technology transformation in treasury using automation to ......sap treasury ( trm) –trade and...
TRANSCRIPT
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
Technology transformation in TreasuryUsing automation to enhance control
July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
2
High level Company Overview
The Journey of transformation at Givaudan
Treasury Modernisation: Key areas and benefits
How SAP Treasury helped transform and modernise treasury process
Questions?
Agenda
Confidential and proprietary business information of Givaudan July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
Key drivers of consumer repurchase decisionsThe fragrance and flavour industry
Source: AC Nielsen (European) study
3
Scent
4-6% of customers COGS
Smell and taste
0.5% of customers COGS
Overall experience
Brand
Fragrance image
Other
Brand image
Price
Packaging
78%
8%
5%
3%
6%
30%
15%
10%
45%
FRAGRANCES FLAVOURS
Confidential and proprietary business information of Givaudan July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
End consumer marketsThe Fragrance & Flavour Industry
Our customersMulti-national | Regional | Local | Foodservice | Private label
The cost of fragrances and flavours to our customers is typically between 0.5 – 5% of their product cost
Food BeveragesFine Fragrances Household Personal care
4Confidential and proprietary business information of Givaudan July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
Givaudan – The Industry Leader
World leader in creating memorable fragrances and flavoursInspiring our customers’ brands, delighting consumers
Confidential and proprietary business information of Givaudan 5July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
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Key facts and figures from 2016 full year results
Net Profit CHF 644 million
Total Group SalesCHF 4.7 billion
Free Cash FlowCHF 597 million
Leverage ratio19%
24.1 EBITDA%
Confidential and proprietary business information of Givaudan July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
7
High level Company Overview
The Journey of transformation at Givaudan
Treasury Modernisation: Key areas and benefits
How SAP Treasury helped transform and modernise treasury process
Questions?
Agenda
Confidential and proprietary business information of Givaudan July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
July 2017Confidential and proprietary business information of Givaudan 8
Givaudan’s Treasury Transformation - Evolution of TMS
2012 2014 2015 2016 2017
Single ERP
SAP Treasury ( TRM) – Trade and accounting
SAP In-house cash –payments on behalf
Plan for Treasury Transformation
Design and Vision
EMIR and Financial instrument valuation
FX Risk Management – Full automation and STP
Supply Chain Financing with In-house cash
Cash Management
Cash flow Forecasting
Counterparty Risk Management
Digital Treasury Platform
SWIFT and Bank Account Management
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
July 2017Confidential and proprietary business information of Givaudan 9
Improvement in “User Experience”
Future2000s1990s
2010+
Excel sheets Workstation Cockpit
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
July 2017Confidential and proprietary business information of Givaudan 10
Business drivers
1. FX Risk management
2. Working capital management
3. Cash Management, Cash flow forecasting and counterparty risk
4. Treasury set-up (Centralized / close to local business)
• Treasury is fully integrated with business for monitoring and management of FX exposures
• There is a need from business to actively manage FX exposures
• Payments on behalf (POBO) enables treasury to actively manage working capital
• Supply chain finance initiatives
• Automated data gathering and aggregation from various sources
• Easy and flexible reporting of Cash Positions, Forecasts and Counterparty exposures
Flexible models in treasury set-up –centralized treasury or treasury expert working closely with the local business
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11
High level Company Overview
The Journey of transformation at Givaudan
Treasury Modernisation: Key areas and benefits
How SAP Treasury helped transform and modernise treasury process
Questions?
Agenda
Confidential and proprietary business information of Givaudan July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
12
Giv Fin. (CHF)
Aff. A Aff. BInternal FX
Aff. CAff. D
Internal FX
Internal Fx activities were performed for 17 entities & a total of 31 currency pairs
More than 6,000 internal deals were entered in the system per year vs 1500 with the previous method
In excess of 2hrs per day to manually calculate & process everything
Transitioning from Manual to Automated….?
Remaining Challenges
Take the new process & automate the step of performing the internal Fx deals
Create a consolidated view at the Group level without manual intervention
Can SAP Risk Management capability deliver such a solution?
