Presented by: TradeCardJuly 2009

TradeCardConnect - Transact - Profit

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Agenda

• Welcome to TradeCard

• Why are we doing this

• Who is TradeCard and how does it work

• What settlement options are being offered

• Summary of TradeCard Benefits

• Q & A

Why are we doing this?

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• As cross border trading continues to grow, it’s imperative that we adopt processes to allow trading partners to increase their volume of business without adding resources in operational areas.

• In particular, we believe managing paper-based trading process (such as L/C) no longer best supports the evolving international supply chain strategy.

• If an open and flexible platform is used, it will benefit all parties involved in trade business on increased visibility into transactions, decisions and documents associated with the procure-to-pay lifecycle.

• Automating the financial supply chain and linking it to the physical supply chain will definitely lower transaction costs and optimize productivity.

Why are we doing this?

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Disconnection from your Trading Partners Creates hiccups in the trading process

CHALLENGES OF A MANUAL, DISCONNECTED

FINANCIAL SUPPLY CHAIN

Fax PO

Phone inamendment

Invoiced for too

many pieces

What are my cash flow

needs? How many items do

we need to order? How are my credit lines

being used?

Fail inspection, unclear where breakdown in communication was; transaction may stall

Have goods–do customer and supplier know?

Don’t know how many items will arrive or when

Where is my payment?

Not apprised of amendment

Sent toofew pieces

How do we optimize financing without visibility?

Inspection

Distribution Centers

FinancialInstitution

Stores

Logistics

• Not sure of location of documents or goods

• Orders and amendments often require faxes, e-mails and phone calls

• Lack of visibility may lead to errors

• Lack of information can lead to bad decisions

• Difficult to forecast financial needs

• Challenging to optimize financing opportunities

• Discrepancies can remain unresolved, impeding a transaction

YOUR COMPANY

Manufacturing

TransportationSuppliers

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Common Platform to move information and money enables collaboration and visibility

Transportation

Manufacturing

Inspection

Logistics

Distribution Centers

FinancialInstitution

Suppliers

Stores

Advises goods have been loaded on board

Electronic compliance compares documents

Customer and supplier agree on purchase

order

Notified that debit and credit should be made

DISCREPANCY: Shipped too many items

Automated Supply Chain Financing optimizes credit through the supply chain

BENEFITS OF AUTOMATING

THE FINANCIAL SUPPLY

CHAIN

• Transparency into status of transaction

• Automated processes create efficiencies and eliminate errors

• Immediate cost savings

• Optimized financial and procurement decisions through access to information

• Innovative financial programs

• Shortened trade cycles

• Rapid online discrepancy resolution

• Improved trading partner relations

YOUR COMPANY

Who is TradeCard and how does it work?

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Brands - Do you recognize?

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Who is TradeCard

• TradeCard Inc. is a $1 Billion privately-held technology and services firm specializing in the emerging Supply Chain (SC) market.

• TradeCard is recognized as the leading web-based platform that enables the global supply chain to conduct trade transactions from purchase order to financial settlement.

• More than more than 7,800 retailers, brands, manufacturers and service providers in 40+ countries to be on the TradeCard Platform today.

• These customers enjoy access to a suite of innovative financial services offered by our partners JP Morgan Chase, Coface (largest provider of credit insurance), Barclays, NDB etc.

• TradeCard holds a patent for its data compliance engine which enables payment decisions by comparing electronic documents.

• Backed by Warburg Pincus, Mitsui & Co., Mitsubishi Corporation and the World Trade Centers Association, TradeCard is headquartered in New York with offices in Hong Kong, Taipei, Brussels, Colombo, Seoul and San Francisco.

• TradeCard is sustaining double-digit growth every quarter.

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TradeCard Platform

Online Transaction Management and Settlement

• TradeCard’s secure web based platform allows buyers and sellers to initiate, conduct and settle transactions without any delays.

• By connecting buyers, sellers and banks, TradeCard’s patented technology automates and streamlines the transactions.

• TradeCard’s customers have gained significant and measurable savings through lesser transactional costs, improved visibility and reporting of payments.

• TradeCard enables a full suite of Financial Services that provide new options to a Supplier (including Pre-Export Financing, Early Payment & Payment Protection).

• Purchase Order data is automatically applied to the Shipping Documents to improve data quality and minimize discrepancies.

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– Electronic delivery of Purchase Orders and Purchase Order amendments .

– Simplified invoice creation: Information is pre-filled from Purchase Order data. TradeCard invoice format meets international customs standards.

– Streamlined discrepancy negotiation and payment authorization through online collaboration and work flow management.

– Online Cash Management tools to provide central access to information and opportunities to reduce Days Sales Outstanding (DSO) without need for a credit line.

– Complete web-based visibility from Purchase Order through the payment process with automated e-mail notifications and thereby improve communication across all parties.

