working capital implications - seb · 2019-05-08 · analysis performed on the basis of each ......

Working Capital implications

Round table discussion

Strictly Private & Confidential

Oslo, May 7th, 2019

”To move from the old to what is about to come is the only tradition worth keeping"

Marcus Wallenberg 1946

"I want to support business and growth"

A O Wallenberg 1856

| 2

| 3

Introduction

• SEB is pleased to meet with all of you to discuss how to potentially improve your working capital situation

The target of this presentation is to: – Peer benchmark of companies in different industries – Show how financial engineering could further improve each company’s working capital situation – Specific release potential

Targets of the presentation

Present some insights on how companies performs relative peers in different industries

Break down of the different parameters of working capital i.e. with a focus on inventory, account receivables, account payables

Peer benchmark 1 Financial engineering tools 2

Overview of how financial engineering tools work in practice, with focus on Receivable Purchase and Supply Chain Financing

Company specific release potential 3

Analysis performed on the basis of each company’s financials to find a potential improvement for each company’s working capital situation

Discussion areas

Contents

|–4

1 Peer benchmark 4

2 Financial engineering tools at a glance 11

3 Company specific' example 15

Appendices

A Company examples 22

B Implementation and supplier on-boarding 45

Peer group overview

| 5 Source: FactSet

Company Description Revenue (NOKt)

Telenor ASA engages in the provision of telecommunications, data, and media services. Its products and services includes mobile communication, fixed line communication, and broadcasting activities. It operates through the following segments: Norway, Sweden, Denmark, dtac-Thailand, Digi-Malaysia, Grameenphone-Bangladesh, Pakistan, Myanmar, Broadcast, and Other Units

126 067 000

Coop Norge AS is engaged in the wholesale distribution of food, beverages and tobacco and other related activities. It was incorporated in August of 1991 and conducts business from its registered head office which is strategically located in Oslo, Norway. The company oversees the logistics, marketing, operations, and purchasing activities for approximately 950 supermarkets and hypermarkets 47 933 000

Veidekke ASA engages in building construction and civil engineering activities. It operates through the Construction and Property Development segments. The Construction segment involves building and construction builds commercial, public, and residential buildings. The Property Development segment engages in the acquisition of sites and develops them into residential buildings for sale to the end customer

30 281 000

Aker Solutions ASA engages in the provision of products, systems, and services to the oil and gas industry. It operates through following segments: Projects, Services, and Other. The Projects segment offers subsea equipment and systems, engineering and procurement in addition to brownfield maintenance, modifications and hook-up 22 461 000

Jotun A/S develops, manufactures, markets and sells paint and coating systems and surface treatment products. Its products include decorative paintings, marine, protective, and powder coatings 16 937 795

Kongsberg Gruppen ASA engages in delivering technology systems and solutions to clients within the oil and gas industry, merchant marine, defence, and aerospace. It operates through the following segments: Kongsberg Maritime, Kongsberg Defence & Aerospace, Kongsberg Digital. Kongsberg Defence & Aerospacesegment supplies products and systems for command and control, weapons guidance and surveillance, communications solutions, and missiles.

14 490 000

ABB AS specializes in the production of instrument manufacturing for measuring and testing electricity and electrical signals. It also manufactures relays, motor starters and controllers, and other industrial controls and control accessories 8 656 622

Komplett ASA engages in the e-commerce of computers and related electronics. The firm owns Webshops that sell data components, PCs, consumer electronics, mobile phones, televisions, digital cameras and other related products, home and leisure products, various products for kitchen, home, garden and beauty and wellness products to end-users 8 484 414

Sporveien is Norway's largest supplier of public transport measured in number of journeys. In 2018, 275 million single trips were made in the subsidiaries Sporveien Trikken, Sporveien T-court and Unibuss 4 754 516

Elopak AS manufactures liquid food packaging products. The company has a mission that is to satisfy market needs for attractive high quality carton and plastic based packaging systems for non-carbonated fresh and long-life liquid food products. It has half a century of existence sees a global corporation operating on every continent 4 173 727

Circle K Norge AS is primarily engaged in the operation of gasoline service stations. It is involved in the retail trade of automotive fuel. Its operations are organized into three business areas: Scandinavian region, Central and Eastern European region, and special products. The company has a registered office located in Oslo, Norway

936 000 (11 783 000)

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

-20% -10% 0% 10% 20% 30% 40% 50% 60%

EB

ITD

A-m

argi

n (%

)

Core WC / Sales

Profitability & Core working capital efficiency

| 6

Source: Annual reports 2017; FactSet; Bisnode Note: NWC= Inventory + Net trade Receivables - Net Trade Payables; (Net Trade Receivables = Trade Receivables - Pre-payments from costumers) (Net Trade Payables = Trade payables - Pre-payments to suppliers) Pre-

payments have been deducted when publically available (Telenor ASA, Kongsberg Gruppen ASA, Veidekke ASA)

• Ideal position would be in the top left corner, with high EBITDA margin and low tied up working capital

Peer group analysis

Bubble size = Revenue (NOKt)

148,

1

75,7

68,1

32,3

44,2

27,7

29,2

13,6

16,2

11,4

0,0

200,

6

90,7

64,4

39,3

51,7

21,7

32,1

18,1

14,8

8,9

No data

190,

0

123,

1

76,0

51,5

47,0

32,0

30,8

15,2

13,4

10,1

0,0

Average: 53.5

0

50

100

150

200

250

KONGSBERGGRUPPEN ASA

VEIDEKKE ASA JOTUN AS ELOPAK AS KOMPLETT AS ABB HOLDING AS SPORVEIEN AS COOP NORGE SA AKER SOLUTIONSASA

TELENOR ASA CIRKLE K AS

2015 2016 2017 Average

29,2 32,1 32,0

14,9 16,5 14,3

56,2 58,1 63,7

0

10

20

30

40

50

60

70

2015 2016 2017

Median 25th percentile 75th percentile Huge range due to differences in industries and business model

Best in class have app. 10 days, Average is 53 days and median app. 32 days

Room for improvement for some if not a strategic decision

Inventory days

|–7

Peer comparison 1)

Percentiles Comments

Peer group analysis

• Inventory management always needs to balance efficiency and business model

Source: Annual Reports 2014-2017; FactSet; Bisnode 1) Inventory days = Inventory / Annual external purchases * 365 Note: Annual external purchases is used when available, otherwise we’ve used CoGS

