Chair: Sigurd Dahrendorf, Former Treasurer, Knorr-Bremse
Sigurd Dahrendorf, Former Treasurer, Knorr-BremseSigurd Dahrendorf Knorr-Bremse Former Treasurer
Identifying a holistic approach to achieve working capital targets
The focus on internal working capital as a driver of efficiency is essential even with the cost of capital at historic lows. Yet identifying and mobilising internal sources of funding requires not only an efficient treasury but also the technology to improve visibility, accelerate the cash flow process and reduce costs. New technologies and payment methods are enabling treasurers to combine solutions that streamline both receivables and payables. This is revolutionising the way you can influence different levers, at different times, to improve liquidity and price of funding, including off balance sheet structures. We hear how this company implemented a programme that has helped to change the organisational culture, free cash and improve balance sheet metrics.
Martin Schlageter, Head of Treasury Operations, RocheMartin Schlageter Roche Head of Treasury Operations
Martin joined the German entity of the Roche Group as Head of Treasury in 1993. In 1998 he became European Head of Cash & Credit Management in Switzerland for the Vitamins Division where he built up a Shared Service Center in this area. After the divestment of the Vitamins Division in 2004 he joined Roche’s Group Treasury as Head of Treasury Operations where he implemented the InHouse bank. Before joining Roche he worked several years in foreign exchange trading in Frankfurt, Singapore and Paris. M. Schlageter holds a degree of the University of Applied Sciences, Rendsburg (Germany).
Stephan Wilckens, Head of Global Prcurement Productivity & Performance, RocheStephan Wilckens Roche Head of Global Prcurement Productivity & Performance
Successful SCF programme roll out - the view from the treasury
The rolling out of supply chain finance programmes are long term projects. Implementation requires the involvement of many internal stakeholders, including finance, procurement, IT and shared services, and consumes much time and resources in planning and execution. On-boarding external suppliers in multiple jurisdictions, transacting in different currencies, with local regulations and banking partners, requires strong due diligence and KYC processes. Ensuring standardised and centralised processes, including documentation and technology can comply with accounting and legal requirements, is essential. Here we hear the perspective of Vestas, who has recently rolled out their SCF programme, to discuss the crucial decisions, challenges and benefits in implantation, and how they evaluated their banking and technology partners for the project.
Stanka Jokanovic, Treasury Director, VestasStanka Jokanovic Vestas Treasury Director
Managing factoring and reverse factoring challenges
Technological investment brings challenges and opportunities for all companies; for mid cap firms, digital transformation can be make or break for the treasury. In this case study we hear how treasury managed new technological investment with SCF solutions, enabling factoring and reverse factoring programmes, and funded the project with innovative financial solutions, including retail bonds. Uniquely, the SCF solutions were managed without substantial investment in financial technologies.
Helena Ramos, Director of Treasury & Credit Risk Management, ImpresaHelena Ramos Impresa Director of Treasury & Credit Risk Management
Helena is Director of Treasury & Credit Risk Management at Impresa. Helena is responsible for various treasury functions, including the management of global cash & banking, capital planning, trade finance, risk finance strategies, liquidity solutions and funding. Helena is also responsible for the development of technology solutions to improve global treasury processes and transactions. Prior to joining Impresa in 2007, Helena held treasury positions at Brandia Central and GSK.
A live poll of delegate’s experiences and opinions on SCF and working capital programmes.
Evaluating SCF solutions
When choosing a SCF platform, there are several issues to consider. Can your solution partner operate in the countries and currencies where you need them? Can they grow with you? Can all suppliers be included in the programme or is size is a restriction? What guarantees do you have that there will be no change in risk appetite on the part of the funding provider? If your bank partners with a fintech, how do you negotiate the new relationship? In this session we hear from a treasury that has evaluated several solutions, from the perspective of audit, governance and risk, and shares their experiences on their implementation and efficacy.
Hitomi Ishiguro, Cash and Working Capital Manager, Group Financing and Treasury, Air LiquideHitomi Ishiguro Air Liquide Cash and Working Capital Manager, Group Financing and Treasury
Dynamic discounting: what is the cost benefit ratio?
