CIBC CAPITAL MARKETS Transforming financial services and building the bank of the future

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Boutique coverage with big bank stability and reach

We are a highly-respected financial institution dedicated to delivering customized financial solutions that meet the unique

needs of our clients across the globe.

We understand that complex financial challenges require more than a one-size fits-all approach. That’s why we partner

with our clients to understand their specific requirements across a wide range of products, asset classes and geographies,

and develop specialized financial solutions to effectively meet their objectives in an ever-changing market.

A strong global counterparty

Through our major business units – Canadian Personal & Business Banking, Canadian Commercial Banking & Wealth

Management, U.S. Commercial Banking & Wealth Management and Capital Markets – our more than 45,000 employees

provide a full range of financial products and services to 10 million individual, small business, commercial, corporate and

institutional clients in Canada, the U.S. and across the globe.

Metrics 2019 2020 (As of Apr 30)

Total Assets $651.6B $759.1B

Deposits $485.7B $543.8B

Loans and Acceptances

$398.1B $420.6B

Common Equity Tier 1 Ratio 11.6% 11.3%

Market Capitalization $50.0B $36.7B

Total Shareholder Return (1-Year) 4.2% (22.6)%

Credit Ratings

DBRS Moody’s Standard &

Poor’s

Fitch Senior AA Aa2 A+ AA

Outlook Stable Stable Stable Stable

Disruptive innovation driven by our clients’ most pressing needs

CIBC has quickly become a global leader in financial technology, offering cutting-edge foreign exchange and payment

solutions to help corporate, institutional and retail clients manage risks and leverage market opportunities.

By taking advantage of technology to drive disruption within the financial services industry, CIBC is transforming the value proposition of traditional money movement solutions. CIBC is committed to working closely with its partners, to deliver creative financial solutions that address their most pressing needs and unique business challenges.

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Finding new ways to optimize cross-border payments

CIBC’s Global Payment Solution (GPS) leverages the latest payment technologies to simplify cross-border payment

acceptance and disbursements while providing our partners with new revenue opportunities, cost savings and enhanced

reconciliation capabilities.

CIBC understands the many challenges associated with making and accepting cross-border payments including:

• Uncompetitive FX conversion rates and high transaction costs

• Missing or incorrect information resulting in returned or delayed payments

• Lack of reconciliation and reporting capabilities

• Complexities issuing refunds and making other outbound cross-border disbursements

• Insufficient payment options available for international payers

• Slow payment processing timelines and inability to track payments

• Lack of Anti Money Laundering (AML) protocols

With CIBC’s GPS platform, organizations can receive funds in the local or preferred currency and payment method from

anywhere in the world. The platform also provides the ability to disburse outbound cross-border payments with zero

transfer fees and at highly competitive FX rates.

Key Service Factors and Benefits

Strong Track Record: CIBC’s extensive experience processing cross-border payments provides CIBC with the data and knowledge to optimize the client experience for all foreign currencies and countries globally.

New Revenue Opportunity: Unique opportunity to generate new revenue associated with FX conversions currently captured by intermediaries and other payment providers.

Dynamic FX Rates: CIBC’s market differentiating ability to provide access to dynamic FX rates (as quoted by Reuters or Bloomberg) that can be adjusted at any time instantaneously.

No Change to Existing Treasury Operations: CIBC’s GPS platform integrates with existing settlement processes resulting in no change to treasury operations; implementation can be completed in 2-4 weeks with minimal resource requirements.

Zero Fee Outbound Payments: Ability to disburse outbound cross-border payments with zero transfer fees and highly competitive FX rates; payments typically arrive within 24 hours with full-value settlement.

Management & Transaction Reporting: CIBC provides a full-service reconciliation portal for administrative use with access to comprehensive reporting functionality and “Big Data” analytics for strategic decision making.

Zero Fee Model: CIBC operates under a zero-fee model and will not charge for the initial implementation, payment processing or the ongoing management of the GPS platform.

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Sending Payments

CIBC has leveraged the latest payment technologies to deliver a no-fee international payment solution that allows for

cross-currency payments to be disbursed globally with zero upfront fees, regardless of payment amount or frequency.

Enhancing Operational Efficiencies

CIBC has developed an intuitive user interface to collect and store beneficiary details, resulting in a streamlined payment

process. CIBC verifies the validity of beneficiary details in real-time, reducing payment delays from input errors.

