Video/Presentation: http://www.proformative.com/events/working-capital-success-guide-leveraging-technology-effectively-increase-value-cash Board level executives are more focused on the treasury and working capital management functions than ever before. CFOs and Treasurers are scrambling to improve the timeliness and accuracy of their business information in order to more proactively pinpoint risks and potential shortfalls that could knock them out of business, or to successfully identify safe opportunities for investment income when surpluses are found. These executives are taking active steps to improve their working capital metrics and short term liquidity performance, and to minimize their risks throughout this historically unprecedented era of low interest rates and restricted banking liquidity. In this session, you will hear how Finance Executives are able to leverage technology to deliver greater visibility to their true cash position and better control over the complex processes associated with managing payments, collections, cash, liquidity, and risk. Speakers: Craig Himmelberger, Director of Solution Marketing, SAP Treasury & Risk Management Solutions Steve Pateuk, Director of Strategic Alliances & Business Development, Ariba Presentation delivered at CFO Dimensions 2013 - http://www.cfodimensions.com Track: Finance Technology | Session: 2

1. 1© 2013
The
Working Capital
Success Guide
Leveraging Technology to Dramatically Shorten the
Cash Conversion Cycle & Increase Return on Cash
Craig Himmelberger, Director
SAP Treasury Solution Marketing
craig.himmelberger@sap.com
Steven Pateuk, Director
Ariba Channels Marketing
steven.pateuk@sap.com

2. 2© 2013
“Working Capital Performance Deteriorates in 2012…
• Opportunity now tops $1 trillion – Hackett Group
• Working capital +6% last year, and +25% over the last 3 years

3. 3© 2013
Volatility and restricted liquidity have companies in a vice
• Companies need better cash visibility and forecasting
• Companies need better control over payments and collections

4. 4© 2013
Companies gain by connecting Treasury and Operations
• Working Capital systems can better inform cash planning
• Better cash information enables better business decisions and actions

5. 5© 2013
Suppliers
Receivables
Buyers
Payables
Treasury Department
Financial Risk
Management
Debt / Investment
Management
Cash
Management
BanksBanks
Payables Receivables
Payments Receivables

6. 6© 2013
Suppliers
Sales
Order Mgmt.
Receivables
Buyers
Sourcing
Procurement
Payables
Treasury Department
Financial Risk
Management
Debt / Investment
Management
Cash
Management
BanksBanks
Payables Receivables
Payments Receivables

7. 7© 2013
SAP and Ariba Business Performance
Benchmarking – By the Numbers
 Established end of 2004
 Complimentary service
 Available to SAP and non-SAP customers
Overview
Reach
Content
Coverage
 Over 15,000 participants from over 4,000 companies
 Global in scope
 Partnerships with ASUG and other user groups
 Studies available in 12 languages
 Over 50 business process assessments
 Over 1,200 KPIs, over 5,000 Best Practices
 Over 300 peer groups

8. 8© 2013
Percentage of companies with online
forecasting models that regional and global
organizations use to analyze current and
historical cash flow trends
Source: SAP Performance Benchmarking
Better visibility and forecasting of cash enables
companies to stay ahead of volatility and take
control of their liquidity and business planning.
Companies are always seeking more accurate and timely
information in their cash reporting and liquidity planning
Traditional cash management systems are not well-integrated to
operational business systems where better information exists
Working capital decisions often have to be made with absent,
imperfect, or inaccurate business information
13%

9. 9© 2013
Savings compliance & discount opportunity
capture when invoice processing is automated
and finance operations & treasury share
networked data collaboratively
Source: Ariba Performance Benchmarking
Strategic utilization of working capital enables
companies to finance operations at lower costs
and with better returns.
It’s estimated that for every billion in revenue, companies
maintain an average of $126M in excess working capital. Hackett Group
Confident and reliable liquidity projections can be used to drive
systematic discount capture and optimize collections
Companies can finance improvements via procurement savings,
increased investment income and reduced borrowing costs
95%

