Corporate Profile

© 2013 HighRadius Corporation

HighRadius Company Background Corporate Overview, Market Opportunity & Solution Offerings

Company Overview

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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

Partial List of our Customers

FSCM Space & Opportunity

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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)

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What is Order-to-Cash (OTC)?

Delivery Invoice Payment

Customer

Order

Vendor

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Transaction Processing Times in the Order-to-Cash Cycle

1960s 2010

Order 4-7 Days Today

Delivery 14-21 Days Next Day

Invoice 4-7 Days Same Day

Payment 45-60 Days 45-60+ Days

Source: Killen & Associates In 50 Years Industry has not improved

much w.r.t payments!

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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)

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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

$1 trillion dollars in stagnant working capital!

Source: Survey by REL Consultancy & CitiGroup

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Deductions Management

Delivery Invoice Payment

Customer Vendor

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

Deduction

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

Companies are losing about $70 Billion every year in Deductions

Order

5% additional recovery on Deductions for CPG Industry could be $1 Billion to bottom-line!

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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!

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Credit Management

– 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

Customer Credit Limit

Customer

Total Open Orders

Vendor

Total Open Deliveries

Total Open Invoices

$50,000 $100,000 $75,000

Total Exposure = $225,000

Credit Limit = $250,000

+ + <=

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

Cloud-based Payments

OnDemand

Accelerators built on SAP ABAP namespace that complement SAP Receivables Management modules

Cloud-based full integrated receivables automation solution for the entire credit-to-cash cycle

Cloud-based Receivables OnDemand

PCI-DSS compliant electronic Payments via ACH & Credit Card

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Accelerators for SAP Receivables Management

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Invoice Storage & Retrieval Invoice Templates Invoice Delivery

Remittance Aggregation (All Formats) Automated Data Cleanse ERP Lockbox Integration

Notes & Promise-to-Pay Capture Collection Strategies Automated Correspon-dence

Online Credit Application & Management Credit Data Aggregation Credit Scoring

Backup Document Aggregation Deduction Workflow Trade Promotion Settlement

Credit OnDemand

Cash Application OnDemand

Deductions OnDemand

Collections OnDemand

EIPP OnDemand

Receivables OnDemand Solutions

Product Strategy

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Mission: A Focus on Customer Value

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Approach to the Market

Editions give us the flexibility to address various market segments

Some Product Examples

Credit Decision Accelerator (SAP Accelerator)

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Cash Application OnDemand

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Payments OnDemand

ROI Examples

Automatically identify delinquent customers Collection dashboard prioritizes work Scoring models automate credit decisioning Customer self-service portal via Biller Direct

30% Staff Efficiency Increase

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

10% DSO Reduction

Sample Customer Results

$16 Million Annual

Savings from DSO

Reduction

5 Day DDO

Reduction

Improved Auto On-

Invoice Hit Rate to 98.5%

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Our Customers are Saying…

“HighRadius really understood our business and developed solutions for us.”

“We really benefitted from

HighRadius’ receivables expertise.”

“We’ve reduced DSO significantly.”

“We were able to develop solutions that I’d never thought of before.”

“I knew as soon as I talked to HighRadius that they needed to help us with our SAP project.”

“Working with the

HighRadius team was a

great experience!”