Individual Payments: Select beneficiary information for individual payment disbursement

Bulk Payments: Select the “Upload Payouts” tab to disburse mass payments with a single upload

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2

1,000.00 USD

250.00 USD

1,000.00 USD

6,901.20 CNY

1,725.30 CNY

898.43 EUR

1 USD = 6.90 CNY

1 USD = 6.90 CNY

1 USD = 0.90 EUR

CIBC disburses payments to

the beneficiaries through

direct bank-to-bank transfers

Disburse

Beneficiaries receive

payments in full with no

fees or deductions

Collect Reconcile payments with

robust management &

transaction-level reporting

Reconcile Upload either individual or

bulk payments through the

CIBC GPS platform

Upload

1 2

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Optimizing Cross-Border Payments

CIBC allows for money to be sent almost anywhere with zero lifting or intermediary banking fees. This is a major

differentiator to standard pricing models that charge a fee per transaction, or charge a percentage of the nominal amount

being sent. By removing any transaction fees associated to making cross border payments, CIBC ensures that the full value

of each transaction is received by the recipient with no additional deductions.

• The current cross-border money movement space typically utilizes multiple correspondent banks to disburse payments, resulting in delays and in most cases additional fees charged to the beneficiary.

• Other cross-border payment providers do not have access to efficient FX rates for mass disbursement of low value micro payments, resulting in significantly higher transaction costs associated with FX conversions.

Uncompetitive FX rates

Payment delays and full principal amount not

guaranteed

High cost and unpredictable fees from intermediary

banks

Complexity of managing multiple international bank

accounts

Secure bank-to-bank transfers

Payments arrive in-full with no deductions or banking fees

Next day delivery of funds

Access to highly competitive FX rates

Traditional Cross-Border Payment Methods CIBC Global Mass Payouts

$4,000

$45 $35 $23 $40

$910 $915 $927 $905

$50

Organization

instructs their

financial institution

to disburse funds

internationally

Funds arrive in deducted amounts and take several business days

to reflect in recipients’ account

Fees are deducted from

initial payment by the

beneficiary’s corporate

bank and intermediary

banks

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2

3 3 Beneficiaries receive funds typically within 24 hours with no

deductions or intermediary banking fees

Organization

uploads batch file

of payments

through CIBC’s

payment portal

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2

$4,000

$1000 $1000 $1000 $1000

Funds are

disbursed through

CIBC’s proprietary

correspondent

banking network

✓

✓

✓

✓

CIBC delivers funds faster, cheaper and with the transparency needed to feel confident about your cross-border

payment disbursements

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Accepting Payments

CIBC’s Global Payment Solution provides international payers with the convenience of making payments in their preferred

currency and selecting between a variety of payment methods.

By leveraging CIBC’s robust Foreign Exchange infrastructure along with significant investments in the latest payment

technologies, CIBC provides our partners with access to competitive FX rates for all international transactions.

International Payment Process Flow

Access to Advanced Reconciliation & Reporting

CIBC provides a comprehensive reconciliation portal for administrative use which matches all payments with the payer’s identification number. Customizable reporting at the management and transaction level is available 24/7.

Payers initiate wire payments and lock in highly competitive FX rates.

Payers can make payments by debiting fees directly from

their bank account

Payers can make payments using Visa and MasterCard Debit /

Credit cards in 70+ currencies

Payers from China can make payments in CNY using the China UnionPay network

International Bank Wire Automated Clearing House

(ACH) Visa & MasterCard China UnionPay

International payer receives invoice

Payer views invoice amount in their local or preferred currency

Payer selects their preferred payment

option to pay in their preferred

currency

CIBC will receive the funds in payer’s local or preferred currency and

convert to USD

Organization receives invoice amounts in USD along with reconciliation

reports from USD

Figure 1: Administrative Portal Dashboard Figure 2: Administrative Portal Transaction History

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Prepaid Card Services CIBC’s prepaid card program provides public sector organizations with a streamlined payment process to support a variety of spend applications. The program provides an alternative to the issuance of cheques, physical cash and vouchers where funds can be electronically disbursed quickly and securely while reducing costs and generating significant operational efficiencies.

Advantages of CIBC’s Prepaid Card Program

Cost Effective: Less expensive and more secure option for making payments with non-reloadable and reloadable funding options.

Convenience: Cardholders gain immediate access to funds everywhere VISA is accepted, including POS transactions, ecommerce transactions and cash withdrawals from ATMs.

Safety: Cards are equipped with the latest in Chip & PIN technology without the requirement to be connected to a bank account; access to funds can be blocked if the card is lost or stolen, preventing fraudulent transactions.

Financial Inclusion: Alternative to direct deposit or wire transfer for unbanked or underbanked individuals.

Control: To ensure adherence to specific program requirements card usage can be restricted from certain Merchant Category Codes.

Minimal Change Management: Relief payments can be debited centrally from a CIBC deposit account and loading of individual cards is automated through a digital Administrative Portal provided by CIBC.

