Presentation by Theo Slaats, partner at Deloitte at PROS Pricing Seminar April 7, 2011 at Amsterdam Hilton

1. Pricing and Profitability Management
The CFO’s Important Role
Amsterdam, 7 April 2011

2. Why are we here? What’s this really all about?
• Increased pressure on margins
• Need to more effectively manage risk
• Speed and consequence of adverse events
• Poor information
• Silos and fragmentation
An imperative to improve price management and profitability
© 2011 Deloitte The Netherlands

3. CFO Priorities and Pricing

4. You might be wondering ….
• How does pricing align with CFO priorities?
• What are CFOs top concerns?
• How can pricing excellence help?
• If you are trying to move a pricing project forward how do
you enlist support from CFO?
• How can you help your CFO use pricing to succeed in their
profitability imperative?
• How do you help CFO’s build a bridge between finance
and sales when it comes to pricing?
© 2011 Deloitte The Netherlands

5. CFO Priorities
Company Challenges
Improving/maintaining margins
Framing and/or adapting strategy
Prioritizing investments
Addressing government policy and…
Pursuing or responding to M&A…
Raising/maintaining customer demand Q4
Talent (availability and cost Q3
Managing operations and supply chain…
Q2
Projecting and reporting results
Sourcing capital (availability and cost)
Managing assets and working capital
Morale and staff reductions
Other
0% 10% 20% 30% 40% 50% 60% 70%
Analytics is a critical focus in achieving these goals
Source: CFO Signals Survey Q4 2010.
© 2011 Deloitte The Netherlands

6. CFO Priorities
Company Strategic Focus
Revenue growth/preservation
Direct cost reduction
overhead cost reduction
capability development Q4
Financing and liquidity Q3
Q2
Asset efficiency
Other
0% 10% 20% 30% 40% 50%
Analytics is a critical focus in achieving these goals
Source: CFO Signals Survey Q4 2010.
© 2011 Deloitte The Netherlands

7. The Four Faces of the CFO
Stimulate behaviors Provide financial
across the leadership in
organization to determining strategic
achieve strategic Leading Edge business direction
and financial and align financial
objectives strategies
Threshold
Performance
Finance
CFO
Function
Focus
Triangle
Balance capabilities,
costs and service
Protect and
levels to fulfill the
preserve the
finance
assets of the
organization’s
organization
responsibilities
© 2011 Deloitte The Netherlands

8. CFOs can overcome silos
… if you can get their attention
• Understanding the roles of a CFO
• Why should CFOs care about Pricing?
• How do you get pricing on overloaded plates?
• “Show me the money!”
© 2011 Deloitte The Netherlands

9. CFOs and Finance as Business Catalysts
• Help craft executable strategies that drive shareholder
value
• Convert abstract ideas, such as “shareholder value”, into
tangible goals that managers and employees can
understand and act on
• Embed finance capabilities and expertise throughout the
company
• Foster a disciplined, fact-based approach to decision
making
• Provide a steady beacon for change and transformation
Creating value, not just counting it!
© 2011 Deloitte The Netherlands

10. A CFOs perspective on pricing initiatives
• The components of pricing should be viewed as related
functions, with common measures, best approached in a
integrated manner
• Common information, processes, and systems should be
leveraged
• CFOs are happy to help overcome the inertia of “silos”—
organizational, functional, process and technology silos.
© 2011 Deloitte The Netherlands

11. Finance has the ability to deliver value in
analytics enabled price management
Finance-Supported Analytics
Sales &
Procurement Business Unit Supply Chain IT
Marketing
• Spend • Margin • Revenue • Sales, • Technology
analysis erosion leakage Finance, investment
• Vendor analysis • Revenue Supply Chain planning and
management • Pricing driver linked prioritization
optimization analytics • Demand/price forecasting
• Service level elasticity • New product
and customer • Cross-sell/up- introduction
profitability sell profitability
• Customer and
alignment
retention and dollarization
churn effect
© 2011 Deloitte The Netherlands

12. Contact info
Theo Slaats
Partner
Deloitte Consulting B.V.
tslaats@deloitte.nl
+ 31 - 6 - 5267 2525
© 2011 Deloitte The Netherlands

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© 2011 Deloitte The Netherlands