Satoshi Systems

SATOSHI SYSTEMS trade TM Cloud based International Trade Management Software automating customs declaration process for Global and post brexit UK-EU trade

Investment SATOSHI SYSTEMS summary 1 Satoshi Systems was founded in 2017 with £750K of angel investment with a vision to digitize International trading operations (Minerva), Customs Compliance (tradePhlo) and trade nance ( nPhlo) 2 Our vision has already been market validated with more than £1.76mn of cumulative revenues till date 3 Minerva went live in 2019 with 10+ customers, tradePhlo version 1 to go live in Jan 2022 and nPhlo to go live in Jan 2023 4 Due to Brexit tradePhlo has emerged as a huge, once in a lifetime opportunity which will help us become a global market leader in trade management software 5 We are now raising £600K for completing tradePhlo development and its market launch before the year end

Our mission is to make trade easier, faster, cheaper SATOSHI SYSTEMS and more transparent fin Our vision is to digitise international trading, supply chain Digitising tradePhlo - 80 management and trade nance particularly for the SME and International pre-signed users, TM midcap market, which are both technologically and nancially Trading Operations under development, underserved, as well as underrepresented. raising equity Digitising Trade Committed to streamlining every aspect of the future Global Minerva- 10 paying Finance Trade, we are accelerating the delivery of innovative solutions customers, commercially trade including global trade management, trade nance and trade successful, generating nPhlo - ocommercial customs and compliance management. revenues in scaleup mode TM product to be launched in We aim to be the one platform, one partner, one learning early 2023, funds raised, environment from which our clients can scale and enhance their Digitising Customs under design & business. Compliance development All our products and services are provisioned to serve sustainability, traceability, auditability goals.

SATOSHI SYSTEMS We have already demonstrated the feasibility 01 08 of our vision through the initial engagement of 10+ customers around our Minerva platform GTM Integration Over 100 years of collective experience in global trade, logistics, and IT, 02 07 with more than 25 employees who give their all to achieve better supply chain performance, continuingly adding value and staying Digital Supply Onboarding ahead of competition with innovative solutions that bene t Chain & Renewals customers. We already have the product market t for Minerva with the help of 03 Apps Used by Industry 06 our 10 customers and is poised to become the leading SaaS ERP Leading Customers solution for International Traders Trade & Risk Enhanced Security Scoopega Scoops StoneX - Shengyu Zhang BD Associate - Yaw Wireko Kyei 04 05 “Partnering with Satoshi Systems “As a leading international manufacturer Analytics Track & Trace has taken us to the next level in supply chain and exporter based out of Ghana. We’re grateful proficiency. A wide range of work is now in to Satoshi that we benefit from Minerva’s the hands of Satoshi specialists, paving the capability to seamlessly manage complex trading way for continued growth” and logistics operations, internally and externally” Torq - Asheesh Anand Scoopega - Ange-Laurent Gnagne “We chose Minerva to digitize every “Satoshi’s multimodal Minerva platform aspect of our business, from contracts to has allowed us to streamline our cocoa logistics to inventory management to procurement, inventory and export operations. e-commerce to accounting. The Solution is The system helps us to prove our sustainability functionally rich, comprehensive and credentials and provide sophisticated configurable to meet our needs. We visibility and optimisation to manage our entire continually evolve with Satoshi” supply chain”

Our 3 products are well poised to capitalize on new market SATOSHI SYSTEMS opportunities in the new era of global trade ows 03 TRADE FINANCE The digital trade market is growing rapidly as a result of the Global Trade increasing requirement for cost-e ective logistics and supply chain Finance solutions across three key industry verticals; Market Size $12 Tr CUSTOMS MANAGEMENT 01 CUSTOMS MGT Global Customs $8.5 Bil Management Software Market $8.5 Bil TRADE MANAGEMENT $18 Bil TRADE FINANCE 02 TRADE MGT Global Trade $12 Tr Management Software Market $18 Bil Source: ICC, ICISA

