BRINGING ROI TO YOUR BOTTOM LINE COMMERCIAL CARD

BRINGING ROI TO YOUR BOTTOM LINE: COMMERCIAL CARD SOLUTIONS & TECHNOLOGY Sherry Hibbs, VP Sales & Relationship Management BMO Harris Bank Robin Hanselman, Director Sales US West Chrome River Stephen White, Director Corporate Sales Chrome River September , 2014

Agenda Overview 1 CHROME RIVER EXPENSE MANAGEMENT Commercial Card Best Practices Sherry Hibbs – Featuring Statistical Information on Payment Solutions 2 Expense Management Technology Best Practices Robin Hanselman & Stephen White – Featuring Technology Solutions 3 Q & A Round Table Sherry Hibbs, Robin Hanselman & Stephen White

CHROME RIVER EXPENSE MANAGEMENT Commercial Card Best Practices

Introduction Sherry Hibbs, VP Sales & Relationship CHROME RIVER EXPENSE MANAGEMENT Management BMO Harris Bank • Over 25 years of Commercial Card industry experience. • Professional experience includes senior management Commercial Card positions for card issuers - Citicorp Diners Club, US Bank, JPMC/Bank One and Bank of Oklahoma (BOKF). • In addition, professional experience includes working as the VP of Strategic Alliances for World. Travel Partners/BCD Travel (3 rd largest global travel management company) driving strategic payment solution alliances. • Strategic selling and management experience in all corporate market segments which includes Fortune 500, large, middle and small market companies.

What are Commercial Payment Solutions CHROME RIVER EXPENSE MANAGEMENT • Types of Commercial Charge Cards: – – – Master. Card Visa American Express Discover Diners Club JCB E-Payables Event Cards Declining Balance Cards Fleet Cards One Card Solution Travel & Entertainment Cards Purchasing Cards Ghost Accounts Virtual Cards Project Cards Meeting Cards Accounts Payable Cards

U. S. Commercial Card volumes are projected to grow significantly faster than GDP CHROME RIVER EXPENSE MANAGEMENT 25% 20% 15% 10% 5% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 -5% -10% Commercial Card GDP Growth *Sources: Glenbrook Commercial Card Sizing, 2012; Master. Card Analysis, 2013 Page 6

The untapped Commercial Card opportunity is tremendous in the U. S. and Canada U. S. Middle Market Segment CHROME RIVER EXPENSE MANAGEMENT Canadian Middle Market Segment Total Spend Estimate $7. 8 T 1 $1. 0 T 4 Cardable Opportunity $1. 9 T 2 $180 B 4 $121 B 3 $11 B 4 Only 1. 6% Only 1. 2% Carded Volume of total Middle Market spend is currently captured on card Sources: 1 D&B, 2013; 2 B 2 B International SME research, 2011; 3 Nilson, 2012 & Master. Card Analysis, 2012; 4 Kaiser Associates, 2012 & Master. Card Analysis, 2013 March 19, 2013

Enhanced Spend Analysis – Realign Forms of Payment Source: First Annapolis Consulting / Commercial Card Market Landscape February 2012 CHROME RIVER EXPENSE MANAGEMENT

Working Capital Management CHROME RIVER EXPENSE MANAGEMENT

Travel & Entertainment Card Best Practices • Benchmarking Peer Groups • Payment Method Analysis • Air /Hotel /Car Rental Price Audit • Rewards/Rebates • Compliance • Technology Usage CHROME RIVER EXPENSE MANAGEMENT

The Value of P-Card vs. Traditional Purchase Order Process CHROME RIVER EXPENSE MANAGEMENT Using a P-Card vs. a traditional Purchase Order process saves almost $74 per transaction $90. 77 $73. 53 saved $17. 24 Source: RPMG, 2012

Breakdown of the Value of P-Card vs. Traditional Purchase Order Process CHROME RIVER EXPENSE MANAGEMENT Using a P-Card generates savings during the sourcing, procurement, and invoice/payment/reconciliation process Breakdown of Value of P-Card vs. PO Process Source: RPMG, 2012

