Supply@me Capital (LSE:SYME) — Annual General Meeting

0:00 Good morning, and welcome to the SUPPLY at ME Capital PLC Annual General Meeting. Throughout this recorded presentation, meeting's attendees will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right hand corner of your screen. Just click on Q and A, scroll to the bottom, type your question and press send. However, due to the number of attendees today, the company may not be in a position to answer every question submitted. Therefore, all questions will be reviewed with responses published on the Investor Me company platform where appropriate to do so. I'd now like to hand you over to David Ball, Chairman of the Annual General Meeting. Good morning.

0:33 Good morning. Ladies and gents, I'd like to welcome you to the Annual General Meeting by me, CAPITAL PLC, which has been convened by a notice of AGM dated 06/06/2022. As you already know, my name is David Ball, and I will be chairing the meeting. Before we move to the formal business of the meeting, I'd like to introduce you to my So to my right, Alexandra Sanbonini, chief exec, chief financial officer, Amy Benning. Alice, who's the chief people officer. If I get these titles wrong, do let me know. And and then Stuart Nelson, who's head of enterprise risk management online, which we won't be able to see, but but two presenting will be Nicola Manini, who's the origination head of origination.

1:29 There we are in the middle. And Tom James, who's the chief exec of TradeFlow. So there's the team presenting, and we'll answer any questions as we go go through. So the b business of this meeting is set out in the notice of meeting, which with your agreement, I propose to take as read. If anyone wishes to object, please raise your hand now. Excellent. So thank you. I propose to move the ordinary business set out in the notice of meeting for all the resolutions to be moved today to vote by poll. I hereby demand a poll of the on behalf of myself as chairman in accordance with article 61 of the company's articles of association. Votes cast will, for the purpose of the poll, include votes cast by proxy.

2:20 It's my intention as the holder of a number of proxies in respect of which no direction has been given the votes. The shares represented by such proxies in favor of each of the resolutions in the event of the poll.

2:36 Vote by proxy. I do apologize. There's quite a lot here to read out. Vote by proxy, discretionary votes, absentees are shown on the screen behind me in due course for all the resolutions. A poll has been badly demanded, and, accordingly, they asked a representative from level registrars, which are there,

3:01 to conduct the poll and act as scrutineers. Resolutions one to 11 inclusive of proposals ordinary resolutions and require simple majority to be passed. Resolutions twelve and thirteen are proposed as special resolutions, which to be passed require majority of 75% to vote in favor of the resolution. I now put the resolutions to the meeting and ask those of you voting by polling paper to ensure that your name names of members you are representing are clearly shown on the polling paper, which will be handed to you and indicate by signing the appropriate box where you vote for or against respective resolution. Please then hand your polling paper to representative from scrutineers who will then collect them.

3:49 So, chap, in case of joint holders, would members of proxy's represented members please write the name of other joint holders on the polling paper? I should add that any shareholder rep present who had submitted proxies by vote by post, sorry, who would not wish to alter their votes need not voting persons. Indeed, it will make the vote count simply if those shareholders who have already submitted proxies to refrain from voting by polling paper. Will those shareholders requiring polling papers hold up their hands?

4:47 Anymore? Is that okay? So the the polling papers will now be processed. It will take some time to complete the counting of the votes, I'll proceed with the remainder of the business. With the meeting, results of poll will be announced as soon as it is known, but probably after the presentation in practice. The executive will now give a brief presentation highlighting the key events of 02/2021 and more recently, we review to updating shareholders and answering a number of questions that we have received in advance of the meeting. Once we've finished the presentation, we will further adjust some key themes covering off several of the questions received. And, of course, we'll have questions from from the floor after that. So without further ado, can I hand over to Alexandra who will kick off the presentation?

5:35 Yes. Great. Thank you for being there. We know that there are difficult times, and so I think we think that it's it's great to see in person, the first AGM, the management team, the executive directors, the new directors, Albert, the our new chair, as as you know. And so I think that today is an opportunity also to see our progress, comment the last the last annual report figures, and also see the direction that we want to to follow because we continue to see opportunities, and we have a clear view on how we can create value for the company and for the shareholders.

6:29 And so today is an opportunity to present what we are doing and our view. So this is a slide, a very simple slide that we are using also with our investors, partners in order to summarize in one slide, you know, SUPPLY ME. We started in 2020. We did a lot in 2020. We we we follow also the approach of test and learn. And then '21, we basically we managed our first m and a deal with the Treflow. And we also improve the, you know, a clarification of the business model and the our, basically, revenue streams, including the wet labeling.

7:16 And, also, we improve our management team. So it's a very I'm very proud to have this team now in the in the company, in the group, our best in class. We selected the best in class, and we continue to work and have the mindset to be the best in class in the in the market. So, basically, this is what we we think that this slide can summarize our our group. If we want to move in the interest of time, Shanice, if you change slide, please. The background is is very easy. We we we continue to see now a long list of red in our screen in the market. Unfortunately, a lot of companies are suffering the the economic environment because, actually, it's not only a question of intrinsic risk of a specific business, but the economic environment is is very risky.

8:12 This is when we we I found SUPPLY ME and I work on SUPPLY ME, I didn't I didn't think about COVID, obviously. But now it's clear that SUPPLY ME and also Treflor, we are seeing great opportunities. But on the other hand, we can see also companies that are not ready to manage the risk. And so it's, again, a question that pointed to, you know, match the offering of our services, the appetite of the investors with the companies that both in the warehouse goods monetization or in transit basically needs to be supported. And then the increase of inventories is now a late motive in every supply chain.

9:00 If you move the the other slide, please, risk management is the key and also liquidity is the key. And you will understand also in the following slides that technically is now a question to align the appetite of investors. And you saw recently the announcement that we made Tuesday regarding the VeChain alliance that there is a dedicated slide, so we can discuss and comment together better the the pros of this alliance. But the point is to it's very simple. Companies need liquidity. CFO need to reshape their approach to manage their liquidity. They are finding new alternative solutions.

9:43 Banks are not able to support companies. This is the reality. They're not the dreams, but reality. And the the space of alternative asset management plus the digital asset space is only the space where companies, also large cork corporates, should start to discuss really in order to, you know, work as a partner, not as a supplier and client. And this is our space. It's what we've invested in order to improve the technology, the trade flow acquisition, the view to work now also in the digital asset space because,

10:23 you know, the demand is, as usual, is important. On the other hand, our mission is to find the right, you know, match trade off between the demand and the offering of capital to deploy is a is a is a paradox, but there's a lot of liquidity in the market despite at this moment where there is strong sell in every, you know, for every index of share price or shares. But, actually, there is a lot of liquidity to to deploy. Please, Janice, if you want to move. Okay. This is one of the most important slide of the this today presentation. We we use also this slide maybe with other different colors in the annual report, But it's very important because all the questions that we you raised correctly, and you you know that I'm happy to reply when I can via LinkedIn, via my direct email, I'm no problem to reply.

11:19 But I'm focused to try to explain better the business model. And this is also a a good a good way to understand that the delays in inventory monetization. I give you also today without passing any price sensitive information, but I give you more color about the background and what happened in order to ex explain, you know, what we are doing. Now following the the announcement of the last August regarding the trading update and the the launch of the global inventory fund, you know, that basically, you can see at the bottom of the client, the corporates, corporates in every jurisdiction, Italy, UK, UAE. We are looking at thanks to the equal activities companies in in every jurisdiction, basically.

12:09 You know that the the the our model is a commercial model. We are not lenders, just to clarify again. And the the crucial role is that the stock companies, so the boxing gray, that is a commercial counterparty of the corporates. This create a lot of interest of a lot of stakeholder or subject that are very keen to understand this model, including FRC, that basically said, okay. This is new, a new model. It seems financing.

