Press Conference November 27,2013 CHARTING THE SUCCESS FACTORS OF THE NEXT GENERATION CFO

ABOUT HUDSON INDUSTRY LEADERS SERIES  This annual series brings together leading practitioners across the Accounting & Finance profession to discuss key issues and influences impacting the function  11 CFOs from leading domestic and multinational corporations joined the round table this year, sharing insights about the skills, competencies and behaviours that are critical to the success of CFOs today  This Industry Leaders Series report aims to help organizations future-proof their finance function and identify and assess the skills they need in their own CFOs 1

THE RISE OF THE NEXT GENERATION CFO

REDEFINING THE ROLE OF CFO - THE RISE OF THE RISK-AVERSE ENTREPRENEUR The environment in which CFOs are operating ̶ Greater uncertainty of global economy ̶ Increasing local socio-political issues ̶ Stiff domestic and international competition CFOs are expected to be a blend of gatekeeper and entrepreneur. They are tasked with new responsibilities: ̶ Read and anticipate market trends ̶ Lead business innovation ̶ Identify commercial opportunities ̶ Create efficiencies through cost-cutting and improving productivity 3

REDEFINING THE ROLE OF CFO - THE RISE OF THE RISK-AVERSE ENTREPRENEUR “My job isn’t just about managing the numbers or financial reporting now, its about being on the front line in the battlefield and working with the troops to find new ideas to move the business ahead.” Lawrence Lau, Owens Corning “The CFO could be renamed ‘Chief Fortune Officer’…There are so many contradictions and factors to be managed simultaneously – it requires a high level of balance.” John Meng, Qoros 4

MASTERING THE TALENT CHALLENGE

NEW SKILLS AND COMPETENCES THAT TODAY’S CFO ROLE DEMANDS The new generation CFO - a visionary, a strategist, an entrepreneur. ̶ Financial literacy - an MBA or equivalent ̶ International exposure & experience ̶ the ability to lead multiple teams & major projects ̶ the insight and maturity to develop enduring relation with different stakeholders ̶ The flexibility and vision to cope with change and unprecedented situation ̶ The courage and determination to act fearlessly; to ask and answer difficult questions 6

THE SEARCH FOR TOMORROW’S CFO TODAY 7 How to identify and evaluate the most talented CFO ̶ Hudson 5+1 Competency Model ®  Review the candidate’s job history and past performance  Observe the candidate in simulated and role-playing exercises  Psychometric testing for senior level appointments

SUMMARY Future CFOs are those who are able to balance traditional finance skills and caution with a fresh, more entrepreneurial approach. To fulfill the role, CFOs should: ̶ Maintain their insistence on a firm grasp of finance fundamentals ̶ Develop their ability to be visionary and think strategically ̶ Develop other soft skills, such as the ability to deal with ambiguity, develop enduring relation with different stakeholders, ask and answer difficult questions and act fearlessly, as these are increasingly in demand. Organizations hiring a CFO, should use a competence profile to create a clear recruitment template and guarantee finding the right person for the job Future-proof the organization’s finance function 8

Q&A