SCFS23 Day 2 - Full Day Slides

9th Annual Supply Chain Finance Summit
Chairperson’s opening remarks
Peter Mulroy, Secretary-General, FCI

Keynote presentation:
The impact of macro-economic issues on the

global economy
Luis A. Puch, Professor of Economics, Universidad Complutense de

Madrid; Research Director, Instituto Complutense de Análisis
Económico (ICAE)
Global trends and the macroeconomy
Luis A. Puch (ICAE UCM)

@lpuchg nadaesgratis.es
Supply Chain Finance Summit 2023

Cecabank, Madrid
Luis A. Puch (ICAE, UCM) Macroeconomic issues & the Global Economy 1 / 10
Outline of the talk
1 Global Trends
2 The Big Inflation
3 Major threats
4 ..and among them, Climate Change and the Energy Transition
5 Concluding Remarks
Global Trends Inflation Major threats Climate Change Concluding
1. Global Trends
Global Economic Growth: World real GDP, 1960-2021
Average annual growth at 3.5%

(but, 1975-2007 at 3.2%)
world population growth at
1.6% per year (as 1975-07)
Source: World Bank’s WDI

(but, 1975-2007 at 3.2%)
1.6% per year (as 1975-07)

(but, 1975-2007 at 3.2%)
1.6% per year (as 1975-07)
However,
Real per capita growth,
2008-2021 ' 2.5% - 1.2%
(Compared with nearly 2%
before the Great Recession)
So yes, a slowdown Source: World Bank’s WDI

(income ×2 in 55 vs 35 years)
Slowbalization (The Economist, 2019), not De-Globalization
World Trade over World GDP, 1970-2021
1985-2007: Average annual

growth of global exports nearly
at 10% (while GDP nom < 7%).
Slowbalization since the

Great Recession.
China (also others): central

role in exports’ growth
(from > 16% in 1995-07,
to < 5% after the GR).
The drivers of globalization (cf. Antras 2020)
The ICT revolution

Adoption of Information and Communication Technologies to foster trade.
A slowdown in recent years (but Blockchain, Robots, 3D printing,...).
Policy and Politics

Multilateral and regional trade liberalization accelerated.
Remarkable increase in capitalist way of doing things (particularly East Asia).
The low cost of capital

Low interest rates facilitated the formation of Global Value Chains (GVCs).
Uncertainty and higher interest rates may deter investments abroad.
The cost of capital
Source: Guinea, Ruiz, Pérez & Puch (2022): FRED, annual averages of monthly 10-year yield on T/Gov’t bonds.
The drivers of globalization (cf. Antras 2020)

The ICT revolution
Adoption of Information and Communication Technologies to foster trade.
A slowdown in recent years (but Blockchain, Robots, 3D printing,...).
Policy and Politics

Multilateral and regional trade liberalization accelerated.
Remarkable increase in capitalist way of doing things (particularly East Asia).
A low cost of capital

Low interest rates facilitated the formation of Global Value Chains (GVCs).
Uncertainty and higher interest rates may deter investments abroad.
Important to figure out how the current scenario may affect these factors.
All of them share in common → (further?) inflation.
2. The Big Inflation
The Big Inflation

What is new
Source: Guinea, Ruiz, Pérez & Puch (2022): FRED, quarterly CPIAUC & HICP.
The Big Inflation
Two narratives
A sequence of large shocks: pandemic, reopening, war, energy,...
(ultra-loose) monetary policy (and QE), plus the fiscal expansion (Covid).
In any case, once shocks occurred move away from easing.
Two teams
Team Temporary: so the risk is doing too much.
Team big and persistent inflation: so it’s being done too little.
Pending: Anchoring inflation expectations to target, monetary policy credible at

delivering target, and low (not zero, though) interest rates. And still:
3. Major threats
Major threats (cf. World Econ Forum 2022 –wait for WEF 2023)
War
(I put it crude, but) Read geopolitical, geoeconomic,... conflict.
Very expensive to help Ukraine resist.
Pandemic
Read health risk, infectious diseases,...
Inequality.
Read social cohesion, migration, poverty,...
Climate Change.
Read extreme weather, climate action failure, natural resources crisis,...
Let me briefly refer to this (key to GVCs environmental effects):
4. A focus on Climate Change and the Energy Transition
All data from the IEA Energy Balances & Emissions Database, 2020
GDP: billion USD (PPPs); Population: millions; Energy use: million TOEs;
Carbon Emissions flow: thousands of tones of CO2.
CO2 Emissions and GDP per capita Worldwide, in logs, 1970-2019
colors ⇒ high/middle/low
income countries (World Bank).
The Bad
linear slope (elasticity) > 1

“for the pool.”
The Good
Heterogeneity within
income groups (slopes < 1),
See Dı́az, Marrero & Puch (2016) updated; Also 2019.
Source: IEA & PWT data
...and the Ugly

Transition what?
The goal of the European Green Deal is to be climate-neutral by 2050.

