SWIFT for corporates. Client or event. Speaker. Date Month Year

Transcription

1 SWIFT for corporates Client or event Speaker Date Month Year

2 Agenda Your challenge our solution SWIFT for corporates New Services Business case Case studies Your SWIFT project More info? Presentation title - Event - Date Month Year 2

3 Corporate Treasury drivers Manage liquidity Visibility to global cash Ability to reach all banks Efficiency Productivity Working capital Infrastructure Standardisation Rationalisation Automation Security Risk Compliance Regulators (SOX, SEPA) Internal controls Technology Web (IP) Presentation title - Event - Date Month Year 3

4 SWIFT: a single, standardised gateway Multiple bank channels Single, standardised gateway Corporate Corporate Accounts payable VAN Accounts payable Accounts receivable Treasury Other host to host X e-banking Y Leased line Internet Accounts receivable Treasury Other Standardised gateway e-banking Z High cost No global visibility on cash Impossible to centralise Global visibility on cash Lower cost Increased control and security Reduced risk Presentation title - Event - Date Month Year 4

5 Benefits of using SWIFT - examples Case studies available from swift.com/corporates Global visibility on cash Better visibility on global cash allows reduction of borrowing cost, optimisation of un-invested cash and avoidance of working capital growth EUR 10 million in net benefit at Swiss Re Cost reduction Rationalisation of electronic bank messaging systems at EUR 5,000 to 20,000/year each 15 systems retired at T-Mobile 25 systems retired at DuPont 40 systems retired at Arcelor Cost reduction / avoidance Automation leads to staff productivity increase, re-allocation and growth avoidance 30% volume increase per resource at GE 8 extra staff avoided at Petronas Presentation title - Event - Date Month Year 5

6 What corporates on SWIFT value most achieve all objectives of our treasury centralization project Head of Treasury and Risk Management, Iberia run a central platform with a single standard for every country and every bank VP Finance & Treasury, T-Mobile International have a standard and reliable process with all our banks Group Treasury, Petronas We took SWIFT to build one central source of truth for banking data Group Manager, Treasury, Microsoft reach all our banks directly, with the highest security Head of Treasury Control and Reporting, Novartis Presentation title - Event - Date Month Year 6

7 Financial Crisis - Value for SWIFT and priority on treasury projects Where is my cash? Can I move my cash? Can I reach all my banks? MT 940 MT 101 Multi-bank gateway 7

8 Corporates on SWIFT Where do we stand today? # registered corporate entities Geographical split Asia Pacific Americas 20% 11% 69% Q EMEA 8

9 Where do we stand: EMEA 2003: 12 Adoption Expansion Market Players Management consultancy firms Connectivity: Lite, SB s, Member concentrator ASP 2007: : 391 Mid caps Sustained growth although early adopter markets roll out New: Middle East, Nordics Specials ISO20022 (XML) SEPA & PSD FileAct Industry dimension: utilities and governmental bodies 9

10 Where do we stand: Americas 2003: 4 Adoption Expansion North America: Western coast Latin America: Brazil, Peru, Colombia 2007: : 110 Mid caps Market Players Direct connectivity New: management consultancy firms ASP offering: coming Bank readiness: improving Specials Actual adoption of ISO20022 (XML) for reporting & payment 10

11 Where do we stand: APAC 2003: 0 Adoption 2007: : 64 Large Expansion Korea Hong Kong, India, China Market Players Global banks expand their SWIFT offering Local banks joining the club Speed Lite for all: first step to SWIFT Specials Education and awareness High interest for SWIFT Trade solutions 11

13 About SWIFT A co-operative organisation serving the financial industry A provider of highly secure financial messaging services The financial standardisation body Presentation title - Event - Date Month Year 13

14 The solution a collaborative partnership Treasury Workstation ERP(s) ERP Middleware SWIFTNet Partners SWIFT or partners SWIFT Banks Business standards SWIFT and standards bodies Presentation title - Event - Date Month Year 14

