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e-Invoicing market activity Stefan Foryszewski ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 1 Agenda • Understanding OB10 • Looking back at the last 12 months • What has happened • What we have done • Outlook for the near future ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 2 About OB10 OB10 is the leading global e-Invoicing network. Customers of all sizes optimise their invoice processes via the OB10 network and benefit from improved efficiency and transparency in their finance departments. • Founded in 2000 • Over 230 FTEs • Regional Headquarters in London, Atlanta and Kuala Lumpur • Supporting Offices in Sofia and Bangalore • Over 70,000 registered customers on the network, in over 100 countries • VAT and Tax compliant in Europe, North America and Asia ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com Our focus • electronic invoicing • Supported by • Purchase order PO Flip PO Delivery • Remittance advice • Fiscal Archiving ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 4 Our markets • EU • • • • UK UK public sector Germany Multinational Shared Services (F&A) • US • Domestic • Federal Government • Multinational Shared Services (F&A) ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 5 Some of our Partners • BPO providers • IBM • Logica • Genpact • Payment Services • Santander • PayPal • Software Applications • Readsoft • Basware • EDI • GXS ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 6 Some of our customers ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 7 e-Invoicing flow Suppliers Buyer Preferred Data Format Invoice Image OB10 Portal Preferred Data Format Integrated supplier Web form Invoice Image Delivery Confirmation ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law OB10 Archive www.OB10.com 8 Our business model • Buyer-Centric model • Transaction based pricing and annual fees • Charge both ends • Sender and receiver • No installed software • Integrated with ERP / Billing system • Recurring revenue • No consulting / professional services fees ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 9 What’s happened in the last 12 months • Greater visibility of e-Invoicing • The work of Governments and EU Commission • Talk of easing the legislative burden • The desire for savings has increased • Many more RFP’s • The desire for projects has decreased • • • • Fewer contracts crossing the line (They are stacking up) Fear of change US quarterly reporting ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 10 What’s happened in the last 12 months • Less focus on CSR / ‘Green’ • Lower levels of ‘individual’ trading activity • US first, followed by EU • Attrition is low, buyer and suppliers • Greater demands for Interoperability • Connect once ……….. ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 11 What we have done in the last 12 months • Off-shoring • Maintained front end direct sales and marketing activity • Internal efficiency programmes • Review of geographies • Increased partner activity ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 12 Off-shoring • English Language • • • • • Strengthened the operation in KL English Language only Customer facing Back office Development • EU Languages • Strengthened operation in Sophia • Fr, Ge, Sp, NL, Po, It ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 13 Sales and Marketing • Maintained direct sales and marketing activity • Fewer conferences • T&E control • Webinars • More PR ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 14 Internal efficiency • Accelerated developments • Support • CRM • Sales efficiency ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 15 Geographical expansion • • • • Review of markets Customer requirements Business Case Legal requirements ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 16 Partner Activity • • • • • Significantly increased partner activity Reach Sales Pipeline reviews Interoperability ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 17 Highlights • • • • • • • Transaction growth Revenue growth Top line sales growth SAS70 Type 2 Expense growth Cash Break Even Rights Issue ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 18 What the market is telling us • e-Invoicing • Low market penetration, increasing 30% • Increased competition • Service providers • 300 in Europe (???) • Consolidation inevitable • Still localised services ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 19 Outlook • Continued growth • But around 30% • Sustainable profitability • Poorly funded players will consolidate or fail • Greater demand for new markets • Asia • Latin America • EU proposed legislation unlikely to be implemented soon, restricting the less sophisticated players • More interoperability • More partners ©copyright OB10 2008 OB10 and the OB10 logo are trade marks of OB10 Limited and are protected by law www.OB10.com 20 Thank You [email protected] www.OB10.com 21