Swift for Corporates Overview

7/30/2019 Swift for Corporates Overview

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SWIFT for corporatesClient or event

SpeakerDate Month Year


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Presentation title - Event - Date Month Year 2

Agenda

Your challenge our solution

SWIFT for corporates

New Services

Business case Case studies

Your SWIFT project

More info?


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Corporate Treasury drivers

StandardisationRationalisation

Automation

Security

Manage liquidity

Visibility to global cashAbility to reach all banks

Risk

Compliance

Regulators (SOX, SEPA)

Internal controls

Technology

Web (IP)

Efficiency

ProductivityWorking capitalInfrastructure


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Corporate

Accountspayable

Accountsreceivable

Treasury

Other

Standardisedgateway

SWIFT: a single, standardised gateway

Corporate

e-banking Y

host to host X

e-banking Z

VAN

Internet

Leasedline

Accountspayable

Accountsreceivable

Treasury

Other

Multiple bank channels Single, standardised gateway

Global visibility on cash

Lower cost

Increased control and security

Reduced risk

High cost

No global visibility on cash

Impossible to centralise


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Global visibility on cashBetter visibility on global cash allows reductionof borrowing cost, optimisation of un-investedcash and avoidance of working capital growth

EUR 10 mill ion in net benefit at Swiss Re

30% volume increase perresource at GE

8 extra staff avoided at Petronas

Cost reduction / avoidanceAutomation leads to staff productivity increase,re-allocation and growth avoidance

15 systems retired at T-Mobile

25 systems retired at DuPont

40 systems retired at Arcelor

Cost reductionRationalisation of electronic bank messagingsystems at EUR 5,000 to 20,000/year each

Benefits of using SWIFT - examplesCase studies available from swift.com/corporates


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What corporates on SWIFT value most

reach all our banks directly,

with the highest securityHead of Treasury Control and Reporting, Novartis

achieve all objectives

of our treasury

centralization projectHead of Treasury and Risk Management,

Iberia

run a central platform

with a single standard for

every country and every bank

VP Finance & Treasury, T-Mobile International

build one central

source of truth

for banking dataGroup Manager, Treasury,

Microsoft

We took

SWIFT

to

have a standard

and reliable process

with all our banks

Group Treasury, Petronas


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Financial Crisis - Value for SWIFT and

priority on treasury projects

Where is

my cash?

Can I move

my cash?

Can I

reach allmy banks?

MT 940 MT 101 Multi-bankgateway

7


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8

Corporates on SWIFT

Where do we stand today ?

2006 2007 2008 2009 Q1 2010

282

402

565600

#registered corporate entities Geographical split

EMEA

Americas

69%

20%

Asia Pacific

11%

181


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Management consultancy firms

Connectivity: Lite, SBs, Member

concentrator

ASP

Adoption

Expansion

MarketPlayers

Specials

ISO20022 (XML) SEPA & PSD

FileAct

Industry dimension: uti lities and

governmental bodies

2003: 12

2007: 105

2009: 391

Mid caps

Where do we stand: EMEA

Sustained growth although early adopter

markets roll out New: Middle East, Nordics

9


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Direct connectivity

New: management consultancy f irms

ASP offering: coming

Bank readiness: improving

Adoption

Expansion

Actual adoption of ISO20022 (XML) for

reporting & payment

2003: 4

2007: 45

2009: 110

Mid caps

North America: Western coast

Latin America: Brazil, Peru, Colombia

Where do we stand: Americas

10

MarketPlayers

Specials


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Global banks expand their SWIFT offering

Local banks joining the club

Speed

Lite for all: first step to SWIFT

Adoption

Expansion

Education and awareness

High interest for SWIFT Trade solutions

2003: 0

2007: 22

2009: 64

Large

Korea

Hong Kong, India, China

Where do we stand: APAC

11

MarketPlayers

Specials


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Agenda



New Services


Your SWIFT project

More info?


