KANTOX Presentation May 2011

Copyright © 2011 Kantox Kantox S.L., C/ Valencia 63, 1ª, 08015 Barcelona - Spain

(+34) 931 842 998

www.kantox.com

Index

1. Executive summary

2. Benchmarking currency P2P

3. Regulation currency P2P

4. Financials

5. Market

6. Business model

7. First clients

8. Team

9. Demo

10. FAQs

2

Executive summary (1/3)

3

Our service: “A marketplace for companies to barter future

currency flows”

Trust account

Executive summary (2/3)

4

Find counterparties (other companies) to net future currency flows, at a fixed

exchange rate, and thus hedge foreign exchange risk.

USD based company

€ based company USD 1.000.000 sales with

payment in 6 months

€750.000 sales with payment in 6 months

Sign a hedging contract at spot rate € / USD 1,3334

Receives USD1.000.000

Transfers USD1.000.000

Receives € 750.000

Transfers €750.000

1

2

3 3

4 4

1

2

Executive summary (3/3)

5

CUSTOMER

RELATIONSHIP

MANAGEMENT

Telemarketing and

direct sales.

Web platform: trainning,

advice, news, blog and

hotline.

Professional social

networks and

specialized press.

DISTRIBUTION

CHANNEL

Web only.

CUSTOMERS

Importers & exporters

located in the USA and

Eurozone with flows in

these two currencies.

SME (Small Medium

Enterprises).

Later, expansion to

other countries and

currencies.

BUSINESS MODEL

Registering fee (annual): 295€.

Fee charged on each transaction to each customer: 0,68%.

Float.

KEY PARTNERSHIPS

Alumni networks.

Chambers of

commerce and public

entities linked to import-

export activities.

Consulting companies

specialized in FX and

international trade.

Professional social

networks,

KEY SUCCESS

FACTORS

Credit risk management

(default).

Market penetration

and matching: achieve

a high number of

counterparties in a short

period.

Brand recognition.

Security and

scalability of the

platform.

KEY RESOURCES

Sales team.

Technology.

COST STRUCTURE

Development and maintenance of Web platform..

Personal (IT, marketing and sales: evangelist, hotline).

Offices: requires physical presence in various countries and

continents(Europe, US and Asia).

Advertising & Marketing.

Selling proposition

Foriegn exchange peer-to-peer

hedging service based on:

Low and flat fees.

Without necessity of credit

line or warranty.

Easy-to-use and transparent.

KANTOX business model

Benchmarking currency P2P

The concept on which Kantox business idea is based, peer-to-peer

currency exchange, is a reality.

peerTransfer uses this concept to offer peer-to-peer currency

exchange mainly between foreign students and their USA

universities, and small companies (with limited amounts) in order to

reduce bank fees. In this case, it only concerns spot exchange no

forward (hedging).

Now, Currencyway, Transferwise and Midpoint offer similar services

as peerTransfer.

Note that these companies are not Kantox competitors,

they are focused on mass market and spot exchange.

6

Regulation currency P2P

7

Web Country Regulation

http://www.transferwise.com

England

Registered as a money service business by Her Majesty's Revenue and Customs (HMRC) to carry out foreign exchange and money remittance activities: certificate

number 12591871.

Under the prudential supervision of the UK Financial Supervisory Authority (FSA), regulated as a small payments provider: reference 523820.

http://www.midpoint.com

England Registered as a money service business by Her Majesty's Revenue and Customs (HMRC): certificate number

12358512.

Under the Money Laundering Regulations 2007, commercial foreign exchange

companies are treated as "Money Service Businesses" which are covered by

regulations administered by Her Majesty's Revenue & Customs

(http://www.hmrc.gov.uk/mlr/msb.htm).

Financials

8

KANTOX 2012 2013 2014 2015

Number of hedges 543 2.793 7.293 14.793

Total amount hedged 21.720.000€ 139.650.000€ 29.300.000€ 1.479.300.000€

Average amount on trust account

86.880€ 558.600€ 2.917.200€ 5.917.200€

TOTAL REVENUES 248.144€ 1.458.132 5.001.539€ 8.739.704€

In 2012, Kantox forecasts a 543 hedges with a total amount of 21.720.000€ and a related

turnover of 248.144€.

In 2015, Kantox forecasts a close to 15.000 hedges with a total amount close to

1.500.000.000€ and a related turnover of more than 8.500.000€.

Market

9 Source: OECD; US Trade Government.

* Includes only exports from the US to Germany, Belgium, France, Holland and Italy and exports from Germany, France and Italy to the US.

• Largest and most liquid market

• USD 4 billion daily

FOREX • Small and Medium

Enterprises (SME) located in the US and the Eurozone.

