SWIFT For Corp Orates Brochure 200903

SWIFT for corporates– Creating confidence, certainty and efficiency

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SWIFT for corporates

Contents

Welcome02 — 03 Today's financial landscape

Corporate treasurers are faced with a growingnumber of challenges

36 Contact us

The value of SWIFT04 — 05 Benefits for corporates

Providing a single, secure, standardised, global messagingand communications infrastructure

06 Enabling new bank servicesBanks extending the value for their corporate customers

07 Integrating SWIFT in your back-officePartners providing SWIFT-enabled solutions

How it works in practice08 — 09 Case studies

Hear it from your peers

Bank case studies

10 — 11 Barclays Commercial

12 — 13 BNP Paribas

14 — 15 HSBC

16 — 17 UniCredit

Corporate case studies

18 — 19 Arcelor

20 — 21 DuPont

22 — 23 GE

24 — 25 Iberia

26 — 27 Microsoft

28 — 29 Novartis

30 — 31 Petronas

32 — 33 Swiss Re

34 — 35 T-Mobile

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Today's financial landscape— Corporate treasurers are faced with a growing number of challenges

In today’s financiallandscape, corporatetreasurers are faced witha growing number ofchallenges including:increased pressure on costand working capital, needfor tighter control,globalisation, morestringent compliance andacquisitions.To helpcorporates navigatethrough this operationaldilemma, optimise globalvisibility and control cashflows and better managerisk, SWIFT, together withthe financial community,provides a solution.

BenefitsLower costs

Higher straight-through processing

Better funds visibility

Easier compliance

SWIFT allows corporates to exchangefinancial information (payments, treasuryand securities orders, reporting) with alltheir financial institutions through onesingle, highly secure, standardisedcommunication platform, as opposed tousing multiple connections. SWIFT’sinternationally-recognised standards arehelping corporates to reduce costs andrisk, increase funds visibility and efficiencythrough improved automation, leading toeasier regulatory compliance. By joiningSWIFT, corporates can enjoy optimalaccess to over 8,200 financial institutions,in 208 countries.

Today, more than 350 corporations areconnected to SWIFT and the number isincreasing rapidly. These companies areseeing tangible return on investment andare bringing greater efficiency to theirtreasury operations. Business casesdeveloped by companies such as Dupont,Iberia, Novartis, Petronas and T-Mobilehave all highlighted Return on Investment(ROI) in the range of 120 to 400%.

What is significant is the wide scope andtype of these corporates: they come in allshapes and sizes – from mid-sizedcompanies with simple cash managementstructures dealing with a few bankslocally, to large corporations deployingsophisticated payments and collectionsfactories. There is a strong regional mix ofcompanies that have made the decisionto connect to SWIFT, including the recentintroduction of Chinese and LatinAmerican corporations, across a range ofindustries including chemicals,technology, transportation and retail.Recent additions include large multi-nationals such as Air France, Chevron,Ebay, Google, Nokia, Samsung, Siemens,Tesco, UPS and also – increasingly – mid-sized corporates such as Alten,Autostrade, Belcorp or Decathlon.

To encourage more corporations toconnect to their banks through SWIFTand meet the needs of existing users,SWIFT is working with its community toevolve the corporate offering.

Four main areas are high on the agenda:

1. Enabling new bank servicesFor cash management, corporates canuse SWIFT’s file-based messagingservice – FileAct – for ACHtransactions, direct debits, and salarypayments, internationally anddomestically. Beyond treasury, cashmanagement and securities messagesalready in use, additional services willbe available by end 2008 in the areasof trade finance and exceptions &investigations. New standards for BankAccount Management will be availableas of early 2009: they will cover accountopening, mandate management andaccount closing. Finally, SWIFT isworking with an expert group to addressadditional standardisation requirementsfor personal digital signatures.

2. Simple connectivity optionsfor smaller corporatesCorporates looking for a straight-forward and hassle-free way ofconnecting to SWIFT have a numberof options, including using a servicebureau. At the end of 2008, SWIFTwill launch Alliance Lite, to providefurther choice. Alliance Lite allowsboth manual and automatedoperations and is cost effective andeasy to use - allowing corporates toconnect to SWIFT from anywhereusing a standard Internet browser.

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3. More standardisationCorporates that join SWIFT enjoyincreased standardisation. A rulebook isavailable for the ISO 20022 paymentstandards: these standards can be usedto complement the FIN anddomestic/proprietary formats. Astandardised bank contract template isalso available, to simplify corporates’ on-boarding of their additional banks.

4. Back-office integration withvendors’ applicationsIn support of Enterprise ResourcePlanning (ERP), treasury workstationand payment factory applicationsvendors, SWIFT has launched a labelprogramme to certify vendorapplications in cash management andtreasury management. To date, fourvendors are labelled. Examplesinclude SAP, which is now live with itsSWIFT solution in Europe and in theUS, Reuters, SunGard, Wall StreetSystems and XRT.

Building momentumSWIFT will continue to partner with localtreasury associations and publications andexhibit at major industry events around theworld including Association for FinancialProfessionals (AFP), EuroFinance, TreasuryManagement International (TMI), TreasuryToday, Treasury Strategies, Universwiftnetand many others. Help from banks,vendors and consultants with morededicated SWIFT for corporates days willcontinue to be valuable outlets to helpcustomers understand the valueproposition of SWIFT and share bestpractice with peers.

The enthusiasm from corporates, financialinstitutions and vendors tells us we aredelivering on our promise. With adoptionfigures on the rise and a financialcommunity eager to help corporatetreasurers navigate through thischallenging financial environment, SWIFTfor corporates offers a compellingbusiness case for corporate treasurers.

From Shanghaito Saõ Paulo, SWIFT

offers a compellingbusiness casefor corporates

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Benefits for corporates— Providing a single, secure, standardised, global messaging

and communications infrastructure

SWIFT: a highly secureand reliable globalfinancial messaginginfrastructure spanningmore than 200 countries.A single, shared IP-basedmessaging platform:SWIFTNet. Industryrecognised standards toimprove automation andadvance liquiditymanagement. Guaranteeddelivery.Third-party non-repudiation.The highestlevels of encryption andauthentication technologyavailable. 24/7/365customer support.

BenefitsReduce costs and risk

Improve auditing processes, ensuringeasier compliance

Increase straight-throughprocessing (STP)

Optimise cash and liquiditymanagement

Streamline operations

Focus on continuity and security

Global reach

Cash and liquidity managementTransaction information and cash ositionscan be shared between corporates andbanks, over a single platform, leveragingglobal financial industry standards. Thisresults in higher straight-through processinginto corporate cash managementapplications and streamlines bank tocorporate communication. Intradaymovements can be reflected in real time,enabling corporates to manage liquiditymore efficiently.

To facilitate centralised processing andtransmission of commercial payments,SWIFT also offers a highly secure andperformant file transfer service. This allowscorporates to centralise all commercialpayments and collection activities - bothdomestic and cross-border - in a singlepayments factory. The file transfer servicesupports all data formats and character sets.

Financial risk managementConfirmations of foreign exchange spot,forward and swap deals, foreignexchange options, money market, forwardrate agreements and currency interestrate swaps are all instruments catered forby SWIFT messages.

SWIFT’s centralised confirmationmatching service, Accord, enablesrealtime handling of exceptions to furtherreduce operational risk.

SWIFT supports the automation of theentire trade cycle from confirmation of thedeal to settlement, thus reducingoperational risk.

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Resilience and availabilityResilience and a high level of availability arekey characteristics of the SWIFT messaginginfrastructure. This is achieved through:

— the use of four independent networkservice providers to access SWIFTNetmessaging services; and

— multiple operating centres located ondifferent continents

SecurityOnce connected to SWIFT, corporateswill be able to use a single securitysetup with all financial service providers.Rationalising security mechanismsleads to tighter security managementand control. SWIFT uses the highestlevels of encryption and authenticationtechnology available.

SWIFT’s multi-layered approach tosecurity ensures that:

— individual transactions are protectedagainst manipulation and fraud

— the integrity and confidentiality of alltraffic between the user and SWIFTare guaranteed

— only registered SWIFT users gainaccess to the network

Business continuityIn the SWIFT environment, registered usersdo not need to be aware of each other’sphysical location or technical configuration.There is no dependence on another party’ssetup. In the event of a switchover from aprime to a backup site, the change will betransparent to users and can be achievedin a matter of minutes.

Easier complianceOperating a single communicationplatform, as opposed to multiple anddiverse electronic banking systems,greatly simplifies auditing processes andtherefore leads to easier compliance.

Internet

From multiple standards and protocols to...

Leased line

Host-to-host X

PSTN

VAN

...a single, secure, standardised global platform

PKI

e-banking Y

e-banking Z

‘Fax-banking’

Treasury

Accountspayable

Accountsreceivable

Other

Corporateclient

Corporateclient

Gatewayto SWIFTNet

Treasury

Accountspayable

Accountsreceivable

Other

SWIFTNet

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Enabling new bank services— Banks extending the value for their corporate customers

SWIFT is committed tohelping banks andcorporates furtherstreamline corporate-to-bank communication.Using a single standard ina harmonised way toinitiate payments andtrack payment status helpscorporates and banksoptimise financialprocesses. Standards arealso the basis forproviding additionalservices beyond treasury,cash management andsecurities.

A number of initiatives are underway tomake this goal a reality:

— Adoption of ISO 20022as a single standard for paymentshelps corporates and banks improveautomation of their payment andreconciliation processes. The SWIFTfor corporates – ISO 20022 Rulebookfor Payment Initiation (CustomerCredit Transfer Initiation and PaymentStatus Report) is now available andcontains a set of best practices andrecommendations on technical,operational and business rules andguidelines, valid for any payment type.Schemas, samples anddocumentation for ISO 20022messages can be downloaded fromwww.iso20022.org.

— Exceptions and InvestigationsSWIFT’s solution to automate and trackthe lifecycle of an investigation for apayment (beneficiary claims non-receipt,for example) and to reduce theresolution time with end-to-endstandards and messaging. Thisresponds to the need for faster paymentreconciliation and for increased controlpayables and receivables.

— Trade financestandardised messaging enabling youto exchange trade data such asLetters of Credits with your banks inelectronic format. Meets therequirements for a single channel andcommunication standard whenseveral banks are used for tradefinance.

— Bank account managementcoming soon - to dematerialise theexchange of information related to themanagement (such as opening,maintaining and closing) of bankaccounts, leading to faster availability,reduction of operational risk andeasier compliance.

We encourage your active participation tohelp develop and adopt these services.

