T-Mobile implemented SAP Business Planning and Consolidation (BPC) to streamline their cash flow forecasting process. The new system shifts ownership of key forecasting drivers from the FP&A team to operational business units. BPC generates balance sheet forecasts using input templates that are driven by key performance indicators controlled by business operations. The new process provides leadership greater visibility into operational metrics and the rationale for forecast variability while reducing the time and effort required for cash flow forecasting.

1. HOW T-MOBILE MANAGES CASH FLOW WITH SAP
BUSINESS PLANNING AND CONSOLIDATION
Speaker: Brian Rutherford
Director Financial Business Systems
T-Mobile
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

2. Learning Points
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.
2

3. Learning Points
“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.”
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.
3
– Jack Welch

4. T-Mobile Company Overview
• 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.
4

5. Implementation Highlights
SAP RELEASE: BPC 10.0 NW
Input template driver-based modeling to generate
balance sheet forecasts for “material and
controllable” line items such as as Accounts
Receivable and Accounts Payable.
Key driver inputs are owned by operational business
units that have visibility into forecasting those drivers.
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.
5

6. THE BALANCE SHEET/CASH FLOW FORECASTING SOLUTION
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.
6

7. Balance Sheet /Cash Flow Forecasting Challenges & Opportunities
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.
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.
7

8. Solution Design Overview
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.
8
AR
Forecasting
Handset
Planning
BPC Balance
Sheet/Cash Flow
Planning Model
Forecasted
Driver User
Inputs
Forecasted
Balance
Sheet/Cash
Flow Reports
Customer
Planning
Vendor 1
Vendor 2
Vendor 3
Vendor 4
Vendor 5
Vendor 6
Vendor 7
Vendor 8
Vendor 9
Vendor 10
Vendor 11
Vendor 12
Vendor 13
Vendor 14
Vendor 15
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX
XXXXXX

9. Solution Deep Dive – Balance Sheet Forecasting
• 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.
9

10. Solution Deep Dive – Balance Sheet Forecasting
• 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.
10
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

11. Lessons Learned
• Do not underestimate the effort
required for design, implementation,
and testing.
• Involve the right business resources
• 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.
11
early in the design process.
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

12. Solution Success
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.
12
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.

13. • Akili is an SAP Partner IT Services firm specializing in:
Expertise
13
Why T-Mobile Chose Akili
• Why Akili?
2
Business Focus
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.
o SAP HANA
o SAP ERP for Upstream Oil & Gas
o Cloud Services
3
Commitment
1
Genuine passion
for improving
our business
Implementation
knowledge
They always
deliver
o SAP Business Planning & Consolidations
o Analytics
o Data Management

14. THANK YOU!
14
WRAP UP & QUESTIONS
T-Mobile and the magenta colors are registered trademarks of Deutsche Telekom AG. © 2014 T-Mobile USA, Inc.