How to Design an Efficient Workflow in
Banking
Chris Droussiotis
2013
How to Design an Efficient Workflow in Banking
Executive Summary:
 Commercial banks, assaulted by the pressures of globalization, competition from
non-banking financial institutions, and volatile market dynamics are constantly
seeking new ways to add value to their services.
 Community banks have a different focus – how to stay competitive in their local
markets with fresh new products and ideas and excellent performance
 The question is what drives performance?
 Based on many studies the key to designing an efficient workflow in banking is to
establish the linkage between marketing, operations, organizational structures
and human resource management in achieving excellence as well as
implementing the right technology.
How to Design an Efficient Workflow in Banking
Community Banks:
 When entering a specific market area or introduce a new product, you must
analyze and plan all of the issues associated with branch and product
development: finding a location, recruiting management, clarifying the customer
base, introducing a new delivery system. The bank marketing plan as developed
by management will depend on this information as bench marks to measure its
success. A matrix can be used for all of these tasks; even the analysis of the
bank's Asset/Liability portfolio can be driven through the following matrix.
How to Design an Efficient Workflow in Community Banking
Measuring the Quality of Service: It Starts from Customer
Feedback - Output
Measuring Quality of Service:
 Reliability: The ability to perform the promised services accurately and dependably
 Responsiveness: The willingness to help customers and provide prompt service
 Assurance: The knowledge and courtesy of employees and their ability to convey
trust and confidence..
 Tangibles: The appearance of physical facilities, equipment, personnel and
communication materials
 Empathy: The caring, individualized attention provided to customers
Measuring the Quality of Service: It Starts from Customer
Feedback - Output
RESOURCES
Personnel
Techology
PERCEIVED
MEASURES
OF QUALITY
OBJECTIVE MEASURES
OF QUALITY
Incidents Duration
BRANCH (as seen
Waiting Time
by Management)
Space
Credit Approval
Workplace Design:
Job Design / Procedures / Policies Initiatives
BRANCH (as seen
by Client)
Reliability
Responsiveness
Assurance
Tangibles
Empathy
Personnel : Measuring the Quality of Service
The Workflow Process - Specialization
Front Office (Relationship Manager)
• Initial Market, Structure and Credit Analysis
Middle Office
• Credit and KYC Compliance Process
•Portfolio Management
Controlling
Time –
feedback from
Client
Back Office – Credit Committee
• Credit Analysis
• KYC
19
Action Plan: Personnel
How to Get the Best Performance From Team Members
•
Workshop materials to teach teamwork & team building skills – redesigning the Job
procedures and policies for efficiency for all employees in the process
Step 1
• Conduct a meeting with your team as soon as it forms and explain the mission of the
company and why your department or team is important to realizing the goals. Tell
the members why they were chosen to fulfill the duties of the project.
Step 2
• Include your team in planning the activities to meet deadlines. Allow each member to
determine their duties that lead to the end result. Write down performance plans and
reassess regularly to ensure compliance.
Step 3
• Encourage employees who do not perform at a high level to take responsibility for
their work and help keep the team moving forward. Let the laggard members know
that their tasks are important and that other workers rely on
Action Plan: Personnel
How to Get the Best Performance From Team Members
•
Workshop materials to teach teamwork & team building skills.
Step 4
• Organize brainstorming sessions with your team to discover more efficient avenues
for task completion. This exercise also shows that you respect your team members'
ideas and will listen when approached about new solutions to output delays.
Step 5
• Allow team members to resolve conflict among themselves, with you as a guide.
Ensure that each one respects the other person's idea and position, but make it clear
that they must do what's best for the group and the company. Teaching your staff
how to place their personal conflicts aside to advance the goals of the team helps
them learn how to avoid behavior that slows down progress so they can perform at
their best together.
Step 6
• Reward employees for meeting interim deadlines and completing portions of the
larger project. A pizza lunch in the workplace or a half-day off with pay serves to
refresh and motivate the team. If your budget allows, organize a morale booster that
includes a day of activities and bonding away from the office to encourage your team
members to perform efficiently as a team.