103,

1 118,

1

85,8

47,0

48,8

33,1

29,4

43,3

12,7

6,3

99,8

74,5

88,6

46,5

50,6

41,5

31,3

40,3

38,1

16,5

6,3

103,

5

77,4

70,5

48,6

46,7

39,9

35,3

25,0

22,1

11,3

9,6

Average: 51.2

0

20

40

60

80

100

120

140

JOTUN AS KONGSBERGGRUPPEN ASA

ABB HOLDING AS SPORVEIEN AS AKER SOLUTIONSASA

VEIDEKKE ASA KOMPLETT AS CIRKLE K AS ELOPAK AS COOP NORGE SA TELENOR ASA

2015 2016 2017 Average

43,3 41,5 39,9

21,0

34,7

23,5

67,3 62,6 59,5

0

10

20

30

40

50

60

70

80

2015 2016 2017


Best in class have app. 10 days and Average is 51 days

Longer payment terms can be used to gain more business from clients and the NWC impact equalized by sale of receivables

General room for improvement by internal optimization or financial engineering

Receivable days

|–8

Peer comparison 1)


Peer group analysis

• Financing receivables could make a large difference in operating cash flow

Source: Annual Reports 2014-2017; FactSet; Bisnode 1) Receivable days = Trade Receivable / Revenue * 365 Note: Net Trade Receivables = Trade Receivables - Pre-payments from costumers. Pre-payments have been deducted when publically available (Telenor ASA, Kongsberg Gruppen ASA, Veidekke ASA)

0,0

125,

5

33,3

94,7

52,7

38,2

31,5

41,4

35,6

38,6

25,6

146,

3

93,5

26,6

90,2

53,5

51,9

28,2

37,0

34,7

34,0

21,1

89,0

80,9

58,4

57,6

56,4

52,5

40,2

40,0

37,9

37,0

34,0

Average: 58.3

0

20

40

60

80

100

120

140

160

CIRKLE K AS SPORVEIEN AS AKER SOLUTIONSASA

ELOPAK AS JOTUN AS KOMPLETT AS KONGSBERGGRUPPEN ASA

VEIDEKKE ASA COOP NORGE SA ABB HOLDING AS TELENOR ASA

2015 2016 2017 Average

38,2 37,0

52,5

32,4 31,1 39,0

47,1

71,8

58,0

0

10

20

30

40

50

60

70

80

2015 2016 2017


Best in class have app. 89 days and Average is 58 days

Improvement potential for almost all

Payable days

|–9

Peer comparison 1)


Peer group analysis

• Being able to extend supplier payment terms could be a way of adding a new funding source

Source: Annual Reports 2014-2017; FactSet; Bisnode 1) Payable Days = Trade Payables / Annual external purchases * 365 Note: Net Trade Payables = Trade payables - Pre-payments to suppliers. Pre-payments have been deducted when publically available (Telenor ASA, Kongsberg Gruppen ASA, Veidekke ASA) Annual external purchases is used when available, otherwise we’ve used CoGS

50,4

%

31,2

%

15,9

%

21,5

%

9,6%

1,1%

10,7

%

-4,2

%

-0,5

%

-1,7

%

46,3

%

29,5

%

22,4

% 22

,1%

8,5%

5,9%

12,1

%

-2,7

%

-0,1

%

-0,4

%

-16,

8%

49,3

%

32,3

%

27,8

% 18

,4%

8,3%

7,6%

6,4%

4,5%

-0,7

%

-2,6

%

-15,

2%

12,4%

-30%-20%-10%

0%10%20%30%40%50%60%

KONGSBERGGRUPPEN ASA

JOTUN AS VEIDEKKE ASA ABB HOLDING AS KOMPLETT AS SPORVEIEN AS AKER SOLUTIONSASA

ELOPAK AS TELENOR ASA COOP NORGE SA CIRKLE K AS

2015 2016 2017 Average

9,6% 8,5% 7,6%

-0,2% -0,3% 1,9%

18,7%

22,2% 23,1%

-5%

0%

5%

10%

15%

20%

25%

2015 2016 2017


Best in class already below 0 where suppliers fully finance inventory and receivables

Core Working Capital to Sales

|–10

Peer comparison 1)


Peer group analysis

• The results are naturally impacted by company characteristics

Source: Annual Reports 2014-2017; FactSet; Bisnode 1) Core working capital = Inventory + Trade Receivables - Trade Payables Note: NWC= Inventory + Net trade Receivables - Net Trade Payables; (Net Trade Receivables = Trade Receivables - Pre-payments from costumers) (Net Trade Payables = Trade payables - Pre-payments to suppliers) Pre-payments have been deducted when publically available (Telenor ASA, Kongsberg Gruppen ASA, Veidekke ASA)

Contents

|–11

1 Peer benchmark 4



Appendices



SEB - Supply Chain Financing

SCF is an attractive tool for big solid buyers to optimize NWC by longer payment terms without financing cost, and supplier to optimize NWC by cash payment against an attractive interest rate

SEB is the leading SCF provider in Denmark and the Nordics within a lot of different industries.

SEB strive for simple SCF setup – for you as buyer, for your suppliers and internally SEB always aim for most possible NWC effect for you with minimum resources spend SEB of course offer SCF platform for suppliers

SEB will assist in all steps of the supplier onboarding process. SEB has a long experience with SCF suppliers, and we can assist with education, support and material in all Nordic languages and English

12

Supply Chain Financing – Overview

| 13

Financial tool to optimise working capital and cash-flow

10 old share 10 old share 10 old share 10 old share Suppliers

3. File transfer/Approval

5. Invoice payment

4. Discounted invoice payment

2. Invoices

1. Assignment of receivables

What it is? Buyer driven transaction where relative credit quality creates a win-win situation

File transfer

The Buyer prepares a file transfer, containing approved invoices and submits to SEB

SEB purchases receivables issued on the Buyer, thus credit risk on the Buyer

Supplier Invoice payment

Payment (discounting) is executed latest one business day after SEB receives approval. Payments are normally executed within 3-10 days from invoice date

Improved relationships as working capital is released for supplier

Buyer’s payment

The Buyer pays on invoice due date

All financing fees are covered by supplier

Leading to increased liquidity and debt capacity

1. Signing of SCF documentation 2. The Buyer regularly receives invoices from its suppliers 3. The Buyer regularly prepares a file transfer, containing approved invoices,

and submits to SEB (frequency to be determined) 4. SEB pays discounted purchase price to supplier immediately after receiving

approved invoices from the Buyer 5. The Buyer pays invoice to SEB on its due date

