Czech Association of Treasury CAT presentation September 2005Croatia "CAT experience in the Financial World - CAT organisation, activities, membership.

Czech Association of Treasury

CAT presentation September 2005

CroatiaCroatia"CAT experience in the Financial World - CAT

organisation, activities, membership in IGTA and EACT, educational program"

Ivan Haco, president CAT

Macroeconomics – CZKMacroeconomics – CZK

aim : anti-inflation policy and stable interest rates

• Low CPI (1,9%) does allow to Czech National Bank to lower short term interest rates and support GDP growth (4,7%)• Increase of the FDI - privatisation continues• Future development of prices deregulation will support expressively lower inflation level in the future • Low interest rate difference between CZK (1,75% and EUR (2%)• FX rate CZK/EUR moved from 36 to 29.5 during 1 year !• High probability of its decreasing in the future ….. to 28 CZK/EUR ?• Convergence the CR to EU …. common currency in 2010 ?

CAT Association

In the Czech Republic the treasury function is a very new area in the financial management of corporations, and its uses and responsibilities are being gradually developed. The evidence of this fact is that no expression has been found yet in the Czech language which would present a real equivalent of the English word treasury.

Significance of the Treasury departments increased especially after the currency crisis in 1997, when a number of important companies had terrible problems as before then the protection of currency and interest risks had been rather exceptional specialised. Treasury departments started to arise, professionals have been active in the financial activities inside the corporations, so that the importance of Treasury has been developing.

CAT Association

The role of the treasury professional has evolved rapidly over the last ten years. In addition to the basics of banking relationships and cash management, treasury managers have to inform themselves about developments in electronic payment systems, e-commerce, risk management and relevant SWs for modelling and evaluating risks, credit management, accounting standards tax optimisation and a variety of other issues. More than ever, treasury practitioners also have to participate with other managers to co-ordinate the flow of financial information throughout an organisation.

CAT has created its own web pages in Czech and English, where CAT transmits knowledge of treasury management in the Czech republic and discover more information about activities CAT Committees, our current Seminars and all of around the treasury in ČR for finance professionals.

www.czechtreasury.czwww.czechtreasury.cz

CAT Association

The Czech Association of Treasury (CAT) was founded at the beginning of the year 2001. The founders are professionals from the treasury departments of leading corporations in the Czech Republic.

The principal aims of the Association are to publicise and to develop the treasury profession, while becoming the leading authority on questions of Treasury development and Risk management within the financial framework of corporations. It would also like to be a recognised authority in the area of corporate management in the Czech Republic.

At the present time the Presidium (Board) of the Association is preparing activities for financials professionals, especially those working for the top 100 corporations in the Czech Republic. We have 92 registered members and suppose that by the end of this year we will have around 100 members and 200 active non-members in the Association.

CAT Association

The entry into the international organisations IGTA and EACT is, besides expanding the membership base, the main priority for the next development. The CAT has already been introduced as an IGTA candidate at the 3rd Treasurers’ Forum held in London in March 2002. At this Conference several national associations also supported our entry. CAT was accepted as the IGTA member during 2002 . EACT member is CAT unofficially from November 2004, officiallyis CAT member of EACT from May 2005

Establishing a good reputation of CAT in financial circles is another goal. The CAT should like to provide opportunities for financial education and consultations in the future.

The main internal aims of the CAT are the functioning in elementary areas of the financial management concentrated to the Professional Committees, as well as its share in the professional development of our members. Further CAT want to co-operate with commercial banks, and companies concerning the treasury systems. The professional activities are controlled by individual committees :

CAT Association

CAT Professional Committees :CAT Professional Committees :

• Cash / Liquidity management

• Risk management

• Foreign relationships

• Career development

• Banking relationships

• Treasury systems and technology

• Legal, Tax, Accounting and Audit management

CAT Association

CAT Objectives :CAT Objectives :

1. To create and develop a professional association for those practising corporate treasury management

2. To provide a forum of members to meet and discuss relevant issues

3. To promote ongoing professional development of corporate treasury

4. To improve the availability and standard of education in corporate treasury management

5. To collate members' views on topics of interest and to provide a collective voice on these topics to the Government, industry and the community

CAT Association

CAT objectives in practiseCAT objectives in practise

1 – Co-operation with EACT and IGTA

2 – Co-operation with associations in Czech Republic + associations in abroad (ACT - 2006 Conference, educational programme for CEE)

3 – ensure monthly Seminars/workshops for members / non-members

4 – annual Treasury Management Forum conference

5 – co-operation on Eurofinance treasury conference in Prague as professional guarantor

6 – Participation in economic legislation and regulation process

7 – Medial presentation of professional opinions

8 – Increasing quality of the Financial Manager quarterly journal

9 – Support of CAT members training activities

10 – start co-operation CAT with the universities (managers – students – academics)

CAT Association

CAT AssociationCAT structureCAT structure

General Assembly (92)

Board of Directors (9)

CAT Office (1)

7 Committees

CAT membershipCAT membership

CAT Association

978984619TOTAL MEMBERSHIP

15121065INDIVIDUALS

827774554TOTAL NUMBER OF ENTITIES

22211Other Legal Entities

66520Consultancy Companies

43331Insurance Companies

87720SW Companies

66531Municipality + University

262420132Limited Companies

605757445Joint-Stock Companies

20052004200320022001

CAT members’ admission criteria :CAT members’ admission criteria :

-Membership Subscription for one representative of groups member (further Subscription) for one calendar year is 4.000,- CZK-Membership Subscription for individual member (further Subscription) for one calendar year is 2.000,- CZK-50 % Subscription, if Presidium decided about origin membership after 30.6.