Action Plan: Technology & Space:
Balancing efficient technology, regulations and customer demand.
Step 1
 Set up a Marketing plan that includes the latest external technology including a web based
banking, internet services and social media for the fiorst point of contact.
Step 2
 Set-up state of the art internal technology at the branch level – showing innovation – including
documentation workflow which should reduce the time necessary to generate a commercial loan
without effecting the thorough approval process and the quality of loan documents.
 Software systems ystems are available such as “Hotdocs” for efficient loan document workflow.
The loan document workflow begins by questing the bank’s various databases for information
about the customer making the loan application. All relevant data is mapped into the system. The
relationship manger keys in all remaining necessary data and submits the interview of he loan
approval committee.
 A lot the business analytics are built into the documentation flow, so the approval committee can
run their analysis and send back questions to the relationship manager.
Action Plan: Technology & Space:
Balancing efficient technology, regulations and customer demand.
Example 1:
 A bank teller in a retail branch performs many mission-critical activities that can be supported by
production workflow.
 There are set number of procedures that are done at the counter at the counter.
 Each procedure triggers follow-up actions by others within the organization.
 It is critical to the correct operation of the bank that a teller’s every action is well defined and
consistently performed across large number of tellers
Example 2
 Loan processing which financially oriented has rigorous rules to be followed, both in terms of
accounting practices as well as laws that define how such organizations are allowed to operate.
 Since the product supplied, such as money in the case of loan applications, is identical from
various sources, the market favors those companies that can handle a large number of loans
accurately and correctly.
Case Study:
Structuring Acquisition Financing
LBO Opportunity
Ares Venture Management Group (“Ares”) decided to purchase ABC hotel property and its land in Austin Texas for
$10,000,000. In addition, Areas will spend $2,000,000 for Renovations including new furniture and equipment.
Capital Raising
Bank Debt:
Amount of Loan: 3.0x ABC’s First Year’s EBITDA
Interest Rate: LIBOR + 4.5%
Term: 7 years
Schedule Principal Payments:
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Mezzanine:
300,000
500,000
500,000
600,000
700,000
900,000
Balance
Amount of Loan: Up to 4.0x of ABC’s First Year EBITDA (Equity - not be less than 35% of total Capital)
Interest Rate: 9.00%
Term: 10 years
Schedule Principal Payments: Years 1-9: $0 ; Year 10: The Balance
