Slide presentation for webinar held June 29, 2016 co-hosted by Eka Software and Commodity Technology Advisory.

1. Webinar: Why Commodity Analytics is the Next Big
Thing for Trading, Risk, & Supply Chain
Patrick Reames
Founder and Managing Partner,
Commodity Technology Advisory
Michael Schwartz
EVP & Chief Marketing Officer,
Eka Software

2. USA | India | United Kingdom | Australia | Canada | Singapore
Agenda
• Commodity market tech spending trends
• Technology solution trends
• Why commodity analytics now
• How Commodity Analytics Cloud enables fact-based decision
making
Join the conversation:
@EkaSoftware

3. CRITICAL TRENDS IN CTRM TECH
EKA WEBINAR – JUNE 29 2016
© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC

4. ETRM/CTRM TECHNOLOGY TRENDS
 Commodity Market and Tech Spending
 Regulations are Impacting Systems
 Cloud, Cloud and more Cloud
 A Return to “Grow Your Own”?
 Changing Landscapes of Tech Providers and Buyers
 Analytics a “Must Have”?
© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 6/29/2016 4

5.  Seeing significant belt tightening in many sectors of the
industry as commodity prices drag bottom, regulatory and
other costs increase and profits are squeezed
 IT is always among the first cost cutting casualties and this time
is no different
 The market for “full” CTRM solutions has not grown as
projected and recovery will be dependent upon commodity
market improvements
 New systems are still being purchased, but there is pressure in
all areas of costs from license to support
 Buyers that are in the market are often seeking alternatives to
the traditional approach of “soup-to-nuts” vendor supplied
CTRM solutions
COMMODITY MARKETS IMPACTING TECH SPEND
6/29/2016© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 5
Source: Bloomberg.com
Bloomberg Commodity Index 06/28/16

6.  Increasingly invasive regulatory regime in the west: D-F, REMIT, EMIR, MiFiD2 and
equivalents
 Regulations are impacting systems and processes
 Trade Reporting
 Data Retention
 Risk Management
 Portfolio Management
 Capital Adequacy
 Market Abuse
 Market centralization
 More connections, more data, greater reporting…
REGULATION INCREASING COMPLEXITY
6/29/2016© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 6

7.  Increased costs and risks - direct and indirect (staff, systems, business processes, fines and penalties,
reputation)
 Growing pool of regulatory solutions, tools and add-ons have emerged to address specific market
requirements
 Not just regulatory though - outside and internal auditors, stakeholders etc. will also expect more rigor,
including KPI’s
 Treasury management becoming more critical - protecting balance sheet and meeting lender/debt
holder requirements
 Greater amounts of data are being held longer - data management, analysis and visualization are
becoming more critical capabilities in addressing regulatory and stakeholder inquiries
REGULATORY AND MORE
6/29/2016© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 7

8.  General economic environment has resulted in cost cutting and deferred projects; however, this is NOT
the entire story:
 The near demise of Triple Point and some notorious project failures have also resulted in increased due diligence
and are slowing the buying cycle
 Buyers are focusing more on track records – successful implementations, completeness of the solution and
reliability of vendors
 This trend is only likely to deepen given current environment, including geopolitical concerns impacting
commodities markets - Brexit, unreliability of growth in Asia, etc.
 More and more buyers are looking at “non-traditional” solutions, including cloud and hybrid
homegrown/vendor
BUYERS ARE BEING MORE CAUTIOUS
6/29/2016© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 8

9. “CLOUDY” DAYS
 Adoption of cloud
solutions increasing –
estimated 15% annual
growth v. 3% for
“traditional” software
 Fits with current economic
environment
 Reduced up-front
expenditures
 Lower internal IT
 Different accounting
treatment
 More options - Growing
number of true “in the
cloud” solutions from
multi-tenanted to hosted
in the cloud
© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 6/29/2016 9
3.4 3.5 3.6 3.7 3.8 3.9 4 4.1 4.2 4.3
Lower Total Cost of Ownership
Lower demand on internal IT resources
Faster deployment
More secure backup, recovery and cyber…
Perceived Benefits of SaaS and the Cloud
3.5 3.6 3.7 3.8 3.9 4 4.1 4.2 4.3 4.4 4.5
Difficulties in integrating with other systems
Lack of control
Loss of agility for competitive advantage
Perceived Negatives of SaaS and the Cloud