15 Financial services, provided by banks Treasury Management Monitor accounts and obtain global visibility on cash by integrating end-of-day and intra-day statements into treasury systems Manage liquidity and pool cash company-wide, by sending payment orders Financial risk management, by exchanging FX confirmations and matching them Invest surplus cash Additional services Electronic Bank Account Management (EBAM) Personal Digital Identity Exceptions and investigations Trade finance Cash Management Run payment / direct debit factory to pay suppliers, debit customers, pay salaries, and receive account statements and advices ACH payments, disbursement files, check files Presentation title - Event - Date Month Year 15

16 Standards and SWIFTNet messaging Typical application Treasury and Risk Management Cash Management Exceptions and Investigations Standards and formats SWIFT MTs ISO Domestic formats ISO SWIFTNet messaging FIN FileAct InterAct Example MT 101 for high value ACH files treasury payment Supplier payments MT 940 with end-of-day Direct debits account statement Salary payments MT 300 FX confirmation Exceptions & investigations Presentation title - Event - Date Month Year 16

17 Connectivity options, adapted to your needs Direct connection Global corporate (25+bn turnover) Millions payments/year Manage your own SWIFT connection VPN VPN Network partners Indirect connection Very large corporate (1 25 bn turnover) Hundred thousands payments/year Outsource SWIFT connection Internet or VPN VPN Service bureau or Member/Concentrator Alliance Lite Large corporate (500 million 1 bn turnover) +/- 200 transactions/day Simple solution Internet Web server Work flow SWIFTAlliance SWIFT Presentation title - Event - Date Month Year 17

18 Back-office integration Do it yourself Or, choose an application that is SWIFTReady for corporates See swift.com Several vendors have SWIFTReady middleware You can also be helped in your feadsibility and/or implementation by knowledgeable business consultants. Watch the SWIFTReady Consultancy label. Presentation title - Event - Date Month Year 18

20 Electronic Bank Account Management (EBAM) Project objectives Today Tomorrow Paper Bank Corporate Fax Corporate XML messages Supporting documents Personal Digital Signature Bank Slow Low integration Automated/STP Dematerialised Expensive Low satisfaction Standardised Faster/cheaper 20

21 Electronic Bank Account Management (EBAM) Benefits Improved control, reduced errors Improved customer service Improved process follow-up Standard for all customers Standard for all banks Straight Through Processing Time saving Cost reduction

22 Electronic Bank Account Management on SWIFT SWIFT solution 3 layers Messaging service - FileAct Header specifications (ACMT) Personal Digital Signature Technical specifications Attachments enabled Multi formats Naming convention Sign a XML Sign attachments Transport certificates XML ISO messages 15 msges 18 business scenarios 22

23 Personal Digital Signature Current Landscape The Corporate View We have!!! We want No uniform mechanism Different system per bank Costly & difficult to maintain Corporate-to-Bank Digital Identity Theory vs. Practice (March 2010) 23

24 Solution for Personal Digital Signature Solution etokens with credentials Multi-bank Multiple channels Bank A Bank B Bank C SWIFTNet Proprietary Corporate Representative Internet Corporate Bank Benefits Convenience Reduced risk & costs Lower costs Improved security Personal Digital Identity Overview (Feb 10) Standardised industry solution Trusted, neutral provider Shared investment Why SWIFT Timelines Q Development Q Piloting Q Launch of service 24

25 Personal Digital Signature: Key Benefits Interoperable solution Multi-bank / Multi-application / Multi channel Global usage Local & international bank relations Central Certification Authority SWIFT issues credential / each bank makes association Anonymous certificates Only bank knows user behind the certificate One signing mechanism Uniform corporate / central revocation function Secure infrastructure Re-use of interbank PKI / Qualified etokens Local Requirements Software certificates / local standards / national regulation SWIFT support Token installation / vendor engagement Corporate-to-Bank Digital Identity Theory vs. Practice (March 2010) 25