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Integrating SWIFT in your back-office— Partners providing SWIFT-enabled solutions

Collaboration isimportant to ensurestraight-throughprocessing in corporatefinancial applications –particularlyTreasuryManagement Systems(TMS) and EnterpriseResource Planning (ERP)that need to be seamlesslyintegrated with theSWIFT infrastructure.

This helps you ensure these applications:

— communicate with your SWIFTinterface;

— generate outgoing data in theappropriate format (standards for alldata that need to be transferred overthe FIN messaging service); and

— processes incoming data.

SWIFT interfaces come with a number ofhost adapters that allow data exchangewith third-party applications. SWIFT’sPartner Management team works withpartners that develop complementaryproducts, connectivity and services toensure they are SWIFT-enabled.

SWIFT has developed strategic joint valuepropositions with global partners such asAccenture and SAP.

There is also a dedicated labelprogramme certifying partner applicationsin cash management and treasurymanagement. Accredited vendors includeReuters, SunGard, Wall Street Systemsand XRT.

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Case studies— Hear it from your peers

A number of corporatesand banks have detailedtheir experience withSWIFT in a series ofcompelling business cases.Bank case studiesBarclays Commercial, HSBC andUniCredit.

These cases highlight the benefits thesebanks see for their customers, the stepsthey took to integrate SWIFT in theiroffering and why SWIFT as a clientchannel makes sense:

1. Ability to respond to corporates’demandMany RFPs from large corporatesnow include a reference to SWIFT, asa requirement for multi-bankconnectivity.

2. Focus on value-added servicesInstead of investing time/resources inthe development of proprietaryconnectivity interfaces, banks canfocus on selling value-added services.

3. Opportunity to capture additionalflows/clientsBy pro-actively promoting SWIFT,banks have captured new clients oradditional flows.

4. Positions the bank as innovatorBy providing treasury and cashmanagement services over SWIFT,banks are perceived as drivers ofinnovation by corporates.

Corporate case studiesArcelor, DuPont, GE, Iberia, Microsoft,Novartis, Petronas, Swiss Re and T-Mobile.

These cases tell the story from theirperspective. Whilst in different industrysegments and using SWIFT for differentpurposes, they have a common thread:a solid return on investment.

Your treasury operations can enjoy thesebenefits too:

1. STP and lower costsSWIFT allows for channelrationalisation, a single channel versusa multitude of different channels. Themore banking relationships, the higherthe savings. Additionally, standardsused over SWIFT allow increasedstraight-through-processing (STP)(content rationalisation) and thereforestaff productivity gains, for example byeliminating the need to re-keypayments.

2. Control / security / reliabilityAbility to control payment initiations andincreased security, while more difficultto quantify, are also recognised as keybenefits. In some cases, our 99.999%network availability is important assome corporates suffer from regularbreak-downs of their e-bankingsystems.

3. Funds visibilityThe ability to receive end-of-day orintra-day reporting directly from all yourbanks increases funds visibility and giveyou the ability to invest better.

4. ComplianceFor corporates under stringentregulation, such as Sarbannes Oxley,using one single interface significantlyreduces the administration work requiredto document - and keep up-to-date -banking communication processes.

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Bank case studyProduced by: SWIFTFocus: Barclays Commercial

Barclays is a financial servicesorganisation which moves, lends,invests and protects money formore than 27 million customersand clients in more than 50countries. Its mission is to provideproducts and services that helpcustomers reach their financialgoals, that drive economic growth,and that sustain healthy financialsystems. Barclays has over127,000 employees.

Benefits for BarclaysRespond to corporate clients needs

Complete channel product range

Focus on value added servicesprovided over a standardised channel

Cross sell, gain additional business

Benefits for Barclays’ clientsImprove interoperability

Improve straight-through processing

Additional controls to improvecompliance

Obtain greater visibility over accounts

Barclays was one of the first banks in theworld - and the first in the UK - to offerand actively promote connectivity throughSWIFT to its corporate customers.

DriversSWIFT provides the common standardsthat enable its corporates clients toimprove interoperability between theirback office systems and Barclays. Thishas improved straight-through

processing, provided corporates withadditional controls to improve complianceand delivered greater visibility over bankaccounts held across the globe.

For Barclays, SWIFT was an addition totheir host-to-host solution, providing anew channel with high security andstraight-through processing.

Thanks to SWIFT, Barclays has been ableto cross sell and gain additional businessfrom its corporate customers.

Barclays CommercialBarclays uses SWIFT to differentiateits corporate-to-bank services throughcommon standards

“Barclays has a clear strategy regarding SWIFT. We use it asa channel to provide corporate clients with the leading-edgeservices they require.”Richard Martin, Head of Payments and Cash Management, Barclays Commercial

Case study

Corporate client Barclays Banks

AccountsReceivable

Treasury

AccountsPayable

Commonservices likesales &servicing,

managementinformation,billing andrisk/assetmonitoring

Commonservices likesales &servicing,

managementinformation,billing andrisk/assetmonitoring

CashManagement

Treasury

LiquidityManagement

Trade

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Barclays/SWIFT propositionUsing SWIFT, Barclays can offer thefollowing benefits to corporate clients:

— Treasury process efficiencyCorporates can automate the linkbetween Enterprise ResourcePlanning (ERP) systems and TreasuryManagement Systems (TMS) andBarclays using a common format.

— Global account visibilityCorporates with operations across theglobe and accounts with numerousbanks across several countries can useSWIFT to receive MT 940 / MT 942messages from all their banks to gain agroup-wide view on a daily basis.

— Bulk payment processingCorporates with high volumes ofpayments, handled by a paymentsfactory or shared service centre canachieve maximum straight-through-processing and later cut-off times bydelivering payments either viaindividual FIN messages or within abulk file via FileAct.

Getting ready1. Exploring the opportunity

Barclays considered SWIFT forcorporate clients in 2002.

SWIFT was positioned along existinghost-to-host channels, to providecorporates a choice of connectivityand functionality based on theirobjectives.

2. Defining the offeringBarclays defined the services availablevia SWIFT based on the needs of itscorporate clients. It sought tomaximise the benefit its clients wouldderive from their connection byframing it as a two-waycommunication channel, not just apayment service.

3. Enabling the organisationAs a major provider of cashmanagement services, Barclaysalready supported the full range ofpayment initiation and reportingmessages, and it took only a shorttime to enhance those platforms forautomated flows with corporates.

A robust on-boarding process wasdeveloped. Corporateimplementations are managed by aspecialist team, to include end-to-end testing prior to going live.

Contractual documentation is basedon a common bank template.

4. Preparing Marketing and SalesBarclays created specific collateralon its SWIFT for corporates offering.

Product and technical championsare appointed within Barclays.

Over 50 customer facing staff areconversant on SWIFT forcorporates, supported by a team ofspecialists to manage technicalqueries.

5. Active promotionBarclays first SWIFT corporate clientwent live in 2002.

Whilst SWIFT was initiallyconsidered to be for corporateclients with high volume ofpayments, Barclays now promotesSWIFT to all industry and servicesectors.

SWIFT based solutions are featuredat industry conferences as well as atseminars organised by Barclays.

Barclays regularly contributesarticles on the benefits of SWIFT forcorporates in industry and treasurypublications.

Barclays will participate in the Sibos2008 Forum for Corporates.

Next generation capabilitiesBarclays plans to extend its SWIFT forcorporates offering with the followingcapabilities:

— Extend current FileAct capabilities toboth send and receive bulk files

— Development of ISO 20022 XMLbased solutions

— Exception and investigations services.

ConclusionInnovative banks like Barclays see SWIFTas an opportunity to distinguish theirproducts and services by added valuerather than proprietary channels.

For Barclays, SWIFT for corporates isgrowing as corporates look for quality anda range of services delivered over astandardised channel. SWIFT is anenabler to gain additional business.

Solution overview— SWIFT for corporates

— FIN and FileAct

— SCORE and MA-CUG

About SWIFTSWIFT is a member-owned cooperativethat provides the communicationsplatform, products and services toconnect over 8,300 bankingorganisations, securities institutions andcorporate customers in more than 208countries. SWIFT enables its users toexchange automated, standardisedfinancial information securely and reliably,thereby lowering costs, reducingoperational risk and eliminatingoperational inefficiencies. SWIFT alsobrings the financial community together towork collaboratively to shape marketpractice, define standards and debateissues of mutual interest. www.swift.com

For more information please contact yourSWIFT account manager or visitwww.swift.com

For information about Barclays’ trade andcash solutions, please email Barclays directlyat: [email protected] © 200855

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2- Definingthe offering

3- Enablingthe organisation

4- PreparingMarketingand Sales

5- Activepromotion

Typical bank readiness path

1- Exploringthe opportunity

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BNP ParibasBNP Paribas supports its corporate clients witha global SWIFT offering across business lines

“SWIFT is a key component in our client channel strategy,providing an innovative and quality offering for largecorporates as well as mid-cap customers.”Pierre Fersztand, Global Head of Cash Management, BNP Paribas

Case study

BNP Paribas provides a complete SWIFT-based offering, across multiple businesslines to both large corporates and mid-caps.

DriversBNP Paribas’ SWIFT offering brings keybenefits to its corporate clients:

— Strong expertise in PaymentFactories; SEPA experience with liveclients and significant volumes

— Innovative solution, covering multiplebusiness lines

— Complete, packaged and managedTaolink service bureau andmember/concentrator solution

— International coverage through singleentry point

— Easier access to BNP Paribas’value-added services.

The benefits BNP Paribas sees inproviding SWIFT to corporates are:

— Support customers in centralisationprojects with adequate solutions

— Promote global offering, to betterserve clients’ local needs

— Win new customers, and cross sellamong the BNP Paribas group

— Simplify customer to bankcommunication via standardizedconnectivity and formats.

BNP Paribas SWIFT solution— Single entry point, for all branches

— Services available through FIN orFileAct, via SCORE or MA-CUG

— Large choice of formats (CFONB,AEB, CBI, idoc, ISO 20022, MTxxx,EDIFACT, ...)

BNP Paribas is one of theEuropean leaders in globalbanking and financial servicesand is one of the 4 strongestbanks in the world accordingto Standard & Poors.Thegroup is present in more than85 countries and has morethan 168,000 employees.

Benefits for BNP ParibasSupport customers in centralisationprojects with tailored solutions

Promote global offering to betterserve local needs

Win new customers; cross sellamong business lines

Simplify customer to bankcommunication via standardizedconnectivity and formats

Corporate case studyProduced by: SWIFTFocus: BNP Paribas

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Getting ready1 Exploring the opportunity

BNP Paribas considered SWIFT forcorporates in 2001. It was one of thefirst banks to open an MA-CUG, as itsaw this would drastically changeworldwide bank communication.