Equity: Ares’ equity contribution to the purchase will be 35% or up to total leverage of 4.0x dictated by the Mezzanine
Loan requirements.
19
Structuring a Loan – Middle Market (Case Study)
Preliminary Debt Capacity, Leverage, Coverage and Collateral Analysis
ABC Company
LBO Equity Analysis using CAPM
3
TRANSACTION SOURCES & USES
Debt
Capacity
(EBITDA x)
4
Sources:
Amount
% Capital
Expected
Return
Expected
Return
(After Tax)
WACC
(After Tax)
EBITDA
Multiple
5
6
7
8
9
Bank Loan
Mezzanine Note
Total Debt
Equity
Total Sources
3.0x
4.0x
6,000,000
2,000,000
8,000,000
4,360,000
12,360,000
48.5%
16.2%
64.7%
35.3%
100.0%
5.607%
9.000%
3.589%
5.760%
20.00%
20.00%
1.74%
0.93%
2.67%
7.05%
9.73%
3.0x
1.0x
4.0x
2.2x
6.2x
10
11
12
13
1st Year's
EBITDA
Multiple
Uses:
Puchase of Property
Renovation
14
15
16
Transaction Fees & Expenses
Total Uses
6.0x
3.0%
COST OF DEBT CALCULATIONS
Loan
Spread
4.00%
10,000,000
2,000,000
12,000,000
360,000
12,360,000
% of
Total
Uses
97.1%
2.9%
100.0%
WACD = 4.132%
First Year's EBITDA =
Tax Rate=
2,000,000
36.0%
COST OF EQUITY CALCULATIONS
COST OF BANK DEBT CALCULATION
(Floaring Rate)
3M-LIBOR
Assumptions
0.50%
Amount
Initial All -In
4.50%
COST OF MEZZANINE NOTE CALCULATION
9.00%
E (re) = rf + β . Pe + e
6-year Treasury Note [ rf ]
Beta for Publicly Traded Hotel [ β ]
Equity Premium [ Pe ]
Firm Specific Risk Premium [e]
Cost of Equity
1.95%
1.633x
11.05%
0.0%
20.00%
20
Structuring a Loan – Middle Market (Case Study) - Continued
Preliminary Debt Capacity, Leverage, Coverage and Collateral Analysis
18
DEBT ASSUMPTIONS & RETURN ANALYSIS
19
Bank Loan Information
Debt IRR
Amount Outstanding (End of Year)
Schedule Principal Payments
Interest Payment (Calc based on last Year's Outs)
Total Financing Payment
5.607%
Interest Rate
LIBOR RATE
LIBOR Rate Increase Assumptions
20
21
22
23
24
25
26
27
28
Corporate Bond Information
Amount Outstanding
30 Schedule Principal Payments
31 Interest Payment (Calc based on last Year's Outs)
Total Financing Payment
9.000%
32
29
33
34
35
Total Financing
Total Debt Outstanding
Terms
6,000,000
7 years
5.61%
(6,000,000)
0.50%
2,000,000
10 Years
9.00%
(2,000,000)
1
5,700,000
300,000
270,000
570,000
4.50%
0.50%
0.00%
2
5,200,000
500,000
285,000
785,000
5.00%
1.00%
0.50%
3
4,700,000
500,000
286,000
786,000
5.50%
1.50%
0.50%
4
4,100,000
600,000
305,500
905,500
6.50%
2.50%
1.00%
5
3,400,000
700,000
266,500
966,500
6.50%
2.50%
0.00%
6
2,500,000
900,000
221,000
1,121,000
6.50%
2.50%
0.00%
7
2,500,000
162,500
2,662,500
6.50%
2.50%
0.00%
2,000,000
180,000
180,000
2,000,000
180,000
180,000
2,000,000
180,000
180,000
2,000,000
180,000
180,000
2,000,000
180,000
180,000
2,000,000
180,000
180,000
2,000,000
180,000
180,000
750,000
7,700,000
965,000
7,200,000
966,000
6,700,000
1,085,500
6,100,000
1,146,500
5,400,000
1,301,000
4,500,000
2,842,500
2,000,000
