North American Trading & Logistics

Risk in your Business

• Is commodity volatility a risk to your business or an opportunity to expand margins?

• Did you know that without any investment you can make money from commodity volatility?

• NATL is a turn key risk management solution provider that does not require an investment in wages, salary, or equipment.

Who is North American Trading & Logistics?• NATL focuses on market timing, forward buying, and formula

pricing of cash commodities • NATL’s actions are thoroughly researched and based on

probabilities• NATL is a resource that works throughout a client’s supply

chain• Our services fall into three areas – Different customers use

different serviceso Consulting Serviceso Risk Management o Sourcing agent

• Our goal is to provide our customers with actions that convert commodity volatility into increased savings / earnings

•Creating a process for risk management

•Negotiation support

•Correlate client’s product cost history to commodity market quotes

Consulting

Strategy. Security. Success.

•Build a portfolio of risk management activities.

•Holder of Cash Inventory

•Forward Pricing

Risk Management

•Provide visibility to discounted surplus inventory

•Private Label or Packer Label sourcing

•Direct Ship

•Logistics / warehousing

Sourcing Agent

Consulting Services

• NATL – industry professionals with 90 years combined experience in food commodity procurement: o Creating a customized process for commodity risk management:

• We know which items are candidates for your commodity portfolio• We can help you and your vendors collaborate to get results

o Negotiation support • Identification of commodity cost components• Validate relationship of commodity market to purchase cost history

o Benchmark current activities to publicly reported commodity markets

• Use USDA, Urner Barry, Milling and Baking, and many other information sources

• Link publicly reported markets changes to clients purchase decisions

Risk Management • NATL applies Portfolio

Theory across a customer’s cash commodity needso Actions are taken when data

shows >70% accuracy and >30% annualized ROI

• History has shown our portfolio’s return to range between 10%-45% since inception (2002)

• Individual Forward Buy activity is doomed to fail “One oh darn offsets ten atta boys”

• Use combination of inventory buys and forward price commitments.

-30%

-20%

-10%

00%

10%

20%

30%

40%

50%

60%

Individual Forward Buy

Individual Forward Buy

70% of Years 30% of Years

10%

20%

30%

40%

50%

Portfolio

Portfolio of Forward Buys

Range of Annualized Margin

Sourcing Agent • NATL is able and willing to purchase items for resale

to our clients.o Know when surplus inventory is sold at discountso Direct shipo Store and hold

• Take advantage of opportunities through inventory• Turn demand and inventory requirements into a profit center

o Logistics Support • 3rd Party Warehouse Management• Quality Control in Accordance with Customer Specs• Transportation Solutions• Economic Order Quantity recommendations

References and Other Information

• References are available upon request• For more information please check our website:

http://natlcommodities.com

Conclusion

• NATL is a cost effective way to enlist cash commodity experts that can supplement your Supply Chain and increase your savings and profits.

• If company name can provide us with purchase history on major commodities, after signing a confidentiality agreement NATL is prepared to quantify your portfolio’s historical returns.

Portfolio Example

Beef - CH Inside Round, 42% Anualized ROI w/88% Positive Return

1

1.2

1.4

1.6

1.8

2

2.2

2.4

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

Decision Rule: Buy 80% of Prev High after is starts going up; Sell if >$0.15/lb gain or after 26 weeks.

Price Buy Sell

Pizza Flour

10 year flour history

17.00

18.00

19.00

20.00

21.00

22.00

23.00

24.00

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53

week

$/c

wt

Component Management Market Value Flour Management

Month 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 Average

Jan $ 0.918 $ 1.678 $ 1.356 $1.129 $ 1.168 $ 0.928 $ 1.189 $ 1.148 $ 0.699 $ 0.961 $ 0.976 $ 1.104

Feb $ 0.771 $ 1.501 $ 1.430 $1.158 $ 1.158 $ 0.959 $ 1.118 $ 1.215 $ 0.683 $ 0.742 $ 0.931 $ 1.060

Mar $ 0.693 $ 1.251 $ 1.411 $0.949 $ 1.126 $ 0.769 $ 0.842 $ 1.220 $ 0.647 $ 0.663 $ 0.982 $ 0.959

Apr $ 0.675 $ 1.183 $ 1.321 $0.811 $ 1.160 $ 0.658 $ 0.769 $ 1.218 $ 0.582 $ 0.591 $ 1.029 $ 0.909

May $ 0.684 $ 1.090 $ 1.320 $0.807 $ 1.160 $ 0.647 $ 0.750 $ 1.011 $ 0.664 $ 0.550 $ 0.994 $ 0.880