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About SWIFT

A

co-operativeorganisationserving thefinancial

industry

A

provider ofhighly secure

financialmessaging

services

Thefinancial

standardisationbody


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Business standards

ERP

The solution a collaborative partnership

Middleware SWIFTNet

ERP(s)ERP(s)

TreasuryWorkstation

BanksPartners SWIFT or

partners

SWIFT

SWIFT and standards bodies


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Financial services, provided by banks

Treasury Management Monitor accounts and obtain global visibility on

cash by integrating end-of-day and intra-daystatements into treasury systems

Manage liquidity and pool cash company-wide,

by sending payment orders Financial risk management, by exchanging FX

confirmations and matching them

Invest surplus cash

Cash Management

Run payment / direct debit factory to paysuppliers, debit customers, pay salaries, and receive account statements and advices

ACH payments, disbursement files, check files

Additional services Electronic Bank Account

Management (EBAM)

Personal Digital Identity

Exceptions and

investigations Trade finance


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Standards and SWIFTNet messaging

Standardsand formats

SWIFTNetmessaging

FIN FileAct InterAct

SWIFT MTs ISO 20022Domestic formats

ISO 20022

MT 101 for high valuetreasury payment

MT 940 with end-of-dayaccount statement

MT 300 FX confirmation

Example ACH files Supplier payments

Direct debits

Salary payments

Exceptions & investigations

Typicalapplication

Treasury andRisk

Management

CashManagement

Exceptions andInvestigations


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Alliance Lite

Large corporate (500 million1 bn turnover)+/- 200 transactions/daySimple solution

Internet

Direct connection

Global corporate (25+bn turnover)Millions payments/yearManage your own SWIFT connection

Indirect connection

Very large corporate (125 bn turnover)Hundred thousands payments/yearOutsource SWIFT connection Service bureau or

Member/Concentrator

VPN

Internetor VPN

Web server

Work flow

SWIFTAlliance

SWIFT

Network partners

VPN

Connectivity options, adapted to your needs

VPN


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Back-office integration

Do it yourself

Or, choose an application that is SWIFTReady for corporates

Several vendors have SWIFTReady middleware

You can also be helped in your feadsibility and/orimplementation by knowledgeable business consultants. Watchthe SWIFTReady Consultancy label.

See swift.com


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Agenda



New Services


Your SWIFT project

More info?


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Electronic Bank Account Management (EBAM)

Project objectives

20

Fax

Paper

Today Tomorrow

Faster/cheaper Standardised

DematerialisedAutomated/STP

XML messagesSupporting documents

Personal Digital Signature

Corporate

Bank

Corporate Bank

Low satisfaction Expensive

Low integration Slow


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Improved control , reduced errors

Improved process follow-up

Improved customer service

Standard for all banks

Standard for all customers

Straight Through Processing

Time saving

Cost reduction

Electronic Bank Account Management (EBAM)

Benefits


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22

Electronic Bank Account Management on SWIFT

SWIFT solution 3 layers

Messaging service - FileAct

Headerspecifications

(ACMT)

Attachmentsenabled

Multi formats

Namingconvention

Personal Digital SignatureTechnical specifications

Sign a XML

Signattachments

Transportcertificates

XML ISO messages

15 msges18 businessscenarios


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Personal Digital Signature

Current Landscape The Corporate View

No uniform mechanism

Different system per bank

Costly & difficult to maintain

Corporate-to-Bank Digital Identity Theory vs. Practice (March 2010) 23

We have !!! We want


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Solution for Personal Digital Signature

24

45678

Bank A Bank B Bank C

CorporateRepresentative

InternetSWIFTNetProprietaryeTokens with

credentials

Multi-bank

Multiple channels

Solution Benefits

Why SWIFT

Convenience

Reduced risk &costs

Standardised

industry solutionTrusted, neutral

provider

Shared investment

Corporate

Bank

Lower costs

Timelines

Q110 - Development

Q210 - Piloting

Q310 - Launch of service

Improvedsecurity

Personal Digital Identity Overview (Feb10)


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Personal Digital Signature: Key Benefits

25

Interoperable solution

Global usage

Central Certification Authority

Anonymous certificates

One signing mechanism

Secure infrastructure

Local Requirements

SWIFT support

Multi-bank / Multi-application / Multi channel

Local & international bank relations

SWIFT issues credential / each bank makes association

Only bank knows user behind the certificate

Uniform processes @ corporate / central revocation function

Re-use of interbank PKI / Qualified eTokens

Software certificates / local standards / national regulation

Token installation / vendor engagement

Corporate-to-Bank Digital Identity Theory vs. Practice (March 2010)


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Agenda



New Services

Business case

Case studies

Your SWIFT project

More info?


