Groupon Treasury : Adventures in Cash Management Best Practices

1. Groupon Treasury : • Adventures in Cash Management Best Practices

2. Speaker Bio Phil Mattes - Treasury Strategist, Kyriba • In his role at Kyriba, Phil Mattes provides clients with consulting and advice on all aspects of treasury system projects. Phil has over 15 years of consulting and corporate experience in treasury. He began his treasury career as a Treasury Analyst at the New York City headquarters of the global oilfield services firm, Schlumberger. He then spent more than 8 years with the corporate treasury consulting practice of PricewaterhouseCoopers. Feeling the pull of the corporate world again, he joined CareerBuilder LLC in Chicago as the Director of Treasury to establish their corporate treasury function. Prior to his current position with Kyriba, Phil was the Global Director of Treasury for Groupon Inc.

3. Agenda • Groupon Overview • Cash Management • Security and Control • Banking Infrastructure • Account Visibility • Cash Forecasting • Liquidity Optimization

4. Groupon Overview • Founding Fathers: Andrew Mason (The Idea) and Eric Lefkofsky (The $$) • Established in Nov 2008 – offshoot of “The Point” social organizing website. • Growth: In Dec 2010, Forbes estimates Groupon will reach $1 billion in sales faster than any other company and Google’s $6 billion offer rejected. Multiple acquisitions resulting in operations in 45 countries. • Challenges – Easy to copy business model, over sold merchants, accounting missteps (revised S1 statements, multiple revenue restatements), failed Super Bowl commercials, failed China launch, manual processes, immature financial systems, delayed system integrations, executive turnover, etc. • Cash Flows – Merchant payment terms US vs Intl. Nov 2011 IPO raises $700 million. • Culture – Entrepreneurial, chaotic, fast paced, informal, quirky CEO

5. Groupon Overview

6. Value Creation Hierarchy Liquidity Optimization • Maintain database of signer and bank account information • Rationalize signers and directors • Use bank products that enhance security (positive pay, etc.) • Centralize security administration • System enforced delegation of authority • Policy documents clearly outline roles and responsibilities Cash Forecasting Account Visibility Banking Infrastructure Security and Control

7. Value Creation Hierarchy • Rationalize number of banking partners • Reduce number of bank accounts • Optimize services • Automate analysis of fees • Conduct bank reviews on a periodic basis Liquidity Optimization Cash Forecasting Account Visibility Banking Infrastructure Security and Controls

8. Value Creation Hierarchy • Automate connectivity to banks for electronic statements • Leverage abilities of a treasury management system • To consolidate information • To assign reporting categories to transactions • Make it easy for executives to get the information they want (dashboards, executive summaries, etc.) Liquidity Optimization Cash Forecasting Account Visibility Banking Infrastructure Security and Controls

9. Value Creation Hierarchy • Executive support • Collaboration with information sources • Communication of roles, responsibilities and process • Information systems/integration to support the process • Measurement of accuracy and feedback to sources. • Incentives for improvement Liquidity Optimization Cash Forecasting Global visibility Banking Infrastructure Security and Controls

10. Value Creation Hierarchy Liquidity Optimization • More strategic investment of cash • Repayment of debt • Maximization of earnings credit • Use of supply chain discounts • Overall improved ability to plan future uses of cash. Cash Forecasting Account Visibility Banking Infrastructure Security and Controls

11. Q&A

12. Contact Info Phil MattesTreasury Strategist | KyribaPhone:  (708) 488-8797phil@kyriba.com