Amplio Group Introductory Presentation 2019

© AmplioGroup 2018 - Confidential© AmplioGroup 2018 - Confidential
Data Driven Cash Generation, Customer Retention and Operational
Excellence

© AmplioGroup 2018 - Confidential
2
A unique perspective of the interactivity of the working capital processes:
AmplioGroup – liberators of cash:
Our focus is working capital and the generation of cash on a permanent and sustainable
basis:
•Customer cash cycle (order to cash)
•Vendor cash cycle (procure to pay)
•Inventory cash cycle (as it impacts customer and vendor aspects)

3
Cash cycle and its organizational impact
In most client organizations revenue and/or EBITA are viewed as paramount focal
points
Yet, ultimately the value a business creates manifests itself in the generation of
cash – revenue may be great and profits might also be excellent but without cash
business is not sustainable
AmplioGroup helps the various and diverse stakeholder groups within the client
recognize and accept that subpar cash performance obliterates revenue and
EBITA performance
Our approach is to breakdown cognitive barriers and to put cash, revenue and
EBITA concerns in individually understandable terms to enable a cross-functional
team effort to optimize performance
Our philosophy is simple: revenue = profit = cash
Cash
Infrastructure
Marketing
Services
Revenue
Purchases
Billings
Collections
Payments

4
We have global experience and expertise in all key industrial sectors
• While we have extensive experience in
the traditional North American, European
and Asian economic centers, we also have
considerable experience in key growth
markets such as the BRICS nations
• We understand and are intimately aware
of cultural, practical and legal
constraints/opportunities present in all key
jurisdictions
Our Practitioners
have worked on more
than 500 client
engagements and we
have extensive
experience in all of
the key industrialized
nations
• We have conducted numerous
engagements covering B2B and B2C
focused organizations
• We have extensive experience working
with clients focused on services (including
complex project based operations) and
intangible/tangible products
• We have exceptional knowledge of both
private customer and public body
(governmental) customer bases
Our expertise
encompasses all of the
major business and
industrial segments
Our geographic areas of expertise

5
Our differentiators – KPIs, metrics, scorecards and benchmarking:
AmplioGroup has developed countless working capital metrics over the
years. To the right is a chart summarizing a few of the most widely used
measurements
Our metrics enable us, and our clients, to:
• Precisely pinpoint improvement potential and source
• Identify performance trends and early warning signs
• Recognize successes to build upon
Metrics are interesting but even more relevant when compared to realistic
benchmarks
• AmplioGroup has built a comprehensive and detailed benchmarking database – the database
provides fully scalable drill-down of key metrics enabling very precise definition of
improvement opportunities
• AmplioGroup goes a step beyond traditional benchmarking: we go beyond best of class and
median performance levels to provide expert perspective based “reasonable but tough
performance expectation” targets
• What we consider “reasonable” our clients consider a quantum improvement
Unbilled to
billed
receivables
rates
Customer
billing and
receivables
evolution
WCCC –
weighted
cash
conversion
cycle
Weighted
average
dispute
timings
WAID –
weighted
average
inventory
days
WACD –
weighted
average
collection days
Prepayment
rate
Movement
and cash
generation
Rollover
rates
Precollection
rate
Weighted
average
terms
WAPD –
weighted
average
payment days
Customer
and
supplier
dispute
rates
Supplier
billing and
payables
evolution
Block
analyses
Composite
age
Premature
supply rate
Delinquency
rate

6
Quick wins are core to what we do:
Quick wins
Initiation of acceptance of
change
Best practice
Stimulated through
maximized quick wins at
outset
We view the identification and execution of quick wins during the diagnostic
phase as critical to the ultimate optimization of practices
•Most client organizations feature stakeholders who firmly believe that current
performance is as good as it gets
•Breaking the cycle of complacency requires early and tangible demonstration of
successfully realized improvement opportunities
•Our experience with countless clients in a wide range of industries and jurisdictions
provides us with a great deal of insight into quickly actionable steps that would have an
immediate benefit. Some examples of these quick wins are:
•Early identification of cash releases in critical path jurisdictions and customer groups (e.g.
Public sector)
•Identification of unused payment channels that might generate a quick collection turnaround
•Identification of current payables practices that facilitate legitimate payment deferral
•Identification of easily eliminated disputes or dispute root causes

