Global Treasury Management Banking Without Borders Program Skill Builder

1. Global Treasury ManagementBanking Without Borders Program Skill Builder Last Revised: June 2012

2. Canadian Clearing Services

3. BMO Financial Group Overview Established in 1817 as Canada’s first chartered bank Ranked 8th largest bank in North America by total assets of US $532 billion1 Offering a full range of personal and commercial banking, wealth management, correspondent, investment and corporate banking services in Canada and the U.S. Serving over 12,000,000 clients, small and large, throughout North America Serving over 800 correspondent banking relationships across 130 countries throughout the globe Serving over 40 Schedule I, II and III Banks and Credit Unions in a Direct Clearing banking partnership Nearly 1600, Branches and offices – 900+ Canada and International; 650+ in the United States 1. Source: (SNL Financial, 05/31/12)

4. BMO Financial Group F2011 Net Income by Operating Group Key Operating Data Private Client Group Personal & Commercial Banking Market Cap* US$38 billion Total Assets* US$532billion F2011 Revenue US$13.6 billion Employees* 46,500+ *As at April 30, 2012 BMO Capital Markets CORPORATE FINANCE • Initial Public Offerings • Follow-on Offerings • Convertible Securities • Mezzanine Lending • High-Yield Debt • Investment-Grade Debt • Corporate Lending • Securitization • Private Placements SALES & TRADING • Institutional Sales • Trading • Equity Research • Fixed Income Research • Investor Marketing • Investor Conferences • Account Sponsorship • Retail Distribution TREASURY SERVICES • Cash Management • Risk Management • Asset Management • Foreign Exchange • Trade Finance ADVISORY SERVICES • Mergers & Acquisitions • Strategic Advisory • Fairness Opinions • Takeover Defense • Share Buybacks • Valuation Analysis 3

5. Volume of incoming payments Volume of incoming payments Volume of outgoing payments Volume of outgoing payments Payment System Payment Quantity (daily) Quantity (daily) Value (billion, CAD/day) Value Share (%) Share (%) Quantity (daily) Quantity (daily) Value (billion, CAD/day) Value Share (%) Share (%) ( bln . ( bln . CAD/day) CAD/day) System LVTS (Wholesale) LVTS 3,100 3,100 - - 3,300 3,300 18 18 - - 20 20 18%+ 18%+ 3,100 3,100 - - 3,300 3,300 18 18 - - 20 20 18%+ 18%+ ACSS (Retail) ACSS 550,000 550,000 - - 600,000 600,000 1 1 - - 1.2 1.2 20%+ 20%+ 550,000 550,000 - - 600,000 600,000 1 1 - - 1.2 1.2 20%+ 20%+ BMO is a service provider who can demonstrate the ability to our client’s needs while leveraging cost effective clearing solutions Canadian Clearing Services BMO provides CAD clearing services to more than 800 correspondent Banks from over 130 countries. Our experience in the Canadian dollar clearing space is both extensive and tenured. The Bank’s extensive amount of support to the International Financial Institutions includes substantial commitment for all lines of business. Our Canadian clearing service offering includes: • Clearing and Settlement Systems (Outgoing and Incoming)BMO is a direct clearer in the Canadian Payments Association (www.cdnpay.ca) the national clearing and settlement system in Canada. BMO is a premier Canadian provider of domestic and international cash management services. We are a leading Canadian clearing bank, handling over two thirds of indirect banking sector clearing volumes. We are also one of the top three SWIFT network users in Canada with 125,000 SWIFT transactions per month. BMO serves 20% of Canadian households and has over 7 million personal and commercial accounts with over 36,000 staff across Canada to service them. BMO’s branch network consists of approximately 1,000 branches.