SATOSHI SYSTEMS Our 3 products have tremendous synergies and provide us multiple levers to drive long term consistent high growth Encompassing every aspect of the future Customs Compliance, Global Trade Management and Trade Finance. 1 trade TM fin TM 3 SME traders adopt the Traders onboard nPhlo to scaleup inexpensive and easy to use their business by getting cheaper, tradePhlo solution to comply faster and easier trade nance. with customs regulations Financers such as commercial banks and trade funds get the essential 100% users supply chain visibility and collateral control via Minerva and tradePhlo 2 30% users larger tradePhlo customers adopt Minerva for full supply chain digitization and increase operational e ciency 5% users

For the next few months we are putting all our energies in tradePhlo CUSTOTSMRMADSEER SATOSHI SYSTEMS as the UK’s departure from the EU will herald the biggest change to the UK’s customs landscape in a generation 1 CUSTOMS 1 An additional 205 million customs declarations per year (for both Extra 820,000 imports and exports; a sizeable portion will relate to import customs declarations declarations) every day 2 An additional 180,000 traders will need to make customs Additional 2 declarations for the rst time (on top of the c. 141,000 180,000 traders will make businesses currently making customs declarations) customs declarations 3 Typically, the cost of manually submitting a declaration is Signi cant additional costs for SMEs 3 between £15 and £55 per declaration – sometimes higher – that will make customs declarations which could represent signi cant additional costs for businesses. for the rst time after Brexit 1-3 Source: ONS – O ce of National Statistics UK

SATOSHI SYSTEMS Beyond Brexit, the pace of change in the global 1 2 trading markets is also accelerating Complex and changing regulations Supply chain risks International supply chains face major challenges during COVID-19, as historical relationships among buyers, sellers and Trade regulations are everchanging and vary Heightened national security has traders, and even the markets in which they operate, are being greatly by country, making import and increased the demand for successful interrupted, reformed and reshaped at an ever-increasing pace. export compliance di cult. supply chain risk management. This is likely to continue as rms will strive to introduce more and more exibility and redundancies in their supply chains (and 3 4 therefore will need to interface with more geographies, suppliers, customs processes etc). That expansion carries a number of Cost reduction Operational ine ciency challenges and uncertainties, including: In a global economy, companies need Without common compliant • Disparities in requirements between countries their supply chain and cross-border procedures across the • Complex and changing requirements with government agencies transactions to be as tax e cient as organization, accuracy and • Manual processes and disparate systems possible. productivity su ers. • Lack of automated systems • Inefficient processes and systems To accelerate operations and achieve operational e ciencies, companies • Visibility to all participants in the supply chain must automate time-consuming, non-value-added activities and refocus • Detailed record keeping and audit trails resources on risk-prone and di cult tasks that have wide-ranging e ects • Delays and fines caused by compliance and documentation errors throughout the supply chain.

SATOSHI SYSTEMS tradePhlo is uniquely placed to leverage changing market dynamics A unique cloud based international customs management WMS M solution featuring a range of applications to give businesses ERP complete control over their trade, customs and compliance TradSyesMtemansagement management procedures, making it easier, cheaper and FreiBgrhotkers CusBtoromksers MinNerevtawork SupCpolymCphliaainnce faster for SME traders to manage their international TPL ConTtraaicnkeinr g customs requirements. FB trade TradCelassifier Key features CB Core: Forw& a3rPdLesrs Customs Declaration Extended: EU Customs InteCrnuasCttoioomnnnaslections DeclarCatuisotonms C D CT Integration & Automation UK Customs Customs Validations Denied Party Screening Government Connectivity Supply Chain Compliance CV Our new tradePhlo solution is a game changer CusVtoamlidsations TC because nothing else combines data, state-of-the-art technology and people power in a single platform. CusRtoemgAusslasotocrias tions

SATOSHI SYSTEMS tradePhlo automates the end-to-end customs and compliance requirements for international trade Gain compliance con dence with tradePhlo multi-country, self-updating and adaptive customs management toolset for seamless customs declaration; 1 2 3 Powerful modular exibility Automated compliance Streamline your supply Unlock the value of data from sourcing to Improve trade management and reduce Get an intelligent end-to-end visibility of all your trading, risks and compliance by building compliance risks by automating processes and business-critical partners internationally, on a functional modules as your business grows. creating cohesive, scalable systems that are exible trusted source of partner information to manage tradePhlo is built for maximum exibility and and always be up to date with country-speci c and analyse trade and compliance-critical data and scalability. legal and compliance requirements. e ectively manage supply chains. ERP 5 trade TM 6 TRADE Analytics for better visibility Clear borders faster & cheaper 4 PHLO Perform on demand analysis using trusted data with Eliminates expensive and error-prone manual tasks Integrate data and systems intuitive dashboards, drill downs, visualisations and and accelerates compliance, global trade, and customs embedded machine learning algorithms for operations with electric data that is easy to exchange, Open APIs enable exchange of external consolidated, real-time overview across all operations. eliminates errors and reduces risks and costs. data from ERP and other systems and sources throughout the value chain, enabling better, faster decision making.

