TRANSPARENT LIQUIDITY ANALYSIS WITH SAP...TRANSPARENT LIQUIDITYANALYSIS WITH SAP AGENDA TRANSPARENT LIQUIDITY ANALYSIS WITH SAP 1.0 Company Profile OAO GAZPROM 2.0 Introduction Gazprom

GAZPROM GERMANIA GMBH TRANSPARENT LIQUIDITY ANALYSIS WITH SAP

2015-NOV-25 STRUCTURED FINANCE, STUTTGART

TRANSPARENT LIQUIDITY ANALYSIS WITH SAP

AGENDATRANSPARENT LIQUIDITY ANALYSIS WITH SAP

1.0 Company Profile OAO GAZPROM

2.0 Introduction Gazprom Germania Group

3 0 Initial Project Situation3.0 Initial Project Situation

4.0 Project Goals and Set Up

5.0 Project Results and Outlook

6.0 Discussion

2015-NOV-25 STRUCTURED FINANCE, STUTTGART2

1 OAO GAZPROM

GAZPROM FACTS1 OAO GAZPROM

F d ti 1993— Foundation: 1993

— Based in Moscow

Business lines: geological exploration— Business lines: geological exploration, production, transportation and sales of gas, liquefied natural gas (LNG), oil and electric power

— Pipelines: 162,000 km

— Staff: 400,000

— World's largest producer and exporter of gas


1 OAO GAZPROM

MAIN BUSINESS LINE GAS PRODUCTION1 OAO GAZPROM

— RESULT:

GAZPROM, with a market share of15% of global and 77% of Russian15% of global and 77% of Russianproduction, is the world's largest naturalgas producer.

647

509

670

513

655

525

Production Russia total in bn m³ Production GAZPROM Group in bn m³ * Data for 2012: Prognosis


1 OAO GAZPROM1 OAO GAZPROM

GAZPROM IN EUROPE

GAZPROM exports 2011 in m3 GAZPROM exports 2012 in m3









6.0 Discussion


2 1 BRIEF INTRODUCTION GAZPROM GERMANIA

WHO WE ARE2.1 BRIEF INTRODUCTION GAZPROM GERMANIA

— Subsidiary of the world’s largest gas company, Moscow-based GAZPROM

— Owned by Russian company Gazprom export, which is headquartered in St Petersburg

— Year of establishment: 1990

— International group of companies that operates worldwide with around 40 subsidiaries in more than 20 countries in Europe and Asia

— Management: Vyacheslav Krupenkov (Senior Managing Director) and Andrey Biryulin(Managing Director)

— Employees: around 1,200, of which 200 work in Berlin


2 1 BRIEF INTRODUCTION GAZPROM GERMANIA

BUSINESS AREAS2.1 BRIEF INTRODUCTION GAZPROM GERMANIA

NATURAL GAS TRADING NATURAL GAS STORAGE

NATURALGAS FORTRANSPORTTRANSPORT


2 2 BUSINESS ACTIVITIES2.2 BUSINESS ACTIVITIES

NATURAL GAS STORAGE

BERGERMEER

ETZEL

KATHARINAWorking gas: 4.1 billion cubic metresTYPE: PORE STORAGE

Working gas: 1 billion cubic metresTYPE: CAVERN STORAGE

SALTFLEETBY

KATHARINA

DAMBOŘICE

Working gas: 0.75 billion cubic metres

Working gas: 0.46 billion cubic metresTYPE: PORE STORAGE

Working gas: 0.6 billion cubic metresTYPE: CAVERN STORAGE

JEMGUM

HAIDACH I/IITYPE: PORE STORAGE


Working gas: 1.2-2.6 billion cubic metresTYPE: PORE STORAGE

REHDEN

BANATSKI DVOR TARSUS

TYPE: CAVERN STORAGE

Working gas: 4.4 billion cubic metres

Working gas: 0.45 billion cubic metresTYPE: PORE STORAGE


(planning phase)Working gas: 4.4 billion cubic metresTYPE: PORE STORAGE

9 2015-NOV-25 STRUCTURED FINANCE, STUTTGART


NATURAL GAS FORTRANSPORT

GAZPROM G i i itt d t— GAZPROM Germania is committed to developing an infrastructure with which to supply ships, trucks, and passenger cars with compressed and liquefied natural gas.

— GAZPROM Germania plans to be operating at least 44 natural gas filling stations in Germany and around 30 in Poland, the Czech Republic, and Slovakia by the end of 2016and Slovakia by the end of 2016.

— Together with other GAZPROM Group companies, GAZPROM Germania is taking initial steps towards developing the infrastructure p p grequired to use LNG in the maritime sector.