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Making your business case

Costs

Operationalbenefits

Project typicallypaid back 2 x

by operational benefits?

Additionalbenefits

Better security,more control,

difficult to quantifybut can be key

driver

Business

case

Financialbenefits


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SWIFT costs:

as of 15 KEUR / year

Integration costs

Total cost of ownership

ERP

Middleware SWIFTNet

ERP(s)ERP(s)

TreasuryWorkstation

Depends on size of corporate, type of connectivity,volume of transactions

Registration: 2 KEUR/year Connectivity

- Direct: 50 KEUR one-time +19.4 KEUR/year

- Service Bureau: 15 55 KEUR/year (see provider)- Alliance Lite

Traffic- FIN MT: 6 20 eurocent- Payment in FileAct: 0.1 0.03 eurocent

Alliance Lite: KEUR 10 KEUR/year, incl. registration,connectivity, up to 200 items in/out per day

Includes servers or PCs and operations

Back-office application integration Middleware enablement Project


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Benefits can be quantified

Operationalbenefits

Staff reduction, reallocationand/or growth avoidance

#FTE * cost per FTE

Bank systems retirementand/or growth avoidance

#systems * 5 to 20 KEUR

Financialbenefits

Working capitaloptimization and growthavoidance

#basis points improvement

% slow down in growth

Use un-invested cash

Reduce overdraft and borrowing cost

Transaction efficiencies Economies of scale

Interest on payments

released later

#days * overnight interest

Additionalbenefits

Security Avoidance of fraud, manual errors,

ComplianceLess control points, documentation,legal costs,


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Case studies performed by

Available from swift.com/corporates

Typical ROI: 200% - 300%

Arcelor Mittal 600%

GE 410%

Novartis 120%

Swiss Re 4 x savings to investment

T-Mobile 180%

DuPont 200%

Iberia 280%

Petronas 410%

Microsoft 326%

5 year business case


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Agenda



New Services

Business case

Case studies

Your SWIFT project

More info?


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Case studies

Arcelor

Belcorp

DuPont

EADS

GE Iberia

Microsoft

Novartis

Petronas

SwissRe T-Mobile

Yves Rocher

All different:Industry sector, country of operations,

turnover / size,

treasury organistion,usage of SWIFT,

One commonality:

a compelling business case


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Arcelor Mittal

Challenges with previous infrastructure Streamline infrastructure to achieve

greater visibility into cash receipts

Spending significant time in maintainingmultiple systems and connection points,each with totally different characteristics

Company profile

World number one steel company

330,000 employees; 60+ countries

Pro-forma 2005 revenue: 62.2 billion

Treasury profi le

In 2002, Arcelor Treasury had 750 bankaccounts in 40 banks, 14 different countries

Top Decision: Use SWIFT as cornerstoneto deploy unique, shared and highlystandardized bank connectivity solutionsupporting all treasury activities

Key benefits of using SWIFT Improved security, reliability and StraightThrough Processing

605% ROI, ~ 6 million NPV in 5 years

There is no SWIFTNet Project; there is onlySWIFTNet in Projects

In House Bank

TMSKTP/SIDE

SWIFTSAA/SAG

FAIPFP2

Banks

ERP

Arcelor MittalEntities

LAN

/Intranet-HTH

FIN and FileAct for liquidity, cash, credit andrisk management

46 banks in 16 countries connected

Case studyperformed by

J uly 2005


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Arcelor Operational impact

Bank Hardware RetirementSWIFTNet combined with Payment Factory allowsArcelor to retire over 40 bank messaging systems

25% of total benefits ( 20K savings per bank, per year)

Staff Reduction

Productivity gains from SWIFTNet led to resourcereallocation in Treasury Back Office and reduction in

Treasury Commercial Management and Finance

25% of total benefits

Working Capital Optimization

With SWIFTNet, cash aggregation volume increased by67%. Using gain of 5 basis points, Arcelor can investadditional capital translating to benefits of 0.43 million

