Supply Chain Finance seen as key element of working capital strategy
BLOOMINGTON, Minn., Aug 11, 2009 (BUSINESS WIRE) -- The Toro Company (NYSE: TTC), a leading worldwide provider of turf and landscape maintenance equipment and precision irrigation systems, has deployed PrimeRevenue's technology and services with financing provided by Wells Fargo HSBC Trade Bank (NYSE: WFC) to power Toro's Supply Chain Finance ("SCF") program. The SCF program is an important component in the company's action plan to reduce working capital, improve its cash conversion cycle, and deliver increased shareholder value.

Through the new platform, Toro suppliers will gain online visibility to their Toro-generated receivables in advance of their due date, and the option to sell receivables for cash in advance of the original due date - with financing provided by Wells Fargo. With a click of the mouse, enabled Toro suppliers gain access to on-demand advance payment of their receivables at financing rates based on Toro's cost of financing. For most Toro suppliers, SCF financing will be a fraction of what they pay with alternative invoice discounting structures. The program, launched in July 2009, is live and in production with select suppliers in the United States.

"This program is a key element in our overall working capital strategy," said Tom Larson, vice president and treasurer at Toro. "We're expecting PrimeRevenue's SCF platform to help us realize our objectives while giving our suppliers an extremely attractive on-demand financing facility based on Toro's investment-grade cost of financing." Added Cabrini Brandl, director of sourcing: "Particularly in today's economic environment, this represents a tremendous win-win opportunity for us and our suppliers. Initial interest has been strong from those suppliers who value access to a liquidity facility in a tough economic environment, and we expect that we will have more suppliers ask to get on board."

Rohan Kalbag, regional vice president at Wells Fargo HSBC Trade Bank, said: "Wells Fargo looks forward to working with Toro, its suppliers and PrimeRevenue in delivering a valuable on-demand financing facility. This Supply Chain Finance program, like others, reflects Wells Fargo's commitment to providing innovative credit solutions to its corporate customers and their valued supply chain partners."

Joe Weisskopf, vice president of North American sales at PrimeRevenue said: "We're seeing more world-class companies like Toro deploy SCF solutions to their supply base because, in today's economy, SCF makes a great deal of sense. It helps companies reduce working capital while at the same time giving their suppliers access to investment-grade credit to address their own cash flow needs. We welcome Toro and their suppliers to a growing collection of supply chain communities who see SCF as a must-have response in today's period of economic uncertainty."

About The Toro Company

The Toro Company (NYSE: TTC) is a leading worldwide provider of turf and landscape maintenance equipment, and precision irrigation systems. With sales of nearly $1.9 billion in fiscal 2008, Toro's global presence extends to more than 140 countries through its reputation of world-class service, innovation and turf expertise. Since 1914, the company has built a tradition of excellence around a number of strong brands to help customers care for golf courses, sports fields, public green spaces, commercial and residential properties, and agricultural fields. More information is available at www.thetorocompany.com.

About PrimeRevenue, Inc.

PrimeRevenue's leading global Supply Chain Finance (SCF) platform and solutions enable dramatic new working capital efficiencies for the benefit of buyers and their suppliers. PrimeRevenue achieves this through the delivery of secure, robust, industry-leading technology, a global community of the world's most innovative financial institutions and partners, and flexible working capital solutions and advice. Companies are relying on SCF deployments powered by PrimeRevenue to increase profitability, and forge stronger trading partner relationships. Headquartered in Atlanta, Georgia, PrimeRevenue has offices and customers throughout the world. For more information, visit www.primerevenue.com.

About Wells Fargo

Wells Fargo & Company is a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores, 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally.

SOURCE: The Toro Company

The Toro Company
Investor Relations
John Wright, 952-887-8865
Director, Investor Relations
invest@toro.com
or
Media Relations
Branden Happel, 952-887-8930
Manager, Public Relations
pr@toro.com
or
PrimeRevenue
Peter Lugli, 678-904-7132
Vice President, Marketing and Global Program Management
pr@primerevenue.com