Cash service pricing policy

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Esmond Ford
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1 Compiled by: T. Tikand Confirmed by: P. Sarapuu Ver: 2 Page: 1/7 Cash service pricing policy

2 Compiled by: T. Tikand Confirmed by: P. Sarapuu Ver: 2 Page: 2/7 Table of contents 1. General The pricing of transport and processing of banknotes Basic price Minimum basic price Risk coefficents The pricing of transport and processing of coins Package prices Comments Example of cash service price calculation Example of service fee calculation for one stop... 6

.. 4 3. The pricing of transport and processing of coins.... 5 4. Package prices... 5 5. Comments... 5 6.

3 Compiled by: T. Tikand Confirmed by: P. Sarapuu Ver: 2 Page: 3/7 1. General For pricing the cash service, the price of transport and processing of banknotes and the price of transport and processing of coins are added together, and the result is compared with the minimum basic price. If the result of the summation is smaller than the minimum basic price (table 2), the minimum basic price is applied. The package price will be added to the cash service price (table 6). All prices in the tables are without VAT. The pricing policy applies as from 1 January The pricing of transport and processing of banknotes. The basic price of the transport and processing of banknotes forms a percent of the amount of banknotes being served (table 1). If the basic price is smaller than the minimum basic price (table 2), the minimum basic price is applied (table 2). To calculate the total price of the transport and processing of banknotes, the basic price of transport and processing has to be multiplied by the average risk coefficient (tables 3 and 4). 2.1 Basic price The basic price depends on the amount of banknotes being served per month. The basic price applies to each service order (hereinafter stop). Table 1. Basic price Amount in euros per calendar month Stop price < 1,000, % 1,000,000 < 3,000, % 3,000,000 < 6,000, % 6 000,000 < , % 10,000, % 2.2 Minimum basic price Minimum basic price is applied, if the price calculated with the basic price (table 1) is smaller than the minimum basic price (table 2). The client can choose between: a) Stop price from the table in accordance with the customer point or b) average stop price, which does not depend on the arrangement of customer points into sectors.

minimum basic price. If the result of the summation is smaller than the minimum basic price (table 2), the minimum basic price is applied.

4 Compiled by: T. Tikand Confirmed by: P. Sarapuu Ver: 2 Page: 4/7 Table 2. Minimum basic price Sector Stop price/ Stop in the 1st sector (Tallinn, Tartu, Jõhvi, hereinafter the centre) 7.50 Stop in the 2nd sector (< 50 km from the centre) 9.00 Stop in the 3rd sector (< 100 km from the centre) Stop in the 4th sector (> 100 km from the centre) Risk coefficients There are two risk coefficients, which they are taken into account in case of banknotes. Risk coefficient no 1 depends on the average amount of remittance (table 3). Table 3. Risk coefficient no 1 The average amount of remittance in euros Coefficient < 1, ,000 < 3, ,000 < 5, ,000 < 7, , Risk coefficient no 2 depends on the logistical details, for which their suitability to the existing driving schedules has to be taken into account (table 4). The customer service will calculate the coefficient upon making the quotation. Table 4. Risk coefficient no 2 Suitability to the existing route Coefficient 1 stop per hour stops per hour stops per hour stops per hour stops per hour stops per hour 0.6

3 Risk coefficients There are two risk coefficients, which they are taken into account in case of banknotes. Risk coefficient no 1 depends on the average amount of remittance (table 3). Table 3.

5 Compiled by: T. Tikand Confirmed by: P. Sarapuu Ver: 2 Page: 5/7 3. The pricing of transport and processing of coins. The price of the transport and processing of coins depends on the amount of coins in one stop (table 5). To get the total price of the cash service, the price of transport and processing of banknotes and the price of transport and processing of coins are added together. If the result basic price is smaller than the minimum basic price (table 2), the minimum basic price is applied. Table 5. The price of transport and processing of coins. Service Stop price The transport and processing of coins 0.4% 4. Package prices For packing remittances, disposable security packages and security seals are being used. The price for these will be added to the total price of cash service. Table 6. Prices of packaging products Product Price/unit Security package 0.36 Security seal Comments This pricing policy is not applicable for the pricing of heavy-weighted amounts of coins. The referred principles do not apply to customers, to whom the service is not provided under the standard conditions or who meet any of the following characteristics: - The customer has conducted or will conduct a public procurement procedure under the Public Procurement Law in order to find the provider of the cash service, and the procurement conditions and/or the contract present significantly different requirements to the service and its provision than the regular G4S contract for the provision of cash service; - The customer is a provider of vital service and, due to that, is engaged to the provision of the cash cycle and payment service in accordance with Section 34(8) of the Emergency Act; - The provision of cash service to the customer considerably differs from providing the service to regular customers, due to which an individual quotation is required.

To get the total price of the cash service, the price of transport and processing of banknotes and the price of transport and processing of coins are added together.

6 Compiled by: T. Tikand Confirmed by: P. Sarapuu Ver: 2 Page: 6/7 6. Example of cash service price calculation A chain store has three shops: 1 in Tartu (1st sector), 1 in Keila (2nd sector), and 1 in Valga (3rd sector). Each shop plans to order the transport of money 20 times per month. The amount of cash being served is 150, 000 per month, the value of the average shipment of banknotes is 2,500. 1) The calculation of the basic price of transport and processing of banknotes (table 1) Basic price: 0.14%. 2) The calculation of the minimum basic price (table 2) Sector Stop price/ Customer data Stop in the 1st sector (Tallinn, Tartu, Jõhvi, hereinafter the centre) Stop in the 2nd sector (< 50 km from the centre) Stop in the 3rd sector (< 100 km from the centre) Stop in the 4th sector (> 100 km from the centre) Total: 60 Average stop price 9.50 (7.50 x x x 20) / 60) 3) Calculation of the average risk coefficient - Risk coefficient no 1 the coefficient is 0.7 (table 3). - Risk coefficient no 2 customer service determines the coefficient 1.0 (table 4). The average risk coefficient 0.85 ( / 2). 4) The calculation of the total price of cash service - Basic price: x 0.85 = or 0.119% of the amount served, but no less than 9.5 x 0.85 = 8.08 for one stop (minimum basic price). - The price of transport and processing of coins. 0.4% of the amount served (table 5). - Package price: 0.36 (table 6). 7. Example of service fee calculation for one stop The store will prepare one security package of banknotes in the amount of 5,000 and 1 package of coins in the amount of ) The calculation of the service fee for the stop: 5,000 x 0.119% = x 0.4% = 0.8

Each shop plans to order the transport of money 20 times per month. The amount of cash being served is 150, 000 per month, the value of the average shipment of banknotes is 2,500.

7 Compiled by: T. Tikand Confirmed by: P. Sarapuu Ver: 2 Page: 7/7 Total: = 6.75 The sum 6.75 is smaller than the minimum basic price 8.08, which is why the minimum basic price of 8.08 is applied for this stop. The price of two security packages 2 x 0.36 = 0.72 will be added to the total price. For the calculation of the monthly cash service fee, all service fees for the monthly stops will be added together, and the price for security packages and seals will be added to the total price. VAT will be added to the total price.