– Letter of Credit expenses are avoided and total processing fees are reduced.

– Access to a variety of financing options including early payment program from TradeCard financial partners.

– TradeCard support and the connection to our financial partners for other financing options

TradeCard Value Proposition

Typical TradeCard FST Workflow – Example 1

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Purchase Order Created, Approved and Sent to

TradeCard

1

TradeCard initiates the Settlement Process

Purchase Order Notification Sent to Supplier. Supplier Reviews Purchase

Order

Columbia Sportswear notified of any discrepancies

Columbia Sportswear can negotiateany discrepancies.

Columbia Sportswear’s Account Debited

Supplier’s Account Credited

Supplier notified of any discrepancies

Forwarder

Liaison Office

Liaison Office sends Statement ofReview To TradeCard

OPTIONAL SERVICESAssurance of Payment

Early Payment Program*

Payment Authorization Document is Approved, Payment is Scheduled*

Compliance Runs, Payment Authorization Generated

SupplierBuyer

Create and Send Commercial Invoice

Forwarder Cargo Receipt sent to TradeCard

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8

6

4

5

3

2

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Typical TradeCard FST Workflow – Example 2

Electronic Compliance:Compares Payment with Receipt and manages the Adjustments

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Chargebacks/Deductions14

Goods Receipt12

Shipment Shipment TrackingTracking

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Freight Forwarder

Purchase Order Advised, Purchase Order Advised, Approved, and StoredApproved, and Stored

4PO Registration & PO Registration & AmendmentsAmendments

3

SRP/ERPSRP/ERP

Create/Revise Supply PlanCreate/Revise Supply Plan

1Supply Plan NegotiationSupply Plan Negotiation

2

Create Labels & ASNCreate Labels & ASN6

SupplierSupplier

PO Change Requests, PO Change Requests, Follow Up & Follow Up & Production MilestonesProduction Milestones

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BuyerBuyer

Create Commercial Create Commercial InvoiceInvoice using Packing using Packing Manifest generated Manifest generated from ASNfrom ASN

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Discrepancy Resolution;Discrepancy Resolution;Payment DecisionPayment Decision

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Patented Electronic Compliance:Compares Procurement and Fulfillment Data/Documents

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Determine Value Date; Schedule Funds Transfer

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Money MovementA/R Interface/VisibilityA/P Interface/Visibility

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Factory Supplier Enablement Process Flow

Start Producing Goods

Supplier

Enablement

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Create & Print HU Labels4

Create Packing Plan

Print DIM Carton Labels

Apply DIM Carton Labels

Prepare Shipment for Ex-Factory

Complete Shipment

Prepares Invoice

Create Purchase Order Create Purchase Order (ERP) (ERP)

(and Amendments)(and Amendments)

1

BuyerBuyerFactory

Download Purchase Download Purchase Orders and Orders and

AmendmentsAmendments

2

ASN SentASN Sent13

Forwarder

Pack Finished Goods in Outer Cartons

Apply Handling Unit (HU) Labels

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6

7

9

10

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12

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Shipment Shipment UpdatesUpdates

17b

ASN SentASN Sent14b

Shipment Shipment UpdatesUpdates

17a

ShipmentShipment Ex FactoryEx Factory

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ASN SentASN Sent14a

Scan Handling Unit Label8

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Broadest and Deepest Collaboration and Visibility

SupplyChain

BusinessIntelligence

► Trading Partner Spotlight ► Benchmarking► Trendspotter

FinancialCo

mm

on

Vie

w o

f Glo

bal

Sou

rcin

g

► Planning Collaboration► Raw Materials Management

Advanced Collaboration► PO Collaboration

► Purchase Order Management► E-invoicing► N-way matching

► Chargebacks► Customs Invoice► First Sale

On Demand Financial Services

► Invoice Discounting

► Pre & Post Export Financing ► Payment Protection► Settlement

► Work-in-Progress► Shipment Status

► Shipment Tracking

► Packing Automation► Label Generation► ASN Creation

► Ticket Ordering► 10 + 2 Filing

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Realize the benefit of a next generation sourcing platform

Improve Gross Margin

Improve Cash Flow & ROIC

• Straight-thru A/P Process

• Deductions management

• Eliminate Letters of Credit

• Local Office Automation

• Invoice Discounting

• Direct Retail Shipments

• First-Sale /Duty Optimization

• Reduce Vendor Cost of Capital

• Free Credit Lines

• Increase DPO

• Improve Return on Cash

• Optimize Inventory

Reduce Operating & Financial Costs

TradeCard’s Extended Supply Chain Value Creation

Simultaneously improve margin and lower capital utilization to increase ROIC

What settlement options are being offered

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Settlement Options

• Standard Settlement– Buyer sends up to date Purchase Order information to TradeCard– Supplier negotiates/confirms Purchase Order and submit Commercial Invoice on TradeCard– Logistics Service Provider confirms the Forwarder Cargo Receipt on TradeCard– Liaison Office/Buyer’s Agent confirms the Statement Of Review on TradeCard– TradeCard automatically checks for Documentary Compliance– Buyer completes the Payment Authorization Document on TradeCard – Buyer pays the Supplier (Pre-agreed payment terms)