21
Structuring a Loan – Middle Market (Case Study) - Continued
Preliminary Debt Capacity, Leverage, Coverage and Collateral Analysis
CASH FLOW & EQUITY RETURN ANALYSIS
Company Projections
Operating
Assump.
5.00%
35.0%
15.0%
50.0%
3.00%
7
Revenues
Cost of Revenues
Operating Costs
EBITDA
Less Depreciation
Less Amortization of Fees
EBIT
Less Interest (Unlevered for DCF Analysis)
EBT
Less Taxes (adj out Interest Exp)
Plus Depreciation & Amortization
Less Working Capital
Less Capex
Cash Flow Before Financing (CFBF)
Entry Year
0
growth
% of Revenue
% of Revenue
% of Revenue
years
36.0% % of EBT
1.00% % of Revenue
3.00% % of Revenue
Less Financing ( P + I )
Equity Cash Flows
Year 1
1
4,000,000
(1,400,000)
(600,000)
2,000,000
(120,000)
(51,429)
1,828,571
1,828,571
(658,286)
171,429
(40,000)
(120,000)
1,181,714
Year 2
2
4,200,000
(1,470,000)
(630,000)
2,100,000
(126,000)
(51,429)
1,922,571
1,922,571
(692,126)
177,429
(42,000)
(126,000)
1,239,874
Year 3
3
4,410,000
(1,543,500)
(661,500)
2,205,000
(132,300)
(51,429)
2,021,271
2,021,271
(727,658)
183,729
(44,100)
(132,300)
1,300,942
Year 4
4
4,630,500
(1,620,675)
(694,575)
2,315,250
(138,915)
(51,429)
2,124,906
2,124,906
(764,966)
190,344
(46,305)
(138,915)
1,365,064
Year 5
5
4,862,025
(1,701,709)
(729,304)
2,431,013
(145,861)
(51,429)
2,233,723
2,233,723
(804,140)
197,289
(48,620)
(145,861)
1,432,391
Exit Year
6
5,105,126
(1,786,794)
(765,769)
2,552,563
(153,154)
(51,429)
2,347,981
2,347,981
(845,273)
204,582
(51,051)
(153,154)
1,503,085
(750,000)
431,714
(965,000)
274,874
(966,000)
334,942
(1,085,500)
279,564
(1,146,500)
285,891
(1,301,000)
202,085
Terminal Value
EBITDA Multiple Method (initial purchase multiple)
Growth
6.0x
15,315,379
Perpetuity Method (using WACC + growth) 3.50%
9.73%
25,025,580
Average Terminal Value
Debt Outstanding
Equity Value (TV - Debt)
7
5,360,383
(1,876,134)
(804,057)
2,680,191
(160,811)
2,519,380
2,519,380
(906,977)
160,811
(53,604)
(160,811)
1,558,799
(2,842,500)
(1,283,701)
20,170,479
4,500,000
15,670,479
Equity Cash Flows
(4,360,000)
$ 1 PV Table (Expected Equity Rate)
PV Table (Expected Equity Rate)
20.00%
6,310,149
Initial Investment
NPV=
(4,360,000)
1,950,149
IRR=
431,714
x
0.8333398
359,765
274,874
x
0.6944552
190,888
334,942
x
0.5787172
193,837
279,564
x
0.4822680
134,825
285,891
x
0.4018931
114,898
15,872,564
x
0.3349135
5,315,937
28.6%
22
Structuring a Loan – Middle Market (Case Study) - Continued
Preliminary Debt Capacity, Leverage, Coverage and Collateral Analysis
Collateral Analysis
Advance
Rates
(ABL
Facility)
100%
85%
50%
50%
50%
Cash
A/R
6 Inventory
7 Fixed Assets
8 Investments
4
5
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
Total
BV of
Assets
($ mm)
Debt
Capacity
based on
Colateral
50.00
50.00
200.00
170.00
150.00
75.00
300.00
150.00
100.00
800.00
50.00
495.00 Debt Capacity