Target: Reducing, at least, 55% of 1990 emissions by 2030. Context to this:
Share of EU 2019 CO2 Annual rates of CO2 reductions (%)

CO2 2019 over 2030 target 2020-30 1990-2019 2019-20
EU 1.51 -4.04 -0.84 -13.14
France 10.18 1.52 -4.10 -0.71 -16.01

Germany 23.21 1.33 -2.84 -1.34 -11.24
Italy 11.25 1.58 -4.47 -0.69 -13.06
Spain 9.23 2.28 -7.92 0.81 -18.68
CO2 Emissions Levels 2019 vs 2030 Target. Source: Own elaboration & BP Stats Review 2021
Can we achieve 2030 target without GDP falling? The big question!
Concluding remarks
There are other threats: ageing, debt crisis,...
The different threats require specific policies, and beyond (briefly) described
consensus monetary and fiscal policies.
Moreover, the support of supply policies: competition, industrial,
macro-finance,... is needed.
So quoting the great Yogi Berra (NY Yankees baseball star):

“The future ain’t what it used to be”
...maybe better ask a political/int’nal relations scientist or a sociologist.
References
The Economist, 2019. “Slowbalisation: The steam has gone out of

globalisation.” Jan 24th, 34-43.
Antras (2020). De-Globalisation? Global Value Chains in the

Post-COVID-19 Age. Mimeo.
Guinea, Ruiz, Pérez and Puch (2022). Time-varying inflation target or

time-varying Taylor rule parameters? Mimeo
Dı́az, Marrero, Puch and Rodrı́guez-López (2019). Economic Growth, Energy

Intensity and the Energy Mix. Energy Economics 81, 1056-1077.
Panel session:
Delivering a sustainable and transparent next level of

financing with deep tier financing
Moderator:
Federico Travella, Founder & Executive Chairman, NoviCap
Panellists:
Raja Debnath, Co-Founder & CEO, Veefin Solutions
Sunil Mascarenhas, Supply Chain Finance Specialist, Asian Development Bank
Paolo Monaco, Director, Financial Products SME Finance & Development, EBRD
Bart Ras, Managing Director, Working Capital Finance Origination, Pemberton Capital Advisors
“By far, the greatest danger of
Artificial Intelligence is that
people conclude too early that
they understand it.”
Spike Jonze, American filmmaker (Her, etc.)
1
How about we invite an AI
as panelist?
In the end… a recurrent topic at BCR conferences has been
how novel technologies can be applied to the receivables,
trade, and supply chain finance industry
2
What is deep-tier financing (“DTF”)?
3
What are the main drivers of DTF?
4
Is the need for DTF caused by
incumbent banks being ineffective?
5
What are a few DTF success stories out
there?
6
Is DTF only an opportunity in Emerging
Markets or also in developed world?
7
How do we measure success in DTF
programs?
8
What do regulators think about DTF?
9
How do lenders in DTF programs obtain
comfort around the risks?
10
Development banks vs asset managers?
11
Asset managers are simply greedier?
12
What’s the billion $ opportunity in DTF?
13
Down the rabbit hole…
14
Generate me a Francisco
Goya-inspired digital art
about supply chain finance
15
16
17
18
19
Case study:
A disruptive approach to SCF: How a primary bank,

an innovative fintech and an ESG platform partnered
to enhance SCF value through technology
Pietro Campagna, Global Head of Working Capital Solutions, UniCredit
Francesco Fabbri, Head of Vendor Management and Development, Eni
Enrico Viganò, CEO & Founder, FinDynamic

Madrid, 25th January 2022
A disruptive approach to Supply Chain Finance:

how an ESG Platform, a Primary Bank and an innovative Fintech
partnered to enhance SCF value through technology
FinDynamic
A Supply Chain Finance platform offered in partnership with leading banks and ESG providers
FINDYNAMIC DEVELOPS SUPPLY CHAIN FINANCE PLATFORMS …

