from reactive to proactive: real-world solutions for becoming a strategic treasury

July 30, 20152pm ET / 11am PT

From Reactive to ProactiveReal World Solutions for Becoming a Strategic Treasury

© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2

Bob Stark Tom DurkinVP, Strategy MD, Integrated Channels

Todd Yoder Guy SimonsDir., Global Treasury Assistant Treasurer

Today’s panel


What is proactive treasury, and how can it benefit you?– Bob Stark, Kyriba Corp

How can we get there? Practical advice from our panel– Tom Durkin, Bank of America Merrill Lynch– Todd Yoder, Fluor Corporation– Guy Simons, TRW Automotive

Roundtable discussion and audience questions

Agenda

What is proactive treasury, and how can it benefit you?


Productivity

Financial controls

Global visibility

Effective financial decisions

Treasury as a strategic partner Treasury can contribute strategically to the organization and build value in a number of ways: Regulatory compliance Financial performance Risk management Operational improvement Business continuity

What exactly is proactive treasury?



Opportunities to Add Value Reactive and Tactical Proactive and Strategic

Fraud Fixing controls as soon as fraud is detected

Collaborating with internal teams to standardize workflows and IT security to prevent fraud and cybercrime

Regulation & Compliance Implementing changes recommended by external parties – e.g. auditors

Building working capital programs to unlock internal cash to avoid relying on banks post-Basel III

Shareholder Value Identifying how to repatriate cash after stock buyback announcement

Building in-house bank to mobilize global cash; analyzing borrowing vs. repatriating costs; preparing bank borrowing facilities; reviewing hedging programs


Productivity

Financial controls

Global visibility

Effective financial decisions

Treasury as a strategic partner Treasury can contribute strategically to the organization and build value in a number of ways: Regulatory compliance Financial performance Risk management Operational improvement Business continuity


Practical advice: how can we get there


BofA Merrill has a 230-year history in North America, a 75-year history in Asia, and more than 50 years in Europe and Latin America.

In addition to our growing market share of large corporates, we serve more than three million small businesses and almost 23,000 middle market companies with revenue of $50mm to $2bn.

The Global Transaction Services platform has a unique client coverage model: we partner closely with other lines of business – including capital markets, investment banking, and wealth management – to deliver holistic solutions for our clients.

Tom Durkin, Bank of America Merrill Lynch


Plan based on your corporate growth strategy– Role of treasury, services provided, tools required

Understand treasury technology & standards – Standardization is critical for multi-bank efficiency

Talk to your banking providers about:– Commitment to standards development and adoption

– Investments in payments and reporting platforms

– Integration of online and file-based channels

Tom Durkin: Efficiency breeds optimization


$21.53 billion global revenues (2014)

>40k employees in >80 countries on 6 continents

>1,000 projects annually, >50 currencies

>900 accounts with >100 banking partners

Treasury team of 16, based in 3 locations

Fluor ranks No. 136 on the Fortune 500 Americas largest corporations list, and has been the top-ranked engineering and construction company on FORTUNE’s ‘World’s Most Admired Companies’ list for 3 years in a row

Todd W. Yoder, Fluor Corporation (NYSE: FLR)


Understand Company’s Mission & Objectives (S/L) Spend time “out there” learning how the business

creates shareholder value and what the challenges are Invest in building the best team possible Create a winning environment Develop sound policies / procedures / controls Make Core Treasury an asset, not a liability Seize advantages from Technology & Data

Build win-win partnerships with your bank group

Make time to think strategically and present ideas

Todd W. Yoder: Building a World-Class Treasury


About ZF TRW’s treasury operation

$17.5bn global revenues (2014)

Operations in 24 countries, using 28 currencies

Treasury team of 21, based in 4 locations

875 accounts with 87 banking partners

Currently integrating with ZF Friedrichshafen AG (2014 global revenues €18.4bn) after being acquired effective May 2015

Guy Simons, ZF TRW Automotive


Have a strategy to achieve treasury objectives taking into account specific business needs and constraints.

Identify simple sets of rules for the business to follow, and thresholds above which treasury gets involved.

Spend more time educating others in the team, and making yourself almost superfluous in day-to-day.

Don’t make decisions based on ad-hoc analysis.

Work with shared services to get to a common vision of how you want to work with banks.

Guy Simons: Don’t get bogged down in the day-to-day

Roundtable discussion


What kind of opportunities are created by being strategic and proactive?

Question


How do you measure the value of a strategic treasury?

Question


Collaboration is a theme of being strategic and proactive. What kind of best practices have you seen and experienced?

Question


What do you suggest for those that find themselves in very tactical situations, struggling to manage daily activities?

Question


Build credibility for your ideas through strong execution: productivity, visibility, effective financial decisions.

Cultivate relationships that get you “in the room” – your ideas are only effective if heard.

You can never automate too much: you will still have a job, just a better one.

Technology will help you: focus on what can enable strategic benefit.

Conclusions


Learn more

Taking Treasury from Reactive to ProactiveLearn from Bob, Guy, Todd, Tom and 20 other treasury experts how your team can become a strategic partner to the organization and provide real business value. DOWNLOAD e-book at http://kyri.ba/treasuryebook

Featuring insight from:

http://kyri.ba/treasuryebook

http://kyri.ba/treasuryebook


Thanks for attending

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from reactive to proactive: real-world solutions for becoming a strategic treasury

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