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HighRadius Company Background

Corporate Overview, Market Opportunity & Solution Offerings

Corporate Profile

Company Overview

• • • Founded in 2006. Headquartered in Houston, Texas Trusted leader in Credit-to-Cash Solutions Nominated among fastest growing technology companies in Houston 4 years in a row • • SAP Partner Three Lines of Business: Solutions for SAP Receivables Management Cloud-based Receivables OnDemand Cloud-based Payments OnDemand 2 © 2013 HighRadius Corporation

Partial List of our Customers

Growth & Learning

• • • • • • • • As we are into Product Development , you will get strong domain knowledge More exposure to the technology, domain and product and hence easier to achieve architect role No restrictions on downloading open-source software and playing around No Client restrictions on technology No extensive process streamlining like CMM processes, hence lesser overhead of documentation People work in more collaborative mode More flexible with the timelines of output Growth path - Technical path and Program management 4 © 2013 HighRadius Corporation

FSCM Space & Opportunity

FSCM

• • • FSCM stands for Financial Supply Chain Management Optimizing movement of ‘money’ between and across companies similar to Supply Chain Management which is movement of ‘goods’ Fits within a logical process of a company called Order-to-Cash (OTC) 6 © 2013 HighRadius Corporation

What is Order-to-Cash (OTC)?

Order Vendor Delivery Invoice Customer Payment

Transaction Processing Times in the Order-to-Cash Cycle

Order Delivery Invoice Payment

1960s

4-7 Days 14-21 Days 4-7 Days 45-60 Days

2010

Today Next Day Same Day 45-60+ Days

Source: Killen & Associates In 50 Years Industry has not improved much w.r.t payments!

FSCM Opportunities that HighRadius Operates In

• Deductions Management • Collections Management • Credit Management • Cash Application Management • Electronic Invoice Presentment & Payment (EIPP)

Market Size: $5.5 Billion (Source: Paystream Advisors)

Working Capital Optimization (Big Picture)

• • • $580 billion tied up in excess working capital (assuming companies below the top quartile could achieve the same efficiencies as those in their industry in the top quartile) Additional $260 to $324 billion was available through the implementation of efficient supply chain management practices.

Another $200 billion could be recovered from accounts receivable through process improvements

Source: Survey by REL Consultancy & CitiGroup $1 trillion dollars in stagnant working capital!

Deductions Management

Companies are losing about

$70 Billion

every year in

Deductions

Vendor Customer Order Delivery Invoice Payment Deduction Deduction:

Short payment of a vendor invoice taken by a customer for various compliance reasons

How Big is the Problem?*

• Deductions represent about 4% of sales • 78% of deductions are Allowed (e.g. credited, written-off) • Average deduction resolution time is 105 days

* Source: Survey conducted by Credit Research Foundation of 424 companies across 30 industries 5% additional recovery on Deductions for CPG Industry could be $1 Billion to bottom-line!

Collections Management

• • ‘Collect Cash’ on Open Receivables Key Metric: Days Sales Outstanding (DSO) – Average number of days that a company takes to collect revenue after a sale has been made – Typical DSO is about 48 days • What is the value creation of 1 Day reduction in DSO?

– – – ABC Manufacturer: $10 Billion Sales Revenue Cash borrowing cost: 4% Simple Interest Rate Value Creation = $1.1 Million [ $10 Billion * 4% * (1/365) ]

1 Day Reduction of DSO for a Fortune 1000 could be $1.1 Million to bottom-line!

Credit Management

Total Open Orders + Vendor Total Open Deliveries + Total Open Invoices <= Customer Customer Credit Limit $50,000 $100,000 Total Exposure = $225,000 $75,000 Credit Limit = $250,000

– – – – ABC Manufacturer: $10 Billion Sales Revenue Bad-Debt Write-Off: 0.4% = $40 Million What-If? 10% Reduction of Bad Debt Value Creation = $40 Million * 10% = $4 Million

10% reduction of bad-debt for a Fortune 1000 could be $4 Million to bottom-line!

HighRadius Solutions

HighRadius Solutions – Three Product Lines

Accelerators for SAP Receivables Management Accelerators built on SAP ABAP namespace that complement SAP Receivables Management modules Cloud-based Receivables OnDemand Cloud-based full integrated receivables automation solution for the entire credit-to-cash cycle Cloud-based Payments OnDemand PCI-DSS compliant electronic Payments via ACH & Credit Card

Accelerators for SAP Receivables Management

Receivables OnDemand Solutions

Credit OnDemand Cash Application OnDemand Deductions OnDemand Collections OnDemand EIPP OnDemand Online Credit Application & Management Credit Data Aggregation Credit Scoring Remittance Aggregation (All Formats) Automated Data Cleanse ERP Lockbox Integration Backup Document Aggregation Deduction Workflow Trade Promotion Settlement Notes & Promise-to Pay Capture Collection Strategies Automated Correspon dence Invoice Storage & Retrieval Invoice Templates Invoice Delivery 17 © 2013 HighRadius Corporation

Product Strategy

Mission: A Focus on Customer Value

Approach to the Market

Some Product Examples

Credit Decision Accelerator (SAP Accelerator)

Cash Application OnDemand

Payments OnDemand

ROI Examples

10% DSO Reduction Faster collection & deduction activities Collection scoring better identifies delinquent customers Automated correspondence increases touches Reduce float with online bill pay Reduce bad debt write-offs 30% Staff Efficiency Increase Automatically identify delinquent customers Collection dashboard prioritizes work Scoring models automate credit decisioning Customer self-service portal via Biller Direct

Sample Customer Results

$16 Million Annual Savings from DSO Reduction 5 Day DDO Reduction Improved Auto On Invoice Hit Rate to 98.5%

Our Customers are Saying…

“HighRadius really understood our business and developed solutions for us.” “We’ve reduced DSO significantly.” “We were able to develop solutions that I’d never thought of before.” “We really benefitted from HighRadius’ receivables expertise.” “Working with the HighRadius team was a great experience!” “I knew as soon as I talked to HighRadius that they needed to help us with our SAP project.” 28 © 2013 HighRadius Corporation