SPRING/SUMMER 2011

POINTTO THE BOARDROOM BUZZ: Commodity Volatility

Dodd-Frank How to prepare now Growth in Europe Gartner Names Triple Point Leader Key Customers Answer What keeps them up at night? The Dodd-Frank Wall Street Reform

“ The landmark Dodd-Frank Wall Street Reform and Consumer Protection Act will fundamentally change the fi nancial regulatory framework in the United States. As transparency remains a key regulatory theme, real-time access to data across multiple risk centers will be vital.” — Mike Zadoroznyj, VP, Treasury and Regulatory Compliance, Triple Point

DODD-FRANK CHANGES THE DERIVATIVES LANDSCAPE Weighing in at more than 800 pages and signed into law in July of 2010, the Dodd-Frank Act (DFA) has been described as the most sweeping set of banking reforms since the Great Depression. Unquestionably it will change the landscape of derivatives trading in signifi cant ways.

Peter F. Armstrong Dodd-Frank requires swap counterparties to report transaction data to SDRs (Swap Data Repositories) or, Founder and CEO if no SDR will accept the information, to the CFTC oorr Triple Point Technology SEC as appropriate for the type of swap. Even if an organization is armed with an end-user exemption, Rapidly rising and volatile commodity it may still be required to report this activity prices can harm profi tability, depending on the classifi cation of its counterparty. shareholder value, and credibility Continued on pagee 1166 with analysts. These challenges — historically a Purchasing Department purview — are now getting the attention of CEOs and CFOs. • PepsiCo, Kraft Foods, and Campbell There are other options than raising The traditional methods of handling Soup Company have already lowered prices and cutting costs; it’s time rising raw material and energy earnings guidance for 2011 due to for manufacturing companies to costs, such as substituting cheaper rising costs. utilize new commodity management materials in products and raising strategies. prices, might prove necessary but • During a recent call with investors, I founded Triple Point 18 years ago, do not take advantage of commodity Procter & Gamble CFO, Jon Moeller, and I’ve seen commodity trends management best practices to said the impact of commodity costs come and go. Today if I could offer optimize margins. For organizations on his business was double what the one piece of advice to manufacturing to be successful, the approach company expected at the beginning organizations it’s to adopt the used by the Purchasing Department of the year. sophisticated commodity management From the Desk of the CEO From must be revamped from static • CEO Wesley R. Card of Jones systems that energy and commodity “buy to budget” to a more proactive Group, the company behind Anne trading organizations are using — “market-based” procurement and Klein, Nine West, and other brands, and do it fast. High commodity prices risk management program. is under tremendous market and volatility are not a wait-and-see- pressure as cotton prices have Executives across industries, including problem. It’s the new reality. Early increased over 90%. food and beverage, consumer adopters of Triple Point’s fl agship products, industrial manufacturing, The right strategy and systems to commodity management platform are and transportation, are critically aware mitigate commodity and energy already gaining competitive advantage; that market share could be lost to exposure can have a huge impact don’t get left behind. competitors with a better strategy on the bottom line. A recent study Please enjoy this issue of To the Point. for mitigating the risk of high and by Accenture found that companies volatile commodity prices. Earnings applying risk management practices forecasts are under tremendous to raw material and commodity pressure due to commodity cost purchasing saved up to 3% of total increases over the last year — corn costs — which can translate to an 106%, coffee 126%, silver 137%, increase of 60-85% in profi ts. and cotton 92% to name just a few. 2 Leading Global Organizations Commodity Management for Automotive Choose Triple Point Manufacturers and Suppliers

Triple Point continues to experience dynamic growth fueled by new market Manage volatility, reduce risk, preserve margins, penetration, product innovation, and and ensure compliance customer satisfaction. The company gained 41 new-name global customers in 2010, spanning commodities, Discover how Triple Point’s Commodity XL™, the leading product areas, and industries. Select commodity and enterprise risk management platform, is customers include: helping Industrial Manufacturers to preserve margins by approaching commodity procurement differently — and more proactively — than ever before. Alta Mesa Holdings licensed Triple Point’s fair value Read the full solution brief at tpt.com/2011/auto.asp disclosure solution to perform independent, credit-adjusted mark-to-market and fair value Unprecedented Margin Pressures Due to Rising level assignment for its energy Commodity Prices & Volatility derivative transactions. The focus for supply chain groups over the last 15+ years has been on effi ciency and speed. Manufacturing and supply chain techniques were Beluga Shipping GmbH, introduced to eliminate waste, reduce inventory, and improve quality. the world leader in heavy-lift On one hand this has reduced costs and opened new markets but on the shipping, licensed Triple Point’s other hand it has signifi cantly limited the ability of businesses to handle chartering and vessel operations unforeseen shocks to the system such as sharp raw material volatility. solution to manage pre- and post- fi xture activities for its heavy-lift transport operations. Increasing commodity price volatility

400 Steel Mill Products Freepoint Commodities, 350 Metals and Metal Products Pulp, paper, and Allied Products a newly founded energy 300 merchant with over $300 million Chemicals and Allied products Crude Petroleum (Domestic Production) in equity capital, licensed Triple 250 Industrial Electric Power Point’s commodity management 200 platform to support trading 150 and marketing of natural gas and power in North America. 100 Solution areas include: multiple 50 commodities, vessel operations, credit risk management, treasury 0 1970 1980 1990 2000 2009

and compliance, and market Source: US Bureau of Labor Statistics, Price Producer Index of selected commodities—January 1970 through February 2009; Accenture analysis connectivity.

