Corporate Presentation

Agenda

Corporate Presentation

Analysis Tools

Current Projects

Set of Reporting

System Functionalities

Mercap Software®

Corporate Presentation

Corporate Scope

20 years of experience in the business

Mercap Software is a company focused on providing solutions to the financial market

Clients in Argentina and Latin America

Currently has decided to face a new stage of its business strategy based on global expansion in the Latam regional market as well as the international financial markets of USA and Europe

Board of Advisors

About Us

Alejandro Gabriel and Alicia Echeverría• Alejandro in Linkedin• Alicia in Linkedin

Founders

Interdisciplinary team of IT, mathematics, economics and financeTalent Team

Creation of Mercap Board of Advisors in order to emphasize its core business: the financial business

Board of Advisors

Multiple Solutions• Solutions oriented to Banks, Insurance Companies, Pension Funds, Mutual Funds,

Hedge Funds, Family Offices, Brokers y Corporates

Core Business• Systems development and support services to financial transactions through

instruments, securities and tools operating in global markets

Market Share• Mercap has a market participation of 10% in the Argentinean Financial System.

Manages AuM USD 8.5 billion

Smalltalk Technology• Mercap offers an integrated platform, using SmallTalk teconology the same one of

JP Morgan in its system KAPITAL and also the one of Thomsom Reuters in KONDOR

Integrated Platform• The software goes through all the stages of the financial transaction starting in

Front office, through Middle office and ending in Back Office

Mercap in a Nutshell

Its embedded workflow engine allows the modeling of business processes involving no additional programming

Homogeneous structure of instruments based in flows is very useful in creating and configurating VaR and stress testing

Provides flexibility in defining views for screens and reports

Algebra Group Feature

Structure of Instruments based in flows

Workflow: Speed and Adaptability

Mercap has a flexible architecture technology, which is also both robust and scalable

Its superiority lies in the design of embedded algebra, expressed in measurements rather than amounts and exchange rates

Mercap’s Strengths (I)

Multi-Currency Model

Quality Certification Mercap is a company with high focus on quality that has been certified ISO 9002: 2008 in the Services sector for all processes

Customizable products A particular benefit provided by the products ability to adapt to the specific requirements of a client according to the characteristics of its business

Globalization Mercap is able to collaborate effectively in the globalization of your business or company. The consolidation of information can occur through different ways: Multi-company, multi-branch, multi-location, multi-division

Mercap’s Strengths (II)

Financial Institutions

• Treasury• Custody• Private Banking

Portfolio Management

• Assurance Companies

• Pension Funds• Mutual Funds• Portfolio Managers• Hedge Funds• Family Offices• Brokers

Corporates

• Otreasury• Asset and Liability

Management• Financial

Investments

Targeting different types of clients:

Soluctions

FrontOffice

Middle Office

BackOffice

Functional Structure

•Fixed Income•Equities•Exchange•Money•Derivatives •Market Risk

•Performance•Valuations•Cash Flow•Positions•Results

•Operational Risk•Counterparty Risk•Investment Policies•Autorizations•Confirmations

•Settlement•Custody•Market rates •Accounting•Commissions•Fees

•Corporate Events•Parameterization•Transfers•Guarantees

• Oriented to banks managing the financial trading and custody business of a financial institution

• Competitive Advantage: completeness of the functional scope that covers all the needs of the bank

Mercap Treasury®

• Oriented to Insurance Companies, Pension Funds, Mutual Funds, Portfolio Managers, Hedge Funds, Family Offices, Brokers and Corporates

• Competitive Advantage: Set of reporting and analysis tools that provide added value to the investment management and collaborate effectively in the Portfolio Manager´s decision making process

Mercap Portfolio®

Products

National and InternationalNational:

• Banco Hipotecario• Banco Macro• Banco del Chubut• Banco La Pampa• Cardif Argentina• Caja de Previsión

Social para Abogados de la Provincia de Bs As

• Colegio de Escribanos de la Provincia de Bs As

• Consultores Asset Management (CAM)

• Nación Seguros• Provincia Vida

International:• Cardif Perú

Clients

Mercap Software®

System Functionalities

All the financial instruments available

Derivatives: Futures, Forwards, FRAs, Swaps, OptionsStructured Products with Guarantees, Repos, Credit Lines

Money Market: Call Money, Time Deposits, LoansFX: Purchase, Sale, ReposMutual Funds SharesManaged Funds

Equities, ADRs, CEDEARsFixed Income: Government Securities, Secured Loans, Financial Trusts, Guarantes, Time Deposits using Bonds

Trading OperationsFunding OperationsInternal Orders

Investment Portfolio Management and Customer Portfolios

Front Office Functionality (I)

Purchase of fixed-rate instrument

Multiple Markets: MAE, MERVAL, NYSE, NASDAQ, etc.