4% of total benefits


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Arcelor Benefits

Consulting / Internal Labor:Legal contracts review,payment factory development,SWIFT implementation, testing

Connectivity: linkage to SWIFT,maintenance

SWIFTNet: usage fees,including gateway services &maintenance

Hardware retirement: 40 bankmessaging systems withaverage cost of 20K per year

Headcount avoidance: maintain4 headcount while activitydoubled

Staff reduction: Efficiencies fromusing SWIFT contributed toreducing department headcountfrom 40 to 10

Break-even in 18 months

Benefits grew exponentially afterrecognizing values of PaymentFactory with no additional costs


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SWIFT implementation

Belcorp

Challenges with previous infrastructure Multiple and various electronic bank

communication systems

Back-office staff tied up in manual activitiesto download information and feed ERP

Further standardize & automate paymentsand collection processing, with all banks

Company profile

Cosmetics products for women Present in 14 countries; 400,000 clients

5,000 employees

2007 revenue objective: 1bn USD

Treasury profi le

Regional treasury center in Lima, Peru Set policy, standardize processes, manage

liquidity, maintain bank relationships,execute payments, corporate lending andFX transactions

60+ banks, 30 to execute payments

Key benefits of using SWIFT Automated communications

Enhanced security and availability

Back-office staff re-allocated to value-addedactivities

Central Treasury

Use FIN and FileAct to receive account statementsand information of collections,and send mass payments

Phased, country-based approach

IPMBusiness

ApplicationSAP SICC

SWIFTAlliance

J uly 2007


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DuPont

Challenges with previous infrastructure

Treasury staff dedicated to data collectionand managing multiple bank connections,leaving little time for strategic activities

Manual interventions, high operational risk

Lack of global visibility and ability tooptimally manage cash

Company prof ile

Leading global chemical company $27.4 billion revenue

Operations in 70 countries

60,000 + employees

Treasury profile

Centralized operations across three centers

worldwide Management of SWIFT as financial

communications channel for treasury andbusiness units

Global implementation of treasury workstationand single instance of ERP

Key benefits of using SWIFT

Cost reduction from automation and singlecommunication platform; financial benefits frombetter visibility and management of cash

SWIFT was the only way to make our vision reach all our banks via one connection a reality

203% ROI over 5 years

Scalable platform to support growth objectives

Receive account info and statements in BAI2 format(FIN and FileAct), lockbox and ACH files (FileAct)

Send treasury payments (FIN), payments files wires, ACHs, checks & FX payments (FileAct)

Intranet

Singapore

Spain

U.S.

Treasury Workstation(Quantum)

ERP (SAP), usedby Business Units

SWIFTAlliance

Global Treasury Centers

March 2007



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DuPont: Financial result from using SWIFT

Project management andoperations cost: time toestablish infrastructure,connections and systeminterfaces, and manage serverenvironment

SWIFT costs: subscription,

SWIFTNet infrastructure andSWIFTNet FIN and FileAct

DuPont will generate $2.5 million innet benefits over 5 years:

IT labor savings from reducedinfrastructure maintenance

Treasury labor savings frombusiness process improvementsrelative to global centering

activities Retirement of 25 bank messaging

systems

Working capital optimization fromimproved cash visibility

Payback in 3 years


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EADS

Challenges with previous infrastructure Enhancement of risk management

Standardize processes for increasedtransaction volume & constant head count

Achieve further efficiency gains inTreasury operations

Company profile

Aeronautic and Defense

2006 revenue of EUR 39 billion

Sales in 200 countries

About 116,000 employees

March 2007

Treasury profi le

EADS central Treasury Activities provided: Corporate Finance,

Sales & Project Finance, Interest RateManagement, Cash Management, FXManagement, Asset Management

Key benefits of using SWIFT Clear gains in process quality and efficiency

Highly reliable process, no down time

Project implementation in time and budget

Reliable platform for future requirements,Payment Factory being planned


Trade confirmations MT300/305/320, notice toreceive MT210, payment orders MT101, statementsMT940/942, settlement orders MT541/543