Source: SEB Financial Strategy

Buyer

Supply chain financing (“SCF”) – structural overview

Step-by-step

http://corpintra.sebank.se/corpcommon/wpm1.nsf/FrameSet?ReadForm&ResSt=88888_02

Benefits for Buyer and its suppliers

| 14

Improved liquidity and lower cost of capital for both parties

• Improved working capital

• Potential to reduce other interest bearing debt

• Improved key financial ratios

• Strengthened relationship to Buyer

• Improved cash flow and liquidity

• Potential for lower cost of debt since financing is based on Buyer’s risk

• Potential to reduce credit insurance costs

• An alternative means of funding, freeing up capacity within existing credit facilities

• SEB expects that SCF could be a vital part in financing working capital, investments and/or dividend capacity


• No cost for Buyer, all cost paid by supplier

• Improved working capital

• Potential to reduce other interest bearing debt (if any)

• Improved key financial ratios

• Strengthened relationship to key suppliers

• Increase investment and dividend capacity

• Opportunity for extension of payment terms through offering a financial solution to suppliers

• Potential to negotiate better commercial terms -> improvement of profitability

• Offering suppliers cash upfront mitigates the risk of suppliers defaulting due to lack of liquidity

Summary

Buyer will benefit from extended payment terms or better commercial terms without any financial expenses

Suppliers will receive early payments reducing their need for working capital loan facilities

The program is cost efficient as the supplier pricing is based on Buyer’s credit risk

Benefits for Buyer Benefits for suppliers

Contents

|–15

1 Peer benchmark 4



Appendices



28,6

13,6 18,1 15,2

2.7

1.3 1.7

1.1

32,3 35,6 34,7 37,9

2,2%

-1,7% -0,4% -2,6%

-20%

-15%

-10%

-5%

0%

5%

0

10

20

30

40

50

60

2014 2015 2016 2017

Cor

e W

C /

Sal

es

Day

s

DIO DSO DPO Core working capital / Sales2014 2015 2016 2017

Revenue 33 084 000 42 675 000 46 959 000 47 933 000

CoGS (30 770 000) (39 866 000) (42 832 000) (43 826 000)

Inventories 1 044 000 1 693 000 1 757 000 1 820 000

Receivables 2 414 000 1 483 000 2 124 000 1 489 000

Payables 2 720 000 3 883 000 4 070 000 4 548 000

Example: NOKt 500 000 receivables purchase program

Figures in million NOKt Current Receivables purchasing Non-receivables purchasing

Total 34% 66%

Annual revenue 47 933 000 16 095 702 31 837 298 47 933 000

Average receivable days 11.3 0 11.3 7.5

Trade receivables 1 489 000 0 989 000 989 000

Working capital improvement

500 000

Implied P&L effect @ 2% rate

-

Example 30% participation rate

Figures in million NOKt Current Supply chain financing Non-supply chain financing

Total 30% 70%

CoGS 43 826 000 13 147 800 30 678 200 43 826 000

Average payable days 37.9 120 37.9 62.5

Trade payables 4 548 000 4 322 564 3 183 600 7 506 164


2 958 164


59 163

Coop Norge SA (1/2)

|–16

Core working capital development 2014-2017 Core working capital components (NOKt)

Receivable Purchase, RP 2) Supply Chain Financing, SCF 1)

Financial engineering summary

Source: Annual report, 2014-2017; FactSet; Bisnode 1) Assuming 2% average cost of debt 2) Assuming 2% cost of debt and 2% cost for RP-program. Administrative costs related to the implementation and management of a program are assumed to be very low in relation to the realized benefits

• SCF release potential NOK 3bn if 30% of supplier spend increased to 120 days

2017 2017 RP + SCF

Inventory 1 820 000 1 820 000

Trade receivable 1 489 000 989 000

Trade payables 4 548 000 7 506 164

Sales 47 933 000 47 933 000

Core WC / Sales -2.6% -9.8%

Coop Norge SA (2/2)

|–17

Total working capital effect (NOKt)


Trade payables

Release from SCF program

Release from RP program

Trade receivables

Inventory 1 820 000

989 000

500 000

Core working capital - Assets

4 548 000

2 958 164

Core working capital - Liabilities


• NWC release potential

38

11

63

8 0

10

20

30

40

50

60

70

DPO DSO

Days Payable Outstanding and Days Sales Outstanding

- 4 days

+ 25 days

Sensitivity analysis of release potential

Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -334 729 -669 458 -1 004 186 -1 338 915 -1 673 644 -2 343 101 -3 012 559

30 -94 586 -189 173 -283 759 -378 345 -472 932 -662 104 -851 277

60 265 627 531 255 796 882 1 062 510 1 328 137 1 859 392 2 390 647

80 505 770 1 011 540 1 517 310 2 023 079 2 528 849 3 540 389 4 551 929

90 625 841 1 251 682 1 877 523 2 503 364 3 129 205 4 380 888 5 632 570 120 986 055 1 972 110 2 958 164 3 944 219 4 930 274 6 902 384 8 874 493 140 1 226 197 2 452 395 3 678 592 4 904 789 6 130 986 8 583 381 11 035 775 180 1 706 482 3 412 964 5 119 447 6 825 929 8 532 411 11 945 375 15 358 340

Company Release potential (NOK)

Telenor 3.7bn

Coop 3.0bn

Veidekke 800m

Aker Solutions 600m

Jotun 600m

Kongsberg 450m

ABB Holding 400m

Komplett 400m

Sporveien 60m

Circle K Norge 900m

SCF release potential overview

| 18 Source: SEB

By 30% spend participation with extended payment terms to 120 days

1. Almost NWC optimization for all companies by introducing either Supply Chain

Financing and/or Receivable Purchase

a) > NOK 400m NWC capital release by SCF in most companies

b) > NOK 500m NWC release in Receivable Purchase in most companies

2. Most important for success;

a) Aim for most possible NWC effect with minimum resources spend, select main and

preferred suppliers (or debtors), i.e. normally start from the top suppliers and down to

approx. EUR 2m spend

b) Select an experienced bank with best on-boarding capabilities and skills

c) Payment terms up to 120 days is not unusual to obtain

d) Consider “Gold”, “Silver” and “Bronze” margin steps to attract most possible suppliers

e) Sustainable Supply Chain Finance is also available with individual pricing depending

on an external sustainable score

3. SEB will be happy to advice you further and/or provide more exact calculations

Conclusion

| 19 Source: SEB

Potential next steps

Thank you!

