1. PwC Global Treasury Survey 2010 Association of Corporate Treasurers in Swiss Romande 

2. PricewaterhouseCoopers PwC Global Treasury Survey 2010 583 Individual Responses - 34 Countries - All Continents Treasury Survey 2010 Slide 2

3. PricewaterhouseCoopers Survey focus areas Survey scope What are the long-term Lessons learnt? “Best Practice” still holds true. What do we need to do to implement it in a sustainable way? What Challenges did the Crisis pose for Treasury Liquidity crunch, commodity & FX volatility, counterparty risk, accounting “fair valuation” Were we prepared? Some were, some weren’t. Few had all risk areas adequately covered. What did we change during the Crisis? Many quick fixes “just to survive” Opportunity for treasury to shine Treasury Survey 2010 Slide 3

4. PricewaterhouseCoopers What did the crisis do for you? The Crisis has given Treasurers more visibility than ever before at the business and the Board "The Chinese use two brush strokes to write the word 'crisis'. One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger-but recognize the opportunity." John F. Kennedy Treasury Survey 2010 Slide 4

5. PricewaterhouseCoopers Principal objective is to manage underlying group liquidity and risk within tight limits. Limited discretion to manage positions is a feature. Service is a feature, to support business maximising performance on FX and liquidity issues. Profit Center (7% of MNCS)* Value-Added Service Center (68% of MNCS)* Treasury Philosophy *Source: 2010 PwC Global Corporate Treasury Survey Treasury approach Value-added approach gains ground as cost center approach is shown to be insufficient to deal with market turbulence (Cost Center approach before crisis: 32%). Treasury Survey 2010 Slide 5 A key objective is to generate income through active management of the underlying business risks and trade on ‘own account’. Characterized by capital allocation. Cost Center (25% of MNCS)* Smaller scope of responsibility. A co-ordination function with little proactive activity.

6. PricewaterhouseCoopers Funding and cash management are the key issues Systems seen as a key enabler Top of Treasury’s agenda during the crisis Treasury Survey 2010 Slide 6

7. PricewaterhouseCoopers Due to the need for funding and liquidity Bank Relationship Management became extremely important during the crisis …………and is expected to stay that way. How important is Bank Relationship Management to you? Treasury Survey 2010 Slide 7

8. PricewaterhouseCoopers If you’re not Tier 1, how do you become one? Is it possible 61% are Tier 1? Do only Tier 1 Clients get the funding??? How do you think your bank views you? Treasury Survey 2010 Slide 8

9. PricewaterhouseCoopers Decrease Bank Relationships More business to less banks = Tier 1 status = Funding & Best Pricing Increase Bank Relationships More sources of funding Diversify Counterparty Risk Category of >10 Average pre-crisis of 25,1 But expected to decreased by 20% post crisis Category of <4 27% expect to increase post crisis What is the optimal number of bank relationships? Treasury Survey 2010 Slide 9

10. PricewaterhouseCoopers Can we have both? Needs transparency and reciprocity Banking Balance Scorecards The Corporate/Bank Relationship dilemma Treasury Survey 2010 Slide 10

11. PricewaterhouseCoopers Slide 11 Treasury Survey 2010

12. PricewaterhouseCoopers Slide 12 Treasury Survey 2010

13. PricewaterhouseCoopers Slide 13 Treasury Survey 2010

14. PricewaterhouseCoopers Slide 14 Effective working capital management comes from foresight, planning and robust management processes Treasury Survey 2010

15. PricewaterhouseCoopers Yes, banks can fail.. …or drop out of your core list !! Monitoring is becoming more sophisticated How was Counterparty Risk managed? Treasury Survey 2010 Slide 15

16. PricewaterhouseCoopers Slide 16 ‘Best practice’ = Fair value basis as well as potential future exposure Treasury Survey 2010

17. PricewaterhouseCoopers Increase in type of exposures, perhaps to smoothen volatility No great change in importance pre versus post crisis Management of FX risk? Treasury Survey 2010 Slide 17

18. PricewaterhouseCoopers Slide 18 Primary objective for hedging FX risk Minimise the impact on s/t cash flows is a key objective for the largest proportion of participants: suggests a strategy of hedging balance sheet exposures to a minimum. Next in importance is hedging to remove earnings volatility over several years, which would suggest a policy of hedging at least on a rolling 12-month basis, probably combined with a layered hedging approach. Treasury Survey 2010

19. PricewaterhouseCoopers Slide 19 Treasury Survey 2010

20. PricewaterhouseCoopers Slide 20 Treasury Survey 2010

21. PricewaterhouseCoopers Standardised /Mechanical approach to commodity risk management is less favoured post-crisis – Perception of structural imbalances/ inefficiencies Approximately 80% had some sort of commodity risk. Only 24% saw this as being of high importance pre-crisis Management of commodity risk? Treasury Survey 2010 Slide 21

22. PricewaterhouseCoopers A gradual move towards treasury centres and specific CRM departments…at least for execution Who is best placed to manage commodity risks? Management of commodity risk? Treasury Survey 2010 Slide 22

23. PricewaterhouseCoopers Funding was top of the agenda during the crisis. Treasurers will resume focus on the core business of financial risk & cash management, but this time with the active partnership of the business….. Key Learning points as a consequence of the crisis - Where will treasury add value in the next 5 years? Treasury Survey 2010 Slide 23

24. PricewaterhouseCoopers The focus is on Cash, systems and structures to monitor and control risk Most promising future developments Treasury Survey 2010 Slide 24

25.  www.pwc.ch © 2010 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. For a copy of the detailed Survey brochure please contact : Sebastian di Paola Partner – Treasury & Financial Risk Management Group Sebastian.di.paola@ch.pwc.com +41-58-792 96 03 Michiel Mannaerts Senior Manager – Treasury & Financial Risk Management Group m.mannaerts@ch.pwc.com +41-58-792 92 10