2 Defining the offering

BNP Paribas built its SWIFT offering inpartnership with large corporateclients, using its know-how ininternational cash managementsolutions.

In 2006, BNP Paribas was one of thefirst banks to open a servicebureau-based access called Taolink,now enriched by theMember/Concentrator model.

3 Enabling the organisation

BNP Paribas uses a central platformand organisation, which enables itsclients to negotiate the agreementand prices at group level.

Priority was given to Europe wheremost of BNP Paribas’ clients paymentfactory projects are. For emergingmarkets, branches are involvedaccording to demand.

BNP Paribas’ ISO-certifiedimplementation team follows itsclients throughout their project. Whenlive, customers are followed by adedicated support team.

4 Preparing marketing and sales

Commercialisation in each country issupported by cash managementexperts trained in SWIFT’s offering,supported by local SWIFT staff.

BNP Paribas produced extensivemarketing collateral and case studieswith its clients.

5 Active promotion

BNP Paribas actively promotes itsoffering via global and local events.

In 2007, BNP Paribas organized its firstCash Management University whereSWIFT was a key subject.

They also invited corporates to manySWIFT events in Italy and the UK.

BNP Paribas was a partner and speakerat the Sibos 2008 Forum for Corporates.

They also organise information sessionsdedicated to mid-caps in towns acrossFrance.

Next generation capabilitiesBNP Paribas has always been committedto SWIFT’s initiatives and activelyparticipates in key projects to maintain itsleadership in innovation:— In 2007, BNP Paribas actively

participated in the ISO 20022 CreditTransfer guidelines and, having livecustomers, will continue in 2008 byworking on the reporting pilot

— BNP Paribas participates in thedesign of the bank accountmanagement standardization.

BNP Paribas will further reinforce itspackaged offering to address theEuropean mid cap market with an allinclusive and efficient offering.

ConclusionBNP Paribas has a complete SWIFToffering for corporates, and combinedwith its deep know-how in internationalcash management, supports large andmid caps customers in a smoothmigration.

They see the further democratisation ofSWIFT and innovation of cashmanagement as well as Forex, Trade andSecurities services built on SWIFT as keyto continue to meet corporate customersneeds.


— FIN and FileAct messaging services


— Member/Concentrator

— Service Bureau


Contact usFor more information about BNP ParibasSWIFT offering, please visit:www.bnpparibas.com

Or contact:[email protected]

For more information on SWIFT pleasecontact your SWIFT account manageror visit www.swift.com

SWIFT © 2008


1. Exploringthe opportunity

2. Definingthe offering

3. Enabling theorganisation

4. PreparingMarketingand Sales

5. Activepromotion

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Bank case studyProduced by: SWIFTFocus: HSBC

HSBCdeploys SWIFT for corporatesHSBC deploys SWIFT for corporates acrossthe bank globally, via a structuredcommercialisation programme

Case study

HSBC is one of the world’slargest banking and financialservices organisations. Its networkcomprises around 10,000 officesin 83 countries and territories inEurope,Asia-Pacific, theAmericas,Middle-East andAfrica. HSBC is continuallyinvesting in cash managementsolutions and services to helpenhance corporates workingcapital management and meet theevolving needs of its corporateclients.

Benefits for HSBCPromote global banking via HSBC’slocal footprint

Maintain bank’s lead in innovation

Attract new business and volumes

Reduce costs by using industrystandards and solutions.

HSBC sees significant value in SWIFT asan industry standard connectivityinfrastructure for the corporate world anddeploys it as an integral part of its clientconnectivity strategy.

DriversSWIFT improves HSBC's corporate-tobank communication by providingHSBC corporate clients with a singlemulti-bank gateway through which theybenefit from the same set of protocolsand the same level of security for differentareas of treasury and cash management.HSBC’s SWIFT for corporates offeringbrings key benefits to clients:

— Supports international standards aswell as domestic formats

— Standardised multi-bankconnectivity

— Local entry point to global offering,consistent across HSBC group

— In-depth SWIFT knowledge withinHSBC’s sales and support teams

— Assurance of an evolving servicethrough HSBC’s continuedinvestment.

HSBC believes channel infrastructuredoes not need to be proprietary, andthat banks can differentiate by creatingvalue added services that use industry-standard channels like SWIFT.

The benefits HSBC sees in SWIFTare:— Opportunity to promote global

banking via HSBC’s local footprint

— Maintain the bank’s lead ininnovation

— Attract new business and volumes

— Reduce costs by using industrystandards and solutions rather thanproprietary developments.

HSBC SWIFT propositionSWIFT is part of HSBC’s client accesschannels, connecting clients to HSBC’sglobal footprint and depth of capabilityas a top tier global cash managementbank.

HSBC uses SWIFT's StandardisedCORporate Environment (SCORE) toconnect its corporate customers andmaintains a SCORE-compliant Member-Administered Closed User Group(MA-CUG).

“SWIFT is a key building block for HSBC as a globaltransaction bank, bringing clear benefits for customersand for the bank.”Andrew Long, Head of GlobalTransaction Banking, HSBC

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Corporate customers can exchangetreasury confirmations, payments,collections and statement data withHSBC globally using SWIFT's FINand FileAct messaging services.


HSBC considered SWIFT for corporatesin 2003, when French corporatesstarted to adopt it. The rapid take up ofSWIFT across Europe convinced HSBCto embrace it as part of its global clientaccess strategy.

2. Defining the offeringSWIFT is positioned as a standardisedmulti-bank channel alongside HSBCnet(online banking/file upload) and HSBCConnect (host-to-host file transfer).Relying on extensive existing capabilitiesin treasury & cash management servicesHSBC designed its SWIFT offering to beglobal while retaining domestic links.

3. Enabling the organisationHSBC follows a standard productlifecycle methodology to achieve aharmonised development anddeployment of offerings across alllocations. HSBC enhanced its backoffice systems to accommodateSCORE FIN messages and associatedvolumes. Developed centrally, thisfunctionality is then deployed as a‘patch’ in regional application centres.

The roll-out process involvedawareness sessions, training ofimplementation and support teams,development of internal guidelines,collaterals and legal contracts.

After Europe, North America, theMiddle East and Asia, HSBC is nowrolling out SWIFT for corporates inLatin America.

4. Preparing Marketing and SalesRegional commercialisation workis supported by global productchampions.

An intranet site is set up for internalcommunication.

For external collateral, a guidedescribing SWIFT's valueproposition, HSBC's offering andcase studies, launched in Asia asan addendum to HSBC Cash &Treasury manager's handbook willbe expanded globally.

5. Active promotionHSBC actively promotes its SWIFToffering for corporates.

In June 2007 HSBC hosted the firstSWIFT for Corporates day inLondon. In 2008 various SWIFT forCorporates events are scheduled inAsia, Middle East and the USA.The Sibos Corporate Forum is alsoa valuable event for HSBC toshowcase its offering.

HSBC works closely with SWIFT ona joint Go to Market programme,and sales teams in various countrieshold client visits with SWIFT staff.

Next generation capabilities

As a leader in innovation, HSBC has beenfocusing in a number of initiatives related toSWIFT for corporates:

— A new ‘lite’ connectivity option

— SWIFT digital identity initiative

— Development of new standards todematerialise the management of bankaccount mandate and account opening

— ISO 20022 and roll-out of a worldwideXML capability for corporates.

ConclusionHSBC has a rich SWIFT offering forcorporates, fully integrated into its productlifecycle, client channels and worldwidebank organisation.

Now, HSBC sees more and more interestfrom corporates with less than EUR onebillion turnover per annum. For them, SWIFTcan be a real enabler.

For HSBC, SWIFT has the potential toconnect this mid market using an easy andstandardised channel allowing them toexpand the commercialisation of theirservices to a wider set of customers.


— FIN and FileAct


About SWIFTSWIFT is a member-owned cooperative thatprovides the communications platform,products and services to connect over8,300 banking organisations, securitiesinstitutions and corporate customers inmore than 208 countries. SWIFT enables itsusers to exchange automated, standardisedfinancial information securely and reliably,thereby lowering costs, reducing operationalrisk and eliminating operationalinefficiencies. SWIFT also brings the financialcommunity together to work collaborativelyto shape market practice, define standardsand debate issues of mutual interest.www.swift.com


HSBC’s client access offerings, connectingto its worldwide financial services networkCORPORATE

client

HSBC CONNECTHost-to-host file transfer

HSBCnetOnline banking and file upload

SWIFTStandardised multi-bank channel

Other banks

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Bank case studyProduced by: SWIFTFocus: UniCredit

UniCreditUniCredit’s SWIFT offering speeds upcorporates’ processes by providing access tobanks across the globe

UniCredit Group as provider offinancial services is number 2in Europe in terms of marketcapitalisation.The divisionGlobalTransaction Banking isamong the top 3 in Europeantransaction banking and offersproximity in Germany, Italy andAustria and an extensiveinternational network to LargeCorporates, Mid Corporates andSMEs.

Benefits for UniCreditProvides standardised connectivitysolution with global reach withouthaving to develop it

Attracts new business fromcorporates looking for a singleconnection to reach all their banks

UniCredit is a strong supporterof ”SWIFT for Corporates” andactively promotes a completeoffering via its EuropeanGate.

DriversUniCredit sees clear benefits in providingSWIFT to corporate clients as it:

— Provides a common infrastructure fordifferent banks around the world

— Meets the highest security andavailability standards

— Provides independence from proprietarycountry standards and single-bankelectronic banking products

— Simplifies implementation and auditingof statutory payment regulations withglobal impact (e.g. Sarbanes-Oxley)

— Streamlines centralised payments,account info, FX confirmations instandard or local format

— Allows savings in resources,controlling, administrative processesand documentation, etc.

— New possibilities in Trade Services& Finance.

For UniCredit, SWIFT provides astandardised connectivity solution that isglobal without the need to develop ordeploy it on their own. This allowsUniCredit to attract new business andpayment volumes from corporateslooking for such solution.

“UniCredit fully supports SWIFT for its corporate customers,enabling them to connect to any of their banking partners viaone single access.A corporate treasurer's dream come true.”Markus Straußfeld, Managing Director, Cash Management & eBanking Sales, UniCredit

Case study

EuropeanGate

- Authorization

- Validation

- Conversion

- Routing

Single access point

HypoVereinsbank

UniCredit CorporateBanking

Bank Austria

Network of the

Other banks

Localconnection

Regional bankprotocol

Corporateclients

17


UniCredit’s SWIFT propositionUniCredit offers payments and cashmanagement via FIN (e.g. MT101,MT940/2, MT192/5/9, MTx99) andFX/MM confirmations (MT300/320).

