TREASURY PRODUCTS AND SERVICES MANAGING FINANCIAL RISKS, ENHANCING RETURNS, ACHIEVEING INVESTMENT GOALS 2016

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1 TREASURY PRODUCTS AND SERVICES MANAGING FINANCIAL RISKS, ENHANCING RETURNS, ACHIEVEING INVESTMENT GOALS 2016

2 CONTENT PIRAEUS BANK BULGARIA RELIABLE PARTNER IN THE PRESENT VOLATILE FINANCIAL WORLD FOREIGN EXCHANGE TRADING MANAGING FX RISKS MONEY MARKETS AND LIQUIDITY MANAGEMENT IMPROVING CASH RETURNS INTEREST RATE PRODUCTS MANAGING INTEREST RATES EXPOSURE FIXED INCOME SECURITIES INVESTING IN LOW-RISK ASSETS CAPITAL MARKETS INVESTING IN HIGH RISK ASSETS COMMODITIES, INVESTMENT GOLD AND COINS TRADING MANAGING INFLATION EXPECTATIONS INSTITUTIONAL CLIENTS PROFESSIONAL PARTNERSHIP 2

INTEREST RATES EXPOSURE FIXED INCOME SECURITIES INVESTING IN LOW-RISK ASSETS CAPITAL MARKETS INVESTING IN HIGH RISK

3 RELIABLE PARTNER IN THE PRESENT VOLATILE FINANCIAL WORLD PIRAEUS BANK BULGARIA has established a well known and reliable presence on the local financial markets since It ranked among the first 10 Bulgarian banks in terms of assets in the last years and has been offering competitive financial products and services to its clients from various market segments. Main mission of the treasury activities of the bank is to provide a window towards financial markets to all its clients and to help them find the appropriate solution in the right time and at fair cost. The bank has served its clients on best execution basis in difficult and volatile times since the financial crisis in 2008, proving its qualities and prompt reaction to changing market conditions. 3

Main mission of the treasury activities of the bank is to provide a window towards financial markets to all its clients and to help them find the appropriate solution in the right time and at

4 FINANCIAL CRISES COME AND GO S&P500 Index versus CBOE VIX Volatility Index (Source: Thomson Reuters) Periods of low market volatility lead to steady trending markets. Spikes in volatility lead to sharp market drops. 4

of low market volatility lead to steady trending

5 FOREIGN EXCHANGE TRADING MANAGING FX RISKS PIRAEUS BANK BULGARIA is offering to its clients the full range of foreign exchange products (directly or via its parent company): Main mission Spot foreign exchange trading in 11 major currency pairs with individual, corporate and institutional clients. Your commercial or personal foreign currency flows can be easily converted and be available for spending or saving. Forward foreign exchange trading with tenors up to 12 months under standard general agreement with its clients. Use this tool to fix the price at which you buy or sell future currency outflows or inflows eliminating foreign exchange risk and locking the profit from your usual business transactions. Foreign exchange options (via its parent company). Additional but more complicated tool to manage your foreign exchange risk, choose wisely if and when to use it. Plain foreign exchange swap transactions in all major currencies with tenors up to 12 months Make use of temporary free funds in one currency to cover payments in another currency without taking foreign exchange risk and by paying only the interest rate differential between the two currencies. 5

Your commercial or personal foreign currency flows can be easily converted and be available for spending or saving.

6 MARKETS GO UP AND MARKETS GO DOWN EUR exchange rate versus the US Dollar (Source: Thomson Reuters) 6

7 MONEY MARKETS AND LIQUIDITY MANAGEMENT IMPROVING CASH RETURNS Money market or customer deposits in 5 major currencies: The present general low interest rate environment worldwide has decreased the money market turnover but things change, be prepared for the next interest rate cycle and manage your liquidity appropriately. Customized solutions in addition to the wide range of deposit products offered by the bank We can adapt our products to your specific needs in terms of maturity, partial withdrawal of funds, early termination etc. 7

interest rate cycle and manage your liquidity appropriately.

8 INTEREST RATE PRODUCTS MANAGING INTEREST RATES EXPOSURE Interest rate swaps in EUR and USD Interest rate cycles change over time and our loan customers should actively manage their exposure to floating interest rates such as EURIBOR and LIBOR. We can swap your floating interest payments on loans into fixed amounts so you can hedge your risk in rising interest rate environment. Interest rate Caps and Floors in EUR and USD Additional option for our customers to put a floor or a ceiling on the floating rate benchmark rate that relates to their loan payments or investment income. Combined transactions for managing the interest rate risk associated with loans extended to customers We can provide solution for your future loan payments before you complete your loan transaction with us or advise you on existing loans. 8

Interest rate Caps and Floors in EUR and USD Additional option for our customers to put a floor or a ceiling on the floating rate benchmark rate that relates to their loan payments or investment

