Coty Inc. has selected IT2’s treasury management solution for its cash, treasury risk management and hedge accounting requirements. IT2 will support Coty’s global treasury operation, which is split amongst two locations, New York and Haarlem in the Netherlands. The Netherlands organization is responsible for all treasury related matters outside the USA, including in-house banking, world-wide hedging, intercompany netting, borrowing & lending and cash flow forecasting; the US treasury operation is responsible for US domestic cash management, and for managing the corporate debt portfolio.
Rudmer Wedzinga, Coty’s International Treasurer, explains: “Coty decided to replace ageing technology with a solution that would satisfy a full range of international treasury management requirements, enabling us to improve cash management and payment processing efficiency. We chose IT2 because of its unique workflow management and reporting tools, which facilitate the delivery of a reliable, powerful and flexible solution. IT2 will liberate our global treasury team to concentrate on strategic issues, management functions and local business support.”
The IT2 implementation at Coty is well underway, and the first phase is scheduled to complete late in the third quarter of 2011. The solution will eliminate the inefficiencies and errors caused by multiple re-entries of data, and will deliver efficient and intuitive straight through processing via IT2’s transparent workflow management facilities, with strong internal controls, segregation of duties and audit features on a single integrated platform.
IT2 will support a range of requirements, including cash positioning, forecasting and mobility. For the US treasury, current and prior day bank balance and transaction reports will be retrieved from an FTP server in BAI2 format. The debt portfolio utilizes revolving credit facility draw-downs for short term funding; long term borrowing primarily focuses on private placements. IT2 is being implemented to generate payment messages for transmission to the Wachovia wire station (for FedWire and cross-border wires) and the RBS banking platform (in MT101 format). The authorization of the payments will be managed in IT2 prior to release on a secure network location or FTP servers.
The IT2 solution will support FAS133 and FAS157 accounting principles. The second phase of the IT2 project will extend the solution to on-line cash flow forecasting and trade finance via L/Cs and guarantees.
