Taulia — Taulia Investor Presentation (January 2010)

Deck context

About this deck

Taulia Investor Presentation (January 2010) This unknown round presentation from 2010 contains 21 slides and records $0 in funding. Its sequence moves through cover, team, solution, problem, and later supporting sections. The outline below pairs every slide with its extracted text so researchers can study how the argument develops, not only how the pages look.

Key facts

Presentation structure

Slide-by-slide outline

1. 01

   Investor presentation cover, January 2010Cover

   Taulia. Investor Presentation. January 2010.

2. 02

   A team of seasoned entrepreneurs from EbydosTeam

   A team of seasoned entrepreneurs. Bertram Meyer, CEO. Markus Ament, CFO and VP Products. Philip Stehlik, CTO. Martin Quensel, MD Europe. Backgrounds include Ebydos, ReadSoft, SAP, BCG and an Insead MBA. Ebydos AG was an AP automation provider with an SAP focus, self-funded and profitable, sold to ReadSoft in 2006 for $12mn, with 550 running implementations including Apple, HP, Intel and Lockheed Martin.

3. 03

   What Taulia does: an SAP-certified invoicement suiteSolution

   Helping SAP customers to optimize their financial supply chain. Focus: SAP certified Invoicement Suite for dynamic discounting and supply chain finance, plus vendor portals. Target: major corporations in the US and EU. Architecture: SAP add-on plus SaaS. Enable clients to save money on a continuous basis.

4. 04

   The financial supply chain today misses the opportunityProblem

   Financial supply chain today: missing out on opportunities. Approved invoices sit idle until they are due, and due dates are extended to the limit: 120 days at Anheuser-Busch, 60 at Hertz, 56 industry average, 45 at Apple. Suppliers carry high DPOs and high working capital requirements, have no access to capital markets and face financing that often costs 12-15% annually, while buyers typically hold an investment grade rating and good access to the capital market.

5. 05

   Solution: an on-demand financing facility for suppliersSolution

   Solution: offer suppliers an on-demand financing facility. One, the buyer sets the interest rate and liquidity limit in the Taulia SAP add-on. Two, approved invoices are offered for early payment. Three, the supplier selects a payment date and accepts the discount. Four, payment information is fed back into the SAP system.

6. 06

   Product: Taulia Analyzer finds the savings in SAP dataProduct

   Product overview: Taulia Analyzer. Identify the potentials from real SAP data.

7. 07

   Product: Dynamic Discount Optimizer sets supplier termsProduct

   Product overview: Dynamic Discount Optimizer. Conveniently set up your suppliers for early payments.

8. 08

   Product: Vendor Portal triggers early payment on approved invoicesProduct

   Product overview: Taulia Vendor Portal. Trigger early payments for approved invoices.

9. 09

   Product: the early payment discount is the financing feeProduct

   Product overview: Taulia Vendor Portal. Early payment is taken against a discount, which is effectively the financing fee.

10. 10

    Sales approach built on the ReadSoft-Ebydos install baseBusiness model

    Sales approach. The existing ReadSoft-Ebydos customer base is an asset, with more than 500 productive installs in the US and Europe. Sales run either direct through a small dedicated sales team or via the ReadSoft sales team. Partner sales via invoice automation providers, e-invoicing networks and financial institutions. Broad marketing through trade shows, EcoHub and case studies. Taulia complements e-invoicing networks.

11. 11

    How Taulia's business model compares to the alternativesCompetition

    Taulia targets a specific segment: comparison of business models. Receivables Exchange does factoring via online auctions. Banks capture the value for the financing entity. PrimeRevenue and Orbian finance the supplier at buyer rates with no recurring savings. Ariba keeps procurement as its management focus and main revenue source. JPM-Xign has the business model closest to Taulia's. Taulia provides recurring savings, flexibility and self-funding, and is profitable at small margins.

12. 12

    Competitive overview: partnering could boost momentumCompetition

    Competitive overview. Partnering could boost Taulia's momentum.

