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or equity finance to settle the fine. We recommend a combination of negotiation, cash and debt
finance as soon as possible.

2nd Priority: Shared Services Center and transforming our operating model.

The decision to establish a Shares Services Center in Sadimba has delivered savings of S$6.6
billion which is about 12% of our operating profits and could translate into a perpetual annuity. It
has however been received with strong criticisms across Africa as 'off-shoring' of jobs to

Sadimba with threats to boycott our products which could erode the savings and damage our
brand. Its impact is less than that of priority 1 above but given its threat to sales and our brand,
this is our priority number 2. We that recommend a suitable public relations and change

management strategy be effected immediately.

3rd Priority: Nuclear deal, political risk & strategic uncertainty in Ilania.

JV-Cellular is our 3rd largest single contributor to earnings at 9%. The Ilanian government has
accepted a nuclear agreement that could remove all sanctions and allow us expand in the
Middle East region. There are however doubts as to whether Ilania will comply with the

agreement and even so there are mooted indiginisation laws that could see us loose our entire
investments in that country. The issue has a lower impact as it contributes a smaller proportion
to earnings at 9% compared to 12% for priority 2 above. Furthermore priority 2 has an

immediate impact whereas we have till end of January 2016 to decide how to respond to the
events in Ilania. We could decide to consolidate & expand, stay the course or sell & walk-away.
This report recommends staying the Course.

4th Priority: Mobile operator license opportunity in Chininsia.

Chinisia in the Asia Pacific Region will be renewing their mobile operator licenses in 2017,
presenting an opportunity for us to enter the Asian market. This issue is prioritised last because

it is a discretionary opportunity and less urgent (open till 2017) than priority 3 above. We find the
market not attractive enough although an acquisition rather than a direct bid is the better option.

We recommend you postpone this decision pending a full due diligence to be carried out..

Other major issues were considered ethical rather than commercial in nature and as

such have been dealt with separately in section 5 of this report.

Developed by The CharterQuest Institute for 'The CFO Business Case Study Competition 2016'
www.charterquest.co.za | Email: thecfo@charterquest.co.za