4 September 2014
Cntent 1. Reasns and Strategies 2. Phases f Treasury Reginalizatin 3. Platfrm 4. Prcesses 5. Peple 6. Synergies: Cperatin and Teaming 7. Key Factrs t Succeed 2
: Reasns and Strategies REASONS STRATEGY Imprvement f Cash, Liquidity and Risk Management Operatinal Efficiency Cst Reductin Enhance Service Level N Single Apprach fr all Cmpanies. Balance Overall Business Strategy, Glbal Treasury Plicies and Reginal Gals. 3
: Phases f Treasury Reginalizatin Phase 1: Building Up Diagnse Opprtunity Identificatin Migratin Plan Pilt Test G Live As Is Cuntry by Cuntry Phase 2: Optimizatin Cntinuus Prcess Imprvement Identify Benchmark prcesses Standardize Dcumented Prcesses and Prcedures Phase 3: Estate f Arts Tax Efficient Entity Structure In place Integrated ERPs Autmated Cllectin & Payment Prcesses Integratin with Glbal Treasury Dashbard with KPIs Partner Bank perfrmance measurement SLA Innvatin 4
: Platfrm Prcesses Peple 1. Cuntries in Scpe 2. Entity/Business Unit Structure 3. ERPs 4. Banking Structure 5. Treasury Systems 1. Scpe f Activities 2. Internal Cntrls 3. Treasury Plicies and Prcedures 4. Currency and Crss Brder Restrictins vs Standardizatin, Simplificatin and Innvatin. 5. KPIs/Targets 1. Engagement 2. Career Opprtunities/Talent Management 3. High Perfrmance Culture 5
: Platfrm 1. Cuntries in Scpe Nancy L. Russell: Hw it is apprached depends n the prfile f the business; hw well it will wrk depends n the degree f preparatin and understanding. 2. Entity/Business Unit Structure 3. ERPs 4. Banking Structure 5. Treasury Systems Example f Turnver % 6
: Platfrm 1. Cuntries in Scpe 2. Entity/Business Unit Structure 3. ERPs Entity 1 BU A Entity 2 BU B Entity 3 BU C Entity 4 BU D a. Decentralizatin Level f Business Units. b. Merge Plans in Place? 4. Banking Structure 5. Treasury Systems vs. Entity BU A BU B BU C BU D c. Intercmpany Lan. d. Lcal Financial Tax Rules. 7
: Platfrm 1. Cuntries in Scpe 2. Entity/Business Unit Structure 3. ERPs 4. Banking Structure 5. Treasury Systems Entity 1 BU A Entity 2 BU B Entity Entity Entity 3 BU C Entity 4 BU D ERP 1 v.a ERP 2 v.a ERP 1 v.b ERP 4 BU A BU B BU C BU D ERP 1 v.a ERP 2 v.a ERP 1 v.b ERP 4 Different ERPs Setup within Business Units increases cmplexity f the Reginalizatin prject but des nt make it impssible! BU A BU B BU C BU D ERP 1 v.a 8
: 1. Cuntries in Scpe (Lcatin) 2. Entity/Business Unit Structure 3. ERPs Platfrm 4. Banking Structure 5. Treasury Systems Gathering Infrmatin f Current Set up Current Partner Banks (Glbal, Lcal) Swift Capabilities (MT940, MT101) EBS (Electrnic Banking System?) Cash Pl in place? Is it pssible t build a Cash Pl intra-cuntry? What are the taxes assciated? Is it pssible t have Bank Accunts On/OFF Shre? Bank fees per bank. Legacy Bank Accunts It is crucial t have ne r tw partner banks fr the Regin and a Lcal Bank (Capillarity). Cnsideratin fr Partner Banks: 1. Cash Management Prducts (Cllectins & Payments) 2. Swift Capabilities 3. Credit Facilities 4. Pricing 9
: Platfrm 1. Cuntries in Scpe (Lcatin) 2. Entity/Business Unit Structure 3. ERPs 4. Banking Structure 5. Treasury Systems Variety f Optins in the market. Depending n the final cnfiguratin f the Treasury CAPEX is needed. Mre sphisticated Optins require interfaces with ERPs and SWIFT Capabilities. There are ERPs with Treasury Mdule. Sme ERP systems supprt IHB and Payment Factry Slutins. 10
