Centralising regional liquidity management

by Ken Osuga, General Manager, Konica Minolta Business Solutions Europe

Konica Minolta Business Solutions is a leading provider of advanced document solutions and networking/imaging technologies for use from the desktop to the print shop. With 27 subsidiaries operating across Europe, each with its own profit centre, the company identified a need to improve its existing cash management structure and selected RBS to develop the solution.

The challenge: Achieving greater visibility and control over Europe-wide balances

Konica Minolta Business Solutions combines award-winning colour printers and multifunctional copiers with powerful software tools to deliver integrated imaging and document management solutions to customers. Our European business is headquartered in Langenhagen, Germany, with subsidiaries across the region. Whereas some subsidiaries were cash rich, others required local bank financing. Being able to gain central oversight of cash positions, and mobilise cash across the region, were therefore key priorities. We sought a ‘lean and mean’ cash management structure, with a centralized approach to liquidity management across Europe. Our main goals were to:

• Increase the transparency, control and centralisation of cash positions

• Reduce interest costs through better use of internal funds and reductions in local borrowing

• Shorten the balance sheet

• Reduce banking costs (administrative costs, banking fees, systems).

By being able to pay down debt in one part of the organisation with spare cash lying elsewhere, we could maximise internal cash to reduce interest charges. In addition, a Europe-wide rationalisation of our banking relationships would help to reduce banking fees and administrative costs.

Download our Free Treasury App for mobile and tablet to read articles – no log in required.

Download Version Download Version