DAISY COMMUNICATIONS LTD.

The Company’s standard contractual payment terms for all qualifying contracts are 60 days after end of month in which invoice dated, however, specific terms can be negotiated and agreed with a supplier. The agreed payment terms are reflected in our contractual documentation and accounting system. There were no changes to standard payment terms in the reporting period.

Invoices not paid to agreed terms £11,383,454 and percentage 5% taking account of payments paid on the next payment run following due date, which is a maximum of 15 days on a bi-monthly payment cycle. Although the standard payment terms are 60 days end of month, the proportion of terms based on invoice date was significant in the period, meaning it is impractical to strictly meet payment terms given the frequency of payments this would require. There are number of other reasons why remaining payments could be delayed including for example suppliers sending invoices late, internal approvals, suppliers quoting invalid purchase order numbers, and disputes.

Supplier invoices are processed and passed to business approvers who can approve or reject an invoice. In the event of a dispute, it is logged with the supplier via email or on their portal wherever applicable. The supplier and the relevant Daisy authorised person work towards dispute resolution. If the dispute is ruled in favour of Daisy, a credit note may be issued by the supplier. In case the dispute remains unresolved within a reasonable period, the supplier can contact the relevant Daisy business contact or a member of the Group Procurement team.