Patrimonio Hoy

Team 4: Fanta4

Patrimonio Hoy: A Financial Perspective

CSR strategy or a profitable business unit?

> Patrimonio Hoy (PH) should be considered as both, part of the corporate social responsibility (CSR) strategy and a separate business unit

> > > > Value creation for the Mexican society New way of building houses New market niche created with high business potential Already a significant part (43%) of CEMEX current sales

> However, some changes are needed to make the business unit profitable

> > Significant sales have to be converted in positive results Operating expenses need to be reduced and fees increased

Benefits to the households and to CEMEX

> Benefits to the households… :

> > Advisory and planning support reduce costs and increase efficiency in self-construction projects Secured prices and protection against high current interest rates make the projects possible

> … and benefits to CEMEX:

> > > Stable revenues (per customer) during program duration Weakened position of competitors Possibility of reaching a unique market position

Profitability vs. Social Responsibility

> Two Perspectives have to be regarded:

> PH Short-Term Goal:

• key focus on social conscientiousness • gaining a huge market share • gather respect of low-income society

> PH Long-Term Goal:

• implement financial monitoring and controlling • turn business profitable

Both: Social Responsibility as well as Profitability of the business have to be treated in equal measure, but at different points in time

Suggested Financial Tools

> Basic tools for Financial Statements:

> > > > Cash Flow Statement Income Statement Key Performance Indicators Managerial Accounting techniques

• • • • Cost- & Performance Reports CVP Analysis Budgeting and Profit Planning Make or Buy

> Further Calculations Required:

> Present and Future Value Calculations > Calculation of Interest Rates > Calculation of Risk

• e.g. for non performing loans

Handle the Uncertainty with...