Ayming: Feedback

The Challenge

Ayming, a leading consultancy firm specializing in improving business performance, operates in multiple countries across Europe and North America. As their international presence expanded, the exposure to currency risk also increased, especially in currencies like the US dollar (USD), Canadian dollar (CAD), British pound (GBP), and Polish zloty (PLN). By 2021, the company was generating 10% of its revenue in GBP, 5% in USD, 5% in CAD, and 3% in PLN. This growing international revenue posed a significant challenge during the annual financial closing, where exchange rate fluctuations led to substantial conversion discrepancies. Ludovic Charbonnier, Group Treasurer at Ayming, noted that converting these foreign currency amounts into euros resulted in "quite significant discrepancies" during year-end closings, impacting financial reporting and accuracy.

This exposure to exchange rate fluctuations highlighted the need for a more robust and reliable solution to manage currency risk, optimize exchange rate conversions, and mitigate potential losses. Ayming sought a tool that could offer real-time visibility into their currency positions and help address the increasing complexities of their multi-currency operations.

The Solution

In their search for a solution, Ayming turned to DeftHedge in 2021. DeftHedge offered a SaaS platform capable of consolidating exchange rate exposures, generating detailed reports on financial positions, valuing hedging portfolios, and assessing gains or losses from currency conversions in real-time. One of DeftHedge's key features is its ability to connect seamlessly with company systems.

The decision-making process was efficient; initial discussions between Ayming's treasury department and DeftHedge's team took place in the first half of 2021 and swiftly led to the adoption of the solution. According to Ludovic Charbonnier, the integration took only a few weeks, allowing the Ayming team to promptly utilize the platform's capabilities.

This visibility allows me to choose the ideal timing to come as close to, or even outperform, our budgeted rates.

The Results

Over two years of using DeftHedge, Ayming experienced substantial benefits beyond addressing conversion discrepancies. The platform became an integral part of their daily treasury management, enabling real-time monitoring of spot rates. This allowed Ayming to compare these rates against their annual budget reference rates, identify the best opportunities to convert foreign currencies into euros, and significantly improve their timing for foreign exchange transactions.

Before DeftHedge, Ayming operated with limited visibility when contacting banks for currency sales, often "acting blindly." Now, with DeftHedge, Ludovic Charbonnier can clearly evaluate the exact exchange rate against their target rates in real time, helping him make informed decisions about when to execute currency sales, optimizing their chances of meeting or even outperforming budgeted rates.

The solution also provides configurable alerts, notifying users when exchange rates cross predetermined thresholds, either higher (take-profit) or lower (stop-loss), enabling Ayming to react quickly and seize the most favorable hedging opportunities. This responsiveness translated into a rapid return on investment, allowing Ayming to manage their currency risk more effectively, even for smaller businesses.

“Thanks to DeftHedge, I know exactly where we stand against our target rates when planning a sale. This visibility allows me to choose the ideal timing to come as close to, or even outperform, our budgeted rates,” – Ludovic Charbonnier, Group Treasurer, Ayming.

Moreover, DeftHedge offered Ayming greater transparency in their interactions with banking partners. When contacting the trading desk, Charbonnier could accurately assess the conversion rate offered by the bank, identifying the commission included and evaluating its competitiveness.

Additional Insights:
Olivier Lechevalier, CEO of DeftHedge, emphasized that the solution not only helped clients achieve better currency risk management but also reduced the information asymmetry typically found between banks and their clients. This transparency further strengthened Ayming's banking relationships and provided a valuable tool for identifying potential errors in foreign exchange transactions.

Outcome Metrics:

• Improved decision-making with real-time currency rate tracking.
• Enhanced timing of foreign currency sales, maximizing profitability.
• Fast ROI through optimized currency conversion and risk management.
• Increased transparency in banking negotiations, ensuring competitive conversion rates.

“DeftHedge empowers its users to mitigate the information asymmetry between banks and their clients, ensuring that they secure the best possible terms for their transactions,” – Olivier Lechevalier, CEO, DeftHedge.

Overall, DeftHedge provided Ayming with an efficient and effective way to monitor, manage, and optimize their currency risk exposure, demonstrating the transformative impact of this technology on their financial operations.