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

Supply Chain Finance Strategic Lever for Working Capital in Asia

Eugene Buckley VP and GM, Asia - Pacific, PrimeRevenue ebuckley@primerevenue.com

SUPPLY CHAIN FINANCE 2013 SUMMIT CHINA

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Topics for Today

§  Introduction §  Supply Chain Finance – Why? §  About PrimeRevenue §  Roadmap to Success §  Myths and Facts §  Q&A

2

AGENDA

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of the Global 2000 state that working capital management is a high priority. 8 %1

$ 4 M 0 in cash flow gain can be achieved by increasing

payment terms by only 15 days per $1bn of spend.

Finance and Procurement departments lack necessary tools to optimize working capital

WHY?

The Challenge…

dollars of cash flow still remain trapped in the Supply Chains of the Global 2000! $1 T

HOWEVER…

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Why SCF now

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§  Corporates actively pursuing this solution to relieve pressure in the supply chain §  On avg. 60% Investment Grade buyers spend with Sub-IG suppliers §  Government intervention – Exim Bank, UK, Italy §  Focus is on working capital for both buyers and suppliers §  Health of the supply chain – Managing of Cash “Crisis” mode

IG SIG

Post “crisis” environment is still challenging to the supply chain

CDS Spreads

Source: Bloomberg

Δ150bps

Δ1000bps

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0%  

5%  

10%  

15%  

20%  

Asia   Europe   North  America   LatAm  

Figure  1  -­‐  Source:  Celent    

Growth  of  SCF  programs  by  Region  in  the  next  3  years  

Suppliers across Asia are emphasizing that Supply Chain Finance solutions can help them to cope with the pace of growth of their customers.

KEY TRENDS in SUPPLY CHAIN FINANCE IN ASIA

Why SCF now – Cont’d

MARKET CONSIDERATIONS:

§  Drivers for SCF may differ by Region Mature markets: Working capital and supply chain risk

Emerging economies: Access to liquidity to manage growth

§  Legal requirements, regulations, currencies §  Need for regional supplier onboarding teams §  Client requirements for consistency in technology and

services on a global basis §  Support & Program Management through same

methodology as in mature markets

SOLUTION CONSIDERATIONS: §  Accommodates multiple trade types and plug-in

access to multiple funders where demand exists Customizable SCF program per client & jurisdiction

§  Delivers documentation per jurisdiction requirements §  Provides SCF-dedicated specialists regionally §  Highly scalable trade platform that works uniformly

worldwide in multiple languages, currencies §  Delivers proven support and enablement on a global

basis

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Optimizing Working Capital

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BUYERS SUPPLIERS

Optimizing the Financial Supply Chain & Working Capital is a high priority for corporations and their trading partners

A COMPREHENSIVE STRATEGY & SOLUTION SUITE ARE REQUIRED TO UNLOCK

OPERATING CASH FLOW & WORKING CAPITAL IN THE SUPPLY CHAIN

PROGRAM DESIGN

WORKING CAPITAL ANALYSIS

WORKING CAPITAL RESULTS

COLLABORATION TOOLS

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What we do…

“We provide a suite of solutions which help to optimize your financial supply chain, unlocking more trapped cash faster and more efficiently than ever before possible”

BUYER SUPPLIER

YOU

YOU

A/R A/P A/R SCiCustomer SCiSupplier

SCiEnable SCiMap

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$3bn 2010

$4bn

2011

$5bn+

2012

$1bn 2008

$2bn 2009

About PrimeRevenue

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

TRADE FINANCE

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SET THE RIGHT TARGETS •  Increase cash flow •  Improve EBITDA •  Reduce supply chain risk

CONSIDER SUCCESS FACTORS •  Spend analysis •  Program design •  Multibank structure •  Onboarding suppliers

UNDERSTAND SCF •  Ways to reach targets •  Stakeholders, partners •  Key requirements

SELECT RIGHT PARTNER •  Platform Providers •  Funding Partners

SCF Roadmap to Success

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Multibank Strategy

Bank – Proprietary Platform PrimeRevenue Platform

CFO Magazine, 2010

Long-term relationship & business dependency on

key suppliers

Funding from the banks is uncommitted (can be cancelled

any time) and short-term

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Q&A

Q A&

11

Our values are built upon our PRIDE culture

Your Success is our Success

Eugene Buckley

VP and GM, Asia – Pacific Mail: ebuckley@primerevenue.com Phone: (678) 904-7129