Cuevas Corporate Banks Alstom


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BF Madrid 2013

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Cuevas Corporate Banks Alstom

  1. 1. Corporates & BanksSWIFT Business Forum – Madrid 2013 José-Carlos Cuevas Regional Treasurer Europe ASSET VP & EACT Officer 5 March 2013
  2. 2. Three main activitiesSWIFT 2013
  3. 3. ALSTOM Corporate Funding & Treasury Scope covered Funding and Treasury is a support function part of Corporate Finance. Its main responsibilities are to provide the funding for the Group (for acquisitions for example) and to ensure that each and every unit of the Group has the adequate financial means (cash, FX, Bonds and Guarantees…) to perform its activity, as such Corporate Treasury acts as an internal bank. Corporate Treasury regroups experts located in Levallois or in one of our 6 regions, close to the businesses. In addition to its support function, Funding & Treasury is also directly responsible for the Group financial P&L and for the financial debt/cash. Regional Treasuries Regional Treasuries are now part of Corporate Treasury 6 Regions; Europe, N. America, S. America, Africa Middle East, Asia & China Move from a Corporate Treasury / Country Finance / Country Treasuries/ Units organisation to a direct Corporate Treasury / Units organisation Corporate Treasury presence in the time zone Mutualisation at the region level of country treasury teams and experts Process and tools harmonisation to remove manual tasks and avoid parallel workBank relationships - 2013
  4. 4. Treasury as a profit center  Treasury has its word to say to improve the global profitability of the company  Actions on financial cash management: − Decreasing cost of funds − Increasing investments profitability − Reducing third party cash  Actions on operating cash management: − Netting & matching policies − Transactions fees − Fixing bank negotiation guidelines − Looking for the most efficient means of payment  Actions on headcount:: − Efficiency − Talented people − Reducing administrative workload − OutsourcingRe-boost treasury function
  5. 5. RFP- Key Objectives The purpose of a RFP should be to secure the best combination of effective, economical, innovative and well-managed banking services, products and technology to support cash management, payroll, accounts receivable and accounts payable activities. In addition to evaluating and improving the existing banking capabilities and services, a key objective of this RFP is to also explore ways to integrate cash management activities between different countries. Key objectives of this RFP are as follows: 1) Improvement of the banking structure to gain better efficiency and reduce accounts (if appropriate) 2) Automation of cash pooling and positioning with the utilization of a third party treasury work station (Intra day MT942 and prior day MT940 must be available) 3) Reduction of banking fees 4) Selection of a banking provider with strong customer focus, regular client communication (including on-site visits), and advisory capabilities Banks bidding on these activities should understand that Corporate’s goal is to consolidate banking relationships where possible. Should a single bank provider prove not to be optimal, then a multiple bank solution will be considered.Bank relationships - 2013
  6. 6. Former treasury work flow Balancing transfers 12:00 statements Bank T.M.S, Cash-out E.R.P.Re-boost treasury functionSWIFT 2013
  7. 7. Cash Management E2E Automated Clearing House Ordering Beneficiary Customer’s Customer’s Financial FIN Cat 1-2 & XML Bulk Payments Financial 2 Institution Institution XML Cash Management 4 5 3with proprietaryXML Payment Standardised content standards and FileAct Management XML Cash Initiation Management XML Cash End-to-end STP 1 Ordering Beneficiary Customer customerGestión de la Tesorería
  8. 8. Zero Balance cash pool (one cash pool per currency) On balance SEK Currency Top Accounts EUR All cash in & out movements take place on these bank accounts USDPhysical transfer of funds at endof day to put accounts to zero On balance On balance On balance SEK SEK SEK Transaction EUR EUR EUR Accounts USD USD USD
  9. 9. Balance Netting - multi-currency cash pool Multi-currency credit facility in EUR EUR Master account (cover control) Currency top DKK EUR SEK NOK accounts (legal) Summary account Transaction DKK EUR SEK SEK NOK accounts DKK EUR SEK NOK Currency summary accounts (optional) DKK DKK EUR EUR SEK SEK NOK NOK Transaction accountsSWIFT 2013
  10. 10. About SEPA The regulation • SEPA aims to establish a single market for retail euro payments by overcoming the technical, legal and market barriers stemming from the period prior to the introduction of the single currency. This will allow customers to make euro payments throughout Europe as easily, securely and efficiently as they do today within their own countries. Once SEPA has been completed, there will no longer be any differentiation between national and cross-border euro payments: they will all be domestic • 20 December 2011; Commissioner Michel Barnier welcomes agreement by Council and Parliament establishing SEPA migration end-dates • 28 February 2012; Council adopts regulation on credit transfers and direct debits and sets 1 February 2014 as the migration deadline for credit transfers and (in respect of most requirements) for direct debits.SWIFT 2013
  11. 11. About SEPA Countries involved • SEPA consists of the 27 EU countries (including the Euro 16 countries) and the additional 3 EEA, European Economic Area, countries (Iceland, Norway, Liechtenstein), Switzerland & Monaco. Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Italy Latvia Liechtenstein Lithuania Luxembourg Malta Monaco Netherlands Norway Poland Portugal Romania Slovakia Slovenia Spain Sweden Switzerland United KingdomSWIFT 2013
  12. 12. About SEPA Alstom impacts / objectives • Alstom countries & offshore bank accounts under SEPA umbrella need to be compliant for February 2014 - It affects ALSTOM in 24 countries (12 € countries) • As Alstom doesn’t use SEPA Direct Debit, “Be compliant” means: 1. Adequate the content of the ERPs & Payroll tools databases • Make sure that BIC & IBAN data exist for all suppliers and employees. 2. Use the right layout to manage payments : SEPA CT (basically XML ISO 20022 pain 3) • The format is acceptably fixed and tested with most of our banks and has been piloted via the e- banking project for certain group ERPs.SWIFT 2013
  13. 13. SEPA Project risks  Banks availability regarding tests as far as all their Corporate customers will be asking for the same at the same time  SEPA compliance strongly depends on implementing some key ERPs in some countries. A delay in these project will strongly impact SEPA project  Some domestic tools could not have BIC and IBAN fields in their databases  Some domestic tools could not be able to manage SEPA CT layout (XML ISO20022 pain 3) – e.g. SAP release 4.6 no longer support by the editor  Some existing banks are not ALSTOM friend banks and we will need to change them before SEPA go live.  New domestic Central Bank reports to be implemented before SEPA end date for cross border transactions (Portugal, Germany, Spain)  Some BICs and IBANs could change during the project because of banks merging projects (new check just before go live)SWIFT 2013
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