2013 CTRM Global Market Size

ComTech Advisory estimates the value of the global market for vendor-supplied CTRM applications in 2012 was $938 million.

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We believe the market in 2013 will show only a slight increase over 2012, with total estimated vendor revenues of $976 million.

Including the value of associated 3rd party services revenues, ComTech believes the global market for CTRM products was $1.56 billion in 2012 and we estimate the results in 2013 will be $1.6 billion.

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2013 CTRM Global Market Sizing Report

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Introduction and Scope Commodity Technology Advisory (ComTech), the leading analyst firm covering commodity trading and risk management (CTRM) technology markets, has recently completed an in-depth review of the CTRM market space in order to compile an estimate of the size of the global CTRM technology markets, and the results of this analysis and review are included in this report.

Readers of this report should be aware that in the development of this data, we have had to necessarily delineate boundaries for the companies/applications that are reflected in this scope of the analysis.

‘CTRM’ is a term that has been widely adopted by many technology companies. “Traditional” CTRM vendors have been expanding their reach outside of what has been widely accepted as core CTRM through acquisition of applications what would commonly viewed as tools for managing and optimizing supply chains.

As such, for this report, ComTech has utilized a fairly rigid view of what capabilities are encompassed within the bounds of CTRM. The included capabilities (and associated services) for this report are: 1) Physical and financial commodity deal capture and contract management, 2) Position management and valuation and, 3) Tracking/managing of commodities logistics as they apply to functionality commonly deployed as a functional component of large scale CTRM solutions servicing gas, power, crude and bulk product movements, 4) Settlement and accounting of deals/transactions, and 5) Trader analytics and trading optimization tools.

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2 Products, functionality, and application modules excluded from this market sizing analysis include: 1) Logistical management capabilities not associated with core trading requirements, such as truck, rail or ship tracking software, 2) Production modeling or optimization software for industries such as oil and gas production, mining or agriculture, 3) Applications for managing physical facilities, such as power generation, mines, gas plants, pipelines, refineries, mills or other processing plants, and 4) The modules or functional components of ERP applications (such as JDE, SAP and Oracle Financials) that are not directly related to trading or commodity marketing activities, 5) Applications intended only to manage financial products (which may or may not include financial commodities) and provide no capabilities for capturing, valuing or tracking physical commodities, and 6) Supply chain management and optimization applications that cannot capture, manage or value traded commodities based upon their unique physical characteristics.

This CTRM market sizing study includes the following commodity classes: natural gas, power, oil and oil products, coal, industrial metals, precious metals, agricultural commodities, softs, and others (including freight, RECs, and other minor commodities).

Establishing a definitive size for any market, particularly one as complex as commodity trading and risk management, is a difficult exercise and is impossible to complete with absolute certainty. Market sizing, being a forward looking exercise, must be based upon numerous factors and assumptions, including overall economic conditions, forces encouraging new market entrants, historical buying patterns of existing market participants, technology drivers encouraging new purchases, and the number and capabilities of the product vendors available to meet the needs of the market.

Despite these difficulties, we believe that our organization’s unique position in the market, that of highly experienced analysts and market researchers focused exclusively on the intersection of the commodity trading markets and the technologies that service those markets, provides us the market vision and insight necessary to compile a reliable and accurate estimate of this unique and dynamic technology market.

Note: The market sizing figures presented in this study are our best estimates based on the methodology and approach documented herein. They should be treated as estimates and are subject to change should additional information become available.

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Summary of Results – 2012/2013 ComTech estimates the value of the global market for vendor-supplied CTRM applications in 2012 was approximately $938 million, comprised of $235 million in license sales, $455 million in services, $214 million in support and maintenance, and $33 million in revenues associated with Total CTRM Market 2012 2013 $ 235 $ 237 SaaS deployed or hosted software. Based upon current Vendor License Vendor Services $ 455 $ 483 market conditions and estimated vendor results to date, we Vendor S&M $ 214 $ 219 believe the market in 2013 will show only a slight increase over SaaS/Hosted $ 33 $ 38 2012, at total estimated vendor revenues of $976 million, with Third Party Implementation $ 355 $ 358 $ 269 $ 267 most of the year-over-year increase associated with vendor Non-Vendor Solution Total CTRM Market Value $ 1,562 $ 1,602 supplied services.

