Treasury Today Country Profiles in association with Citi

Winners, 2009 Adam Smith Awards

2009 Awards Winners

Below is a list of the corporate Winners and Highly Commended of the Treasury Today Adam Smith Awards 2009. Scroll down to read about all the winners

Group photo of the 2009 Adam Smith Award winners.

Winners

Treasury Today’s Top Treasury Team, Winner – Photo of Richard Parkinson and John J. Tus.

Treasury Today’s Top Treasury Team

Winner: John J. Tus, Honeywell International Inc

This year’s Top Treasury Team has adopted a far-reaching approach to enhancing and developing treasury operations on a global scale.

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Highly Commended:

Alcatel-Lucent

Bank Relationship Management, Winner – Photo of Richard Parkinson and John J. Tus from Honeywell accepting on behalf of Jim Colby.

Bank Relationship Management

Winner: Jim Colby, Honeywell International Inc

Considering worst-case scenarios has long been part of Honeywell’s philosophy when it comes to bank relationship management. “We have always prepared for the worst in our credit negotiations,” comments Jim Colby, Assistant Treasurer. This approach has proved its worth in the current challenging market and has led to substantial benefits for Honeywell.

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Highly Commended:

Microsoft Corporation

Global Liquidity Management, Winner – Photo of Richard Parkinson, David Aldred and Anthony Ross from J.P. Morgan accepting on behalf of Ronni Horrillo.

Global Liquidity Management

Winner: Ronni Horrillo, Google

With accelerating business growth leading to larger cash balances in Europe, Google was finding the associated investment processes increasingly challenging. Relationships were maintained with a number of banks in order to diversify exposures and counterparties were predominantly selected on the basis of credit ratings.

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Highly Commended:

Pfizer

Working Capital Management/Financial Supply Chain, Winner – Photo of Richard Parkinson, Erhan Karakas and Bora Ergüç, Garanti.

Working Capital Management/Financial Supply Chain

Winner: Erhan Karakas, Mercedes-Benz Türk AS

Mercedes-Benz Türk AS was looking for a solution that would provide funding for its network of 30 dealers, which are required to hold a certain level of stock vehicles. “Based on the sales volumes, the dealer itself has to keep such vehicles in stock in order to offer availability and diversity to its customers,” says Erhan Karakas, Finance Manager. “This can only be afforded by high credit lines.”

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Highly Commended:

Controladora mabe

Payables and/or Receivables Solutions, Winner – Photo of Richard Parkinson, Amadio Lazzarini and Riccardo Madinelli, UniCredit.

Payables and/or Receivables Solutions

Winner: Amadio Lazzarini, Alleanza Assicurazioni

Every month, Alleanza Assicurazioni collects payments from each of its two million customers. Up to 2006, rather than paying by direct debit, many of these customers preferred to receive a visit from a salesperson to settle their dues. Of the 25m annual collection operations, only 20% were managed through automated processes, the remaining 80% being fulfilled manually by the sales team, which essentially stopped selling and offering consultancy in the last days of each month in order to collect cash premiums.

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Highly Commended:

DKV Globality SA, Randstad Pty Ltd

Outstanding Insourcing/Outsourcing, Winner – Photo of Richard Parkinson, Jamie Simmonds and Kevin Martyn, HSBC.

Outstanding Insourcing/Outsourcing

Winner: Jamie Simmonds, The Access Bank UK Ltd

All banks are focused on minimising operating costs in the current economic environment, and this was particularly the case for The Access Bank UK Ltd when it set up operations in 2008. “We had very clear set budgets which could not be breached, and a demanding timescale for the implementation of the processes,” says Jamie Simmonds, Managing Director/CEO.

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Best Corporate Debt Solution, Winner – Photo of Richard Parkinson, Mike Verrier and Kevin Grant, IT2.

Best Corporate Debt Solution

Winner: Mike Verrier, Wolseley plc

When Wolseley’s forecast net debt to EBITDA ratio was unexpectedly increased by 0.2 in late 2007, it was evident that action needed to be taken to avoid breaching loan covenants. At 2.9 times, the ratio was still well below the 3.5 times that would lead to a loan covenant breach. However, with building and construction markets continuing to deteriorate, it was important to pay attention to the warning signs.

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Highly Commended:

Logica plc,
Toyota Motor Credit Corporation

Effective Risk Management, Winner – Photo of Richard Parkinson and Bart Wenstrom from Microsoft accepting on behalf of Doug Hoch.

Effective Risk Management

Winner: Doug Hoch, Microsoft Corporation

Historically, Microsoft’s risk exposures have been tracked and reported separately by different areas of the business. Direct investment exposures were reported by the capital markets team; counterparty risk exposures were reported by the compliance team and accounts receivable exposures were reported by the credit and collections team.

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Highly Commended:

GE Oil & Gas

Mid-market Treasury, Winner – Photo of Richard Parkinson, Ursula Dumsch, Christina Schwarz and Ansgar Rehse, Deutsche Bank and Franz-Xaver Puy-Michl, HSBC.

Mid-market Treasury

Winner: Ursula Dumsch, Esprit Europe GmbH

With a high growth rate over the past ten years, Esprit’s operations have been focused on organic expansion and enabling local entities to begin their sales activities as quickly as possible.

