Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
© Copyright Citibank, N.A. 2017
Treasury and Trade Solutions | Treasury Advisory Group
Uncertainty…And Opportunity
Top Treasury Priorities for 2017
Webinar | 14 February 2017
Treasury and Trade Solutions | Treasury Advisory Group
Speakers Jason Batman
Managing Director, Asia Pacific Product Sales Head, Treasury and Trade Solutions, Citi Email: [email protected]
Tel: +852 3419 8737
Jason Batman is the Regional head of Product Sales at Treasury and Trade Solutions, based in Hong Kong. Previously, he
was the Sector Head for large multi-national corporate clients within the Industrials, Energy, Power & Chemicals sector. Prior
to joining the regional sales team, he was an experienced senior member of the cash sales team supporting multinationals
and top tier local corporate customers in Australia.
Jason has over 25 years of banking experience and has been with Citi for the last 20 years. Jason has been a multiple
winner of Citi’s prestigious Global Chairman’s Club award, and winner of Cash management deal of the year in 2009 and
2010.
Ron Chakravarti
Managing Director, Global Head, Treasury Advisory and Market Management,
Treasury and Trade Solutions, Citi Email: [email protected]
Tel: +1 212 816 6909
Based in New York, Ron leads a global team responsible for delivering treasury advisory and designing best practice
solutions for Citi’s Treasury and Trade Solution’s corporate and institutional clients. His prior experience includes positions in
treasury consultancy, transaction banking product management, and corporate banking based in Asia, Europe, and the US.
Andrea Vanara
Director, Head, Asia Treasury Advisory, Treasury and Trade Solutions, Citi Email: [email protected]
Tel: +65 6657 3282
Based in Singapore, Andrea is responsible for leading the delivery of advisory to Citi’s Asia Pacific clients in the areas of
treasury operations, working capital management, risk mitigation, and treasury technology. He joined Citi in July 2015 with
extensive corporate treasury experience managing financing, liquidity, cash management, FX, interest rate and commodity
risk management, bank relations, and asset/liability management. Prior to joining Citi he was most recently at Fiat Chrysler
Automobiles (FCA Group).
1
Citi Treasury Diagnostics
Built on Six Aspects of Treasury Operations
Liquidity
Management
Working Capital
Management
Risk
Management
Subsidiary Funding
and Repatriation
Policy and
Governance
Systems and
Technology
Identify Where You Stand Relative to Peers—Learn What Counts as Best in Class
Benchmarks Benchmarks Relative Performance Detail
Performance Risk Management +/-
4.33.6
3.6
2.4
2.4 4.9
2.6
1.0
1.7
My Score
Peer Group
Universe 3.0
2.9 4.33.6
3.6
2.4
2.4 4.9
2.6
1.0
1.7
My Score
Peer Group
Universe 3.0
2.9 4.33.6
3.6
2.4
2.4 4.9
2.6
1.0
1.7
My Score
Peer Group
Universe 3.0
2.9 4.33.6
3.6
2.4
2.4 4.9
2.6
1.0
1.7
My Score
Peer Group
Universe 3.0
2.9 4.33.6
3.6
2.4
2.4 4.9
2.6
1.0
1.7
My Score
Peer Group
Universe 3.0
2.9 4.33.6
3.6
2.4
2.4 4.9
2.6
1.0
1.7
My Score
Peer Group
Universe 3.0
2.9 4.33.6
3.6
2.4
2.4 4.9
2.6
1.0
1.7
My Score
Peer Group
Universe 3.0
2.9 4.33.6
3.6
2.4
2.4 4.9
2.6
1.0
1.7
My Score
Peer Group
Universe 3.0
2.9
My Relative Performance
Process Area Against Peer Group Against Universe
Liquidity/funding risk Worse Worse
Interest rate risk Worse Worse
Foreign Exchange
(Transactional) Better Better
Among the key sources for this analysis are insights gleaned from our global treasury benchmarking platform for
clients, Citi Treasury Diagnostics.
2
Winner, Celent
Model Bank Award
2017 Drivers and Priorities
2017 Drivers and Priorities
Improving
growth and
business
sentiment…
…but
Geopolitical
Uncertainty
…and Shifts
in Policies,
Financial
Markets
…leave
Potential for
Surprises
1.
Adapt to Tax
Impacts
2.
Evolve Risk
Management
Approaches
3.
Recalibrate
Liquidity
Planning
4.
