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New Treasury Management System at Enovos Jean Willème – Enovos International Michael Diet - Intensum April 20, 2016

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©  2016 SAP SE or an SAP affiliate company. All rights reserved. 2 Public

Agenda

§  Enovos Group at a glance

§  Group Treasury – Roles & responsibilities

§  New Treasury Management System Project ü  Business requirements ü  SAP architecture ü  Implemented solution ü  Project planning

§  Benefits & lessons learned

§  Next steps


Enovos at a glance Introduction

Enovos is a utility company with core business in 4 countries (LUX, GER, FR, BEL). Enovos’ core competence is to procure, transmit and distribute electricity, natural gas and renewable energies to municipal suppliers, industry and private households.

The group is headed by Enovos International S.A., a holding company whose operational headquarter is located in Esch-sur-Alzette / Grand Duchy of Luxembourg.

Enovos International is more than a holding company. Its shared services center provides support functions for the energy supplier, Enovos Luxembourg, and the grid operator, Creos Luxembourg.


Enovos at a glance Structure of the Enovos group


Enovos at a glance Position and Strategy


Enovos at a glance Key facts and figures

•  Established in Luxembourg since 2009 (merger of Soteg SA, Cegedel SA and Saar Ferngas AG)

•  2014 guidance: •  Fixed assets : 1,738.0 M EUR •  Sales : (excl. Trading) : 2,584.9 M EUR •  Net profit of the year : 26.5 M EUR •  EBITDA : 212.2 M EUR

•  1,500 employees •  300,000 delivery points (electricity & gas) •  Sales volumes : 28 TWh gas & 17 TWh electricity •  Operations in 6 countries (LU, DE, FR, BE, IT and PT)


FOCUS SAP SOLUTIONS | EXPERTISE | PROJECTS

QUALITY ON TIME | ON BUDGET

FINANCE INTELLIGENCE INNOVATION CROSS INDUSTRY

PHARMA | ENGINEERING | BANKING & INSURANCE | MANUFACTURING | AUTOMOTIVE …

SOLUTION ADVISORY

SAP PROJECT IMPLEMENTATION

PEOPLE SOURCING

2005 FOUNDATION

BELGIUM LUXEMBOURG

FRANCE / UK SWITZERLAND

40 CONSULTANTS

90% PROJECTS

VALUE ADDED RESELLER

SAP PRESALES EXCELLENCE FINANCE & TREASURY

SAP VALUE CIRCLE PARTNER FINANCE & ANALYTICS

INTENSUM OUR COMPANY & EXPERTISE


Group Treasury Roles & Responsibilities

§  6 employees in charge of front, middle and back office activities

§  Manage cash operations and the liquidity of the Group �  Integration / reconciliation of the electronic bank statements for core companies of the Group �  Monitor global cash position & liquidity forecast �  Cash concentration via cash pooling and sub cash pool agreement with 20+ entities. �  Monthly Cash flow statement – Analysis cash in / out by nature �  Rolling cash flow forecasting

§  Funding & Hedging �  Granting shareholder loans to the subsidiaries �  Long term refinancing by bank loans or other instruments as bond issues, securitization & Schuldschein. �  Short term refinancing via bank credit lines (committed and uncommitted) �  Hedging mainly via interest rate swaps �  Granting parental guarantees, back-to-back guarantees and handling the bank guarantees.

§  Manage In House Bank & Payment Factory �  IC commercial & treasury payments, Payment on behalf, cash pool mirroring, interest scale calculations…

§  Treasury reporting pack

.


§  Acquire a new robust, performing & highly automated Treasury Management System to support the main business requirements:

•  Improve visibility & control on the global cash position, on short & medium term forecasts •  Manage centrally the bank statements processing & dispatching throughout the 2 main SAP systems •  Replace the homemade internal current accounts management solution •  Implement a Payment Factory to support IC (AR, AP), external payment processes (POB) and Treasury

payments •  Manage the following financial instruments: Shareholder loans, credit facilities, bank loans, bonds,

guarantees, interest rate swaps, … •  Implement a cash flow statement based on direct method •  Automatic market data upload from Thomson Reuters •  Flexible reporting including risk management •  Reduce manual tasks and increase automation •  Optimize treasury monthly closing activities •  Audit trail & segregation of duties

New Treasury Management System Business requirements


•  4 main SAP systems: •  HPE – Enovos financial system

•  Enovos Intl, Enovos Lux, Enovos DE •  Modules FICO, PS, CM, TRM, IHC, SD, MM

•  PHR – Enovos group HR system •  Payroll for Enovos Lux and Creos Lux •  Modulse HR, TR, ESS-MSS

•  PRD – ISU Enovos & Creos system •  Enovos Lux and Creos ISU system •  Modules :

•  Enovos Lux: ISU, FICA, mini FIGL, CM •  Creos Lux, ISU, FICA, FICO, PS, IM, PM, SD,

MM, WM, CM •  E20 - Creos DE system

•  Creos Lux •  FICO, IHC, PS, IM, SD, MM, CM

New Treasury Management System Current SAP Architecture


New Treasury Management System Implemented solution

Treasury Reporting

& Self-service

Cash Management

Liquidity Planning

Treasury & Risk In House Banking Payment Factory

SAP Treasury


New Treasury Management System SAP Cash Management & Liquidity Planning

§  Cash & Liquidity Management

�  Dispatching & integration of EBS MT940 �  Global cash position & liquidity forecast