27 Making your business case Project typically paid back 2 x by operational benefits Financial benefits Additional benefits? Costs Operational benefits Better security, more control, difficult to quantify but can be key driver Business case Presentation title - Event - Date Month Year 27

28 Total cost of ownership Integration costs Treasury Workstation SWIFT costs: as of 15 KEUR / year ERP(s) ERP Middleware SWIFTNet Back-office application integration Middleware enablement Project Depends on size of corporate, type of connectivity, volume of transactions Registration: 2 KEUR/year Connectivity - Direct: 50 KEUR one-time KEUR/year - Service Bureau: KEUR/year (see provider) - Alliance Lite Traffic - FIN MT: 6 20 eurocent - Payment in FileAct: eurocent Alliance Lite: KEUR 10 KEUR/year, incl. registration, connectivity, up to 200 items in/out per day Includes servers or PCs and operations Presentation title - Event - Date Month Year 28

29 Benefits can be quantified Operational benefits Financial benefits Additional benefits Staff reduction, reallocation and/or growth avoidance Bank systems retirement and/or growth avoidance Working capital optimization and growth avoidance Transaction efficiencies Interest on payments released later Security Compliance # FTE * cost per FTE # systems * 5 to 20 KEUR # basis points improvement % slow down in growth Use un-invested cash Reduce overdraft and borrowing cost Economies of scale # days * overnight interest Avoidance of fraud, manual errors, Less control points, documentation, legal costs, Presentation title - Event - Date Month Year 29

30 Typical ROI: 200% - 300% Novartis 120% T-Mobile 180% DuPont 200% Iberia 280% Microsoft 326% Swiss Re 4 x savings to investment GE 410% Petronas 410% Arcelor Mittal 600% Case studies performed by Available from swift.com/corporates 5 year business case Presentation title - Event - Date Month Year 30

32 Case studies Arcelor Belcorp DuPont EADS GE Iberia Microsoft Novartis Petronas SwissRe T-Mobile Yves Rocher All different: Industry sector, country of operations, turnover / size, treasury organistion, usage of SWIFT, One commonality: a compelling business case Presentation title - Event - Date Month Year 32

33 Arcelor Mittal Company profile World number one steel company 330,000 employees; 60+ countries Pro-forma 2005 revenue: 62.2 billion Treasury profile In 2002, Arcelor Treasury had 750 bank accounts in 40 banks, 14 different countries Top Decision: Use SWIFT as cornerstone to deploy unique, shared and highly standardized bank connectivity solution supporting all treasury activities Arcelor Mittal Entities ERP LAN / Intranet - HTH Case study performed by July 2005 In House Bank TMS KTP/SIDE FAI PFP2 SWIFT SAA/SAG Banks FIN and FileAct for liquidity, cash, credit and risk management 46 banks in 16 countries connected Challenges with previous infrastructure Streamline infrastructure to achieve greater visibility into cash receipts Spending significant time in maintaining multiple systems and connection points, each with totally different characteristics Key benefits of using SWIFT Improved security, reliability and Straight Through Processing 605% ROI, ~ 6 million NPV in 5 years There is no SWIFTNet Project; there is only SWIFTNet in Projects Presentation title - Event - Date Month Year 33

34 Arcelor Operational impact Working Capital Optimization With SWIFTNet, cash aggregation volume increased by 67%. Using gain of 5 basis points, Arcelor can invest additional capital translating to benefits of 0.43 million 4% of total benefits Staff Reduction Productivity gains from SWIFTNet led to resource reallocation in Treasury Back Office and reduction in Treasury Commercial Management and Finance 25% of total benefits Bank Hardware Retirement SWIFTNet combined with Payment Factory allows Arcelor to retire over 40 bank messaging systems 25% of total benefits ( 20K savings per bank, per year) Presentation title - Event - Date Month Year 34