SWIFTNet Accord to match confirmations

Service Bureau for connectivity, applicationmodules and long-term archive

EADS Service Bureau

SWIFTAllianceWorkstation

BeneficiaryControl List

Intra day accountmatching

BrokersTreasuryTransaction

System

SWIFTAllianceGateway

Banks

Accord


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GE

Challenges with previous infrastructure 38 proprietary connections, each different

(systems, processes and data)

Significant resources to maintain, increaserequired to support scaling of volume

Impacting ability to quickly assemble viewof current cash positions

Company profile

Diversified technology, media and financialservices

100 countries; 300,000 employees

$ 152.4 billion revenue

Treasury profi le

GE Corporate Treasury serves 4,000business units

20,000 bank accounts with 200 banks

$ 10 billion average daily cash movements

Key benefits of using SWIFT One set of global financial messaging

processes, connections, message formats

Enhanced security, improved flexibility,increased automation, increased visibility

406% ROI in 5 years, payback in 33 months,$ 10.5 million net savings over 5 years

IntermediaryBank

2ndTierBanks

BusinessSystems

1stTier Banks

FIN for payments and credit advice

FileAct to replace EDI connections

Web Cash Treasury Workstation calculatespositions, determines intra day settlements,balance reporting, financial data


J une 2005


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GE Operational impact

Improved ReliabilityGE Corporate Treasury reduced number of connection failures.Pre-SWIFT, average connection failure was 50 times per year;with SWIFT no connection failures have occurred

SimplificationBefore implementing SWIFT, GE Corporate Treasury dealtwith over 100 banks with 38 proprietary software connections.With SWIFT fully implemented, number of connections willdrop to one

Operational EfficiencyBy implementing SWIFT, Treasury Operations team canincrease activity volume per resource by 31%


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GE Benefits

GE Corporate Treasury willgenerate $ 10.5 million in net

benefits over 5 years frominvestment in SWIFT; achieves

positive return on operationalbenefits alone

GE Corporate Treasurywill achieve benefits fromincreased visibility andavailability of its cash

around the globe

Bank-wide adoption and support ofFileAct delayed realization of benefitsfor first years. As banks adopt FileAct,GE continues to increase its benefits

realization


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Iberia

Challenges with previous infrastructure Obtain visibility to liquidity across countries

Centralize payment origination activities

Manage multiple payments formats andauthorization procedures

Operate 60+ electronic banking channels,requiring significant treasury and IT staff

Company profile

Largest air transport group in Spain,fourth largest in Europe

5.5 billion revenues

Operates in 47+ countries

Employs 24,000 individuals

J uly 2007

Treasury profi le

Centralized treasury for Europe and NorthAmerica and in Latin America

Management of cash positions, paymentsand collections; Design and execution ofinterest rate & FX risk programs; Bankingrelationships

Key benefits of using SWIFT Consolidation of multitude of banking systems,

re-allocation of resources following automation

276% ROI over 5 years

We now have single bank messaging platformand whole process from payment origination toacknowledgement is straight-through


MT101 sent via FIN for high value treasury andsupplier payments

MT101 and PAYMUL files sent via FileAct for lowvalue, UK ACH and PE-ACH supplier payments,PAYMUL for foreign and domestic chequepayments sent via FileAct


XRT

Payment, Cash& Treasury

System (XRT)

Quantum

TreasuryManagement

System

SWIFTAllianceAccess

&Gateway

TransferSystem(XBE)

Oracle

GL

AP

AR

Authori-sation

Localbanks


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Iberia: Financial result from using SWIFT

Project management - time toestablish infrastructure andexecute project

Servers & Operations - cost toinstall and operate SWIFTNetinfrastructure

Application integration - toadapt treasury systems andconnect to SWIFTNet

SWIFT costs - MA-CUGregistration fees, SWIFTNetinfrastructure and traffic

Benefits generated by SWIFTNetfor Iberia include:

Payback in 25 months

60 electronic bank systemsretired over two years

Re-allocation of resources

following centralization ofbanking messaging activitiespreviously handled in the localoffices


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Microsoft

Challenges with previous infrastructure Visibility across multiple accounts / banks

Multiple channels and data formats, highcost to support, lack of scalability & agility

No central source of truth

Company profile

Software, services and solutions Revenue over $ 50 billion

Operates in 100 countries

Over 80,000 employees

Treasury profi le

Centralized Treasury with 130 employees

100 banks, 1,000 bank accounts

Global ERP and TMS

5,000 Treasury wires monthly, $ 70 billion

Key benefits of using SWIFT Single secure, reliable, resilient, cost effective

channel for communicating with all banks

326% ROI, $4.9 million NPV over 5 years

SWIFTNet is enabling Microsoft to build onecentralized source of truth for all bankingdata shared across the company.