SEB contact details

Carsten Kongstad Receivables & SCF Transaction Services Denmark Tel: +45 (0) 6120 8937 E-mail: [email protected]

Gustaf Påhlman Financial Strategy Large Corporates Coverage Tel: +46 (0)70 772 31 73 E-mail: [email protected]

Please note that this presentation material doesn't constitute a firm offer of any kind, and should only be seen as a basis for further discussions. Should any firm offer be communicated by Skandinaviska Enskilda Banken AB (publ) ("SEB") in the future, such an offer will be conditional upon SEB attaining relevant internal credit approval.

This discussion paper is provided on a strictly confidential basis and should not be distributed to persons other than the intended recipients.

All information contained in this report has been compiled in good faith from sources believed to be reliable. However, no representation or warranty, expressed or implied, is made with respect to the completeness or accuracy of its contents and the report is not to be relied upon as authoritative. Recipients are urged to base their investment decisions upon such investigations, as they deem necessary. To the extent permitted by applicable law, no liability whatsoever is accepted for any direct or consequential loss arising from the use of this document or its contents.

When entering into financial hedges, the Customer acknowledges that it has been solely responsible for making its own independent appraisal and investigations into the risks of entering into such hedges.

Subject to Applicable Regulations, neither SEB nor its directors, officers, employees, or agents shall be liable for any losses, damages, costs or expenses, whether arising out of negligence, breach of contract, misrepresentation or otherwise, incurred or suffered by the Customer under the terms or any hedge, unless such loss arises directly from SEB's or such individual's respective wilful default or fraud. In no circumstance shall SEB's liability include any losses suffered by the Customer or any third party for any special damage, indirect losses or loss of profits or loss of goodwill or loss of business opportunity, whether arising out of negligence, breach of contract, misrepresentation or otherwise.

Your attention is drawn to the fact that SEB, a member of, or any entity associated with SEB or its affiliates, officers, directors, employees or shareholders of such members may from time to time (a) have a long or short position or holding in the securities or options of such companies mentioned herein, (b) buy or sell or participate in an issue of such securities or options, (c) provide corporate finance services to such companies or in relation to such securities or options, (d) be represented on the board of directors or similar supervisory entity of such companies. SEB may make a market in the securities mentioned in this report.

Disclaimer

| 22

Contents

|–23

1 Peer benchmark 4



Appendices



44,2 44,2 51,7

47,0

33,1 29,4 31,3 35,3

41,9 38,2

51,9 52,5

9,6% 9,6% 8,5% 8,3%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

0

10

20

30

40

50

60

70

2014 2015 2016 2017

Cor

e W

C /

Sal

es

Day

s


Revenue 5 821 706 7 286 748 7 757 741 8 484 414

CoGS (5 303 420) (6 668 366) (7 100 586) (7 862 097)

Inventories 641 774 808 407 1 006 659 1 013 144

Receivables 527 965 586 372 665 115 820 633

Payables 608 275 698 748 1 010 177 1 130 138



Total 30% 70%

Annual revenue 8 484 414 2 584 716 5 899 698 8 484 414


Trade receivables 820 633 0 570 633 570 633


250 000


-



Total 30% 70%

CoGS 7 862 097 2 358 629 5 503 468 7 862 097


Trade payables 1 130 138 775 440 791 097 1 566 536


436 398


8 728

Komplett AS(1/2)

|–24





• SCF release potential NOK 400m if 30% of supplier spend increased to 120 days

52

35

73

25

0

10

20

30

40

50

60

70

80

DPO DSO


2017 2017 RP + SCF

Inventory 1 013 144 1 013 144

Trade receivable 820 633 570 633

Trade payables 1 130 138 1 566 536

Sales 8 484 414 8 484 414

Core WC / Sales 8.3% 0.2%

Komplett AS (2/2)

|–25



Trade payables


Trade receivables

Inventory 1 013 144

570 633

250 000


1 130 138

436 398





- 11 days

+ 20 days


Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -91 474 -182 948 -274 421 -365 895 -457 369 -640 317 -823 264

30 -48 394 -96 788 -145 181 -193 575 -241 969 -338 757 -435 544

60 16 226 32 452 48 678 64 905 81 131 113 583 146 035

80 59 306 118 612 177 918 237 225 296 531 415 143 533 755

90 80 846 161 692 242 538 323 385 404 231 565 923 727 615 120 145 466 290 932 436 398 581 864 727 331 1 018 263 1 309 195 140 188 546 377 092 565 638 754 184 942 730 1 319 823 1 696 915 180 274 706 549 412 824 118 1 098 824 1 373 530 1 922 942 2 472 354

16,5 16,2 14,8 13,4

133,3

48,8 50,6 46,7 38,5 33,3 26,6

58,4

33,0%

10,7% 12,1% 6,4%

-10%

0%

10%

20%

30%

40%

0

20

40

60

80

100

120

140

2014 2015 2016 2017

Cor

e W

C /

Sal

es

Day

s


Revenue 32 971 000 31 896 000 25 557 000 22 461 000

CoGS (19 126 000) (18 305 000) (14 153 000) (11 652 000)

Inventories 862 000 814 000 575 000 428 000

Receivables 12 042 000 4 264 000 3 541 000 2 876 000

Payables 2 015 000 1 670 000 1 031 000 1 865 000



Total 31% 69%

Annual revenue 22 461 000 7 028 825 15 432 175 22 461 000


Trade receivables 2 876 000 0 1 976 000 1 976 000


900 000


-



Total 30% 70%

CoGS 11 652 000 3 495 600 8 156 400 11 652 000


Trade payables 1 865 000 1 149 238 1 305 500 2 454 738


589 738


11 795

Aker Solutions ASA (1/2)

|–26






58

47

77

32

0

10

20

30

40

50

60

70

80

90

DPO DSO


2017 2017 RP + SCF

Inventory 428 000 428 000

Trade receivable 2 876 000 1 976 000

Trade payables 1 865 000 2 454 738

Sales 22 461 000 22 461 000

Core WC / Sales 6.4% -0.2%

Aker Solutions ASA (2/2)

|–27



Trade payables


Trade receivables

Inventory 428 000

1 976 000

900 000


1 865 000

589 738





- 15 days

+ 18 days


Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -154 577 -309 153 -463 730 -618 307 -772 884 -1 082 037 -1 391 190

