José-Carlos Cuevas

Regional Treasurer Europe

ASSET VP & EACT Officer

5 March 2013

Corporates & Banks

SWIFT Business Forum – Madrid 2013

SWIFT 2013 SWIFT 2013

Three main activities

Bank relationships - 2013

ALSTOM Corporate Funding & Treasury

Scope covered

Funding and Treasury is a support function part of Corporate Finance. Its main responsibilities are to provide the funding for the Group (for acquisitions for example) and to ensure that each and every unit of the Group has the adequate financial means (cash, FX, Bonds and Guarantees…) to perform its activity, as such Corporate Treasury acts as an internal bank. Corporate Treasury regroups experts located in Levallois or in one of our 6 regions, close to the businesses. In addition to its support function, Funding & Treasury is also directly responsible for the Group financial P&L and for the financial debt/cash.

Regional Treasuries

Regional Treasuries are now part of Corporate Treasury 6 Regions; Europe, N. America, S. America, Africa Middle East, Asia & China Move from a Corporate Treasury / Country Finance / Country Treasuries/ Units organisation to a direct Corporate Treasury / Units organisation Corporate Treasury presence in the time zone Mutualisation at the region level of country treasury teams and experts Process and tools harmonisation to remove manual tasks and avoid parallel work

Re-boost treasury function

Treasury as a profit center

Treasury has its word to say to improve the global profitability of the company

Actions on financial cash management: − Decreasing cost of funds − Increasing investments profitability − Reducing third party cash

Actions on operating cash management:

− Netting & matching policies − Transactions fees − Fixing bank negotiation guidelines − Looking for the most efficient means of payment

Actions on headcount::

− Efficiency − Talented people − Reducing administrative workload − Outsourcing

RFP- Key Objectives

The purpose of a RFP should be to secure the best combination of effective, economical, innovative and well-managed banking services, products and technology to support cash management, payroll, accounts receivable and accounts payable activities. In addition to evaluating and improving the existing banking capabilities and services, a key objective of this RFP is to also explore ways to integrate cash management activities between different countries.

Key objectives of this RFP are as follows:

1) Improvement of the banking structure to gain better efficiency and reduce accounts (if appropriate) 2) Automation of cash pooling and positioning with the utilization of a third party treasury work station (Intra day MT942 and

prior day MT940 must be available) 3) Reduction of banking fees 4) Selection of a banking provider with strong customer focus, regular client communication (including on-site visits), and

advisory capabilities Banks bidding on these activities should understand that Corporate’s goal is to consolidate banking relationships where possible.

Should a single bank provider prove not to be optimal, then a multiple bank solution will be considered.

Bank relationships - 2013

SWIFT 2013 Re-boost treasury function

Former treasury work flow

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Gestión de la Tesorería

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Standardised content End-to-end STP

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Zero Balance cash pool (one cash pool per currency)

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SEK

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EUR

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SEK

USD

EUR

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SEK

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EUR

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SEK

Physical transfer of funds at end

of day to put accounts to zero

Currency Top Accounts

Transaction

Accounts

All cash in & out movements take place on these bank accounts

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Balance Netting - multi-currency cash pool

EUR

DKK EUR NOK

Multi-currency credit facility in EUR

NOK DKK EUR SEK EUR DKK NOK SEK

SEK

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Master account (cover control)

Currency top accounts (legal)

Currency summary accounts (optional)

Transaction accounts

Summary account

Transaction accounts

DKK EUR SEK NOK

SWIFT 2013

About SEPA The regulation

• SEPA aims to establish a single market for retail euro payments by overcoming the technical, legal and market barriers stemming from the period prior to the introduction of the single currency. This will allow customers to make euro payments throughout Europe as easily, securely and efficiently as they do today within their own countries. Once SEPA has been completed, there will no longer be any differentiation between national and cross-border euro payments: they will all be domestic

• 20 December 2011; Commissioner Michel Barnier welcomes agreement by Council and Parliament establishing SEPA migration end-dates

• 28 February 2012; Council adopts regulation on credit transfers and direct debits and sets 1 February 2014 as the migration deadline for credit transfers and (in respect of most requirements) for direct debits.

SWIFT 2013

About SEPA Countries involved

• SEPA consists of the 27 EU countries (including the Euro 16 countries) and the additional 3 EEA, European

Economic Area, countries (Iceland, Norway, Liechtenstein), Switzerland & Monaco.

Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Italy Latvia Liechtenstein Lithuania Luxembourg Malta Monaco Netherlands Norway Poland Portugal Romania Slovakia Slovenia Spain Sweden Switzerland United Kingdom

SWIFT 2013

About SEPA Alstom impacts / objectives

• Alstom countries & offshore bank accounts under SEPA umbrella need to be compliant for February 2014 - It affects ALSTOM in 24 countries (12 € countries)

• As Alstom doesn’t use SEPA Direct Debit, “Be compliant” means:

1. Adequate the content of the ERPs & Payroll tools databases

• Make sure that BIC & IBAN data exist for all suppliers and employees.

2. Use the right layout to manage payments : SEPA CT (basically XML ISO 20022 pain 3) • The format is acceptably fixed and tested with most of our banks and has been piloted via the e-

banking project for certain group ERPs.

SWIFT 2013

SEPA Project risks

Banks availability regarding tests as far as all their Corporate customers will be asking for the same at the same time

SEPA compliance strongly depends on implementing some key ERPs in some countries. A delay in these project will strongly impact SEPA project

Some domestic tools could not have BIC and IBAN fields in their databases

Some domestic tools could not be able to manage SEPA CT layout (XML ISO20022 pain 3) – e.g. SAP release 4.6 no longer support by the editor

Some existing banks are not ALSTOM friend banks and we will need to change them before SEPA go live.

New domestic Central Bank reports to be implemented before SEPA end date for cross border transactions (Portugal, Germany, Spain)

Some BICs and IBANs could change during the project because of banks merging projects (new check just before go live)

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