While vendor supplied software makes up the majority (in terms of available technology revenues) of the market for CTRM applications, there still exists a not insubstantial number of companies that continue utilizing third party consultants or internal IT staff, to develop and support their own custom solutions. ComTech estimates that these bespoke solutions accounted Total CTRM Market by Commodity by Geography - 2012 for approximately $269 million North South Middle East Total by spent on the services of third America America Europe & Africa Asia/Pacific Commodity party consultants in 2012, with Natural Gas $ 186 $ 2 $ 134 $ 1 $ 11 $ 334 172 2 155 1 15 345 a majority of those dollars Power Oil and Products 85 20 75 17 49 246 being spent on continuing NGLs 93 1 5 5 105 10 1 10 5 26 support and maintenance, Coal Precious Metals 15 3 21 6 9 54 with the remaining being Other Metals and Ores 39 9 34 9 41 131 90 14 88 22 84 298 expended on development of Ags/Softs Other (Freight, Emissions, Etc) 5 11 2 6 24 new applications.

These Totals $ 696 $ 53 $ 527 $ 61 $ 226 $ 1,563 estimates do not include costs associated with customer resources assigned to the development or support of these bespoke applications (internal costs).

Though adoption rates for vendor supported solutions will vary by industry segment and geography, ComTech does forecast that vendor-supplied solutions will continue to see additional adoption and we believe the market for custom developed or bespoke solutions will not show any appreciable growth from year-to-year for the foreseeable future.

In addition to 3rd party consulting revenues associated with the development and support of bespoke functionality, consultants and integrators also maintain a significant role in the implementation and support of vendor deployed solutions. For purposes of this market sizing analysis, ComTech includes these dollars as part of the global CTRM market size. For 2012, we believe some $355 million was spent by customers of vendor-supplied CTRM solutions for the services of these 3rd party consultants to provide assistance during the selection, implementation and integration of the newly acquired technologies. This estimate reflects a substantial increase in the last several years as more customers of vendor supplied CTRM solutions are engaging with third parties to assist in their acquisition and implementation projects. Additionally, with a number of very large projects having initiated over the last three years (including several with licenses sales exceeding $30 million) which employ dozens of third party consultants, we believe the expenditures for these consultants to be, on average, as much as 3 times the amount spent on vendor supplied consulting resources.

Including these associated services revenues, ComTech believes the global market for CTRM products to be $1.56 billion in 2012 and are forecasting the results in 2013 to be $1.6 billion.

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Market by Geography Geographically, North America continues to be the largest market region for CTRM software solutions, with a mature commodity trading market, particularly in power, natural gas, oil, coal, agricultural products and metals. While there continues to be a number of companies that maintain non-vendor systems, a large majority of the market for CTRM technology in North America is serviced by vendor-supplied and supported solutions.

Europe has also a mature market in commodity trading, though less than North America in terms of natural gas and power. Western Europe, particularly the UK and Germany have established liquid markets for gas and power trading and are relatively penetrated by commercial CTRM solutions. Eastern Europe is a rapidly emerging energy trading market, though without full and consistent liberalization across the continent, the markets in individual countries are relatively isolated in terms of trading activities and business practices. Given the relatively small size of these markets, this localization has limited the adoption of vendor-supported CTRM applications as few vendors have been willing or able to make the necessary investments in developing capabilities to address the unique local requirements in each country; therefore, bespoke or internally developed CTRM is more common in the region.

Elsewhere in Europe, established global trading centers in other commodities, particularly in the UK, Switzerland, and the Netherlands have a long history in trading agricultural products, softs, and oil; and penetration 2012 CTRM Market Share by Geography by commercially supported CTRM systems is relatively high.

