Knightsbridge Foreign Exchange: Foreign Exchange Industry In Canada

1
Strictly Private and Confidential
Knightsbridge Foreign Exchange Inc.
Better than bank exchange rates for Canadians
Foreign Exchange Industry in Canada
www.KnightsbridgeFX.com
2
Disclaimer
This presentation is confidential and proprietary
to, and may not be reproduced, disseminated or
referred to, in whole or in part without the
prior written consent of Knightsbridge Foreign
Exchange Inc. (Knightsbridge). This presentation
was prepared exclusively for the benefit and
internal use of the recipient for the purpose of
considering the information contemplated herein.
The information and any analyses contained in
this presentation are taken from, or based upon,
information obtained from the recipient or from
publicly available sources, the completeness and
accuracy of which has not been independently
verified, and cannot be assured by Knightsbridge.
The information and any analyses in these
materials reflect prevailing conditions and views
as of this date, all of which are subject to
change. Knightsbridge does not speculate in
foreign exchange nor does it advise its clients
to speculate in foreign exchange. Knightsbridge
only provides spot transactions for next day
settlement. Knightsbridge does not provide
advice or forward contracts or options or swaps
to its clients, this is only for informational
purposes only. The printed presentation is
incomplete without reference to the oral
presentation or other written materials that
supplement it.
3
The Problem For Small Businesses and Individuals
Requiring Currency Exchange

• Businesses and Individuals are impacted by
• Poor Foreign Exchange Rates
• Poor foreign currency exchange rates impact the
  bottom line of businesses (lack of leverage)
• Businesses overspend from 0.5 to 2 on currency
  exchange
• Lack of Proactive Service
• When was the last time your bank account manager
  called you to help you with foreign exchange?
• Lack of proactive service by account manager
• Lack of internal resources

Canadians overspend on currency exchange and are
reactive to foreign exchange movements
4
Overview of the Foreign Exchange Industry
Hedge Funds, Pension Funds, Equity Trading
0.05 - 0.10
FX to SMEs 0.10 - 0.5
Banks to SMEs 0.80 - 2.00
Retail Banks 2 - 4Airport 7-20Credit
Cards 2.5
5
Key Foreign Exchange Themes Impacting SMEs
Globalization (Global Product Sourcing)

• Globalization has caused small and medium sized
  business to source and sell internationally
  this creates a foreign exchange exposure for many
  businesses

• Uncertainty has caused increased currency
  volatility impacting cash flows of small and
  medium sized businesses
• Cost Competitiveness
• Profitability
• Valuation of Business Lines

Currency Volatility
Lack of In-House Resources

• Small and medium sized businesses do not have the
  resources internally to manage foreign exchange
  banks are not providing proactive service

Cost Cutting

• Small and medium sized businesses receive poor
  pricing from their banks and have limited
  alternatives (oligopoly)

6
Exchange Rate Comparison
FX Provider Spread
Royal Bank of Canada (RBC) 2.6
TD Bank 2.6
Scotia Bank 2.8
Bank of Montreal (BMO) 2.6
CIBC 3.3
Desjardins 2.5
HSBC 2.1
   
Knightsbridge Foreign Exchange 0.1-0.5
Exchange rates obtained from publicly available
sources or by calling the bank directly