Oliver Bastert VP, Product Management, FICO

© 2020 Fair Isaac© 2020 Corporation. Fair Isaac Corporation. Confidential. Confidential. This presentation is provided for the recipient This presentationonly is and provided cannot be for reproduced the recipient or shared only without and cannot Fair Isaac be Corporation’s reproduced express or shared consent without. Fair Isaac Corporation’s expr1 ess consent. Probabilistic Reasoning • Predictive Models • Machine, Deep & Reinforcement Learning AI Solution • Explainable AI • Bayesian Networks – Causal Inference

Computational Logic • Decision Models DATA • Business Rules – Policy & Regulations • Expected vs Actual Performance • Model & Logic Monitoring

Optimization Techniques • Linear / Non-Linear Programming • Mixed Integer and Constraint Programming • Scenario Analysis – Simulation, Stress Testing

Business

Execution Strategy

Technical

mp-opt LP/MIP Solver

Xpress Xpress Mosel Programming and Modelling IVE of optimization models

Develop models

Xpress Solver Optimization technologies

© 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 5 Xpress Xpress Insight Xpress Technology Mosel Visualize, collaborate and • Xpress Insight – Rapidly deploy analytic & decide using Solutions optimization models as powerful applications Xpress Xpress Mosel • Xpress Mosel – Integrated modelling and Workbench Modelling of optimization programming language and analytic models • Develop models, Xpress Solver - Provides optimization services and algorithms and technologies to solve solutions linear, mixed integer, non-linear and Xpress Solver constraint programming problems Optimization technologies • Xpress Workbench – IDE for developing optimization models, services, and solutions

• Single point of truth for • Standardized KPI data evaluation & reporting • Data & model profiling • Tailored tables, charts, • Decision impact maps and dashboards analysis

• What-if analysis • Basic-to-advanced • Side-by-side comparison simulation of baseline & challenger decisions • Built-in scenario management • Easily apply stress factors & change assumptions • Workflow support by user-defined authorities • Sensitivity analysis

• Access broadest range of • Built-in & LDAP user industry-leading solvers management • Utilize mathematical • Easily publish & manage modelling language Mosel different solutions or Python or … • Governance

Modelling Xpress Insight

App deployment Enterprise ready advanced analytic UI design – View Designer applications

One Collaborative Platform One Click Publishing

© 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 8 Xpress Xpress Insight Xpress Technology Mosel Visualize, collaborate and • Xpress Insight – Rapidly deploy analytic & Python decide using Solutions optimization models as powerful applications Xpress Xpress Mosel • Xpress Mosel – Integrated modelling and Workbench Modelling of optimization programming language and analytic models • Develop models, Xpress Solver - Provides optimization services and algorithms and technologies to solve solutions linear, mixed integer, non-linear and View Xpress Solver constraint programming problems Designer Optimization technologies • Xpress Workbench – IDE for developing optimization models, services, and solutions

Decision Management Suite Management Decision Platform

© 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 9 © 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 10 Solutions

Xpress Xpress Insight Mosel Visualize, collaborate and Python decide using Solutions

Xpress • Python Workbench Xpress Mosel / Python • Python for Insight development Python as equal alternative to Mosel • APIs to all solvers Develop models, services and • Integration of Mosel and Python solutions View Xpress Solver Designer Optimization technologies Blog https://community.fico.com/s/blog-post/a5Q2E000000PwwQUAS/fico2256

Decision Management Suite Management Decision On demand webinar for Insight development with Python https://www.fico.com/en/latest-thinking/demand-webinar/easy-deployment- python-models-web-applications-xpress-insight Platform

© 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 11 © 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 12 Solving Modeling Business User Enablement

1983: LP solver running on PCs 1983: General purpose algebraic 1992: Parallel MIP (1997 on distributed modeling language (mp-model) PC/Linux networks) 2001: Algebraic modeling language 1995-96: Commercial branch and combining modeling, solving, and cut algorithm programming (Mosel) 1998: Bound switching in dual simplex 2005: Profiler and debugger for a 2003: Lift-and-project cuts modeling language 2009: Parallel MIP heuristics 2005: User-controlled parallelism at the model level 2010: LP/MIP solver crosses 64-bit coefficient indexing threshold 2010: Algebraic modeling language supporting distributed computing 2013: Automatic solver selection for NLP 2012: Remote invocation without local 2012: Xpress Insight first released 2014: Parallel simplex installation 2013: Xpress Insight + Tableau® 2016: Task-based parallel MIP 2014: Parallel profiler and debugger; robust 2015: VDL for fast configuration 2017: Barrier warm start and parallel optimization 2016: Xpress-Workbench first crossover, parallel black box 2015-16: Analytic integration, security, speed optimization released 2017: Free and open Mosel 2020: Learning to Scale 2017: Web-based optimization model 2018: Full integration with ML through R and solution development and Python 2019: Drag & Drop UI development Cloud based since 2015 2019: Rearchitected Mosel 5 2020: Python for app development

© 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient https://community.fico.com/s/optimization-blog only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 13 © 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 14 Example non-linear problems solved with Xpress • Pricing Optimization • Portfolio Optimization • Risk Management • Blending • Chemical processing • … Technology • Combination of first order (successive linear programming) and second order (interior point) nonlinear solvers • Easy to use modeling modules • Fast and accurate derivatives engines • User functions / Black box optimization

nonlinear, smooth, convex Take up rate up Take

Interest rate

Linearization looses accuracy Take up rate up Take

Interest rate

ML models + FICO Solvers = Quicker automated process,

more accurate solution Take up rate up Take

Interest rate

External funds External funds

Statistical models predict flow of funds based on product

© 2019 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 20 © 2019 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 21 © 2019 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 22 Ever wonder how Shell makes real-time intelligent decisions for 600 global plants?