SUBSIDIARIES ANDINVESTEES


2 3 GAZPROM GERMANIA GMBH2.3 GAZPROM GERMANIA GMBH

2015 FIRST-HALF FIGURES

REVENUE NATURAL GAS AND LNG SALES EBITMILLIONS OF EUROS BILLIONS OF CUBIC

METRESMILLIONS OF EUROS

5 966 3 110 9 440 915,916.8

189.02014

-23.32014

NET DEBT TO EBITDA TOTAL ASSETS

5,966.3 110.9 440.930 June 2015 30 June 2015 30 June 2015

82014

13,742.2

2013

2014158.4

2013

2014267.3

2013

EQUITY RATIO1

RATIOMILLIONS OF EUROS PER CENT

6,942.5 55.9 -1.330 J 2015 30 J 2015 30 J 2015

7,034.32014

6,150.52013

45.6201456.82013

-10.42014-1.52013

1 Based on the average of equity measured at the beginning of the financial year and the end of the financial year

30 June 2015 30 June 2015 30 June 20152013 2013 2013


TRANSPARENT LIQUIDITY ANALYSIS WITH SAPAGENDATRANSPARENT LIQUIDITY ANALYSIS WITH SAP






6.0 Discussion


3 INITIAL PROJECT SITUATIONCHALLENGES AND PROJECT DRIVERS3 INITIAL PROJECT SITUATION

Manual analysis of actual values is very complex y y p

Error-prone manual categorization of actual values

Complex posting logic to process GPG transactions

Manual provision of actual values for plan/actual analysis (xls)

Transfer of directly determined liquidity to indirect liquidity analysis GAZPROM


3 NOTE

DIRECT VS. INDIRECT CASH FLOW STATEMENT IN BUSINESS PRACTICE

3 NOTE

Indirect cash flow statement

Derivedt l h fl

Direct cash flow statement

Actual h flElements actual cash flows

AnnuallyQuarterly

cash flows

AnnuallyQuarterlyMonthly

12-24 months

Elements

Frequency

Fiscal year

Balance sheet, income t t t P&L

4-6 weeks12 24 months (rolling)

Actual incoming and outgoing payments ( h fl th t b d t i d tl )

Horizon

Data sources statement, P&L

–

(cash flows that can be determined correctly)

External Banks In-House Bank

Data sources

Data provider

Controlling TreasuryAccountability

Financial Accounting Cash Management


3 INITIAL PROJECT SITUATION

CHALLENGES IN CASH FLOW GROUP REPORTING


GPG Group Reporting

E t l C h Fl St t tI t l C h Fl St t t External Cash Flow StatementInternal Cash Flow Statement

Monthly Cash Flow Statement

Cash Flowaccording to IAS 7mb

H

Statement according to IAS 7

Direct Method Indirect/Direct MethodGPG

Gm

Monthly Cash Flow Statement

Cash Flowaccording to IAS 7Gr

oup

g

Indirect Method Indirect MethodGPG

G









6.0 Discussion



GOALS OF THE PROJECT4 INITIAL PROJECT SITUATION

Acceptance

Transparency

Efficiency


4 1 INITIAL PROJECT SITUATION

GOALS OF THE PROJECT – IN DETAIL4.1 INITIAL PROJECT SITUATION

Efficiency Transparency Acceptance

Acceptance Prompt determination of direct h fl d t t t d

Create standardized reporting t t f thl C h Fl

Creation of cross-department d t di f ti f

Transparency

cash flows due to automated connection and integration of relevant plan data sources to the "Internal Cash Flow Statement" of GPG

structure for monthly Cash Flow Statement at GPG

Complete provision of all cash flow data

understanding of options for analysis and evaluation of cash flow

Step-by-step integration of ffili t d i i th

Efficiency

Statement of GPG Reducing manual effort and

resulting faultiness for analysis and assignment of liquidity categories

Detailed results of analysis and provision of relevant information with help of a system-based drill down function to individual

h fl l l

affiliated companies in the process of direct determination of actual and plan cash flows

Creation of homogenous data b i f f t l / t lcategories cash flow level basis for future plan/actual reporting in SAP BI


4 2 PROJECT GOALS AND SET UP

TARGET DESIGN FOR PROCESSING OF CASH FLOW GROUP REPORTING

4.2 PROJECT GOALS AND SET UP

GPG Group Reporting

Internal Cash Flow Statement

External Cash Flow Statement

Internal flexibly designable Cash Flow Reporting

Acceptance

Statement

MonthlyCash Flow

Statement

Cash Flowaccordingmb

H

Cash Flow Reporting

Monthlysystem based

Transparency

Statement

Indirect Method

gto IAS 7

Indirect MethodGPG

Gm

yCash Flow Statement

Direct Method

Efficiency

MonthlyCash Flow Statement

Cash Flowaccordingto IAS 7Gr

oup Monthly

system basedCash Flow

Indirect Method Indirect MethodGPG Statement

Direct Method



ESSENTIAL PROJECT STEPS4.2 PROJECT GOALS AND SET UP

Status quo Documentation of current structures, processes and functional, technical,

process and project-specific requirements for the liquidity analysis and planning of GAZPROM Germania