35 Arcelor Benefits Consulting / Internal Labor: Legal contracts review, payment factory development, SWIFT implementation, testing Connectivity: linkage to SWIFT, maintenance SWIFTNet: usage fees, including gateway services & maintenance Hardware retirement: 40 bank messaging systems with average cost of 20K per year Headcount avoidance: maintain 4 headcount while activity doubled Staff reduction: Efficiencies from using SWIFT contributed to reducing department headcount from 40 to 10 Break-even in 18 months Benefits grew exponentially after recognizing values of Payment Factory with no additional costs Presentation title - Event - Date Month Year 35

36 Belcorp Company profile Cosmetics products for women Present in 14 countries; 400,000 clients 5,000 employees 2007 revenue objective: 1bn USD Treasury profile Regional treasury center in Lima, Peru Set policy, standardize processes, manage liquidity, maintain bank relationships, execute payments, corporate lending and FX transactions 60+ banks, 30 to execute payments Business Application SAP SICC Central Treasury IPM SWIFT Alliance July 2007 SWIFT implementation Use FIN and FileAct to receive account statements and information of collections, and send mass payments Phased, country-based approach Challenges with previous infrastructure Multiple and various electronic bank communication systems Back-office staff tied up in manual activities to download information and feed ERP Further standardize & automate payments and collection processing, with all banks Key benefits of using SWIFT Automated communications Enhanced security and availability Back-office staff re-allocated to value-added activities Presentation title - Event - Date Month Year 36

37 DuPont Case study performed by March 2007 Company profile Leading global chemical company $27.4 billion revenue Operations in 70 countries 60,000 + employees Treasury profile Centralized operations across three centers worldwide Management of SWIFT as financial communications channel for treasury and business units Global implementation of treasury workstation and single instance of ERP Challenges with previous infrastructure Treasury staff dedicated to data collection and managing multiple bank connections, leaving little time for strategic activities Manual interventions, high operational risk Lack of global visibility and ability to optimally manage cash Global Treasury Centers Singapore Spain Receive account info and statements in BAI2 format (FIN and FileAct), lockbox and ACH files (FileAct) Send treasury payments (FIN), payments files wires, ACHs, checks & FX payments (FileAct) Key benefits of using SWIFT Cost reduction from automation and single communication platform; financial benefits from better visibility and management of cash SWIFT was the only way to make our vision reach all our banks via one connection a reality 203% ROI over 5 years Scalable platform to support growth objectives Presentation title - Event - Date Month Year 37 U.S. Treasury Workstation (Quantum) ERP (SAP), used by Business Units Intranet SWIFT Alliance

38 DuPont: Financial result from using SWIFT Project management and operations cost: time to establish infrastructure, connections and system interfaces, and manage server environment SWIFT costs: subscription, SWIFTNet infrastructure and SWIFTNet FIN and FileAct DuPont will generate $2.5 million in net benefits over 5 years: IT labor savings from reduced infrastructure maintenance Treasury labor savings from business process improvements relative to global centering activities Retirement of 25 bank messaging systems Working capital optimization from improved cash visibility Payback in 3 years Presentation title - Event - Date Month Year 38

39 EADS March 2007 Company profile Aeronautic and Defense 2006 revenue of EUR 39 billion Sales in 200 countries About 116,000 employees EADS Treasury Transaction System Service Bureau Intra day account matching Beneficiary Control List SWIFT implementation Brokers Accord Treasury profile EADS central Treasury Activities provided: Corporate Finance, Sales & Project Finance, Interest Rate Management, Cash Management, FX Management, Asset Management Challenges with previous infrastructure Enhancement of risk management Standardize processes for increased transaction volume & constant head count Achieve further efficiency gains in Treasury operations SWIFTAlliance Workstation SWIFTAlliance Gateway Banks Trade confirmations MT300/305/320, notice to receive MT210, payment orders MT101, statements MT940/942, settlement orders MT541/543 SWIFTNet Accord to match confirmations Service Bureau for connectivity, application modules and long-term archive Key benefits of using SWIFT Clear gains in process quality and efficiency Highly reliable process, no down time Project implementation in time and budget Reliable platform for future requirements, Payment Factory being planned Presentation title - Event - Date Month Year 39