Cash Flow Analysis (Debt Capacity)
0
Revenue
CoGS
Oper. Exp.
EBITDA
Less Capex
Less Cash Taxes (% of EBIT)
Less WC
CFADS
Terminal Value (based on EBITDA)
PV
Inerest Rate (Cost of Funds)
Cushion
Debt Capacity
Leverage
Assumptions
5.00%
65.00%
10.00%
100.0
5.00%
40.00%
2.00%
1
2
105.0
(68.3)
(10.5)
26.3
(5.3)
(12.6)
(2.1)
6.3
3
110.3
(71.7)
(11.0)
27.6
(5.5)
(13.2)
(2.2)
6.6
4
115.8
(75.2)
(11.6)
28.9
(5.8)
(13.9)
(2.3)
6.9
5
121.6
(79.0)
(12.2)
30.4
(6.1)
(14.6)
(2.4)
7.3
6.0x
127.6
(83.0)
(12.8)
31.9
(6.4)
(15.3)
(2.6)
7.7
191.4
157.9
6.3
6.6
6.9
7.3
199.1
8.00%
20.00%
126.31
4.8x
* Adj for Depr = same as Capex
23
Loan Pricing Model
Bloomberg
18
Loan Pricing Model – Negotiating the Price
Bank Debt Structure
Pricing
Credit Stats
Primary
Name
Business
Description
Moodys
S&P
CompuCom
Computers & Electronics
B1
B
Hienz
Food & Beverage
Ba2
Gardner Denver
Industrials
B2
Apex Tools
Manufact. & Machinery
Heartland Dental
Houghton
ADS Waste Holdings
Facility
Total
($mm)
R/C / ABL
($mm)
Term
Loan B
($mm)
R/C
Spread
(bps)
Term
Loan B
Spread
(bps)
Term
All -in
Loan B
Spreead
OID
Term Loan
(% Par)
B (bps)
Libor
Floor
Rate %
All -in
spread
incl. Libor
Floor
Term
Loan B
(bps)
EBITDA
($mm)
Snr
Lev
x
Total
Lev
x
755.0
150.0
605.0
150.0
325.0
99.5
325.1
100
425.1
143
4.1x
5.8x
BB
8,550.0
2,000.0
6,550.0
200.0
250.0
99.5
250.1
100
350.1
2,093
5.0x
6.4x
B
2,200.0
400.0
1,800.0
325.0
325.0
99.5
325.1
100
425.1
462
5.0x
6.5x
B1
B
1,010.0
175.0
835.0
325.0
325.0
99.5
325.1
125
450.1
234
3.6x
5.5x
Healthcare
B1
B
500.0
100.0
400.0
500.0
99.0
500.3
125
625.3
96
4.1x
5.9x
Chemicals
NR
B
505.0
50.0
455.0
400.0
99.0
400.3
125
525.3
125
4.5x
6.1x
Waste Management
B2
B
1,950.0
300.0
1,650.0
450.0
99.0
475.0
125
600.0
422
3.9x
5.8x
2,900.0
400.0
2,500.0
400.0
425.0
99.0
450.0
125
575.0
619
4.7x
6.6x
925
250
675
325.0
325.0
99.5
337.5
100
437.5
316
2.4x
2.4x
1,850.0
300.0
1,550.0
375.0
99.0
375.3
125
500.3
337
4.6x
6.9x
625.0
96.5
625.9
125
750.9
82
5.2x
5.2x
754.0
100.0
754.0
-
754.0
1,305
1.5x
3.4x
-
-
-
-
1,011
1.1x
3.0x
425.0
DuPont Performance Coat. Coatings
B2
B
Genpact
Technology
Ba2
BB+
Hamilton Sundstrand
Manufacturer of Pumps
B2
B
Ferrara Candy Company
Food & Beverage
B/B2
NR
550.0
125.0
425.0
EP Energy
Energy
Ba2
BB-
3,550.0
800.0
2,000.0
Samson Invest. Co
Energy
Ba3
B+
2,250.0
2,250.0
Pharma Product Develop.
Pharma research
B1
B+
1,625.0
175.0
1,450.0
550.0
575.0
97.0
575.8
150
725.8
314
3.9x
5.9x
Capsugel
Healthcare
B2
BB-
1,070.0
150.0
920.0
450.0
450.0
99.0
450.3
125
575.3
231
4.0x
6.2x
Autoparts Holdings
Motor Parts
B+
730.0
50.0
680.0
425.0
500.0
99.5
500.1
150
650.1
145
3.7x
4.8x
Del-Monte
Food & Beverage
B2
B
3,250.0
750.0
2,500.0
225.0
300.0
99.0
300.3
150
450.3
635
4.1x
6.5x
Taminco
Specialty Chemical
B2
B+
703.0
198.0
505.0
198.0
350.0
98.0
500.0
125
625.0
210
2.2x
3.9x
United Components Inter.
