Rapid Ratings 2020 Rapid Ratings 1 A Transformation

A Transformation from Reactive to Proactive Critical Business Issue Increased costs due to unforeseen

Who We Are We provide the most sophisticated analysis on the financial health of

Accurate and actionable financial health assessments based on financial statements enable you to: ©

Partner with stronger, more innovative suppliers “Diverse businesses provide us with the greatest opportunity

Financial Health Rating © 2020 Rapid. Ratings 6

Understanding Financial Health © 2020 Rapid. Ratings 7

Accurate Financial Insight FHR®: The Standard for Financial Health Evaluate public and private suppliers

Private Company Financial Statements Assesing private companies is an age-old problem. The speedbumps include:

Private Company Analytics Private Company Outreach: Our “secret source” for gathering financial statements Rapid.

Reporting and Process © 2020 Rapid. Ratings 11

Matrix view of Risk © 2020 Rapid. Ratings 12

Financial Dialogue • Prioritize items for review • Specifics with suppliers financials called out

Peer Benchmark Report Health Score Industry Benchmark Analysis to peers © 2020 Rapid. Ratings

Mitigation & Escalation What happens when a supplier is high risk? Transparency is key

Building a Successful Program Professional Services: Program Design & Implementation End-to-End Risk Management Build

Program Proposal Program Offer: Unlimited Financial Health Rating (FHR®) reports and lookups on publicly

Business Case for [onshow. c_name] Author 1, title 01/10/2019 © 2020 Rapid. Ratings 19

Discovery Questions Driver Question [scalers; block=begin] [scalers. name] Current Value Revised Answer [scalers. value]

Discovery Questions Financial Question [financials; block=begin][financials. financial_factor] Current Value Revised Answer [financials. financial_value_p 2]

The Undeniable Benefit of Rapid. Ratings Benefits [onshow. roi [onshow. np _p 2]% v_fmt]

The Undeniable Benefit of Rapid. Ratings Year 1 Breakdown [onshow. breakdown 1_p 2] [onshow.

Transparency is Key Rapid. Ratings strives to use a consistent and understandable model for

Thank You! Author 1, title 01/10/2019 © 2020 Rapid. Ratings 39

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A Transformation from Reactive to Proactive Critical Business Issue Increased costs due to unforeseen supplier disruptions. This is of particular focus during the COVID pandemic as suppliers have come under, and will continue to experience, financial distress. Current State Future State Unrecognized risk: [onshow. c_name] lacks a comprehensive viewpoint of which key suppliers are most susceptible to financial distress When monitoring key suppliers, [onshow. c_name] will receive a predictive view based on current financial data that will identify which companies are most susceptible to financial distress caused by the COVID-19 crisis and recession Financial health assessment is a lagging point of engagement with key suppliers and not operationalized When managing a key supplier, Category Managers can utilize simple and explanatory reports that break down the financial condition of the supplier so that Category Managers can identify and prioritize the most relevant areas of concern Vulnerability to key privately held suppliers: [onshow. c_name] attempts to collect financial data from privately held companies, however this process is labor intensive and not scalable as the supplier base grows When monitoring key privately held suppliers, [onshow. c_name] can leverage a highly experienced 3 rd party to work with the suppliers to navigate through the disclosure of financial data so [onshow. c_name] can achieve visibility into the financial health of key privately held suppliers Current process is manual with very limited automation of supplier financial health monitoring When monitoring key suppliers, [onshow. c_name] can utilize financial health portfolio reporting tools (“heat map”) with customized email alert functionality, enabling users to trigger risk mitigation workflows faster and more efficiently © 2020 Rapid. Ratings 2

Who We Are We provide the most sophisticated analysis on the financial health of public and private companies in the world. Our analytics software predicts financial outcomes for your most important suppliers. We are transforming the way the world’s leading companies manage enterprise risk. We See What Others Don’t. OF THE FORTUNE 100 MILLION Number of company financials analyzed to fuel our algorithms © 2019 2020 Rapid. Ratings We work with over a quarter of the Fortune 100 companies, providing them with visibility into their business ecosystems COUNTRIES Number of countries in which we’ve sourced and rated private companies 3

Accurate and actionable financial health assessments based on financial statements enable you to: © 2020 Rapid. Ratings Partner: Identify the strongest suppliers to collaborate with Reduce: Minimize the cost of disruption and impact on brand Mitigate: Proactively identify and take action on high risk suppliers Efficiency: Improve working capital and reduce manual processes 4

Partner with stronger, more innovative suppliers “Diverse businesses provide us with the greatest opportunity to offer innovative, high-quality, cost-effective business solutions for our customers…[financial health reviews] help us work more effectively with these businesses. ” – Director of Supplier Risk, Verizon Identify and mitigate impact of suppliers likely to provide poor performance High risk suppliers are: 2 x more likely to provide very poor quality © 2020 Rapid. Ratings 2. 6 x more likely to provide very poor delivery Reduce frequency and impact of disruptions Reduced spend by 84% on a medium risk supplier that deteriorated quickly. Built inventory and dual sourced critical component helped mitigate risk prior to supplier bankruptcy. –Senior Sourcing Manager, Fortune 100 Multinational Conglomerate Increase sourcing & procurement efficiency “With Rapid. Ratings… we doubled the scope of suppliers that we had in our program and we eliminated manual work by 80%” – Director of Supplier Risk Management, Philips 5