12:42 Okay? But it's not financing because we work at this since 2015, actually, in regarding this. It's normal. This is is not like other facility that tends to to say that are managing the inventory, but in reality, our lenders. We are working on this model. This model technically needs a a stock company that buy an inventory monetized. I will be you know, I I know that we have few minutes. The key point is that we introduced this global inventory fund that is the fund that will take the first risk of each transaction. Okay? This is was the first concern that in 2020, when StormArbor, a contract still in place by just to be clear. So StormArbor is still in place. He's working with the company.

13:34 But when Strombargu pitched this model without the global inventory fund to 87 investors, Blackstone, Carval, KKR, Insight, JPMorgan, Goldman Sachs, all the best in class. Okay? The key concern of the investors was to firstly, there in the past, the the global inventory fund was not there. And so the equity piece, the first line or first loss was these funds asked to supplement to our balance sheet to cover basically this first loss, and we refused because it our mission is not to be a lender. Our mission is is to charge fees and to scale these fees. So we refused. Second problem was the stock company was under our balance sheet, and Amy was not happy. Okay? And so, actually, the point is that we segregated the the the stock company into a fund in order to allow to segregate the funding structure from our balance sheet, our market positioning to be a fintech.

14:39 You know, the fintech has bigger multiples compared financial services. If you if you you know an example, I know that a couple of shareholders say you are, you know, fanatic of Fundy Circle. But, actually, if you see Fundy Circle, I'm not referring. Fundy Circle, when started the initiative and decided to use their balance sheet to cover the equity of each transaction, the price go down to 4,400 to 8 because the market say, okay. You are a bank. You are no longer a fintech. Okay? So, actually, we're working on this, and this new structure that we launched in last August is very, very helpful because now when Nicolas, Stuart, Mark, me, we pitch the the investment opportunity to investors, they agree the structure. They say, okay. This is fine. It's a new asset class, but now the two main concern, banker upstream of the stock companies plus the equity line is in place.

15:41 And this for us is very, very important in order to ensure, you know, to start the monetization. So this is in briefly you know, I'm sorry. I invested a couple of time more, but I think that where where it's helpful to, you know, explain also a portion of delays, please. This is not a a news for for for you, for the shareholders, but we can confirm that

16:09 CAPITAL, the, basically, monetization plus the white label and also the the activity of Treflow are really a diversity approach to diversify the the business model. It's also appreciated by investors, also Venus, that entered, like the model to have a invest in a group where there is a the monetization that basically is the big innovation.

16:32 The white label that is basically how we can generate revenue as a software as a service business to be very simple. And the third one is the our angle of asset managers. Okay? That is an an interesting goal also to manage or be in the future through a more, you know, attention to the regulatory Chinese walls of the asset management and the business. But, actually, this is a a good way to have a a diversification of of a business line that will follow also the the demand of the market. For instance, in Italy, in the summer, we'll we'll see the issue of the the digital pledge regulation. This will create, for sure, an interest of banks to use our white label solution because we are ready to manage this kind of, you know, regulation.

17:21 This is an example. So to have in place this diversification, now I can understand that you can measure the value of this, and this is not reflected in the share price, obviously. But we are prepared to, you know, take these opportunities. We have a in my room, there is a world where there is the, you know, the trigger and the the milestone. And in the summer, for sure, you you will see this opportunity regarding the wet label. Okay. As I was saying, organization are made by people, and very and I think that now we have a a great team in place also thanks to the recent improvement of the board of directors and the management team that you nonexecutive

18:09 that now become three starting by today, nonexecutive directors, the folks and team member in Singapore. So I know that a lot of shareholders wrote me, say, you are investing expensive salaries. How you can pay the salaries?

18:25 I can also say that when placed our investment in 2020, said us, you are 12 persons, twelve twelve guys, and say how you can manage £300,000,000 of money on securitization with ten, twelve twelve person. So, basically, we have also to balance the fact that we are working with best in class or we want to work with tier one of investors. And so we have to balance this. Obviously, we are focused on to digitalize our processes.

18:56 We want to use technologies, but it's important on the other hand that we have the right person, the right team. So you have to accept that the company, the first step stage of its life cycle need to invest to create a team, also to change person. So we we the shareholders like us, we are not concerned if in the future we change, you know, employees, we find new employees.

19:21 We have a target. We want to be capital light, obviously. We want to use the the automation. We have a strong CFO team, CFO CFO function that is very keen to manage it in the right way, the the numbers and the investment and expenses, but you have to accept that the minimum investment in the technology, the people, in the marketing, a company that has in our hands a unique product need needed to do in the in the in the activity. And so the team now, I think that starting by today with the official appointment of Albert, Andrew, existing nonexecutive directors, Enrico Camarinelli that now is very excited about the blockchain initiative because, you know, that Enrico is also, you know, an analyst on this space and like him very well. He's also an expert.

20:11 The the the audit function with the with David, the CFO team, Mark Cavanaugh, that unfortunately today is not was not able to attend that is managing the operation. Amy, Alice, and Nicolas together with historical, you know, Eugene, Stuart, and me when we started in 2020 in in UK. I think that that now we have a a good balance. The tech and the remuneration, as you can see, angle are important for us. The board of directors in the self assessment of its competencies, the skills, is aware that the remuneration piece of the tech technology maybe are higher to improve. But now I think that we have a good balance of management team level and the board of directors.

21:03 If, Janice, if you want to move. I there is your part? Or Yeah. This is your slide. Mean Oh, yes. This is my slide. It's it's a joke. We need to manage the motion, a test that we make. So, actually, the the annual report highlights. Yes. It's my part because, actually,

21:29 what we did in 2021, trade flow acquisition. Why trade flow? Firstly, the inventory end to end, you know, approach. You saw the DP World transaction. This is an example where, basically, a company that has inventory and moved inventory can can be monetized using also Treflow, the framework of Treflow, to be clear. In addition, Treflow was very helpful, strategically helpful for, you know, the global inventory fund because Treflo is the investment advisory company also of the global inventory fund. So the question of the investors,

22:06 Alessandro, you are not expert in asset management. Yes. It's true, but we have a trade flow that has three years of track record, zero default. And John are great skills and capabilities in managing this, you know, type of asset class. And so, actually, this is the reason of the flow acquisition. We start in the end of twenty twenty. We land in '21. We work together, and now we are working together also to, you know, manage well at this configuration. So, actually, this is the reason of free flow. The second point is related to the funding. As I I was saying, you

22:46 have to accept that the company need to invest in their activities, in their operations. We have the sector that basically each investors, each founder has a its risk appetite. So NEGMA, Merkato, this type of providers has a short term appetite. Venus has another appetite. Okay? And and so we we we try to use the right, basically, right providers in the right moment also to take opportunities that I think that we we was able to to to take. The capital enhancement plan, we work with Venus Capital, the UBO, the beneficiary owner of Venus is public, Luxembourg, despite someone think that Luxembourg is a a

23:36 blind country. It's the only country where the UBO you can download from the company report. So, actually, you can see, you know, the the man behind, and you can see also the the approach and the the view that Venus is now managing with us. Also, we Venus is helping with the its ecosystem of funders, companies, partners in order to allow us to monetize

24:02 through the traditional route. So, actually, is is for us as a partner. It's not just a, you know, a investor into the equity with a view to see an increase of the share price. I can't say what is the expectation of Venus in in the share price, but I can ensure that they have, you know, a big expectation of the share price. And this is the reason because they invested before the annual report. Okay? This is risky if you can see, you know, also this angle.

