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Cash Management World Tour

LES ATELIERS UNIVERSWIFTNET – UTSIT – SWIFT – CARIPARMA – SEPTEMBER 2016 13/09/2016

01 Discovering Italy

02 Better understanding Italy

03 Doing Business in Italy

04 In a few words

Contents

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CHAPTER ONE

Discovering Italy


Source: Istat update to 2015, IMF for GDP update to 2014

Area: 302.071 Km2

Population: 60.795.612

Capital: Rome

Government: Parliamentary Republic

Currency: EURO (€)


Italy overview (1/2)

General Information

Source: Reuters

Country Credit Ratings

RATING MOODY'S FITCH S&P

GERMANY Aaa (stable) AAA (stable) AAA (stable)

UK Aaa (stable) AA+ (stable) AAA (negative)

FRANCE Aa2 (stable) AA (stable) AA (negative)

POLAND A2 (negative) A- (stable) BBB+ (negative)

SPAIN Baa2 (stable) BBB+ (stable) BBB+ (stable)

ITALY Baa2 (stable) BBB+ (stable) BBB- (stable)

ROMANIA Baa3 (positive) BBB- (stable) BBB- (stable)

SERBIA B1 (positive) BB- ( stable) BB- (stable)

GREECE Caa3 (stable) CCC (stable) B- (stable)

UKRAINE Caa3 (stable) N.A. B- (stable)



Main indicators trend – Gross Domestic Product

1,51,4

1,1

0,6

1,61,4

1,11,0

1,51,6

1,21,1

1,51,61,4

1,2

EMU Germany France Italy

Gross Domestic Product (% y/y)

2018 2017 2016 2015

Source: Prometeia, Rapporto di previsione – aggiornamento maggio 2016

GDP is expected to grow over the next two

years (+ 1.0% in 2016; 1.1% in 2017).

Source: Fondo Monetario Internazionale

ITALY 36

GERMANY 47

FRANCE 41

ITALY 36

SPAIN 36

PORTUGAL 28

GREECE 26

GDP per capita ($)

Italian wealth is among the highest in the

world

Wealth ( in relation to the income)

Source: Banca d’Italia

Italian GDP per capita is a little lower

than the European average (42 $)



Labor market, Productivity and Salaries

Source: Prometeia, Rapporto di previsione – may 2016 Eurostat

10,4

4,6

10,411,9 10,0

4,5

10,2

11,5

9,7

4,5

9,611,2

9,4

4,5

9,110,6

Emu Germany France Italy

2018 2017 2016 2015

Unemployment rate (% y/y) Productivity (years 1995-2015; index 2007=100)

Unemployment rate drops also

supported by labor recent reforms (Jobs

Act)

Productivity is still lagging behind other

European Countries



Industrial Indicator

The Economic Sentiment Indicator (ratio 2010=100)

PMI Composite Index

Source: European Commission Source: Markit

The Italian PMI ratio, compared with 2015,

is falling but still remains in a growth range

(>50)

Italy Economic Sentiment Indicator, as of

July, is up from the previous month and down

from last year


CHINA 2.275

USA 1.505

GERMANY 1.329

JAPAN 625

NETHERLANDS 567

SOUTH KOREA 527

HONG KONG 511

FRANCE 506

UK 460

ITALY 459


Italian Export overview

WORLD’S BIGGEST GOODS EXPORTERS

- TOP 10 - (billion $)

Source: ICE Source: ISTAT

Germany, France and USA are the principal

importing Countries of Italian products.

Italy is the 10th largest exporter of

goods in the world.

1 GERMANY 21.944

2 FRANCE 18.745

3 USA 15.196

4 UK 9.151

5 SPAIN 8.700

6 SWITZERLAND 7.820

7 BELGIUM 5.697

8 POLAND 4.600

9 CHINA 4.158

10 NETHERLANS 4.137

Italian Export Countries

-Jan- May 2016- (million €)



Italian most relevant industries

Source: Prometeia – Analisi settori industriali, maggio 2016 * Variations calculated at constant values (price 2000)

Domestic Demand and Export 2016 (%y/y)*

Focus on Italian Industrial Sectors

The 25% of growth forecast is

concentrated in automotive,

pharmacy, electrical

engineering and consumer

goods

7,8

2,9

4,5

3,2

2,8

3,9

1,8

2,1

1,6

3,2

1,9

1,7

1,5

1,9

1,7

1,8

2,9

3,3

2,1

1,4

1,5

3,2

0,9

5,6

3,4

6,3

Altri intermedi

Prodotti in metallo

Alimentare e bevande 0,9

Mater. e prod. da costruz.