Build
Financial
Flexibility
5.
Transform
Technology
Culture
Unprecedented Change… …New
Opportunities and Vulnerabilities
Treasury Priorities
Market Drivers
3 2017 Drivers and Priorities
Drivers
Improving Growth Market Volatility
Policy Shifts Downside Risks
Source: Citi Investment Research and Analysis, January 2017
↓ Anti-establishment political
movements
↓ International tensions and
potential trade wars
↓ Cyber threat vulnerability
Monetary
Conditions
Fiscal
Stance
Gradual Tightening:
Impact on financial health?
On Path to Loosening:
Impact of tax reforms?
Market Volatility
Source: Bloomberg
Nov’16: US Elections Perceived risk
of EM
remains high
after elections
Jun’16: UK
Referendum (Brexit)
China
Euro Area EM AE
Source: Citi Investment Research and Analysis, January 2017
U.S. LHS:
RHS:
4 2017 Drivers and Priorities
Priorities
Priority 1: Adapt to Tax Impacts
Current and anticipated changes in global tax landscape impact physical and
financial supply chains of MNCs
Are you preparing for end-to-end impacts of changes?
Review
subsidiary
funding
practices
Ensure
adequacy of
Treasury tax
compliance
processes
Plan for
longer term
impacts of US
tax reform
Understand
Trading Model
impacts for
treasury
Reassess
Treasury
structures,
processes
Image sourced from Microsoft Office Clip Art
5 Priorities
Priority 2: Evolve Risk Management Approaches
Events could drive large swings in financial markets, including currencies,
with unintended disruption to corporate earnings
Do you have a well-designed, integrated risk framework in place?
Reallocate
resources by
risk-based
measures
Operationalize
non-impactful
risks
Consider
“risk” of undue
conservatism
Reassess risk
management
policies
Invest in
infrastructure:
measurement,
management
Image sourced from Microsoft Office Clip Art
6 Priorities
Priority 3: Recalibrate Liquidity Planning
Non-discretionary environmental impacts could materially change liquidity
profiles: quantity, currencies, sources and uses, and carrying costs
Are you identifying consequential outcomes…individually and cumulatively?
Stress-test
liquidity plans
under
cumulative
impacts
Continue re-engineering
liquidity structures for adequacy
Review funding
sources and mix
Scenario plan
for sovereign
moves in
trade, capital
controls
Image sourced from Microsoft Office Clip Art
7 Priorities
Priority 4: Build Financial Flexibility
Equity investors again place a premium on financial strength and flexibility
Are you optimizing your balance sheet to support efficiency and growth?
Deploy W/C financing
strategies in support of
growth
Create transparency of W/C costs to businesses
Review capital
structure strategies
Assess sustainability of subsidiary
funding strategies
Take ownership of business W/C optimization
Image sourced from Microsoft Office Clip Art
8 Priorities
Priority 5: Transform Technology Culture
Technology is driving innovation and disruption: from corporate business
models to treasury and finance operations
Is your treasury technology innovation and adoption keeping pace?
Invest in
technology
for evolving
financial
supply chain
Consider
implications
of FinTech in
financial
services
Ensure
vigilance and
playbook for
Cyber
Threats
Partner with
Business and
Tax to assess
infrastructure
needs
Identify gaps
in treasury
technology
topology
Image sourced from Microsoft Office Clip Art
9 Priorities
Conclusion: Dynamic Reprioritization
Improving
growth and
business
sentiment…
…but
Geopolitical
Uncertainty
…and Shifts
in Policies,
Financial
Markets
…leave
Potential for
Surprises
1.
Adapt to Tax
Impacts
2.
Evolve Risk
Management
Approaches
3.
Recalibrate
Liquidity
Planning
4.
Build
Financial
Flexibility
5.
Transform
Technology
Culture
Unprecedented Change… …New
Opportunities and Vulnerabilities
Treasury Priorities: Dynamic Reprioritization
Market Drivers
10 Priorities
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or
relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction").
Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.
Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate definitive written agreements. This presentation is not a commitment or firm offer and does not
obligate us to enter into such a commitment, nor are we acting as a fiduciary to you. By accepting this presentation, subject to applicable law or regulation, you agree to keep confidential the information contained herein and
the existence of and proposed terms for any Transaction.
We are required to obtain, verify and record certain information that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID number.
We may also request corporate formation documents, or other forms of identification, to verify information provided.
© 2017 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.