• Improved control algorithms to tackle tough problems

• Enhanced response to external disturbances

• Consistently meet service-level agreements within desired timeframe

• Identify limiting factors/spare capacity

• Optimize use of raw materials

• Disruptors: Advanced Analytics, cross- functional collaboration, real-time plant decisioning

Solving more complex problems, in real-time, with greater control and reliability

Leading European Objective Results Energy Company Most accurate • Used in the Trading Room running constantly on network model and price hundreds of cores for day ahead trading. forecasting for • Collaborative analyst application used across • Day ahead power several locations for long term contracting. trading • Considerations for decades ahead • Long term gas contracting • Scenario evaluation for risk mitigation and understanding price sensitivities

Auto Lender Objective Results • Evolve past manual • System can generate up to 10 financing to drive diverse, preapproved and profitable “Alternative deal deal structures in real-time using structures are helping better results convert missed optimization opportunities into deals • Maximize profit • Alternative deal structures are that maximize helping reduce annual losses by up profitability. Revenues • Reduce decline rates are also increasing, to $12 million based on improved • Increase consistency • Faster loan negotiations, lower loan-to-value rates, across dealerships multiple payment labor costs, up to $3 million lengths and specific savings per year terms.” • Enhanced transparency drives Ken Kertz, Auto Segment reduced risk of audits and Leader, FICO penalties • Increased loan approval rates drive better deal and customer satisfaction

• Avoided 6,000 repossessions

• Prevented 150 skips

• 10,000 customers did not roll to 60+ days late

• 50,000 customers maintained their good credit standing

• Disruptors: Advanced Analytics, defining the journey before the data, collections as customer service, rich mix of predictive analytics, cross- departmental collaboration

Toyota achieved a 9% portfolio growth with no increase in collection costs

Any Profiling require explanations available to users

... such processing should be subject to suitable safeguards, ... and the right ... to obtain an explanation of the decision reached ...

Profiling is “any form of automated processing of personal data … to analyse or predict … that natural person’s performance at work, economic situations, health, personal preferences, interests, reliability, behaviour, location or movement” © 2019 Fair Isaac Corporation. Confidential. 27 The “why” matters.

Optimization Machine Learning Artificial Intelligence

Interpretable Explainable https://community.fico.com/s/explainable-machine-learning-challenge

Challenge Solution Results • Improve customer • FICO® Xpress • Decreased costs by experience, enhance Optimization, FICO® $19MM/yr optimizing fuel employee engagement Xpress Insight, FICO® tankering strategies and streamline Blaze Advisor • Reduced fuel costs by $20 operations to maximize MM/yr by optimizing fuel revenue as the company contracts process grows and expands into • Increased on-time flight new markets. performance by 10-15% for weather-related disruptions • Increased overall on-time flight performance by 2% • Decreased salary expenses by $10 MM/yr by reducing unearned/overtime pay for pilots and flight attendants • Increased the number of consistent lines for pilots by 15%, which increases crew satisfaction

Challenge Solution Results • Improve demand • FICO® Forecaster, built • Significantly reduced forecasting and on the FICO® Xpress forecast creation time resource allocation Insight platform • Automated incorporation of process new units and services into the platform • Increased the granularity of A complex diagnostic medical practice the forecast from month/service to day/exam • Reduced mean absolute percentage error by 10% overall • Reduced costs through more efficient resource allocation • Increased the accuracy of the forecast by 10%

© 2019 Fair Isaac Corporation. Confidential. 30 © 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and© cannot 2019 be Fair reproduced Isaac Corporation. or shared without Confidential. Fair Isaac Corporation’s 31 express consent. 31 FICO Xpress

• Community License is available to every • Download at user. http://subscribe.fico.com/xpress- optimization-community-license • Usage is restricted to personal use in commercial and non-commercial environments. • Support via the Xpress community at • It includes solvers for all problem types, https://community.fico.com/community/f the Workbench IDE, Mosel and Insight. ico-optimization-community • Certain size and feature restrictions apply, • Or the weekly Xpress Hour for example #rows+#constrains <=5000 https://community.fico.com/s/events#a9 • See the license overview for details U80000000CeTbEAK •

• Special program for degree awarding • Browse to the Academic Partner Program academic institutions and CO@Work registration page participants • Academics and their students may use Xpress for educational purposes • Two levels of membership: • Standard: Free 1-year membership • Please fill in CO@Work for “Course” and • Premium: Additional benefits for a submit your details small charge of $800 per 2-year membership period. • Register at http://www.fico.com/app

© 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 33 • 18 Xpress-Mosel 101 Tutorial Videos available on Youtube • Mosel basics • Workbench basics • Insight Connection • Advanced Topics • 11 Xpress-Insight 101 Tutorial Videos available on Youtube • Insight Basics • VDL views • Tableau Connection • Advanced Views

• Start here: https://www.youtube.com/watch?v=iGMhjLi09uw

© 2020 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 34 © 2019 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. 35