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The Financial Professionals Forum 2012

Electronic Invoice Present & PayCollection & Debt Publication tool for A/R automatic conciliation

Oscar Mazza – C&H Industry Head& CTS Andean Region Head

Gustavo Casanovas – Latin America & Mexico Inflows Region Head


Table of Contents

1. Receivables from Client perspective 4

2. Receivables Challenge & Strategic Approach 7

3. Electronic Invoice Present & Pay – SD&D Partnership 8

4. Operational Model 12

5. Sinergy – Benefits – Savings 13

6. Buyers / Sellers view 15

7. Awards 21

3


Receivables Internal Constituents

Key Receivables stakeholders have various interests that need to be balanced

4

Sales

Payers convenience

Expand sales

opportunities

Finance Manager

Reduce DSO

Cost savings

Better control

Credit Collections

Payment receipts

and dishonours

Minimized credit

utilization

Claims/Dispute Team

Payments and

dishonours

Minimized credit

utilisation

Treasurer

Faster &

predictable cash

inflow

AR Manager

Easy reconciliation

increase level of

automation, less

exceptions

SSC Manager

Efficiency

Standardization

Automation

ERP & Tech Team

Consolidated,

easier reporting

Formats

Customer Service

Increase customer

service level

Freeing credit lines

1. Detailed & reliable

payment information

2. Fast cash application and

reconciliation

3. Information speed aligned

with business process

4. Service coverage to meet

final client payment

behaviour


Clients Collections Landscape: A challenge for most clients…

Clients are faced to interact with several collection channels & offering in their markets in order

to complete their collections process.

5

Bank n

Ban

k 3

Collection Agency

Ban

k 1

Corporate

Client

Citib

an

k

Collection Agency

Bank 2

Co

llecti

on

A

gen

cy

Client Receivables Challenges

Clients face:

Different product offering

among each channel

Each channel provides their

unique conciliation file

format

Channels work at different

speed providing information

on different time basis


Receivables Challenges & Strategic Approach

Challenge: Provide detailed & reliable payment information with a fast cash application and

reconciliation cycle, providing service coverage able to meet final client payment needs.

6

Unified Citi Collection through information

aggregation services

Cash 2 Mobile CDMs

Citi

Corporate

Client

EIP

P

Citi C

han

nels

Net. Ext.

Pick upR

em

ote

Deposit

Unified Citi

Collections

30 Network partners in the

region with over 14,000 points.

13 new partners on pipeline in:

Colombia, Dom Rep, Peru &

Panama

Regional Receivables

Aggregator to provide 100%

visibility to receivables

information in CitiDirect

e-IPP will benefit clients by

providing accurate information

for reconcilement

Current capability in Mexico,

Argentina & Puerto Rico.

Venezuela. Colombia and

Ecuador analyzing product

solution

Citi Mobile Collect with Partner to

launch in 4Q in Dom Republic

LATAM Road Map 2013

Achieve: Faster, detailed & reliable collection

information for Clients across the Region for all Citi

Collection Products


Receivables Chain: Citi Value Proposition

An Integrated set of solutions aligned with the payment systems infrastructure and available

payment methods depending on the stage of development of each market.

7

Sales Settlement Chain

Invoice Review DisputeAccounts

ReceivablePayment Updating

Invoice ManagementManaged by Company’s ERP and Web

Portal

Collection Services

Faster availability of funds

through our networks,

ensuring timely and accurate

processing

Receivables Management

Faster conversion of accounts

receivable into cash, reducing

operational costs, capturing critical

information for reconcilement process

Passive Collections

Deposit Services

Identified Collections

Pick Up Services

Active Collections

Account Receivable

Services

Web Receivables

Services

Direct Debit Services


e-IPP – Electronic Invoice Present & Pay

Citi in partnership with SD&D is able to offer a robust e-IPP solution to provide improved cash

flow visibility, increased automation and integration with their ERP’s, making it possible for

clients to reduce DSO, minimize dispute rates, lower costs and accelerate payment settlement

for a more efficient reconcilement process.

8

SD&D Overview

Company founded in 1995

31 active billers in 8 different countries

Over 125,000 payers interacting daily

Over 24,500,000 orders & documents managed

between payers and billers p.a.

57,500 payments closed by month

Provide scalable, customizable technology

solutions for Financial Supply Chain Management in

the following business processes: e-Invoicing,

e-Commerce, e-Payments, e-Ordering

SD&D Solution Differentiators

Ability to integrate into web-based ordering system Increasing likelihood that customers will view webpublished receivable

Short time to implementation

Flexible platform that can be easily customized to customer’s requirements

Multi-bank solution


SDD in LATAM

SD&D Presence in Latin America

ArgentinaChileColombiaCosta RicaEcuadorMéxicoPanamáPerúUruguayVenezuela

Presence in 10 countries in LatAm and +40,000 active users

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To implement a flexible and friendly

tool to manage more EFFICIENTLY

the sales cicle.

Main Objetives

Working in a secure environment

that MINIMIZE the manual process,

avoiding the errors and frauds,

enhancing the controls, generating

better productivity and saving direct

costs.

11


e-IPP – Electronic Invoice Presentment & Payment

10


administration

systems

Manual process reductions

Accounts sinergy

Better productivity

Finance

Banks independency

DSO reductions

Better working capital

clients Better integartion

More efficient A/R

control

Better A/R knowledge

sales Online information

Risk tools

Better control

systems

Processes reduction

Saving in reports

implementations

Very low maintenance

12

Sinergy - Benefits


Savings

PROJECTPayment order, Invoicing, Collection and Automatic reconciliation.

CLIENTFood Company in Argentina

DETAILS60,000 invoices p.a.$ 540 /invoice270 payers

Invoice disputes lower costs:o 10% invoice dispusteso Operative costs: $ 3o Potential Saving: $ 18.000 p.a.

Presentment lower costso Paper invoicing and courrier: $ 1 eacho Similar cost in digital channel: $ 0,2o Potential Saving: $ 48.000

Payments process lower costso Check processing cost: $ 0.45o Cost reduction EDT: 75%o Check payments: 40%o Potential saving: $ 8.000 p.a.

13


Citi Receivables Offering in Latin America & Mexico


2011-2012 Citi Awards

20

Best Regional Bank for Treasury

and Cash Management

Best Regional Bank for

Payments and Collections

Best Regional Bank for Risk

Management

Best Regional Bank for Liquidity

Management

Best Online Cash Management

Best Regional Bank for

Institutional-Corporate Internet

Best Information Security

Best in Mobile Banking

Best Regional Cash

Management House

-Best Online Treasury Services

(Banamex)

Best Investment Bank

-Caribbean

Best Cash Management House

-Latin America

Best Global Emerging Markets

Investment Bank

Best Bank

-Chile (Banco de Chile)

Appendix


Initial

Login

Buyer’s View

14


Account

Access

Account Statement

24 x 7

Web Access

Cutomization

Buyer’s View (cont)

15


Preparing

Payment

Optional discount Module

Detailed value enters

Partail /Total Payments

Multi payment methods


116


Reports Payment Status

Receipts

Historical Data


17



Online real time

information

Online real time credit

refreshing

Discount information

Daily income tracker

Pending Orders

Payments

Engine

18


Seller’s View (cont)

Account

Statement

Conciliation

Multibank Information

Automatic Matching

Aprovals

ERP interface

19

efficiency, renewable energy & mitigation

In January 2007, Citi released a Climate Change Position Statement, the first US financial institution to do so. As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important

issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbon-

emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power

for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and investing services to

clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with

a broad range of stakeholders on the issue of climate change to help advance understanding and solutions.

Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.

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