9 One BULL and a lot of BEARS! 3M EURIBOR Rate (Source: Thomson Reuters) Long-term interest rate cycles do change 9

10 FIXED INCOME SECURITIES INVESTING IN LOW-RISK ASSETS Trading in Bulgarian government debt securities denominated in different currencies Each investor needs balancing of the portfolio at some point of time. We can give you access to the local government bond market as an individual, corporate or institutional client. Trading in government and corporate fixed income securities in all developed and selected emerging markets Fixed income markets outside Bulgaria offer tremendous and various opportunities for investments for wealthy individual clients or professional investors. We can be your partner in this process by executing your trade orders on major exchanges and markets worldwide. Custody services for client portfolios Weather you trade actively or not we will safe keep your portfolio with us and sell or transfer it when you need it. 10

Trading in government and corporate fixed income securities in all developed and selected emerging markets Fixed income markets outside Bulgaria offer tremendous and various opportunities for

11 CAPITAL MARKETS INVESTING IN HIGH RISK ASSETS Wide range of services on the local capital market: trading on the Bulgarian Stock Exchange, direct access to the exchange via internet based trading platform COBOS, repurchase agreements with Bulgarian equities for individuals (not companies) according to pre-determined credit limits for local issuers and negotiated tenors. The Bulgarian capital market has developed over the last more than 20 years, it has seen rising and declining trends so if you are active investor we are a reliable partner for your trading, portfolio safekeeping, portfolio financing and reporting. Access to all major exchanges (futures, stocks, commodities etc.) via partner securities brokerage companies at competitive costs Investment skills and needs of Bulgarian customers have developed rapidly in the last decade so money is invested on developed or emerging markets by individual investors or investment companies. If you need to purchase stock of a specific company or trade derivatives to manage your portfolio check our terms and quality of service. 11

The Bulgarian capital market has developed over the last more than 20 years, it has seen rising and declining trends so if you are active investor we are a reliable partner for your trading,

12 BUMPY RIDE SOFIX Index on the Bulgarian Stock Exchange (Source: Thomson Reuters) 12

13 COMMODITIES, INVESTMENT GOLD AND COINS TRADING MANAGING INFLATION EXPECTATIONS Trading in standard commodity derivatives on major exchanges For our more sophisticated or profiled customers we offer trading opportunities on the global commodities markets. You can use it for your main line of business or as an addition to your general investment strategy. Trading in physical gold and coins on the local market Physical gold and coins can be collectible items but also storage of value in inflationary environment. We offer excellent choices from established international mint houses, the Bulgarian National Bank and local producers. Detailed information can be found on our web site and at our branches. Repurchase of physical gold We maintain close relations to local gold trading companies and can assist you in reselling your standardized gold bars if needed. 13

Trading in physical gold and coins on the local market Physical gold and coins can be collectible items but also storage of value in inflationary environment.

14 NOT ALL THAT GLITTERS IS GOLD Spot Gold Price per ounce in US Dollars (Source: Thomson Reuters) 14

15 INSTITUTIONAL CLIENTS PROFESSIONAL PARTNERSHIP Long and diverse partnership with various types of institutional investors Pension funds, government agencies, managing companies, mutual funds, insurance companies We have offered high quality services to our institutional clients during the years in difficult or easier moments. We believe our flexibility and products are appreciated and welcome any future business projects. Reliable and professional market behavior in turbulent market conditions Our institutional clients receive full commitment and service in crisis moments arising globally or related to our shareholders. Openness towards the rapid changing market structure and technology improvements in the financial markets used by our institutional clients. 15

We believe our flexibility and products are appreciated and welcome any future business projects.

16 CONTACTS PIRAEUS BANK BULGARIA AD, TREASURY AND FINANCIAL MARKETS DIVISION 127 A, Tsarigradsko Shosse Blvd., 1784 Sofia Ivaylo Boyoukliev, Division Head, tel , boyouklievi@piraeusbank.bg Dimiter Koutelov, Head of Treasury Sales, tel , koutelovd@piraeusbank.bg Yosif Mutskov, Head of Trading, tel , mutskovi@piraeusbank.bg Konstantin Manolov, Manager Institutional Clients, tel , kmanolov@piraeusbank.bg Yuri Pchelarov, Fixed Income Securities Trader, tel , pchelarovy@piraeusbank.bg Mladenka Yankova, Securities Broker, tel , yankovam@piraeusbank.bg Web Site: Reuters Dealing: PRBS; Bloomberg: PIBS 16

+359 2 81 69 202, e-mail: mutskovi@piraeusbank.bg Konstantin Manolov, Manager Institutional Clients, tel. +359 2 81 69 206, e-mail: kmanolov@piraeusbank.

Introduction to Fixed Income (IFI) Course Syllabus

Introduction to Fixed Income (IFI) Course Syllabus 1. Fixed income markets 1.1 Understand the function of fixed income markets 1.2 Know the main fixed income market products: Loans Bonds Money market instruments