Swift For Corporates Overview

SWIFT for corporates
Client or event
Speaker
Date Month Year
Agenda
Your challenge our solution SWIFT for corporates New Services Business case Case studies Your SWIFT project More info?
Presentation title - Event - Date Month Year
Corporate Treasury drivers

Manage liquidity
Visibility to global cash Ability to reach all banks
Efficiency
Productivity Working capital Infrastructure
Standardisation Rationalisation Automation Security
Risk Compliance
Regulators (SOX, SEPA) Internal controls
Technology
Web (IP)
SWIFT: a single, standardised gateway

Multiple bank channels
Corporate
Accounts payable host to host X Accounts receivable Treasury e-banking Y Leased line Accounts receivable Treasury Internet e-banking Z VAN
Single, standardised gateway

Corporate
Accounts payable
Standardised gateway
Other
Other
High cost No global visibility on cash Impossible to centralise
Global visibility on cash Lower cost Increased control and security Reduced risk
4
Benefits of using SWIFT - examples

Case studies available from swift.com/corporates
Global visibility on cash

Better visibility on global cash allows reduction of borrowing cost, optimisation of un-invested cash and avoidance of working capital growth
EUR 10 million in net benefit at Swiss Re
Cost reduction
Rationalisation of electronic bank messaging systems at EUR 5,000 to 20,000/year each
15 systems retired at T-Mobile 25 systems retired at DuPont 40 systems retired at Arcelor 30% volume increase per resource at GE 8 extra staff avoided at Petronas
5
Cost reduction / avoidance

Automation leads to staff productivity increase, re-allocation and growth avoidance
What corporates on SWIFT value most

achieve all objectives of our treasury centralization project
Head of Treasury and Risk Management, Iberia
run a central platform with a single standard for every country and every bank
VP Finance & Treasury, T-Mobile International
have a standard and reliable process with all our banks

Group Treasury, Petronas
We took SWIFT to
build one central source of truth for banking data

Group Manager, Treasury, Microsoft
reach all our banks directly, with the highest security

Head of Treasury Control and Reporting, Novartis
Presentation title - Event - Date Month Year 6
Financial Crisis - Value for SWIFT and priority on treasury projects
Where is my cash?
Can I move my cash?
Can I reach all my banks?
MT 940
MT 101
Multi-bank gateway
Corporates on SWIFT Where do we stand today ?

# registered corporate entities Geographical split
565
600
Asia Pacific
402 282 181
11%
Americas
20% 69%
2006
2007
2008
2009
Q1 2010
EMEA
Where do we stand: EMEA

2003: 12 2007: 105
Adoption
2009: 391 Mid caps Sustained growth although early adopter markets roll out New: Middle East, Nordics Management consultancy firms Connectivity: Lite, SBs, Member concentrator ASP ISO20022 (XML) SEPA & PSD FileAct Industry dimension: utilities and governmental bodies
Expansion
Market Players
Specials
Where do we stand: Americas

2003: 4 2007: 45
Adoption
2009: 110 Mid caps
Expansion
North America: Western coast Latin America: Brazil, Peru, Colombia Direct connectivity New: management consultancy firms ASP offering: coming Bank readiness: improving
Market Players
Specials
Actual adoption of ISO20022 (XML) for reporting & payment

10
Where do we stand: APAC

2003: 0
Adoption
2007: 22 2009: 64 Large
Expansion
Korea Hong Kong, India, China Global banks expand their SWIFT offering Local banks joining the club Speed Lite for all: first step to SWIFT Education and awareness High interest for SWIFT Trade solutions
11
Market Players
Specials
Agenda
12
About SWIFT
A co-operative organisation serving the financial industry
A provider of highly secure financial messaging services
The financial standardisation body
13
The solution a collaborative partnership
Treasury Workstation Middleware ERP(s) ERP(s) ERP SWIFTNet
Partners
SWIFT or partners Business standards
SWIFT
Banks
SWIFT and standards bodies