Autoveicoli e moto

Metallurgia

Largo consumo 0,7

1,4 Farmaceutica

Elettrotecnica

MEDIA SETTORE MANIFATTURIERO

Elettronica

Meccanica

Elettrodomestici

Sistema moda 1,0

Intermedi chimici

Mobili 1,1 1,9

+6,2%

+2,9%

+6,0%

+4,7%

+3,8%

+2,8%

+3,4%

+1,2%

+2,5%

+1,6%

+1,1%

+3,0%

+2,2%

+3,0%

Export 2017

+2,0%

+1,8%

Export Domestic demand



Italy – France: a long-lasting history of commercial exchanges

France to

Italy:

32 billions

(Year 2015)*

Italy to

France:

38 billions

(Year 2015)*

Sources: Info Mercati Esteri Farnesina, updated to 23/02/2016

France Embassy website – march 2016

Sources: Info Mercati Esteri Farnesina, updated to 23/02/2016;France Embassy website – march 2016

• France and Italy have a long-lasting agricultural and food tradition. France is the first

European Union agricultural producer, Italy is the third. Trade between the two countries

have reached 9 billion € in 2015.

• Tourism is a fundamental activity of the Italian-French relationship. France is the first

foreign destination of Italians (3.5 billion € in tourism revenues ). Italy is the second

foreign destination of French people.

• France is second import and export Italian market, after Germany for

export (10,6% SoW) and the second for import (8,6% of total volumes).

• Italy was in 2015 for France the 4° export market (32 billions in 2015)

and the 3° for import (38 billions in 2015)



Main reasons to invest in Italy

• Italy is the 3rd largest economy of the Eurozone and the 8th largest in the world, with a population of more than 60 million and a per

capita GDP of 36,000 dollars (IMF, 2014).

• The net wealth of Italian households is 8 times their disposable income (a higher ratio than US, Germany and Canada) and their

indebtedness remains relatively low (82% of disposable income) (Bank of Italy, 2013).

AMONG THE WORLD’S TOP ECONOMIES 1

• For over 30 years, Italy has been the 2nd largest manufacturing economy in Europe after Germany, and the 6th – 7th top world

manufacturer (World Bank, 2015).

• Italian manufacturing trade surplus is the 5th amongst G-20 countries (WTO, 2015).

• Italy holds leadership positions for trade surplus in 935 products out of 5,117 marketed goods (Fondazione Edison, 2012).

KEY WORLD PLAYER IN MANUFACTURING AND INTERNATIONAL TRADE 2

• Strong performance of Multinational companies According to the FDI Confidence Index, Italy ranks 12th overall in 2015, up from 20th

in 2014 (A.T. Kearney, 2015).

• Italy now precedes Germany in the ‘starting a business’ ranking (Doing Business, 2015).

• In 2014, Italy had the highest growth rate among European countries of inward greenfield FDI projects (+31%) (fDi Report, 2015).

OPEN TO FOREIGN INVESTMENT: RIGHT PLACE , RIGHT TIME 3

• Italy is ranked 1st worldwide for UNESCO World Heritage (50 sites as of end 2014).

• As a result, international tourist arrivals to Italy are nearly 50 million annually, placing Italy 5th among the world’s top destinations

(UNWTO, 2014).

• As the 3rd top global country brand relating to ‘experience’(Country Brand Index, 2014), Italy inspires passion and interest the world over

in its heritage & culture, tourism and ‘Made in Italy’ goods. The ‘Made in Italy’ factor makes every brand unique and attractive.

UNPARALLELED QUALITY OF LIFE AND CULTURAL OFFER 4

• Italian hourly labour costs are below the Eurozone average (Eurostat, 2015).

• More than 20 Italian universities are ranked in the top 500 academic institutions in the world

COMPETITIVE AND SKILLED WORKFORCE 5

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CHAPTER TWO

Better

understanding

Italy


ITALIAN MARKET FIGURES

FRANCE MARKET FIGURES

Transactions per type of payment instrument 2012 2013 2014

Credit transfers1 3 097 3 250 3 417

paper-based N/A N/A 146

non-paper-based N/A N/A 3 270

Direct debits 3 543 3108 3541

Card payments with cards issued in the country 8 475 8 964 9 438

payments by cards with a debit function N/A N/A 4 924

Payments by cards with a delayed debit function N/A N/A 1 357

payments by cards with a credit function N/A N/A 85

E-money payment transactions 52 50 52

by cards with an e-money function 52 50 50

through other e-money storages N/A N/A 3

Cheques 2 806 2 621 2 483

Other payment instruments² 95 93 26

Total number of transactions with payment

instruments 18 068 18 086 18 958

** millions, total for the year 1 From 2005 to 2007, client (ie non-MFI)

transactions only; from 2008, also includes

transactions initiated by MFIs to non-MFIs. 2 Mainly bills of exchange.