30 -90 730 -181 460 -272 190 -362 921 -453 651 -635 111 -816 571

60 5 040 10 079 15 119 20 159 25 199 35 278 45 358

80 68 886 137 773 206 659 275 545 344 432 482 204 619 977

90 100 810 201 619 302 429 403 238 504 048 705 667 907 286 120 196 579 393 159 589 738 786 318 982 897 1 376 056 1 769 215 140 260 426 520 852 781 278 1 041 704 1 302 130 1 822 982 2 343 834 180 388 119 776 238 1 164 358 1 552 477 1 940 596 2 716 834 3 493 073

11,7 11,4 8,9 10,1

3,9 6,3 6,3 9,6

27,1 25,6 21,1

34,0 -1,2%

-0,5% -0,1%

-0,7%

-5%

-4%

-3%

-2%

-1%

0%

0

5

10

15

20

25

30

35

40

2014 2015 2016 2017

Cor

e W

C /

Sal

es

Day

s

DIO DSO DPO Core working capital / Sales



Total 30% 70%

CoGS 64 374 000 19 312 200 45 061 800 64 374 000

Average payable days 49.8 120 49.8 71

Trade payables 8 786 000 6 349 216 6 150 200 12 499 416


3 713 416


74 268

Telenor ASA (1/2)

|–28




Source: Annual report, 2014-2017; FactSet; Bisnode 1) Assuming 2% average cost of debt 2) Assuming 2% cost of debt and 2% cost for RP-program. Administrative costs related to the implementation and management of a program are assumed to be very low in relation to the realized benefits Note: Pre-payments have not been taken into account when doing the scenario analyses

• SCF release potential NOK 3,7bn if 30% of supplier spend increased to 120 days

Example: NOKt 3 000 000 receivables purchase program


Total 28% 72%

Annual revenue 126 067 000 34 895 829 91 171 171 126 067 000

Average receivable days 31.4 - 31.4 22.7

Trade receivables 10 838 000 - 7 838 000 7 838 000


3 000 000


-

2014 2015 2016 2017

Revenue 109 629 000 128 288 000 131 974 000 126 067 000

CoGS (59 339 000) (72 557 000) (73 720 000) (64 374 000)

Inventories 1 907 000 2 271 000 1 802 000 1 773 000

Receivables 8 896 000 10 557 000 10 327 000 10 838 000

Adv. Fr. cust. 7 732 000 8 326 000 8 036 000 7 529 000

Payables 7 682 000 8 397 000 8 437 000 8 786 000

Adv. to. suppl. 3 275 000 3 305 000 4 184 000 2 793 000

Advances from customers

Advances to suppliers

34 31

60

23

0

10

20

30

40

50

60

70

DPO DSORelease from SCF program

2017 2017 RP + SCF

Inventory 1 773 000 1 773 000


Trade payables 8 786 000 10 544 316

Sales 126 067 000 126 067 000


Telenor ASA (2/2)

|–29



Trade payables


Trade receivables

Inventory 1 773 000

7 838 000

2 793 000

3 000 000


8 786 000

7 529 000

1 758 316


Source: SEB Financial Strategy Note: Pre-payments have not been taken into account when doing the scenario analyses



- 9 days

+ 26 days


Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -702 233 -1 404 466 -2 106 699 -2 808 932 -3 511 164 -4 915 630 -6 320 096

30 -349 499 -698 997 -1 048 496 -1 397 995 -1 747 493 -2 446 490 -3 145 488

60 179 603 359 205 538 808 718 411 898 014 1 257 219 1 616 425

80 532 337 1 064 674 1 597 011 2 129 348 2 661 685 3 726 359 4 791 033

90 708 704 1 417 408 2 126 112 2 834 816 3 543 521 4 960 929 6 378 337 120 1 237 805 2 475 611 3 713 416 4 951 222 6 189 027 8 664 638 11 140 249 140 1 590 540 3 181 079 4 771 619 6 362 159 7 952 699 11 133 778 14 314 858 180 2 296 008 4 592 016 6 888 025 9 184 033 11 480 041 16 072 058 20 664 074

140,

2

148,

1

200,

6

190,

0

111,

2

118,

1

74,5

77,4

37,6 31,5 28,2 40,2

44,8% 50,4%

46,3% 49,3%

0%

10%

20%

30%

40%

50%

0

50

100

150

200

250

2014 2015 2016 2017

Cor

e W

C /

Sal

es

Day

s




Total 30% 70%

CoGS 7 610 000 2 283 000 5 327 000 7 610 000


Trade payables 947 000 750 575 662 900 1 413 475


466 475


9 330

Kongsberg Gruppen ASA (1/2)

|–30








Total 30% 70%

Annual revenue 14 490 000 4 380 290 10 109 710 14 490 000




1 250 000


-

2014 2015 2016 2017

Revenue 16 675 000 17 032 000 15 845 000 14 490 000

CoGS (8 497 000) (9 056 000) (8 492 000) (7 610 000)

Inventories 3 264 000 3 675 000 4 666 000 3 961 000

Receivables 5 753 000 6 434 000 4 485 000 4 135 000

Adv. Fr. cust. 673 000 921 000 1 249 000 1 061 000

Payables 1 057 000 1 214 000 1 038 000 947 000

Adv. to. suppl. 182 000 432 000 382 000 108 000

Trade payables




45

104

68 73

0

20

40

60

80

100

120

DPO DSO

2017 2017 RP + SCF

Inventory 3 961 000 3 961 000


Trade payables 947 000 1 413 475

Sales 14 490 000 14 490 000


Kongsberg Gruppen ASA (2/2)

|–31




Trade receivables

Inventory 3 961 000

2 885 000

108 000

1 250 000


947 000

1 061 000

466 475





- 31 days

+ 22 days


Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -73 851 -147 701 -221 552 -295 403 -369 253 -516 955 -664 656

30 -32 152 -64 304 -96 456 -128 608 -160 760 -225 064 -289 368

60 30 396 60 792 91 188 121 584 151 979 212 771 273 563

80 72 095 144 189 216 284 288 378 360 473 504 662 648 851

90 92 944 185 888 278 832 371 775 464 719 650 607 836 495 120 155 492 310 984 466 475 621 967 777 459 1 088 442 1 399 426 140 197 190 394 381 591 571 788 762 985 952 1 380 333 1 774 714 180 280 588 561 175 841 763 1 122 351 1 402 938 1 964 114 2 525 289