40 GE Case study performed by June 2005 Company profile Diversified technology, media and financial services 100 countries; 300,000 employees $ billion revenue SWIFT implementation 1 st Tier Banks Treasury profile GE Corporate Treasury serves 4,000 business units 20,000 bank accounts with 200 banks $ 10 billion average daily cash movements Business Systems Intermediary Bank FIN for payments and credit advice FileAct to replace EDI connections Web Cash Treasury Workstation calculates positions, determines intra day settlements, balance reporting, financial data 2 nd Tier Banks Challenges with previous infrastructure 38 proprietary connections, each different (systems, processes and data) Significant resources to maintain, increase required to support scaling of volume Impacting ability to quickly assemble view of current cash positions Key benefits of using SWIFT One set of global financial messaging processes, connections, message formats Enhanced security, improved flexibility, increased automation, increased visibility 406% ROI in 5 years, payback in 33 months, $ 10.5 million net savings over 5 years Presentation title - Event - Date Month Year 40

41 GE Operational impact Improved Reliability GE Corporate Treasury reduced number of connection failures. Pre-SWIFT, average connection failure was 50 times per year; with SWIFT no connection failures have occurred Simplification Before implementing SWIFT, GE Corporate Treasury dealt with over 100 banks with 38 proprietary software connections. With SWIFT fully implemented, number of connections will drop to one Operational Efficiency By implementing SWIFT, Treasury Operations team can increase activity volume per resource by 31% Presentation title - Event - Date Month Year 41

42 GE Benefits GE Corporate Treasury will generate $ 10.5 million in net benefits over 5 years from investment in SWIFT; achieves positive return on operational benefits alone GE Corporate Treasury will achieve benefits from increased visibility and availability of its cash around the globe Bank-wide adoption and support of FileAct delayed realization of benefits for first years. As banks adopt FileAct, GE continues to increase its benefits realization Presentation title - Event - Date Month Year 42

43 Iberia Company profile Largest air transport group in Spain, fourth largest in Europe 5.5 billion revenues Operates in 47+ countries Employs 24,000 individuals Treasury profile Centralized treasury for Europe and North America and in Latin America Management of cash positions, payments and collections; Design and execution of interest rate & FX risk programs; Banking relationships Oracle GL AP AR XRT Payment, Cash & Treasury System (XRT) Quantum Treasury Management System Authorisation Transfer System (XBE) Case study performed by July 2007 SWIFT Alliance Access & Gateway SWIFT implementation MT101 sent via FIN for high value treasury and supplier payments MT101 and PAYMUL files sent via FileAct for low value, UK ACH and PE-ACH supplier payments, PAYMUL for foreign and domestic cheque payments sent via FileAct Local banks Challenges with previous infrastructure Obtain visibility to liquidity across countries Centralize payment origination activities Manage multiple payments formats and authorization procedures Operate 60+ electronic banking channels, requiring significant treasury and IT staff Key benefits of using SWIFT Consolidation of multitude of banking systems, re-allocation of resources following automation 276% ROI over 5 years We now have single bank messaging platform and whole process from payment origination to acknowledgement is straight-through Presentation title - Event - Date Month Year 43

44 Iberia: Financial result from using SWIFT Project management - time to establish infrastructure and execute project Servers & Operations - cost to install and operate SWIFTNet infrastructure Application integration - to adapt treasury systems and connect to SWIFTNet SWIFT costs - MA-CUG registration fees, SWIFTNet infrastructure and traffic Benefits generated by SWIFTNet for Iberia include: 60 electronic bank systems retired over two years Re-allocation of resources following centralization of banking messaging activities previously handled in the local offices Payback in 25 months Presentation title - Event - Date Month Year 44

