Basware Invoice AutomationProviding Control, Visibility and Cost Savings

A Basware Presentation

Delivering the financial agility you need to run your business more effectively

AgendaA Basware Presentation

Basware in Brief

Your Challenges

Our Solution

Your Benefits

Supporting Your Transition

History• Founded 1985• Consistently ranked #1/

#2 by analysts across P2P and e-Invoicing

• 11 offices around the world

Corporate performance• Net sales >EUR 107m

in 2011• 1000+ employees• Partners in 30+ countries• >1m users in over

60 countries

The Open Network• 1.9m suppliers listed• >20m e-invoices/POs

in 2011• €175bn total annual

spend across network

• >50 e-invoice formats

• 130+ partners

Basware in numbers

Your ChallengesOur SolutionYour Benefits

Typical Purchase-to-Pay Challenges

Supplier

Long sourcing cycles

Poor visibility to demand planning

Large inventory

Poor payment visibility

High working capital costs

Increased risk

Long DSO cycles

• Trading risk• Costly audits• Inflexible supply base• Poor DPO/DSO performance• Limited supply chain finance options• High internal process costs• Currency exposure• Compliance risks• Inaccurate cash flow forecasting

Procurement

Non-compliant spend

Too many suppliers

Uncontrolled contracting

No granularity of spend

No purchasing leverage

Inefficient paper based process

Procurement

High invoice processing cost

Manual processing of recurringInvoices

Data errors, double payments etc.

Late visibility into obligations

Slow book closing processes

AP discrepancies

Finance / AP

Pressures driving AP Improvement

Top AP Pressures according to Aberdeen Group

57%43%

29%23%

15%13%

Lack invoice and AP document visibility

Corporate directive to lower costs

Need for better cash management

Difficulty in finding/managing paper-based document archives

Need to reduce risk of fraud and abuse (improve control)

Inability to capitalize on early payment discounts

Efficiency & Savings

Common Accounts Payable Issues

Control & Compliance

Visibility & Insight

8

Control & Compliance: Challenges

Challenges

•Approval policies inconsistent and/or not followed

•No records of invoice history, no audit trail, risk of fraud

•Overall process compliance with SOX, IFRS…

Control & Compliance

BenefitsCapabilities

9

Control & Compliance: Our Solution

Challenges

•Organization management

•User rights and approval limits

•Full audit trail

•System alerts

•Post process audits

BenefitsCapabilities

Control & Compliance

10

Control & Compliance: Benefits

Challenges

•Internal policy execution

•Invoice history supports transparency

•Avoid double payment or late paying invoices

•Re-claim overpay to suppliers

•Easily audits with full drill-down

•Satisfy SOXS, IFRS, etc

BenefitsCapabilities

Control & Compliance

Enforcing Control & Compliance

Master vendor validation

Pre-processing data validation

Invoice pre-booking

User rights determine access

Approval limits govern workflows

Auto approvals within tolerances

Additional Costs handling

Control, Compliance and More at NOMS

Challenges

Solutions

Results

• Achieve maximum control and transparency over the invoice process across 130 locations involving almost 6,000 users

• Increase efficiency of the invoice handling process• Increase speed of payments to suppliers and achieve early payment

discounts

• Basware Invoice Automation• Basware anyERP middleware

• Compliance objectives met with maximum control and trasparancy over the invoice handling process

• Reduced administrative burden – internal costs down• Invoice cycle time down from 45 days to 85% processed within 3 days

4 months after Go-Live

13

Visibility & Insight: Challenges

Challenges

•No process visibility

•No real-time view on cash flow

•No consolidated view on spend data

BenefitsCapabilities

Visibility & Insight

14

Visibility & Insight: Our Solution

Challenges

•AP Master overview

•Alerts and highlights

•Status Monitor

•Cash Management

•Supplier Spend

•Personal Archives

Visibility & Insight

BenefitsCapabilities

15

Visibility & Insight: Benefits

Challenges

•Shorter cycle time

•Processes improve

•Faster exception handling

•Better use of cash

•Dynamic discounts

•Consolidate spend

BenefitsCapabilities

Visibility & Insight

• Early visibility to committed spend enables cost management across P2P process

• Improves cash flow forecasting• Enables active working capital management

Improved cash flow visibility

10 days 20 days

PURCHASE TO PAY CYCLE – 65 DAYS

50 days 60 days30 days

PO processstarts

Order confirmation

PO done

Goods received

Invoice arrived

Invoice sent

Time of payment

PURCHASE TO PAY CYCLE

40 days

17

Visibility & Insight at Acco Brands

Challenges

Solutions

Results

• Rationalize and automate P2P processes in preparation for future growth• Achieve visibility and control of all spend• Enable a centralized and compliant European purchasing strategy