Leveraging the Power of the Machine
Confidential and proprietary business information of Givaudan July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
Confidential and proprietary business information of Givaudan 13
Approach
A end-to-end process approach
Exposure Identification
(Identify sources)
Exposure capture (Collect raw exposure)
Exposure Classification
(Classify exposure in time, risk etc.)
Exposure
Position (Create aggregated position
per category)
Exposure
Risk Management (Calculate risk and
hedge risk)
Exposure
Expiry (Expire the exposure on
maturity)
Action
Hedge in the market
External Hedge
Action
Internal deals - Take-over position from
subsidiaries
July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
14
Fx Management Process – Arriving at the Destination
FUTURE POSSIBILITIES
RESULTS
CHF 15MReduction in FX
Losses
30MinDaily Effort to Manage Group
Fx
ImprovedControls over end to end
process
AccuracyLess Risk of Manual Error
EfficiencyLess Trading
Volume
ExtendTo Forecasted Transactions
STPDirect Transfer
to Trading Platform
???The Journey of Improvement is
never over..
Confidential and proprietary business information of Givaudan July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
From 2008 to 2012 we had SAP implementation but at that time no measurement of the Counterparty risk. But the time with bank crisis in Europe in summer 2011 was perfect to start to think a solution.
Through the worldwide implementation of SAP visibility & accuracy of information was improved however what missed was a way on how to measure all the data stored in the system. A manual download of data into an excel spreadsheet was at that moment the solution.
In 2016 we decide to leverage on the “automation” in order to build up a portal that automatically measured the exposure with the bank
15
Counterparty Risk
Progressive Development
2008 2016
Highly Automated Solution
Confidential and proprietary business information of Givaudan
SAP implementation
started
build up a manual solution for Counterparty
risk
Centralisation, Integration &
Process Improvement…..
but
Reaching our Targeted
Destination
2012
No measurement Excel model Build up- manual Measurement
July 2017
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16Confidential and proprietary business information of Givaudan
Counterparty risk – manual measurement
Extract the data From Sap Upload the data in Excel Position report
July 2017
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17
Counterparty RiskFrom manual to automated report
Challenges
Run all Sap reports was extremely timeconsuming roughly 1.5h to 2h per days
There were access problem in theretrieve of the MTM value of derivativesdue to segregation of duty set up of thesystem.
Settlement risk was impossible to be measured unless of further time spending on daily basis.
Leveraging the automation
Run the report on a daily basis with notime consuming.
Create a consolidate view at group levelwithout any manual intervention.
Question: is SAP capable to give the answer?
Confidential and proprietary business information of Givaudan July 2017
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Confidential and proprietary business information of Givaudan 18
Thinking about the flows
Cash flow Forecasting
Challenges
Consolidation tool has only the datain group functional currency
Mix of G/L account set up. Some indocument currency and some othersin functional currency.
Project to be delivered in 6 monthswithout having no clue from wherestart.
Retrieve the actual Free cash flow bycurrency.
Thinking about the flows
Bank movements were the solution
Givaudan bank flows are centralized
All currencies cash-pooled except theone where regulation does not allowit ( INR, IDR, ARS, BRL)
Payment on behalf, olutflow centralizein one company and I/c payments viaIHC structure so without cashmovements
Treasury Flow centralize and bookwith in the system with differentcodes.
July 2017
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19
High level Company Overview
The Journey of transformation at Givaudan
Treasury Modernisation: Key areas and benefits
How SAP Treasury helped transform and modernise treasury process
Questions?
Agenda
Confidential and proprietary business information of Givaudan July 2017
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Confidential and proprietary business information of Givaudan 20
The Solution
Risks covered and the solution
SAP Operational Modules (SAP
Financials, In-house cash, Treasury)
Excel upload (If needed)
Exposure
Management
(Hedged Item)
Transaction
Manager
(Hedges)
Simplified Hedge
Management
(Hedge Relationship)
Market Risk
Analyzer
(Risk Analysis)
SAP Treasury and Risk Management
Functionality proposed to be implemented for data capture PwC solution Existing modules
360T
Risks covered in the solution:
Balance sheet exposures: Accounts payable and receivables, tax and dividends, cash balances and treasury flows
July 2017
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Confidential and proprietary business information of Givaudan
21
The Automated Process
Automated process to identify, capture and transfer exposures
Run extraction program Position report Internal deals
21July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
The dashboard displays the “net” exposure to be hedged externally. As a future scope, there is a possibility to transfer the exposures directly to the FX dealing platform.
