TREASURY SEMINAR
BY JAN VERMEER
Montfoort, 9th of March 2017
CASH POOLING THROUGH SOFTWARE
BY JAN VERMEER
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CASH POOLING THROUGH SOFTWARE
BY JAN VERMEER
Treasury Services has developed a revolutionary solution to set up cash pooling structures completely independent from banks through software
PowertoPay has created an independent payment platform that eliminates the need to adapt your systems to specific payment files of banks
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ALTERNATIVE POOLING STRUCTURES
ZBA CASH POOLS
• Define Concentration account• Define the target à Single Bank Account or a Pool of Bank Accounts • Set a required Value Dated Balance on the Target• Define which type of cash flows need to be taken into account• Sweeps are automatically booked in the IHB internal accounts
HAVE MULTIPLE ENTITIES USE THE SAME BANK ACCOUNT
• Entities will book their cash flow movements on internal accounts instead of external accounts
• Software will reconcile the bank account movements with the expected cash flows.
BY JAN VERMEER
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HOW DOES IT WORK
BY JAN VERMEER
EXPECTED CASH FLOWS
REALISED CASH FLOWS
TREASURYMETRICS
CAPTURE
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ZERO BALANCE POOLING
CASH CENTRALISATION• Operating companies lose control over their cash.
INTERCOMPANY LOANS• Management of Intercompany loans required. This is a fully automated feature in
TreasuryMetrics.
• Interest rates on Current Accounts must be “at arms length”.
GLOBAL PERMISSIBILITY• Few limitations on locations that can participate.
AVAILABILITY• Potentially available to all 100 % owned entities.
BY JAN VERMEER
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SETTING UP THE STRUCTURE
BY JAN VERMEER
SUBSIDIARYB
SUBSIDIARYC
SUBSIDIARYA
Concentration Account
Target = Individual Bank AccountBank A in Country X
Target = Individual Bank AccountBank B in country Y
Target = Individual Bank AccountBank C in country Z
HEADQUARTER
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INCLUDING EXISTING CASH POOLS
BY JAN VERMEER
Concentration Account
HEADQUARTER
Target = Notional Cash Pool
Account Currency X Account Currency X(Master Account)
ENTITY 1 ENTITY 2 ENTITY 3
Account Currency X
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POOL THE CASH POOL
BY JAN VERMEER
Concentration Account
HEADQUARTER
Target = Zero Balance Cash Pool
ENTITY 1
ENTITY 2 ENTITY 3
(Master Account)
Bank AccountBank Account
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INFLUENCE FOR YOUR ORGANISATION
WHICH CASH FLOWS TO TAKE INTO ACCOUNT FOR GENERATING SWEEPS?• Feeding the system with expected cash flows
• Outgoing payments• Direct Debits / Credits• Invoices outstanding• Intraday statements• Cash Flows from capture
PURCHASING TRANSACTIONAL BANKING SERVICES:• Intraday limits on bank accounts with banks• Overnight limits on bank accounts with banks• Value dates on debits / credits• Bank Costs for Intercompany transfers
ORGANISATION:• Planning of payments by subsidiaries
BY JAN VERMEER
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THE BENEFITS
IMPLEMENTATION• Efficient implementation• Integration of existing bank accounts
POOLING STRUCTURE• Independency, global solution and maximum flexibility
RISK MANAGEMENT• Minimizes credit risk on financial counterparts (banks)• No guarantees, pledges, covenants and other sureties to banks
CORPORATE FINANCE• Optimizes funding possibilities, no limitations
ECONOMICS• Minimizes bank accounts and account maintenance & services fees
BY JAN VERMEER
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THANK YOU FOR LISTENINGJAN VERMEER, TREASURY SERVICES
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