: Prcesses 1. Scpe f Activities 2. Internal Cntrls 3. Treasury Plicies and Prcedures 4. Currency and Crss Brder Restrictins vs Standardizatin, Simplificatin and Innvatin. 5. KPIs/Targets Lcal / SSC As Center f Operatins: Credit & Cllectin Payments t Lcal Suppliers Payment f Imprts Accunting f Treasury Transactins and Bank Fees Central Bank Reprts Lcal FX Requirements Bank Recnciliatins Reginal Treasury As a Center f Expertise: Cash Management Cntrls Investments / Withdrawals / Lans Guarantees Negtiatin Hedging Intercmpany Lan Crprate Finance Strategic Platfrm fr Autmatic Payments Banking Structure Set Up Bank Fees Cntrls 11
: Prcesses 1. Scpe f Activities 2. Internal Cntrls 3. Treasury Plicies and Prcedures 4. Currency and Crss Brder Restrictins vs Standardizatin, Simplificatin and Innvatin. 5. KPIs/Targets Internal Cntrls: Authrizatin Schedule EBS Accesses Evidence f Treasury Operatins Exceptin Apprval frm Glbal Treasury SOX Treasury Plicies and Prcedures: Lcal and Reginal Plicies aligned with Glbal Plicies. Annual Review prcess. Deplyment thrugh the rganizatin. 12
: Prcesses 1. Scpe f Activities 2. Internal Cntrls 3. Treasury Plicies and Prcedures 4. Currency and Crss Brder Restrictins vs Standardizatin, Simplificatin and Innvatin. 5. KPIs/Targets T reach the ultimate level f Autmatin, Standardizatin, and simplificatin it is necessary t have: Integrated ERPs Bank Partners with Swift Capabilities Innvatin: Never tell peple hw t d things. Tell them what t d and they will surprise yu with their ingenity. General Gerge S. Pattn The best way t predict the future is t create it. Unknwn 13
: Prcesses : KPIs KPI Descriptin Metric Target Shrt Term Cash Frecast Accuracy f the ST Cash Frecast ST Cash Frecast (4weeks) vs. Actual Cash Flw Up t 5% f variance Overdraft Efficient use f the Interest Expense - 0 Payment f Interest Facility Overdraft Facility Overdraft Facility due t mistakes Bank Fees Ensure we pay Bank Fees accrding t RFP negtiatins Weighted - N. Transactins per type x unitary cst per transactin type vs. Bank Fee and vs. Bank Fee Ledger 0% Variance Expsure Cverage Accuracy f the cverage f the expsure. Amunt Hedged / Expsure in Balance Sheet -1 Up t 5% f variance Payments Payments must be prcessed thrugh Payment Factry N. Of Payments Prcessed with PF/ Ttal Payments Suppliers 100% - Taxes and Utilities 20% 14
: Peple 1. Engagement 2. Career Opprtunities/Talent Management 3. High Perfrmance Culture Mtivatin is the art f getting peple t d what yu want them t d because they want t d it. Dwight D. Eisenhwer The best executive is the ne wh has sense enugh t pick gd men t d what he wants dne, and selfrestraint enugh t keep frm meddling with them while they d it. Thedre Rsevelt Great rganizatins demand a high level f cmmitment by the peple invlved. Bill Gates Organizatins exist t enable rdinary peple t d extrardinary things. Ted Levitt 15
: Change Management Ktter s The 8-Step Prcess fr Leading Change Ktter s 8 Reasns why change fails 1. Allwing t much cmplacency Failing t create a sufficiently pwer guiding calitin 2. Underestimating the pwer f Visin 3. Under cmmunicating the Visin 4. Permitting Obstacles t blck the new Visin 5 Failing t create Shrt Term Winds 6 Declaring Victry T Sn 7 Neglecting t Anchr changes firmly in the crprate culture 8 16
: Synergies: Cperatin and Teaming Cntracts Requirements If we are tgether nthing is impssible. If we are divided all will fail. Winstn Churchill ERPs Treasury Sftwares IHB IT Spnsrship/ Treasury Efficient LE Structures Tax Cunselling (Savings & Cst Avidance) Autmatic Bank Recnciliatin. Payment Factry KPIs Input Data 17
Thanks! Gracias! Obrigada! 18