24:34 Okay. What we have learned? I think that what we are continuing to learn is that there is an a a big interest of our facility. And so we have to be aware that in the future and now we have a lot of, you know, request to understand the business model like what happened with the FRC. We we reported this in our, basically, annual report, and thanks to the activities of the the audit committee, Amy, David, we manage the relationship well with the also, Jim when I was the previous our chair in we manage well the opportunity to describe the model with the that is a is a commercial model. So it's normal that when we launch something new, the the human the typical human person said, okay. I tend to compare this with something that I know.

25:34 And in in the in the market, there

25:36 is a lot of player that are trying to do something, but basically our lenders. If you see the financial, you know, accounts, the point is our product financing arrangement facilities that actually are financing. Okay? And they say, I'm monetizing venture. It's totally not not true. And so, differently, we are working on this commercial angle. And the batch word that we wrote in the RNS of Buchen is said, okay, in the in the hour long list. Basically, differently differently are real are are real, basically, project streams. The marketplace, the b to b marketplace, for instance, is another way to announce the fact that we are managing a commercial model where the companies will sell the inventory to us because in the future, we'll allow this company to sell inventory to third parties.

26:31 And no one can say you are the lenders because no one lenders is improving the b two b marketplace, for instance. K? This is a an example of of what we want to do, but we will explain better also in the future. So we are we are conscious that we need to invest time to these very interested people that want to see how we are working, how, basically, the technology will work, the commercial contracts that are IP rights. You see a lot of investment in also in our, intangibles. And a big portion are legal and accounting investments. Good. Good. Right. The rest of the team, we've got five seconds. Yeah.

27:20 Yeah. I I think next one is for Amy. Yeah. Right. Thanks, Alessandro. So good morning, everyone. I'm just gonna cover some of the key points from the group's consolidated financial statements. So it'll be a bit more dry than Alessandro's bit. Hopefully, you've all had a chance to kind of read and digest our 2021 annual report, which has got the full details of the financial statements and also the accompanying financial review. So this slide here pulls out some of our key financial KPIs that are highlighted in the annual report.

27:54 I guess the key ones I'm just going to read off the slide would be the total revenue of $05,000,000 We had an operating loss in the year of $10,800,000 We had total assets of 10,600,000 and net liabilities of $1,400,000 as at December 31. So Shanice, would you mind to move to the next slide? So as we have discussed in the annual report, 2021 was really a year for us to invest heavily in the business. And this, along with the delays that we saw in the revenue generation, have led to the losses that were on the previous slide. So what have we been investing heavily in? We've been focusing on refining and developing the business model.

28:40 That includes upgrading and refining the architecture, IP and all of the bits around our innovative inventory monetization platform. We've been focused on building solid internal controls and governance processes, and that includes building out the management team that Alessandro spoke about. And we completed the acquisition of TradeFlow, which obviously brought transaction costs. We also had integration activities. And then there's also post acquisition earn out payments that came with the acquisition as well. So in addition to the sort of heavy investment, the losses were further increased at year end by $2,600,000 as a result of some impairment charges that the Board prudently decided should be recorded. And this followed specific impairment assessments that we needed to do in accordance with IFRS in relation to our inventory monetization platform and also the balance of trade flow goodwill that we had on our balance sheet.

29:42 The impairment charges acknowledge the uncertainties that surround the group's forecast at the moment, particularly with respect to the delays that we've seen in the revenue generation and the lack of historical track record of a number of the revenue streams. It also reflects the scale up nature of trade flow. They obviously have a three year track record, but they're still growing. The Board remains hopeful that these impairment charges will subsequently be reversed in future years as the business becomes fully operational and we start to demonstrate the track record of revenue growth and profitability. The final point on this slide that I just wanted to touch on was around the growing concern basis on which the group's financial statements have been prepared. So in making the growing concern assessment, the directors continue to conclude that there were material uncertainties in this assessment, particularly with respect to timing of the initial and ongoing inventory monetization revenue streams for which we have seen delays to date.

30:45 Additionally, specific future cash flows resulting from our new capital enhancement plan are subject to approval of certain resolutions at today's meeting, which secretive take is a given. Shanice, would you mind to move to the next slide? I just wanted to kind of finally touch on sort of two key areas that have particularly impacted our financial statements in 2021. The first of these, as we've already touched on, was the acquisition of TradeFlo, which we completed in July 2021. This was an important milestone, as Alessandro has already touched on. It allowed the group the opportunity to provide the end to end inventory monetization journey, also allowed us to expand our global footprint and customer base.

31:33 The initial accounting consideration that we recognized in our financial statements for this transaction was $7,100,000 That related to a $4,000,000 cash payment and then $3,100,000 equity consideration. Additionally, there's a number of future earn out payments, which relate to future years, and they are accounted for as a charge to the income statement in that relevant period. In FY 'twenty one, we recognized $1,400,000 in relation to these payments. As a result of the acquisition, we recognized $6,900,000 of new intangible assets on our balance sheet, the largest of these related to the TradeFlo customer relationships of 4,800,000 goodwill was also recognized on the balance sheet, and the carrying value of this following the impairment at year end is $1,600,000 The second area that I wanted to touch on was the funding facilities utilized by the group during the year.

32:33 I'm sure you're all familiar with these, and Alexandra has touched on them earlier. These facilities were required to support the group's business model development and also the platform development. They also were required to support the acquisition of TradeFlow and our general working capital requirements. The facilities included the Nigma convertible loan notes and also the Mercata financing. During the year, the group received net cash inflows from these financing facilities of $11,600,000 And at 12/31/2021, there was $5,700,000 remaining to be repaid. This followed cash repayments of $2,000,000 and a further $4,500,000 that had been settled via the issue of convertible loan notes.

33:19 The cost of these funding facilities during the year was 1,200,000 and this was recorded in the finance cost line in our financial statements. As the group moves to its next stage of development, we've entered into our new capital enhancement plan, which Alexandra has also spoken about. And this is with our new long term investor, Venus Capital. And we're hoping that this will provide the commercial and financial support that we need for our next phase. There's certain resolutions that you've all been asked to vote on today that are connected with this plan and that will enable the group to issue further shares to Venus Capital and also to existing shareholders as we hope to kind of move to a more optimal combination of institutional versus retail shareholders.

34:06 And further information on these activities will be available in the coming weeks. So the next slide, Shanice, focuses on operational KPIs. So I'm just going to hand over to Tom to touch on the in transit KPI. Thank you very much, Amy. So, yes, hello, everyone. So today, in terms of the in transit monetization, we've we've had some very good growth here in 2022. In terms of net inflows, we managed to increase AUM still last year. And certainly, the euro fund has been doing very well this year. I think, basically, talking to certainly institutional and multifamily offices, you know, there's a lot of dry powder out there. 40% of them are holding still cash because of the fear in the equities and other asset classes.

35:04 So very positive in terms of continued growth this year. And certainly, Q2, we've already seen some good increase, which we'll be able to report shortly. So it's looking very good. We're seeing that a lot more people are still post COVID wanting to hold more and very we've customer. Of in into also UAE Jabali Port there, which also then led into warehouse storage as well, which Nicolouk will touch upon in a moment there as well. We're certainly seeing the removal of travel restrictions helping the completion of due diligence by investors as well. So that's also contributing very nicely to conclusion of new investors coming into the fund.

36:12 So yes, very positive for the second half of this year as well. Thank you. Okay. And I think, Nikol, can we hand over to you to talk about the warehouse goods KPI? Yeah. Definitely. Thanks, Tom. Good morning, everyone. As Amy just mentioned, our focus on the warehouse goods pipeline that we mentioned of a 164,800,000 that was included in the annual report. It's it's clear that we have a huge target market. And when the backdrop of supply chain issues and as government support COVID support runs off, we're in a good position to help potential clients facilitate the move from just in time to just in case, as Tom mentioned, to support their working capital needs and unlock their the cash that they have, the liquidity tied up in their inventory.

