Wspólny Rynek. The best foreign exchange rate for corporates

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1 Wspólny Rynek The best foreign exchange rate for corporates

2 Agenda Who we are Interbank foreign exchange market Common foreign exchange market Our solutions The best foreign exchange rate for corporates Simplicity and transparency Relationships Security Summary

3 Who we are Mirosław Boniecki President of the Management Board More than 20 years of thorough professional experience in the Polish banking sector and financial markets. Initiated and managed the introduction of various standards of Polish foreign exchange, capital and money markets. Founder and member of management board of ACI Polska - Financial Markets Association. In , a deputy president of the management board at Bank BPH, chairman of Asset & Liability Management Committee of the Bank, head of International Markets Division, member of Credit Committee of the Bank, chairman of supervisory board of BPH Asset Management Company. Member of European Bank Treasurers Club representing Region of Central and Eastern Europe. In director of Treasury and Sales Department at mbank (BRE Bank). Graduate of Warsaw School of Economics (SGH) in two faculties: Home Trade and Foreign Trade, Master degree Adam Maciejewski Chairman of Market Board Capital market practitioner with 22 years of experience at Warsaw Stock Exchange (WSE) and on private market. In president of WSE and member of WSE management board. Under his leadership WSE has been chosen the best managed Exchange in CEE Region by Euromoney Magazine and WSE reached 60% of CEE trading volumes on equity markets. As a President of WSE he acquired a significant stake in the newly established Aquis Exchange in London, now trading on 13 biggest European markets. He also established the Institute of Market Research and Rating. When managing WSE he was a Board Member of Federation of European Stock Exchanges. In 2014 awarded Grand Prix Manager Award by MBA Manager Magazine. Active member of many Supervisory Boards, including banking sector and private equity market. Member of advisory committees to Warsaw University of Technology and Management Faculty of University of Gdansk. Author of many articles and essays. Jacek Michalski Chairman of Supervisory Board A partner in Allen & Overy Warsaw. Managing mergers and acquisitions projects mainly in financial and real estate sectors. Experienced in advising on the issue of shares in domestic and foreign markets. Recent examples of his transaction experience include advising Polska Grupa Energetyczna on a sale of Polkomtel SA, advising TVN SA on its strategic integration with Groupe Canal+, advising KBC Bank NV on the merger of its Polish subsidiary Kredyt Bank with Banco Santander's Polish subsidiary Bank Zachodni WBK, advising KBC NV on sale of Warta SA, advising Carlo Tassara International Group on the establishment of Alior Bank in Poland and Vattenfall AB on its acquisition of an 18.7% stake in the Polish power company ENEA S.A. via an IPO. Graduate of Warsaw University, Law degree Qualified as a legal adviser, admitted to the Chamber of Legal Advisers in Warsaw in 1996.

4 Interbank foreign exchange market No access for corporates. Interbank activity aims to deliver fx services to clients and to maximize proprietary fx trading results. Parties to interbank transaction take fx risk or pay the cost of fx spread. Interbank activity requires managing several risks and complex processes, purchase and maintenance of costly IT systems and services, employing qualified human resources in various areas. Banks are charging clients with cost of interbank spread and their cost of managing interbank activity.

5 Common foreign exchange market (Wspólny Rynek) Open market operating in accordance with the model of the stock exchange, available on the platform of Wspólny Rynek, where exporters and importers mutually exchange currencies. Market participants exchange currencies at own rate or at the rate of other market participants / market makers. Market participants do not pay the cost of interbank spread. Exporters and importers do not take a risk of each other as all orders to be executed must be 100% secured. Corporates get additional benefits thanks to participating in building community of Wspólny Rynek.

6 Currency pairs EUR/PLN USD/PLN EUR/USD GBP/PLN CHF/PLN Delivery Express delivery to all Polish banks enabling market participants effective management of liquidity on their settlement accounts in different banks. Settlement Transactions are settled on the day of order execution or on other day depending on the time of order execution. Liquidity Individual transactions up to EUR 5 mio on Notowania FX trading session or up to EUR 10 mio on Private FX session.

