1. FINANCING FOR SMALL- AND MEDIUM SIZED COMPANIES Date Presentation for

2. TABLE OF CONTENTS I.What is Factoring II.Who is KMU Factoring AG III.Contact

3. WHAT IS FACTORING?

4. HOW DOES IT WORK AND WHAT ARE THE ADVANTAGES?  The entrepreneur (“Client”) delivers a service or supplies a product and receives 90% of the gross invoice amount from KMU Factoring AG as soon as the service or product is delivered; the remaining 10% will be transferred upon reception of the payment for the invoice  As a result, we finance good receivables for completed service or delivered goods to solid customers (“Customers”)  KMU Factoring AG suffers credit losses or approx. CHF 150’000 per year on a total volume of CHF 300 million, i.e., less than 0.05% (which is covered by the credit insurance company) -> Solid Customers  The credit notes (incl. year-end bonus, discounts, deductions etc.) amount to approx. 3% -> Good Products and Services

5. HOW DOES FACTORING WORK? ClientCustomer KMU Factoring AG (2) (3) (4) (5) (6) (1) (1)Delivery with a maximum of 90 days payment term (2)Delivery of invoice data in excel and invoice copies in pdf to KMU Factoring AG (3)Financing of 90% of the gross invoice amount (paid next day) (4)Receivables management in co-operation with Client (5)Payment of invoice by your Customer to KMU Factoring AG (6)Transfer remaining 10% by KMU Factoring AG (next day)

6. WHO IS KMU FACTORING AG?

7. KMU Factoring AG Pfäffikon SZ, Switzerland Factoring Schweiz AG Würenlingen, Switzerland A.B.S. Global Factoring AG Wiesbaden, Germany 33.2%66.8% Urs van Stiphout Thorsten Klindworth Markus Hankammer Founded 2003 Largest independent factoring company in Switzerland 95 clients 17 employees Wiesbaden, Germany Founded in 1996 and profitable every year since then Largest independent factoring company in Germany Financed turnover in 2015: EUR 1.3 billion 40 employees 160 clients 100% Würenligen, Switzerland Holding company without operating business Only participation: KMU Factoring AG

8. GROUP COMPANIES IN SCANDINAVIA AND AUSTRIA A.B.S. Factoring AB (Sweden) Established in 2013 in Stockholm CEO and management own 40%; remaining 60% owned by A.B.S. Global Factoring AG Offers full service factoring in Scandinavia EUR 50 million financed turnover; 4 employees A.B.S. Factoring AG (Austria) End of August 2015, A.B.S. Global Factoring AG signed the agreement to purchase 100% of the outstanding shares of the Austrian bank VB Factoring Bank AG (new name A.B.S. Factoring AG) A.B.S. Factoring AG is the largest privately-owned and non-bank-affiliated provider of quality full-service factoring in Austria EUR 1 billion financed turnover; 42 employees and 170 clients Our group offers full service factoring in Germany, Austria, Switzerland and Scandinavia with a financed turnover of close to EUR 2 billion

9. WHAT DO WE OFFER? Receivables financing In CHF, EUR, USD, GBP For domestic as well as international receivables (mainly OECD-countries, other countries on request) Protection against customers’ losses (insolvency and payment delay) In cooperation with Euler Hermes; other insurers on request Receivables management Standard reminding process, usually 10 days, 20 days and 30 days Receivables management as a service to our client – our client can influence our reminding process (e.g., suspension of reminders in justified cases; as KMU Factoring AG does not have credit risk, we only do collection after receiving the approval from our client)

10. WHAT ARE THE ADVANTAGES? Immediate liquidity Taking advantage of growth opportunities Congruent financing of turnover Taking advantage of discounts for early payment to suppliers Providing customers with appropriate payment terms (e.g., seasonal) Reduction of liabilities against suppliers or banks, to improve financial ratios Protection against defaults Better protection against customers’ defaults Service Optimization of resources Professional receivable management, freeing up internal resources Effective receivables management, leading to shorter payment behavior Concentration on core activity No complex interfaces

11. HOW MUCH DOES IT COST? The costs depend on various factors, including: Customers’ and receivables’ structure (concentration, geography) Payment behavior Type of product / service (risk of complaints, warrantees, etc.) Credit standing of Client Turnover As a guidance, the factoring fee starts at 0.60% and the interest cost at Libor + 4.00% Based on 30 days payment terms, this amounts to 0.93% of the financed invoice amount Based on 60 days payment terms, this amounts to 1.26% of the financed invoice amount Based on 90 days payment terms, this amounts to 1.60% of the financed invoice amount To this cost, you have to add the credit insurance cost (through your own policy)

12. WHO ARE OUR CLIENTS? Swiss or European companies with a need for liquidity. This need for liquidity can have various reasons:  Growth  Longer payment terms for customers  Discounts on suppliers  Reduction of liabilities against suppliers or banks, to improve financial ratios  M&A Turnover from CHF 500’000.- to approx. CHF 100 million Main business with corporate customers or public entities (B2B) (we do not finance receivables against private consumers) Diversified customer base Largest part of customers in OECD-countries

13. WHERE ARE OUR CLIENTS? USA Austria Germany Monaco Switzerland: 88 International: 7 TOTAL95

14. CLIENT REQUIREMENTS Clear and reliable business processes and sustainable business model Good products or services, with little quality risk But:  No Covenants  No financial ratios (e.g., cash flow multiple, equity ratio, etc.)  KMU Factoring AG finances based on the quality of the services or products and the quality of your customers!

15. DOCUMENTS REQUIRED TO PROCEED To make a concrete, non-binding offer, we need the following information:  Total turnover  Turnover by customer  Latest financial statements  List of open receivables (most recent) If you accept the offer (non-binding), then we need the following additional information to prepare our internal documentation for approval by our Credit Committee:  Financial statements of most recent 2 fiscal years  Intermediate accounts for 2015  Business plan or budget for 2016  List of open receivables (most recent)  List of open payables (most recent)  List of bank relationships  List of shareholders / beneficial owners  Sample contract and process overview (purchase order, confirmation, delivery documents, invoice, etc.)

16. CONTACT

17. STEPHANIE HONEGGER Head Marketing & Sales Tel: +41 55 556 40 40 Fax: +41 55 556 40 01 Mobil: +41 79 404 13 28 honegger@kmufactoring.ch KMU FACTORING AG Huobstrasse 3 CH- 8808 Pfäffikon SZ www.kmufactoring.ch URS VAN STIPHOUT CEO Tel: +41 55 556 40 10 Fax: +41 55 556 40 01 Mobil: +41 76 578 92 29 vanstiphout@kmufactoring.ch YOUR CONTACT