37:06 Since joining in September 2021, the team and I have really focused both on refining our origination process and growing our ecosystem to ensure that it's a sustainable pipeline and the the origination process is all the way through to onboarding and client retention. Regarding the ecosystem, the team have spoken to nearly 200 potential originators from banks to asset based lenders, accountants, brokers, other asset based platforms in order to introduce SUPPLY ME CAPITAL and initiate referrals and introductions of new client companies. We're now seeing a steady flow of these referrals as well as targeting companies in The UK and Italy directly that meet our key criteria.

37:54 We expect this flow to grow again significantly post the first I'm and when we can initiate more targeted marketing. There's plenty more work to do in this in regard to this area to facilitate new pipeline and to grow the team to ensure that we can cater for that growing demand and provide the right customer experience. We have to ensure retention of those client companies going forward. Our key origination process involves an initial prescreening to ensure the potential client company meets pre cut key criteria using publicly available information. And we have potentially billions of inventories being monetized at that level, which reflects the figures that were presented historically. The target client's inventory to be monetized includes at the initial introduction prescreening stage, all of the inventory in their financial statements, but this decreases as we move through our process.

38:52 We might discuss with the company that they only want to monetize a portion of their inventory. It might be raw materials. It might be finished goods, or it might be a mix of both. They might decide to start with one jurisdiction or one warehouse or a specific set of SKUs. Then through the due diligence process, we analyze and agree with the client company which of the inventory is to monetize. So as you can imagine, we might start with I'm potential of, say, a 100,000,000, but by the time we've gone through our processes, we might end up with, say, 20,000,000 to be agreed through the commercial contracts. Therefore, the pipeline we're focusing on today is where we've got a significant dialogue and having moved through our process is where we have a more accurate figure of what we can potentially monetize.

39:44 The figure fluctuates, as you can imagine, as new clients are introduced and move further through the process. And, conversely, in some cases, are marked as lost due to feasibility of the structure. It might be a timing issue, it might be a change in the strategic direction of the clients. The pipeline isn't a reflection of the amount of revenue to be generated, and it also doesn't reflect the total value of client companies that we're in conversation with at early stages at the moment or on companies that are on hold and looking to be visited after the first I'm So despite that, we think it's a good pipeline KPI kit excuse me, KPI to provide a good indicator for the level of demand for the group's warehouse goods from a monetization services perspective.

40:41 That's that's me. And now I think it's over to Alice. Morning, everyone. So a number of the resolutions today relate to remunerations. We want to talk a bit more about the structure of remuneration as detailed in the annual report. The goal of the group's remuneration policy is to ensure we attract and retain the right talent for the group's future success in the competitive market. We've talked a little already about the skills that are required and that we've grown within the management team. It's important that we continue to build and retain the team at the right level. There are two broad categories of remuneration. Fixed, what people receive consistently, variable, elements which change based on performance. In 2021, there was no variable pay, and our director's remuneration package is below market based on external benchmarking.

41:34 In 2022, the CEO salary was adjusted to be more aligned with the other executive directors and also his pension contributions were reduced to align with the majority of the workforce, so from 15% to 6%. We're seeking approval for the introduction of a long term incentive plan. This is a component of variable remuneration to further align shareholders' interests, the team, and business goals in the long term based on the current market position. Any awards that would be issued this year would vest in 2025 with executive directors having to hold their share awards till 2027. The aim of this is to retain our talent and reward them for long term business performance. Approval of the remuneration policy enables bonus structure to be developed in future years.

42:25 Although the remuneration committee have already concluded there should be no direct bonuses for year end 2022. The remuneration committee annually considers compensation to ensure we're competing for and retaining the right talent. They take into consideration the market environment, pay and benefits across the group, individual and company performance, and remuneration policy guidelines. From 2023 onwards, in addition to the annual assessment of fixed pay, they will also consider if a bonus is appropriate and at what level based on the policy guidelines, individual and company performance, eligible ward levels, and the population, ensuring market appropriate performance targets.

43:12 On that note, I'm going to hand over to Stuart to cover risk and governance. Thank you, Alice. Good morning, everybody. There are three slides to follow that speak to risk and governance. Now I don't propose to go through them in any material detail, I'm also very conscious of time. Rather the message that I'd like to leave you with is that we are not blind to risk far from it. That's what I do for a living. So what I wanted to do is to set out the key risks we've identified, but most importantly, the mitigants that we believe we have in place to address those. So we acknowledge, for example, the strategic landscape, which we'll come on to in more detail towards the end of the presentation, but believe we're in a position where we can more nimbly adapt to market circumstances given that we are at the start of what we hope will be a very long journey.

44:13 Similarly, as you'll see set out, we acknowledge there are funding risks. Alessandra and Amy have both respectively talked to that. We have spent two years now, over two years, building out a network we can believe we can tap into. Equity dilution risk is noted. Again, we've spoken to that earlier in the presentation, but needless to say, we're trying to find the best outcome for our shareholders. Alice has just touched upon employee incentivization, so I won't return to that. In respect of business continuity, as with any responsible business, we have BCP in place.

45:04 In respect of data protection, we can move on. Thank you. We're engaged with a third party provider to ensure that we are compliant with GDPR and the 2018 UK implementation thereof. And as a final point and as discussed very extensively within the annual report, we endeavor to ensure we are compliant with the QCA code. So that's a very quick run through of risk and governance. Clearly, we'll take questions later as needed. But that concludes my section. I'll pass you back to Alessandro for Sure. To a look at you. You can finish off in your nice little succinct.

45:52 How many seconds I have? You've got two and a half seconds. So that's the last part of the presentation. Since also, we we want to to give it to the shareholders a color also regarding our strategic direction since we know that we received a lot of question regarding the strategic plan, the basically, what the company want to do wants to do in the future. So this slide, we can move very quick because this is only an interesting point. When an investor select a company to invest, wants to see the target addressable market.

46:38 The target addressable market is important as we know, but the the the the key point, if you want to move the second slide, please, Chinese, is what what are the players in the field that can cover this very important target addressable market? Because the receivables business, you know, that in twenty fourteen, fifteen, a lot of fintech platforms started the initiative focus on receivables, but the receivables the receivables part is finishing. So, actually, there is a lot of platform, few names. The opposite is, you know, you also that you selected cherry pick, Paul, Matthew, all the the investors that basically I'm in contact during the day by day, basically, pick initiatives.

47:32 And this is a slide that we prepared in order to explain. That's as I was saying, a lot of players are delivering a product financing arrangement. Apollo aliens, you can see, you know, at the bottom, this they they basically are purchasing or funding vehicles to, you know, purchase inventory, but at the end of the day, the buyer has to buy back the inventory. So it's a recourse structure. It's financing. Taula SAP, they are trying to to do something on inventory because the receivable business is not easy. Started initially with a an approach to have also an arranging function then that they basically, they are working on with big banks just to provide set software.

48:19 In the middle, we we are we are we are trying to cover an untapped market that is made by buyer side that has inventory. They need to monetize the inventory. They don't want to to get a loan. They don't they don't want to get, you know, a debt in their balance sheet. And we are trying, and we we need that we want to to cover this very huge space. Okay? And we are investing a lot of time. It's true. We invested time. We invested in resources, but the space also recently, a couple of investors or analysts said that you are covering something that is not covered by no one, basically. And and so I can understand that you are trying to invest time, you to to educate investors, to maybe fine tune the model.

