Transcript r - DACT

Marc Verkuil
DACT meeting
Sr Director, Treasury & Tax
November 12, 2010
SEQUENCE OF EVENTS
Jun 2008: spin-off (MBO)
Nov 2008: merger
Feb 2010:
establishment of new
stand-alone business
Jan 2010: asset sale
50/50% JV
APPLIED BIOSYSTEMS – INVITROGEN MERGER
> highly leveraged with funding from >30 banks
> different business, fiscal, and legal models
> different ERP systems
> Invitrogen management and culture leading
> RBS (EMEA), Citi (APJ), JPM (US)
> BofA (EMEA), HSBC (APJ), BofA (US)
> zero-balance cash pooling in EMEA and APJ
> principally no pooling
> global in-house bank model & system
> no in-house banking
> standard, international straight-through processing > limited straight-through processing
> structured cash flow hedging program
> B/S exposures principally consolidated with
in-house bank
> opportunistic cash flow hedging program
> B/S exposures with multiple entities
APPLIED BIOSYSTEMS – INVITROGEN MERGER
EUR
Cash
CHF
Cash
USD
Cash
GBP
Cash
NOK
Cash
DKK
Cash
SEK
Cash
CZK
Cash
HUF
Cash
EUR
ZBA
NOK
ZBA
DKK
ZBA
EUR
ZBA
EUR
ZBA
GBP
ZBA
EUR
ZBA
External cash
balances finance
company
SEK
ZBA
Zero cash
balances local
entities
USD
ZBA
EUR
ZBA
USD EUR
EUR
ZBA ZBA
ZBA
CHF
ZBA USD
ZBA
EUR
ZBA
RUB
PLN
CZK
ZBA
ZAR
HUF
ZBA
EUR
ZBA
APPLIED BIOSYSTEMS – INVITROGEN MERGER
EUR
Cash
CHF
Cash
USD
Cash
GBP
Cash
NOK
Cash
DKK
Cash
SEK
Cash
CZK
Cash
HUF
Cash
EUR
IHB
NOK
IHB
DKK
IHB
EUR
IHB
EUR
IHB
GBP
IHB
EUR
IHB
External cash
balances finance
company
SEK
IHB
In-house cash
balances local
entities
USD
IHB
EUR
IHB
USD EUR
EUR
IHB IHB
IHB
CHF
IHB USD
IHB
EUR
IHB
CZK
IHB
HUF
IHB
EUR
IHB
DUTCH FINANCE COMPANY
FUNCTIONS
R
o
y
a
l
B
a
n
k
o
f
S
c
o
t
l
a
n
d
USD
ZBA
Manufacturing Operations US
Manufacturing Operations SG
USD
ZBA
GBP
ZBA
Product (& Service)
Receivables
SEK
ZBA
JPY
ZBA
(EMEA only)
SGD
ZBA
NOK
ZBA
AUD
ZBA
DKK
ZBA
EUR
ZBA
CHF
ZBA
NZD
ZBA
Cash Management
Center
FX Management
Center
Dutch finance company
CNY
HUF
ZBA
In-House Bank & Netting Center
CZK
ZBA
PLN
PLN
ZAR
KRW
TWD
THB
USD GBP SEK NOK DKK CHF PLN CZK HUF JPY
IHB IHB IHB IHB IHB IHB IHB IHB IHB IHB
AUD NZD KRW CNY TWD THB
IHB IHB
Payables Center (SAP upload)
(Europe, EMEA, Japan, APAC, x-border North-America)
C
i
t
i
b
a
n
k
APPLIED BIOSYSTEMS – INVITROGEN MERGER
EUR
Cash
CHF
Cash
USD
Cash
GBP
Cash
NOK
Cash
DKK
Cash
SEK
Cash
CZK
Cash
HUF
Cash
EUR
ZBA
NOK
ZBA
DKK
ZBA
EUR
ZBA
EUR
ZBA
GBP
ZBA
EUR
ZBA
External cash
balances finance
company
SEK
ZBA
Zero cash
balances local
entities
USD
ZBA
EUR
ZBA
USD EUR
EUR
ZBA ZBA
ZBA
CHF
ZBA USD
ZBA
EUR
ZBA
RUB
PLN
CZK
ZBA
ZAR
HUF
ZBA
EUR
ZBA
APPLIED BIOSYSTEMS – INVITROGEN MERGER
EUR
EUR Cash
Cash
CHF
Cash
CHF
Cash
USD
Cash
USD
Cash
GBP
Cash
GBP
Cash
DKK
NOK
SEK
Cash Cash Cash
DKK
NOK
SEK
CZK
Cash Cash Cash
Cash
EUR
ZBA
DKK
DKK
ZBA
Cash
USD
ZBA
SEK
SEK
ZBA
Cash
EUR
GBP
GBP
EUR
ZBA
ZBA
USD EUR
Cash
Cash
EUR
EUR
ZBA ZBA
EUR
Cash
ZBA
CHF
Cash
CHF
ZBA
USD
Cash
USD
ZBA
EUR
Cash
ZBA
EUR
Cash
EUR
EUR
EUR
ZBA
Cash
HUF
Cash
EUR
EUR
ZBA
Cash
NOK
NOK
ZBA
Cash
EUR
EUR
ZBA
Cash
External cash
balances finance
company
ZBA
EUR
Cash
Zero cash
balances local
entities
RUB
PLN
CZK
ZBA
ZAR
HUF
ZBA
APPLIED BIOSYSTEMS – INVITROGEN MERGER
EUR
EUR Cash
Cash
CHF
Cash
CHF
Cash
USD
Cash
