fintech belgium summit 2017 - pitch battles - scaleups

redefining the credit management game

11/12/2017 ©VIRTEO 2017 – Privileged & confidential 1

Order management & Order Entry

Credit Management

InvoicingBilling

A/R Collection

DisputeResolution &

DeductionMgmt

Reconciliation& Reporting

Order to Invoice Invoice to Cash

Positioning

36 billion invoices/year issued in EU>1,5 billion unpaid invoices in external collection process

Generate 10 billion euro/year in collection fees


Common actual approach

Company(Private or Public)

Debt collection agencies,Lawyers, Judicial officers, ..• Amical phase

Judicial officers (court bailiffs)• Legal phase

Service providers

Credit management• Labor intensive• Non integrated process• Heterogenous data• Difficult to report and benchmark• Compliancy nightmare• Supplier empowered model


Changing the game

Integration

Case attribution

Case management

Financial transactions

Reconciliation

Reporting

Company(Private or Public)

Debt collection agencies,Lawyers, Judicial officers, ..• Amical phase

Judicial officers (court bailiffs)• Legal phase

Service providers

Credit management• Shorter cycle time• Better net result• Dashboards & benchmarks• Manage compliancy• Customer empowered

model

Carrier


A better net recovery result

Better tools, aimed at their requirements

Manage compliancy with privacy requirements

Vendor lock-in is avoided and benchmarks are enabled

No license or transaction fee

Creditors/customers drive demand

Data Carriers and Community Owners propose VIRTEO to their customers

They increase their footprint and get part of transaction fee

New stakeholders are part of our salesforce

Variable IT Cost

Capability to address customer requirements

Focus on service quality and content

Dynamic associations – larger deals

They include VIRTEO in their value proposal

Service providers join in proactively or on customer request

Scalability by combining sales channels


• The customer (creditor) is empowered as never before

• Insight, data, control, benchmarking, agility

• The service provider needs to change his approach

• In IT investments (Capex to Opex -> VIRTEO transaction fees)

• Mid-size and small service providers can provide a stronger value

proposition and address large size deals

• Large service providers need to redefine their USP’s, as size and IT are

no longer USP’s

• New stakeholders (carriers and community owners) suddenly are part of the business model and the sales channel

Disruptive model


Does it work?

Launched end 2016. In about a year:

✓ Hundreds of service providers – Lawyers, Court Bailiffs, collection agencies

✓ 100% geographical coverage in BE (multiple SP’s in each jurisdiction)

✓ Customers in Public, Finance, Retail, Energy, Leisure, Telco and Transport

➢ Cashflow positive in 2018 based on 2017 customer wins

✓ Agreements with 2 major banks and 6 carriers/community owners

✓ First deals in pipe in NL, FR and UK

(Up to now, we don’t have a marketing team and not a single salesrep.)


11/12/2017 ©VIRTEO 2017 8

redefining the credit management game

?

www.virteo.com

(*You could ask if there are social benefits as well..)

*

Backup slides


“I can now benchmark and drive the performance of my individual

service providers via a single management console ”.

“Virteo allows me to improve my net result by implementing a

better process and empowering me in T&C negotiations”

Our largest partner, LegalRecovery has been created in view of the possibilities of Virteo’s platform and became in less than a year the largest association of Judicial officers in Belgium. 60 bailiffs, 22 physical locations, 300 staff, shared service center and call center

They also focus on asset recovery.

Example of one of our partners: LegalRecovery


-10 bailiffs-Shared service centre in Asse-A network of bailiffs/ lawyers with focus on Brussels region

Example of one of our partners: Hugebru


-Initiative for “Ethical debt recovery practices”-By Bailiffs-Supported by Beweging.net

Example of one of our partners: MyTrustO


Financial model

Creditor => CUSTOMER• Gets multiple user access• User agreement with exit clauses; no license fee• Service providers opt-in on proposed commercial conditions• Creditor defines file allocation rules• Custom integration and dashboards could (but not necessarily) imply one-off cost

Carrier• Provides single-point data integration• Obtains carrier fee of (several euros*) per transaction

Community owner• Could be the same as carrier• Obtains referral fee of (several euros*) per transaction • Can use Virteo to add value to their business proposal

Service providers• Engage to comply with process and data protection• No license fee, they pay a transaction fee of (several euros*) per transaction

TypicalTelco, Energy, Health, Insurance, Factoring, Public..