Auto Supplier
B2
B
375.0
75.0
300.0
450.0
400.0
100.0
400.0
150
550.0
158
2.7x
4.9x
J. Crew
Apparel/Retailer
B1
B+
1,450.0
250.0
1,200.0
250.0
350.0
100.0
350.0
125
475.0
316
3.1x
4.9x
Commscope
Technology
B1
B+
1,400.0
400.0
1,000.0
425.0
425.0
99.0
425.3
175
600.3
492
2.0x
5.0x
Syneverse
Telecom
B1
B+
1,175.0
150.0
1,025.0
375.0
375.0
99.0
375.3
150
525.3
262
3.9x
5.7x
527.0
19
Risk Assessment Analysis
Check List : To Do to close new transaction
To Do
Note
Get the new SUN
Only in case of new customer
KYC (Prospect ? Full)
Only in case of new customer
Get the CARS Number
Before the closing, finish its Full KYC and obtain the CARS Number
Check the Term Sheet
Check all items
Credit Application
To CDAD - Obtain the approval
Commitment Application
To PDAD - Obtain the approval
Submit the Admin Sheet from BCDAD
Provide the form of Admin sheet with BCDAD
Send the Commitment Letter
After obtaining the Credit Approval, get the signature from GM and Send to the Agent
Check the Credit Agreement
・Especially check the items described in the Term Sheet
Check
・Check the funding condtion - Notice Time / Currency etc
Legal Check
Request Legal Check of the Credit Agreement
Send the document to BCDAD
BCDAD also has to check the document before its closing
Signing Check Sheet
Circulate and submit the check sheet to SCAD / BCDAD also needs the approved check sheet
Send the Signature Page to the Agent
・Get the signature from GM and Send to the Agent
・Show the approval of 1. Credit Application 2. Commit Application 3. Legal Comment to GM
・Send the above 3 items to BCDAD
Closing
Closing
16
Risk Assessment Analysis
Typical Internal Rating Analysis by each bank
 Most banks’ internal ratings are in line with the Agencies’ external ratings, though the analysis is
done independently. This analysis is based on two approaches:
 Quantitative Analysis
 Qualitative Analysis
The Typical Scale is 1-10, 1 being
with very limited risk to default and
10 the issuer being in bankruptcy
with no chance of recovery
The Quantitative Analysis for establishing the Internal rating which measures the probability of default
is based on the following parameters (each component is weighted at a specific level of importance):
 Leverage Ratio - the relationship between debt and earnings (i.e. DEBT / EBITDA)
 Capitalization Ratio – the relationship between the bank debt and the rest of the capital (Capital Leases,
Bonds, Equity)
 Coverage Ratio - Issuer’s Cash Flow covering it’s debt obligations (interest and principal payments)
 Variance of Projections – based on the projections, the model typically assumes a certain haircut (1030%) to the management’s projections and it tests it’s ability to pay its debt obligations.
 The Quantitative approach adjusts up or down based on industry characteristics (Recession resistance,
cyclical, or event driven).
 The Qualitative Analysis is subjective based on each bank’s internal policy. The Analysis would include
strength of management, support from the equity sponsor, recovery analysis (asset collateral) and
outlook.
16
Risk Assessment Analysis
Commitment Application / Funding Check Sheet
Please submit this in credit application
Submit: (1)Commitment Application When the Credit Application is submitted (also attached with Credit Application)
(2)Funding Check Sheet When the Document is circulated
Stamp : Necessary for Funding Check (Not Necessary for Commit Application)
SCAD
Lending Branch
Please fill in the white blanks
Please fill in the correspond matrix by "1"
Commit Application / Funding Check
Date
Booking Branch
Lending Branch
Officer in charge
Commitment due date for SMBC to the customer
Signing Date
First Drawndown Date
Amount
Customer/Project Name
SUN
<50M
=50M<200M =200M<
Total facility
Amount
Same Day
Notice
Currency
Available
USD Only
Details of the company or project
(Line of business, location, main business etc)
Including
Other
Currency
16
Risk Assessment Analysis
Facility Details
Facility
Type of Application (New/Refinance)
Existing Facility amount (SMBC)
Net increase with the applied facility (SMBC)
Total Facility amount (SMBC)
Facility type
Facility currency
Available currency
Choose one in the list
* Add columns if more than 2 facilities
Facility B
Facility A
$0
(1)
(2)
(3)
$0
(4)
(5)
(1)
(2)
(3)
(4)
(5)
In case you choose "OTHER" above, please input Ccy manually
Time Zone
Minimum Drawdown Notice days
Notice hour limit for the minimum dd notice days
* Describe shortest notice time
**Same Day funding:
NOT accept: later than 1PM (To Agent) / 2PM (To SMBC)
Sublimit by Currency if any
( Available currency not described above)
Available amount for same day notice
Remarks
Confirmation by Fundng center
Done or Not Yet
Drawdown Maturity ( YYYY/MM )
Base Rate + Spread
Commitment Fee
Upfront Fee
Other fee (Funding Agent Fee etc.)