4%

14%

The Asia-Pacific region, driven by high demand for 45% commodities to meet rapidly expanding economies has become an increasingly active market for CTRM vendors, particularly those for managing oil and oil 34% products, agriculturals, softs and industrial metals and ores. Within the last several years, CTRM 3% vendors have found success selling products into North America South America Europe Middle East & Africa the Singapore and Hong Kong markets, with Asia/Pacific national oil companies and large metals and agricultural trading companies being particularly active buyers of vendor systems. However, given cultural and language differences outside of the major trading centers in the region, western-oriented CTRM vendors have had difficulties selling their products within the borders of the largest economies in the region, particularly China and Japan, and these markets are still dominated by custom developed solutions.

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Market Outlook and Study Assumptions The following assumptions were utilized in the development of the forward looking market analysis: Growth estimates reflects current consensus outlook for global economic growth of 2-3% per year for the foreseeable future.

All data 2012 dollars – there has been no adjustments for inflation or currency exchange rate changes over the period 2013 to 2018.

ComTech currently believes the global market for CTRM licenses (including ASP/SaaS) will grow, on average, approximately 5% per year from 2013 to 2018 o Traditionally installed software license sales will grow by approximately four percent per year during that period. o Growth in ASP/SaaS will be approximately 13-15% over the study, exceeding that of traditional license growth.

Growth from 2012 to 2013 primarily reflects backlog of services associated with several exceptional sized deals done in late 2012. Based on 2013 results compiled at the time of this analysis, we anticipate 2013 license sales to show little or no growth vs. 2012.

Despite our current forecast assumptions, there exist a number of potential market developments that could impact the outlook for the CTRM market in the coming years. Should global market growth exceed current forecast assumptions, the following market segments could show higher than forecast growth.

Agricultural markets and Consumer Package Goods (CPG) – Increasing price volatility and growing awareness of the value of trading-centric solutions (driven in part by CTRM vendors) for direct, indirect and cross-commodity hedging could accelerate adoption of CTRM capabilities/solutions.

Trading companies and fuels intensive industries, including transportation and logistics companies, processing companies – Increased demand for oil and products could lead to higher prices/volatilities and could increase demand for CTRM technology solutions as new entrants enter the markets and existing participants seek to improve risk visibility and/or grow via increasing trading volumes or by entering new markets.

Mining – Mining has been in decline since mid-year 2012. However a strong increase in demand for metals, ores and coal could lead to increased mine development and a subsequent increase in demand for CTRM solutions in this segment, particularly in Australia, South America and Africa.

Base metals and concentrates – economic upturn will increase demand and increase price volatilities in non-precious metals trading/processing, attracting new market participants particularly in the traditional market trading centers in Europe and in the import centric markets in the Asia Pacific region.

Should full market liberalization in the European Union energy markets occur prior to 2017, growth in demand for CTRM products in that market could exceed 10%/year post liberalization; however the current outlook does not support full opening of the EUR energy markets prior to 2018.

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5-Year Market Outlook In developing our outlook for the global CTRM markets, we reviewed the current and perspective market by commodities, geographies and industrial market segments; developing our topside outlook of the market based upon this more granular review. Overall, we anticipate the total global CTRM market will grow by 4-6%, with our estimates reflecting a midrange value of 5%. Within the revenue components that comprise this market, we anticipate that traditional installed software license sales will grow at modest rate of 3-4%, while increasing adoption of SaaS or “Cloud” based solutions will see growth rates from 13-15%. Despite this high growth rate, traditionally installed solutions will continue to dominate the market for the foreseeable future.

Regional Review

$Millions

The “Energy Renaissance” in North America is having a significant impact on prices and volatilities for both natural gas and power, reducing trading activities across virtually all industry segments and limiting the entrance of new market participants.

