Trade for Corporates

1. Trade for Corporates - a practical case study Metsä Finance, Nordea and GlobalTrade Corporation work together to streamline data exchange for export L/Cs from Europe

2. Speaking today: Urs Kern,Senior Market Expert, Trade and Supply Chain, SWIFT Kimmo Helle, Vice-President, Treasury Development, Metsä Group Financial Services Oy Claus Asbjörn Stehr, Head of Trade and Project Finance, Nordea Nick Pachnev, CTO, GlobalTrade Corporation Trade for Corporates – a practical case study

3. Trade for Corporates – in theory… SWIFT flows FIN MT798 SWIFT flows FileAct SWIFT flows FIN MT7xx MT798s MT798s 1 2 3 SWIFTNet SWIFTNet SWIFTNet Importer Exporter 4 Importer’s bank(s) Exporter’s bank(s) MT700 Importer sends Application for a Letter of Credit (MT798) to its bank either via FIN or FileAct Importer’s bank’s application extracts the appropriate fields from the MT 798, putting them into an Issue of Letter of Credit (MT700) and sends them to the Exporter’s bank Exporter’s bank’s application forwards the MT700 inside an MT798 to the Exporter as an Advice of Letter of Credit Exporter sends documents via FileAct to its bank (e.g. pre-checking) MT798s Documents

4. Trade for Corporates – in practice… The business requirements of the Metsä Group… KimmoHelle Vice-President, Treasury Development, Metsä Group Financial Services Oy

5. Metsäliitto Group

6. Metsäliitto: Trade Finance L/C handling Starting point: • Handling of export documentation decentralized within Metsäliitto Group • Paper and board at customer service units in the markets • Saw mills at each mill location • Plywood centralized to one location • Pulp centralized to one location • Tissue centralized to one location • Trade Finance centralized to Metsä Group Financial Services • Export documentation done for around 50 different countries

7. Metsäliitto: Targets for Trade Finance Centralization • One way of doing export documentation • One policy/principles • One process • One system (@GlobalTrade) • Trade Finance knowledge accumulated to one organisation • Consultation to users • Training of users • Focusing to smaller number of business partners (banks) • More straight forward management of relationships • Easier to develop business processes • Cost savings

8. Trade Finance Principles Uniform handling of Documentary Credits and Documentary Collections • Uniform handling of Documentary Credits and Documentary Collections means use of common IT system and common set of rules Common IT system • For Documentary Credits we use globally a commercial software @GlobalTrade • For Documentary Collections we use globally a software supplied by a selected bank Common set of rules • System and common principles guide the user to make documentation correctly and in a uniform way in every business unit of the Group

9. Trade Finance export documentary credits and documentary collections process responsibilities Trade finance process Handling of documentary credits and documentary collections Daily support to business units System support and system development Process ownership Business Units Metsä Finance Metsä Finance Metsä Finance Common principles

10. Metsäliitto: Electronic L/C handling 3) Electronic Advice/MT798 message SWIFT Alliance Lite Metsä Group Financial Services @Global Trade 5) Scanned documents checked by Nordea in Global Trade system 2) L/C advice SWIFT/MT700 Issuing-Bank 4) L/C process managed in @GlobalTrade by CSC 6) Cover letter from Nordea 1) Opening of L/C Metsäliitto group Customer Service Center 7) Original documents with Nordea´s cover letter Customer

11. Trade for Corporates – in practice… How has Nordea met Metsä Finance’s requirements? Claus AsbjörnStehr Head of Trade and Project Finance, Nordea

13. Customers • 700 thousand active corporate customers • 10 million household customers of which 7.5 million are in active customer programs • Coverage • Leading bank in the Nordic & Baltic Sea region • 1,400 branches • Rating • Moody’s: Short: P-1, Long: Aa2 • S & P: Short: A-1+, Long: AA- • Other key figures • Capitalization EUR 30bn • Total assets EUR 571bn • 36,500 employees • Market shares corporate lending • Finland: 37% • Denmark: 21% • Norway: 16% • Sweden: 14% Facts about Nordea

