ACE CE GLOB GLOBAL DEP DEPOSITORY C OL AL C ON ROL S ERVI OR B AN - PowerPoint PPT Presentation

ACE CE GLOB GLOBAL DEP DEPOSITORY C OL AL C ON ROL S ERVI OR B AN ANKS , T , T RAD ERS & S S UPPLIER OLLAT ATERAL ONTROL ERVICES FOR RADERS IERS PE | | ME MENA | | EURAS URASIA | | WE RICA | | EAS RICA | | SOU RICA | | SOUTH AS ASIA | | FAR AST | | LAT EUROPE WEST AF AFRI AST AF AFRI OUTHER HERN AF AFRI AR EAS ATAM AM WWW . ACE - GROUP . NET

C OLLAT AL C ONTROL S ERVICES ATERAL e d Co Commodit dity F Str uc tur inanc e F undame ntals  Transactional financing structures necessitate either full ownership with stock carried on the Lender’s balance sheet or registered possessory pledge over collateralized stock (dependent on Legal requirements per country)  Ownership evidenced by stock confirmations in form of a Warehouse Receipt  A thorough understanding of demand or supply dynamics in each operating country.  Commodity Risk: Storage dynamics, Price, Quality , Weight and Quantity  SCF Product Solutions covers the entire supply chain from Off taker, Transport to destination, Processor, Producer (foreign and/or local)  Comprehensive All risks Cargo Insurance covers risk of ownership in storage and in transit Plus Misappropriation plus FOG and FOQ  Comprehensive PI and Fraud from the Collateral Controller  Adequate Middle Office to ensure accurate monitoring of market prices, stocks and portfolio management 2

C OLLAT AL C ONTROL S ERVICES ATERAL Transa nsact ction on Pe r for manc e Risks Thes ese c e com ommodi modity mark rkets h have e th thei eir ow own pec peculiar f fea eatu tures, includi ding:  Seasonal fluctuations in prices,  Differential in prices of different grades, weight and quality of a given kind of commodity,  "Differential" of the same grade, weight and qualities in different marketing centres, and  Hazards of deterioration in value during storage due to time, quality and weight .  The problem of unpredictable timing of deliveries due to inland transport and port congestion.  The risk of deterioration in the quality of the commodity to which the sales contracts are related 3

C OLLAT AL C ONTROL S ERVICES ATERAL Transacti tion P Perfor ormance Ri Risks ks ( (con ontd td.. ..) Thes ese c e com ommodi modity mark rkets h have e th thei eir ow own pec peculiar f fea eatu tures, in inclu ludin ing : g :  The risk of volatility of the price of the commodity even when the desired quality is unchanged  Disparities in the quantity and weight of the commodity  Adequacy of insurance to cover the goods whilst in storage and in transit and which can be claimed in convertible currencies offshore  The legal risks involving inadequate commercial law legislation and insufficient legal systems to ensure collateral controls during the value chain  Risks arising from logistical problems from transport system failures, poor storage facilities, etc 4

C OLLAT AL C ONTROL S ERVICES ATERAL International trade, distribution of goods and trade finance activities often require control over the underlying collateral based on the purpose of the loan, the shipping documentation, jurisdictional, legal and insurance requirements, Inventory and the receivables located in the country of import or export. ACE GLOBAL DEPOSITORY (ACE GLOBAL) is a leading Collateral Control organisation and provides sophisticated collateral control services using adequate credit support tools relevant in respect of field warehousing, collateral management, secured distribution, certified inventory control services and certified accounts receivable services, as well as field audits, inspection, monitoring, all to an international clientele. Our team comprises of operational experts , bankers, credit support personnel, legal advisors, financial officers and chartered accountants supported by the physical presence and field expertise of a worldwide network of trained inspectors, providing unique service in the field of international collateral risk management. Through its world-class systems and staff, ACE GLOBAL is able to identify and secure the weak links in value chains – or design whole and entirely secured value chains for the account of its partners in any location. 5

C OLLAT AL C ONTROL S ERVICES ATERAL Vision on, M Mission a and Objecti tives Ou Our V Vis isio ion To be the best comprehensive risk management partner in the commodity value chain Ou Our M Mis issio ion To provide custom-tailored commodity value chain solutions to stakeholders worldwide with superior end to end risk management services Our O Object ctives es To create a liquid and fully secured warehouse receipts market and promote commodity financing • To provide comprehensive and effective collateral control and risk management services • To provide accurate, timely and objective transactional loan protection to enhance and support our client's loan decision-making • To provide accurate and continuous third party monitoring, audit, inspection and reporting to stakeholders • To provide assistance to stakeholders for collection of commodity based tax and duty revenue. • To provide KYCC due diligence and Creditor Advisory services • To provide loss prevention and management services through Credit Shield • To provide Inventory Appraisal, Credit Support Risk assessment and alternate financing solutions • To provide legal and training services on financing goods and managing commodity value chains • 6