6. We are committed to partnering with the IFI team to provide pro-active sales support Canadian Clearing Services • Cash Letter Clearing and CollectionsCash letter service is available in CDN and US dollar for items negotiated on behalf of you and/or clients at your bank. We will credit your Canadian dollar NOSTRO account on our books the same business day of receipt of your items in Toronto, provided they are received prior to our same day value cut-off times. US dollar items are credited to your NOSTRO for value the following business day. Items received on collection are recorded and forwarded to the Canadian financial on which they are drawn for verification and payment. The normal time frame is 4-6 weeks from the time the check is received until the funds are posted to your account. • Encoded or Un-encoded Draft (check) Processing Clients can issue drafts on their account with us. Client’s can send us a SWIFT message or can choose to print and use their own drafts provided that samples are sent in advance for testing. The testing is to ensure both the format and encoding are in compliance with the H6 rule in accordance with the Canadian Payments Association (CPA). For details on the H6 rule refer to the CPA website at: www.cdnpay.ca/news/pdfs_news/cp_rule_h6.pdf. Alternatively, we will be pleased to arrange printing of your drafts with a minimum order of 200 drafts.

7. Cash Management Solutions for IFI We work with your Relationship Manager and clients to ensure we fully understand your needs and needs of your clients in Canada. • Payables Plus BMO can execute pension payments for approved governments (GPP) by Financial EDI, EFT, wire or check for payment in Canadian dollars. With Payables Plus you can transmit a single payment file to Bank of Montreal on a monthly basis, corresponding to each pension payment cycle. The ability to transmit a single payment file eliminates the need to support multiple file record layouts. Each file will contain all the relevant information to initiate payments by check or direct deposit (ie; electronic payments). Our Payables Plus solution can also produce and mail advices for beneficiaries receiving electronic payments. The service is also available for U.S. dollar payments destined to Canadian financial institutions.

8. We are committed to establishing a long-term partnership Information Management for IFI • Account Systems and Information Management NOSTRO (CBDS) - Client Direct Access (CDA Web)provides real-time account information on your Canadian and U.S. dollar accounts, as well as the ability to initiate transactions and immediately transfer funds. The future plan is to integrate CDA Web into our Online Banking for Business platform Domestic Banking (MECH) - Online Banking for Business provides real-time, instant and easy access to a suite of web based treasury management services in a flexible and highly secure environment. Our online platform is accessible 24 hours a day, seven days a week and is available in both English and French. Balance Reporting will provide balance and transactions information to the you and will enable you to upload the information via your cash management system to your clients.

9. BMO has an extensive suite of cash management solutions to Financial Institutions Treasury Management Solutions

10. BMO has a committed team behind our customers We are here to help you achieve your vision and take pride in your success Exemplar Client Service and Coverage Global Treasury Management Sales Team The lead in supporting cash management needs to ensure your daily banking needs operate efficiently and without interruption. Account Documentation Team Works with the team to ensure a smooth on-boarding process and keeps up to date with documentation requirements. Implementation Team Implements products and ensures a smooth transition to BMO. International Financial Institutions Relationship Director Your senior point of contact within BMO who has detailed knowledge and understanding of your business. Our Customers Technical Help Desk Team Your day-to-day technical support team to assist with queries regarding your banking portal. Global Treasury Management Product Management Team Provides expert guidance and support in ensuring BMO remains competitive in the market with our product offering. Customer Service Team Your day-to-day cash management support experts available via telephone, e-mail or fax.

11. Standard Product Suite Account (CAD & USD) Check writing capabilities Information Solutions: Online Banking for Business Platform White Label Capabilities File Connectivity MT940/BAI solutions Payables Solutions: FirstBank Automated Clearing Service (FACS) Directcheque + Enhanced Positive Pay Electronic Funds Transfer Wire Payments Tax and Bill Payments Receivables Solutions: FirstBank Cash Concentrator Service (FCCS) Wholesale Lockbox (WLBX) Note: Although this is our standard offering, all products and services are available to your clients 10

