2. Restructuring Treasury EBN
DACT Treasury Beurs
Noordwijk, 11 November 2011
Jeroen Piket, Treasurer
EBN B.V. Moreelsepark EP Utrecht

3. EBN General
Wholly state owned company managing exploration, production, storage and sale of Dutch State’s oil and gas reserves, on-shore and off-shore
EBN participates in any license to explore and produce Dutch territorial gas and oil reserves (EBN share appr. 40%)
Currently approximately 176 partnerships with oil & gas companies
Investment and costs are shared pro rata parte and partners separately sell their share output
EBN key figures 2010 Sales € 6.5 billion Net profit € 2.1 billion Capital expenditure € 607 million

4. EBN In 2011
5% increase in number of participations in exploration and production partnerships
Capital expenditure € 800 million (EBN share)
Further focus on development unconventional gas projects (shale gas)
Reactivation of on-shore oil production in Schoonebeek
Development underground gas storage Bergermeer

5. EBN Funding
Strong credit profile, stable Aaa/AAA rating, despite low equity base and high leverage
Funding sources
Short term: commercial paper
Long term: loans and bonds (a.o. CHF public bonds, JPY private placements)
Highly seasonal working capital flows a.o. following large production volumes in winter, low volumes in summer

6. EBN Treasury restructuring - background
EBN’s Treasury historically 100% outsourced
Decision to set up own EBN Treasury taken in /2009 with targeted live date 1 July 2010
Therefore:
Treasurer and Cash manager hired as per 1 October 2009
Treasury accountant hired as per 1 November 2009

7. EBN Treasury restructuring - scope
Scope of the project
Education new Treasury staff
Selection treasury management system (TMS)
Implementation TMS
Selection and set up other Treasury infrastructure
Market data (Reuters)
Counterparty risk tools (Moody’s Market Implied Ratings)
Electronic banking
Trading portals (360T and MyTreasury)
Implement new dealing mandate structure
Establish new Treasury Policy

8. EBN Treasury restructuring - scope
Scope of the project
Education new Treasury staff
Selection treasury management system (TMS)
Implementation TMS
Selection and set up other Treasury infrastructure
Market data (Reuters)
Counterparty risk tools (Moody’s Market Implied Ratings)
Electronic banking
Trading portals (360T and MyTreasury)
Implement new dealing mandate structure
Establish new Treasury Policy

9. EBN Treasury restructuring - project organization
Project manager (Treasurer), Cash Manager, Treasury accountant
Steering group
EBN Board
Consultancy (Zanders, E&Y)
to EBN board prior to 1 October 2009
During project: TMS-selection only
Pre-live review
Also involved: Legal, ICT

10. EBN Selection EBN TMS
Business case: description of EBN processes, EBN system infrastructure etc.
Translate this into TMS requirements
Request for proposal to three pre-selected vendors
Response vendors / demonstrations
Three reference visits
Evaluation, scoring, selection, decision
EDP vendor
Contract negotiation

11. EBN Selection EBN TMS
Business case: description of EBN processes, EBN system infrastructure etc.
Translate this into TMS requirements
Request for proposal to three pre-selected vendors
Response vendors / demonstrations
Three reference visits
Evaluation, scoring, selection, decision
EDP vendor
Contract negotiation

12. EBN EBN’s TMS criteria related to
Forecasting
Cash management
Implementation
Pricing
Reporting
Deal capturing
Security
Static data management
Support
Accounting
All of this in a context of single entity company, with large transaction sizes of all natures, but low transaction volumes

13. EBN Implementation Bellin tm5 at EBN
Set-up / training / portfolio input:
Set up of System settings (master data, entities, counterparties, users, rights, bankaccounts, currencies, etc.: 2 days
Configuration and Setup of TT Contract, configuration of LMCash and LMStatus: 2 days, followed by entry ytd transactions
Setting up and using LMPlanning: 2 vendor
Configuring TTRiskWatch training (scenario analyses): 2 days
Testing, problem solving 2 weeks
Pre-live review by E&Y With scope system access and authorization levels in Bellin, electronic banking systems, trading portals: 3 days
Go-live

14. EBN Implementation Bellin tm5 at EBN
Set-up / training / portfolio input:
Set up of System settings (master data, entities, counterparties, users, rights, bankaccounts, currencies, etc.: 2 days
Configuration and Setup of TT Contract, configuration of LMCash and LMStatus: 2 days, followed by entry ytd transactions
Setting up and using LMPlanning: 2 vendor
Configuring TTRiskWatch training (scenario analyses): 2 days
Testing, problem solving 2 weeks
Pre-live review by E&Y With scope system access and authorization levels in Bellin, electronic banking systems, trading portals: 3 days
Go-live
2 months

15. EBN What do we have now A system that facilitates:
Cash planning with a.o. upload from G/L
Cash reconciliation
Cash positioning
Deal capturing
Reporting
MtM valuation
Scenario analyses
Integrated market data (yields, exchange rates)
On-line internet access (system is hosted by vendor)

16. EBN What did we choose not to implement
Direct feed of bank statements (Swift MT940)
Interface to accounting system
Netting (not applicable)
Interface with payment systems

17. EBN Lessons learned
Understand your needs and focus on what you really need
How much flexibility do you need?
Focus on standard functionality
Include case-studies in the RfP’s
Reference visits
Create broad awareness of planning in organization and stick to it
Search for the best fit, not necessarily for the best system
Stay hands-on involved in implementation process, limit consultants’ work as much as possible to advice

18. EBN Questions