45 Microsoft Company profile Software, services and solutions Revenue over $ 50 billion Operates in 100 countries Over 80,000 employees Case study performed by Q SWIFT implementation Treasury profile Centralized Treasury with 130 employees 100 banks, 1,000 bank accounts Global ERP and TMS 5,000 Treasury wires monthly, $ 70 billion Account info and statements via MT940 & MT942 Planned: Send Treasury wires (FIN), receive Lockbox and billing analysis (822\BSB) data files (FileAct) and statements in XML Challenges with previous infrastructure Visibility across multiple accounts / banks Multiple channels and data formats, high cost to support, lack of scalability & agility No central source of truth Key benefits of using SWIFT Single secure, reliable, resilient, cost effective channel for communicating with all banks 326% ROI, $4.9 million NPV over 5 years SWIFTNet is enabling Microsoft to build one centralized source of truth for all banking data shared across the company. Presentation title - Event - Date Month Year 45

46 Microsoft: Financial result from using SWIFT Project management and operational costs: time required to establish SWIFT infrastructure, connections (BizTalk) and system interfaces (SAP) and manage server environment. SWIFT costs incl. subscription, infrastructure and traffic IT Labor savings elimination of/avoidance of time to maintain bank messaging systems Treasury Labor savings reduced time to more effectively manage global cash, monthend close, monitor balances, Cost avoidance of bank messaging systems Working capital optimization from later cutoff times and optimize un-invested cash Payback in 24 months Presentation title - Event - Date Month Year 46

47 Novartis Company profile World leader in providing medicines to protect health, prevent and treat disease and to improve well-being 100,000+ employees 37 bn USD group net sales Treasury profile Ensure effective financial risk management Optimize use and profitability of financial resources Provide financing and financial services at low cost to operating businesses Treasury system (OMR) Novartis International Middleware SWIFTAlliance Novartis entities Switzerland: Novartis AG, Holding, Pensionfund Luxemburg: Novartis Investment Bermuda: Novartis Securities Investments Gibraltar: Novista Insurance June 2007 Banks FX deals are confirmed with MT300 and related movements generate MT101 and MT210 Deposits are confirmed with MT320 Securities transactions still confirmed by fax, implementation of MT5xx planned later in 2007 Challenges with previous infrastructure Need to replace multi-bank system operated by 3rd party service provider when that came to end of support Automate trade confirmations sent by fax Increase security of payment flows Key benefits of using SWIFT Single channel to reach multiple banks; automation of previously manual operations When we had to replace our bank messaging system, we took SWIFT to reach all our banks directly, with the highest security 120% ROI and EUR 95,000 NPV in 5 years Presentation title - Event - Date Month Year 47

48 Novartis: Financial result from using SWIFT Cost structure Benefits composition Traffic (12%) Project management (24%) Servers + operations (7%) Year 0 Joining / service fees (16%) Banking messaging cost savings (22%) Treasury ops staff reallocation (28%) SWIFTNet Infrastructure (41%) Manual labor cost savings (50%) Investment included joining and MA-CUG registration, infrastructure and traffic fees, for 6 Novartis entities. Project which took just 6 months - covered evaluation, joining / ordering, installation, connection to middleware, testing with bank partners and go-live. Operations cover daily management of SWIFT interface and connection. Novartis will generate EUR 723,000 in benefits over 5 years from SWIFTNet. Automation will allow Novartis to save on labor - previously occupied with manual faxes and investigations via phone - and to re-allocate 0,5 staff equivalent. Using SWIFTNet, Novartis retired the bank messaging system operated by a service provider when that came to end of support. Presentation title - Event - Date Month Year 48