Managing Debt with the more complex structures by modelling their flows

Inflation-adjusted bonds, other indices, Piks, capitalized, redeemable, floating and variable rate, zero cupons, etc.

Check online cashflow and main bond indicators (Yield, Amounts, Modified Duration, DV01)

Front Office Functionality (II)

Yield Calculation of Input and Output of the underlying security.Assignment of coupons to the counterparty.

Valuation by curve, or Technical Repo rate.Modalities: Titles in warranty (with or without gauging) or Sell Buy Back.

Flexible structuring of Cashflow (online query and restructuring)

Depreciation systems

Structured Product

XdddddddFront Office Functionality (III)

MULTIPLE VALUATION CRITERIA

Issuer currency valuation and another chosen valuation (Multi-currency Model)

Multiple valuation rules for different criteria and priorities configurable by group or instrument.

MTM valuation, Theoretical (Yield curves, Curve Rates, Black & Scholes, Binomial Tree, Theoretical Valuation Forwards and Swaps Technique, Amortized Cost (IRR))

Estimating flat and forward prices.

Portfolio Valuation and its holdings

ALGEBRA GROUP ATTRIBUTE

Different views of the position based on categories created by the user (Asset Allocation, Investment Sector, etc).

Portfolios (or Sub-Portfolios) grouped by Holdings.

Front Office Functionality (IV)

Investment Policies

Investment policies configurable to suit each portfolio

Composition limits (instrument, issuer credit rating, maturity, etc.).

Credit risk limits and settlement.

Authorization and monitoring (on-line and batch) compliance with policies.

Middle Office Functionality

Process of Back Office and AccountingCash and securities settlement

Corporate Events

Maturities

Notifications

Quotes Import (Bloomberg, Reuters)

Regulatory Interfaces

Interfaces with Core and External Systems

ACCOUNTING

Accounting of events with parameterization

Multiple accounting by portfolio

Accounting restatements: Mark To Market, Accruals, Capital Adjustment Exchange difference and TIR-Market

Back Office Functionality

Mercap Software®

Set of Reporting

Fron

t Offi

ce Portfolio ValuationHistorical ProfitabilityPerformance AttributtionPosition and Analysis of Fixed Income – Shares - OptionsSensitivity Analysis

Mid

dle

Offi

ce VaRVaR Stress TestsCounterparty Credit Risk LimitTrader Credit Risk LimitComplianceMarket Risk

Back

Offi

ce Unsettled TransactionsUnconfirmed TransactionsAll vouchers

Creation of a Standard Set of Reports

Portfolio Valuation Report

El reporte muestra la Rentabilidad Mensual de una cartera o portfolio para el período seleccionado. Permite ver su evolución en el tiempo y la Rentabilidad Acumulada.

Adicionalmente, a partir de la volatilidad observada para los mismos períodos, permite el análisis de la Rentabilidad Ajustada por Riesgo y su evolución.

Profitability & Performance Report

Comparative Valuation Fixed-Income Report

Mercap Software®

Analysis Tools

Value at RiskHistorical, Montecarlo and

Parametric VaR

Histogram, Matrix of Correlations and Volatility

CurvesIRR, Spot, Forward Yield Curves for

fixed-rate instruments

Sensitivity Analysis for instrument valuation under different methods

BetasStock Portfolio Analysis

Calculation of Beta based on Capital Asset Pricing Model (CAPM)

Black-Scholes Theoretical Valuation of Options

using Black Scholes.

Greek Analysis and Implicit Volatility (Smiles)

Analysis Tools

Parametric VaR y Matrix of Correlations

Yield Curve Valuation Method

CAPM: Calculation of Beta by Portfolio

Smiles: Implicit Volatility for Options

Mercap Software®

Current Projects

Mercap in the Cloud

Web Access & Reporting

Positions and Cash Flows for Treasury

Global and Regional

Integration

Remote Approval for Limits

Five Value Added Projects

Any questions?

Thank youfor your Interest

in Mercap Software!