Commodity Trading COMMODITIES

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1 Commodity Trading COMMODITIES

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3 About us Enix Commodities s.r.o is a Commodity Trading investment firm founded in 2008 with the aim to manage discretionary investments for select investors in the energy commodity sector. Our fundamentals-based, macro-level investment strategy combines unique, proprietary methods of identifying market opportunities, building positions, managing risk, and extracting profits from the energy commodity markets. Having had seven years of experience in trading energy, our investment team has managed to form a successful working partnership. Enix Commodities investment strategy has an absolute return based on exposure to outright and relative value risk in the EU natural gas and electricity commodity markets. Investment themes are generated through the fundamental analysis of the macrolevel supply and demand balances for the physical commodities. The investment objective is to preserve the capital and generate absolute return through positioning the portfolios so that they are able to capture the substantial macroeconomic shifts in the supply and demand balance of these markets. As an alternative investment product, the Enix Commodity and Energy Strategies maintains a high level of liquidity in portfolio construction through the use of cash and products at the primary trading hubs. Enix Commodities is a privately-owned company Enix Commodities maintains a short chain of command to facilitate efficient decisionmaking, which ensures we act decisively to secure advantages in the interest of our partners and investors. Our executive team works in close coordination. Our team has extensive experience in the energy and the broader commodity business, global financial and capital markets, built on enduring customer relationships. Enix Commodities s reputation for delivering results reliably and over the long-term is a hard-earned asset, thus validating the confidence shown by those who rely on us. Our business Integrated Energy Trading Products and Logistics Services Enix Commodities trade energy products and solutions built around a broad range of commodities - an approach that enables our investors to meet their goals. Enix Commodities continues to diversify into new commodities, markets and segments. We are also looking for investment opportunities in strategic assets to complement our portfolio of activities. Being a vertically-integrated natural resources company enables Enix Commodities to create efficiencies that provide an excellent return on equity and allow the company to grow steadily and profitably.

4 Our solid financial track record and reputation for operational excellence has provided an ideal platform for growth, and in recent years, we have focused on expanding our operations into Asia and the Middle East.

5 Business development Our model is based on organic growth and strategic partnerships both for trading opportunities and asset origination. Over the years our activities have enabled us to develop remarkable insights into the commodity sectors that are becoming increasingly interrelated. Equally, our strong physical presence throughout the value chain helps provide knowledge and identify the path for our continued growth. The Enix Commodities business development team is led by seasoned experts predominantly from the energy, trading and finance sectors. They have extensive experience in the energy sector both in developed and emerging markets. Their skill is in the recognizing and evaluating of the partnership-based opportunities that are fundamental to our vision coming to life. Partnerships with participants in the energy markets, both global and local, have played a key role in our business to date and will undoubtedly continue to do so as we move forward. As Enix Commodities has expanded globally, we have also broadened our trading portfolio into new commodities. Who we are Founded in 2008, Enix Commodities has grown from being a European niche player in energy trading to one of the largest independent commodity trading companies, providing integrated trading products and logistics services for participants in the worldwide energy markets. Our solid financial track record and reputation for operational excellence has provided an ideal platform for growth, and in recent years, we have focused on expanding our operations into Asia and the Middle East. Enix Commodities has also added global coal and freight, emissions and renewables, natural gas and other commodities to our well-established trading activities. Our team has a long-term, integrated and committed approach to trading and portfolio management across the value chain and across products. We focus on creating innovative products and solutions, built around a broader range of commodities - all of which serves to enable our clients to meet their objectives. The company s main trading offices are based in Europe.

6 Services Trading Enix Commodities success as a trader of physical energy, metals and bulk commodities is built upon a foundation of excellence. We combine the core competencies of marketing, logistics, financing, risk management and compliance with the knowledge and insights gained from sustainable supplier and customer relationships. Leveraging this foundation enables us to identify and execute arbitrage opportunities in the global commodities marketplace: Geographic: Our relationships and logistical capabilities enable us to source physical commodities and deliver them to locations where they command higher prices. Time-related: Utilizing our storage assets, financial skills and cost controls we create and realize margins on prices that are agreed upon in advance. We have expanded our trading volumes year-on-year in line and our strategic investments in upstream, midstream and downstream asset.

7 Power & emissions Enix Commodities is involved in the trading of electricity and carbon emission units. These activities are part of the Kyoto Protocol and the European Union Emissions Trading System. Natural gas Enix Commodities is an established player in the global gas markets, physical OTC and exchange-traded. We secure medium to long-term contracts and partnerships for access to pipeline gas production, transportation and storage. Middle distillates Middle distillate trading represents a central aspect of Enix Commodities trading portfolio. We trade a full range of middle distillates, including heating oil, diesel and jet. Precious metals Enix Commodities supplies customers with purchasing and sales, risk management and market information. Our trading team has rich, in-depth experience in the commodity, global financial and capital markets, and we maintain a network in precious metal trading around the world. Foreign exchange Foreign exchange trading is at the heart of the Enix Commodities business. One of the major benefits of trading in the currency market is diversification. If you perceive strength in certain commodity prices trading in emerging market currencies from the Australian and Canadian dollars to the South African rand, Mexican peso and several other currency pairs offers further opportunities as their performance is linked to other underlying factors unique to those countries.

