Misys Case Study

Case study
GDF Suez manages global risk
and treasury more effectively
“Misys FusionBanking
KTP was the perfect
fit.”
Elisabeth Vendeville
Global Project Manager
GDF Suez
Misys FusionBanking
The main priority for GDF Suez was to ensure they
had sufficiently robust financial systems and
processes in place to support communication and
growth, whilst both minimizing costs and
maintaining shareholder and regulatory confidence
Products
••Misys FusionBanking KTP
“We needed to put in place
a global solution to manage
cash positions resulting
from the recording of
financial flows, financial
transactions and cash pools;
as well as to follow the
management of risks
hedged by derivative
products. Misys
FusionBanking KTP was the
perfect fit.”
Elisabeth Vendeville
Global Project Manager
GDF Suez
2
Misys FusionBanking | GDF Suez
About GDF Suez
The business challenge
GDF Suez is the world’s largest
global utility company, with 218,350
employees in nearly 70 countries and a
turnover of EUR 84.5 billion in 2010. The
company was formed after a merger
between Gaz De France and the Suez
Company in July 2008. As part of
the merger process, they conducted
a review of their business critical
systems to ensure the appropriate
tools were in place to manage the
new organization and ensure that all
possible synergies would be achieved.
The merger between the two
companies had dramatically increased
transaction volumes, making their
treasury operations significantly more
complex. Small exception management
processes in existing tools had
become costly, with previously minor
exposures to risk becoming sizeable.
The challenge for GDF Suez was how
to effectively manage this increased
risk at both a regional and global level.
The main priority for GDF Suez was
to ensure they had sufficiently robust
financial systems and processes in
place to support communication
and growth, whilst both minimizing
costs and maintaining shareholder
and regulatory confidence.
As a result of the scale of GDF
Suez’s operations, the complexity
of their treasury function is similar
to that of a medium-sized bank. The
primary challenge for the treasurer
was determining how to empower
subsidiaries, while ensuring they had
enough transparency and control
to benefit from group synergies and
shared services. They needed an
efficient cash management system
that would support communication
between the center and the regions,
making sure that sufficient funds are
available in the right locations, at the
right time and in the right currency.
Most of all, they wanted to be sure that
money was not being borrowed from
the market if there were surpluses
in other parts of the company.
As part of a re-evaluation of GDF Suez’s
finance capabilities, the company
wanted to bring the treasury function
closer to the business. They wanted
to establish a full payment value
chain across the organization – from
the capture of payments, processing
through central treasury and on to
the swift network directly to the
bank. They also needed to ensure
they were fully IFRS compliant at
both a central and regional level.
The final requirement for GDF Suez
was to find a partner who understood
their business process and logic.
They wanted to form a partnership
with a supplier that had a strong
local presence and would be able to
advise them on business processes
as well as technical requirements.
GDF Suez was looking for a solution
that would ensure the solvency of
the group – one that could manage
all business workflows, FX risk and
debt. After evaluating a number
of systems they decided to invest
in the Misys corporate treasury
management system, based on
Misys FusionBanking KTP.
“Full straight-through processing
is now in place.”
Elisabeth Vendeville
Global Project Manager
GDF Suez
The solution
The results
GDF Suez chose Misys FusionBanking
KTP because of the breadth of
the offering, the flexibility and
robustness of the product and
because it is supported by a team
of specialists who instinctively
understand the challenges they face.
GDF Suez now benefits from a single
communication channel, as well as
a consolidated view of all subsidiary
activities for cash management
purposes. The treasury can monitor
activities centrally, creating reports
and services for the regions as
required. The company ensures it
gains maximum value from the system
with this service-based approach to
treasury operations. By increasing
visibility for subsidiaries, duplication
of data and unnecessary costs are
reduced, allowing the group to make
more informed and better decisions.
GDF Suez is using
FusionBanking KTP for:
••Cash Management – including
Treasury centralization, reconciliation,
cash pooling, netting
••Deal management – including
investment funding, debt
management, IR and FX Risk,
counterparty risk and swift messaging
••Regional co-ordination using
FusionBanking KTP Web – including,
cash management, funding/
investment, FX Risk and Reporting.
Elisabeth Vendeville, Global Project
Manager at GDF Suez, explained, “We
needed to put in place a global solution
to manage cash positions resulting
from the recording of financial flows,
financial transactions and cash pools;
as well as to follow the management of
risks hedged by derivative products.
Misys FusionBanking KTP was the
perfect fit. The solution also feeds our
accounting systems and facilitates
group reporting which eases
monthly closures.”
The group can now manage their total
risk position much more effectively
thanks to this increased visibility.
Because FusionBanking KTP is flexible
enough to reflect specific company
processes and workflows, the central
treasury function can delegate or
retain the rights to conduct specific
operations and responsibilities, as
required to meet company policies
and business unit capabilities.
The company is fully IFRS compliant
and can prove to both auditors and
shareholders that the hedging of its
operational cash flows is efficient.
Vendeville added, “The group’s IFRS
postings are automatically produced
and are available through Misys
FusionBanking KTP. Full straightthrough processing is now in place
ensuring that once a deal is initiated
in the front office, all processes are
automated right through to generation
of local and IFRS GAAPS. This allows
us to avoid any redundant captures.”
Today, GDF Suez has better control
of the payment value chain for the
group. They now have the tools in
place to independently manage
and initiate payments with banks
and partners at a variety of levels.
This allows the business to achieve
a greater degree of accuracy and
efficiency in the way it manages the
risks and needs of the organization.
In addition, GDF Suez experienced
the following benefits:
••Reduced operational risks
••Reduced costs
••System synergies
••Improved reporting
••Better management of capital to
ensure the company remains solvent
••Regulatory compliance
Elisabeth Vendeville concluded,
“The whole group’s reporting
will be mapped onto the system
with valuation calculations, IFRS
effectiveness tests and postings as
well as the management of remote
subsidiaries input, all done through
Misys FusionBanking KTP Web”.
Conclusion
Working together with Misys, GDF
Suez has used the implementation of
FusionBanking KTP as an opportunity
to drive efficiencies and growth.
A combination of market-leading
technology and shared best practice
has allowed GDF Suez to focus on
the areas of its business that provide
a competitive difference – ensuring
their treasury is ready to support
business and finance requirements in
the most effective means possible.
Misys FusionBanking | GDF Suez
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About Misys
Misys is at the forefront of the financial software industry, providing the broadest portfolio of banking,
capital markets, investment management and risk solutions available on the market. With more than
2,000 customers in 130 countries our team of domain experts, combined with our partner eco-system,
have an unparalleled ability to address industry requirements at both a global and local level. We connect
systems, collect data and create intelligent information to drive smarter business decisions. To learn
more about how our Fusion software portfolio can deliver a holistic view of your operations, and help
you to solve your most complex challenges, please visit misys.com and follow us @MisysFS on Twitter.
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