Treasury Reporting AFTE Presentation 17th May 2019 Strictly Private - PowerPoint PPT Presentation

Treasury Reporting AFTE Presentation – 17th May 2019 Strictly Private and Confidential

Agenda 1. Introduction 3 • CEO Survey 2019 • CFO priorities in 2019 • PwC Global Treasury Survey 2. Expected Benefits of Treasury Reporting : synthesis of dashboard architecture and illustrations of content 19 • Cash • FX • Asset Management 3. Building your Treasury Reporting : approach details and cash use cases 68 • How do you obtain key metrics? • Which difficulties can you encounter? • Examples of cash use cases 4. Reporting Guidelines : illustrations 82 PwC 2

Introduction

Key messages PwC 4

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A trend shared by CEOs worldwide 9 9 PwC 6

Data : for 10 years leaders have deplored non optimized data exploitation due to lack of qualified skills PwC 7

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Acknowledgments *17 CFOs wished to remain anonymous PwC 9

Spotlight on priorities for 2019 – Cash (1/2) PwC 10

Spotlight on priorities for 2019 – Cash (2/2) PwC 11

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Strenghtening cash flow management by anticipating changes in situation is the primary challenge for Treasury Departments in 2019 PwC 13

Investment strategies for 2019 are mainly driven by currently low interest rates and the expectation that they will rise PwC 14

Chief Financial Officers are prioritising self-funded investments in 2019 PwC 15

Cash Prediction PwC 16

PwC Global Treasury Survey PwC Global Treasury Benchmarking Survey 17

Treasury Priorities 4 1 Cash Flow Forecasting Cash Repatriation 2 5 Cash Management Refinancing Optimisation 3 6 Financial Risk Capital Structure Management PwC

CFO Priorities 1 4 Access to cash Cash Management 2 5 Debt management / Currency Risk covenants 3 6 Working capital Capital Structure PwC

TREASURY REPORTING Synthesis of Dashboard Architecture and Illustrations of Content

Approach The Treasury Dashboard aims at consolidating all treasury reportings within one single dashboard, allowing users from all departments to access up-to-date data via a simple interface. Following a Design Thinking approach, users are first interviewed to gather their needs, then take part to co-creation workshops where they are able to create their ideal dashboard. This document constitutes a synthesis of the needs expressed by users (architecture and content) for an ideal dashboard. PwC 21

Treasury Dashboard architecture FX ASSET CASH MANAGEMENT The dashboard is composed of 3 sections: FX, Asset Management and Cash. Colors indicate the level of each screen in the architecture: blue is top-level, and green is the deepest level. The home page is composed of all top-level screens in this view. The following slides will present all screens by drill down order: it will begin with the first level 1 screen, then present all its sub-screens to the deepest level, before presenting next level 1 screen.

CASH

CASH POSITION Cash evolution and forecast LEVEL 1 Jan 1, 2018 – June 30, 2018 € Currency Division Group Product line All Entity All Account All Conso / Non conso PwC 24

CASH Free Cash Flow monthly evolution LEVEL 1 Jan 1, 2018 – June 10, 2018 Division Group PwC 25

CASH POSITION Cash/Liquidity report LEVEL 2 June 29, 2018 Division Group Product line / BU All Entity All Account All PwC 26

CASH POSITION Credit limit usage LEVEL 3 June 29, 2018 Division Group Product line / BU All Entity All € Currency Conso / Non conso PwC 27

CASH POSITION Bank and IC accounts LEVEL 1 June 30, 2018 Division Group Entity All Bank All Account All Exotic currency SR PwC 28

CASH POSITION Cash evolution (cash-in-hand) LEVEL 2 June 29, 2018 Division Group € Currency PwC 29

CASH POSITION Bank and IC accounts by region LEVEL 1 June 30, 2018 Division Group Entity All Bank All +2 +2 +10 $ $ bn bn € bn bn € Currency +10 100 BRm PwC 30

CASH POSITION Limit evolution and usage including violation LEVEL 2 Jan 1, 2018 – March 30, 2018 Division Group Product line / BU All Entity All € Currency Conso / Non conso Limit Violation Usage PwC 31

FORECAST LEVEL 1 July 12, 2018 Division Commercial Entity 3510 PwC 32

FORECAST Historical Overview LEVEL 2 Jan 1, 2017 – Dec 31, 2017 Division Group € Currency PwC 33