UniCredit also offers payments and cashmanagement via FileAct, using a singleaccess point for the entire group via itsEuropeanGate. This allows transmissionof payments in a multitude of formats(national formats, UN Edifact, MT101) andaccount information (MT940).

UniCredit offers MA-CUG services and isregistered in SCORE.


UniCredit considered SWIFT forcorporates back in 2001.

When its first corporate customer waslooking for direct SWIFT connectivity,UniCredit saw the potential of using asingle global gateway to connect tointernational customers across variousfinancial application services.

2. Defining the offeringFrom the beginning, UniCredit defineda complete offering to merge thephysical and financial supply chain.

While large corporations were earlyadopters, it is the internationalapproach of the corporate customerthat was the key driver, not its size.

Supporting SWIFT allowed UniCredit todeliver its services to any customer ona global level, and as requests camefrom all around the world, UniCreditknew it was on the right track.

3. Enabling the organisationUniCredit set up its MA-CUG in 2005and registered in SCORE when it waslaunched in January 2007.

UniCredit offers domestic andinternational payments and cashmanagement as well as FX services.

Using its flexible EuropeanGate,UniCredit can provide corporate accessin any UniCredit Group location.

A project team was put in place tosupport customers from the beginning.

4. Preparing Marketing and SalesDedicated specialists in each countryare part of the evaluation process whencustomers plan to get connected.

Sessions with product managementand SWIFT ensure quality training ofUniCredit’s sales force.

5. Active promotionIn 2005, UniCredit went live with its firstcustomer.

UniCredit identified several types oftarget customers: international masspayment processors, customers doingFX business globally, global customersasking for account information andpayment gateways.

SWIFT is topical for UniCredit at eventssuch as EuroFinance and they organiseworkshops to explain the SWIFT valueproposition to corporate customers.

In 2008, UniCredit joinded the SibosForum for Corporates to promote itsSWIFT offering for corporates.

Next generation capabilitiesUniCredit will continue to enhance itsSWIFT and Electronic Banking offering tocombine the advantage of both worlds.

“This will make the "step in" easier andmore attractive for smaller and non-multinational corporate customers.”

UniCredit is working on developments ininvestment services, exceptions andinvestigations, digital identities, electronicbank account management and ISO20022 XML standards.

To expand its offering in Trade Finance& Services, UniCredit became a SWIFTTSU member.

ConclusionSWIFT for corporates meets the need ofan innovative, future-oriented service forcorporate customers, particularly forthose who need standardisation indomestic and foreign business, centralglobal transaction handling and rapid,secure, reliable performance.

“Supporting SWIFT as a global gatewayfor corporate customers allows UniCreditto win additional business.”


— FIN and FileAct




SWIFT © 2009

1- Exploringthe opportunity

2- Definingthe offering

3- Enablingthe organisation

4- PreparingMarketingand Sales

5- Activepromotion


55634

18


Corporate case studyProduced by: ThoughtwareWorldwideFocus: Arcelor

1

Arcelor Treasury standardizes on SWIFTNet as a single gateway — realizes 605% ROI

Executive Summary Arcelor was formed, in 2002, by the combination of steel giants Aceralia (Spain) ARBED (Luxembourg), and Usinor (France). Arcelor produces flat carbon steel (coated steel sheet, cold coils and hot coils), long carbon steel (beams, concrete reinforcement bars, merchant steel, sheet piling, and rails for public transport), and stainless steel for the appliance, automotive, construction, and packaging industries. Arcelor manufactures about 47 million metric tons of crude steel per year. It employs 95.000 associates in over 60 countries and is a leading player in the global steel industry. In 2002, Arcelor Corporate Treasury recognized a fundamental need to streamline its infrastructure to achieve greater visibility into cash receipts. The Arcelor Treasury was spending significant time in maintaining multiple systems and connection points (ETEBAC 3,5, ISABEL, proprietary bank system, fax, telephone, Internet) each with totally different characteristics (i.e., processes, data quality, availability, timeliness, security level). Additionally, Arcelor was spending an inordinate amount of time and money on maintaining Security protocols for the various connections, which were not consistent and required a growing level of resource commitment. Moreover, any expansion process proved to be tedious. New links with banks were difficult to implement, both in terms of time and cost. Finally, Arcelor Treasury had a Disaster Recovery (DR) plan per geographic location. Testing and maintaining each location’s DR plan was both costly and time consuming. It was impossible to plan for the infinite combinations of bank availability. To overcome these challenges, Arcelor Treasury made the insightful decision to work with the Society for Worldwide Interbank Financial Telecommunication (S.W.I.F.T.) to create a solution that would deliver a simple, secure and reliable communications platform to transmit financial messages to all of its cooperating banks around the globe. By migrating to SWIFTNet, Arcelor Treasury increased the automation of its business, including the flow and sharing of information across the enterprise on a global basis. Subsequently, Arcelor Treasury has managed to reduce risks related to manual activities and position itself to handle any growth in future payments or receipts volume. With SWIFT, Arcelor Treasury is experiencing increased reliability, improved security and enhanced Straight Through Processing (STP) all translating into an impressive financial Return On Investment (ROI) of 605% over five years.

Chairman of the Board & Chief Executive Officer Mr. Guy Dollé

Revenues € 30 Billion

Employees: 95.000

ROI Study Highlights 605% ROI in 5 years 117% IRR in 5 years € 5.993 Million NPV in 5 Years € 220,000 Initial Investment € 8.1 Million projected Net Savings over 5 years

Strategic Benefits Improved Security Increased Reliability Enhanced Straight Through Processing (STP)

Arcelor S.A. 19, avenue de la Liberté L-2930 Luxembourg Phone: +352 4792-1 Fax: +352 4792 2675 www.arcelor.com CAC-40: LOR

Arcelor Treasury Cash Aggregation & reporting

Deal settlement % confirmation

Intraday balances

FileAct Accounts statements collection

Straight Through Processing Automated integration of account statements Automated generation of group payments Integration to ERP applications

Study Scope

19


2

15

5

Cash Pooling Activity

Pre SWIFT Post SWIFT

40

1

Bank Hardware Retirement


40

10

Commercial Management & FinanceHeadcount


Total Investment Cost Structure

Hardw are2%

SWIFTNet10%

Connectivity14%

Consulting/Internal Labor

74%

Financial Impact

Total Benefits Composition

Hardware Retirement

25%Headcount Avoidance

27%

Working Capital

Optimization4%

Other Benefits

4%

Transaction Cost Savings

14%Staff

Reduction25%

Break Even Analysis

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cost s Benef it s

Operational Impact

Working Capital Optimization With SWIFTNet, cash aggregation volume increased by 67%. Using a conservative gain of 5 basis points (bps), Arcelor can invest the additional capital translating into benefits of € 0.43 million, 4% of the total benefits

Staff Reduction Productivity gains from SWIFTNet have led to staff and resource reallocation in two major areas: Treasury Back Office, 12.5% of total staff reduction, and Treasury Commercial Management and Finance, 87.5%. Staff reduction is 25% of the total benefits

Bank Hardware Retirement SWIFTNet, combined with the “Payment Factory,” is helping Arcelor retire over 40 bank messaging systems generating savings of € 20K per bank, per year

Labor and Consulting costs are driven by 3 factors (Legal Contracts Review, Payment Factory Development, and SWIFT Implementation and Testing); 52% Internal and 48% Consulting Connectivity cost cover the linkage to the SWIFT Network and the underlying maintenance SWIFTNet costs encompass the usage fees, including gateway services and network maintenance

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Arcelor will retire 40 bank messaging systems with an average maintenance cost of € 20K per bank, per year With SWIFTNET, Arcelor was able to maintain a 4 person headcount, although its subsidiary activity doubled. Without SWIFTNet, headcount would have increased, especially as transaction processing increased by 150% Efficiencies gained using SWIFTNet contributed to Arcelor reducing department headcount from 40 to 10

Arcelor’s 18 months “break-even-point” was largely driven by the delayed benefit realization of headcount avoidance and reduction, coupled with the hardware retirement of the messaging systems The benefits grew exponentially after recognizing the values of Phase III (Payment Factory) with no additional costs

Future Benefits Extend Payment Factory Functionality

Move beyond the Payment Factory’s current focus of receipts to include urgent and non-urgent payments Use XML standards to eliminate various message formats to enhance payments efficiency

Establish SWIFTNet as the STP Backbone

Connect Arcelor’s ERP system to enable wing to wing communications Standardize, rich information sets to track payments and receipts from initiation to completion Increase automation will enable Arcelor Treasury to focus on exception processing instead of matching P/Os and Invoicing

This study is one of a series of investigations into the costs and business returns of SWIFTNet investments. It is intended to serve business executives and managers who are evaluating investment options to improve the way they conduct Cash and Treasury Management. This case study is based on original research and analysis conducted by Thoughtware Worldwide, LLC, an independent research and consulting firm. Thoughtware Worldwide’s research included on-site interviews with members of Arcelor Corporate Treasury and reviews of company financial and planning documents. Information contained in the publication has been obtained from sources considered reliable, but is not warranted by Thoughtware Worldwide, LLC, or S.W.I.F.T.. © 2005 All rights reserved. For more information about this study, please visit: ThoughtwareWorldwide.com or contact your local SWIFT office

20


Corporate case studiesProduced by: Treasury StrategiesFocus: DuPont

messaging platform and a 203% ROI for DuPontTHE CHALLENGEDriven to achieve straight-through processing and a global view of cash, DuPont embarked on a multi-year, multi-faceted treasury re-engineering project in 2001. DuPont centralized Treasury operations and implemented a global instance of SunGard’s Quantum treasury workstation. Connecting to the operational ERP, SAP, was important from an accounting perspective but the challenges associated with close to 100 banking relationships globally and multiple bank connections remained.

Treasury staff dedicated to collection of bank information from various sources, leaving little time for strategic activities

Manual intervention, leading to operational risk

Lack of global visibility and ability to optimally manage cash.

THE OBJECTIVEDuPont sought a solution to automatically load banking data directly into its Treasury and Accounting systems and improve global visibility to cash. The solution had to meet the following key requirements:

Bank neutral—ability to “plug and play”

Single platform and access point for global financial messaging

Straight-through processing

Reliability leading to simplicity and stability

Highest level of security and resiliency— eliminating multiple security packages for multiple connection points

Positions DuPont for growth - volumes, customers, acquisitions, applications.

