Slide 1: Supplier Finance Presentation
Supplier Finance Presentation Copyright © 2007 Citibank, N.A. All rights reserved. CITI and Arc Design is a registered service mark of Citigroup Inc. or its affiliates and is used and registered throughout the world.
Slide 2: Citi Supplier Finance Solution
Citi Supplier Finance Solution 1. What, Why & How ……………………………………………….…………………....3 2. The Concept .……………………………………………………………………….....4 3. Process Flow …………………………………………………………………………..5 4. Value Proposition for Suppliers ..…………………………………………………….6 5. How it Works …………………………………………………………………………..7 6. Discount
Slide 3: Citi Supplier Finance: What, Why, How
Citi Supplier Finance Partnership between the Buyer and the Bank allowing pre-agreed What suppliers non recourse sale of receivables to the Bank at competitive conditions Provides suppliers with an opportunity to accelerate cash flow, increase Why liquidity, optimize financing cost and improve visib
Slide 4: The Concept
The Concept Partnership between the Buyer and The Supplier finance offering is Citi to allow pre-agreed suppliers to structured as “reverse factoring” enter a program to sell receivables to Supplier gets short term funding; Citi Citi offers a discount to the supplier – without recourse – at attr
Slide 5: Process Flow
Process Flow Supplier Payment Service Supplier ships goods and The Buyer approves The Buyer instructs Citi to presents invoices to the Supplier’s invoice for electronically pay the Buyer as per their existing payment using existing Supplier on a future due process. approval process. date. 1 2 3 The
Slide 6: Value Proposition for Suppliers
Value Proposition for Suppliers Provides Early Payment option Cost-Saving Tool Allows conversion of accounts receivable to cash through Reduce your financing and attractively priced, non-recourse sale cash applications costs Frees up credit lines to capture additional business with lenders Pay
Slide 7: Early Payment Option – How it Works
Early Payment Option – How it Works Supplier Payment 1. Receive Notification full remittance detail for each payment 2. Exercise option to receive funds early Automated Financing Option Optional Financing Option Funds are automatically paid into your bank Choose when you want to discount or simp
Slide 8: Sample Discount Charge Calculation
Sample Discount Charge Calculation Payment Days Left in Term Amount X Annual Discount Rate X 360 EUR ( 90 – 5 ) Days by Buyer to 1,000,000 X [4.70 % + 1.00% ] X 360 accept the LIBOR SPREAD invoice Benchmark Rate* Citigroup Rate 1.35% Discount Charge on Euro = EUR 13,458 1,000,000 Payment On EUR 1,00
Slide 9: Sample Supplier Benefits
Sample Supplier Benefits Potential Extended Current Terms Terms Citi Proposal Sales (yearly total) €1,000,000 €1,000,000 €1,000,000 Days to Accept Invoice – – 5 Days for Financing 60 90 85 Suppliers' Borrowing Rate 8.90% 8.90% 8.90% (EURIBOR + 4.2%) Citi Discount rate – – 5.70% (EURIBOR + 1%) Suppli
Slide 10: CitiConnect Supplier Functionality Overview
CitiConnect Supplier Functionality Overview
Slide 11: Table of Contents
Table of Contents 1. Internet Login Screen...………………………….…………………………………12 2. Auto-Financing Option ……………………………………………………………..13 3. Optional Financing Option………………………………………………………….15 4. Reports …………………………………...………………………………………….16 5. Signing Up for the Program …………………………………….…………………17 6. Summary………………………
Slide 12: Login Screen
Login Screen Access CitiConnect through the following URL : http://www.ceemea.citibank.com/citiconnect/europe/ Supplier Login as Super user to see the financing details Password is Case Sensitive 12
Slide 13: List of Transactions Financed (Auto-financing)
List of Transactions Financed (Auto-financing) Click on the hyper link to see the financing details 13
Slide 14: Remittance Sample
Remittance Sample Accepted Invoice Amount LIBOR Rate Applied Citi Pricing Net Amount Paid Supplier Account Credited 14
Slide 15: 'Optional Financing' Option
‘Optional Financing’ Option Initiate Login as Seller and Click on the link to initiate collection Discounting instruction Seller must select the collection option, if seller 15 requires financing
Slide 16: Report Generation
Report Generation Allows the generation of reports from all available fields Allows the format of the report to be selected. This can be Excel or a pipe (|) delimited file. To Save report layout – Will prompt customer to give the file name Allows the online generation of the report 16
Slide 17: Signing Up for the Program
Signing Up for the Program Contact your Buyer representative Download documents from the website: supplierfinance.transactionservices.citigroup.com Send the signed documents to the following address: Citibank International plc European Trade Implementations 3rd Floor, 4 Harbour Exchange London
Slide 18: Summary
Summary Benefits for the Buyer's Suppliers : Receive cash early (net of financing cost) Easy visibility of all accepted invoices by the Buyer leading to predictable cashflow Off balance sheet treatment No change to your banking arrangements No change to your invoicing set up with the Buyer
Slide 19: Anti-Tying Disclosure
Anti-Tying Disclosure Citi Corporate and Investment Banking ("CIB") maintains a policy of strict compliance to the anti-tying provisions of the Bank Holding Company Act of 1956, as amended, and the regulations issued by the Federal Reserve Board implementing the anti-tying rules (collectively, the "
Slide 20: (c) 2007 Citibank N.A. All rights reserved
(c) 2007 Citibank N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.