FORECAST Amount Forecasted LEVEL 1 July 12, 2018 Commercial Currency - PwC 34

FX

HEDGING STATUS LEVEL 1 June 30, 2018 Division Group € Currency 2024 2024 PwC 36

HEDGING ACTIVITY LEVEL 2 June 30, 2018 Division Commercial Currency Pair * By default the view is per $ only PwC 37

PERFORMANCE & RISK Hedge ratio vs Expected Business Exposure LEVEL 3 June 30, 2018 PwC 38

MARKET DATA LEVEL 4 Jan 1, 2018 – March 30, 2018 CDS Granularity From To € Currency 3yr s PwC 39

HEDGING STATUS LEVEL 1 June 30, 2018 Division Commercial Type € Currency Instruments 1 to 5 yrs PwC 40

PERFORMANCE & RISK Open exposure LEVEL 3 June 30, 2018 PwC 41

HEDGING ACTIVITY Speed Grid LEVEL 2 FXC Date June 30, 2018 FXC Date Highlighted in green: Hedging in progress red: No hedges can currently be implemented PwC 42

PERFORMANCE & RISK Hedge book LEVEL 3 June 30, 2018 PwC 43

PERFORMANCE & RISK Hedging capacity LEVEL 3 June 30, 2018 PwC 44

PERFORMANCE & RISK USD order book to open exposure LEVEL 3 June 30, 2018 Drill down When clicking on each bar, detailed view appears as a table. PwC 45

ASSET MANAGEMENT

CREDIT RISK Exposure LEVEL 1 March 29, 2018 € Currency PwC 47

CREDIT RISK LEVEL 2 March 29, 2018 Bank All banks PwC 48

CREDIT RISK LEVEL 3 PwC 49

CREDIT RISK Bond exposure LEVEL 4 June 1, 2017 – May 30, 2018 PwC 50

CREDIT RISK Corporate bonds June 1, 2017 – May 30, 2018 PwC 51

PENSIONS LEVEL 1 December 31, 2017 PwC 52

FUNDING LEVEL 1 March 30, 2018 Division Group PwC 53

ASSETS & LIABILITIES LEVEL 2 June 30, 2018 Division Group PwC 54

PORTFOLIO PERFORMANCE LEVEL 3 March 30, 2018 PwC 55

ASSETS VaR of assets portfolio LEVEL 4 March 30, 2018 PwC 56

ASSETS Debt maturity schedule LEVEL 2 Jan 1, 2019 – July 30, 2019 € Bonds Debt instrument PwC 57

ASSETS Geographic Bond Allocation LEVEL 3 March 30, 2018 PwC 58

ASSETS VaR detailed analysis LEVEL 4 March 30, 2018 PwC 59

ASSETS LEVEL 2 March 30, 2018 PwC 60

Building your Treasury Reporting : approach details and cash use cases

Approach details « Russian doll » approach 1 Stratégique Niveau 0: Vision COMEX • Vision synthétique restituant d’un coup d’œil l’activité de l’entreprise avec identification d’alertes éventuelles , • 1 indicateur de synthèse de la performance par pilier. Niveau 1: Vision COMEX (zoom) • Vision affinée de chaque pilier, • Plusieurs indicateurs et leur historique facilitant la gestion de alertes et des priorités par pilier . 2 Prospection et analyses Niveau 2: Vision détaillée et commentée • Ensemble élargi d’indicateurs facilitant l’analyse des causes et la gestion prospective par pilier, • Intégration de commentaires explicatifs en mode manuel Commentaires par le management de l’entreprise. Niveau de détail Niveaux de reporting PwC 62

Dashboard model Vision niveau 0 – Vue d’ensemble Nous proposons un dashboard composé de 8 piliers : • Finance • Cash • Business • Assets • Sales • Purchases • IT • HR Le niveau 0 du dashboard comportera une tuile d’information par pilier qui sera composée de maximum 2 indicateurs agrégés. Sur la première version du dashboard nous nous concentrerons sur les piliers Finance et Cash. PwC 63

Russian doll representation 1 L’écran d’accueil du dashboard composé de 8 piliers. 1 Si l’utilisateur clique sur un des piliers (ici sur le pilier Cash), il sera redirigé vers la page Cash. Celle-ci comporte différents KPI concernant le Cash (Position, dette, etc.). Cela permet une 2 vision plus affiné de chaque pilier avec plusieurs indicateurs et leur historique facilitant la gestion de alertes et des priorités par pilier . 2 3 l’utilisateur Si clique sur le niveau 2, il sera redirigé vers 3 une nouvelle page. Celle-ci représente une vision détaillée, avec un ensemble élargi d’indicateurs facilitant l’analyse . PwC 64