AcceptanceStatus

analysis

Analysis of processes in regard to functional and methodical efficiency Analysis and assessment of functional, technical and process requirements

in regard to realization in SAP

TransparencyHigh-level

design High-level design of future target processes of liquidity management Binding estimate of realization phase for liquidity analysis

EfficiencyPrototype

Set up prototype for liquidity actual analysis on the basis of existing SAP system environment with real data

Go Live + Stabilization

GPG design and realization of liquidity actual analysis for GAZPROM Germania


4 2 PROJECT GOALS AND SET UP4.2 PROJECT GOALS AND SET UP

FUNCTION OVERVIEW "SAP LIQUIDITY PLANNER"

— The Liquidity Planner is based on data from information and actual accounts

Actual accounts: show liquid funds (e.g., bank, cash)

f f Information accounts: provide information needed to assign proper liquidity position to cash flow (e.g., P&L accounts)

An actual account cannot be an information account at the same time!

— The individual items of the posted bank statement/actual G/L account form the basis of each analysis

— Information about cash flows is mirrored in the liquidity positions that were determined using the direct method.


4 2 PROJECT GOALS AND SET UP4.2 PROJECT GOALS AND SET UP

ANALYSIS OF LIQUIDITY WITH SAP LIQUIDITY PLANNER

— Analysis of bank statement information by access to bank data storage— FI research on debtor/creditor G/L accounts— Invoice research



PROCESS OF LIQUIDITY ANALYSIS WITH SAP LIQUIDITY PLANNER AT GAZPROM GERMANIA GROUP


SAP Electronic Bank Statement (MT940)

AcceptanceAutomatic assignment mechanism

Transparency

mechanism

Assignment result Assignment log Calibration of no

Efficiency

gsatisfactory?

g gparametersno

yes

Actual dataAnalysis reports

(Info system)

Data extraction Excel



SETUP AND STRUCTURE OF LIQUIDITY POSITION AT GPG - EXAMPLE


— 16 digit number for all liquidity items

• Liquidity area : 1 = operating 2 = investments 3 = finance1 q y p g

• Liquidity group : to devide area into groups / subgroups e.g. revenue – revenue InterCo or longterm loan – repayment

1 1 1

• GP intern / extern : 0 = GP extern 1 = GP intern

• Money in / out : 0 = inbound payment 1 = outbound payment

1

1

• Partner : 6 digit partner ID used in every posting in ERP (“Verbundkennzeichen”)

• Project ID : if certain postings are allocated to WBS-elements

x x x x x x

x x x Project ID : if certain postings are allocated to WBS elements

— All positions with “x” are derived at runtime with user-exit

x x x



CHALLENGES IN SCOPE OF REALIZATION PROJECT


Complete entry of cash flows on actual accounts has to be shown

Liquidity PlannerLiquidity Planner









6.0 Discussion


5 PROJECT RESULTS AND OUTLOOK

ESSENTIAL PROJECT RESULTS –CASH FLOW REPORT


0 Buffer; Error, Carryforward0 Buffer; Error, Carryforward Total

Total of amount in LCResult Total

Total1 CF Operative Task Sales Revenue Total

Material a. misc. costsPersonnel paymentsOverheadPaid or refunded taxes

2 CF Investment

Interest paidMisc.

Payments for investmentsPayments for granted loansRP t d l

3 Financing

RP granted loansInterest received

IC Cash ManagementLoans and Credit Total

— Reporting and Detailed Analysis in Excel / Pivot

Result Total



ESSENTIAL PROJECT RESULTS –OVERVIEW


Efficiency Transparency Acceptance

Prompt determination of direct

h fl d t t t d Create standardized reporting

t t f thl C h Fl Creation of cross-department

d t di f ti f

cash flows due to automated connection and integration of relevant plan data sources to the "Internal Cash Flow Statement" of GPG

structure for monthly Cash Flow Statement at GPG

Complete provision of all cash flow data

understanding of options for analysis and evaluation of cash flow

Step-by-step integration of ffili t d i i thStatement of GPG

Reducing manual effort and resulting faultiness for analysis and assignment of liquidity categories

Detailed results of analysis and provision of relevant information with help of a system-based drill down function to individual

h fl l l

affiliated companies in the process of direct determination of actual and plan cash flows

Creation of homogenous data b i f f t l / t lcategories cash flow level basis for future plan/actual reporting in SAP BI



OUTLOOK5 PROJECT RESULTS AND OUTLOOK

S t id

Integration of affiliated companies in process of direct

d t i ti f

Integration of results

Set up group-wide user-defined

liquidity reporting with additional

flexible analysis

determination of actual and plan

cash flows.

