1.4 Forecast Accuracy (5%) 1. Our Business (40%)
Rationale
The ability to have an accurate view of the business is key to providing timely business insight and support operational adjustments where required. This is also essential to the effective execution of business strategies.
Definitions
1. Monthly Actual EBITDA (in local currency) submitted on TM1 on or before 5 th day of the following month
2. Most recent rolling forecast submitted on TM1 on or before 5 th day of the month
3. Monthly variance % of actual EBITDA compared to most recent rolling forecast • January EBITDA actuals will be compared with Budget’s January month
• February EBITDA actuals will be compared with 1+11 forecast’s February month as submitted on TM1 on or before 5th day of February • March EBITDA actuals compared with 2+10 forecast’s March month as submitted on TM1 on or before 5th day of March, April with 3+9’s April, etc.
Measurement
Scoring Mechanism
• Monthly variance % = Actual EBITDA ÷ Most recent rolling forecast - 1
To score points in this metric, the variance must fall within ±10% variance with extra point granted
• A monthly score will be given based on each month’s accuracy
Monthly Variance
Score
Within ±1%
6
• Full year score and YTD tracking will be based on the average of the monthly scores earned o Sum of monthly scores divided by the number of months
Within ±5%
5
Between ±5% to 10%
3
More than ±10%
0
11
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