Administrative Portal

CIBC provides access to an Administrative Portal to submit load instructions and download reconciliation reporting. Administrative users have the ability to submit load requests individually or through bulk upload files.

Bulk Upload

Initiate Card Load

Card Number

451123050000051

Load Amount

$500.00

First Name

Jane

Last Name

Doe

Submit for Approval

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Client Case Studies

Client Example #1

Like many organizations today, our client relied on cash, vouchers and cheques to support their staff and volunteers across the globe for travel expenditures, medical supplies and emergency relief payments. With this process, the organization was faced with many inefficiencies including:

Solution CIBC introduced a prepaid card program to manage the disbursement of funds globally. CIBC developed a unique Administrative Portal linked to a CIBC deposit account where the Prepaid Cards can be funded and managed by the client’s Treasury team centrally.

• Cards are available with one-time (non-reloadable) or recurring (reloadable) funding options

• Cards can be provided in physical or virtual form; physical cards can be mailed to individuals directly or provided centrally for onward dissemination

• Access to comprehensive reconciliation and audit reporting including outstanding balance reports and transaction history reports

Unknown foreign exchange rates

and excess transaction fees

Security risk of carrying large

amounts of cash

Lack of audit reporting and reconciliation functions

Client Example #2

Our client facilitated international payments to their global entities for emergency relief through traditional payment methods. With this process, the organization was faced with many inefficiencies including:

Solution CIBC introduced our innovative payment technologies to deliver a no-fee international payment solution that allowed for cross currency funds to be disbursed across the globe quickly and securely. CIBC also provided comprehensive reporting, reconciliation and payment tracking to streamline business operations.

• The full payment value is delivered to the recipient with same-day or next day settlement, in the local currency of the destination country, with no deductions or intermediary bank fees

• CIBC provides access to its market-differentiating ability to apply live FX rates to micro-transactions resulting in material FX cost savings and increased transparency

• Ability to automate payment disbursement and reconciliation through CIBC’s eFX portal with comprehensive transaction level and management reporting capabilities.

Payment delays and lack of

payment tracking

Unknown foreign exchange rates

and excess transaction fees

High fees and payment deductions

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Key Contacts:

Dan Sutin Head of Strategic Partnerships, Global Payment Solutions Global Markets CIBC Capital Markets 416 956-6433 dan.sutin@cibc.com

Grace Howie Associate, Alternate Solutions Group Global Markets CIBC Capital Markets 416 594-8272 grace.howie@cibc.com

This presentation is confidential and has been prepared by CIBC Capital Markets. In preparing this presentation, CIBC Capital Markets has relied without any independent verification on information provided or that is publicly available. The information and any analyses in this presentation are preliminary and is not intended to constitute a “valuation,” “formal valuation,” “appraisal,” “prior valuation,” or a “report, statement or opinion of an expert” for purposes of any securities legislation in Canada or otherwise. We are not legal, tax or accounting experts and we express no opinion concerning any legal, tax or accounting matters or the sufficiency of this presentation for your purposes. Furthermore, this printed presentation is incomplete without reference to the oral presentation, discussion and any related written materials that supplement it. These materials are confidential and are intended solely for your benefit and for your internal use only and may not be reproduced, disseminated, quoted from or referred to in whole or in part at any time, in any manner or for any purpose, without obtaining the prior written consent of CIBC Capital Markets in each specific instance. CIBC Capitals Markets is a trademark brand name under which different legal entities provide different services under this umbrella brand. Products and/or services offered through CIBC Capital Markets include products and/or services offered by the Canadian Imperial Bank of Commerce and various of its subsidiaries. Services offered by the Canadian Imperial Bank of Commerce include corporate lending services, foreign exchange, money market instruments, structured notes, interest rate products and OTC derivatives. Other products and services, such as exchange-traded equity and equity options, fixed income securities, are offered through directly or indirectly held subsidiaries of CIBC as indicated below. CIBC World Markets Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. In the United States, CIBC World Markets Corp. is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Fund. CIBC World Markets plc is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. CIBC World Markets Securities Ireland Limited is regulated by the Central Bank of Ireland. CIBC Australia Ltd is regulated by the Australia Securities and Investment Commission. CIBC World Markets (Japan) Inc. is a member of the Japanese Securities Dealer Association. Canadian Imperial Bank of Commerce, Hong Kong Branch, is a registered institution under the Securities and Futures Ordinance, Cap 571. Canadian Imperial Bank of Commerce, Singapore Branch, is an offshore bank licensed and regulated by the Monetary Authority of Singapore. CIBC Capital Markets and the CIBC Cube Design are trademarks of CIBC, used under license by CIBC World Markets Inc.