1. SWIFT for Corporates
Streamlining cash and trade
management
Franck de Praetere
Head of Payments and Trade Markets
Damien Dugauquier
Commercial Manager, Corporates

2. Agenda
• Setting the scene (20’)
+ Regional and local context on cash and trade
• Speed-meetings (3 times 10’)
+ Trade: Bank Payment Obligation
+ SWIFT for Corporate: using SWIFT from a corporate perspective
+ SWIFT for Corporate: using SWIFT from a bank perspective
• Panel discussion (25’)
+ Meg L. San Pedro: Lafarge Group Treasury
+ Alan K. Wong, Bank of America Merril Lynch
• Wrap-up
2

3. Year on Year quarterly growth rates
SWIFT as a barometer of the economy
GDP and SWIFT Payments show a similar trend
* OECD Europe Q4 2010 is provisional
Source: SWIFT, OECD
3
YTD Growth for PH: 10.5%

4. Philippines : SWIFT trade and payment corridors
4
20%
11%
10% 10% 10%
4% 4%
3% 3% 2%
17%
9%
0%
4%
14%
8%
6%
7%
6%
1%
0%
5%
10%
15%
20%
25%
Customer payments Letters of credit
▪ 2/3 % of payments are intra-regional
▪ 1/3 of import from CN/HK
20% of customer payments
sent from PH end to a
beneficiary in China

5. Correspondent banks
Account receivable
Treasury management
Document handling
• Reporting: Account statements
• BPO/TSU, MT798
Correspondent banks
Account payable
Treasury management
Trade Finance
• Payment initiation
• FX, money markets confirmation
• Reporting: Account statements
• BPO/TSU, MT798
What is SWIFT for corporate?
5

6. 6
The economic shift accelerates internationalisation of
Asian corporates
0
200
400
600
800
1000
1200
1400
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Numberofcorporategroups

7. Per corporate group turnover & banking partners
Corporates by
annual turnover (USD)
Corporates by
number of banking partners
$1-10Bn
28%
>$10Bn
31%
<$1Bn
41%
>20 banks
13%
10 to 20
banks
21%
5 to 9
banks
29%
<5 banks
37%
>$10Bn
30%
$1-10Bn
34%
<$1Bn
36%
63% of SWIFT-connected corporates
deal with 5 banks or more
64% of SWIFT-connected corporates
have a turnover >$1Bn
7
Corporate group connectivity

8. Message Type (FIN) / Business Area (FileAct) - Live 2013
Traffic Overview
Top 25 MTs
# live MT messages
sent & received by
corporates
Distribution
940 26,148,950 43%
942 14,715,363 24%
103 4,743,167 8%
101 4,473,263 7%
900 4,391,724 7%
300 2,467,653 4%
199 1,124,713 2%
910 771,371 1%
515 394,879 1%
535 394,168 1%
210 350,217 1%
998 308,478 1%
950 195,469 0%
202 144,973 0%
941 138,229 0%
320 94,998 0%
548 79,836 0%
536 59,075 0%
999 53,121 0%
96 50,446 0%
537 47,216 0%
545 34,948 0%
547 31,482 0%
798 27,287 0%
304 26,632 0%
Top10 FileAct
Request Type
Business areas
# live FileAct files
sent and received
by corporates
Distribution
CAMT 5,622,284 43%
PAIN 5,601,592 43%
PACS 1,533,870 12%
ADMI 148,174 1%
XSYS 13,651 0%
TSMT 11,027 0%
REDA 5,281 0%
eStatements 2,736 0%
ACMT 1,947 0%
SEMT 1,863 0%
8
Reporting
to end
customer
68%
Customer
Credit
Transfers
8%
Foreign
exchange
6%
Others
18%
Focus on Asia

9. S4C a source of differentiation
9
Corporate Banking
Be the Gateway to Philipines
• Capture new business from emerging and OECDs corporate markets
• Enable “ the best bank at best at the best place” model through access with
international standards and industry platform
• Increase market share
Enabling internationalisation of domestic corporates
• Be the gateway for internationalization of PH corporates (mid-caps and MNCs)
• Adopt international standards (MX/MTs) to support Shared Service and Regional Treasury
• Deepen your relationship, source of innovation and best practices
RMB
• Link physical to
financial flows
• Support increasing
demand for RMB as
trade settlement
currency
Technology &
Standards
• Enable simple and
efficient on-boarding
process
• ISO Standards
• 3SKEY

