supply chain finance - european banking association

© 2013 PrimeRevenue, Inc. Confidential, distribution with permission only

Supply Chain Financing The PrimeRevenue Way

Brussels, 12th September 2013 Matthew Burns, Business Development Manager, EMEA

Confidential, distribution with permission only © 2013 PrimeRevenue, Inc. 2

DESIGN PROGRAMS

ANALYZE WORKING CAPITAL

EXECUTE WORKING CAPITAL

RESULTS

PROVIDE COLLABORATION

TOOLS

What we do & how we deliver

2

PRIMEREVENUE PROVIDES A SUITE OF SOLUTIONS TO UNLOCK LIQUIDITY & WORKING CAPITAL IN THE SUPPLY CHAIN

Optimise the Financial Supply Chain to dramatically improve Working Capital

efficiency

We help to unlock trapped cash on both sides of your supply chain

We improve Working Capital

by increasing payment terms

for Buyers

We improve Liquidity by

reducing payment terms for Suppliers BUYER SUPPLIER


Why banks are looking at Supply Chain Finance?

Uncommitted Ability to re-price

Short tenors Good margins

Limited operations Almost riskless Access to buyer

Access to suppliers “Sticky Business”

CFO Message Strategic

Open Account Offering Cross Sell

Competition Hot topic

Working Capital Offering

VALUE TO FUNDER? WHY SELL IT?


Why are we leading the Supply Chain Finance Market?

4

1 Our organization (sales & marketing, legal, software development) is 100% focused only on Supply Chain Finance.

2 We are true multi-banking platform and have no restrictions in terms of jurisdictions, currencies, credit exposure.

3 We have unique solutions used by our clients to analyze spend and onboard suppliers.

4 We are the “only” alternative compared to a bank Supply Chain Finance solution for clients


Options to enter into the Supply Chain Finance Market

A B C

Setup your own SCF platform and operations

Participate in Bank SCF Program

Fund on the OpenSCi Platform


+

-

Setup your own SCF platform and operations

A Platform

§  Direct Relationship with Buyer and Supplier §  Full Control in terms of Collection and Credit

Risk §  Positioning as “Lead Bank” in Supply Chain

Finance §  Full discount fee from suppliers

§  Millions of USD Expenses not only IT, but operations, sales, legal, etc.

§  Full KYC checks required §  Full onboarding required §  Requires months/years to be operational



§  No direct relationship to Buyer, Supplier §  Relying on first tier bank asset manager

to collect monies upon buyer default §  No Fee transparency, Participation Fee §  Mostly undisclosed to the Buyer §  Position as ‘second-tier bank‘

+ §  No discussion required in terms of legal agreements with Buyer/Supplier

§  No KYC checks required

-

Platform

Participate in Bank SCF Program

B



Fund on the OpenSCi Platform

C

§  KYC Checks required §  Review of legal agreements (jurisdictions) §  Operational and technical requirements

+ §  Direct relationship with Buyer & Supplier §  Positioning as ‘your SCF facility’ §  Full transparency on pricing, no

participation fee §  Disclosed to Buyer §  Money flows directly to you §  Still the possibility for a bank to

syndicate

-

Platform

PrimeRevenue Platform



The Best Option?

Why is C the best option?

Fast and cost efficient market approach to

SCF

Direct Buyer relationship and discussion on

pricing, credit limits

Full transparency on pricing and no hidden

participation fees

Direct legal agreements with

Suppliers

You can use your own platform, participate and fund on OpenSCi

We have one of the largest number of SCF

programs you can choose from

Our funding partners generated more than

USD 75m on OpenSCi in 2012

We generate on avg. 6 new SCF programs per year for our partners


Additional Benefits

What are additional benefits?

Funding directly from Bank to Suppliers and

Buyer to Bank, not through PrimeRevenue

Tested and approved by over 40 funders (SOC-1

Audit)

KYC information collected by

PrimeRevenue as requested by Bank

No Software installation on bank

side


Three Challenges in SCF – How to solve it?

CHALLENGE 1 § How much can I increase payment terms?

§ Which suppliers should I consider? § How much cash flow can I generate? § How can I communicate it internally?

CHALLENGE 2 § How can I make sure that my facility is in place in the coming years?

§ How can I be independent from funders?

§ How can minimize pricing?

CHALLENGE 3 § How can educate my procurement team?

§ How can I streamline and maximize supplier onboarding?

§ Which solution gives me a customized messaging to my trading partners?


OpenSCi Overview

Educating stakeholders and onboarding your trading partners

Detailed Analysis of your Spend and Working Capital

Potential

Improving working capital for buyers

while reducing payment terms for

suppliers

Ability to reduce payment terms

without customers approving the

invoices


Funder §  PrimeRevenue sells, implements and supports the solution §  Bank funds the buyer program §  PrimeRevenue charges basis points to suppliers

Co-Marketing §  PR and Partner Develop a Go-to-Market Plan §  Partner and PrimeRevenue co-sell the solution §  PrimeRevenue implements and supports the solution §  PrimeRevenue charges basis points to suppliers

Reseller/White Labeling §  Partner sells, implements and supports the solution §  PrimeRevenue provides support to Partner §  A number of different commercial models depending on the

partner’s goals and objectives and services requirements

1

2

3

Partnership Opportunities


$3bn 2010

$4bn

2011

$5bn+

2012

$1bn 2008

$2bn 2009

PrimeRevenue Snapshot SUPPLIERS PROCESSED VOLUME FUNDERS CLIENTS/BUYERS NUMBER OF

TRANSACTIONS/MONTH

Transactions in 40 countries Available in 17 currencies No limitations in terms of jurisdictions, currencies, suppliers, invoices

Atlanta (HQ)

Paris London

Frankfurt Prague

Melbourne Hong Kong

Europe 2012 2012

Mon

thly

Tra

nsac

tion

s

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