no excuse for poorly managed payments - eurofinance property investment portfolio 430 properties...

No excuse for poorly managed payments

15-17 October Eurofinance Budapest 2014

Millennium Centre, New Zealand

Who we are Goodman is one of the world’s leading, stock listed logistics property groups. We are focused on owning,

developing and managing logistics property and business space globally. We invest in industrial estates,

warehouse and distribution centres, business and office parks. We offer a range of listed and unlisted

property funds, giving investors access to our specialist services and property assets.

2

€18.4 billion

total assets under management

€14.8 billion

external assets under management

€3.1 billion

direct property investment portfolio

430 properties under management

18 million m2

business space under management

1,750 customers (approximately)

How we work

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MANAGE Our properties are in the care of in-house experts that ensure exceptional maintenance standards and

customer satisfaction. In turn, investors are assured that we remain responsible for the performance of our

assets.

Our integrated own+develop+manage business model covers all facets of the

business.

DEVELOP Our development projects are purpose-built to

meet the needs of our customers and investors

MANAGE Our properties are in the care of in-house experts that ensure exceptional maintenance standards and

customer satisfaction. In turn, investors are assured that we remain responsible for the performance of our

assets.

OWN We buy for the long term, fostering ongoing

relationships with local and global customers

and quality returns for investors.

Global+Local

4

North America

GMG 30 people

Partnership €1.2b in assets2

11 properties

Brazil1

Partnership €0.7b in assets2

4 properties

New Zealand

GMG 60 people

Managed

Funds €1.4b in assets

19 properties

Australia

GMG €1.7b in assets

28 properties

292 people

Managed


174 properties

Europe/UK

GMG €0.9b in assets

10 properties

273 people

Managed


169 properties

Japan

GMG 61 people

Managed Funds €0.7b in assets

11 properties

Partnerships €1.1b in assets2

6 properties

Total

GMG Managed Funds

€3.1b in assets €18.4b in

assets

38 properties 430 properties

1,074 people

1 Brazil launched 8 November 2012, with 50/50 joint venture between Goodman and Wtorre 2 Estimated end value

We think globally and act locally

Continental Europe

5

assets in 12 countries

137 logistics

warehouses

3

business

parks

Continental Europe

+ Property management is one of the three pillars of our integrated business model

and Property Services is a strategic department

+ The top three drivers for satisfaction (*)

1. Good contact with Goodman Property Services managers

2. In-house property management and long-term relationships

3. Knowledge and expertise of the team (for decision makers)

Responsiveness and speed of action (for site managers)

(*) Following a customer satisfaction survey in September 2013

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Goodman European Logistics

Fund (GELF)

Goodman Princeton Holdings

(GPH)

Goodman European Business

Parks Fund (GEBPF)

+ Current portfolio value of

€3.2 billion and 104 logistics assets

+ High quality warehouses and logistics

centres in recognised and emerging

distribution locations in Europe with

access to major transport routes and

infrastructure

+ Occupancy rate 96%

+ Partnership with Chambers Street

Properties* established in 2010

+ Includes nine assets in Germany and

France with a total value of €272.3

million

+ Targeting logistics developments and

acquisitions in Continental Europe

(primarily Germany, France and

Benelux)

+ Provides institutional investors with

access to an actively managed portfolio

of business parks with a total value of

approx. €153.6 million

+ Business parks are located in Spain

(Madrid and Barcelona), Goodman also

manages the Air Park Paris-Sud

business park in France with a value of

€27.7 million

Continental Europe

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Completed projects 528,500 m2

Customer Country Lettable area

Zalando Germany 78,500 m2

Daimler Germany 35,500 m2

Kühne + Nagel (K+N) Germany 30,000 m2

mdexx Germany 20,000 m2

Schenker Germany 82,000 m2

Continental Germany 5,500 m2


DSV Germany 21,000 m2

Schnelleke Germany 21,000 m2

Akso Nobel Germany 11,000 m2

Terramar - K+N -

NRF Poland 14,000 m2

Walki Poland 11,000 m2

Ingersoll Rand Czech

Republic 28,500 m2

Amazon France 88,000 m2

Carrefour France 32,500 m2

Projects under

construction 514,500 m2

Customer Country Lettable area

Volkswagen Germany 25,000 m2

DHL Germany 5,000 m2

Rewe Germany 11,000 m2


Hammer Germany 103,700 m2

Grimonprez France 30,000 m2

Amazon France 11,700 m2

Amazon Poland 123,000 m2

Confidential Poland 25,900 m2

Intermarché Poland 82,000 m2

Samsung Poland 15,000 m2

For lease Germany 10,000 m2

DHL France 16,500 m2

+ Goodman has been named the top European developer three years in

a row by Property EU.

