Cash Management

1
Cash Management Presentation Chamber of
Commerce Breakfast Meeting September 2008

2
What on earth is Cash Management ?

• Making money on money
• and making money through efficient procedures
  support systems.
• Has a direct impact on Shareholder Value and
  Profitability.
• Releases Capital Employed from the balance sheet
  and identifies and realises administrative cost
  savings.

3
What Every Business Has to Think About
PURCHASE
SALES
Suppliers Receive and approve invoices Payment
and bookkeeping
Customers Receive orders Invoicing Payments Reconc
iliation
Liquidity Management Working capital Currency
Trade Finance Financing Leasing
HR administration Payments and credit
cards Pension Salaries/Wages
LIQUIDITY
Administration
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Payments
Account Information
File Transfer
Collection Services
Trade Finance
Currency Trading
Integration with Account Management Software
Corporate Cards
Book-Keeping
Receipt of Payment

• Collection Service
• Trade Finance
• Credit card payments
• Bank Giro Credit

• Acc. Information
• Lodgement
• File Transfer
• Cap File

• Acc. Information
• File transfers

• Acc. Inforamtion
• File transfers
• Reconciliation Serv.
• Host to Host
• Collection Service
• (Unpaid D/Ds)

• Corporate card
• Markets Online Currency

Payments (Groups) File transfers Auto giro
Liquidity Management Markets Online (all 3)
Liquidity Management
Payments File Transfers Trade Finance Credit
Card, cheques
Acc. Information File Transfer
Corporate Card Markets Online Currency Trade
Finance
Internet account Trade Finance
E-invoice Travel account ERP/Integration
Due Date Payment
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Business eBanking World Class Capability

• Cash Management
• Tools to help manage working capital account
  information, payments, file transfers
• Trade Finance
• Processing of export and import documentary
  credit
• Danske Group confirmation capability of letters
  of credit within 24 hours
• Markets On-line
• Mini trading desk in customers office
• Securities, foreign exchange, forward contracts,
  swaps and options

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Cross Border Banking The answer!

• One point of entry to one banking system.
• Visibility and Management of information and
  transactions.
• Reduced transaction costs.
• Same day value for funds transfers in same
  system.
• Execute cross border transactions as local
  payments
• Open local collection accounts in customers home
  countries.

7
Liquidity Management

• Visibility of your funds Nationally and
  Internationally
• Control over your funds Nationally and
  Internationally
• Ability to concentrate your funds to one
  location/account
• Enables you to optimise the use of and return on
  your money!

8
Group Cash Pool (zero balancing)

• Physical movement of funds!!
• TOP account /SUB accounts
• Zero balancing automatic sweeping per transaction
  between SUB accounts and TOP account
• Single currency - in all major currencies
• Internal balance, control of available funds
  (optional) and inter company interest calculation
  at SUB account level
• External balance, control of available funds and
  interest calculation at TOP Account level

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Cross Border Sweeping

• Automated service for concentration of liquidity
  cross border and cross banks
• Target balance.
• Upper and Lower triggers
• Free choice of period (i.e. daily, weekly)
• Based on SWIFT MT940, MT101 and MT103 message
  types

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Questions ?