Presentation by Jeananne O'Sullivan

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Cash Management Presentation Chamber of Commerce Breakfast Meeting September 2008

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Transcript of Presentation by Jeananne O'Sullivan

Page 1: Presentation by Jeananne O'Sullivan

Cash Management

Presentation

Chamber of Commerce Breakfast Meeting

September 2008

Page 2: Presentation by Jeananne O'Sullivan

What on earth is Cash Management ?

“Making money on money”

- and making money through efficient procedures & support systems.

-Has a direct impact on Shareholder Value and Profitability.

-Releases Capital Employed from the balance sheet and identifies and realises administrative cost savings.

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Suppliers

Receive and approve invoices

Payment and bookkeeping

Liquidity Management

Working capital

Currency

Trade Finance

Financing

Leasing

HR administration

Payments – and credit cards

Pension

Salaries/Wages

LIQUIDITY Administration

PURCHASESALESCustomers

Receive orders

Invoicing

Payments

Reconciliation

What Every Business Has to Think About

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PaymentsAccount InformationFile TransferCollection ServicesTrade FinanceCurrency TradingIntegration with Account Management SoftwareCorporate Cards

Debtor

Creditor

Order

Purchase

SaleInvoice/collection Balancing

Order

Balancing Invoice

Creditor

Debtor

HR/salaries

Delivery

•Collection Service•Trade Finance•Credit card payments•Bank Giro Credit

•Acc. Information•Lodgement•File Transfer •Cap File

•Acc. Information•File transfers

•Acc. Inforamtion•File transfers•Reconciliation Serv.•Host to Host•Collection Service •(Unpaid D/D’s)

Internet accountTrade Finance

Corporate CardMarkets Online CurrencyTrade Finance

E-invoiceTravel accountERP/Integration

Acc. InformationFile Transfer

PaymentsFile TransfersTrade FinanceCredit Card, cheques

Payments (Groups)File transfersAuto giro

Liquidity ManagementMarkets Online (all 3)

•Corporate card•Markets Online Currency

Due Date & Payment

Book-KeepingReceipt

of Payment

Liquidity Management

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Business eBanking – World Class Capability

Cash Management • Tools to help manage working capital

– account information, payments, file transfers

Trade Finance• Processing of export and import

documentary credit• Danske Group confirmation capability

of letters of credit within 24 hoursMarkets On-line

• Mini trading desk in customer’s office • Securities, foreign exchange, forward

contracts, swaps and options

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• One point of entry to one banking system.• Visibility and Management of information and

transactions.• Reduced transaction costs.• Same day value for funds transfers in same

system.• Execute cross border transactions as local

payments• Open local collection accounts in customers

home countries.

Cross Border Banking – The answer!

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Liquidity Management

• Visibility of your funds – Nationally and Internationally

• Control over your funds – Nationally and Internationally

• Ability to concentrate your funds to one location/account

• Enables you to optimise the use of and return on your money!

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Group Cash Pool (zero balancing)

• Physical movement of funds!!• TOP account /SUB accounts • Zero balancing automatic sweeping per

transaction between SUB accounts and TOP account

Single currency - in all major currencies• Internal balance, control of available funds

(optional) and inter company interest calculation at SUB account level

• External balance, control of available funds and interest calculation at TOP Account level

SUB account

TOP ACCOUNT

SUB account SUB account

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Cross Border Sweeping

• Automated service for concentration of liquidity cross border and cross banks

• Target balance.• Upper and Lower triggers• Free choice of period (i.e.

daily, weekly…)• Based on SWIFT MT940,

MT101 and MT103 message types

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Questions ?