ENRICO VIGANÒ
FinDynamic is a leading Fintech that develops and commercialize, in
partnership with banks, a Supply Chain Finance technology in Europe (Italy,
Germany, Spain, …)
CEO & Founder … OFFERING, IN PARTNERSHIP WITH BANKS, A STATE OF THE ART TECH ...
FinDynamic offers it’s technology to Banks and Corporates in white

label. All the services such as Onboarding, Support, Reporting &
Monitoring are directly offered by FinDynamic’s personnel
Professional with extensive experience in Strategic Consulting, Corporate Finance
and Private Equity. Mr. Viganò has been working for leading companies as Bain, GE
and KPMG, ranging from strategic planning to mergers and acquisitions, across
… THAT ALOWS THE CLIENT TO SUPPORT THE ENTIRE SUPPLIER BASE
various sectors and industries. After more than 15 years in the investment and
strategic consulting industry, in 2016 Mr. Viganò created FinDynamic.
Sustainability is KEY in Supply Chain Finance and a client, through
c Findynamic’s platform, can support the entire supplier base granting
access to preferred Credit conditions
2
FinDynamic developed, in partnership with key leading banks, a unique value proposition
That alongside a string sustainability (ESG) focus further enhanced it’s leadership
A UNIQUE VALUE PROPOSITION AND A FOCUS ON ESG … … ENABLED FINDYNAMIC TO BECOME MARKET LEADER
FINDYNAMIC INTEGRATES CLIENT’S ERP…

Developed proprietary integrations modules (>400) that
Worldwide SCF Leader Player
guarantees clients and their banking partners a plug in integration
Second largest Italian Player
… OFFERING A MULTI BANK & MULTI PRODUCT PLATFORM…

Findynamic is integrated with banks core IT and allows Clients to >90%
manage complex multi bank SCF program through a single platform
… THAT ALLOWS TO BOOST SUSTAINABILITY

FinDynamic integrates leading ESG score (Open- es) providers and enables
clients to support their entire supplier base while committing to ESG
ITALIAN MARKET
Category 1
SHARE1
FINDYNAMIC DEVELOPS ITS TECHNOLOGY IN PARTNERSHIP WITH THE BEST EURPOEAN BANKS
1. Market share calculated on the basis of public information

3
FinDynamic, through Open-es, is adding ESG scoring to it’s Supply Chain Finance platform
enabling both it’s banking partners and corporate clients to sustain a larger supplier base
AN INTEGRETED END-TO-END PLATFORM … … OFFERING SCF PRODUCTS
INTEGRATION WITH FINDYNAMIC IS A MODULAR ECOSYSTEM…

ESG PLATFORM
FinDynamic offer a range of innovative SCF solutions
SUPPLIER SUPPLIER SUPPLIER RECEIVABLE enabling its client to access to an e-2-e integrated platform
X Y Z
FINANCING
… INTEGRATING ESG SCORING PROVIDER …

INTEGRATION
CONFIRMING
WITH ERP
FinDynamic integrates ESG scoring provider, clients
CLIENT monitors the performance of its own upstream value chain
OTHER SCF
SOLUTIONS
… AND BAKING IT SYSTEMS
FinDynamic integrates the core Factoring & Confirming

INTEGRATION WITH systems enabling clients to maximize their SCF programs
BANK IT SYSTEM
A DISRUPTIVE TECHNOLOGICAL APPROACH TO SCF TO ENHANCE VALUE FOR ALL STAKEHOLDERS
4
Francesco Fabbri
Open-es

ESG PLATFORM
SUPPLIER SUPPLIER SUPPLIER RECEIVABLE enabling its client to access to an e-2-e integrated platoform
X Y Z
FINANCING
Francesco Fabbri will

CONFIRMING present why a ESG
INTEGRATION
WITH ERP
platform partnered FinDynamic integrates ESG scoring provider, clients
CLIENT with FinDynamic to monitors the performance of its own upstream value chain
OTHER SCF boost sustainability

SOLUTIONS

BANK IT SYSTEM
In the next slides our partners show you how a collaborative model based on a technology platform can generate a competitive advantage
5
Pietro Campagna
UniCredit

ESG PLATFORM
SUPPLIER SUPPLIER SUPPLIER RECEIVABLE enabling its client to access to an e-2-e integrated platoform
X Y Z
FINANCING
Pietro Campagna will

CONFIRMING present why UniCredit
INTEGRATION
WITH ERP
chose FinDynamic as a FinDynamic integrates ESG scoring provider, clients
CLIENT monitors the performance of its own upstream value chain

technology provider for
OTHER SCF Supply Chain Finance
SOLUTIONS

BANK IT SYSTEM
In the next slides our partners show you how a collaborative model based on a technology platform can generate a competitive advantage
6
Open-es
The platform open to everyone for the sustainable development of companies
OPEN-ES IS A SYSTEM INITIATIVE…

FRANCESCO FABBRI
Launched by ENI, BCG & Google, Open-es works with > 10K companies, in
86 countries and across 66 sectors, to support development and growth on
the dimensions of sustainability
Head of Vendor Development
… CONNECTING COMPANIES IN A COLLABORATIVE ECOSYSTEM …

