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Corporate Banking

Liquidity managementwith clockwork precisionCash Management and payments


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Efficient management ofaccounts and cash flows

Professional management of accounts and cash flows is a key factor in the success

of every business. Up-to-date information on your financial status, as well as reliable

planning of liquidity developments and their targeted management, are indispensabletools and help to minimise risk.

Commerzbank offers you innovative solutions to meet all these needs. The start point

for optimising your Cash Management is always the individual requirements of your

business. Whether the focus is on handling cash collected from your points of sale,

interbank management of payments or achieving the best returns from local accounts,

the range of Commerzbank services offers all the facilities you need. These includereliable cash in and out payments, account information updated several times a day,

multibank payment applications and innovative Cash Management systems for inter-

national companies. Our product range is completed by our practical consulting and

advisory services, designed to help you with everything from basic questions concern-

ing integration into the Single Euro Payment Area (SEPA) to obtaining direct access

to the SWIFT network.

Commerzbank provides these and many other solutions via our convenient and inno-

vative online Corporate Banking Portal (www.commerzbank.com/corporatebanking).

We also offer you software-supported electronic banking solutions and a compre-

hensive personal service. However you prefer to do business, Commerzbank is

always there for you as an expert advisor and provider of Cash Management and

payment services.


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06

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Cash and treasury management:Taking control o your cash ows

Cash Pooling

Netting

Payments:Right on targetNational and international payment transactions

SEPA

SWIFT

Global Transaction & Routing Service

Cards

Cash

Inormation management:Always up to dateAccount information

Bank information

The Commerzbank advantage:Individual solutionsTreasury consulting

Tender & Client Projects

Contents

Contents I 03


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The purpose of Cash Management is to continuously track and

manage financial flows within and beyond your company. Ideally,

you should have all basic data and analyses available to you at the

touch of a button. This is precisely what Commerzbank offers

from

electronic account information, through web-based cash and treasury

management tools, right up to innovative cash pooling solutions.

Cash Management:

the control center o corporate inance

Optimal management of liquidity and cash

flows can be a major challenge. You need to

precisely track movements on each individual

account and identify potential interest costsor income and not just retrospectively. In

addition to the fastest possible information on

revenue trends, you need to be able to reliably

plan incoming and outgoing payments. Only

then is financial planning able to maximise

your interest income and prevent liquidity

gaps occurring before they arise. An enormous

amount of information needs to be recorded,

processed and consolidated. Rapid provision is

essential in ensuring that your reporting is not

out of date before it has even been completed.

Cash and treasury management:Taking control of your cash flows

04 I Cash and treasury management

Commerzbanks Cash Management solutions

provide you with targeted support for manag-

ing your liquidity, including:

Information procurement and processing

Management of current liquidity

deployment and planningManagement of foreign exchange and

money market business

To facilitate this process, we also give you

access to a web-based, country and cross-

border interbank application. Detailed infor-

mation about this service can be found in the

Commerzbank brochure Portals and Front-

ends for your international banking.

Cash Pooling :

optimising local accountsCash pooling refers to the consolidation of

liquidity within a company. A central financial

management system is used to help optimise

a companys accounts in terms of interest, in-

vestment conditions and deployment potentials

of company or group accounts.

Commerzbank offers you needs-related cash

concentrating solutions for both your domes-

tic and foreign Commerzbank accounts, as

well as for accounts held at other banks in

other countries.

The key objectives o Cash Management

Increase proftability

Secure liquidity

Minimise risk

Cash Management


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Cash and treasury management I 05

Cash Concentrating

Liquidity in national Commerzbank ac-

counts can be consolidated in many cur-

rencies, provided that the local and central

accounts are both held in the same cur-

rency. A highly effective cash concentrating

process is also available to you for many

countries for cross-border cash concentrat-

ing with accounts held at oreign branches

o Commerzbank. And even if you work

with dierent banks in oreign markets,

you can still benefit from a central liquidity

management system. Commerzbanks in-

ternational cash concentrating process will

reliably transfer your cash to the target ac-

count you specify. You can also define yourown transaction parameters (e.g. transfer to

pool only when a certain minimum amount

is reached, or keep a given minimum bal-

ance in the local account).

Margin optimisation

This virtual pooling method is an interest

rate optimisation without physical cash

compensation, which includes cross-border

and cross-currency solutions. All participat-

ing accounts remain legally and functionally

independent and continue to show balances.

Margin optimisation is based on a fixed

uniform reference interest rate, plus or

minus a variable margin. The respective

margins of this interest optimisation method

are calculated on the basis of the ratio of

balances of all participating accounts. The

resulting compensation factor is decisive for

the optimisation of your interest income.

Basically, the higher the compensation fac-

tor that is, the more that debit and credit

balances are offset the lower the margin

applicable and the closer net interest in-

come comes to the optimum.

Whether you choose national or interna-

tional cash concentrating or margin optimi-

sation, Commerzbank ensures optimal use

o your liquidity. By osetting your debit and

credit balances, you can also improve your

interest position and exploit opportunities

or short-term investment and borrowing o

liquidity via ocused volumes.