THE INITIATIVEDuPont selected SWIFT as only solution with bank independence, global reach and ability to handle treasury and payments operations. The project was implemented in 18 months, including the integra-tion with its treasury and ERP systems and consolidation of U.S. banking relationships. DuPont uses SWIFT for all of its financial transactions and bank statement data globally and for payment and receivables related data in the U.S. Europe and Asia are expected to follow with payment and receivables data in the next 12 months.

Background: DuPontWith revenue of over $27.4 billion, E.I. DuPont de Nemours Company (DuPont) is among the world’s largest chemical companies.

Headquartered in Wilmington, Delaware

Operates in over 70 countries

Employs 60,000 individuals

Background: TreasuryCentralized operations across three centers worldwide

Management of SWIFT as financial communications channel for treasury and business units

Global implementation of treasury workstation and single instance of ERP

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

T H E D U P O N T C A S E S T U D Y

Supporting Global Growth through SWIFT Connectivity

SWIFT IMPLEMENTATIONReceive

Account info and statements in BAI2 format (FIN and FileAct)

Lockbox and ACH data files (FileAct)

Send Treasury payments (FIN)

Payments files—wires, ACHs, checks & FX payments (FileAct)

Alliance

Singapore

Spain

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T H E D U P O N T C A S E S T U D Y

THE COST / BENEFITDuPont is realizing its objectives of straight-through processing and a single global financial messaging platform.

Implementation and ongoing costs includeProject management and operational costs— time required to establish the infrastructure, connections and system interfaces (SAP and Quantum) and manage the server environment

SWIFT costs—including subscription, infrastructure and FIN and FileAct traffic.

Benefits includeIT labor savings — reduced infrastructure maintenance for lines, connections, translations, etc.

Treasury labor savings — business process improvement relative to global centering activities result in avoidance of headcount increases

Retirement of bank messaging systems— 25 over two to three years

Working capital optimization—improved visibility to cash globally will enable DuPont to more efficiently manage the concentration and disbursement of funds

The business case resulted in a net benefit of $ 2.5 million and ROI of 203% over 5 years, and a payback in 3 years.

With the infrastructure in place, benefits will continue to increase as messaging volumes increase, the scope of DuPont’s use of SWIFT expands and Treasury can focus on more strategic initiatives.

THE CONCLUSIONWith the implementation of SWIFT, DuPont has achieved a paradigm shift in Treasury operations.Resources will no longer be tied down by managing a multitude of bank connections and data loads. DuPont has and will continue to realize cost benefits from automation and the adoption of a single messaging platform. Timely integration of account information improves global visibility of cash result-ing in financial benefits. The company now has a scalable platform to support its growth objectives.

The above analysis was performed by Treasury Strategies, Inc. during the second quarter of 2007.For more information on this case study, please contact Treasury Strategies at: [email protected] or your local SWIFT office.

About Treasury Strategies, Inc.Treasury Strategies, Inc. is the leading Treasury consulting firm working with corporations and financial institutions. Our experience and thought leadership in treasury management, working capital manage-ment, liquidity and payments, combined with our comprehensive view of the market, rewards you with a unique perspective, unparalleled insights and actionable solutions.

“Now that we have the pipe in place (access to SWIFT), it is just a matter of pushing whatever we can through it.”

—DUPONT GLOBAL TREASURYIT MANAGER

SWIFT Infrastructure

17%

Project Management 12%

Servers &

Operations 41%

Applications (interface SAP/Quantum)

15%

Traffic 13%

SWIFT Subscription

2%

Bank Messaging Systems Savings

38%

Treasury Labor Savings

29%

IT Labor Savings

20%

Working Capital Optimization

13%

Investment Components

Benefits Components

Breakeven Analysis

© 2007 Treasury Strategies, Inc.

$4.5$4.0$3.5$3.0$2.5$2.0$1.5$1.0$0.5$0.0

2006 2007 2008 2009 2010 2011

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22


Corporate case studyProduced by: ThoughtwareWorldwideFocus: GE

1

GE Corporate Treasury moves to global banking industry solution SWIFTNet — 406% ROI to be realized

Executive Summary GE is a diversified technology, media and financial services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming and plastics, GE employs more than 300,000 people worldwide in over a dozen operating segments and it operates in more than 100 countries. In order to run its businesses GE makes millions of payments each year, many of which must be made within a specific time frame to meet contractual obligations with its customers and suppliers. GE Corporate Treasury serves over 4,000 business units within the GE family of companies, spanning some 20,000+ bank accounts with nearly 200 banks around the globe. Every day, GE Corporate Treasury manages billions of dollars – money that must be collected from customers and paid to vendors around the globe, in over a dozen foreign currencies. For GE, availability, reliability, security and control are paramount to get the job done. In 2004, GE Corporate Treasury, like most large multi-nationals, was wrestling with multiple banking relationships and connections to execute their cash management (payment and receipts) strategies. Scaling to handle the volume and demands of it’s growing business, GE would have required an increase in headcount to process more than the current 50% level of treasury volume. IT (Information Technology) was spending a significant amount of resources to maintain multiple systems and connection points. Each connection was different—systems, processes, and data (quality, availability and timeliness) impacting GE’s ability to quickly assemble a view of its current cash positions. IT was in an endless cycle of break-fix, work-a-rounds and updating and maintaining various security protocols. To overcome these challenges, GE made the decision to use SWIFT, and its SWIFTNet Corporate-to-Bank (C2B) solution to provide GE with a simple, secure and reliable communications platform to transmit financial messages to and from GE’s banks around the globe. SWIFT serves 7,800 financial institutions in more than 202 countries. With SWIFTNet, GE is able to create one window from its internal Treasury Workstation, (GE WebCash) directly to its banks. The SWIFTNet solution allows GE to replace its existing fragmented approach, comprised of point-to-point, EDI VANS (Value Added Networks) and proprietary bank connections to one single, reliable, integrated non-repudiated platform. Since the implementation began, GE Treasury has realized enormous benefits from the combination of SWIFTNet and GE WebCash. GE is experiencing increased reliability, enhanced security and controllership, which translates into an impressive financial Return On Investment (ROI) of 406% over five years.

General Electric Company 3135 Easton Turnpike Fairfield, CT 06828-0001 United States Phone: 203-373-3476 www.ge.com NYSE: GE

Chairman of the Board & Chief Executive Officer Mr. Jeffrey R. Immelt Revenues $152.4 Billion Employees 300,000+

ROI Study Highlights

ROI of 406% in 5 years

IRR of 59% in 5 years

Strategic Benefits

Enhanced Security

Improved Flexibility

Increased Automation

Increased Visibility

Study Scope

Corporate Treasury Payments activity only

Does not include receipts

Does not include Business Unit Cash & Financial Management Activity

23


2

50

0

Connection Failures

Pre SWIFT Post SW IFT

38

1

Num ber Of Connections

Pre SW IFT P ost SW IF T

299393

Transactions per FTE


Working Capital

Optimization75%

Capital Growth Avoidance

25%

Financial Benefits

Benefits

Operational Impact

Improved Reliability By implementing SWIFTNet, GE Corporate Treasury has reduced the number of connection failures. Pre-SWIFTNet, the average connection failure was 50 times per year, with SWIFTNet no connection failures have occurred Simplification Before implementing SWIFTNet, GE Corporate Treasury dealt with over 100 banks with 38 proprietary software connections. With SWIFTNet fully implemented the number of connections will drop to one Operational Efficiency By implementing SWIFTNet, the Treasury Operations team can increase the activity volume per resource by 31%

Thoughtware Worldwide’s analysis shows GE Corporate Treasury will generate $10.5 million in net benefits over five years from its investment in SWIFTNet. More importantly, GE achieves a positive return from its investment in SWIFTNet based on the operational benefits alone

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Beyond the operational benefits, GE Corporate Treasury will achieve long term benefits from increased visibility and availability of its cash around the globe. This translates into improved cash management and reduced borrowing by optimizing the use of its idle cash

Bank-wide adoption and support of SWIFT’s FileAct, delayed GE’s realization of benefits for the first years of its investment. As banks adopt FileAct, GE continues to increase its benefits realization

Operational Benefits

Hardware Retirement

1%

Network Cost

Avo idance4%

Software Retirement

5%

Cash M gr. Ops. Savings

20%

Traffic Monitor

Elimination22% IT M apping &

M aint. Savings

48%

Break Even Analysis


Cost s Benef it s

Future Benefits “Standards Need to Become Standards” Full automation and Straight Through Processing (STP) can not be achieved without standards. SWIFTNet enables rich data capture and transmission making STP possible

ERP Integration Extending SWIFTNet to support other financial messaging requirements, will increase the quality and transparency of its recording, reporting and reconciliation of transactions translating into optimized working capital

Availability and Support In the 24x7, global, multi-currency world, connectivity, support and availability are paramount to running a successful enterprise. By moving to standards, like SWIFTNet, all participants can reallocate resources to more value-added activities

This study is one of a series of investigations into the costs and business returns of SWIFTNet investments. It is intended to serve business executives and managers who are evaluating investment options to improve the way they conduct Cash and Treasury Management. This case study is based on original research and analysis conducted by Thoughtware Worldwide, LLC, an independent research and consulting firm. Thoughtware Worldwide’s research included on-site interviews with members of GE Corporate Treasury and reviews of company financial and planning documents. Information contained in the publication has been obtained from sources considered reliable, but is not warranted by Thoughtware Worldwide, LLC, or S.W.I.F.T.. © 2005 All rights reserved. For more information about this study, please visit: ThoughtwareWorldwide.com or contact your local SWIFT office

24


Corporate case studyProduced by: Treasury StrategiesFocus: Iberia

SWIFT enables the consolidation of banking systems and achieves a 276% ROI for IberiaTHE CHALLENGEPrior to 2006, Iberia was running its treasury operations in a decentralized manner with 85 banks in 47 countries, over 160 bank accounts and 60 electronic banking platforms. This environment led to a number of challenges:

Obtaining visibility to and managing liquidity across locations and countries

Centralizing payment origination activities

Managing multiple payments formats and authorization procedures

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

THE OBJECTIVEIberia sought a solution to address these issues and embarked on a project to centralize its treasury operations globally. The objectives were to:

Better control Euro liquidity through cash pooling

Integrate payment activities of local offices into the central treasury

Standardize and unify banking communication systems

Automate the capture of bank account statements

Optimize the management of payments through a single bank and standardized payment formats

Improve the process of payment authorization

Centralize the execution of FX operations

Reduce operating costs

THE INITIATIVEIn February 2006, Iberia’s project to centralize its treasury operations for Europe and North America in Madrid began. Iberia then selected SWIFT as the single communication platform to interface with its treasury management systems. In addition, the company standardized its payment formats and established a single payments authorization module. To further support the centralization, Iberia rationalized its banking relationships to a single gateway bank. The company plans to set up a treasury center for Latin America.