• Settlement with Early Payment– Same workflow as Standard Settlement– Buyer pays the supplier within 3 –6 days of TradeCard Documentary Compliance (Discrepant

documents may require more time)

• Settlement with Credit Protection– Same workflow and payment term as Standard Settlement– Supplier purchases Coface/CIT Protection

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Buyer Funded Early Payment Program

• Buyer Funded Early Payment Program – Buyer approves the payment authorization within a few days of TradeCard Documentary

Compliance– Columbia Discount Fee may be adjusted at the start of each quarter due to interest rate

fluctuations

• Benefits to the Supplier– A new source of operating cash flow– Quicker access to cash– Improves your cash forecasting– Improves your Balance Sheet– Reduces your dependence credit facilities

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Optional Payment Protection

Coface is the leading worldwide export credit insurance provider

– Rated AA by Fitch IBCA and has 70,000 Clients in 73 Countries, 30+ million customers in the database

– Quality Label and Rating service - world’s first receivables rating service on the web

• Coface assigns Buyer’s a credit limit for use with each supplier for a period of time

• At the Supplier’s option, this coverage may be purchased at time of Invoice

• 100% protection, subject to TradeCard Documentary Compliance

• Suppliers may also decline protection

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Example : Settlement Fees

Open Account Early Payment

Transaction Fee (Per Invoice)

0.25% ($45 minimum)

If invoice amount <USD500 TC flat fee of USD5. Between USD500 & USD2500 TC flat fee of USD10.

0.25% ($45 minimum)

If invoice amount <USD500 TC flat fee of USD5. Between USD500 & USD2500 TC flat fee of USD10.

Buyer’s Discount Fee N/A 4.25 % APR based on 360 days

(Pls check with LO for updated rate)

Money Movement Fee (Per wire transfer)

$15 per money movement $15 per money movement

Optional Credit Protection (Coface)

0.08% 0.08%

Payment Term 30 days 3- 6 days after payment authorization

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Example : Settlement Fees

If $25,000 Invoice is presented to TradeCard

– Standard Settlement• $62.50 + $15 = $77.50

– Standard Settlement with Optional Credit Protection• $62.50 + $15 + $20 = $97.50

– Early Payment on day 5 (17 days early)• $62.50 + $15 + $50.17 = $127.67

– Early Payment on day 5 with Optional Credit Protection• $62.50 + $15 + $20 + $50.17 = $147. 67

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Timing of Payment on TradeCard

• Funds are moved by JP Morgan Chase, one of the leading financial services firms in the world

• Buyer payment flow on a TradeCard transaction

• Upon receipt of Commercial Invoice and Packing List from the supplier, TradeCard will identify discrepancies (none may be found).

• Once Buyer has reviewed the discrepancy notice and compare it to their ASN records, they will approve the Payment Authorization document. Buyer will then issue an approval for TradeCard to effect payment.

• TradeCard will then issue payment notification identifying the date that the funds will be debited and credited based upon the agreed terms of the transaction.

• TradeCard provides visibility into the payment process with email notifications and on-line reports.

Summary of TradeCard benefits

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Benefits all parties in the Supply ChainCreates True Cost Reduction, Not Cost Pushing Programs

SALES / SERVICE• Receive, acknowledge and

digitally sign P.O.s• Collaborate with customers• Cost-effectively connect via the

Internet• Stay current with latest amendments

PROCUREMENT• Eliminate manual effort to send,

track and control P.O.s and amendments worldwide

• Collaborate with suppliers• Cost-effectively connect through the

Internet• Create customized workflows and

event management alerts• Early visibility to shipment data

ACCOUNTS PAYABLE• Receive standard electronic invoices• Reduce overall process cycles• Improve service to suppliers• Manage all trade related documents• Utilize sophisticated 3-way data

matching• Automate discrepancy management• Create customized workflows by

supplier• Automate payment decisioning

ACCOUNTS RECEIVABLE• Create and deliver electronic

invoices• Gain visibility into end-to-end

process• Obtain cost-effective credit

protection• Improve discrepancy management

FINANCE• Deploy Automatic Purchase

Discount Programs• Manage all financial aspects of the

transaction from a single platform• Extend payment terms• Gain visibility to improve cash

forecasting• Extend or free-up credit capacity• Improve cash flow management• Reduce trade fees and expenses

FINANCE• Obtain attractive financing (at P.O. or

Invoice)• Reduce DSO• Strengthen cash management• Gain improved visibility to transaction• Improve working capital management• Reduce trade-related fees and

expenses

SUPPLIERS

CUSTOMERS