Global supply chains are treasure troves of working capital, but that cash flow often stagnates in the pipeline. Research shows that one proven way to free up stuck capital is by optimizing payables performance: when you optimize payables, you see higher returns and suppliers get paid quicker. In 45 minutes, you’ll learn how to: - Increase EBITDA while removing risk from your supply chain - Implement a win-win approach to Dynamic Discounting, with 5 “must haves” for a successful early payment program - Support and strengthen your supply chain simply and collaboratively

1. Hi, thank you for joining us! We will begin shortly. In the meantime:
• Please type your questions and comments into the Q&A box to the left of the screen
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Boost your bottom line and supply chain health

2. ● Introductions
● Working capital management challenges & opportunities
● Improving supply chain health
● 5 “must haves” for a successful early payment program
● About C2FO and Tradeshift
● Q&A
Agenda

3. Presenters
Rinus Strydom
VP of Alliances
Jordan Novak
Managing Director

4. Working Capital
Challenges / Opportunities

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“Big Companies
Pay Later, Squeezing
Their Suppliers”
“European companies lost
350 billion euros in 2014 due
to late or unpaid bills”

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Companies are spending like crazy & still
generating short-term cash
2010 2011 2012 2013 2014
USnon-financial companies cash balance
Buybacks & Dividends
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
$1,100
$700
($Bn)

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Average rate of return on short-term cash is
20 BPS

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At the same time, long payment terms are beginning to
stress supplier balance sheets
Brazil, 75 Chile, 64Germany, 58
UK, 50
USA, 42
Mexico, 71 China, 78 Canada, 42
Source: PWC
Days Sales Outstanding (DSO)

9. Even with longer terms, companies still struggle to pay on
time
Typical incidence of late payment reports by region
Q1 2009 - Q3 2014
Source: ACCA (Association of Chartered Certified Accountants)

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Trying to bridge the gap with credit is becoming harder &
more expensive
Average Business Loan Rate for all Companies
Brazil, 27.4% Chile, 9.3%Germany, 4.6%
UK, 3.6%
USA, 3.0%
Mexico, 4.2% China, 7.2% Canada, 3.2%
Source: The World Bank

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Business owners want earlier payments & more control
over their cash
Source: C2FO Working Capital Study

12. Improving Supply Chain Health

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Healthy Supply Chain = Better Business
Source: C2FO Working Capital Study

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Accelerated Payments to Suppliers
● Funds growth and R&D
● Strengthens supplier relationships
● Lowers supplier risk

15. 5 Must Haves For a Successful Early
Payment Program

16. 1 - Process Automation
Invoice Cycle Time: Ideally <10 days
● E-invoicing
● Automated workflow & approval
● Digitize paper / PDF invoices

17. 2 - Supplier Onboarding
● Digitally connect to suppliers
○ Higher participation in early payment programs
○ Transactional transparency
● Ease of communication / education regarding early payment progra
● Segment suppliers for more targeted early payment program
● Live support for suppliers

18. 3 - Flexibility for Buyers and Suppliers
● Flexibility of invoice format
○ Paper, PDF, e-invoice
● Allow buyer to set parameters on-demand
○ Available cash
○ Desired APR
● Allow supplier to name their own rate
○ Any invoice
○ Any time

19. 4 - Being Where Suppliers Already Are
Provide suppliers access in multiple ways, regardless of format
Web
App
Mobile
CloudScan
e-invoice
Mobile

20. 5 - Collaborative & Easy to Use

21. Tradeshift + C2FO

22. Tradeshift is a supplier collaboration platform that connects buyers,
suppliers, and all their processes in one global network.
We help businesses transform the way they work with suppliers today –
and adapt to whatever the future brings.
All Your Suppliers
Onboard fast & collaborate in real
time with your entire network.
Powerful Platform
Respond to your growing business
needs with apps on our flexible,
open platform.
All Your Spend
Manage more of your spend
(direct, indirect, services) than ever
before.

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World-Class Supplier Collaboration Platform Meets One-of-a-
kind Early Payment Marketplace
Procurement AP
Automation
Working
Capital
Solutions
Supplier
Management
Apps

24. App Platform

25. Now they offer you discounts directly from the Tradeshift
App

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With C2FO, suppliers offer you discounts

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• Buyer sets available cash & desired rate
• Suppliers offer their desired rate
• Buyer can award every offer if enough cash
Supplier Supplier Supplier
Unique
offer
Unique
offer
Unique
offer
Hotel
• Hotel sets available rooms & desired rate
• Guests offer their desired rate
• Hotel can award every offer if enough rooms
Suppliers make offers for early payments.
Similar to Priceline.com
I have extra rooms I
would fill at a certain
price
Guest Guest Guest
Unique
offer
Unique
offer
Unique
offer
I have extra cash I
would pay early at a
certain price
Buyer

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Our mutual focus on suppliers drives results
* NPS is Net Promoter Score which measures the likelihood to recommend
C2FO to another company. 50+ is considered “World Class”.
+

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Key benefits of C2FO + Tradeshift
▪ Faster invoice approvals
Tradeshift speeds up invoice
processing and approvals. This
results in more efficient working
caption management.
▪ Higher supplier participation
Suppliers can request early
payments in the same place they
manage invoices
▪ Enhanced collaboration
We’ve combined the early payment
collaboration of C2FO with the A/P
processing and supplier
communication tools of Tradeshift
▪ Greater value
Faster invoice approvals create the
highest income potential for buyers
and the lowest rate of working
capital for suppliers
+
A strategic partnership to provide more supply chain value to you
and more affordable working capital to your supply chain

30. Q&A
Rinus Strydom
rst@tradeshift.com
Jordan Novak
jordan.novak@c2fo.com