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Nordea Treasury 2017 report - A bright future for the corporate treasury

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What is the future for the corporate treasury? Is it heading towards becoming “one terminal and a clerk” or can it look forward to taking on a more strategic role and a seat at the top table? To find out, we surveyed 82 large corporate treasuries and interviewed more than 60 CFOs and treasurers. Our Treasury 2017 report paints a clear picture of where the treasury stands today and where it expects to be in two to three years.

Read more and download report: insights.nordea.com/go/treasury-2017

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Nordea Treasury 2017 report - A bright future for the corporate treasury

  1. 1. Nordea Treasury 2017 survey What is the future of the corporate treasury?
  2. 2. With companies focusing on leaner operations, is the treasury set to become “one clerk and a terminal”?
  3. 3. The future of the corporate treasury From back-office function to strategic lead A survey of large corporate treasuries and their objectives until 2017 We surveyed 82 corporate treasuries and spoke with more than 60 CFOs and treasurers to find out where the treasury stands today... ...and where it will be by 2017.
  4. 4. We found that the treasury’s role has actually become more diverse...
  5. 5. It is increasingly taking on an internal advisory role. 59% 31% 46% 46% of respondents said providing advice is a very important part of their role today. 59% of respondents said providing advice would be very important in two to three years. Past Present Future
  6. 6. And it is taking a lead on strategic decisions around funding and risk. 48% 26% 35% Just 26% of respondents said participating in decision making was very important two or three years ago. 48% of respondents said participating in decision making will be very important by 2017.Past Present Future
  7. 7. But its transactional role is still as important as ever. 62%62% 60% 62% of respondents said execution was very important two to three years ago. 62% of respondents said it will still be very important in two to three years. Past Present Future
  8. 8. A vital business resource providing strategic advice on funding and risk, while handling transactions efficiently. By 2017, the treasury will be:
  9. 9. The key to the success of the treasury is making things work in terms of funding and cash management. But you can try to make this as efficient as possible. And that then gives you the scope to put more resources into qualified strategic support to management. That is when you can really start adding value. Per Norman Head of Treasury and Risk Management BillerudKornäs “ ” And, at many companies, it already is.
  10. 10. How is the treasury changing to meet these growing expectations?
  11. 11. To deliver greater efficiencies and oversight, large corporates are looking to centralise their treasuries. Centralising the group’s cash and liquidity is the treasury’s top priority over the next three years. 65% of treasuries are using cash and liquidity centralisation as a KPI. 65% Centralisation as a KPI
  12. 12. Treasuries are also realising efficiencies by automating routine processes. 76% of respondents said the use of electronic platforms is driving increased transaction intensity. 76% Technology stimulates activity
  13. 13. The largest corporates are looking to rationalise their banking relationships, to give them greater oversight of their finances.
  14. 14. If they can deliver the necessary efficiencies, treasuries can enter a virtuous cycle. Lean, efficient systems free up time and provide the necessary oversight to add strategic value. Informed strategic decisions help drive greater efficiencies.
  15. 15. How can you get there?
  16. 16. Be prepared for centralisation. It can mean a significant shake-up to staffing and working practices – and bank relationships. Talk to people who have already been through the process.
  17. 17. We are encouraging corporates to hedge against the real risks they face rather than routinely “parrying noise” on a quarterly or monthly basis. Think outside the box when it comes to managing risk. 68% of respondents expect to be hedging more interest rate risks over the next two to three years. Treasuries also expect to hedge more against FX, commodities, income on liquidity and credit risk. 68% Increase hedging of interest rates
  18. 18. Be sure that you have the right capabilities and competencies to advise on the big risks. If they are not available in-house, look to work in partnership with your core banks to limit exposure.
  19. 19. To find out more about the treasury’s key objectives today and over the next two years, download the Nordea Treasury 2017 report. insights.nordea.com/go/treasury-2017 The future of the corporate treasury From back-office function to strategic lead A survey of large corporate treasuries and their objectives until 2017

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