Alex Ellison

Empower Treasury Organizations with SmartMoney Management

Alex Ellison - SAP, CoE FinancePresentation for Finance Forum, Zurich, March 2014

Confidential

© 2013 SAP AG. All rights reserved. 2Confidential

The information in this presentation is confidential and proprietary to SAP and may not be disclosed withoutthe permission of SAP. This presentation is not subject to your license agreement or any other service orsubscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in thisdocument or any related presentation, or to develop or release any functionality mentioned therein. Thisdocument, or any related presentation and SAP's strategy and possible future developments, products andor platforms directions and functionality are all subject to change and may be changed by SAP at any timefor any reason without notice. The information in this document is not a commitment, promise or legalobligation to deliver any material, code or functionality. This document is provided without a warranty of anykind, either express or implied, including but not limited to, the implied warranties of merchantability, fitnessfor a particular purpose, or non-infringement. This document is for informational purposes and may not beincorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, exceptif such damages were caused by SAP´s willful misconduct or gross negligence.

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Empower Treasury Organizations with Smart MoneyManagement

Is the financial crisis over? Not for the Treasurer!

The world of treasury has been turned upside down and now more than everTreasurers are looking to manage the money in a smart way.

Technology is vital to treasury operations and for good risk management.

Learn how SAP leads the way and empowers treasury organisations with a broadtreasury platform and smart innovations.


Line of Business Finance Buying Centers

Accounting andFinancial Close

Reporting andDisclosure

Financial CloseGovernance

Financial Accounting

Entity Close

Corporate Close

Financial Reporting

Treasury andFinancial RiskManagement

Payments and BankCommunications

Debt and InvestmentsStrategies

Financial RiskManagement

Commodity RiskManagement

Cash and LiquidityManagement

Treasury

Manage FinancialPerformance

Develop and TranslateStrategy

Profitability andCost Analysis

Planning, Budgetingand Forecasting

Planning & Controlling

Collaborative FinanceOperations

Real EstateManagement

Finance SharedServices

Travel Management

ReceivablesManagement

CollaborativeInvoice to Pay

Finance Operations

Manage Risk andCompliance and

Audit

Global Trade Services

Fraud Management

Risk and ComplianceManagement

Internal Control &Access Management

Risk & Compliance &Audit

Audit Management

Business Insights


FinancialSteward

Operator

Strategist

Treasurer


High Level End to End Process of a Treasury Transaction(Deal)

Deal request

e.g. coming fromCash Management

Check Limitutilisation report

Trade of the deal inSAP or upload from

marketplaceAutomatic

correspondence

Automatic matchingand contractsettlement

Approve deal

Posting of the deal

Month endprocessing

Revaluation andaccruals

Additional onlinelimit check available

CashManagement Front Office Back Office Accounting

TR Transactionmonitoring e.g.

coming from TMS

Make payments


Treasury applications from SAP

SAP Treasury and Risk ManagementRisk Analyzers

Transaction ManagerMoneyMarket

ForeignExchange

Secu-rities

Com-modities

Deri-vatives

DebtMgmt

Manage Global FinancialRisks

Optimize Debt andInvestment Strategies

Manage Cashand Liquidity

SAP Cash and Liquidity Management

Cash Management Liquidity Planning

Optimize Payments andBank Communication

SAP In-House Cash

SAP Bank Communication Management

Exposure Management Hedge Management

Credit Risk Analyzer Market Risk Analyzer Portfolio Analyzer

Financial Excellence with Treasury Applications from SAP

SAP CashManagement 2.0 on

HANA*

SAP FSNin theCloud

* In Planning


Treasury Solutions PortfolioVery Important - One Platform for all Connectivity

SAP In-HouseCash

SAP BankCommunication

Management

SAP Cash andLiquidity

Management

Paym

ents

,Sta

tem

ents


Financial Crisis and GlobalizationCash TransparencyBad BanksCounterparty Risk

RegulationSEPAGlobal ISO20022EMIR

New TechnologyLeveraging new technologies andcapabilitiesMobility, Cloud, Big Data

EfficiencyCash Flow OptimizationStraight Through ProcessingIntegration and Automation

CentralizationPayment FactoriesMulti Bank Gateways (SWIFT)In-house-Bank function

Cost ReductionFocusing on working capitalReduction of bank feesSimplify IT Infrastructure

* Source Treasury Today

Market Trends and Key Challenges for Treasury 2014

Trends & Challenges Challenges & Solutions


What does Best Practice for Cash Management look like?

