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Overview of EDC Europe

Overview of EDC Europe. 2011. ABOUT EDC. Canada’s Export Credit Agency AAA rated Crown corporation wholly owned by Government of Canada    Financially self-sustaining Operates on commercial principles. EDC IS CANADA. 100% AAA Sovereign Issuer

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Overview of EDC Europe

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  1. Overview of EDCEurope 2011

  2. ABOUT EDC • Canada’s Export Credit Agency • AAA rated Crown corporation wholly owned by Government of Canada    • Financially self-sustaining • Operates on commercial principles

  3. EDC IS CANADA • 100% AAA Sovereign Issuer • EDC notes are a direct and unconditional obligation of the Issuer, therefore are direct and unconditional obligations of Canada • 0% BIS risk weighting according to Basel II guidelines Canada Banking System Is World's Soundest, Economic Forum Says in Survey. Canada’s banking system was ranked the world’s soundest for the third straight year by the World Economic Forum. September 9, 2010 “What Toronto can teach New York and London” – Financial Times, 29 January 2010

  4. EDC’S ROLE • To support and develop Canada’s export trade and international business efforts • Financing and insurance solutions for Canadian exporters and investors

  5. AN INTRODUCTION TO CANADA • Nominal GDP 2009: $1.53 trillion • GDP per capita: $45,266 • Population: 33.8 million • Labor force: 18.6 million • Labor force by occupation: • Services 76% • Manufacturing 13% • Construction 6% • Agriculture 2% • Other 3%

  6. Despite the recession, EDC maintained or grew its business as follows: Global business volume of $82.7 billion Served 8,469 customers Supported business in 184 countries $19 billion in emerging markets Contributed to 4.4% of GDP, supporting 572,000 jobs 2009 PERFORMANCE HIGHLIGHTS

  7. EDC’S BUSINESS IS GROWING

  8. EDC’S KEY RESULTS *CAD billions ** CAD millions

  9. EXPORTS RECOVERING

  10. EDCs’ foreign representations Warsaw, Poland SUPPORTING BUSINESS WORLDWIDE North America / Caribbean $52B (61%) Asia-Pacific $13.5B (16%) Europe $9.1B (10%) South / Central America $6.7B (8%) Africa / Middle East $4.4B (5%) % = percentage of EDC’s total business volume Moscow, Russia Düsseldorf, Germany Beijing, People’s Republic of China Istanbul, Turkey Shanghai, People’s Republic of China Monterrey, Mexico New Delhi, India Mexico City, Mexico Panama City, Panama Singapore Mumbai, India Abu Dhabi, UAE Lima, Peru Rio de Janeiro, Brazil São Paulo, Brazil Santiago, Chile Location of EDC Representation EDC Representations opened in 2010 In Q4 2010, Representation in Warsaw had been closed and the responsibility for Central Europe (in addition to Western Europe) had been given to the new Representation in Düsseldorf

  11. DIVERSIFIED TOTAL EXPOSURE Business volumesbymarket* Total loansandguaranteesexposurebysector** Sovereign& Other 11% Information &Communication Technology 10% Aerospace 26% Infrastructure & Environment 13% Extractive 25% Surface Transportation 15% * Source: EDC Data as of September 2009 ** Commercial and sovereign loan exposure - ratio of 93:7

  12. CONNECTING WITH CANADIAN BUSINESSES ACROSS CANADA Edmonton St. John’s Vancouver Calgary Moncton Regina Québec City Halifax Winnipeg Ville St-Laurent Montréal Ottawa Toronto Mississauga • 16 offices across Canada • Able to respond locally to needs London Windsor

  13. 2009–2014 CORPORATE PLAN: ROLE OF EDC • Enhancing Canada’s trade performance by being a trusted partner to our customers • How do we do this? • Expertise in trade and investment • Broad network of representation • Strong partnerships • Expanded risk appetite • Sound financial management • Timely, quality service • As a Crown corporation, our business strategy is aligned with the Government of Canada’s trade objectives

  14. EDC BUSINESS VOLUMES IN EUROPE (2006-2010, $ millions)

  15. EDC BUSINESS VOLUMES IN EUROPE (2010)

  16. EDC BUSINESS VOLUMES IN EUROPE 2009

  17. EDC SOLUTIONS Exporters’ risks to be mitigated or needs to be met: 2009 CAD billions • Risk of not getting paid …………………………. CI $ 58.7 (70.9%) • Need financing for themselves or their buyer …………………………………….FIN $ 11.9 (14.4%) • Need to guarantee their performance …………………………………….CIB $ 9.6 (11.6%) • Risk of losing their investment abroad …………………………………………... PRI $ 2.6 (3.1%) $ 82.8 CI: Credit Insurance FIN: Financing CIB: Contract Insurance and Bonding PRI: Political Risk Insurance

  18. ACCOUNTS RECEIVABLE INSURANCE(covers exporters against non-payment of their short-term export receivables) Major benefits: • covers 90% of losses when foreign buyers don’t pay • increases working capital by using it as collateral against operating lines • allows exporters to offer more competitive payment terms and accept larger orders • improves balance sheet positions by freeing up capital normally provisioned for losses • increases market penetration opportunities with EDC-backed credit decisions • source of market/buyer intelligence And when the unexpected happens … …EDC paid CAD 83 million in ARI claims in 2008

  19. CONTRACT INSURANCE & BONDING SERVICES • EDC provides a guarantee to your bank so it can issue guarantees to your customers and suppliers • EDC shares the risk with your surety company • Protect yourself from wrongful calls • Get bonds without tying up cash www.edc.ca/bonding

  20. POLITICAL RISK INSURANCE • Coverage for various political risks • Protects your assets, investments from certain political events • Increases access to cash from financial institution • Helps attract additional project capital www.edc.ca/pri

  21. FOREIGN BUYER FINANCING • Direct financing to your foreign customer • Loan or guarantee to another financial institution • Lines of credit • Flexible financing options for foreign buyers • EDC assumes risk of non-payment www.edc.ca/financing

  22. FINANCING FOR INVESTMENT IN CANADA • EDC can look at providing European investors to Canada financing for that investment where: • The European investor will remain actively involved in the operations of the Canadian subsidiary • > 50% of the output of the Canadian operation will be exported from Canada • Benefits to Canada including employment, research & development, environmental benefits and revenue are present

  23. BENEFITS OF PARTNERING WITH EDC • EDC can add valuable capacity and flexibility to your financing packages • Because EDC is an ECA, its borrowers may benefit from elements such as withholding tax exemption • As an ECA, EDC may be able to co-lend with other ECAs and in longer-tenor, ECA specific tranches of debt packages • EDC has many reinsurance partners that enable us to front insurance policies of varying size and scope

  24. CONTACT DETAILS OF OUR EUROPE TEAM : Klaus Houben Senior Regional Manager Europe, EDC Representation Tel.: + 49 (0) 211 17217 45 Mobile: + 49 (0) 151 5381 6672 Email: khouben@edc.ca Charles Edgeworth Regional Manager Europe, HQ Ottawa Tel.: + 1 613 597 8613 Mobile: + 1 416 272 8294 Email: cedgeworth@edc.ca Anna Wozniak Coordinator Europe, EDC Representation Tel.: + 49 (0) 211 17217 46 Mobile: + 49 (0) 151 5381 2048 Email: awozniak@edc.ca 24

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