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SWIFT for corporates

Creating confidence, certainty and efficiency

SWIFT for corporates

Contents
02 03 Today's financial landscape Corporate treasurers are faced with a growing number of challenges 36 Contact us

Welcome

08 09 Case studies Hear it from your peers Bank case studies

How it works in practice

06 Enabling new bank services Banks extending the value for their corporate customers 07 Integrating SWIFT in your back-office Partners providing SWIFT-enabled solutions

04 05 Benefits for corporates Providing a single, secure, standardised, global messaging and communications infrastructure

The value of SWIFT

16 17 UniCredit Corporate case studies 20 21 DuPont 18 19 Arcelor

14 15 HSBC

12 13 BNP Paribas

10 11 Barclays Commercial

24 25 Iberia

22 23 GE

34 35 T-Mobile

32 33 Swiss Re

30 31 Petronas

28 29 Novartis

26 27 Microsoft

SWIFT for corporates

Today's financial landscape

Corporate treasurers are faced with a growing number of challenges

In todays financial landscape, corporate treasurers are faced with a growing number of challenges including: increased pressure on cost and working capital, need for tighter control, globalisation, more stringent compliance and acquisitions.To help corporates navigate through this operational dilemma, optimise global visibility and control cash flows and better manage risk, SWIFT, together with the financial community, provides a solution.
Benefits
Lower costs Higher straight-through processing Better funds visibility Easier compliance

SWIFT allows corporates to exchange financial information (payments, treasury and securities orders, reporting) with all their financial institutions through one single, highly secure, standardised communication platform, as opposed to using multiple connections. SWIFTs internationally-recognised standards are helping corporates to reduce costs and risk, increase funds visibility and efficiency through improved automation, leading to easier regulatory compliance. By joining SWIFT, corporates can enjoy optimal access to over 8,200 financial institutions, in 208 countries. Today, more than 350 corporations are connected to SWIFT and the number is increasing rapidly. These companies are seeing tangible return on investment and are bringing greater efficiency to their treasury operations. Business cases developed by companies such as Dupont, Iberia, Novartis, Petronas and T-Mobile have all highlighted Return on Investment (ROI) in the range of 120 to 400%. What is significant is the wide scope and type of these corporates: they come in all shapes and sizes from mid-sized companies with simple cash management structures dealing with a few banks locally, to large corporations deploying sophisticated payments and collections factories. There is a strong regional mix of companies that have made the decision to connect to SWIFT, including the recent introduction of Chinese and Latin American corporations, across a range of industries including chemicals, technology, transportation and retail. Recent additions include large multinationals such as Air France, Chevron, Ebay, Google, Nokia, Samsung, Siemens, Tesco, UPS and also increasingly midsized corporates such as Alten, Autostrade, Belcorp or Decathlon.

To encourage more corporations to connect to their banks through SWIFT and meet the needs of existing users, SWIFT is working with its community to evolve the corporate offering. Four main areas are high on the agenda: 1. Enabling new bank services For cash management, corporates can use SWIFTs file-based messaging service FileAct for ACH transactions, direct debits, and salary payments, internationally and domestically. Beyond treasury, cash management and securities messages already in use, additional services will be available by end 2008 in the areas of trade finance and exceptions & investigations. New standards for Bank Account Management will be available as of early 2009: they will cover account opening, mandate management and account closing. Finally, SWIFT is working with an expert group to address additional standardisation requirements for personal digital signatures. 2. Simple connectivity options for smaller corporates Corporates looking for a straightforward and hassle-free way of connecting to SWIFT have a number of options, including using a service bureau. At the end of 2008, SWIFT will launch Alliance Lite, to provide further choice. Alliance Lite allows both manual and automated operations and is cost effective and easy to use - allowing corporates to connect to SWIFT from anywhere using a standard Internet browser.

SWIFT for corporates

3. More standardisation Corporates that join SWIFT enjoy increased standardisation. A rulebook is available for the ISO 20022 payment standards: these standards can be used to complement the FIN and domestic/proprietary formats. A standardised bank contract template is also available, to simplify corporates onboarding of their additional banks. 4. Back-office integration with vendors applications In support of Enterprise Resource Planning (ERP), treasury workstation and payment factory applications vendors, SWIFT has launched a label programme to certify vendor applications in cash management and treasury management. To date, four vendors are labelled. Examples include SAP, which is now live with its SWIFT solution in Europe and in the US, Reuters, SunGard, Wall Street Systems and XRT.

Building momentum SWIFT will continue to partner with local treasury associations and publications and exhibit at major industry events around the world including Association for Financial Professionals (AFP), EuroFinance, Treasury Management International (TMI), Treasury Today, Treasury Strategies, Universwiftnet and many others. Help from banks, vendors and consultants with more dedicated SWIFT for corporates days will continue to be valuable outlets to help customers understand the value proposition of SWIFT and share best practice with peers.

The enthusiasm from corporates, financial institutions and vendors tells us we are delivering on our promise. With adoption figures on the rise and a financial community eager to help corporate treasurers navigate through this challenging financial environment, SWIFT for corporates offers a compelling business case for corporate treasurers.

From Shanghai to Sa Paulo, SWIFT offers a compelling business case for corporates

SWIFT for corporates

Benefits for corporates

Providing a single, secure, standardised, global messaging and communications infrastructure


SWIFT: a highly secure and reliable global financial messaging infrastructure spanning more than 200 countries. A single, shared IP-based messaging platform: SWIFTNet. Industry recognised standards to improve automation and advance liquidity management. Guaranteed delivery. Third-party nonrepudiation. The highest levels of encryption and authentication technology available. 24/7/365 customer support.
Benefits
Reduce costs and risk Improve auditing processes, ensuring easier compliance Increase straight-through processing (STP) Optimise cash and liquidity management Streamline operations Focus on continuity and security Global reach

Cash and liquidity management Transaction information and cash ositions can be shared between corporates and banks, over a single platform, leveraging global financial industry standards. This results in higher straight-through processing into corporate cash management applications and streamlines bank to corporate communication. Intraday movements can be reflected in real time, enabling corporates to manage liquidity more efficiently. To facilitate centralised processing and transmission of commercial payments, SWIFT also offers a highly secure and performant file transfer service. This allows corporates to centralise all commercial payments and collection activities - both domestic and cross-border - in a single payments factory. The file transfer service supports all data formats and character sets.

Financial risk management Confirmations of foreign exchange spot, forward and swap deals, foreign exchange options, money market, forward rate agreements and currency interest rate swaps are all instruments catered for by SWIFT messages. SWIFTs centralised confirmation matching service, Accord, enables realtime handling of exceptions to further reduce operational risk. SWIFT supports the automation of the entire trade cycle from confirmation of the deal to settlement, thus reducing operational risk.

SWIFT for corporates

Resilience and availability Resilience and a high level of availability are key characteristics of the SWIFT messaging infrastructure. This is achieved through: the use of four independent network service providers to access SWIFTNet messaging services; and multiple operating centres located on different continents

SWIFTs multi-layered approach to security ensures that: individual transactions are protected against manipulation and fraud the integrity and confidentiality of all traffic between the user and SWIFT are guaranteed only registered SWIFT users gain access to the network

Easier compliance Operating a single communication platform, as opposed to multiple and diverse electronic banking systems, greatly simplifies auditing processes and therefore leads to easier compliance.

Security Once connected to SWIFT, corporates will be able to use a single security setup with all financial service providers. Rationalising security mechanisms leads to tighter security management and control. SWIFT uses the highest levels of encryption and authentication technology available.

Business continuity In the SWIFT environment, registered users do not need to be aware of each others physical location or technical configuration. There is no dependence on another partys setup. In the event of a switchover from a prime to a backup site, the change will be transparent to users and can be achieved in a matter of minutes.

Corporate client
Treasury

PKI

VAN

Corporate client
Treasury

Host-to-host X

Accounts payable Accounts receivable

Leased line e-banking Y

Accounts payable

SWIFTNet
Accounts receivable Gateway to SWIFTNet

Internet
Other e-banking Z Other

PSTN
Fax-banking

From multiple standards and protocols to...

...a single, secure, standardised global platform

SWIFT for corporates

Enabling new bank services

Banks extending the value for their corporate customers

SWIFT is committed to helping banks and corporates further streamline corporate-tobank communication. Using a single standard in a harmonised way to initiate payments and track payment status helps corporates and banks optimise financial processes. Standards are also the basis for providing additional services beyond treasury, cash management and securities.
A number of initiatives are underway to make this goal a reality: Adoption of ISO 20022 as a single standard for payments helps corporates and banks improve automation of their payment and reconciliation processes. The SWIFT for corporates ISO 20022 Rulebook for Payment Initiation (Customer Credit Transfer Initiation and Payment Status Report) is now available and contains a set of best practices and recommendations on technical, operational and business rules and guidelines, valid for any payment type. Schemas, samples and documentation for ISO 20022 messages can be downloaded from www.iso20022.org. Exceptions and Investigations SWIFTs solution to automate and track the lifecycle of an investigation for a payment (beneficiary claims non-receipt, for example) and to reduce the resolution time with end-to-end standards and messaging. This responds to the need for faster payment reconciliation and for increased control payables and receivables. Trade finance standardised messaging enabling you to exchange trade data such as Letters of Credits with your banks in electronic format. Meets the requirements for a single channel and communication standard when several banks are used for trade finance. Bank account management coming soon - to dematerialise the exchange of information related to the management (such as opening, maintaining and closing) of bank accounts, leading to faster availability, reduction of operational risk and easier compliance. We encourage your active participation to help develop and adopt these services.

SWIFT for corporates

Integrating SWIFT in your back-office


Partners providing SWIFT-enabled solutions

Collaboration is important to ensure straight-through processing in corporate financial applications particularly Treasury Management Systems (TMS) and Enterprise Resource Planning (ERP) that need to be seamlessly integrated with the SWIFT infrastructure.

This helps you ensure these applications: communicate with your SWIFT interface; generate outgoing data in the appropriate format (standards for all data that need to be transferred over the FIN messaging service); and processes incoming data. SWIFT interfaces come with a number of host adapters that allow data exchange with third-party applications. SWIFTs Partner Management team works with partners that develop complementary products, connectivity and services to ensure they are SWIFT-enabled. SWIFT has developed strategic joint value propositions with global partners such as Accenture and SAP. There is also a dedicated label programme certifying partner applications in cash management and treasury management. Accredited vendors include Reuters, SunGard, Wall Street Systems and XRT.

SWIFT for corporates

Case studies

Hear it from your peers

A number of corporates and banks have detailed their experience with SWIFT in a series of compelling business cases.
Bank case studies Barclays Commercial, HSBC and UniCredit. These cases highlight the benefits these banks see for their customers, the steps they took to integrate SWIFT in their offering and why SWIFT as a client channel makes sense: 1. Ability to respond to corporates demand Many RFPs from large corporates now include a reference to SWIFT, as a requirement for multi-bank connectivity. 2. Focus on value-added services Instead of investing time/resources in the development of proprietary connectivity interfaces, banks can focus on selling value-added services. 3. Opportunity to capture additional flows/clients By pro-actively promoting SWIFT, banks have captured new clients or additional flows. 4. Positions the bank as innovator By providing treasury and cash management services over SWIFT, banks are perceived as drivers of innovation by corporates.