Source: * PwC Global Treasury Survey 2010/11 - 583 Individual Responses - 34 Countries - All Continents





ForeignExchange

Secu-rities

Com-modities

Deri-vatives

DebtMgmt







SAP In-House Cash






HANA*

SAP FSNin theCloud


With an In-House Bank the subsidiaries ‘bank with’ thecorporate HQ (usually Treasury) can include POBH





ForeignExchange

Secu-rities

Com-modities

Deri-vatives

DebtMgmt







SAP In-House Cash






HANA*

SAP FSNin theCloud


Summary: BC Yesterday and Today - Integration toSWIFTNet with SAP Bank Communication Management

Business Strategy & Initiatives

Bank Communication Yesterday Bank Communication Today

SimplificationReduce the number ofproprietary payment standardsand bank-specific e-bankingproducts and setting up a singlecommunication channel to (egSWIFTNet)

Cost ReductionReduce maintenance costby communicating with allthe banking partnersthrough this one channel

ComplianceEnhance straight-through-processing (STP) rates andensure traceability of thewhole business process


SAP Bank Communication ManagementProcess Steps


Focus areas in Treasury addressed with SAP solutions

Streamlined Processes ( SAP Treasury & Risk Management)Straight-through processing and automationOne single version of the truth for treasury dataEfficient and effective process support (impossible without technology)

Integration - with internal systems ( SAP Treasury & Risk Management)With internal systems (accounting)With internal systems (AP/AR/SD/MM)Cash forecastingOne single version of the truth (Cash Management)

Integration - with external systems ( SAP Treasury & Risk Management)With on-line tradingConfirmation matchingRates feeds

Cash structures/ Banking connectivity (SAP In-house Cash,Consolidation of accounts/banks … SAP Bank Communication Management)Adoption of new standards (SEPA, CGI ISO 20022)Streamlining of payments (payment factory, in-house bank – SAP In-house Cash)Consolidation of payments / bank statement retrieval (SAP Bank Communication Management)





ForeignExchange

Secu-rities

Com-modities

Deri-vatives

DebtMgmt







SAP In-House Cash






HANA*

SAP FSNin theCloud

* In Planning


Key treasury pain points highlights visibility over cash

Historically, visibility over cash was closely related to bank balance reporting. The definition has widened toinclude visibility over projected cash inflows and outflows globally and associated foreign exchange riskexposures. Hence, it does not come as a surprise that visibility over cash and financial risk exposures isranked as the biggest pain point by 36% of the respondents.

Source: Deloitte


What is on the agenda for Treasury in 2014? – A PwC studyhighlights what is “top of mind” for Treasurers

Source: * PwC Global Treasury Survey - 583 Individual Responses - 34 Countries - All Continents


Liquidity Planning

Liquidity Forecast

Cash Position

1-5 days Up to 24 weeks 1 yearPlanning horizon

Bottomup

Topdown

Planning process

Cash Management with SAP TodayTerminology


SAP Cash and Liquidity ManagementAn Overview

Bankaccounts

In-Housecash banks

Bankclearingaccounts

Paymentsin transit

TreasuryDeals

Memorecords

Intra-daybankstatements…

Customer/Vendor-open items

Blocked items

Down paymentrequests ...

