Check out our powerpoint for Efficient Methods for Managing Global Cash in Today's Regulatory Regime where the expert speakers explored proven liquidity and intercompany cash management strategies, as well as tax/treasury collaborative initiatives that can help optimize global cash in an ever-changing complex environment.

1. When Cash Comes at a Cost:
Efficient Methods for
Managing Global Cash in
Today’s Regulatory
Regime
May 3rd, 2018th

2. Today’s Presenters
 JoseLuis Vilchis
Treasury Consulting Manger, NA
 Greg Person CTP
VP, Global Solution Consulting

3. 3
Today’s Discussion
 Review global trends influencing liquidity
 Analyze the impact to treasury
operations, risk and compliance
 Technology framework for planning and
compliance
 Strategy and global liquidity
enhancement adoption
 Beyond treasury implications – tax,
transfer pricing, legal entity structures
etc.

4. Global Events Impacting Corporate
Cash & Liquidity
4

5. A lot to manage…
 Mix of internal & external factors
impacting global cash management:
- Record M&A activity
- US tax reform
- Trade tariffs
- Political uncertainty
- Global sanctions
- Regulatory changes & restrictions on cross-
border liquidity
- Bank regulations
- Geopolitical tensions
- Currency volatility returning
 Greater uncertainty on trade, sales and
ultimately cash flow

6. Record M&A Activity
Background
 M&A activity at 17 year record
high through Q1’18
 3,774 deals totaling $891
billion
 Global trend
Treasury Planning Considerations
 Cash positions
 Adequate funding
 Compliance and controls
(payments, signers, etc)
 Currency exposure
 Leverage profile risk
 Non-relationship activity and
supportSource: MergerMarket

7. Tax Reform (Tax Cuts and Jobs Act)
Treasury Planning Considerations
 Impact to domestic / capital
allocation strategies
 P&L benefits to reduce interest
expense or increase interest income
 Insight to global cash positions
 Confident long-term cash planning
 Optimal balance to ‘leave’ OUS to
fund future local operations
Background
 $2.6 trillion of corporate offshore
cash balances
 One time tax of 15.5% on cash and
equivalents for repatriation
 Ability to repatriate large overseas
bank balances
 Large US companies starting to
repatriate large balances in Q1
 Corporate tax rate to 21%
Source: Fortune, EY

8. Looming Trade War
Treasury Planning Considerations
 Impact to key suppliers
 Cash flow implications
 Intercompany trade flows
 Local funding requirements
 Currency exposures
 Monetary policy changes create
new “trapped cash” scenarios
 Taking sides
Background
 Tit-for-tat tariffs
 US plan to enact 25% tariff on
1,300 Chinese goods, March 2018
 China plan to enact retaliatory
tariffs on about 106 US goods,
April 2018
 US imposed 25% tariff on steel and
aluminum tariffs, March 2018
Source: The Guardian, NY Times

9. Framework for Global Planning and
Compliance
9

10. Global insight, control & planning
CASH
MANAGEMENT
ERP(s) &
INTERNAL SYS
PAYMENT
WORFKLOW
TRADE & RISK
MANAGEMENT
Security
Connectivity
Continuity
Connected
TMS
Framework to consolidate treasury & financial data quickly, efficiently & securely
 Bank balances & transactions
 Cash flow forecasts (long-term)
 Intercompany loans / IHB
 Currency exposures
 Trade positions (internal / external)
 Counterparty limits
 Global subsidiary access data push/pull
 Treasury scorecards, KPIs, checklists
 Compliance monitoring and alerts

11. Now I See my Cash…but can I Access?
11
Tax - intercompany structure for cash mobilization
 Intercompany term notes
 Cash pooling qualification / intercompany facility
agreements
 Capital contributions
 Thin capitalization
 Retained earnings / intercompany dividends
FP&A/Treasury – cash planning for optimal
mobilization
 Cash flow forecast (short-term, medium-term, annual)
 Strategy plan (3 – 5 year)
 Acquisitions, divestitures, capital allocation planning
Treasury – cash mobility execution & enforcement
 Access rights to wire the cash
 Technology infrastructure
 Reconciliation and GL Posting
 Target balance enforcement
 Local bank credit line (backstop)
Tax, Corporate
Accounting, Treasury,
FP&A Collaboration