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Highly Commended:

Noble Group Ltd

Harnessing the Power of Technology, Winner – Photo of Richard Parkinson, Marco Schuchmann and Julian Giliberti, Citi.

Harnessing the Power of Technology

Winner: Marco Schuchmann, Amgen

Outside of the US, Amgen’s treasury operations are carried out by Amgen Global Finance BV, the company’s global in-house bank located in the Netherlands. By setting up its financial services company in 2006, Amgen completed the first phase of its treasury transformation strategy: the centralisation of the treasury. In 2007, Amgen entered into the second phase: treasury system implementation.

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Highly Commended:

Ramirent Oyj

Best SEPA Solution, Winner – Photo of Richard Parkinson, Claus Wild, Barbara Herbert and Armin Wittemer, Commerzbank and Steffen Karsch, SAP.

Best SEPA Solution

Winner: Claus Wild, Adolf Würth GmbH & Co. KG

When SEPA was launched in 2008, Würth’s electronic banking software was no longer maintained and was therefore not able to support the new SEPA formats. This made it necessary for the company to review its technology needs in order to maintain and extend the service level provided to the subsidiaries. “We are the shared service centre for a couple of subsidiaries and must meet their needs,” comments Claus Wild, Project Manager Introduction for Payments.

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Highly Commended:

Vaisala Oyj

One to Watch, Winner – Photo of Richard Parkinson, Anita Diriwaechter, RBS, Michael Stumm and Lee Anstee, RBS.

One to Watch

Winner: Michael Stumm, OANDA

As a provider of foreign exchange trading, OANDA has focused on sustaining a large volume of trades to keep prices low. Its efforts have paid off: throughout the financial crisis, OANDA has continued to provide its services to customers, who have received full liquidity despite the low liquidity in the market.

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Highly Commended:

VocaLink

Highly Commended

Treasury Today’s Top Treasury Team, Highly Commended – Photo of Richard Parkinson, Xavier Hourseau and Andrew Woods, SunGard.

Treasury Today’s Top Treasury Team

Highly Commended: Xavier Hourseau, Alcatel-Lucent

Alcatel-Lucent was looking to set up global treasury systems that would address two key areas: banking communication and payments, and treasury management and transaction processing. Both systems would be required to connect seamlessly with the group’s ERP system. The company was prompted to select new systems by the decommissioning at the end of 2006 of systems that had been in use for ten years.

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Winner:

Honeywell International Inc

Bank Relationship Management, Highly Commended – Photo of Bart Wenstrom from Microsoft accepting on behalf of Nancy Wells, Richard Parkinson.

Bank Relationship Management

Highly Commended: Nancy Wells, Microsoft Corporation

With over 300 legal entities and more than 1,000 bank accounts worldwide, Microsoft was looking to manage its bank account administration more efficiently. Although the company’s bank accounts have been managed centrally from Microsoft’s corporate headquarters since 1991, the scale of the operation had led to certain inefficiencies, with requests and approvals being processed by email.

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Winner:

Honeywell International Inc

Global Liquidity Management, Highly Commended – Photo of Richard Parkinson, Gavin O’Donoghue and Nigel Coffey, Pfizer, Swati Mitra, Citi.

Global Liquidity Management

Highly Commended: Gavin O’Donoghue, Pfizer

In order to optimise the company’s treasury processes at an international level, Pfizer has established several regional shared service centres, known collectively as Global Financial Solutions (GFS). Recently the decision was taken to outsource some of the tasks managed by the company’s European shared service treasury operations to a business process outsourcing (BPO) partner.

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Winner:

Google

Working Capital Management/Financial Supply Chain, Highly Commended – Photo of Richard Parkinson, Romario Alves Pinto RBS and Roman Bieletto.

Working Capital Management/Financial Supply Chain

Highly Commended: Roman Bieletto, Controladora mabe

Controladora mabe was looking to build upon its strength in the domestic market by expanding overseas. At the same time, there was a need to improve the company’s balance sheet management and working capital position. In order to achieve this, the company was aiming to improve its Days Sales Outstanding (DSO). A receivables financing arrangement was thought to be the ideal solution but this type of arrangement was not widely available in the required currency, Mexican pesos.

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Winner:

Mercedes-Benz Türk AS

Payables and/or Receivables Solutions, Highly Commended – Photo of Richard Parkinson, Charles Pratt, DKV, Angelika Sauer, Citi, Josef Quick and Patrick Kass, DKV.

Payables and/or Receivables Solutions

Highly Commended: Thomas Merten, DKV Globality SA

To date, DKV Globality processes payments in 61 different currencies, for customers in 153 countries around the world. In order to achieve this, payments were previously treated as cross-border payments and were arranged via a number of different interfaces and banks.

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Winner:

Alleanza Assicurazioni

Payables and/or Receivables Solutions, Highly Commended – Photo of Erin O’Brien.