Corporate case studies Arcelor, DuPont, GE, Iberia, Microsoft, Novartis, Petronas, Swiss Re and T-Mobile. These cases tell the story from their perspective. Whilst in different industry segments and using SWIFT for different purposes, they have a common thread: a solid return on investment. Your treasury operations can enjoy these benefits too: 1. STP and lower costs SWIFT allows for channel rationalisation, a single channel versus a multitude of different channels. The more banking relationships, the higher the savings. Additionally, standards used over SWIFT allow increased straight-through-processing (STP) (content rationalisation) and therefore staff productivity gains, for example by eliminating the need to re-key payments. 2. Control / security / reliability Ability to control payment initiations and increased security, while more difficult to quantify, are also recognised as key benefits. In some cases, our 99.999% network availability is important as some corporates suffer from regular break-downs of their e-banking systems. 3. Funds visibility The ability to receive end-of-day or intra-day reporting directly from all your banks increases funds visibility and give you the ability to invest better. 4. Compliance For corporates under stringent regulation, such as Sarbannes Oxley, using one single interface significantly reduces the administration work required to document - and keep up-to-date banking communication processes.

SWIFT for corporates

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Produced by: SWIFT Focus: Barclays Commercial

Bank case study

Case study

Barclays Commercial

Barclays uses SWIFT to differentiate its corporate-to-bank services through common standards
Barclays is a financial services organisation which moves, lends, Barclays has a clear strategy regarding SWIFT. We use it as a channel to provide corporate clients with the leading-edge invests and protects money for services they require. more than 27 million customers Richard Martin, Head of Payments and Cash Management, Barclays Commercial and clients in more than 50 countries. Its mission is to provide products and services that help customers reach their financial Barclays was one of the first banks in the processing, provided corporates with goals, that drive economic growth, world - and the first in the UK - to offer additional controls to improve compliance and that sustain healthy financial and actively promote connectivity through and delivered greater visibility over bank systems. Barclays has over SWIFT to its corporate customers. accounts held across the globe. 127,000 employees. For Barclays, SWIFT was an addition to

Benefits for Barclays


Respond to corporate clients needs Complete channel product range Focus on value added services provided over a standardised channel Cross sell, gain additional business

Drivers SWIFT provides the common standards that enable its corporates clients to improve interoperability between their back office systems and Barclays. This has improved straight-through

their host-to-host solution, providing a new channel with high security and straight-through processing.

Thanks to SWIFT, Barclays has been able to cross sell and gain additional business from its corporate customers.

Corporate client
Accounts Receivable

Barclays
Cash Management Treasury Liquidity Management Trade

Banks

Benefits for Barclays clients


Improve interoperability Improve straight-through processing Additional controls to improve compliance Obtain greater visibility over accounts

Accounts Payable

Treasury

Common services like sales & servicing, management information, billing and risk/asset monitoring

Common services like sales & servicing, management information, billing and risk/asset monitoring

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Typical bank readiness path


1- Exploring the opportunity 2- Defining the offering 3- Enabling the organisation 4- Preparing Marketing and Sales 5- Active promotion

Barclays/SWIFT proposition Using SWIFT, Barclays can offer the following benefits to corporate clients: Treasury process efficiency Corporates can automate the link between Enterprise Resource Planning (ERP) systems and Treasury Management Systems (TMS) and Barclays using a common format. Global account visibility Corporates with operations across the globe and accounts with numerous banks across several countries can use SWIFT to receive MT 940 / MT 942 messages from all their banks to gain a group-wide view on a daily basis. Bulk payment processing Corporates with high volumes of payments, handled by a payments factory or shared service centre can achieve maximum straight-throughprocessing and later cut-off times by delivering payments either via individual FIN messages or within a bulk file via FileAct. Getting ready 1. Exploring the opportunity Barclays considered SWIFT for corporate clients in 2002. SWIFT was positioned along existing host-to-host channels, to provide corporates a choice of connectivity and functionality based on their objectives. 2. Defining the offering Barclays defined the services available via SWIFT based on the needs of its corporate clients. It sought to maximise the benefit its clients would derive from their connection by framing it as a two-way communication channel, not just a payment service.

3. Enabling the organisation As a major provider of cash management services, Barclays already supported the full range of payment initiation and reporting messages, and it took only a short time to enhance those platforms for automated flows with corporates. A robust on-boarding process was developed. Corporate implementations are managed by a specialist team, to include end-toend testing prior to going live. Contractual documentation is based on a common bank template. 4. Preparing Marketing and Sales Barclays created specific collateral on its SWIFT for corporates offering. Product and technical champions are appointed within Barclays. Over 50 customer facing staff are conversant on SWIFT for corporates, supported by a team of specialists to manage technical queries. 5. Active promotion Barclays first SWIFT corporate client went live in 2002. Whilst SWIFT was initially considered to be for corporate clients with high volume of payments, Barclays now promotes SWIFT to all industry and service sectors. SWIFT based solutions are featured at industry conferences as well as at seminars organised by Barclays. Barclays regularly contributes articles on the benefits of SWIFT for corporates in industry and treasury publications. Barclays will participate in the Sibos 2008 Forum for Corporates.

Next generation capabilities Barclays plans to extend its SWIFT for corporates offering with the following capabilities: Extend current FileAct capabilities to both send and receive bulk files Development of ISO 20022 XML based solutions Exception and investigations services.

Conclusion Innovative banks like Barclays see SWIFT as an opportunity to distinguish their products and services by added value rather than proprietary channels. For Barclays, SWIFT for corporates is growing as corporates look for quality and a range of services delivered over a standardised channel. SWIFT is an enabler to gain additional business. Solution overview SWIFT for corporates FIN and FileAct SCORE and MA-CUG About SWIFT SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect over 8,300 banking organisations, securities institutions and corporate customers in more than 208 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest. www.swift.com For more information please contact your SWIFT account manager or visit www.swift.com

SWIFT 2008

For information about Barclays trade and cash solutions, please email Barclays directly at: tradeandcashsolutions@barclays.com

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SWIFT for corporates

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Produced by: SWIFT Focus: BNP Paribas

Corporate case study

Case study

BNP Paribas

BNP Paribas supports its corporate clients with a global SWIFT offering across business lines
BNP Paribas is one of the European leaders in global banking and financial services and is one of the 4 strongest banks in the world according to Standard & Poors. The group is present in more than 85 countries and has more than 168,000 employees.

SWIFT is a key component in our client channel strategy, providing an innovative and quality offering for large corporates as well as mid-cap customers.
Pierre Fersztand, Global Head of Cash Management, BNP Paribas

Benefits for BNP Paribas


Support customers in centralisation projects with tailored solutions Promote global offering to better serve local needs Win new customers; cross sell among business lines Simplify customer to bank communication via standardized connectivity and formats

BNP Paribas provides a complete SWIFTbased offering, across multiple business lines to both large corporates and mid-caps. Drivers BNP Paribas SWIFT offering brings key benefits to its corporate clients: Strong expertise in Payment Factories; SEPA experience with live clients and significant volumes Innovative solution, covering multiple business lines Complete, packaged and managed Taolink service bureau and member/concentrator solution International coverage through single entry point Easier access to BNP Paribas value-added services.

The benefits BNP Paribas sees in providing SWIFT to corporates are: Support customers in centralisation projects with adequate solutions Promote global offering, to better serve clients local needs Win new customers, and cross sell among the BNP Paribas group Simplify customer to bank communication via standardized connectivity and formats. BNP Paribas SWIFT solution Single entry point, for all branches Services available through FIN or FileAct, via SCORE or MA-CUG Large choice of formats (CFONB, AEB, CBI, idoc, ISO 20022, MTxxx, EDIFACT, ...)

SWIFT for corporates

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1. Exploring the opportunity


Typical bank readiness path

2. Dening the offering

3. Enabling the organisation

4. Preparing Marketing and Sales

5. Active promotion

Getting ready 1 Exploring the opportunity BNP Paribas considered SWIFT for corporates in 2001. It was one of the first banks to open an MA-CUG, as it saw this would drastically change worldwide bank communication. 2 Defining the offering BNP Paribas built its SWIFT offering in partnership with large corporate clients, using its know-how in international cash management solutions. In 2006, BNP Paribas was one of the first banks to open a service bureau-based access called Taolink, now enriched by the Member/Concentrator model. 3 Enabling the organisation BNP Paribas uses a central platform and organisation, which enables its clients to negotiate the agreement and prices at group level. Priority was given to Europe where most of BNP Paribas clients payment factory projects are. For emerging markets, branches are involved according to demand. BNP Paribas ISO-certified implementation team follows its clients throughout their project. When live, customers are followed by a dedicated support team. 4 Preparing marketing and sales Commercialisation in each country is supported by cash management experts trained in SWIFTs offering, supported by local SWIFT staff. BNP Paribas produced extensive marketing collateral and case studies with its clients. 5 Active promotion BNP Paribas actively promotes its offering via global and local events.

In 2007, BNP Paribas organized its first Cash Management University where SWIFT was a key subject. They also invited corporates to many SWIFT events in Italy and the UK. BNP Paribas was a partner and speaker at the Sibos 2008 Forum for Corporates. They also organise information sessions dedicated to mid-caps in towns across France. Next generation capabilities BNP Paribas has always been committed to SWIFTs initiatives and actively participates in key projects to maintain its leadership in innovation: In 2007, BNP Paribas actively participated in the ISO 20022 Credit Transfer guidelines and, having live customers, will continue in 2008 by working on the reporting pilot BNP Paribas participates in the design of the bank account management standardization. BNP Paribas will further reinforce its packaged offering to address the European mid cap market with an all inclusive and efficient offering. Conclusion BNP Paribas has a complete SWIFT offering for corporates, and combined with its deep know-how in international cash management, supports large and mid caps customers in a smooth migration. They see the further democratisation of SWIFT and innovation of cash management as well as Forex, Trade and Securities services built on SWIFT as key to continue to meet corporate customers needs.

Solution overview SWIFT for corporates FIN and FileAct messaging services SCORE and MA-CUG Member/Concentrator Service Bureau About SWIFT SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect over 8,300 banking organisations, securities institutions and corporate customers in more than 208 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest. www.swift.com Contact us For more information about BNP Paribas SWIFT offering, please visit: www.bnpparibas.com Or contact: anne.dugied@bnpparibas.com For more information on SWIFT please contact your SWIFT account manager or visit www.swift.com

SWIFT 2008

SWIFT for corporates

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Produced by: SWIFT Focus: HSBC

Bank case study

Case study

HSBC deploys SWIFT for corporates


HSBC deploys SWIFT for corporates across the bank globally, via a structured commercialisation programme

HSBC is one of the worlds SWIFT is a key building block for HSBC as a global largest banking and financial services organisations. Its network transaction bank, bringing clear benefits for customers and for the bank. comprises around 10,000 offices in 83 countries and territories in Andrew Long, Head of Global Transaction Banking, HSBC Europe, Asia-Pacific, the Americas, Middle-East and Africa. HSBC is continually HSBC believes channel infrastructure HSBC sees significant value in SWIFT as investing in cash management does not need to be proprietary, and an industry standard connectivity that banks can differentiate by creating infrastructure for the corporate world and solutions and services to help value added services that use industrydeploys it as an integral part of its client enhance corporates working standard channels like SWIFT. capital management and meet the connectivity strategy. The benefits HSBC sees in SWIFT evolving needs of its corporate are: Drivers clients. Opportunity to promote global SWIFT improves HSBC's corporate-

Benefits for HSBC

Promote global banking via HSBCs local footprint Maintain banks lead in innovation Attract new business and volumes Reduce costs by using industry standards and solutions.

tobank communication by providing HSBC corporate clients with a single multi-bank gateway through which they benefit from the same set of protocols and the same level of security for different areas of treasury and cash management. HSBCs SWIFT for corporates offering brings key benefits to clients: Supports international standards as well as domestic formats Standardised multi-bank connectivity Local entry point to global offering, consistent across HSBC group In-depth SWIFT knowledge within HSBCs sales and support teams Assurance of an evolving service through HSBCs continued investment.

banking via HSBCs local footprint Maintain the banks lead in innovation Attract new business and volumes Reduce costs by using industry standards and solutions rather than proprietary developments.

