Kerry Runs Simple
Trevor Horan Kerry Group Liz Smith SAP Global Treasury
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Kerry Group
3 © 2015 SAP AG or an SAP affiliate company. All rights reserved.
Facts and Figures
KERRY WORLDWIDE LOCATIONS SALES BY REGION 2014
» Revenue €5.8bn
» Listed on both the Irish and London Stock Exchanges
» Sales to 140 countries
» 130 producNon faciliNes in 24 countries
» 24,000 employees
Note: * As at 05-‐08-‐2014
Head Offices Manufacturing Plants Sales Offices
EMEA 53%
Asia-‐Pacific 14% Americas 33%
Ingredients & Flavours €4,347m Consumer Foods €1,509m
Ingredients & Flavours €593m Consumer Foods €125m
Consumer Foods 26%
Ingredients & Flavours 74%
Consumer Foods 19%
Ingredients & Flavours 83%
REVENUE 2014 TRADING PROFIT 2014
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Kerry Old Situation: Intercompany payments Kerry Pre SAP In House Cash - Manual Netting Process
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Head office
Manual Netting Process
145 Sites
600k ICO Transactions
800 High Value Internal Payments -
Value EUR 4bn
Subsidiary
Subsidiary
5 © 2015 SAP AG or an SAP affiliate company. All rights reserved.
Subsidiary
Subsidiary Subsidiary
Subsidiary Subsidiary
Subsidiary
Internal netting via IHC without external Payments (besides funding of internal accounts)
External Payments
New Solution: Intercompany payments with SAP IHC External I/CO payment transactions are changed into internal posting transactions…
. . . the transactions change balances of internal accounts with Kerry IHC Bank
6 © 2015 SAP AG or an SAP affiliate company. All rights reserved.
Kerry Group Financial Services
USD Header A/C London
Euro Header A/C London
GBP Header A/C London
Ingredients & Flavours,
Kerry Foods, Agri
USD A/C’s
CAD Header A/C London
AUD Header A/C London
DKK Header A/C London
Other Header A/C London
Ingredients & Flavours,
Kerry Foods, Agri
Euro A/C’s
Ingredients & Flavours,
Kerry Foods, Agri
GBP A/C’s
Ingredients & Flavours,
Kerry Foods, Agri
CAD A/C’s
Ingredients & Flavours,
Kerry Foods, Agri
AUD A/C’s
Ingredients & Flavours,
Kerry Foods Agri
DKK A/C’s
Ingredients & Flavours
Kerry Foods Agri
Other ccy A/C’s
Top Level Cash Pooling
• EMEA pool with Citi will consist of 40+ entities and 100+ bank accounts through KGFS
• North America – Physical pooling with BOA in place
• APAC – 8 currency MCNP in Singapore with JP Morgan
7 © 2015 SAP AG or an SAP affiliate company. All rights reserved.
Treasury Applications in SAP
FSCM
TRM
IHC
CLM
BCM
SAP Treasury and Risk Management Risk Analyzers
Credit Risk Analyzer Market Risk Analyzer Portfolio Analyzer
Exposure Management Hedge Management
Transaction Manager Money Market
Foreign Exchange Deri-vatives Debt Mgmt Securities Com-
modities
SAP Cash and Liquidity Management Cash Management Liquidity Planning
SAP In-House Cash
SAP Bank Communication Management
The following Treasury roles use the SAP IHC & BCM modules:
- In-House Cash Analyst - Payments Processor / Payments
Approver
The In-House Cash module in SAP is used to perform In House Banking
activities
The Bank Communication Management module in SAP is used to streamline
electronic communications with our Banks
In House Cash & Payments
8 © 2015 SAP AG or an SAP affiliate company. All rights reserved.
In-House Cash Process
SAP In-House Cash
Intercompany Netting & Settlement Interest Calculation Bilateral & Syndicated
Facilities Treasury POBO
Inter Company Netting and
settlement (where required), for
balances between the IHB and Group
subsidiaries
Interest calculation for the positive /
negative balances on respective IHC accounts with the
subsidiaries
Group Treasury provide inter-
company loans to subsidiaries but the source of funds will
be an external facility agreement
with a bank
Limited ‘payments on behalf
of’ (POBO) will also be routed through
the IHC setup
9 © 2015 SAP AG or an SAP affiliate company. All rights reserved.
We practice what we preach SAP Group Treasury runs SAP Treasury Solutions
EMIR: SAP Global Treasury leverages SAP’s treasury solution for Central Reporting of all SAP group treasury activities and collects data
that have to be sent to the transaction register at “t+1” automatically
“By bringing intragroup payments in-house with SAP In-House Cash, we
have been able to reduce bank fees, minimize costs associated with
foreign exchange rates, and significantly lower our risk as an
enterprise operating globally”
� Payment Factory with Global Formats for payments/ reporting. Automated 24x7 posting of p.a.
> 800.000 payments > 100.000 bank account statements > 800.000 statement transactions for
> 250 subsidiaries globally > 700 bank accounts globally
10 © 2015 SAP AG or an SAP affiliate company. All rights reserved.
Treasury and Financial Risk Management An embedded Treasury Platform on premise and in a private managed cloud
Market Places
SAP
Banks
SAP Treasury Solution
AP/AR
HANA Platform + New Accounting (Simple Finance Add On)
Market Data
Others …
Central Exposure Hub
• Payments • In House Banking • Bank Statements • Monitoring • Status Management • Signatory
Payments & Bank Communication
Debt and Investment Strategies | Financial Risk Management
� Limit Managment � Exposure Management � Hedge Management � Risk Management
� FX Management � Debt Management � Investment Management � Correspondence Framework
Cash & Liquidity Management
• Cash Operations • Bank Account Management • Cash Forecasting / Planning • Simulation
SAP ERP
SAP HANA Trade Repository
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SAP Cash Management powered by HANA
Centralized Cash Management
� Cash Operations for the day to day management
of the corporates working capital cash
� Monitoring incoming bank statements
� Preparing a daily forecast of cash receipts,
disbursements and expected closing balances
� Overseeing bank risk
� Initiating bank transfers and payments
� Approving and monitoring payments
12 © 2015 SAP AG or an SAP affiliate company. All rights reserved.