Background: IberiaWith revenues of over 5.5 billion, Iberia is the largest air transport group in Spain and the fourth largest in Europe.

Headquartered in Madrid



Background: TreasuryCentralized treasury operations for Europe and North America through Madrid and in Latin America

Management of cash positions, payments and collections

Design and execution of interest rate & FX risk programs

Banking relationships

“SWIFT played a main role to achieve all the objectives of our treasury centralization project.”

T H E I B E R I A C A S E S T U D Y


SWIFT IMPLEMENTATION

MT101 sent via FIN for high value treasury and supplier payments

MT101 and PAYMUL files sent via FileAct for low value, UK ACH and PE-ACH supplier payments

PAYMUL for foreign and domestic cheque payments sent via FileAct

Alliance Access & Gateway

XRT

QuantumTreasury Management

System

GL

AP

AR

OracleAuthorization

Transfer System (XBE)

Local Banks

Payment, Cash & Treasury System

(XRT)

systems IWWIS

aachieves and ems nocehtselbaneTFIIF

Iberiafor ROI 276% anabfoofnoitadilosnberia

gnng ikn

Managing

Centralizing

Obtaining

number ato countries,47

2otroirPCHALLENGETHE

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25


T H E I B E R I A C A S E S T U D Y

THE COST / BENEFITIberia has realized its objectives of centralizing its treasury operations and, by using SWIFT, of consolidating its banking systems into a single global financial messaging platform.

Implementation and ongoing costs include:Application integration—cost to adapt its treasury systems and to connect them to SWIFT

Project management—time required to establish the infrastructure and to plan and execute the project

Servers & Operations—cost required to install and to operate the infrastructure on an ongoing basis

SWIFT costs—MA-CUG registration fees, infrastructure and FIN and FileAct traffic

Benefits include:Cost of operating bank messaging systems— 60 systems retired over two years

Treasury & IT labor re-allocation—re-allocation of resources following centralization of banking messaging activities previously handled in the local offices

The business case resulted in a project ROI of 276% over 5 years, and a payback in 25 months.

With the SWIFT infrastructure in place, Iberia plans to expand its use of SWIFT to trade confirmations and matching, and to communicate with its domestic banks.

THE CONCLUSIONSWIFT was a cornerstone in the centralization of Iberia’s treasury operations by enabling the consoli-dation of a multitude of banking systems into a single messaging platform. The centralization, auto-mation of payments processes and capture of bank statements allowed the re-allocation of treasury and IT resources. The flexibility of SWIFT allows Iberia to standardize payments formats and send high value payments, low value mass payments and cheques via a single system.



“We are really happy with

platform and the whole process from payment

-

– IBERIA’S HEAD OF TREASURY AND RISK MANAGEMENT

SWIFT Infrastructure

22%


Servers &

Operations 34%

Application Integration

25%

Traffic 8%

MA-CUG Registration

3%

Cost of Operating

Bank Messaging Systems

59%

Treasury Labor

Reallocation 27%

IT Labor Reallocation

14%


Benefits Components

Breakeven Analysis


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26


Corporate case studyProduced by: Treasury StrategiesFocus: Microsoft

SWIFT initiative provides integrated view of cash and a 326% ROI for MicrosoftTHE CHALLENGEWith over 1,000 bank accounts distributed across more than 100 banking partners, Microsoft faced challenges in optimizing the concentration of funds globally and efficiently managing the reconcili-ation and posting of bank information. The point-to-point connectivity built with a handful of primary banking partners was not scalable across multiple banking partners due to the support required for multiple data formats, security protocols, transport layers and business logic. A view of balances in these other banks was limited to monthly statements making it impossible to effectively manage or control these balances, an increasingly unacceptable position in the current risk, regulatory and global business environment. The inability to aggressively consolidate and concentrate funds resulted in a sub optimal investment of cash.

THE OBJECTIVEBacked by its vision of a single enterprise wide financial messaging portal leveraging industry messaging standards, Microsoft’s goal is to achieve a near-time / real-time view of cash across all accounts globally (every bank account reporting electronically into SAP every day over SWIFT). Further banking partner connectivity goals to achieve its vision include:

A single secure, reliable, resilient and cost effective channel for communicating with all banking partners

Leverage industry standard data formats (FIN, BAI, FINSTA/EDIFACT and ISO 20022 XML)

Send and receive enriched data in order to increase automation and straight through processing (STP) to the SAP ERP system.

THE INITIATIVEMicrosoft embarked on its SWIFT initiative in early 2006 with the installation of the SWIFT infrastructure and integration with SAP using Microsoft’s BizTalk Server. The company went live October 2006 and as of December 2007 had 14 banks providing MT940’s (prior day statements) for 420 bank accounts. Plans are to add an additional 60 banks in the next two years. The company is also receiving MT942s (intraday statements) from collection, concentration and custody accounts and in 2008 will begin sending treasury wires via FIN and receiving ISO 20022 XML next generation statements as well as billing analysis files via FileAct.

Background: MicrosoftWith revenue of over $50 billion, Microsoft is the world’s leading software development company.

Headquartered in Redmond, Washington


Employs close to 80,000 individuals

Background: TreasuryOne centralized Treasury Dept. in Redmond (130 employees) with 5 business groups:

Credit & collections located around »

the world

Capital Markets (Redmond)»

Global Cash Mgmt. (Redmond)»

Corporate Finance (Redmond)»

Risk (Redmond)»

1,000 bank accounts globally with 100 banks

5,000 Treasury wires monthly, value of $70B

Global implementation of SAP ERP and Treasury Workstation

“Pockets of cash are all over the place… Want a single view

“A corporation cannot manage

T H E M I C R O S O F T C A S E S T U D Y

Global Real Time Visibility through SWIFT Connectivity

SWIFT IMPLEMENTATIONReceive

Account info and statements MT940s & MT942s (FIN)

PlannedLockbox and billing analysis (822\BSB) data files (FileAct)

Receive statements in XML

Send Planned 2008

Treasury wires (FIN)

Microsoft BizTalk Server 2006

Microsoft BizTalk Adapter for SAPMicrosoft BizTalk

Accelerator for SWIFT

Bank A

Bank B

Bank C

MICROSOFT SQL SERVER 2005 REPORTING SERVICES

Custom Data Entry Querying & Reporting Tools

MICROSOFT SQL SERVER 2005 ENTERPRISE X64 EDITION

SAP ERP Treasury Workstation

WINDOWS SHAREPOINT SERVICESMicrosoft Office InfoPath 2003

Supports SWIFT messages outside of SAP

ENTERPRISE B2B SYSTEM

HT CTFOSORI CMH E YU DS TESAC

view IWWIS

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27


T H E M I C R O S O F T C A S E S T U D Y

THE COST / BENEFITMicrosoft is realizing its goals of a near time / real time global view of cash, adoption of industry standard message formats and achieving straight through processing.

Implementation and ongoing costs includeProject management and operational costs—time required to establish the SWIFT infrastructure, connections (Microsoft BizTalk) and system interfaces (SAP) and manage the server environment.

SWIFT costs—including subscription, infrastructure and FIN and FileAct (future) traffic.

Benefits includeIT Labor savings—elimination of/avoidance of time to maintain bank messaging systems

Treasury Labor savings—reduced time to more effectively manage global cash, handle month-end close, monitor bank account balances, manage repatriations and reconcile accounts

Cost avoidance of establishing additional bank messaging systems—70 over three years / 100 over 4 years

Working capital optimization—later wire cutoff times will accelerate Microsoft’s access to cash and improved visibility to global cash will enable Microsoft to optimize un-invested cash more efficiently

The business case resulted in a net present value of $4.9 million and ROI of 326% over 5 years, and a payback in 24 months.

Beyond the immediate plans to bring all banks on board, migrate existing treasury wire payment messages to SWIFT, and migrate the transport of lockbox and billing analysis files to FileAct, Microsoft plans to leverage SWIFT in the future for the following:

Use of ISO 20022 XML for enriched data (statements, cash reporting, wire payment messages) in order to automate G/L postings and cash application in the ERP system

Capital markets operations (trade confirms, FX settlement, etc.)

Exception and investigation messages.

FileAct for 822 and BSB billing analysis files as well as other data exchange processes

THE CONCLUSIONWith the implementation of SWIFT, Microsoft has laid the groundwork for and embarked on a course to realize a true global view of cash, a single and secure channel for banking data across the enterprise and increased automation and straight through processing through sending and receiving enriched data / industry standard messages.

The above analysis was performed by Treasury Strategies, Inc. during the fourth quarter of 2007.For more information on this case study, please contact Treasury Strategies at: [email protected] or your local SWIFT office.


“SWIFT is enabling Microsoft to build one centralized ‘source of truth’ for all banking data shared

Project Management

8%

Application Development

(Integration with SAP) 70%

SWIFT Training 1%

Working Capital

Optimization 20%

Bank Messaging Systems & Vans

39%

IT Labor Savings

24%

Transaction Processing Efficiencies

7%


Benefits Components

Breakeven Analysis


Servers & Operational

8%

SWIFT (1x) Software Subscription

3%

SWIFT Business Assessment Program 1%

Messaging Traffic & Annual

Participant Charges

8%

Treasury Labor

Savings 10%

$12.0

$10.0

$8.0

$6.0

$4.0

$2.0

$0.02006 2007 2008 2009 2010 2011


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28


Corporate case studyProduced by: SWIFTFocus: Novartis

Novartis InternationalNovartis International achieves 120%ROI over five years using SWIFT to replacemulti-bank system and automate confirmations

“When we had to replace our bank messaging system,we took SWIFT to reach all our banks directly,with the highest security”Head ofTreasury Control and Reporting

Case study

Novartis is a world leader inproviding medicines to protecthealth, prevent and treat diseaseand to improve well-being.Thefirm has 100,000+ employeesand realised group net sales ofUSD 37 billion in 2006. ItsGroupTreasury ensuresfinancial risk management,optimises use and profitability offinancial resources and providesfinancing and financial servicesto the operating businesses.