Financial services, provided by banks

Treasury Management
Monitor accounts and obtain global visibility on cash by integrating end-of-day and intra-day statements into treasury systems Manage liquidity and pool cash company-wide, by sending payment orders Financial risk management, by exchanging FX confirmations and matching them Invest surplus cash
Additional services
Electronic Bank Account Management (EBAM) Personal Digital Identity Exceptions and investigations Trade finance
Cash Management
Run payment / direct debit factory to pay suppliers, debit customers, pay salaries, and receive account statements and advices ACH payments, disbursement files, check files
15
Standards and SWIFTNet messaging

Treasury and Risk Management SWIFT MTs FIN

Typical application Standards and formats SWIFTNet messaging
Cash Management ISO 20022 Domestic formats FileAct

ACH files Supplier payments Direct debits Salary payments
Exceptions and Investigations ISO 20022 InterAct

Exceptions & investigations
Example MT 101 for high value treasury payment MT 940 with end-of-day account statement MT 300 FX confirmation
16
Connectivity options, adapted to your needs

Direct connection
Global corporate (25+bn turnover) Millions payments/year Manage your own SWIFT connection
VPN
VPN Network partners
Indirect connection
Very large corporate (125 bn turnover) Hundred thousands payments/year Outsource SWIFT connection
VPN
Internet or VPN
Service bureau or Member/Concentrator
Alliance Lite
Internet
Web server Work flow SWIFTAlliance SWIFT
Large corporate (500 million1 bn turnover) +/- 200 transactions/day Simple solution
17
Back-office integration
Do it yourself Or, choose an application that is SWIFTReady for corporates
See swift.com
Several vendors have SWIFTReady middleware You can also be helped in your feadsibility and/or implementation by knowledgeable business consultants. Watch the SWIFTReady Consultancy label.
18
Agenda
19
Electronic Bank Account Management (EBAM) Project objectives

Today
Paper Bank Corporate Fax Corporate Bank
Tomorrow
XML messages Supporting documents Personal Digital Signature Automated/STP Dematerialised Standardised Faster/cheaper
Slow Expensive
Low integration Low satisfaction
20
Electronic Bank Account Management (EBAM) Benefits

Improved control, reduced errors Improved customer service Improved process follow-up Standard for all customers Standard for all banks Straight Through Processing Time saving Cost reduction
Electronic Bank Account Management on SWIFT SWIFT solution 3 layers
Messaging service - FileAct Personal Digital Signature Technical specifications

Sign a XML Attachments enabled Multi formats Naming convention Transport certificates
Header specifications (ACMT)
XML ISO messages

15 msges 18 business scenarios
Sign attachments
22
Personal Digital Signature Current Landscape The Corporate View
We have !!!
We want
No uniform mechanism Different system per bank Costly & difficult to maintain
Corporate-to-Bank Digital Identity Theory vs. Practice (March 2010) 23
Solution for Personal Digital Signature

Solution
eTokens with credentials Multi-bank Multiple channels
Corporate Representative Bank A Bank B
Proprietary
Bank C
Benefits
SWIFTNet
Internet
Convenience Corporate Reduced risk & costs

Bank
Lower costs Improved security
45678
Standardised industry solution Trusted, neutral provider Shared investment

Personal Digital Identity Overview (Feb10)
Timelines
Q110 - Development Q210 - Piloting
24 Q310 - Launch of service
Why SWIFT
Personal Digital Signature: Key Benefits

Interoperable solution Global usage Central Certification Authority Anonymous certificates One signing mechanism Secure infrastructure Local Requirements SWIFT support
Multi-bank / Multi-application / Multi channel
Local & international bank relations
SWIFT issues credential / each bank makes association
Only bank knows user behind the certificate
Uniform processes @ corporate / central revocation function
Re-use of interbank PKI / Qualified eTokens
Software certificates / local standards / national regulation
Token installation / vendor engagement
Corporate-to-Bank Digital Identity Theory vs. Practice (March 2010)
25
Agenda
26
Making your business case

Additional benefits Financial benefits ?
Project typically paid back 2 x by operational benefits
Operational benefits
Costs
Better security, more control, difficult to quantify but can be key driver
Business case
27
Total cost of ownership

