1. Financing
& Reporting
Case Study:
C2P - NGDATA
Jürgen Ingels
Founder & CFO
Oct. 2012

2. Jürgen Ingels - Background
 General:
o 16 March 1971
o Married & 2 kids
 Education:
o Master in Political and Social Sciences
o MBA at the University of Antwerp
o Bachelor Industrial Engineer (KIHO)
 Career:
o Founder, Managing Director & CFO of Clear2Pay
o Founder NG Data
o Board chairman of CityMesh
o Board member of different companies: Projective, Enqio, Itineris, Rightbrain
o Member of investment committee of Vinnof (PMV) & Sniper investment
o Co - President Tech Tour – French Benelux 2012

3. 1. Corporate Introduction
Clear2Pay

4. Company History
PAYMENTS VALUE CONTINUED
CHAIN EXTENDED GROWTH CONTINUED EXPANSION
2003 2006 2009
OPERATIONAL
START
INTERNATIONAL CAPITAL GLOBAL
2001 OPF LAUNCHED EXPANSION INVESTOR ROLL-OUT
2004 2007 2010
2002 2005 2008 2011
FIRST COMMERCIAL OPF CONFIRMED RAPID CUSTOMER KICK-OFF UNIFIED PAYMENTS
SUCCESS ADOPTION OPEN TEST
PLATFORM
DEVELOPMENT

5. Clear2Pay - Open Payment Framework
E
X
T
E
R
N
A
L
I
N
T
E
R
N
A
L

6. Unified Payments for a Diversified World
Unified Product and Service Offering
across the payments spectrum
Consulting Open Test
Platform
Open
Open Card
Payment
System
Framework

7. Global Company with Local Expertise
World-Class Operation
Across more than 100 countries Strategising Globally Over 700 customers
The world’s local payment vendor Developing Regionally
+1,300 staff worldwide Operating 22 offices in 13 countries

8. Clear2pay Key clients
Singapore

9. Strong Growth - Strong Shareholders

10. 2. Corporate Introduction
NGDATA

11. A Next Generation Customer Intelligence Company
 Founded in 2009
 Experienced Management team: Expertise in Data Management & Apache Hadoop Big Data
ecosystem
 Funded ING, VCs and Angels
 HQ in Belgium, offices in San Fran & NYC
 Delivered Lily 1.3: 8 releases and counting
 Marquee customers in Banking, Retail & News/Media

12. Driving Customer Loyalty … Customer intelligence at technology companies
Decisions (=
Analysis, Insights, Learn, Acti
on) within less than 0.1
second
360
streams Social
Total Data: a combination of
internal and external data –
aggregated in one platform
Operations context
Enterprise

13. The Enterprise Reality Today: Not capitalizing on massive customer data …
Limited Customer Intelligence leads to moderate results
Fragmented Data: single (or limited)
source data - various silos of data –
limited customer overview…
60
streams Social
Operations context
Enterprise

14. With Lily: 360 Degree Customer Intelligence
Makes Big Data actionable to drive outcomes …
Maximized Customer Intelligence leads to results and performance
Sales Intelligence
360
streams Social
Operations context
Enterprise

15. Summary of Key Differentiators
Consumer database: 360 Unique
Continuous machine learning
degree consumer view indexing, search, retrieval
Consumer apps such as
Schema flexibility & data
SDK for building custom apps recommendations & reverse Enterprise friendly platform
variation
segmentation

16. Reference users
Thousands of downloads per month

17. NGDATA In Action: Mobile Wallet for Banks
Personalized offers via deep consumer intelligence
Personalized Offers 360
Consumer Data
in-store purchase: 298$ 4/2/12
web visit: sweaters 5/7/11
points withdrawal: 250$ 6/9/12
CC used: 125$ @ location
Liked “Basket” group
visit Merchant Offers
Store purchase
Context Clickstreams Social Enterprise Operations Operations
Bank Merchant
Consumer
Location
Merchant Profiles
(loyalty cards)

18. 3. Fundraising
Understanding
the do’s and dont’s

20. The Top 10 lies told by Entrepreneurs
 Our projections are conservative
 (A well know and reputable market research firm) says our market will be $50
billion in 2015
 (A fortune Top 50 company name) is going to sign our purchase order next
week
 Key employees have committed to join us as soon as we get funded
 No one is doing what we are doing
 No one can do what we are doing
 Hurry because several other VC’s are interested
 (A fortune Top 50 company name) is too bil/dumb/slow to be a threat for us
 We have a proven management team
 All we have to do is get 1% of the market

