Kerry Runs Simple. Trevor Horan Kerry Group Liz Smith SAP Global Treasury

Transcription

1 Kerry Runs Simple Trevor Horan Kerry Group Liz Smith SAP Global Treasury

2 Kerry Group 2

3 Facts and Figures REVENUE 2014 TRADING PROFIT 2014» Revenue 5.8bn Consumer Foods 26% Consumer Foods 19%» Listed on both the Irish and London Stock Exchanges» Sales to 140 countries» 130 producnon facilines in 24 countries» 24,000 employees Ingredients & Flavours 74% Flavours 4,347m Consumer Foods 1,509m Ingredients & Flavours 83% Flavours 593m Consumer Foods 125m KERRY WORLDWIDE LOCATIONS SALES BY REGION 2014 Americas 33% Asia- Pacific 14% EMEA 53% Head Offices Manufacturing Plants Sales Offices 2015 SAP AG or an SAP Note: affiliate * As at company. All rights reserved. 3

4 Kerry Old Situation: Intercompany payments Kerry Pre SAP In House Cash - Manual Netting Process Manual Netting Process 145 Sites 600k ICO Transactions Head office 800 High Value Internal Payments - Value EUR 4bn 4

5 New Solution: Intercompany payments with SAP IHC External I/CO payment transactions are changed into internal posting transactions External Payments Internal netting via IHC without external Payments (besides funding of internal accounts)... the transactions change balances of internal accounts with Kerry IHC Bank 5

6 Top Level Cash Pooling Kerry Group Financial Services USD Header Euro Header GBP Header CAD Header AUD Header DKK Header Other Header Flavours, Kerry Foods, USD A/C s Flavours, Kerry Foods, Euro A/C s Flavours, Kerry Foods, GBP A/C s Flavours, Kerry Foods, CAD A/C s Flavours, Kerry Foods, AUD A/C s Flavours, Kerry Foods DKK A/C s Flavours Kerry Foods Other ccy A/C s EMEA pool with Citi will consist of 40+ entities and 100+ bank accounts through KGFS North America Physical pooling with BOA in place APAC 8 currency MCNP in Singapore with JP Morgan 6

7 In House Cash & Payments The following Treasury roles use the SAP IHC & BCM modules: - In-House Cash Analyst - Payments Processor / Payments Approver The In-House Cash module in SAP is used to perform In House Banking activities The Bank Communication Management module in SAP is used to streamline electronic communications with our Banks TRM CLM IHC BCM FSCM Treasury Applications in SAP SAP Treasury and Risk Management Risk Analyzers Credit Risk Analyzer Market Risk Analyzer Portfolio Analyzer Exposure Management Money Market Foreign Exchange Transaction Manager Hedge Management Deri-vatives Debt Mgmt Securities SAP Cash and Liquidity Management Cash Management SAP In-House Cash Liquidity Planning SAP Bank Communication Management Commodities 7

8 In-House Cash Process SAP In-House Cash Intercompany Netting & Settlement Interest Calculation Bilateral & Syndicated Facilities Treasury POBO Inter Company Netting and settlement (where required), for balances between the IHB and Group subsidiaries Interest calculation for the positive / negative balances on respective IHC accounts with the subsidiaries Group Treasury provide intercompany loans to subsidiaries but the source of funds will be an external facility agreement with a bank Limited payments on behalf of (POBO) will also be routed through the IHC setup 8

9 We practice what we preach SAP Group Treasury runs SAP Treasury Solutions EMIR: SAP Global Treasury leverages SAP s treasury solution for Central Reporting of all SAP group treasury activities and collects data that have to be sent to the transaction register at t+1 automatically Payment Factory with Global Formats for payments/ reporting. Automated 24x7 posting of p.a. > payments > bank account statements > statement transactions for > 250 subsidiaries globally > 700 bank accounts globally By bringing intragroup payments inhouse with SAP In-House Cash, we have been able to reduce bank fees, minimize costs associated with foreign exchange rates, and significantly lower our risk as an enterprise operating globally 9

10 Treasury and Financial Risk Management An embedded Treasury Platform on premise and in a private managed cloud SAP Treasury Solution Market Places Debt and Investment Strategies Financial Risk Management FX Management Debt Management Investment Management Correspondence Framework Limit Managment Exposure Management Hedge Management Risk Management Banks Market Data SAP ERP Cash & Liquidity Management Cash Operations Bank Account Management Cash Forecasting / Planning Simulation Payments & Bank Communication Payments In House Banking Bank Statements Monitoring Status Management Signatory Trade Repository SAP HANA Central Exposure Hub HANA Platform + New Accounting (Simple Finance Add On) AP/AR SAP Others 10

11 SAP Cash Management powered by HANA Centralized Cash Management Cash Operations for the day to day management of the corporates working capital cash Monitoring incoming bank statements Preparing a daily forecast of cash receipts, disbursements and expected closing balances Overseeing bank risk Initiating bank transfers and payments Approving and monitoring payments 11

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