Source: Statistics on payment in the CPMI

countries

02 Cash Management in Italy: Highlights

Italian Market Practices - Different Payment Types

Transactions per type of payment instrument 2012 2013 2014

Credit transfers

Paper-based

Non-paper-based

Direct debits

Card payments with cards issued in country

E-money payment transactions

Cheques

Other payment instruments

1 261

744

517

602

1 629

191

276

304

1 261

720

541

624

1 813

244

252

292

1 347

766

581

608

2 034

291

232

281

Total number of transactions with payment instruments 4 263 4 487 4 793

** millions, total for the year

Source: Statistics on payment in the CPMI

countries



Increase of Non-Cash Transactions in Italy

Non-cash transactions numbers pro-capite (Year 2014)

5,6

2,7

3,94,1

Years 2010-2012 Years 2012-2014

UE Italy

Growth rates of the number of non-cash transactions (%)

Source: BCE

Cashless transactions in Italy are still low compared with other UE Countries, but the ratio is improving.



Cards transactions: +91% in the last 3 years

Number of transaction for each payment instrument (millions)


SEPA: SDD CORE, SDD B2B;

Cheques;

Bills of Exchange;

Italian specific payment types : RIBA, MAV, Bollettino Bancario.

Source: Istat update to 2015, IMF for GDP update to 2014


In Italy there are all major payment instruments..

Domestic outgoing transfers for supplier, treasury, payroll, tax, social and request for transfer;

International outgoing transfers for supplier, treasury, request for transfer;

Unitary and bulk;

SEPA : SCT

Cards ;

Cash withdrawal or deposit;

Receivables

Payables



…With some particularities - The CBI platforms (1/3)

Consorzio CBI defines the technical and regulatory rules and standards and manages the connection infrastructure for consortium

members to achieve national and international interoperability in service delivery.

"CBI Service" allows a business to optimize its entire commercial and financial chain by providing additional document management

options, in addition to the collection, payment and information services, guaranteeing full interoperability between the various formats

used in financial communities around the world.

"CBI Access Point services“ permits the central administrations to access the CBI network directly, and to arrange payments and

collections to and from the banks.

“CBILL” is a service which allows financial institutions to offer home and corporate banking customers the opportunity to view

accounts and pay bills issued by "invoicers" online, through multi-bank, multichannel systems.



.. with some particularities – Tax and Electronic Invoicing (2/3)

Since 1 October 2006, companies are obliged to

adopt online and electronic solutions in order to

make payments of tax, rate and revenue on

behalf of the government sector. (Legislative

Decree no.223/06 , item 37, paragraph 49).

Banks use the Consorzio CBI standard, called F24

models, for tax payment in order to comply with the

above mentioned rules.

Number of payments by F24 from the Agenzia delle Entrate portal during 2015

Tax Payments Electronic Invoicing

Since 2004, in Italy was introduced the obligation for companies,

which provide goods or services to the Public Administration, to

forward the Digital Invoices (Law #244 of December 24th, 2004 ).

All providers of goods and services the Public Administration are

required to send invoices in electronic format according to the

deadlines set by the new regulations:

• 6° June 2014: mandatory use of electronic invoices for

Ministries, Tax Agencies and National Pension Institutions.

• 31° March 2015: mandatory use of electronic invoices for the

other national authorities and local public administrations.

38,5

million

Electronic Invoices sent to

the Public Administration

750.000

Suppliers sent

Electronic Invoices

Source: Politecnico di Milano- Osservatori.net – Digital Innovation- June 2016



.. With some particularities – Other Italian Products (3/3)

RI.BA. its a payment instrument which arises from the Creditor order and it takes place with the

debtor payment; the debtor orders his Bank to pay the RI.BA.. It’s used for B2B transactions.

MAV is a paper bulletin collection : the creditor orders to his Bank to send a MAV notice to his

debtor. It’s usually used for B2C transactions.

Bollettino Bancario Freccia is a paper bullettin which is edited by the Creditor and sent directly to

the debtor, without bank involvement. The debtor can pay Bollettino Freccia at any bank branches,

both in cash and direct debit. It’s usually used for B2C transaction.

