summit 05 cd prestn 10b daignault edc
TRANSCRIPT
2005 Angel Summit
October 2005
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EDC in numbers
Crown Corporation of the Federal Government
Supported $54.9 billion in exports and international investments in more than 170 markets around the world
Supported $11.6 billion in 146 developing markets including Brazil, Mexico, China, India and Russia
$20.7 billion total Assets
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Top Countries Volume ($M)
USA $30,587
MEXICO $1,910
JAPAN $1,811
TAIWAN $1,484
CHINA $1,365
Top Countries Volume ($M)
UK $1,235
BRAZIL $983
SOUTH KOREA $827
FRANCE $784
GERMANY $742
EDC Volume (billion)
South & Central
America
6.3%
$3.4
Europe
10.9%
$6.0
Asia / Pacific
14.5%
$8.0
Africa &
Middle East
3.7%
$2.0North America &
Carribean
64.5%
$35.4
Source: EDC Data 2004
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OVERALL ASSESSMENT - BRIC
Source: EDC Data 2003
Source: EDC Data 2003
Business Volume by Region (billion)
QUE$16
31%
ONT $19
36%
WEST$16
31%
ATL$1.2 2%
Customer Base by Region
QUE2,227 38%
ONT 2,062 35%
ATL 307 5%
WEST 1,296 22%
Source: EDC Data 2004
Source: EDC Data 2004
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Canadian BenefitsPolicy to ensure that transactions EDC facilitates generate benefits to Canada;
Direct benefits normally quantifiable like Canadian content on goods and services as well as
employment generationOther economic benefits:
Research and Development spent in Canada Canadian access to global markets Future benefits
Public policy Benefits Customer is a SME Transaction is in developing markets New product / new technology / new market
EDC’s condition for action
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Market Engagement
InternationalStrategic
International Business Development Group
ExportReady
Small
Domestic Exporters and Investors
Specialized Sector Teams
Small Business Group
Offices Across Canada
Grow the pool of exportersNeed to understand and help companiesovercome perceived barriers
35,000 Exporters and a pool of potential companies
Banks
Brokers
Government Entities
Associations
Sponsors/Arrangers
Large
Mid Market
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EDC and Small Businesses
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Short Term Insurance
Account Receivable Insurance
Protect against losses when your foreign buyer can’t or won’t pay
Enter new markets and expand existing ones
Offer your customers more flexible payment terms
Increase in operation line of credit with your financial institution
Risk Management and Working Capital application
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Contract Insurance and Bonding
Performance Security Guarantee
Guarantee issued to the financial Institution
Exporter’s collateral replaced with EDC’s AAA credit
EDC’s risk is 0% weighted by most CFIs
Easier access to issuance of Bank instruments
Access to additional working capital
Enables usage of trade instruments while managing risks and without restricting access to cash
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Contract Insurance and Bonding
Performance Security Insurance
Issued directly to the exporter
Covers 95% of losses if demand against a bank instrument is without reason
Provides additional protection if call due to reason outside seller’s control such as war or cancellation of import/export permits
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Exporter Guarantee Program
Pre Shipment Financing
Covers up to 75% of the Financial Institution loan to the exporter
Terms follow the delivery terms under the commercial contract
Can be used for indirect exports
Term Component possible
Enables additional Financing through a Guarantee to your financial institution
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Financing
Direct Buyer Financing / Bank Guarantee Program
EDC provides a term loan to the foreign buyer in support of a specific contract
15% down payment typically required Loan can be up to 85% of the contract value Generally no recourse to the exporter Guarantee approach also available
Financing solutions to the buyer of Canadian Goods and services
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Financing Equity program
Emphasis is placed on investments that are characterized by:
strong export orientations Expected to generate Canadian benefits of at
least 2:1 over the projected life of the investment.
Total Direct Investment: $ 46.4 million Cumulative exports to date: $ 1.1 billion Fund Investments (Indirect): 5 Capital Advanced: $ 14 million
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Other Programs and Services
Political Risk Insurance
Project Finance
E Services Export Check Export Protect
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Information and Intelligence
Involvement on trade missions-reverse trade missions to drive procurement;
Work with trade commissioners for an integrated approach;
Sector and Geographic strategies
www.edc.ca
1 800 850 9626