1、Client Business Value (CBV) Detailed Business Opportunity Report http:/ Sales Learning Table of Contents Company Profile 1 Annual Financials - Target 2 Annual Financials - Peer Comparison 3 ValueMANAGER ON-LINE Settings 4 Opportunity Dashboard 5 Trend - Summary Analysis Table 6 Trend - Gap Analysis
2、Chart 7 Peer - Summary Analysis Table 8 Peer - Gap Analysis Chart 9 Industry - Summary Analysis Table 10 Industry - Gap Analysis Chart 11 What-If Express 12 Help Revenue Growth 13 Operating Income Margin 17 Earnings Before Interest, Taxes, Depreciation & Amort. (EBITDA) 19 % Cost of Goods Sold 21 %
3、Selling General & Administrative 24 Days in Inventory 27 Days Sales Outstanding 31 Days Purchases Outstanding 34 Fixed Asset Utilization 37 Key Questions and Solutions Company Profile: SYBASE INC SYMBOL: SY COUNTRY: USA CURRENCY: USD Sybase, Inc The Groups principal activities are to provide softwar
4、e products and professional consulting services. It operates in two segments: Infrastructure Platform Group (IPG), and iAnywhere Solutions Inc (iAS). IPG focuses on information management with its enterprise class database servers for mission-critical transactions, data warehousing and business anal
5、ytics and also produces solutions for business continuity including the Sybase Mirror Activator for very high availability data environments. iAS is a subsidiary of the Group that enables success at the frontlines of business and holds worldwide market leadership positions in mobile and embedded dat
6、abases, mobile management and security and mobile middleware. On 13- Aug-2007, it acquired Japan-based Coboplan. Extended Systems Inc a NASDAQ listed company.Location: One Sybase Drive Dublin, CALIFORNIA 94568 Web Site: http:/ Phone: +1 925 236-5000 Industry: Computer programming services (SIC: 7371
7、) Employees: 3996 Stock Price: 24.64 Market Cap (Mil): 1,963.3 Price Date: 11/28/2008 Revenue (Mil): 1,025.5 1 Yr. Price Performance: -3.9% BUSINESS SEGMENTS DATA YEAR: 2007 Segment Description SIC Revenues (Millions) Op. Inc. (Millions) Total Assets (Millions) Op. Inc. Margin X Asset Turnover = Op.
8、 Return on Assets IPG 7371 772.0 168.0 21.76% IAS 7371 177.0 25.0 14.12% GEOGRAPHIC SEGMENTS Segment Description Revenues (Millions) Op. Inc. (Millions) Total Assets (Millions) Op. Inc. Margin X Asset Turnover = Op. Return on Assets United States 500.0 119.00 770.00 23.80% 0.65 15.45% Europe 342.0 5
9、9.00 5.80 Other 184.0 46.00 4.00 Foreign 71.00 KEY OFFICERS Name Title Daniel R. Carl Vice President, Secretary & General Counsel Jeffrey G. Ross Senior Vice President & Chief Financial Officer John S. Chen Chairman, President & Chief Executive KEY ACQUISITIONS Year 2006 - ACQUIRED MOBILE 365 IN 200
10、6 2005 - ACQUIRED ISDD LTD, AVAKI CORP & EXTENDED SYSTEMS INC IN 2005 2004 - ACQUIRED XCELLENET INC & INTELLECTUAL PROPERTY ASSETS & CERTAIN TANGIBLE ASSETS OF DEJIMA INC IN 2004 & ISDD LTD & TECHNOLOGY & ASSETS OF AVAKI CORP & EXTENDED SYSTEMS INC IN 2005 2003 - ACQUIRED AVANTGO INC IN 2003 Page 1
11、of 40 Revenues have risen by 17.0% over the past year while operating income margin (Oper. Inc. as % of Revenue) increased from 15.5% to 16.5%. Page 2 of 40 Its important to note that when Selling, General & Adminstrative (SG&A) is 0, then Cost of Goods Sold (COGS) includes SG&A. This may create inc
12、onsistencies when trying to analyze COGS for your target vs. their peers. Page 3 of 40 ValueMANAGER ON-LINE SettingsGap Settings Metric for Valuing Gaps First Year Cash Flow Benchmark Quartile 1st QuartileOther Custom Settings Target Cost of Capital 8.0% Number of Years Used in Analysis 5 Inventory
13、Non-Capital Carrying Costs as % of Inventory 10% Rate of Depreciation on Fixed Assets 136% % of Variable Cost for Incremental Revenue 100% % of Variable Net Working Capital for Incremental Revenue 100% % of Variable Fixed Assets for Incremental Revenue 100% In Gap Settings, there are two options ava
14、ilable to users. In valuing the benefits for meeting the benchmark, the user has the ability to change “Metric for Valuing Gaps“ from the default of “1st Year Cash Flow“ to “Economic Profit“. This would typically be changed if your target company measures themselves internally on an Economic Profit
15、basis rather than Cash Flow. The second setting option, “Benchmark Quartile“, can be changed by the user from the default “1st Quartile“ to either “Median“ or “4th Quartile“. This setting changes the benchmark your target company is measured against in the Industry Gap Analysis. This is typically ch
16、anged when you are analyzing a target company where the expectation of meeting the 1st Quartile might be unrealistic. For instance, a company that has just re-emerged from bankruptcy would most likely be satisfied to perform up to the “Median“ for the industry. Target Cost of Capital: The ValueMANAG
17、ER provides an estimate of the cost of capital for each company based on widely- accepted financial application techniques. However, the user may at times want to fine-tune the estimate based on, for example, information provided by the customer. The cost of capital entered in the custom setting fie
