Trevor Horan Kerry Group Liz Smith SAP Global · PDF fileTrevor Horan Kerry Group Liz Smith SAP Global Treasury ... SAP In-House Cash ... SAP Cash Management powered by HANA

Kerry Runs Simple

Trevor Horan Kerry Group Liz Smith SAP Global Treasury

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Kerry Group


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


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


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


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


Kerry Foods, Agri

Euro A/C’s


Kerry Foods, Agri

GBP A/C’s


Kerry Foods, Agri

CAD A/C’s


Kerry Foods, Agri

AUD A/C’s


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


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


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


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


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


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


Documents

Trevor Horan Kerry Group Liz Smith SAP Global · PDF fileTrevor Horan Kerry Group Liz Smith SAP Global Treasury ... SAP In-House Cash ... SAP Cash Management powered by HANA