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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 2
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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 3
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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 4
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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 5
• 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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 6
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 – Privileged & confidential 7
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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 9
“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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 11
-10 bailiffs-Shared service centre in Asse-A network of bailiffs/ lawyers with focus on Brussels region
Example of one of our partners: Hugebru
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 12
-Initiative for “Ethical debt recovery practices”-By Bailiffs-Supported by Beweging.net
Example of one of our partners: MyTrustO
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 13
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.
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 15
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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 16
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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 17
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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 18
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
11/12/2017 ©VIRTEO 2017 – Privileged & confidential 19
Top Related