Integration costs
Treasury Workstation Middleware ERP(s) ERP(s) ERP SWIFTNet
SWIFT costs: as of 15 KEUR / year
Back-office application integration Middleware enablement Project
Depends on size of corporate, type of connectivity, volume of transactions Registration: 2 KEUR/year Connectivity - Direct: 50 KEUR one-time + 19.4 KEUR/year - Service Bureau: 15 55 KEUR/year (see provider) - Alliance Lite Traffic - FIN MT: 6 20 eurocent - Payment in FileAct: 0.1 0.03 eurocent Alliance Lite: KEUR 10 KEUR/year, incl. registration, connectivity, up to 200 items in/out per day Includes servers or PCs and operations
28
Benefits can be quantified

Staff reduction, reallocation # FTE * cost per FTE and/or growth avoidance Bank systems retirement # systems * 5 to 20 KEUR and/or growth avoidance Working capital optimization and growth avoidance Transaction efficiencies Interest on payments released later Security Compliance # basis points improvement % slow down in growth Use un-invested cash Reduce overdraft and borrowing cost Economies of scale # days * overnight interest Avoidance of fraud, manual errors, Less control points, documentation, legal costs,
Operational benefits
Financial benefits
Additional benefits
29
Typical ROI: 200% - 300%

Novartis T-Mobile DuPont Iberia Microsoft Swiss Re GE Petronas Arcelor Mittal
5 year business case
120% 180% 200% 280% 326%
Case studies performed by
Available from swift.com/corporates
4 x savings to investment 410% 410% 600%
30
Agenda
31
Case studies
Arcelor Belcorp DuPont EADS GE Iberia Microsoft Novartis Petronas SwissRe T-Mobile Yves Rocher
All different: Industry sector, country of operations, turnover / size, treasury organistion, usage of SWIFT, One commonality:
a compelling business case
32
Arcelor Mittal
Company profile World number one steel company 330,000 employees; 60+ countries Pro-forma 2005 revenue: 62.2 billion Treasury profile In 2002, Arcelor Treasury had 750 bank accounts in 40 banks, 14 different countries Top Decision: Use SWIFT as cornerstone to deploy unique, shared and highly standardized bank connectivity solution supporting all treasury activities Challenges with previous infrastructure Streamline infrastructure to achieve greater visibility into cash receipts Spending significant time in maintaining multiple systems and connection points, each with totally different characteristics
Case study performed by July 2005
Arcelor Mittal Entities
In House Bank
Banks
LAN / Intranet - HTH
ERP
TMS KTP/SIDE
FAI PFP2
SWIFT SAA/SAG
FIN and FileAct for liquidity, cash, credit and risk management 46 banks in 16 countries connected
Key benefits of using SWIFT Improved security, reliability and Straight Through Processing 605% ROI, ~ 6 million NPV in 5 years There is no SWIFTNet Project; there is only SWIFTNet in Projects
33
Arcelor Operational impact