12. Corporate Liquidity Optimization
12
 Transforming bank, intercompany,
planning data into actionable
intelligence
 Ensuring adequate liquidity to fund
corporate investment strategies and
global business operations
 Mitigate operational risk following
acquisition, divestiture and/or global
market event

13. Poll Question
13

14. Global Cash Management
14

15. Treasury Reflections
Treasury Design Considerations
 Enhancing global visibility
 Effective Cash forecasting & segmentation
 Explore technologies that can boost accuracy
in management liquidity
 Well defined Transfer Pricing strategy
- To remeasure deferred tax liabilities and deferred tax
assets
 Having robust tax tools that can simulate the
impact and help their Tax functions make
planning decisions
Design Drivers
 Increasingly complex marketplace and
regulatory environment
 Increased pressure to support global business
 Need to view global account balances and
transactional information in real time
 Board expectation of high performing
operating model
 Impacts of other provisions resulting from the
TCJA
 Disruptive technology
 Increase scrutiny on Transfer Pricing

16. Poll Question
16

17. Poll Question
17

18. CASH
MANAGEMENT
PAYMENT
WORFKLOW
TRADE & RISK
MANAGEMENT
Technology Infrastructure to Manage Global Cash
SAP
Kyriba
Client
• AP
• AR
• GL
Bank Statements
Bank Reconciliation (GL)
Bank Postings (GL)
Forecast (AP/AR)
Payments (AP)
Cash/CC Collections - (AR)
Banks
1
2
3
4
5
6
1 Bank statements
2 Front office collections (Cash/CC)
3 Forecasts (AP/AR)
4 Payment Orders
6
Accounting file to GL bank
7
Bank reconciliation (GL vs bank statement)
5
Bidirectional
Inbound
Outbound
9
Payment / DD files
Foreign Exchange Rates
Intercompany Movements (GL)
7
8
9
Intercompany Movements
8
Foreign Exchange Rates
Payment Batches
10 Direct Debits
10
Direct Debits (AR)
Comprehensive technology framework to manage, mobilize and optimize global cash
and intercompany position globally

19. Analytics, Robotic Process Automation, Artificial Intelligence, Blockchain and
Cyber security are helping Treasurer Manage Cash in Complex Environments
Copyright © 2018 Accenture All rights reserved 19
Insight-driven strategic & digital Corporate Treasury
Intelligently automated Treasury
CFOs have the ability to automate an additional 50% to 60%
percent of the finance function by transitioning to an organization
that uses big data and analytics as a consistent routine thereby
focusing on delivering high added value
Already today, CFOs from high performing
businesses state that their role in the decision
making process has increased. The transition of
finance, and Treasury, to a more strategic role and
the rise of digital will have a significant impact on the
Treasury workforce, such as deploying Robotic
Process Automation (RPA)
Blockchain’s impact on Treasury
Database technology that allows multiple stakeholders to
confidently and securely share access to the same data &
information on real time payments, debt & investment
management, settlements & trade finance will consolidate &
evolve in the coming years and Treasury should begin assessing
its impact in order to achieve real time transactions and savings
Cyber secure and fraud less Treasury
As money continues to become digital, world devices
go mobile and data explodes, cybersecurity
continues to gain relevance in the corporate world.
Advanced analytics will begin being utilized to model
and detect irregular behavior to fence treasury
systems towards achieving zero fraud and
impenetrable Cyber security
Digital Treasury
Hub
Accenture research on the impact of artificial intelligence
in its various forms reveals that AI will enable economic
growth rates to double by 2035
Treasury workforce of the future