62,4

75,7

90,7

123,

1

25,2 33,1

41,5 39,9 35,0 41,4 37,0 40,0

12,4% 15,9%

22,4%

27,8%

0%

5%

10%

15%

20%

25%

30%

0

20

40

60

80

100

120

140

2014 2015 2016 2017

Cor

e W

C /

Sal

es

Day

s




Total 30% 70%

CoGS 22 520 000 6 756 000 15 764 000 22 520 000


Trade payables 4 735 000 2 221 151 3 314 500 5 535 651


800 651


16 013

Veidekke ASA (1/2)

|–32








Total 28% 72%

Annual revenue 30 281 000 8 455 231 21 825 769 30 281 000




1 500 000


-

2014 2015 2016 2017

Revenue 24 244 000 24 225 000 28 613 000 30 281 000

CoGS (17 838 000) (17 676 000) (21 446 000) (22 520 000)

Inventories 3 052 000 3 665 000 5 332 000 7 594 000

Receivables 3 503 000 4 597 000 5 025 000 5 372 000

Adv. Fr. cust. 1 830 000 2 400 000 1 773 000 2 062 000

Payables 3 132 000 3 778 000 4 182 000 4 735 000

Adv. to. suppl. 1 423 000 1 774 000 2 008 000 2 264 000

Trade payables




77

65

90

47

0102030405060708090

100

DPO DSO

2017 2017 RP + SCF

Inventory 7 594 000 7 594 000


Trade payables 4 735 000 5 535 651

Sales 30 281 000 30 281 000


Veidekke ASA (2/2)

|–33




Trade receivables

Inventory 7 594 000

3 872 000

2 264 000

1 500 000


4 735 000

2 062 000

800 651





- 18 days

+ 13 days


Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -411 801 -823 603 -1 235 404 -1 647 205 -2 059 007 -2 882 610 -3 706 212

30 -288 404 -576 808 -865 212 -1 153 616 -1 442 021 -2 018 829 -2 595 637

60 -103 308 -206 616 -309 925 -413 233 -516 541 -723 158 -929 774

80 20 089 40 178 60 267 80 356 100 445 140 623 180 801

90 81 788 163 575 245 363 327 151 408 938 572 514 736 089 120 266 884 533 767 800 651 1 067 534 1 334 418 1 868 185 2 401 952 140 390 281 780 562 1 170 842 1 561 123 1 951 404 2 731 966 3 512 527 180 637 075 1 274 151 1 911 226 2 548 301 3 185 377 4 459 527 5 733 678

68,1 64,4 76,0

103,1 99,8 103,5

52,7 53,5 56,4

31,2% 29,5% 32,3%

0%

5%

10%

15%

20%

25%

30%

35%

0

20

40

60

80

100

120

2015 2016 2017

Cor

e W

C /

Sal

es

Day

s


Revenue - 16 844 327 16 474 202 16 937 795

CoGS - (11 786 494) (11 562 944) (12 375 525)

Inventories - 2 198 483 2 041 432 2 575 763

Receivables - 4 757 059 4 504 319 4 804 382

Payables - 1 702 541 1 693 379 1 913 476



Total 31% 69%

Annual revenue 16 937 795 5 288 233 11 649 562 16 937 795




1 500 000


-



Total 30% 70%

CoGS 12 375 525 3 712 658 8 662 868 12 375 525


Trade payables 1 913 476 1 220 600 1 339 433 2 560 033


646 557


12 931

Jotun AS (1/2)

|–34






56

104

76 71

0

20

40

60

80

100

120

DPO DSO


2017 2017 RP + SCF

Inventory 2 575 763 2 575 763


Trade payables 1 913 476 2 560 033

Sales 16 937 795 16 937 795


Jotun AS (2/2)

|–35



Trade payables


Trade receivables

Inventory 2 575 763

3 304 382

1 500 000


1 913 476

646 557





- 32 days

+ 19 days


Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -157 442 -314 884 -472 326 -629 768 -787 210 -1 102 094 -1 416 978

30 -89 631 -179 262 -268 893 -358 524 -448 155 -627 417 -806 679

60 12 086 24 171 36 257 48 343 60 428 84 600 108 771

80 79 897 159 794 239 690 319 587 399 484 559 277 719 071

90 113 802 227 605 341 407 455 209 569 012 796 616 1 024 221

120 215 519 431 038 646 557 862 076 1 077 595 1 508 633 1 939 671 140 283 330 566 660 849 990 1 133 320 1 416 650 1 983 310 2 549 971 180 418 952 837 905 1 256 857 1 675 809 2 094 761 2 932 666 3 770 570

25,7 27,7 21,7

32,0

81,5 85,8 88,6

70,5

34,5 38,6 34,0 37,0

20,7% 21,5% 22,1%

18,4%

0%

5%

10%

15%

20%

25%

0

20

40

60

80

100

2014 2015 2016 2017

Cor

e W

C /

Sal

es

Day

s


Revenue 11 223 266 9 282 767 9 063 403 8 656 622

CoGS (7 653 047) (6 098 647) (5 873 045) (6 052 764)

Inventories 539 010 463 050 349 868 530 292

Receivables 2 507 104 2 181 096 2 199 988 1 672 360

Payables 724 182 645 319 547 083 613 894



Total 30% 70%

Annual revenue 8 656 622 2 588 145 6 068 477 8 656 622




500 000


-



Total 30% 70%

CoGS 6 052 764 1 815 829 4 236 935 6 052 764


Trade payables 613 894 596 985 429 726 1 026 711


412 817


8 256

ABB Holding AS (1/2)

|–36






37

71 62

49

0

10

20

30

40

50

60

70

80

DPO DSO


2017 2017 RP + SCF

Inventory 530 292 530 292


Trade payables 613 894 1 026 711

Sales 8 656 622 8 656 622


ABB Holding AS (2/2)

|–37



Trade payables


Trade receivables

Inventory 530 292

1 172 360

500 000


613 894

412 817





- 21 days

+ 25 days


Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -44 806 -89 613 -134 419 -179 226 -224 032 -313 645 -403 258