21. The Top 10 lies told by VC’s
 I liked you company but my partners didn’t
 If you get a lead investor, we will follow
 We are all in the same boat (but we sit priveliged in the lifeboat)
 Show us some traction and we will invest
 We love to co-invest with other venture capitalists
 We are investing in your team
 I have lots of bandwidth to dedicate to your company
 This is a vanilla term sheet
 We can open doors for you at our client companies
 We like early-stage investing

22. Each other's perception
VC’s think entrepreneurs Entrepreneurs think VC’s
 Are arrogant, young and egocentric  Are arrogant, inexperienced & egocentric
 Are stubborn and don’t listen  Are a necessary evil
 Forget that they would not be where  Are heavily overpaid and somehow believe
they are without the money of the VC themselves that the earn this.
 Are obsessed with valuation and  Are Risk-adverse and play with other people’s
dilution money
 Are overly optimistic  Think they can make a difference
 Are not good at giving appreciation  Lack operational experience
If the company is a success, it is an
accomplishment of themselves and  Are never there but always feel the need to
they had to give up way to much for meddle
their stock
If the company is a failure, the VC is to  Are not capable of contributing added value
blame because he does not understand
the business
 Are eager for power without taking any
responsibility

24. General preparation
 Study and compare other business models used in your sector (Gross
margins, R&D, G&A, S&M, contribution)
 Prepare a slide deck of 15 pages – never show a whole business plan on slide
 Make sure you can realize a growing bruto margin. If you can’t, don’t look for VC’s
 Vc’s spend more time on analyzing numbers then reading your business plan. So provide
detailled and correct numbers !
 Present ambitious numbers but be able to defend them
 Don’t make a financial plan for more then 3 years
 “What you see is what you get” – Avoid window dressing & R&D activation
 Prepare as of day 1 a detailled
dataroom with all official documents
(legal, financial, operational)
given a possible due diligence
 Hire top management to assist
negociations

25. Choice of VC
 Select a VC and don’t be selected. Select one with a broad network
 Send a teaser of max 3 slides and keep some points open. This will make them curious
and will make them contact you
 Organise a follow up via mail and contact them on different moments
 Realise that Belgian VC’s are relatively young and unexperienced. So don’t hesitate to go
abroad; go to US / UK and take the initative to contact them. Don’t be modest
 Study the companies a potential investing VC has invested in. You can also contact them
and ask for their relation with a particular VC
 Choose a VC who can realize added value for your company. Make sure they can bring
business on board
 Ask for one investment manager of the VC company to be the contact person during
the whole process. Make sure you have directors who have experinece with this investing
process
 Create “buzz” and sell your company – VC’s know each other and talk about opportunities.

26. Legal structure
 Chose a laywer with experience in VC contracts. Avoid others.
 Combine a capital raise with free investor warrants. VC’s don’t like loosing money
 Avoid complex legal structures who will be discussion points in case of a merger /
acquisition, Align the interests of the VC and your own company / founders.
 Avoid different types of shares (blocking majorities)
 Try to get different VC’s on your board so they can entertain each other
 Negociate an option with a yearly and fix return on a certain number of shares of the VC
 Don’t accept any anti-dillition protection.
You will neigther get a present of the VC
 During negocations, include 10% as SOP
and make sure the number holds
 Avoid partial payment of shares or funding
in different steps. These will only delay
the business plan and will allow the
VC to take a “second look”

28. The process
 Take control over the whole process
 Never present alone. Go with a team and let eveybody speak (no ego’s)
 Never give any kind of exclusivity.
Negociate with 2 VC’s untill the end and make them compete
 Tell the truth and be honest to VC’s
 Know that company valuations aren’t an exact science
 Make sure the VC doesn’t sqeeze you when the company is short in cash
 Publish press articles during the fundraising process
“if it is on the news, it must be good”
 Make sure you have enough people available to prepare and participate in the
discussions