49 Petronas Case study performed by May 2007 Company profile Leading oil and gas multinational Active in 30+ countries 50 billion revenue 34,000+ employees Treasury profile Group Treasury provides fund management, liquidity management and FX for 60+ subsidiaries Local subsidiaries manage operational accounts and daily payables & receivables Challenges with previous infrastructure Sending payments by telex and fax was labor intensive and prone to errors Growth in transaction volume to support local and increasingly global operations strained resources and bank processes Operational activities limited ability to focus on analysis and strategic treasury initiatives Group Treasury (TREMA) Business unit (SAP) Group Accounts and Services (SAP) SWIFT Implementation SWIFT Alliance Treasury payments, notifications to receive, statements, FX and Securities deal confirmations, sent / received using FIN Instruction letters to pay suppliers sent in predefined template or PDF format via FileAct Key benefits of using SWIFT Automation doubled staff productivity, reduced telex & bank processing costs, allowed interest earned on funds released later With SWIFT, we now have a standard and reliable process with our banks 414% ROI, $1.1 million net benefits in 5 years Project to implement Shared Service Center based on SWIFT as messaging infrastructure Presentation title - Event - Date Month Year 49 FIN FIN FileAct

50 Petronas: Financial result from using SWIFT SWIFT operations (94%) Cost structure Project management (6%) Treasury staff increase Year 0avoidance (14%) Benefits composition Additional interest earned on investment payments (65%) Telex cost savings and bank processing STP (19%) Interbank fee optimization (2%) 1,200,000 1,000, , , , ,000 Break even analysis (discounted, at end of year) 0 Year 0 Year 1 Costs Year 2 Year 3 Year 4 Benefits Year 5 Project costs include link to Treasury Management System, which was already SWIFT enabled SWIFT operations costs include SWIFTAlliance capital expenditure and maintenance, traffic and transaction charges Petronas will generate $1.1 million in net benefits over 5 years from its investment in SWIFTNet Treasury doubled transaction volume with same headcount, avoiding 8 extra staff. Automation eliminated telex costs and allowed banks to process payments straight through. Better visibility allows reduced interbank fees. Interest is earned on increased funds available due to payments released a day later Payback in 14 months Presentation title - Event - Date Month Year 50

51 SwissRe Company profile Leading and most diversified reinsurer Operates in over 25 countries About 11,000 employees Treasury profile Business groups using SWIFT Asset Management Finance (Operational Payments) Global Cash Management Consolidated and centralized back-office systems Legacy ERP / EDI Treasury / Cash Management Portfolio management Application 1 Application 2 Case study performed by April 2007 Swiss Re Network BBP (Service bureau) SWIFT Implementation Account Holding Bank Financial Institution 1 Financial Institution 2 Finance Zurich processes ~ 90% of its payments via SWIFT: G/L to pay clients, insurers, brokers and suppliers; Quantum to manage portfolio positions and perform cash management Asset Management trades and reconciles ~ 95% of its trades via SWIFT using OpenMSG Challenges with previous infrastructure Increase in trading activity heightened burden on internal processes and systems Opportunity to improve communication with banks and custodians, at times cumbersome and often delayed Key benefits of using SWIFT Single portal to the financial industry With SWIFT we have been able to enhance our communication with banks / custodians, while improving quality, security and efficiency of our information STP 4x savings to the original investment Presentation title - Event - Date Month Year 51

52 Swiss Re: Financial result from using SWIFT Labor: implementation, maintenance, staging and mapping Other infrastructure: bureau costs for accessing SWIFTNet SWIFT costs: membership fees, traffic costs & BIC costs for multiple BICs ~ 10 million in net benefits over five years Increased visibility for better cash pooling Increased visibility and action enables working capital growth avoidance Payback in 25 months Presentation title - Event - Date Month Year 52

53 T-Mobile Company profile Mobile communications to 103 million customers in 12 countries 55,000 employees 23.6 billion as of September 2006 Treasury profile In-House Bank + Payments Factory Process all internal and external payments from all European subsidiaries in one central system, with one global standard 120 million transactions/year National companies Local ERP (SAP) Local ERP (SAP) Local ERP (SAP) Intranet T-Mobile International In-House Bank (SAP) International Finance Portal SWIFT Alliance March 2007 Banks National payment formats sent via FileAct using XML wrapper, without conversion cost Bank application ack received via FIN Challenges with previous infrastructure Special e-banking systems in every country lead to high operating & maintenance costs Not possible to add central signature Multiple banks/accounts at national level Key benefits of using SWIFT With SWIFT, T-Mobile can run a central platform with a single standard for every country and every bank for the first time 182% ROI Possibility to roll-out Payment Factory based on SWIFT at Deutsche Telekom group level Presentation title - Event - Date Month Year 53