Continued on page 5 Continued on page 6

2 From the Desk of the CEO 8 Record Growth for Credit and 14 Growth in Europe Treasury Solutions 2 Dodd-Frank Wall Street Reform 15 Sam Vann: How’d You 9 On the Road with Wah Chu Get Here? 3 Commodity Management for Automotive Manufacturers 10 Q&A with Industry Leaders 18 Triple Point Gives Back

3 Leading Global Organizations 12 Top Risk Management 20 About Triple Point Choose Triple Point Webinar Series

4 Gartner Names 13 Triple Point Wins Commodity

INSIDE THIS ISSUE THIS INSIDE Triple Point Leader Management Awards 3 4 INDUSTRY LEADER

ABILITY TO EXECUTE Triple and Point deep functionality noted growth forstrong to Leaders Quadrant for 3rdYear NamesGartner Triple Point clients in 11,000 distinct organizations. to 60,000 partner indispensable the is company advisory and research technology information world-leading day. The every decisions right to the make clients its for insight technology-related delivers Gartner Inc. Gartner, About SoftSmiths NICHE PLAYERS CHALLENGERS GARTNER MAGIC QUADRANT Ventyx Aspect Pioneer COMPLETENESS OF VISION COMPLETENESS “ OATI — Peter F. Armstrong, Founder and CEO, Triple Point CEO, and Founder F.— Peter Armstrong, Amphora platform as astrategic necessity rather than aluxury.” industries now view Triple Point’s commodity management counterparty credit risk, and complex logistics, abreadth of stringent regulatory compliance requirements, increased In today’s business landscape of extreme price volatility, Solarc Murex Source: Gartner(March 2011) Viz SAS SunGard Navita Allegro VISIONARIES LEADERS OpenLink TECHNOLOGY TRIPLE POINT • • Triple for including: several strengths Point wasrecognized Triple Point Strengths “Ability toaxes: Execute” ofVision.” “Completeness and two on providers platform ETRM leading the world’s 15 evaluated of Gartner To Quadrant, theMagic derive “ • • • • legislative reporting requirements.” reporting legislative to tighteningresponding regulatory and infl be to continues The market ETRM platform — Gartner ETRM Magic Quadrant, 2011 Quadrant, Magic ETRM — Gartner regulatory risk regulatory and for credit solutions comprehensive Most management risk and trading of energy/commodity inallaspects coverage offunctional range Extensive management with SAP for commodity solution endorsed-business Unique support market and coverage Global “lite” aquick-start and solution ASP including options ofdeployment range Broad markets 3years for inenergy thelast growth Strong uenced by a number of factors including including offactors anumber by uenced Leading Global Organizations Choose Triple Point Continued from page 3

Gavilon Group, formerly ConAgra Iberdrola Renewables expanded Trade Group, extended its relationship its relationship with Triple Point and with Triple Point across Credit Risk and licensed an additional solution for fair Analytics. Gavilon trades with thousands value disclosure to manage compliance of counterparties in grains, oils and fats, with international IFRS 7 disclosure dairy products and ingredients, petroleum, and reporting. natural gas and NGLs, renewable fuels, and fertilizers. Klesch & Company expanded its relationship with Triple Point across General Mills expanded its relationship European power, European gas, oil, with Triple Point and licensed additional and metals. solutions for oil, refi ned products, and natural gas. Early in 2010 General Mills licensed Triple Point’s SAP-endorsed KVB, India’s leading private sector commodity management solution to bank, licensed Triple Point’s commodity optimize commodity management across management solution for precious metals agricultural raw materials and protect to control commodity price volatility in its supply chain margins. newly established bullion business.

Hamburg Bulk Carriers licensed Louis Dreyfus Highbridge Energy LLC Triple Point’s chartering and vessel (LDH Energy) expanded its relationship operations solution to manage pre- and with Triple Point and licensed an additional post-fi xture activities for its dry bulk solution for ICE confi rmation management shipping operations. in support of its U.S. trading business. Early in 2010 LDH Energy licensed Triple Point’s commodity management platform HPCL-Mittal Energy licensed Triple to manage commodity trading and risk. Point’s commodity management platform to manage crude supply and product ® marketing, logistics, and compliance with Magellan Midstream Partners IAS 39 (IFRS 9) disclosure and reporting. licensed Triple Point’s commodity management platform for oil and refi ned products, as well as treasury solutions Hunt Oil Company licensed Triple Point’s for hedge accounting ASC 815 (FAS hedge accounting and fair value disclosure 133), ASC 815-10 (FAS 161), and fair software to manage compliance with ASC value disclosure ASC 820 (FAS 157). 815 (FAS 133) and ASC 815-10 (FAS 161) disclosure and reporting, perform credit- Continued on page 7 adjusted mark-to-market, and provide fair value level assignment ASC 820 (FAS 157) for interest rate hedging.

