EUROPE

1. AMERICAS AFRICA EUROPE NOT AN OFFICIAL UNCTAD RECORD Our Mission « To provide our Customers integrated risk management solutions through superior credit support, inspection, quality assurance, delivered world-wide by a team of professionals applying the best technology. » ASIA

2. Integrated Risk Management Solutions For Oil Downstream Marketing

3. ACE - AUDIT CONTROL & EXPERTISE ACE Pre-Loan Survey (Due-Diligence) • ACE Collateral Management Services & ACE Field Warehousing Services • ACE Monitoring Services (Inventory & Receivables) • ACE Agricultural Credit Management Services • ACE Credit Shield (Insurance) Services • ACE Audit Services • ACE Inspection Services • ACE STF Training Services Our services

4. ACE Risk Management Services Storage Agreement Inspection Services Stock Audit FINANCIAL INSTITUTION Stock Audit INSURANCE COMPANY Storage Agreement Inspection Services Pre-Loan Survey Training Services TRADE HOUSE Pre-Loan Survey Training Services Monitoring Services Credit Shield Agri. Credit Mgt. Credit Shield Monitoring Services Credit Shield Agriculture Credit Mgt. Monitoring Services Inspection Services LOGISTIC Training Services MARKET PRODUCT Stock Audit Stock Audit Storage Agreement Inspection Services Storage Agreement Inspection Services PRODUCER IMPORTER / EXPORTER DISTRIBUTOR Agriculture Credit Mgt. Training Services Monitoring Services Audit Service Training Services Monitoring Services Audit Service Training Services Stock Audit Stock Audit Storage Agreement Inspection Services Storage Agreement Inspection Services Commodity Exchange Government Parastatal Bodies Pre-Loan Survey Training Services Audit Services Pre-Loan Survey Credit Shield Monitoring Services Credit Shield Monitoring Services Agriculture Credit Mgt.

5. LOW ACE Risk Management Services Module Name Work Type Base “Sovereign” Overlap LOW ADDED VALUE ACE Inspection Services Data Collection Exporter / Importer / Distributor/ Exchange ACE Stock Audit Services Data Collection Exporter / Importer / Distributor/ Exchange ACE Storage Agreement Services Data Collection Exporter / Importer / Distributor / Logistic ACE Monitoring Services Intelligence Data Processing Exporter / Importer / Distributor / Logistic Financial Institution / Trade House Exchange / Government Parastatal Bodies HIGH ADDED VALUE HIGHER RISK ACE Audit Services & STF Training Services Data Collection / Intelligence Data Processing Structural Integration benefits Exporter / Importer / Distributor Financial Institutions /Exchange ACE Pre-Loan Survey (Due-Diligence) & Credit Shield (Insurance) Services Intelligence Data Processing / Collection Structural Integration benefits Exporter / Importer / Distributor / Logistic Financial Institution / Trade House Exchange / Government Parastatal Bodies Structural Integration benefits Know-How Cap Exporter / Importer / Distributor Financial Institutions ACE Collateral Management Services Data Collection Data Processing Structural Integration benefits Exporter / Importer / Distributor Financial Institutions Exchange ACE Field Warehousing Services Data Emulation / Collection Intelligence Structural Integration benefits Producer / Exporter / Importer / Logistic Distributor / Financial Institution / Trade H. Government Parastatal Bodies / Exchange ADDED VALUE ACE STF Arranging & Structuring Services

6. Coffee Cocoa Cotton Cashew and other edible nuts Tea Tropical Fruits ACE employs today 1700 people around the world OUT OF AFRICA 36 Countries as Representation Offices Supported by a network of 97 Agents 33 Countries (+3) on a permanent basis

7. Rice Wheat & other Grains Sugar Palm Oil & Palm Products OUT OF ASIA

8. Sugar Soya Bean, Products & Oil OUT OF SOUTH-AMERICA

9. ACE & FINANCIER/TRADE HOUSE ACTORS TYPE OF FINANCING MITIGANTS COLLATERAL STEPS RISKS Delivery of Raw Material Supplier Performance Raw Material Financing SUPPLYER Quality/Quantity/Weight ACE SUPERVISON MONITORING RAW MATERIAL WARRANTS Warehousing Working Capital Financing (Tolling) LOCAL AGENT Supplier/Processing Performance ACE COLLATERAL MANAGEMENT Processing EXPORT GRADE PRODUCT WARRANTS Warehousing Export Product Financing PORT Carrier Performance Transit Terminal Performance Warehousing Loading EXPORTER SHIPPING DOCUMENTS Carrier Performance Export/ Shipment Receivable Financing OFF-TAKER PAYMENT Receivables 1st Class Offtaker or Secured Payment Instrument Plant Management / Technical Assistance Exporter/Carrier Expertise, Reputation & Technical Support ACE’S SCOPE FINANCIER/TH’S CONVENTIONAL SCOPE What about Synergies ?