• Basware Invoice Automation• ERP integration and multi-language support

• Basware Purchase Management

• Real-time view of spend commitments• Boosted compliance and foundations for intelligent strategic purchasing• Cost and efficiency savings

“We now have a view of all spend commitments and a much tighter handle on accruals — all of which gives us a far more accurate finance snapshot of where we are at any given time.”

18

Efficiency & Savings: Challenges

Challenges

• High costs

• Paper invoices

• Untapped cash discounts

• Non-value adding tasks

Efficiency & Savings

BenefitsCapabilities

19

Efficiency & Savings: Our Solution

Challenges

•100% e-Invoices

•Match to Purchase Orders

•Match to Contracts

•Coding templates

•Fixed workflows

•iPhone / iPad / Android

BenefitsCapabilities

Efficiency & Savings

20

Efficiency & Savings: Benefits

Challenges

•100% e-Invoicing from day 1

•Faster invoice cycle times

•Discount opportunities

•Fewer errors

•Lower AP costs

BenefitsCapabilities

Efficiency & Savings

Driving Efficiency & Savings

21

Matching against PO’s1

Matching against contracts2

Automatic workflow3

Manually selected workflow4

Basware anyERP Adapter

ERP

22

Enforcing Efficiency & Savings at Heineken

Basware database

Invoice processing &

Transfer to payment

anyERP

95% faster Invoice cycle times 40% less AP staff

93%automaticallymatched

75%automaticallymatched

to exception handling

to exception handling

7%

25%

SAP

SAP

SAP

SAP

Proost

Supporting Your Transition

Step 1 – Mix and match automation ~5000 invoices/FTE

Step 2 – Basic matching and workflow ~15 000 invoices/FTE

Step 3 – Full PO matching ~30 000 invoices/FTE

Step 4 – End-to-end AP automation ~100 000 invoices/FTE

Invoices / AP FTE

10%

33%

75%

100%

Paper-based handling

Paperless workflow

Invoice automation

Touchless invoicing

4 steps to full AP automation

25

Intelligent Processes

Automaticallymatch invoice

and PO, or invoice

and contractpayment schedule.

Scan and capture data

using the latest OCR-technology

or receive invoice in

electronic form.

Code invoicewith the help

of posting templates and”favorites” lists.

Review invoice to check that invoice is

justified and correct.

Approve invoice

(controlled byapproval limits

and rules).

Transfer invoice datato the ERP or financialsystem for payment.

Matching Invoices to Purchase Orders

26

Invoice matches with approved purchase order (PO)

Invoice does notmatch with PO(discrepancy)

Personal Archive Updated

Auto-coding/workflow

18/04/2023

Author

‘Orderless’ or Recurring Invoice Matching

27

Invoices match with approved payment schedule or budget (contract)Invoices do notmatch with contract(exceptions)

Personal Archive Updated

Auto-coding/workflow

18/04/2023

Author

Matching Benefits

Process• Full automation

(STP)

• Partial automation

– Auto-coding

– Auto-workflow

• Fewer human errors

• More time for value adding tasks

Control• Enforce

Purchase Policy

• Audit trail maintained

• Line level matching

• 3-way matching

• Goods Receipt based matching

Savings• Automate routine

tasks

– Invoice to PO association

– Coding

– Approvals

– Workflow

• Early payment discount opportunities

Savings

Control

Process

Basware’s Solution for 100% Purchase Invoices

Supplier

Supplier

Supplier

Buyer

PortalInvoices

E-Invoices

Paper & Email Invoices

Ac

co

un

ts P

ay

ab

le

Supplier Activation Service

• Cut invoice processing time by 5-30 days• Enable discounts on 50% of invoices• Reduce spend by 1.3%-5.5% (average)• 10% increase in e-invoicing reduces DSO by 3 days• Cut collection costs by 10%• Reduce carbon footprint by 90%