SEDA, an auxiliary service to SEPA DDs has been developed by the Italian banking sector to

respond to the needs displayed by Italian companies. Two products have been declared as niche

products in Italy:

SDD Finanziario (financial transactions): used for financial transactions such as

investment funds;

SDD a importo fisso (fixed amount): used for direct debit collections, with a fixed

amount: each transaction needs to have the same amount agreed in advance

between the Creditor and the Debtor



MAV (Mediante Avisso - Payment by Notice) the same as SEPAMAIL RUBIS?

Creditors are dematerializing invoices and/or creating the invoice footer (their creditor side of the payment instruction)

Subsequently remitted to their banks and channeled electronically to the debtor’s bank to be presented through

electronic banking or mobile banking to debtors.

With an acknowledgement, the debtor instructs its bank to execute the payment.

A bit more integrated than MAV and dematerialized, RUBIS allows the automation of the MAV concept.

MAV (Payment by Notice)

‘Payment by Notice’, also called MAV, relies on the banks to send payment notices to debtors via surface mail.

Creditors (large billers, public bodies, insurance companies etc…) send their notices to their bank, who sends them to

debtors.

The notice is used as a payment order at debtors banks for free (most of the banks) : counter or electronic banking

This is a bill footer used to make sure the creditor’s coordinates are right.

SEPAMail RUBIS (Règlement Universel Bancaire Immédiat & SEPA)



Specifics on SEDA (SEPA-compliant Electronic Database Alignment)

It remains optional for participants (both banks and creditors) and the scheme is managed by the Italian

Banking Association (ABI) since October 2013 (info page below).

It reproduces an Italian market practice also known as EAE procedure (Electronic Alignment of Archives)

It comes in two different modes (one encompassing the other):

Basic : all functions (checking, amendments and cancellations) aiming at aligning data between the creditor’s

records and the debtor’s PSP through a so called alignment PSP.

Advanced : basic + allows to replicate the so called Debtor Mandate Flow (DMF - which has not been

retained as a mandatory feature by the EPC but used in Italy).

All ABI members adhering to the Core SDD scheme of EPC at least offer the basic features as debtor’s PSP.

Adhering institutions can be found here :

http://www.sepaitalia.eu/welcome.asp?Page=2701&chardim=0&a=a&langid=1

To draw a parallel with an equivalent SEPAMAIL product, this would be close to the Diamond concept, but relating

to SEPA Direct Debit mandates only, not to any banking coordinates check.

SEDA is an Italian AOS registered with the EPC and relates to both SDD Core and SDD B2B.





Italian Market Practices

Italy

Resident accounts

Permitted without restriction, fully convertible; in € and foreign currencies

Subject to KYC and Compliance requirements

Opened in branches or on-line

Non-resident accounts

Permitted without restriction, fully convertible; in € and foreign currencies

Subject to KYC and Compliance requirements

Payables and receivables

Permitted with account in euro or foreign currencies

Mav and « bollettini bancari e postali » can be paied also without account (=>

MAV = Payment by advice (the bank sends the invoice footer to the debtor for

automated payment)

Guarantees Permitted with account in euro or foreign currencies

Liquidity Management

Domestic notional cash pooling is available in Italy but not widely practiced

because of the restrictions on banks offsetting debit and credit balances.

Domestic cash pooling structures are widely available.

E-Banking

Permitted with account in euro or foreign currencies

Opened in branches or on-line

23

Legend

• > 75

• 25 – 75

• 10 – 25

• < 10

• 0

SWIFT for Corporates: Market adoption report for Q2 2016 23

Page 23 LES ATELIERS UNIVERSWIFTNET – UTSIT – SWIFT – CARIPARMA – SEPTEMBER 2016 13/09/2016

02 Corporate connectivity

Per country

2,651 Banks reached

globally

(with traffic in

Q1’16)