DisputesEarmarkedfunds

Real estateInfrastructureProjects…

Purchaserequisitions

Purchase orders

Sales orders…

LogisticsFinancialsIndustrySolutions

Financials

Non-SAP

Non-SAP

Non-SAP

Cash Position Liquidity Forecast


Cash Management Dashboard

C:\Users\i022596\AppData\Local\Microsoft\Windows\Temporary InternetFiles\Content.Outlook\Z2TI9N55\CashDashboard_CDC.swf





ForeignExchange

Secu-rities

Com-modities

Deri-vatives

DebtMgmt







SAP In-House Cash





New SAP CashManagement 1.0 on

HANA*

SAP FSNin theCloud

* In Planning


Heading to the Next Curvein 2014

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 24

SAPERP

SAP HANA

CashManagement

Action

Insight


Financials is the core of the Business Suite on HANAvalue proposition and launched in the market in 2014

Business Suite on HANA

SAP HANA Platform

AlignedSingle Source of Truth

AgileReal time finance processes

PredictiveInsight and foresight

IntegratedBusiness Planning

New capabilities and enhancedintegration for ERP and BPC.

SAP Smart CashManagement

New product forGroup Cash Management

SAP SmartAccountingAlternative in-memory

functionality for ERP customers


SAP Cash Management Overview

Cash Management

SAP Financials package 1.0

SAP HANA

Centralized Bank Account Management

Real Time CashPosition

Intuitive CashFlow Analysis

PredictiveLiquidityForecast

Liquidity Plan

Blue block is SAP Smart Cash Management scope.Yellow block is the basic systems for SAP Smart Cash Management.


Get More Visibilityon Sources of Cash

Ensure liquidity andreduce risks

Increase efficiency andoptimize Working Capital

Analyzing global bankbalances and cashpositions based on datafrom SAP and non-SAPsystems Create moreaccurate mid-and long-term cash forecasts viareal time analysis

Leveraging SmartBusiness to gain real timeinformation in differentplaces to get full picture

Monitor KPIs and alerts tomitigate risks and triggeractions

Wisely use money, investsurplus part to get return,and reduce financial cost

Supporting group treasuryfunctions to ensure liquidityand optimize financingactivities.

Smart Cash Management, powered by HANA


SAP Smart Cash Management on HANA

SAP Cash Management on HANAis the answer for Cash Managersand Cash Departments

Supporting the trend of centralization of Treasuryfunctions

Cash Positions - Group-wise 0-7 days CashPositions with integration to mid / long termLiquidity Forecasting

Cash Flow Analysis, – collected fromheterogeneous systems using real-time multi-dimensional analytics powered by HANA

Central Bank Account Management includingOverdraft Limit Analysis, Bank Risk Analysisincluding Signatory management and workflowcapabilities

Smart Business for Cash Managers – dashboardanalyzing big data to monitor most critical KPI’susing a mobile device


KPI-driven Application

Liquidity Trend Bank Risk Analysis Liquidity Structure

Yesterday’s Cash Positions varianceanalysis

Today’s Cash Positions forecast

Cash Positions by currency, bank, ororganization

All KPIs in Cash Manager’sDashboard

A KPI Catalog with a broad range ofKPIs is provided

Dashboard arranged by end users

Major KPIs in one screen, for bothdesktop and mobile

Can drill-down into more detailedanalysis and reports

User can add more KPIs…


Centralization of Bank Accounts and Cash Positions

Bank AccountManagement for allbank accounts of theenterprise group

Bank Account s owned and controlled byCash Managers, including bank accountsused by entities outside of local SAP ERP

Separated from G/L Accounts

Direct Cash Positions imported from variousbanks; immediate and real-time CashPositions of all entities (including thosewhich are outside of local SAP ERP) forCash Managers

Thorough view of Signatories, OverdraftLimits of bank accounts

Workflow for opening or closing bankaccounts


Real-time Cash Flow Analysis and Liquidity Forecast

Real-time and multi-dimensional actual cash flowanalysis, and liquidityforecast

Real-time analysis, no batch job is needed

With breakdown on Profit Center, Segment,Vendor, Customer and Liquidity Item

Combine deterministic, statistic, and man-made forecasting systematically together