HSBC SWIFT proposition SWIFT is part of HSBCs client access channels, connecting clients to HSBCs global footprint and depth of capability as a top tier global cash management bank. HSBC uses SWIFT's Standardised CORporate Environment (SCORE) to connect its corporate customers and maintains a SCORE-compliant MemberAdministered Closed User Group (MA-CUG).

SWIFT for corporates

15

Corporate customers can exchange treasury confirmations, payments, collections and statement data with HSBC globally using SWIFT's FIN and FileAct messaging services. Getting ready 1. Exploring the opportunity HSBC considered SWIFT for corporates in 2003, when French corporates started to adopt it. The rapid take up of SWIFT across Europe convinced HSBC to embrace it as part of its global client access strategy. 2. Defining the offering SWIFT is positioned as a standardised multi-bank channel alongside HSBCnet (online banking/file upload) and HSBC Connect (host-to-host file transfer). Relying on extensive existing capabilities in treasury & cash management services HSBC designed its SWIFT offering to be global while retaining domestic links. 3. Enabling the organisation HSBC follows a standard product lifecycle methodology to achieve a harmonised development and deployment of offerings across all locations. HSBC enhanced its back office systems to accommodate SCORE FIN messages and associated volumes. Developed centrally, this functionality is then deployed as a patch in regional application centres. The roll-out process involved awareness sessions, training of implementation and support teams, development of internal guidelines, collaterals and legal contracts. After Europe, North America, the Middle East and Asia, HSBC is now rolling out SWIFT for corporates in Latin America. 4. Preparing Marketing and Sales Regional commercialisation work is supported by global product champions. An intranet site is set up for internal communication. For external collateral, a guide describing SWIFT's value proposition, HSBC's offering and case studies, launched in Asia as an addendum to HSBC Cash & Treasury manager's handbook will be expanded globally.

CORPORATE client

HSBCs client access offerings, connecting to its worldwide financial services network
HSBCnet Online banking and file upload

HSBC CONNECT Host-to-host file transfer

SWIFT Standardised multi-bank channel

Other banks

5. Active promotion HSBC actively promotes its SWIFT offering for corporates. In June 2007 HSBC hosted the first SWIFT for Corporates day in London. In 2008 various SWIFT for Corporates events are scheduled in Asia, Middle East and the USA. The Sibos Corporate Forum is also a valuable event for HSBC to showcase its offering. HSBC works closely with SWIFT on a joint Go to Market programme, and sales teams in various countries hold client visits with SWIFT staff. Next generation capabilities As a leader in innovation, HSBC has been focusing in a number of initiatives related to SWIFT for corporates: A new lite connectivity option SWIFT digital identity initiative Development of new standards to dematerialise the management of bank account mandate and account opening ISO 20022 and roll-out of a worldwide XML capability for corporates.

For HSBC, SWIFT has the potential to connect this mid market using an easy and standardised channel allowing them to expand the commercialisation of their services to a wider set of customers.

Solution overview SWIFT for corporates FIN and FileAct SCORE and MA-CUG About SWIFT SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect over 8,300 banking organisations, securities institutions and corporate customers in more than 208 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest. www.swift.com For more information please contact your SWIFT account manager or visit www.swift.com

Conclusion HSBC has a rich SWIFT offering for corporates, fully integrated into its product lifecycle, client channels and worldwide bank organisation. Now, HSBC sees more and more interest from corporates with less than EUR one billion turnover per annum. For them, SWIFT can be a real enabler.

SWIFT for corporates

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Produced by: SWIFT Focus: UniCredit

Bank case study

Case study

UniCredit

UniCredits SWIFT offering speeds up corporates processes by providing access to banks across the globe
UniCredit Group as provider of UniCredit fully supports SWIFT for its corporate customers, financial services is number 2 enabling them to connect to any of their banking partners via in Europe in terms of market one single access. A corporate treasurer's dream come true. capitalisation. The division Markus Straufeld, Managing Director, Cash Management & eBanking Sales, UniCredit Global Transaction Banking is among the top 3 in European transaction banking and offers Streamlines centralised payments, proximity in Germany, Italy and Drivers account info, FX confirmations in UniCredit sees clear benefits in providing Austria and an extensive standard or local format SWIFT to corporate clients as it: international network to Large Allows savings in resources, Provides a common infrastructure for Corporates, Mid Corporates and controlling, administrative processes different banks around the world SMEs. and documentation, etc.

Benefits for UniCredit


Provides standardised connectivity solution with global reach without having to develop it Attracts new business from corporates looking for a single connection to reach all their banks

Meets the highest security and availability standards

Provides independence from proprietary country standards and single-bank electronic banking products Simplifies implementation and auditing of statutory payment regulations with global impact (e.g. Sarbanes-Oxley)

New possibilities in Trade Services & Finance. For UniCredit, SWIFT provides a standardised connectivity solution that is global without the need to develop or deploy it on their own. This allows UniCredit to attract new business and payment volumes from corporates looking for such solution.

UniCredit is a strong supporter of SWIFT for Corporates and actively promotes a complete offering via its EuropeanGate.

Corporate clients Regional bank protocol Local connection Single access point

Network of the

HypoVereinsbank UniCredit Corporate Banking Bank Austria

EuropeanGate - Authorization - Validation - Conversion - Routing

Other banks

SWIFT for corporates

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1- Exploring the opportunity

2- Defining the offering

3- Enabling the organisation

4- Preparing Marketing and Sales

5- Active promotion

Typical bank readiness path

UniCredits SWIFT proposition UniCredit offers payments and cash management via FIN (e.g. MT101, MT940/2, MT192/5/9, MTx99) and FX/MM confirmations (MT300/320). UniCredit also offers payments and cash management via FileAct, using a single access point for the entire group via its EuropeanGate. This allows transmission of payments in a multitude of formats (national formats, UN Edifact, MT101) and account information (MT940). UniCredit offers MA-CUG services and is registered in SCORE. Getting ready 1. Exploring the opportunity UniCredit considered SWIFT for corporates back in 2001. When its first corporate customer was looking for direct SWIFT connectivity, UniCredit saw the potential of using a single global gateway to connect to international customers across various financial application services. 2. Defining the offering From the beginning, UniCredit defined a complete offering to merge the physical and financial supply chain. While large corporations were early adopters, it is the international approach of the corporate customer that was the key driver, not its size. Supporting SWIFT allowed UniCredit to deliver its services to any customer on a global level, and as requests came from all around the world, UniCredit knew it was on the right track. 3. Enabling the organisation UniCredit set up its MA-CUG in 2005 and registered in SCORE when it was launched in January 2007. UniCredit offers domestic and international payments and cash management as well as FX services.
55634

Using its flexible EuropeanGate, UniCredit can provide corporate access in any UniCredit Group location. A project team was put in place to support customers from the beginning. 4. Preparing Marketing and Sales Dedicated specialists in each country are part of the evaluation process when customers plan to get connected. Sessions with product management and SWIFT ensure quality training of UniCredits sales force. 5. Active promotion In 2005, UniCredit went live with its first customer. UniCredit identified several types of target customers: international mass payment processors, customers doing FX business globally, global customers asking for account information and payment gateways. SWIFT is topical for UniCredit at events such as EuroFinance and they organise workshops to explain the SWIFT value proposition to corporate customers. In 2008, UniCredit joinded the Sibos Forum for Corporates to promote its SWIFT offering for corporates. Next generation capabilities UniCredit will continue to enhance its SWIFT and Electronic Banking offering to combine the advantage of both worlds. This will make the "step in" easier and more attractive for smaller and nonmultinational corporate customers. UniCredit is working on developments in investment services, exceptions and investigations, digital identities, electronic bank account management and ISO 20022 XML standards. To expand its offering in Trade Finance & Services, UniCredit became a SWIFT TSU member.

Conclusion SWIFT for corporates meets the need of an innovative, future-oriented service for corporate customers, particularly for those who need standardisation in domestic and foreign business, central global transaction handling and rapid, secure, reliable performance. Supporting SWIFT as a global gateway for corporate customers allows UniCredit to win additional business. Solution overview SWIFT for corporates FIN and FileAct SCORE and MA-CUG About SWIFT SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect over 8,300 banking organisations, securities institutions and corporate customers in more than 208 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest. www.swift.com For more information please contact your SWIFT account manager or visit www.swift.com

SWIFT 2009

SWIFT for corporates

18

Produced by: ThoughtwareWorldwide Focus: Arcelor

Corporate case study

Arcelor S.A.

Arcelor Treasury standardizes on SWIFTNet as a single gateway realizes 605% ROI


Executive Summary
Arcelor was formed, in 2002, by the combination of steel giants Aceralia (Spain) ARBED (Luxembourg), and Usinor (France). Arcelor produces flat carbon steel (coated steel sheet, cold coils and hot coils), long carbon steel (beams, concrete reinforcement bars, merchant steel, sheet piling, and rails for public transport), and stainless steel for the appliance, automotive, construction, and packaging industries. Arcelor manufactures about 47 million metric tons of crude steel per year. It employs 95.000 associates in over 60 countries and is a leading player in the global steel industry.

19, avenue de la Libert L-2930 Luxembourg Phone: +352 4792-1 Fax: +352 4792 2675 www.arcelor.com CAC-40: LOR

Chairman of the Board & Chief Executive Officer


Mr. Guy Doll

Revenues
30 Billion

Employees: 95.000

605% ROI in 5 years 117% IRR in 5 years 5.993 Million NPV in 5 Years 220,000 Initial Investment 8.1 Million projected Net Savings over 5 years

ROI Study Highlights

Improved Security Increased Reliability Enhanced Straight Through Processing (STP)

Strategic Benefits

Arcelor Treasury

Study Scope

To overcome these challenges, Arcelor Treasury made the insightful decision to work with the Society for Worldwide Interbank Financial Telecommunication (S.W.I.F.T.) to create a solution that would deliver a simple, secure and reliable communications platform to transmit financial messages to all of its cooperating banks around the globe.

In 2002, Arcelor Corporate Treasury recognized a fundamental need to streamline its infrastructure to achieve greater visibility into cash receipts. The Arcelor Treasury was spending significant time in maintaining multiple systems and connection points (ETEBAC 3,5, ISABEL, proprietary bank system, fax, telephone, Internet) each with totally different characteristics (i.e., processes, data quality, availability, timeliness, security level). Additionally, Arcelor was spending an inordinate amount of time and money on maintaining Security protocols for the various connections, which were not consistent and required a growing level of resource commitment. Moreover, any expansion process proved to be tedious. New links with banks were difficult to implement, both in terms of time and cost. Finally, Arcelor Treasury had a Disaster Recovery (DR) plan per geographic location. Testing and maintaining each locations DR plan was both costly and time consuming. It was impossible to plan for the infinite combinations of bank availability.