-Group CAT member remit Subscription in multiplication of basic Subscription and number of representatives.-In case of extend representative Group CAT member will occur from the decision Presidium after 30.6., remit for that representative(s) 50 % basic Subscription -Honorary member has no obligation to pay Subscription.

CAT Association

CAT annual conferences1 - annual conference : Payment Transactions through Electronic Banking

Systems : May 2003 as 1-days conference- takes place in Prague - Hotel Holiday Inn- organised by top vision marketing-education company - 120 participants

2 - annual conference “Treasury Management Forum” - TMS and other Information systems + systems for financial support : - June 2004 as 1-day conference- takes place in Prague - TOP Hotel - 80 participants

3 - annual conference : “Treasury Management Forum” - Payments System, Financial Management Information Systems : June 2005, 1-day conference- takes place in Prague - Congress Centrum Prague

- 160 participants

CAT activities – some of Seminars :CAT activities – some of Seminars :

1. “Investment funds for cash management of Czech corporations”

2. Hedging IR and FX risks by derivatives and structured products + discussion with main bank analysts

3. Accounting of financial treasury instruments + IAS standards

4. Practise of hedging and speculation on FX and IR instruments - examples in corporate treasury management (2 days)

5. Implementation the basic Risk management procedures

6. Practise workshops of presentation skills for CAT members

CAT Association

CAT Financial journal

• CAT works on the basis of internet information flow, but we realised and organised just now professional magazine.

• 2 ways : our own quarterly journal x co-operation with professional Financial Management monthly journal (part of the journal will be by CAT)

• First issue - winter 2005.

• OBJECTIVE: professional news, experiences, discussion between treasurers and academics

• SECTIONS: spotlights, Contemporary papers, European financial law, Financial English

• AVAILABILITY: all CAT members and contacts, many university libraries in Czech Republic

CAT partners

In Czech Republic:In Czech Republic:1 - Ministry of Finance

2 - Czech National Bank

3 - Bank Association, CFO Association, Institute of Internal Audit

4 - Chamber of Commerce CR

5 - Parliamentary Committees, President CR office

In abroad:In abroad:1 – International Group of Treasurers Associations - IGTA (membership since 2002)

2 - Euro.Associations of Corporate Treasurers - EACT (membership since 2004)

3 - SAF - Slovak Association of Financials (since 2001)

4 - ACT in London (we co-operate on the mutual Treasury Conference 2006)

CAT and IGTA

IGTA IGTA = INTERNATIONAL GROUP OF TREASURY ASSOCIATIONSestablished in 1986, 21 professional associations of 5 continents

CAT membership = ordinary membership since 2002

= CAT role is rather formal

= membership fee from 2005 (300 Euro minimum)

CAT and EACT

EACT EACT = EURO- ASSOCIATIONS OF CORPORATE TREASURERS = represent more than 7600 members from 4300 European companies= established in 2002, 15 professional associations now= president of the EACT is for 2005 François Masquelier, earlier Pierre Poncet

= key issues are reviewed and discussed within the EACT membership, with several representations made to their own commissions or experts and liaison with the relevant national and European bodies - ECB, European Commission, European Parliament, CESR, EBF etc. : - IAS 32 and 39 - Harmonisation of payment systems in Europe (SEPA and NLF) • SEPA = Single European Payment AREA• NLF= New Legal Framework (European directive of the new pan European

payment schemes as well as rights and obligations of Payment Services Providers -PSP- and Payment Services Users -PSU-)

CAT and EACTCAT membership = ordinary membership since May 2005 (unofficially since November 2004)

CAT activities

= active participation in the processing of EACT agreements inside the treasury environment and public financial authorities.

= half-year meetings : place for discussion and preparation :- financial education in the future- consultations of experts- professional opinions for negotiations with CNB- members of the professional Committees- development of our association and members by common activity

(prepared ACT/CAT Conference)

CAT educational program• 2000 : IGTA had developed a syllabus for a Global Treasury Manager. This outline

is ACT’s material, but highlighted areas have to be developed by each association in relation to local situations;

• 1. Basic syllabus for the Global Treasury Manager

2. Basic syllabus for treasury competence

3. International treasury advanced syllabus

• 2002 : IGTA supports a process of accreditation of existing education programmes developed by treasury associations and other education providers. This is to ensure that the programmes meet IGTA standards.

• The accreditation committee awards accreditation in 3 categories of diploma / certificates :

•"IGTA treasury management diploma"

•"IGTA certified treasurer diploma”, "IGTA certification"

•"IGTA certificates in Operational Treasury”

Accreditation process:process is managed by accreditation committee of IGTAaccreditation committee consists of treasurers, financial directors, academic

people and experts named by IGTA, representatives of national associations of corporate treasurers, Universities + representatives of educational company

Conditions of courses: for “IGTA certified treasurer diploma” have to be prepared syllabus for 1,5

years education and minimum 300 hours (á 45 min.)end of programme must be finished by examination - graduation paperorganisation of course must be similar as external MBA course

CAT and certification :CAT haven‘t started educational program yet. We asked for support from EU

structural funds + co-operate with Economy University of Prague + other Associations in the CEE (Slovakia, Slovenia, Hungary)…. common program ?

CAT educational program

Contacts :Contacts :

National Office :

The CATAssociation of Corporate TreasurersPrague 5Na Plzence 2/1235

www.czechtreasury.cz

[email protected]

Ivan Haco (chairman)phone: +420-721-487261 e-mail: [email protected]

Petr Polak (foreign relations)phone: +420-737-824570 e-mail: [email protected]

CAT Association