Drill-down from aggregated figures intodetailed line items

With Exposure Hub, being able to analyzeand forecast on data collected from multiplesystems


Group-wise Liquidity Forecast / Plan

Support group-wise forecastby combining man-made andautomated forecast together

0-7 days Cash Positions Plan

30-60 days Mid-term Liquidity Plan

Long-term Liquidity Plan driven by businessplanning (Sales, Purchasing, P/L planning)

Monitor the completion status of theplanning exercises across the whole group

Integration to Business Planning andConsolidation


Centralization of Cash-related information

HANA Analytics(SAP Content &

Virtual Data Model)

Any ERP

HANA Apps(Next Generation &

Strategic Investments)

Any ERP

IHC

TRM

SAPBusiness

Suite

SAP SmartCash

Managementpowered by

HANA

HANA DB

SAP SAPExternalTMS

SAP

HANA DB

Any DB Exposure Hub

BC

M

Integrate Cash & Liquidity-related information fromheterogeneous environment

Integrate Logistic, FI, and TRM data from local and non-local systems into Exposure Hub

Cash Management, Credit Management, and RiskManagement shall the same source data in ExposureHub. No unnecessary duplication

Support both single system or side-by-side deploymentoptions

Minimum disruption for installed base customers


Adopt Innovation at Your Own Pace

SAP Business Suitepowered bySAP HANA

SAP ERP

SAP HANA

SAP BusinessSuite

SAP HANA asside-by-side

scenario

Any DB

SAPERP

SAP HANA

SAP Business Suiteon

SAP HANA

SAP ERP

SAP HANA

SAP ERP

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 34

Side by Side Half and Half All in One


Deployment Option A – Cash Management side-by-side

HANA

ERP (anyDB)

Cash Managementon HANA


ManagementAccounting

Payment

SD

MM SLT / RFCIn order to replicatenecessary data from

Logistic and FI

In-house Cash

BankCommunication

Management

Treasury & RiskManagement


Deployment Option B – Cash & Treasury Workstation

HANA

ERP (anyDB)

Cash Managementon HANA

In-house Cash

BankCommunication

Management




Payment

SD

MM RFCIn order to integratenecessary data from

Logistic and FI

Payment Orders to IHC


Deployment Option C – Central ERP / Financial

HANA

ERP on HANA

Financials



Financial Operations

CashManagement

on HANA

In-house Cash

BankCommunication

Management


SD

MM

PP

PS

Home

Cash Manager

Bank StatementSuccess RateFeb 1st 2014

95.0%

Cash Pool Amount ByDeficit - Feb 1st 2014(M€)

-26.8

Bank RiskFeb 1st 2014 (M€)

15.7

Cash PositionToday (M€)

26.0

Liquidity StructureFeb 1st 2014 (M€)

Current Account 1.2

Investment 0.78

Debt 1.4

Cash FlowWeek-to-date (M€)

Inflow 200.2

Outflow 192.5

Liquidity ForecastWhole Company, In 30 Days

1,98M2,47M

Feb. 1st, 2014 24%

Payment StatisticsToday (M€)

Accepted By Bank 200.2

In Approval 42.5

Rejected by Bank 55.0

Overdraft LimitFeb 1st 2014 (M€)

Available 200.2

Consumed 42.5

Exceeded 55.0

Cash Position

Cash Position by Bank & Currency

26,046,372.00EUR

Filtered by Region (Europe), by Country (France), by Currency (All), by Bank (All), by Company (0001)

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000

Cash Position

HSBCFrance

RBS France

CITI BankFrance

DeutscheBank

France

BNPParibasFrance

Bank ofFrance

Laikiash

EUR

USD

GBP

EUR

USD

EUR

USD

EUR

USD

EUR

USD

EUR

USD

EUR

Value

Drill Down by Currency

EUR 1,246,372.00

Drill Down by Region

Drill Down by Currency & Country

Drill Down by Bank

Drill Down by Bank & Currency

Navigate to Bank Account

Cash Position

400M610M

320M

190M

260M

Cash Position by Location

1,980,176,657.00USD

Filtered by Region (All), by Currency (All), by Liquidity Structure (All) and by Timeframe (Today)

