PEPPOL the new frontier in EDI NEECOM Meeting

PEPPOL the new frontier in EDI NEECOM Meeting May 16, 2018 www. babelway. com / 1

Agenda 1. What is PEPPOL? 2. History of PEPPOL 3. Advantages of PEPPOL 4. The future of PEPPOL? 5. Conclusion www. babelway. com / 2

What is PEPPOL 1 2 Pan-European Public Procurement On-Line PEPPOL is a set of artifacts and specifications enabling cross-border e. Procurement 3 4 The use of PEPPOL is governed by a multi-lateral agreement, owned/maintained by Open. PEPPOL enables trading partners (B 2 G/B 2 B) to exchange standards-based electronic documents over the PEPPOL network (based on a 4 -corner model) www. babelway. com / 3

What is PEPPOL Open. PEPPOL - a non-profit association that developed the PEPPOL project and is now responsible for maintaining and developing the PEPPOL standards and framework. Their mission is “to enable businesses to communicate electronically with any European government institution in the procurement process, increasing efficiencies and reducing costs”. www. babelway. com / 4

What is PEPPOL Parts SML (service metadata locator) SMP (service metadata publisher) is a central registry with the ID of all PEPPOL recipients and a pointer to the SMP that holds information on participants. is an electronic registry that contains data about PEPPOL recipients’ delivery details (organizational profiles, document handling capabilities and the identity of the access point that connects them to the PEPPOL network). www. babelway. com / 5

What is PEPPOL Authorities (PAs) serve as “trust anchors” on behalf of the PEPPOL Coordinating Authority in the domain within their responsibility. In particular, the PEPPOL Authorities are responsible: for signing the PEPPOL Access Point (AP) and Service Metadata Publisher (SMP) provider agreements with service providers within their domain to ensure that AP/SMP providers comply with the PEPPOL Transport Infrastructure Agreements, protecting the trustworthiness of the PEPPOL network, its model and operations. www. babelway. com / 6

What is PEPPOL Terms Access Point - (AP) is a service for transmitting e-procurement documents via the open network PEPPOL. Participant: Any registered buyer or seller capable of initiating or receiving a transmission on the PEPPOL network. www. babelway. com / 7

What is PEPPOL Basics 1 2 Open network standard exchanges between participants Sender and receiver do not have to interact 3 4 Ease of set up, ease of use and increased automation Similar to VAN – but standardized and no fees www. babelway. com / 8

How does PEPPOL work? PEPPOL Receiver Registry SENDER 1 RECEIVER 4 up ok Lo Delivery 2 SENDER Access Point 3 RECEIVER Access Point www. babelway. com / 9

Agenda 1. What is PEPPOL? 2. History of PEPPOL 3. Advantages of PEPPOL 4. The future of PEPPOL? 5. Conclusion www. babelway. com / 10

History of PEPPOL Open. PEPPOL was established on September 1 st, 2012 after successful completion of the PEPPOL project. The PEPPOL project was a pilot project funded jointly by the European Commission and the PEPPOL Consortium members. The PEPPOL project was initiated in 2008 with the aim of simplifying electronic procurement across borders by developing technology standards that could be implemented across all governments within Europe. www. babelway. com / 11

History of PEPPOL The objective was to enable businesses to communicate electronically with any European government institution in the procurement process, increasing efficiencies and reducing costs. The PEPPOL project has contributed to the development of a pan-European, standards-based IT infrastructure. PEPPOL has not replaced, but built upon, the existing strengths of national e. Procurement systems by using information and communication technologies to enable them to connect with each other. www. babelway. com / 12

History of PEPPOL developed the Business Interoperability Specifications (BIS) for common e. Procurement processes such as e. Catalogue, e. Orders, and e. Invoices to standardize electronic documents exchanged and validated through an open and secure network, between sending and receiving Access Points for public sector buyers and their suppliers across Europe. www. babelway. com / 13

History of PEPPOL Key milestones 2008 Launching of the PEPPOL project 2011 Completion of the PEPPOL project 2012 Norway – PEPPOL compulsory (B 2 G) 2014 Austria – B 2 G e-invoicing compulsory - PEPPOL Sweden – B 2 B / B 2 G UK – PEPPOL compulsory (NHS) 2015 NL – B 2 B / B 2 G (Simpler. Invoicing) 2016 Belgium – B 2 G / B 2 B www. babelway. com / 14

History of PEPPOL – current state 143 214 Certified Access Points in 16 EU countries plus the US and Canada Open. PEPPOL members from 25 countries Planned expansion www. babelway. com / 15

History of PEPPOL – current state 8 PEPPOL Authorities Agency for Digital Italy (Ag. ID), Italy Beleid en Ondersteuning – Stratégie et Appui (BOSA), Belgium Agency for Digitisation, Denmark Agency for Public Management and e. Government (Difi), Norway Department of Health (NHS), England Swedish National Financial Management Authority (ESV), Sweden Ministry of Economic Development, Poland Simpler. Invoicing, Netherlands www. babelway. com / 16

Agenda 1. What is PEPPOL? 2. History of PEPPOL 3. Advantages of PEPPOL 4. The future of PEPPOL? 5. Conclusion www. babelway. com / 17

