Cugavadi’s Chris van Dijl participated in the event “Making sure you select the right Treasury Management System (TMS) for your organization” hosted by Kyriba in the Ritz Carlton DIFC, Dubai United Arab Emirates Van Dijl’s presentation focussed on how a treasury management solution can improve visibility, cash forecasting, control & governance. For more information please contact Cugavadi on info@cugavadi.com

1. Improving
Visibility, Cash Forecasting,
Control & Governance
Kyriba – Selecting the right Treasury Management System (TMS) for your organization
Dubai, 1 June 2015
Chris van Dijl
Managing Director

2. 2
Cugavadi Overview
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
Over 16 years of experience in Corporate Treasury
Worked in The Netherlands, United Kingdom, United States, and the United Arab Emirates
Former Group Treasurer of Easa Saleh Al Gurg Group and the Al Tayer Group, both located
in Dubai, U.A.E.
Established first In-House Bank for a family group in the Middle East at the Al Gurg Group
Al Gurg Treasury department was awarded ‘Best Small/Medium Treasury Team in the
Middle East’ by the Association of Corporate Treasurers (ACT)
Established Cugavadi, a specialised niche consultancy firm with offices in Dubai and
Charlotte, NC
Focussing on Treasury and Risk Management consultancy services.

3. 3
2015 AFP/gtnews Treasury Management System Survey
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
Source: 2015 AFP/gtnews Treasury Management System Survey

4. 4
Visibility – Real Life Example…
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
When do our credit facilities expire?
Treasurer
I am not sure,
please check with my P.A.
Personal Assistant
Sure, everything you
need is there
C.F.O.

5. 5
Visibility (1/2)
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
Most companies without a Treasury Management System are not able to provide detailed
information about transactions and positions within a timely manner
Creates substantial risk to the company as a debt covenant breach is more likely to occur
Daily cash positioning usually does not take place
Leading to inefficient cash management practises
“Oops, we broke our
OD limit yesterday”
“Sorry, the payment was
rejected by the bank as
we did not have sufficient
funds in the account”

6. 6
Visibility (2/2)
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
A Treasury Management System provides an organisation with a
central database of all:
 Bank balances
 Foreign exchange transactions
 Short term investments & deposits
 Long term borrowing arrangements
 Derivative transactions
 Trade Finance transactions
 …
Thus giving not only a historical overview but also a real-time (or
near real-time) overview of the liquidity position of the Group

7. 7
Historical & Actual Control & Governance
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
One of the key strengths of a TMS are its reporting and controlling functionality
A multitude of reports can be generated:
 Historical reporting to Board and Management (‘Daily Treasury Position Report’)
 Net Cash Position Report
 Daily / weekly Treasury Agenda with reminders on upcoming events
A TMS also provides a control environment for treasury transactions
 Treasury Policies can be encoded in the system:
• Dealer limits
• Counterparty limits
• …
 Policy breaches can be advised automatically (i.e. via email)
 Very detailed Audit Log capturing all changes made to the system
 Automatic reporting on transactions by currency, minimum amount, etc
 Internal audit department can have access for ‘real time’ monitoring if required
 Daily access to bank statements to obtain remote control of entities and JV Partners

8. 8
Cash Forecasting (1/2)
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
86% of organisations that do not have a TMS use spreadsheets for cash forecasting
Spreadsheet are prone to errors, formula deletion etc
The first web-based treasury solutions were….cash forecasting
Source: 2015 AFP/gtnews Treasury Management System Survey

9. 9
Cash Forecasting (2/2)
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
Taking the information from the Central Database as starting point:
 Historical information
 Future dated flow (i.e. maturity flows)
Added with information coming from a combination of:
 Budget
 ERP solutions (AR, AP, Sales), and
 Operating Entities
So far, there is no change from using spreadsheets. A TMS excels in:
 Instant consolidation
 No more copy/paste
 Variance analysis and reporting
 Adding real power to cash forecasting
 Actual versus Budgeted numbers for discussion in monthly management meetings
 What’s happening in my business?
 Continuous improvements in forecasting quality

10. 10
Historical and Forward Looking Control & Governance
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
An accurate cash forecast not only leads to:
 Optimisation of working capital
 Obtaining to right liquidity for the organisation
 Improved credit ratings
 Better investment / borrowing decisions
 Better currency hedging
 Better Asset Allocation
 Better Intercompany funds allocation
It also enhances the Control & Governance in an organisation due to:
 Better control on subsidiaries
 Pre-emptive Compliance actions
 Compliance / debt covenants scenarios analysis
 Better and more regular Management Information
 Better and more regular Board Information

11. ERP
Starting Balance +
Future Dated flows
11
Summary
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
Central Database
Historic and Prior Day:
• Bank Balances
• Forex Transactions
• Investments
• Loans
• Derivatives
• Trade Instruments
• Historic Control (Audit)
• Historic Compliance
• ‘real-time’ Control
• ‘real-time’ Compliance
V I S I B I L I T Y AR / AP / Sales
• Pre-emptive Compliance
• Compliance scenarios
• Management Information
• Board Information
C O N T R O L & G O V E R N A N C E
and
/
or
and
/
or
Operating
Entities
CASH
FORECAST

12. 12
Summary
Kyriba – Selecting the right Treasury Management System (TMS) for your organization | Dubai, 1 June 2015
By using the basic core functionality of a Treasury Management System
 Central Database of transactions
 Cash Forecasting
 Reporting Functionality
A significant improvements in Visibility, Cash Forecasting and Control & Governance can
be achieved

13. Cugavadi Risk Management Services, LLC
P.O. Box 941021
Dubai | United Arab Emirates
 +971 (0)50 1755 162
Cugavadi, LLC
P.O. Box 78886
Charlotte, NC |U.S.A.
 +1 980 228 9272
13
Thank You
info@cugavadi.com | cugavadi.com
This presentation is the property of Cugavadi Risk Management Services LLC.
It should not be circulated, quoted, or reproduced for any distribution.