Given that the Total CTRM Market by Commodity by Geography - 2012 future outlook for $200 natural gas prices is $180 flat to today’s $160 $140 market, it is very $120 unlikely that this $100 market will see $80 much in the way of $60 $40 increased demand $20 for CTRM solutions $for natural gas or North America South America Europe Middle East & Africa Asia/Pacific power during the Natural Gas Power Oil and Products study period. Most NGLs Coal Precious Metals sales of new licenses Other Metals and Ores Ags/Softs Other (Freight, Emissions, Etc) for the energy centric market (including oil, products and coal) in North America will be for replacement of existing vendor supported systems that have been in production for five or more years, and for expansion licenses due to organic business growth. Non-energy CTRM license sales do show more promise for growth as we are seeing increasing adoption of CTRM for managing price and operational risks in the supply chains of agricultural, CPG and metals intensive industries. We expect growth in these markets will continue, contributing to an overall growth rate in the North American market on par with the global average of approximately 5%.

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7 Europe is continuing to face difficulties in their banking markets and much of the continent has been battling economic recession since the global financial crisis of 2008. While there are indications that there may be an economic recovery in the offing, a number of factors (including continuing debt issues in several countries, insufficient capital for trade finance, delayed opening of the liberalized energy markets, and a regulatory environment that is still unsettled) are creating headwinds that we believe will limit the growth of the European CTRM markets to less than 5% through 2018.

Despite indications that Chinese economic growth may be slowing, economic growth in the Asia-Pacific region is expected to remain high in comparison to the rest of the world, and the region will continue to see increasing demand for all commodities. This demand growth, coupled with Increasing adoption of solutions for managing market and operational risks, will result in increasing demand for CTRM technologies, particularly those for managing exposures along the global supply chains in agriculturals, metals and oil products. We believe the growth rate for CTRM in the region will average 7-10% during the next 5 years, exceeding that in other areas.

While CTRM deals will continue to occur in South America, it has not yet matured into a predictable and reliable market place for CTRM technologies. As much of the regions commodities markets are export oriented, and limited and very uneven economic growth (relative to other global economic regions) does not indicate an expansion of trading activities within the continent, we do not see significant prospects for growth in the CTRM markets in the region for the next several years.

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Market by Segment In terms of market segments, we anticipate the prospects for growth in any individual segment will be dependent upon their location and commodity requirements.

Total CTRM Market Value by Industry Segment by Year $300 $250

$Millions

Banks and financial institutions, particularly in North America and Europe, have been impacted by new regulations and will show little or no growth in CTRM demand over the period; and though hedge funds have returned to the markets in limited numbers after the financial crash of 2008, few are buying vendor supported systems and we see little indications that they will soon be buying in any large number.

$200 $150 $100 $50 $-

Energy merchants and traders, 2012 2013 2014 2015 2016 2017 2018 despite the lackluster gas and power markets in North America, are continuing to make investments in new CTRM technology solutions, including replacement systems and expansion of existing solutions. Continuing volatility in oil and oil products prices have also brought new traders into the markets and this market has been fairly robust over the last several years, particularly in the Asia-Pacific region. Smaller oil trading companies have also been active buyers of CTRM solutions over the last couple of years, particularly SaaS deployed solutions.

Despite low prices of natural gas in North America, both regional and global scale oil and gas producers have continued to invest in CTRM solutions, though potentially at a reduced pace as compared to previous years. As producers have moved their focus from gas to more lucrative liquids (oil and NGLs), these companies have had to spend to improve their trading and management systems as their market exposures in these commodities has Advertisement

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9 grown. Additionally, midstream operators, those providing production gathering, processing and sometimes marketing services to producers are making substantial investments in new facilities and infrastructure as exploration and production has expanded into new areas.

Utilities, including both power and natural gas, will continue to spend dollars to upgrade and maintain their trading capabilities, though the rate of growth for those expenditures is expected to small.

Several large Agricultural and CPG companies have committed to very large CTRM deals (with licenses value of more than $10 million) in the last three years; however, as previously noted, ComTech believes these size of deals are an exception and we do not believe deals of this scale will become the norm in this market. Results through YTD 2013 indicate that while the number of deals done in these market segments will increase (increased penetration) it is unlikely that deals with a license value of greater than $10 million of deals will be signed at a pace that we’ve seen in the last few years. Nonetheless, we believe the number of deals in these market segments will increase and the value of those deals will offset the reduced per deal value, resulting in year-over-year increases greater than the 5% average for the broader CTRM category.

