1. The holistic commodity management approach 25-3-2014

2. PwC Agenda Introduction Trends The PwC holistic commodity management approach Different types of trading require different system Functionality CTRM Systems Roadmap Dycotrade

3. PwC High volatility in commodity prices Slide 3

4. PwC Trends From decentralised to centralised commodity management More liquidity in markets/ more products and banks offer more and smaller products Awareness and increased opportunities for portfolio optimisation (Arbitrage) Interest in Commodity Risk Management Systems More Regulations (MiFID II, MAD, EMIR, Dodd Frank act) New Accounting Regulations (IFRS 9, IFRS 13) Need for improved liquidity forecasting and cash management Need for a system that supports valuations including basis risk and CVA/DVA Slide 4

5. PwC Commodity Management Accounting & Internal control TreasuryLogisticsIT Risk Management & Compliance Tax & Legal Holistic Commodity Management Approach How What Regularly compliance & control Efficient and effective processes Integrated Commodity Management Value throughout the business TimeSafeguarding assets Influencing business strategy The Commodity Management value chain Complying with regulation Minimizing cost Maximizing shareholder value Slide 5

6. PwC Risk Management & Reporting Planning & Portfolio Management An end to end view on Commodity Management deal life cycle Deal Negotiations Deal Management Deal Execution Settlement Deal Capture Accounting & Reporting Systems Commodity Management Strategy Slide 6

7. PwC Our Holistic approach Deal Analysis Deal Entry Logistics and Nominations Deal Management Inventory Management Deal Entry Validation Transaction Reconciliation Confirmation Contract Management Limit Monitoring MTM & Valuation P&L Calculation Risk Measurement Performance Measurement Credit Risk Management Actualization Settlement Journal Entries IAS 39/ IFRS 7 Disclosures Future State Environment Infrastructure Business Objectives and Risk Appetite Front, Middle and Back Office Functions Risk Limits Portfolio/book management Pricing Models & Analytics Metrics/KPI Risk Reporting Performance Reporting Compliance & Regulatory Reporting Financial Reporting OrganizationMeasurement & AnalysisReporting Process People Technology Actualization Settlement AP/AR Journal Entries IAS 39/ IFRS 7 Disclosures Deal Negotiations Deal Management Deal Execution Settlement Deal Capture Slide 7

8. PwC We distinguished three different types of Trading for benchmarking Slide 8 1. Supply chain Trading 2. Asset backed Trading 3. Proprietary Trading Sales/procurement driven ArbitrageDirectional Low Risk profile High Less Controls / open positions /MtoM accounting More Freight/physical tradingPaper trading

9. PwC CTRM systems Commodity Trading & Risk Management requires specific functionality Gartner Magic Quadrant The ETRM market is dominated by niche vendors Average ETRM supplier revenue is in the range of $20 – $24 million per vendor Many consolidations in the last years There is not a wide variation in the platforms offered by vendors

10. PwC Selection criteria and weighting factors Overall we differentiate between the following areas, the final criteria will be determined in close cooperation with Customer: 1)Overall system vendor information (credentials) 2)Cost estimations (license / maintenance fees) 3)Deal Negotiations 4)Deal Capture 5)Deal Management 6)Deal execution 7)Settlement 8)Portfolio Management 9)Freight Logistics 10)Risk Management, Treasury & Reporting 11)Governance & Controls 12)Systems & Interfaces

11. PwC Roadmap Dycotrade Some of the elements currently in place segregation of Duties Deal capture, pre deal analytics, real time reporting Portfolio management, Wash outs, circles and strings. Interfaces with back-office and logistics FX Management Some of the work in progress elements More advanced pre-deal analytics Regulatory reporting under EMIR/MIFID II Hedge accounting solution (these are the elements where PwC is involved)