SATOSHI SYSTEMS tradePhlo uses sophisticated proprietary work ow algorithms and o the shelf AI/ML document processing to automate customs compliance tradePhlo uses pre-trained AI model and powerful machine learning pipeline to classify document to deliver quick impact on back-o ce e ciency, reducing data entry cost to more than 80%. Key features and bene ts include; 1 2 3 Document classi cation Data extraction Data release Using ML models, tradePhlo interprets tradePhlo extracts document information or The classi ed and structured data is pushed into a information and patterns on documents and image-based data using in-built OCR and ERP or TMS, updating the relevant account record classify goods into codes as expressed by the transforms the document information into with information from documents received. tari code system. structured data. 4 5 6 Validation Increased data accuracy Reduced cost Users are able to apply speci c validation AI powered ML models allow automation of complex Eliminating laborious, time consuming, human rules to the structured data. The system trade documents, reducing error-prone human dependant data entry costs, we estimate saving of continue to learn from user’s adjustments. intervention and improve data accuracy. more than 80%.

SATOSHI SYSTEMS tradePhlo has inbuilt redundancy for the upcoming change of UK Customs technical landscape as it is tailored to the UK’s new CDS e-customs system, whilst also running current CHIEF system HMRC have announced closure of the Customs Handling of Imports & Exports Freight (CHIEF) on 31 March 2023. The Customs Declaration Service (CDS), currently used for NI and RoW declarations will take over from CHIEF. CHIEF to CDS Our solution is provisioned to capture additional information required by CDS tradePhlo is developed to Changes to the Import and Additional codes that New or di erent data that operate on the new CDS data Export Tari , required by the some product types now needs to be included models including; Union Customs Code (UCC) might need with declarations • New CDS Reference Data • WCO and UCC Data • Flexible language structure • User registration requirements

SATOSHI SYSTEMS tradePhlo is built on state of the art microservices tech framework and therefore resolves the four major problems with competitor solutions 1. Technology – competitor solutions are based on old technology Name of the rm Old Multitude of disparate systems Suitable only for High High Implementation which is not scalable, extendible or maintainable, slow to change to Technology acquired through inorganic large customers Cost to Costs new customs rules. Most solutions are not cloud based SaaS but mergers and acquisitions Client based on Client server technology and simply hosted on cloud. Their interface with customs authority is old and clunky and require high maintenance. 2. Integration – most systems are dependent on a 3rd party ERP for underlying data. This necessitates an interface with the ERP solution before the customs software can be used. tradePhlo comes with an inbuilt ERP solution as well as inbuilt APIs to most ERP systems used by SMEs. 3. TCO – solutions from vendors such as SAP, Wisetech, Thomson Reuters are very costly (license fee wise) and require heavy implementation and running costs. 4. Underserved SMEs – most competitors are either focused on large corporates or for intermediaries and SMEs have to depend on solely the intermediaries. *Based on information gathered from company websites

We aim to achieve 32,000 customers on tradePhlo SATOSHI SYSTEMS by 2026 and surpass100,000 by 2030 Total Available trade TM Market Companies Total Available Market Serviceable Available Market Serviceable 490,000 companies completing a total of 250 55% of all customs declarations are Available Market million declaration per year. completed by Micro, Small and Medium 269,500 SMEs Enterprises equating to ~137.5 million declarations. Serviceable Obtainable Market Serviceable Obtainable Market 6% Conservative 6% of the serviceable available market, equating to 30,000 SMEs using 30,000 SMEs tradePhlo to manage their customs operations by Y6. Source: Ipsos MORI, ONS – O ce of National Statistics UK

