What you need to do now In order to get paid in the future, you will need to submit your invoices electronically via Tungsten Network.

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1 Maes-Y-Coed Road Cardiff CF14 4TT United Kingdom Dear Valued Supplier, Re: Important - From 4 th May 2015, we are no longer accepting paper invoices We are contacting you as our records indicate that you are one of a small number of suppliers still sending paper invoices to Tesco. As of 4 th May 2015, we will no longer accept or process paper based invoices and any paper invoices sent after this date will be returned unpaid. What you need to do now In order to get paid in the future, you will need to submit your invoices electronically via Tungsten Network. We believe the Tungsten Network service is simpler, more efficient and cheaper than paper. The benefits of using Tungsten Network include: A secure, fast and environmentally friendly invoicing process with guaranteed delivery of tax compliant invoices to Tesco within 48 hours No risk of invoices getting lost or delayed in the post The cost of sending an invoice electronically through Tungsten Network is generally similar or less than the cost of sending an invoice manually through guaranteed delivery postal services No additional software or hardware installation required; all you need is an internet connection Access to the Invoice Status Service, which allows you to immediately check the status of your invoices from receipt to payment through Tungsten Network s easy-to-use web portal Our standard payment terms state that we will pay invoices on an agreed date, based on the invoice receipt date. Therefore, it is important for us to receive invoices promptly and for you to know that we have received them. Tungsten Network will be contacting you over the next few weeks to help you with the on-boarding process. Yours faithfully, Murat Saglik Group Commercial Procurement Director

2 FREQUENTLY ASKED QUESTIONS Who is Tungsten Network? Tungsten Network is Tesco s e-invoicing partner and manages electronically submitted invoices between Tesco and our suppliers. Tungsten Network enables suppliers to send invoice data electronically, in their preferred data format. Tungsten Network will translate the invoice data into our preferred format and validate it. What are my benefits from using Tungsten Network? Secure and guaranteed invoice delivery, no more invoices getting lost in the post It will take us less time to process your invoices and therefore we will be able to pay you on time No more delays due to missing information, landing on the wrong desk or manual intervention Any-to-any data formatting technology - there is no need for additional software or hardware Higher processing transparency and better cash flow management due to 24/7 access and reporting VAT compliant, regardless of where invoices are sent from or received Easy and cost efficient to send invoices - at any time Invoicing Best Practice Before you begin creating or submitting your invoices via Tungsten Network, please ensure the following: You have an approved Purchase Order number (i.e. an 8 digit number PO number beginning with a 2 for UK and a 4 for Ireland). The deliver by date on the Purchase Order has passed. The invoice is submitted against the correct Purchase Order line numbers with line description, quantity, unit price, unit of measure and line value. Invoice value does not exceed the Purchase Order value. If your Purchase Order was issued post-delivery of goods or services, please allow 2 days before submitting the invoice. One invoice is submitted per Purchase Order received. Multiple Purchase Orders per invoice are not supported and will result in the Tungsten Network rejecting your invoice for not complying with Tesco requirements. Submit your invoice successfully and you receive the 15-digit Tungsten Network transaction number. Failure to meet with the above requirements, even though your invoices might be accepted by Tungsten Network, may result in your invoices being rejected by Tesco and late payment. Will e-invoicing from Tungsten Network be a requirement for new suppliers? Yes, Tungsten Network will be a pre-requisite to become a registered Tesco supplier of Goods and Services Not for Resale.

