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					Sustaining Core Spending Through the Downturn
         American Express / CFO Research Report




                    Manoj Adlakha
                    VP and Country Head, Global Commercial Card
                    India & Area
                    American Express

                                                              1
                                                       About the research




Surveyed 285 senior finance executives (69 from the Asia/Australia) of
      companies with revenues from $500 million to $20 billion

                  between February and April 2009




                                                                         2
                                             Why we commissioned this research



• Explore how current economic challenges are reshaping approach to
  controlling costs, cutting spending, and sustaining profitability


• Assess the plans and priorities of companies around the world in the
  current environment


• Benchmark best practices


• Leverage the information to help our clients and other businesses
  develop more effective expense management programs




                                                                           3
Key findings




               4
5
                        CFOs across Asia/Australia are quite optimistic



•   42% from Asia/Australia believe the rebound will begin as early as
    2009


•   39% from Asia/Australia are expecting economic expansion in their
    country, compared to just 18% of global respondents


•   45% from Asia/Australia are anticipating a contraction, compared
    with 72% of global respondents




                                                                         6
                                     Companies are instituting new metrics


 More than half the respondents said their companies are looking at
new measurements or metrics for financial performance, operational
          efficiency, capital spending, sales performance


                                               Are educating
Revising Forecasting Methods                employees on their
                                              contribution to
                                                 business
                                               performance
          8 in 10
                                               7 in 10

                                                                       7
   Over the next 12 months CFOs say it is important to sustain
   spending in…




Information Technology             Employee Benefit
        (7 in 10 )                        (7 in 10 )




Research & Development Marketing/Advertising/PR
         (6 in 10 )                      (5.5 in 10 )



                                                                 8
                    Cost control strategies to deal with the downturn




9 in 10 8 in 10                           8 in 10
 placing greater    tightening controls   improving internal
  emphasis on        over employee        financial controls
 measuring and          spending
   monitoring
company financial
  performance




                                                                    9
                                             Net, Net…




Increased focus on expense management in today’s
                   environment




                                                    10
For most companies the three largest controllable expenses are:

   1. Salaries and Benefits (S&B)
   2. Travel and entertainment expenses (T&E)
   3. B2B expenses including Maintenance, repair and operating expenses (B2B)




   American Express provides proven expense management solutions
                  to manage T&E and B2B Expense




                                                                                11
                          American Express Solution for Expense Management



• Increased Control

• Spend Visibility

• Direct and Indirect Cost Savings

• Data Quality & Integrity



  Drive Savings       Maximise Control         Empower Employees Manage Globally
   Corporate Purchasing                                            Business Travel
      Solution (CPS)         Corporate Cards      Meeting Card        Account




Business to Business (B2B)                                 Travel & Expenses (T&E)



                                                                                     12
                                                                     In Summary




•   Balancing cost control while sustaining investments will allow
    companies to seize opportunities and build businesses when the
    economy starts to recover


•   Critical business decisions made on sound analytical models and well
    considered investments will position companies for success as the
    economy makes its way out of the depths




                                                                             13
THANK YOU




            14

				
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posted:9/1/2011
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