Cash

Bank StatementSuccessful Rate

Cash Position


New Cash Management based onFinancials Add-on for SAP Business

Suite powered by SAP HANA

Cash Management Cash Managementfor SAP Business Suite on

SAP HANA

• ERP based CashManagement functions

• Focus Electronic BankStatements, Cash PositionManagement, LiquidiyForecast

• Memo Records

• Limited analyticalcapabilities

Cash Management Options

• Smart BusinessDashboards for CashManagers

• KPI’s based reporting onexisting ERP systems

• Performance optimizationsfor Cash Position

• New Cash Managementsolution combininganalytical functions andrelated transactions

• Fiori embedded (UE)

• Including Bank AccountManagement

• Based on Exposure Hub

• Cash Forecasting andPlanning functionsembedded


Smart Cash Management poweredby HANA

Cash Management Cash Managementfor Suite on HANA

• ERP based CashManagement functions

• Focus Electronic BankStatements, Cash PositionManagement, LiquidityForecast

• Memo Records

• Limited analyticalcapabilities

Cash Management Options

• Smart BusinessDashboards for CashManagers

• KPI’s based reporting onexisting ERP systems

• Performance optimizationsfor Cash Position

• Improved Bank Statementprocessing

• New Cash Managementsolution combininganalytical functions andrelated transactions

• Fiori embedded

• Including Bank AccountManagement

• Based on HANA datamodel

• Cash Forecasting andPlanning functionsembedded


New Cash Management on HANA - Roadmap

Q2 2014

Q4 2014

Cash Management on HANA 1.0Bank Account Management

New Cash Positions

Group-wise Cash Positions 0-7 days forecast,and 30 days liquidity plan. Built-in VarianceAnalysis

Real-time and multi-dimensional cash flowanalysis and liquidity forecasting integratedinto Logistic, FI, and Treasury processes

Bank risk analysis

Can be deployed side-by-side to one SAPERP system, together with IHC and BCM.

Mobile App - “Cash Manager” Insight-to-Action KPI Cockpit 2.0

Cash Management on HANA 2.0Bank Relationship Management, e.g. bank feeanalysis

Predictive forecasting; customer behavior /pattern analysis for more precise cash inflowforecasting

Embedded mid/long-term cash budget /liquidity planning

Contextual Memo Record for detailed cashflow planning

FX Hedge Planning and variance analysis

Service Requests (payment, letter of credit)from subsidiaries

Integrate information from multiple non-localsystems

Mobile App – “Cash Manager” Insight-to-Action KPI Cockpit 3.0





ForeignExchange

Secu-rities

Com-modities

Deri-vatives

DebtMgmt







SAP In-House Cash






HANA*

SAP FSNin theCloud

* In Planning


Corporate Client

Subsidiary

SubsidiarySA

PB

ank

Com

mun

icat

ion

Man

agem

ent

SAP In-HouseCash

AccountsPayable

AccountsReceivable

Treasury

Manual Payments

SAP Integration Package for SWIFTSAP NetWeaver PI

SAP ERPSubsidiary

SAP Business Package for EBICS

FinancialServices Network

4 Banking Connectivity Options

FSN

Con

nect

or

H2H /

Payments

Statements

Host to Host

Cus

tom

Con

nect

or H2H

Other /ServiceBureaus

1

2

3

4


IssueinvoiceIssueinvoice

ForecastcashForecastcash

Financeworking

capital

Financeworking

capitalResolvedisputesResolvedisputes

CollectcashCollectcash

CheckcreditCheckcredit

Settle& paySettle& pay ReconcileReconcile

Financial Supply Chain

Banks and Financial Institutions

PaymentProcessing

CashManagement

FXTrade

FinanceA/P

AutomationCard

Solutions

Core Finance Financial PerformanceManagement

RegulatoryCompliance and Risk

180,000 SAPCorporates

Over €12 Trillionin Spend

FinancialServices Network

SAP Financial Services Network - A New Option ForInformation Exchange with the Banking World