3 Will I need to sign an agreement with Tungsten Network? If you choose to use the Web Form you will be required to accept their terms and conditions presented at the time of creating your account. Is there a cost to use the Tungsten Network? There are several pricing options available when submitting invoices through the Web Form. Upon registration, all new suppliers using this option automatically receive 52 free transactions. At the end of your first anniversary, if you have not used all of your free transactions, we will replenish your account back to 52 invoices, for you to use during the next 12 months. If you use all 52 free invoices and need more during this 12-month period, you will be required to purchase additional transactions (minimum 25 invoices), priced at 1.50 per invoice. You can purchase transactions as you need them. Any unused, paid-for invoice transactions will expire 12 months from the date of purchase. If you have paid credit on your account you will still receive 52 free invoices at each anniversary invoices per year Each invoice (minimum purchase of 25) Annual per-invoice Transaction Costs Free 1.50 * Payment options: You can pay by PayPal or credit card. We accept Visa, MasterCard and Visa Debit. You can also pay by direct debit. What happens if I still send paper invoices? Higher priority will be given to those invoices received electronically. While you are working with Tungsten Network to complete your registration, we will be happy to continue to receive your paper invoices. We have set a deadline of 4 th May 2015 for suppliers to transition to electronic invoicing. Once you are sending invoices via the Tungsten Network all paper invoices will be rejected by Tesco. Do I need to install any software? No. Additional software or hardware is not required, as Tungsten Network is web-based. All you need to access the e-invoicing platform is a browser and internet access. I already have the facility to make invoices available to my customers via the Internet - allowing them to view an image of an invoice on the web. Can I use this facility instead of Tungsten Network? No, the Tungsten Network ensures that Tesco receives the data you send in a format that will upload to our accounting software and match to a purchase order. Please note that all invoices must be compliant and meet matching criteria as described above. Can I send electronic invoices using Tungsten Network to all of my customers? Yes. Once you are subscribed to the Tungsten Network, it enables you to send electronic invoices to other customers that are members of the network.

4 Will Tesco make payments using Tungsten Network? Not at this time. Tesco will continue to use the current payment method. Will I need to use this service if my account is currently paid on time? Yes. Your use of the Tungsten Network service will ensure we continue to pay you on time. OB10 account terminology: Supplier OB10 account number refers to the number assigned to you by Tungsten Network when you register. The Tesco OB10 account number is AAA What should I do if my invoices are rejected by Tungsten Network? The submission alert that you receive from Tungsten Network will tell you why the invoice has been rejected. Where possible, you should correct the error and resubmit the invoice. If you are unable to correct the error, please contact Tungsten Network Support by creating a support ticket through your portal account. What happens if I experience issues when submitting invoices via the Tungsten Network? Please raise a support ticket ( or call +44 (0) , if you encounter any issues with using Tungsten Network. How can I submit invoices that will pass PO validation? Tesco expects all invoices to be submitted against an approved 8 digit number PO number beginning with a 2 for UK and a 4 for Ireland. All valid PO s are sent on a daily basis to Tungsten Network to be updated into their database. Please allow two days before submitting your invoice. An invoice must not be submitted against a PO that has already been fully invoiced Your invoices will pass the PO validation if the above guidelines are followed. To submit a credit note, what mandatory information is required? Credit notes should always quote the related PO number. In addition, you should always provide the original invoice number that the credit note corresponds to. Why don t I receive alerts from Tungsten Network for invoices that I have sent? Please make sure you check your spam folder. If you still do not find these alerts - please make sure the correct address is set up to receive Tungsten Network notifications. To find out how to administrate your contact details, please refer to the How to amend your account details guide. Alternatively, please log a ticket with Tungsten Network Support at My invoice is rejected, how can I resubmit the invoice? Suppliers using the Web Form should correct the error and resubmit the invoice - please refer to the How to re-submit a failed invoice guide. Suppliers using the Integrated Solution should correct the invoice data file previously sent to Tungsten Network and resubmit. It is important that you do not change the invoice number when you re-submit a failed invoice. Should you require assistance please contact Tungsten Network Support.

5 Should I send paper invoices for invoices that are rejected? No, a rejected invoice has to be corrected by the supplier and re-sent via Tungsten Network. Suppliers using the Integrated Solution should correct the invoice data file and re-send to Tungsten Network. Any paper invoices sent to Tesco post your account going live with Tungsten Network, will be rejected. My invoice was accepted by Tungsten Network, can Tesco still reject my invoice? Yes, Tungsten Network is responsible for invoice delivery only. Tesco will reject invoices that are noncompliant to the Tesco Procurement Policy. Invoices will be rejected for the following reasons: No Purchase Order number Invoice value exceeds Purchase Order value Invoice is submitted before the deliver by date Invoice is a duplicate Contact Details Tesco Stores Limited Accounts Payable For payment queries Tesco Stores Limited Tungsten Network General Queries Tesco Supplier Registration Purchase Order Raiser/ Requester Raise a ticket at network.com/support or call the Support Team on +44 (0) ap.invoice@in.tesco.com ap.invoice@in.tesco.com supplier.regireland@in.tesco.com This can be found on the Purchase Order

