octet presentation

Overview

People

Background

Features

Value

Generic Example

Videos

People

PEOPLE

• Founded Octet in February 2008

• Former director of National Hire Group Ltd

• Former director of Bank of Scotland subsidiaries: Western Australia Holdings Ltd, BOS International (Australia) Ltd, Capital Finance Ltd

• Past founder of Scottish Pacific Business Finance in 1988 (7th largest private Australian company between 1997 - 2000)

• Grew Scottish Pacific to aggregate revenue of $6b by 2000

• Chairman of Oxford Asia Pacific Investments

• Fellow of CPA Australia, Associate of Institute of Chartered Accountants in Australia

Clive Isenberg Founder

Founded

Scottish Pacific

Business Finance

Scottish Pacific Becomes ANZ

Largest Cash Flow Financier

Scottish Pacific Sells To

St George Bank

1988 1995 20001994

Established ANZ Institute of

Factors and Discounters

(now DIFA)

1996

Elected Chairman of World

Factoring and Invoice

Discounting Body (FCI)

PEOPLE

Peter Gammell Chairman

• Current chairman of Octet

• Current non executive of Seven West Media

• Former chief executive officer and managing director of Seven Group Holdings Ltd

• Former deputy chairman of Australian Capital Equity, Kerry Stokes investment vehicle

• Former non executive chairman of Scottish Pacific Business Finance

• Former chairman of Coates Hire

• Former director of RM Williams Holdings Ltd

• Former director of B Digital Ltd

• Former director of Castle Cairn (Financial Services) Ltd and member of IMRO in Edinburgh, Scotland

• Former director of Cairn Energy Management Ltd and Cairn Energy PLC

Background

BACKGROUND

• Octet Trading Ltd (OT) is a Hong Kong domiciled company

• OT provides a business-to-business transaction management platform

• OT licenses Financial Institutions to use the platform

• Platform is provided exclusively to licensed Financial Institutions and their respective Buyers and Sellers

• OT provides Financial Institutions with pro forma Buyer/Seller legal documentation to use or adapt

PLATFORM

Supply Chain Platform

Octet Trading Supply Chain PlatformDevelops

Financial Institutions Buyer & Seller

Grants

Access

“Octet is a platform that links businesses that have things to businesses that need things”

Licenses

Platform

BACKGROUND

• Platform requires participating parties: Buyer, Seller and their financiers

• Licenced Financial Institutions provide the supply chain and cash flow finance platform to their customers through a secure online platform

• Platform launched in February 2008

PLATFORM

Supply Chain Platform

FEATURES

Links businesses that sell to businesses that buy.Platform is a commerce enabler.

OVERVIEW

Octet Trading Platform

Feature overview of the Octet Supply Chain Financing Platform

Connection

Secure

International

Overcomes Limitations

Mobile

Built upon enterprise grade industry security standards.Ensures that Buyer, Seller and Financial Institutions have peace of mind.

Enables secure commerce for business-to-business transactions, domestically and internationally.

Including transactions between: China, Hong Kong, Taiwan, Australia, NZ, USA, Canada, Singapore, India, Japan, South East Asia and Europe

Overcomes all shortcomings, risk and limitations of traditional transaction financing.Incorporates universal acceptability and familiarity of the consumer credit card process.

Platform is fully operational on smart phones and compatible with iOS™ and Android ™.Buyers and Sellers can also connect in order to trade seamlessly.

Key Features

FEATURES

Enables Buyers and Sellers to track, validate and authorise each step of the supply chain with full visibility of all supporting documentation*

OVERVIEW

01

*including purchase order, inspection certificates, bills of lading and so forth

FEATURES

Provides a unique matching and approval system which requires member interactions from both sides of the transaction*

OVERVIEW

02

*this progresses through a set of authorising steps using digital certificates or one-time PIN technology

FEATURES

Provides a competitive & live foreign exchange feed to Buyers for each transaction*

OVERVIEW

03

*currently limited to spot rates but has the capability to support forward options

FEATURES

Supports a Seller guaranteed facility, enabling cash flow acceleration by allowing a Buyer to underwrite surplus credit limits to their customers

OVERVIEW

04

FEATURES

Incorporates an integrated Sales Ledger Financing module and a Designated Assets Financing module allowing a Buyer to provide security when required

OVERVIEW

05

FEATURES

Incorporate all the controls and processes that a Financial Institution requires, including fraud or credit risk, in order to finance the working capital transactions of a client

OVERVIEW

Octet Trading Platform

Core platform philosophy

Controls and Processes

Eliminate Interference

Validation &

Verification

Keep the Financial Institution at a distance to eliminate interference in the trade process of the Buyer and Seller

Ensure that the four parties correctly confirm key phases of the trading transaction, reducing risk of financing options