Syndicated Credit (Participation/Agent)
RAROC for the transaction
SMVA fo the transaction (in USD)
Customer's RAROC after the transaction
Customer's SMVA (in USD) after the transaction
TD(NYC)
TD(NYC)
16
Risk Assessment Analysis
Details of the deals or Description of profitability
Funding schedule(ie, anticipated drawdown date)
Imformation (Improvement from previous contract or Deposit from the costumer, etc)
16
Risk Assessment Analysis
Company A
INCOME STATEMENT
Total Revenues
(% Growth)
COGS
Gross Profit
(Gross Margin)
SG&A & Depreciation
EBITDA
(EBITDA Margin)
Operating Income
(Operating Margin)
Interest Expense
Equity in Affiliates
Other Income (Exp)
Unusual Items (Exp)
EBT
Income Tax
Minority Interest
Other After-Tax Items
Net Income
Total Revenues
($MM)
12 mos
Dec-06
N/A
#DIV/0!
#DIV/0!
#DIV/0!
-
12 mos
Dec-07
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
-
12 mos
Dec-08
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
-
12 mos
Dec-09
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
-
LTM
Sep-10
N/A
#DIV/0!
#DIV/0!
#DIV/0!
-
9 mos
Sep-09
Sep-10
N/A
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
-
-
-
-
-
Dec-06
-
Dec-07
-
Dec-08
-
Dec-09
-
-
-
-
Total Other Investing Act.
Financing Activities
Incr./(Dcr.) Debt
Share Issuance
Share Repurchase
-
-
-
-
-
-
-
-
-
-
Other Financing
Total Financing Activities
FX Effects
Change in Cash
-
-
-
-
-
-
-
CASH FLOW
Net Income
Deprec./Amort.
Future Income Taxes
Equity in Net Loss
Non-Cash & Other Adj.
Chg in Other Asset/Liab
Funds from Operations (FFO)
Chg in Working Capital
Operating Cash Flow (OCF)
CAPEX
Dividends
Free Cash Flow (FCF)
Other Investing Act.
Acquisitions
Divestitures
Investment
Other Investing Act.
-
-
Sep-10
-
Sep-09
-
Sep-10
-
-
-
-
-
-
-
-
-
ASSETS
Cash
Short-Term Investments
Receivable
Inventory
Prepaid Expenses
Future Income Tax
Other Current Assets
CURRENT ASSETS
PP&E
Dec-06
-
Dec-07
-
Dec-08
-
Dec-09
-
Goodwill
Other Intangible
Equity Investment
-
-
-
-
Other Assets
FIXED ASSETS
TOTAL ASSETS
-
-
-
-
1
Comment
2
Comment
3
Comment
CREDIT STATS
EBITDA / Interest Exp.
EBIT / Interest Exp.
PP&E / Debt
Working Capital
Total Debt / EBITDA
FFO / Total Debt
Total Debt / Capitalization
Tangible Net Worth
Debt / Tangible Cap.
Receivable Days
Inventory Days
Payable Days
Asset Turnover
Total Adj. Debt / EBITDAR
Dec-06
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
LIQUIDITY:
Sep-10
Credit Facilities
Committed Facilities
(Usage) - LCs
(CP)
Available Credit Fac.
Cash + ST Investments
Total Liquidity
Dec-07
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
Dec-08
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
MATURITIES:
Dec-09
Debt
-
2010
2011
2012
2013
2014
After
Total
Int. Disc.
Total
Dec-09
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
Dec-09
Lease
-
-
16
Know Your Customer- KYC Analysis
Date: 29-May-2013
Compliance Check Sheet
CDAD
This check sheet shall be attached to all applications except change of conditions.
1) Section A: "Adverse Information"(*1)
Borrower
Shareholders
(more than 25%)
%
%
%
%
Chairman or CEO
Others
Mandatory Check Sheet for "Adverse Information"
Items
Check point
Section
1) Has any "Adverse Information" been released since the shorter of the past three years (in new obligor
applications) or since the completed date of the latest compliance check sheet?
