April 21, 2023

Perspectives on the Treasurer

Sjoerd de Vries

Managing Director

Nidera Handelscompagnie BV

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Question 1

In this audience, who combines the roles of Treasurer and CFO?

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Origin

• Corporate Treasurer is a relatively new profession, at least in Holland

– Almost unknown in the 70’s and 80’s– Imported from USA

• Cash management (not) done by accountants

• Funding and Forex outsourced to (“huis”)bank

• The Financial Director / CFO was an accountant

• Technology was non-existent

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• Cash became gradually more important– Changed from means of payment to a resource

• Leverage increased, focus on financing (-cost) (LBO’s)

• Cash manager became Treasurer, scope increased

• CFO’s still Accountants / Controllers

What happened?

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• Cash is king• ‘House bank’ concept gradually disappeared• Banks’ ability to fund companies deteriorated• Direct market access realized (money, forex, etc)• Reliance on technology for interfacing with multiple banks

and with internal systems• Automated payment systems, Cash pooling, position

management• Shifting emphasis from short to medium & long term• Professional education / registration

• Increasingly, Treasurers become CFO’s

And now?

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EXPECTATIONS

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External World

• Maintaining relationships with providers of funds and services– banks, debt capital markets, shareholders, rating

agencies, insurers– Interface CFO / Treasurer / Investor Relations

• Treasurers external visibility enhanced– Requires sound knowledge of his / her company, its

business and its markets– Ability to communicate effectively

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Question 2

Any female Treasurers attending?

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Inside the Company

• Treasury plays pivotal role in / for many business processes– Cash cycle– Funding– Risk management (FX, Interest Rates, Liquidity, Counterparty,

Insurance?)– Financial Planning & Analysis

• Regular interaction with business- and service managers required– Understand the business, its drivers and its risks– Provide solutions– Provide information– Be a trusted business partner

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Treasurer CFO, Yes or No?

• Treasurer CFO – Real time focus, is forward looking and knows the business– Systems proficient (STP, TMS, interfacing with ERP and admin

systems)– Strong negotiating skills– Experienced Manager of both professionals and admin staff

• Why Not?– May have limited Accounting, Audit and/or Tax experience

OR–

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Treasurer CFO, Yes or No?

• Treasurer CFO – Real time focus, is forward looking and knows the business– Systems proficient (STP, TMS, interfacing with ERP and admin

systems)– Strong negotiating skills– Experienced Manager of both professionals and admin staff

• Why Not?– May have limited Accounting, Audit and/or Tax experienceOR

– May not be interested, being the Treasurer is more fun