Time for a new approach to Treasury?

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Who we are:

Can the existing approach to your corporate treasury function be relied on to meet the needs of your business both today and tomorrow?

Our team of dedicated professionals advises organisations of all sizes and levels of complexity. We offer integrated solutions and a broad range of complementary skills in law, tax, debt, internal controls, information technology, accounting and risk management. What sets us apart is our strong expertise and real work experience, gained from numerous client projects in both Russian and international markets. We are committed to providing comprehensive support and working closely with you to achieve your strategic business objectives.

PwC’s Integrated Corporate Treasury & Commodities Practice can help you answer “yes” to all of these questions. Does your company have in place: A capable Treasury Team that is experienced in implementing changes that are essential for efficiently achieving your strategic corporate goals?

Robust IT systems and infrastructure capable of meeting the needs of your business at the right price?

Contacts Konstantin Suplatov Director Head of Treasury & Commodities Practice Tel.: +7 495 967 6106 Mobile: +7 905 543 0865 konstantin.suplatov@ru.pwc.com

Cutting-edge mechanisms for centralising and increasing return on your cash holdings?

A strategy for earning money from managing commodities risks?

Transparent reporting on your company’s treasury activity that is compliant with the latest accounting and regulatory requirements?

Time for a new approach to Treasury?

Well-controlled payment processes and liquidity forecasts?

Best practices for handling the impact of foreign exchange movements on your company’s business performance from a cash, economic and accounting point of view?

www.pwc.ru

Petr Vinogradov Director Finance consulting Tel.: +7 495 223 5004 Mobile: +7 903 961 2043 petr.vinogradov@ru.pwc.com

Alexander Prosviryakov Manager Treasury & Commodities Practice Tel.: +7 (495) 967 6000, ext. 2791 Mobile: +7 (925) 505 0552 alexander.prosviryakov@ru.pwc.com

Elena Ilyushina Manager Treasury & Commodities Practice Tel.: +7 495 967 6000, ext. 2597 Mobile: +7 903 745 3981 elena.ilyushina@ru.pwc.com

PwC Russia (www.pwc.ru) provides industry-focused assurance, tax, legal and advisory services. Over 2,600 professionals working in PwC offices in Moscow, St Petersburg, Ekaterinburg, Kazan, Novosibirsk, Rostov-on-Don, Krasnodar, Voronezh, Yuzhno- Sakhalinsk and Vladikavkaz share their thinking, experience and solutions to develop fresh perspectives and practical advice for our clients. The global network of PwC firms brings together more than 184,000 people in 157 countries. © 2014 PricewaterhouseCoopers Russia B.V. All rights reserved. PwC refers to PricewaterhouseCoopers Russia B.V. or, as the context requires, other member firms of PricewaterhouseCoopers International Limited, each of which is a separate legal entity. 0903

Integrated Corporate Treasury & Commodities Practice


Integrated Corporate Treasury & Commodities Solutions

You want to: Put in place a treasury framework that is aligned with your business needs

Our goal is to help you ensure that you’re in full control of your financial risks, and have the right amount of cash in the right place at the right time, and in the right currency and with the right counterparty.

Manage your operations and achieve an appropriate level of control with limited resources

Upgrade your treasury systems to meet the needs of your business

Treasury Design

IFRS

Governance & Controls S

Create Value & Manage Risks

Systems

FX Risk Management

Commodities Cash & Liquidity Management

Make FX risk management more effective and thus avoid surprises

Put your cash to work making money for you, not wasting it

Boost the profitability and resilience of your commodities business

Be the master of IFRS accounting for financial instruments, not its servant

What we can do for you: • Benchmark your treasury function against peers to recommend areas for improvement • Design and implement a target operating model for an upgraded Treasury Function that goes beyond basic processing tasks to making a value-added contribution toward reaching your strategic goals • Provide assurance that your governance and controls framework is designed appropriately and operating as intended • Reengineer and implement new processes and policies when needed

• Support the design and structure of your treasury function, helping you select and implement appropriate systems and processes suited to your corporate goals and growth ambitions • Recommend an advanced IT solution that gives you the information you need to make more informed decisions

Examples of benefits we've delivered for our clients • Centralisation of the Treasury Function helped cut costs while increasing efficiency and control over cash flows • Benchmarking of an advanced treasury function, against best industry practice, resulted in the development of over 50 enhancements

• Implementation of robust processes and controls for key risk areas (foreign currency risk, financing, banking, and forecasting) and hiring and training of experienced interims to plug the skills gap

• Designed and implemented over 40 Treasury and Cash Management Systems, including SAP, 1C, and specialised treasury management systems, resulting in significant reduction of manual processing and user-friendly management reporting

• Provide independent guidance and challenge to your FX risk management framework and operations

• Developed a turnaround plan for a company that had lost RUB 250 mln on its hedging strategy

• Help to identify FX exposures, develop a hedging strategy, select the right tools, and develop reporting in order to have a best-in-class FX risk management framework

• Implemented a hedging programme to manage the foreign currency risk inherent in a USD 1 bln capital investment

• Design and implement cash-pooling structures to reduce idle cash balances and excessive credit lines

• Set up a cash-pooling structure, leading to RUB 15 mln in annual savings

• Centralise the payment process from initiation to settlement, including setting up a payments factory • Optimise set-up of the liquidity forecasting process, including KPIs for measuring its effectiveness • Help in growing margins on commodities transactions in a risk-effective way • Develop and implement an operating model for commodities risk management and trading with clear responsibilities and effective performance metrics

• Payments and collections system with Straight Trough Processing implementation • Cash management efficiency improvements, resulting in RUB 40 mln in financial income versus pre-improvement income of RUB 2.5 mln • Set up a commodity risk management function that has added millions of euros to the gross margin by optimising commodity price risks on EUR 10 bln in purchases of over 10 different commodities

• Give you a clear understanding of accounting issues, so you can take pre-emptive action

• Advice on a dynamic hedging strategy that complies with IFRS standards

• Improve the clarity and transparency of reporting and measurement of treasury activities for investors, regulators and creditors

• Impact of new IFRS accounting standards on treasury activities understood and planned by management

• Implement hedge accounting to smooth out P&L volatility

• Providing clarifications to the client’s Board of Directors regarding differences between IFRS and management reporting


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