10. « TRANSACTIONAL » FINANCING EVALUATION OF THE TRANSACTION TO BE FINANCED • The BANKS, The INSURERS & ACE need to know: • Oil Specifications • Market Environment (if it is a buyer or seller market) • Logistics aspects • Storage and Refining Capacity • Transportation availability • Security • Time Cycle • Price Mechanisms • Selling Mechanism (Firm Offtake or Speculation) The preparation of the terms of the facility agreement requires full knowledge and in-depth understanding of the Risks associated to the transaction.

11. « TRANSACTIONAL » FINANCING PARTIES INVOLVED IN THE TRANSACTION The bank/Insurer & ACE have to know the various players involved in the transaction in order to secure the collateral and remove the lien of the parties : • First Stage Buyers, Suppliers, Exporters • Traders • Credit Support Company • Transporters • Refineries • Tank Farm Operators • Forwarders • Shipping Agents • Insurers • Brokers One objective only : Completion of the transaction in facilitating repayment of the loan

12. ACE - AUDIT CONTROL & EXPERTISE Group So when talking about commodity performance risk - similarly to a loan collateral - the Collateral Manager and Risk Management Company's legal mechanism should ensure that it does, • give the financier clear rights over it, • allow to liquidate it and take possession in case of default, • carry out all local registration procedures and compliance, • not give any correlation between the counterparties credit risk and the collateral value, • provide for robust procedures allowing prompt collateral liquidation if need be, • provide for collateral segregation from custodians' own assets.

13. SOLUTION The applied solution

14. AN ACE RISK MANAGEMENT SOLUTION Field Tank Farm Receipt & Receivables Financing coupled with, • DNA Cargo Tagging, • IT Real Time Tank Storage Monitoring, • near real time fully secured over the web reporting The underlying principle being to: • Use in synergy Field Tank Farm receipt & Receivables financing with • Multilevel biotechnical and chemical cargo marking process - which applies unique DNA codes - allowing for unequivocal identity proof of ownership and source of Oil/Products cargo, • With permanent real time monitoring for Tank Farm storage through the use of an integrated IT graphic solution combining permanent sensor and ultrasonic measurement technologies with Web enabled reporting.

15. AN ACE RISK MANAGEMENT SOLUTION ACE On-Site Real Time monitoring network & sensors Oil/Products Tank Storage or Refinery Complex Wide Area Network, via IP: dial up, GSM, wireless, satellite or a combination of all, depending on conditions & existing infrastructure ACE Central Server • ACE On-Site interventions for: • Marking / Tagging • Sampling & Analysis (Country Wide)

16. ACE Integrated Risk Management Solution - Collateral Management & Monitoring - Concept • Pre-Operation Phase - ACE will - Survey Refinery Process - Approve Refinery Facility • Sub-Lease from owners • Obtain Waiver & Consent from owners • Pre-Operation Phase - ACE will - Identify Tank Farm / Terminal - Survey Tank Farm / Terminal - Approved Tank Farm / Terminal • Sub-Lease from owners • Operate Tank Farm/Terminal • Pre-Operation Phase - ACE will - Identify Field Tank Farm - Survey Field Tank Farm - Approve Field Tank Farm • Sub-Lease from owners • Operate Field Tank Farm TANK FARM Storage TANK FARM Storage REFINING PROCESS TANK FARM Storage TANK FARM Storage OPERATION PHASE ACE will - Monitor Processing - Control Quantity out - Control Weight out - Control Quality out - Attend & Monitor Transport • OPERATION PHASE - ACE will - Control Quantity and Weight In - Control Quality In - Approve/Refuse crude oil entry - If approved, DNA Tag oil cargo TRANSMIT TO FINANCIER • Quality/Quantity/Weight Cert. • Issued Tank Farm Receipt OPERATION PHASE ACE will - Control Quantity out - Control Weight out - Control Quality out - Attend & Monitor Transport • OPERATION PHASE - ACE will - Control Distributed Quantity - Control Weight Out - Control Distributed Quality TRANSMIT TO FINANCIER • Delivery Documents. CRUDE OIL