SATOSHI SYSTEMS From 2025 onwards we also hope to introduce tradePhlo outside Europe to the global market as digitalisation opens up a myriad of revenue opportunities, unlocked via the customer supply chains Market Drivers and Opportunities Global Trade Complexity Governments Shippers Real-time Visibility Carriers Intermediaries Content and Data Cloud Enables Automation eCommerce and Logistics Enables Automation Automation $1748.4Mil 2030 Fragmented Industry presents a large $825.0 Mil Manual Trade & consolidation opportunity 2020 Customs processes In terms of revenue, the global trade management software market was valued at US$ 825.0 million in 2020 and is projected to reach US$ 1,748.4 million by 2030. Satoshi Systems aims to achieve a signi cant % of this market in the next 5 years by providing a superior digital experience to our customers. Source: Research and Markets Report, April 2020

SATOSHI SYSTEMS We have a 3 phase sales and marketing plan to acquire and Pursue Excellence retain customers across our 3 products Promote a light weight, relatively inexpensive software Diversity & Teamwork Integrate data Television for UK SMEs on di erent marketing channels and systems Advertising Partner with other complimentary service Social providers such as freight forwarders, accounting Media rms, trade bodies Cross sell the Minerva & nPhlo platform to early trade TM Simplicity adopters of tradePhlo Cost Key Commitment tradePhlo brand Reduction to Clients and ethos Values Channels Delivery PR Direct Campaign Marketing Innovation Process Automation

SATOSHI SYSTEMS Our partnership with SKY TV will allow us to reach up to 90% of our target audience for tradePhlo prospective customers We are delighted to have been selected as one of the 100 SMEs to have received £20,000 of TV advertising across Sky Media’s channels. Combined with our traditional promotional media campaigns, of TV ad space with AdSmart AdSmart will allow us to communicate our marketing to a carefully selected group of key international trade and custom declarations’ prospects. Utilising the platform’s regional and mosaic targeting we will be able to supplement our broader marketing campaign by increasing ad exposure to currently struggling small and medium businesses across the UK. The AdSmart campaign will be paramount in creating brand awareness for tradePhlo, generating additional exposure and driving incremental onboarding intent. We hope to enter into a long term campaign with Sky.

SATOSHI SYSTEMS our market validated revenue model allows the new customer to on board tradePhlo for as little as £6 and gradually move to more value added services As customers become equipped with tradePhlo, we aim to convert them to using our full ERP Minerva suite & nPhlo platform to manage all the their trade, nance and customs operations. tradePhlo Pay As You Go £6/document 01 tradePhlo monthly subscription £500/month 02 tradePhlo premium subscription £750/month 03 Minerva subscription £2500/month 04 0.5%/transaction 05 nPhlo fee % of amount funded

SATOSHI SYSTEMS Our revenue projections have high con dence level based on existing Minerva revenues as well as pre signed orders for tradePhlo On our most conservative forecasts, we estimate nearly £192mn in revenues by Y6 with a margin close to 80%. FY Revenues Net profit £200mn FY2021 £600K £480k £150mn FY2022 £12mn £9.6mn FY2023 £24mn £19.2mn £100mn FY2024 £48mn £38.4mn FY2025 £96mn £76.8mn FY2026 £192mn £153.6mn NB: all forecasts are Satoshi’s estimates £50mn £ 1mn FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Revenues Net Pro t

SATOSHI SYSTEMS We aim to launch tradePhlo Ver1.0 (focussed on ecommerce based traders) by end of 2021. Ver2.0 will have features for non-ecommerce traders too and ver3.0 will allow us to o er premium services around non-standard customs procedures Time Satoshi Customs Compliance Customer Marketing Vision Management Management Application & Dissemination June Integration 2021 BETA Beta Beta Involve Sep V 1.0 Version 1.0 Export Controls version Government, 2021 Version 2.0 Screening Subject matter Dec V 2.0 Product CLAS WebVersion 1.0 experts and SMEs 2021 Version 3.0 CLAS Exchange MobileVersion 1.0 Campaign to attract ERP Integration Apps Version 2.0 intermediaries Mar License Management (Mobile and Web) 2022 Campaign to attract Complete Framework mangers and June V 3.0 Integration Completed investors 2022 Apps Version 3.0 End-to-end Trade (Mobile and Web) Customs & Compliance Management Platform Fully Operational