7
Our services:
Typically, our client engagements begin with
comprehensive diagnostic reviews
Diagnostic reviews are thorough and in-depth assessments
of client process, performance and strategy and often result
in quick wins
Implementation services convert review
recommendations into specific remedial actions
Our practitioners work directly with the client to push
cultural, process and practical change as needed and to drive
substantial cash generation
Specialized engagements range from outsourcing of
key functions through interim management services
We are able to tailor services to address specific client
needs within the working capital arena

8
The Diagnostic Review:
Is a comprehensive
process evaluation and
performance
benchmarking exercise
Is conducted through:
•interviews with key
stakeholders
•observation, data
analyses and mining
•benchmarking of drilled
down operational data
•evaluation of processes
and procedures
Produces confidential
key employee
assessments that
identifies strengths,
weaknesses and
opportunities for
improvement
Produces thorough
delineations of
opportunities, quantified
in terms of steps and
cash potential and a plan
for achievement of
objectives
Is performed
unobtrusively and rapidly
•kick-off to report
presentation typically
within 6 to 8 weeks
(based upon single site
review)
Billed as a per site fixed
fee
•Based on estimated
man day requirements
EVALUATION
OF PROCESSES,
PROCEDURES
AND STRATEGY
DRILLED-DOWN
BENCHMARKING
REVIEW REPORT –
DETAILED ACTION PLAN
TO GENERATE CASH
OBSERVATION,
DATA ANALYSES
AND MINING
INTERVIEWS

9
Review dynamics
The Steering Committee facilitates engagement
with stakeholder personnel
The Engagement Director manages the onsite and
offsite practitioner teams and the onsite team
engages with the stakeholder personnel
The Engagement Director and the Steering
Committee meet weekly to discuss progress and
issues.
Direct relationship and ongoing communication
with Engagement Director and Steering Committee
Executive Sponsor
AmplioGroup
Engagement
Director
Offsite
Practitioners
Onsite
Practitioners
Project Steering
Committee
Client Personnel

10
What does a review involve?
The review is the foundation upon which optimization is built
• Fundamental change in beliefs, outlooks and perception requires thorough
understanding and mapping of the operation
• Precise data points that validate performance expectations must be
generated to ensure acceptance
• Development of quick wins requires active and collaborative engagement
with stakeholders
• Interviews and observation are intended to provide initial mentoring and
motivation to stakeholders
• Development of stakeholder confidence and trust requires highly qualified,
experienced and culturally expert practitioners
Development
of stakeholder
support
Identification
of quick wins
Interviews of
key process
stakeholders
Gathering of
financial and
process
data
Assessment of
procedural
documentation
Site specific
external
research
Practical
observation
Calculation of
specific metrics
from gathered
data
Benchmarking
Assessment
of all
gathered
information
and metrics
Creation of
report and
improvement
plan
Commencement
of stakeholder
acceptance of
improvement
potential

11
Which functions are engaged during a review?
•Building consensus and triggering expanded
collaboration and communication drives the
requirement for widespread interaction during the
review phase
•Our approach is to gather dissonant viewpoints to
identify and thus eliminate bottlenecks that impede
productivity
Many functions and
individuals contribute to
receivables and payables
performance
•Our goal is to fully understand what happens and
why so that we can provide specific and tangible
plans for achieving best practice performance levels
We interview using subtle
techniques and we
observe to witness any
dysfunctions first hand
Stakeholder
participants
Finance
Credit control
Collections
Billings
Sales admin
SalesMarketing
IT
Payables
Procurement
HR

12
Getting the facts that underline real performance:
Procedures and practices seldom
fully align
• Procedures and practices diverge for many reasons: some good and some
bad
• Divergent practices can result from procedures that do not evolve or
address the reality of operations
• In other cases, inadequate training or supervision can lead to divergences
• Almost always, stakeholders will describe their practices to closely mimic
procedures
• Our experience and tenacity permits us to go beyond initial
representations to diplomatically extract what truly happens
• We dig deep but in a non-confrontational manner – we help stakeholders
channel their experience and knowledge upwards in the organization
Procedure
What is
supposed to
happen
Practice
What
actually
happens