6 e-invoicing and an overview of your options Join the Tungsten Network and benefit from: Secure and guaranteed invoice delivery: no more paper invoices getting lost in the mail On-time payment: your customers can process your invoices faster No more delays: invoices cannot be sent with missing information, cannot land on the wrong desk and do not need manual intervention Secure online connection: send invoices easily with no need for additional software or hardware 24/7 access and reporting: enjoy higher processing transparency and better cash-flow management Tax compliance: we enable compliant e-invoicing Easy and cost-efficient invoicing at any time Tungsten offers two primary methods for sending invoice and credit transactions. You can either send a data file directly to the Tungsten Network using our Integrated Solution or create invoices online using the Web Form through the Portal. This document explains how e-invoicing works and the options available to you. How it works By checking invoices for duplicates and ensuring they contain the information required by your customer, we ensure automated, straight-through processing and enable on-time payment. Through the Portal you have access to the invoice archive and a number of reporting functions. Please read this document thoroughly before deciding whether Integrated Solution or Web Form submission through the Portal is the best option for your company. NOTICE: The information within this document is proprietary to Tungsten and is intended for use by employees, business partners and customers. It may not be copied, duplicated, used in any way, or passed to any third party without the prior written consent of Tungsten. 1 / 3 Copyright 2014 Tungsten. Tungsten is a trademark of Tungsten Corporation Plc and protected by law. Tungsten logo.

7 1. Integrated Solution: sending an extracted data file The Integrated Solution gives you a fully automated process where invoice data is extracted directly from your billing system and delivered directly into your buyers finance systems. This means: We process invoices in any consistent data file format and handle the data transformation based on your customers requirements No need to install additional software or hardware You can send one consolidated data file for all your invoices Once on the network, you can easily connect and send invoices to other customers Costs for the Integrated Solution Every Integrated Solution account receives 520 free invoice transactions per year. Once you have used these transactions, the prices below will apply. We will replenish the free invoices back to 520 on your renewal date. Annual membership 900* Free Per invoice transaction costs for additional invoices 1 20 invoices per month invoices per month invoices per month ,000 invoices per month invoices per month 0.23 * Buyer connection fees will apply. The annual fee covers the creation and maintenance of your account for a single tax entity. Please note: transactions are charged on a monthly basis according to volume. Getting started with the Integrated Solution Once your customer invites you to join the Tungsten Network, one of our onboarding experts will walk you through the registration process. NOTICE: The information within this document is proprietary to Tungsten and is intended for use by employees, business partners and customers. It may not be copied, duplicated, used in any way, or passed to any third party without the prior written consent of Tungsten. 2 / 3 Copyright 2014 Tungsten. Tungsten is a trademark of Tungsten Corporation Plc and protected by law. Tungsten logo.

8 2. Web Form: sending electronic invoices using the Portal The Web Form is designed for companies who send a low volume of invoices to their customers each year. The Portal offers you a secure connection and guarantees delivery of your invoice to your customers within hours, which allows them to process your invoice and pay you promptly. Costs for the Web Form Once registered, all new suppliers using this option automatically receive 52 free transactions. At the end of your first anniversary (one year after registration), we will replenish your account, at no charge, back to 52 free invoices for you to use during the next 12 months. If you use all 52 free invoices and need more during this 12-month period, you will be required to purchase additional transactions (minimum 25 invoices), priced at 1.50 per invoice. You can purchase transactions as you need them. Any unused, paid-for invoice transactions will expire 12 months from the date of purchase. If you have paid credit on your account you will still receive 52 free invoices at each anniversary Annual per-invoice transaction costs 1 52 invoices per year Free Each invoice (minimum purchase of 25) 1.50 * Payment options: You can pay by PayPal or credit card. We accept Visa, MasterCard and Visa Debit. You can also pay by direct debit. Getting started with the Web Form submission through the Portal As part of your invitation to join the network, you will receive an with instructions on how to register. Once your registration is complete, we will send you your login credentials by so you can start sending electronic invoices via the Tungsten Network. For more information on Tungsten, e-invoicing and the options available to you, visit or us at info@tungsten-network.com. NOTICE: The information within this document is proprietary to Tungsten and is intended for use by employees, business partners and customers. It may not be copied, duplicated, used in any way, or passed to any third party without the prior written consent of Tungsten. 3 / 3 Copyright 2014 Tungsten. Tungsten is a trademark of Tungsten Corporation Plc and protected by law. Tungsten logo.