Shaping the future of Trade Services

About GlobalTrade Corporation Page 2 GlobalTrade Corporation (GTC) is a software developer and applications service provider whose product solutions improve the world of trade finance and trade services. technology helps buyers, sellers, traders, and financial institutions communicate faster and more efficiently to free up working capital, realize cost savings, reduce risks and improve monitoring and control Our customers are:  Corporations that need consolidated access to multiple banks and logistic providers  Banks that require trade finance and trade services software solutions to meet their clients’ needs Our Expertise is in multi-bank financial supply chain systems Best Independent Trade Platform/System Provider for 2005, 2006 and 2007 by Euromoney’s Trade Finance Magazine 2006 Canada’s 10th Fastest Growing Company by Profit Magazine

Page 3 Clients

Page 4 Banks & corporates embark on the same objectives  increase process efficiency and security  reduction of costs through improved process efficiency and increase of STP (straight-through-processing)  lower operational risks due to reduction of manual processing  complete audit trails for monitoring of all process steps (audit compliance, US- GAAP, SOX)  integration with existing ERP/BackOffice Systems

Page 5 … but follow different concepts low high banks preferences customers preferences proprietary Bank applications (one-to-many concept) Multibank /- participant platform (many-to-one concept) external communication gateways (e.g. Propriatary networks, DTA, secure etc.)

Page 6 Proprietary bank systems (one-to-many concept) Bank view  high level of BackEnd integration  highest STP-ratio possible  high level of customer retention Customer view use of various bank portals data is hosted on various external resources – difficult to consolidate no customization no ERP/ Back-Office intergration Bank Client

Page 7 External communication gateways Bank view  BackEnd integration needed separately for each message format  use of network results in additional cost  low STP-ratio if not integrated into BackEnd systems  data transmission via web requires PKI agreements Customer view separate BackEnd application needed use of network result in additional cost ERP/ Back-Office intergration is cost intensive the concept of data exchange via external networks leads to multiple identical data sets data transmission requires PKI agreements Corporate Bank A Bank B Corporate Service Provider A Service Provider C Service Provider B

Page 8 Multi bank/participant Platform (many-to-one concept)  Bank view  no participation fees  BackEnd integration can be staged (depending on the number of customer applications) Customer view one data source customization possible easy ERP/ BackOffice integration complete audit trail all participants in a transaction can be involved Corporate Bank 1…n customs carrier supplier buyer insurer

Page 9 Corporate Centric Multi-bank System Improves Visibility Monitoring & Control for Treasury insurances banks chambers of commerce freight forwards carriers surveyors logistics procurementproduction salesfinance/treasury entity 1... nsubsidiaries All process participants interact on one web-based true multi-bank and multi-entity process

Page Platform  web-based for global connectivity and quick deployment  interfaces to internal and external systems  modular architecture Global Trade Management systems  can be installed internally, or at a trusted FI provider Collaboration Progress Monitoring ERP Interfaces Credit Limit Monitoring Multi-Office Management Workflow Document Generation Billing User-Defined Reporting Archiving Back-office and ERP Systems Data & Access Security Data Mapping Multi-Bank and Logistics Connectivity Bank Internet Open Account Financing Standby LC/Guarantee Receipt Export LC / Collection Custom Built Systems Standby LC/Guarantee Issuance Import LC / Collection Global Trade Management Systems Internet TSP Business & Network Modules

Page 11 Case Study: Guarantee Issuance Solution

Page 12 Initial Situation Management of L/G is decentralized and handled independently by each subsidiary L/G exposure with 47 banks (applied by 52 subsidiaries) Reconciliation of L/G data and settlement of fees is time consuming and prone to errors Central treasury has to monitor the terms and the availability of L/G facilities and the allocation of business to the banks Key Objectives Harmonisation of documentation and saving of L/G commissions Improvement of transparency and avoidance of discrepancies between banks' and EADS' records Preserve flexibility for subsidiaries but enforce standard policies Improve efficiency Achieve a better diversification of business allocation between the banks High and quick acceptance of the new solution by subsidiaries and banks Case Study: Guarantee Issuance Goals

