Siemens Supply Chain
Finance Program
Summer/Fall 2016
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Introduction to the Siemens SCF Program
 The Supply Chain Finance (SCF) Program uses a
3rd party web-based platform provider (Orbian) to
provide cost-effective receivables financing to
Siemens Suppliers & Sub-contractors.
 SCF leverages the financial strength of Siemens to
offer low discount rates to selected Suppliers invited
into the program.
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SCF Benefits at a Glance
CASH FLOW IMPROVEMENT
WORKING CAPITAL IMPROVEMENT
COST REDUCTION
TRANSPARENCY OF CASH FLOWS
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How does SCF work at Siemens?
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Vendors submit invoices to Siemens in exactly the
same way prior to enrollment
Siemens approves payments and sends payment
instruction (PI) to the SCF platform*
Vendors receive non-recourse cash following sale
of receivable to 3rd party platform provider
Siemens makes payments to 3rd party platform
provider at scheduled maturity date
* Vendors are able to view approved receivables on SCF platform
at this point and can elect to discount at their attractive rate
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Discounting Options
Automatic
Discounting
Upon enrollment, elect to automatically discount all approved
Siemens receivables at the applicable discount rate.
Manual
Discounting
Vendors with annual sales of $500K+ manually select which
Siemens receivables to discount at the applicable discount
rate. An additional discounting fee of 0.12% (12 bps) p.a. is
added to the discount rate.
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How much does the Siemens SCF Program cost?
The only cost of the program is the discount charge that a
supplier pays to receive early payment.
There are no fees to join, maintain or exit the program.
The Discount Rate currently offered in the Siemens SCF
Program is tiered, dependent upon your total annual sales to
Siemens, with a minimum of $50K.
Annual Sales Level
Annualized Discount Rate
$500,000 +
LIBOR plus 1.50%
$300,000 - $499,999
LIBOR plus 1.75%
$50,000 - $299,999
LIBOR plus 2.50%
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Discount Charge Example
Supplier with $500K+ annual sales
Payment Terms with Siemens:
90 days
Siemens Approved Payment Amount:
$10,000.00
Annualized SCF Discount Rate:
2.00 % (assumes Libor @ .50% + 1.50%)
Event Scenario
Auto Discount
Invoices submitted
Day 0
Payment approved by Siemens and shared with SCF platform
Day 7
Cash received by supplier or sub-contractor
Day 10
Number of days cash received early
80 Days
Discount Charge paid by supplier or sub-contractor
(80/360) x .02 x $10k
$44
Discount Charge as a percentage of the receivable
.44%
Cash proceeds received by supplier or sub-contractor on Day 10
$9,956
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Interactive Discount Charge Analysis
Invoices submitted on day:
Supplier or sub-contractor’s Payment Terms with Siemens:
0
Payment approved by Siemens and shared
with SCF platform on day:
90
7
Siemens approved payment amount:
Receivable sold to Orbian by supplier or
sub-contractor on day:
1000000
7
Annualized SCF Discount Rate
(LIBOR+applicable rate%):
Cash received by supplier or sub-contractor on day:
(2 business days + day invoice approved)
2.00
10
Calculate
Number of days cash received early:
80
Discount Charge Paid by Supplier or Sub-contractor:
$4,444
Discount Charge as a Percentage of the Receivable:
0.44%
Cash Proceeds Received by the Supplier or Subcontractor:
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$995,556
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Siemens SCF Program – Summary of Benefits
The Siemens Supply Chain Finance (SCF) Program
allows suppliers to quickly convert invoices to cash at
attractive discounting rates. This cash flow and internal
cost improvement may result in more competitive
bidding.
Cash Flow Improvement
Working Capital Improvement
Cost Reduction
Transparency of Cash Flows
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Next Steps
Enrollment
Start Receiving
Siemens SCF
Program Benefits
 https://www.orbian.com/documentation.aspx?n=616574
 Based on the location of incorporation, use the following code:
US: Siemens2123; Mexico: Siemens2124; Canada: Siemens2125
Germany: Siemens2129
 Siemens Canada: Siemens2140
 Follow directions to complete paperwork
 Orbian will complete the activation process
 You receive access to Siemens SCF Program web portal
 Start converting invoices to cash fast!
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Thank you for your attention!
Douglas Schoch
VP, Relationship Manager
Treasury & Investment Management
Phone
E-mail
732-590-6582
[email protected]
Monica Moskowitz
Supply Chain Finance Analyst
Phone
E-mail
732-590-2524
[email protected]
Kathleen Kresmery
Documentation Specialist
Phone
E-mail
203-852-3901
[email protected]
Unrestricted © Siemens AG 2016. All rights reserved
Siemens Capital Company LLC
170 Wood Avenue South
Iselin, NJ 08837
USA
Siemens Capital Company LLC
170 Wood Avenue South
Iselin, NJ 08837
USA
Orbian Corporation
200 Connecticut Avenue
Norwalk, CT 06854
USA
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Questions?