• Currency flows in USD and €

SME

• More than 175.000 SME (exporters & importers)

• More than USD 38 billion currency flows annually

Market*

During the launching phase, Kantox’s service offering will be focused only on SMEs located in the

US and the Eurozone with currency flows in USD and €. This way Kantox will achieve a greater

market penetration (number of counterparties registered in the Web platform) in a shorter period of

time.

Later, Kantox will expand its service offering to more countries and currencies (Pound, Yen,

Swiss Franc, etc.).

First clients

Beyond Proclinic and Solex Partners, Kantox’s first beta clients, Kantox is negotiating

with more clients to include their participation in the panel test before the public

opening of the platform in July 2011.

10

# Clients

1 Proclinic

2 Solex partners

3 Camper

4 Globalia Corp

5 Grupo Iberostar

6 Giochi Preziosi

7 Gasmar

8 Ingesdata

Business model The business model is based on 3 kind of revenues

11

# Revenue Concept Amount

1

Registering fee

(Main source of

cash)

Access to the platform during 12

months.

Credit rating.

Digital signature to sign hedging

contracts.

Due Diligence anti money laundering.

295 € annually

2

Fee per

transaction (Main

source on

revenues)

Matching with counterparties through the

platform.

Use of hedging contracts.

Currency clearing at due date.

0,68 % per transaction for

each counterparty, it means

1,36% per transaction for

Kantox.

3 Float

(Marginal) -

Interests related to the average

currency amount in the trust

account.

Team

12

Philippe Gelis - CEO & Co-Founder

MBA Toulouse Business School

6 years in strategy consulting

1 year with clients from banking sector

Antonio Rami - COO & Co-Founder

Lic. & Máster ESADE (Corporate Finance)

2 years in strategy consulting in Deloitte

1 year in Venture Capital (Inveready Seed Capital)

John Carbajal - CTO

MBA University of Chicago

Founder of www.fotocodex.com

20 years IT experience in Intel/HP, US startups

Jacob Suñol - Product Manager

Master Digital Business HEC Paris

2 years in IT consulting

Web developer

Laurent Descout – Derivatives

expert (External advisor)

Master of Art International

Economics and Finance

(Maief) - Brandeis University

USA

8 years experience with

Currency SWAPS, CDS,

CDO.

V OCATION FIN AN CE

Philippe Gelis (French)

Chief Executive Officer & Co-founder

Strategy, Investors’ relations, Finance, Human Resources

Education

Master Toulouse Business School

MBA ITESM (Corporate Finance)

Six Sigma Green Belt

Languages: Spanish, English (TOEIC 945/990) and French native.

Experience

DELOITTE - Senior Consultant - Strategy & Operations (2008-2011): Commercial Due

Diligence, Strategic planning, Business Plan, Financing modeling, Demand forecasting and

offer analysis

Axis Corporate - Senior Consultant - Banking sector (2007-2008): Process

reengineering of credit card platform Grupo Santader (ISBAN), KPI of credit card platform

Abbey Bank, Functional integration of credit card platforms Abbey Bank and GE Money

Antares Consulting - Consultant - Strategy & operations (2005-2007): Commercial Due

Diligence, Strategic planning, Business Plan, Balanced Scorecard and KPI, Strategic

planning, Business Plan, Demand forecasting and offer analysis

13

Antonio Rami (Spanish)

Chief Operations Officer & Co-founder Strategy, Investors’ relations, Operations (Web platform features), Marketing

Education

Lic. & Master ESADE (Corporate Finance)

Master Singapore Management University (Corporate Finance)

Six Sigma Green Belt

Languages: Spanish, English and German

Experience

DELOITTE Strategy & operations (2009-2011):

Process reengineering

Project design and management

e-Administration

Change management

Inveready Capital Company (2008-2009):

Strategy and financing advisor of 20 innovative and technology-based companies

Elaboration of 10 Business Plans and Financial Plans for biotechnological and software

companies

Inveready Seed Capital (2008-2009):

Due Diligence of 40 innovative companies

Investment in 3 companies

14

John Carbajal (American)

Chief Technology Officer

Strategy and development of Kantox Web Platform

Education

MBA University of Chicago, USA

Bachelor of Arts Physics - Reed College, USA

Languages: English native and Spanish

Experience

Founder of Fotocodex, SL (2005-2011): strategy and business development, Web

platform development, marketing and operations

Consultant (on going): intellectual property (patents)

Hewlett Packard, Barcelona (2000-2005): solutions’ architect (on-demand solutions)

Intel Corp, USA (1993-1998):

Advanced solutions architect

Internet R&D laboratory, emerging markets business development, evaluation and

purchase of patents, Inventor

Data and systems security (PKI and digital rights management)

