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Growth aspirations in Europe achieved by leveraging HSBC’s dynamic liquidity solutions
Ricoh is a leading digital workspace integrator, empowering its customers through using innovative technologies and services, thus enabling individuals to work smarter. With cultivated knowledge and organisational capabilities nurtured over its 85-years history, Ricoh offers best-in-class capabilities in digital workspace, business process management, digital experience, cybersecurity, cloud & infrastructure and graphic communications.
Headquartered in Tokyo, Ricoh Group has major operations throughout the world and its products and services now reach customers in approximately 200 countries and regions.
Ricoh and HSBC enjoy a very close relationship at a global and regional level for many years. Our matching footprint lends itself to facilitating a growing cash management relationship. Ricoh strives to continually optimise processes and adopt innovative practices which is complimented by HSBC capabilities and continual investment in products and solutions to meet clients’ complex needs.
Growth aspirations in Continental Europe
Ricoh operates a highly efficient treasury function with a key objective to recycle group cash across a significant number of operating entities in multiple regions.
To support Ricoh’s growth aspirations in Continental Europe, HSBC worked with them to review their existing European Liquidity Management structure.
Ricoh holds a Multi-Currency Notional Pool in the UK with an objective of centralising cash in Europe. It has helped them notionally offset balances across 20 operating currencies and multiple entities, leading to reduced local borrowings and lower costs associated with holding debit balances. They also benefit from efficient FX management, real time visibility and control of their Liquidity positions.
With over 100 accounts held by multiple entities participating in the pool, the new location of the restructured pool needed careful consideration.
The strength of our global presence and agile product offering via the Global Liquidity Solutions, enables us to provide clients with multiple options to centralise their cash both regionally and globally.
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Colaboration
HSBC worked closely with Ricoh’s Treasury Team, presenting various solutions and locations, and outlining the benefits of each. After our consultation, Ricoh decided to create a sub-pool in Continental Europe under an EEA entity.
This was a unique opportunity for HSBC to create an innovative solution which limited change to the existing Multi-Currency Notional Pool in London whilst enabling the use of its significant investment in global liquidity solutions.
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By creating a sub-pool in Ireland, Ricoh would be able to consolidate the cash positions for their current and future European entities in a location where non-resident entities could hold their EEA account without regulatory restrictions. A Multi-Currency Notional Pool would overlay the accounts which would allow the UK to either fund or defund the pool based on the net balance.
Regulatory changes resulting from Brexit meant that we had to find an innovative solution to accommodate our extensive M&A programme across Europe. The creation of a linked sub-pool in Ireland has enabled us to eliminate any disruption to our main London pool and to efficiently add all acquired EEA-based companies into our regional pooling structure.
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The success
HSBC has enabled Ricoh to retain a comprehensive and a streamlined liquidity solution. HSBC’s scalable and future proof solution will continue to support all Ricoh acquisitions globally.
HSBC’s solution for Ricoh has won “Best Cash Pooling Solution” at the Adam Smith Awards 2023.