C OLLAT AL C ONTROL S ERVICES ATERAL ACE GL ACE GLOB OBAL AL – A S Snaps pshot ot FACT ACTS • Present in 40 countries worldwide • Provide asset Management to 172 financial institutions • Total assets in excess of US$ 9 billion • More than 4,800 employees HIS ISTORY RY • ACE GLOBAL, an international Collateral Control Company created in 1996 to assist :  Banks, Financial Institutions to mitigate their transactional risks inherent in local, regional and international trade.  Emergent Countries to make safe the revenues from taxes and special taxation • ACE GLOBAL commenced its operations in Uganda in 1996. End of this year, ACE GLOBAL was present in 5 countries mainly in Southern and East Africa. • From 1999 to 2008, ACE GLOBAL extended its activities in 17 countries • Since 2009, ACE GLOBAL continued its expansion with 22 new offices. • ACE GLOBAL perspective is to open soon more in Eastern Europe and Central Asia. • Currently own laboratories in 5 countries and are expanding/investing in new laboratories. • International Certification : Manual ISO 17020: 2011 duly prepared and distributed. Internal Audit underway pending certification. GAFTA & FOSFA members. 7

C OLLAT AL C ONTROL S ERVICES ATERAL Histor y of the ACE GL OBAL ’s De ve lopme nt Consol olidat idation ion an and d Fo Format ativ ive Phas ase Init In itial ial E Expan ansion on P Phas ase Secon ondar dary Expan ansion on P Phas ase Recent E Expans ansion on P Phas ase Optim imizat ation ion Founded in 1996 in 1999-2008 Creation of London operations 2009-2012 (Creation of Dubai Future Development Uganda and Geneva Branch - 2008 Headquarters) Main inly in, in, West Operat atin ing i in S Sout uthern an and d Operat atin ing m main ainly i in 1 17 c countries Operat atin ing m main ainly i in A Asia: ia: 1 17 c coun untries Afric ica, a,MENA an and d Eas astern Foc ocus on on East st A Afri rica: 5 5 countries Euro rope Uganda Switzerland UAE Saudi Arabia Performance Tanzania Ivory Coast Pakistan Estonia Kenya Nigeria Turkey Ukraine Risk management and Controls Sudan Togo Benin Russia Zambia Ghana Rwanda Latin America Cameroon Egypt Technology and Process Control Mali Indonesia Bissau Guinea Mozambique Liberia Zimbabwe Senegal Angola Sierra Leone Burundi India Djibouti Ethiopia Gambia South Africa Mauritania Singapore Morocco Brasil Thailand Argentina Vietnam 8

C OLLAT AL C ONTROL S ERVICES ATERAL ACE GL ACE GLOB OBAL AL - Ope perati tion ons Operat ation ion through A ACE sub ubsidiar idiaries, Operat ation ions t through A Agents af affiliat iates an and d as associat ates 1. Angola 22. Mozambique 1. Australia 15. Mexico 2. Belgium 2. Argentina 23. Morocco 16. Mauritius 3. Benin 24. Nigeria 3. Bulgaria 17. Madagascar 4. Brazil 25. Pakistan 4. Bangladesh 18. Portugal 5. Burundi 26. Rwanda 5. Canada 19. Romania 6. Cameroun 27. Senegal 6. Ethiopia 20. Saudi Arabia 7. Estonia 7. Cote d’Ivoire 28. Sierra Leone 21. Spain 8. Dubai (UAE) 29. Singapore 8. France 22. Syria 9. Djibouti 30. South Africa 9. Germany 23. The Netherlands 10. El Salvador 31. Sudan 10. Greece 24. Tunisia 11. Ethiopia 32. Switzerland 11. Italy/Chypre 25. Russia 12. Jordan 12. Egypt 33. Tanzania 26. Ukraine 13. Gambia 34. Thailand 13. Libya 27. USA 14. Ghana 35. Togo 14. Lebanon 28. Venezuela 15. Guinea-Bissau 36. Turkey 16. India 37. Uganda 17. Indonesia 38. Vietnam 18. Kenya 39. Zambia 19. Liberia 40. Zimbabwe 20. Mali 21. Mauritania Comp Co mpany i inco corporation un under proce cess Bahrain Saudi Arabia Panama Kingdom of Lesotho 9 Romania