Part of Open-es Development Hub
An innovative tool open to all the actors engaged in the challenge of the
Management energy transition: Value Chain Leader, Scientific Partners, ESG Ecosystem,
SCF providers, etc.
Francesco is Head of Vendor Management & Development at Eni and part of
the Open-es team focusing on initiatives and tools to support the sustainable
performance development of SMEs. Francesco has a master degree in Law and
…WHERE SUPPLY CHAIN FINANCE CAN PLAY A LEADING ROLE
Business Administration and in 2018 achieved an Executive Master in Business
and Administration ad SDA Bocconi. After a pluriannual experience in
Open-es and FinDynamic entered into a partnership agreement to
consultancy firms Francesco joined Eni in 2015 and since 2019 is part of the c offer innovative Supply Chain Finance services to its ecosystem’s
procurement department where he delivered initiatives to support Eni’s vendors partners
energy transition and financial resilience.
7
An open alliance for supply chain sustainability
A simple, flexible solution suitable for all companies
Open-es is an alliance of companies keen to join forces. A collaborative and non-competitive environment
leading towards a common path of sustainability performances improvement
Spreading the sustainability principles along the Supply Chain is a key goal to achive
ENGAGE MEASURE IMPROVE

o Value chain leader’s targets sharing with o Measurement of suppliers’ sustainability o Services to support suppliers in the
the Supply Chain performances and disclosure improvement path
o Workshops to increase the awareness o ESG profile continuous monitoring along o Basket Bond – Sustainable Energy
about ESG topics qualification and tender processes
8
Open-es is an innovative platform based on internationally recognized ESG metrics
Connecting companies, people and organizations in a collaborative ecosystem …
WHAT OPEN ES IS … …HOW ITS OPEN ECOSYSTEM WORKS
OPEN ALLIANCE among industrial and financial systems to support

companies in a sustainable development path
SUPPLY CHAIN Suppliers Clients
positioning positioning FINANCIAL
LEADERS
INSTITUTIONS
EASILY ACCESSIBLE & FREE OF CHARGE for SMEs of any sectors and
c focused on development and improvement through a flexible path
COMMUNITY to collaborate with stakeholders and find sustainable

c business opportunities Rating and other
assessments useful for the
Useful data for services
SINGLE COMPANIES company, banks and
supply chain leaders
PARTNERS offering
+
SUPPLY CHAIN LEADERS
SERVICE
ESG PROFILE
RATING PROVIDERS
PROVIDERS
Services for sustainable Useful data for
development services
offering
9
… Open-es & FinDynamic partner to build a successful model
That aims to support buyers in implementing ESG and Suppliers to access credit …
INTEGRATING ESG IN SUPPLY CHAIN FINANCE … ENABLES BUYERS TO BUILD A REWARDING … THAT PROVIDES AN EASIER
OFFERING ... SYSTEM FOR SUPPLIERS … ACCESS TO CREDIT
Corporate & Banks institutions are driving ESG Large Corporates leverage supply chain programs by Financial institutions provide more attractive
performance while offering supplier innovative ESG- rewarding suppliers that meet ESG performance financing terms in order to incentivize suppliers to
linked products standards improve on ESG.
10
… Open-es & FinDynamic to integrate ESG scoring and banks
Allowing buyers to monitor and manage the sustainability of the entire supply chain
INTEGRATION WITH OPEN-ES: ESG SCORING & PERFORMANCE DEVELOPMENT …

ESG PLATFORM
Open-es allows FinDynamic offer to its client an integrated
SUPPLIER SUPPLIER SUPPLIER RECEIVABLE Supply Chain Finance platform ESG linked
X Y Z
FINANCING
… INTEGRATED THORUGH FINDYNAMIC IN THE CLIENT’S ERP …

INTEGRATION
CONFIRMING
WITH ERP
FinDynamic native ERP’s integration enables a client to
CLIENT import and leverage ESG data in SCF programs
OTHER SCF
SOLUTIONS
… AND WITH THE CORE BANKING IT SYSTEM
Banks & Buyers can reward suppliers based on their ESG

INTEGRATION WITH performance boosting their development plans
BANK IT SYSTEM
A COLLABORATIVE ECOSYSTEM AMONG ESG PLATFORM, SCF TECHNOLOGY AND BANKS AIMES TO SPREAD SUSTAINABILITY
11
UniCredit
A simple successful pan-European commercial bank unlocking people, businesses and communities potential across EU
UNICREDIT IS A PAN-EUROPEAN COMMERCIAL BANK …

PIETRO CAMPAGNA
15+ million customer, 13 countries and four main strategic
geographies: Italy, Germany, Central and Eastern Europe
Global Head of Working … WITH STRONG FOCUS ON DIGITIZATION AND SUSTAINABILITY…