49:08 And another very important point that our our target are mid cap, small, medium enterprise are not large corporates. And this is another big difference between compared to, you know, Apollo, Tawlia, Falcon, similar players. So this is a, I think, an helpful pitch to understand our market positioning. Finally, last two slides, the future of the platform. The the platform, we we I remember a lot of questions when we announced the the creation of SUPPLY ME Technologies. A lot of questions they the thing that we wanted to spin off the the company to sell back to something particular. Actually, it's only way to segregate the the value of the technology with the value of the analyst and with the fact that typically the partners that want to use our components prefer to, you know, have as a counterparty a technology business.

50:11 And this SUPPLY NEW technologies, for us, it will be the hub in order to deliver this framework. The framework is that we can use our unique product in the left, so the monetization, leveraging our funds for the global inventory fund, leveraging third party funders, that fund, asset manager, the digital asset, the crypto, and working, you know, at the right also with the local commercial banks that maybe were they want also to use our platform to, you know, plain vanilla inventory transactions. For us will be revenue. For a bank, it may be a first step to, you know, come into our space over the monetization. In this in this speech, you we are we are continuing to think about the the role of the CAPITAL PLC.

51:06 Okay? That just to to spend thirty seconds because there is a two big question. CAPITAL PLC, so, Marble, we know. So we try now to to to manage these. Firstly, the CAPITAL PLC is a project where the the equity will be basically managed by not directed by SUPPLY, as you know, in the announcement of September 2020 and then in December with the role of Patrivio. So SUPPLY will not invest in the equity of the CAPITAL PLC. We'll SUPPLY will be a partner of the CAPITAL PLC. This is very important to to to understand. Obviously, the the role of the CAPITAL PLC in in the last two years has changed because the external factors, the opportunities to work with such a third point in the list of the questions that correctly you you raised.

51:56 The configuration of the Rolled Capital Bank changed. This is the reason that is and we are dis discussing how to integrate the CAPITAL PLC in our business model in order to avoid to be you know, to to to to lost opportunities to work without the CAPITAL PLC because there is a also, there are funders that say, I want to invest directly without any basically, no one together with me. And so we are now designing the right strategy to use the CAPITAL PLC route. Okay? The is a role that on top that basically is wants to provide investors. And when understood also the change of our strategy introducing the global inventory fund, start again to, you know, ask us to continue to place because it's true that, you know, in last year, we started to work also without STOMARGO.

52:56 It's obviously if you want the performance, you you you you we assessed that basically opportunity to work also on the stand alone basis. So we start to work also directly to have a direct conversation with investors. But, recently, you are can can appreciate the the the activities of that basically is very keen to, you know, originate investors. Also, talking with a couple of important asset managers, it seems that they are moving from receivable space to other new asset class really now because they have a lot of capital to deploy, and they need some new investment opportunities. So is it the reason because I I was saying the receivables part is finishing because it's not it's not easy to find receivables. The insurer are three that are trying to ensure all the receivables in the space, and so it's it's it's not basically in a limited market.

53:51 Crypto funding, the crypto, I maybe we can use the last slide, and and I try also to to reply to a couple of question. Like, firstly, we said in the RNS that the so waited the first I'm will be delivered by end of July, we we wrote. So an expectation I saw now also the questions in the chat regarding when you monetize, you do the first one. We announced that Tuesday that, basically, we we will do this. Regardless the type of funding, the at the end of the day, the the the typical question you have to deliver.

54:36 Okay? You have to deliver the first one to leverage the first one to avoid detractors that will say yes, but it's only concept. It's only an idea and so on and so forth. This is a big opportunity for our company. There is a lot of excitement in the management team. Mark, Stuart, Myro, all the the guys are very, very excited. For us, it was basically big event because, basically, we know that now we have a calendar diary, and we we can monetize the first company that our revenues, to be clear, is not a a fancy transaction for marketing. Our real revenues, and we want to see when we announce the, you know, the delivery of this first one. We want to check also the performance of this transaction in order to allow, basically, to also analyze these kind of funding routes.

55:32 Okay? So it's important, this first message. Second message is that digital asset space, the the opportunity to leverage the digital assets. JPMorgan recently, a lot of DeFi protocols, the funds are looking to invest into digital assets. So for us, it will be an opportunity. Also, to scale their ability, the velocity, the the the the decision process, and so on. On the other hand, the the traditional funding route is in place. It's not true. I I wrote the message that say, okay. Now we have to wait December, then you start the traditional funding route. This is not true. The role of the day by day role of Nikola, in particular, is to, you know, work with funders to package portfolios and to try as soon as possible to monetize UK, Italy, Middle East, leveraging the Sharia role of Sao Paulo. So, actually, the funding the traditional funding route continue.

56:36 But the key message that I want to to to to pass today is that the first I'm we have finally a date. The model will be definitely confirmed with the the traditional, you know, original idea. So it's not nothing that we try to change in order to deliver. The company is a real company. There is a real to sell. So all these key messages are true, and we wanted to also explain when we'll execute this transaction. So this is what is important to, you know, to leave and and pass it to our shareholders and to the market. Monday, we have an interview in order to take try to explain these in a in a right manner, and and and we want to, basically, to confirm that the first I'm finally, we we see the the goal so expected.

57:40 Well, thank thank you, team. So, obviously, I think just to reiterate that first step or that first item, I think, is absolutely key for us to prove out. And once that's done, we can then scale that up and build up for for the company. So So if I hand over to Nick, who's going to just summarize some of the questions that we've received online before we go to yourselves in the room. Great. Thank you, David. We will now turn to the Q and A session. We've had a large volume of questions submitted in advance of today's meeting via the Investor Meet platform and have also had several questions submitted during the course of the AGM presentation. Due to time constraints, it will not be possible to answer all of them during the session. However, over the course of the next week or so, the list of questions together with the company's responses will be published on the Investor Meet platform.

58:35 All attendees of today's meeting registered to receive information on SUPPLY at ME with Investor Meet platform will receive the email notification of Q and As when they are available with the caveat that there may be some submitted questions that the board is not in a position to answer directly as a result of them being either commercially or price sensitive. However, it will endeavor to answer as many as possible. The team will now, in in the time available, address selected questions covering the five five most popular recurring themes, following which we will take questions from the floor. And first question, can you explain in more detail the delays in achieving the first I'm? Is understandable that COVID has played a big part, but what else affects its progress, and when is the first I'm expected to happen? Thank you. I summarize what we said in the presentation.

59:22 The the the the the reason of delays are related to the model, explaining the first loss, the segregation of the stock companies, the expectation of the investors to have a segregated funding structure. Okay? And when just to also add at this point, in between December 2020 and January 21, actually, with Somabo, we were working with a real funder with a real portfolio of 300,000,000 of of of euros, 30 companies. I remember all the works that we made with this fund at SUPPLY to manage all the stock company, business continuity, all the operation. And then what happened happened that that these funders change idea regarding the appetite for Italy because, unfortunately, we had only thirty thirty company in Italy. The founder is public, was Carval, just to to clarify any gossip or or or other basically names.

1:00:21 And, technically, this is what happened. So the excitement that we had in January was a genuine excitement because, actually, we were working to finalize this transaction, and we continue to be excited. You can see my face, my my passion, and and, and we'll we'll continue to do this. The first AM, I replied earlier, we announced at Tuesday that our plan is to deliver the first AM by end of July. Thank you. Second question, given recent news that WeTrade and other platforms have either gone bust or have filed for insolvency, how is the company preparing to navigate what may be a risk averse time for investors and attract much needed investment? Furthermore, there has been huge dilution over the past eighteen months Thanks to successive CLN sorry. Apologies.

