Europe Finance (est. 2008) is the first and the only one company in Russia which develops and promotes financial products of absolute profitability, combining best practices and tools of world’s leading hedge funds.Europe Finance Products and Services Our Best Clients Financial Engineering - Financial flows optimization - Loan Interest Rate reduction Market Risk Hedging Our Key Partners - Currency risk - Commodity risk - Float Interest Rate risk Hedge Funds Development and Support
Europe Finance SolutionsComputational Finance collect all advantages of classichedging instruments and are oriented exclusively on solution Market Risksof individual business tasks. Nowadays Europe Finance is Hedgingactively using around 150 variants of Active DerivativeStrategies.Unique experience of hedge-funds and world leadingtreasury departments Free Cash Flow Financial Decreasing Management Interest Rates Engineering Detailed business analysis Strategy creation without speculative operations Individual consultations and personal derivative experts Wide range of banks partner Positive Cash Better exchange rate and OTC instrument prices Flow Creation
Wall Street What is this all About?How can it Benefit?
Market makers Market makers and political games create a lot of unmanaged risks
Does it Matter? Currency and commodity risks have significant impact on business
Southwest Airlines results 14 Jets launched 800 employees hired Net Profit increased in 33%
Hedging Saving moneyIndependence Accurate under Better financial from rate financial flows unfavorable conditions oscillations forecasting conditions
Hedging InstrumentsFutures/Forward: Option: Combination:liability insurance right of choice individual solution
Hedging instruments Forward/Futures: Option: liability insurance right of choiceAllow to reduce risks when negative Allow to reduce risks when negative market situation market situation Futures/Forward is almost free Allow to create advantages when instrument positive market situationCan’t provide with advantages when Costs a lot of money positive market situation
Active Hedging StrategiesActive Hedging Strategies – risk-free, non-speculative strategies withthe only advantages of classic hedging instruments: Allow to reduce risks when negative Allow to reduce risks when negative market situation market situation Futures/Forward is almost free Allow to create advantages when instrument positive market situation Can’t provide with advantages when Costs a lot of money positive market situation As a result you receive costs-free instrument that provide you with possibility of using negative and positive market situation with maximum advantages for your business
Hedging Strategies Passive ActiveThe strategy allows to fix an The strategy allows to fix theexchange rate that fits your exchange rate as well as openbusiness, guaranteeing total opportunity for profiting currency risk protection from favorable market conditions
Example 100% currency risk protection. Opposite to passive hedging, active hedging allows to profit from positive market conditions40.8000 €/Р option strike40.6000 forward The strategy close40.4000 would save40.2000 1 455 000 RUR40.0000 0,4 RUR for 300 000 EUR39.8000 right to decline the contract contract39.6000 forward39.4000 purchase39.2000
Innovative approachUse innovative approach to be more successful and secured Thank you!