Benefits of E-invoicing

B2B Transactions Services

The Open Network: enabling global commerce

1.9 million

potential suppliers

Over 1700 global customers

550,000Active buyers/ suppliers in Open Network

Up

53%20.8me-invoices in 2011

>50formats supported

$175 billion

annual spend on our network130

interoperability partners

VAT compliance in

>50 countries

Scan & Capture Global Coverage

US, EMEA, APAC Scan Centers

• PO Boxes/customer

• Incoming mail handling

• Scan batches

• Invoice scanning

• QA

• Destroying/archiving/sending originals

Invoice delivery & SLAs

• Delivery to customer’s invoice processing solution via Basware’s e-Invoice network

Offshore validation Centres

• Extracting header and line data

• Data validation and QA

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Basware Mobile

18.04.2023

- Confidential -33

Basware Mobile Client delivers control of the financial value chain to smart-phones and mobile devices

Secure connection from mobile device provides real-time access 24/7

Timely handling of purchase invoices to capture early payment discounts and avoid late payments

Key people can use their time out of office more productively

Why Companies Choose Basware Invoice Automation

100% visibility of spend

Full PO coverage

360◦ view across multiple ERPs

Accurate cash forecasting

Early pay discount opportunities

Full visibility to any invoice in the system

Bottlenecks can be identified and removed

Visibility

Regulator compliance

Controlled automation according to your policies

Process transparency

Personal accountability

Easy audit ability

Easy accruals reporting

Faster period closing

Reduced human errors

Control

100% e-Invoicing

Faster invoice cycle times

Straight-Through-Processing

Reduced AP overhead

Lower cost per invoice

Take early pay discounts

Higher invoice volumes per FTE

Efficiency

And finally…

Learn from the leaders..

Reduced invoicing costs by

75%

Cut 3rd party spend by

10%Receive

97%of invoices as electronic invoices

Reduce costs of Accounts Payable function by

60%

Process over

90%of invoices without any manual intervention

Pay over

85%Of suppliers within 7-10 days to capture discount

Reduce costs of processing expense claims by over

50%

The B2B Cloud and Alusta

Introducing the B2B Cloud:our three advantages

1. The Open Network•Millions of transactions, thousands of suppliers and buyers

2. Best-in-class B2B processes• Easily deployable process

templates for all company sizes

3. Intelligent Cloud Collaboration• Connecting buyers and suppliers

The Open Network

Best-in-Class B2B processes

Intelligent Cloud Collaboration

1. The Open Network: enabling global commerce

1.9 million

potential suppliers

Over 1700 global customers

550,000Active buyers/ suppliers in Open Network

Up

53%20.8me-invoices in 2011

>50formats supported

$175 billion

annual spend on our network130

interoperability partners

VAT compliance in

>50 countries

2. Best-in-class B2B process expertise

Process templates

Advisory services

Connectivity solutions for buyers and sellers making it easy to get onto the B2B Cloud

Liberated data layer allowing buyers and sellers to do business regardless of legacy back end systems or formats

Value added transaction services

3. Intelligent cloud collaboration

Multi-tenant cloud-based packages

Process-as-a-service

Liberated data structure

Configurable workflow automation

Unified, roles-based user interface

B2B document and data exchange in any format

Social media collaboration layer

Mobile access

Complete data transparency

Neutral connectivity

ERP agnostic

Assured security

Basware Alusta:enabling the B2B Cloud

Why companies choose Basware Alusta

Full spend visibility and PO coverage

Accurate cash forecasting and working capital management

Full supplier and contract visibility

Travel & expense behaviour profiles

Visibility

100% e-invoicing

Intelligent matching everywhere

More spend managed, cash flow accuracy, faster period closing

Controlled travel & expense

Control

Straight through processing

Federated accountability

Exception-based intelligentworkflows

Proactive contract compliance

Regulatory/VAT compliance regardless of jurisdiction

Compliance

Supplier discount capture

Cash flow, working capital and currency forecasting

Open, interoperable global trading network

Rapid on-boarding and off-boarding

Hybrid deployment options

Agility

Simplicity

A Basware Presentation

Presented by Name

Day/Month/Year

Giving you the financial agility you need to run your business more effectively