T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

HOW T-MOBILE MANAGES CASH FLOW WITH SAP BUSINESS PLANNING AND CONSOLIDATION

Speaker: Brian RutherfordDirector Financial Business SystemsT-Mobile

T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

Learning Points

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Learn how T-Mobile reduces time-to-completion by streamlining the forecasting process and eliminating the duplication of effort across teams.

Hear how T-Mobile improves accountability by shifting forecasting ownership from FP&A to the groups which have responsibility for driving the business.

Discover how T-Mobile has provided leadership visibility into key operational metrics and the rationale for forecast variability.

T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

Learning Points

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“Too often we measure everything and understand nothing. The three most important things you need to measure in a business are customer satisfaction, employee satisfaction, and cash flow.”

– Jack Welch

T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

T-Mobile Company Overview

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• Location: Bellevue, WA• Industry: Telecommunications• Products and Services: Wireless Communication Services• Employees: 40,000 full-time and part-time employees

as of December 31, 2013• Revenue: $24B for the year ended December 31, 2013

T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

Implementation Highlights

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Key driver inputs are owned by operational business units that have visibility into forecasting those drivers.

Input template driver-based modeling to generate balance sheet forecasts for “material and

controllable” line items such as as Accounts Receivable and Accounts Payable.

SAP RELEASE: BPC 10.0 NW

T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

THE BALANCE SHEET/CASH FLOW FORECASTING SOLUTION

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T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

Balance Sheet /Cash Flow Forecasting Challenges & Opportunities

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Historically the FP&A organization has been considered the owner of key forecasting drivers.

Desired approach to distributing the ownership of drivers required including operational owners in the process.

Time consuming, manual Excel driven process was being used to complete forecasted Balance Sheet and Cash Flow.

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T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

Solution Design Overview

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AR Forecasting

Handset Planning

BPC Balance Sheet/Cash Flow Planning Model

Forecasted Driver User Inputs

Forecasted Balance Sheet/Cash Flow Reports

Customer Planning

Vendor 1Vendor 2Vendor 3Vendor 4Vendor 5Vendor 6Vendor 7Vendor 8Vendor 9Vendor 10Vendor 11Vendor 12Vendor 13Vendor 14Vendor 15

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T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

Solution Deep Dive – Balance Sheet Forecasting

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• Handset Accounts Payable is forecasted by forecasting Purchase Volumes and Payments based on Vendor terms.

• Other Accounts Payable is forecasted by taking forecasted expenses, by expense category, and applying forecasted DPO, by expense category.

T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

Solution Deep Dive – Balance Sheet Forecasting

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• Handset related Accounts Receivable is forecasted by forecasting Gross Adds and Upgrades for programs that extend credit to customers, along with an average financed amount.

• Other Accounts Receivable uses forecasted Revenue by credit category combined with forecasted DSO drivers.

T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

Lessons Learned

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• Do not underestimate the effortrequired for design, implementation,and testing.

• Involve the right business resourcesearly in the design process.

• Due to the typical Finance/Accounting calendar, continuous management of resources is necessary.

• Align project priorities with leadership goals and expectations – strong executive sponsorship is key.

• Organizational Change Management activities to align people, process and technology are essential to success.

T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

Solution Success

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The right partner and teamwork are keys to success.

Success requires a team effort between business users who understand your company’s operations, challenges, and

objectives & a technology partner who understands the technology and how to implement it.

T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.13

Why T-Mobile Chose Akili

• Akili is an SAP Partner IT Services firm specializing in:

• Why Akili?

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2

Expertise

3

Commitment

1

Business Focus

Genuine passion for improving our business

Implementation knowledge

They always deliver

o SAP HANAo SAP ERP for Upstream Oil & Gaso Cloud Services

o SAP Business Planning & Consolidationso Analyticso Data Management

T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

THANK YOU!

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WRAP UP & QUESTIONS