The global metals markets began slowing in 2012 as demand declined in part to a slowing of the Chinese economic growth. Through most of 2013 the market had not fully revered, though most market analysts believe the outlook for an improved metals market is strong. ComTech believe the metals trading markets will perform on average with the global CTRM markets, at about 5% per year.

Within the last decade, the market has increasing seen the rise of trading companies that have expanded their focus from a single commodity or single class of commodities (such as energy, ags, softs, metals) and are now trading a broader portfolios of commodities. These companies, most global in the scale of their trading, may be most identified with a particular class of commodity, (such as Cargill in agricultural commodities), they are in fact also trading a much broader array of commodities. For this “multi-class” market segment, we anticipate the growth rate will be on par with the market average, approximately 5% per year through 2018.

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Market by Commodity

$Millions

Both natural gas and power-centric CTRM markets are primarily focused in North America and Europe, where active trading of the commodities is fairly widespread. Within the last couple of years, there have been sales of power and gas capable systems in the Asia-Pacific region, primarily to utilities and producers; however these sales have been the exception for these types of Total CTRM Market by Commodity systems. Given that Inc. Vendor Revs, 3rd Party Implementation and Unaddressed the North American Market natural gas prices are $500 anticipated to remain $450 low for the $400 $350 foreseeable future and $300 that power $250 (increasingly fueled by $200 natural gas) prices are $150 also expected to $100 $50 remain low, the $outlook for growth in Natural Power Oil and NGLs Coal Precious Other Ags/Softs Other Gas Products Metals Metals and (Freight, CTRM for these two Ores Emissions, commodities is for Etc) growth to be less than 2012 2013 2014 2015 2016 2017 2018 3% over the next 5 years.

Oil and oil products are widely traded around the globe and the overall demand and supply balance continues to be relatively tight, yielding prices consistently above $100/bbl amid moderate volatility. These conditions, combined with increasing demand for products in Asia-Pacific continue to support active trading in the commodity and support a continuing market outlook for growth of slightly more than 5% for CTRM technology serving that commodity segment.

CTRM for NGL trading, which is almost entirely centric to the North American market, has seen an strong increase in the last three to four years as massive increases in natural gas product has led to a boom in infrastructure development and strong growth in the midstream of the market. With the development of new gas processing plants and strong growth by producers holding liquids rich gas assets, the demand for NGL capable systems has increased significantly during the last couple of year. However, as infrastructure been developed in the new producing regions, and natural gas prices are anticipated to remain low, the outlook for continued growth in NGLs is limited and we believe beyond 2013, the market will see less than a 5% increase year over year.

Coal producers and traders are feeling the effects of a declining market for coal for power generation, particularly in the US and Europe where environmental regulations are accelerating the closing of coal fired facilities and are effectively killing new construction. Though large coal fired projects continue to be developed in China and other areas of Asia Pacific, the global demand for steam coal is declining. Given these conditions we anticipate that there will be no increase in demand for coal centric CTRM products for some time.

CTRM for precious metals is a highly variable market from year to year, driven primarily by both the price and volatility of the gold markets. With higher prices and increasing volatility of gold, we would expect to see strong

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11 growth in CTRM for precious metals; however, as gold prices are driven by a number of influences outside of physical supply and demand, it is difficult to forecast future performance of this market. Nonetheless we do believe, based on past performance, that this commodity segment will produce a slight increase in demand (less than 3%) through 2018.

As previously noted, demand for industrial metals has softened over the last 18 months. We are however forecasting growth in CTRM for metals and ores to increase by about 5% per year as market conditions for industrial consumption of iron, steel, and alloys improves.

Continuing demand for agricultural products, including many softs, will help maintain prices and volatilities.

