(Gentle music) So the next slide the first one is about the internal market dynamics and then next I will be like what are external trends factors affecting the market. So internally we discussed it before a little bit but changes in pricing, so the pricing so far has gone down which it's not so good for existing players, but at the end this is the market dynamics and that means that there are more players in the market which is good at the end and to find the perfect pricing. It's okay for the banks because they there are some programs the price is so low that the bank even loses money on a specific program, but they can as we discussed before they can recoup the cost by cross selling all the products and it's a long-term commitment to the clients. The problem is with fintech companies because they only make money with one particular product which is supply chain finance, so there are some problems there and some companies get out of business or price starting to price differently these programs, which I will explain further. Then what we discussed also there is in some markets there is still a huge growth in new programs, but then in established markets like now a lot of banks a lot of fintech’s and also the corporate themselves instead of going to the next one, they’re first looking at hey what we still have in in this existing programs, because we spend so much money in efforts to increase it cost nothing we just have to onboard and bring new suppliers to the program. So there's big difference between established markets and in a new market and also here some corporates are looking after a few years to further increase the payment terms because in general payment terms go is going up so they have to adjust it constantly. Then buyer focus so there's a change in terms of buyers because the top names like the Walmart’s the AT&T of the world, they already have a program. So I cannot knock on their door say like,“ Hey, do you want to a supply chain finance?“ They would say like,” No I have already one.“ So it's basically everybody puts its flag, so once you're there it's very difficult to set up a second program because there's already one. So this is why now banks fintech are looking at companies maybe with a weaker credit rating or companies which are smaller, so there's a change here also in terms of buyer focus or maybe different industries. As I mentioned before like airlines which before nobody thought. So it's the first choice is already gone, so now it's looking at the second choice in terms of supply chain finance. Here Holistic Working Capital solution is just like combining different solutions so not just selling one, you go to a client's say like,” What are your goals?“ Yeah I'm having these suppliers, I have these countries, they say okay for this country so for this type of spend you have we should allocate dynamic discounting program for these ones a supply chain finance for this one a P-Card model, so just playing around and combining different type of supply chain finance financing solutions. Then changes in pricing mechanism, so this is sorry I forgot this one mid-market, so mid-market is we mentioned before the top names have already been gone. Now a lot of banks and fintech’s player are looking at the mid-market. So companies which have annual sales up to one billion which are still substantial but maybe where the spend is smaller, so there you have to really be careful. Is the spend like with hundred thousand of suppliers or is it quite concentrate, where it makes sense to set up a program. So a lot of specific banks mainly regional banks which have relationship with these local mid-market companies are looking at that and these companies are mostly less price sensitive because there's less banks who wants to work with them. It's not like a AT&T where I know almost hundred banks worldwide want to work with AT&T. If you have a smaller company there's less choice and they're less price sensitive, so this is what we see here which represent maybe a higher risk, but a bigger reward. Then the changes in pricing mechanism. It's kind of related to that, it's that basically now as we discussed there is a there's a trend of pricing going down and as we discussed before the biggest cost are at the beginning of setting up a program. So what are you doing if the potential is smaller you know with a smaller company. What some companies do you know if this is day zero this is year five. So if you look at the smaller company you still have the same kind of implementation cost okay, these are the cost. It still costs you doing the connection with the ERP onboarding supplier, it's the same cost, but the potential is smaller because maybe the spend is smaller because these are smaller companies. So instead of hoping for this type of revenue based on the trading volume based on the suppliers coming on board okay, some fintechs and also banks started to charge upfront fees. So they charge the buyer which is new and they charge the buyer maybe one-time fee and says like,” Look if we come on year five or year three at this, we will consume this money.