5 Commodity Management for Automotive

Manufacturers and Suppliers Continued from page 3

The New Normal — Solution: Profi tably Manage Triple Point’s Automotive Volatility, Volatility, Volatility Commodity Procurement Industry Solution Global supply chains are now faced with To preserve margins, Industrial Commodity XL provides Industrial unprecedented commodity volatility. Manufacturers must move quickly to Manufacturers with the trading, hedging, Old strategies such as building inventory approach commodity procurement and risk management tools and practices when prices are low for use when differently — and more proactively — employed by today’s leading commodity prices rise are dated and not realistic. than ever before. While not traditionally and energy trading houses. The solution Profi t margins — and the executives viewed as commodity trading organiza- balances between profi table purchasing, charged with preserving them — are tions, automotive companies can now coverage requirements, supply chain coming under fi re like never before. In learn from leading commodity houses movements, risk management policies, the past, commodity price increases and adopt new risk management and accounting regulations in today’s were typically associated with supply- processes, tools and measurements volatile and complex environment. side crises and were relatively localized required to optimize raw material acqui- Commodity XL enables automotive and temporary. But today, commodity sition — all while ensuring compliance leaders to actively manage the buying, price increases and volatility are linked with the regulatory demands and hedge coverage, position reporting, hedging, to several longer term demand-side accounting requirements of SOX, ASC risk management, and regulatory trends such as the rapid growth of 815 (FAS 133), ASC 815-10 (FAS 161), compliance for commodity procurement. non-OECD countries that have a ASC 820 (FAS 157), IAS 39 (IFRS 9), seemingly insatiable requirement for all IFRS 7, and others. raw materials. Analysts generally agree this demand-side growth is here to stay for the foreseeable future. With a tight supply/demand equation, the slightest alteration in either demand or supply brings wild swings in commodity prices — welcome to the new normal.

“Automotive manufacturers’ end products often contain tens or hundreds of base commodities in various and often unknown quantities… Having the information and tools to expose the risks and the talent to manage the complex web of risks offers a distinctive competitive advantage.”

— Taking Control in the New Era of Price Volatility, Accenture

6 Leading Global Organizations STEEL Choose Triple Point (frame) Continued from page 5

ALUMINUM % (engine castings) 29 MED BROKERS Med Brokers licensed Triple Point’s chartering and vessel % operations solution to manage 8 pre- and post-fi xture activities for its dry bulk shipping operations.

NFR Energy licensed Triple Point’s hedge accounting and fair value disclosure platform to manage compliance with ASC 815 (FAS 133) and ASC 815-10 (FAS 161) disclosure and reporting, and provide fair value level assignment ASC 820 (FAS 157) for natural gas and crude hedging. RUBBER (tires) PLASTIC Ocean Tankers licensed (fuel tank) % Triple Point’s chartering and 73 vessel operations solution to % manage pre- and post-fi xture 7 activities for its wet bulk Source: The Times shipping operations. A motorcycle is constructed 60% (by weight) from aluminum, 20% from steel and the remainder from a combination of plastics, rubber and other materials. Pacifi c Carriers Limited, the global shipping and logistics subsidiary of Kuok CASE STUDY: NORTON MOTORCYCLES (Singapore) Limited, licensed The Times featured a case study by Peter Stiff Triple Point’s chartering and on Norton Motorcycles. Without question, rising vessel operations and freight commodity costs are most on the minds of risk management platform to manufacturers. The case study notes that for the manage supply chain cost and last 18 months Norton has bought components enterprise risk for dry bulk commodities. from different suppliers because of input cost increases. Just in the last year the cost of rubber has increased by 73%. In some cases, the company Petra Foods, a manufacturer is also paying more to process such materials and marketer of cocoa into individual parts. ingredients and consumer chocolate confectionery Read the full article at tpt.com/2011/norton.asp products, licensed Triple Point’s commodity management platform to optimize the “ The worry for Norton, as for other agricultural supply chain, as manufacturers, is that these increases well as treasury solutions for IAS 39 (IFRS 9), Interest Rates, ultimately have to be passed on to and Foreign Exchange. customers and that with every cost increase to the customer, the company’s Continued on page 17 potential market decreases.” 7 Record Growth for Credit Risk Management and Treasury Compliance Solutions RISK MANAGEMENT SOLUTIONS MANAGEMENT RISK

CREDIT RISK MANAGEMENT IMPLICATIONS OF DODD-FRANK Triple Point’s Commodity XL™ solution ON CREDIT RISK suite for credit risk management New rules on central clearing, chalked up a record number of new position limits, and margining have customers, expanded licenses, the potential to signifi cantly increase and customer go-lives in the last the cost of hedging and reduce the twelve months and shows continued availability of credit. momentum across solutions and Is your organization prepared for geographies. the New Rules of Credit Risk Management? New Customers Gavilon, World Fuel Services, Internal Scoring CIMA Energy, Suncor, Regency TREASURY AND REGULATORY Refrain from relying solely on credit Gas, Xcel Energy, LDH Energy, COMPLIANCE rating agencies. Internal models can Freepoint Commodities, be more accurate. Triple Point’s global customers PETRONAS Energy Trading have accounting requirements that Monitoring span various risk desks within their Expanded Licenses Monitor cash fl ow risk and exposure. organizations. From commodities Williams, ERCOT, Energy Transfer, Increasing capital requirements to treasury, Triple Point is committed NYISO makes it more important than ever to to providing a single hedge accounting mitigate risk and seize opportunity. solution to meet those challenges. Upgrades Triple Point’s fl agship Commodity XL™ BG Group, Energy Transfer, Dynegy, Margining solution suite for treasury management FirstEnergy Practice robust collateral gained 11 new customers across management. With the proliferation energy, manufacturing, consumer Go-Lives of margining — active and accurate products, and food and beverage; 7 EGL Trading AG, PPL, Cargill, cash management is critical. expanded licenses; and 8 customer Glencore, Electrabel, Alpiq, Gavilon, go-lives. Bruce Power, The Energy Authority, Reporting World Fuel Services, Suncor, Build fl exible reporting infrastructure New Customers CIMA Energy that prepares for today’s uncertain World Fuel Services, Hunt Oil, fi scal and regulatory environment. Evonik, NFR Energy, Alta Mesa, Magellan Midstream, Unilever, Xcel “ The technology market to manage Analytics Energy, Petra Foods, Freepoint credit risk; operational risk; and Perform liquidity analysis with Commodities, Peabody governance, risk, and compliance analytics. Organizations that (GRC) will grow to $4.3 billion understand the impact of capital and Add-on Treasury Modules by 2013.” margin requirements on their liquidity Iberdrola Renewables, Scottish Power, Food and Beverage company, — Chartis Research, RiskTech100™ gain competitive advantage. Newfi eld Exploration Company, Southwestern Energy, Atmos Energy, Puget Sound Energy