Cash Aggregation & reporting Deal settlement % confirmation Intraday balances Accounts statements collection

FileAct

Straight Through Processing

Automated integration of account statements Automated generation of group payments Integration to ERP applications

With SWIFT, Arcelor Treasury is experiencing increased reliability, improved security and enhanced Straight Through Processing (STP) all translating into an impressive financial Return On Investment (ROI) of 605% over five years.

By migrating to SWIFTNet, Arcelor Treasury increased the automation of its business, including the flow and sharing of information across the enterprise on a global basis. Subsequently, Arcelor Treasury has managed to reduce risks related to manual activities and position itself to handle any growth in future payments or receipts volume.

SWIFT for corporates

19

Financial Impact

Total Investm ent Cost Structure Connectivity SWIFTNet 14% 10%

Total Benefits Com position


Transactio n Co st Savings 1 4% Wo rking Capital Optimizatio n 4% Other B enefits 4% Staff Reductio n 25% Hardware Retirement 25%
Y ear 0

Break Even Analysis

Hardw are 2%

Consulting/ Internal Labor 74%

Headco unt A vo idance 27%

Y ear 1

Y ear 2

Y ear 3

Y ear 4

Y ear 5

Cost s

Benef it s

Operational Impact

Labor and Consulting costs are driven by 3 factors (Legal Contracts Review, Payment Factory Development, and SWIFT Implementation and Testing); 52% Internal and 48% Consulting Connectivity cost cover the linkage to the SWIFT Network and the underlying maintenance SWIFTNet costs encompass the usage fees, including gateway services and network maintenance

Arcelor will retire 40 bank messaging systems with an average maintenance cost of 20K per bank, per year With SWIFTNET, Arcelor was able to maintain a 4 person headcount, although its subsidiary activity doubled. Without SWIFTNet, headcount would have increased, especially as transaction processing increased by 150% Efficiencies gained using SWIFTNet contributed to Arcelor reducing department headcount from 40 to 10

Arcelors 18 months break-even-point was largely driven by the delayed benefit realization of headcount avoidance and reduction, coupled with the hardware retirement of the messaging systems The benefits grew exponentially after recognizing the values of Phase III (Payment Factory) with no additional costs

Working Capital Optimization

Future Benefits
Extend Payment Factory Functionality
Move beyond the Payment Factorys current focus of receipts to include urgent and non-urgent payments Use XML standards to eliminate various message formats to enhance payments efficiency Connect Arcelors ERP system to enable wing to wing communications Standardize, rich information sets to track payments and receipts from initiation to completion Increase automation will enable Arcelor Treasury to focus on exception processing instead of matching P/Os and Invoicing

Staff Reduction

With SWIFTNet, cash aggregation volume increased by 67%. Using a conservative gain of 5 basis points (bps), Arcelor can invest the additional capital translating into benefits of 0.43 million, 4% of the total benefits Productivity gains from SWIFTNet have led to staff and resource reallocation in two major areas: Treasury Back Office, 12.5% of total staff reduction, and Treasury Commercial Management and Finance, 87.5%. Staff reduction is 25% of the total benefits

Cash Pooling Activity 15 5

Pre SWIFT

Post SWIFT

Commercial Management & Finance Headcount 40 10

Establish SWIFTNet as the STP Backbone

Pre SW IFT

Post SWIFT

SWIFTNet, combined with the Payment Factory, is helping Arcelor retire over 40 bank messaging systems generating savings of 20K per bank, per year

Bank Hardware Retirement

Bank Hardware Retirement


40

Pre SWIFT

Post SW IFT

About the Value Measurement Series

This study is one of a series of investigations into the costs and business returns of SWIFTNet investments. It is intended to serve business executives and managers who are evaluating investment options to improve the way they conduct Cash and Treasury Management. This case study is based on original research and analysis conducted by Thoughtware Worldwide, LLC, an independent research and consulting firm. Thoughtware Worldwides research included on-site interviews with members of Arcelor Corporate Treasury and reviews of company financial and planning documents. Information contained in the publication has been obtained from sources considered reliable, but is not warranted by Thoughtware Worldwide, LLC, or S.W.I.F.T.. 2005 All rights reserved. For more information about this study, please visit: ThoughtwareWorldwide.com or contact your local SWIFT office

SWIFT for corporates

20

Corporate case studies

Produced by: Treasury Strategies Focus: DuPont

THE DUPONT CASE STUDY

Supporting Global Growth through SWIFT Connectivity

messaging platform and a 203% ROI for DuPont saging nd r


THE CHALLENGE ALLENGE Driven to achieve straight-through processing and global view of cash, DuPont embarked on Driven to achieve straight-through processing and a global view of cash, DuPont embarked on a multi-year, multi-faceted treasury re-engineering project iin 2001. DuPont centralized Treasury multi-year, multi-faceted treasury re-engineering project n 2001. DuPont centralized Treasury ns ce SunGards operations and implemented a global instance of SunGards Quantum treasury workstation. treasury workstation. Connecting to the operational ERP, SAP, was important from an accounting perspective but Connecting to the operational ERP, SAP, was important from an accounting perspective but the challenges associated with close to 100 banking relationships globally and multiple bank the challenges associated with close to 100 banking relationships globally and multiple bank ons connections remained. Treasury staff dedicated to collection of bank iinformation f r k tion from various sources, i Treasury t ff d dicated t llection f b nk f leaving little time for strategic activities g intervention, Manuall intervention, leading to operational risk Lack of global visibility and ability to optimally manage cash. f lly THE OBJECTIVE JECTIVE DuPont sought a solution to automatically lload banking data directly into its Treasury and DuPont sought solution to automatically oad banking data directly into its Treasury and Accounting systems and improve globa visibility to cash. The solution had to meet the following Accounting systems and improve globall visibility to cash. The solution had to meet the following key requirements: irements: Bank neutralability to plug and play neutralability Single platform and access point for global nancial messaging p Straight-through processing ht-through Reliability leading to simplicity and stability lity Highest eve of security and resiliency eliminating multiple security packages Highest llevell of security and resiliency eliminating multiple security packages for multiple connection points tiple

Background: DuPont With revenue of over $27.4 billion, E.I. DuPont de Nemours Company (DuPont) is among the worlds largest chemical companies. Headquartered in Wilmington, Delaware Operates in over 70 countries Employs 60,000 individuals Background: Treasury Centralized operations across three centers worldwide Management of SWIFT as nancial communications channel for treasury and business units Global implementation of treasury workstation and single instance of ERP

SWIFT was the only way to make our vision reach all our banks via one connectiona reality.

Positions DuPont for growth - volumes, customers, acquisitions, applications. ns stomers, THE INITIATIVE INITIATIVE TIA A DuPont selected SWIFT as only solution with bank ndependence, globa reach and ability to handle DuPont selected SWIFT as only solution with bank iindependence, globall reach and ability to handle treasury treasury and payments operations. The project was implemented in 18 months, including the integract ncluding integration with its treasury and ERP systems and consolidation of U.S. banking relationships. DuPont uses tion with its treasury and ERP systems and consolidation of U.S. banking relationships. DuPont uses SWIFT for all of its nancia transactions and bank statement data globally and for payment and SWIFT for all of its nanciall transactions and bank statement data globally and for payment and receivables related data in the U.S. Europe and Asia are expected to follow with payment and receivables related data in the U.S. Europe and Asia are expected to follow with payment and receivables data in the next 12 months. les

SWIFT IMPLEMENTATION Receive Account info and statements in BAI2 format (FIN and FileAct) Lockbox and ACH data les Lockbox and ACH data les (FileAct)

Singapore Singapore

Send Send Treasury Treasury payments (FIN) Payments leswires, ACHs, checks FX payments ACHs, checks & FX payments (FileAct)

Spain Spain U.S. U.S. Treasury Workstation Treasury Workstation on (Quantum) ERP (SAP), used by (SAP), Business Units Units

Intranet

Alliance

SWIFT for corporates

21

THE DUPONT CASE STUDY

THE COST / BENEFIT COST DuPont is realizing its objectives of straight-through processing and a single global nancial s hrough al messaging platform. ng Implementation and ongoing costs include entation include ude Project management and operational costs time required to establish the infrastructure, t s rastructure, connections and system interfaces (SAP and Quantum) and manage the server environment ctions nd server r SWIFT costsincluding subscription, infrastructure and FIN and FileAct trafc. structure
Project Management 12% SWIFT SWIFT Subscription Infrastructure 2% 17% Trafc 13% Servers & Operations 41%

Investment Components

Benets include s include IT labor savings reduced infrastructure r maintenance for lines, connections, translations, etc. nance tions, Treasury Treasury labor savings business process r s improvement relative to globa centering activities improvement relative to globall centering activities result in avoidance of headcount increases n Retirement f bank R tirement of b k messaging systems ment t i t 25 over two to three years r Working capita optimizationimproved visibility Working capitall optimizationimproved visibility to cash globally wil enable DuPont to more efciently to cash globally willl enable DuPont to more efciently manage the concentration and disbursement of funds manage the concentration and disbursement of funds

Applications (interface SAP/Quantum) 15%

Now Now that we have the ce pipe in place (access to t SWIFT), it is just a matter of pushing whatever g we can through it. through
DUPONT GLOB TREASURY DUPONT GLOBAL TREASURY BAL IT MANAGER IT MANAGER

Benets Components
Working Capital Optimization 13% IT Labor Savings 20% Bank Messaging Systems Savings 38%

ness f r The business case resulted in a net benet of $ 2.5 million and ROI of 203% over 5 years, yback and a payback in 3 years. i f t t l benets ill c tinue to i v l i With the infrastructure iin place, b ts will continue t iincrease as messaging volumes increase, the scope of DuPonts use of SWIFT expands and Treasury can focus on more strategic initiatives. e DuPonts Treasury ategic NCL THE CONCLUSION CONCLUSION With the implementation of SWIFT, DuPont has achieved a paradigm shift in Treasury operations. SWIFT, T as Treasury sur es naging ons Resources will no longer be tied down by managing a multitude of bank connections and data loads. DuPont has and wil continue to realize cost benets from automation and the adoption of single DuPont has and willl continue to realize cost benets from automation and the adoption of a single ng Timely count sibility messaging platform. Timely integration of account information improves global visibility of cash resultresultancial as growth objectives. ing in nancial benets. The company now has a scalable platform to support its g ve ur r d The above analysis was performed by Treasury Strategies, Inc. during the second quarter of 2007. Treasury e study, ase y r For more information on this case study, please contact Treasury Strategies at: Treasury info@TreasuryStrategies.com T easur r SWIFT ofce. info@TreasuryStrategies.com or your local S

Treasury Labor Savings 29%

Breakeven Analysis
$4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 2006 2007 Costs ($MM) 2008 2009 Benets ($MM) 2010 2011 1

About Treasury Strategies, Inc. Treasury Strategies, r Treasury Strategies, nc. is the eading Treasury consulting rm working with corporations and nancia Treasury Strategies, IInc. is the lleading Treasury consulting rm working with corporations and nanciall institutions. Our experience and thought leadership in treasury management, working capital managens. dership treasury r rking management, liquidity and payments, combined with our comprehensive view of the market, rewards you with ment, liquidity and payments, combined with our comprehensive view of the market, rewards you with a unique perspective, unparalleled insights and actionable solutions. e nd