30. Post fund raising
 Don’t burn your cash faster then initally calculated.
If you are short, the VC wil present the bill
 Set up direct communication lines with the VC and bring bad news immediately
 Make the VC work. You can expect certain tasks to be executed (studies, market
research, analysis of competitors, ...). Use the network of the VC
 Make one reporting tool for all VC’s and avoid send different information to each
 Send your cash position on a regular basis
 VC’s like monthly weighted and unweighted sales pipeline
 Never forget that VC’s are not joining for charity

31. 4. Reporting financials
for non- financial peers

32. Build up contribution analysis model
Achievo Analytical
Time accounting
registration
Man Day
Analytic
Reporting
Reporting
(Achievo)
CONTRIBUTION
ANALYSIS
Analysis Contribution Budget Simulation
evolution Tool
Management Tool

33. Contribution Analysis
28.455 MD 28.808 MD 49.923 MD 52.844 MD 64.616 MD
Price increases MD increase Efficiency Growth
+ Acquisitions increases +
ILF increase

34. 2009-2010
# of services services rev. Serv + maint 3rd Party + total revenue total revenue Total cost
FY 2010 maintenance
cos days revenue per cos day per cos day Rebilled per entity per cos day of sales
C2P BE 29.435 14.611.287 496 2.067.122 567 45.000 16.723.409 568 12.177.176
C2P Ned 8.119 5.679.576 700 537.664 766 126.000 6.343.240 781 3.503.028
C2P US 5.363 3.600.000 671 726.249 807 - 4.326.249 807 2.834.887
C2P AU 6.731 2.992.805 445 1.637.800 688 - 4.630.605 688 2.963.467
Integri 6.711 3.230.044 481 1.228.948 664 24.000 4.482.992 668 2.919.975
Diagram 8.258 1.853.448 224 2.100.668 479 108.340 4.062.456 492 2.959.868
C2P Group 64.616 31.967.160 495 8.298.451 623 303.340 40.568.951 628 27.358.401
C2P Poland - - - 423.922 423.922 11.204
Total 31.967.160 8.298.451 727.262 40.992.873 27.369.605
total cost total Net Total Net RLF Total total gross
FY 2010 % ILF
per manday contribution contrib/Mand Volume Revenue contribution
C2P BE 414 4.546.233 34% 154 4.302.525 302.038 21.327.972 9.150.796
C2P Ned 431 2.840.212 21% 350 2.658.484 - 9.001.724 5.498.696
C2P US 529 1.491.362 11% 278 1.946.428 - 6.272.677 3.437.790
C2P AU 440 1.667.138 13% 248 1.218.750 - 5.849.355 2.885.888
Integri 435 1.563.017 12% 233 1.350.000 - 5.832.992 2.913.017
Diagram 358 1.102.588 8% 134 1.294.020 853.892 6.210.368 3.250.500
C2P Group 423 13.210.550 100% 204,45 12.770.207 1.155.930 54.495.088 27.136.687
C2P Poland 412.718 - - 423.922 412.718
Total 13.623.268 12.770.207 1.155.930 54.919.010 27.549.405
197,63 17,89

35. 2009-2010
Net revenue per COS day (excl. RLFv and ILF)
H1 2009 H2 2009 FY 2009 H1 2010 H2 2010 FY 2010 Var H1 Var H2 Var FY
C2P BE 546 536 541 562 574 568 16 38 27
C2P NL 1024 889 946 672 886 781 -352 -3 -165
C2P US 503 494 499 635 916 807 132 422 308
C2P AUS 590 672 635 713 656 688 123 -17 53
Integri 552 512 531 680 658 668 128 146 137
Diagram 655 772 714 503 481 492 -152 -291 -222
Group 596 600 598 603 652 628 7 52 30
Cost of Sales per COS day
H1 2009 H2 2009 FY 2009 H1 2010 H2 2010 FY 2010 Var H1 Var H2 Var FY
C2P BE 398 405 401 409 419 414 10 14 12
C2P NL 368 421 399 428 435 431 60 13 33
C2P US 430 390 411 547 517 529 117 127 117
C2P AUS 241 445 352 451 426 440 211 -19 88
Integri 419 325 370 439 432 435 20 107 65
Diagram 421 513 468 358 358 358 -62 -155 -109
Group 383 405 395 422 425 423 38 20 29
Net contribution per COS day
H1 2009 H2 2009 FY 2009 H1 2010 H2 2010 FY 2010 Var H1 Var H2 Var FY
C2P BE 148 132 140 153 156 154 6 24 15
C2P NL 656 468 547 244 451 350 -412 -17 -197
C2P US 73 104 88 88 399 278 15 295 191
C2P AUS 349 227 283 261 230 248 -88 3 -35
Integri 133 186 161 242 225 233 109 39 72
Diagram 234 259 246 144 123 134 -89 -136 -113
Group 212 196 204 181 227 204 -31 31 1

