PABLO VÉLEZ , Global Cash Operations Manager, ARCHROMA

ALBERTO RENEDO, CEO Co-founder, Digital Finance

• S/4HANA Finance

• BLACKLINE

• TIS

• HIGH RADIUS

SAP offering

• S/4HANA Conversion Road• S/4HANA Finance • SAP Leonardo• S/4HANA Cloud Platform

KEY PARTNERS

✓ Plataformas en la nube que se integran de forma nativa con el ERP.✓ Modelos SaaS, en pago por uso o en suscripción anual adaptada a cada proyecto.✓ Bajo la garantía y certificación de SAP así como de los demás ERPs de referencia.

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SMART PAYMENTS – BETTER DECISIONS - TOGETHER

Significant Cost SavingsIncreased Transparency

(BETTER DECISIONS)Fraud Prevention

Compliance

(Sanction Screening)Seamless ERP Integration

Fast Roll-Out Strong Analytics Focus

THE OLD WORLD - WITHOUT TIS

Headquarter SubsidiariesShared Service

Centres

E-Banking Tools Treasury SystemsIn-house Projects

and Service Bureaus

ERP System ERP System ERP System

HR / Treasury /

Legacy

Bank Bank Bank Bank Bank Bank Bank

THE NEW WORLD WITH TIS

Bank Bank Bank Bank Bank Bank Bank

Headquarter SubsidiariesShared Service

Centres

ERP System ERP System ERP System

HR / Treasury /

Legacy

Plug-in Agent Agent Agent

Dashboards, forecasting, business intelligence

Single point of contact

Host-to-host connection; EBICS; SWIFT

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SET UP

16/06/2019

We continuously challenge the status

quo in the deep belief that we can make

our industry sustainable.

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THANK YOU!

PABLO VÉLEZGlobal Cash Operations

Manager

ARCHROMA

ALBERTO RENEDOCEO Co-founder

DIGITAL FINANCE WWW.DIGITALFINANCE.PRO

Company History

1886Foundation Kern & Sandoz (dyes)

1995New operating structurealong Pharma, Nutrition, Agribusiness/ Chemicals sectors

1996Sandoz and Ciba-Geigy from Novartis

1995Clariant spin-off and IPO

1997Acquisition of HoechstSpecialty Chemicals

2000 Acquisition of BTP

2013Disvestment of textile, paperand emulsions businesses to SK Capital Partners

2013 Archroma

Acquisition of strategic stake in M. Dohmen (May 2014) and full package 2019

Acquisition of BASF Textile Chemicals (July 2015)

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THANK YOU!

PABLO Cash Operations Manager

ARCHROMA

ALBERTO RENEDOCEO Co-founder

DIGITAL FINANCE WWW.DIGITALFINANCE.PRO

Introduction to Archroma: Our Products

Brown dyes & strength agents used in retail

packaging

Barrier coatings usedin coffee cups

Eco-friendly, Advanced Denim dyes

Oil and grease repellentsused in fast food packaging

EarthColors: colourantsproduced from non-edible

nuts and leaves

Optical Brightening Agents and crosslinkers

for high gloss magazines

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TREASURY

SET UP

16/06/2019

SET UP

8 /Strictly Confidential

Bas Coolen, Group Treasury

Archroma presence worldwide

Mexico

Canada

Brazil

ChinaJapanUSA

Argentina

Chile

Peru

Columbia

Venezuela

Guatemala Honduras

Indonesia

Vietnam

Thailand

India

Bangladesh

Pakistan

Turkey

Egypt

Sweden

UK

Spain

France

Italy

Germany

Hong Kong

Singapore

NL

Finland

Russia

Austria

Belarus

CHKazakhstanBE

DK

Corporate headquarters

CH: Head of TreasuryDE : Global Treasury Cash

ManagerSP: EMEA Treasury AnalystBR: Latam Treasury Manager SG: Asia Treasury Manager

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9 /Strictly Confidential

Bas Coolen, Group Treasury

Current state of Treasury

❑ Bank structure – 5 Core Banks; 8 other (partner) banks – 10 local banks

❑ Bank Account structure - 250 Bank accounts in place

i. 75% operational accounts

ii. 25% Treasury accounts (2 Hubs – Luxembourg and Switzerland)

iii. 95% covered with MT940

❑ Bank Mandates maintenance centralized

❑ Full daily Cash visibility – 95% of accounts with MT940 (directly to TIS or pre-consolidated through main House Bank)

❑ Centralized release of ALL payments through TIS:

❑ In-House Bank: Go Live August 1st 2016 (TIS – Reval combined)

❑ Treasury Management System: Reval (SAAS) – InHouse Bank

❑ ERP – SAP Globally

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WWW.DIGITALFINANCE.PRO

WHY TIS?