2007 Treasury Strategies, Inc.

SWIFT for corporates

22

Produced by: ThoughtwareWorldwide Focus: GE

Corporate case study

General Electric Company


3135 Easton Turnpike Fairfield, CT 06828-0001 United States Phone: 203-373-3476 www.ge.com NYSE: GE

GE Corporate Treasury moves to global banking industry solution SWIFTNet 406% ROI to be realized
Executive Summary
GE is a diversified technology, media and financial services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming and plastics, GE employs more than 300,000 people worldwide in over a dozen operating segments and it operates in more than 100 countries. In order to run its businesses GE makes millions of payments each year, many of which must be made within a specific time frame to meet contractual obligations with its customers and suppliers. GE Corporate Treasury serves over 4,000 business units within the GE family of companies, spanning some 20,000+ bank accounts with nearly 200 banks around the globe. Every day, GE Corporate Treasury manages billions of dollars money that must be collected from customers and paid to vendors around the globe, in over a dozen foreign currencies. For GE, availability, reliability, security and control are paramount to get the job done. In 2004, GE Corporate Treasury, like most large multi-nationals, was wrestling with multiple banking relationships and connections to execute their cash management (payment and receipts) strategies. Scaling to handle the volume and demands of its growing business, GE would have required an increase in headcount to process more than the current 50% level of treasury volume. IT (Information Technology) was spending a significant amount of resources to maintain multiple systems and connection points. Each connection was differentsystems, processes, and data (quality, availability and timeliness) impacting GEs ability to quickly assemble a view of its current cash positions. IT was in an endless cycle of break-fix, work-arounds and updating and maintaining various security protocols. To overcome these challenges, GE made the decision to use SWIFT, and its SWIFTNet Corporate-to-Bank (C2B) solution to provide GE with a simple, secure and reliable communications platform to transmit financial messages to and from GEs banks around the globe. SWIFT serves 7,800 financial institutions in more than 202 countries. With SWIFTNet, GE is able to create one window from its internal Treasury Workstation, (GE WebCash) directly to its banks. The SWIFTNet solution allows GE to replace its existing fragmented approach, comprised of point-to-point, EDI VANS (Value Added Networks) and proprietary bank connections to one single, reliable, integrated non-repudiated platform. Since the implementation began, GE Treasury has realized enormous benefits from the combination of SWIFTNet and GE WebCash. GE is experiencing increased reliability, enhanced security and controllership, which translates into an impressive financial Return On Investment (ROI) of 406% over five years.

Chairman of the Board & Chief Executive Officer


Mr. Jeffrey R. Immelt

Revenues

$152.4 Billion

Employees
300,000+

ROI Study Highlights


IRR of 59% in 5 years ROI of 406% in 5 years

Enhanced Security

Strategic Benefits

Increased Visibility

Increased Automation

Improved Flexibility

Does not include Business Unit Cash & Financial Management Activity

Does not include receipts

Corporate Treasury Payments activity only

Study Scope

SWIFT for corporates

23

Benefits
Traffic Monitor Elimination 22%

Operational Benefits
IT M apping & M aint. Savings 48%

Financial Benefits
Capital Gro wth A vo idance 25%

Break Even Analysis

Cash M gr. Ops. Savings 20%

So ftware Retirement 5%

Thoughtware Worldwides analysis shows GE Corporate Treasury will generate $10.5 million in net benefits over five years from its investment in SWIFTNet. More importantly, GE achieves a positive return from its investment in SWIFTNet based on the operational benefits alone

Netwo rk Co st A vo idance 4%

Hardware Retirement 1 %

Wo rking Capital Optimizatio n 75%

Y ear 0

Y ear 1

Y ear 2

Y ear 3

Y ear 4

Y ear 5

Cost s

Benef it s

Beyond the operational benefits, GE Corporate Treasury will achieve long term benefits from increased visibility and availability of its cash around the globe. This translates into improved cash management and reduced borrowing by optimizing the use of its idle cash

Bank-wide adoption and support of SWIFTs FileAct, delayed GEs realization of benefits for the first years of its investment. As banks adopt FileAct, GE continues to increase its benefits realization

Operational Impact
Improved Reliability
By implementing SWIFTNet, GE Corporate Treasury has reduced the number of connection failures. PreSWIFTNet, the average connection failure was 50 times per year, with SWIFTNet no connection failures have occurred

50 0

Future Benefits

Standards Need to Become Standards

Connection Failures
Pre SW IFT
38

Post SW IFT

Full automation and Straight Through Processing (STP) can not be achieved without standards. SWIFTNet enables rich data capture and transmission making STP possible

Simplification

ERP Integration

Before implementing SWIFTNet, GE Corporate Treasury dealt with over 100 banks with 38 proprietary software connections. With SWIFTNet fully implemented the number of connections will drop to one

Num ber O f Conn ections


P re S W IF T
299

Extending SWIFTNet to support other financial messaging requirements, will increase the quality and transparency of its recording, reporting and reconciliation of transactions translating into optimized working capital

P o s t S W IF T
393

Operational Efficiency

By implementing SWIFTNet, the Treasury Operations team can increase the activity volume per resource by 31%

Transactions per FTE


Pre SWIFT Post SW IFT

In the 24x7, global, multi-currency world, connectivity, support and availability are paramount to running a successful enterprise. By moving to standards, like SWIFTNet, all participants can reallocate resources to more value-added activities

Availability and Support

About the Value Measurement Series

This study is one of a series of investigations into the costs and business returns of SWIFTNet investments. It is intended to serve business executives and managers who are evaluating investment options to improve the way they conduct Cash and Treasury Management. This case study is based on original research and analysis conducted by Thoughtware Worldwide, LLC, an independent research and consulting firm. Thoughtware Worldwides research included on-site interviews with members of GE Corporate Treasury and reviews of company financial and planning documents. Information contained in the publication has been obtained from sources considered reliable, but is not warranted by Thoughtware Worldwide, LLC, or S.W.I.F.T.. 2005 All rights reserved. For more information about this study, please visit: ThoughtwareWorldwide.com or contact your local SWIFT office

SWIFT for corporates

24

Corporate case study

Produced by: Treasury Strategies Focus: Iberia

THE IBERIA CASE STUDY

Supporting Global Growth through SWIFT Connectivity


SWIFT enables the consolidation of banking SWIFT enables the consolidation of banking systems and achieves a 276% ROI for Iberia ems beria
THE CHALLENGE ALLENGE Prior to 2006, Iberia was running its treasury operations in a decentralized manner with 85 banks in Prior to 2006, Iberia was running its treasury operations in decentralized manner with 85 banks in tries, 0 e 47 countries, over 160 bank accounts and 60 electronic banking platforms. This environment led to a number of challenges: ber Obtaining visibility to and managing liquidity across locations and countries ing y Centralizing payment origination activities lizing Managing multiple payments formats and authorization procedures ing a Operating 60+ electronic banking channels, requiring signicant treasury and T staff resources Operating 60+ electronic banking channels, requiring signicant treasury and IIT staff resources THE OBJECTIVE JECTIVE Iberia sought a solution to address these issues and embarked on a project to centralize iits treasury Iberia sought solution to address these issues and embarked on project to centralize ts treasury ns globally. operations globally. The objectives were to: Better control Euro liquidity through cash pooling c ooling Integrate payment activities of local ofces into the central treasury te treasury Standardize and unify banking communication systems ardize tion Automate the capture of bank account statements ate ements Optimize the management of payments through a single bank and standardized payment formats ze ough d Improve the process of payment authorization e ion Centralize the execution of FX operations lize Reduce operating costs e

Background: Iberia With revenues of over 5.5 billion, Iberia is the largest air transport group in Spain and the fourth largest in Europe. Headquartered in Madrid Operates in over 47 countries Employs 24,000 individuals Background: Treasury Centralized treasury operations for Europe and North America through Madrid and in Latin America Management of cash positions, payments and collections Design and execution of interest rate & FX risk programs Banking relationships

SWIFT played a main role to achieve all the objectives of our treasury centralization project.

THE INITIATIVE INITIATIVE TIA A In February 2006, Iberias project to centralize iits treasury operations for Europe and North America In February 2006, Iberias project to centralize ts treasury operations for Europe and North America in Madrid began. IIberia then selected SWIFT as the single communication platform to interface with in Madrid began. beria then selected SWIFT as the single communication platform to interface with its treasury management systems. In addition, the company standardized its payment formats and treasury ur n, ment established single payments authorization module. To further support the centralization, Iberia established a single payments authorization module. To further support the centralization, Iberia rationalized its banking relationships to a single gateway bank. The company plans to set up a zed gle ns treasury treasury center for Latin America.

SWIFT IMPLEMENTATION MT101 sent via FIN for high igh value treasury and supplier treasury ier payments

MT101 and PAYMUL les d PAYMUL sent via FileAct for low value, ue, UK ACH and PE-ACH supplier UK ACH and PE-ACH supplier payments PAYMUL for foreign and PAYMUL for foreign and domestic cheque payments ts sent via FileAct

Oracle Oracle GL

XRT XRT Authorization uthorization Payment, Cash & Treasury System Treasury System (XRT) (XRT) Transfer Transfer System (XBE) ystem

AP AP Quantum Treasury Management Treasury System Alliance Access Alliance Access & Gateway Gateway

AR AR

Local Banks

SWIFT for corporates

25

THE IBERIA CASE STUDY

THE COST / BENEFIT COST Iberia has realized its objectives of centralizing its treasury operations and, by using SWIFT, s ng treasury ng SWIFT, T of consolidating its banking systems into a single global nancial messaging platform. lidating ngle form. Implementation and ongoing costs include: entation include: ude: Application integrationcost to adapt its treasury systems and to connect them to SWIFT ation reasur m treasury Investment Components
Project Management 9% SWIFT Infrastructure 22% Trafc 8% Application Integration 25%

Project managementtime required to establish the infrastructure and to plan Project managementtime required to establish the infrastructure and to plan and execute the project d ecute t j t Servers Operationscost required to nstal and to operate the infrastructure Servers & Operationscost required to iinstalll and to operate the infrastructure on an ongoing basis o SWIFT costsMA-CUG registration fees, infrastructure and FIN and FileAct trafc ructure s include: Benets include: f s Cost of operating bank messaging systems 60 systems retired over two years tems Treasury IT labor re-allocationre-allocation of Treasury & IT labor re-allocationre-allocation of resources following centralization of banking messaging resources following centralization of banking messaging activities previously handled in the loca ofces activities previously handled in the locall ofces The business case resulted in a project ROII of 276% The business case resulted in project RO of 276% ears, over 5 years, and a payback in 25 months.