What can you expect from your card provider? Card Benefits and Features CHROME RIVER EXPENSE MANAGEMENT Strong Card Acceptance • Travelers and purchasing agents need strong acceptability to utilize the cards. • Acceptance for B to B transactions. Payment Terms • and Liability Options Flexible payment and liability options (individual and corporate) Customer Service • Dedicated personal representatives tied directly to your account • Customer service agents available 24/7 MCC/Supplier • Specific Control • Features Ability to block and maintain for card usage Support supply management requirements Rewards • Points to miles on major airlines • Customized reward capability • Unlimited redemption options Fraud Coverage • Included in cardmember and contractual agreements Travel Accident • Insurance • Baggage Insurance Comprehensive insurance to meet Business Travelers needs Insurance that delivers value. • Insurance that covers checked, carry –on, and delayed baggage Rebate Opportunities • Financial considerations that will vary between types of card accounts implemented. • Payment terms, annualized charge volume, and rewards participation factors in calculations. ATM Access • ATM locations worldwide CDW Insurance • Free Primary Collision Damage Insurance for car rentals Delinquency and late fees • Vary by card issuers Airport Lounges • Free access to Airport Lounges around the world Client Relationship Management • High touch field based service organization

Card Controls MCC Restrictions Specific Supplier Blocking CHROME RIVER EXPENSE MANAGEMENT This feature provides the ability to limit or block Cardholder purchases made by Merchant Category Codes (MCC). This feature has the option of restricting card usage to specific merchant types such as hotels, restaurants or office supplies. Ability to limit purchases to specific vendors and locations or block expenditures by specific supplier and location. This feature was developed at the request of corporate clients wanting to maximize arrangements on blanket orders and to allow high value transaction purchasing.

Protecting Against Fraud & Misuse CHROME RIVER EXPENSE MANAGEMENT All attempts to authorize a transaction on a card product pass through four distinct processes: Card Validation Physical Evaluation Card Blocking & Controls Early Fraud Detection Evaluation Card number and expiry passed through authorization system for accuracy, Card Validation Code (CVC) is passed and evaluated, status of card (open, closed, suspended) and available credit is checked. The authorization will be denied if any of these evaluations fail and merchant may be asked to retain card. Merchant requests Cardholder to provide identification to validate authenticity If authorization successfully passes card validation, authorization system recognizes the commercial card type, and evaluates the transaction against any organization card controls. The authorization will be denied if the transaction evaluation fails any of the pre-set controls. Authorizations undergo sophisticated review for indications of possible fraudulent use. Many fraud systems are a stand-alone platform which receives and stores real-time feed of transactional authorization responses and submits each incoming transactional authorization to a comprehensive evaluation process. Commercial Cards provide significantly less risk than other methods of payment than an organization may have in place today.

CHROME RIVER EXPENSE MANAGEMENT Data Enables Efficiency 76: 00 Minutes Enhanced data brings significant efficiency to your expense reporting system. 17: 00 35: 00 Minutes Overall Savings: 54% 20: 00 7: 00 11: 00 8: 00 6: 00 28: 00 Paper Based Source: RPMG 2013 Time for clerical/accounting personnel to reimburse expense report and reconcile payment to bank data Time for clerical employees to process and prepare an expense report for payment Time for supervisors to review an expense report submitted 14: 00 Electronic Pre-populated Time for traveler/cardholder to fill out an expense report

CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practices

Introducing Robin Hanselman Director Sales US West Chrome River CHROME RIVER EXPENSE MANAGEMENT • Robin’s background is in Finance and Accounting where she spent a number of years working as a CPA. • After finding out how much easier the right financial programs and technology can make life, she has spent the last 15 years consulting and selling financial technology solutions • Technology platforms have included everything from ERP to Investment Accounting and Accounts Payable automation • Robin has worked across many different industries and is currently specializing in Professional Services organizations such as accounting, architecture, consulting, engineering, and law firms here at Chrome River

Introducing Stephen White Director Corporate Sales Chrome River CHROME RIVER EXPENSE MANAGEMENT • Stephen has over ten years in the spend management space. • Technology platforms delivered include Concur and Chrome River. • Customers such as Celanese, Waste Management, The Staubach Company, Oxea, JC Penney and HQ Global. • Stephen was hired by Chrome River in 2012 to help drive Corporate sales growth. He currently resides in Phoenix, AZ yet is ready to get back to his home state of Texas.

Best Practices Technology Differentiators 1 2 Simple and Intuitive to Use 3 4 Ease of Integration CHROME RIVER EXPENSE MANAGEMENT – User-focused design – Completely configurable Business rules engine – Most powerful workflow – Highly flexible policy configurations – Financial Systems – enterprise data exchg – Billing systems, Payroll, Projects Broad Accounts Payable Automation Platform – EXPENSE, INVOICE, PO, ANALYTICS

CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practice #1: Automate Expense Capture