Working Capital Optimization With SWIFTNet, cash aggregation volume increased by 67%. Using gain of 5 basis points, Arcelor can invest additional capital translating to benefits of 0.43 million 4% of total benefits Staff Reduction Productivity gains from SWIFTNet led to resource reallocation in Treasury Back Office and reduction in Treasury Commercial Management and Finance 25% of total benefits
Bank Hardware Retirement SWIFTNet combined with Payment Factory allows Arcelor to retire over 40 bank messaging systems 25% of total benefits ( 20K savings per bank, per year)
34
Arcelor Benefits
Consulting / Internal Labor: Legal contracts review, payment factory development, SWIFT implementation, testing Connectivity: linkage to SWIFT, maintenance SWIFTNet: usage fees, including gateway services & maintenance
Hardware retirement: 40 bank messaging systems with average cost of 20K per year Headcount avoidance: maintain 4 headcount while activity doubled Staff reduction: Efficiencies from using SWIFT contributed to reducing department headcount from 40 to 10
Break-even in 18 months Benefits grew exponentially after recognizing values of Payment Factory with no additional costs
35
Belcorp
Company profile Cosmetics products for women Present in 14 countries; 400,000 clients 5,000 employees 2007 revenue objective: 1bn USD Treasury profile Regional treasury center in Lima, Peru Set policy, standardize processes, manage liquidity, maintain bank relationships, execute payments, corporate lending and FX transactions 60+ banks, 30 to execute payments Challenges with previous infrastructure Multiple and various electronic bank communication systems Back-office staff tied up in manual activities to download information and feed ERP Further standardize & automate payments and collection processing, with all banks
July 2007
SWIFT implementation Central Treasury Business Application SAP SICC IPM SWIFT Alliance
Use FIN and FileAct to receive account statements and information of collections, and send mass payments Phased, country-based approach
Key benefits of using SWIFT Automated communications Enhanced security and availability Back-office staff re-allocated to value-added activities
36
DuPont
Company profile Leading global chemical company $27.4 billion revenue Operations in 70 countries 60,000 + employees Treasury profile Centralized operations across three centers worldwide Management of SWIFT as financial communications channel for treasury and business units Global implementation of treasury workstation and single instance of ERP
Global Treasury Centers Singapore Spain U.S. Intranet Treasury Workstation (Quantum) ERP (SAP), used by Business Units
Case study performed by March 2007
SWIFT Alliance
Receive account info and statements in BAI2 format (FIN and FileAct), lockbox and ACH files (FileAct) Send treasury payments (FIN), payments files wires, ACHs, checks & FX payments (FileAct)
Challenges with previous infrastructure Treasury staff dedicated to data collection and managing multiple bank connections, leaving little time for strategic activities Manual interventions, high operational risk Lack of global visibility and ability to optimally manage cash
Key benefits of using SWIFT Cost reduction from automation and single communication platform; financial benefits from better visibility and management of cash SWIFT was the only way to make our vision reach all our banks via one connection a reality 203% ROI over 5 years Scalable platform to support growth objectives
37
DuPont: Financial result from using SWIFT
Project management and operations cost: time to establish infrastructure, connections and system interfaces, and manage server environment SWIFT costs: subscription, SWIFTNet infrastructure and SWIFTNet FIN and FileAct
DuPont will generate $2.5 million in net benefits over 5 years: IT labor savings from reduced infrastructure maintenance Treasury labor savings from business process improvements relative to global centering activities Retirement of 25 bank messaging systems Working capital optimization from improved cash visibility
Payback in 3 years
38
EADS
Company profile Aeronautic and Defense 2006 revenue of EUR 39 billion Sales in 200 countries About 116,000 employees Treasury profile EADS central Treasury Activities provided: Corporate Finance, Sales & Project Finance, Interest Rate Management, Cash Management, FX Management, Asset Management Challenges with previous infrastructure Enhancement of risk management Standardize processes for increased transaction volume & constant head count Achieve further efficiency gains in Treasury operations
March 2007
SWIFT implementation
EADS
Treasury Transaction System
Service Bureau
Brokers Intra day account matching Beneficiary Control List SWIFTAlliance Gateway Accord
SWIFTAlliance Workstation
Banks
Trade confirmations MT300/305/320, notice to receive MT210, payment orders MT101, statements MT940/942, settlement orders MT541/543 SWIFTNet Accord to match confirmations Service Bureau for connectivity, application modules and long-term archive
Key benefits of using SWIFT Clear gains in process quality and efficiency Highly reliable process, no down time Project implementation in time and budget Reliable platform for future requirements, Payment Factory being planned
39
GE
Company profile Diversified technology, media and financial services 100 countries; 300,000 employees $ 152.4 billion revenue Treasury profile GE Corporate Treasury serves 4,000 business units 20,000 bank accounts with 200 banks $ 10 billion average daily cash movements
Business Systems
Case study performed by June 2005
1st Tier Banks
Intermediary Bank
2nd Tier Banks
FIN for payments and credit advice FileAct to replace EDI connections Web Cash Treasury Workstation calculates positions, determines intra day settlements, balance reporting, financial data
