The Codex of Business Writing Software for Real-World Solutions 2.pptx
PAC Webinar - Kinross Strikes Gold
1. KINROSS STRIKES GOLD WITH
ADVANCED REPORTING
Presenters:
Justin McNeely - Account Executive, Performance Analytics Corporation
Sharon Chadwick - Manager, Kinross Advanced Reporting System
Susan Harris, Director of Consolidations & Kinross Advanced Reporting System
2. Webinar Logistics
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3. Canadian consulting firm focused exclusively on SAP Enterprise Performance
Management solutions
Implementing SAP BusinessObjects Planning and Consolidation (BPC) since
2003
Currently support the majority of Canadian customers using BPC
Consultants located across Canada
Consultants have Finance background: CA, CGA, CMA, CPA
Services include: Evaluation, Design, Implementation, Project Management,
Training, and Support
7. What the Industry Analysts are
saying…
Gartner SAP is a Market Leader and has the strongest vision
IDC SAP #1 in Performance Management Tools
Forrester SAP has the strongest offering in the Business
Performance Solutions market
Microsoft – SAP press release November 2009
Microsoft Corporation supports the SAP® BusinessObjects™ Planning and
Consolidation application, version for the Microsoft platform, as a preferred
solution for customers running their business applications on the Microsoft
platform.
8. Kinross Gold Corporation
Corporate profile
■ Canadian based gold mining company with mines & projects in the
USA, Brazil, Chile, Ecuador, Ghana, Mauritania & Russia
■ Employees: Approximately 7,000 worldwide
■ Strategic focus is to maximize net asset value & cash flow per share
2010 performance & highlights
■ Production: 2.3 million gold equivalent ounces
■ Revenue: USD 3 billion
■ Acquired Red Back Mining
■ Increased revenue, cash flow & earnings
■ Advanced growth projects
■ Expanded gold reserves & resources
9. Kinross Advanced Reporting System
KARS Implementation
■ External auditors, KPMG, assisted with selection process:
■ Enterprise wide solution to meet both financial and operational
requirements
■ Single, reliable and centralized source of information that everyone in the
company could access
■ Highly intuitive and provide familiar interfaces, including Microsoft Office
■ Scalable to support the company’s growth
■ Implementation partner: Performance Analytics Corporation
■ Two phases
■ External financial reporting
■ Internal operational reporting
10. Kinross Advanced Reporting System
KARS Project Team & Consulting
■ Project team
■ Project managers - 1 x PAC, 2 x Kinross - Finance & IT
■ Consultants - 2 x PAC
■ KARS team - 4 x Kinross Finance, including system administrator
■ Key business users across company
■ Consulting
■ Application design
■ Fully calculated cash flow
■ Elimination of investments
■ Gold equivalent ratio by month, quarter & YTD
■ Imperial to metric conversion for USA sites
■ Reports, input schedules & custom journal report
■ Interfaces
11. Kinross Advanced Reporting System
KARS Project Plan
19-Jun-08 31-Mar-09
Overview
Scrub Data
Consolidation
Adjustments
Parallel sub-consolidations
KARS sub-consolidations
Project Coordination
JUN 1 JUL 1 AUG 1 SEP 1 OCT 1 NOV 1 DEC 1 JAN 1 FEB 1 MAR 1 APR 1
12. Kinross Advanced Reporting System
BPC Applications
DailyRate: Daily currency rates, metal & oil prices.
Rate: End of month & monthly average for Fx rates & prices.
Finance: Consolidation of financial & operational data.
Ownership: Entity ownership data.
Operations: Operational/production data.
13. Kinross Advanced Reporting System
BPC Applications – continued …
Dimensions (18)
Shared e.g. Category
Unique e.g. Account
Alternate hierarchies e.g. Entity
Legal, Management, Geographic and Segment.
DailyRate Rate Finance Ownership Operations
14. Kinross Advanced Reporting System
KARS Training & Documentation
■ Developed
■ 1½ day training course
■ User guides for Operations & Finance
■ ½ day report writing course post ‘go-live’
■ On-site training
■ Operating mine sites
■ Regional offices
15. Kinross Advanced Reporting System
KARS Milestones
■ Monthly reporting implemented April 2009
■ “Go live” for external reporting – Q2 2009
■ Financial statement preparation for Q2, Q3 & Q4 based on KARS
data
■ Legacy/Excel consolidation run in parallel for Q2, Q3 & Q4 to verify
KARS data – discontinued Q1 2010
KARS
16. Kinross Advanced Reporting System
“Then” quarterly consolidation process
■ First collected at a regional level
■ Highly summarized financial data
■ Submitted to headquarters 10 days after financial
reporting cut-off date
■ Headquarters took a week to generate consolidated
P&L & balance sheet
■ Another week to issue consolidated cash flow report
■ Request for more detail placed additional burden on
regions and/or local business units
17. Kinross Advanced Reporting System
“Now” monthly consolidation process
■ WD3
■ AP & AR closed 8am
■ Ounces produced input & transferred to Finance
■ WD6
■ Source GL (JD Edwards) closed 8am & data loaded into BPC
■ Operations data transferred to Finance at 3pm
■ WD8
■ Balance sheet continuities completed – cash flow completed
■ Supplementary input schedules completed
■ All entities submitted by COB
■ WD9
■ Operations results issued to SLT
■ Regional signoff – KARS locked for the period
■ WD10
■ Consolidated results issued to Executive Team
18. Kinross Advanced Reporting System
Results
■ Rapid external financial reporting
■ First time in company’s history that audited quarterly financial
statements were released at the same time as publicly announced
quarterly financial results
■ Reduced reporting cycle timeline
■ 50% faster for completing consolidated balance sheet, profit & loss
and cash flow statements
■ Business users can focus more time on analytics & operational
improvements
■ Consolidated ‘monthly’ internal reporting
■ Delivered on budget & on time
19. Kinross Advanced Reporting System
KARS Report stacks
Financial statements Operational metrics
■ Profit & loss ■ Production & costs
■ Balance sheet ■ Production & sales summary
■ Cash flow ■ Site statistics
■ Intercompany matching ■ Production
■ Note disclosures ■ Costs by element
■ MD&A ■ Fuel costs
■ G&A ■ Corporate responsibility reporting e.g.
consumption of carbon-emitting
substances
■ Monthly commentary
■ Quarterly site financial reporting packs
20. Business Benefits
Reduced cycle times and associated costs
Improve accuracy and alignment with
strategic goals
Increase governance, control and
accountability
Spend more time analyzing and modeling
the business and less time gathering data