We are really We are really happy with lly

MA-CUG Registration 3%

Servers & Operations 34%

platform and the whole nd process from process from payment

IBERIAS HEAD OF TREASURY IBERIAS AND RISK MAN RISK MANAGEMENT NAGEMENT

Benets Components

With the SWIFT nfrastructure in place, Iberia plans to expand ts use of SWIFT to trade conrmations With the SWIFT iinfrastructure in place, Iberia plans to expand iits use of SWIFT to trade conrmations ching, d and matching, and to communicate with its domestic banks. NCL THE CONCLUSION CONCLUSION n Iberias treasury nabling consoliSWIFT was a cornerstone in the centralization of Iberias treasury operations by enabling the consoliwas entralization, autodation of a multitude of banking systems into a single messaging platform. The centralization, automation of payments processes and capture of bank statements allowed the re-allocation of treasury mation of payments processes and capture of bank statements allowed the re-allocation of treasury and IT resources. The exibility of SWIFT allows Iberia to standardize payments formats and send high and IT resources. The exibility of SWIFT allows Iberia to standardize payments formats and send high yments, nd value payments, low value mass payments and cheques via a single system. ve ur r d The above analysis was performed by Treasury Strategies, Inc. during the second quarter of 2007. Treasury e study, ase y r For more information on this case study, please contact Treasury Strategies at: Treasury info@TreasuryStrategies.com T easur r SWIFT ofce. info@TreasuryStrategies.com or your local S

IT Labor Reallocation 14% Cost of Operating Bank Messaging Systems 59% Treasury Labor Reallocation 27%

Breakeven Analysis

1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2006 2007 2008 2009 2010 1 2011 Costs ( MM) Benets ( MM)

About Tr Treasury Strategies, Inc. reasury Strategies, Treasury Strategies, nc. s the eading Treasury consulting rm working with corporations and nancial Treasury Strategies, IInc. iis the lleading Treasury consulting rm working with corporations and nancial ng ng institutions. Our experience and thought leadership in treasury management, working capital managens. dership treasury r rking management, lliquidity and payments, combined with our comprehensive view of the market, rewards you with ment, iquidity and payments, combined with our comprehensive view of the market, rewards you with a unique perspective, unparalleled insights and actionable solutions. nd

2007 Treasury Strategies, Inc.

SWIFT for corporates

26

Corporate case study

Produced by: Treasury Strategies Focus: Microsoft

THE MICROSOFT CASE STUDY

Global Real Time Visibility through SWIFT Connectivity


SWIFT initiative provides integrated SWIFT initiative provides integrated view of cash and a 326% ROI for Microsoft Microsoft w 6% oft
Background: Microsoft With revenue of over $50 billion, Microsoft is the worlds leading software development company. Headquartered in Redmond, Washington Operates in over 100 countries Employs close to 80,000 individuals Background: Treasury One centralized Treasury Dept. in Redmond (130 employees) with 5 business groups:
Credit & collections located around

THE CHALLENGE ALLENGE With over 1,000 bank accounts distributed across more than 100 banking partners, Microsoft faced With over 1,000 bank accounts distributed across more than 100 banking partners, Microsoft faced challenges in optimizing the concentration of funds globally and efciently managing the reconcilies ging reconciliation and posting of bank information. The point-to-point connectivity built with handfu of primary ation and posting of bank information. The point-to-point connectivity built with a handfull of primary banking partners was not scalable across multiple banking partners due to the support required for banking partners was not scalable across multiple banking partners due to the support required for multiple data formats, security protocols, transport layers and business ogic. view of balances n multiple data formats, security protocols, transport layers and business llogic. A view of balances iin her tements ectively these other banks was limited to monthly statements making it impossible to effectively manage or contro these balances, an ncreasingly unacceptable position in the current risk, regulatory and or controll these balances, an iincreasingly unacceptable position in the current risk, regulatory and globa business environment. The nability to aggressively consolidate and concentrate funds resulted globall business environment. The iinability to aggressively consolidate and concentrate funds resulted optimal investment of cash. in a sub o JECTIVE THE OBJECTIVE b de ging industry Backed by its vision of a single enterprise wide nancial messaging portal leveraging industry messaging standards, Microsofts goa is to achieve near-time real-time view of cash across messaging standards, Microsofts goall is to achieve a near-time / real-time view of cash across unts (every orting every d all accounts globally (every bank account reporting electronically into SAP every day over SWIFT). b Further banking partner connectivity goals to achieve its vision include: A single secure, reliable, resilient and cost effective channell for communicating single secure, reliable, resilient and cost effective channe for communicating with all banking partners gp Leverage industry standard data formats (FIN, BAI, FINSTA/EDIFACT and ISO 20022 XML) ge industry FIN, FINSTA/EDIFACT T F 0022 Send and receive enriched data n order to ncrease automation and straight through Send and receive enriched data iin order to iincrease automation and straight through processing (STP) to the SAP ERP system. sing THE INITIATIVE INITIATIVE TIA A Microsoft embarked on iits SWIFT initiative iin early 2006 with the iinstallation of the SWIFT Microsoft embarked on ts SWIFT initiative n early 2006 with the nstallation of the SWIFT infrastructure and integration with SAP using Microsofts BizTalk Server. The company went llive infrastructure and integration with SAP using Microsofts BizTalk Server. The company went ive October 2006 and as of December 2007 had 14 banks providing MT940s (prior day statements) October 2006 and as of December 2007 had 14 banks providing MT940s (prior day statements) for 420 bank accounts. Plans are to add an additionall 60 banks in the next two years. The company for 420 bank accounts. Plans are to add an additiona 60 banks in the next two years. The company is also receiving MT942s (intraday statements) from collection, concentration and custody accounts is also receiving MT942s (intraday statements) from collection, concentration and custody accounts and in 2008 willl begin sending treasury wires via FIN and receiving ISO 20022 XML next generation and in 2008 wil begin sending treasury wires via FIN and receiving ISO 20022 XML next generation statements as well as billing analysis les via FileAct. nts

the world
Capital Markets (Redmond) Global Cash Mgmt. (Redmond) Corporate Finance (Redmond) Risk (Redmond)

1,000 bank accounts globally with 100 banks 5,000 Treasury wires monthly, value of $70B Global implementation of SAP ERP and Treasury Workstation

Pockets of cash are all over the place Want a single view A corporation cannot manage

SWIFT IMPLEMENTATION Receive Receive Account info and statements ts MT940s & MT942s (FIN) Planned Lockbox and billing analysis Lockbox and billing analysis (822\BSB) data les (FileAct) t) Receive statements in XML

Send Send Planned 2008 Treasury wires (FIN) Treasury

MICROSOFT SQL SERVER MICROSOFT SQL SERVER 2005 REPORTING SERVICES REPORTING SERVICES Custom Data Entry Querying & Reporting Tools om Entry Querying Reporting Tools

ENTERPRISE ENTERPRISE B2B SYSTEM SYSTEM Microsoft BizTalk BizTalk Server 2006 Server Microsoft BizTalk BizTalk Adapter for SAP Microsoft BizTalk BizTalk Accelerator for SWIFT Accelerator Bank A

MICROSOFT SQL SERVER MICROSOFT SQL SERVER 2005 ENTERPRISE X64 EDITION ENTERPRISE EDITION SAP ERP Treasury Workstation ERP Treasury Workstation WINDOWS SHAREPOINT SERVICES WINDOWS SHAREPOINT SERVICES Microsoft Ofce InfoPath 2003 Ofce Supports SWIFT messages outside of SAP upports

Bank B

Bank C

SWIFT for corporates

27

THE MICROSOFT CASE STUDY

THE COST / BENEFIT COST BENEFIT Microsoft is realizing its goals of a near time / reall time global view of cash, adoption of industry Microsoft is realizing its goals of near time rea time global view of cash, adoption of industry standard message formats and achieving straight through processing. d raight Implementation and ongoing costs include entation include ude Project management and operational coststime required to establish the SWIFT infrastructure, t s WIFT BizTalk) connections (Microsoft BizTalk) and system interfaces (SAP) and manage the server environment. ctions T m server er SWIFT costsincluding subscription, infrastructure and FIN and FileAct (future) trafc. s structure e) Investment Components
SWIFT Business Assessment Program SWIFT SWIFT Training 1% Project (1x) Software 1% Management Subscription 8% 3% Servers & Operational Messaging 8% Trafc & Annual Participant Charges 8% Application Development (Integration with SAP) 70%

s include Benets include or s e g IT Labor savingselimination of/avoidance of time to maintain bank messaging systems Treasury Labor savingsreduced time to more effectively manage globall cash, handle month-end Treasury r sreduced time to more effectively manage globa cash, handle month-end close, monitor bank account balances, manage repatriations and reconcile accounts close, monitor bank account balances, manage repatriations and reconcile accounts Cost avoidance of establishing additional bank messaging systems70 over three years / voidance ank s70 over three years 100 over 4 years ver Working capital optimizationlater wire cutoff times willl accelerate Microsofts access to cash and ng nlater wire cutoff times wil accelerate Microsofts access to cash and Working improved visibility to global cash wil enable Microsoft to optimize un-invested cash more efciently improved visibility to global cash willl enable Microsoft to optimize un-invested cash more efciently ness value of $4.9 million and ROI of 326% over 5 years, % The business case resulted in a net present v yback and a payback in 24 months. t ks treasury Beyond the immediate plans to bring all banks on board, migrate existing treasury wire payment es SWIFT, T rt s messages to SWIFT, and migrate the transport of lockbox and billing analysis les to FileAct, ft re Microsoft plans to leverage SWIFT in the future for the following: Use of ISO 20022 XML for enriched data (statements, cash reporting, wire payment messages) in Use of ISO 20022 XML for enriched data (statements, cash reporting, wire payment messages) in order order to automate G/L postings and cash application to automate G/L postings and cash application SWIFT SWIFT is enabling abling E in the ERP system , Capital markets operations (trade conrms, FX settlement, etc.) lement, Exception and investigation messages. ion FileAct for 822 and BSB billing analysis les FileAct for 822 and BSB billing analysis les as well as other data exchange processes NCL THE CONCLUSION CONCLUSION With the implementation of SWIFT, Microsoft has laid With the implementation of SWIFT, Microsoft has laid the groundwork for and embarked on course to realize true globa view of cash, single and the groundwork for and embarked on a course to realize a true globall view of cash, a single and secure channe for banking data across the enterprise and ncreased automation and straight through secure channell for banking data across the enterprise and iincreased automation and straight through ng nriched industry sages. processing through sending and receiving enriched data / industry standard messages. ve ur r q The above analysis was performed by Treasury Strategies, Inc. during the fourth quarter of 2007. Treasury e study, ase y r For more information on this case study, please contact Treasury Strategies at: Treasury info@TreasuryStrategies.com T easur r SWIFT ofce. info@TreasuryStrategies.com or your local S

Benets Components
Transaction Processing Efciencies 7% Working Capital Optimization 20%

Microsoft to build one Microsoft centralized source of t th t lized source f truth sour for all banking data shared ng shared

IT Labor Savings 24%

Bank Messaging Systems & Vans 39% Treasury Labor Savings 10%

Breakeven Analysis
$12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 2006 2007 2008 Costs ($MM) 2009 2010 2011 Benets ($MM)

About Treasury Strategies, Inc. Treasury Strategies, r Treasury Strategies, nc. is the eading Treasury consulting rm working with corporations and nancia Treasury Strategies, IInc. is the lleading Treasury consulting rm working with corporations and nanciall institutions. Our experience and thought leadership in treasury management, working capital managens. dership treasury r rking management, liquidity and payments, combined with our comprehensive view of the market, rewards you with ment, liquidity and payments, combined with our comprehensive view of the market, rewards you with a unique perspective, unparalleled insights and actionable solutions. e nd

2008 Treasury Strategies, Inc.

SWIFT for corporates

28

Produced by: SWIFT Focus: Novartis

Corporate case study

Case study

Novartis International

Novartis International achieves 120% ROI over five years using SWIFT to replace multi-bank system and automate confirmations
When we had to replace our bank messaging system, we took SWIFT to reach all our banks directly, with the highest security
Head of Treasury Control and Reporting

Novartis is a world leader in providing medicines to protect health, prevent and treat disease and to improve well-being. The firm has 100,000+ employees and realised group net sales of USD 37 billion in 2006. Its Group Treasury ensures financial risk management, optimises use and profitability of financial resources and provides financing and financial services to the operating businesses.