Challenges with previous infrastructure 38 proprietary connections, each different (systems, processes and data) Significant resources to maintain, increase required to support scaling of volume Impacting ability to quickly assemble view of current cash positions
Key benefits of using SWIFT One set of global financial messaging processes, connections, message formats Enhanced security, improved flexibility, increased automation, increased visibility 406% ROI in 5 years, payback in 33 months, $ 10.5 million net savings over 5 years
40
GE Operational impact
Improved Reliability GE Corporate Treasury reduced number of connection failures. Pre-SWIFT, average connection failure was 50 times per year; with SWIFT no connection failures have occurred
Simplification Before implementing SWIFT, GE Corporate Treasury dealt with over 100 banks with 38 proprietary software connections. With SWIFT fully implemented, number of connections will drop to one Operational Efficiency By implementing SWIFT, Treasury Operations team can increase activity volume per resource by 31%
41
GE Benefits
GE Corporate Treasury will generate $ 10.5 million in net benefits over 5 years from investment in SWIFT; achieves positive return on operational benefits alone
GE Corporate Treasury will achieve benefits from increased visibility and availability of its cash around the globe
Bank-wide adoption and support of FileAct delayed realization of benefits for first years. As banks adopt FileAct, GE continues to increase its benefits realization
42
Iberia
Company profile Largest air transport group in Spain, fourth largest in Europe 5.5 billion revenues Operates in 47+ countries Employs 24,000 individuals Treasury profile Centralized treasury for Europe and North America and in Latin America Management of cash positions, payments and collections; Design and execution of interest rate & FX risk programs; Banking relationships Challenges with previous infrastructure Obtain visibility to liquidity across countries Centralize payment origination activities Manage multiple payments formats and authorization procedures Operate 60+ electronic banking channels, requiring significant treasury and IT staff
Oracle
GL
Case study performed by July 2007
XRT Authorisation Transfer System (XBE) SWIFT Alliance Access & Gateway Local banks
AP
Payment, Cash & Treasury System (XRT) Quantum Treasury Management System
AR
MT101 sent via FIN for high value treasury and supplier payments MT101 and PAYMUL files sent via FileAct for low value, UK ACH and PE-ACH supplier payments, PAYMUL for foreign and domestic cheque payments sent via FileAct
Key benefits of using SWIFT Consolidation of multitude of banking systems, re-allocation of resources following automation 276% ROI over 5 years We now have single bank messaging platform and whole process from payment origination to acknowledgement is straight-through
43
Iberia: Financial result from using SWIFT
Project management - time to establish infrastructure and execute project Servers & Operations - cost to install and operate SWIFTNet infrastructure Application integration - to adapt treasury systems and connect to SWIFTNet SWIFT costs - MA-CUG registration fees, SWIFTNet infrastructure and traffic
Benefits generated by SWIFTNet for Iberia include: 60 electronic bank systems retired over two years Re-allocation of resources following centralization of banking messaging activities previously handled in the local offices
Payback in 25 months
44
Microsoft
Company profile Software, services and solutions Revenue over $ 50 billion Operates in 100 countries Over 80,000 employees Treasury profile Centralized Treasury with 130 employees 100 banks, 1,000 bank accounts Global ERP and TMS 5,000 Treasury wires monthly, $ 70 billion Challenges with previous infrastructure Visibility across multiple accounts / banks Multiple channels and data formats, high cost to support, lack of scalability & agility No central source of truth
Case study performed by Q4 2007
Account info and statements via MT940 & MT942 Planned: Send Treasury wires (FIN), receive Lockbox and billing analysis (822\BSB) data files (FileAct) and statements in XML
Key benefits of using SWIFT Single secure, reliable, resilient, cost effective channel for communicating with all banks 326% ROI, $4.9 million NPV over 5 years SWIFTNet is enabling Microsoft to build one centralized source of truth for all banking data shared across the company.
45
Microsoft: Financial result from using SWIFT
Payback in 24 months Project management and operational costs: time required to establish SWIFT infrastructure, connections (BizTalk) and system interfaces (SAP) and manage server environment. SWIFT costs incl. subscription, infrastructure and traffic IT Labor savingselimination of/avoidance of time to maintain bank messaging systems Treasury Labor savings reduced time to more effectively manage global cash, monthend close, monitor balances, Cost avoidance of 70-100 bank messaging systems Working capital optimization from later cutoff times and optimize un-invested cash
46
Novartis
Company profile World leader in providing medicines to protect health, prevent and treat disease and to improve well-being 100,000+ employees 37 bn USD group net sales Treasury profile Ensure effective financial risk management Optimize use and profitability of financial resources Provide financing and financial services at low cost to operating businesses Challenges with previous infrastructure Need to replace multi-bank system operated by 3rd party service provider when that came to end of support Automate trade confirmations sent by fax Increase security of payment flows
June 2007
Novartis International Treasury system (OMR) Middleware
Banks
SWIFTAlliance Novartis entities