36. Analysis Contribution Evolution
Gross Margin 2009 20.099.466
Gross Margin 2010 27.136.687
Difference 7.037.221
Impact ILF 4.295.795
ILF 2009 8.474.412
ILF 2010 12.770.207
4.295.795
Impact RLF 284.747
RLFv 2009 871.183
RLFv 2010 1.155.930
284.747
Impact Maintenance 233.728
RLFm 2009 8.064.723
RLFm 2010 8.298.451
233.728
Impact Services revenue 8.916.357 Net Contribution 2.456.679
Services 2009 23.050.803 Net 2009 10.753.871
Services 2010 31.967.160 Net 2010 13.210.550
8.916.357 2.456.679
Impact mandays 2.406.714
(* keep contribution fixed) Mandays 2009 52.844
Impact Cost of Sales -6.509.408 * + see next slide Mandays 2010 64.616
COS 2009 -20.848.993 11.772
COS 2010 -27.358.401 * contribution 204
-6.509.408 2.406.714
Impact 3rd party
-183.997
3rd/rebilled 2009 487.337 Impact higher margin 5.817
3rd/rebilled 2010 303.340 (*keep number of days fixed) Contribution 2009 204
-183.997 Contribution 2010 204
0
* mandays 52.844
5.817
Net margin variation 2.412.530

37. Budget Simulatie Tool
price increase 0,00% price increase 10,00% price increase 0,00% In 2008, the
contribution 13.623.268 contribution 17.722.555 contribution 13.623.268 targetted turnover
extra people - extra people - extra people 15 was missed by only
extra contribution - extra contribution - extra contribution 690.010 1.4% (39.4 mio EUR
ILF increase 0% ILF increase 0% ILF increase 0% versus 38.8 mio
ILF 12.770.207 ILF 12.770.207 ILF 12.770.207 EUR) and EBITDA
RLF increase 0% RLF increase 0% RLF increase 0% was reached with a
RLF increase 1.155.930 RLF increase 1.155.930 RLF increase 1.155.930 difference of 3%
G&A decrease 0% G&A decrease 0% G&A decrease 0% (-5.6 mio EUR
G&A 7.670.488 G&A 7.670.488 G&A 7.670.488 versus -5.5 mio
EUR).
R&D decrease 0% R&D decrease 0% R&D decrease 0%
R&D 10.234.475 R&D 10.234.475 R&D 10.234.475
In 2009, the
S&M Decrease 0% S&M Decrease 0% S&M Decrease 0%
targetted turnover
S&M 6.518.970 S&M 6.518.970 S&M 6.518.970 was overachieved
by only 0.5% (43.45
EBITDA 3.125.472 EBITDA 7.224.759 EBITDA 3.815.482 mio EUR versus
43.26) mio EUR)
price increase 0,00% price increase 0,00% price increase 0,00% and EBITDA was
contribution 13.623.268 contribution 13.623.268 contribution 13.623.268 missed with only
extra people - extra people - extra people - 45k (-238 kEUR vrs
extra contribution - extra contribution - extra contribution - – 195 kEUR)
ILF increase 10% ILF increase 0% ILF increase 0%
ILF 14.047.228 ILF 12.770.207 ILF 12.770.207
RLF increase 0% RLF increase 15% RLF increase 0%
RLF increase 1.155.930 RLF increase 1.329.320 RLF increase 1.155.930
G&A decrease 0% G&A decrease 0% G&A decrease 5%
G&A 7.670.488 G&A 7.670.488 G&A 7.286.964
R&D decrease 0% R&D decrease 0% R&D decrease 5%
R&D 10.234.475 R&D 10.234.475 R&D 9.722.751
S&M Decrease 0% S&M Decrease 0% S&M Decrease 5%
S&M 6.518.970 S&M 6.518.970 S&M 6.193.022
EBITDA 4.402.493 EBITDA 3.298.862 EBITDA 4.346.669