【正文】 for each SRU and CCU. * Ex te rn a l Pl a n t in cl u d e s a cce ss a n d s o me t e rmi n a l sw it ch in g (i .e . to ta l lo ca l lo o p )** In te rn a l Pl a n t in cl u d e s Te rmi n a l S w it ch in g , Ju n ct io n N e tw o rk, D L D S w it ch in g + T ra n sm is si o n , IL D S w it ch in g + T ra n sm i ssi o nSo u rce : Mc Ki n se yL i n eS e n si tiv eC o stsT r a ff i cS e n si tiv eC o sts$L i n e u seL i n e u se$E r l a n g s P e a k xE r l a n g s p e a kE r l a n g s A vg .$E r l a n g s A vg .E r l a n g s A vg .$ D E PL i n e ca p$ Op p o r tu n i tyco st o f In ve n to r yL i n e C a p$ Op e r a t.L i n e ca p$ Ot h e rL i n e ca pA vg . sa l a r yE r l a n g s ca pE m p l o ye e s$ P r e vi o u s ye a r a ss e t s/l i n e+$ N e w a ss e ts/ l i n e$ W r i te o ff s/ l i n e$ P r e vi o u s ye a ra ss e ts/ e r l a n g+$ N e w a ss e ts/ E r l a n g$ W r i te o ff s/ E r l a n gC u r r e n t a ss e tb a seD e p r e ci a tio n r a te$ D E PE r l a n g ca p$ L a b o rE r l a n g ca pD e p r e ci a tio n r a te??N e tw o r kC u r r e n ta ss e tb a sexD i r e ct co stT r a n sf e r r e d$L i n e ca pL i n e u seL i n e ca px$E r l a n g ca pE r l a n g p e a kE r l a n g ca p( E xte r n a l P l a n t* )( In t e r n a l P l a n t * *,T r a n sm i ss i o n )?L i n e C a p$ OP E R$ In sta l l a tio n+$ M a i n te n a n ce+$ R e p a i r+$ D i sp a tch+$ T e ch . S u p p o r t+$ Ot h e r?M a te r i a lC o stIn sta l lL a b o rC o stIn sta l lN E TW O R K C OST A N D C A P IT A L E FF I C I E N C Y ME A S U R E S R e l a te d t o o p e ra ti n g ra t i o s+x?+++?x++E x h i b i t 2 Corporate Finance is a particular unit, responsible for managing the capital structure, minimizing ine tax, optimizing cash management and investments. It is accountable for the Telco’s financial contribution and the Telco’s nonoperating ROCE. Exhibit 3 shows the breakdown of drivers this unit should monitor. 中國最大的管理資源中心 第 6 頁 共 28 頁 Af te r t a x R OC EF i n a n ci a lcon tr i b u tionR OE M a r g i n o n d e b t xD e b t/ ca p i ta le m p l o yedM a r g i n o np r e fe r r e d sto ck xPr e f e r r e d sto ck/cap i ta l e m p l o ye dM a r g i n o nm i n o r i ty in te r e st xM i n o r i tyi n te r e st/ cap i t a le m p l o yedAf te r t a x R OC E Af te r t a x co sto f p r e fe r r e d++Af te r t a x R OC E Af te r t a x co sto f d e b tPr e t a x co st o f d e b t x1 M a r g i n a l ta x r a te1Op e r a t i n gta x r a teT a x e xp e n se/ E BI T +D e b t ta xshie l d /E BI TC a sh t a xes/ E BI T +D e fe r r e dta xes/ E BI TIn te r e st e xpe n se/ EBI T x1 M a r g i n a l ta x r a tePr e t a xR OC ESe e R O C E t re eW e i g h te dfina n ci a l m a r g i n xL e ver a g e ( C a p i ta le m p l o yed /e q u i t y)RET UR N O N EQ UI T Y T REEF i n an cial re l a ted b re ak d o w nExhi bi t 3Cor por ate Fi nanc e ac co unt abil iti es Therefore, each unit’s report needs to be designed around these different responsibilities. CFU Reports As stated above, CFUs will be held accountable for the profitability of their customers and over the Operating Return on Capital Employed (Operating ROCE) to run the business. Therefore, CFU financial reports should include a Profit and Loss (Pamp。 The incorporation of benchmarks and market references in order to promote cost effectiveness The implementation of UFR should be carried out in stages or generations, determined mainly by the sequence of authority delegation to the Units, in addition to availability and quality of the necessary detailed information. Following is a description of the ultimate picture of UFR content (Sections 1 3), and the requirements to implement a first generation of reports (Section 4). The document is divided into the following sections: 1. What should be included in Unit Financial Reports? 2. Which criteria should guide the internal attribution of revenues, costs and balance sheet elements? 3. How should this tool for unit management and performance evaluation be used and administrated? 4. Which steps should be taken to implement Unit Financial Reporting? 中國最大的管理資源中心 第 4 頁 共 28 頁 1. WHAT SHOULD BE INCLUDED IN UNIT FINANCIAL REPORTS? The content of unit financial reports should detail the business drivers controlled by Unit Heads, financial indicators used for their evaluation, and other references that will help them understand the current financial performance level and the feasible potential of increasing profits for the business or reducing the costs for services under their responsibility. The ultimate financial indicator of the Telco success is its return to shareholders or Return on Equity (ROE). As shown in Exhibit 1, this indicator can be broken down into a set of linked financial drivers of ROE performance that are controlled at different levels and functions of the pany. This breakdown helps determine which indicators each Unit should understand, monitor, and report to the CEO. CFUs, for example, set pricing, market and sell products, introduce or discontinue services, deci