Yell Group plc chooses the IT2 Treasury Management System

15 June 2007

SimCorp IT2 Treasury Solutions announces that the Yell Group plc (“Yell”) has selected the IT2 TMS to support its cash, treasury, treasury accounting and risk management operations.

Yell Group plc is a leading international directories business, operating in the classified advertising market through printed, online and phone-based media in the United Kingdom, the United States, Spain and Latin America.

Yell’s treasury is based in Reading, Berkshire, UK, with the key financing decisions and funding negotiations taken centrally by the Group Treasurer, supported by a “virtual” treasury team across the Group. The resultant funding is drawn by holding and operating companies across the Yell Group and accounted for by local finance people who are also part of the virtual treasury team.

The US and Spanish operations carry out their own cash management, and are expected to benefit from the IT2 system and its integrated features in the future.

Yell’s treasury selected and licensed IT2 in response to audit recommendations, the increasing complexity of the Yell Group itself and to enhance the control environment at a time of increasing scrutiny from auditors and regulators. Yell’s leveraged external funding portfolio and the associated intercompany loan arrangements beneath it will benefit from fully automated and better controlled processes, especially given the challenge of administering withholding tax across a very large syndicate of lenders. Yell will be taking advantage of IT2’s integrated IAS39 functionality to administer and account for all its external derivative transactions. As well as managing funding deals and interest rate management, IT2 will generate accounting entries for Yell’s SAP General Ledger system, covering all treasury deals and cash flows.

David Scriven, Yell Group Treasurer, said: “We searched thoroughly for a system that met our requirements and I’m delighted that IT2 was such a clear winner. I’m looking forward to implementing the system, eliminating all our spreadsheets and seeing the development of the newly automated Yell treasury.”

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