Value

VALUE BUYERS

Value Proposition - Buyers

SPEED Accelerates cash flow cycle

LANGUAGE Multilingual supply chain procurement tool

TIME Shortening time to complete documentary trade cycle

CREDIT CARD Repay short term loan with existing credit card facility

VALUE BUYERS

Value Proposition - Buyers

FOREX Live foreign exchange feeds at transaction time

VISIBILITY Storage and visibility of all original trade source documentation

DEPOSITS Fund deposits on international purchase orders

CREDIT LINE Utilise surplus credit facility to fund their customers

VALUE SELLERS

Value Proposition - Sellers

Enables Buyer to pay for transactions using their already existing credit cards (Visa, MasterCard and American Express), without the Seller requiring merchant services or incurring a merchant fee.Accept Credit Cards

Buyer & SellerRelationship

Paid Faster

The Seller no longer needs to be the credit provider and debt collector which enhances and strengthens the sales relationship between the Buyer and Seller.

Buyers can pay Sellers once an order is checked and released for shipping. Buyers can be provided additional credit facilities, increasing their purchasing power.

Sellers can free up encumbered assets where Buyers are offered open account terms. Buyers can access a mixture of credit products, including 60 days interest-free credit and further 60 days for repayment.Open Account Terms

Reduce Credit Sale RiskOctet addresses and resolves buyer concentration risk concerns in the Seller ’s books as well as dispute issues and debt defaults.

VALUE SELLERS

Value Proposition - Sellers

Closed Community

Reduce Costs

Octet enables secure and efficient transactions through a ‘closed community’, ensuring a secure web-based trading network.

Octet streamlines the collections process which reduces the Seller’s debtor administration and risk for bad debts.

Sellers have full visibility and transparency on all phases in the transaction process, including associated documentation and are able to claim payment at any time.Workflow Efficiency

MultilingualOctet is a multilingual platform which greatly reduces associated risks of miscommunication.

Octet enables Financial Institution members to award reward points to Buyers on all purchases, which encourages increased spending with Sellers.Earn Reward Points

EXAMPLE CALTEX as Buyer and Seller

Octet enables Company X as a Seller to accelerate DSO by allowing

Company X to underwrite surplus credit limits to their customers. In

addition, Octet provides Company X as a Buyer with an unsecured facility to

push out DPO. $1.5M

$2.5M

$1.0M

$3.0M

$1.5M

$4.0M

$2.5M

$1.0M

$2.0M

$1.0M

Limit $20M

Customers

Seller

Buyer

Limit $10M

$3.0M

$2.5M

$1.5M

$3.0M

Suppliers

Company X

VALUE BUYERS

Value Proposition – Company X as a Buyer

Off Balance Sheet Octet provides unsecured credit which enables Company X to keep their Debt/Equity and Leverage ratios low

Early Settlement Octet enables Company X to pay their suppliers earlier through 60 interest free days to make an arbitrage on the fee charged through a higher discount

Flexibility Octet allows Company X to use an Octet unsecured facility, an existing credit card, the utilization of Company X own funds via their bank or a combination.

VALUE SELLERS

Value Proposition – Company X as a Seller

Closed Community

Reduce Costs

Octet enables secure and efficient transactions through a ‘closed community’, ensuring a secure web-based trading network.

Octet streamlines the collections process which reduces the Company X’ debtor administration and risk for bad debts.

Company X has full visibility and transparency on all phases in the transaction process, including associated documentation and are able to claim payment at any time.Workflow Efficiency

Additional RevenueOctet may provide additional unsecured funds to Company X’ customers allowing them to purchase more from Company X

Octet enables Company X to allocate Octet funds to designated customer for guaranteed payment on day x, which further reduces Days Working Capital.Accelerate DSO

Generic Example

EXAMPLE

Negotiate Claim & AuthoriseEnrolment SettlementClosed Community

Buyer and Seller apply and become members of the

Octet Trading Platform to allow seamless and secure trade

EXAMPLE

Negotiate Claim & AuthoriseEnrolment SettlementClosed Community

Buyer and Seller are connected in a Closed Community

where all parties are known ensuring a secure trading network

EXAMPLE

Negotiate Claim & AuthoriseEnrolment SettlementClosed Community

Buyer and Seller negotiate a transaction by validating,

verifying and confirming a purchase order

EXAMPLE

Negotiate Claim & AuthoriseEnrolment SettlementClosed Community

Seller requests payment through the platform and

Buyer securely authorises payment

EXAMPLE

Negotiate Claim & AuthoriseEnrolment SettlementClosed Community

Buyer makes payment through the platform using any source of

funds, including existing credit card or trade facility.

Seller receives funds through settlement process.

* Zero Limit Facilities are funded through Buyer credit card payments

*

Videos

Meet James Meet Anna

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