18、ld is used for valuation purposes in the Gap Analysis and What-If modules and for calculating Economic Profit. Number of Years Used in Analysis: The ValueMANAGER uses 5 years to value gaps in financial metrics in the Gap Analysis and the What-If Express. The Number of Years Used in Analysis allows t
19、he user to shorten the valuation period, for example, to 3 years.Page 4 of 40OPPORTUNITY DASHBOARD Gaps 1st Year Cash Flow Opportunity (Millions)Industry Peer Trend Industry Peer Trend Revenue Growth 6 9 0 Operating Income Margin 0 243 0 COGS % of Revenue 0 57 45 SG&A % of Revenue 320 263 0 Days Sal
20、es Outstanding 99 15 60 Days in Inventory 0 0 0 Days Purchases Outstanding 1 62 4 Revenue/Fixed Assets 65 0 0 Best Performer Mid-Range Performer Lowest Performer The Opportunity Dashboard provides a quick and easy view of your target companys key financial metrics and how the current year metrics st
21、ack up to the Trend, Peer and Industry benchmarks. For the Telecommunications industry, some of the relevant financial metrics to used evaluate financial performance include: Revenue Growth, Cost of Sales, Selling, General & Administrative (SGA), Days Sales Outstanding, Days Purchases Outstanding an
22、d Fixed Asset Utilization A review of the Opportunity Dashboard indicates the three potential greatest areas of opportunity are: % Selling, General & Admin., Operating Income Margin, Days Sales Outstanding. Page 5 of 40 The Summary Trend Gap analysis table provides a 5 year historical trend analysis
23、, comparing the current year results to the previous 4 years. The First Year and Long Term Cash Flow benefits are calculated by assuming current year results could be improved to the benchmark results, or best performing year results. The best performing year is identified by the GREEN up arrow. One
24、 area that appears to offer significant room for improvement is Days Sales Outstanding. If SYBASE INC could improve their current years performance to the benchmark year (2003) for Days Sales Outstanding it would result in a first year cash flow benefit of 60.3 Million. Page 6 of 40 The Trend Asset
25、Intensive View provides an enterprise level view of an asset intensive company and quantifies the benefits of your target company meeting the benchmark (best performing year) in five key areas: Revenue Growth, Earnings Before Interest, Taxes and Depreciation (EBITDA), Days Sales Outstanding, Days Pu
26、rchases Outstanding and Revenue to Fixed Assets. If SYBASE INC could improve their financial performance to meet the benchmarks for all five metrics, it would result in a Long Term Cash Flow benefit of 69.0 Mil. and would improve their price per share by 0.87. Page 7 of 40 The Summary Peer Gap analy
27、sis table provides an analysis of key financial metrics for your target company vs. user defined peer companies. The First Year and Long Term Cash Flow benefits are calculated by assuming current year results could be improved to the benchmark results, or best performing peer. The best performing pe
28、er for all metrics is identified by the GREEN up arrow. One area offering potential room for improvement is SG&A. If SYBASE INC could improve their current years performance to the benchmark peer (IBM) for SG&A it would result in a first year cash flow benefit of 263.4. Page 8 of 40 The Peer Asset I
29、ntensive View provides an enterprise level view of an asset intensive company and quantifies the benefits of your target company meeting the benchmark (best performing peers) in five key areas: Revenue Growth, Earnings Before Interest, Taxes and Depreciation (EBITDA), Days Sales Outstanding, Days Pu
30、rchases Outstanding and Revenue to Fixed Assets. If SYBASE INC could improve their financial performance to meet the benchmarks for all five metrics, it would result in a Long Term Cash Flow benefit of 552.0 Million and would increase their stock price by 6.93. Page 9 of 40 The Summary Industry Gap
31、analysis table provides an analysis of key financial metrics for your target company vs. the industry benchmark (1st Quartile) The First Year and Long Term Cash Flow benefits are calculated by assuming current year results could be improved to the benchmark results, or 1st Quartile. The benchmark fo
32、r all metrics is identified by the GREEN up arrow. One area offering potential room for improvement is SG&A. If SYBASE INC could improve their current years performance to the benchmark (1st Quartile) for SG&A it would result in a first year cash flow benefit of 320.2. Page 10 of 40 The Industry Ass
33、et Intensive View provides an enterprise level view of an asset intensive company and quantifies the benefits of your target company meeting the industry benchmark (Defaults to 1st Quartile) in five key areas: Revenue Growth, Earnings Before Interest, Taxes and Depreciation (EBITDA), Days Sales Outs
