BPM has spent almost a decade working with some of the world's most successful companies to incorporate market-leading best practice models into their key decision-making processes. Ranging from consolidated business planning models to investment banking-style M&A models, BPM has worked with clients in many industries undertaking many different types of projects.
The following case studies provide some examples of some of these high specification and best practice projects:
BPM constructed a suite of models to assist Australia Post in understanding the financial impact of structural changes to their distribution network. The model included both operational and capital expenditure analysis and allowed the user to amalgamate, dispose, or rebuild existing facilites, as well as acquire and build entirely new facilities. The analysis was possible across eight facilities and five side-by-side scenarios (including a business as usual base case), with sensitivity analysis possible on all key elements of the analysis. The key outputs to the model were net present costs summaries for each scenario, along with total capital expenditure summaries and a range of operational and financial outputs. The model contained such detailed analysis that the suite required a dedicated model outputs book that enabled the user to compare and contrast the different summaries.
A consolidated budget and planning model was constructed to enable the Australian Wheat Board (AWB) to forecast all of its business units, both domestic and overseas on an individual as well (accounting and debt) consolidated basis. The model was built on best practice principles, with each legal entity modelled on a standalone basis in order to understand the inter-company transactions and correctly calculate the specifics of the AWB debt structure, international tax calculations and group consolidation. The model enabled AWB to better understand and forecast their business, both on an operational and financial basis, and also provided the bedrock of information and forecasting for recent restructures.
BPM provided a considerable amount of modelling support as part of Foster's Strategic Beer & Wine Review. The modelling involved very detailed and comprehensive analysis of all beers, wines, brands, grades and categories, as well as the client's entire horizontal and vertical mechanism for the supply and demand of beer and wine. The result of the analysis were used by the senior management team as part of their strategic reporting to the board of directors and longer-term planning and performance forecasting. Analysis was also performed on the client's go-to-market strategy and provided insight into the most suitable sales team structure, as well as cost-benefit analysis of geographical versus divisional team structures. All of the models constructed as part of the strategic review were best practice, to a very high technical specification and market-leading in their depth and breadth.
JB Hi-Fi Ltd sell discount electronic goods, music and computer games through its network of 120+ stores across Australia and New Zealand. BPM developed a budget and forecasting model for JB Hi-Fi that facilitated simple inclusion of new stores, a mechanism for forecasting new store growth based on vintage and existing store, the ability to update the model for historical accounting data, an upload workbook to allow JB Hi-Fi to load their forecast data into their accounting software and a financial statement and dashboard workbook to consolidate JB Hi-Fi’s multiple entities. The budget and forecasting model produced by BPM allowed JB Hi-Fi to save considerable time in their budgeting process due to the ease of use and flexibility of the model. BPM have returned in subsequent years to add further functionality to the existing model suite and to help JB Hi-Fi through their budgeting process.
BPM managed the development of a detailed operational and strategic planning and analysis model for Origin Energy's senior management. A number of sophisticated models were developed, incorporating actual and budget data extracted from Hyperion for all of Origin's assets (including electricity generators, oil and gas fields, energy networks and electricity and gas retail businesses). These business unit and asset models consolidated into a whole of business planning model allowing performance analysis against budget and strategic scenario analysis. The key outputs of the model were summarised into a stand alone Strategic Plan reporting model that printed out a board paper report pack, incorporating key performance metrics, financials and chart outputs for each view of the business (including consolidated including Contact, excluding Contact, and latterly incorporating APLNG).
TXU Australia's networks division commissioned BPM to develop a business planning model to facilitate the efficient preparation of historical and forecast financial and operational data for their regular debt refinancing processes. The purpose of the model was to enable the preparation of detailed, sensitivity-based outputs which could be updated and provided to interested parties within days, rather than weeks.
This initial mandate was then extended to include all of TXU Australia's businesses (i.e. retail, training and generation hedge contracts) following the successful completion and use of the networks model. These consolidated models were then used as the basis for providing numbers to the company’s strategy and treasury teams, as well as banks and ratings agencies during debt refinancing processes. Primary operational assumptions were controlled by the managers of each division of the business, with the treasury and strategy teams then maintaining financing and taxation assumptions.
Ultimately, TXU Australia's parent company, TXU Corp., used these consolidated models as the basis for analysing its options with regards to divesting its Australian subsidiary.