ARCHROMA

11 /Strictly Confidential

Bas Coolen, Group Treasury

• STP SAP processing• SINGLE global Platform• Improved Security users• Outsource file customization• InHouse Bank Automation

(with Reval)• Leverage Standardized

formats• Alternative for SWIFT• Bank Account Management• Better control over bank

signatory mandates

“Best of Breed” Approach

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12 /Strictly Confidential

Bas Coolen, Group Treasury

Single Platform for all bank communication

XM

L

MT9

40

SAAS/Cloud environment

In-House BankMT101 / MT940 (IHB)

XML / MT940 (Bank)

IDO

C

MT9

40

TIS agent

SAP plugins

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13 /Strictly Confidential

Bas Coolen, Group Treasury

In-House Bank: TIS as the enabler!

1. Create IDOC for inter-company payments to IHB* Reval using current SAP setup

2. TIS converts IDOC into common PAIN ISO xml and sends to reval

3. Reval processes IC payments on internal paying and receiving IHB accounts

4. Reval creates end of day MT940 SWIFT message types and sends to TIS

5. TIS passes MT940 to SAP

6. (Internal) Bank reconciliation in SAP

SAP TIS reval

IDOC PAIN ISO xml

MT940 MT940Inhouse BankProcesses

reformatting

Recon-ciliation

IC Pay-ment run

1 2 3

456

123456

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14 /Strictly Confidential

Bas Coolen, Group Treasury

Bank Account Manager

• „single source-of-truth“ - Global Database for all Bank accounts

• Support central maintenance of Bank Mandates - Includes all bank signers

• Annual centralized review with external and internal Audit

• Reporting to be developed

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16 /Strictly Confidential

Bas Coolen, Group Treasury

Bank Transaction Manager – some choices to be made ahead!

• Connectivity: EBICS, H2H, etc but NOT SWIFT

• File format: File formatting vs file forwarding

• Bank: Re-thinking your bank landscape ahead of the roll out pays off.

• Payment Types:

‒ we took the opportunity to stop paying by checks

‒ What is supported – and what not (F24, etc)

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Bas Coolen, Group Treasury

Banking LandscapeHoldCo’s

Switzerland

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Bas Coolen, Group Treasury

2018201720162015

EMEA & IHB• BAML, UBS, CS, COBA• SEPA countries easy• Some Challenges in CH• IHB initial set up,

testing and go live

TIS global roll out

Bank Migration Asia & Americas + TIS in US• Too many local banks• Needs grouping of

banks to facilitate TIS roll out

• Time consuming but PAYS OFF!

• Roll out TIS in USA/CA (BAML)

ASIA & Americas• BBVA (CL, PE, VZ, AR

and CO)• BAML => BR, MX, IN,

CN, TH, JP• HSBC in HK, SG, ID• Challenging: WHT, local

language, special formats (“Boleto”)

Continuous Work• Payroll LATAM• Migrate BAML in Asia

to HSBC• Integration of

Acquisitions• Ongoing optimization• BDM+

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Continuous Work• Payroll LATAM• Migrate BAML BBVA in

LATAM to HSBC• Integration of

Acquisitions• Pakistan, Bangladesh• Turkey

2019

19 /Strictly Confidential

Bas Coolen, Group Treasury

Key take away for global implementation

• Design Bank landscape first (consolidation) enables a quick implementation

• EMEA/NORAM is a quick win, LATAM and ASIA remain challenging (various local requirements)

• Make sure vendor master data is CLEAN!

• File forwarding can be an option depending on your specific needs

• Costs were under control partly because internal TIS technical know how was build internally

• Key to understand deeply used of payment methods per country and bank

• One token is still the vision, but exceptions will persist to exist

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THANK YOU!

PABLO VÉLEZGlobal Cash Operations Manager

ARCHROMA

ALBERTO RENEDOCEO Co-founder

DIGITAL FINANCE WWW.DIGITALFINANCE.PRO