Additionally, increasing adoption of CTRM products by agricultural and CPG market players will drive provide good market growth rates for technology. We anticipate that sales of CTRM capable systems will remain high as agricultural centric market participants continue to adopt to these systems to better manage price, currency, credit and operational risk associated with their long, global supply chains. In all, we anticipate growth in this commodity segment will average 7-8% over the next 5 years.

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Discussion of Report Methodology To arrive at this market sizing estimate, ComTech utilized “a bottom-up” review of all known vendors of production solutions and tools that meet the previously discussed criteria of CTRM technologies. While there are numerous vendors around the globe that do provide qualified (as it relates to this analysis) CTRM solutions, many of those companies also provide products and associated services that fall outside the established criteria, and those revenues have be excluded from this analysis.

In developing the bottom up estimate related to CTRM vendor revenues, more than 90 companies were reviewed and most had some or all of their revenues included in the final CTRM Vendor Market Size Estimate. The companies reviewed included (but are not necessarily limited to) the following: Abacus Agiboo Agrosirius Albedo Energy Consulting Allegro Amphora Ascend Analytics Aspect Brady C Square International Calvus Calypso CDA CMS ComFin Contigo Cultura Delta Energy DMS Egar EGAR EKA EMK3 EnCompass Energeya Energy Solutions International Ensite Ensyte Energy Solutions Entero Entrion

Enuit E-Opt Eximware FEA FinLogik Fortech Gen10 GMSL HighSoftware Hivedome House of Code Imagine Software Infinite InvenSoft Technologies IPESoft Spol sro IPSystems Ltd iRely iRisk JustCommodity Kiodynos Kisters Klafka & Hinz Kyos energy Consulting Lacima Latitude Lloret Data Solutions Logaviv Molecule Software Murex Nexant

OATI Open Link PCI Pioneer Progress Software Progressive QuantRisk Quorum Business Solutions SAP SASRiskAdvisory Sisu SoftSmiths Spectrum Prime Square Four SquareFour sa SunGard Superderivatives System Advisors Tegos Temenos TradePaq Transgraph Transition Technologies Triple Point Utiligroup Ventyx Vesion Waterfield Energy Software Wellpoint Systems Woodlands Solutions

For each known vendor of CTRM systems, research was conducted (including direct contact with many of the vendors) to obtain: An estimate of vendor revenues and license revenues for 2012. A very small number of E/CTRM vendors are public companies and disclose some information as part of their regulatory reporting requirements.

Additionally, several E/CTRM vendors, though private, have provided this information to our company under terms of confidentially or, more rarely, do occasionally disclose the information publically via press release or other announcements. Utilizing these actual and estimated revenues, along with known and

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13 estimated headcount numbers, ComTech then generated a number of reliable reference points and ratios for analyzing other vendors for which we had less visibility.

One of the primary ratios utilized in estimating any particular vendor’s revenues was the "revenue per headcount" estimate. In our analysis of metrics provided by vendors or garnered through other sources, the actual revenue per headcount figure ranged from $50,000 to $230,000 per employee. This variances in this metric was correlated to a number of factors, though the primary influences were geographic location of the employees and level of specialization of the vendor.

Based on an analysis of the entirety of this data, revenue estimates can be accurately established for all vendors known to provide qualified solutions in the market.

Assumptions were then made for each vendor regarding the allocations of those revenues amongst 4 categories: 1) traditional license revenues, 2) SaaS/Hosted license revenues, 2) services revenues, and 4) revenues associated with support and maintenance agreements.