Confidential and proprietary business information of Givaudan 22
Exposure Dashboard
External hedge
July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
Confidential and proprietary business information of Givaudan 23
Cash Management- Solution
Bank balancesDay’s cash movements
Analysis and Reporting
Treasury deals and bank account balance data from the system
Group Treasury can view their Opening and simulated Closing balance for the next 5 days and make adjustments
Treasury deals
Bank account balances
Payments
Extract bank balances for all Cash relevant bank accounts,
Payments, Treasury deals
Daily Liquidity Monitoring using daily bank balances and movements
July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
Confidential and proprietary business information of Givaudan 24
Credit Risk - Solution
Data for credit riskCredit Risk calculations
Analysis and Reporting
Treasury deals and bank account balance data from the system
Group Treasury consolidates the forecasts and performs analysis -> Actual to forecast / Historical
Treasury deals
Bank account balances
Market data
Credit Exposure =
{MtM (Deals) + Bank
Balances} * Ratings and
CDS multipliers
Compare exposure to
limits
Credit exposure based on Dynamic counterparty ratings
July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
Reporting time reduced to 10 mins!!
Confidential and proprietary business information of Givaudan 25
Cash flow Forecasting Solution
Fast entry and user experience are key to success!!
Cash forecasts from subsidiaries
Aggregation of cash forecasts
Analysis and Reporting
Pre-populated data based on predictive analytics in a web based tool
Subsidiary reviews and confirms the system generated forecast
Group Treasury consolidates the forecasts and performs analysis -> Actual to forecast / Historical
Group Treasury analyses the forecast
July 2017
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Confidential and proprietary business information of Givaudan 26
Approach - Summary
Predictive analytics for CFF proposals and dynamic CP risk management using Integrated treasury tool on ERP
Cash Management Cash flow forecast Counterparty risk
Application Daily visibility of cash
Short term view ( 5 days)
View of excess / deficit per currency
12 months rolling forecast
Forecast per currency, legal entity
View of cashflow forecastFX exposures
Dynamic tracking of CP risk
Alerts on the thresholds
Approach Build up of bank account balance based on cashflow categories
Track opening and closing balance per account
Direct approach
Pre-populated data for subsidiaries ( time saving) (using predictive analytics)
MtM approach with counterparty ratings
CDS spreads for dynamic monitoring
Tools / Technology
Integrated tool on SAP treasury
Integrated with underlying ERP
Integrated web based tool on SAP treasury
Integrated with underlying ERP
Integrated with treasury transactions and bank account positions
July 2017
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27
Q/A
Confidential and proprietary business information of Givaudan July 2017
#NP#_VZBfT8IwFMW/StMnjUy2wmbH22CbDDMswQiS vtTRmcbYLl3xTwjf3Vv 0QZOmufec30lO7hE3DZ4csW2rPZ7gKAzh+Q+fBmB5jQ9z4eRFFJNkF BFCKQnDK49d8iEe4L3yeQHg0 jiBMu2MVgaMZ6/VqrGmN61DzHxIy 4zSzoeqHMyy qJPFilTJ rJzTDZsuQ1Y/LsajigHS dkDcTT ifGd1KK3Uje85JGFH0T1lnDD1YKfqD/eK8FvZ VOqVfz jknteM8N83hDSaAmZU9TMIpo2H9LYvOzQN0q97FYS80+ot dd537hD7dT+enUbydr 9er7c39vN6sdtUy2tKYVDsKjDsj6SyeFkVJA+ iaBmM6zYM09ms6zrK4TCJSwHlP3w==_#NP#
Confidential business and proprietary information of Givaudan, may not be copied or distributed to anyone without the express written permission of GivaudanConfidential business and proprietary information of Givaudan, may not be copied or distributed to anyone without the express written permission of Givaudan
Thank you
ContactAntonio Nota Madhu PadmanabhanHead of Market Risk Senior ManagerGivaudan International SA PricewaterhouseCoopers AG