Restructuring Treasury EBNDACT Treasury BeursNoordwijk, 11 November 2011
Jeroen Piket, [email protected]
EBN B.V.Moreelsepark 483511 EP Utrechthttp://www.ebn.nl
EBNGeneral
• Wholly state owned company managing exploration, production, storage and sale of Dutch State’s oil and gas reserves, on-shore and off-shore
• EBN participates in any license to explore and produce Dutch territorial gas and oil reserves (EBN share appr. 40%)
• Currently approximately 176 partnershipswith oil & gas companies
• Investment and costs are shared pro rataparte and partners separately sell their share output
• EBN key figures 2010Sales € 6.5 billionNet profit € 2.1 billionCapital expenditure € 607 million
EBNIn 2011
• 5% increase in number of participations in exploration and production partnerships
• Capital expenditure € 800 million (EBN share)
• Further focus on development unconventional gas projects (shale gas)
• Reactivation of on-shore oil production in Schoonebeek
• Development underground gas storage Bergermeer
EBNFunding
• Strong credit profile, stable Aaa/AAA rating, despite low equity base and high leverage
• Funding sourcesShort term: commercial paperLong term: loans and bonds (a.o. CHF public bonds,
JPY private placements)
• Highly seasonal working capital flows a.o. following large production volumes in winter, low volumes in summer
EBNTreasury restructuring - background
• EBN’s Treasury historically 100% outsourced
• Decision to set up own EBN Treasury taken in
2008/2009 with targeted live date 1 July 2010
Therefore:
• Treasurer and Cash manager hired as per 1 October 2009
• Treasury accountant hired as per 1 November 2009
EBNTreasury restructuring - scope
Scope of the project• Education new Treasury staff• Selection treasury management system (TMS)• Implementation TMS• Selection and set up other Treasury infrastructure
• Market data (Reuters)• Counterparty risk tools (Moody’s Market Implied
Ratings)• Electronic banking• Trading portals (360T and MyTreasury)
• Implement new dealing mandate structure• Establish new Treasury Policy
EBNTreasury restructuring - scope
Scope of the project• Education new Treasury staff• Selection treasury management system (TMS)• Implementation TMS• Selection and set up other Treasury infrastructure
• Market data (Reuters)• Counterparty risk tools (Moody’s Market Implied
Ratings)• Electronic banking• Trading portals (360T and MyTreasury)
• Implement new dealing mandate structure• Establish new Treasury Policy
EBNTreasury restructuring - project organization
• Project manager (Treasurer), Cash Manager, Treasury accountant
• Steering group
• EBN Board
• Consultancy (Zanders, E&Y)• to EBN board prior to 1 October 2009• During project: TMS-selection only• Pre-live review
• Also involved: Legal, ICT
EBNSelection EBN TMS
• Business case: description of EBN processes, EBN
system infrastructure etc.
• Translate this into TMS requirements
• Request for proposal to three pre-selected vendors
• Response vendors / demonstrations
• Three reference visits
• Evaluation, scoring, selection, decision
• EDP audit @ vendor
• Contract negotiation
EBNSelection EBN TMS
• Business case: description of EBN processes, EBN
system infrastructure etc.
• Translate this into TMS requirements
• Request for proposal to three pre-selected vendors
• Response vendors / demonstrations
• Three reference visits
• Evaluation, scoring, selection, decision
• EDP audit @ vendor
• Contract negotiation
EBNEBN’s TMS criteria related to• Forecasting
• Cash management
• Implementation
• Pricing
• Reporting
• Deal capturing
• Security
• Static data management
• Support
• Accounting
All of this in a context of single entity company, with large transaction sizes of all natures, but low transaction volumes
EBNImplementation Bellin tm5 at EBN• Set-up / training / portfolio input:
• Set up of System settings (master data, entities, counterparties, users, rights, bankaccounts, currencies, etc.: 2 days
• Configuration and Setup of TT Contract, configuration of LMCash and LMStatus: 2 days, followed by entry ytd transactions
• Setting up and using LMPlanning: 2 days @ vendor• Configuring TTRiskWatch training (scenario analyses): 2
days
• Testing, problem solving2 weeks
• Pre-live review by E&YWith scope system access and authorization levels in Bellin, electronic banking systems, trading portals: 3 days
• Go-live
EBNImplementation Bellin tm5 at EBN• Set-up / training / portfolio input:
• Set up of System settings (master data, entities, counterparties, users, rights, bankaccounts, currencies, etc.: 2 days
• Configuration and Setup of TT Contract, configuration of LMCash and LMStatus: 2 days, followed by entry ytd transactions
• Setting up and using LMPlanning: 2 days @ vendor• Configuring TTRiskWatch training (scenario analyses): 2
days
• Testing, problem solving2 weeks
• Pre-live review by E&YWith scope system access and authorization levels in Bellin, electronic banking systems, trading portals: 3 days
• Go-live
2 mo
nth
s
EBNWhat do we have now
A system that facilitates:
• Cash planning with a.o. upload from G/L
• Cash reconciliation
• Cash positioning
• Deal capturing
• Reporting
• MtM valuation
• Scenario analyses
• Integrated market data (yields, exchange rates)
• On-line internet access (system is hosted by vendor)
EBNWhat did we choose not to implement
•Direct feed of bank statements (Swift MT940)
•Interface to accounting system
•Netting (not applicable)
•Interface with payment systems
EBNLessons learned
• Understand your needs and focus on what you really need
• How much flexibility do you need?
• Focus on standard functionality
• Include case-studies in the RfP’s
• Reference visits
• Create broad awareness of planning in organization and stick to it
• Search for the best fit, not necessarily for the best system
• Stay hands-on involved in implementation process, limit consultants’ work as much as possible to advice
EBNQuestions