47% Fortune 500

companies

on SWIFT

38% Less than

USD 1 billion

turnover

26% Less than USD

0.5 billion

turnover

56% Of corporates that

joined since 2015 went

for Lite2

716 Corporates used ISO

20022 formatted

messages

38 Of Top50

SCORE banks

are certified

19 Of Top20 SCORE

banks support

3SKey

1,621 Corporate groups

using SWIFT

A growing community since first inception in 1999

51 Corporates joined

SWIFT in Q2 2016

Q2 2016 highlights



02 Current status Corporates segment – Q2 2016

In Figures

44

53

76

61

51

63

75

51 56

51

0

20

40

60

80

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

Number of Corporates joining SWIFT

Q2 2016 YTD 2016

51 107


0

2

4

6

8

10

2012 2013 2014 2015 2016

Evolution of Corporates in Italy



Per quarter

AP 11%

AM-UK * 36%

EMEA

54%

All Corporates on SWIFT

AP 25%

AM-UK * 22%

EMEA

53%

Corporates joining in Q2 2016

* AM-UK includes Americas, UK, Ireland and Nordic


0

50

100

150

200

250

300

FR

AN

CE

UN

ITE

D S

TA

TE

S

UN

ITE

D K

ING

DO

M

GE

RM

AN

Y

SW

ITZ

ER

LA

ND

SP

AIN

NE

TH

ER

LA

ND

S

ITA

LY

BE

LG

IUM

JA

PA

N

CA

NA

DA

LU

XE

MB

OU

RG

Top 12 countries

Corporates #



Per region



Cash Pool best practices

Physical Pooling

Zero Balancing aggregates (credit and debit) balances for predefined accounts held by company and subsidiaries in

different banks and countries. Funds will be physically transferred to a master account.

Target Balancing produces the same result of Zero Balancing in terms of concentration of funds held in different countries

and banks. The main different aspect is the level balance that activates transfers that is different from zero

Non-Physical Pooling

Notional Pooling

Debit and credit balances of the participating accounts – in the same currency – are virtually offset against each other

within a single bank (“interest compensation”). This allows the “real” balances to remain unchanged, while a theoretical

consolidation is obtained on a virtual pooling account. Interest is paid/received on the virtually aggregated balance. With

Notional Pooling, funds are not actually, but just virtually, netted. Therefore, the bank incurs capital and minimum reserve

costs on the participating accounts; this results in a reduction of interest yields. Domestic notional cash pooling is

available in Italy but not widely practiced because of the restrictions on banks offsetting debit and credit balances.

Domestic cash pooling structures are widely available



Clearing Systems

Domestic payments

executed via a sistem of interbank processed by local CM that are offered by Sia, ICBPI (Istituto Centrale delle Banche

Popolari Italiane) e ICCREA (Istituto Centrale Casse Rurali e Artigiane)

o Cut-off times-> 24:00

European payments

executed by Sepa system and Target2 cleared by Eba Clearing

o Cut-off times-> Standard Eba

Extra European payments

executed by Swift

o Cut-off times-> EBA at 16:00; ERP at 14:00 and Target2 at 17:00

www.ca-cib.com

CHAPTER THREE

Doing Business

in Italy


The Group CA in Italy

CONSUMER FINANCE,

LEASING AND FACTORING 61 Md€

financing the

Italian economy

~3,3 Md€ revenues

C/I ~44%

3,5 m

Customers in Italy

Group CA in Italy 6° Banking group for traded

volumes

12.000

Employees

in Italy

ASSET MANAGEMENT

AND INSURANCE

BIG CLIENT

OPERATION AND

INFORMATION

TECHNOLOGY COMMERCIAL BANK

PRIVATE BANKING

~530 Mln€ net income 2014

Primo Gruppo Estero in Italia


Rely on your banking partner in Italy



Crédit Agricole in Italy- Cariparma Group

CET 1 11,4%

(TOTAL CAPITAL

RATIO 13,5%)

BEST RATING

STRONG

BALANCE SHEET

7° Player in

Banking System

extensive

distribution

network

Acquired in 2007 by Group Crédit Agricole, the Cariparma

Crédit Agricole Group is active in the 10 Italian regions,

which account for 71% of the population and produce 78%

of the GDP, with corporate and private enterprise centers

in the biggest cities.

The Group’s key strengths are its deep roots in the

regions, its closeness to its customers and its recognised

solidity.

In 2013, the Group opened a new type of branch with a

central focus on the bank-customer relationship. By 2015,

these branches will number over 200.

About Cariparma

Cariparma added-value

A Cash Management Business Unit operates in synch with

the Relationship Manager to satisfy all client Cash

Management needs and requirements.

A dedicated Team support client in discontinuity moments or

for important projects.

A project manager is a single entry point for any possible

problem during an implementation phase.

An offer competitive products.

Proven experience in providing products of Cash

Management (recently E. Corporate Banking for a major

multinational Insurance company, cash pooling for a leading

industrial company).