SATOSHI SYSTEMS tradePhlo design with Interfaces ERP Systems tradePhlo Interfaces Customs Email Uploads CHIEF CDS NCTS Manual Uploads Customer Shipping/Logistics Insights Firms Declarations Metadata Origin Third Party Con g-data Mgmt Brokers Agents Special Procedures

SATOSHI SYSTEMS Our team expertise lower any unforseen technical, commercial and regulatory risks Risk Description Likelihood Impact Mitigation Failure to overcome barriers to market entry LH Established a review cycle to collaborate with traders, to provide Market does not pan out feedback on released functionality in order to ensure the project as expected MH delivers to their needs. 80+ customers are already engaged. Demand for product If the market does not pan out, we will cross sell our other lower than expected LH commercially successful products and o er bundle solution at much New Entrants with the cheapest price than our competitors. competing process/ products LH Pioneering customers are already engaged. Macro-economic environment or MH Forged commercial partnerships, with companies specialising in regulation changes international trade - all of whom saw the need for and bene t of tradePhlo. Already using specialist partners to reduce the development time to stay ahead of the competition. we will cross our other products and o er bundle solution at much cheapest price than our competitors. International expansion planned in order to mitigate risks from any local regulatory or market changes. We have purchased a few non-contract speci c domain names, and will be ready to re-brand if needed to expand.

SATOSHI SYSTEMS We will be open to pre IPO exit opportunities if it maximizes shareholders value Highly Viable M&A Prospects IPO Considerations Multiple buyer possible – competitive bidding Valuable userbase with recurring revenue system Dependant on userbase expansions success and consideration of M&A Clear t into multiple product portfolios High Standalone potential SaaS providers in digital trade management eCommerce companies eCommerce software providers

SATOSHI SYSTEMS Business valuation 2.5bn Comparable Company Analysis Using the comparable company analysis model; comparing companies based on similar metrics to determine our business value, together with historical performance, strategic positioning and the transaction landscape around us, we are con dent that we have the right values-based foundation to command high worth in our future valuation estimate. Revenue Xero Sage CargoWise Shopify Inc WIX 1.2bn Market cap 848.78 M 468.5 M 119.35 M $1.12 M 1.157 B Stock price 20.31 B 7.45 B 9.96 B 183.244 B 11.201B 500m Total outstanding shares 137.12 AUD 700.2 GBP 30.64 USD 1463 USD 197.62 USD 148.34 M 1.06 B 324.93 M 123 M P/E Ratio 1063.36 33.21 67.77 75.47 64.18 Average P/E 60.16 * Xero PE is ignored as an outlier 250m 5m 27m 35m 50m 100m 150m *CCA based on information gathered from bloomberg.com, accessed 16.08.21 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Valuation // Actual 2018-2021 Valuation // Projection 2022-2027 * Valuation based on actual gross pro t * Valuation based on estimated net pro t

SATOSHI SYSTEMS Investment We are now raising £600,000 opportunity Funding Action Plan Funding Timescale Funding EIS Compliant required July 2021 - Dec 2022 Source Years 2022 - 2024 Angels/ Phase I: £600k VC/Debt Commercialisation Series A Phase II: International expansion £3mil & product optimisation Phase I Usage of funds: 1. Product enhancement as customs platform 2. Marketing, sales, promotions and branding 3. Hiring of domain expert and software developers 4. Customer onboarding and support teams Detailed breakdown of usage of funds and company nancial are available upon request

SATOSHI SYSTEMS How we are helping small businesses to continue their Linda Bianchin international trade operations after Brexit Cateritaly Many traders have turned to us as they are anxious about continuing their trade in EU, simply because they are failing to navigate the complex and changing \"tradePhlo is regimes and regulations themselves and also cannot a ord the expensive exactly what we need. solutions that our competitors are o ering. I hope to start supplying our European customers soon with the help of tradePhlo and the Satoshi team!\" Lovepreet S Dhillon Maria Joao Pena Joe Partridge Jaslyn Enterprise Beatrice and bee JustScoof “Brexit has disrupted the “As a mum of 2 young “The Satoshi team is helping daughters and the sole me streamline my supply chain UK-EU trade and has actually employee of my e-commerce with suppliers in China, business, I need a solution which is manufacturing in UK and sales opened up opportunities for us. 100% error proof as well as fits across Europe. within my budget. tradePhlo With tradePhlo, I would be able to My customers require me to be promises to deliver exactly that. I’m take care of all my imports and really looking forward to use it in exports compliance with minimal swift with zero tolerance for any order to resume sales to my EU time, cost and effort” based customers” custom delays due to incorrect paperwork. tradePhlo will help us achieve the operational excellence we are striving for” Jaslyn Enterprise