USD
Cash
GBP
Cash
GBP
Cash
DKK
NOK
SEK
Cash Cash Cash
DKK
NOK
SEK
CZK
Cash Cash Cash
Cash
EUR
ZBA
DKK
DKK
ZBA
ZBA
USD
ZBA
SEK
SEK
ZBA
ZBA
EUR
GBP
GBP
EUR
ZBA
ZBA
USD EUR
ZBA
ZBA
EUR
EUR
ZBA ZBA
EUR
ZBA
ZBA
CHF
ZBA
CHF
ZBA
USD
ZBA
USD
ZBA
EUR
ZBA
ZBA
EUR
ZBA
EUR
EUR
EUR
ZBA
ZBA
HUF
Cash
EUR
EUR
ZBA
ZBA
NOK
NOK
ZBA
ZBA
EUR
EUR
ZBA
ZBA
External cash
balances finance
company
ZBA
EUR
ZBA
Zero cash
balances local
entities
RUB
PLN
CZK
ZBA
ZAR
HUF
ZBA
APPLIED BIOSYSTEMS – INVITROGEN MERGER
EUR
EUR Cash
Cash
CHF
Cash
CHF
Cash
USD
Cash
USD
Cash
GBP
Cash
GBP
Cash
DKK
NOK
SEK
Cash Cash Cash
DKK
NOK
SEK
CZK
Cash Cash Cash
Cash
EUR
IHB
DKK
DKK
IHB
IHB
USD
IHB
SEK
SEK
IHB
IHB
EUR
GBP
GBP
EUR
IHB
IHB
USD EUR
IHB
IHB
EUR
EUR
IHB ZBA
EUR
IHB
IHB
CHF
ZBA
CHF
ZBA
USD
IHB
USD
IHB
EUR
IHB
IHB
EUR
IHB
EUR
EUR
EUR
IHB
IHB
HUF
Cash
EUR
EUR
IHB
IHB
NOK
NOK
IHB
IHB
EUR
EUR
IHB
IHB
External cash
balances finance
company
IHB
EUR
IHB
In-house cash
balances local
entities
CZK
IHB
HUF
IHB
DUTCH FINANCE COMPANY
FUNCTIONS
D
B
R
B
S
USD
ZBA
USD
ZBA
GBP
ZBA
GBP
ZBA
SEK
ZBA
SEK
ZBA
NOK
ZBA
NOK
ZBA
DKK
ZBA
DKK
ZBA
EUR
ZBA
EUR
ZBA
CHF
ZBA
CHF
ZBA
HUF
ZBA
Manufacturing Operations US
Manufacturing Operations SG
Product (& Service)
Receivables
(EMEA only)
Cash Management
Center
FX Management
Center
KRW
Dutch finance company
CNY
In-House Bank & Netting Center
CZK
ZBA
TWD
THB
PLN
ZAR
USD
USD
ZBA
ZBA
JPY
JPY
ZBA
ZBA
SGD
SGD
ZBA
ZBA
AUD
AUD
ZBA
ZBA
NZD
NZD
ZBA
ZBA
USD GBP SEK NOK DKK CHF PLN CZK HUF JPY AUD NZD KRW CNY TWD THB
IHB IHB IHB IHB IHB IHB IHB IHB IHB IHB IHB IHB
USD GBP SEK NOK DKK CHF
JPY AUD NZD
IHB IHB IHB IHB IHB IHB
IHB IHB IHB
Payables Center (SAP upload)
(Europe, EMEA, Japan, APAC, x-border North-America)
H
S
B
C
C
I
T
I
SEQUENCE OF EVENTS
Jun 2008: spin-off (MBO)
Nov 2008: merger
Feb 2010:
establishment of new
stand-alone business
Jan 2010: asset sale
50/50% JV
DANAHER ASSET DEAL:
AB SCIEX VENTURE
> only assets & liabilities acquired, all dedicated manufacturing, R&D, sales, service & support
associates transferred (plus a small group of others)
> no legal entities, no registrations, no IT (no systems), no finance, no HR, no distribution, no offices, etc
> two former JV partners: different ERP systems, different teams/cultures, different processes, etc
> transitional services agreements with Life Technologies (and MDS)
> RBS (EMEA), Citi (APJ), JPM (US)
> wide range of banks
> zero-balance cash pooling in EMEA and APJ
> primarily notional cash pooling with multiple local
banks
> global in-house bank model & system
> no in-house banking
> uniform, international straight-through processing
> limited straight-through processing
> B/S exposures principally consolidated with
in-house bank
> no hedging at all
DANAHER ASSET DEAL:
AB SCIEX VENTURE
USD
Cash
EUR
Cash
GBP
Cash
Notional pool
balances finance
company
EUR
Cash
CHF
Cash
USD
Cash
GBP
Cash
NOK
Cash
DKK
Cash
SEK
Cash
CZK
Cash
HUF
Cash
EUR
ZBA
NOK
ZBA
DKK
ZBA
EUR
ZBA
EUR
ZBA
GBP
ZBA
EUR
ZBA
External cash
balances finance
company
SEK
ZBA
Zero cash
balances local
entities
USD
ZBA
EUR
ZBA
USD EUR
EUR
ZBA ZBA
ZBA
CHF
ZBA USD
ZBA
EUR
ZBA
RUB
PLN
CZK
ZBA
ZAR
HUF
ZBA
EUR
ZBA
Marc Verkuil
DACT meeting
Sr Director, Treasury & Tax
November 12, 2010