Go-Lives Evonik, Hunt Oil, NFR Energy, Food and Beverage company, Southwestern Energy, Newfi eld Exploration Company, Alta Mesa, Puget Sound Energy 8 On the Road with Wah Chu

Triple Point’s Chief Customer Offi cer on Tour

Since joining Triple Point as Chief Customer Offi cer (CCO) just over a year ago, I’ve put in many hours and miles meeting with customers to fi nd out what’s on their minds.

To date I have met with 46 clients in 8 countries, spanning 3 continents. On the downside, I’ve consumed 138 cups of airplane coffee and recovered my luggage 4 times.

I’m grateful for the warm reception I’ve received from customers around the world. Our candid exchange has already yielded several initiatives in Triple Point and valuable input toward product direction.

CUSTOMER ENGAGEMENT:

• Triple Point has created a formal Client Satisfaction Survey to further enhance communication and open dialog. Triple Point’s Executive Team will analyze the feedback to ensure its products and services are providing the most customer value.

• Triple Point launched a Customer Driven Development Portal for solutions including Credit Risk Management, Chartering and Vessel Operations, and Treasury and Compliance.

• Triple Point will present several product webinars to discuss plans for future enhancements.

Wah Chu Chief Customer Offi cer “My goal is to meet with as many clients as possible Triple Point to receive feedback on how our solutions can provide more value, gain a better understanding of evolving business requirements, and to share Triple Point strategy and key developments.”

— Waha ChuC ,,C ChieffC Custs omer Offi cercer, Tripiple Poio nt

9 Triple Point sat down with New Zealand Mint and The Energy Authority to discuss how successfully managing commodity price volatility, accessing actionable information for strategic decision-making, and ensuring an environment of holistic risk management are all key contributors to operating a profi table organization.

New Zealand Mint’s Michael O’Kane

Q&A WITH INDUSTRY LEADERS INDUSTRY WITH Q&A We’re still years away from gold supply increasing to meet demand levels

Q How does precious metals volatility today compare to the last few years? Michael O’Kane During the fi nancial crisis in 2008 we saw the price for gold jump by over $50 in an hour, which is generally unheard of. A comparison to this would be during the oil crisis in 1980 when the price of gold increased by several hundred dollars over a period of several days. Currently we’re seeing “Having Triple Point’s system, movements of up to $30 per day as the almost out of the box, cover all market reacts to different events and of our business requirements announcements. and do it elegantly is very diffi cult to argue against.” Q Gold and silver have hit record highs. What are the drivers and will they continue? Michael O’Kane, Head Bullion Trader, New Zealand Mint MO You’ve got historical drivers of supply and demand and reaction to Another factor is mitigating exposure Q What were the major business infl ation, as historically, gold is anti- to supply shortage. During the 2008 drivers in moving to the Triple Point infl ationary. This is only part of what’s fi nancial crisis, most major suppliers solution? in the world — from the US Mint all driving the price of gold and silver today MO Prior to Triple Point, we had fi ve the way to New Zealand Mint and — everything that’s been put in place for different products to handle our lines of other secondary suppliers — ran out quantitative easing is, in the long-term, business and security. At the end of the of physical stock. infl ationary. Another driver is supply. day, that becomes very cumbersome. Gold demand has recently increased by Having Triple Point’s system, almost thousands of tons a year. Retail demand out of the box, cover all of our business in China alone has increased by 70% requirements and do it elegantly is very from 2009 to 2010. With an average diffi cult to argue against. of 10 years for a gold mine to come on line, we’re still years away from supply Q What are some of the tangible increasing to meet that demand. All of benefi ts New Zealand Mint has these factors lead to a huge boom in the gained with the Triple Point solution? precious metals industry. MO Before Triple Point, it took an hour or two to get a hard fi gure on Q What issues keep you up at night? Q Do you view Triple Point as a our exposure because we were using MO Security — from electronic to strategic partner? several systems to map it. Now we physical. We’re dealing with hundreds don’t need three people calculating MO Defi nitely. Triple Point provides us of millions of dollars of products per what our cash or metal position with the ability to manage security and day. Triple Point’s precious metals is. It takes one person about two grow our offerings — including Minting, solution enables New Zealand Mint to seconds. Triple Point also provides the manufacturing, and day-to-day trading maintain our electronic security in trading functionality to handle un-allocated with both suppliers and clients — on positions: what we hold in inventory, trading locally. In effect, Triple Point is one system. Triple Point is helping us where it is, and who’s doing what with helping to expand our product offering increase our global presence. it; and physical security: where and what so we can conduct business in all 10 volumes of coins and ingots we have. corners of the planet. The Energy Authority’s Thomas Harvey