10. 10© 2013
The Rise of the Networked Economy

11. 11© 2013
Businesses Struggle with Collaboration
© 2013 Ariba, Inc. All rights reserved.11
Wasted Time and Resources
Higher Operating and Supply
Chain Costs
Missed Sales Opportunities
Manual Paper-based
Collaboration
Point to Point EDI, Portals &
Single Process Solutions
Delayed
Payments, Overpayments, and
Missed Discounts, Slow Cash
Flow
Limited Visibility and Elevated
Risk
Buyers Suppliers

12. 12© 2013
“65% of Best in Class companies have the capability to effectively collaborate
with their network of suppliers versus only 21% of laggards. ”
SuppliersBuyers
Business Networks Facilitate Collaboration
Between Trading Partners and Between Silos

13. 13© 2013
Take Advantage of Working Capital &
Dynamic Discounting Opportunities
Significantly Increase supplier participation by in early
payment discounting.
Capture existing discounts currently missed due to
inefficient processes
Achieve greater return on short term cash invested in early
payment
Improve working capital metrics of DPO and/or DSO
$2+m Discount savings per $1 Billion spend
Source: Ariba Performance Benchmarking
Better Working Capital & Discount Management
Benefits

14. 14© 2013
Establish Collaborative Finance Processes
Reduce exceptions and improve efficiency of and visibility
into financial processes.
Take advantage of new early payment discount opportunities
to increase savings and return on cash.
Improve working capital performance through increase DPO
and reduced DSO.
Capture negotiated contract savings leakage through
automated, networked compliance to terms.
$10m
Savings per $1 Billion spend captured by
automating the invoice to pay process
Source: AribaPerformance Benchmarking
Better Collaborative Finance Management (AP/AR)
Benefits

15. 15© 2013
Intercompany
Connectivity
And Other
Network
Adapters
CXML
EDI
Supplier
Portal
Paper
Invoice
Suppliers
Sales
Order Mgmt.
Receivables
Buyers
Sourcing
Procurement
Payables
Payables Receivables
Treasury Department
Financial Risk
Management
Debt / Investment
Management
Credit Mgmt.
Collections &
Dispute Mgmt.
Cash
Management
Bank
Communication Mgmt.
In-House Banking
BanksBanks
Payments Receivables

16. 16© 2013
Award Winning Approach…
 Best Working Capital / AP/AR Solution
 Best Cash Management Solution
 Best Process Re-engineering Solution

17. 17© 2013
Proven Benefits of Networked Collaboration
>4,500 global suppliers networked enabled
98%+ touchless invoicing -- integrated with
8 ERP systems worldwide
96%+ on-time payments – and enhanced
discount capture
75%reduction in AP costs
Global VAT and regulatory compliance – incl.
in China
>4,000 suppliers
network enabled
>500,000 electronic
invoices/yr. – integrated with 7 ERP
systems globally
70% global invoice volumes
moved from paper to electronic –
incl. non-PO
>30% reduction in BPO costs

18. 18© 2013
Driving Business Results via Intelligent
Treasury And Working Capital Management
Control Predict Execute
Know your accurate global cash
position and all anticipated
sources and uses
Dynamically maintain reliable
liquidity forecasts to turn
insight into action
Increase the effectiveness of
payment and collections from
action to accounting
Include full sourcing and sales
order data in all cash and
liquidity reporting and analysis
Use liquidity projections as a
basis for all working capital
policies and decisions
Minimize wasted working
capital and fully exploit it as a
source to fund operations

19. 19© 2013
Thank You!

20. 20© 2013
Ariba
Network
Adapter
CXML
EDI
Supplier
Portal
Paper
Invoice
Suppliers
Sales
Order Mgmt.
Receivables
Buyers
Sourcing
Procurement
Payables
Payables Receivables
Treasury Department
Financial Risk
Management
Debt / Investment
Management
Credit Mgmt.
Collections &
Dispute Mgmt.
Cash
Management
Bank
Communication Mgmt.
In-House Banking
BanksBanks
Payments Receivables

21. 22© 2013
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