Welkom bij de ING workshop! Programma: 14:30 Optimaliseer uw financiële supply chain Gregory Cronie met behulp van SEPA                Payments & Cash Mgt 15:00 Wat weet u van de FCS en SEPA?                                         Caja Oudemans Corporate Clients 15:20 Pauze 15:45 Europese Incasso: de laatste ontwikkelingen   Cecile Koops Payments & Cash Mgt 16:45 Wat weet u van de FSC en SEPA?                                        Caja Oudemans 17:00 Q&A en afsluiting 17:30 Borrel  

Optimise your financial supply chain... …. unlock cash …. - These 2 sentences will be the central message and will be repeated troughout the whole presentation. Please use the chain in the lay out of the presentation. … and improve your liquidity, transparency and processes

Financial Supply Chain Buyer/Seller - The Financial Supply Chain is increasingly recognised as an area where offering significant potential for generating bottom-line improvements and creating competitive advantage can be realized. - The Financial Supply Chain refers to the end-to-end trade processes and information that drive a company’s cash, accounts, and working capital. - From a buyer’s perspective, this involves the full purchase-to-payment process. - From the seller’s perspective, it is the order-to-cash cycle.

Financial Supply Chain Visibility & Control Integrated approach to provide better visibility and control Overall cash-related processes: Better predictability of cash flow (operational cash generation) Reduction of working capital (DII inventory days, DSO, DPO) Reduction of operating expenses End-to-end integration of financial processes (Sharing information, use of data, improve processes) It demands an efficient control and continuous improvement of financial processes to unlock your cash and use it efficiently. 1) Pressure through regulation 2) Because of the credit crunch the cost of financing has increased.

Financial Supply Chain Areas of improvements Potential improvements in the financial supply chain: Cost and error associated with manual creation and reconciliation of documents Lack of transparency in inventory and cash positions when goods are in the supply chain Disputes arising from inaccurate or missing data on invoices Solutions based on a fragmented approach that do not address the complete end-to-end processes of the trade cycle. Time required to create, transfer and process paper documentation

Changing environment…….

And many challenges

Also in cash management

ING’s Financial Supply Chain approach

ING has focus on two key client processes In general the following sub-processes can be distinguished, at most corporates, in the Order-to-Cash cycle and the Procurement-to-Pay cycle. Order-to-Cash Purchase-to-Pay Sales and Quote Management Credit Risk Management Order Processing Invoicing Collections Management Dispute and Discount Management Collection Initiation Cash Management Procurement Planning and Budgeting Selecting and Contracting Originating Requirements and ordering Tracking, Receipting and Evaluating Invoice Processing Dispute Management Payment Initiation Cash Management Strategy  Policy  People  Organisation  Process  Technology  Metrics  Information 10

Use Sepa to improve your FSC Order-to-Cash Process Credit and Risk Management Sales and Quote Management Dispute and Discount Management Collection Inititation/Cash Management Order Processing Collections Management Invoicing Sub processes Quote process Contract strategy Customer Profitability Financing and Payment Methods Customer portfolio risk assessment Credit Limit Management Pre and post order credit assessment Financial monitoring Order Entry Contract Administration Customer Service Order Fulfilment Billing triggers and Production Deductions Management Self Billing Bill Calculation and Verification Cash Targets Proactive Calls Dunning Activity Litigation Dispute Identification Dispute Resolution Credit Note Processing Root Cause Eradication Ledger Reconciliation Account Reconciliation Cash Posting Unallocated Cash Pay and collect in same way in most European countries Use of XML: bank independent standard format for all countries Maximum processing/through put time for payments and collections Improved reconciliation leads to higher STP ratio end-to-end availability of payment information through total payment chain original amount is credited without deduction of costs Advice on fx risk Credit insurance LC E-invoicing Securitisation/credit man 11