“ So we will pay your back. We just want to make sure that this gives you enough motivation to really push the suppliers to come aboard because we have already cost allocated for that so we want to make sure that that you will grow the program because the buyer has already increased his payment terms. So he already had made a lot of cash. So the point is like okay you made it already so much cash, give us some of that to establish a program that new supplies can come onboard. If they don't come on board we covered our cost, if they come on board we are consuming this cost with the revenue we generate. So after like year six, this is the revenue which then the fintech company does. So that's a new pricing mechanism which is kind of starting now okay. Then program acquisition maybe it's not like the right word but is basically you see here what I mentioned before everybody has put his flags in the different corporates. Some programs are not successful, so now there are some other companies like competitors say like they go to this competitor and say like hey look at your program, it has no value. They have maybe five suppliers on board. You have not achieved the results you have done. I can do it for you. So they are kind of some place which acquire programs from other people or some of them are just happening because there is acquisitions going on for example Heinz and Kraft, so Kraft Foods was a program run by Citibank. Heinz was a program run by a PrimeRevenue, but Kraft I think bought Heinz or there was a merger. So now who is running the program, both? Or you know so at the end I think in this case Citibank won it and now they are managing the whole program and PrimeRevenue lost it. So there are all these dynamics going on and I think there will be more and more coming up as the market matures there's less programs and new programs and we’ll just acquire the other ones. Then regional focus we discussed before so still huge opportunity in Asia and in Latin America and Africa. So if I would be looking at this market I would definitely look at Asia, Middle East, Latin America and Africa. Huge opportunities there and less competition obviously, but more difficult because you have to educate the market and you need also the financial institutions willing to participate. Then the concept of one platform, so we discussed earlier in this course there’s dynamic discounting. There is accounts payable financing, there is P-Card models, so far if you want to use one you go with one party like for example a self-funding program dynamic discounting you cannot go to a bank because the bank say like yeah if you sell if you fund it yourself as a buyer why what is my role? So either you go depending on what you want you use a specific provider, which at the end you can end up with multiple different platforms. So what we see now is some of these players are providing a one platform concept where you go and then you can use different solutions based on you need because this is better, of course, for the buyer for the suppliers and avoids that the buyer goes and uses different competitors. The tail, the tail is also a new development based on kind of the saturation of the existing market. It's basically, so every spend or every supply chain over every buyer is like that alright. So you have the top 5% or normally you say like a top 20% responsible 80% of the volume, I would say sometimes it's like even less, it's like the top 10% okay. This is accounts payable financing, so basically biggest volumes you want to these are strategic suppliers, if you just increase maybe in a few days your payment terms huge benefit in terms of cash flow, but you also want to give them the opportunity to have the cheapest funding available, so through external banks financing. Then here you have kind of self-funding programs okay. This is basically, where you use your own cash to pay the suppliers, these are smaller suppliers you can charge them more and you don't need this whole KYC which the banks needs, because they're starting a relationship even there's no credit risk with the supplier but they are providing financing to an external party, so they had to do compliance and checks. With dynamic discount and you already have as a buyer relationship and basically these providers are looking this direction and to extend it to smaller suppliers and they are looking to extend it in this direction to increase, but then there is still a huge benefit of the tail, so what are you doing with this? So now a lot of providers are looking how to support and finance this kind of tale suppliers, the micro suppliers, the small suppliers and for that you need very cheap onboarding cost, everything automated which I had not seen a solution right now offering that but there's a lot of discussions. Then obviously new technologies in terms of market dynamics, so there's new technologies in terms of we've got artificial intelligence which we will focus in a few slides after blockchain technology, cloud-based solutions, so analytics which makes it more easier to refocus on the right supplier. So there's a lot of new developments in terms of technologies and value-added solutions, so basically add-ons where you provide like for example you analyze the spend like what we discussed in this exercise what are the right payment terms with Barry Callebaut, it was like just like 120 days but there are different ways how to calculate that. You can look at the industry. You can do at the country. What are the norms there? What are the competitors doing? So this kind of services are starting to come in as added value services to improve the effectiveness of supply chain finance and then partnerships before everybody was competing. The banks against the fintech. The banks between each other. So now you start to see that suddenly banks are starting to collaborate and banks are starting to work with fintech. So there's some examples like C2FO a dynamic discounting provider working with Citibank when for example a client wants to self-fund some of the suppliers and then use Citibank for others, they have one offer as a partner. So this is also a new kind of market dynamics which we see now.