7 Our solutions 2/3 (trading sessions) Notowania FX 24/5 session that allows exchange of currencies at own rate or at the rate of other market participant / market maker. One order (portfolio) may be divided into many parts to be executed at own/others rate or consolidated back into portfolio. Easy FX 24/5 session enabling dealing with market makers at the best current rate of London wholesale market. Optional Order FX to be executed whenever market hits rate predefined by participant. Transactions secured by 100% cash or margin (Kaucja FX). Fixing FX Buy and sell orders are matched at 11:00 am on each business day at current mid market rate fixed at the same time (11:00 am) by Polish Central Bank (NBP). Private FX Trading session arranged at the request of market participants from 8:00 am to 5:00 pm to execute large orders at current mid market rate or at the rate agreed by market participants.

8 Our solutions 3/3 (additional services) Monitoring FX Service enabling access to market reports, alerts and scenario analysis. Moreover participant is provided with individual support in risk assessment and management. Kaucja FX Small collateral (2-3%) placed by participant enabling him fast execution of Easy FX order and later delivery of full order amount. Order FX Easy FX Order to be executed 24h/5days whenever London / New York / Tokio wholesale market hits rate predefined by participant. Grupa FX Exclusive service provided for capital groups enabling them to manage exchange of currencies between companies within the same group at agreed market rate and at convenient time.

9 The best foreign exchange rate for corporates 1/2 Exchange at own rate or at the rate of other market participant / market maker. On average 50% cost saving as compared to cost of the same transaction with bank. Free of charge additional services: Monitoring FX, Kaucja FX, Order FX. No participation costs or other costs. Free transfers to registered bank accounts of market participant. Extra discount for orders execured at own rate (Notowania FX, Easy FX). Additional savings thanks to transactions with Friends (Fixing FX).

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11 Simplicity and transparency Simplicity Comprehensive market model transactions are concluded through matching orders of exporters and importers. Intuitive and friendly internet platform wspolnyrynek.pl. Transparency Foreign exchange at own rate or at the rate of other market participant / market maker the same for selling and buying participants. Transparent cost of the service only one fee, no other cost. Clear rules regarding benefits of participation in community of Wspólny Rynek.

12 Relationships (Fixing FX and Private FX sessions) Friends Matched orders of Friends are executed with lower transaction fee. Every market participant may invite unlimited number of other corporates (Friends) to join Wspólny Rynek. Acquaintances 10% of transaction fee payable on matched orders of Acquaintances is donated to the charities selected by them. Every market participant may acquaint unlimited number of other participants (Acquaintances). Orders of Friends and Acquaintances Orders of Friends and orders of Acquaintances are matched first. Friends and Acquaintances may watch their unexecuted orders (without the name of market participant).

13 Security Wspólny Rynek does not take neither proprietary fx risk positions nor credit risk of market participants. Wspólny Rynek only connects orders of exporters and importers. Market participant does not take risk of other participants whose orders were matched with his order as every order to be executed must be secured 100% in cash. Security of settlement process executed by Wspólny Rynek was audited by Ernst & Young. All settlements related to orders and transactions are executed only through dedicated exclusively for this purpose Settlement Accounts of Wspólny Rynek in largest Polish banks. All bank transfers related to orders and transactions are settled by Wspólny Rynek only through registered and verified bank accounts of market participants. Each payment order outgoing from every Settlement Account of Wspólny Rynek in order to be executed requires double security control and authorization by two independent units according to settlement process audited by Ernst & Young. Transactions are settled on the day of order execution or on other day depending on the time of order execution. Wspólny Rynek is supervised by GIIF and GIODO.

14 Summary We are distinguished by: Simple model of the market based on matching complementary needs of corporates. Foreign exchange solution providing substantial savings as compared to cost of banks fx services, no cost of interbank spread, exchange at own rate or at the rate of other market participant / market maker. Executing large fx orders up to EUR 10 million at mid market rate on private trading sessions. Transparent cost of the service only one low fee, no admission and maintenance costs, no other costs, free of charge additional services. Additional benefits thanks to participating in building community of Wspólny Rynek. Intuitive and friendly internet platform wspolnyrynek.pl. Our ambition is to build community of corporates, that can benefit from their cooperation.

15 Contact wspolnyrynek.pl