10. BUILD IS MAKING A COMEBACK
6/29/2016© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 10
Why would you build? Why would you buy?
 Top tier – multi-
commodity, global
merchants/traders
looking at build – no
solution on the
market to cover all
requirements.
 Many adopt hybrid
approach –
combining
components of
vendor solutions with
homebuilt –
willingness to
consider smaller
vendors if vendor risk
can be addressed.
 Is there a growing
disillusionment with
commercial systems?
38%
32%
30%
Yes definitely consider custom
Yes, but probably buy
No, we would not consider custom
1 2 3 4
IT prefers this approach
We are too different
Avoid generic…
We know our business…
To have total control…
1 2 3 4
By the time delivered,…
There are adequate…
Impossible to free up…
Keeping it current to…
Too costly to build
We are not an IT…

11.  Despite ongoing M&A activity and market size growth, ComTech market sizing studies indicate that the
top 6 vendors market share has eroded (from 71% in 2014 to 65% in 2015).
 Some of this is attributable to the near demise of Triple Point but not all….
 Top Tier is shrinking – banks, utilities and others left commodity trading or scaled down operations considerably
 Reduced budgets and general cost cutting
 Many large established vendors have been late to the cloud and are essentially providing hosting services
 Emergence of ERP vendors with Commodity Management capabilities taking market share
 Still more than 90 vendors in the space – some of the smaller, more modern technology players are gaining ground
 The CTRM vendor market is undergoing a shift, with many of the large vendors moving down-market
to preserve market share and find growth…and in the process, reducing functionality and capabilities to
better compete on price.
CTRM VENDOR TRENDS
6/29/2016© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 11

12.  Despite cost pressures, regulatory mandates, increasing market risks and need to improve bottom-line
performance are driving the need for improved analytics – predictive analytics, sentiment analysis,
beefed-up risk metrics, optimization etc.
 In the recent ComTech 2016 CTRM Vendor Perceptions report, 50% of the respondents ranked
“Comprehensive Analytics” as a critical or important capability for their company.
 Data management and analysis tools are becoming a “must have” capability for a growing number of
trading and marketing companies.
 How much of this will ultimately be met by ETRM/CTRM vendors remains to be seen, but the trend is
increasingly to extract these functions as an enterprise-wide layer that can provide improved processing
performance, improved analytics capabilities, and improved visualizations not reliant on the underlying
CTRM architecture.
ANALYTICS ARE BECOMING A “MUST HAVE”
6/29/2016© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 12

13.  The fall in commodity prices (driven by over-supply/lower demand) is driving the big picture, squeezing profit
from many commodity trading entities; the regulatory environment is not helping either, adding costs,
complexity and uncertainty.
 These two factors are driving many of the current tech trends – cost cutting, buying cycle lengthening,
increasing popularity of cloud, hybridized solutions and increased interest in analytics.
 Despite the ‘gloom’ and uncertainty generated by the media, the overall tech market (so far) remains active
with bright spots in certain segments. However, the larger CTRM vendors are facing increasing pressure to
pivot to lower cost solutions that address a wider market, and with over 90 vendors, competition is fierce.
 For tech users/buyers, there is no singular approach or vendor - just more requirements and options that
need to be addressed with lower budgets – will require innovation and an openness to new tech approaches.
SUMMARY
6/29/2016© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 13

14. CONTACT
6/29/2016© 2016, COMMODITY TECHNOLOGY ADVISORY, LLC 14
19901 Southwest Freeway, Suite 140
Sugar Land, TX 77479
Phone: 281.207.5412
Cell: 832.687.4736
preames@ComTechAdvisory.com
Patrick Reames
Managing Partner

15. USA | India | United Kingdom | Australia | Canada | Singapore
Eka Software Solutions: Company Profile
Position: Global leader in on premise & cloud served Smart Commodity Management solutions
Founded: 2004
Employees: 315
Global Offices: 7 offices. 3 development & support centers
• North America, APAC, Europe
Investors: Silver Lake Partners - GP Group - Nexus Venture Partners
Customer Base: >50 leading global enterprises on 4 continents
• Cargill, EDF Trading, Twin Eagle, Rio Tinto, Mitsui, Bunge, BMA, Graincorp, Viterra, Louis
Dreyfus, COFCO, CBH, Boliden, Tata Steel, Pinnacle Foods, Just Energy, REG
Solutions: InSight Commodity Management (CM) Platform (ETRM & CTRM)
• End to end financial and physical transaction management – Energy, Ags, Metals, Bulk
• Cross asset trading and position management
• State of the art enterprise risk management
Commodity Analytics Cloud
• Analytics specific to commodities – Commodity Intelligence Engine
• Multiple data sources internal and external to Eka (including competitive E/CTRM)
• Prebuilt apps
15

16. USA | India | United Kingdom | Australia | Canada | Singapore
Accenture and Microsoft Study – Digital Trends in O&G
16
• Short term focus is to lower costs and longer term is to create
value
• Investment continues and is expected to increase
• Digital is enabling companies to reduce costs and better
manage operations through new capabilities such as advanced
analytics
• Companies need to quickly improve their capabilities, including
maturity in analytics
• Increased use of cloud to unlock the value of digital