Switzerland: Novartis AG, Holding, Pensionfund Luxemburg: Novartis Investment Bermuda: Novartis Securities Investments Gibraltar: Novista Insurance
FX deals are confirmed with MT300 and related movements generate MT101 and MT210 Deposits are confirmed with MT320 Securities transactions still confirmed by fax, implementation of MT5xx planned later in 2007
Key benefits of using SWIFT Single channel to reach multiple banks; automation of previously manual operations When we had to replace our bank messaging system, we took SWIFT to reach all our banks directly, with the highest security 120% ROI and EUR 95,000 NPV in 5 years
47
Novartis: Financial result from using SWIFT

Cost structure
Benefits composition
Banking messaging cost savings (22%)
Project management (24%) Traffic (12%)
Servers + operations (7%)
Year 0
Joining / service fees (16%) SWIFTNet Infrastructure (41%)
Treasury ops staff reallocation (28%)
Manual labor cost savings (50%)
Investment included joining and MA-CUG registration, infrastructure and traffic fees, for 6 Novartis entities. Project which took just 6 months - covered evaluation, joining / ordering, installation, connection to middleware, testing with bank partners and go-live. Operations cover daily management of SWIFT interface and connection.
Novartis will generate EUR 723,000 in benefits over 5 years from SWIFTNet. Automation will allow Novartis to save on labor - previously occupied with manual faxes and investigations via phone - and to re-allocate 0,5 staff equivalent. Using SWIFTNet, Novartis retired the bank messaging system operated by a service provider when that came to end of support.
48
Petronas
Company profile Leading oil and gas multinational Active in 30+ countries 50 billion revenue 34,000+ employees
Group Treasury (TREMA) Business unit (SAP) Group Accounts and Services (SAP) FIN
Case study performed by May 2007
SWIFT Implementation
FIN
Treasury profile Group Treasury provides fund management, Treasury payments, notifications to receive, liquidity management and FX for 60+ statements, FX and Securities deal confirmations, subsidiaries sent / received using FIN Local subsidiaries manage operational Instruction letters to pay suppliers sent in preaccounts and daily payables & receivables
defined template or PDF format via FileAct
FileAct
SWIFT Alliance
Challenges with previous infrastructure Sending payments by telex and fax was labor intensive and prone to errors Growth in transaction volume to support local and increasingly global operations strained resources and bank processes Operational activities limited ability to focus on analysis and strategic treasury initiatives
Key benefits of using SWIFT Automation doubled staff productivity, reduced telex & bank processing costs, allowed interest earned on funds released later With SWIFT, we now have a standard and reliable process with our banks 414% ROI, $1.1 million net benefits in 5 years Project to implement Shared Service Center 49 based on SWIFT as messaging infrastructure
Petronas: Financial result from using SWIFT

Cost structure Benefits composition
Telex cost savings and bank processing STP (19%) Interbank fee optimization (2%)
Break even analysis (discounted, at end of year)

