Restructuring Treasury EBN
DACT Treasury Beurs
Noordwijk, 11 November 2011
Jeroen Piket, Treasurer
jeroen.piket@ebn.nl
EBN B.V.
Moreelsepark 48
3511 EP Utrecht
http://www.ebn.nl
EBN
General
• Wholly state owned company managing exploration,
production, storage and sale of Dutch State’s oil and gas
reserves, on-shore and off-shore
• EBN participates in any license to explore and produce
Dutch territorial gas and oil reserves (EBN share appr.
40%)
• Currently approximately 176 partnerships
with oil & gas companies
• Investment and costs are shared pro rata
parte and partners separately sell their
share output
• EBN key figures 2010
Sales
€ 6.5 billion
Net profit
€ 2.1 billion
Capital expenditure € 607 million
EBN
In 2011
• 5% increase in number of participations in exploration
and production partnerships
• Capital expenditure € 800 million (EBN share)
• Further focus on development unconventional gas
projects (shale gas)
• Reactivation of on-shore oil production in Schoonebeek
• Development underground gas storage Bergermeer
EBN
Funding
• Strong credit profile, stable Aaa/AAA rating, despite low
equity base and high leverage
• Funding sources
Short term: commercial paper
Long term: loans and bonds (a.o. CHF public bonds,
JPY private placements)
• Highly seasonal working capital flows a.o. following large
production volumes in winter, low volumes in summer
EBN
Treasury restructuring - background
• EBN’s Treasury historically 100% outsourced
• Decision to set up own EBN Treasury taken in
2008/2009 with targeted live date 1 July 2010
Therefore:
• Treasurer and Cash manager hired as per 1 October
2009
• Treasury accountant hired as per 1 November 2009
EBN
Treasury restructuring - scope
Scope of the project
• Education new Treasury staff
• Selection treasury management system (TMS)
• Implementation TMS
• Selection and set up other Treasury infrastructure
• Market data (Reuters)
• Counterparty risk tools (Moody’s Market Implied
Ratings)
• Electronic banking
• Trading portals (360T and MyTreasury)
• Implement new dealing mandate structure
• Establish new Treasury Policy
EBN
Treasury restructuring - scope
Scope of the project
• Education new Treasury staff
• Selection treasury management system (TMS)
• Implementation TMS
• Selection and set up other Treasury infrastructure
• Market data (Reuters)
• Counterparty risk tools (Moody’s Market Implied
Ratings)
• Electronic banking
• Trading portals (360T and MyTreasury)
• Implement new dealing mandate structure
• Establish new Treasury Policy
EBN
Treasury restructuring - project organization
• Project manager (Treasurer), Cash Manager,
Treasury accountant
• Steering group
• EBN Board
• Consultancy (Zanders, E&Y)
•
•
•
to EBN board prior to 1 October 2009
During project: TMS-selection only
Pre-live review
• Also involved: Legal, ICT
EBN
Selection EBN TMS
• Business case: description of EBN processes, EBN
system infrastructure etc.
• Translate this into TMS requirements
• Request for proposal to three pre-selected vendors
• Response vendors / demonstrations
• Three reference visits
• Evaluation, scoring, selection, decision
• EDP audit @ vendor
• Contract negotiation
EBN
Selection EBN TMS
• Business case: description of EBN processes, EBN
system infrastructure etc.
• Translate this into TMS requirements
• Request for proposal to three pre-selected vendors
• Response vendors / demonstrations
• Three reference visits
• Evaluation, scoring, selection, decision
• EDP audit @ vendor
• Contract negotiation
EBN
EBN’s TMS criteria related to
•
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•
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•
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•
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Forecasting
Cash management
Implementation
Pricing
Reporting
Deal capturing
Security
Static data management
Support
Accounting
All of this in a context of single entity company, with large
transaction sizes of all natures, but low transaction volumes
EBN
Implementation Bellin tm5 at EBN
• Set-up / training / portfolio input:
•
•
•
•
Set up of System settings (master data, entities,
counterparties, users, rights, bankaccounts,
currencies, etc.: 2 days
Configuration and Setup of TT Contract, configuration
of LMCash and LMStatus: 2 days, followed by entry
ytd transactions
Setting up and using LMPlanning: 2 days @ vendor
Configuring TTRiskWatch training (scenario analyses):
2 days
• Testing, problem solving
2 weeks
• Pre-live review by E&Y
With scope system access and authorization levels in
Bellin, electronic banking systems, trading portals: 3 days
• Go-live
EBN
Implementation Bellin tm5 at EBN
• Set-up / training / portfolio input:
•
•
2 months
•
•
Set up of System settings (master data, entities,
counterparties, users, rights, bankaccounts,
currencies, etc.: 2 days
Configuration and Setup of TT Contract, configuration
of LMCash and LMStatus: 2 days, followed by entry
ytd transactions
Setting up and using LMPlanning: 2 days @ vendor
Configuring TTRiskWatch training (scenario analyses):
2 days
• Testing, problem solving
2 weeks
• Pre-live review by E&Y
With scope system access and authorization levels in
Bellin, electronic banking systems, trading portals: 3 days
• Go-live
EBN
What do we have now
A system that facilitates:
• Cash planning with a.o. upload from G/L
• Cash reconciliation
• Cash positioning
• Deal capturing
• Reporting
• MtM valuation
• Scenario analyses
• Integrated market data (yields, exchange rates)
• On-line internet access (system is hosted by vendor)
EBN
What did we choose not to implement
• Direct feed of bank statements (Swift MT940)
• Interface to accounting system
• Netting (not applicable)
• Interface with payment systems
EBN
Lessons learned
• Understand your needs and focus on what you
really need
• How much flexibility do you need?
• Focus on standard functionality
• Include case-studies in the RfP’s
• Reference visits
• Create broad awareness of planning in
organization and stick to it
• Search for the best fit, not necessarily for the
best system
• Stay hands-on involved in implementation
process, limit consultants’ work as much as
possible to advice
EBN
Questions