30 -11 641 -23 281 -34 922 -46 563 -58 203 -81 485 -104 766

60 38 108 76 216 114 324 152 432 190 540 266 757 342 973

80 71 274 142 548 213 822 285 096 356 370 498 917 641 465

90 87 857 175 714 263 571 351 427 439 284 614 998 790 712

120 137 606 275 211 412 817 550 422 688 028 963 239 1 238 450 140 170 771 341 543 512 314 683 086 853 857 1 195 400 1 536 943 180 237 103 474 206 711 309 948 412 1 185 515 1 659 721 2 133 928

28,6 29,2 32,1 30,8 31,6 47,0 46,5 48,6

103,

0 125,

5

93,5

80,9

-0,3% 1,1%

5,9%

7,6%

-2%

0%

2%

4%

6%

8%

10%

0

20

40

60

80

100

120

140

2014 2015 2016 2017

Cor

e W

C /

Sal

es

Day

s


Revenue 4 211 687 4 374 975 4 559 945 4 754 516

CoGS (1 851 464) (1 950 945) (1 849 199) (1 965 583)

Inventories 144 828 156 295 162 633 165 903

Receivables 364 364 563 478 580 383 632 843

Payables 522 275 670 788 473 714 435 468



Total 32% 68%

Annual revenue 4 754 516 1 502 589 3 251 927 4 754 516




200 000


-



Total 30% 70%

CoGS 1 965 583 589 675 1 375 908 1 965 583


Trade payables 435 468 193 866 304 828 498 693


63 225


1 265

Sporveien AS(1/2)

|–38





• SCF release potential limited NOK 63m if 30% of supplier spend increased to 120 days

81

49

93

33

0102030405060708090

100

DPO DSO


2017 2017 RP + SCF

Inventory 165 903 165 903


Trade payables 435 468 498 693

Sales 4 754 516 4 754 516


Sporveien AS (2/2)

|–39



Trade payables


Trade receivables

Inventory 165 903

432 843

200 000


435 468

63 225





- 15 days

+ 12 days


Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -38 162 -76 323 -114 485 -152 647 -190 808 -267 131 -343 455

30 -27 391 -54 783 -82 174 -109 565 -136 957 -191 739 -246 522

60 -11 236 -22 472 -33 708 -44 943 -56 179 -78 651 -101 123

80 -466 -931 -1 397 -1 862 -2 328 -3 259 -4 190

90 4 920 9 839 14 759 19 679 24 598 34 437 44 277

120 21 075 42 150 63 225 84 300 105 376 147 526 189 676 140 31 845 63 691 95 536 127 382 159 227 222 918 286 609 180 53 386 106 772 160 158 213 544 266 930 373 702 480 475

0,0 0,0 40,3

25,0

146,3

89,0 -16,8%

-15,2%

-18%

-16%

-14%

0

20

40

60

80

100

120

140

160

2016 2017

Cor

e W

C /

Sal

es

Day

s


Revenue - 1 000 000 997 000 936 000

CoGS - (856 000) (691 000) (845 000)

Inventories - - - -

Receivables - - 110 000 64 000

Payables - - 277 000 206 000



Total 31% 69%

Annual revenue 936 000 292 500 643 500 936 000




20 000


-



Total 30% 70%

CoGS 845 000 253 500 591 500 845 000


Trade payables 206 000 83 342 144 200 227 542


21 542


431

Circle K AS(1/2)

|–40





• SCF release potential limited NOK 21m if 30% of supplier spend increased to 120 days

89

25

98

17 0

20

40

60

80

100

120


2017 2017 RP + SCF

Inventory - -



Sales 936 000 936 000

Core WC / Sales -15.2% -19.6%

Circle K AS (2/2)

|–41



Trade payables


Trade receivables

44 000

20 000


206 000

21 542





- 8 days

+ 9 days


Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -18 285 -36 570 -54 855 -73 140 -91 425 -127 995 -164 564

30 -13 655 -27 310 -40 964 -54 619 -68 274 -95 584 -122 893

60 -6 710 -13 419 -20 129 -26 838 -33 548 -46 967 -60 386

80 -2 079 -4 159 -6 238 -8 318 -10 397 -14 556 -18 715

90 236 471 707 942 1 178 1 649 2 121

120 7 181 14 362 21 542 28 723 35 904 50 266 64 627 140 11 811 23 622 35 433 47 244 59 055 82 677 106 299 180 21 071 42 142 63 214 84 285 105 356 147 499 189 641

Circle K Norge AS

| 42


Working capital release potential (tNOK)

910.414 10% 20% 30% 40% 50%

60 130.836 261.671 392.507 523.342 654.178

75 173.995 347.989 521.984 695.978 869.973

90 217.153 434.307 651.460 868.614 1.085.767

105 260.312 520.625 780.937 1.041.249 1.301.562

120 303.471 606.942 910.414 1.213.885 1.517.356

Supplier participation rate

SCF

days

Example with 30% supplier participation rate (2018 figures)

tNOKCurrent(100%)

SCF (30%)

Non-SCF (70%)

New(100%)

Annual external purchase 10.502.000 3.150.600 7.351.400 10.502.000

Net trade payables 418.000 1.035.814 292.600 1.328.414

Average payment terms 15 120 15 46

NWC / Sales 12% 4%

NWC improvement 910.414

Implied P&L effect 18.208

12,0

32,3 39,3

51,5

29,8

43,3 38,1

22,1

68,2

94,7 90,2

57,6 -3,9% -4,2% -2,7%

4,5%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

0

20

40

60

80

100

2014 2015 2016 2017

Cor

e W

C /

Sal

es

Day

s


Revenue 614 221 3 970 059 4 063 293 4 173 727

CoGS (480 421) (3 725 111) (3 816 477) (3 893 803)