Business challenges
Replacement of multi-bank system Automation of FX confirmations Increased security

Investment Investment included joining and MA-CUG registration, infrastructure and traffic fees. The project covered evaluation, joining/ ordering, installation, connection to middleware, testing with bank partners and go-live. Operations cover daily management of SWIFT interface and connection. Investment
Project management 24% Joining/service fees 16% Traffic 12%

Benefits for Novartis


Single channel to payment banks Cost savings on IT and personnel Greater control and security Business challenges Before using SWIFT for corporate connectivity, Novartis Group Treasury faced three challenges: the replacement of its multi-bank system when the incumbent provider announced that support would cease automation of FX deal and deposit confirmations sent by fax, as banks no longer accept these increased security for payments transactions in general. A implementation project was launched in April 2006 and completed within six months.

Servers + operations 7% SWIFT infrastructure 41%

SWIFT for corporates

29

Banks

Treasurysystem (OMR)

Middleware

Alliance

Novartis entities Switzerland: Novartis AG, Holding, Pensionfund Luxembourg: Novartis Investment Bermuda: Novartis Securities Investments Gibraltar: Novartis Insurance

Novartis International

Benefits for Novartis Through SWIFT, Novartis now has a single channel to reach its payment banks and was able to automate previously manual fax and investigations operations. Novartis has been able to reallocate treasury operations staff to other functions, make substantial savings on manual labour costs and reduce bank messaging costs. The new architecture provides: better control of messages that are leaving Novartis robust security with the highest standards built in an automated solution that could be used for other divisions or countries. These benefits translate into a financial ROI for Novartis of 120% over five years. Benefits
Treasury ops staff re-allocation 28% Banking messaging cost savings 22%

Solution overview A SWIFT implementation project was launched in April 2006 and completed within six months. Novartis now uses FIN to send FX deals and deposit confirmation (MT 300, 305, 320 350), and their related payment initiations (MT 101) and notifications (MT 210). The intention is to receive statements via SWIFT by end of 2007. Novartis exchanges confirmations with about 20 banks and has MA-CUG (Member Administered Closer User Group) contracts with four banks to send the related payment initiations and notifications. Registration in SCORE was also recently completed. On a daily basis, Novartis uses SWIFT for cash management, risk management and investments. Depending on the nature of trades done, different MTs will be generated: FX deals are confirmed with MT 300 and related movements generate MT 101 and MT 210 Deposits are confirmed with MT 320.

executing mass payments via FileAct implementing the reception of statements (MT 940) as well as confirmations of debit and credit (MT 900 and MT 910) via SWIFT.

Solution overview Participant in four MA-CUGs and membership of SCORE FIN to send FX confirmations, payment initiations and notifications

Manual labour cost savings 50%

Future opportunities In addition to its current usage of SWIFT, Novartis is considering: use of Accord for matching of confirmations sending and receiving messages related to securities transactions (MT 5xx), currently exchanged by fax

About SWIFT SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect over 8,300 banking organisations, securities institutions and corporate customers in more than 208 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest. www.swift.com For more information please contact your SWIFT account manager or visit www.swift.com

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Corporate case study

Produced by: Treasury Strategies Focus: Petronas

THE PETRONAS CASE STUDY

Supporting Global Growth through SWIFT Connectivity


SWIFT delivers straight through processing SWIFT delivers straight through processing and a 414% ROI for PETRONAS ETRONAS
THE CHALLENGE ALLENGE Supporting the nancial needs of a Globall FORTUNE 500 rm, the Group Treasury Division of Supporting the nancial needs of Globa FORTUNE 500 rm, the Group Treasury Division of AS es e PETRONAS manages signicant daily volumes of payments and foreign exchange ows. Prior to August 2005, payment requests, notications to receive and deall conrmations (FX and Prior to August 2005, payment requests, notications to receive and dea conrmations (FX and securities) were handled via semi-automated telexes and manua faxes. To meet these challenges in securities) were handled via semi-automated telexes and manuall faxes. To meet these challenges in an environment of rapidly growing activity, PETRONAS realized t needed to establish standard an environment of rapidly growing activity, PETRONAS realized iit needed to establish standard ble eve and reliable processes with its banks to achieve its goals. THE OBJECTIVE JECTIVE PETRONAS goa was to improve efciency and control by automating manual activities PETRONAS goall was to improve efciency and control by automating manual activities via straight-through processing. ght-through Straight through processing, eliminating manual faxes and processes, ht anual reducing errors and error rates ng ed c.) Reduced costs (staff overtime, telex, fax, etc.) Enhanced controls around and visibility to transactions, notications and conrmations ced ransactions, mations Streamlined operations and increased Treasury staff efciency and productivity mlined p Treasury sur y p y Fewer b interfaces to support bank Increased security for transmissions sed THE INITIATIVE INITIATIVE TIA A sessing arked eptember After assessing its options, PETRONAS embarked on a two pronged initiative in September 2004.
1) Implement a Treasury Workstation, Trema Suite, to automate processes and interface with the Implement Treasury Workstation, Trema Suite, to automate processes and interface with the

Background: PETRONAS With revenue of over $50 billion, Petroliam Nasional Berhad (PETRONAS) is a leading oil and gas multinational whose businesses encompass the full spectrum of oil and gas operations. Headquartered in Kuala Lumpur, Malaysia Operates in over 33 countries Employs 34,000 individuals Background: Group Treasury Division Manages surplus cash for 60+ subsidiaries / business units Responsible for interest rate and FX exposure management Local subsidiaries manage operational accounts and daily payables and receivables

companys companys Enterprise Resource Platform, SAP any S

With SWIFT, we now have a standard and reliable process with all our banks

2) Communicate with their 6 primary banks via SWIFT to achieve greater straight-through-processing Communicate with their primary banks via SWIFT to achieve greater straight-through-processing

in payment requests, notications and conrmations. ment nrmations.

SWIFT IMPLEMENTATION FIN Treasury Treasury payments Notications to receive FX securities dea FX & securities deall conrmations Statements

FileAct Instruction letters to suppliers ers Predened format PDF format

Group Treasury Treasury (Trema) (Trema) T

FIN

E&P Business Unit Unit (subsidiary) (subsidiary) (SAP) Group Accounts Services & Services (SAP)

FIN

FileAct F

Alliance

SWIFT for corporates

31

THE PETRONAS CASE STUDY

THE COST / BENEFIT ST PETRONAS achieved iits objectives of enhanced productivity, enhanced controls and greater straight PETRONAS achieved ts objectives of enhanced productivity, enhanced controls and greater straight through processing. p Implementation and ongoing costs include: entation include: ude: Project management costsincluding a link to Trema Suite which was already SWIFT-enabled t nk Trema SWIFT-enabled T Investment Components
Project Management 6%

SWIFT operations costsincluding Alliance capital expenditure and maintenance, e nce, trafc and transaction costs a s include: Benets include: Treasury staff growth avoidancetreasury stafng levels have remained constant at despite Treasury staff growth avoidancetreasury stafng levels have remained constant at 8 despite a doubling of transaction volumes and a 55% reduction in overtime ling 5% Savings in telex and bank processing costsdue to automation and straight through processing s due rough Increased interest earnedas a result of increased funds available due to payments that can be sed ncreased ments released a day later ed

SWIFT Operations 94%

Enhanced strategic focusOperational efciencies have allowed Group Treasury Staff and Enhanced strategic focusOperational efciencies have allowed Group Treasury Staff and Executives to focus on more strategic initiatives for the company such as the planned implementaives tives anned implementas factory. tion of a shared services center / payments factory. services Al of the above quantiable benets have resulted n net benet of $1.1 million over years, an ROI Alll of the above quantiable benets have resulted iin a net benet of $1.1 million over 5 years, an ROI in excess of 400%, and payback period of 14 months. Additiona nancia benets will be realized in excess of 400%, and a payback period of 14 months. Additionall nanciall benets will be realized shared service center / payments factory. factory. ctor with the s service NCL THE CONCLUSION CONCLUSION PETRONAS has achieved single channe and straight through processing with ts banks. Building on PETRONAS has achieved a single channell and straight through processing with iits banks. Building on this initia project, they have begun plans for shared service center and payments factory that wil be this initiall project, they have begun plans for a shared service center and payments factory that willl be WIFT using SWIFT as its messaging infrastructure. ve ur r d The above analysis was performed by Treasury Strategies, Inc. during the second quarter of 2007. Treasury e study, ase y r For more information on this case study, please contact Treasury Strategies at: Treasury info@TreasuryStrategies.com T easur r SWIFT ofce. info@TreasuryStrategies.com or your local S

Benets Components
Treasury FTE Growth Avoidance 14%

Increased Interest Earned 65%

Telex/Bank Processing Savings 19% Interbank Fees 2%

Breakeven Analysis
$1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00

14 mos.

2005

2006 Costs ($MM)

2007

2008 Benets ($MM)

2009

2010 0

About Treasury Strategies, Inc. Treasury r Treasury Strategies, nc. is the eading Treasury consulting rm working with corporations and nancia Treasury Strategies, IInc. is the lleading Treasury consulting rm working with corporations and nanciall institutions. Our experience and thought leadership in treasury management, working capital managens. dership treasury r rking management, liquidity and payments, combined with our comprehensive view of the market, rewards you with ment, liquidity and payments, combined with our comprehensive view of the market, rewards you with a unique perspective, unparalleled insights and actionable solutions. e nd

2007 Treasury Strategies, Inc.

SWIFT for corporates

32

Produced by: ThoughtwareWorldwide Focus: Swiss-Re

Corporate case study

Swiss Reinsurance Company Mythenquai 50/60 PO Box 8022 Zurich Switzerland Phone: +41 43 285 21 21 Fax: +41 43 285 2999 www.SwissRe.com SWX: RUKN Chief Executive Officer
Jacques Aigrain

Swiss Res Asset Management, Finance Zurich and Global Cash Management move to SWIFT for direct access to bank networkachieves more than 4x savings to original investment through better visibility and automation in a secure, harmonized solution
Executive Summary
Swiss Re is the worlds leading and most diversified reinsurer. The company operates through offices in over 25 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers financial services products that enable risk-taking essential to enterprise and progress. The companys traditional reinsurance products and related services for property and casualty, as well as for life and health business, are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management.

Chief Information Officer, Financial Services


Sylvia Steinmann

Chief Information Officer, Finance


Walter Engler

2006 Premiums earned 2005 Premiums earned


CHF 29,515 million CHF 26,891 million

Challenges with Previous Banking Infrastructure

Employees

10,891 (as of Dec 31, 2006)

Payback within 25 months1

ROI Study Highlights

~CHF 16,8 M (~ 10,6 M) Net Savings over five years

Before implementing the SWIFT platform, Swiss Re Asset Management (in 2001), Finance Zurich (in 2004) and Global Cash Management (in 2006) faced significant challenges associated with their previous bank communications infrastructure. To improve returns on equity during the critical After9/11 period, the firm had substantially increased its trading activity, a move that heightened the burden on internal processes and systems. In 2000 Swiss Res Asset Management team made a decision to consolidate and centralize its back-office systems in order to improve its asset management steering based on world-wide consolidated information and to improve processes company-wide to drive greater productivity and standardization. This strategic direction of systems harmonization also created the opportunity to improve communication with banks and custodians which was, at the time, cumbersome and often delayed.

