A. UAE Exchange - An overview / Strategy

B. Factors Causing currency movements

C. BREXIT

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Contents

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Figures Say it All…

• First in the Industry

To get SWIFT membership

* Based on remittance figures reported by World Bank

6.13%share of the

Global Remittance

market*

25%Compound

annual growth rate of revenue

over last 10 years

AverageEBITDAmargin forthe last 5years

40nationalities work at UAE Exchange

Daily footfalls in UAE Exchange branches

Average age of UAE Exchange

employees Average Gearing

30%

0.82%

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An insight into the “World’s Largest Retail Remittance Brand”

Employs 9000 + people globally / 40 nationalities

Sound AML policies & procedures in line with

Global standards

Winner of several awards and accolades for business

excellence

Handled USD 32 Billion in Money transfer & USD 26 Billion in foreign exchange

Customer base of 6 Million globally, serving an

average 400,000 daily

SWIFT Membership

Over 34 years of outstanding growth

Network Spanning 31 countries with over 700

direct offices

Correspondent Bank relationship with nearly 150

banks worldwide

Agency presence in over 150 countries with more than

170,000 + locations

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Country Network

AMERICAS1. USA–35 States, 11 branches2. Canada-8 AFRICA

1. Morocco–222. Uganda-33. Kenya-14. Rwanda-25. Botswana-26. Seychelles-17. Zambia-2

ASIA PACIFIC1. Australia-352. Fiji-33. China-24. Hong Kong-45. Malaysia-156. Japan- 1

ASIA1. India-3612. Bangladesh- 13. Sri Lanka- 1

MIDDLE EAST1.UAE-1352.Oman-453.Kuwait-264.Bahrain-135.Qatar-96.Jordan-6

EUROPE1. United Kingdom-14

With over 700 Branches in 31 countries, UAE Exchange is the World’s Largest Retail Remittance Brand

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Key Partnerships

Relationship with over 150 Banks

Ability to handle in 37 different Currencies

Banks

across the

Globe

Other

Partners

Factors effecting exchange rates

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Fundamental Factors

Technical Factors

Factors effecting exchange rates

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1.Price of Oil

•Oil price up>MYR stronger>USD/MYR rate down•OPEC (Organization of the Petroleum Exporting Countries) Member Meeting.

2. Local Political-Economic Issues

•GDP growth / CPI Number / Trade Number

Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. If GDP for a country is strong, its currency will tend to rise

Consumer Price Index expresses the current prices of a basket of goods and

services in terms of the prices during the same period in a previous year.

•Commodities Price – Higher commodities price>lower USD/MYR rate

Factors effecting exchange rates

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3.Fed decision & Report

(The Fed): US central-banking system comprising of 12 regional central banks (called the Federal Reserve Banks)

•Fed rate rise>USD stronger>USD/MYR rate up

•Watch out for US employment report, unemployment claim, New Home Sales figure, Existing Home Sales figure.

Nonfarm payroll is a monthly report generated and reported by the U.S. Bureau of Labor Statistics intended to represent the total number of paid U.S. workers of any business. Data higher means USD will become stronger.

FOMC (Federal Open Market Committee) Minutes. FOMC announcements inform

everyone about the US Federal Reserves decision on interest rate.

Technical Factors

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StrengthsCan be used to analyse data over a wide range of time periods.

There are many charting tools and techniques.

WeaknessesThe past does not necessarily repeat itself.

It is based on probability not certainty.

Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements

Parabolic SAR

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Relative Strength Index (RSI)

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Is the market overbought or oversold

RSI measures the ratio of up-moves to down-moves and normalises the result so it falls between 0 and 100.

Time Line

Spot

Tom SpotCash 1Year

After Spot

Short Forward Long Forward

1Mth

Exporter’s view on the MYR Importer’s view on the MYR

Weakening

MYR

Cover Exposure

Strengthening

MYR

Cover Exposure

WeakeningMYR

Left uncovered

Strengthening

MYR

Left uncovered

Forwards – When appropriate ?

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FX Forecast

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29/08/2016 16

The Impacts of

UK Leaving EU

What is the European Union

29/08/201617

The EU is a unique economic and political partnership between 28 European countries that together cover much

of the continent.

• 28 member countries.• With the population of approximately 507.4 million people.• With an economy that generates a nominal GDP of about €14.3

trillion (US$18.5 trillion in 2014)

What is Brexit

29/08/201618

Brexit is an abbreviation of "British exit" that refers to the possibility of Britain's withdrawal from the European Union.

Reasons that leads to Brexit

• The interference of European Union.• The UK tax payers money goes directly into European

Union, £ 14.5 billion a year.• The European Union regulations cost UK businesses

over £ 600 million every week.

Impact on currency

29/08/201620

Sterling (BoE) index

• Investors are worried about the possible economic impact of a decision to leave the EU.

• The Sterling Pound was falling against all major currencies.

• It was down by 2% against US Dollar and hit the lowest since 1985.

• It’s dropped 1.3% lower against the Euro.

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Thank You

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