Crédit Agricole CIB has been present in

Italy for more than 40 years

Particularly strong on Structured Finance,

Syndicated Loans, Export and Trade and

Fixed Income to Large Italian Companies

and Financial Institutions

Big enough to handle large and complex

transactions, but small enough to

facilitate product integration and to

remain creative and flexible

Italy is CREDIT AGRICOLE GROUP’s

second domestic market (acquisition of

CARIPARMA GROUP in 2007)

We are present through the following

entities: CARIPARMA Group, AMUNDI,

CACEIS, AGOS DUCATO, FCA Bank,

Crédit Agricole Leasing, Italia, Eurofactor,

Italia, Crédit Agricole Vita, Crédit Agricole

Assicurazioni, Crédit Agricole Creditor

Insurance, IDIA Capital Investissement,

Indosuez Wealth Management

Entity Legal Status: Branch

1 location: Milan (Piazza Cavour 2)

Total Staff: 133

About Crédit Agricole CIB Crédit Agricole CIB added value

The Milan branch offers competitive

overlay and investment solutions as well

as comprehensive SEPA instruments and

channels

Full OPTIM.net offer including Cash

Reporting, as well as cross border and

SEPA (SCT, SDD) payments capture and

import features

Capacity to take advantage of

CARIPARMA’s network of bank agencies

Good understanding of local banking

practices thanks to local experienced

teams

SEPA offer: common processing

functionalities and reporting features for 6

Crédit Agricole CIB entities within the

SEPA area (France, Belgium, Spain, Italy,

Germany, UK)

Local client support offered in local

language and English for better, faster

and customized follow-up

Italy is the second

domestic market of

Crédit Agricole. All

product lines of the

Group are active in

the country, often

with leading

positions.

Ivana Bonnet, Senior

Crédit Agricole CIB

Country Officer


Crédit Agricole in Italy- CACIB



Case Study no. 1

• E-banking solution (Nowbanking Corporate) to pay Italian taxes through F24 models

• Cash pooling solution to pay suppliers and salaries

A module integrated in Nowbanking Corporate and used for Swift messages.

Customer sends orders directly from his US e-banking solution

Improve the customer

payment efficiency with

a real time payment

platform.

Identified needs

Offered solution

Major sportswear multinational

Client description



Case Study no. 2

• Acquiring solution for about 250 Italian stores (about 200 mln € of annual volumes )

with a crossborder solution under development

• Collect all the store sales through POS terminals.

• Accept payments from a wide Italian and foreign customer

base: international credit and debit cards and domestic debit

cards (Visa, V-PAY, MasterCard, Maestro, JCB, UPI and

PagoBancomat cardholders).

Identified needs

Offered solution

Major international fashion company

Client description



Case Study no. 3

• SDD Collection both for Cariparma and no Cariparma debtors.

Collect 2 million payments from customers

for a total amount of 160 million € volumes (year 2015).

Identified needs

Offered solution

Major Italian telco

Client description



Case Study no. 4

• Cash pooling zero balancing solution

The client is now able to centralize intragroup liquidity inflows between

Cariparma Group accounts.

• Optimize treasury efficiency trough concentrated

current account balances.

• The parent company needed to concentrate all

the flows into the Carispezia account.

Identified needs

Offered solution

An historic Italian oil producer

Client description



Case Study no. 5

• On line SDD collection, credit transfer (SCT) and

italian taxes payments (F24).

• Insurance Policy Instalments with SDD debits.

Identified needs

Personalized e-banking solution integrated with company’s ERP system

This taylor made solution permits:

Automatic uploading of all cash management and automatic download flows to feed the

company treasury program;

Domestic cash pooling through high priority SCT between Italian banks (actually this function is

still not used by these two companies).

Offered solution

Two major insurance companies

Client description

www.ca-cib.com

CHAPTER FOUR

In a few words


04 Case Studies

Rely on your banking partner in Italy

A significant market for international companies

A highly developed Cash Management Market with

local specificities to be aware of

Highly important to rely on a global banking partner to

accompany you and serve your needs

APPENDIX



Crédit Agricole in Italy- Cariparma Group

6 Geographical Areas

(AT):

1 Large Corporate Area

Operations in 10 Italian Regions

accounting for 75% of Italy's GDP

400 Large Corporate

Customers (1)

12,000 SMEs

(2)

900 Branches

(1)Turnover > 250 ML

(2) 5 < Turnover< 250 ML

The Group offering covers all market segments:

• RETAIL with about 900 branches;

• PRIVATE CUSTOMERS with 20 private markets and 11 branch offices;

• ENTERPRISE BANKING with 20 enterprise markets, 16 branch offices and 1 Large Corporate Area.