The Argument Against “Free” CHROME RIVER EXPENSE MANAGEMENT • A manual expense report costs between $20. 18 - $51. 35 to process • An optimally automated expense report is significantly less to process, ranging between $6. 25 - $7. 60 • A manual invoice process is between $14. 04 - $16. 67 per invoice • An automated invoice is again significantly less ranging between $3. 34 - $8. 32 Partially automated processes provide some cost savings but significantly less than optimally automated processes Source = Pay. Stream Advisors

Automatic Expense Capture - Example CHROME RIVER EXPENSE MANAGEMENT

Simplify Receipt Capture Snap and Send CHROME RIVER EXPENSE MANAGEMENT

CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practice #2: Have an Accountable Plan

What is it and why is it important? CHROME RIVER EXPENSE MANAGEMENT An Accountable Plan is an employee reimbursement allowance arrangement or method for reimbursing employees for business travel expenses that complies with IRS regulations. If you cannot demonstrate that you have an Accountable Plan, expense reimbursements may be considered taxable income and 1099 s must be provided to the employees incurring the expenses!

Basics of an Accountable Plan CHROME RIVER EXPENSE MANAGEMENT According the IRS: 1. The expense must have a business connection 2. Expenses must be submitted in a timely manner 3. Overpayment of expenses must be returned in a timely manner

Accountable Plan - Further Clarification CHROME RIVER EXPENSE MANAGEMENT • An advance received within 30 days of the time the expense is incurred • Expenses are adequately accounted for within 60 days after they are paid or incurred • Excess reimbursements (anything paid over and above the allowable amounts) are returned within 120 days • An employee provides an adequate accounting of outstanding advances within 120 days of receiving a periodic statement

Accountable Plan - Further Clarification Example CHROME RIVER EXPENSE MANAGEMENT

CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practice #3: Automate Policy Enforcement

Business Rules Engine þConfigurable Expense Policies þConfigurable Approval Routing Rules þConfigurable Tax Rules, etc. CHROME RIVER EXPENSE MANAGEMENT

Example - Built in Compliance Rules CHROME RIVER EXPENSE MANAGEMENT

Example - Client Specific Compliance Rules CHROME RIVER EXPENSE MANAGEMENT

CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practice #4: Have a Clear Approval Process

Suggestions for Approval Process CHROME RIVER EXPENSE MANAGEMENT 1. Consider roles and responsibilities 2. Consider how many levels of approval something truly needs 3. Would some expenses be best suited for Pre-Approvals? 4. Where do you want Finance in the process? 5. Re-think your expense audit practices 6. Let the system do the ‘dirty work’ whenever possible

The Value of Automated Approval Workflow CHROME RIVER EXPENSE MANAGEMENT • Remember the Business Rules Engine at work? • By automating the process, you can now have approvals that are triggered by specific compliance issues. • This eliminates the need to audit 100% of 100% • A much better use of valuable high-level approvers’ time.

Consider Mobile Approval Methods Approval on the go! CHROME RIVER EXPENSE MANAGEMENT

CHROME RIVER EXPENSE MANAGEMENT Expense Management Best Practice #5: Go Green - Eliminate Checks

Streamline your Payment Process • Direct ACH payments now the norm – Less potential for fraud and duplicate payments – More efficient, less work for A/P • For BOTH employee reimbursements and vendors CHROME RIVER EXPENSE MANAGEMENT

Other Benefits CHROME RIVER EXPENSE MANAGEMENT • Cost savings – No more paper checks and manual processes = savings • Efficiency • More timely payments • Enhanced Compliance

CHROME RIVER EXPENSE MANAGEMENT Expense Management Technology Best Practice #6: “Leverage your Leverage” Through Analytics and Reporting

Some Key Reporting Metrics #1 • Analyzing spend by Expense Category BENEFIT – negotiate preferred relationships with vendors • Aggregating expenses associated with Business Development or events BENEFIT - meaningful insight to ROI of these activities CHROME RIVER EXPENSE MANAGEMENT

Some Key Reporting Metrics #2 CHROME RIVER EXPENSE MANAGEMENT • Analyze Expenses by Client or Project BENEFIT – Determines the ROI of a fixed fee project.

Some Key Reporting Metrics #3 • KPI’s can be created on Open Approvals or Aging BENEFIT – Remedy bottlenecks in reimbursement cycle time • Compliance reporting BENEFIT – Can help spot individuals or groups that are at higher risk for policy violations CHROME RIVER EXPENSE MANAGEMENT

CHROME RIVER EXPENSE MANAGEMENT Q&A Round Table

CHROME RIVER EXPENSE MANAGEMENT THANK YOU! Sherry Hibbs, BMO Diners Club/Master. Card Robin Hanselman, Chrome River Technologies Stephen White, Chrome River Technologies