1:01:12 Debt conversion funding with further dilutions come by the open offer and warrants. When is the group going to start making decent revenue and fulfilling their goal of actually servicing clients? This is a package of questions, basically. So just to distinguish, I I I had the opportunity to to change to exchange a point of view regarding the default that we trade or other solutions or other business in the market. Actually, these initiatives are software in a in in a market where there is a lot of competition with expectation to work with a club deal of banks, and so it's a totally different initiatives are totally different initiatives than our product, our view. So I think that is not correct to compare VuTrade or other business with our our company.

1:02:08 On the other hand, have a direction that I think that is clear. So we have a portfolio of clients that we want to monetize. We are finalizing the traditional funding routes. Have the crypto funding routes already. So the expectation to generate revenue is concrete. And, you know, all the directors and the management team is working with the, you know, best effort to try to improve, to improve revenue, to be efficient, and to continue to this phase of scale scaling. And and so we we we think that, finally, with the first monetization, as always we said, we we think that also the appetite of other investors to invest in the model will increase because they see the first one.

1:03:02 We can use the first one to explain how it works in reality. You know that the financial markets is made of followers, and so this first one is important also to pitch this. And, accordingly, we can expect for sure, an increase of of revenues. I think just to to add, in terms of jurisdictions, clearly, accounting wise, IFRS, and we talked about we talked about, and there's some questions there that we we we need to prove it out in in the different countries and make sure each country's happy with that the way of accounting. So Yeah. Again, we we we propagate through Europe all our all our deals, and and, of course, we'll the first one are the Yeah. Jurisdiction wise, I don't know where where that would be.

1:03:48 But Yeah. You know, you you'll see that proof of concept going on throughout Europe and and wider field. Great. Thank you. Question three. At one point, the company is worth more than £300,000,000 It's now worth less than £30,000,000 What happened and why? The million dollar questions regarding the markets in this moment because, actually, every day, all the shares, all the the markets, unfortunately, in this moment, it's better to not see the screen. This is our view as obviously, directors can't work on the share price directly. We can work on the underlying, the business to promote the business, to work with the right partners. And we are sure that if we deliver this, we work with quality partners, we generate revenue.

1:04:38 Technically, it's a it's a the direction to increase to recover the share price will be achieved. We needed to work on the the best in class, as I was saying. We needed to work with the you know, to invest the right time in the right streams and not to waste time maybe in other other in other initiatives. And on the other hand, this moment, the markets are not very you know, there is a bigger turbulence, and so we have to be calm and to see the restoring of the economic environment. Yesterday, I was speaking with Albert, and we said that, you know, the inflation rate this year, 10%. Next year, it seems that it will be better. And so, hopefully, this is the outlook that we are going to to target. And for sure, this will help also a recovery of the share price, not only our company, but all the, you know, the the company that are listed that are very now is a a very not a great moment to see the market cap of a of a company.

1:05:48 Thank you. How can such a large remuneration package for the CEO be justified when the company is still struggling financially? I think that's a question for me. So as I mentioned earlier, we benchmark paid to the the market. So while CEO salary is benchmarked to the market, and it's currently below market rate, especially when you consider the limited nature of the variable compensation in relation to it as well, which we think represents the current landscape. And you can see some of the decisions that have been taken by the remuneration committee around this year's compensation to continue to ensure that's correct. So we are currently comfortable with the current level of compensation being appropriate and that it demonstrates the commitment to making sure that we're retaining and rewarding our team.

1:06:38 Thank you. A final one for me here. Why are you not updating the market and shareholders more frequently? This includes updates on initiatives that have either failed or at best not yet succeeded, e. G, the CAPITAL PLC, the fintech bank, 12 funders, Storm Harbor? There is an information vacuum on these initiatives and more. Also, when will the website be more regularly updated? Some some of the information is out of date, incorrect, or insufficient. Yeah. Let me excuse me. Let me take that. I think we acknowledge that some of the announcements that we have made have not been followed up as frequently as we might have wanted to. I think the key message I would want to leave you with, though, is that, as Alessandra alluded to, for example, Storm Harbor, CAPITAL PLC, is that these are still live work streams.

1:07:28 They're just at different inflection points as to where we thought they might otherwise have been. A lot of market that we would like to present, we cannot because it's either commercially or regulatory price sensitive. In respect of the website, we are currently undergoing an initiative to try and make it a more rounded portal so it can be used more efficiently by both shareholders, but by clients as their inward portal to our product. Clearly, that comes at a cost. So Amy shows me whenever I put a budget in front of her. So we're we're trying to work as smartly, as efficiently as possible.

1:08:18 David? Right. Thank you. What what I'll do now, I think, is is open up to to the room. There's gonna be a couple of questions online, which I'll interject. I I would like to, if we can and I know this is everyone's been waiting for this particular point in time. We'll we'll we'll talk about the subject, but we won't go into too much detail and too much repetitive questions around it just so we can all have have a question if if you want that. So shall we start with, you know, anyone put their hand up and we'll kick off? I mean, just If you could just introduce yourself and Yeah. It's Steve and Ryan.

1:09:04 Just for clarification, your relationship with oh, sorry. Our relationship with Venus, you've described as a a a an investor with a a powerful ecosystem of investors. So effectively, are Venus acting as a funding arranger? Yeah. No. Actually actually, Venus has two roles. He's an arranger, but also an investor, basically. So as a you know that in an investment industry, you arrange the investment process, investment pool, and then you invest directly with the balance sheet, plus you have a sort of group of investors that could invest. And so it's great to have a combination of these two, three roles, not only an investors, not only an arranger, and not only a commercial partner that that they they don't risk its balance sheet. So there is a a big skin in the game of Venus in the in our in our initiative.

1:10:07 Next question. Don't be shy. Hi. My name is. Yeah. I'd like to know, on the December 31 in the RNS, you stipulated that you're almost ready to do the deal with Financial Bank and that you're in the final stages. You're also in the final stages of the I'm for Italy. Yeah. Could you tell me when you go in to close the deals, what are the funders actually saying is the reason they don't wanna invest? The reason to to don't invest actually, just to clarify our process. The process is a is a standard process that now Nicolas is managing for multiple of streams as we wrote in the annual report.

1:10:54 What happened? We we pitched the investment opportunity to an investor, then we signed an NDA. We then an investor start a due diligence. Then at certain moment, investors see the clients, okay, and try to the clients. And then finally, they try to negotiate the key terms, the economic terms. So can happen that the investors want to see, like, all, but then the underlying is not good, like, did we have with the and and Carval in June in January 21, or happened that the times take the the process take time because we negotiated the economic conditions. We it's important to balance the fact that we can't ask it to the client at higher price.

1:11:44 The risk is to create a problem and then customer in order to satisfy a funder. So, basically, it's a negotiation process that can take time and also can happen that in the certain moment, the investor or we are not interested to work with an investor that want to charge 10% and take all the securities because it's not fair for our mission. We want to help companies, to be clear. We know we are, you know, in the part of the the real economy to support companies. This is our mission. And so and this can happen that we refuse the, also, opportunities because our two expenses, basically. Right. I have one final question. Obviously, the stockholding companies are SPVs, are they? Stockcom are trading companies. I'm not They're gonna be companies, effectively. Yeah. So the funders, will they then need to almost take ownership of that stock holding company?