Accurate Financial Insight FHR®: The Standard for Financial Health Evaluate public and private suppliers or vendors in an easy-to-understand 0 -100 scale. Purely quantitative assessments based upon financial statements Predictive analysis of a company’s likelihood to perform Unrivaled insight into private companies to build more resilient supply chains © 2020 Rapid. Ratings 8

Private Company Financial Statements Assesing private companies is an age-old problem. The speedbumps include: • Obtaining financial statement disclosures from private companies • Receiving up-to-date financial information consistently and at scale • Understanding the financial data behind thirdparties • Operationalizing the results into workflows © 2020 Rapid. Ratings 85% Rapid. Ratings has an upwards of 85% success rate in acquiring private company financial statements 9

Private Company Analytics Private Company Outreach: Our “secret source” for gathering financial statements Rapid. Ratings has a ~85% success rate in gathering financial statements. • Expert services refined to source financials from suppliers in 130+ countries • People and process to design, launch, and manage financial statement collection • Leverage technology to gather large volumes of financial data in a secure, confidential manner © 2020 Rapid. Ratings 10

Financial Dialogue • Prioritize items for review • Specifics with suppliers financials called out specifically • Direction for category teams on what to discuss with supplier • • Overall Risk shown Quadrant Chart Details on risk type Probability of default © 2020 Rapid. Ratings 14

Mitigation & Escalation What happens when a supplier is high risk? Transparency is key to resolving high-risk supplier issues. • Create a dialogue with your suppliers to strengthen relationships • Dive into the issues causing supplier to be high risk • Setup conversations with executives to understand improvement plans • Create mutually agreed upon action plans with clear steps © 2020 Rapid. Ratings 16

Building a Successful Program Professional Services: Program Design & Implementation End-to-End Risk Management Build a process to manage and monitor suppliers throughout their lifecycle, from onboarding assessments to mitigation plans. © 2020 Rapid. Ratings Centralized Risk Program Develop governance framework to deploy enterprise-wide creating common KPIs, reporting, and senior sponsorship aspects. Automation and Integration Implement financial health into your existing processes, via API into internal systems or partner integrations. 17

Program Proposal Program Offer: Unlimited Financial Health Rating (FHR®) reports and lookups on publicly listed companies, globally (rerated as frequently as companies release financials) Up to 50 Private Company Network Outreaches o Each refresh of the financial data constitutes a Private Company Network Outreach $300 / attempt Platform access for designated users o Up to 3 Primary Users: have full access to Rapid Ratings’ client support team via phone or email o Up to 10 Secondary Users: These users have the same access rights as Primary Users. Requests for client support must be channeled through a Primary User. Implementation and ongoing client support Annual Program Fee: $ Program Enhancements © 2019 2020 Rapid. Ratings Private Company Network Outreach Primary Users Secondary Users $10, 000 / user $500 / user Volume discounts available for additional services 18

Discovery Questions Driver Question [scalers; block=begin] [scalers. name] Current Value Revised Answer [scalers. value] [scalers; block=end] [drivers; block=begin][drivers. driver_factor] [drivers. driver_value_fr] [drivers; block=end] © 2020 Rapid. Ratings 20

Discovery Questions Financial Question [financials; block=begin][financials. financial_factor] Current Value Revised Answer [financials. financial_value_p 2] [financials; block=end] © 2020 Rapid. Ratings 21

The Undeniable Benefit of Rapid. Ratings Benefits [onshow. roi [onshow. np _p 2]% v_fmt] ROI NVP Investment 4 000 3 500 000 3 000 2 500 000 [onshow. pb [onshow. tb _p 2] Mos. _fmt] 2 000 1 500 000 1 000 500 0 © 2020 Rapid. Ratings Year 1 Year 2 Year 3 Payback Total Benefit 22

The Undeniable Benefit of Rapid. Ratings Year 1 Breakdown [onshow. breakdown 1_p 2] [onshow. breakdown 2_p 2] Implementation Operations Infrastructure [onshow. breakdown 3_p 2] [onshow. breakdown 4_p 2] Availability [onshow. breakdown 5_p 2] © 2020 Rapid. Ratings 23

Transparency is Key Rapid. Ratings strives to use a consistent and understandable model for business value. To that end you will see each benefit is measured with the same structure • Benefit: [met. metric_name] [met. description] [met. features] [met. driver_factor] [met. driver _value_fr] x x Typical Improvement [met. impac t] [met. abbr] x x [met. financial_factor] [met. financ ial_value_p 2] [met. metric_notes] = First Year © 2020 Rapid. Ratings [met. year 1_be nefits_p 2] 24