Technology is an underpinning of TEA’s ability to operate effectively in the energy marketplace

Q What are some of the major trends Q In addition to your current driving your industry and how do you business, how do you see Triple Point see it changing in the next few years? supporting TEA’s future expansion? Thomas Harvey The Dodd-Frank Act TH TEA represents 46 Public Power and what’s happening with the CFTC utilities throughout the United is the hot topic. We’re looking at our States, and we wear multiple hats to business policies and technical systems support our partners. Triple Point truly across several areas — transaction and understands the complexities of our position reporting, audit-ability, credit business, and this provides great peace- management, and documentation — to of-mind. With Triple Point, we have the ensure we’re ready to meet additional infrastructure in place to support our reporting requirements. business strategically, now and in the future. If you really look at what TEA From an IT perspective, we see offers, a cornerstone of our business is technology becoming less about risk management. The value that Triple automating routine tasks and processing Point provides in our risk management data; it’s more about mining data for Thomas E. Harvey practice will continue to be a contributor information we can act on. Some of VP, Information Technology & CIO to our success. what’s driving this is the world in which The Energy Authority® we live and our reliance on immediate informa- Q What have been tion exchange. Technology “It’s really the whole package, Triple Point’s the biggest benefi ts enables us to capture and software and people, which brings benefi t.” of implementing the access huge amounts of Triple Point solution? data, and the ubiquitous TH I’d be remiss in not presence of it in our lives mentioning the exceptional means our workforce is Triple Point staff we work increasingly more techni- with. Our success with cally savvy and astute at the implementation of analyzing the information Triple Point’s commodity available to them. Service providers that advantages to our traders, power management and credit risk platform quickly provide actionable information managers, schedulers, and analysts. is built upon the dedication of some to move businesses forward will be very smart, hardworking individuals. market leaders. Q What were the major business Triple Point provides an outstanding drivers in moving to Triple Point’s implementation team and superior Q What are some of the business Enterprise Solution? customer support. They’ve been issues that keep you up at night? invaluable in educating our team on the TH Having trading, scheduling, and inner workings of the Commodity XL™ TH Technology is an underpinning of risk management functionality on a product and have been fully engaged TEA®’s ability to operate effectively common platform was key. Triple Point in helping craft solutions for our unique in the energy marketplace… so we’re enables us to manage both transaction requests. It’s really the whole package, always questioning where we should be and decision-making information in Triple Point’s software and people, investing our efforts and resources in one solution: physical and fi nancial which brings benefi t. terms of improving business processes. transactions for power, gas, and oil; We are cognizant of how we can provide scheduling; and credit risk management. reliable, cost-effective competitive

11 WEBINARS Triple Point Presents: Best Risk Management Series

Focus on Dodd-Frank Wall Street and Consumer Protection Act

Dan Reid IMPLICATIONS OF FINANCIAL REFORM ON CREDIT RISK Vice President Tips to Prepare for the Dodd-Frank Act Credit Risk Division Triple Point The Dodd-Frank Act is having a dramatic impact on energy and commodity credit risk. New rules on central clearing, position limits, and margining have the potential to signifi cantly increase the cost of hedging and reduce the availability of credit. Dan Reid, Triple Point’s VP of Credit Risk, explained how the new fi nancial reform law will impact credit risk and what organizations must do now to meet growing regulatory demands. Attendees: • Learned highlights of the Dodd-Frank Act and implementation timeline • Discovered the impact of regulatory changes on credit risk management • Heard what an increase in central clearing means for derivatives trading • Gained strategies to meet growing margining and liquidity requirements • Learned how to reduce reliance on credit rating agencies • Viewed tools to dramatically improve accuracy and speed of cash fl ow reporting

Mike Zadoroznyj PREPARE FOR FINANCIAL REFORM NOW Vice President Strategies and Systems for the Commodities Markets Treasury and Regulatory Compliance The new Dodd-Frank fi nancial reform law is not isolated to banks and will dramatically Triple Point alter the landscape of energy and commodity trading and hedging. Mike Zadoroznyj, Triple Point’s VP of Treasury and Regulatory Compliance, summarized what proactive steps organizations must take to ensure they have the IT and reporting infrastructure in place to handle new rules on position limits, central clearing, margining, and more. Attendees: • Gained fi rst-hand knowledge on how the law will impact the future of commodity trading • Heard key steps to prepare for regulatory changes • Learned highlights of the Dodd-Frank Act and implementation timeline • Discovered how to evaluate if their IT systems would fail to meet new rulemakings • Viewed must-have solutions that provide real-time position reporting and active capital management Be sure to read Mike’s Dodd-Frank article beginning on page 2.

MISSED THE LIVE WEBINARS? To listen to all of Triple Point’s complimentary webinars — please visit tpt.com/2011/webinars.asp

12 Triple Point Places First in Commodity Management Awards

Noted for product innovation and leadership

Triple Point was honored in two categories in the Commodity Business Awards (CBAs); Excellence in Commodity Logistics and Commodity Trading and Risk Management (CTRM). The awards illustrate the depth and breadth of Triple Point’s multi-commodity software platform.