Page 13 Case Study: Guarantee Issuance Solution  EADS successfully arranged a new L/G Umbrella (existing exposure was rolled in) with 25 identical bilateral L/G facilities that were allocated in a quantity tender.  EADS appointed HVB as a service provider to 25 banks and 38 EADS subsidiaries. EADS N.V. 38 Subsidiaries 25 Banks L/G Agent 25 identical Bilateral Facility Agreements Co-ordination Agreement Sub-Limits / Guarantees

Page 14 Case Study: Guarantee Issuance Technology Solution:  Web-based for 24x7 availability and easy rollout to 38 EADS divisions and 25 banks  Configurable workflow engine manages all authorizations incl. syndications and club deals  Automatic alerts and tracers ensure compliance with response-time guarantee  Integrated credit line management module automates monitoring credit utilizations  Flexible transaction data model simplified conversion of the existing guarantee portfolio  Billing module automates calculation and allocation of fees including previous period adjustments and multi-bank reconciliation  6 months from concept to production  Substantial reduction of operational costs Bank Agent LG Issuance WWW Multi-bank WWW 38 divisions 25 banks Agent System

Page 15 Case Study: Export Documentary Credit and Collection Solution Automotive Manufacturer

Page 16 Case Study: Export LC & Collection Challenges Improve cooperation between factories, that prepare documents, and L/C department, that receives and allocates L/C advices Improve visibility of each step in the transaction process Reduce number of discrepancies in the presentation Improve efficiency by automating transfer of L/C information into invoicing system and relevant product information into system for preparation of documents Allow L/C department to electronically pre-check L/Cs with banks Enhance straight through processing through enablement of foreign banks to send export L/C messages electronically

Page 17 Case Study: Export LC &Collection Solution Electronic Delivery of export L/C messages Financial release and cooperation between the L/C Department and Factories L/C department can assist factories regarding issuing compliant documents Logistic providers can be connected to the platform and exchange electronic documents with the L/C Department, Factories and others Global visibility and real time reporting L/C Department e-Advices Presentations Payments Instructions and Documents Domestic and Foreign Banks Factories Logistics Providers

Page 18 Case Study: Export LC & Collection Technology WWW Collection Module L/C Department Factories Export System ERP Interface SAP AR Interface Electronic Banking Presentation Information L/C Info Vehicles & Parts Data Web-based L/C and Collection management system for easy world-wide roll-out to factories, 3 rd party document providers and banks Improved efficiency and reduced discrepancies by automating transfer of: L/C information into corporate’s ERP system(s) Relevant product information from the invoicing system into document preparation instructions L/C and collection presentation information into accounts receivable system for reconciliation of incoming payments Global Ordering SAP Financials Export L/C Module Shipping Forwarding & Insurance Companies

Page 19 Sample Structures and Workflows

Page 20 Banks 1…n grant global credit facilities on group level Subsidiary Banks 1…n allocate sub creditlines to entities request guarantee issuance direct within allocated creditlines Beneficiary issue the guarantee Financial Dep. A B C Optimized Credit Facility setup

Page 21 Setup Credit Line Limits Setup Guarantee Template (by Bank, Buyer or Type) Apply for Guarantee Check Credit Limit Agree on Guarantee Text Guarantee Request Select Bank Finance DepartmentUnit Buyer Approve non-standard Applications Approve above-limit Applications Update Credit Line Utilization Update Reductions & FeesCheck Fees Bank Standby LC/Guarantee Issuance Workflow

Page 22 Present Bank Pre-check Collaborate Setup Document Templates Setup Master Template Receive Advices & Amendments Confirm with internal Units Factory Logistics Sales Factory Insurance Inspection Bank Finance Department Bank Freight Forwarder Sales Logistics Workflow Export LC

Page 23 Jacob Katsman GlobalTrade Corporation Tel: Mobile: Contact Information