1. E-Invoicing Benefits for involved parties 1Confidential. All rights reserved. Halcom d.d.

2. Why E-Invoices? Electronic invoicing, an automated way for suppliers and buyers to send, process, and collect invoices, reduces the cost per invoice between 70% to 75%. EC research identified the average processing cost of a paper invoice across Europe to be approximately €30, meaning a cost reduction of min. € 21 per invoice can be achieved. (Source: SEPA: potential benefits at stake Capgemini research, 2011) 2 Confidential. All rights reserved. Halcom d.d.

3. Bill payment in Serbia today Association of Serbian banks, 2012 Serbia - over 12 million invoices issued monthly for: Telekom services – approx. 5,5-6 million invoices per month “Energy” services – 3 million invoices per month Utilities - 2 million invoices per month Insurance (car ins., life ins.) Settlement methods for issued invoices: Standing order < 2% E-banking 5-6% Cash at Post Office or Bank counter > 90+% Confidential. All rights reserved. Halcom d.d.3

4. 4 Benefits for Invoice Issuers (B2C, B2B) improved efficiencies fewer mistakes, automatic reconciliation, more invoices paid on time, shorter invoice processing times reduced customer complaints call volumes from e-invoice adopters lower than from paper invoice users increased control & cash managment ability to optimize cash flow delivery report reduced costs of invoice delivery eliminate paper, printing, packaging, postal services, delay, no lost mail, no paper archiving (once the legal framework is set) Confidential. All rights reserved. Halcom d.d.

5. 5 Benefits for Invoice Recipient (B2B) reduced costs no manual sorting, no scanning, no data entry, fewer mistakes, shorter invoice processing times eliminating billing errors billing errors (estimated at 1- 5% of spend), eliminate duplicate invoices gain internal processes efficiency invoice approval and payment automate administrative processes archived e-documents easily accessible improved cash flow Confidential. All rights reserved. Halcom d.d.

6. 6 Benefits for Consumers (B2C) from invoice to payment with a single click fast and easy, no manual data entry, no errors e-bills can be paid anywhere & anytime home, office, on the street, abroad even after banks‘ working hours with mobile payments and portal even for non e-bank users DD with confirmation as simple as DD but with more control better overview of e-bills archived electronic documents easy to find, sort and group Confidential. All rights reserved. Halcom d.d.

7. Why banking channels? Benefits for the banks 7Confidential. All rights reserved. Halcom d.d.

8. 8 E-Invoices in E-Banking Client Network every corporation and most adults have at least one bank account unique mail address for identification of counterparties (IBAN) > 98% of companies are rather small (produce 60% of invoices) cannot afford to accommodate a variety of standards cannot afford to support connectivity to numerous counterparties cannot afford to make large investments into accounting/ERP systems can only be brought in via E-Banks waiting for banks to provide the simplest tools and interfaces Confidential. All rights reserved. Halcom d.d.

9. Leveraging existing assets 9Confidential. All rights reserved. Halcom d.d.

10. 10 Strong reliable brand Existing corporate and retail clients Trusted Network Leverage existing e-bank infrastructure gathers corporate (STP) and retail users safe and reliable infrastructure no spam, no viruses Security Leverage existing e-bank authentication and authorisation methods Leverage encryption and digital signature already embedded in e-banking Software needed familiar e-banking tools upgraded with e-invoices average use of E-Bank (3 times per day) - corporations Confidential. All rights reserved. Halcom d.d. Prerequisites 1/2

11. 11 Billing presentment linked to bill payment E-invoices payments within E-bank one click from E-Invoice to the payment Other success factors Short time-to-market Most cost-efficient approach Confidential. All rights reserved. Halcom d.d. Prerequisites 2/2

12. Stakeholders and process overview 12Confidential. All rights reserved. Halcom d.d.

13. How does it work? 13 Bank DC Bank DC Bank DC Corporates Consumers DOS- TAVA PRI- JAVA DOS- TAVA 21 banks E-invoice WEB portal PRI- JAVA DOS- TAVA E-Bank user E-invoice portal user Confidential. All rights reserved. Halcom d.d.

14. E-Invoices issuing and receiving options Automated issuing and receiving through existing banking channels 14 Confidential. All rights reserved. Halcom d.d.

15. 15 E-Invoice issuing and receiving for large companies… Accounting Application / ERP Commercial bank Corporate Confidential. All rights reserved. Halcom d.d. Commercial bank Corporate/B2B Accounting Application / ERP B2B

16. 16 E-Invoice issuing and receiving for SME‘s Confidential. All rights reserved. Halcom d.d.

