™ Foreign Exchange Exposure Management from Art to Science Finally, a better way to manage your foreign exchange exposure Today, most multinational corporations struggle with foreign exchange exposure management processes that are cumbersome, manually-driven and error-prone. Despite the adoption of sophisticated ERP systems, multi-currency general ledger systems and advanced consolidation and reporting tools, the majority of multinational companies still struggle with this key issue: “What is the foreign exchange exposure to our balance sheet and cash flow forecasts and how can we protect our margins, our revenues and the value of our firm from unanticipated foreign exchange volatility?” Until recently, the typical approach to this problem The result? involved more art than science. Processes that relied Increased Predictability heavily on manual data entry and on complex Eliminate foreign exchange related surprises and spreadsheets produced foreign exchange exposure data reduce the impact of currency volatility on earnings that was incomplete and unreliable. Ad-hoc data entry Reduced Costs errors combined with institutionalized formula errors Reduce the size, volume and related costs of your found in over 90% of spreadsheet models delivered foreign exchange transactions results that failed to inspire any confidence in analysis or Streamlined Operations decisions derived from that data. Reduce time, effort and resources spent gathering Beyond data integrity issues, manual process and and analyzing data and problem solving you can spreadsheets afford no visibility into the root causes of focus on strategic economic decisions foreign exchange exposures, so that achieving a Institutionalized Compliance comprehensive understanding of total foreign exchange Ease the burden of compliance with FAS 52, FAS 133 exposure and making informed decisions becomes an & risk management policies by ensuring data integrity insurmountable task. Luckily, there is an alternative. and institutionalizing FX best practices FiREapps™ automated processes, accurate data Tools to Manage the Entire Foreign Currency and informed decisions Exposure Life Cycle Companies today who want to protect their forecasted FiREapps applies structured and disciplined data revenues, margins or balance sheets from the impact of management, analysis and reporting capabilities to the foreign exchange volatility can rely on FiREapps to challenge of managing foreign exchange exposure automate and institutionalize best practices, ensuring impacts on forecasted revenues and expenses, as well as data integrity and providing a holistic view of foreign to balance sheets. Whether you need to insulate your exchange exposures supported by rule-based decision balance sheet from FX volatility or protect forecasted cash management technologies. flows from future foreign exchange rate uncertainty, FiREapps allows you to manage the entire foreign currency exposure life cycle. "Utilizing FiREapps has provided JDA access to world class currency risk management processes." Kristen L. Magnuson, Chief Financial Officer, Executive Vice President JDA Software FiREapps ForecastFX workbench helps treasurers to FiREapps ForecastFX : from fortune telling address exposures to forecasted revenues and margins. to reliable cash flow forecasting FiREapps TransactionFX helps to manage their balance FiREapps ForecastFX capabilities focus on helping companies sheet exposures related to monetary assets and liabilities manage accounting and economic foreign exchange affected by foreign exchange. Together, they take the pain exposure to future cash flows, allowing them to eliminate and uncertainty out of reducing exposure and eliminating the uncertainly of foreign exchange impacts on forecasted risk throughout the entire foreign exchange exposure revenues and margins. lifecycle. With ForecastFX companies can: FiREapps TransactionFX : from a balancing act Gather relevant financial data and organize it into to accurate balance sheets account groups based on policies and processes of FiREapps TransactionFX capabilities focus on helping your business in way that’s simple and auditable companies manage their foreign exchange exposure View exposures from an accounting or an economic impacting the balance sheet, presenting a dashboard perspective, in a time series based on a company’s view of exposures with drill-down access to account-level own defined planning horizon, and forecast confidence detail and patent-pending analytical and decision-making Quickly identify root causes of foreign exchange tools to effectively and cost efficiently eliminate exposure exposure and get recommendations for the best way and reduce risk. to effectively and cost efficiently eliminate exposure and reduce risk With TransactionFX companies can: Automate the process of identifying, quantifying, and How to Learn More: validating foreign exchange balance sheet and transaction To learn more about FiREapps or to schedule an on-line exposures—making the entire process more accurate, demo of our solutions, visit us at www.FiREapps.com. To more efficient and easier to audit and reproduce. learn more about emerging best practices related to Easily visualize and understand the root cause of balance managing foreign exchange visit www.fxbestpractices.com. sheet exposures from monetary assets and liabilities Feel free to call us at 1.866.928.FIRE (3473). such as A/R, A/P, Cash and Intercompany Balances. Make informed exposure management decisions based on FiREapps rules-based recommendations and refine your decisions through real-time what-if scenarios that allow you to assess the impact of your strategy.