Business challengesReplacement of multi-bank system

Automation of FX confirmations

Increased security

Benefits for NovartisSingle channel to payment banks

Cost savings on IT and personnel

Greater control and security

Business challengesBefore using SWIFT for corporateconnectivity, Novartis Group Treasuryfaced three challenges:— the replacement of its multi-bank

system when the incumbent providerannounced that support would cease

— automation of FX deal and depositconfirmations sent by fax, as banksno longer accept these

— increased security for paymentstransactions in general.

A implementation project was launched inApril 2006 and completed within six months.

InvestmentInvestment included joining and MA-CUGregistration, infrastructure and traffic fees.

The project covered evaluation, joining/ordering, installation, connection tomiddleware, testing with bank partnersand go-live.

Operations cover daily management ofSWIFT interface and connection.

Investment

Projectmanagement24%

SWIFTinfrastructure41%

Traffic12%

Servers +operations7%

Joining/service fees16%

29


Benefits for NovartisThrough SWIFT, Novartis now has a singlechannel to reach its payment banks andwas able to automate previously manualfax and investigations operations.

Novartis has been able to reallocatetreasury operations staff to otherfunctions, make substantial savings onmanual labour costs and reduce bankmessaging costs.

The new architecture provides:

— better control of messages that areleaving Novartis

— robust security with the higheststandards built in

— an automated solution that could beused for other divisions or countries.

These benefits translate into a financialROI for Novartis of 120% over five years.

Solution overviewA SWIFT implementation project waslaunched in April 2006 and completed withinsix months. Novartis now uses FIN to sendFX deals and deposit confirmation (MT 300,305, 320 350), and their related paymentinitiations (MT 101) and notifications (MT210). The intention is to receive statementsvia SWIFT by end of 2007.

Novartis exchanges confirmations withabout 20 banks and has MA-CUG(Member Administered Closer UserGroup) contracts with four banks to sendthe related payment initiations andnotifications. Registration in SCORE wasalso recently completed.

On a daily basis, Novartis uses SWIFT forcash management, risk management andinvestments. Depending on the nature oftrades done, different MTs will be generated:

— FX deals are confirmed with MT 300and related movements generate MT101 and MT 210

— Deposits are confirmed with MT 320.

Future opportunitiesIn addition to its current usage of SWIFT,Novartis is considering:

— use of Accord for matching ofconfirmations

— sending and receiving messagesrelated to securities transactions (MT5xx), currently exchanged by fax

— executing mass payments via FileAct

— implementing the reception ofstatements (MT 940) as well asconfirmations of debit and credit(MT 900 and MT 910) via SWIFT.

Solution overview

— Participant in four MA-CUGs andmembership of SCORE

— FIN to send FX confirmations,payment initiations and notifications



SWIFT © 200855588

BenefitsBanking messagingcost savings22%

Manuallabourcostsavings50%

Treasury opsstaff re-allocation28%

Treasurysystem(OMR)

Middleware

Novartis entities— Switzerland: Novartis AG, Holding, Pensionfund— Luxembourg: Novartis Investment— Bermuda: Novartis Securities Investments— Gibraltar: Novartis Insurance

Banks

Novartis International

Alliance

30


Corporate case studyProduced by: Treasury StrategiesFocus: Petronas

SWIFT delivers straight through processing and a 414% ROI for PETRONASTHE CHALLENGESupporting the financial needs of a Global FORTUNE 500 firm, the Group Treasury Division of PETRONAS manages significant daily volumes of payments and foreign exchange flows. Prior to August 2005, payment requests, notifications to receive and deal confirmations (FX and securities) were handled via semi-automated telexes and manual faxes. To meet these challenges in an environment of rapidly growing activity, PETRONAS realized it needed to establish standard and reliable processes with its banks to achieve its goals.

THE OBJECTIVEPETRONAS’ goal was to improve efficiency and control by automating manual activities via straight-through processing.

Straight through processing, eliminating manual faxes and processes, reducing errors and error rates

Reduced costs (staff overtime, telex, fax, etc.)

Enhanced controls around and visibility to transactions, notifications and confirmations

Streamlined operations and increased Treasury staff efficiency and productivity

Fewer bank interfaces to support

Increased security for transmissions

THE INITIATIVEAfter assessing its options, PETRONAS embarked on a two pronged initiative in September 2004.

Implement a Treasury Workstation, Trema Suite, to automate processes and interface with the 1)

company’s Enterprise Resource Platform, SAP

Communicate with their 6 primary banks via SWIFT to achieve greater straight-through-processing 2)

in payment requests, notifications and confirmations.

Background: PETRONASWith revenue of over $50 billion, Petroliam Nasional Berhad (PETRONAS) is a leading oil and gas multinational whose businesses encompass the full spectrum of oil and gas operations.

Headquartered in Kuala Lumpur, Malaysia



Background: Group Treasury Division Manages surplus cash for 60+ subsidiaries / business units

Responsible for interest rate and FX exposure management

Local subsidiaries manage operational accounts and daily payables and receivables

“With SWIFT, we now have a standard and reliable process with all our banks”

T H E P E T R O N A S C A S E S T U D Y


SWIFT IMPLEMENTATIONFIN

Treasury payments

Notifications to receive

FX & securities deal confirmations

Statements

FileActInstruction letters to suppliers

Predefined format

PDF format

Alliance

Group Treasury (Trema)

E&P Business Unit(subsidiary)

(SAP)

Group Accounts & Services (SAP)

FIN

FIN

FileAct

and IWWIS

PETRONASfor ROI 414% ahgghiigartssrrseviledTFIIFETRONAS

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T H E P E T R O N A S C A S E S T U D Y

THE COST / BENEFITPETRONAS achieved its objectives of enhanced productivity, enhanced controls and greater straight through processing.

Implementation and ongoing costs include:Project management costs—including a link to Trema Suite which was already SWIFT-enabled

SWIFT operations costs—including Alliance capital expenditure and maintenance, traffic and transaction costs

Benefits include:Treasury staff growth avoidance—treasury staffing levels have remained constant at 8 despite a doubling of transaction volumes and a 55% reduction in overtime

Savings in telex and bank processing costs—due to automation and straight through processing

Increased interest earned—as a result of increased funds available due to payments that can be released a day later

Enhanced strategic focus—Operational efficiencies have allowed Group Treasury Staff and Executives to focus on more strategic initiatives for the company such as the planned implementa-tion of a shared services center / payments factory.

All of the above quantifiable benefits have resulted in a net benefit of $1.1 million over 5 years, an ROI in excess of 400%, and a payback period of 14 months. Additional financial benefits will be realized with the shared service center / payments factory.

THE CONCLUSIONPETRONAS has achieved a single channel and straight through processing with its banks. Building on this initial project, they have begun plans for a shared service center and payments factory that will be using SWIFT as its messaging infrastructure.




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32


Corporate case studyProduced by: ThoughtwareWorldwideFocus: Swiss-Re

1

Swiss Re’s Asset Management, Finance Zurich and Global Cash Management move to SWIFT for direct access to bank network—achieves more than 4x savings to original investment through better visibility and automation in a secure, harmonized solution

Executive Summary Swiss Re is the world’s leading and most diversified reinsurer. The company operates through offices in over 25 countries. Founded in Zurich, Switzerland, in 1863, Swiss Re offers financial services products that enable risk-taking essential to enterprise and progress. The company’s traditional reinsurance products and related services for property and casualty, as well as for life and health business, are complemented by insurance-based corporate finance solutions and supplementary services for comprehensive risk management. Challenges with Previous Banking Infrastructure Before implementing the SWIFT platform, Swiss Re Asset Management (in 2001), Finance Zurich (in 2004) and Global Cash Management (in 2006) faced significant challenges associated with their previous bank communications infrastructure. To improve returns on equity during the critical “After—9/11” period, the firm had substantially increased its trading activity, a move that heightened the burden on internal processes and systems. In 2000 Swiss Re’s Asset Management team made a decision to consolidate and centralize its back-office systems in order to improve it’s asset management steering based on world-wide consolidated information and to improve processes company-wide to drive greater productivity and standardization. This strategic direction of systems’ harmonization also created the opportunity to improve communication with banks and custodians which was, at the time, cumbersome and often delayed. Objectives in Moving to a New Bank Communication Platform To address these shortcomings, Swiss Re’s Asset Management and Finance Zurich management teams made a strategic decision to consolidate their bank/custodian communications systems enabled by a single bank gateway, SWIFT. They began the process by establishing a clear set of objectives, including the following business priorities:

Increase information flow and data quality by maximizing Straight Through Processing (STP) with custodians and banks Optimize business processes and increase visibility Create a timely, single view of all bank-related activities, enabling Swiss Re to move closer to the banks Leverage existing headcount and improve productivity while increasing trading and cash management activities

By moving to SWIFT, Swiss Re Asset Management and Finance now have direct access to the bank/custodian network enabling better communications, information quality and processes, scaling activities and resources without adding headcount, complexity or redundant data entry into multiple systems.

Swiss Reinsurance Company Mythenquai 50/60 PO Box 8022 Zurich Switzerland Phone: +41 43 285 21 21 Fax: +41 43 285 2999 www.SwissRe.com SWX: RUKN Chief Executive Officer Jacques Aigrain Chief Information Officer, Financial Services Sylvia Steinmann Chief Information Officer, Finance Walter Engler 2006 Premiums earned CHF 29,515 million 2005 Premiums earned CHF 26,891 million Employees 10,891 (as of Dec 31, 2006)

Direct access to bank network Global harmonized reach Enable information integration Faster, more efficient and more secure

Key Benefits

Payback within 25 months1

~CHF 16,8 M (~€€ 10,6 M) Net Savings over five years

ROI Study Highlights

1 Based on sequencing of roll-out to CM/Finance

Business groups Asset Management Finance (Operational Payments) Global Cash Management

Study Scope

33


2

14

3Trade

Reconciliation


+78% Improvement

0 5000 10000 15000

2004

2005

2006SWIFT

MessageGrowth

Finance Asset Mgmt

+168% (Finance)+53% (AM)

Growth

BBrreeaakk EEvveenn AAnnaallyyssiiss

€-

€2,000

€4,000

€6,000

€8,000

€10,000

€12,000

€14,000


Costs Benefits

€ 0

€ 2,000

€ 4,000

€ 6,000

€ 8,000

€ 10,000

€ 12,000

€ 14,000

€ 0

€ 2,000

€ 4,000

€ 6,000

€ 8,000

€ 10,000

€ 12,000

€ 14,000

CHF 0

CHF 3,570

CHF 7,150

CHF 10,715

CHF14,285

CHF 17,850

CHF 21,430

CHF 25,000

CHF 0

CHF 3,570

CHF 7,150

CHF 10,715

CHF14,285

CHF 17,850

CHF 21,430

CHF 25,000

Financial Impact

Quantifying the SWIFT Investment Labor costs (33%)—implementation, maintenance, staging and mapping Other infrastructure (31%) is bureau costs for accessing the SWIFT network Combined SWIFT costs (30%) are membership fees (25%), traffic costs (3%), and BIC costs (2%). Swiss Re’s high value, low volume drives the modest traffic fees and its global reach and legal model dictates the multiple BICs

Benefits Achieved from SWIFT Increased visibility for better cash pooling (~40% reduction); a sizable benefit (13% of overall study benefits) given Swiss Re’s size Increased visibility and action enables working capital growth avoidance (78% of total study benefits). Historically Swiss Re had been growing working capital in excess of 15% year over year

SWIFT Breakeven Analysis Quick implementation, quick payback— ~25months elapsed due to staged roll-out Scale, growth and efficiency as usage increases Over ~CHF 16,8 million (~€ 10 million) in net benefits over five years Standards promoting reduced costs, improved business performance and overall economic value

Operational Impact

Scaling Scaling with more efficient processes. The previous approach would have constrained Swiss Re’s ability to keep up with the growth. With SWIFT, dramatic increases in volumes are not a problem and do not require additional headcount.

