Physical Asset Management Competent management of physical assets is at the core of good financial and operational oversight for asset-intensive organizations. It plays an important role in generating more accurate financial and operating reports. Proficient physical asset management is an essential element in sustaining active supervision of investments, maintenance, replacements, retirements and decision making. Skilled asset management professionals provide corporations with an in-depth view of the resources invested in the physical assets and the correlation between cost of use, quality and risk controls of these assets. A well-considered Asset Management framework enables asset-intensive companies or local and regional governments, which have a large and/or complex physical asset base, to strengthen the management of these assets and to increase their Return on Assets employed (ROAe). Good Asset Management provides the information needed in improving decision and registration processes with regard to physical assets, IT infrastructure concepts, internal controls and gaining a better understanding of financing needs. These insights may, ultimately, allow asset owners to better quantify and anticipate the impact of future decisions and/or regulations on ROAe. Competent Asset Management also provides insights, which may contribute to the identification of cost and investment opportunities, such as fine tuning the maintenance budgets. In addition, it underpins the calculation of different kinds of valuation exercises for the entire asset base. SYSTEMATIC HOLISTIC SUSTAINABLE KPMG Asset Management Competence Center SYSTEMIC INTEGRATED OPTIMAL RISK-BASED
Multiple dimensions Looking at the overall picture, we help you integrate all the elements of your physical assets HOLISTIC SUSTAINABLE We help you manage assets in the light of interdependencies and combined effects of several managerial, operational, technical and financial elements and take this into account when planning Asset Management forecasts and budgets We help you adopt a methodical approach, which is consistent, clear, documented and auditable INTEGRATED SYSTEMATIC KPMG Asset Management Competence Center OPTIMAL SYSTEMIC To begin with, a top down analyses and improvements are executed in the context of all the assets, afterwards in the context of the individual asset RISK-BASED Risks are identified and monitored on technical, operational and financial, as well as internal control levels We aim to help you establish two main concepts: Total Cost of Ownership and Whole Life Cycle of the asset A look at our services Building on our wide experience in providing advice about Asset Management, the KPMG AMCC has clustered its assistance and recommendations around six service offerings, which are mentioned in the illustration. Why KPMG? The KPMG network has extensive experience advising asset-intensive organizations on Asset Management and is a pioneer in this area. Opting for KPMG Asset Management teams means working with a strong group of advisors (operational, technical and tax) and auditors with in-depth understanding of business issues, challenges, trends and risks related to these organizations financial and operational management. In addition, KPMG AMCC is a patron of the Institute of Asset Management and a PAS 55 accredited auditor. The KPMG AMCC provides a tailor-made methodology in asset analysis, growth opportunities and management. We establish integrated Asset Management frameworks in line with international standards, such as PAS 55, financial reporting framework (e.g., local GAAP, IFRS, US GAAP), legal and regulatory requirements,internationally applicable frameworks on internal control, risk management and/or corporate governance on behalf of the CEO, CIO, COO, CFO, audit committees, shareholders, investment bankers, tax authorities and/or regulators. TELECOM The KPMG AMCC is staffed with experienced specialists providing pragmatic advice and hands-on assistance managing physical and IT assets in the following sectors: UTILITIES Utilities: Electricity (generation, transport, distribution), gas (transport, distribution), water (transport and distribution), offshore and onshore oil and gas exploration, sewage, etc. Telecom: Fixed networks, cable networks, broadband, etc. Public/private Investments: Public street lighting systems, infrastructure, such as railways, waterways and motorways, (public) housing projects, etc. Industry and Others: Ports, airports, production sites, etc. PUBLIC/PRIVATE INVESTMENTS Specialized tools We utilize a specialized software application tool to analyze and to help create an improved fixed assets inventory, and to help build up different kinds of scenarios for multiple purposes, such as valuation or cost and investment enhancement. This tool also enables the link between technical, operating and accounting databases. The tool captures the long standing experience of our sector specialists and puts it to use for the benefit of our clients. INDUSTRY AND OTHERS
Training Physical asset inventory Data Analysis, Due Diligence, Valuation and Reporting Physical asset inventory Strategy ASSET LIFE CYCLE MANAGEMENT Cost and Investment Opportunities Assistance in drawing up an accurate and complete asset inventory which can be used for multi purposes Physical inventories are carried out without disturbing the workflow in your organisation Assistance in barcode-tagging of physical assets Assistance in defining the key meta data Audit Processes and Procedures The quality of your physical asset inventories will be state-of-the-art. They will be correct, transparant, complete and valued for different kind of purposes: insurance requirements, due dilligence valuations (e.g. in the light of a Merger or Acquisition), IFRS, cost and investment opportunities, Data Analysis, Due Diligence, Valuation and Reporting Training Life Cycle Cost Light training Asset Management Quantitative Maintenance training Our training sessions are focused on providing clients with information and tools to facilitate a better organized, uniform and logical approach to Asset Management. Assistance with gaining insight in technical source data; in particular for databases with a high number of individual assets (>100.000) regarding: quantities, technical characteristics, investment date, location and value Assistance with the calculation of the value of physical asset bases given different circumstances, objectives, legal requirements and methodologies Assistance in improving the presentation of raw data using specialized tools and techniques Assistance with setting up a link between the technical inventories and the financial records The quality of your financial-technical reporting will improve. Improved data quality and financial-technical reporting may raise the comfort level of shareholders, financers, regulators and acquirers.