Awards



Overview on Italian industrial sectors (2/2)

ROI 2017

ROI in 2016 (%)

4,6

1,4

2,0

2,3

2,9

3,5

4,9

5,7

5,9

6,1

6,4

6,7

7,1

7,4

Prodotti in metallo

Media Settore Manifatturiero

Intermedi chimici

Meccanica

Elettronica

Elettrotecnica

Sistema moda

Alimentare e bevande

Largo consumo 12,8

Farmaceutica 16,6

Autoveicoli e moto

Metallurgia

Mater. e prod. da costruz.

Mobili

Elettrodomestici

Altri intermedi

16,1

13,2

7,5

7,6

7,0

6,9

6,2

6,3

6,0

5,1

4,8

3,7

2,2

2,0

3,8

3,2

ROI 2015

17,5

12,8

7,2

6,8

6,5

6,0

5,8

5,5

5,4

4,7

4,4

3,2

1,7

0,6

2,1

1,5

Source: Prometeia, Analisi settori industriali – maggio 2016

• Year 2015 characterized by a strengthening of

corporate accounts (average ROI manufacturing

by 5.4% with an increase of about 8/10 over the

previous year). The most significant improvement

has affected the automotive.

• Year 2016 should prove to be generally positive,

with sales and margins still in recovery,

although at a moderate pace.

• Good conditions of profitability in particular for

the pharmaceutical industry, which continues to

soar over all the others, with a higher ROI of 16%,

followed by the consumer goods companies

with an average ROI around 13% .



Legal aspects

• Private:

Identity documents

Fiscal Code (issued by Agenzia delle Entrate in Italy)

Declaration of non residence (self-declaration)

• Enterprise:

Copy of registration act issued by Chamber of Commerce or other

official certificate *

Copy of the Corporate Statute, including the signatory list*

Identity documents of people entitled to using the account

Fiscal Code (issued by Agenzia delle Entrate in Italy)

Documents

necessary to open an

account

*These documents may be required in Italian and/or French and/or English, and

authenticated by Italian Embassy or by a notary

• The withholdingtax on interest paid to no-residents and resident

individuals is 26%. Bank is obliged to deduct the tax from interest

payment

• Periodically Banks ask to their clients to fill-in a questionary about risk

profile

• Contracts have to be signed in italian language

Other relevant

aspects


Clients banking activity

The number of retail Clients having signed an agreement providing e-banking 42.587.886

The number of active retail customers on e-banking 37.010.369

The number of issued debit cards (thousands) 51.256

The number of issued credit cards (thousands) 13.931

The number of multi-purpose prepaid cards (thousands) 25.482

The value of transactions made with payment credit cards (in million) 44.248

The number of transactions made with payment credit cards (in million) 568,6


Statistics (according to the National Bank of Italy)

Source: Bank of Italy update to 2015



Zoom on SEPA readiness

Before SEPA Changes since SEPA Corporates in Italy

Credit Transfers

Originally, Italy had two local formats for

credit transfer initiation:

- BONI PC: Domestic format for domestic

credit transfer

- BONI PE: Domestic format for

international credit transfer

Both formats are not eligible anymore for

EUR payments inside SEPA zone.

However, they remain usable for EUR

payments outside of SEPA zone and

international payments. This will continue

to be case, even after the SEPA end-

date. BONI PC will also remain available

for urgent domestic credit transfer

(settled via Target2) and cheques

issuing

Corporates use after Sepa only SCT for

Italian market and for Sepa zone both

with single SCT or bulked SCT (for

examples for salaries)

They use Urgent Credit Transfert in

particular for treasury transfers.

Direct Debit

Before SEPA, Italy had one domestic

direct debit format: the RID. It was

addressing several direct debit products

that answer the local needs. Two products

have been migrated to SDD Core and

B2B:

- RID Ordinari: standard direct debit

product

- RID Veloci: equivalent of RID Ordinari,

accelerated scheme, only for B2B

For these two products, a new enriched

version (with the additional SEPA

mandatory information) of the RID allows

to keep on using the format (Rid fixed

amount and financial Rid), for SDD

initiation, until February 2016.

From February 2016 also these two type

of RID have been migrated in SDD Core

Corporate uses both SDD Core and

B2B.

Other collection methods used are:

• RiBa (used for B2B transaction)

• Bollettino Bancario (usually used for

B2C transaction)

• Mav (usually used for B2C

transaction)


Description Corporates in Italy

SEDA

The Additional Optional Service called SEDA (Sepa-compliant Electronic

Data Alignment) has been developed by the Italian banking sector to

respond to the needs displayed by Italian companies as regards the

migration in the SEPA environment of the functionalities currently

incorporated in the national procedure of Electronic Alignment of

Archives (AEA procedure) used in conjunction with the national direct

debit service.