10. Bank readiness certification
Entry & Advanced comparison
Criteria Advanced certification Entry certification
Participate in SCORE Yes Yes
Receive FIN MT 101 and send MT 940 Yes Yes
Send MT 942 Yes No
Send/Receive files over FileAct* Yes* Yes*
Testing facilities & scripts Yes Yes
Operational documentation Yes Yes
Have SWIFT-knowledge and trained sales staff Yes Yes
Offer Basic commercial documentation Yes Yes
Provide a dedicated SWIFT-page on website Yes Yes
*Bank should comply with FA implementation guide
10

11. Americas
2%
Asia
Pacific
83%
Europe,
Middle
East &
Africa
15%
Proportion of Counterparty regions for Export
(MT700 value received by Asia)
Intra-Asia accounts for more than 75% of Asia’s overall Trade Finance value
Asia’s MT700 counterparty regions in September 2013, based on underlying value
*Domestic flows and central banks excluded
Americas
6%
Asia
Pacific
76%
Europe,
Middle East
& Africa
18%
Proportion of Counterparty regions for Import
(MT700 value sent by Asia)
Source: SWIFT Watch
201201
201202
201203
201204
201205
201206
201207
201208
201209
201210
201211
201212
201301
201302
201303
201304
201305
201306
201307
201308
201309
USD
CNY
JPY 90%
79%
5%
18%
Jan. 2012 Sept. 2013
Top 5 Currencies Used for Intra Asia Trade Finance
Others HKD
EUR JPY
CNY USD
Intra-Asia RMB trade settlement up 67% over 2013, and accounts for 18% Intra-
Asia trade
RMB and Asia very important
11

12. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013Q1 2013Q2 2013Q3 2013Q4 2014Q1
Other
PHP
CNY
JPY
SGD
HKD
EUR
USD
What does it mean for the Philippines?
12
▪ Focus on Import LCs from CN and
HK: currency
▪ Focus on Import LCs from CN and
HK: maturity
0% 20% 40% 60% 80% 100%
China
Hong
Kong
0 -30 days 31 - 60 days 61 - 90 days
91 - 180 days > 180 days

13. By analyzing the RMB business flows:
• RMB now 2nd most used currency in trade finance, overtaking the Euro
• RMB Letters of Credit and Collections grew from an activity share of 1.89% in
January 2012 to 8.66% in October 2013
And in trade, RMB growing very rapidly
13

14. Merchandise trade volumes growth forecast
….increasing the demand for SCF
.
0
10
20
30
40
50
60
70
80
90
100
OA
LC
USD 2
trillion
USD 6
trillion
USD 33
trillion
14

15. The Bank Payment Obligation (BPO)
A new alternative instrument for trade settlement
A BPO is an irrevocable
undertaking given by one
bank to another bank that
payment will be made on a
specified date after a
successful electronic
matching of data according to
an industry-wide set of rules.
New ICC Uniform Rules for BPO (URBPO)
Implementation date: July 2013
Designed to complement and not to
replace existing solutions
15

16. Industry Standards for BPO
Any channel /
any format / any
solution
Trade Matching
Application
Any channel /
any format / any
solution
SellerBuyer
1 2 3
UR Bank
Payment
Obligation
Industry
standards
Commercial
solutions
• SWIFT's Trade Services
Utility (TSU)
• Bank portal
• SWIFT's SCORE
• Paper
• Bank portal
• SWIFT's SCORE
• Paper
16

17. Agenda
• Setting the scene (20’)
+ Regional and local context on cash and trade
• Speed-meetings (3 times 10’)
+ Trade: Bank Payment Obligation
+ SWIFT for Corporate: using SWIFT from a corporate perspective
+ SWIFT for Corporate: using SWIFT from a bank perspective
• Panel discussion (25’)
+ Meg L. San Pedro: Lafarge Group Treasury
+ Alan K. Wong, Bank of America Merril Lynch
• Wrap-up
17

18. Chatroom #1 - Trade
18

19. Chatroom #1 - Trade
19

20. Chatroom #2 – Getting ready to support Corporates
20

21. Chatroom #3 – How SWIFT works for Corporates
21

22. Chatroom #3 – How SWIFT works for Corporates
22

23. Agenda
• Setting the scene (20’)
+ Regional and local context on cash and trade
• Speed-meetings (3 times 10’)
+ Trade: Bank Payment Obligation
+ SWIFT for Corporate: using SWIFT from a corporate perspective
+ SWIFT for Corporate: using SWIFT from a bank perspective
• Panel discussion (25’)
+ Meg L. San Pedro: Lafarge Group Treasury
+ Alan K. Wong, Bank of America Merril Lynch
• Wrap-up
23

24. Thank you
24