An Introduction to basware financing services Harold Bosse, Financing Services Marketing, Basware Start your presentation with a title slide. – Color of the title: Dark blue is the main color. You can use light blue to highlight words/parts of title – Feel free to change the background image. You can use other Basware brand pictures: https://baswarecorp.sharepoint.com/sites/marketing/Brand/_layouts/15/start.aspx#/POWERPOINT%20TEMPLATE%20AND%20RESOURCES/Forms/AllItems.aspx. – The white box can be scaled vertically according to the length of content.

HOW MUCH Working Capital IS LOCKED IN the SUPPLY CHAIN? Every day of DPO extension yields £16 million in cash for the Fortune 500 buyer Every day of DSO reduction yields £180 million in cash for a £65 million supplier Early payment terms can translate in a 36% return on capital for the buyer Early payment solutions can reduce DSO by 80% for suppliers 25% of all bankruptcies are related to working capital shortages 51% of CFO’s see working capital and liquidity management improvement as one of their core responsibilities Changed the template to the Solutions Space one.

the road to financial agility starts with A solid purchase-to-pay foundation Do you have visibility into spend and contractual obligations to quickly respond to business change? Are you already getting the best supplier discounts, or still suffering from chronic late payments and penalties? Do your financial systems support working capital optimisation and business growth? Are you controlling spend and optimizing working capital? Do you have visibility into spend across operations? Can you respond quickly to business change? Are you getting the best supplier discounts? But It‘s hard to manage cash flow to become finacially agile: Disparate financial systems Manual paper-based processes Poor visibility into spend across the business No shared KPIs between procurement and finance Chronic late payments, penalties and missed discounts

The FINANCIAL SUPPLY CHAIN PHYSICAL SUPPLY CHAIN ACTUAL DELIVERY OF GOODS AND SERVICES INFORMATION SUPPLY CHAIN DOCUMENTS RELATING TO THE ABOVE RFPs - Contracts POs - Confirmations ASNs - Invoices FINANCIAL SUPPLY CHAIN FINANCING AND WORKING CAPITAL

Payment friction in the supply chain Suppliers want to get their cash faster Buyers want to hold onto their cash longer Both parties want to manage risk Payment Friction Buyers want to extend DPO Suppliers want to reduce DSO

payment FRICTION calls for action 82% of buyers agree on-time payment benefits 69% of buyers would put cash to work 23% of buyers automate discount capture

What is Working Capital optimisation? Company value Operating margin Capital employed Automated & fast discount capture Direct impact on bottom line Indirect tax compliance Fixed assets Working capital Receivables Payables Payment terms Fast process supported by efficient technology Optimisation: Discount vs loan Interest vs CC Matching Payment terms Fast process supported by efficient technology Error free bills Optimisation: Discount vs Interest vs Cash

more cash for growth Every day of DPO extension yields £16 million in cash for the Fortune 500 buyer* Dynamic Discounting can work out to a 36% return on capital for the buyer 80% of suppliers would offer a discount in order to be paid early *Source: Bavelos Group **Source: Creating Payment Energy 2014

THE JOURNEY TO FINANCIAL AGILITY Working Capital Optimisation B2B Networks Purchase to Pay Automated AP THE JOURNEY TO FINANCIAL AGILITY Basware Commerce Network 1,000,000 buyers and sellers > 100 countries $750 Billion per year 100 million transactions per year Convergence of this area will fuel growth

Three core components to free up cash Networked Purchase-to-Pay Basware Commerce Network Basware Financing Services What world looks like when we’re done E-invoice is de facto Cloud is de facto Basware equals E-commerce

THE JOURNEY TO FINANCIAL AGILITY Activation Automation THE JOURNEY TO FINANCIAL AGILITY Financial value can only be generated when Automation and Activation have been successfully deployed Joint Financial and operational value IT Integration facilitate Supplier engagement and activation maximize utilization and value captured The largest chunk of value will come from the finance. But it can only be captured if the Automation and Activation value have been unlocked first. That is where Basware’s experience in onboarding suppliers becomes critical.

3 ways to improve working capital 1 2 3 Collect your receivables faster Pay your supplier later Pay your suppliers less

Source: ”Creating Payment Energy” PWC How strategic is this Working Capital optimisation? Focus Value Source: ”Creating Payment Energy” PWC

BASWARE FINANCING SERVICES Multibank B2B ePayments Payment Funding DPO DSO optimisation Dynamic Discount Basware Commerce Network Timing Discount Payment gateway Supply Chain Finance

Financial agility powered by THE WORLD’S LARGEST OPEN COMMERCE NETWORK

THE NETWORK ENABLES flexible FINANCING e-Invoices BUYERS SUPPLIERS Payments