SEDA is an auxiliary service to the SEPA DD which replicates the

functions of the national AEA procedure and allows the beneficiaries of

SEPA DDs to send and receive information on authorization of direct

debits through an electronic dialogue with their PSP (called "Alignment

PSP"). This AOS will be offered by the PSP to the Creditors through two

different modules: basic and advanced

• Seda service is payed by the creditor of Sdd

• At this moment 10% of corporates use Seda for

70% of Sdd volumes

• Seda is used in particulary from big biller with a

large number of clients and from corporates with

an high frequency of SDD (es Lottomatica that

uses a weekly SDD)


Zoom on SEPA readiness – Additional Optional Services

LES ATELIERS UNIVERSWIFTNET – UTSIT – SWIFT – CARIPARMA – SEPTEMBER 2016 13/09/2016 Page 48 Page 48 LES ATELIERS UNIVERSWIFTNET – UTSIT – SWIFT – CARIPARMA – SEPTEMBER 2016 13/09/2016

OPTIM.net (Crédit Agricole CIB web banking portal)

SWIFTNet

Host to OPTIM.net

ZBA domestic cash pooling

ZBA cross-border cash pooling

Deposit Notice Period 32-days via booking in Paris or London

(EUR, GBP, USD) or New York (USD only)

ACCOUNTS

PAYABLES AND RECEIVABLES

LIQUIDITY MANAGEMENT AND INVESTMENT

E-BANKING

REPORTING

Short-term credits

Overdraft

SHORT-TERM FINANCING

Current accounts for residents

Current accounts for non-residents

Pledged accounts

Escrow accounts

Capital accounts

Foreign currency available: USD, GBP, CHF, JPY

Domestic outgoing transfers for supplier, treasury, payroll,

social

International outgoing transfers for supplier, treasury

Unitary and bulk payments

SEPA: SCT, SDD CORE, SDD B2B

Direct access to SEPA Clearing System Mechanism

End of day account statement MT940

Intraday statement MT942

Payables and receivables operation reporting PSR

camt.054

e-alert

Export / View online (PLAIN TEXT, PDF, CSV, XLS…)


Full range of Services for Corporate Needs – Crédit Agricole CIB Italy


• SPECIALIZED FINANCIAL SERVICES

• INSURANCE

• ASSET MANAGEMENT

• MOTOR VEHICLE LEASING

• MACHINERY LEASING

• REAL ESTATE LEASING

• INTERNATIONAL NETWORKS

• CAPITAL MARKET

• INVESTMENT BANKING

•

• RECOURSE BASIS NON-RECOURSE

• CREDIT COVER

• MATURITY

• MANAGEMENT OF FINANCIAL RISKS:

EXCHANGE RATE, INTEREST RATE

AND COMMODITY RISKS

• MANAGEMENT OF TRADE RISKS

• ACCIDENT PROTECTION

• CORPORATE TIME DEPOSIT

• CRESCIDEPOSITO PIU’

• INSURANCE: Crédit Agricole VITA

• PROJECT FINANCE

• ACQUISITION & LEVERAGE

FINANCING

• MERGERS & ACQUISITIONS

• PRIVATE EQUITY

• CORPORATE LENDING

• COLLECTION

• TREASURY MANAGEMENT

• E-BANKING

• PAYMENTS

• CBI Consortium PLATFORM

• CASH MANAGEMENT

• MANAGEMENT OF CREDITOR

MANDATES

• MYSIS

• TRADE FINANCE

• CASH MANAGEMENT AND CASH

POOLING SERVICES

• COLLECTION AND PAYMENT

SYSTEMS

• INTERNATIONAL GUARANTEES

• INTERNATIONAL DEVELOPMENT

• IMPORT/EXPORT LOANS AND

EXCHANGE RISK HEDGING

• INTERNATIONA LIAISON DESK

NETWORK (LDN)

• FINANZIAMENTO INNOVAZIONE

• SACE NUOVI MERCATI

• ENERGICAMENTE BUSINESS

• IMPRESA FORTE

• NET IMPRESA

WORKING CAPITAL

AND INVESTMENT LENDING

SUPPORTING

INTERNATIONALIZATION

SUPPORT TO AGRI-FOOD

TRANSACTION SERVICES AND

COLLECTION AND PAYMENT SYSTEMS

CORPORATE FINANCE AND

ADVISORY

LIQUIDITY MANAGEMENT

RISK PROTECTION

LEASING, FACTORING LOANS

PRODUCT COMPANIES


Full range of Services for Corporate Needs – Cariparma Italy