Leasing as a Managed Service: Introducing Global …...Leasing as a Managed Service: Introducing Global Lease Services from EY and LeaseAccelerator Agenda • Introductions • Overview

Leasing as a Managed Service: Introducing Global Lease Services from EY and LeaseAccelerator

Agenda

• Introductions

• Overview of the EY/LeaseAccelerator Announcement

• Polling Questions & Discussion

• Q&A

Our Speakers

Tyler MillsSVP of Global Sales &

Alliances, LeaseAccelerator

Stefan Pfeiffer Partner, Financial

Accounting Advisory Services, EY

Moderator

Mike LeesChief Marketing Officer,

LeaseAccelerator

Joe FitzgeraldLease Technology Leader,

EY

© 2020 LeaseAccelerator Inc.

New challenges lead our clients to a vastly different set of questions

Increased investment in automation and technology

Remediation programs

to address regulatory non-compliance

Risk management

systems to mitigate exposures

Transformend-to-end

operations

Different solutions and full ecosystem from

service providers

New demands from our clients

Managed Services enable our clients to focus on their core business, while we provide technology, talent and robust and highly automated end-to-end operations.

© 2020 LeaseAccelerator Inc.

Managed Services

Increased investment in automation and technology

Transformend-to-end

operations

EY Lease Accounting & Contract Management

Services

Some Examples to provide Context

1. Advanced Financial Analytics Services

2. P2P OCR/AI

Remediation programs

to address regulatory non-compliance

Risk management

systems to mitigate exposures

1. TFO – Tax and Finance Outsourcing

2. Payroll Operate

1. Cyber Security as a Service

2. Third Party Risk Managed Service

1. Global Mobility Services

2. Internal Audit Services

1. Leverage EY Technology, Talent & Operations

2. Mitigate Risk of Non-Compliance

3. Generate Free Cash-Flow

Managed Services enable our clients to focus on their core business, while we provide technology, talent and robust and highly automated end-to-end operations.

Three Pillars to Success with Managed Services

Managing outcomes through….

PeopleTechnology Process

Page 7

What are customer challenges and how do we address them

Centralized and OCR-enabled data capturing process with efficient internal controls on completeness and accuracy of data and highly automated workflow. Leverage RPA to consistently apply policies for lease classifications, estimates and judgements.

Globally harmonized lease accounting and contract management process utilizing cutting-edge technology, EY subject-matter experts and EY Lease Center of Excellence with dedicated and trained staff

Process automation, strong ICFR, transparency on processes and dedicated roles and responsibilities enabled with LeaseAccelerator technology

Online competitive bidding marketplace enabled by LeaseAccelerator platform with +500 lessors and standardized equipment lease contracts for specific assets & geographies

Analytics embedded in EY Lease Tool to provide contract management dashboards, send notifications, provide KPIs, compare market data for real estate leases and set the grounds for other advisory services

How BenefitsCompleteness, accuracy of lease contract data and consistent application of policies as prerequisite for accounting compliance, controls and lease management

Dedicated EY Experts, access to latest OCR and lease technology without significant investments

Central control and transparency of lease investment, lease spend and lease management

Substantial cost savings in equipment lease sourcing (~5% to 10% of total lease cost)

Cost savings from real estate contract management of ~2% to 3% real estate lease cost and savings of “end-of-term” payments for equipment

Standardized and individual lease management reports provide transparency, notifications drive necessary actions and EY payment application services detect / avoid overpayments

Implement lease strategy, control lease payments, avoid overpayments

How do we best ensure completeness, accuracy of lease contract data and consistent application of policies?

How can we reduce cost of compliance?

How do we handle complexity created by non-standardized lease contract terms and decentralized management processes?

How do we optimize the sourcing of our equipment lease contracts?

How can we best use lease data to reduce lease costs for equipment and real estate leases?

How do we create transparency for financial controllers for lease expenses and how can we avoid overpaying lease and non-lease expenses?

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What

Page 8

Our customized approach tailored to your organization covers all type of lease contracts: real estate, equipment and mobility

Implementation of the EY methodology and technology assets based on the client Finance’s organization.

Lease contract analysis

Data abstraction and data transfer

Equipment lease contract management

Equipment lease sourcing services

Reporting

Lease accounting

Benchmarking and forecasts

Com

preh

ensi

ve p

roce

ss m

anag

emen

t

Lease vs Buy analysis

Flexible delivery

1

2

3

Ongoing Managed Service

Initial setup

Smart Contract Structuring /

Harmonization

Real estate lease contract management

Audit and compliance support services

Modules EY Services

The solution can be delivered as end-to-end or EY can serve you with selected modules or activities.

Scope, timing and frequency of EY services can be tailored as per your needs.