ASSET LIFE CYCLE MANAGEMENT Cost and Investment Opportunities Assistance in calculating cost evolution, performing cost benefit analyses, doing optimal financing exercises and feasibility studies Assistance with the execution of quantitative maintenance analysis Assistance with the identification of opportunities for optimizing maintenance costs and investments Deliverables include cost-benefit reports, an overview of identified opportunities to optimize maintenance cost and investments programs and plausible scenarios for financial models. Strategy Audit Assistance with the analysis of the asset management strategy and vision, as determined by corporate needs, regulatory demands, trends, unbundling initiatives, current investment needs related to assets quality, remuneration of shareholders, security, etc. Assistance with drawing up Asset Target Operating Models, Asset Management frameworks and systems Support with regard to providing answers to ad hoc questions of management and shareholders. Reporting includes an overview of identified weaknesses and deficiencies as well as strengths of the AS-IS position and provides recommendations and priority indicators for the TO-BE situation. An Asset Management roadmap is usually provided. Calculation of Key Performance Indicators (e.g., ROAe) A vigorous Asset Management strategy will support the Asset Management structure and have a positive impact on your ROAe. ISA 800, ISAE 3000, ISRS 4400 auditor s report on audit engagements for regulatory purposes Plant, Property and Equipment audit and attestation Quick scan on the asset management system PAS 55 Gap Analysis PAS 55 audit and accreditation Audit of IFRS compliant financial statements with regards to physical assets accounted for on your balance sheet Full operational audit on the asset management function Asset Management is measured and benchmarked against international and local reporting management and audit standards, providing assurance on the quality and stability of Asset Management systems and uncovering attention points for improving Asset Management. Processes and Procedures Assistance with improving asset management processes and procedures related to the Whole Asset Life Cycle Assistance with an accurate audit trail for registered retirements in the financial accounts Assistance with the identification of internal control improvements with regard to the quality of data registration Assistance with the conversion from current local GAAP to IFRS compliant financial statements We help clients in their efforts to link technical, operational and financial accounting data, match taxonomy between departments, and analyze risks and internal controls. We streamline your asset management processes (e.g., investments, maintenance, and disinvestments). We help you analyze your AS-IS position and provide informed recommendations for the TO-BE situation.
Contact us Belgium Daniël Pairon T: +32 3 821 19 41 E: dpairon1@kpmg.com Erik Clinck T: +32 3 821 18 55 E: eclinck@kpmg.com Kris Laureys T: +32 3 821 18 65 E: klaureys@kpmg.com Tim Baert Manager T: +32 3 821 18 98 E: tbaert@kpmg.com Thomas De Ruyck Manager T: +32 3 821 18 08 E: tderuyck@kpmg.com Alain D hoe T: +32 3 821 17 93 E: alaindhoe@kpmg.com Liesbet Bonnarens Associate manager T: +32 3 821 17 14 E: lbonnarens@kpmg.com Australia Rodney Nelson Director T: +61 8 9263 7454 E: rodneynelson@kpmg.com.au Germany Carsten Wember T: +49 211 475-7655 E: carstenwember@kpmg.com Hungary : Péter Kiss T: +36 1 887 7384 E: peter.kiss@kpmg.hu The Netherlands Edwin van der Stam Director T: +31 104 534332 E: vanderstam.edwin@kpmg.nl Norway Lars Thurmann-Moe T : +47 40 63 93 02 E :lars.thurmann.moe@kpmg.no Spain Jesus Ruiz Iban T: +34 91 4513065 E: jesusruiz@kpmg.es United Kingdom : Nick Chism T: +44 20 73118603 E : nick.chism@kpmg.co.uk Canada Magnus Enfeldt T: +1 604 691 3586 E: menfeldt@kpmg.ca kpmg.com/be/amcc About the KPMG network KPMG is one of the world s leading international organizations in the fields of Audit, Tax and Legal, Advisory and Accounting, with 140.000 outstanding professionals spread over 146 countries worldwide. Within KPMG Europe LLP, we employ more than 30.000 people, spread over 16 countries. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received, or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. Printed in Belgium.