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Groupon Treasury :
Adventures in Cash Management
Best Practices
Headwinds for Today’s Financial Professional
Financial leaders are challenged:

Market volatility and uncertainty has
forc...
A New Approach
Proactive | Treasury | Management
Optimize Your Cash

+

Manage Your Risk

Perfect your treasury
operation
...
Proactive | Treasury | Management

Cash is the lifeblood
of the organization.

Anticipate, plan and
initiate change rather...
Speaker Bio
Phil Mattes - Treasury Strategist, Kyriba
•

Phil has over 15 years of consulting and corporate experience in ...
Agenda
•

Groupon Overview

•

Cash Management
•

Security and Control

•

Banking Infrastructure

•

Account Visibility

...
Groupon Overview
•

Founding Fathers: Andrew Mason (The Idea) and Eric Lefkofsky (The $$)

•

Established in Nov 2008 – of...
Groupon Overview

© 2013 Kyriba Corporation. All rights reserved.

PRIVILEGED & CONFIDENTIAL.

8
Value Creation Hierarchy
Liquidity Optimization
Cash Forecasting
Account Visibility

Banking Infrastructure
Security and C...
Value Creation Hierarchy
Liquidity Optimization

• Rationalize number of banking
partners

Cash Forecasting

• Reduce numb...
Value Creation Hierarchy
Liquidity Optimization
Cash Forecasting

• Automate connectivity to
banks for electronic statemen...
Value Creation Hierarchy
• Executive support

Liquidity Optimization
Cash Forecasting
Global visibility

Banking Infrastru...
Value Creation Hierarchy
Liquidity Optimization

• More strategic investment of
cash

Cash Forecasting

• Repayment of deb...
Q&A
Kyriba Contacts
Phil Mattes
Treasury Strategist | Kyriba
Phone: (312) 909-1707
phil@kyriba.com
Phil Dregalla
Enterprise Sa...
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Northeastern Ohio Treasury Management Association November 13, 2013, Independence, OH Phil Mattes, Treasury Strategist, Kyriba: Groupon Treasury - Adventures in Cash Management Best Practices While Building a New Treasury Department

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Northeastern Ohio Treasury Management Association November 13, 2013, Independence, OH Phil Mattes, Treasury Strategist, Kyriba: Groupon Treasury - Adventures in Cash Management Best Practices While Building a New Treasury Department

  1. 1. Groupon Treasury : Adventures in Cash Management Best Practices
  2. 2. Headwinds for Today’s Financial Professional Financial leaders are challenged: Market volatility and uncertainty has forced sensitivity towards liquidity  Shareholders demand growth  Staying ahead of competitors requires agility and investment  Global expansion adds complexity and risk  Increasing regulatory compliance: new regulation every 22 days [Financial Times, 2013]  © 2013 Kyriba Corporation. All rights reserved. | PRIVILEGED & CONFIDENTIAL 2
  3. 3. A New Approach Proactive | Treasury | Management Optimize Your Cash + Manage Your Risk Perfect your treasury operation Protect organizational value = Work Your Capital Create business value • Establish cash certainty • Execute risk strategy • Gain strategic insight • Make effective financial decisions • Improve financial control / avoid fraud • Accelerate business growth • Enable and execute payments • Deliver compliance • Maximize financial returns © 2013 Kyriba Corporation. All rights reserved. | PRIVILEGED & CONFIDENTIAL 3
  4. 4. Proactive | Treasury | Management Cash is the lifeblood of the organization. Anticipate, plan and initiate change rather than react to events. © 2013 Kyriba Corporation. All rights reserved. | PRIVILEGED & CONFIDENTIAL Strategic execution. 4
  5. 5. Speaker Bio Phil Mattes - Treasury Strategist, Kyriba • Phil has over 15 years of consulting and corporate experience in treasury. He began his treasury career as a Treasury Analyst at the New York City headquarters of the global oilfield services firm, Schlumberger. He then spent more than 8 years with the corporate treasury consulting practice of PricewaterhouseCoopers. Feeling the pull of the corporate world again, he joined CareerBuilder LLC in Chicago as the Director of Treasury to establish their corporate treasury function. Mostly recently, Phil was the Global Director of Treasury for Groupon Inc. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 5
  6. 6. Agenda • Groupon Overview • Cash Management • Security and Control • Banking Infrastructure • Account Visibility • Cash Forecasting • Liquidity Optimization © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 6
  7. 7. Groupon Overview • Founding Fathers: Andrew Mason (The Idea) and Eric Lefkofsky (The $$) • Established in Nov 2008 – offshoot of “The Point” social organizing website. • Growth: In Dec 2010, Forbes estimates Groupon will reach $1 billion in sales faster than any other company and Google’s $6 billion offer rejected. Multiple acquisitions resulting in operations in 45 countries. • Challenges – Easy to copy business model, over sold merchants, accounting missteps (revised S1 statements, multiple revenue restatements), failed Super Bowl commercials, failed China launch, manual processes, immature systems, delayed system integrations, executive turnover, etc. • Cash Flows – Merchant payment terms US vs Intl. Nov 2011 IPO raises $700 million. • Culture – Entrepreneurial, chaotic, fast paced, informal, quirky CEO © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 7
  8. 8. Groupon Overview © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 8
  9. 9. Value Creation Hierarchy Liquidity Optimization Cash Forecasting Account Visibility Banking Infrastructure Security and Control © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. • Maintain database of signer and bank account information • Rationalize signers and directors • Use bank products that enhance security (positive pay, etc.) • Centralize security administration • System enforced delegation of authority • Policy documents clearly outline roles and responsibilities 9
  10. 10. Value Creation Hierarchy Liquidity Optimization • Rationalize number of banking partners Cash Forecasting • Reduce number of bank accounts Account Visibility • Optimize services • Automate analysis of fees Banking Infrastructure • Conduct bank reviews on a periodic basis Security and Controls © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 10
  11. 11. Value Creation Hierarchy Liquidity Optimization Cash Forecasting • Automate connectivity to banks for electronic statements • Leverage abilities of a treasury management system To consolidate information Account Visibility Banking Infrastructure Security and Controls © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. To assign reporting categories to transactions • Make it easy for executives to get the information they want (dashboards, executive summaries, etc.) 11
  12. 12. Value Creation Hierarchy • Executive support Liquidity Optimization Cash Forecasting Global visibility Banking Infrastructure Security and Controls © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. • Collaboration with information sources • Communication of roles, responsibilities and process • Information systems/integration to support the process • Measurement of accuracy and feedback to sources. • Incentives for improvement 12
  13. 13. Value Creation Hierarchy Liquidity Optimization • More strategic investment of cash Cash Forecasting • Repayment of debt • Maximization of earnings credit Account Visibility • Use of supply chain discounts Banking Infrastructure • Overall improved ability to plan future uses of cash. Security and Controls © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 13
  14. 14. Q&A
  15. 15. Kyriba Contacts Phil Mattes Treasury Strategist | Kyriba Phone: (312) 909-1707 phil@kyriba.com Phil Dregalla Enterprise Sales Executive | Kyriba Phone: (412) 260 3385 pdregalla@kyriba.com © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 15

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