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Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
Treasury as a Strategic Partner: Creating New Value in the Organization
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Treasury as a Strategic Partner: Creating New Value in the Organization

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Treasury is evolving into a strategic, internal business partner to its own organization, an increasingly relied upon role to help generate significant corporate value. The Corporate Treasurer, …

Treasury is evolving into a strategic, internal business partner to its own organization, an increasingly relied upon role to help generate significant corporate value. The Corporate Treasurer, through the adoption of best practices, has put themselves in a position to collaborate with other departments, adding meaningful insight and analysis that impact the organization’s financial results in a number of ways.

In this webcast, we will examine different examples of how the treasury team can put themselves in a position of influence and help deliver significant business value to the organization, including:

Mergers and Acquisitions
Forecasting economic change
Market expansion
Corporate governance
Supply Chain analysis
This webinar has been approved for 1.2 CTP/CCM recertification credits by the Association of Financial Professionals.



Featured Speakers:
Eric Erickson, Treasurer - DFC Global Corp. (formerly Dollar Financial Corp)

Eric Erickson has served as Senior Vice President and Treasurer since January 2011. Prior to joining DFC Global Corp, Mr. Erickson was employed with SunGard Data Systems, Inc. from 2001 to 2011. In his most recent position with SunGard as its Vice President and Treasurer, he was responsible for establishing and maintaining the company's global capital structure, managing rating agency and bank relationships, investor relations, planning and analysis, global cash management, liquidity and working capital for the company, as well as other duties. Prior to SunGard, he was Vice President Capital Markets at PNC Capital Markets, Inc. He also held the position of Director of Financial Services for CONRAIL. Mr. Erickson holds an MBA in Finance from Drexel University, a BS in Economics from Dickinson College, and is a Certified Treasury Professional (CTP).

Bob Stark, VP Product Strategy - Kyriba Corporation

Bob Stark is responsible for global product strategy and market development at Kyriba. Bob is a 14 year veteran in the treasury technology industry having served in multiple roles at Wall Street Systems, Thomson Reuters, and Selkirk Financial Technologies including product management and strategy. Bob is a regular guest speaker at treasury conferences and an active member of the Association for Financial Professionals.