12. The BMO Canadian Checking Account Checking Accounts on BMO’s domestic or international depository platform Provides access to Canadian banking services Accounts available in Canadian and US Dollars (domestic) within Canada Your clients have access to BMO’s extensive branch network across Canada of over 1,000 branches BMO GTM Canada will bill INSERT BANK NAME for their clients activity. One lump sum debit to your account with a paper statement detailing activity per client A billing file is sent to you in comma separated value (CSV) format. This billing file is sent electronically to provide the option to manipulate the data (ie; if you choose to mark up the fees before passing them on to your client) BMO has strategic partnerships that can assist with outsourcing statement printing to your clients Overdraft limits can be made available on the checking accounts. Limits will be determined as required in conjunction with a credit facility provided by the International Financial Institutions Group and your Relationship Manager Accounts are insured in Canada by the Canadian Deposit Insurance Corporation (CDIC). 11

13. Banking Without Borders

14. BWB Program Overview

15. Banking Without Borders Program positions a powerful value proposition to Correspondent Banks What is the Banking Without Borders (BWB) Program? • BMO sells its Canadian Treasury Management product suite to Correspondent Banks headquartered in US, Canada, Europe or Asia • The Correspondent Bank then “resells” these cash management products to their client base to enable these clients to bank in Canada, while maintaining one single banking relationship with them, their primary provider • The Correspondent Bank controls the account and remains the primary contact with their client • BMO has been working with correspondent banking partners for over 20 years and currently have over a 12 partners on the BWB Program • Our program is flexible - we work with our partners to tailor our offer to their needs • Demonstrated success at driving value for correspondent banks and their clients

16. Target Market The BWB Program will meet the needs of a Bank who have clients that: • Have branches, offices or sales activities in Canada • Have business dealings in Canada but manage treasury functions from their head-office • Regularly deposit Canadian dollar instruments to their account with you • Want to collect funds, make payments and receive information from Canada – quickly and easily • Prefer a trusted source with whom they already have a local banking relationship • Do not want the complexity of managing new, multi-national banking relationships

17. Value Proposition – Differentiation Based on Relationship and Convenience More Capabilities:Protected and enhanced relationships with your clients More Resources: Minimal investment and effort More Solutions: Provide leading edge cross-border cash management and treasury solutionsto your clients New sources of Revenue The Banking Without Borders program’s value proposition is compelling for you and for your clients For You – Deeper Relationships For Your Clients – Convenience • Convenience:Maintain their banking relationship with you – their trusted banker • Seamless access to robust Canadian cash management and treasury solutions • Improved cash management • Value: Reduced cost and complexity • Service: Reduced complexity associated with other international banking relationships 16

18. Broadening product line and extending footprint BWB Flexibility: Relationship Model • Your own the Relationship: • Provide sales support • Market and price the program to your clients • Provide implementation support • Frontline for client service • BMO supports your Sales and Service Team

19. Overview of Different Models 18

20. BMO offers the full suite of treasury management services – there are no restrictions on the Canadian services we can offer Full suite of world class treasury management solutions • BMO offers the full suite of treasury management services to our Correspondent Bank partners Receivables Solutions: Lockbox Incoming Wire Payments

21. Online Banking for Business supports full single sign on and private label functionality – enhancing the end client experience Online Banking for Business Features: • Account Information for up to 120 days (Mech) • Account Transfers • AutoConnect Report Scheduling • Stop Payments • Electronic Funds Transfers • Tax and Bill Payments • File Transfers & Cross-Border Transfers • Centralized Customer Self-Administration • DirectCheque Stops and Inquiries • Wire Payments • Check Image Search • Foreign Exchange • Extended Archiving • Alerts & Notifications

22. Correspondent Bank Revenue Streams from the Program Revenue potential through traditional referrals Revenue potential through BWB Program NEW Revenue Stream Service Fees None Set your own pricing policies Foreign Exchange None FX revenue Balances None Investment income International “premiums” Premium pricing None