–  Consolidation of actual & forecasted data from 3 SAP systems –  Data: AR, AP, ISU FICA, payment & direct debit cycles, deal cash flows,

manual planning…

�  Bank statement reconciliation via New post-processing cockpit (FEBAN)

§  Cash flow statement & Rolling forecasting •  Cash Flow Statement in direct method

–  Consolidation of data from 2 SAP systems using SAP BW –  Allocation of cash in / out on a predefined liquidity items structure (operating – investing –

financing)

�  Reporting (analysis of past periods) using SAP BPC �  Rolling forecasting & variance analysis using SAP BPC (in progress)

.


New Treasury Management System SAP In House Banking & Payment Factory

§  In House Banking

�  Internal current account management system �  3 In house banks to represent the group & cash pooling structures �  Processes in scope

–  Settlement of IC commercial & treasury activities –  Mirroring of cash pooling movements –  Cross bank areas payments –  End of day process: o  daily internal statements, booking of receivables & payables, interest scale calculations

§  Payment Factory

•  Payment on Behalf concept –  Affiliates are executing standard SAP payment program (F110) on a daily basis –  Group Treasury is receiving the payment requests and is paying on behalf of the subsidiary –  Affiliate internal current account is debited

.


New Treasury Management System SAP Treasury & Risk Management

§  Treasury & Risk Management

�  Management of financial instruments: internal / bank loans & deposits, credit facilities, bond issue, securitizations, interest rate derivatives, guarantees…

�  Front to back office & accounting workflow – Segregation of duties �  Mirroring of intercompany trades in affiliates books �  Treasury payment processing �  Centralized daily treasury posting activities �  Centralized closing activities (valuation, amortization & accruals of expenses and revenues) �  Counterparty risk: monitoring of limit utilizations towards counterparty banks �  Market data feed through Reuters interface

.


New Treasury Management System Management & self-service Reporting

§  Treasury reporting

�  Data modelling in SAP BW –  Cash & Liquidity, Treasury & Risk, In house bank

�  Reporting & dashboarding using SAP BI4 platform

–  Web Intelligence –  Analysis for Microsoft Excel –  Business Planning & Consolidation (SAP BPC)

�  Some examples

–  Cost of Indebtedness –  Financial indebtedness –  Debt Maturity profile / debt evolution –  Used / unused portion of credit facilities –  Group cash evolution –  Cash pooling - internal current account balance evolution

.


New Treasury Management System Project Planning

16

Steps Tasks

APR 2014

MAY 2014

JUN 2014

JUL 2014

AUG 2014

Holiday

SEPT 2014

OCT 2014

NOV 2014

DEC 2014

JAN 2015

FEB 2015

MAR2015

APR2015

Process Analysis Workshops

Impl. Concept Business Blueprint

Realization SAP Treasury *TRM/CLM *IHC

Realization Reporting Data Model Self-Service

Key Users Validation Bug fixing

SAP E20 Creos DE Rollout CM & IHC 3

BusinessBlueprint

Workshops

REALIZATIONSAPTREASURY&INTERFACES

LIQUIDITYPLANNER–CFSTATEMENT&FORECASTONBUDGETUAT PostGoLiveSupport-StabilisaMon

&AssistanceCutOver

Analysis

Infrasetup

BWTMSDataModel

BOReporMngDevelopment

KUReportsValidaMon

Adjustments&bugfixing

RolloutCM&IHConE20


Benefits & Lessons learned

§  Benefits •  Visibility on cash position and forecast optimized thanks to better control of payment processes and

distributed cash management (including ISU/FICA) •  Easy extension of internal bank processes to new affiliates (currently 20+ IHC accounts) •  Treasury transactions and closing activities managed centrally and automatically posted on multiple SAP

systems (via ALE) •  Fast close, improved IC reconciliation and treasury reporting pack

§  Lessons learned •  Involve all stakeholders from the start to the end – local / subsidiaries’ users •  Multiple In House Banks add some complexity •  Don’t underestimate data cleansing and take over of legacy or outstanding deals (Excel or paper based) •  Think first ERP and after BI i.e. acquire enough maturity / understanding of the system to define reporting

requirements •  Anticipate authorization setup •  Anticipate Business functions activation and non-regression testing


Next steps

§  SAP unbundling project - 2 news SAP systems to be reconnected with TMS •  Bank statements, IHC (including IC payments of grid usage billing), distributed CM, market data

§  Long term forecast - Cash Flow on budget using BPC

§  Liquidity Planner improvements

§  Rollout of XML ISO20022 - SEPA CT on Luxembourgish banks

§  BI4 - Treasury reporting to be improved

§  Bank communication tool

§  …


•  Before After

SAP Architecture - Future After unbundling project

©  2016 SAP SE or an SAP affiliate company. All rights reserved.

Thank you

Contact information: Jean Willème – Enovos International Email: [email protected] Michael Diet – Intensum Email: [email protected]

Public New Treasury Management System at Enovos - SAP …sapevents.be/FID/presentations/1.1 _ FID _...

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