Payables and/or Receivables Solutions

Highly Commended: Erin O’Brien, Randstad Pty Ltd

Randstad was looking for a solution that could automate the manual processes that were used in the order-to-cash cycle. “It is our credit policy to print statements for customers each month, as not every customer can be contacted in the month by phone call,” explains Erin O’Brien, Group Manager, Payables and Receivables.

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Winner:

Alleanza Assicurazioni

Best Corporate Debt Solution, Highly Commended – Photo of Richard Parkinson and Tim Allison.

Best Corporate Debt Solution

Highly Commended: Tim Allison, Logica plc

Entirely funded by bank debt, and facing the prospect of all its debt facilities maturing in 2010, Logica was looking to refinance in the second half of 2008. “We knew the external environment would be tough and that banks’ balance sheets were constrained,” comments Tim Allison, Group Treasurer of Logica. “We planned the transaction carefully and launched it at the right time for the company.”

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Winner:

Wolseley plc

Best Corporate Debt Solution, Highly Commended – Photo of Richard Parkinson, Richard Nelson from Toyota accepting on behalf of Stephen Howard and Roland Broecheler, RBS.

Best Corporate Debt Solution

Highly Commended: Stephen Howard,
Toyota Motor Credit Corporation

In response to Toyota’s growing US market share and Toyota Motor Credit Corporation’s (TMCC’s) growing consumer lending base, TMCC was looking for an opportunity to capture liquidity at a reasonable financing cost. However, the volatility in the global capital markets represented a significant obstacle, with the markets effectively closed to many companies. It was therefore essential to time the deal correctly.

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Winner:

Wolseley plc

Effective Risk Management, Highly Commended – Photo of Richard Parkinson, Giacomo Baldi and Andrea Ciabattini from GE Oil & Gas, Anupam Singhal, Tata and Giacomo Borgogni, GE Oil & Gas.

Effective Risk Management

Highly Commended: Giacomo Baldi, Giacomo Borgogni and Andrea Ciabattini, GE Oil & Gas

GE Oil & Gas was facing extensive average FX exposures of $2 billion, which represented almost 30% of the company’s revenues. These exposures were spread through more than 80 legal entities around the world, arising from the company’s long-term projects, such as sales of turbines, which have an order-to-remittance cycle time of six to 18 months. Exposures also came from shorter term sales of spare parts as well as intercompany and external purchases.

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Winner:

Microsoft Corporation

Mid-market Treasury

Highly Commended: Treasury Department, Noble Group Ltd

Noble Group has experienced compounded growth of over 35% in the past ten years. From a treasury perspective, it is therefore essential to keep up with the pace of growth, stay ahead of the company’s funding needs and keep the company’s financial infrastructure current. In order to fulfil these goals, a number of initiatives have been employed which have led to a wide range of achievements across the spectrum of treasury activities.

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Winner:

Esprit Europe GmbH

Harnessing the power of technology, Highly Commended – Photo of Richard Parkinson, Päivi Karesjoki, OpusCapita, Petteri Järvinen and Kevin Grant, IT2.

Harnessing the power of technology

Highly Commended: Petteri Järvinen, Ramirent Oyj

Although Ramirent Group is a large multinational company working in 13 countries and managing 12 different operating currencies, until recently the management of group treasury operations were to a large extent handled by manual methods.

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Winner:

Amgen

Best SEPA Solution, Highly Commended – Photo of Richard Parkinson, Tapani Oksala and Kari J. Mäkelä, OpusCapita accepting on behalf of Vaisala Oyj.

Best SEPA Solution

Highly Commended: Anna-Maija Laakkonen, Vaisala Oyj

The Finnish deadline for full implementation of the Single Euro Payments Area (SEPA) is 2010 and in any case, Vaisala wanted to be among the first to reap the benefits of SEPA. Rather than managing the SEPA transition in-house, Vaisala was looking to adopt a solution to facilitate this.

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Winner:

Adolf Würth GmbH & Co. KG

Treasury Today in China, Highly Commended – Photo of Richard Parkinson, Linlin Wu and Swati Mitra, Citi.

Treasury Today in China

Highly Commended: Pui Yee Lee and Linlin Wu,
Honeywell (China) Co. Ltd

Due to its successful growth efforts, Honeywell (China) Co. Ltd had seen a significant increase in its group cash balances – 65% of which were denominated in RMB and the remaining 35% in US dollar.

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Treasury Today in China, Highly Commended – Photo of Richard Parkinson, Sandra Uddbäck from Atlas Copco accepting on behalf of Audrey Deng and Pontus Ljungh, Deutsche Bank.

Treasury Today in China

Highly Commended: Audrey Deng,
Atlas Copco (China) Investment Co. Ltd

During the company’s history in China, bank account management at Atlas Copco (China) had become decentralised. This legacy decentralisation was making it difficult to ensure the best use of company cash and to keep track of group cash positions efficiently.

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One to Watch, Highly Commended – Photo of Richard Parkinson and Martin Wilson.

Highly Commended: Martin Wilson, VocaLink

Following the introduction of the SEPA Credit Transfer in January 2008, the SEPA Direct Debit (SDD) is scheduled to be launched on 1st November 2009. VocaLink, which processes more than 15% of payments in Europe, set out to develop an SDD solution for banks and their customers.

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Winner:

OANDA