13
The Diagnostic Review Report
The review report is a
hard-hitting,direct,
quantified assessment
of current and
projected performance,
practices and
processes
•Opportunities for performance improvement are
clearly identified along with key stakeholders
capable of owning the improvement process
•Performance metrics are presented graphically
with forward trending analyses and detailed
benchmarked comparisons
•“Reasonable performance expectation” targets are
specified – RPEs area critical element of the
definition of improvement opportunities and
combine benchmarked performance and the
extensively researched opinions of AmplioGroup’s
most senior project director staff given the
cultural, environmental and specific potential and
constraints of the reviewed operation
•A clearly defined action plan for the achievement
of optimized cash generation is provided. The plan
is broken down into specific tasks and action
takers with performance milestones spelled out
•Where appropriate and required, the need for
external assistance to achieve the performance
objectives is indicated and defined
The report is an actionable plan that
drives improvement

14
Implementation and performance optimization services:
For clients with substantial cash generation opportunities requiring third-party assistance
• engagement is constructed to achieve recommendations flowing from the operational review and can include:
• education and professional development programs
• mentoring and direct process involvement
• evolution of processes, procedures and documentation
• implementation of new tools, metrics and reporting
• reorganization of specific functional groups
• engagement is hands-on in nature and designed to produce permanent, sustained improvement
• timeframe is dependent on scale and nature of issues to address
1
%oftargetachieved
2 3 4 5 6 7 8 9 10 11 12
Month
100
50
0

15
Implementation and performance optimization services:
Engagement specifics
• fixed fees per estimated man day are reduced and performance
related variable fee is added
• exit options are provided to give Client “comfort” and “control”
• prior to commencement AmplioGroup commits to achievement of a
monthly cash generation target
• implementation duration ranges from 12 months to 24 months,
depending on the size and complexity of the Client’s business
• typically, Clients can expect “on or ahead of target” performance
producing a ROI of 250%, or greater
ROI
300
270
240
210
180
150
120
90
60
30
0
%
250%
0
20
40
80
100 120
140
180
200
220
%
Target
achieved
ROI = 250%
15

16
Education programs are intrinsic to the implementation process:
AmplioGroup provides extensive education
programs including:
• Progressive comprehensive “Best Practices in Cash”
program which features:
• “Cash College” – an introductory course on the basics
of effective working capital cash flow
• Best Practice Collections
• Cash Positive Purchasing
• Supplier Relationship Management
• Cash Optimized Selling
• Working capital improvement workshops
• Best practice functional induction and process training
• Customer specific working capital mini-camps
Cash Positive
PurchasingSupplier
Relationship
Management
Cash Optimized
Selling
Cash College
Best Practice
Collections
Progressive
education

17
9,409,896 €
30,855,093 €
55,579,409 €
-5,000,000 €
5,000,000 €
15,000,000 €
25,000,000 €
35,000,000 €
45,000,000 €
55,000,000 €
65,000,000 €
Cash GenerationA/R Cash Generation
A/P Cash Generation
Combined Cash
Generation
47,049 €
1,099,475 €
3,438,308 €
0 €
500,000 €
1,000,000 €
1,500,000 €
2,000,000 €
2,500,000 €
3,000,000 €
3,500,000 €
4,000,000 €
Interest benefits from Cash Generation
Implementation – an example:
Client: €350M European Technology Services & Solutions
Engagement duration: 22 months – A/R and A/P focus
 Engagement specifics:
 Phase I Diagnostic Review (2 months)
 Phase II Implementation (12 months)
 Phase III Transition phase (8 months)
 Implementation action items:
 Comprehensive cash and sub process education program – over 1000
employees put through 5 stage cash awareness and functional skills
training
 Implementation of new processes and controls including
• Precollection
• Formalized dispute handling
• Bids and proposals go/no go process
• Centralization of back office operations
• Resource rationalization and refocus
 Implementation of comprehensive reporting, metrics and scorecards
 Results:
 Cash Generation of €55.6 Million
 Interest savings and reserves reduction of €7.5 Million
 ROI of 383%
 Vastly improved internal controls, reporting, and data utilization
 Early visibility of sales pipeline
 Cash culture established
 Debt erased, and short-term needs funded through positive working
capital