TypicalUnifiedPost, IPEX, Twikey, Dynatos…

TypicalUnifiedPost, IPEX, Silverfin,

Banks, ..

TypicalCourt Bailiffs, Lawyers, Debt collection agencies…

(*confidential)11/12/2017 ©VIRTEO 2017 – Privileged & confidential 14

Benefits

Centralized process control

Configure every step in the

dunning process according to your

policy, from first reminder to legal

enforcement and all steps in

between.

Choose who provides the service

Choose how case files are allocated:

according to your vendor policy,

according to debtor location or

according to KPI's

Manage & control internal &

external services

Choose which steps are handled

internally and which are handled by

our community of lawyers and judicial

officers.

Reports & dashboards

All actions are performed directly in

the platform, your files are complete

and up-to-date at all times, allowing

for clear reports and dashboards.

No file exchanges anymore

All service providers -lawyer, judicial

officer, any other party you wish to

engage- work on the same data on

the platform.

Increase transparency

All documents, all costs, every action

is in the platform and can be viewed

and evaluated. Hidden costs or delays

are impossible; the service provider

performance can easily be measured.


Financials

Building MVP

Building Service provider community

Achieved 100% coverage in Belgium

Looking for first customers

Closed +/- 13 deals& Large pipeline

First deals start generating

revenue

Recurrent revenue based on current deal flow

(No additional sales included yet)

-

50.000

100.000

150.000

200.000

250.000

jan/17 feb/17 mrt/17 apr/17 mei/17 jun/17 jul/17 aug/17 sep/17 okt/17 nov/17 dec/17 jan/18 feb/18 mrt/18 apr/18 mei/18 jun/18 jul/18 aug/18 sep/18 okt/18 nov/18 dec/18

Monthly recurring


Financials

2016 2017 2018 2019

Costs (kEUR) 1.305 1.677 1.788 2.500

EBITDA (kEUR) -1.010 -1.297 -140 1.900

2017• Enrich MVP• Create community;

achieved 100% coverage

• Closed 13 deals, of which 8 in last 3 months

• Traction confirmed, shortened sales cycle

• Indirect sales channelproven

2018• Deals from 2017

build revenue• Expand sales team• Convert pipeline• Launch FR & NL in S1• Launch UK in S2

2019 - …• First revenue from FR &

NL• Accelerate international

expansion to othercountries

• Consolidate position• Explore new strategic

options

Revenue (kEUR) 294 380 1.648 4.400

2016• Finalize MVP• Some pilots• Work on

community


Partners and customers

Partners (integration and sales channel)*

Confirmed customers*. (Sectors include Public, Retail, Leisure, Transport, Energy, Services, Finance and Telco)

Final stage and pilot agreement confirmed*

In advanced sales stage

(Names confidential; around 10 accounts including 2 large insurance companies, 1 hospital, 1 major bank and 1 major TelCo)

(Names confidential; around 34 accounts including 2 large insurance companies, 2 hospitals, 2 medical labs, 1 major factoring company, 2 social security insurances and other

*Some of the agreements concern international companies with intention for international collaboration


VIRTEO 3rd party account management

Account management

Opening

Mandate management

Closing

Payments & clearing

Outbound payments

•Single & Multiple

•1 originator account

•Multi originators accounts

•1/1 or batch upload

•At the initiative of the creditor

•Zoomit

•SDD

•One-off or recurring

Inbound payments

•Via cash (and/or cheque)

•Via transfer

Reporting

Account statements

•Paper or electronic

•Primary and/or secondarysending

CODA statements

Legal, Regulatory or commercial reports

•Magistrates and courts

•Bankruptcies

•Debt negociation

•Incapables

•For Bars and Orders

•Customers reports


fintech belgium summit 2017 - pitch battles - scaleups

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