1. ELECTRONIC FISCAL DEVICE MANAGEMENT SYSTEM - MITHRA Oct’ 2016

2. Software & Hardware Developer Latest generation cash registers, fiscal printers and POS equipment Complete retail equipment solutions Advanced solutions for optimizing revenue collection already installed Sales records in over 50 countries around the world Over 2,5 million fiscal devices produced and sold around the world Largest exporter of electronic fiscal devices in South-Eastern Europe Long term working experience with African countries (Ethiopia, Kenya, Tanzania, Zimbabwe etc.) A steadily increasing number of countries are choosing Daisy Technology as their prime partner when implementing new fiscal policy technologies Who are we?

3. Product range Retail Equipment Electronic cash registers Electronic scales Fiscal printers POS equipment Taximeters Gas station equipment Energy meters Single phase Three phase Automatic meter reading systems Fiscal Device Management System(Mithra)

4. Implementation context of the electronic fiscal device management system (EFDMS) Need to improve the level of tax revenues collection in the country Enhancement of tax compliance Need to promote good governance mainly in the field of taxation and public finance management (PFM) Need for a more fair society since the system will ensure that everybody pays their share of taxes

5. What is EFDMS? The EFDMS is a system designed to receive, organize, manage and analyze information coming from a large number of fiscal devices implemented in the field. Fiscal devices normally are installed at point sale or Point of billing/ invoicing for tax payers in a country where they capture each sale to record the value and tax amounts and other information depending upon the fiscal law in the country. Major benefits of the EFDMS Increase tax revenues Less disputes Less work for taxation staff (Auditors) Computerizing the tax auditing system Fight against tax evasion Enhance tax compliance Development of a more fair tax system

6. Tax Collection Methods Review CONSIDERATIONS: - Storing all relevant financial data into protected memory - Impossible to manipulate the protected memory - Crypto card with latest crypto technology - Digital signing of every fiscal receipt using 2D barcode to print the unique signature - Easy and quick check if the receipt is authentic and correct CONCLUSION: This is the most security proven method CONSIDERATIONS: - Printing non-fiscal receipts – use of “kitchen printers” - Printing of fake fiscal receipts - HASH function signing could be easily imitated -Manipulation of Daily Reports before GPRS data transfer CONCLUSION: Easy Fiscal Memory Manipulation problem solved; Twins problem solved CONSIDERATIONS: - Easy fiscal memory manipulation - replacement of the fiscal memory at the end of financial period - Twins - 2 Cash registers operating with the same ID and fiscal memory number. One for the real turnover and another for the declared turnover. - “Special Operator Code” - allows changes in the totals of receipts by hidden key combination CONCLUSION: Control is impossible to be realized

7. What would be the perfect solution?

8. Our proposal – a 3 rd generation EFDs

9. How does the USB Crypto Authenticator on a fiscal device work?

10. Servers Infrastructure

11. Simple diagram of Fiscalization Procedure 4. Personalization is done – the Crypto Card can operate only with the certain Fiscal Device and the Fiscal Device can operate only with the certain Crypto Card (the one used during the fiscalization process) 2. Request to the Server by sending the Fiscal data 3. Confirmation 1.Inputing the Fiscal data: VAT ID, TIN, etc.

12. Why 3rd Generation Tax Processing? Security Storing all relevant financial data into protected memory Impossible to manipulate the protected memory Crypto card with latest crypto technology Digital signing of every fiscal receipt using 2D barcode to print the unique signature Easy and quick check if the receipt is authentic and correct

13. Web Interface The General Department of Taxation has access to the database information via web interface Requests for receiving full information from specified device Possibility to collect different types of reports which will provide accurate real-time financial and statistical information Why 3rd Generation Tax Processing?

14. Web Interface

15. Communication Use of simple GPRS terminal Sending information of Z reports and Totals of all fiscal receipts over a specified period (ex. every 24 hours) Automatically sending of full information of chosen fiscal receipts - on request Why 3rd Generation Tax Processing?