Cash Concentrating

Local accountbranch 1 Local accountbranch 2

Central account

Local accountsubsidiary 1

Local accountsubsidiary 2

Whether branch or subsidiary accounts, all can be included in cash concentrating.


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Many methods o payment

Commerzbank offers you a variety of electronic

solutions for submitting your payment orders.

In addition to national and international pay-

ments, we can also

via our domestic andforeign branches offer express transfers

and bulk payments. Our involvement in many

national and international clearing systems en-

sures a fast and efficient processing and helps

you to optimise your payments.

We offer you a range of internet-based solutions

with a wide variety of functionalities. Among

other services, these include a multibank appli-

cation that can be accessed from any PC with

internet access using a USB stick, a facility

to optimise your bulk payments, and various

conversion options. If you prefer software-sup-

ported applications, we have a solution for that

as well. You can find more information in our

brochure Portals and Frontends for your in-

ternational banking, which can be requested

from your Commerzbank contact person.

Electronic solutions are also increasingly

replacing paper-based monetary transfer

forms in foreign payment transactions.

Whether you process your payment trans-actions with electronic banking software,

via SWIFT (Society for Worldwide Interbank

Financial Telecommunication), or using

Commerzbanks Corporate Banking portal,

we always have the right solutions available.

You will also benefit from our internationalpresence in more than 50 countries and across

a network of about 5,000 correspondent bank

connections worldwide.

SEPA opens up new opportunities

Since early 2008, as a result of the Single Euro

Payments Area (SEPA), no distinction has

been made between foreign and domestic

transfers, debits and card payments within

the single European market. You can process

national and cross-border bulk payments in

the same way.

Because of this, companies are in a better posi-

tion than ever before to exploit the advantages

of the common market and not just with

cross-border payment transactions. As the pay-

ment transaction landscape becomes further

standardised, even those companies whose core

business focuses on their respective domestic

markets will see real benefits. Genuine sav-

ings potential can be tapped and efficiency

improved with SEPA simply by making a fewtechnical organisational adjustments.

Payments:Right on target

The contract has been signed and the goods delivered. Now the

invoice has to be paid in cash or by credit card, direct debit,

cheque or bank transfer. Whether your operations are national or

international, successful business requires efficient, reliable and

transparent processing of payment transactions beyond bank and

national borders. Commerzbank has aligned its portfolio of services

precisely to meet these requirements.

06 I Payments


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Payments I 07

The complexity of these adjustments depends,

among other factors, on whether you use

standard software or your own unique solution

to process payments. The first step should

therefore be an analysis discussion with

Commerzbanks SEPA experts to systematically

identify individual opportunities and develop

implementation plans.

Commerzbank is actively involved in shaping

the process of a uniform Eurozone payment

system, and we are happy to share the knowl-

edge we have gained in this area with you.

Our offer includes:

Information about SEPA, including all

details and background informationRecommendations for implementing

the new framework conditions for

SEPA payments

Provision of reliable and efficient

SEPA instruments

Continued operation of the previous

payments systems for a transitional period

If you would like more detailed information,

please have a look at our brochure or at

the factsheets concerning SEPA. You will

find them at www.commerzbank.com/sepa.

Commerzbanks realationship manager

and specialists will be happy to help.

A direct line to banks

Any company requiring a direct line to banks

throughout the world can process its pay-

ment transactions with the most diverse of

banks using the SWIFT network. Founded over

30 years ago in Belgium as a cooperative be-tween banks with international operations as a

way of providing a secure transfer process for

cross-border payment transactions, the SWIFT

network today covers more than 200 countries

and offers far more than just payment data

Uses tiedto scheme rules

Payers bank Payees bank

Payer Payee

Clearing & settlement

The SEPA 4-Corners Model

Mandate

2

3Productconditions

uses

bound to

4Productconditions

uses

bound to

Example low chart o a SEPA direct debit


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Payments I 09

Cards welcome

Credit card acceptance is a must these days,

and offers advantages for you as a retailer

and for your customers. It eliminates the need

to work with change and process cheques,

and also reduces the risk of theft or robbery.

Commerzbanks service allows your custom-

ers to pay without cash in stores and mobile

sales units. The service for retailers includes

card terminals for all common payment types,

which can be purchased or rented, and end-to-

end processing of payments. Commerzbank is

of course also happy to advise you in choos-

ing appropriate payment methods (electronic

cash online or offline, cash cards, credit cards,

Maestro cards and electronic debiting) andsolutions for terminals.

Flexible and independent business travel

With the Commerzbank Corporate Card, you

can save a great deal of time and money in

preparing, executing and billing business

travel. This service combines credit-card-

based payments with access to a state-of-the-

art online management information system.

When you travel on business, you and your

employees can pay conveniently and without

commission at over 30 million MasterCard

partners worldwide. If necessary, you can

withdraw cash worldwide in the local currency

at over one million ATMs.