Jun   $ 1.032 $ 1.320 $0.800 $ 1.160 $ 0.653 $ 0.749 $ 0.940 $ 0.693 $ 0.546 $ 0.910 $ 0.880

Jul   $ 1.091 $ 1.320 $0.829 $ 1.163 $ 0.807 $ 0.712 $ 0.964 $ 0.628 $ 0.546 $ 0.911 $ 0.897

Aug   $ 1.100 $ 1.328 $0.829 $ 1.195 $ 0.920 $ 0.752 $ 0.980 $ 0.688 $ 0.544 $ 0.983 $ 0.932

Sep   $ 1.160 $ 1.395 $0.859 $ 1.219 $ 1.006 $ 0.919 $ 0.986 $ 0.798 $ 0.608 $ 1.096 $ 1.005

Oct   $ 1.218 $ 1.460 $0.957 $ 1.072 $ 0.807 $ 0.819 $ 0.948 $ 0.872 $ 0.498 $ 1.041 $ 0.969

Nov   $ 1.109 $ 1.473 $0.981 $ 1.052 $ 0.792 $ 0.765 $ 0.847 $ 0.961 $ 0.426 $ 0.893 $ 0.930

Dec   $ 0.966 $ 1.556 $1.091 $ 1.063 $ 0.916 $ 0.765 $ 1.005 $ 1.003 $ 0.458 $ 0.895 $ 0.972

Nov Buy $ 1.109 $ 1.473 $ 0.981 $1.052 $ 0.792 $ 0.765 $ 0.847 $ 0.961 $ 0.426 $ 0.893

Jan/Feb Sell $ 0.844 $ 1.589 $ 1.393 $1.143 $ 1.163 $ 0.943 $ 1.153 $ 1.181 $ 0.691 $ 0.851

Difference $ (0.264) $ 0.116 $ 0.412 $0.091 $ 0.371 $ 0.179 $ 0.307 $ 0.221 $ 0.264 $ (0.042)

% Gain/Loss -23.83% 7.88% 41.97% 8.66% 46.89% 23.39% 36.21% 22.98% 62.00% -4.65%

Success Rate 80.00%

Annualized ROI 66.44%

Jumbo Chicken Wing Example

Example Portfolio

(20,000)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

Ne

t P

rofi

t

Portfolio = $73M Beef = $25M Chicken = $23M Flour = $25M

Appendix

Team and Commodities TradedTom ChristensenTom brings 35 years of industry experience, including his background as an economist and consultant for industry-leaders Data Resources, Inc and Informa Economics (formerly Sparks Company). Tom spent 30 years in commodity procurement and sales at The Pillsbury Company, Sara Lee Meat Group and Gordon Food Service. Tom founded NATL with the mission of using a disciplined analytic approach to add value to day-to-day purchasing and sales activities within the food industry. In addition to his General Manager role, Tom oversees all beef market activities. Tom has a Bachelors in Economics and a Masters in Agricultural Economics from Michigan State University.

Mike MaddoxMike combines over 20 years of experience in procurement and risk management, including executing private label procurement programs at Hickory Farms and NATL. His career includes experience with beef, dairy products, pork, potatoes, poultry, vegetables and non food restaurant supplies with Bill Knapps. Mike’s current responsibilities include pork, poultry, and dairy. Mike has a Bachelors in Accounting from Western Michigan University.

Team and Commodities Traded

Ellis StichEllis earned his Bachelor’s of Science degree in Animal and Dairy Science from Auburn University and his Master’s of Agriculture in Agricultural Economics from Texas A&M University. Since 1987 he has traded soy and soy products, corn, wheat, oats, canola, rice, chicken, beef, pork, seafood, dairy products, and energy for processors, Central Soya and ADM, and manufacturers, Sara Lee and Gerber Products Company. At NATL Ellis is responsible for activities in the soft commodity areas. Ellis is National Association of Securities Dealers Series 3 licensed.

Andy Belen Andy earned his Bachelor of Arts degree in Supply Chain Management from Michigan State University. In 2006 he worked for Georgia Pacific and in 2007 joined NATL as a Logistics Analyst. He is currently responsible for all of NATL’s supply chain activities as well as trading and risk management responsibilities pertaining to chicken, pork, beef, turkey, dairy and soybean oil.

Team and Commodities Traded

Tim GravesTim has been with NATL since graduating from Western Michigan University with a degree in Business Administration in Integrated Supply Chain Management. Tim’s areas of focus are in logistics and inventory control for a large steak cutting customer and collaborating on beef procurement. Tim has opened new opportunities for NATL by establishing a beef export program to Canada.