SATOSHI SYSTEMS Our team consists of some of the industry’s top experts working together across core areas Saurabh Goyal Talha Khan Seema Golekar Abdallah Elhaj Christophe Bourges CEO, Founder Chief Technology Officer Chief Opera�ng Officer Customs & Trade Execu�ve Commercial & Finance Specialist Over 22 years of experience in Over 15 years of experience Seema brings many years of Experience Import/Export Seasoned banking and financial designing, developing, developing ERP systems for UK experience in developing, execu�ve with demonstrated professional of 35 years. Past implemen�ng and suppor�ng retail and trading sectors acquiring, deploying, and history of working in the experience with HSBC, Société trading systems (experience with Tesco, Olam) maintaining trade-cri�cal interna�onal trade management Générale, Credit Agricole technologies. Exper�se include: and compliance industry Exper�se in trading of financial A cer�fied Prince2 prac��oner Head of Solu�ons Structuring & instruments such as equi�es, and is also trained under the - Managing developmental and Detailed knowledge of Export, Commodi�es - HSBC. futures, op�ons, bonds and agile for extreme prac�ces opera�onal test and evalua�on Import, Freight, Import physical commodi�es such as methodology. to improve acquisi�on programs. Compliance and Supply Chain Managing Director - Deputy agris, metals and energy. - Leveraging public-private business procedures together Head Commodi�es & Trade Talha has led mul�ple so�ware partnerships to achieve effec�ve with overseas experience in Finance- SGCIB. Mul�ple entrepreneurial development, migra�on, and efficient outcomes. many areas of Interna�onal ini�a�ves spanning many enhancement and R&D projects - Budget development and trade and other legal aspects Commodity Trader - Generale industries. of various scales. execu�on. related to Overseas Trade. Sucriere - Groupe Saint Louis.

SATOSHI SYSTEMS Experienced team; expanded from team of 2 to 25 in 4 years, with deep expertise in technology, risk management and scaling businesses CORE Saurabh Goyal Seema Golekar Talha Khan Laura Stoskute Bilal Hasan Christophe Bourges Grace Wong Abdallah Elhaj CEO, Founder, UK COO, UK CTO, UK IRO, Lithuania CCO, UK Advisor - Strategy, France Advisor - Commercial, Dubai Customs & Trade Execu�ve, UK DEVELOPMENT Erman Orhan Daniel Munns Rizwan Shaikh Kieron Cairns William Ocran Jnr Jasmine Assan 3rd Party Vendor-Ihor Venher 3rd Party Vendor-Taras Venher Full Stack Developer, UK Front End Developer, UK Back End Developer, INDIA C#.Net Developer, UK ERP Solu�ons Analyst, Ghana ERP Implementa�on, Ghana ERP Developer, Ukraine ERP Developer, Ukraine SUPPORT Harshini Naidu Teodora Marinova Shalabh Goyal Adi Ven-Ari Gulraj Behl Dr Ginggang Meng Team Expansion Legal Intern, India Sales & Marke�ng, UK Pierre Olivier Senior DevOps Advisor, UK Technology Advisor, UK Director, Board Member, UK AI / Machine Learning Advisor, UK Seed Investment Yr 1 - 2 Chief Sales Officer Advisor - Sales, France Chief Marke�ng Officer Chief Financial Officer Chief Legal Officer Team Expansion Years 3-4 Further +30 at full commercialisa�on

SATOSHI SYSTEMS learn about how Satoshi can add value to your operations; www.satoshi.ltd www.phlosolutions.co.uk www.ukcustomstraining.com [email protected] It’s not news to traders that complying with international trade regulations continues to increase in costs and complexities. As a trusted provider of world’s best-of-breed Cloud-Native ERP solutions, Satoshi Systems o er a global standard in international trade and compliance management software that will increase e ciency, improve visibility and reduce risks and costs associated with global trade operations, in any trade scenarios.

SATOSHI SYSTEMS