CREDIT-SUISSE-HOTL valuation framework.pdf

1、These materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with Credit Suisse AG or its Affiliates(hereafter“Credit Suisse”).PRELIMINARY|SUBJECT TO FURTHER REVIEW AND EVALUATION ConfidentialConfidential CFOCFO :(HOLT framework(HOLT f

2、ramework )November 2014 Confidential Unsaved Document/11/6/2014/13:04 1 1.1.Introduction:Evolving roles of Introduction:Evolving roles of CFOCFO 2.2.HOTL HOTL valuation frameworkvaluation framework 2-1.Overview 2-2.Application 3 3.Shareholder activismShareholder activism AgendaAgenda Confidential Un

3、saved Document/11/6/2014/13:04 2 1.1.IntroductionIntroduction Confidential Unsaved Document/11/6/2014/13:04 3 In recent years,the role of the CFO has evolved significantly.Traditionally being viewed as a financial gatekeeper,the role of the CFO has expanded and evolved to a strategic partner and adv

4、isor to the CEO.In fact,in a report released by McKinsey,88 percent of 164 CFOs surveyed reported that CEOs expect them to be more active participants in shaping the strategy of their organizations.Half of them also indicated that CEOs counted on them to challenge the companys strategy According to

5、one source,The CFO of tomorrow should be a big-picture thinker,rather than detail-oriented,outspoken rather than reserved,prefer to delegate rather than be hands-on,emphasize what gets done rather than how things are done,and make collaborative rather than unilateral decisions.The CFO must serve as

6、the financial authority in the organization,ensuring the integrity of fiscal data and modeling transparency and accountability.The CFO is as much a part of governance and oversight as the Chief Executive Officer(CEO),playing a fundamental role in the development and critique of strategic choices.The

7、 CFO is now expected to be a key player in stakeholder education and communication and is clearly seen as a leader and team builder who sets the finance agenda for the organization,supports the CEO directly and provides timely advice to the board of directors.The uneven pace of recovery worldwide ha

8、s made it more challenging for many companies.CFOs are increasingly playing a more critical role in shaping their companys strategies today,especially in light of the highly uncertain macroeconomic environments,where managing financial volatilities is becoming a centerpiece for many companies strate

9、gies The duties of a modern CFO now straddle the traditional areas of financial stewardship and the more progressive areas of strategic and business leadership with direct responsibility and oversight of operations(which often includes procurement)expanding exponentially.This significant role-based

10、transformation,which is well underway,is best-evidenced by the“CEO-in-Waiting”status that many CFOs now hold.Additionally,many CFOs have made the realization that an operating environment that values cash,profit margins,and risk mitigation is one that plays to the primary skills and capabilities of

11、a procurement organization,and become increasingly involved(directly via oversight or indirectly through improved collaboration)with the procurement function according to a recent research report that looks at the CFOs relationship with procurement Evolving role of CFOEvolving role of CFO Confidenti

12、al Unsaved Document/11/6/2014/13:04 4 Active role in the development and critique of strategies:more progressive areas of strategic and business leadership with direct responsibility and oversight of operations Active dialogue with various stakeholders particularly existing and potential investors T

13、odays Todays main topic:main topic:HOLT framework:To understand the major institutional investors valuation methodology Credit Suisses HOLT framework helps CFO with their strategic decision-making process Shareholder activism:To proactively prepare for potential shareholder activism Evolving role of

14、 CFOEvolving role of CFO Confidential Unsaved Document/11/6/2014/13:04 Credit Suisses HOLT framework helps CFO with their Credit Suisses HOLT framework helps CFO with their strategic decisionstrategic decision-making processmaking process HOLT offeringHOLT offering Internal management plan evaluatio

15、n Sensitivity analysis around key value drivers Capital allocation benchmarking analysis Capital allocation strategy assessment Equity markets perspective on performance and valuation Benchmarking analysis Quarterly industry reviews Support in investor communications HOLT-centric non-deal road shows

16、 ObjectivesObjectives Quantify valuation gap between management projections and market expectations and identify drivers to close that gap Compare management strategy to HOLT assessment of divisional performance and drivers of value Quantify impact of capital allocation alternatives on share price Help company see itself through the lens of investors Quantify operational expectations embedded in stock price Proactively identify relevant themes for clients and generate transaction ideas Position