Account info and statements via MT940 & MT942

Planned: Send Treasury wires (FIN), receiveLockbox and billing analysis (822\BSB) data files(FileAct) and statements in XML

Q4 2007



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Microsoft: Financial result from using SWIFT

Project management andoperational costs: timerequired to establish SWIFTinfrastructure, connections

(BizTalk) and systeminterfaces (SAP) and manageserver environment.

SWIFT costs incl. subscription,infrastructure and traffic


IT Labor savingseliminationof/avoidance of time to maintainbank messaging systems

Treasury Labor savings

reduced time to more effectivelymanage global cash, month-end close, monitor balances,

Cost avoidance of 70-100 bankmessaging systems

Working capital optimizationfrom later cutoff times andoptimize un-invested cash


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Novartis

Challenges with previous infrastructure Need to replace multi-bank system

operated by 3rd party service providerwhen that came to end of support

Automate trade confirmations sent by fax

Increase security of payment flows

Company profile

World leader in providing medicines toprotect health, prevent and treat diseaseand to improve well-being

100,000+ employees

37 bn USD group net sales

J une 2007

Treasury profi le

Ensure effective financial risk management

Optimize use and profitability of financialresources

Provide financing and financial services atlow cost to operating businesses

Key benefits of using SWIFT Single channel to reach multiple banks;

automation of previously manual operations

When we had to replace our bank messagingsystem, we took SWIFT to reach all our banksdirectly, with the highest security

120% ROI and EUR 95,000 NPV in 5 years

FX deals are confirmed with MT300 and relatedmovements generate MT101 and MT210

Deposits are confirmed with MT320

Securities transactions still confirmed by fax,implementation of MT5xx planned later in 2007

Banks

Treasurysystem(OMR)

Middleware

SWIFTAlliance

Novartis entities Switzerland: Novartis AG, Holding, Pensionfund Luxemburg: Novartis Investment Bermuda: Novartis Securities Investments

Gibraltar: Novista Insurance

Novartis International


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Benefits composition

Treasury ops

staff re-

allocation

(28%)

Manual labor

cost savings

(50%)

Banking

messaging

cost savings

(22%)Year 0

Cost structure

J oining /

service fees

(16%)

SWIFTNetInfrastructure

(41%)

Traffic (12%)

Project

management

(24%)

Servers +

operations

(7%)

Novartis: Financial result from using SWIFT

Investment included joining and MA-CUGregistration, infrastructure and traffic fees, for6 Novartis entities.

Project which took just 6 months - covered

evaluation, joining / ordering, installation,connection to middleware, testing with bankpartners and go-live.

Operations cover daily management ofSWIFT interface and connection.

Novartis will generate EUR 723,000 in benefitsover 5 years from SWIFTNet.

Automation will allow Novartis to save on labor- previously occupied with manual faxes and

investigations via phone - and to re-allocate0,5 staff equivalent.

Using SWIFTNet, Novartis retired the bankmessaging system operated by a serviceprovider when that came to end of support.


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SWIFT Implementation

Petronas

Challenges with previous infrastructure

Sending payments by telex and fax waslabor intensive and prone to errors

Growth in transaction volume to supportlocal and increasingly global operationsstrained resources and bank processes

Operational activities limited ability to focuson analysis and strategic treasury initiatives

Company profile

Leading oil and gas multinational Active in 30+ countries

50 billion revenue

34,000+ employees

Treasury profi le

Group Treasury provides fund management,liquidity management and FX for 60+subsidiaries

Local subsidiaries manage operationalaccounts and daily payables & receivables

Key benefits of using SWIFT

Automation doubled staff productivity, reducedtelex & bank processing costs, allowedinterest earned on funds released later

