Graduate Finance AssociationCorporate Finance

September 27, 2006

Corporate Finance• Agenda

– Internship Panel Introductions– Presentation Part 1– Internship Panel Q&A– Presentation Part 2– Q&A– Networking – Doc’s Place

• Leads – Kevin Lowe: Dow Chemical (klowe@andrew.cmu.edu)– Ariel Rubin: Fischer Scientific (arielr@andrew.cmu.edu)– Omer Chaudri: Texas Instruments (ochaudhr@andrew.cmu.edu)– Andrew Sutherland: Mine Safety Appliances (asutherl@andrew.cmu.edu)

– Josh Beck: Dow Chemical (gbeck@andrew.cmu.edu)– Joseph Hurley: Air Products (josephhu@andrew.cmu.edu)– Ravi Madasu: Fischer Scientific (rmadasu@cmu.edu)– Jaime Juarez: Union Pacific (jjuarez@andrew.cmu.edu)– Dan Root: Price Waterhouse Coopers (droot1@andrew.cmu.edu)– Pantea Izadseta: IBM (izadseta@cmu.edu)– Jill Yellock: Federal Reserve Bank New York (jyellock@andrew.cmu.edu)– Raju Gupta: Amazon.com (raju@cmu.edu)

Problem: “Corporate finance” means many different things

Definition– “Corporate finance” is an umbrella term for finance-related

positions that exist within non-financial services industry businesses

– Corporate finance professionals evaluate and manage the money associated with their company’s businesses

What is Corporate Finance?

Cash Management And Capital Allocation!!

What is Corporate Finance?

Proctor & Gamble

• Consumer goods

• Founded 1837

• 300 products/160 countries

• P/E: 23.9

• 138,000 employees

• $68.2 B/year

• Marketing driven

That’s still pretty vague!! Firm and Industry are Very Important

Genentech

• Healthcare - Biotech

• Founded 1976

• ~15 products

• P/E: 87

• 9,500 employees

• $7.8 B/year

• Bio-science driven

Consider this …

Very Different Needs!!

Typical Structure

Corporate

Finance

R&D

Engineering

MarketingOperations

Production

HR

Corporate Finance Touches them All!!

Typical Responsibilities

Business Finance

•Ops Analysis/Financial Ops

•Strategic Planning

•Capital Budgeting

Business Development

•M&A

•Project Feasibility

•Joint Ventures/Licensing

Treasury

•Capital Structure

•Cash Management

•Risk Hedging

Audit/Controller

•Internal Audit

•SOX

•Performance Measurement

Typical Skills and Attributes

• Communication• Leadership and Influence• Long-term focus• Quantitative analysis/Financial ability• Teamwork and collaboration• Deal with different functions

Typical MBA Roles

Treasury

Corporate financial planning

Raising funds and cash management

Acquiring and disposing of assets

Identifying and hedging risk

Customer credit analysis

Strategic Planning

Long-term strategy formulation and evaluation

Competitive analysis

Ensuring that business units adhere to strategy going forward

Determining financing needsAcquisitions and asset sales

Implementing financial plansFinancial reporting

Capital budgeting and prioritizationCompetitive analysis and strategyFinancial planning and projection

(long and near term)

Corporate

Business Unit

• Culture, Culture, Culture!!

• Job function

• Structure within organization

The One Thing You Can Count On …

Every Company Is Different

Internship Panel

Kevin Lowe: Dow Chemical

Ariel Rubin: Fischer Scientific

Omer Chaudri: Texas Instruments

Andrew Sutherland: Mine Safety Appliances

Pros– Heavily recruited– Mostly stable hours– Strategic thinking– Drive company goals– Senior people– Variety– Build/run a business– Great exit options

Pros and Cons

Cons– Slower monetary

advancement

– Can be mundane

– Process Driven

– Company/culture dependent

Undergrad Work

Experience

GMAT Scholarships, etc.

Leadership/Teamwork

TepperGPA

Primary Criteria

Secondary Criteria

What Companies Look For

Skills/Knowledge Networking

Career Switching• Good chance in Corporate Finance

• Good spring board to other careers

• Highlight cross-discipline skills

– Analytical ability

– Leadership

– Results oriented

– Team work

• Focus on companies looking for your background

What Should You Focus On?• Find out the details!!

• Network– Make recruiter put a face to the name– Talk to everyone – Students/Alum/COC/Recruiters– Informational Interviews– Be aggressive – not annoying

• Know the position and related finance topics– Company– Industry

• Behavioral Interview Skill– It’s almost assumed the skills are there

• Solid Resume

Thank You

Q&A

Networking & Social Event @ Doc’s Place

IBM - Organization• IBM Brands or Business Segments

– IBM Global Services (IGS)– IBM Global Finance (IGF)– Systems Technology Group (STG)– Software Groups (SWG)– Personal Systems Group (PSG) – Sold to Lenovo

• IBM Global Services: Lines of business

– Business Consulting Services

– Integrated Technology Services

– Strategic Outsourcing Services

– Application Management Services

– e-business Hosting Services

• WW Group vs. Geographic groups

– Americas: North, South, Central

– EMEA: Europe, Middle East, Africa

– AP: Asia Pacific

IBM - Culture• Collegial atmosphere, helpful colleagues• Remnants of old IBM culture• Truly Global company• Stability in Americas - can cruise for next 30 years, especially in NY• Flexible Hours

– Work from Home– Flex Friday’s

• New York vs. Other Locations– New York - Armonk, Somers: people tend to work more (55 - 60 hours)

• Former Wall-street people• Proximity to Corporate Office• Late nights during quarterly close

– Satellite Offices - Raleigh, Austin: normal hours (40 – 45 hours)

• Limited Interaction with Senior Management• Few networking events for Interns

IBM - Roles• Typical Roles:

– Financial Analyst (FA) for a brand at a Geography

– Informal Rotational Program

• Line of Business in a Geography WW Consolidation Finance Role Pricing Analyst Treasury

• Duration: 12 -18 months

• Career Path:

– Financial Analyst Sr. Financial Analyst Line manager for GEO/WW Consolidation Manager for GEO/WW ???

• Expected to move into new roles every 12-18 months

Fisher Scientific - OrganizationProvider of products and services to the scientific community(65% consumables, 35% equipment, apparatus, etc.)

Fortune 500, $5.5B in annual revenues, 17,500 employees worldwide

Matrix organization:Distribution Units: Research, Safety, HealthcareManufacturing UnitsFunctional Groups: Finance, Sales, Marketing, Sourcing etc.

Aggressive grows through M&A activity and organic growth

Strong Tepper presence in the Finance organization

Fisher Scientific - CultureAggressive, data driven, meritocracy.

Finance leads the company, unlimited opportunities for people who deliver results.

Very formal in Hampton, NH

Fisher Scientific - RolesMBA Rotational program – three one year rotations, high visibility to the executives, including the CEO, COO, Vice Chairman

Finance is the center of the company:Divisional Finance: Research Finance, Safety Finance, Healthcare Finance -Business analysis, customer profitability, deal structuring, division control and more – in business units.

Supply Chain Finance – supply chain management and profitability improvement – in business units.

Treasury – Hampton, NH

Corporate Development – new markets development, M&A – Hampton, NH