1:12:40 And therefore, what I wonder, do you require a bank, I. E, the captive bank or the financial bank to allow all the money to move through? Firstly, the stock company need to be is not owned by the fund or the the investor because, differently, it will see a risk that investor will recognize all the inventory in their in its balance sheet. So, actually, the model should work and will work that the stock companies owned by the global inventory fund is segregated. And that investors or lenders can take the senior risk, basically, the low risk in each transaction. So banks can use via such, for instance, in Italy, can lend the stock company and take the the the part of the risk that is less risky, and the equity is provided by the fund.

1:13:31 But the stock company is not part is not owned by the funder. It's not no no investors want to own a stock company, to be clear. They do own stock. They they lend the stock company that is owner of the inventory, and they they maybe they can ask a security package or a pledge, for instance, over the inventory. But there are not owner of inventory because our asset manager that can invest in loan, notes, or similar financial instruments. Next question. Hi there. I'm Sasha Okoblovich, and thank you for the presentation. It was quite informative, actually. And also a little word for you, Alessandro. I think I'm liking this more tempered version.

1:14:25 The enthusiasm's still there, but yeah. Yeah. Eighteen months ago, there's probably a bit too much information flow, but right now, I think you got the tone just about right. My question is probably more directed at the marketing side of things. We have Cicero and we have Waldorf. Yeah. You know, I own several companies myself, one of which is an 8 figure compute manufacturer. And I just feel that on the marketing side of things, you might be missing a trick in terms of the PR. There doesn't seem to be an awful lot in, you know, the sort of broader mainstream press. Not necessarily, you know, the tabloids or things like that, but I just mean, in general, the the business press. Obviously, proactive would do a lot, with them, which, you know, I don't know what the arrangement is there, whether it's a paid for arrangement or whatever.

1:15:17 But I just feel that there's a massive marketing opportunity on the PR side of things that just isn't being tapped at all. Now my question as a shareholder, and obviously, ultimately, the rest of the people in the room are shareholders, and it's our money that's invested in the company. We wanna know, is our money being spent wisely with the PR companies that we currently have? And would they actually take any kind of, in inverted commas, advice on board with regards to that? And one final point, as an 8 figure computer manufacturer, we've never been approached by anybody at SUPPLYME, and yet it strikes me because of the the current supply chain issues that we're having, especially with Brexit. It's a nightmare. And, you know, importing from Europe or exporting to Europe is is a pain. You know, I I'd I'd like to have a conversation with somebody regarding what we've what we're doing on our supply chain. Yeah.

1:16:07 I think that maybe Nicolas can can reply. Yes. I mean, firstly, I'm sorry that we haven't contacted you. I would love to know what the company name is, and I can go through our our target list. And let's definitely catch up and follow-up on that after this. But we work really you know, we work regularly with with Cicero, and we we have weekly and monthly meetings with regards to the PR campaigns for, you know, specifically The UK, but also the Italian and the and the global market. And I agree that there is more that we we can be be doing. And that's for me to really push forward with the guys to to ensure that we are tapping into the right media outlets to get the message across.

1:16:59 So I think that's one for me to take away with with with Cicero. Yes. Also also just to to be at at the another point, our approach to promote the service is for now to use this network of introducers that have very qualified introducers. So before or, you know, corporate finance network. And so for now, we we we think that this is a good way to spread. In in the future, we are envisaging also to improve a portal where a company can apply, you know, the request, the the value of the facility, and, accordingly, we can be more, you know, reactive also to to to maybe respond to to the company and also package also and work with the business owner. So we take this point as another improvement, and we work on this. Just one thing maybe. Again, it's probably one for maybe maybe Nikola, but there is an organization called the National Association of Commercial Finance Brokers in The UK with over 2,000 members. They had an expo thing last last week or the week before. Over 2,000 people there. They represent literally billions of pounds worth of Yeah.

1:18:23 You know, companies out there. Yeah. So I think that would be a good opportunity to tap into their network Yeah. Because they deal with SMEs. That is primarily what they do because, obviously, after a certain time, you will go to more sort of merchant banking room. Yes. If I can reply a bit on on this, our strategy, maybe you you read the last words of the last that we published when we said that we want to use the funds provided by a good chain also to monetize the UK company. If you remember the last sentence of the RNS, our strategy is to monetize a UK company to prove also UK is also David was saying the the monetization. And and then basically to sell the the the service widely with also a first transaction made. Because what we we we Nicolas was observing is that there are a good attraction.

1:19:20 They are very interested to see the first one and then basically to continue the diligence process because this is a, you know, a typical day by day discussion that we have with Nicolas. The long list of companies, but then as I was saying, we want to invest to be concrete. And and so I think that we'll we'll land in this, you know, type of approach, maybe also leveraging these networks following a first announcement of a first monetization UK. I think that it will be more effective. Okay. Can can I I'll ask a question from online. This is for Tom. Tom, congratulations on the initial transaction carried out in The UAE.

1:20:07 How do you see this initial proof of concept transaction developing with Cargo's DP World now? Yeah. At first, I don't know if it's a proof of concept. I mean, it was a proper deal, and we've now got every single day. We're now getting some new inquiries coming through the the DP cargo system. So we're actually going through some due diligence for counterparties. So expecting to have the next deals done in the near future. Certainly, works very well, and it's it their whole strategy in terms of digitization of introducing customers to us, being able to pass through some KYC data to us as well, which we're then able to to to double check and process our systems and their digitization of all of their ports and logistics.

1:21:03 It's it's a great partnership, you know, very aligned in terms of mutual approaches and digitization. So Thank you, Tom. Just a quick one. IFRS is something that we're constantly talking about. And I think one of the questions here sort of asking about, will it be proven by the client's auditors, which is effectively what it will be. I think just to be we we've got advice, but, ultimately, the client who who is who's got the inventory, who's who's getting the funding, their auditors will be signing off on on the treatment under IFRS. So, again, that's that proof of concept we talked about, and that and that's why I think an auditor in The UK, in Italy, and US may have a different view. So we need to go through and make sure that it's all working from a a league a legal perspective, but it's then reflected in an accounting perspective.

1:22:07 The think there was another question just before unless that's just scrolled through. Ah, so question. This is perhaps Nicola, Alessandro. How long and this might be how long is a piece of string. Is the average time period from introduction to client through onboarding and becoming an I'm there we are. Answer that one. And I I I think I think I think we've probably we've talked about why perhaps in the past things have been delayed, but what what's our kind of expectation?

1:22:57 But we do know that we can be devoted by other matters. Alessandro, do you want me to take that one? Yes. So our process has a defined period of time to be completed or that we can complete it for the client. But there is nothing to say how long it will take for the clients to understand the process, to understand our offering, and for them to to overlay that with their forecast and their projections to see the benefits to their business going forward. So that's the bit that's you know, how long is a piece of string? Because, you know, from that first conversation that I'll have with them, it is then for them to talk internally about it, to understand it fully fully, not to potentially sell it onto their shareholders, their their board, all the internal hurdles that they might need to go through.

1:23:56 Once they have got a good understanding, then we progress to the term sheet phase, which starts our due diligence processes. And they can take the first round could be ten to twenty days, second round, ten to twenty. So so it can all move quite quickly once we get to term sheet stage. But, yes, how long does it take for the corporate to to to sign up, essentially? Good answer. It is a if and buts, but I I think I think as you probably hopefully, we've said, we are learning by the past and getting better at it as we go through. We're building a quality team here, and and we continue to strive forward and and and and and, you know, we've invested in in in in the success of the business.

1:24:48 So is there any other questions? Chat down there. Thank you. Thank you for the presentation. Very useful. I'm sorry to put you on the spot, incoming chat, but I just wondered what attracted you to role and also what you think your biggest challenge will be. Thank you, and good morning, everyone. So getting on straight with the answering the questions. So it's clear there's a great market opportunity for what the company is offering. There's a real need for the product. The bank regulations are facilitating the the the the move towards the product.

