CGEYFinancialsforOutsourcingAmEx'sFinance&AccountingProcessesCurrent$inmillionsStateYear1Year2Year3Year4Year5Year6Year7Year8Year9Year10TotalRevenuesAmericanExpress50.948.046.545.042.040.038.037.537.036.5421.4TotalRevenues50.948.046.545.042.040.038.037.537.036.5421.4ExpensesSalaries&Benefits19.118.514.412.912.111.511.211.211.211.211.2125.1OtherOperatingExpenses14.812.811.411.411.411.411.411.411.411.411.4115.0LegacyAM&ITcosts5.75.74.52.62.62.62.62.62.62.62.631.1ERPRunCosts-0.01.31.71.71.71.71.61.61.61.614.5ProcessSavings(exclmovetoFCE)-(1.4)(2.9)(2.9)(2.9)(2.9)(2.9)(2.9)(2.9)(2.9)(2.9)(27.3)ERP-generatedSavings-0.0(2.5)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(4.9)(41.7)TotalOperatingExpenses39.535.426.120.819.919.319.019.019.019.019.0216.7ProcessProjects(Investment)-5.40.00.00.00.00.00.00.00.00.05.4ERPImplementation(Investments)-11.01.80.00.00.03.00.00.00.00.015.8Overhead(O&E,Execcomp,admin)10.910.48.28.28.28.28.28.28.28.28.283.8Sales&Marketing-0.00.00.00.00.00.00.00.00.00.00.0Contingencyof6%-3.72.21.71.71.71.81.61.61.61.619.3TotalDirectCosts50.466.038.230.729.829.232.028.828.828.828.8341.0ContributionMargin(15.0)9.815.815.212.88.09.28.78.27.780.4SG&A(12%ofrevenue)6.15.85.65.45.04.84.64.54.44.450.6Interestexpenseat7.5%0.81.51.10.40.00.00.00.00.00.03.8CashFlowbeforeTaxes(21.9)2.59.19.47.83.24.64.23.83.426.1GOP%-43%5%20%21%19%8%12%11%10%9%6.2%CumulativeCashFlow(21.9)(19.4)(10.3)(0.9)6.910.114.718.922.726.1CGEYFinancialsforOutsourcingAmEx-ERPInvestment&GeneralSavings$inmillionsYear1Year2Year3Year4Year5Year6Year7RevenuesAmericanExpress11.611.611.611.611.611.611.6GlobalClientLargeClientSmallClientTotalRevenues11.611.611.611.611.611.611.6ExpensesSalaries&Benefits(fixed)Salaries&Benefits(variable)OtherOperatingExpenses(variable)1.60.20.20.20.20.20.2ERPRunCosts0.01.31.71.71.71.71.6ProcessSavingsERPSavings0.00.00.00.00.00.00.0TotalOperatingExpenses1.61.41.91.91.81.81.8ServiceFeesIn(fixed)0.6(0.7)(2.5)(2.5)(2.5)(2.5)(2.5)ProcessProjects(Investment)ERPProjects(Investments)11.01.80.00.00.03.00.0Overhead(fixed)10.07.87.87.87.87.87.8Overhead(variable)0.30.30.30.30.30.30.3TotalDirectCosts23.510.77.57.57.510.57.5ContributionMargin(11.9)0.94.14.14.11.14.1InputsERPRunCosts(oneclient,$M)$0.0$1.3$1.7$1.7$1.7$1.7$1.6ERPRunCostincreasefornewclientsN/AN/A0%0%0%0%0%SoftwareMaintforProcessProjects$0.0$0.6$0.6$0.6$0.6$0.6$0.6Overhead(fixed)$10.5Overhead(fixed)costreduction0%0%0%0%0%0%0%Overhead(variable)$0.3Overhead(variable)costreduction0%5%5%5%5%5%5%Volumes(allmarketableprocesses)9,815,2099,815,2099,815,2099,815,2099,815,2099,815,2099,815,2090.7133,5510.573Volumes(allprocesses)106,332,347106,332,347106,332,347106,332,347106,332,347106,332,347106,332,347EfficiencyGainsinFTEs0%0%10%6%4%2%0%OperatingExpensereductions($2.0)($3.4)($3.4)($3.4)($3.4)($3.4)($3.4)Overheadexpensereductions($0.5)($2.7)($2.7)($2.7)($2.7)($2.7)($2.7)ERPRunCostsareatthecorporatelevel(notallocatedbyprocess)ERPSavingsarenotspecifictoaprocessAmericanExpressrevenuesareforoverheaditems(legal,training,payroll,recruiting,HR,etc.)AmExrevenue(plug)OperatingExpense(plug)ServicesFeesIn(plug)Year8Year9Year10Total11.611.611.6115.9fordisplacedoverhead+plug0.00.00.011.611.611.6115.90.00.00.20.20.22.91.61.61.614.50.00.00.00.00.01.81.81.817.4(2.5)(2.5)(2.5)(19.9)0.00.00.00.015.87.87.87.880.70.30.30.33.27.57.57.497.14.14.14.218.8$1.6$1.6$1.60%0%0%$...