Treasury Applications Summary Roadmap

Planned Innovations (subject to change)

?Thank You

Alex EllisonDirectorCentre of ExcellenceFinance

M +44 78 08 575 699E [email protected]


International SAP Conference forTreasury ManagementJuly 8-9London, UK


International SAP Conference for Treasury Management

Treasurers and treasury department personnel & supporting IT staff

Link Event Site: http://uk.tacook.com/treasury

EPM, GRC and LoB Finance Boost Call – 22nd February 2012

Very successful Annual Conference:Recent Years:

2011 – Copenhagen, Denmark2012 – Potsdam, Germany

Last Year:2013 – Rome, Italy

This Year:2014 – London, United Kingdom

8th & 9th July 2014


Mapping of SAP treasury solutions to customer speaking sessions atthe International SAP Treasury Management Conference 2013

SAP TreasurySolution

CustomerSpeakers

Topic/Highlights


Panalpina,Arla Foods,BAT,KME Group

Roche

Core treasury operations and systemimplementations

Correspondence Monitor and integrationwith 360T

In-House Cash Electrolux, SWIFT, SEPA, and Beyond;Electrolux – Implementation of In HouseBank and Payment Factory as a True Partof Treasury Core Processes

Bank CommunicationManagement & BankingConnectivity

Zalando,

Intel

Payments and Reconciliation at Zalando –Financial Integration,

Intel - Streamlining Supply Chain Systems:How Intel Drove Efficiency into Its VendorPayments


The Venue: The Business Design Centre, London

Venue Exterior

Plenary

Exhibition &Interactive areas

Registration Area


Why attend?

• Gain an understanding of the SAP solutions for Treasury Management

• Dive deeper into each of the solutions at the pre-conference workshops

• Find out how companies from a wide range of industries have successfully deployed and usedthe solutions to improve their business processes and add value

• Meet SAP experts and partners in a collaborative learning environment

• Share your experience and increase your expertise with other customers and solution experts

• Meet and network with your peers during the event and also in the evening event

• Learn more about the products and services provided by SAP Partners that complement theportfolio of treasury applications from SAP

• Hear the latest updates and innovations within the treasury solution portfolio directly from SAP

• Get your issues and challenges addressed from the solution experts at SAP


Conference Format

KEYNOTES & CASESTUDIES

WO

RK

SH

OP

1Conference Agenda, Day 1 Conference Agenda, Day 2

Mor

ning

Afte

rnoo

n

WO

RK

SH

OP

3

WO

RK

SH

OP

2

WO

RK

SH

OP

4

WO

RK

SH

OP

5Registration, Lunch, Exhibition,

NetworkingLunch, Meet the Experts, Live Demos

Afternoon Break

SAP PRESENTATIONS & CASESTUDIES

Evening Event

KEYNOTES & CASESTUDIES

Morning Break

Afternoon Break


CASE STUDIES


Close of Conference


Morning WorkshopsTuesday 8 July

Workshop 1 – Treasury Reporting and Risk Management – Update and NewCapabilitiesLead – Arif EsaCo-Lead - TBC

W1

Workshop 2 – Payments – Are you cloud ready?Lead – Stephan BögnerCo-Lead - Alejandro Molina

Workshop 3 – New Cash Management Leveraging SAP HANALead – Christian MnichCo-Lead - Sigrid Bauer

Workshop 4 – Regulatory ComplianceLead – Heike RippCo-Lead - Carola Schönfelder

Workshop 5 – Treasury Reporting and Risk Management – Update and NewCapabilitiesLead – Dirk HennCo-Lead - TBD

W2

W3

W4

W5


Join us on the 8th July for amagical evening at theKensington Roof Gardens,a truly unique venue in theheart of London. Food,drink, entertainment andeven the football, definitelysomething for everyone.

Evening Event – 08 July, 2014

Alex Ellison

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