17. Copyright Halcom 17 E-banking – DD, e-bank, mobile E-Invoice WEB portal – DD, mobile Consumers Receiving and paying invoices

18. 18 E-Invoice portal & mobile payments E-Invoices for non e-bank users Confidential. All rights reserved. Halcom d.d.

19. E-Invoicing in Serbia Technical overview 19 Confidential. All rights reserved. Halcom d.d.

20. System architecture Complete system overview 20 Confidential. All rights reserved. Halcom d.d.

21. Implementation Requirements 21 Confidential. All rights reserved. Halcom d.d.

22. Implementation requirements No additional development for banks B2B issuers, recipients (Hal E-Bank) via Hal E-Bank/Personal, Corporate B2C recipients (Hal E-Bank) via Hal E-Bank/Web B2C recipients (non E-Bank) via Hal M-Payments/Portal Development on banks side needed for B2C recipients (non Hal E-Bank) using existing Retail E-Bank solution 22 Confidential. All rights reserved. Halcom d.d.

23. E-Invoice issuing options 23 Small Issuer e.g. Holcim Medium Issuer e.g. Diners Club Large issuer e.g. EDB, SBB Manual preparation within Hal E-Bank Manual import/export using Hal E-Bank/Personal, Corporate Automated distribution via Hal E-Bank/B2B Automated import/sending – receiving/export Hal E-Invoices/Issuer (converting existing flat or XML file to E-Invoice) Confidential. All rights reserved. Halcom d.d.

24. Implementation requirements B2B Issuers via Hal E-Bank 24 Bank Installing new version of Hal E-Bank/Admin Adding new permissions to clients (server script performed by Halcom) Providing new version of Hal E-Bank/Personal, Corporate E-Invoice subscription management Issuers Installing new version of Hal E-Bank/Personal, Corporate, B2B E-Invoice preparation based on issuer's size Halcom Providing support for Hal E-Bank users Providing support at generating syntactically correct XMLs (validation, technical advices, Hal E-Bank installations) Mutual testing with the bank and issuers Confidential. All rights reserved. Halcom d.d.

25. Implementation requirements B2B Recipients via Hal E-Bank 25 Bank Adding new permissions to clients (can be done via server script) Recipients Installing new version of Hal E-Bank/Personal, Corporate, B2B Subscribing to E-Invoices Issuers E-Subscription handling support Confidential. All rights reserved. Halcom d.d.

26. B2C recipients - Retail Gateway (non Hal E-Bank) 26 Bank Providing WebService for routing (eInvoice Recipient) Connectivity to data retrieving WebServices (RetailGateway) Connectivity to subscription WebServices (IssuerReg, SubscriptReg) Recipients Subscribing to E-Invoices Halcom Providing support for integration with bank infrastructure Mutual testing with the bank and issuers or recipients Confidential. All rights reserved. Halcom d.d.

27. B2C recipients Hal M-Payments/Portal 27 Bank Providing WebService for online payments (mpayments-bank) Recipients Subscribing to Portal Halcom Halcom provides Portal Confidential. All rights reserved. Halcom d.d.

28. B2C recipients (non Hal E-Bank) Retail Gateway WebServices 28 Confidential. All rights reserved. Halcom d.d.

29. Getting the correct XML Invoice 29 Confidential. All rights reserved. Halcom d.d.

30. Best practices from Slovenia Halcom will provide: E-invoice specifications based on ISO 20022 Documentation for Issuers XSD schemes for all documents supported Standalone validation software for XML files (using XSD schemes) Technical support for banks and issuers 30 Confidential. All rights reserved. Halcom d.d.

31. Simplifying E-Invoice issuing 31 Confidential. All rights reserved. Halcom d.d.

32. Simplifying integration for issuers Halcom provides: Converters for Hal E-Bank Hal E-Issuer 32 Confidential. All rights reserved. Halcom d.d.

33. Converters for Hal E-Bank Standard converters for Importing ISO XML E-Invoice without envelope Special converters for existing Mpayment issuers 33 Confidential. All rights reserved. Halcom d.d.

34. Hal E-Issuer Infrastructure for mass E-Invoice issuing Server based infrastructure for complete E-Invoice generation: Creating envelopes Creating E-Invoices Creating / Adding PDF (optional) Signing (using HSM module) High speed Several certificates possible Multiple output directions (E-Bank, E-Archive, email, …) 34 Confidential. All rights reserved. Halcom d.d.

35. Hal E-Issuer 35 Confidential. All rights reserved. Halcom d.d.

36. How does it work? Simple archiving >> without paper Copyright Halcom 36 E-bančni kanal Issuer ERP E-bank for companies ERP