34、tanding, Days Purchases Outstanding and Revenue to Fixed Assets. If SYBASE INC could improve their financial performance to meet the benchmarks for all five metrics, it would result in a Long Term Cash Flow benefit of 232.7 Mil. and would improve their price per share by 2.92. Page 11 of 40 The What
35、-If Analysis quantifies the impact of improving each of the financial metrics to measure potential first year cash flow benefits. This is typically based upon your own experiences and benefits your solutions have been able demonstrate for similar client types. A change in Selling, General and Admini
36、strative of 1% results in a First Year Cash Flow benefit of 5.5 (Mil.). The Total Long Term cash benefits given all changes would be 27.0 (Mil.). Page 12 of 40Revenue GrowthWhat is Revenue Growth Top-line revenue is one of the most important financial items a company manages. Investors analyze not j
37、ust the dollar amount of revenue but, even more important, the percentage growth in revenue. Revenue growth simply measures the year-over-year percentage change in revenue. Its calculated as: (Revenue this period - Revenue last period) / Revenue last period The period for measuring revenue growth ca
38、n vary. But typically, its for a 12-month period ending in the companys most recent fiscal quarter. For example: l A company has $10 million in revenue this year. l $9 million the previous experienced. l Revenue growth is 11.0% ($10m - $9m/$9m). Revenue Growth Gap - How it is Calculated The Revenue
39、Growth Rate gap measures the value of the gap if the prospects growth rate is the same as the benchmark. In the following explanation, the prospect may be an individual company or an industry quartile like the Median. That said: In the analysis, the default assumption is that the relationships betwe
40、en revenue and the three key components 1) operating expenses, 2) net working capital (accounts receivable plus inventory less accounts payable) and 3) fixed assets remain the same. That is, they are 100% variable meaning that they change in the same proportion as the change in revenue. This approac
41、h focuses on the value of growth and mitigates the impact of changes in product and service mix, economies of scale and so on. Note: A user may change each of the three components relationship to incremental revenue by changing their value in the “Custom Setting“ feature the inputs for: “% of Variab
42、le Cost for Incremental Revenue.“ “% of Variable Networking Capital for Incremental Revenue.“ “% of Variable Fixed Assets for Incremental Revenue.“ A proxy for the First-Years Cash Flow represents the change in operating income less the capital charge on incremental investment in operating assets. T
43、echnically, the First-Years Cash Flow is the change in operating income less the incremental investment in operating assets. Typically, deducting the total investment in operating assets from the first years incremental operating income results in a negative cash flow since the investment in operati
44、ng assets is made to generate incremental operating income in the first year and future years. The value of the Long-Term After-Tax Cash Flow is calculated using a five-year period. That is, the on-going annual after-tax benefit is recognized for five years. This is consistent with many companys pra
45、ctice of developing five-year plans. For example Let the annual after-tax benefit be $10 and the cost of capital is 10%. At a 10% cost of capital, the value today of $1 received for 5 years is $3.79. The $3.79 is derived from a standard financial calculation called a Present Value of an Annuity. The
46、refore, the value of $10 received for 5 years is $37.90 ($10 x $3.79). Note: A user may change the years used to value the annual after-tax benefit, for example, from 5 years to 3 years by utilizing the “The Number of Years Used in Analysis“ input in the “Custom Settings“ feature. The long-term afte
47、r-tax cash flow value also includes the recapture, at the end of the valuation period, the up-front investment in working capital and fixed assets needed to generate the revenues required to close the revenue growth gap. This can be viewed in detail in the calculations below. Page 13 of 40Revenue Gr
48、owth Gap Calculation Page 14 of 40Revenue Growth What-If Analysis - How it is Calculated The Revenue what-If analysis measures the value if the prospects revenue changes by the percentage entered in the what-if scenario. In the following explanation, the prospect may be an individual company or an i
49、ndustry quartile like the Median. That said: In the analysis, the default assumption is that the relationships between revenue and the three related components 1) operating expenses, 2) net working capital (accounts receivable plus inventory less accounts payable) and 3) fixed assets remain the same. That is, they are 100% variable meaning that they change in the same proportion as the change in revenue. This approach focuses on the value of growth and mitigates the impact