17. USA | India | United Kingdom | Australia | Canada | Singapore
Why is Analytics and Fact-Based Decision Making a Challenge
1. Many commodity market problems are unique and require complex logic to get to
the answer. Which software can do this for me?
2. Existing options are expensive and time consuming to implement. We’ve already
spent so much, do we have to spend significant sums again?
3. To make meaningful and timely decisions, large volume data needs to be integrated
from multiple sources and processed. What technology choices do I have?
Most companies have already invested in ERP, CTRM, Treasury, CRM, Accounting, Business Intelligence,
etc. – but still rely on spreadsheets to get to answers.
Traditional options are to customize ERP or CTRM or write custom applications. But these are transaction
systems, not analytics systems, so customizing them ends up being more expensive & less effective.
Integration projects are expensive and risky. And to process large volumes of data quickly, existing
options will require large computation capability driving costs even higher.
17

18. USA | India | United Kingdom | Australia | Canada | Singapore
18
How Commodity Analytics Cloud Solves These Problems
CONNECT
•Data from multiple
sources
•Internal applications,
external sources,
spreadsheets
COMPUTE
Commodity
Intelligence Engine
•Pre-packaged,
commodity business
specific algorithms
•In-memory data grid
Crystallize
•Apps deliver commodity
specific visualizations
•Advanced visualization
with BI tools like Tableau
and Qlik

19. USA | India | United Kingdom | Australia | Canada | Singapore
Key Product Features
Commodity Intelligence Engine
• Algorithms, models, analysis engine
Apps
• Examples: Position Consolidation, Procurement,
Plan Performance
Monitors
• Brings focus on key areas instead of combing
through all data
Self Service
• Intuitive visualizations and app design
Sharing
• Share insights and ideas with team members
Data Ecosystem
• All data required for analysis in one place
Connectors
• Bring in data from 3rd party apps & data sources
Data Preparation
• Mapping and transformation that relates raw
data to what the engine needs
Speed
• Process millions of data entities in seconds
Mobile
• Available on mobile devices including tablets
and phones

20. USA | India | United Kingdom | Australia | Canada | Singapore
Apps For Your Industry - Examples
Commodity Analytics Cloud Apps are a powerful component of our commodity
management platform.
• Make faster, data-driven, fact-based decisions
• Answer critical business questions
• Arm users with confidence to make the right decisions at the right time
Commodity
Trading
Energy Agriculture Manufacturing/
CP
Metals &
Mining
Bulk Commodity
Sites
• Position
Consolidation
• P&L Explained
• Accounts
Recon
• Trader analytics
• Flash P&L
• P&L Explained
• Accounts
Recon
• Position
Consolidation
• Trader analytics
• P&L Explained
• Accounts
Recon
• Position
Consolidation
• Trader analytics
• Production
simulation
• Procurement
• P&L Explained
• Raw Material
Margin
• Inventory
optimization
• P&L Explained
• Plan
performance
• Plan
diagnostics
• Stockyard
optimization
20

21. USA | India | United Kingdom | Australia | Canada | Singapore
Use Case: P&L Attribution
• Why is it hard:
• Data is spread out among different systems and requires many excel sheets,
macros, and man hours to consolidate and gain a holistic view
• Interdependencies between factors complex to parse
• Difficult to gather and analyze data on a daily/timely basis so a large portion of
change put in an unexplained bucket
• Although many E/CTRM systems have P&L attribution modules, in the real-
world attribution is done in spreadsheets
21

22. USA | India | United Kingdom | Australia | Canada | Singapore
P&L Explained - Easy Upload of Data from Multiple Sources
22

23. USA | India | United Kingdom | Australia | Canada | Singapore
P&L Explained - Flexible, User-Defined, 5-Tier Hierarchy
23

24. USA | India | United Kingdom | Australia | Canada | Singapore
P&L Explained - Intuitive, Graphical Interface
24

25. USA | India | United Kingdom | Australia | Canada | Singapore
P&L Explained - Sort, Filter, Group, and Drill to Trade Level
25

26. USA | India | United Kingdom | Australia | Canada | Singapore
Commodity Analytics Cloud – Next Generation Analytics
• Blend data from internal and external sources
• Use commodity specific algorithms and models
• Gain insights with business specific apps
• Empower users without reliance on IT or team of BI specialists
• Make timely, data-driven, and fact-based decisions
26

27. USA | India | United Kingdom | Australia | Canada | Singapore
Questions?
27
Michael Schwartz
EVP & CMO
michael.schwartz@ekaplus.com
Webinar Recording:
https://www.ekaplus.com/resources.aspx