Our customers

Borg Warner

Continental

Faurecia

Rinder

SAS Automotive

STARCO

Valeo

Volkswagen

automotive

DCB Group

Duvel

Metsa Tissue

Moët Hennessy (LVMH)

Oriflame

Rossmann

Tupperware

Vegaland

consumer goods

KMS

Amica

BSH - Bosch Siemens

Philips Lighting

Stanley Black & Decker

Whirlpool

consumer appliances

Amazon

Staples

Zalando

e-commerce

TK Maxx

Tommy Hilfiger

fashion

CaseTech

Farutex

food

BLG

Bertrans

CEVA

Cinram

DHL

Distrilog

logistics service providers

DPD

DSV

Easydis

Entrepo-dis

FCC Logistica

Fiege

Eurodruk

Recall France

Ruch

Scot

Turbomeca

Vandeputte

manufacturing

Hartmann

NextPharma

Nutricia

Stryker

pharmaceutical medical

Duty Free Associates

Ingram Micro

LeaderPrice

Lidl

Supermarches Match

retail/wholesale

Goodman Europe: How the group was formed.

9

Dec 2005 Acquisition of Arlington UK Fund management + PS

May 2006 Acquisition of Eurinpro Logistics Development CE

Nov 2006 Acquisition of Akiler UK BP Development UK

Dec 2006 Launch of GELF Fund Management

Apr 2007 Acquisition of Rosemound Logistics Development UK

Jul 2007 - Rebranding to Goodman

+ Initially fast growth by acquisition.

+ Multiple of ERP systems

+ BUT: by 2010 all on same platform.

+ AND Centralized Management Structure with CE HQ in Brussels.

O

W

N

M

A

N

A

G

E

D

E

V

E

L

O

P

CE Treasury: Facts and Figures

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+ Transactions in 13 countries

+ 450 bank accounts

+ 15 banks: 2 main bank groups

+ Approx 70,000 movements over

accounts per year

+ Treasury services for Group and Fund side

+ No co-mingeling of funds allowed

Ce Treasury: Prime principles

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Automation

• Daily Routine

• Payment Cycle.

• File upload

• ICO Funding Process

Transparancy

• 9.00 Am account balances visibility.

• Spent visibility

Control

• Payment file security

• Data Validation Report & Dashboard.

• Pre-Isabel controls

Efficiency Gain

Time:

Better use of Cash:

Better Reporting:

Less Human Error:

Clean Audit Trail:

2 questions we have asked ourselves when starting to work on those principles:

+ What is the wingspan of Treasury?

+ What systems do we need to ensure the above principles are met?

Payment cycle: Treasury becomes Purchase to Pay

(P2P)

+ Answer to Q1:

– Wingspan from Ordering to Bank Statement Recon.

+ Answer to Q2:

– We started with the review of all our processes: Identify weaknesses,

grease,... All that does not fit the 3 principles.

– Look ahead: SEPA, XML, E-invoicing, E-bam, swift for corporates, etc...

– Solution for now versus the long term: Do not paralize in front of the long term

view.

– Mix of 3 party software and custom built software.