Objectives in Moving to a New Bank Communication Platform

Direct access to bank network Global harmonized reach Enable information integration Faster, more efficient and more secure Business groups Asset Management Finance (Operational Payments) Global Cash Management
1

Key Benefits

Study Scope

To address these shortcomings, Swiss Res Asset Management and Finance Zurich management teams made a strategic decision to consolidate their bank/custodian communications systems enabled by a single bank gateway, SWIFT. They began the process by establishing a clear set of objectives, including the following business priorities: Increase information flow and data quality by maximizing Straight Through Processing (STP) with custodians and banks Optimize business processes and increase visibility Create a timely, single view of all bank-related activities, enabling Swiss Re to move closer to the banks Leverage existing headcount and improve productivity while increasing trading and cash management activities

By moving to SWIFT, Swiss Re Asset Management and Finance now have direct access to the bank/custodian network enabling better communications, information quality and processes, scaling activities and resources without adding headcount, complexity or redundant data entry into multiple systems. 1

Based on sequencing of roll-out to CM/Finance

SWIFT for corporates

33

Financial Impact
Investment

Benefits

Breakeven
-Thousands14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000
2,000 2,000

Br e a k E v e n A n a l y s i s

-ThousandsCHF 25,000 CHF 21,430 CHF 17,850 CHF14,285 CHF 10,715 CHF 7,150 CHF 3,570 CHF 0

- 0

Year 0
*

Year 1

Year 2

Year 3

Year 4

Year 5

Costs

Benefits

Quantifying the SWIFT Investment Benefits Achieved from SWIFT Labor costs (33%)implementation, Increased visibility for better cash maintenance, staging and mapping pooling (~40% reduction); a sizable benefit (13% of overall study benefits) Other infrastructure (31%) is bureau given Swiss Res size costs for accessing the SWIFT network Increased visibility and action enables Combined SWIFT costs (30%) are working capital growth avoidance (78% membership fees (25%), traffic costs of total study benefits). Historically (3%), and BIC costs (2%). Swiss Res Swiss Re had been growing working high value, low volume drives the modest capital in excess of 15% year over traffic fees and its global reach and legal year model dictates the multiple BICs

SWIFT Breakeven Analysis Quick implementation, quick payback ~25months elapsed due to staged roll-out Scale, growth and efficiency as usage increases Over ~CHF 16,8 million (~ 10 million) in net benefits over five years Standards promoting reduced costs, improved business performance and overall economic value

Cumulative costs and benefits in dual currencyCHF and Euros

Scaling Scaling with more efficient processes. The previous approach would have constrained Swiss Res ability to keep up with the growth. With SWIFT, dramatic increases in volumes are not a problem and do not require additional headcount. Reconciliation Greater efficiency as trading activity increases, the SWIFT solution is helping improve trade processes (settlement, reconciliation and reporting) elimination or errors and redundancies in data entry.

Operational Impact

Summary
2006

+168% (Finance) +53% (AM) Growth

SWIFT Message 2005 Growth

2004

5000
Finance

10000

15000

SWIFT is helping Swiss Res Asset Management, Finance and Treasury realize its operational excellence goal by providing a single portal to the financial industry, enabling secure, reliable financial messages and payments with greater efficiency, and visibility.

Asset Mgmt

Trade Reconciliation

+78% Improvement
14

Pre SWIFT

Post SWIFT

This study is one of a series of investigations into the business value companies have derived from their investment in SWIFT solutions. It is intended to serve business executives and managers who are evaluating SWIFT solutions to improve the way they operate their business. This case study was commissioned by SWIFT, and is based on original research and analysis conducted by Thoughtware Worldwide, LLC., an independent research and information services firm. Thoughtware Worldwides research included on-site interviews with members of Swiss Res management team and reviews of company financial and planning documents. Information contained in this publication has been obtained from sources considered reliable, but is not warranted by Thoughtware Worldwide, LLC. or SWIFT, S.C.R.L. 2007 All rights reserved. For more information about this study, please visit www.ThoughtwareWorldwide.com or contact your local SWIFT office

About the Value Measurement Series

SWIFT for corporates

34

Produced by: SWIFT Focus: T-Mobile

Corporate case study

Case study

T-Mobile rationalises its electronic banking


Using SWIFT,T-Mobile can run a central platform with a single standard for every country and every bank for the first time.
Vice President Finance & Treasury, T-Mobile International

platforms using SWIFT and achieves 182% ROI

T-Mobile provides mobile Business challenges communications services to 103 Special e-banking systems in four million customers in 12 countries. countries led to high costs The company, established in Decentralised structure made it difficult to control payment flows 1999, is responsible for the mobile communication business of the Multiple banks and accounts at national level Deutsche Telekom Group and is wholly-owned by Deutsche Telekom AG.T-Mobile employs Benefits for T-Mobiles clients 55,000 people and had revenues Central platform with single standard of EUR 23.6 billion as of for every country and every bank September 2006.
Staff re-allocation, bank messaging system cost reduction, economies of scale Improved security and simplified compliance

T-Mobile uses SWIFT as its messaging platform to support an in-house bank and payment and collection factory, processing payments and statements for its European subsidiaries. Business challenges Before SWIFT, each national company had its own bank interfaces and formats. Across four countries, a total of 15 different systems were in place. The costs for operating and maintaining these interfaces were very high. The decentralised structure made it difficult for T-Mobile to control its payments flows and did not allow payment orders to be signed using distributed electronic signatures (first local, second central).

National companies
Local ERP (SAP) Local ERP (SAP) ... Local ERP (SAP)

T-Mobile International

Banks

In-house bank (SAP) Intranet International finance portal Alliance

National payment formats sent via FileAct using XML wrapper, without conversion cost Bank application acknowledgement received via FIN

SWIFT for corporates

35

Investment T-Mobiles investment includes SWIFT costs to cover: joining MA-CUGs (Member Administered Closed User Groups) infrastructure, consisting of Alliance Access and Gateway traffic, mainly FileAct files including direct debits. The other project costs include: project management to plan and deploy the infrastructure and SWIFT related part of the payments factory servers + operations, to run the SWIFT infrastructure, perform daily operations, maintenance, etc middleware enhancement to provide the connection to Alliance and allow FIN and FileAct messaging. Investment
Middleware 16% Joining 1% Servers + operations 46%

T-Mobile is able to achieve a payback on its investment in three years. In addition to the quantified benefits, T-Mobile can lower the risk of fraud because only group treasury can release payments, and now does so to fewer banks. Benefits
Cash management ops labour savings 16% Banking systems cost savings 35%

Future opportunities T-Mobile plans to further deploy SWIFT to enhance its payments factory by: bringing additional national companies on SWIFT looking at the opportunity of SEPA to harmonise payments and direct debit formats.

Solution overview Participant in MA-CUG Alliance Access and Gateway Bank statements received via FileAct in domestic or MT940/942 format Payment orders and direct debits sent via FileAct to bank partners

Transaction processing efficiencies 49%

Traffic 6%

Solution overview In March 2006, T-Mobile started the project to replace its multiple bank connections. The first country went live on SWIFT in February 2007, followed by two more countries in March and April. The central operation consists of a middleware product that provides an international finance portal to the subsidiary companies, an in-house bank running on SAP, and a SWIFT connection to its bank partners. Bank statements are received via FileAct in domestic or MT 940/942 format and processed into the various accounts held in the finance portal. The national companies can view their own accounts while group treasury can view all accounts. Payment orders and direct debit files generated by a subsidiarys SAP system are authorised by group treasury and sent via FileAct to the bank partners. An MT 199 message is received to provide a functional application acknowledgement.

Project 25%

Infrastructure 7%

About SWIFT SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect over 8,300 banking organisations, securities institutions and corporate customers in more than 208 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest. www.swift.com For more information please contact your SWIFT account manager or visit www.swift.com

Benefits for T-Mobile Generates operational and financial benefits for T-Mobile: Cash management operations labour savings: a higher degree of automation allows T-Mobile to re-allocate two staff equivalent Banking systems cost savings: using SWIFT, T-Mobile can retire 15 systems in four locations Transaction processing efficiencies from central operations lead to economies of scale and reduction in payment transactions costs. This translates into net benefits of EUR 4.5 million over five years and a financial return on investment (ROI) of 182%.
55616

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Contact us

Americas
Brazil Avenida Paulista, 1048 3 andar 01310-100 Sao Paulo SP T: +55 11 3514 9000 F: +55 11 3514 9001 SWIFT BIC: SWHQ BR RJ United States - New York 7 Times Square 45th floor New York, NY 10036 T: +1 212 455 18 00 F: +1 212 455 18 17 SWIFT BIC: SWHQ US 3N United States - San Francisco 50 California Street Suite 1601 San Francisco, CA 94111 United States T: +1 415 277 5401 F: +1 415 277 5403

Asia Pacific
Australia Suite 3202 AMP Centre 50 Bridge Street, Sydney NSW 2000 T: +61 2 92 25 8100 F: +612 92 25 8111 Peoples Republic of China Units 819 - 821 8th Floor No. 7 Financial Street Winland International Finance Centre , Xicheng District Beijing 100034 T: +86 10 6658 2900 Japan 2nd floor - AIG Building 1-3 Marunouchi 1-chome Chiyoda-ku, Tokyo 100 T: +81 3 5223 7400 F: +81 3 5223 7439 http://www.swift.com/jp SWIFT BIC: SWHQ JP JT Hong Kong 31/F One International Finance Centre 1 Harbour View Street Central T: +852 2107 8700 F: +852 2107 8733 SWIFT BIC: SWHQ HK HH Singapore Unit 16-02, 80 Robinson Road Singapore 068898 T: +65 6347 8000 F: +65 6347 8099

India Unit No.303, Ceejay House Plot No. F, Shivsagar Estate Dr. A.B Road, Worli Mumbai 400018 T: +91-22-6615 6971 F: +91-22-6615 6974

Europe-Middle East-Africa
HQ & Belgium Headquarters Avenue Adle 1 B-1310 La Hulpe T: +32 2 655 31 11 F: +32 2 655 32 26 SWIFT BIC: SWHQ BE BB France Opera Trade Center 4 rue Auber 75009 Paris T: +33 1 53 43 23 00 F: +33 1 53 43 23 90 Germany 20th Floor, City-Haus I Friedrich-Ebert-Anlage 2-14 60325 Frankfurt am Main T: +49 69 7541 2200 F: +49 69 7541 2290 Italy Corso G. Matteotti, 10 20121 Milano T: +39 02 7742 5000 F: +39 02 7742 5090

South Africa Unit 18, 2nd Floor 1 Melrose Boulevard Gauteng 2076 T: +27 11 250 5346 F: + 27 86 644 4670

Spain Edificio Cuzco IV Paseo de la Castellana 141, 22A 28046 Madrid T: +34 91 425 1300 F: +34 91 425 1310

Sweden Oxtorgsgatan 4, 7th floor Stockholm T: +46 8 508 95 300

Switzerland Freischtzgasse 10 8004 Zurich T: +41 43 336 54 00 F: +41 43 336 54 10

United Arab Emirates DIFC - The Gate Village 5 Level 1 P.O.BOX 506575

Dubai Tel: +971 4 425 0900 Fax: +971 4 425 0160

United Kingdom 7th floor, The Corn Exchange 55 Mark Lane London EC3R 7NE T: +44 20 7762 2000 F: +44 20 7762 2222 SWIFT BIC: SWHQ GB 2L

SWIFT for corporates

37

Notes

SWIFT for corporates

38

Notes

SWIFT for corporates

39

Notes

SWIFT 2009

55586 - MAR 2009

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