supporting exporters - corporate banking

Supporting Exporters

Market Intelligence

Finance

Currency Risk Management

Trade Finance

Equity Funds

Electronic Banking

Correspondent Banks

Contents

Bank of Ireland – Supporting ExportersSupporting Exporting Companies

Case Study – How Bank of Ireland Supports Exporters

Sectoral Focus

Trade Finance

Correspondent Banking

Invoice Finance


Electronic Banking Solutions for Exporters

Equity Funds

Country Overviews Facts and Figures – Brazil

Facts and Figures – Russia

Facts and Figures – India

Facts and Figures – China

Notes and ContactsNotes Section

Useful Contacts and Information

Calendar

Bank o

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Bank of IrelandSupporting Exporters

About Bank of Ireland GroupBank of Ireland is a diversified Financial Services Group established in 1783 by a Royal Charter. A traditional, relationship-driven retail and commercial bank, Bank of Ireland is the leading provider of financial services in the Republic of Ireland, has a significant presence in the UK and has niche sectoral teams internationally. Headquartered in Dublin, Bank of Ireland is listed on the Irish, London and New York Stock Exchanges.

Bank of Ireland has been providing banking services to domestic and international businesses in Ireland for many decades and is the Banker of Choice to the majority of companies operating in or out of Ireland.

Our Export Proposition Irish exporting companies are looking for a local bank with the highest level of expertise, flexibility and overall service. Our experienced export team provides financial expertise combined with the highest level of customer service to deliver optimal solutions for export oriented businesses. For exporting companies, overseas trade is a key contributor to the growth of your business. That is why protecting your business against the unique and complex risks associated with international trade, particularly in emerging markets, is one of our main priorities. At Bank of Ireland we can offer a comprehensive suite of products and services to export customers such as:

Trade Finance Correspondent Banking Invoice Finance Currency Risk Management Electronic Banking Solutions Equity Funds

Bank of Ireland Supporting Exporting Companies

We support exporting companies by delivering a wide range of products and services including:

Why Choose Bank of Ireland? At Bank of Ireland we can help you determine the most appropriate banking and financing solutions to meet your business needs. Our reputation is built on:

Extensive banking support available for companies exporting from Ireland Extensive experience in the areas of inward and outward investment Central point of contact for all banking services Creative and innovative solutions for export orientated companies Unique Relationship Management service tailored to meet your needs Established relationships with the leading banks internationally including BRIC countries, Asia, South Africa,

Europe, the UK and the US Competitive pricing Flexibility Professionalism

Specialist Banking Services

Trade Finance Services (including Bonds and Guarantees)

Correspondent Banking Introductions

Global Treasury Products and Services

Invoice Finance / Discounting

Equipment Finance and Leasing

Electronic Banking Products

Money Market Lines

Acquisition Finance and Leveraged Buyouts

Syndicated and other Structured Loans

Day-to-Day Banking

Operating Accounts

Clearing Facilities

Online Web Based Cash Management

Payroll Processing

Merchant Card Services

Visa Card Services

Banking for Employees and Key Executives

Pension Services

Relationship Management• Dedicated Resources• Product Experts• Geographic Spread• Local Contact Points

Operating Accounts & Lending• Clearing Facilities• Visa Card Services• Payroll Processing• Structured Products• Lending

Equity Funds• Seed & Early Stage Funds• Emerging Sector Funds• MedTech Accelerator Fund• Available Committed Funds

Electronic Banking• Create EFT Payments• Prompt Payment Timeframes

Correspondent Banking• Account Opening• Introductions• Local Interaction

Risk Management• Currency Risk

Management• Interest Rate Risk

Management• Hedging Facilities• Multi-Currency Trades

Invoice Discounting & Leasing• Release Debtor Funds• Convert Trade Debts Into Cash• Leasing

Trade Finance• Expertise - Highly

Experienced Team• Risk Management

Irish Exporting Company

Contact points for all products are outlined in the "Contact Us" section or alternatively you can contact your local Bank of Ireland Relationship Manager or branch

Bank of Ireland Exporter OfferingFor Irish companies wishing to export, Bank of Ireland has it covered. We offer a comprehensive range of products and services suited to the unique and complex requirements of overseas trade. Whether it's a straight forward requirement like clearing facilities or a more sophisticated need, such as Correspondent Banking introductions, you'll find that Bank of Ireland has the wide-ranging products, contacts and, more importantly, the experience to serve the exporter with professionalism.

BackgroundCarlow-based Exporter A is an existing customer of Bank of Ireland. Bank of Ireland manages its operational accounts and Exporter A also uses Bank of Ireland’s electronic banking service, Business on Line. Bank of Ireland developed a good understanding of the business and the management team because Exporter A’s growth was funded by the Bank of Ireland Seed and Early Stage Equity Fund. This relationship was important to understand the business needs of Exporter A when the opportunity arose to provide export finance and other support services to the company.

During an Enterprise Ireland-led Trade Mission to China, Exporter A identified an opportunity to export its product for the first time. What could Bank of Ireland offer by way of support to facilitate this initiative?

Export / Operational Supports to Exporter AInitially, Bank of Ireland facilitated the opening of accounts for Exporter A in China through a corresponding banking network. This provided assistance with opening accounts at a local bank and guidance on the appropriate location of same. Using the expertise of its Chief Economist, Bank of Ireland also supplied background information on the Chinese economy. This proved to be a valuable service as this was a first time export opportunity for Exporter A and provided in-depth economic and country analysis of China.

Once accounts were opened and contacts established on the ground, Bank of Ireland outlined the Trade Finance options open to Exporter A based on the proposed pattern of their agreed trading relationship with the new Chinese customers. When the pattern of trade was established, Bank of Ireland was able to provide a full range of foreign exchange management / risk management products through its specialist Treasury team. This foreign exchange risk management approach is a critical part of the overall risk management in a business and is available to all Bank of Ireland customers with a foreign exchange exposure.

