FX presentation September 13th 2017 How we can help you save money on foreign currency exchange exposure and international payments John Sawyer - Account Manager

Agenda Moneycorp – About Us Introduction to the FX Market Volatility and Market Movement Different ways of Buying Currency Currency Risk Strategies

About moneycorp FCA Authorised and Regulated 1962 1979 5A 1 TTT Moneycorp Limited is authorised and regulated by the Financial Conduct Authority for the provision of payment services. 1962 Company incorporated 1979 Started dealing in foreign exchange 5A 1 Strongest credit rating in the industry with D&B One stop shop Corporate, Private, Wholesale, Retail 8.1m+ Customer transactions last year £24.6bn Traded in currencies last year 10,000 corporate clients Preferred partner Telegraph, The Guardian, BCC, CNN, The Post Office, The City AM, DIT, The FT

The FX Market Largest financial market in the world - $4.4 Trillion per day FX market goes on 24 hours a day More than 85% of FX deals involve the US dollar Transactional buyers & speculators Extremely volatile and unpredictable Becoming increasingly more difficult to forecast, predict and follow Supermarket shopper

What moves the market Gdp unemployment, maufacturing data, governement popularity polls, – purchasing managers index, bombs, death of apolitical leader -

Volatility GBP / USD Scottish referendum, brexit voting, unsertainty now of brexit! Outcome, forgetting about it – will it go ahead - euro?

GBP/USD – the last 20 years.

“The only thing that is certain is uncertainty” Future volatility “The only thing that is certain is uncertainty” World events – no warning – 9/11 Article 50 Divorce Proceedings Slowdown of the Chinese Economy European Elections – Germany 9/17 FED, BOE, ECB rate rises? Trumpenomics – The Trump Effect – passing laws, making reforms, North Korea.

Different ways to transact currency Online Spot Forward Market orders Options Immediate delivery Lock in to rates longer term Target a rate and minimise risk Right but not the obligation to buy Over the phone

Spot Contract Most common way of buying / selling currency Spot contracts are generally used if you need to purchase currency and make a payment now. Spot contracts are priced from the live currency market. You are at the mercy of the market – if you have known exposure but take no cover that is taking risk. I see more and more companies moving back to the most basic cover method – as soon as risk is identified cover it and negate that risk – spot or forward.

Forward Contracts Fix todays exchange rate up to 2 years ahead Fixed or Flexible contracts Complete protection from volatility Purchase obligatory Credit implication - we need to allocate credit

Market Orders A limit order target’s a better than market exchange rate. A stop loss order allows you to set a ‘worst case’ exchange rate

Options A vanilla option gives the holder the right but not the obligation to exchange one currency for another at a specified rate on a specified date in the future. A premium is charged for this option – much the same as an insurance policy. Full Portfolio of Options Products In all sorts of weird and wonderful stuff My personal guide/rule - always keep it simple! Your money flows through segregated accounts at Barclays bank

Currency Specialists – we really can help save you money Approximately 75% of UK companies still just use their bank for FX transactions. There can be up to a 3% difference in exchange rates between different foreign exchange providers. The cost of sending an international payment can be £25-40 with some banks. Because of the ChamberFX offer we will do single payments for free. Case 1 – a N based company ‘V’ receiving USD twice monthly from export sales of their products in to the US – our comparison quote revealed they were getting 2.5% away from the real market, from their bank – our pricing now saves them £ 1600 on every transaction, x 48 = £ 75,000 a year on their average annual volume. Case 2 – an Essex based company using a swedish bank with 200 branches in the UK – dealing online getting what they believed were very tight competeitive FX prices – I went to their offices and sat with them to see that their rates were 2% each side of the real market price - 200 pips each side. We now are able to save them £ 6,000 a year on their average annual volume.

Final thoughts The currency market is extremely volatile and difficult to forecast / predict. If you have budgeted for a certain rate of exchange, the profit margins can be seriously affected by a negative turn in exchange rate. You can protect your business from potential downside through a robust foreign exchange strategy. Look to compare rates to make sure you get a good price. Consider who you work with for foreign exchange needs to ensure you get the best level of service – is it a relationship?