cash

What’s the difference between operating profit and net profit? Why are they always going on about cash flow… we are making money aren’t we? What’s the difference between operating profit and net profit? Working capital… is it really working? Profitable growth… that is something for the managers to figure out, right? Top-line vs. Bottom-line? Is there a Middle-line…? KPIs who needs them?!? What is a Balance Sheet? Value added services, we don’t have those… do we? Which is more important, to grow or to make money? Business finance… isn’t that why we have a finance department?! What does ROI really mean?

A few simple rules Add value Purchase Sell 10 8 18 18 22 “Harvest”

A few simple rules Add value Purchase Sell “Harvest”

To grow profitably Everyone in the organization needs to have… …a big picture view of the company and its financials …a financial awareness to better manage revenues, costs, profit, and cash …an understanding of how everyday decisions impact the bottom line

A reliable business simulation A well-proven solution, run by leading companies around the world since 1992.

In action

What people experience Business finance coming to life Engagement and teamwork Serious fun

What people are up against Optimization of resources Cash flow management Creation of profitable growth

What people take away Big picture view An understanding of financial statements and KPIs Better understanding of how to achieve operational excellence

What it is about

The Celemi approach You can’t absorb other people’s knowledge… … you have to create your own!

The seminar in a nutshell Target groups Anybody who will gain from learning about business finance Employees at all levels Time 4 to 16 hours Corresponding to 3-4 simulated fiscal years Materials Simulation board Coins and value carriers Learning guide Number of participants 3-6 teams, 12-24 participants in total Facilitation Trainers certified by Celemi

The challenges – year by year 1. Take over a company Year 1: Learn how to run the business. 2. Focus on working capital Year 1: Turn dead wood into cash. 3. Go for profitable growth Year 2: Choose your strategy for growth. 4. Focus on cash Year 2: Profit is an opinion. Cash flow is a fact. 5. Many small wins Year 3: Pulling the right levers. A competition between the teams!

The challenges year 3 – what suits you? Year 3: Choose 4 out of 8 strategic initiatives and maximize the profit Year 3: Chose the right Customer Base for Short- and Long-Term Sustainable Profit or Net Sales Quality Support Functions Productivity Purchase Price

The Scenario Year 3: Build a Customer Base for Short- and Long-Term Sustainable Profit A competition between the teams! Volume Can we grow the business with the customer…? Loyalty Will they continue doing business with us…? Image Value Will they attract other customers…? Price Sensitivity Do we need to offer lower prices? Or; could we raise prices? Payment Terms Are we expected to lend money to our customers? How much, for how long?

Secure that the learning leads to useful knowledge – that sticks. The Next Steps Activity Link to your own area of responsibility – ”How can you make a difference?” Identify what levers to pull “What can I do differently – to contribute to the companies performance” Share conclusions and discuss the way forward Secure that the learning leads to useful knowledge – that sticks.

Monitoring performance While learning the financial statements

Key concepts covered Business finance value drivers Profitable growth Key performance indicators Balance sheet Profit and loss statement Cash flow Working capital Profitable growth Value added services Economy of scale Continuous improvements Operations efficiency

Take aways

Participants practice their ability to … Optimize use of resources Positively contribute to the bottom-line Analyze financial statements and KPIs Manage revenues, costs, profit, and cash Business acumen Financial literacy Big picture view Operational decision-making … strengthening their capabilities in

Back to reality

Transferring experiences from the simulation Link to your business reality – ”How can you make a difference?” Identify what levers to pull “What can I do differently – to contribute to my company’s performance”? Share conclusions and discuss the way forward

Who is it for?

Who is it for? Employees at all levels needing to know business finance and strengthen their business acumen.

What clients say

What our clients say “People actually begin to apply their new knowledge on the job, which helps them remember it. Months later retention is still high.”  “In one of our factories we came up with £1 million worth of potential improvements as a direct result of the Celemi Apples & Oranges™.” Manager, Sales & Marketing Learning Programs, 3M “Pursuing the Value Management program has saved the Group around €1 billion in costs... we could not have accomplished this without Celemi Apples & Oranges™.” Manager, GSK (GlaxoSmithKline) CEO, BASF

Some Celemi Apples & Oranges™ clients

Some Celemi Apples & Oranges™ clients › 75 000 employees › 32 000 employees › 30 000 employees › 12 000 employees › 15 000 employees

”What would happen if…”? CELEMI Profit Simulator™ ”What would happen if…”?