8 Our process Finance Central to the success of our business is the long-term relationships we have built within the global finance sector. From its inception, Enix Commodities has been successful in building long-term relationships in the financial sector and diversifying its banking partnerships. Today we work with leading global financial institutions. As a growing business Enix Commodities has always sought to establish local partnerships for its investments. Such an approach has benefited our year-on-year profitability and enabled us to increase credit lines even through the global financial crisis. Our culture is one of financial prudence. We maintain a strong liquidity position and our assets are optimally financed. Technology Continuous investment in state-of-the-art technology ensures Enix Commodities's global strategies and initiatives are supported in an efficient and secure manner. Enix Commodities maintains a number of advanced information systems serving our core business and supporting functions, including Risk, Trading and Financial systems, which consolidate trading positions and financial exposures globally on a daily basis. These allow management to monitor overall exposure and adopt appropriate measures on a timely basis. Our operations and assets-related activities are supported by an array of specialist applications, enabling global functions to work harmoniously. Enix Commodities employs a range of consistent corporate systems to support its core business, including for: Commodities trading Risk Credit management Finance Shipping and operations Compliance User collaboration Continuous investment in the state-of-the-art technology ensures Enix Commodities s global strategies and initiatives are supported in an efficient and secure manner.

9 Risk management Enix Commodities s ability to effectively manage risk within the markets in which it operates differentiates us from others in the field and has enabled our growth from the very beginning. Talent and experience guide our business, trading and transactions; and centralized risk management and finance teams are responsible for monitoring and managing risk exposure on a real-time basis, as well as for setting limits and monitoring positions. Market risk Market risk is monitored through an in-house trading system that generates realtime position and mark-to-market valuation. We also use value-at-risk (var) limits and other risk metrics including Monte Carlo simulations, scenario analysis and stress testing to measure the impact of the market price and volume movements in strategies and the portfolio profit and loss. Credit risk Credit Risk teams work very closely with the Front Office, Legal and Finance teams. Our process has proven its effectiveness throughout the economic uncertainty of the past five years. Clients are further grouped and assessed according to their credit characteristics. Liquidity risk Liquidity management helps ensure the availability of sufficient cash to meet our contractual commitments and sufficient funding to face stressed market conditions. Gunvor mainly relies on its equity-base and short-term overdraft to finance its working capital needs. We have put in place a large and diversified pool of banks to ensure availability of credit lines for our liquidity needs. Operational risk Operational risk is frequently assessed through all business lines and actions are implemented to mitigate any appearing risk. We continue to refine performance indicators to monitor the effectiveness of key operational processes and provide assurance that processes are functioning effectively. Capital management The use of capital is taken high consideration when it comes to start a new business or make a structured transaction. Our policy is to maintain a strong equity base so as to maintain banks and market confidence and to sustain future development of the business.

10 Compliance The regulatory landscape in which Enix Commodities operates is becoming ever more consistent, comprehensive and transparent. Enix Commodities is subject to regulatory authorities worldwide. Virtually every aspect of our business is affected to a greater or lesser degree by regulations covering health and safety, insurance, emission and environmental control, product, cargo, international trade and sanctions, and banking, exchange and derivatives market rules. To ensure compliance within such an extensive and constantly evolving regulatory environment, we maintain rigorous corporate protocols and a strict compliance program. This activity is overseen by our Compliance Department, which provides oversight, advice and training for the Enix Commodities trading operation. In all operations, Enix Commodities adheres to the laws and regulations to which it is subject, both international and local, in the jurisdictions in which it operates. Enix Commodities is proactive in addressing evolving compliance standards. This includes taking steps to strengthen contract language with their counterparts to enhance contractual prohibitions against trading with countries and entities under economic sanctions.

11 Want to know more? Check our latest news at: enixcommodities.com/market-news

12 Disclaimer There are substantial risks and conflicts of interests associated with Managed Futures and commodities accounts, and you should only invest risk capital. The success of an investment is dependent upon the ability of a commodity trading advisor (CTA) to identify profitable investment opportunities and successfully trade. The identification of attractive trading opportunities is difficult, requires skill, and involves a significant degree of uncertainty. CTAs have total trading authority, and the use of a single CTA could mean a lack of diversification and higher risk. The high degree of leverage often obtainable in commodity trading can work against you as well as for you, and can lead to large losses as well as gains. Returns generated from a CTA s trading, if any, may not adequately compensate you for the business and financial risks you assume. You can lose all or a substantial amount of your investment. If you use notional funding, you may lose more than your initial cash investment. Managed Futures and commodities accounts may be subject to substantial charges for management and advisory fees. It may be necessary for accounts that are subject to these charges to make substantial trading profits in order to avoid depletion or exhaustion of their assets. The disclosure document contains a complete description of each fee to be charged to your account by a CTA. CTAs may trade highly illiquid markets, or on foreign markets, and may not be able to close or offset positions immediately upon request. You may have market exposure even after the CTA has a request for closure or liquidation. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.