20. High Performing Operating Model
Examples
20

21. 21
Example 1: Fortune 10, multi-business Company
Actions from last meeting
Why it works
Business attributes
• Operating in 120+ countries…continued
expansion in emerging mkts
• Complex legal entity structure (6k+ LEs)
• 300+ERPs…ongoing simplification
• 10k+ bank accounts & 500+ banking
partners globally
• Ongoing M&A activity – acquisitions and
divestitures
Treasury strategy & vision
• Focus on funding the company & managing
risk via centralized model
• Committed to providing treasury services
to businesses with focus on customer focus,
simplicity & speed
• Deliver operational excellence by
leveraging expertise & technology
• Foster culture of leadership, collaboration
& accountability
• Daily visibility to company-wide cash
• Centralized derivative execution / risk
management
• Robust policy framework w/ clear
guidelines for businesses
• Integrated treasury system environment to
support reporting & analytics
• Local expertise where needed to address
regulatory requirements
Operating model principles
Treasury Organization Model
RTC – US (HQ), Dublin,
India, Japan
Local COE – Mexico, Brazil,
Australia, China
SSC– US, Hungary, China,
Mexico, Brazil, Saudi Arabia
• Robust governance and operating
control across all processes
• Infrastructure to manage funding,
cash, banking, liquidity, capital,
execution & interco requirements
• Focus on reporting and metrics
• Deep treasury expertise in key mkts
Key challenges
• Managing complexity with emerging
market expansion (e.g., trapped cash
in Africa)
• Addressing active M&A
program…onboarding & divesting
businesses
• Changing regulatory requirements
requires ongoing efforts (&
headcount) to ensure compliance

22. Example 2: Leading medical supplies & technology co.
Actions from last meeting
Why it works
Business attributes
• Operating in 60+ countries…significant
growth expected in China and Brazil
• Finco established in Lux
• Multiple ERPs…consolidation to SAP
ongoing
• 100+ banking partners globally
• Ongoing M&A activity – mostly acquisitions
• Significant cash portfolio outside on US
Treasury strategy & vision
• Maintain capital and liquidity to execute
company growth strategies
• Ensure effective use of capital to optimize
company returns
• Partner with business to achieve objectives
• Manage financial risk & maintain control
environment
• Attract and develop world class talent
• Corporate treasury operates as a global
unit with a core set of centrally managed
objectives, standards and processes
• Compliment global treasury with regional
treasury support designed to execute HQ
strategies and provide local expertise
• Continue to leverage (and expand) shared
service centers for standard operational
activities
Operating model principles
Treasury Organization Model
RTC – US (HQ), Luxemberg,
Local COE –Mexico, Brazil,
China
SSC– US, Chile, Belgium,
Singapore
• On the ground regional / local
country expertise to execute strategies
and support businesses
• Clear governance structure with well-
defined roles and responsibilities
• Demonstration of ability to drive
change in a manner that adds value to
overall organization…lots of
communication and collaboration
Key challenges
• Technology infrastructure is work in
progress…opportunities for
improvement in visibility / reporting
• Finding talent in specific local mkts
• Change mgmt associated with moving
processes to SSCs
• Implementing change when also
dealing with new business integration
22

23. Example 3: Fortune 100, industrial company
Actions from last meeting
Why it works
Business attributes
• Operating in 90+ countries…significant
growth expected in emerging mkts
• Predominantly SAP…though lots of instances
• Ongoing M&A activity – mostly divestitures
• Healthy cash portfolio
• Heavy investments in R&D, innovation and
technology
Treasury strategy & vision
• Achieve single, global standardized
processes for core treasury activities
• Leverage technology to drive process
efficiencies
• Focus on governance and controls in all
activities
• Corp treasury HQ drives treasury strategy
and decision making
• Follow the sun model between US and
Singapore to provide full coverage for most
treasury activities
• Leverage shared service centers to execute
all standard processes
Operating model principles
Treasury Organization Model
RTC – US (HQ), Spain,
Singapore, Brazil
Local COE –China SSC– Spain, India
• Sophisticated IT infrastructure to
drive treasury requirements
• Local market expertise to meet in
country business demands
• Strong bank relationships across all
regions
• Culture dominated by controls and
governance
• Mature SSC environment
Key challenges
• Managing / controlling cash in
countries not part of SWIFT
infrastructure (e.g., emerging
markets)
• Bureaucratic culture limits ability to
drive change in accelerated
timeframe
23

25. Recommended Reading…
Kyriba eBook: The Treasury
Mandate: A Strategic Partner for
Unlocking Business Value
DOWNLOAD>>
•Kyriba eBook:
Taking Treasury from
Reactive to Proactive
DOWNLOAD>>

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