Treasury as a Strategic Partner

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Detroit Treasury Management Conference 2013
May 9, 2013, Detroit, MI
Dory Malouf, Treasury Cash Operations Manager - PulteGroup and Bob Stark, Vice President of Strategy - Kyriba
In this presentation, PulteGroup and Kyriba will explore the hierarchy of treasury technology benefits ranging from treasury automation, reduced operational risks, more effective treasury decision making, and the ability to provide strategic input and analysis to senior management.

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Treasury as a Strategic Partner

  1. 1. Treasury as aStrategic PartnerPresented byDory Malouf Bob StarkTreasury Cash Operations Manager Vice President, Strategy
  2. 2. © 2013 Kyriba Corporation. All rights reserved. 2PRIVILEGED & CONFIDENTIAL.Today’s Topics1) Introduction to PulteGroup2) Treasury as a Strategic Partner Value Creation Hierarchy3) PulteGroup Treasury – as a Strategic Partner4) Tips and Tricks to become more strategic
  3. 3. © 2013 Kyriba Corporation. All rights reserved. 3PRIVILEGED & CONFIDENTIAL.Introduction - PulteGroup• PulteGroup has been providing theAmerican Dream of homeownership tofamilies for 60 years.• What started as a single home built andsold by the entrepreneurial spirit of an 18-year-old Bill Pulte, has grown into theindustry’s sole multi-brand homebuildingcompany with the ability serve customersin all phases of life.• Today, PulteGroup operates inapproximately 60 markets throughout thecountry.
  4. 4. © 2013 Kyriba Corporation. All rights reserved. 4PRIVILEGED & CONFIDENTIAL.• # of banking relationships• # of bank accounts• Department head-count• Number of Treasury Workstationimplementations• Cash balance as of Q1 ’13PulteGroup – Treasury Introduction288553$1.6BTreasury Metrics
  5. 5. © 2013 Kyriba Corporation. All rights reserved. 5PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerCorporate Treasury Responsibilities :1) Liquidity/Access to theCapital Markets2) Capital StructureManagement3) Cash Management4) Banking & FinancialRelationships5) T&E Card programmanagement6) Mergers & Acquisitions7) Competitor Analysis8) Economic Analysis9) Stock Option programadministration10)Unclaimed fundsrecovery
  6. 6. © 2013 Kyriba Corporation. All rights reserved. 6PRIVILEGED & CONFIDENTIAL.Treasury as a Strategic PartnerWhat is Treasury as a Strategic Partner• Achieving Strategic Partnership is a hierarchy• Requires:a) Operational efficiencyb) Credibilityc) Insight and abilitiesd) Leadershipe) Technologyf) The right company culture
  7. 7. © 2013 Kyriba Corporation. All rights reserved. 7PRIVILEGED & CONFIDENTIAL.ProductivityFinancial controlsGlobal visibilityEffective financial decisionsTreasury as a strategic partnerBuild value throughcollaborative businesspartnerships Intelligence Insight AnalysisExamples• Shared service model• Forecasting economic change• Sales enablement• M&A analysis• Market expansion• Business IntelligenceValue Creation Hierarchy
  8. 8. © 2013 Kyriba Corporation. All rights reserved. 8PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerAt PulteGroup, Treasury is:1) Liquidity/Access to theCapital Markets2) Capital StructureManagement3) Cash Management4) Banking & FinancialRelationships5) T&E Card programmanagement6) Mergers & Acquisitions7) Industry & CompetitorAnalysis8) Stock Option programadministration9) Unclaimed fundsrecovery
  9. 9. © 2013 Kyriba Corporation. All rights reserved. 9PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerBuilding to Strategic Input:• We focused heavily on improving efficiencyAutomating ‘the easy stuff’ freed time and improvedvisibility.Helped deliver better analysis, insight, and intelligence.Freed time, enabling assumption of other responsibilities• Example: acquisition of CentexCentex was similar size as PulteExtremely manualEmphasis on bank and process rationalization
  10. 10. © 2013 Kyriba Corporation. All rights reserved. 10PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerExamples of Strategic Partnership at PulteGroup:1) Competitor analysis2) Economic Analysis3) Fraud prevention4) Treasury efficiency5) Benchmarking6) Treasury Performance7) Unclaimed funds recovery
  11. 11. © 2013 Kyriba Corporation. All rights reserved. 11PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerExamples of Strategic Partnership at PulteGroup:1) Competitor analysis• Using Bloomberg for additional data.• Creates margin for the organization.• Delivers to board.• How do our KPIs compare to our peers.• Part of the answer to global question “Is our strategyworking”
  12. 12. © 2013 Kyriba Corporation. All rights reserved. 12PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerExamples of Strategic Partnership at PulteGroup:2) Economic analysis• Review economic data, chart trends and make associationsthat offer meaningful business impact.• Pulte treasury does this because they have establishedthemselves as financial experts within the company
  13. 13. © 2013 Kyriba Corporation. All rights reserved. 13PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerExamples of Strategic Partnership at PulteGroup:3) Fraud prevention• Treasury is able to manage the accounts and the signatories,as well as the process to open and close accounts.• Because of this control, they are able to react immediately.• Another example is positive pay (payee and traditional).• It’s not just about implementing this type of service, it’sbeing able to analyze how well it is working.
  14. 14. © 2013 Kyriba Corporation. All rights reserved. 14PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerExamples of Strategic Partnership at PulteGroup:4) Treasury efficiency• Efficiency saves the company money. Do we need all those bank accounts T&E program at the highest possible rebate• More efficiency -> less cost.• Not just about productivity of human resources; alsoimprove effectiveness of financial decisions
  15. 15. © 2013 Kyriba Corporation. All rights reserved. 15PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerExamples of Strategic Partnership at PulteGroup:5) Benchmarking• Measure and analyze the total fees for each bank.• What’s the cost of the relationship including debt and inv.• Banks love it; builds a mutually beneficial relationship.• Pushes Pulte to spread dollars around evenly.
  16. 16. © 2013 Kyriba Corporation. All rights reserved. 16PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerExamples of Strategic Partnership at PulteGroup:6) Treasury performance• Measuring against other treasuries.• Thirst for best practices, but with an eye to increasingcompany value (rather than best practices for the sake ofbest practices)
  17. 17. © 2013 Kyriba Corporation. All rights reserved. 17PRIVILEGED & CONFIDENTIAL.How treasury is becoming a strategic partnerExamples of Strategic Partnership at PulteGroup:7) Unclaimed funds recovery• 2012 Recovered a total of $424K• YTD 2013 Recovered a total of $69K
  18. 18. © 2013 Kyriba Corporation. All rights reserved. 18PRIVILEGED & CONFIDENTIAL.Tips and Tricks to becoming more strategicInsightful hints include:• Pay attention to your technologyPulte has used three different treasury workstations; all arenot built the same• Get InvolvedBuild relationships that get you “In the room”• IdeasDon’t be shy, put your idea out there regardless of how smallor big it might be.• You can never automate too muchYou will still have a job, just a better one.
  19. 19. © 2013 Kyriba Corporation. All rights reserved. 19PRIVILEGED & CONFIDENTIAL.Summary• Achieving strategic partnershipis a journey; can’t get thereuntil you have success at priorlevels• For PulteGroup, improvingautomation and establishingcredibility “gave permission to be strategic”• Created significant business value, helping bothcompany and treasury team members
  20. 20. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 20Questions? Contact Kyriba today…*Visibility*Email us - treasury@kyriba.comCall 1-855-KYRIBA-0Or email Bob Stark directly - bstark@kyriba.com

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