2. Agenda
1. Celio at a glance
2 Issues and objectives
2.
3. What did we accomplish
4. L
Lessons l
learned
d
PwC Conference Treasury Hot Topic 2
3. Celio at a Glance
A fast growing retail company
February 2011
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4. Celio is a fast-growing international clothing retailer
fast-
866
Quick facts 775
€1 bn 672
Annual turnover
Double digit g
g growth
572
> 1.000
# stores
Openings: 130/year
405
Staff Approx 3.500 365
321
270
Treasury staff 3 FTE 226
# bank 150 170
42
relationships 70
34
6
# b k accounts
bank t >750
750
■ Most of our owned stores are located in Western
Europe and India whereas clothes are mainly
purchased in Asia
■A
Approximately 200 affiliates are also present i
i t l ffili t l t in
Middle East, Asia and Africa
PwC Conference Treasury Hot Topic 4
5. Acquisition of Jennyfer in 2005
Acquisition
A i iti 2005
Annual turnover € 280 Mio
# stores 380
# bank relationships 20
# bank accounts > 250
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7. Main objective: centralized cash collection in Belgium
• Retail activities
Considerations • Family-owned group
• No external rating
• 42 bank relationships (of which 38 local)
Key issues • Disconnection Banks vs Celio presence/needs
• High banking costs & limited visibility
• LT financing of the g p
g group
Priorities • Efficiencies
• Mutually beneficial relationships
PwC Conference Treasury Hot Topic 7
8. Many stakeholders - shared objectives
CFO
Cash collection
Treasury companies
p
Group Treasurer
FO/MO/BO PwC
Treasury
T
accounting
Banks
Project coordinator
IT PMO Banking & Cash
Accounting IT- Interfaces Systems
IT-Hardware Organisation
i i
Legal
IT Documentation
AP/AR System vendor
Finance Di t
Fi Directors Security
S it
Authorisers Stores
Documentation Regulatory
Retail Service Bureau
Local country reps
PwC Conference Treasury Hot Topic 8
9. Main issues related to treasury activities
■ Bottle neck risk
New protocols not supported
■ Rejected payments after deadline
■ Few economies of scale
Decentralised BRM ■ Out of market bank fees
■ No priority status and no reciprocity
■ Staff inefficiencies
Decentralised treasury activities ■ Lack of visibility and poor cash forecasting
■ Multiple Treasury systems
■ Simultaneous borrowing and lending
No automated cash concentration
■ Loss of value days
■ I ffi i t control on outgoing flows
Inefficient t l t i fl
Multiple payment processes / systems ■ Heavy approval procedures
■ High dependency towards banks
No formal treasury policy / processes ■ Heterogeneous treasury risk management
Few treasury / risk management ■ Wide use of Excel; poor information
tools ■ Few support to treasury activity growth
PwC Conference Treasury Hot Topic 9
10. Many blocking factors
Commercial Accounting
A ti
system Reconciliation entries TMS TMS Com
1000+ entity 1 tool 1 ERP1 Generator 1 1 2 1
40+ banks
stores
Commercial TMS Com
Reconciliation Accounting
A ti
system ERP2 ERP3 3 …
tool 2 Entries
entity 2
Generator 2
Stores network
Accounting Treasury
Security
IT
People impact
P l i t
PwC Conference Treasury Hot Topic 10
11. What did we accomplish
Sweat sweat sweat…
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12. 3 phases covering 3 streams
Strategy & organisational design
g
Bank & CM restructuring
Treasury and CM systems
Implement
1. Construct organisation
2. Bank(s)
Select 3. System(s)
1. Organisational and functional requirements
2. Banking selection
3. System selection
Analyse and Design
1. Policies and Procedures
2. Banking design
3. System Design
PwC Conference Treasury Hot Topic 12
13. Treasury system architecture
Local ERPs
Payment FIN
Factory tool processing
MT 94x SWIFT
MT 94x
MT 10x
Reconciliation MT 94x
Converter
Tool T
TMS FileAct
processing
Treasury ERP
Service
Local entities TMS SWIFT Banks
Bureau
PwC Conference Treasury Hot Topic 13
17. Analysis
Selection Implementation
Design
Issues (1/3)
No
innovative
solutions
Analysis Finance
No budget & design support at
danger
issues
Garbage
out -
garbage in
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18. Analysis
Selection Implementation
Design
Issues (2/3)
Difficult to
compare
Selectio
n issues
Difficult Hard price
landing negotiation
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19. Analysis
Selection Implementation
Design
Issues (3/3)
Cross
C
complexity
Expectation No priority
not met status
Implementation
Issues
Don’t Availability
sweat the of
small stuff resources
Migration
of new
bank
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20. We would be delighted to hear and answer your
questions!
February 2011
PwC 20
