TREASURY SEMINAR

BY JAN VERMEER

Montfoort, 9th of March 2017

CASH POOLING THROUGH SOFTWARE

BY JAN VERMEER

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CASH POOLING THROUGH SOFTWARE

BY JAN VERMEER

Treasury Services has developed a revolutionary solution to set up cash pooling structures completely independent from banks through software

PowertoPay has created an independent payment platform that eliminates the need to adapt your systems to specific payment files of banks

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ALTERNATIVE POOLING STRUCTURES

ZBA CASH POOLS

• Define Concentration account• Define the target à Single Bank Account or a Pool of Bank Accounts • Set a required Value Dated Balance on the Target• Define which type of cash flows need to be taken into account• Sweeps are automatically booked in the IHB internal accounts

HAVE MULTIPLE ENTITIES USE THE SAME BANK ACCOUNT

• Entities will book their cash flow movements on internal accounts instead of external accounts

• Software will reconcile the bank account movements with the expected cash flows.

BY JAN VERMEER

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HOW DOES IT WORK

BY JAN VERMEER

EXPECTED CASH FLOWS

REALISED CASH FLOWS

TREASURYMETRICS

CAPTURE

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ZERO BALANCE POOLING

CASH CENTRALISATION• Operating companies lose control over their cash.

INTERCOMPANY LOANS• Management of Intercompany loans required. This is a fully automated feature in

TreasuryMetrics.

• Interest rates on Current Accounts must be “at arms length”.

GLOBAL PERMISSIBILITY• Few limitations on locations that can participate.

AVAILABILITY• Potentially available to all 100 % owned entities.

BY JAN VERMEER

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SETTING UP THE STRUCTURE

BY JAN VERMEER

SUBSIDIARYB

SUBSIDIARYC

SUBSIDIARYA

Concentration Account

Target = Individual Bank AccountBank A in Country X

Target = Individual Bank AccountBank B in country Y

Target = Individual Bank AccountBank C in country Z

HEADQUARTER

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INCLUDING EXISTING CASH POOLS

BY JAN VERMEER

Concentration Account

HEADQUARTER

Target = Notional Cash Pool

Account Currency X Account Currency X(Master Account)

ENTITY 1 ENTITY 2 ENTITY 3

Account Currency X

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POOL THE CASH POOL

BY JAN VERMEER

Concentration Account

HEADQUARTER

Target = Zero Balance Cash Pool

ENTITY 1

ENTITY 2 ENTITY 3

(Master Account)

Bank AccountBank Account

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INFLUENCE FOR YOUR ORGANISATION

WHICH CASH FLOWS TO TAKE INTO ACCOUNT FOR GENERATING SWEEPS?• Feeding the system with expected cash flows

• Outgoing payments• Direct Debits / Credits• Invoices outstanding• Intraday statements• Cash Flows from capture

PURCHASING TRANSACTIONAL BANKING SERVICES:• Intraday limits on bank accounts with banks• Overnight limits on bank accounts with banks• Value dates on debits / credits• Bank Costs for Intercompany transfers

ORGANISATION:• Planning of payments by subsidiaries

BY JAN VERMEER

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THE BENEFITS

IMPLEMENTATION• Efficient implementation• Integration of existing bank accounts

POOLING STRUCTURE• Independency, global solution and maximum flexibility

RISK MANAGEMENT• Minimizes credit risk on financial counterparts (banks)• No guarantees, pledges, covenants and other sureties to banks

CORPORATE FINANCE• Optimizes funding possibilities, no limitations

ECONOMICS• Minimizes bank accounts and account maintenance & services fees

BY JAN VERMEER

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THANK YOU FOR LISTENINGJAN VERMEER, TREASURY SERVICES