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  • 1. KYRIBA WEBINAR: Treasury as a Strategic Partner:Creating New Value in the Organization
  • 2. Agenda 1) About DFC Global 2) Treasury as a Strategic Partner  Value Creation Hierarchy 3) Kyriba client DFC Global Treasury – as a Strategic Partner 4) Questions and Answers© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 2
  • 3. Speaker Panel: • Eric Erickson, Senior Vice President and Treasurer, DFC Global Corp (Kyriba Client) • Bob Stark, Vice President, Strategy, Kyriba Corporation© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 3
  • 4. Introduction - DFC Global Corp • International, diversified non-bank financial services company responsibly serving unbanked and under-banked consumers and small business owners. • $1B+ in Revenue, $300MM EBITDA, 6,000 employees • 1,450 retail outlets in North America and Europe. • Services include consumer lending, money transfer, money orders, tax filing services, check cashing, foreign exchange, and reloadable Visa and MasterCard debit cards. • ALICE (Asset Limited, Income Constrained, Employed) • ARTI (Asset Rich, Temporarily Illiquid) • Locations in the U.S., Canada and Europe (UK, Ireland, Poland, Czech Republic, Sweden, Finland, Spain)© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 4
  • 5. Introduction - DFC Global Corp • ALICE and ARTI demographic is large and growing; significant unmet global demand for financial services • More Than Half the World is Unbanked • ~70% of the workforce in the more developed countries is comprised of lower wage service sector workers(1) • More than half the world’s adult population do not use formal financial services to save or borrow(2) • Traditional banks cannot efficiently meet the needs of this demographic (fast approval of small loans, expedient check cashing, etc.) • Population growth is expected to place continued stress on natural resources, causing pricing pressure on basic necessities (energy, food, healthcare, etc.) • Collectively, resulting in decreased discretionary income, increasing demand for short-term credit1.Figures based on Organization for Economic Cooperation and Development (OECD), 2011,"National Accounts at a Glance”.2.Financial Access Initiative study, October 2009, “Half the World is Unbanked”.© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 5
  • 6. Introduction - DFC Global Corp Sweden: Canada: - 22 Pawn Lending Stores Finland: - 492 Financial Services Stores - Internet Lending - 13 Pawn Lending Stores - Internet Lending - Internet Lending Poland: - In-Home Lending Business - 20 Multi-Product Stores - Internet Lending Ireland: - 30 Financial Services Stores Czech Republic: - Internet Lending Spain: - 11 Pawn Lending and Gold Buying Stores U.K.: United States: - England – 493 Stores - 299 Financial Services Stores - Scotland – 47 Stores - Military Lending Services Business - Wales – 23 Stores - Internet Lending - Traditional and High-End Pawn Lending - Small Business Advances Note: Store count as of December 31, 2012. 10© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 6
  • 7. DFC Global – Treasury Introduction Metrics • # of countries serviced 9 • # of retail stores 1,450 • # of armor car deliveries monthly 11,288 • # of customers over the course of ~352,000 a year • # of banking relationships 42 • # of bank accounts 464 • # of monthly loan payments 236,089 (funding/collections) • amount of cash moving through $3.3 billion accounts annually© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 7
  • 8. DFC Global – Treasury Introduction Corporate Treasury Responsibilities 1) Liquidity/Access to the Capital Markets 2) Capital Structure Management 3) Global Cash Management 4) Risk Management 5) Banking & Financial Relationships 6) Partner with business units to maximize market/business opportunities© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 8
  • 9. Treasury as a Strategic Partner What is Treasury as a Strategic Partner • Achieving Strategic Partnership is a hierarchy • Requires: a) Operational efficiency b) Credibility c) Insight and abilities d) Leadership e) Technology f) The right company culture© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 9
  • 10. Value Creation Hierarchy Single point of data entry Treasury as a strategic partner • Eliminate re-keying errors • Improve accuracy and confidence in analysis Effective financial decisions Automate repetitive tasks • Shift time from processing to Global visibility analyzing • Achieve results more quickly Financial controls Streamline reporting • Automate and schedule preparation and distribution Productivity© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 10
  • 11. Value Creation Hierarchy Improve data integrity Treasury as a strategic partner • Eliminate reliance on ‘super’ spreadsheets • Standardize processes and Effective financial decisions procedures Controlled workflow Global visibility • Separation of duties • Reduce SOX audit costs Financial controls Centralized audit trails • Improve visibility and transparency Productivity • Better control of workflow© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 11
  • 12. Value Creation Hierarchy Cash Treasury as a strategic partner • Bank reporting • Cash positioning • Forecasting Effective financial decisions • Liquidity Financial positions • Investment Global visibility • Debt • Intercompany • Foreign exchange Financial controls Exposures • Foreign exchange • Interest rate Productivity • Counterparty • Supply chain© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 12
  • 13. Value Creation Hierarchy Cash Optimization Treasury as a strategic partner • Effective returns on cash • Ease of money movements • Efficient borrowing Effective financial decisions Treasury Structures • Centralized • Decentralized Global visibility • Hybrid Risk Management Financial controls • Financial • Liquidity • Counterparty Productivity • Operational© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 13
  • 14. Value Creation Hierarchy Build value through Treasury as a strategic partner collaborative business partnerships  Intelligence Effective financial decisions  Insight  Analysis Global visibility Examples • Shared service model • Forecasting economic change Financial controls • Sales enablement • M&A analysis • Market expansion Productivity • Business Intelligence© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 14
  • 15. How treasury is becoming a strategic partner At DFC Global, Treasury is: • Strategic Partner to Senior • Capital Allocation, Capital Structure Management and the Board Activity, M&A • Strategic Partner to Critical Service • Investment Community Providers • Rating Agencies • Armored Car Carriers • Credit Banks • Strategic Partner to Broader Finance • Centralization & Standardization of Department Company-wide cash management and payables processing • Strategic Partner to Operations and • Web-based and Mobile Payments Product Development Strategies© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 15
  • 16. How treasury is becoming a strategic partner At DFC Global, Treasury is: • At the start of a journey… • Treasury is:  Highly fragmented  Manually intensive  Dependent on spreadsheets, e-mail and multiple bank systems • Decentralized treasury structure:  Bank relationships, account structures managed at the regional level  Limited opportunity to leverage DFC Global network, purchasing power Technology seen as an enabler, to help drive towards the solution© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 16
