1. Enhancing Core Treasury Functions Globally
June 2016 1

2. Agenda Intro Planning Why TMS Vendor Evaluation Internal “buy-in”
Implementation
Approach
Challenges
International Roll out
Live!
Processes and capabilities
Operational and Strategic Benefits
Lessons learned
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 2 2

3. Intro
Coach: Leading New York design house of modern luxury accessories and lifestyle brands
Actualize: Boutique consulting firm focused on enhancing Treasury Operations and Technology
Project: Global TMS Implementation
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 3 3

4. Planning - Why TMS Prior Structure Operations Goals
Coach US responsible for North America
Decentralized treasury with low global visibility
50+ banks/branches
500+ bank accounts
Operations
Manual, excel files, non-integrated systems
Multiple bank platforms
Small team
Global consolidation at month end for accounting and reporting purpose
Goals
Visibility
Time savings
Enhanced controls over payments, GL posting and reconciliation
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 4 4

5. Planning - Vendor Evaluation
Sourcing vendors
Matching vendors with services needed
Existing relationships, network, conferences
RFP
Accelerated process with 3 vendors
Demos
Scorecard: pros-cons, budget
Usability & User experience
Functionality by modules/processes
Scalability
Ease of implementation (IT resources capability)
Cost to implement
Cost to maintain
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 5 5

6. Planning - Internal buy-in
Steps
Annual Operating Plan: high level budget prior to RFP process
Internal stakeholders support: IT, Accounting, Procurement and CFO
Capital Committee
Prep work
Presentation material for management with focus on controls and efficiency
Sourced TMS vendors and Consulting work
Overall Period: 6-9 months
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 6 6

7. Implementation –Approach
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 7 7

8. Implementation -Approach
Phased Approach by region and modules
Connectivity to global banks and account
Region: North America for all modules first
Modules
Phase 1.a: Cash & Forecasting, GL Posting
Phase 1.b: Financial Transactions, Bank Account Management
Phase 2: Payments, GL Reconciliation, Bank Fee Analysis
Incorporation of Stuart Weitzman May/2015
Duration: 12 months for core functions + 6 months added functionality
SaaS system, largely managed by Treasury (little IT intervention)
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 8 8

9. Implementation -Approach
Blueprint
Project Plan
Client
Data
Design/ Requirements
Configuration/ Connectivity
Validation & Training
UAT
Parallel
Documentation
Live
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5)
Highlighted functions: performed for each functionality/ module 9 9

10. Implementation -Approach
Blueprint = BP
Project Plan = PP
Client Data = CD
Requirements= REQ
Configuration = CF
Training= TR
Parallel= PL
Documentation = DC
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 10 10

11. Implementation – Challenges
Clearly defining scope given existing roles and responsibilities and changing environment (ie: acquisition of SW)
Managing and obtaining timely deliverables for third parties involved (i.e. banks, Treasury technology provider, etc.)
Identifying and accurately collecting data from new upstream sources (i.e. market data, bank reporting, forecasts and accounting entries from ERP, etc.)
Configuration and test of payments file across multiple banks and unique requirements
Limitations identified with Treasury technology requiring enhancements or workarounds
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 11 11

12. Implementation – International Rollout
Next step: International Rollout
Additional internal approvals for roll out and add users to TMS
Future users buy-in by providing reporting with actual data
Connectivity to global banks and accounts for statements
Region: Asia Supply Chain legal entities
Modules
Phase 1: Cash & Forecasting, GL Posting
Phase 2: Payments, GL Reconciliation
Estimated Duration: 6-9 month
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 12 12

13. Live! - Processes and capabilities
Function
Before
After
Cash Positioning
Excel based and manual log in to bank portals
Automatic, readily available in the morning with intraday updates
GL Posting
Download from old system, manipulate and upload to SAP
Workflow in TMS, once approved are exported to SAP
GL Reconciliation
Manual
Automatic feed, only exception handling
BAM
Paper and excel based
Cumbersome FBAR reporting
Managed in the system with electronic letters
Semi-automated FBAR
Payments
Multiple bank platforms
Single source
Financial transactions
Mostly Excel
Hosted in the system and linked to forecast and payments
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 13 13

14. Live! – Operational Benefits
Creation of central hub where majority of Treasury activity occurs
Real-time reporting on global cash balances
Customized reporting for individual stakeholders and users
Automation of cash accounting entries and daily integration with SAP
Improved automation and created true STP environment
Integration with banks, and SAP (import of forecasting data, accounting entries for reconciliation and export of daily journal entries)
Provide remote access to businesses for forecasting and reporting
Removes current dependence on Excel environment
Streamlined processes and reduced manual efforts saving time and improving accuracy and controls
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 14 14

15. Live! – Strategic Benefits
Enhanced visibility into all aspects of Treasury function across all groups within the company within and outside of Treasury
Enhanced and automated controls environment
Shifted significant portion of Treasury activities from manually intensive operational to value added analytical
Scalable for future M&A activity
Enhanced controls and more systematic tracking for audit support
Centralized source of Treasury data utilized for all aspects of business
Ability to produce reports directly from the application thereby significantly minimizing dependency and usage of Excel
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 15 15

16. Live! - Lessons Learned
Communicate changes upfront and be prepared for questions
Involve stakeholders early on
Accounts and Bank rationalization (if possible)
Audit documentation
Upfront global connectivity to banks
Bank connectivity - scope cost of TMS + bank for budgeting
Be flexible for changes in plan and open to “work around”
Empower team, think outside of the box
Briefly mention topics covered in last brown bag can redistribute materials to anyone interested (Point 1)
Mention “stabilization” of clearing part of daily routine; firms now looking to minimize expenses brought on by CM (Point 1)
State of flux; firm focus shifted from clearing to operational stabilization and new operational processes (Point 2)
Define “Initial Margin” (Point 3)
Briefly define CO/CT (Point 5) 16 16

17. Q&A Katia DeVita Priscila Nagalli, CFA, CTP
Sr Director, Assistant Treasurer
Priscila Nagalli, CFA, CTP
Manager, Treasury & Capital Markets