“ Over the last decade, commodities have moved from a niche to a mainstream investment opportunity.”

— Guy Isherwood, Awards Patron and Publisher/ Editor, Commodities Now magazine

Triple Point Leads Global Commodity Markets L to R: Gyles Brandreth, celebrated British author and Master of Ceremonies, Triple Point provides global markets Roger Walton, VP of Sales – EMEA, Triple Point, and Ewan Lacey, Awards Director with the leading logistics platform, including solutions for commercial vessel operations, power and gas “Physical delivery creates a whole Triple Point’s advanced solutions for scheduling, and physical operations to new set of implications and scheduling, logistics, and commercial control the movement and storage of challenges, especially given the vessel operations profi tably manage bulk commodities. Triple Point’s record fact that physical supply chain the unique operational requirements new-name customers and expanded management brings with it of power, natural gas, liquids, bulk, licenses across its logistics platform complex organizational problems and packaged commodities. These underscored the company’s unmatched — something recognized but not solutions supply real-time information to ability to provide access to real-time always fully understood.” traders, schedulers, risk managers, and views of each stage of the physical — Baringa Partners, Commodities Now magazine administrators to successfully manage commodities process — from demand commodity volatility and ultimately analysis to delivery. ensure a profi table supply chain.

13 GROWTH IN EUROPE IN GROWTH Triple Point Gains Market Share in Europe

Leads European Energy and Commodity Markets

Triple Point saw strong growth in “Energy and commodity markets have never been more complex and EMEA throughout 2010 and continues volatile. Add the regional and regulatory requirements native to Europe, momentum in 2011. New customers and the need for sophisticated commodity management just goes up. include: Gunvor International (energy Triple Point is well positioned in local expertise and product breadth to trading); Vattenfall (power generation); United Arab Chemical Carriers provide its customers with the cutting-edge and innovative solutions (transportation); Viterra (agricultural required to succeed in fast-moving European markets.” supply chain); Unilever (consumer — Roger Walton, VP of Sales – EMEA, Triple Point products); Saras (refi ning); Evonik (chemicals and energy); and PETRONAS Energy Trading (energy trading). TRIPLE POINT PROVIDES The European Power and Gas solution suite leverages Commodity XL’s base Triple Point installed solutions for 19 LEADING SOLUTIONS FOR functionality for front, middle, and back- customers across all product lines, EUROPEAN ENERGY MARKETS offi ce, while augmenting it with localized in countries including Germany, European Power and European Gas functionality for the UK and Continental Switzerland, Greece, South Africa, Triple Point launched solutions for European power and gas markets. Monaco, and Cyprus to name just a few. European power and European gas, The company expanded its European providing expanded and integrated Emissions presence with new R&D and support functionality across trading, pricing, Triple Point’s fl agship solution manages centers in Geneva and Vienna and position management, valuation, the full scope of emissions trading and professional staff growth of more scheduling/nomination, transmission, management across all regulatory and than 75%. confi rmation matching, and settlement compliance schemes and provides for UK and Continental European power what-if scenario analysis to optimize and gas markets. abatement strategies, fuel switching alternatives, and trading programs. Triple Point’s seamless integration between Commodity XL™ and its e-Back Offi ce for EFET and ICE module for electronic confi rmation confi rmation management management further facilitates straight- Commodity XL has extended straight- through processing and eliminates through processing to include electronic integration cost and risk, all while confi rmation matching for both EFET complying with EFET standards. eCM and ICE eConfi rm standards. Transactions within Commodity XL can be directed downstream toward either confi rmation platform.

14 BREAKING NEWS: Sam just chalked up his fi rst Sam Vann customers as a Sales Consultant by helping to sign Saras, a leading How’d you get here? refi ner headquartered in Milan, and PETRONAS Energy Trading, Triple Point Employee Interview the European trading arm of Malaysia’s national oil company. Q You spent the fi rst decade of our Commodity XL™ Platform. I’m Congratulations! your life traveling quite a bit; always focused on how our solutions Thailand, Melbourne, Honolulu, can deliver business benefi ts, and I make and Sacramento before settling in sure the prospect understands this at Connecticut. What was that like? both an intellectual and emotional level. This could take the form of technical I moved around from necessity. I was architecture, functional, and executive KPI born in a refugee camp, and my mother aspects. As the relationship progresses, was always looking for a better place to Sales Consulting conducts product bring her children. These experiences demonstrations, often diving deeply into were tough, but also character building. functionality, as well as business case I learned quickly to adapt to new environ- development, best practices workfl ow ments and forge lasting friendships — creation, and sharing customer reference skills that have served me well. success stories. Our early participation in the evaluation process helps demonstrate Q How did you come to work at why Triple Point is the best strategic Sam Vann Triple Point? partner for the prospect. Sales Consultant – EMEA, Triple Point During college I needed to make some money to keep social activities fl owing. Q What are some of the observations “ Our early participation in After one failed business for sports you’ve made working in the States the evaluation process helps products, I started building websites. versus Europe? demonstrate why Triple Point After I graduated... I was still at it! When I really noticed how engaged and active is the best strategic partner the tapping of my mother’s foot played customers in Europe are. Day and for the prospect.” on me like Poe’s The Tell-Tale Heart, night they fi nd me (sometimes at great I started working with recruiters. Triple lengths) to get their questions answered. Point’s entrepreneurial environment, VITALS I admire that kind of dedication and corporate vision, and multi-career Alma mater: enthusiasm. It makes me work a little path were a perfect fi t for me, and Lehigh University harder to make sure they’re satisfi ed. retrospectively, a great decision. Years at Triple Point: Almost 7 Q I’ve heard you’re a fan of extreme Q Anything memorable about Favorite color: sports… have any of these skills come your interview? Black. It’s the color that absorbs into play at Triple Point? all others. Plus, it never goes out One of the engineer’s gave me a of fashion. Rumor has it that I once helped close a brainteaser: How would you determine new license with a well-placed challenge Favorite candy: why a certain light bulb in your house to arm wrestle. I won’t confi rm or deny. Baby Ruth. The combination didn’t work? I said everything from of peanuts, caramel, and nougat checking the circuit breaker to the light just gets me. Q If you weren’t a Sales Consultant, bulb fi lament. Each answer met with a Last book read: shake of his head. Finally I told him I’d what would you be? First Lessons Ukulele call an electrician. A cage fi ghter. Unfortunately (or fortu- Favorite sport: nately) I’m claustrophobic, so I’ve had to Brazilian Jiu Jitsu. It’s like a physical Q What are your responsibilities make my mark fi ghting commodity risk. chess match with your body. in Sales Consulting for the EMEA I’m enjoying every moment. Favorite movie: region? The Matrix As an industry solution expert, my role Best Known for: Break dancing is to match the needs of our potential clients with the breadth and depth of 15 The Dodd-Frank Wall Street Reform Continued from page 2