Total CTRM Market Vendor License Vendor Services Vendor S&M SaaS/Hosted Third Party Implementation Non-Vendor Solution

$ $ $ $ $ $

Total CTRM Market Value

$

2012 235 455 214 33 355 269

$ $ $ $ $ $

2013 237 483 219 38 358 267

1,562 $

1,602

In addition to the identified and known vendors of CTRM products, we have made the assumption that there exists some number of vendors that are unknown to us. While ComTech Advisory analysts are highly experienced in this market, we cannot assume that every vendor, particularly those that operate in very localized markets (particularly in the Asia Pacific and Eastern European/Russian markets), will be known outside their local areas. Therefore, we have included a relatively small Global CTRM Market Revenue - Vendor Only amount of revenue (less than 5% of $1,400 the global total) to account for these entities. $1,200 $1,000

$Millions

In order to determine a total market spend for CTRM technologies, it is $600 also important to account for the dollars spent with consultants and $400 system integrators outside those $200 provided by the vendors of the $technologies. We have observed a 2012 2013 2014 2015 2016 2017 2018 clear trend by most market License Saas/Hosted Vendor Services Support & Maintenance participants to engage such 3rd party services in almost all new product implementations, and an increasing number of upgrade and other support-related projects. Utilizing the results of a number of different research paths, we have established the value of these 3rd party services related to the initial implementation of CTRM solutions as $355 million in 2012. $800

Additionally, we have established a value of custom developed or bespoke solutions (non-vendor) produced and delivered by third party consultants at $269 million for 2012. This value represents the portion of the market that has chosen to deploy custom developed solutions despite there being commercially available software that could meet many or most of their requirements. While this portion of the market is sizeable, representing about 17% of

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CTRM Vendor Revenue by Commodity $1,400 $1,200 $1,000 $Millions

the total market, and there will certainly always be companies that feel they have unique requirements that cannot be adequately addressed by vendors solutions, the increasing penetration of commercial CTRM solutions will result in no appreciable growth in this market.

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$800 $600 $400 $200 $2012

2013

2014

2015

2016

2017

2018

Natural Gas

Power

Oil and Products

NGLs

Coal

Precious Metals

Other Metals and Ores

Ags/Softs

Other (Freight, Emissions, Etc)

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Appendix Market Size Detail – 2012 thru 2018 Note: Differences in annual market size totals amongst the following data is related to rounding errors and/or “model noise”.

Total CTRM Market Value by Revenue Component Vendor License Vendor Services Vendor S&M SaaS/Hosted Third Party Implementation Non-Vendor Solution Total

$ $ $ $ $ $

2012 235 455 214 33 355 269

$

$ $ $ $ $ $

2013 237 483 219 38 358 267

1,562 $

$ $ $ $ $ $

2014 244 507 229 45 369 268

1,602 $

$ $ $ $ $ $

2015 251 532 240 54 380 268

1,662 $

2016 259 559 250 63 392 270

$ $ $ $ $ $

1,725 $

$ $ $ $ $ $

1,792 $

2017 266 587 262 75 404 270

$ $ $ $ $ $

2018 274 616 273 88 419 270

1,864 $

1,941

Total Market Value by Segment - Vendor Revs, Third Party Implimentation, Unaddressed Market 2012 Financial Cos. Energy Merchants/ Traders O&G Producers O&G Midstream Power Utilities Refiners, Distributors, Processors Gas Utilities/ LDC Energy Retailers C&I Energy Consumers Ag Traders Food and Bev (inc. Processors) Ag Producers Mining Metals Traders Multi-Class Traders Total

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2013

93 209 181 98 193 113 35 25 54 152 139 64 44 79 85 1,564

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2014

93 214 184 101 190 119 35 25 56 163 145 63 46 76 95 1,603

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2015

93 224 186 100 188 125 36 26 59 172 145 76 48 81 106 1,663

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2016

93 231 185 103 190 131 37 27 62 182 157 80 49 86 115 1,726

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

2017

93 241 187 106 193 137 37 27 66 194 162 86 51 91 125 1,795

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

93 250 191 106 195 142 38 28 70 206 172 93 53 97 133 1,866

2018 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

93 258 199 110 197 147 39 29 75 216 187 92 55 102 144 1,943

Total Market Value by Commodity - Vendor Revs, Third Party Implimentation, Unaddressed Market 2012 335 346 252 106 26 52 129

$ $ $ $ $ $ $

2015 334 349 300 118 25 59 155

Ags/Softs Other (Freight, Emissions, Etc)