Adverse Information
If yes, all "Adverse Information Trigger Report(s)" shall be attached to the current compliance check sheet and
included in the application, and discussed in the write-up.
2) Do the attached report (s) include new adverse information trigger report (s) being reported for the first time?
If yes, make sure that you identify the report by highlightening the title, etc.
Results
Completed date
Yes
N.A.
-
1. Borrower (Including Guarantor), 2. Chairman/CEO, 3. Large(25%+) shareholder, 4.Others that can affect borrower's
credit
1. The target is alleged to be connected with criminal action(s) or criminal organization(s).
2. The target is engaged in business(es) or action(s) that result in negative attention from the media or general public
opition.
3. Negative information of the target is published by the government, municipality, or other agencies which have authority
over the target's particular business/projects (mandatory trigger applicable to borrowers).
*1 Definition
4. Initiation of litigation over SMBC’s claim to the target or anticipation of such action (mandatory trigger applicable to
of " Adverse
borrowers).
Information"
5. Any other negative information which indicates that the target is at risk to commit anti-social activities or has already
done so.-> All such negative information should be provided at supervisor's discretion.
(Additional definition in new obligor applications)
6. “Debt forgiveness" or "Loss on loan sales when borrower's grading is CRC-A or below", "Write off of debt" in the past.
7. Litigation against SMBC in the past.
(REF)2011/2/25 CMDINB #15
Target Parties
A
16
Know Your Customer- KYC Analysis
2) Section B&C: Others
Voluntary Check Sheet in obligor applications
Items
Check point
Section
Add Group registration in GCM after confirming any existent "same" "virtually same" "Affiliate" borrowers
Obligor Sheet
(REF) 2004/1/29 CDINB #8, 2008/2/15 CIPD #115 (Revision)
Voluntary Check Sheet in faciltiy applications
Commitment application shall be reported to PDAD when one of below (a) to (c) is applicable
Commitment Lines
(a) Multi-Currency, (b) total exp to THE CUSTOMER >=200MM (c) total exp to THE CUSTOMER >=100MM
& Sameday funding applicable.
B
Commitment transaction shall be reported to GAD Tokyo - COI Group for managing conflict of Interest if one of
below (a) to (d) is applicable.
Conflicts of Interest (a) Bilateral commitment transaction of $500mil or more, (b) Syndicated transaction which corresponds to all of
three criteria (1) our commitment is $500mil or more (2) our share is 25% or more (3) our bank plays a role as a
senior arranger, (c) One of multi-facility in M&A finance, (d) Fund will be clearly used for M&A purpose.
C
Results
Completed date
N.A.
N.A.
N.A.
(REF)2008/12/10 PDINB #120
Securities Acquired
for Loan
Securities acquired for loan substitutions shall be reported to PDINB.
N.A.
(REF)2004/9/1 PDINB #68
Country Credit Limit Country Credit Limit Inquiry is required before the submission of applications to the credit department.
(REF)2010/10/1 CMDINB #12
Social and Environment risk assessment is required if all of (a) to (d) are applicable
Social &
(a) New LOC application equivalent to $25mil or more, (b) If purpose of fund is new development, expansion of
Environmental Risk
physical project or asset, (c) Tenor: Over 1 year (Even though shorter than 1 year if it is bridge finance for
Assessment
Project Finance), (d) If sector of Project/Asset is Environmental Sensitive 22 Sector.
N.A.
N.A.
(REF)2010/9/28 EAD #1
16
Risk Assessment Analysis
FY2012 BIS-II Risk Weight Calc Sheet
Lending Branch
SUN ID
CUSTOMER
CATEGORY
BASIC INFORMATION
Facility Type
Commit / Uncommit
Adjusted Obligor Grade
Base Risk Weight
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
LGD
EAD
AMOUNT
Initial Credit Amount ($K)
Current Credit Amount ($K)
Outstanding ($K)
0
Undrawn Portion ($K)
0
0
0
0
0
Risk Asset
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
Risk Weight (%)
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
16