Reports 2016 – 2021 CTRM Market Outlook | Page 3

2016 - 2021 CTRM Market Outlook from this market sizing analysis include: / L  ogistical management capabilities not associated with core trading requirements, such as truck, rail or ship track- ing software /  Treasury and treasury-oriented credit functionality /  Production modeling or optimization software for indus- tries such as oil and gas production, mining or agriculture /  Applications for managing physical facilities, such as pow- er generation, mines, gas plants, pipelines, refineries, mills, or other processing plants /  The modules or functional components of ERP applica- tions (such as JDE, SAP and Oracle Financials) that are not directly related to trading or commodity marketing ac- tivities /  Applications intended to capture and manage only fi- nancial instruments or products (which may or may not include financial commodities) and otherwise provide no capability for capturing, valuing, or tracking physical com- modities /  Supply chain management and optimization applications that cannot capture, manage, or value traded commodities based upon the unique physical characteristics of those commodities /  Software products related to the metals recycling and waste management segments. In this report, we examine both the most recent full year re- sults and, based upon our analysis of market development and drivers, provide a 5-year forecast of future market growth along a number of dimensions. The 2016 CTRM market size presented here is a “bot- tom-up” estimate that reflects our analysis of the financial per- formance of all vendors known to us to be servicing the global CTRM market that meet the criteria for inclusion delineated above. The data that forms the basis for this market size esti- mate has been gathered in a variety of ways - including financial results provided via confidential conversations with many of the vendors, published financial or operational data from others, and other sources of market intelligence (employee counts, geographic location of those employees, announced deals, etc.) that provides the basis for calculating estimated financial and operational results. Establishing a forecast of future performance for any mar- ket, particularly one as complex as commodity trading and risk management, is a difficult exercise and is impossible to com- plete with absolute certainty. Market forecasting, being a for- ward-looking exercise, must take into account a complex array of factors and assumptions. These assumptions include over- all economic conditions, regional or national market develop- ments, forces encouraging new market entrants, historical buy- ing patterns of existing market participants, technology drivers encouraging new purchases, and the number and capabilities of product vendors servicing the needs of the market. The data for both the 2016 actual results and the 5 year forecast is presen