With SWIFT, we now have a standard andreliable process with our banks

414% ROI, $1.1 million net benefits in 5 years

Project to implement Shared Service Center

based on SWIFT as messaging infrastructure

Group

Treasury(TREMA)

Group Accountsand Services

(SAP)

SWIFTAlliance

Treasury payments, notifications to receive,statements, FX and Securities deal confirmations,sent / received using FIN

Instruction letters to pay suppliers sent in pre-defined template or PDF format via FileAct

FIN

FileAct

Business unit(SAP)

FIN


May 2007


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Year 0

Cost structure

Project

management

(6%)

SWIFT

operations(94%)


Treasury staff

increase

avoidance (14%)

Telex cost

savings and bank

processing STP

(19%)

Interbank fee

optimization (2%)

Additional interest

earned oninvestment

payments (65%)

Break even analysis

(discounted, at end of year)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Year

0

Year

1

Year

2

Year

3

Year

4

Year

5

Costs Benefits

Petronas: Financial result from using SWIFT

Project costs include linkto Treasury ManagementSystem , which wasalready SWIFT enabled

SWIFT operations costsinclude SWIFTAlliancecapital expenditure andmaintenance, traffic andtransaction charges

Petronas will generate $1.1 million innet benefits over 5 years from itsinvestment in SWIFTNet

Treasury doubled transaction volumewith same headcount, avoiding 8extra staff. Automation eliminatedtelex costs and allowed banks toprocess payments straight through.Better visibility allows reducedinterbank fees. Interest is earned onincreased funds available due topayments released a day later



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SWIFT Implementation

SwissRe

Challenges with previous infrastructure Increase in trading activity heightened

burden on internal processes and systems

Opportunity to improve communicationwith banks and custodians, at timescumbersome and often delayed

Company profile

Leading and most diversified reinsurer Operates in over 25 countries

About 11,000 employees

April 2007

Treasury profi le

Business groups using SWIFT

Asset ManagementFinance (Operational Payments)

Global Cash Management

Consolidated and centralized back-officesystems

Key benefits of using SWIFT Single portal to the financial industry

With SWIFT we have been able to enhanceour communication with banks / custodians,while improving quality, security and efficiencyof our information STP

4x savings to the original investment

Finance Zurich processes ~ 90% of its paymentsvia SWIFT: G/L to pay clients, insurers, brokersand suppliers; Quantum to manage portfoliopositions and perform cash management

Asset Management trades and reconciles ~ 95%of its trades via SWIFT using OpenMSG

SwissReNetwork

Legacy ERP/ EDI

Treasury / CashManagement

Portfoliomanagement

BBP(Servicebureau)


Application 1

Application 2

AccountHoldingBank

FinancialInstitution 1

FinancialInstitution 2


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Swiss Re: Financial result from using SWIFT

Labor: implementation,maintenance, staging andmapping

Other infrastructure: bureaucosts for accessing

SWIFTNet SWIFT costs: membership

fees, traffic costs & BICcosts for multiple BICs

~ 10 million in netbenefits over five years

Increased visibility forbetter cash pooling

Increased visibility and

action enables workingcapital growth avoidance



53/61


T-Mobile

Challenges with previous infrastructure Special e-banking systems in every country

lead to high operating & maintenance costs

Not possible to add central signature

Multiple banks/accounts at national level

Company profile

Mobile communications to 103 millioncustomers in 12 countries

55,000 employees

23.6 billion as of September 2006

March 2007

Treasury profi le

In-House Bank + Payments Factory Process all internal and external payments

from all European subsidiaries in onecentral system, with one global standard

120 million transactions/year

Key benefits of using SWIFT With SWIFT, T-Mobile can run a central

platform with a single standard for everycountry and every bank for the first time

182% ROI

Possibility to roll-out Payment Factory basedon SWIFT at Deutsche Telekom group level

National payment formats sent via FileAct usingXML wrapper, without conversion cost

Bank application ack received via FIN

T-Mobile

International

BanksNational

companies

Intranet

Local ERP(SAP)

Local ERP(SAP)

Local ERP

(SAP)

InternationalFinancePortal

In-HouseBank(SAP)

SWIFTAlliance


54/61



Cash mgmt

ops labor

savings

(16%)

Bank systems

cost savings(35%)

Transaction

processing

efficiencies

(49%)

Cost s tructure

J oining

(1%)

SWIFTNetInfrastructu

re (7%)

Traffic

(6%)

Project

(25%)

Servers +

operations

(46%)

Middleware

(16%)

T-Mobile: Financial result from using SWIFT

Payback in 2 years

Break even analysis(at end of year)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

Year

0

Year

1

Year

2

Year

3

Year

4

Year

5

Costs Benefits

Costs include joiningMA-CUGs, SWIFTNetinfrastructure and traffic.