Architect in High performance chipset group

Software engineer Massively Parallel Operating Systems group

Digital Vision Inc, V.P. of software engineering (1984-1992)

15

Jacob Suñol (Spanish)

Senior Engineer

Web platform engineering

Web marketing

Customer relationship management

Education

Master Digital Business Management - HEC Paris, France

Exchange and Master Thesis, École Polythecnique Fédérale de Lausanne, Switzerland

IT Engineer, Universidad Politécnica de Catalunya

Languages: Spanish native, Catalan native, English and French

Experience

Everis, Spain – IT Consultant (2010-2011): Application design for multinational

companies (utilities)

La Banque Postale, France – Marketing consultant (2010):

Elaboration of financial education strategy.

Market analysis and reporting to VP of marketing, communication and markets

EPFL – Algorithm laboratory, Switzerland – Internship (2009): Research in marketing

online and crawling.

JEDI Junior Enterprise (2006-2007):

President and manager of the education service

Development of management tools

Organization of IT 16

Laurent Descout (French)

External advisor derivatives and financial markets

SWAPS, CDS, CDO

Structured products

Financial markets

Education

Master of Art International Economics and Finance (Maief) - Brandeis University, USA

Master Banking, Finance and Insurance - Université Paris Dauphine, France

Languages: Spanish, English and French native

Experience

Vocation Finance - Senior Partner - Structured Finance (2003-2011):

Restructuration of derivatives portfolio, €3.000 millions from 2088 to 2011 :

Cross Currency swaps

CDS

CDO

Advisor in international financing operations “Tax Leveraged Lease” for public

administration, public transport companies, airlines, sealines in France, US, UK and

Sweden. Investors’ selection, negotiation and deal closing: 72 operations from

2003 to 2011, €9.000 millions financed assets

17

V OCATION FIN AN CE

How to hedge with Kantox in 4 steps?

18

Step 1 - Log in

19

Step 2 – Create your hedge

20

Step 3 – Make a “Bid”

21

Wait for your counterparty “Counterbid”

22

Step 4 – Pay and sign the agreement

At due date => Currency clearing

23

FAQs (1/2)

Is it risky to hedge corporate currency risk with the Kantox platform?

Exactly as when hedging with others institutions, a credit (counterparty) risk exists in the event of

counterparty’s default. , Kantox reduces this credit risk in 3 ways:

Clients with a high credit risk are banned from the platform.

When registering the company Kantox will give every client a credit rating provided by a

third party. With this rating being accessible to clients, Kantox clients can easily and

transparently analyze the credit risk of their counterparties at any moment they might need.

Kantox provides and makes counterparties sign hedging contracts which prevent

voluntary default. It is relevant to note that in case of default from a counterparty, Kantox

will refund the affected counterparty the commission charged for the hedge. To sum up,

being victim of a default is the same for the client as not hedging.

What happens in case of counterparty’s default? Are currency flows transferred to Kantox at

due date safe?

At due date, Kantox receives currency flows from the counterparties and brings them to a special

bank account managed by its banking partner. Kantox does not transfer currency (clear) before

having received currency flows from all/both counterparties. It means that in the event of default,

the client will be completely and immediately repaid, with no penalty.

24

FAQs (2/2)

Is it possible to cancel a hedge contract with a counterparty?

It is possible only with the agreement of all/both counterparties. In case of agreement, the

commission charged by Kantox will not be refunded. Note that there is no secondary market to sell

Kantox hedging contracts.

Is it possible to divide a currency flow in batches and have various counterparties?

It is possible and it is a way to spread counterparty risk without increasing the cost of the

hedge given that the commission charged by Kantox is a % of the amount hedged among each

contract.

Is Kantox a bank?

No, Kantox is a marketplace through which counterparties can connect up. Kantox provides hedging

contracts and manages the currency flows at due date. In this context, Kantox operates with a

banking partner and a trust account but is not a bank nor a financial institution and thus does not

require any banking license.

Is Kantox service considered a derivative?

No, the service offered by Kantox is not a derivative. In legal, tax and accounting fields it is

considered a simple exchange (barter) of currencies. This means, the tax and accounting

treatment of Kantox service does not require any specific expertise.

How does Kantox manage money laundering issues?

Kantox complies with money laundering legislation and checks legality of all the companies using

the platform.

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Contacts:

philippe.gelis@kantox.com - CEO - (+34) 678 663 297

antonio.rami@kantox.com - COO - (+34) 606 977 655

Copyright © 2011 Kantox Kantox S.L., C/ Valencia 63, 1ª, 08015 Barcelona - Spain

(+34) 931 842 998