23. BWB End to End Program Management Approach

24. Portfolio at a Glance 23

25. BMO Will Help You Realize Your Vision Successfully transitioning to BMO means a convergence of multiple stakeholders Internal stakeholders Your existing and new clients BMO is committed to a smooth transition of your clients. We have significant experience transitioning a large number of clients and have many best practices to share Detailed Preparation Execution Exceptional Client Experience • Executive engagement and communications • Dedicated team member education • Technological and tactical client transitions • Clients know what to expect • They are prepared for the transition • Their businesses are minimally impacted by the change Correspondent Bank • Online education • Detailed project planning • Enhanced communications • KPIs are measured and reported • SLAs are reviewed and achieved • Project management • Technology enablers • Electronic implementation process/forms 24

26. BMO – Your Best Banking Without Borders Partner Global Treasury Management is a strategic priority at BMO. Our Banking Without Borders program is almost two decades old and has, year-after-year, brought financial and client success to our partner banks BMO’s capabilities meet all of your solution requirements. We recommend an integrated approach to achieve the goal of delivering all functionality Our solution is flexible Each partner bank is unique We work with our partners to tailor our solutions to meet their needs BMO has demonstrated success at driving value for our partners and our partners’ clients BMO’s differentiator is our execution model – our integrated end-to-end Banking without Borders program supports your vision and your client’s current and future financial needs in Canada: Strategic Alignment: Alignment to your mandate, objectives and specific metrics Comprehensive Products: The full range of BMO’s current and future product suite available to you with customized delivery Sales Support and Training: Dedicated sales support for complex deals, comprehensive sales tools and tailored in-person training On-Boarding: Dedicated, knowledgeable documentation, account-open and implementation specialists After Sales Support: Dedicated, professional, responsive and knowledgeable client service support 25

27. We view all aspects of the program as equally important for the success of this strategy and have dedicated resources for each Our End-to-End Program Management Approach Strategic Alignment • A flexible program tailored to suit the needs of you and your clients • A collaborative relationship to deliver on your strategy and promise to your clients Program and Products • We work with you, our banking partner, to determine the ideal solution to offer your client • Our delivery model is customized based on your client delivery strategy • The entire BMO Treasury Management product suite is available to you Sales Support and Training • Tailored training for your team • Dedicated sales support for complex deals and RFPs Implementation • Dedicated implementation support • Dedicated documentation and account opening support • All your customer implementations are handled by people who understand your strategy and are aligned to our partnership After Sales Support • Dedicated Customer Service and Help Desk support • Dedicated 1-800 number and e-mail for our partner banks

28. Regularly scheduled touch-points, at all levels of our respective organizations, ensure excellence in service delivery and drive significant value Ensuring Alignment to Drive Value • Monthly Operational Meetings • An integrated deal team approach to reviewing issues and opportunities • A detailed discussion on any general and operational question • A detailed update on progress and next steps relative to overall performance and project tracking • Comprehensive Relationship Reviews • The most comprehensive review available from any Canadian FI • Sharing and alignment of long term objectives and plans • Recommendations for best practice process and product enhancements to save you money and enable a more efficient structure • Detailed overview of solutions, transmission methods, user profiles, documentation, and usage.

29. Delivering Program Support and Success Sharing and aligning strategic initiatives Providing Best Practices to increase Program growth and efficiencies Banking Without Borders Program infrastructure such as operational and management meetings will further support transition Sharing understanding of differences between US and Canadian landscape and what it means to your clients Providing support to your Program group through: Training and Learning Tools Online Support Sales and Marketing Tools Monthly reporting on requests Dedicated support tools to help you manage your program 28

30. Overview of Execution Model Exceptional end-to-end client experience that is fully aligned with your vision 29

31. How we support the BWB Program

32. We remain behind the scenes while you remain your client’s primary contact BWB End Client Support Model If your support team needs assistance, escalates to BMO BWB support 2 1 BMO BWB Support will research and provide a response back to you Client has an Inquiry Your team will respond to your client directly 3 4

