As chief financial officer, Masatoshi Miyamoto oversees a complex global network from JVCKENWOOD’s headquarters in Japan, where treasury operations are concentrated. The treasury department’s current top priority is reducing operational costs by reducing the company’s interest-bearing debt. The department is also responsible for efficiently raising funds to support strategic projects and for managing foreign-exchange risk. “All of these obligations demand a treasury solution that enables fast, accurate decisions,” Miyamoto says.
Historically, though, Miyamoto’s team used manual spreadsheets to manage cash and to capture foreign-exchange risk. This could sometimes result in inefficiency. “Group treasury management across the globe requires a single dashboard and a single source of truth so that all may understand the management policy. The treasury management system (TMS) delivers this unified visibility,” he notes. It also makes it easier to invest available cash into growth-spurring activities, such as capital expenditure and mergers and acquisitions.
“With the added visibility, we can also pay back interest-bearing debt,” Miyamoto says. “Compared to manual Excel work, a TMS gives us direct and far-reaching benefits. We are now able to make more elaborate cash forecasts that allow us to reduce our reliance on external financing. That also helps us achieve our key performance indicator- reducing out debt ratio.”
A TMS helps multinational JVCKENWOOD in other ways, too. It connects to banks wherever the company operates and allows the centralized treasury department to interact easily with subsidiaries and recently acquired companies. It also offers rich reporting functions that automate inefficient spreadsheet-based processes. As a result, Miyamoto and his team can manage complexity and stay focused on maximizing the company’s financial strength. To read the rest of Miyamoto’s interview, plus get insight from nine other CFOs, download our new ebook