$ $

291 $ 26 $

307 $ 27 $

329 $ 29 $

353 $ 31 $

$

1,562 $

1,602 $

1,662 $

1,725 $

© 2013 Commodity Technology Advisory LLC

$ $ $ $ $ $ $

2014 332 347 283 115 25 57 145

$ $ $ $ $ $ $

Total

$ $ $ $ $ $ $

2013 329 344 267 112 26 54 136

Natural Gas Power Oil and Products NGLs Coal Precious Metals Other Metals and Ores

$ $ $ $ $ $ $

2016 337 353 318 120 25 62 166

$ $ $ $ $ $ $

2018 345 357 357 125 25 68 191

380 $ 33 $

408 $ 34 $

438 37

1,793 $

1,866 $

1,944

$ $ $ $ $ $ $

2017 341 355 337 122 25 65 179

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Commodity Technology Advisory Commodity Technology Advisory is the leading analyst organization covering the Energy and Commodity Trading and Risk Management (E/CTRM) technology markets. We provide invaluable insights, backed by primary research and years of experience, into the issues and trends affecting both the users and providers of the applications and services that are crucial for success in markets constantly roiled by globalization, regulation and innovation.

Patrick Reames – Managing Director and Founder

Dr. Gary M. Vasey – Managing Director and Partner

Mr. Reames possess a deep understanding of the energy and commodities markets, developed through hands-on experience and managerial oversight of energy and commodity operations, including exploration, production, gathering, plant and pipeline operations. Additionally, he has 5 years of energy commodity trading, transportation, and risk management experience with Hess Corp. (formally known as Amerada Hess), a Fortune 100 integrated energymarketing company.

Dr. Vasey is an industry expert noted for his analysis, consulting, marketing, and branding skills. With over 29years’ experience in the energy and commodities trading industry, Gary has experienced the industry’s volatility as an executive of a trading firm, geologist, consultant, software developer, analyst, and marketing practitioner, providing him with unique insights, not just into the entire value chain, but also into how to position, brand, and deliver products and services to the industry.

Over the last fifteen years, he has been focused primarily on information technology serving energy and commodity trading, marketing, and risk management. Prior to founding Commodity Technology Advisory, he led the CommodityPoint division of UtiliPoint International, providing expert CTRM market analysis and advisory services to dozens of clients in North America, Europe and the Asia/Pacific region. Prior to joining UtiliPoint International in 2005, he held senior executive positions with several technology companies (including TransEnergy Management, Altra Energy, and TradeWell Systems) servicing the energy and commodity markets.

Gary was most recently Executive Director of a PanEuropean power trading firm. Prior to that, he led CommodityPoint as co-Managing Director and is a noted expert on the commodity trading, transaction and risk management software industry and an accomplished industry analyst and thought leader.

An acknowledged expert in market analysis and advisory, he is a frequent speaker at industry conferences and events, has published numerous articles in industry publications and is an often quoted expert in news stories. He is the coauthor (with Dr. Gary Vasey) of the books “Selecting and Implementing Energy Trading, Transaction and Risk Management Software – A Primer” and “Trends in Energy Trading, Transaction and Risk Management Software – Second Edition”.

Mr. Reames holds a B.S. in Business Administration – Finance from Oklahoma State University.

Gary has published more than 200 articles on energy and commodities industry trends in a variety of publications, is a regular speaker at industry conferences, and is the coauthor of the books Trends in Energy Trading, Transaction and Risk Management Software – A Primer and Selecting and Implementing ETRM Software – A Primer (with Patrick Reames). He also contributed two chapters to The Professional Risk Managers‘ Guide to Energy and Environmental Markets published by PRMIA and two chapters, co-written with Peter C. Fusaro, to Weather, Energy and Environmental Hedging – An Introduction (ICFAI University Press, 2007) edited by Amando F C Da Silva.

Gary is also the co-author of Energy & Environmental Hedge Funds – The New Investment Paradigm (Wiley, 2006) with Peter C. Fusaro, and of many trade press articles on hedge funds in the energy, commodities and environmental industry.

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