Integration of results from liquidity

analysis in SAP BI

flexible analysis options



INTEGRATION OF RESULTS OF LIQUIDITY ANALYSIS IN SAP BI REPORTING


SAP Electronic Bank Statement (MT940)

Plan data (direct cash flow)

Automatic assignment mechanism SAP BW Reportsmechanism

Assignment result Assignment log Calibration of no

SAP BW p

satisfactory?log parameters

D t t ti

no

Actual dataAnalysis reports

(Info system)

Data extraction



BI INTEGRATION WITH STANDARD EXTRACTORS5 PROJECT RESULTS AND OUTLOOK

• Standard SAP Extraktor 0TR_LP_1, daily load of all records• Information: CoCode, Business Area, Liquidity Position, Dates, Amount local and transaction currency

32 2015-Nov-25 Structured Finance, Stuttgart


MAPPING AND ENRICHMENT • Mapping to CF-Accounts owned by finance department

Liquidity Item Cash Flow Account

1110X0XXXXXXXXXX 95211121101111X0XXXXXXXXXX 95211121101190X0XXXXXXXXXX 9521112110


• Using Liquidity posistion to enrich information1190X0XXXXXXXXXX 95211121101191X0XXXXXXXXXX 95211121101290X1XXXXXXXXXX 95211121201291X1XXXXXXXXXX 95211121201310010000000000 95211121301410x1XXXXXXXXXX 9521112140141001XXXXXXXXXX 95211121401490X1XXXXXXXXXX 95211121401490X1XXXXXXXXXX 95211121401810000000000000 95211121401810010000000000 95211121401910000000000000 95211121401910010000000000 9521112140151000XXXXXXXXXX 9521112150151001XXXXXXXXXX 9521112150152000XXXXXXXXXX 9521112150152001XXXXXXXXXX 952111215015300XXXXXXXXXXX 95211121501610X1XXXXXXXXXX 95211121601710010000000000 95211121701710000000000000 95211121802121x1XXXXXXXXXX 95211122102110X1XXXXXXXXXX 95211122102121X1XXXXXXXXXX 95211122102211X1XXXXXXXXXX 95211122202221X1XXXXXXXXXX 95211122202311X0XXXXXXXXXX 95211122302321X0XXXXXXXXXX 95211122302410X0XXXXXXXXXX 95211122402510X0XXXXXXXXXX 95211122501 1 1 1 1 x x x x x x1 x x x 2610X0XXXXXXXXXX 95211122603111X0XXXXXXXXXX 95211123103121X1XXXXXXXXXX 95211123203210X1XXXXXXXXXX 95211123303310X0XXXXXXXXXX 95211123403310X1XXXXXXXXXX 95211123403220100000000000

1 1 1 1 1 x x x x x x1 x x x


3220110000000000


SAP CASHFLOW REPORTING – 1/2• Results per individual selection parameters (e.g. individual hierarchies …)


Example: Cashflow forecast & structure



SAP CASHFLOW REPORTING – 2/2• Results per individual selection parameters (e.g. individual hierarchies …)


Example: Plan/actual deviation analysis


TRANSPARENT LIQUIDITY ANALYSIS WITH SAPAGENDATRANSPARENT LIQUIDITY ANALYSIS WITH SAP






6.0 Discussion


6 DISCUSSION

PLANNING HORIZONS & FORECASTING METHODS IN GENERAL

6 DISCUSSION


6 DISCUSSION

BEST PRACTICE – FORECASTING WORKFLOW6 DISCUSSION

• Set-up of a continuous process for liquidity forecast activities

• Combining both planning/forecasting tasks

d d i ti f t l tand deviation of actuals to measure the plan quality

• Using actuals for updated and adjusted plansadjusted plans

• Plan vs. Actual and Plan vs. Plan Reporting ensure mechanisms for continualmechanisms for continual improvement


6 DISCUSSION

EFFICIENT FORECAST ARCHITECTURE IN SAP6 DISCUSSION


6 DISCUSSIONACTUAL RESULTS INTERNATIONAL CLIENT SURVEY6 DISCUSSION

On which basis are you calculating your actualcash flows?

Which system are you using as your forecastingtool ?


— GAZPROM GERMANIA GMBHGAZPROM GERMANIA GMBH

QUESTIONS?Marcus Schreyer

Senior IT Manager

GAZPROM Germania GmbH

Markgrafenstraße 23

D - 10117 Berlin

00493020195240

00491736900644

[email protected]

Documents

TRANSPARENT LIQUIDITY ANALYSIS WITH SAP...TRANSPARENT LIQUIDITYANALYSIS WITH SAP AGENDA TRANSPARENT LIQUIDITY ANALYSIS WITH SAP 1.0 Company Profile OAO GAZPROM 2.0 Introduction Gazprom