Competitive Bidding Proposal analysis and ranking

Contract evaluation Contract Structuring advice Accounting Memo Lease Parameter

optimization

Automated/ OCR/1st

level data abstractionData abstraction

reports

Data transfer from internal/ external sources via API

Multi Level Data quality review

Parallel ledgers, e.g. IFRS, US-GAAP, GASB,

Statutory

Journal Entry Reports and GL and AP Reconciliation

IBR calculation and consistent application

Consistent Application of Accounting Policies

Evergreen / overpayment report

End-of-term Management Lessor Consolidation Payment application

Smart Contract Services

Benchmark/Scenario Services Reporting Services Payment

reconciliation

Robust build-in accounting

compliance controls

Automated workflow to ensure

completeness

Documented audit and review trail SOC Type2 Reports

IFRS Reporting (incl. disclosures and intercompany

Performance Reporting

Automated alerts and notifications

(customized) Portfolio Report

Internal & Market Benchmarking

Forecasts (e.g. cash flow, renewals, KPIs

Scenario Analysis Cost analysis

Page 9

Focus: how do we best ensure completeness, accuracy of lease contract data and consistent application of policies?

LEASE

► New Asset Added► Lost or stolen► Partial Termination► Early Buyout► Early Full

Termination

► Early Termination

► Floor Space Expansion

► Floor Space Contraction

► Leasehold Improvements

► New Sub Lease

EQUIPMENT

REAL ESTATE

RENT CHANGES

► Change from Variable to Fixed

► LIBOR/ SOFR

► Performance Based

► CPIOTHER CHANGES

► Change to Business Plans

► Change to Residual Value

► Location Change

► Cost Center Change

► Impairment

END OF TERM

► Evergreen

► Partial Renewal

► Buyout

► Termination

► Renewal

Capturing and maintaining complete and Accurate lease data can ONLYscale through automation

Collate Lease Accounting Data

Reconcile Lease Data(To Vendors)

Perform Lease Classification

Perform Lease Calculations: • ASC840/IAS17• ASC842/IFRS16

Maintain Lease Accounting Database

Provide Lease Accounting Journals

Provide Lease Disclosure Data

Provide Lease Reports –• Finance• Control/Audit

Click to edit Master title style

LeaseAccounting

Creating an accurate, repeatable process...

Agree Lease Conditions -• Lease Modification• Lease Termination

Manage Leases

Provide Lease Accounting Data

Cleanse Lease Data









Reconcile Lease Accounting Data

Post Journals

Approve Journals

Produce General Ledger Lease Data

Provide Discount Rates

LeaseManagement

LeaseAccounting

FinancialControl

Build workflows to support B/U needs

Monthly attestations



Manage Leases


Cleanse Lease Data










Post Journals

Approve Journals



Source To Contract &Request To Pay

LeaseManagement

LeaseAccounting

FinancialControl

ManagementReporting

FinancialDisclosure



End of Term Management

KPI reporting

Agree Lease Conditions -• New Leases• Lease Modification• Lease Termination

Enforce leasing policy by driving all procurement through standard Lease vs Buy process


Capture Lease Data from GL’s

Allocate/Attribute Lease Costs

Provide Lease Analysis/Reporting

Reconcile Lease Disclosure Data

Disclose Lease Information

Provide Push Button Disclosures

Contract management to support audit

Audit trails

Maintain and update required data in LA system – Fx, IBRs, etc.



Manage Leases


Cleanse Lease Data










Post Journals

Approve Journals



Source To Contract &Request To Pay

LeaseManagement

LeaseAccounting

FinancialControl

ManagementReporting

FinancialDisclosure



End of Term Management

KPI reporting

Apply Lease Judgements

Business Lease Data

Agree Lease Conditions -• New Leases• Lease Modification• Lease Termination

Enforce leasing policy by driving all procurement through standard Lease vs Buy process

Capture all lease data in standard form


Compete leases for material cost savings

Capture Lease Data from GL’s

Allocate/Attribute Lease Costs

Provide Lease Analysis/Reporting

Reconcile Lease Disclosure Data

Disclose Lease Information

Provide Push Button Disclosures

Contract management to support audit

Audit trails

Maintain and update required data in LA system – Fx, IBRs, etc.

KEYInternal Process Automated Within

LeaseAccelerator

Internal Accounting Task Step

Internal Task Step


Our Speakers

Tyler MillsSVP of Global Sales &

Alliances, LeaseAccelerator

[email protected]

Stefan Pfeiffer Partner, Financial Accounting

Advisory Services, EY

[email protected]

Moderator

Mike LeesChief Marketing Officer,

LeaseAccelerator

Joe FitzgeraldLease Technology Leader,

EY

[email protected]

Questions?

THE LEADER IN ENTERPRISE LEASE LIFECYCLE MANAGEMENT SOFTWARE

Thank you

LeaseAccelerator LeaseAccelerator @LeaseAccelerate LeaseAccelerator

Documents

Leasing as a Managed Service: Introducing Global …...Leasing as a Managed Service: Introducing Global Lease Services from EY and LeaseAccelerator Agenda • Introductions • Overview