Companies trading in OTC derivatives Triple Point Participates exempt from the mandatory clearing should be auditing business policies in CFTC Hearings requirement but they must be able to and technical systems to ensure they Triple Point will continue to stay at the prove that the derivatives are used to are ready to meet what will surely be forefront of market regulations and hedge or mitigate commercial risk. If a onerous reporting requirements: provide customers with fully integrated company elects the end-user exemp- solutions to manage commodity trading, tion, it must also notify the Commission risk management, and disclosure of how it intends to meet its fi nancial activities. Triple Point has participated obligations associated with entering into Reporting in the CFTC public hearings and non-cleared swaps. Both transaction and position data roundtables to ensure that our treasury need to be conveyed to Swap Data In the bilateral transaction arena, Triple solutions maintain compliance and that Repositories near real time, requiring Point’s credit risk management solution our customers’ concerns and interests a highly adaptive reporting engine. is well suited to track, analyze, and are heard. We were particularly vocal optimize collateral obligations, as well as in our opposition to any end-user Audit-ability report on capital adequacy. exemption rule that would require the With the CFTC and SEC’s increased posting of margin for each derivative The strength of Triple Point’s solutions subpoena power it will be critical transaction. An exemption that merely in reporting, hedge management, that systems maintain a detailed exempts bona fi de hedging activity from and credit risk management reduce and readily available history of the clearing requirement serves as no customers’ exposure to regulatory transaction data. exemption at all. In a recently proposed risk. As more agencies exercise their rule, the CFTC agreed that swap regulatory muscle, the importance of an Credit Management transactions used for the purpose of adaptable and auditable system cannot With credit and liquidity at the core of hedging commercial risk would in fact be be overstated. Triple Point is committed Dodd-Frank, organizations cannot rely exempt from both clearing and margining to building compliance solutions with solely on credit rating agencies for requirements. This is progress. that in mind. credit scoring. A system must provide methods of internal scoring, collateral We’re ready so you’ll be ready! Triple Point Aligns Treasury and management, and liquidity analysis to Credit Risk Solutions Mike Zadoroznyj has over 25 years of industry solidify an entity’s credit strategy. With transparency as a core DFA experience. He joined Triple Point through its principle, reporting that is effi cient and acquisition of INSSINC and was instrumental Documentation in developing the company’s accounting and confi gurable is a must. Triple Point’s Systems that provide strong compliance software. reporting capabilities are ready to documentation of trading and provide details of trade activity and hedging strategies will become position in real time. Triple Point’s hedge a necessity. It could mean the management solution provides the difference between being classifi ed necessary documentation to support an end-user or a Major Swap an end-user exemption election. Under Participant. End-users are exempt the end-user exemption, companies are of the clearing requirements if they can substantiate that their derivatives are used to hedge commercial risk.