16. Remote Control Checking in the DB the validity of barcode from the registered receipt Why 3rd Generation Tax Processing? Blocking the FD if Z reports and receipt totals are not generated or sent Blocking the FD if no connection to the tax authority server Simultaneous update of tax groups, VAT rates, firmware General Department of Taxation

17. What we offer? Phase 1: Development of the software solution Phase 2: Specifying the technical requirements Phase 3: Adapting the legal regulations Phase 4: Pilot project Phase 5: Analyzing the results and preparation for mass deployment

18. Other services provided Supporting the Government (Tax Administration) to prepared technical aspects of tenders Installation of the tax administration server Administration and user training Sale and installation of the fiscal devices at vendor’s premises Pairing of the devices with the server network Warranty server management Updating of software

19. Main advantages Practically eliminating fiscal fraud Ensuring timely transfer of the fiscal data to the tax administration Possibility to analyze the financial data in real time Possibility to disable certain tax payers operations remotely Every customers acts as a tax inspector Why 3rd Generation Tax Processing?

20. Daisy software – Success Stories For the past several years, many European, African and South-American countries have moved from offline operating fiscal devices to online GPRS connected fiscal devices. All of these countries have reported enormous increase in revenue collection compared to when the devices were offline or not present at all. GEORGIA Problem Faced Solution & Success of the Technology The fiscal devices had no communication capabilities and the Revenue Service was struggling to control the traders. The fiscal and VAT information was filed on monthly basis. Initially the system covered 100,000 cash registers and as of today this number is over 130,000. All devices in Georgia are supplied by Daisy Technology Ltd and the machines are sending their daily Z reports to the central server on daily basis using the GPRS connectivity. The Georgian Revenue Service reported an increase of 40% of the revenue collection for the first 6 months after the implementation and a 65% increase for year 2012. MACEDONIA Problem Faced Solution & Success of the Technology The fiscal devices had no communication capabilities and the Revenue Authority was unable to control and monitor the traders. The Public Revenue Office introduced GPRS enabled fiscal devices and system back in 2013. For the first six months after the implementation, the increase of collected VAT revenue compared to the previous period was reported to be 17%.

21. BULGARIA Problem Faced Solution & Success of the Technology The fiscal devices had no communication capabilities and the Revenue Authority was unable to monitor the traders. Many manipulations with the fiscal devices were reported, the firmware of the fiscal devices was changed in order to “delete” the real turnover before submitting it on paper to the Revenue Authority. The VAT information was filed on a monthly basis. The Revenue Authority had no information on what amount of VAT they will collect before the end of each month. All documents concerning the turnover of the traders were submitted on paper which was a precondition for manipulations of the data. The current GPRS enabled system is working since the middle of 2011. Daisy Technology participated actively in the development process and are involved in the support and service of the entire system. At present more than 400,000 fiscal devices are sending their Z reports to the revenue authority server. The National Revenue Authority reported an increase of 30% of the turnover for year 2012. ETHIOPIA Problem Faced Solution & Success of the Technology There was no fiscal regulation in Ethiopia and no fiscal devices until 2009. The Ethiopian Revenue and Customs Authority introduced GPRS enabled fiscal devices and EFDMS in Ethiopia in year 2009. Currently over 80,000 devices are sending their daily Z reports to the central server. The increase in the revenue collection each year compared to the previous one is with more than 30%. Daisy software – Success Stories

22. THANK YOU VERY MUCH FOR YOUR KIND ATTENTION! Daisy Bulgaria 15-17 Tintyava Str. Sofia 1113, Bulgaria Tel.: +359 2 9607132 info@daisy.bg en.daisy.bg Daisy Americas Almirante Pastene 333, piso 9 y 10 Providencia, Santiago, Chile Tel.: +562 2599 5029 info@daisyamericas.com www.daisyamericas.com info@daisyamericas.com www.daisyamericas.com Official representative for the Americas: Asicom S.A.