1. Topics: Perfetti Van Melle at a glance
Perfetti Van Melle treasury redesign project
Lessons learned
Conclusions
Perfetti Van Melle Holding B.V., Treasury Department

2. Perfetti Van Melle at a glance
Perfetti Van Melle Holding B.V., Treasury Department

3. Facts & Figures
HQ in Lainate (Milano) Italy. Finance / Treasury HQ in Breda, The Netherlands
Turnover: EUR 2,5 bln
Sales in 150+ countries
31 production facilities
Subs in 40 countries worldwide
Perfetti Van Melle Holding B.V., Treasury Department

4. Perfetti Van Melle treasury facts
Situation back in 2009:
62 bank relations in 40 countries
380+ bank accounts
15+ electronic banking systems, partly central, partly decentral
Manual banking used widely
Central intranet based cash position reporting systems (weekly balances, manual entry by subsidiaries)
Treasury management system used by corporate treasury only
Cash pools in NL in 9 currencies, subsidiaries participating with non-resident accounts. Centralized execution of hedging and funding
Treasury staff of 3 FTE (FO&BO)
Perfetti Van Melle Holding B.V., Treasury Department

5. Treasury redesign goals (Q2 2010)
Primary goal: Cash visibility and control
New system for payment management, liquidity management and treasury management including full ERP connectivity
Bank connectivity via SWIFT for statements:
MT940 statements in FileAct
97% of cash flows & 85% of bank accounts visible daily
MT942 via FileAct on principal trading accounts (150 accounts)
Bank connectivity for payments:
XML payments (pain001) harmonization
Local CM execution, central administration and policy making
Bank rationalization (62>35)
Secondary goals
Perfetti Van Melle Holding B.V., Treasury Department

6. Treasury redesign business case
Business case performed on high level
Business case findings: Business case not positive
Despite that, support from management
Sole reason: value of visibility and control.
Perfetti Van Melle Holding B.V., Treasury Department

7. Achievements up to Q3 2011 All new systems operational
45 bank relations in 37 countries
325 bank accounts
76% of bank accounts reported via SWIFT from 20 banks, approx. 85% of all cash flows visible daily
Treasury live on manual payments via SWIFT
3 subsidiaries live on manual & bulk payments via SWIFT
Perfetti Van Melle Holding B.V., Treasury Department

8. Lessons learned: SWIFT (1/2)
Statement reporting via SWIFT serves the purpose of visibility very well
When it works, it works: little maintenance on the channel
Support from SWIFT is generally very good
Good reason for bank rationalization
Underestimated total cost of maintaining connectivity via SWIFT:
Connection (Alliance Lite / service bureau fee)
SWIFT subscription fees
Messages (SWIFT), possible message surcharge Service bureau
Banks’ setup fee and messages
Corporate infrastructure setup and maintenance
Perfetti Van Melle Holding B.V., Treasury Department

9. Lessons learned : SWIFT (2/2)
We have been struggling with technology issues:
Making SWIFT alliance lite work and the subsequent migration to SWIFT service Bureau (Broadridge)
Technical infrastructure setup:
Servers
FTP connectivity
Interfaces
Functional IT:
ERP integration (SAP integrated system of Hanse Orga selected as the tool for Payment management, Liquidity mngt. and Treasury mngt.)
Interfacing with dealing platform (FXall)
Interfacing (temporarily) with intranet reporting system
Payment format setup and testing
Perfetti Van Melle Holding B.V., Treasury Department

10. Lessons learned: Banks&SWIFT (1/2)
Support and performance differs significantly between banks:
Struggling with documentation
Connectivity setup
Message types supported
Statements
Payment instructions
Direct debit
Treasury confirmations
Bank delivery times can be very long
Due to heavy investments, not a bank independent solution
Perfetti Van Melle Holding B.V., Treasury Department

11. Lessons learned : Banks&SWIFT (2/2)
Costs are not transparent up front. Completely off the scale pricing proposals seen. Negotiation pressure heavier than anticipated.
Setup fee
Maintenance fees
Message fees often overlooked
Logic of pricing often not visible
Portfolio determines the price only partly
Sophistication of proprietary solutions used as SWIFT pricing argument (higher)
Perfetti Van Melle Holding B.V., Treasury Department

12. Lessons learned: The company
Impacts almost every business area: long list of stakeholders to maintain. Notably:
Audit (separation of duties and EDP audits)
Procurement (vendor master data)
Financial administration (key users)
Issues sister companies (rightly so or just as excuse)
Sense of loss of control / ownership
Complex local products not easily fit in standardized tools / formats
Legal discussions
Transfer pricing discussion
Permanent “project” = permanent support
Pilot subsidiaries necessary to show achievements to reluctant subs
Perfetti Van Melle Holding B.V., Treasury Department

13. Lessons learned: In house technology and functional design
Technology needs are vast. We have certainly overlooked areas.
Sophisticated payment / treasury management system
Servers, secure connections
ERP connectivity
Staff that can cover both Treasury and IT subjects (integrated project team)
Perfetti Van Melle Holding B.V., Treasury Department

14. Conclusions on SWIFT
The statement reporting via SWIFT has proven very useful in the visibility goals
SWIFT is not a solution fit for all. Whether it works for your company depends on the company’s structure and approach.
SWIFT is not plug and play, not even SWIFT Alliance Lite
Beware of marketing
Perfetti Van Melle Holding B.V., Treasury Department

15. Conclusions on Banks Banks in NW Europe are highly cooperative
Banks in NW Europe show extensive knowledge
SWIFT setup with banks is not plug and play, many banks struggle with their own systems
Beware of marketing
It is not bank-independent due to the investment, especially in time.
Perfetti Van Melle Holding B.V., Treasury Department

16. Conclusions on the Company
Technological complexity has to be covered by Finance and IT together, impossible to do this without integrated treasury and IT project team.
Visibility and control are the main benefits, not cost saving from efficiency
This is not a project for us. It has proven standard process.
Underestimation of the complexity and impact.
Endless list of stakeholders.
Perfetti Van Melle Holding B.V., Treasury Department

17. Q&A ?
Perfetti Van Melle Holding B.V., Treasury Department