14. Nordea Trade Finance • Largest Nordic Trade Finance service provider • Combined Nordic market share 35-36% • Active participation in local and international ICC Banking Commissions • Member of various trade finance related international working groups • Trade Finance units in all Nordic countries, Baltic countries, Poland, Russia, London, New York, Singapore and Shanghai • One Operating Model (OOM) for Trade Finance in all Nordea units in order to: • Attract a larger share of the strong underlying business and growth potential • Harmonize and unify all processes in order to increase quality and efficiency • Awards: • “Best Trade Finance Bank” by Global Finance 2010 in Denmark and Finland • “Best Trade Bank in Nordics/Baltic’s 2010” by readers of Trade Finance Magazine

15. SWIFT MT798 pilot programme in Nordea SWIFT Alliance Lite Metsä Group Financial Services • Existing customer expectations for new innovative solutions • Willingness to support customer in the process development • Drive to pilot MT798 with Metsä Group Financial Services Oy • Teamwork with Metsä Group Financial Services Oy, GlobalTrade Corporation and SWIFT is essential for success • Opportunity to create value added service • In-house built interface from Trade Finance back office system to the SWIFT network @Global Trade

16. Opportunities for Nordea with the MT798 • Quick and smooth processing without any additional steps • Enables easy monitoring of the sent message • Safe, authenticated messaging • Solution for any local or global customer

17. Trade for Corporates – in practice… How did GTC make it happen? Nick Pachnev CTO, GlobalTrade Corporation

18. SWIFT for CorporatesExport LC

19. About GlobalTrade Corporation • GlobalTrade Corporation (GTC) is a software developer and applications service provider whose product solutions improve the world of trade finance and trade services • GTC's technology helps buyers, sellers, traders, and financial institutions communicate faster and more efficiently to free up working capital, realize cost savings, reduce risks and improve monitoring and control • Our Clients are: • Corporations that need consolidated access to multiple banks and logistic providers • Banks that require trade finance and trade services software solutions to meet their clients’ needs • Our expertise is in multi-bank financial supply chain systems 2006 Canada’s 10th Fastest Growing Company by Profit Magazine Best Independent Trade Platform/System Provider 2005, 2006, and 2007 by Euromoney’s Trade Finance Magazine Full Compliance with the 2010 criteria for the SWIFT Corporates – Trade Finance Label

20. Clients

21. Export LC advice through SWIFT • Process: • Nordea sends MT798 export LC advice or amendment through existing SWIFT interface • SWIFT delivers messages to Alliance LiteAutoclient application installed at Metsäliitto • Alliance LiteAutoclient saves message into its reception directory • @GlobalTradeUcon application transfers Export LC messages from the Lite reception directory to @GlobalTrade server over authenticated and encrypted Internet connection • @GT system allocates messages to various Metsäliitto business units • Metsäliitto employees process the messages in @GT system using web-browser

22. Solution Components & Setup Alliance Lite is a desktop SWIFT application offering SWIFT connectivity to new low volume users through the Internet. The application is installed internally SWIFT Alliance Lite Metsä Group Financial Services @Global Trade @GlobalTrade Ucon is a desktop application used for transferring files (SWIFT messages, ERP data, trade documents) from corporate internal network to remotely hosted @GlobalTrade systems through Internet.The application is installed internally @GlobalTrade Export LC System is a web-based multi-bank corporate solution for managing of Export LCs and preparation of documents. The solution can be installed internally or hosted externally. Export LC System is part of @GlobalTrade Platform that also has solutions for Import LCs, Bank Guarantees, Standbys and Documentary Collections

23. Contact Information Nick Pachnev pachnev@globaltradecorp.com W: +1 416 661 8520 M: +1 416 837 8888 GlobalTrade Corporation 2727 Steeles Ave. West, 4th Floor Toronto, ON, Canada, M3J 3G9 Tel: +1 416 661 8520 Fax: +1 416 661 2819 E-Mail: info@globaltradecorp.com For more information please visit: www.globaltradecorp.com

24. Next steps: Enhance use of the MT798 for acceptance of documents, discrepancies and payment Extend the use of SWIFT to Cash Management Roll out present functionality to other customers using SWIFT and MT798 -  harvest on the deliveries Add further functionality to the existing solution e.g. make it an integral part of a supply chain offering concept Respond to Metsä’s requeston enhanced use Use the SWIFT FileAct service for pre-checking of documents Roll out MT798 messaging to existing and new GlobalTrade clients Complete implementation of new message flows Trade for Corporates – in practice…

25. Any questions?