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INVOICE MATCHING

INTERFACE TO/FROM

ERP

PAYFILE CREATION

PAYMENT STATEMENT BOOKING

AND RECON

Phases of the Purchase to Pay cycle

13

PURCHASE ORDER

CREATION

ELECTRONIC APPROVAL SCANNING

OCR

ONLINE INTERFACE BOTH WAYS

ONE SEPA PAYFILE

Cross (Bank/ Country/

Currency)

ISABEL

AUTOMATED MATCHING OF

PAYMENTS AND

RECEIPTS

ELECTRONIC RECEIPT

3TH PARTY SOFTWARE PROVIDER CUSTOM BUILT

3TH PARTY

SOFTWARE

PROVIDER CUSTOM BUILT

Purchase Order Creation – Invoice scanning

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Po Creation Po Approval Po Receipt

INVOICE RECEIPT

INVOICE SCANNING

3 WAY

MATCHING • Amount

• Supplier

• Receipt

Transfer to ERP

OCR

Update P2P

SOURCE = ERP

ERP checks data

combinations

Purchase orders – principles – consequences

+ Principles:

– PO number on invoices

– All suppliers are dealt with as PO suppliers

– Strict adherence to process and procedure

– Continuous training off staff and keep up awareness of suppliers

+ Advantages

– No invoices left/lost in drawer

– Less late payment fines

– Upfront approval prior to commitment gives better control over spent

– Allows reorganisation of AP department

– Spent database as basis for procurement department

– Clear audit trail

+ Disadvantages

INVOICE MATCHING

INTERFACE TO/FROM

ERP

PAYFILE CREATION


AND RECON


16

PURCHASE ORDER

CREATION


OCR


ONE SEPA PAYFILE


Currency)

ISABEL


PAYMENTS AND

RECEIPTS

ELECTRONIC RECEIPT


3TH PARTY

SOFTWARE


Payfile creation & Payment execution

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ERP

Extract from ERP

•Selection on due date

Data validation Test

• Iban, bic, new, change Creation of payment

file

Calculation of ICO funding needed

Creation of ICO payment file

Day 1 Day 2

Payment file specifics:

XML

Sepa compliant

Hash code protected

X-bank

X-Country

One file for EUR and one file for non-eur

Custom made: Pro Con

Payfile creation & Payment execution

18

Payment File Upload in

Isabel Check Hash

code Sign and Release

ISABEL

• Multibank

• Multi-Currency:

INVOICE MATCHING

INTERFACE TO/FROM

ERP

PAYFILE CREATION


AND RECON


19

PURCHASE ORDER

CREATION


OCR


ONE SEPA PAYFILE


Currency)

ISABEL


PAYMENTS AND

RECEIPTS

ELECTRONIC RECEIPT


3TH PARTY

SOFTWARE


Automated Statement booking and Recon

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ASPS

INTERFACE

- Posting

- Matching

- Suspense

booking

- Reporting

MT940 MT940

+ MT940 format

+ Overall automated matching rate approx 75pct

+ Payments over 90pct

+ Receipts around 60pct. increasing as mapping finetuned.

+ Enormous Time gain

+ Increased consistancy in booking statements.

ERP

Custom made: Pro Con

Automation & Control: Payment cycle

21

OPUF Creation and HASH Code

generation

ISABEL UPLOAD

and HASH code check

ISABEL Signature &

release

ASPS bank booking

and exception reporting

Account Data

Validation

AP STATUS

“OK”

GL ENTRY

CODA

PO and

Invoice

Match

P2P

Next steps

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+ Payment on behalf of

+ Payment factory set up

+ E-invoicing

+ E-bam

+ TMS

+ Swift for corporates

http://www.clker.com/clipart-database-shape-2.html


http://www.clker.com/clipart-database-1.html

http://www.clker.com/clipart-23293.html

Nuggets

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Tips

+ Don’t make your initiatives “mainly” cost saving projects

– in the setup phase you will have a lot of additional costs which are not always visible prior to

launching the project.

– The projected savings sometimes only come overtime. Make sure you cover the full cost

estimate in the Budget prior to launching the project.

+ Don’t be to overoptimistic on timing.

– Watch out for ambitious project implementation objectives in your yearly personal goals.

– Taken into accounts delays that are out of your control.

+ Evolution not Revolution.

– Get buy-in prior to taking initiatives. Take the time to explain to the stakeholders what the

advantages are.

– Make a mind-map to ensure you capture all of the angles.





Q&A

24

Gino Hoornaert

Director Treasury & Procurement

Goodman

[email protected]





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