Non-SWIFT costs

include projectmanagement, servers +operations, middlewarefor the internationalfinance portal

T-Mobile will generate EUR 4.5million in net benefits over 5 yearsfrom its investment in SWIFTNet

Increased automation, control and

standardisation allow T-Mobile tore-allocate 2 FTE and retire 15bank messaging systems in fourEuropean subsidiaries

Efficiencies from central operationslead to economies of scale andreduction in payment transactions

Payback in 3 years


55/61



Yves Rocher Group

Challenges with previous infrastructure Strong presence with many local banks

Many heterogeneous platforms andsecurity mechanisms

Build European communication platform

Yves Rocher

TMS(KTP/

Reuters)

ERP(SAP)

ServiceBureau(CMCIC)

Bank

Bank

Bank

EAI(TRAX)

Company profile

Personal care 2 billion revenues, 40 million customers

8 brands, acting in 88 countries

15,000+ employees

Treasury profi le

106 banks, 550 accounts 50+ bank communication systems

800 market transactions per year

Decentralized collections & payments.Centralized exchange risk, liquidity,cash pooling, netting.

SWIFTNet FileAct

All kind of payments (treasury, suppliers, payroll).Local formats (AFB320,VCOM...), waiting for XML

Connectivity via Service Bureau; integrationthrough financial EAI

Key benefits of using SWIFT Wide reach

Tighter security

Low operational overhead

Transparency of Service Bureau solution

May 2007


56/61


Agenda



New Services

Business case

Case studies

Your SWIFT project

More info?


57/61


Roll out

Plan your project

Define

scope

Contact

banks

Select

software

vendors

Pilot

J oin SWIFT

Install software,connect to SWIFT

Run test pilot

Per bank

Kick-off meeting

Setup and test liveenvironment

Go live

Financialservices

Banks

Applications

Formats andmessaging

Type of

connection

Contactrelationshipmanager or seeswift.com

Agree servicemodalities.Contract templateavailable

Contact SWIFT

See SWIFT readypartners onswift.com

Typical timeframe (depends on size of corporate and type of project)

1 month, for a EUR 750 million turnover corporate,to do treasury management with 3 banks using Alliance Lite

1 year, for a EUR 25 billion turnover corporate,to integrate SWIFT in its Payment Factory project


58/61


About your project

Treasury organisation?

#banks, #bank accounts?

Back-office applications?

Challenges with current

infrastructure? #treasury payments/month?

#commercial payments/month?

Expected benefits?

What would you use SWIFT for?

Target live date?

List of (primary) banks?

#transactions to send over SWIFT? Formats: domestic, ISO, ...?

Which applications would you use?

How would you connect to SWIFT?

Treasury profile SWIFT project


59/61


ERP

SWIFTNet

connectivity

Defining your project scope

Paymentfactory/

middleware

FIN for payments (MT101), statements(MT940/2) and FX confirmations (MT3xx)

FileAct as file transfer to transport anyformat: domestic, ISO 20022, ACH, BAI,

SWIFTNet

ERP(s)ERP(s)

TreasuryWorkstation

Which applications toconnect to SWIFT?

What formats &messaging to use?

Which banksto connect to?

How toconnect?


60/61


Agenda



New Services

Business case

Case studies

Your SWIFT project

More info?


61/61

More info?

Your banks

Other corporates on SWIFT

SWIFT account director

swift.com/corporates

Corporate community on www.swiftcommunity.net

Conferences

Industry events like Eurofinance, AFP, ACT

SWIFT for corporates days

Sibos Forum for Corporates

Documents

Swift for Corporates Overview