Capital Solutions
Digitization and commitment to ESG are key enablers for
UniCredit, offering technologically advanced solutions to
guarantee excellent services
Mr. Campagna is accountable - since 2021 - for Working Capital Solutions across
…OFFERING INNOVATIVE WORKING CAPITAL SOLUTIONS
UniCredit Group, after being in charge of Transaction Banking activities (Trade
Finance, Cash Management and Working Capital) in Italy for the previous 3 years.
Annual turnover > EUR 120 bn, involving > 5,000 clients and > 120,000
In his “previous” professional life Mr. Campagna spent many years in HR - covering debtors globally served by product sales in 18 countries
several senior roles across different geographies
Named #1 Supply Chain Finance Provider in CEE in 2022 by Global
Finance and receiving the 2022 TMI Award for Best Fintech Collaboration
12
UniCredit has a collaborative approach with Fintechs
In cooperation with FinDynamic UniCredit aims to provide innovative Working Capital solutions to clients
FROM A TRADITIONAL APPROACH …
Bank
… TO A NEW ECOSYSTEM
Bank Fintech
13
UniCredit has a collaborative approach with Fintechs
In cooperation with FinDynamic UniCredit aims to provide innovative Working Capital solutions to clients
FROM A TRADITIONAL APPROACH …
Bank
FINDYNAMIC HAS A VERTICAL KNOW- ... TO MEET CLIENT’S STRATEGIC GOALS
HOW ON SCF… … TO A NEW ECOSYSTEM AND TO STRONG CUSTOMER LOYALTY
ERP integration is one core feature of the

UniCredit has upgraded its market position,
FinDynamic solution, which enables UniCredit
gaining market share in SCF
to complete its SCF offering
…GIVING UNICREDIT A BEST-IN-CLASS TECHNOLOGY …
UniCredit was a first-mover in the market with a

multi-product SCF platform including the
functionality of ERP integration for clients
14
UniCredit & FinDynamic have launched a step-by-step collaboration
With FinDynamic UniCredit strengthened its leadership role in the Supply Chain Finance market
TO SATISFY CLIENT’S NEEDS…. …A STEP-BY-STEP COLLABORATION WITH FINDYNAMIC
Offering to the market a range of turn-key SCF Services

2018: COMMERCIAL AGREMENT FOR A PILOT ON SELCTED “LARGE” BUYERS
(Integration, digital on-boarding, support, …)
UniCredit started to offer a new product (Dynamic Discounting) through the

technology of Findynamic to its clients.
Complementing traditional SCF products with an end2end technology 2019: STRENGTHEN THE PARTNERSHIP BY ENTERING IN FINDYNAMIC’S CAPITAL STRUCTURE
(from client’s ERP to banking Confirming core system)

UniCredit becoming a FinDynamic shareholder.
2021 PILOT CLOSED SUCCESFULLY AND AGREEMENT TO FULLY EXPLOIT THE COLLABORATION
UniCredit expanding product reach with the different entities of the group leveraging
Providing a platform ensuring straightforward usability and low
on FinDynamic partnership.
implementation effort
15
…thanks to this collaboration ecosystem
UniCredit with a complemented service offering boosting competitiveness within Working Capital solutions
THANKS TO AN EVOLVED ECOSYSTEM … … A CONTINUOS GROWTH OF CLIENTS AND OPPORTUNITY OF CROSS SELL
(UniCredit / FinDynamic clients –base 100%)
> 20 x
100%
75%
50%
25%
-
2019 2020 2021 2022
Starting from a commercial agreement selling a unique product …..

…to sign a strategic partnership and offering a multi-product platform
BUNDLE PRODUCT
16
…FinDynamic technology which integrated Open-es as ESG platform
Enabling UniCredit to have a competitive advantage in Supply Chain Finance
INTEGRATION WITH FINDYNAMIC INTEGRATE CLIENT’S ERP …

ESG PLATFORM
The ERP integration allows to automatize accounting /
SUPPLIER SUPPLIER SUPPLIER RECEIVABLE administrative tasks for the client and the bank
X Y Z
FINANCING
…UNICREDIT BOOSTS SCF VOLUME …

INTEGRATION
CONFIRMING
WITH ERP
Client, having simplified processes, prioritizes UniCredit's
CLIENT Confirming platform
OTHER SCF
SOLUTIONS
… CLIENT ACCESS TO TURNKEY SCF SERVICES
FinDynamic assists client & bank from the integration to