13. 13

    Pricing assumptions: $170,000 of recurring revenue per dealBusiness model

    Pricing and assumptions for early payments, giving recurring revenue of $170,000 per deal. Annual spend of current ReadSoft-Ebydos clients: HP $104bn, Lockheed Martin $38bn, Apple $29bn, Intel $29bn, GlaxoSmithKline $25bn, Coca-Cola Enterprises $20bn, Kellogg's $11bn, Weyerhaeuser $11bn, Sempra $9bn. Average spend $10bn falls to $0.8bn of early payments after removing non-invoice spend and applying 15% adoption. At 10% interest and 20 days early that is $4.5mn of additional discounts, $2.5mn of client benefit after a 4% cost of capital, and $170k of Taulia revenue on a 4% success fee.

14. 14

    Financial plan: profitable in 2013Financials

    Profitable in 2013. Financials in thousands of dollars. Revenues: 300 in 2010, 1,250 in 2011, 2,900 in 2012, 5,300 in 2013, 8,450 in 2014, 12,800 in 2015. Expenditures: 1,600, 2,650, 3,450, 4,150, 4,950, 6,300. EBIT: -1,300, -1,400, -550, 1,150, 3,500, 6,500. Projects sold rise from 2+2 to 25 and total staff from 14 to 28. Renewal rate 80%. Steady-state revenue of $240,000 per year for the entire Taulia Invoicement Suite, not yet including additional margin from providing financing.

15. 15

    Market size: $0.7 billion in the USMarket

    Market size (US): $0.7 billion. Top-down estimate: Fortune 500 total spend $10.6 trillion, invoiced spend at 65% is $6.9 trillion, estimated adoption at 25% is $1.7 trillion, early payment discount and interest at a 10% rate and 30 days early is $14 billion, and a 5% solution provider share is $0.7 billion. 2008 factored volumes: US $140 billion, UK $260 billion, world $1,866 billion, with factor revenue around 1%.

16. 16

    Use of proceedsAsk

    Use of proceeds. Third-party financing integration in 2010: $400-500k. Marketing campaigns in 2010 and 2011: $100-150k. Business development in 2010 and 2011: $700k. Partner integration in 2010: $200k. Customer implementations in 2010 and 2011: $200k.

17. 17

    Further financing and exit scenariosFinancials

    Further financing and exit. A second financing round in 2011 or 2012 at a significantly improved valuation, supported by an established solution, proven business model, powerful references and a larger set of partners. Exit scenarios: sale or merger to an e-invoicing network, a financial institution or SAP, or an IPO. Comparable given: Ariba with revenue of $340mn, subscriptions $222mn, EBT $9.5mn and market cap $1.2bn, against Taulia at revenue $13mn, subscriptions $13mn and EBT $6mn.

18. 18

    Section divider: back-up slidesCover

    Back-ups. Section divider introducing the appendix slides.

19. 19

    Back-up: dynamic payment terms SAP cannot handleProduct

    Dynamic payment terms: fixing a second imperfection along the supply chain. When invoice approval falls past the discount days, 50-69% of discounts are not taken while 30-50% are. SAP currently cannot deal with dynamic payment terms; Taulia can, so the buyer is always entitled to a discount.

20. 20

    Back-up: vendor portal integration with SAPProduct

    Taulia Vendor Portal integration provides suppliers with up-to-date status information: invoice status and scheduled payment date, plus remittance advice and payment details. It extracts complete actual PO details for visualization or download in supplier portals and lets suppliers flip POs into invoices. Suppliers can submit new address, bank or payment method details online, and the buyer's corresponding master data can be updated automatically. Message threads linked to the underlying business document allow quick dispute resolution.

21. 21

    Back-up: high-level architectureProduct

    High-level architecture: easy online data exchange with SAP. SAP certified integration powered by NetWeaver, flexible regarding third-party integration, widgets, standardized data exchange via XML and batch, linking with single sign-on, and bidirectional updates of the buyer's data including vendor master data. Fast response times, easy customizing, highly secure. The buyer's SAP system sits inside the buyer IT environment security zone alongside the Invoicement Suite, connecting to subscriber and partner plug-ins and to e-invoicing networks or vendor portals.

Research notes

Questions about this deck