17. ACE Integrated Risk Management Solution - Collateral Management & Monitoring - Concept 2 • Pre-Operation Phase - ACE will - Identify Tank Farm / Terminal - Survey Tank Farm / Terminal - Approved Tank Farm / Terminal • Sub-Lease from owners • Operate Tank Farm • Pre-Operation Phase - ACE will - Identify Field Tank Farm - Survey Field Tank Farm - Approved Field Tank Farm • Sub-Lease from owners • Operate Field Tank Farm TANK FARM Distribution Storage TANK FARM Distribution Storage TERMINAL/TANK Storage TANK FARM Distribution Storage • OPERATION PHASE - ACE will - Control Quantity and Weight In - Control Quality In - Approve/Refuse crude oil entry - If approved, DNA Tag oil cargo TRANSMIT TO FINANCIER • Quality/Quantity/Weight Cert. • Issued Tank Farm Receipt OPERATION PHASE ACE will - Control Quantity out - Control Weight out - Control Quality out - Attend & Monitor Transport • OPERATION PHASE - ACE will - Control Distributed Quantity - Control Weight Out - Control Distributed Quality TRANSMIT TO FINANCIER • Delivery Documents. PRODUCTS

18. The LEGAL Nature of ACE Risk Mgt Services BAILMENT CONCEPT This is the legal term describing the relationship when the ownership of personal property resides in one person and possession of it is in another. • The depositor of the goods is known as the « Bailor » • The person engaged in storing the goods of others for compensation (I.e. the Collateral Manager) is known as the « Bailee » Two conditions are necessary for « Bailment » to exist, • The Depositor relinquishes possession of the property; • ACE assumes « exclusive, continuous and notorious possession of the property ».

19. Oil/Products Import Structure – Legal Agreements Procurement/Purchase Contract Purchase, Waiver & Consent Agreements Small Importers Lease/Sub-Lease, Waiver & Consent Agreements TANK FARM Storage Transport, Waiver & Consent Agreements Transporters REFINERY Process & Storage Refining/Storage or Tolling Agreement Assignment of Insurance CMA & CSS Agreements Transport, Waiver & Consent Agreements Transporters • “All Risks” plus • misappropriation. • Professional Indemnity, Fraud • & Omission. • Political Risk (confiscation, • expropriation, nationalization • & Depossession). TANK FARM Storage Lease/Sub-Lease, Waiver & Consent Agreements Sale & Purchase Agreement Assignment of Farm Tank Receipt & Proceeds SUPPLIER Financing Bank (SPV) ACE Insurance Company Distribution Network

20. Oil/Products Import Structure – Product Vs Cash Cash for Procurement Classification Storage Fees Storage Fees ACE crude Oil Tank Farm Receipt Financing Bank (SPV) Transport Fees Product Grade ACE Tank Farm Receipt Transport Fees Processing/ Storage Fees Tax & Duties CMA & CSM Fees ACE Tank Farm Receipt Proceeds from Sales SUPPLIER Small Importers TANK FARM Storage Transporters REFINERY Process & Storage ACE Transporters TANK FARM Storage Financing Bank (SPV) Revenue Authority Distribution Network

21. Field Tank Farm Receipt Financing Benefits of implementation for Stakeholders To Tank Farm Operators/Refinery • Reduced number of small counterparts or interfaces. • Prevent bypassing of existing infrastructure. • Constant monitoring of storage conditions and stored quantities. To Small Importers • Reduced transactional obstacles (economies of scale). • Reduced transactional cost (economies of scale). • Access to Farm Tank financing (Field Farm Tank Warrant). To Tax Authorities and Consumers • Prevention of tax evasion and increased cargo traceability capacity. • No more Fuel alteration. • Improved Quality & Safety Standards country wide. To Financing Institutions • Securitized warrant based financing. • Access to unratable and previously non-financed borrowers.

22. ACE RISK MANAGEMENT SERVICES ANALYSE RISKS 1 CREATE VALUE 4 ACE STRUCTURE FLOWS 2 CATALYSE BUSINESS 5 SECURE TRANSACTION 3 SHARE RISK & REWARDS 6

23. ACE RISK MANAGEMENT SERVICES As a Risk Management Company, do we share only risks ? • Of the producers/exporters • Of the commodity dynamics & its trade • Of the countries • Of the laws • Of practical mitigants • Track-record / experience / expertise We share KNOWLEDGE • Borrowers • Insurers • Transporters • Clearing forwarders, Shipping Lines • Participating Banks & Exchanges • Law Firms We share RELATIONSHIPS

24. "Services dedicated to Risk Management" (Headquarters) - Rue Richard-Wagner 1 1202 Geneva – Switzerland Tel. : +41 22 919 91 11 Fax : +41 22 919 91 19 Email : ace.geneva@ace-group.net www.ace-group.net