INTEGRATION WITH operational support (on-boarding, customer care, …)
BANK IT SYSTEM CLIENT
TECHNOLOGY HAS ALLOWED US TO ACHIEVE BUSINESS SCALABILITY: THE ERPS INTEGRATION IS A DIRECT LINK WITH OUR CLIENTS AND PROVIDES COMPETITIVE ADVANTAGE
17
UniCredit leveraging on differentiating Supply Chain Finance technology
Supporting its clients to exploit the full value of digital tech in working capital management
A DIFFERENTIATING TECHNOLOGY … … INTEGRAGTED WITH CLIENTS’ ERP … … TO MANAGE THE ENTIRE SUPPLY CHAIN
Boosting product and service offering with Leveraging on state-of-art technology and Offering one multi-products platform to
differentiating technology in the SCF services enabling ERP integration manage the full spectrum of SCF related needs
THE FINDYNAMIC TECHNOLOGY AND THE TURN-KEY SERVICES WHICH INCLUDE ESG ARE A KEY COMPETITIVE ADVANTAGE IN THE SCF MARKET
18
Business Case: a FinDynamic’s client to optimize its SCF Programs
Introduced ESG rewards incentivizing sustainability across all supplier base BUSINESS CASE
AN INDUSTRIAL CLIENT INCRESASED SUPPORT TO SUPPLY CHAIN …

A leading industrial player strategically increased it’s support, through
confirming, to suppliers by increasing the number of involved banks
Findynamic allowed a smooth integration & onboarding for banks and suppliers
… THROUGH A TURN KEY ESG INTEGRATED TECHNOLOGY …
FinDynamic platform and ESG scoring offered to all suppliers allowing

the client to boost sustainability across the entire supply chain
FinDynamic assisted suppliers through ESG scoring assessment
… ALLOWING SUPPLIERS TO ACCESS PREFERRED CREDIT CONDITIONS
The Client, through FinDynamic, enables Suppliers to access best in

class ESG scoring systems and leading financial institutions
Banks offer preferred credit conditions to incentivize sustainability
19
Q&A
FRANCESCO FABBRI PIETRO CAMPAGNA ENRICO VIGANÒ

Head of Vendor Global Head of Working Capital CEO &
Development Solutions Founder
20
FinDynamic S.L.
Plaza Calle Serrano 19
Madrid
info@findynamic.com
www.findynamic.com
Síguenos en
Coffee Break
Next session starts 11:30 CET

Bankinter case study:
How can a specialised software boost SCF

operations efficiency
Daniel Bielsa, General Manager, Spain and LATAM, CODIX Group
Tatiana McGrath, International Business Manager, Spain and

Portugal, Bankinter
How can a specialised software
boost SCF operations efficiency
9th Annual Supply Chain Finance Summit

25 January 2023, Madrid
Platform integration in the bank- A rich tools box
Internal Application
CRM BPM
International Invoicing
Document Аccounting
Management
B.I. Web portal

Interfaces &
APIs Mobile app
Alternatives on the Supply Chain Finance management in a bank
Client Supplier Client Supplier Client Supplier
Platform
integrated
Bank Platform on the
bank
P.O. Inventory
Sales Collection
Inventory
Average collection period
rotation
Average payment period Cash flow

SCF Functional cartography
End-to-End of Supply Chain Finance
Factoring
Confirming Standard
Forfaiting
Confirming Early Payment
Invoice discounting
Confirming guaranteed
Trade Finance (Export)
Inventory financing
SCF 360° operations coverage, aimed at raising alerts & warnings
Credit agencies
Front office Middle office (D&B, Equifax,
Buyer/supplier Contract Graydon…)
onboarding management
Collateral uploads Scoring
Funding request Funding mgt
Accounts access Client/supp. acc.mgt Tasks,
Alerts,
BPM
to users
Back office
Ptf management
Risk management
Cash application
Collection/Credit Ins. Banks, Co-factors FCI, Platforms,
Credit Insurers, Lawyers …
Working capital solutions. Monetizing supply chain. .
Comprehensive 01 02
supply chain Multicurrency Multiproduct
management
04 03
On-Boarding Tecnology
Cash Conversion Cycle
PMC CRE PMP Ciclo Conversión

Efectivo
Periodo Medio de Ciclo de rotación de Periodo medio de Cash Coversion
Cobro / Average existencias / Stock Cobro / Average Cycle
collection period Turn Cycle payment period
74 77.5
58 72 64.4 68.4
70 52
56
68 51
54 50
66
49 1
52 64
48
62 2012 2016 2020
50 47
60 46
48
58 45
46 44
56
44 54 43
2012 2016 2020 2012 2016 2020 2012 2016 2020
Source: JP Working Capital Index 2021

Spanish trade balance by region
Imp: 54%
Pmp: 59 días SCF

Confirming
Standard
Imp: 22,7%
Imp: 8,3% Pmp: 73 días
Pmp: 51 días
SCF
Confirming
Early Payment
Imp:4,9%
Pmp: 75 días
SCF
Guaranteed
Confirming
Source: http://www.comercio.Gob.es. Informe mensual comercio exterior. January 2022