  • 17. How treasury is becoming a strategic partner At DFC Global, Treasury is: • Moving towards a Shared Service model • Objectives:  Improve overall liquidity management  Gain operating efficiencies  Reduce costs  Centralize policy and management expertise  Enhance financial controls • Result: More effective and efficient treasury environment  Significantly enhanced internal controls  Reduced processing and accounting errors In a better position to be a strategic partner© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 17
  • 18. How treasury is becoming a strategic partner Current State Future State  Decentralized – Cash managed and  Centralized/Regionalized – Cash Liquidity processed locally: managed out of Regional SSC‟s. Management  Inefficient use of cash  More efficient use of cash  Intercompany balances with multiple  Intercompany balances concentrated counterparties with “corporate” entities  Unnecessary revolver draws  Net interest expense and large cash balances reduced  Treasury is manually intensive and  Automated and efficiency treasury Operational inefficient :  Global Cash Visibility Efficiency  Manual login to bank websites  Improved accuracy & confidence  Manual entry into excel spreadsheets  Less time taken to manage cash and  Too much time & accuracy risk treasury  Increased costs:  Implementing SSC model will: Costs/  Each BU performing redundant,  Consolidate Treasury management Resources manual treasury activity activity  DFC Global not leveraging global  Freeing up resources within the BU‟s purchasing power with vendors/ banks to focus on running their business  Overall cost savings  Purchasing power will be leveraged.© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 18
  • 19. How treasury is becoming a strategic partner Current State Future State  Global treasury management globally run  Treasury run on single global SaaS/Cloud Technology on excel spreadsheets with bank treasury workstation balances being pulled from 20+ different  Eliminating manual effort banking platforms  Reduced time to achieve cash visibility  Eliminate dependency on Excel  Fragmented  Centralized Policy & Mgmt  Due to local „silo‟ management  SSCs facilitate standardization of Expertise  Non-standard implementation of policies and procedures processes  Best-in-class operation w/tighter  Increased risk management  Reduced risk  Fragmented  Centralized Controls & SOx  Processes non-standard  Staffing of treasury management Compliance  Segregation of duties problematic concentrated at SSC due to small staff at local operations  Adequate staffing -> proper segregation (cited as SOx violation) of duties  SOx audit to review multiple BU‟s  Treasury technology helps enforce annually (higher costs)  Reduced audit and SOx expenses© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 19
  • 20. How treasury is becoming a strategic partner Global Cash Structure – Current State FUNDING FUNDING FUNDING Revolver Borrower Danske HOP USD, CAD, GBP SEK EUR Express Sefina MEM MCE S&R TMS Poland Sefina Finance ($17.0 in £) ($10.0 in £) ($1.1 in £) ($0.3 in £) ($51.6 in £) ($1.1 in PLN) Sweden Finland ($3.4 in SEK) ($1.6 in €) DFG DFS NMM Risicum SE Czech * Cash balances as 06/30/12 ($35.2 in $) ($0.2 in $) ($96.3 in C$) ($5.7 in € ($0.0 in ($0.5 in €) and SEK) CZK) Current Structure • Other than organic cash flow, funding comes from central/corporate facilities • Conversely, cash is not centrally pooled - rather managed/accounted for locally • Intercompany balances are not centralized…sub to corporate, sub to sub Opportunity/Necessity • Cash needs to be pooled/centrally managed to better service debt facilities • The structure and technology to manage cash globally needs to be improved/enhanced • Intercompany balances need to be centralized…one counterparty per entity© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 20
  • 21. How treasury is becoming a strategic partner Global Cash Structure – SSC Future State FUNDING, Revolver Borrowers, USD, CAD, GBP, EUR European Pool UK Pool PMFA – PMFA – PMFA – PMFA – DFG PMFA – EUR Entity PLN Entity - CZK Entity - NMM - $35.4 in UK Pool Master Funding Account (PMFA) – DFUK - $80 in £ - $6.2 $1.1 $0.0 $96.3 in C$ USD Express EUR PLN CZK NMM USD MEM Finance MCE S&R TMS ($ 0 Subs Subs Subs Subs (£ 0) (£ 0) (£ 0) (£ 0) (£ 0) CAD) ($ 0) (€ 0) (0 PLN) (0 CZK) AUTOMATIC TRANSFERS – FULL ZBA STRUCTURE FUNDING, Danske, SEK FUNDING, HOP, EUR Sefina Sefina Sweden Finland ($3.4 in SEK) ($1.6 in €)© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 21
  • 22. How treasury is becoming a strategic partner Treasury Management – Current State – Resources, Technology, Controls & Policy Redundant Resources and Technology Express Sefina MEM Finance MCE S&R TMS Poland Sefina Finland Sweden Berwyn DFG DFS NMM Risicum SE Czech Currently, while there is Corporate Treasury oversight of cash globally, each business unit manages cash daily – develops cash position, performs accounting and reconciliation functions • Technology – predominantly internet based banking and excel program (ReconNet for NA reconciliations) • Resources – each BU performs these cash management, accounting and reconciliation functions. While each BU simply absorbs this activity, there is opportunity via a SSC to standardize operations and reduce costs© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 22
  • 23. How treasury is becoming a strategic partner Treasury Management – SSC Future State – Resources, Technology, Controls & Policy A single, global SaaS-based technology for Treasury Management (Cash, Accounting, Reconciliation) will reduce data key and spreadsheet errors, maintain audit logs and ensure segregation of duties. North American SSC - Berwyn European SSC – Location TBD DFG DFS NMM S&R TMS Poland Sefina Sweden Sefina Risicum SE Czech Finland Express MEM Finance MCE Resources are shared, controls improved, corporate policies implemented, # of locations and processes to be audited reduced.© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 23
  • 24. Summary • Achieving strategic partnership is a journey; can’t get there until you have success at prior levels • Treasury Structure is important!  For DFG Global, implementing a SSC improved control and visibility into cash and treasury  Also increased efficiency leading to more opportunities for strategic contribution© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 24
  • 25. White paper – Treasury as a Strategic Partner Download our white paper and find out how your treasury team can deliver significant business value to the organization, including: • Merger and acquisition decision making • Forecasting economic impact to the business • Market expansion • Corporate governance • Supply Chain performance Learn about how to make your treasury a strategic partner to the organization today! Download the whitepaper >>© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 25
  • 26. White paper • Missed our live webinar? No worries - you can always play back the recording from the convenience of your desk! • Want to find out how Kyriba can help your treasury become a strategic partner within your organization? Schedule a quick call and we’ll be happy to address your questions. 1-855-KYRIBA-0© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 26

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