18
Client: $600M US Based Technology
Engagement duration: 25 months – A/R and A/P focus
employees put through 5 stage cash awareness and functional skills training
• Precollection
• Formalized dispute handling
• Payables management practices
• Bids and proposals go/no go process
• Resource rationalization and refocus
 Results:
 Cash Generation of $65.4Million
 Interest savings and reserves reduction of $9.2Million
 ROI of 360%
 Net contributor to corporate treasury
 Business unit outlook: “seek advance payment” and “cash=customer
satisfaction =revenue opportunities”
 Order-to-collection group outlook:“Every customer is contacted
systematically and proactively”
 Purchasing group: “Suppliers need to provide us with better and better
terms, conditions and prices”
 Payables group: “We safeguard the treasury, nothing gets by us”
$40,266,225
$59,539,557
$65,424,713
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
Cash Generation
A/R Cash Generation
A/P Cash Generation
Combined Cash Generation
$187,238
$2,957,491
$6,609,456
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Interest benefits from Cash Generation

19
Client: $1 Billion European Medical Equipment & Services Company
Engagement duration: 24 months – A/R focus
employees put through multi-stage cash awareness and functional skills
training
• Considerable reduction in crediting/rebilling
• Introduced progressive billing and collection for large item installation
• Automated disputes register
• Proactive receivables collection efforts
 Results:
 Cash Generation of $207.7 Million
 Interest savings and reserves reduction of $30.1 Million
 ROI of 307%
 Company became lender to corporate treasury
 Considerable reduction in paperwork brought about by more automated and
streamlined processes
 Invoice processing was expedited and re-billing minimized
 Regular customer contact for payment
 A renewed pride in safeguarding corporate treasury
$(7,403,959)
$116,506,470
$207,676,677
$(50,000,000)
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
Cash Generation
$(33,626)
$2,221,263
$12,011,527
$(2,000,000)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Interest Savings

20
Specialized engagements – 3 examples:
Client – Global ICT Services Firm (North
American operations)
 Emplaced Senior Project Director as Director of
Procure-to-Pay operations and functions for
US$90 Million annual revenue subsidiary
Engagement duration: 18 months
Engagement scope:
 Reengineer existing procurement and payables
functions to reduce costs, right size headcount and
augment effectiveness
 Run day-to-day procure-to-pay operations
 Implementation of balanced scorecards and best
practice reporting
 Reassert control over external collaborator
community
 Execute segmented RFPs to improve performance
 Active personnel management (hiring, firing and
development)
Results:
 Year on year savings of 23% on total spend
(combination of spend avoidance and cost
reductions)
 Secured US$800,000 in rebates and vendor
penalties
 Total bottom line benefit of US$2.7 Million
Interim Procure-to-Pay managementOutsourced Collections Function
Client – EuropeanTechnology and Projects
Firm (French operations)
 Emplaced Senior Project Director as Director of
Order-to-Collect operations and functions for
€300 Million annual revenue subsidiary
Engagement duration: 24 months
Engagement scope:
 Reengineer existing billings, collections and cash
allocation functions to improve performance,
generate cash and right-size workforce
 Run day-to-day order-to-collect operations
 Implementation of balanced scorecards and best
practice metrics/reporting
 Compel key internal stakeholder groups
(commercial and service teams) to contribute to
cash activities
 Active personnel management (hiring, firing and
development)
Results:
 Generation of €45 Million in cash flow
improvement
 Reduced reserves by €4 Million
 Succeeded in creating a culture of cash awareness
and participation throughout the organization
Interim Order-to-Collect management
Client – Pan-European Information Services
Provider (European Operations)
 Complete outsourcing of collection activities for
£130 Million annual revenue operation
Engagement duration: 5 years
Engagement scope:
 Replace existing collection function – some
adoption of existing staff combined with dedication
of AmplioGroup personnel to function
 Refocus of activities to include precollection and
customer rehabilitation activities
 Implementation of new metrics, reporting and
balanced scorecards
 Reduction in collection timeframes, disputes and
unbilled/unbillable revenues
Results:
 Reduction in disputed invoices from 16% of
receivables to 2%
 Generation of £16 Million in cash flow
improvements (accelerated collections and reduced
reserves)
 Greatly augmented customer satisfaction levels and
retention – churn greatly reduced

21
Some of our clients:

22
Steps in our engagement process:
AmplioGroup introductory presentation (today)
Formal proposal presentation
Client request for formal proposal
Issuance of Client purchase order confirming acceptance of AmplioGroup’s proposal.
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