16 Leading Global Organizations Choose Triple Point Continued from page 7

PETRONAS Energy Trading Limited, ULTRABULK licensed Triple Point’s the European trading arm of Malaysia’s chartering and vessel operations national oil company, licensed Triple solution to manage pre- and post- Point’s commodity management platform fi xture activities for its dry bulk shipping to support its European gas trading operations, including grains, minerals, operations, as well as new markets for fertilizers, and steel products. power and carbon. The company also licensed solutions for credit risk and business intelligence. Unilever expanded its relationship with Triple Point and licensed additional solutions for hedge accounting IAS 39 Regency Gas Services licensed Triple (IFRS 9), ASC 815 (FAS 133), ASC 815- Point’s counterparty credit risk and credit 10 (FAS 161) and fair value disclosure scoring solution to manage credit risk ASC 820 (FAS 157). Unilever previously processes for its growing natural gas and licensed Triple Point’s SAP-endorsed natural gas liquids (NGLs) business. commodity management solution to support the establishment of a global Commodities Buying Unit. SABMiller licensed Triple Point’s commodity management solution for logistics to optimize transportation costs and ensure the timely supply of raw Viterra, the largest grain handler materials, including barley and hops. in Canada, licensed Triple Point’s commodity management solution for logistics to manage supply chain cost Saras, a leading operator in the refi ning and enterprise risk for its dry bulk sector in Europe, licensed Triple Point’s commodities business. SAP-endorsed commodity management solution to optimize commodity management across energy commodities Williams licensed Triple Point’s credit and protect supply chain margins. risk management platform to manage customer default risk and credit scoring for its non-regulated and regulated SOCAR Trading, a subsidiary of the natural gas businesses. State Oil Company of Azerbaijan Republic (SOCAR), expanded its relationship with Triple Point and licensed an additional Xcel Energy, the fourth-largest solution for chartering and vessel combination natural gas and electric operations. SOCAR also uses Triple Point utility in the U.S., licensed Triple Point’s solutions for oil, refi ned products, and commodity management platform to business intelligence. manage power, gas, refi ned products, and emissions trading; scheduling and logistics; counterparty credit risk; and UBS, managing CHF 2.2 trillion in treasury compliance. invested assets, licensed Triple Point’s commodity management platform to manage trading activities for oil, gas, UK gas, coal, agriculture, and metals.

17 18 GIVING BACK “Close to 700 people came to either collect their gifts or to receive receive to or gifts their collect either to came people 700 to “Close more when Triple Point’s gifts arrived — they were aGodsend.” were arrived —they Triple gifts when Point’s more toys for their children. We were about to announce there were no no were there announce to about We were children. their for toys in all of our communities. Triple Point lent employees ahand. In tough economic times the number of peoplein needof foodand fi Triple Point Back Gives to Communities Area puzzles, dolls, sports equipment,puzzles, electronics, dolls, and bicycles. sports books, over games, donated Point has board including 1,000 gifts theyear. throughout and holidays the program’s During history, Triple to teens and infoster are children that distributed during care gifts new toys and collected Triple has decade, Point Westport thelast For for Children andTeens Triple Point Gifts Donates — Saint Mary and Saint Charles Parishes Charles Saint and Mary — Saint wiw sp NoN of T 5 Tri ri fi 0 ece p th

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assistance. assistance. offood inneed for people meals 779,503 to provide —enough tons oftrimmings turkeys 360 more than and 26,503 collected disadvantaged individuals. Thanksgiving for All of for thousands possible Thanksgiving make Bank Food theConnecticut help which supermarkets and media, businesses, tions, and religious organizations, founda- charitable civic bylocal sponsored and hosted drives food ofevents isaseries and program The program. for All” for the“Thanksgiving food Collected TRIPLE POINT WESTPORT www.ctfoodbank.org www.montgomerycountyfoodbank.com of18. theage under are children bythepantries 42%served than More non-profi to 46 goods transfers that donated distribution food anon-profi (MCFB), Bank Food County benefi drive afood Sponsored TRIPLE POINT HOUSTON t agencies in Montgomery County, Texas. inMontgomery t agencies nancial hasincreased assistance ting the Montgomery theMontgomery ting t center for Triple Point Visits Gokul

Last year for Children’s Day, employees from Triple Point’s Pune offi ce spent time with HIV-positive orphans living at a home called Gokul. The employees were so touched by the children’s spirit and enthusiasm that they made a pledge to visit often — and they have.

Gokul is run by the Non-Government Organization (NGO) Manavya and provides clean and comfortable shelter, nutritious food, medical care, and education for the children, who range in age from six to nineteen.

“Manavya” — a cocoon of love

For more information about Gokul’s mission and other Manavya projects, please visit www.manavya.org

“MANAVYA” — A COCOON OF LOVE 19 About Commodity XL About Triple Point Technology, Inc. Triple Point’s Commodity XL™ is the leading multi-market Triple Point is the leading provider of software for end-to-end commodity and enterprise risk management solution that Commodity Management. The global company provides meets all of the requirements for supply, trading, marketing, innovative solutions to competitively address the complex logistics, scheduling, shipping, risk management and commodities value chain: buying, selling, trading, and accounting in today’s volatile and complex environment: procurement; enterprise risk management; scheduling and multi-commodity management, business intelligence and logistics; storage; processing; and settlement and accounting. analysis tools for proactive decision-making, real-time Triple Point’s Commodity Management platform enables over integration of physical and fi nancial positions, advanced 260 customers in 35+ countries to profi tably manage exposure service-oriented architecture (SOA) and comprehensive to energy and raw materials across industries including enterprise risk management covering the four key areas of energy; metals; agriculture; transportation; shipping; consumer exposure: market / price risk, operational risk, counterparty products (CP); discrete manufacturers; and big box retailers. credit risk and corporate governance and regulatory Triple Point was named a ‘Leader’ in Gartner’s ETRM Magic compliance risk. Quadrant for its completeness of vision and ability to execute in 2009, 2010, and 2011. Founded in 1993, the company employs over 600 staff in 12 offi ces and support centers around the globe. More information is available at www.tpt.com

How to Get Started To learn how Triple Point’s Commodity XL software solutions can benefi t your supply, marketing, procurement, hedging or trading activities, please contact us at one of our offi ces below.

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