1,200,000 1,000,000 800,000 600,000 400,000 200,000 0
Project management (6%)
Treasury staff increase avoidance (14%) Year 0
SWIFT operations (94%)
Additional interest earned on investment payments (65%)
Year Year Year Year Year Year 0 1 2 3 4 5 Costs Benefits
Project costs include link to Treasury Management System , which was already SWIFT enabled SWIFT operations costs include SWIFTAlliance capital expenditure and maintenance, traffic and transaction charges
Petronas will generate $1.1 million in net benefits over 5 years from its investment in SWIFTNet Treasury doubled transaction volume with same headcount, avoiding 8 extra staff. Automation eliminated telex costs and allowed banks to process payments straight through. Better visibility allows reduced interbank fees. Interest is earned on increased funds available due to payments released a day later
50
SwissRe
Company profile Leading and most diversified reinsurer Operates in over 25 countries About 11,000 employees Treasury profile Business groups using SWIFT Asset Management Finance (Operational Payments) Global Cash Management Consolidated and centralized back-office systems Challenges with previous infrastructure Increase in trading activity heightened burden on internal processes and systems Opportunity to improve communication with banks and custodians, at times cumbersome and often delayed
Presentation title - Event - Date Month Year Legacy ERP / EDI Treasury / Cash Management Portfolio management Application 1 Application 2
Case study performed by April 2007
SWIFT Implementation
Swiss Re Network
Account Holding Bank BBP (Service bureau) Financial Institution 1 Financial Institution 2
Finance Zurich processes ~ 90% of its payments via SWIFT: G/L to pay clients, insurers, brokers and suppliers; Quantum to manage portfolio positions and perform cash management Asset Management trades and reconciles ~ 95% of its trades via SWIFT using OpenMSG
Key benefits of using SWIFT Single portal to the financial industry With SWIFT we have been able to enhance our communication with banks / custodians, while improving quality, security and efficiency of our information STP 4x savings to the original investment
51
Swiss Re: Financial result from using SWIFT
Labor: implementation, maintenance, staging and mapping Other infrastructure: bureau costs for accessing SWIFTNet SWIFT costs: membership fees, traffic costs & BIC costs for multiple BICs
~ 10 million in net benefits over five years Increased visibility for better cash pooling Increased visibility and action enables working capital growth avoidance
52
T-Mobile
Company profile Mobile communications to 103 million customers in 12 countries 55,000 employees 23.6 billion as of September 2006 Treasury profile In-House Bank + Payments Factory Process all internal and external payments from all European subsidiaries in one central system, with one global standard 120 million transactions/year
National companies
Local ERP (SAP) Intranet Local ERP (SAP)
March 2007
T-Mobile International
In-House Bank (SAP)
Banks
Local ERP (SAP)
International Finance Portal
SWIFT Alliance
National payment formats sent via FileAct using XML wrapper, without conversion cost Bank application ack received via FIN
Challenges with previous infrastructure Key benefits of using SWIFT Special e-banking systems in every country With SWIFT, T-Mobile can run a central lead to high operating & maintenance costs platform with a single standard for every country and every bank for the first time Not possible to add central signature 182% ROI Multiple banks/accounts at national level Possibility to roll-out Payment Factory based on SWIFT at Deutsche Telekom group level
T-Mobile: Financial result from using SWIFT

Cost structure
Joining (1%) Middlew are (16%) SWIFTNet Infrastructu re (7%) Traffic (6%) Project (25%) Servers + operations (46%)
Benefits composition
Break even analysis (at end of year)

5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0
Transaction processing efficiencies (49%)
Cash mgmt ops labor savings (16%)
Bank systems cost savings (35%)
Year Year Year Year Year Year 0 1 2 3 4 5 Costs Benefits
Costs include joining T-Mobile will generate EUR 4.5 MA-CUGs, SWIFTNet million in net benefits over 5 years infrastructure and traffic. from its investment in SWIFTNet Non-SWIFT costs Increased automation, control and include project standardisation allow T-Mobile to management, servers + re-allocate 2 FTE and retire 15 operations, middleware bank messaging systems in four for the international European subsidiaries finance portal Efficiencies from central operations lead to economies of scale and reduction in payment transactions
Payback in in 3 years Payback 2 years
54
Yves Rocher Group

Company profile Personal care 2 billion revenues, 40 million customers 8 brands, acting in 88 countries 15,000+ employees Treasury profile 106 banks, 550 accounts 50+ bank communication systems 800 market transactions per year Decentralized collections & payments. Centralized exchange risk, liquidity, cash pooling, netting. Challenges with previous infrastructure Strong presence with many local banks Many heterogeneous platforms and security mechanisms Build European communication platform
May 2007
SWIFT implementation Yves Rocher TMS

(KTP/ Reuters)
Bank EAI
(TRAX)
Service Bureau
(CMCIC)
Bank Bank
ERP
(SAP)
SWIFTNet FileAct All kind of payments (treasury, suppliers, payroll). Local formats (AFB320,VCOM...), waiting for XML Connectivity via Service Bureau; integration through financial EAI
Key benefits of using SWIFT Wide reach Tighter security Low operational overhead Transparency of Service Bureau solution
55
Agenda
56
Plan your project
Define scope
Financial services Banks Applications Formats and messaging Type of connection