Thank you.
“En el futuro, la competencia no se dará de empresa a

empresa, sino más bien de cadena de suministros a
cadena de suministros”.
Michael Porter
Panel Session:
Managing an SCF programme in 2023 and beyond
Moderator:
Mark Mandula, Senior Vice President, United Capital Funding
Panellists:
Karel Krejčí, Treasury & Working Capital Global Lead, Accenture
Claudia Perri, Regional Commercial Director, Southern Europe, DACH, Czech Republic
and MENA, Lendscape
Anil Walia, EMEA Supply Chain Finance – Payables, Deutsche Bank
Enrico Viganò, CEO & Founder, FinDynamic
© Mark S. Mandula, 2023
© Mark S. Mandula, 2023 2
4 Areas of Discussion
1. Where is the program now and where is it
heading against original objectives?
2. What are some plans to manage and mitigate
risks raising by the global supply chain crisis?
3. What we look for in successful SCF programs?
4. What is the impact for corporates and suppliers
on their liquidity when financing stops?
Where is the program
now and where is it
heading against original
objectives?
What are some plans to
manage and mitigate risks
raising by the global
supply chain crisis?
What should we look
for in successful SCF
programs?
What is the impact for
corporates and suppliers
on their liquidity when
financing stops?
Bonus Round!
What is the biggest challenge
for your firm today? Greatest
opportunity? Greatest fear?
Advice?
What is the
biggest challenge
for your firm
today?
Greatest
opportunity?

Greatest fear?
Advice?
There are only two ways
“
to live your life. One is as

though nothing is a
miracle. The other is as
though everything is a
miracle.” – Einstein
Mark S. Mandula
Email mark@ucfunding.com
Telephone (727) 424-1569
Presentation:
Accounting standards position update for SCF
Sean Edwards, Managing Director, Head of Legal – EMEA, Special

Adviser – Global Trade Finance Department, SMBC Bank
International; Chairman, ITFA
IASB & FASB Accounting Standards Update
for Supply Chain Finance
Be thankful for big mercies!
Sean Edwards, Chairman ITFA
SCFS23, Madrid, 25th January 2023
1
BACKGROUND AND TIME-LINES
q A number of head-line cases - Abengoa and Carillion – alarmed

rating agencies and some investors who campaigned for more
information in financial statements on the use of SCF
q Continuing wide range of disclosure practices, with only a few
entities disclosing particular qualitative and quantitative
information about their Supplier Finance Arrangements (SFAs)
q Investors want to know about the existence of SFAs and the
extent to which the entity’s working capital, financial leverage
and liquidity are tied to the use of these arrangements
q Investors require information about SFAs that is comparable both
from period to period for a reporting entity and in a single
reporting period across entities
q FASB changes have taken effect for filings after 15/12/22, except
for the amendment on roll-forward information, which is
effective for fiscal years beginning after 15/12/23
q Not known when IASB changes will take effect but substance
already known
q Generally, IASB slightly stricter than FASB
2
NO AUTOMATIC RECLASSIFICATION TO BANK
DEBT
q Changes are about better disclosure only
q The IASB decided not to address classification and

presentation in financial statements as part of this revision
q However, at least under IFRS, existing rules (IFRS 9 and

IAS1) may require a trade debt to be shown as financial debt
if, essentially, it has changed substantially or is now different
in nature to a trade payable
q This should not be the case in “orthodox” SCF
q Rating agencies may choose to do so and “rewrite” the

financial statements but this does not have any legal effect 3
SCOPE OF SCF
q Applies regardless of the reason an entity entered into the

arrangement or where and how it presents and classifies the
related liabilities and cash flows in its statements but exclude
arrangements that finance receivables or inventory.
q IASB removed reference to paying finance providers as they
may not become the legal owner of the supplier’s receivables
as a result of the arrangement or payment instructions may
direct the entity to pay another party.
q Neither an entity’s proactive participation in establishing the
SFA nor payable confirmation are included in the IASB
definition
q FASB definition is narrower and, significantly, requires
information by the buyer
q There is no scope exclusion for SFAs in which an entity pays
its suppliers using particular instruments or services e.g.
bills of exchange
4
WHAT MUST BE DISCLOSED? IASB (1)
Amendments apply to IAS 7 Statement of Cash Flows and IFRS 7

Financial Instruments: Disclosures
An entity shall disclose:
q the key terms and conditions of each supplier finance arrangement
(including, for example, extended payment terms and security or
guarantees provided);
q for each supplier finance arrangement, as at the beginning and end of the
reporting period:
§ (i) the carrying amount of financial liabilities recognised in the entity’s
statement of financial position that are part of the arrangement and the line
item(s) in which those financial liabilities are presented;
§ (ii) the carrying amount of financial liabilities disclosed under (i)for
which suppliers have already received payment from the finance
providers; and
§ (iii) the range of payment due dates (for example, 30 to 40 days after the
invoice date) of financial liabilities disclosed under (i); and
§ (c) as at the beginning and end of the reporting period, the range of
payment due dates of trade payables that are not part of a supplier finance
arrangement.
5
WHAT MUST BE DISCLOSED? IASB (2)
q Quantitative liquidity risk disclosures:

§ SFAs resulting in the entity concentrating with finance providers a
portion of its financial liabilities originally owed to suppliers have
been added as an example of concentration risk to be disclosed
§ Concern that extended payment terms could be reversed if SFA
terminated and suppliers demand faster terms
§ IASB consider existing rules are enough
§ These rules require judgement as to materiality
§ Judgement is as to whether SFA heightens the risk
6
WHAT MUST BE DISCLOSED? FASB
q The key terms of the program

q For obligations outstanding at the end of the reporting period that
the entity has confirmed as valid under the program:
§ Where those obligations are presented in the balance sheet. If
they are presented in more than one line item, then the entity
shall disclose the amount outstanding at the end of the reporting
period in each line item.
§ The amount outstanding at the beginning of the reporting period
§ The amount added to the program during the reporting period
§ The amount settled during the reporting period
§ The amount outstanding at the end of the reporting period.
7
SOME FINAL THOUGHTS
qMore data will be needed, not all of which the

corporate will have especially for IFRS
qCompetitive edge for the better providers or just extra
unremunerated cost?
qAre liquidity concerns exaggerated?
§ Suppliers will anyway apply pressure to a failing
buyer
§ Committed programmes have drawstops which will
be triggered in most stressed scenarios
qIs the ball now in the court of the rating agencies?
8
9
Closing remarks – Day 2
Lunch
End of Summit
With thanks to this year’s sponsors:

SCFS23 Day 2 - Full Day Slides

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SCFS23 Day 2 - Full Day Slides

Uploaded by

Copyright:

Available Formats

9th Annual Supply Chain Finance Summit

Chairperson’s opening remarks

Peter Mulroy, Secretary-General, FCI

The impact of macro-economic issues on the

Luis A. Puch, Professor of Economics, Universidad Complutense de

Luis A. Puch (ICAE UCM)

Supply Chain Finance Summit 2023

2 The Big Inflation

4 ..and among them, Climate Change and the Energy Transition

Global Economic Growth: World real GDP, 1960-2021

Average annual growth at 3.5%

Source: World Bank’s WDI

Global Economic Growth: World real GDP, 1960-2021

Average annual growth at 3.5%

Source: World Bank’s WDI

Global Economic Growth: World real GDP, 1960-2021

Average annual growth at 3.5%

So yes, a slowdown Source: World Bank’s WDI

Slowbalization (The Economist, 2019), not De-Globalization

World Trade over World GDP, 1970-2021

1985-2007: Average annual

Slowbalization since the

China (also others): central

Source: World Bank’s WDI

The drivers of globalization (cf. Antras 2020)

The ICT revolution

A slowdown in recent years (but Blockchain, Robots, 3D printing,...).

Policy and Politics

Remarkable increase in capitalist way of doing things (particularly East Asia).

The low cost of capital

Uncertainty and higher interest rates may deter investments abroad.

The cost of capital

The drivers of globalization (cf. Antras 2020)

A slowdown in recent years (but Blockchain, Robots, 3D printing,...).

Policy and Politics

Remarkable increase in capitalist way of doing things (particularly East Asia).

A low cost of capital

Uncertainty and higher interest rates may deter investments abroad.

2. The Big Inflation

The Big Inflation

The Big Inflation

Pending: Anchoring inflation expectations to target, monetary policy credible at

4. A focus on Climate Change and the Energy Transition

CO2 Emissions and GDP per capita Worldwide, in logs, 1970-2019

linear slope (elasticity) > 1

Source: IEA & PWT data

...and the Ugly

The goal of the European Green Deal is to be climate-neutral by 2050.

Share of EU 2019 CO2 Annual rates of CO2 reductions (%)

EU 1.51 -4.04 -0.84 -13.14

France 10.18 1.52 -4.10 -0.71 -16.01

There are other threats: ageing, debt crisis,...

So quoting the great Yogi Berra (NY Yankees baseball star):

The Economist, 2019. “Slowbalisation: The steam has gone out of

Antras (2020). De-Globalisation? Global Value Chains in the

Guinea, Ruiz, Pérez and Puch (2022). Time-varying inflation target or

Dı́az, Marrero, Puch and Rodrı́guez-López (2019). Economic Growth, Energy

Delivering a sustainable and transparent next level of

A disruptive approach to SCF: How a primary bank,

Pietro Campagna, Global Head of Working Capital Solutions, UniCredit

Francesco Fabbri, Head of Vendor Management and Development, Eni

Enrico Viganò, CEO & Founder, FinDynamic

A disruptive approach to Supply Chain Finance:

FINDYNAMIC DEVELOPS SUPPLY CHAIN FINANCE PLATFORMS …