1:25:43 The technology advances is another driver of all of that. So as you know, I spent some time working with the company as an adviser. The company has announced this. Right? So and it was a kind of a two two fold process. On the one hand, I tried to assist the company thinking through what it should be planning on doing in terms of board governance composition board composition governance, funding, attracting institutional investors into the business, and how the company should think about its investment case and market communication and learning from the past experience and kind of moving forward.

1:26:28 So that was kind of my gift to the company as part of this relationship, but I also wanted to understand if this is an opportunity that was right for me, frankly. Right? So and this is rather long explanation and an introduction to say that I did believe that there's enough market opportunity. I wasn't sure before that that the company has a solution. I was quite convinced as part of this process the company has a solution. This clearly needs to be proven as we all know in this room. And so the proof of eating is in the pudding, and Alessandra's, you know, gave certain expectations as you saw then.

1:27:14 So I I I but I thought even before I knew that that the the company had the solution. So it's a kind of a call that one has to make. I I also quite really like the team at SUPPLY VEN CAPITAL, so that was important. And I think one other point I would make is the company is relatively small to its position as a listed company. As a business, it's relatively small to its listing, if you like, or its listed listed company position. And I hoped with my experience in the listed company space where I used to run listings business, you know, listings businesses for large exchanges and seen tens of companies in different situations coming from small to big and from big to small and all sorts of issues that I could maybe help the company navigate that part, which could be seen as an advantage. It could be seen as a drag. You know? It's, you know, it's an interesting challenge. So yeah. So all in all, I hope that that that that gives you an idea of why why I thought this this would be a good match.

1:28:32 Just the the last couple of questions, Jim, and then I'll go through the the boring part of the negotiations, but I I need to do that. Hi. So I'm Paul Several. Just a few questions. I've had a few questions sent to me today, some of which I won't answer. But from the first one's from Mickey. No. I'm joking. First one, can you tell us a little bit about the POC in 2018, the two clients from? Yeah. And then second question is when do you believe the directors can start buying? I know you've been asked that so many times. Oh, thank you. Thank you, Paul. So the the the first question, just to recap the our history of SUPPLY. Me. We started in Italy.

1:29:23 I I found the SUPPLY. Me and the the Avanga group. I founded the Avanga group with the former head of supervisor of Bank of Italy, professor. And so we started to do the first pilots of transaction using first three technology, then the accounting piece together with Banco Cell in Italy and Ubibanco. And the kind was one at Uniero. The second one was in group. So, basically, these are the what we did. And this is the reason because then we decide to move from an a direct relationship with with a single bank and their clients to the home of fintech London and then to spread this initiative across the jurisdictions.

1:30:08 So this is what happened between 2017 when I remember wanted to buy the company. K? They we we took an offer from them, but I refused, basically, because we were in a, you know, in a very strange situation, and we wanted to, as usual, to think big. And then we move into this very, very exciting initiative that is now to spread the initiative regardless to work with one bank, one client that was not very sexy in my opinion. Direct to buy, I can't I can't say I can't say nothing, but I maybe I can leave The question is when can we Yeah. I mean, obviously, it's a gray area. And so you've done those transactions Yeah. Got the revenues out.

1:31:05 Technically, I'm assuming you about get directors cannot buy at this stage until the process starts. Oh, I mean, direct you you have undermined, you know, restrictions anyway, closed periods, etcetera. So are we in a closed period? Will it technically around accounting. The audit's been done. That's been announced, but then we're going into interim stage. It's a for you know, it's a it's a treadmill. There are points in time where we can buy clearly. But, you know, because there's a lot going on around first transactions and agreements being signed, it's it is quite a fine line as to when we can do it because we might be deemed to have inside information. So the it's it's not because of the you know, we're not willing to buy. Yeah. It it it's really down to we we can't buy, and and we wouldn't we we you know, it's important that it's important that we do buy. Clearly, that would be a good signal, but we don't want to be doing that if there is a perception there's inside information clearly. I remember one one time it happened that we started to think about the past directors buy, but we invested five days with leg legal lawyers and risk manager. Yes. No. You can't. And now you can't. It's a totally a very, very difficult situation. But, actually, can agree with them. It's a risky area

1:32:36 now. Just one last last question if anyone's got one. I I I think once we've finished the formalities of the meeting and we'll close the meeting, we will be here. So tea and coffee and bits and pieces. And and, clearly, we can't divulge any inside information, but you can have a chat with us after the game. Because I I I've I've met you before. So any any last minute questions? Please do. Yeah. Just how are we managing client expectations with regards to when they first inquire or onboard as we can't actually give them a date for I'm because it's it's it's not gone through the concept yet. It's not been proven yet. So how are you managing clients, or how is Nicola managing clients?

1:33:32 What is she telling them? Is it gonna be a month, six month, and are these clients still gonna gonna be prepared to wait? Yeah. Nicola? Yep. It really depends on the client, the nature of the transaction, what kind of timing that they're looking to achieve, the conversations that we had. You know, Alessandra mentioned earlier that food chain is not our only route to market. We have numerous different conversations ongoing at the moment. So it's it's almost trying to match those up and then manage expectations both from both sides, to be honest. I think that's probably the easiest, simplest answer. Okay. Thank thank you all, and appreciate that, you know, there's lots of questions there, and we will answer those individually over the next week or two in a formal way. So the scrutineers passed me their certificate as a result of the polls, which reads as follows.

1:34:36 I need to read these out individually, I'm afraid. Resolution one, I therefore declare the first resolution to receive the annual report and accounts of the the company for the financial year ended 12/31/2021, we passed on majority. Resolution two, approved director's remuneration report for financial year '21 is passed by majority. Resolution three, approved directive remuneration policy is passed by majority. Four, adopt and approve the company's long term incentive plan is passed on majority. Resolution five, to reappoint CRO as all decisions of the company is passed on majority.

1:35:25 Resolution six, authorized directors to determine the amount of the auditors remuneration is passed on majority. Resolution seven to reelect Alexandre Samboni as director is passed by majority. Resolution eight to reappoint myself is passed by majority. Pleased to hear it. Resolution nine to reappoint doctor Thomas James as director is passed. Resolution 10 to reappoint mister John Collis, and that is passed by majority. Resolution 11, authorized directors to allot ordinary shares and warrants over ordinary shares in the company relation to Venus Capital SA arrangements noted above and in connection with the proposed offer, and two, to provide further general authority is passed by majority.

1:36:28 Twelve and thirteen are special resolutions over 75% to authorize directors to dissapply preemption rights in respect to authorities granted is passed by majority. And the last resolution, to authorize directors called general meeting on not less than fourteen clear days is passed by majority. Just to know, I think all all the votes is between 9599% in terms of the passing. So clearly passed. No marginals in that in that regard. So that concludes the the poll. The results will be well, the scrutineers have informed me that verification policy oh, no. No. That's not that's not right. Application will be result publication of results will be by RNS.

1:37:23 I'm not supposed to read that bit out because that's in brackets. Ladies and gentlemen then, the the business of meeting is now finished. But in concluding, I'd like to thank you all for your committed support. We do appreciate that. Thank you very much. There being no further business, I declare this meeting closed. Thank you all very much for attending. Thank you. Thank you. David, thank you, and thank you for the board for updating attendees today. Could I please ask attendees not to close this session? It should be automatically redirected to provide your feedback, nor the board can better understand your views and expectations. This will only take a few moments to complete, and that would be greatly valued by the board. On behalf of the board of SUPPLY ME CAPITAL PLC, we'd like to thank you for attending today's annual general meeting. Thank you, and good afternoon to you all.