Introduction to Overlay+ O2C...Overlay+ O2C. Streamline processes from order management to reporting for corporate clients, making it easier to reconcile funds and get paid. Introducing

Identitii Limited | ASX:ID8

September 2019

Introduction to Overlay+ O2C

Streamline processes from order management to reporting for corporate clients, making it easier to reconcile funds and get paid.

Introducing Overlay+ Order2Cash

How it works

Know when you will bepaid, by whom and what for

Streamlining the order-to-cash cycle

Reconciliation

AuthorisePayment

Receive Invoice

Send Invoice

Payment initiation

Receive payment

Token

Build/Produce

Good/ServiceRequest

PlanResource PO

Prepare/Pack Ship

Delivery

GRN / Delivery Confirm

Produce

Receive Goods/ServicePay

Sale Send RTP

Receive RTP

Confirm & InitiatePayment

SUPPLIER

BUYER

BUYERBANKING

END CUSTOMER

SUPPLIERBANKING

TokenToken

Token

Overlay+

Token

Token

Timeline & Audit Trail - Token

Suppliers control what payments to ask for

Capture supporting documents to the trade

Order2Cash assists Buyers to initiate payments into their bank for subsequent approval and sending

Payment arrives to supplier with token.

A strategic approach to blockchainStage 1

Tokenisation, document hashing & verification

Stage 2

Secure information sharing & permissioning

Stage 3

Inter-blockchain bridging & connectivity

Stage 4

Decentralized ecosystem with blockchain operatingsystem

Identify and collect any type of structured or unstructured data from any source

Permission and securely share tokenised data internally or externally

Tokenisation

Key functionality

Reconciliation

Draw funds fromBuyer account

Receive Invoice

Send Invoice

Receivepayment

Token

Build/Produce

Good/ServiceRequest

PlanResource PO

Prepare/Pack Ship

Delivery

GRN / Delivery Confirm

Produce

Receive Goods/ServicePay

Sale Send RTP

Receive RTPAuthorise

Direct Debit

SUPPLIER

BUYER

BUYERBANKING

END CUSTOMER

SUPPLIERBANKING

TokenToken

Overlay+

Token

Process Direct Debit

Direct DebitDE

Token

Token Token

Enrichment

1

Payment Request

2

Payment Collection

3

Reconciliation

4

Timeline & Audit Trail - Token5

Standard features

Overlay+ Timeline & Audit Trail - Token

Enrichment Request To Pay Payment Collection Reconciliation

Transaction reconciliation

Token audit trail lookup

PO Tokenisation

Virtual Accounts

Request to Pay negotiation

Request to Pay AISP Integration

Credit EFT Initiation

Direct Debit Authorisation

Delivery <> Invoice reconciliation

Invoice tokenisation

Payment gateway integrationRequest to Pay InitiationRecurring initiation

Document proof & verification

Bank transaction & balance feed

Planned PaymentsIntention to Pay

Buyer metricsCredit Management

Supplier, Buyer, Trade Financing

Credit Management

Chargeback Management

Flexible TermsPay Date, Pay Amount

Credit Note tokenisation

Reporting

DSO Management

Buyer white-labelled app

PayRec

APIs Foundational Financial API

KeyFunctionality

ImmutableEvent Store

Auditability & Data verification

PermissionedData Store

Blockchain Connectivity

KeyFunctionality

PO, Delivery and Invoice Tokenisation ReconcilliationPayment CollectionPayment Request

• Interfaces and APIs for the collection of information from corporates, third party sources and bank systems;

• Permissioned messaging system for communication between instances of Overlay+ through the identitii network to enable permissioned information sharing; &

• Creation of tokens to link data sources across legacy systems.

Distributed Information Sharing

Integration

UserInterface

FinancialServices

Integration

FinancialServices

UserInterface

Integration

UserInterface

FinancialServices

Integration

UserInterface

FinancialServices

?T0K3N

?T0K3N

?T0K3N

?T0K3N

?T0K3N

BRANCH

OTHER BANK

TEAM A

TEAM B

?T0K3N

?T0K3N

The Overlay+ timeline is a powerful view into the integrity of your data:

• Trigger actions within and outside the platform;

• Record a cryptographic audit log of activity; &

• Externally validate integrity information without disclosing sensitive data.

Timeline

End-to-end coverage of transactionsERP

PayRecPO submissionPO acknowledgement

EFT Payment initiationAccount statements

Invoice presentment Plan & notify payment

Supplier Buyer

corda node

Debit EFT consent

API API

Interaction Module functionality

Debit EFT consent

API API PayRec

ERP

EFT Payment initiation Account statements

APIRPA

Value networks

corda node

corda nodecorda node

Bank Bank

PayRec PayRec

Debit Limit Mgmt

Payment aggregation

API

Supplier Company is requesting payment of AUD 30,000.00 for 3 invoices to be paid via Direct Debit on 14 July 2019

I agree, debit my account on 14 July 2019

13 Jun 2019 23 July 2019

13 Jun 2019 28 July 2019

13 Jun 2019INV982305

INV358574

INV2583568

31 July 2019 AUD 20,000.00 USD 150,000.00of

of

of

AUD 10,000.00 USD 60,000.00

AUD 30,000.00 USD 247,000.00

ISSUE DATEINVOICE DUE DATE PAY AMOUNT TOTAL AMOUNT

Payment will be allocated towards

ApproveReply

Supplier Logo

User friendly access options

Supplier Company is requesting payment of AUD 30,000.00 for 3 invoices to be paid via Direct Debit on 14 July 2019

I agree, debit my account on 14 July 2019

INV982305

INV358574

INV2583568

AUD 5,000.00

AUD 10,000.00

AUD 15,000.00

INVOICE PAY AMOUNT

Payment will be allocated towards

ApproveReply

Supplier Logo

PayRec

Benefits for banks

Lower operational costs

Minimise the operational and personnel costs required to investigate payments. Reduce transaction fess by enabling multiple invoices to be paid at once. Improve financial crime compliance.

Drive new revenue streams

Use Open Banking to unlock insights into customer behaviour and bring new, targeted products and services to market faster, to drive new revenue streams.

Enhance existing technology

Overlay approach enables existing technology systems to scale to adopt new technologies such as RPA, blockchain and AI. Extends the life of costly technology already in place.

Improve customer experience

Improve settlement times for payments, enable the complete value chain for customers to help them improve working capital position and increase cash flow visibility and forecasting.

Improve cash forecasting and visibilityImprove planning and reduce unallocated cash thanks to better knowledge of fund movements

Less open items and better cash allocation

Have less past due items, reduce transaction fees and reduce the cost of collection channels

Complete value chain enablement

Enhance existing treasury and payment systems, help buyers self serve and create an auditable activity trail for reporting

Know when you will be paid, by whom and what for

Supplier benefits

Buyer benefits

Easier reconciliation of goods

Faster dispute resolution via direct supplier connection

Greater control of payments

Pay by any method and see real-time

analytics

Reduce operational costs

Pay multiple invoicesReduce manual

intervention

Get better terms from suppliers

Less past due payments

Reduce AR exceptions

Why Identitii

Live with HSBC

HSBC’s Digital Accounts Receivable Tool (DART) is live with HSBC corporate clients and is built on Identitii’s tokenisation technology

Unique tokenisation

TokenIDs refer to original data, providing high levels of security, auditability and permissioning. Can be used with or without the private blockchain layer

Overlay approach

Works with existing and emerging technology infrastructure, on-premise or in the cloud, using APIs to provide fast time to market

Partnership model

Create new, digital banking experiences for your customers, using Open Banking to improve both the bank and corporate client’s business