54 T-Mobile: Financial result from using SWIFT Middlew are (16%) Cost structure Joining (1%) Servers + operations (46%) SWIFTNet Infrastructu re (7%) Traffic (6%) Project (25%) Transaction processing efficiencies (49%) Benefits composition Cash mgmt ops labor savings (16%) Bank systems cost savings (35%) 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Break even analysis (at end of year) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Costs Benefits Costs include joining MA-CUGs, SWIFTNet infrastructure and traffic. Non-SWIFT costs include project management, servers + operations, middleware for the international finance portal T-Mobile will generate EUR 4.5 million in net benefits over 5 years from its investment in SWIFTNet Increased automation, control and standardisation allow T-Mobile to re-allocate 2 FTE and retire 15 bank messaging systems in four European subsidiaries Efficiencies from central operations lead to economies of scale and reduction in payment transactions Payback in in 3 years 2 years Presentation title - Event - Date Month Year 54

55 Yves Rocher Group Company profile Personal care 2 billion revenues, 40 million customers 8 brands, acting in 88 countries 15,000+ employees Treasury profile 106 banks, 550 accounts 50+ bank communication systems 800 market transactions per year Decentralized collections & payments. Centralized exchange risk, liquidity, cash pooling, netting. Challenges with previous infrastructure Strong presence with many local banks Many heterogeneous platforms and security mechanisms Build European communication platform Yves Rocher TMS (KTP/ Reuters) ERP (SAP) EAI (TRAX) Service Bureau (CMCIC) SWIFT implementation Bank Bank Bank SWIFTNet FileAct All kind of payments (treasury, suppliers, payroll). Local formats (AFB320,VCOM...), waiting for XML Connectivity via Service Bureau; integration through financial EAI Key benefits of using SWIFT Wide reach Tighter security Low operational overhead Transparency of Service Bureau solution May 2007 Presentation title - Event - Date Month Year 55

57 Plan your project Define scope Contact banks Select software vendors Pilot Roll out Financial services Banks Applications Formats and messaging Type of connection Contact relationship manager or see swift.com Agree service modalities. Contract template available Contact SWIFT See SWIFT ready partners on swift.com Join SWIFT Install software, connect to SWIFT Run test pilot Per bank Kick-off meeting Setup and test live environment Go live Typical timeframe (depends on size of corporate and type of project) 1 month, for a EUR 750 million turnover corporate, to do treasury management with 3 banks using Alliance Lite 1 year, for a EUR 25 billion turnover corporate, to integrate SWIFT in its Payment Factory project Presentation title - Event - Date Month Year 57

58 About your project Treasury profile Treasury organisation? # banks, # bank accounts? Back-office applications? Challenges with current infrastructure? # treasury payments/month? # commercial payments/month? SWIFT project Expected benefits? What would you use SWIFT for? Target live date? List of (primary) banks? # transactions to send over SWIFT? Formats: domestic, ISO,...? Which applications would you use? How would you connect to SWIFT? Presentation title - Event - Date Month Year 58

59 Defining your project scope Which applications to connect to SWIFT? How to connect? What formats & messaging to use? Which banks to connect to? FIN for payments (MT101), statements (MT940/2) and FX confirmations (MT3xx) Treasury Workstation ERP(s) ERP Payment factory/ middleware SWIFTNet connectivity SWIFTNet FileAct as file transfer to transport any format: domestic, ISO 20022, ACH, BAI, Presentation title - Event - Date Month Year 59

61 More info? Your banks Other corporates on SWIFT SWIFT account director swift.com/corporates Corporate community on Conferences Industry events like Eurofinance, AFP, ACT SWIFT for corporates days Sibos Forum for Corporates Presentation title - Event - Date Month Year 61