33. Roles and Responsibilities • IFI Relationship Management • Overall relationship coverage • Opportunity identification • Engage GTM Sales • GTM Sales Management • Sales Specialist of BWB Program • Work with IFI RM and client to win opportunities • Program Management • Oversight of BWB Program deliver and its overall strategy

34. Team Approach with Dedicated Resources Team Model: Manage our relationship and the success of your program Partnership:Work closely with you to meet your needs Program: Strategic focus on today and future Expertise:Dedicated POD with Banking Without Borders program training Relationship & Sales Management PODTeam Program Management Your Dedicated Team Sales Manager:Marcia Cowan Senior Sales Associate: Rebecca Patton Program Manager:Sarah Cairns Senior Product Manager: Jay Pickett Client Service: Munira Gohill, Brian Liu Help Desk:Adam Hewitt, Maria Kadomtseva, Yousouf Mohoboob Implementation:Khatra Haji, Frank Morelli Documentation: Stephanie Chan 33

35. Engage in a consultative partnership with BMO Global Treasury ManagementOur Philosophy • BMO offers a holistic approach to servicing you • We are fully engaged with our clients in the architecture of creative solutions • By understanding your business model and strategy we can offer an end-to-end service solution to you

36. Correspondent Bank Responsibilities on the BWB Program

37. Managing accounts and fee collection • You are responsible for the daily monitoring of client balances • Overdraft • Transfers • Stop Payments • Account information reporting

38. BWB Program Billing

39. Compensation Statements, Statement Delivery & Fee Collection • Summary of accounts and fees • Total activity fee posted to the your nostro account • Detailed product usage by client account Compensation Statements Statement Delivery • Electronically delivered directly to the you each month • Available between the 8th to 10th business day • Compensation statements are available in both Report and CSV formats Fee Collection • Fees are debited to the your nostro account on the 15th business day of the month • Compensation statement review • You debit your client accounts to collect the activity fees

40. Marcia Cowan – Sales Manager Global Treasury Management BMO Capital Markets T. 416-867-2796 Marcia.Cowan@bmo.com Thank you! For more information on how this program can benefit you and your customers please contact us anytime Sarah Cairns - Program Manager Global Treasury Management BMO Capital Markets T. 416-643-4342 Sarah.Cairns@bmo.com

41. Disclaimer These materials are confidential and proprietary to, and may not be reproduced, disseminated or referred to, in whole or in part without the prior consent of BMO Capital Markets (“BMO”). These materials have been prepared exclusively for the BMO client or potential client to which such materials are delivered and may not be used for any purpose other than as authorized in writing by BMO. BMO assumes no responsibility for verification of the information in these materials, and no representation or warranty is made as to the accuracy or completeness of such information. BMO assumes no obligation to correct or update these materials. These materials do not contain all information that may be required to evaluate, and do not constitute a recommendation with respect to, any transaction or matter. Any recipient of these materials should conduct its own independent analysis of the matters referred to herein. “BMO Capital Markets” is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, Harris N.A. and Bank of Montreal Ireland p.l.c., and the institutional broker dealer businesses of BMO Capital Markets Corp., BMO Nesbitt Burns Trading Corp. S.A., BMO Nesbitt Burns Securities Limited and BMO Capital Markets GKST Inc. in the U.S., BMO Nesbitt Burns Inc. in Canada, Europe and Asia, BMO Nesbitt Burns Ltée/Ltd. in Canada, BMO Capital Markets Limited in Europe, Asia and Australia, and BMO Advisors Private Limited in India. BMO does not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended to be used, and cannot be used or relied upon, for the purposes of avoiding any tax penalties and (ii) may have been written in connection with the “promotion or marketing” of the transaction or matter described herein. Accordingly, the recipient should seek advice based on its particular circumstances from an independent tax advisor. 40