You might be generating a lot of cash but if low interest rates result in low returns, a dynamic discount programme might be a solution while simultaneously financing your suppliers. However, Dynamic Discounting can work against free cash flow targets. How do you balance that? Arbitraging with IR? Going to the overnight market? How easy is it to switch from Dynamic Discounting to Supply Chain Finance? Additionally, depending on the markets, there can be tax and accounting implications to consider. Furthermore, there is a disparity between DD and hedging. If you are operating in a non-functional currency and you hedge to counter the FX risk, the cost might outweigh the benefits of DD. Overall, what is the cost benefit ratio of DD? What is the supplier´ uptake and what strategies work best to ensure on boarding?
Lunch & networking
Accounting and ratings for SCF
Accounting treatment of factoring and SCF programmes has always been controversial. Rating agencies seem to be increasingly inclined to consider them as debt. This means that even if the programmes might appear as off balance sheet and still help with liquidity and funding, they no longer help with debt levels. How do you reposition it with your rating agency?
Imre Guba, FCCA, Director, Accounting Specialist, S&P Global RatingsImre Guba S&P Global Ratings FCCA, Director, Accounting Specialist
Imre Guba currently holds the position of Accounting Specialist for S&P Global Ratings which he assumed in 2013. In this role, Imre serves as a consultant to the EMEA based corporate credit analysts on financial and non-financial reporting, corporate governance, and S&P criteria application matters. Imre participates in S&P’s outreach initiatives to investors, intermediaries, regulators and standard setters on financial and non-financial reporting and governance matters. He publishes articles on accounting and corporate governance matters with credit analysis impact.He is a Steering Group member of the European Corporate Reporting Lab@EFRAG. Before joining S&P Global, Imre had a variety of roles in PwC. Imre earned his degree in Economics and Accounting from Debrecen University, Hungary. He is a fellow member of the Association of Chartered Certified Accountants.
Intelligent cash forecasting: data driven AI for greater working capital visibility
Cash forecasts have traditionally been based on past behaviour and often influenced by the intuition of individuals in charge. However, the advent of AI enables the analysis of large volumes of internal and external data (from sales, purchases and customers’ payment behaviour to macroeconomic indicators, industry trends, FX, credit risk, key suppliers, etc). This means more effective, data driven forecasts that improves accuracy as data increases. These predictions can help improve decision making and expand the reach of financial solutions. In this session, hear what Artificial Intelligence and data analytics can bring to the table to support the working capital agenda.
Ignacio Cerro, Former Finance Director Supply Chain Finance, GE Renewable EnergyIgnacio Cerro GE Renewable Energy Former Finance Director Supply Chain Finance
Ignacio Cerro is a seasoned finance profesional with a track record of over 24 years of extensive experience in multinational environments and differents sectors (Pharma, Renewables, Automotive). He has held senior positions serving as CFO and Finance Directors in big corporations (Sanofi, AstraZeneca, Johnson Controls, LM Wind Power, GE) where he played a key role in several finance and supply chain projects across the organizations. Recently he has spent 2 years in Brazil as FD to turnaround the affiliate with special focus on cash generation.
Sustainability in SCF – the treasury perspective
Sustainability has long been a core element of corporate social responsibility (CSR) programmes. More recently, investors have been examining the environmental, social and governance (ESG) performance of companies. Banks have developed sustainable finance products for supply chain financing, whilst consultants offer ESG audits. So how do CSR, ESG and SCF all fit together for the treasurer and is it now a corporate imperative?
Refreshments & networking
Analysing the benefits of taking inventory off balance sheet
Accounting rules can promote building high levels of stock, counter manufacturing companies’ need for efficiency. Reducing inventory frees up cash and helps cut associated costs such as insurance and staff to manage it. What are the options to take inventory off the balance sheet whilst ensuring that the operation is not classified as financial debt? Location of stock, risk transfer, the existence of a secondary market and insurance are some of the issues to consider. Wording in contracts is crucial. Banks are restricted in their ability to take these risks but new players are entering the market. Join this session to find out about the ways to overcome these issues and new solutions available. How do they compare with other funding options? Are they competitive?
Top Ten Takeaways
We highlight your top 10 takeaways from the conference sessions.
Sigurd Dahrendorf, Former Treasurer, Knorr-BremseSigurd Dahrendorf Knorr-Bremse Former Treasurer