Reconciliation Greater efficiency — as trading activity increases, the SWIFT solution is helping improve trade processes (settlement, reconciliation and reporting) elimination or errors and redundancies in data entry.

Abo

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eVa

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Mea

sure

men

tSe

ries

This study is one of a series of investigations into the business value companies have derived from their investment in SWIFT solutions. It is intended to serve business executives and managers who are evaluating SWIFT solutions to improve the way they operate their business. This case study was commissioned by SWIFT, and is based on original research and analysis conducted by Thoughtware Worldwide, LLC., an independent research and information services firm. Thoughtware Worldwide’s research included on-site interviews with members of Swiss Re’s management team and reviews of company financial and planning documents. Information contained in this publication has been obtained from sources considered reliable, but is not warranted by Thoughtware Worldwide, LLC. or SWIFT, S.C.R.L. © 2007 All rights reserved. For more information about this study, please visit www.ThoughtwareWorldwide.com or contact your local SWIFT office

Summary SWIFT is helping Swiss Re’s Asset Management, Finance and Treasury realize its operational excellence goal by providing a single portal to the financial industry, enabling secure, reliable financial messages and payments with greater efficiency, and visibility.

Investment Benefits Breakeven

* Cumulative costs and benefits in dual currency—CHF and Euros

-Thousands- -Thousands-

34


Corporate case studyProduced by: SWIFTFocus:T-Mobile

T-Mobile rationalises its electronic bankingplatforms using SWIFT and achieves 182% ROI

“Using SWIFT,T-Mobile can run a central platform with asingle standard for every country and every bank forthe first time.”Vice President Finance &Treasury,T-Mobile International

Case study

T-Mobile provides mobilecommunications services to 103million customers in 12 countries.The company, established in1999, is responsible for the mobilecommunication business of theDeutscheTelekom Group and iswholly-owned by DeutscheTelekomAG.T-Mobile employs55,000 people and had revenuesof EUR 23.6 billion as ofSeptember 2006.

Business challengesSpecial e-banking systems in fourcountries led to high costs

Decentralised structure made itdifficult to control payment flows

Multiple banks and accounts atnational level

Benefits forT-Mobile’s clientsCentral platform with single standardfor every country and every bank

Staff re-allocation, bank messagingsystem cost reduction, economiesof scale

Improved security and simplifiedcompliance

T-Mobile uses SWIFT as its messagingplatform to support an in-house bank andpayment and collection factory,processing payments and statements forits European subsidiaries.

Business challengesBefore SWIFT, each national companyhad its own bank interfaces and formats.Across four countries, a total of 15different systems were in place.

The costs for operating and maintainingthese interfaces were very high. Thedecentralised structure made it difficult forT-Mobile to control its payments flows anddid not allow payment orders to be signedusing distributed electronic signatures(first local, second central).

In-housebank(SAP)

Internationalfinanceportal

— National payment formats sent via FileAct using XML wrapper,without conversion cost

— Bank application acknowledgement received via FIN

National T-Mobile International Bankscompanies

Alliance

Intranet

LocalERP(SAP)

LocalERP(SAP)

LocalERP(SAP)

. . .

35


InvestmentT-Mobile’s investment includes SWIFTcosts to cover:

— joining MA-CUGs (MemberAdministered Closed User Groups)

— infrastructure, consisting of AllianceAccess and Gateway

— traffic, mainly FileAct files includingdirect debits.

The other project costs include:

— project management to plan anddeploy the infrastructure and SWIFTrelated part of the payments factory

— servers + operations, to run theSWIFT infrastructure, perform dailyoperations, maintenance, etc

— middleware enhancement to providethe connection to Alliance and allowFIN and FileAct messaging.

Benefits for T-MobileGenerates operational and financialbenefits for T-Mobile:

— Cash management operations laboursavings: a higher degree ofautomation allows T-Mobile tore-allocate two staff equivalent

— Banking systems cost savings: usingSWIFT, T-Mobile can retire 15 systemsin four locations

— Transaction processing efficienciesfrom central operations lead toeconomies of scale and reduction inpayment transactions costs.

This translates into net benefits of EUR4.5 million over five years – and a financialreturn on investment (ROI) of 182%.

T-Mobile is able to achieve a payback onits investment in three years.

In addition to the quantified benefits,T-Mobile can lower the risk of fraudbecause only group treasury can releasepayments, and now does so to fewer banks.

Solution overviewIn March 2006, T-Mobile started theproject to replace its multiple bankconnections. The first country went “live”on SWIFT in February 2007, followed bytwo more countries in March and April.

The central operation consists of amiddleware product that provides aninternational finance portal to thesubsidiary companies, an in-house bankrunning on SAP, and a SWIFT connectionto its bank partners.

Bank statements are received via FileActin domestic or MT 940/942 format andprocessed into the various accounts heldin the finance portal. The nationalcompanies can view their own accountswhile group treasury can view all accounts.

Payment orders and direct debit filesgenerated by a subsidiary’s SAP systemare authorised by group treasury andsent via FileAct to the bank partners. AnMT 199 message is received to provide afunctional application acknowledgement.

Future opportunitiesT-Mobile plans to further deploy SWIFT toenhance its payments factory by:

— bringing additional national companieson SWIFT

— looking at the opportunity of SEPA toharmonise payments and directdebit formats.

Solution overview— Participant in MA-CUG

— Alliance Access and Gateway

— Bank statements received via FileActin domestic or MT940/942 format

— Payment orders and direct debits sentvia FileAct to bank partners


For more information please contactyour SWIFT account manager or visitwww.swift.com

SWIFT © 200855616

Investment

Project25%

Servers +operations46%

Middleware16%

Banking systemscost savings35%

Transactionprocessingefficiencies49%

Cash managementops labour savings16%

Joining1%

Infrastructure7%

Traffic6%

Benefits

36


Americas

Europe-Middle East-Africa

BrazilAvenida Paulista, 10483 andar01310-100 Sao Paulo SPT: +55 11 3514 9000F: +55 11 3514 9001SWIFT BIC: SWHQ BR RJ

United States - New York7 Times Square45th floorNew York, NY 10036T: +1 212 455 18 00F: +1 212 455 18 17SWIFT BIC: SWHQ US 3N

United States - San Francisco50 California StreetSuite 1601San Francisco, CA 94111United StatesT: +1 415 277 5401F: +1 415 277 5403

Asia Pacific

AustraliaSuite 3202AMP Centre50 Bridge Street,Sydney NSW 2000T: +61 2 92 25 8100F: +612 92 25 8111

People’s Republic of ChinaUnits 819 - 8218th FloorNo. 7 Financial StreetWinland International Finance Centre ,Xicheng DistrictBeijing 100034T: +86 10 6658 2900

Hong Kong31/F One InternationalFinance Centre1 Harbour View StreetCentralT: +852 2107 8700F: +852 2107 8733SWIFT BIC: SWHQ HK HH

SingaporeUnit 16-02, 80 Robinson RoadSingapore 068898T: +65 6347 8000F: +65 6347 8099

HQ & BelgiumHeadquartersAvenue Adèle 1B-1310 La HulpeT: +32 2 655 31 11F: +32 2 655 32 26SWIFT BIC: SWHQ BE BB

FranceOpera Trade Center4 rue Auber75009 ParisT: +33 1 53 43 23 00F: +33 1 53 43 23 90

Germany20th Floor, City-Haus IFriedrich-Ebert-Anlage 2-1460325 Frankfurt am MainT: +49 69 7541 2200F: +49 69 7541 2290

ItalyCorso G. Matteotti, 1020121 MilanoT: +39 02 7742 5000F: +39 02 7742 5090

South AfricaUnit 18, 2nd Floor1 Melrose BoulevardGauteng 2076T: +27 11 250 5346F: + 27 86 644 4670

SpainEdificio Cuzco IVPaseo de la Castellana 141, 22A28046 MadridT: +34 91 425 1300F: +34 91 425 1310

SwedenOxtorgsgatan 4, 7th floorStockholmT: +46 8 508 95 300

SwitzerlandFreischützgasse 108004 ZurichT: +41 43 336 54 00F: +41 43 336 54 10

United Arab EmiratesDIFC - The Gate Village 5Level 1P.O.BOX 506575

DubaiTel: +971 4 425 0900Fax: +971 4 425 0160

United Kingdom7th floor, The Corn Exchange55 Mark LaneLondon EC3R 7NET: +44 20 7762 2000F: +44 20 7762 2222SWIFT BIC: SWHQ GB 2L

IndiaUnit No.303, Ceejay HousePlot No. F, Shivsagar EstateDr. A.B Road, WorliMumbai 400018T: +91-22-6615 6971F: +91-22-6615 6974

Japan2nd floor - AIG Building1-3 Marunouchi 1-chomeChiyoda-ku, Tokyo 100T: +81 3 5223 7400F: +81 3 5223 7439http://www.swift.com/jpSWIFT BIC: SWHQ JP JT

Contact us

37


Notes

38


Notes

39


Notes

For more information about SWIFTvisit swift.com

To join the community debatevisit swiftcommunity.net

SWIFT © 2009

5558

6-MAR20

09

Documents

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