Advantages of PEPPOL Advantages EDI today – can take days/weeks to connect – complicated and time consuming – mapping is highly technical PEPPOL enables integration (machine/machine) not requiring customer or supplier set-up Example Large telecom companies send thousands of customers 1 invoice monthly With PEPPOL – add once and send in batch – delivered to customer via access points differentiated by PEPPOL ID number www. babelway. com / 18

Advantages of PEPPOL Advantages 1 GAME CHANGER – 100’s, 1000’s SMB’s – easy! 3 BIS is international standard, however, as an Authority – you can request deviation for recognized format (UBL) 2 Agreed upon format – UBL – specific profile/fields/PEPPOL BIS (business interoperability specifications) for all sorts of messages – full procurement setup. 4 Specifications may differ by country. www. babelway. com / 19

Advantages of PEPPOL Ease of Use PEPPOL standard is AS 2 for transmission (AS 4 in future) PEPPOL is governance – agreed files, transmission, rules No Interop fees (between access points) You must agree to work with other access points (even competitors) You must adopt processes and join Open PEPPOL, sign docs and agree to no fees PEPPOL is also a mechanism – no need to work with other party or do manual set up www. babelway. com / 20

Advantages of PEPPOL Ease of Use PEPPOL is a fully open model – each organization may choose any access point PEPPOL must be adopted by the hubs (government) to push to the spokes (suppliers) EU - Institutions will be obliged to be able to receive electronic invoices. Challenge will be in critical mass – making the adoption of PEPPOL compulsory. www. babelway. com / 21

Advantages of PEPPOL Existing EDI • Small amount of “Hubs” • Much larger amount of “spokes” www. babelway. com / 22

Advantages of PEPPOL Hundreds or Thousands of Spokes for each Hub www. babelway. com / 23

Advantages of PEPPOL – Features OPENNESS: • No monopoly, no exclusion possible • Every organization can become an PEPPOL Access Point • Non-profit institution / Governance www. babelway. com / 24

Advantages of PEPPOL – Features NO INTEROPERABILITY FEES ! www. babelway. com / 25

Advantages of PEPPOL – Features NO SET-UP FOR BOTH SENDER AND RECEIVER • Routing : Unique receiver discover mechanism • Format & transport well defined • Validation at runtime www. babelway. com / 26

Agenda 1. What is PEPPOL? 2. History of PEPPOL 3. Advantages of PEPPOL 4. The future of PEPPOL? 5. Conclusion www. babelway. com / 27

The future of PEPPOL European directive (2014/55/EU) This directive requires mandatory use of this technology in public procurement processes by member states as of November 2018. Among other objectives, the regulation is designed to foment cross-border trade relations with the creation of a common standard, which will be interoperable. By 2020, the European Commission plans to make electronic invoicing the most commonly used method in Europe. www. babelway. com / 28

The future of PEPPOL has the potential to spread beyond Europe in the long term. Recently, the Russian government signed up to access the network. North America will join at some point, making PEPPOL a global system. PEPPOL is reaching critical mass in the EU, allowing businesses to connect to a large enough number of partners to make it their first choice. We believe it is just a matter of time. www. babelway. com / 29

The future of PEPPOL Access Point provider questions Do you have PEPPOL Credentials & technical expertise? How is your infrastructure (security, availability, . . . )? Do you own and operate your own PEPPOL technical infrastructure? Describe any complementary EDI or e. Business services you provide that could enhance the PEPPOL experience? www. babelway. com / 30

Agenda 1. What is PEPPOL? 2. History of PEPPOL 3. Advantages of PEPPOL 4. The future of PEPPOL? 5. Conclusion www. babelway. com / 31

Conclusion Today – what are the challenges? Fees between service providers not transparent. Not enough invoices sent/received electronically. Cost per transaction too high (perception). Set-up cost too high for the SMB market www. babelway. com / 32

Conclusion Why PEPPOL ? 1 2 Open network, no exclusion possible. Cost efficient for YOU and the end user. 3 4 Easy. Single activation. It will increase momentum and the adoption rate. www. babelway. com / 33

Conclusion Why PEPPOL – point by point Current challenges using standard EDI Opportunities of using PEPPOL Partner connections can sometimes take weeks/months due to complexity PEPPOL standards and no requirement to connect directly greatly reduces set time High cost for connecting, transmissions, and optional services Low cost to connect and dramatically less time required A multitude of formats and versions required Strict governance and adherence to PEPPOL standards make it much easier A multitude of protocols are available for communication Simplified standardized protocol with built in security features Agreements are non-existent – and standardized connections are rare All trading partners must abide by set agreements based on PEPPOL rules It is hard to change suppliers due to multitude of maps and connections It is easy to change suppliers as users can utilize any Access Point for PEPPOL It takes months to expand your network of trading partners via traditional EDI You can add unlimited trading partners easily as long as they are PEPPOL approved www. babelway. com / 34

Conclusion It’s now or never - at least in the EU The momentum is triggered by the European Union Volume needs to increase rapidly to sustain and grow It is a win/win/win situation Suppliers Service providers Software companies Accountants Customers www. babelway. com / 35

Questions www. babelway. com / 36

Contact Rick Stein Director, North American / UK Sales 404 -664 -6789 rick. stein@babelway. com www. babelway. com / 37

Thank you Questions? Babelway, 2150 South 1300 East, Suite 500, Salt Lake City, UT 84106 + 1 (404) 664 -6789 | info@babelway. com | www. babelway. com