Commerzbanks professional online reporting

ensures precise control of expenditure. Online

access to all accounting data ensures that your

employees always have an accurate overview

of their expense accounts. In addition, the

card offers access to an innovative online travel

management portal.

From the cashbox to your account

For companies that regularly generate sub-

stantial cash receipts, it is important that

the cash is transported securely to the bank

and promptly deposited. If company cash is

brought to the bank by your employees, they

can use combined deposit and withdrawal ma-

chines and cash-in terminals at Commerzbank

service locations. These are generally avail-

able around the clock, including on Sundays

and public holidays. Commerzbank SafeBags

make transporting cash even more secure.

Once these bags are sealed to transport the

counted cash, they cannot be opened without

incurring visible damage. In addition, your

cash is insured for up to 25,000 euros per trans-port when you transport it directly to your

Commerzbank branch in a SafeBag.

Alternatively, you can have your cash pro-

ceeds picked up and credited by a cash

transport company. Commerzbanks partner

for this service is SoltrX Transaction Services

GmbH (STS), a wholly owned subsidiary of

Commerzbank.


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10 I Inormation management

Assessing your business partners

To accurately assess and value your businessrelationships, you are well advised to regularly

inform yourself about your business partners.

As a Commerzbank customer, you benefit

from our network and evaluation expertise,

and receive fast and reliable banking informa-

tion about the economic situation of all your

debtors, irrespective of the different banks with

which these companies hold their accounts.

The up-to-date assessment of your business

partners creditworthiness and solvency gives

you a decisive advantage in the evaluation

of your receivables portfolio and also for the

assessment of your suppliers, significantly

reducing default risks.

In addition to banking information, our co-

operation with partner companies within the

Commerzbank Corporate Banking portal also

provides you with access to economic infor-

mation and the identification and addresses

of debtors.

Has your customers money transfer already arrived? Do you have

enough funds in your account to pay your suppliers bills early at a

discounted rate? Up-to-date account information gives you answers

to questions like these and more. Commerzbank has developed

individual solutions for interbank and cross-border transactions

that can be accessed through our Corporate Banking portal or

via electronic banking. In addition, Commerzbanks information

services are available to you when you want to assess the value of

your business relationships.

Updated several times a day

Commerzbanks electronic SWIFT-formataccount information is updated several times

a day. The electronic banking software gives

you full access to transaction information for

your Commerzbank accounts in Germany and

abroad, as well as to your other accounts with

foreign banks. Account information can also be

accessed over the internet. Intraday account

information shows near-time transactions to

give you an up-to-date overview of liquidity,

which creates the best conditions for efficient

Cash Management and optimised short-term

liquidity planning.

Other advantages:

Direct processing option in financial

accounting systems

Prompt automatic balancing of debtor/

creditor accounting

Automatic balancing of open positions

through separate listing of credit and

debit entries

Information management:Always up to date


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Treasury consulting:

analysis reveals potentials

Have the cash flows along your value chain

been optimised from a business perspective?

Is your Treasury set up in a timely and profes-

sional manner with regard to management,

skills and tools?

Many examples demonstrate the importance of

liquidity and working capital management in

modern business. These issues are made more

complex by internal and external factors alike.

Affected business units and processes need

to be adapted to new challenges, as well as

organisationally integrating liquidity and Cash

Management solutions. To achieve these goals,

it is necessary to analyse individual process

steps, examine work processes, redefine roles

and competences, and implement new rules.

Our independent and highly experienced

consultants support you in achieving the

optimum alignment of your companys

financial management. Working closely with

you, Commerzbank experts use the very latest

instruments and methods to analyse your cur-

rent position and to develop precise, tailor-

made solutions to optimally align your treasury

management. You can rely on their expertise

throughout the entire process.

Tender & Client Projects:

support without borders

Your business is active on the world stage.

To optimise your cash and treasury man-

agement, you need cross-border liquidity

management solutions for your payments and

treasury functions.

Commerzbanks Tender & Client Project Teamspecialises in developing concepts that are

tailor-made for your precise needs. Based

on your specifications, this service identifies

cross-border, interbank solutions that fully ex-

ploit your optimisation potential. Our Tender &

Client Project Team also supports you during

implementation as a central contact point and

coordinator. Through close cooperation with

our foreign units and foreign partner banks,

we are very familiar with the particulars of

local markets and incorporate this expertise

into our recommendations.

The Commerzbank advantage I 11

The Commerzbank advantage:Individual solutions

Commerzbanks consulting and advisory services extend far

beyond product solutions alone. You can also benefit from

Commerzbanks recognised comprehensive Cash Management

expertise for implementing individual concepts that are

precisely tailored to your needs.


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For more detailed information concerning Cash Management and payments, our

relationship managers for corporate clients as well as our specialists are at your disposal.

They can also provide you with brochures for the following topics:

Electronic solutionsInternational business

SEPA

Commerzbank AG

Corporate Banking

www.commerzbank.com/corporatebanking

Correctasat:12/2012,

VKS05052

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