Inventories 15 732 329 511 411 316 549 172

Receivables 50 175 471 395 423 685 252 559

Payables 89 748 966 664 943 012 614 740



Total 30% 70%

Annual revenue 4 173 727 1 239 431 2 934 296 4 173 727




75 000


-



Total 30% 70%

CoGS 3 893 803 1 168 141 2 725 662 3 893 803


Trade payables 614 740 384 046 430 318 814 364


199 624


3 992

Elopak AS(1/2)

|–43






58

22

76

16 0

10

20

30

40

50

60

70

80

90


2017 2017 RP + SCF

Inventory 549 172 549 172



Sales 4 173 727 4 173 727


Elopak AS (2/2)

|–44



Trade payables


Trade receivables

Inventory 549 172

177 559

75 000


614 740

199 624





- 7 days

+ 19 days


Participation rate

Paym

ent d

ays

10% 20% 30% 40% 50% 70% 90%

10 -50 806 -101 612 -152 418 -203 224 -254 030 -355 642 -457 254

30 -29 470 -58 940 -88 410 -117 881 -147 351 -206 291 -265 231

60 2 534 5 067 7 601 10 135 12 669 17 736 22 803

80 23 870 47 739 71 609 95 479 119 348 167 087 214 827

90 34 538 69 075 103 613 138 150 172 688 241 763 310 838

120 66 541 133 083 199 624 266 166 332 707 465 790 598 873 140 87 877 175 755 263 632 351 509 439 387 615 141 790 896 180 130 549 261 098 391 647 522 197 652 746 913 844 1 174 942

Contents

|–45

1 Peer benchmark 4



Appendices



1-2 Weeks 2-4 Weeks 1-3 Weeks 1-2 Weeks

SCF pilot implementation process & supplier on-boarding

Information transfer between Company and SEB: Which of Company’s legal entities are to

be included in the SCF and their legal domicile

Which pilot supplier is to be included and specific information regarding: – Annual purchase volumes – Current and future payment terms – Number of invoices – Frequency of credit notes – Form of invoicing – electronic and/or

manual – Legal domicile and where the

invoicing is performed – Law of the underlying sales contract

between Company and the supplier(s)

– First assessment of technical requirements

Closing and launch Final review of

documentation Company to duly check

signature authorisation needs required for signing

Signing First invoice payment e.g.

end/start of month or as per agreed

Legal Agree on documentation (legal, procurement, audit) Credit process Potential visit by SEB Credit Analyst Selection of named suppliers SEB credit approval for the overall deal when

documentation and pricing is agreed

Business case evaluation Final selection of suppliers How to approach selected

suppliers Agree on implementation plan New payment terms Joint meetings between

Company, SEB and supplier(s)

| 46

Technical & Implementation discussions Early involvement from purchasing, payments, IT and legal

(internal and external) Make organisation aware of changes needed in authorising payments –

to enable fast invoice approvals Involve SEB

Key steps Creation and generation of file format for reporting to SEB (needed invoice data).

SEB will send a specification to Company Adjustments to/from ERP system Test runs

Typically takes 1-3 months depending on Company and the supplier(s)

Source: SEB

Supplier on-boarding SEB to assist and provide SCF material

– Presentation – Brochure

Select SCF pilot suppliers Normally start from the top suppliers and down to approx.

SEK 10mn spend Company to agree new payment terms etc. with suppliers

SCF Gold, silver and bronze margin steps possible Company refer selected suppliers to SEB SCF team for on-

boarding or participate in on-boarding meeting Company to inform SEB about supplier contacts, volume,

payment terms etc.

Ideal supplier in Supply Chain Financing Programme

| 47

SEB comments Supplier characteristics

Strong relationship

The supplier should be an important partner with a long term relationship ambition

It’s recommended offering SCF to key suppliers at first in order to test the program and fully reap the benefits with a larger supplier

Significant volumes Large and reoccurring volumes In order to optimize resources spent on suppliers with maximum economic benefit

Lower credit rating Lower credit rating than Company. Supplier should benefit from Company´s strong rating and lower funding costs

Most suppliers should be able to benefit from Company´s strong position in the credit markets

Financing integration Limited amount of credit notes A large amount of credit notes would increase Company´s resources and SEB's administration costs of a program

Geographic location The supplier invoices Company mainly within European countries with a legislation facilitating sale of receivables

Today, SEB has experience with suppliers located in the Nordics and the larger part of Europe. See appendices for more countries

Corporate structure The supplier should not have ring fenced corporate financial structure, i.e. free disposal of it’s assets

Private equity owned and suppliers in financial distress are likely to have constrains on their assets

Focus on working capital management

The supplier has a focus on working capital management/Liquidity optimisation

The supplier already has focus on working capital/liquidity optimization and is positive to enter into a dialogue


Checklist of supplier characteristics

Legal implications and geographical reach

| 48

Fully implemented Pending final approval


• In addition, SEB supports suppliers in China, Singapore and Hong Kong

Legal implications

SCF is a solution with legal implications. SEB is purchasing receivables from a company in another country, issued on the Company. It’s important to check legal requirements in each country to safeguard both Company and SEB against three parties, e.g. by bankruptcy of the supplier, if the bankruptcy estate may claim payment (again) from Company

Therefore, it is important to Company and SEB, that we have legal investigations in place, and subsequently, that we have a business case supporting sufficient volumes when making legal cost investments

Most European countries can be included, e.g. Nordic, UK, Germany, Austria, Switzerland, Benelux, Baltic, Poland, Czech Republic, Slovakia, Hungary and Spain

Please notice that SEB also have hubs in Asia (Shanghai, Hong Kong and Singapore) where we can handle SCF set-ups with other legal coverage

Not many countries are completely ”off-limit”, and we urge you to bring up your thoughts and questions to SEB for discussions about the prerequisites

Geographical reach in Europe

Receivables purchasing – overview

What it is? A tool to optimise cash-flows and decrease days sales outstanding

Invoices Seller issues invoices on customers as per usual

File transfer Seller prepares file transfers containing outstanding invoices and submits to SEB

SEB Invoice payment

SEB pays Seller same day or latest after one business day, instantly releasing cash

Benefits Cash release and improved working capital

Off-balance sheet treatment

49

10 old share 10 old share 10 old share 10 old share Debtor

1. Invoices

2. Assignment of receivables

3. Payment after 0 days

5. Financing costs in arrears

4. Payment on due date

Financial tool to optimise working capital and cash-flow

1. Seller sends invoice

2. Seller sends copy of invoice to SEB for purchase

3. SEB pays Seller 100% of invoice amount on the next business day at the latest

4. Debtor pays invoice on due date to SEB

5. Seller pays interest rate to SEB for days outstanding on purchased invoices. Interest cost (Ibor + margin) is payable monthly in arrears


Seller

Receivables purchasing – structural overview

Step-by-step

http://corpintra.sebank.se/corpcommon/wpm1.nsf/FrameSet?ReadForm&ResSt=88888_02

working capital implications - seb · 2019-05-08 · analysis performed on the basis of each ......

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