Peter Matza Engagement Director Roshun Tulkens MCT International Treasury Manager, Reckitt Benckiser The Contemporary Treasurer GTR Mena Trade Finance Week February 2016

As a Chartered professional and global body the ACT has two primary concerns to advance the interests of its members, students and the corporate treasury community to enhance the understanding and appreciation of corporate treasury as a discipline in financial and business management.

What is corporate treasury? The international business of strategic financial management So let’s define Corp treasury... It is the interface between the company and financial markets It deals with right now and with the future, grounded in cash Cf Accounting perspective - usually deals with the past, grounded in accruals-based accounting standards Each complements the other – hence Accounting & Finance… Every business everywhere does Corporate treasury – even you… Your personal strategy – get a degree, lever on that degree to get a job, career… How do I fund that? Student Loan? Bank of Daddy? Part time, vac work? Etc How do I control the risks? Eg run out of money; don’t get a 2.1 or above; hate my course; can’t get a job; can’t repay my Student Loan, parents etc. Foreign students – more complexities due to currency, overseas etc. Now we’ve defined corp treas – where does it sit in the organisation? How do we decide what to invest in? How do we raise the money to make those investments? How do we control the risks in the organisation?

Treasury Competency Technical Skills Business Skills Behavioural Skills

Treasury Competencies Technical skill E.g. Financial risk management, treasury operations, governance Behavioural skills Influencing capability Business skills Knowledge and information management Roshun, comments?

Strategic challenges Treasurers are involved in bringing together financial strategy and business strategy to form corporate strategy At the strategic level, treasury is about advising on appropriate choices, the trade-offs and compromises involved Treasurers need to demonstrate the skills and capabilities needed to operate successfully in today’s business environment

The dimensions of treasury Centralised / de-centralised Head Office / regional treasury centre Industry sector / size of business Level of international versus domestic business Divisional structure / closeness to operations domicile / currency Corporate culture Cost centre / profit centre / value add Life cycle / stage of development

Treasurer role expanded Enterprise risk Commodity risk Insurance Tax Mergers & Acquisitions Investor relations Real estate Pensions Corporate strategy

Treasury design In house banking likely to be more difficult Skill set will change Less factory like, more boutique Risk management more sophisticated Less automatic use of derivatives More use of regional / local treasuries & facilities More supply chain finance More relationships Banks, investors, 3rd party funders (e.g. ECAs / Credit insurers), exchanges

Who does a treasurer talk to? CEO / Board CFO Senior Finance – Tax, Sales, Procurement Other finance / sub cos Banks, other credit providers Audit – internal / external Investors – with IR (many ignore DCM) Roshun, comments?

Treasury challenges Financial services relationships changing Traditional financing options scarcer, new options more diverse Risk factors prominent Concerns especially around counterparty risk - ‘KYB / KYC’ – who am I doing business with? Financial services regulation

Questions for the treasurer/finance team, Peter Matza and Roshun Tulkens What is the organisation’s strategy? What is the mix between business and financial risk? What is your financial strategy? Liquidity, shareholder returns, counterparty risk,ratings, FX / interest rate risk What is your approach to bank / service provider relationships and how do you assess performance? What are your objectives? What are you worried about?

Questions for the financial service provider, Peter Matza and Roshun Tulkens What is your approach to relationship management? How are you rewarded for dealing with me? What are your strengths and weaknesses? Should we really do this deal with you? Who would you deal with if you were me? Are you qualified?

How to get involved with the ACT Visit the ACT’s website www.treasurers.org Register online to receive ACT’s monthly e-newsletter Follow the ACT on social media Email enquiries@treasurers.org Call the ACT today +44 (0)20 7847 2540 Available on stand in Atrium to answer any questions and chat generally.