Contact banks
Contact relationship manager or see swift.com Agree service modalities. Contract template available
Select software vendors

Contact SWIFT See SWIFT ready partners on swift.com
Pilot
Roll out
Per bank Kick-off meeting Setup and test live environment Go live
Join SWIFT Install software, connect to SWIFT Run test pilot
Typical timeframe (depends on size of corporate and type of project) 1 month, for a EUR 750 million turnover corporate, to do treasury management with 3 banks using Alliance Lite 1 year, for a EUR 25 billion turnover corporate, to integrate SWIFT in its Payment Factory project
About your project

Treasury profile Treasury organisation? # banks, # bank accounts? Back-office applications? Challenges with current infrastructure? # treasury payments/month? # commercial payments/month? SWIFT project Expected benefits? What would you use SWIFT for? Target live date? List of (primary) banks? # transactions to send over SWIFT? Formats: domestic, ISO, ...? Which applications would you use? How would you connect to SWIFT?
58
Defining your project scope

Which applications to connect to SWIFT? How to connect? What formats & messaging to use? Which banks to connect to?
FIN for payments (MT101), statements (MT940/2) and FX confirmations (MT3xx) Treasury Workstation
Payment factory/ middleware SWIFTNet connectivity
SWIFTNet
ERP(s) ERP(s) ERP
FileAct as file transfer to transport any format: domestic, ISO 20022, ACH, BAI,
59
Agenda
60
More info?
Your banks Other corporates on SWIFT SWIFT account director swift.com/corporates Corporate community on www.swiftcommunity.net Conferences
Industry events like Eurofinance, AFP, ACT SWIFT for corporates days Sibos Forum for Corporates
61

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SWIFT for corporates

Presentation title - Event - Date Month Year

Corporate Treasury drivers

Standardisation Rationalisation Automation Security

Presentation title - Event - Date Month Year

SWIFT: a single, standardised gateway

Single, standardised gateway

High cost No global visibility on cash Impossible to centralise

Presentation title - Event - Date Month Year

Benefits of using SWIFT - examples

Global visibility on cash

EUR 10 million in net benefit at Swiss Re

Cost reduction / avoidance

Presentation title - Event - Date Month Year

What corporates on SWIFT value most

have a standard and reliable process with all our banks

build one central source of truth for banking data

reach all our banks directly, with the highest security

Financial Crisis - Value for SWIFT and priority on treasury projects

Can I move my cash?

Can I reach all my banks?

Corporates on SWIFT Where do we stand today ?

402 282 181

Where do we stand: EMEA

Where do we stand: Americas

2009: 110 Mid caps

Actual adoption of ISO20022 (XML) for reporting & payment

Where do we stand: APAC

2007: 22 2009: 64 Large

Presentation title - Event - Date Month Year

A co-operative organisation serving the financial industry

A provider of highly secure financial messaging services

The financial standardisation body

Presentation title - Event - Date Month Year

The solution a collaborative partnership

Treasury Workstation Middleware ERP(s) ERP(s) ERP SWIFTNet

SWIFT or partners Business standards

SWIFT and standards bodies

Financial services, provided by banks

Presentation title - Event - Date Month Year

Standards and SWIFTNet messaging

Typical application Standards and formats SWIFTNet messaging

Cash Management ISO 20022 Domestic formats FileAct

Exceptions and Investigations ISO 20022 InterAct

Presentation title - Event - Date Month Year

Connectivity options, adapted to your needs

VPN Network partners

Service bureau or Member/Concentrator

Web server Work flow SWIFTAlliance SWIFT

Presentation title - Event - Date Month Year

Presentation title - Event - Date Month Year

Electronic Bank Account Management (EBAM) Project objectives

Low integration Low satisfaction

Electronic Bank Account Management (EBAM) Benefits

Electronic Bank Account Management on SWIFT SWIFT solution 3 layers

Messaging service - FileAct Personal Digital Signature Technical specifications

Header specifications (ACMT)

XML ISO messages

Personal Digital Signature Current Landscape The Corporate View

Solution for Personal Digital Signature

Convenience Corporate Reduced risk & costs

Lower costs Improved security