Case Study - How Bank of Ireland Supports Exporters

Growth / Expansion Supports to Exporter AAs the business in China grew, Exporter A required access to additional credit facilities. Based on the relationship developed with Exporter A and the understanding of its business, Bank of Ireland was in a position to provide a range of Working Capital products including Invoice Discounting. This facility ensured that the Working Capital cycle was accelerated, allowing Exporter A to pursue new opportunities in China. Invoice Discounting is often a suitably flexible option to fund growth and early exploration of this option, even prior to signing a new contract, can prove beneficial.

This complete process was achieved largely because a constructive relationship was established at an early stage between Exporter A and its local Bank of Ireland Relationship Manager. The importance of building relationships and sharing information, both financial and strategic, cannot be over-emphasised.

While each exporting company will have its own particular characteristics, Bank of Ireland is well placed to discuss the comprehensive suite of products and services available to support exporters with their strategic exporting plans.

In summary, the export offering from Bank of Ireland is comprehensive and operates through a well established system of supports to facilitate growth and market development. This service is available to all exporting companies.

Contact UsDonal Duffy leads the dedicated relationship team at Bank of Ireland focused on providing the full range of banking services to companies that are looking to expand or export overseas.

Donal DuffyHead of Enterprise Ireland Relations

Tel +353 (0)1 604 4426Email [email protected]/exporting

Membership

Bank of Ireland has specialist experience across many industry sectors and understands the challenges facing exporters. We have particular expertise in the following sectors:

Medical Devices The Life Sciences sector has emerged as a significant growth and export focused sector, particularly in the past decade. Bank of Ireland has specialist teams with experience and expertise who are in a position to work closely with, and support the financing requirements of those companies in sub-sectors such as Healthcare, MedTech, Pharmaceuticals, Biotechnology and Diagnostics who are developing overseas business relationships or operations.

SoftwareIreland is one of the key centres in Europe for software localisation and production and is one of the largest exporters of software goods in the world. Many of the world’s independent software companies have significant operations in Ireland and Bank of Ireland provides a comprehensive banking service to leading local and international software companies operating in or out of Ireland.

Clean TechnologyWith Ireland's ambitious strategy in Clean Technology, Bank of Ireland continues to be committed to financing environmentally responsible projects. Our €100m Environmental and Renewables Fund has enabled Bank of Ireland to gain a market-leading reputation in providing innovative funding solutions in the wind and wider renewables sectors. Bank of Ireland has specialist teams with experience and expertise who are in a position to work closely with and support financing requirements needed by those companies in this sector.

Tel +353 (0)1 604 4426Email [email protected]/exporting

Contact UsDonal DuffyHead of Enterprise Ireland Relations

Sectoral Focus

International trade can be both a challenging and richly rewarding business for exporters - but it’s not without risk. As well as contractual and commercial conditions, factors such as political, economic and transfer risk all have a bearing on whether trade transactions are secure and profitable. That is why protecting your business against the unique and complex risks associated with international trade, particularly in emerging markets, is our priority.

Our highly experienced Trade Finance Specialists work closely with you in helping to identify and manage any trading exposure you may be faced with, particularly in emerging markets. We combine our in-depth knowledge of your requirements with a wide suite of Trade Finance instruments in developing the right Trade Finance solution for your business.

Whatever your international trade requirements might be, we can help you to successfully manage the unique risks associated with international trade and ensure an overseas trade business that is both efficient and secure.

Contact UsBank of Ireland Global Markets,Colvill House, Talbot Street, Dublin 1

Dublin BelfastBilly Slyne Willie McCoyAssociate Director Trade Finance Business Development Manager Trade Finance

Tel +353 (0)1 609 4571 Tel +44 (0)28 9043 3291Email [email protected] Email [email protected]

Trade Finance

While expansion into international markets brings opportunity for business, it also brings the challenge of establishing an effective financial network within those markets. In recognition of the crucial role played by international trade in the Irish economy, Bank of Ireland has built a wide expertise in the area of Correspondent Banking. Our Correspondent Banking Specialists can help you to conduct smooth banking business with an overseas banking institution, without requiring a physical presence in that country.

From the outset, our Correspondent Banking specialists will work closely with you in understanding your international banking requirements. Through our extensive global banking network, and with strong links across the BRIC countries, we can introduce you to a relevant, leading banking service provider in the country of your choice. Our established connections with leading banks across the world enable us to facilitate your ongoing financial transactions with your international markets. Our Correspondent Banking Specialists are committed to ensuring efficient and secure financial transactions for Irish exporters, with your preferred overseas markets.

Contact UsMonty MacKenzieAssociate DirectorHead of Financial Institutions

Tel +353 (0)1 609 3630Email [email protected]


Bank of Ireland recognises the challenges facing exporters and how the flexibility of Invoice Financing can be critical. Using Invoice Finance, a method of raising working capital by converting trade debts into cash on an ongoing basis, can be a key advantage to exporters. Under this facility, a company can access funds of up to 80% of approved invoices. In cash flow terms, this is the equivalent of having 80% of eligible invoices paid within 24 hours. Cash is continually delivered to your business, increasing with your sales, thus providing much needed working capital.

The Benefits of Invoice Finance to Exporters It can release funds tied up in trade debtors (often a company’s biggest asset). This can assist cash flow

management and improve liquidity, allowing you to take advantage of business opportunities It is a flexible form of funding often releasing more cash on an ongoing basis than any other source

of traditional working capital finance The amount of cash available to you increases with your sales, making it ideal for both expanding and

established businesses It provides you with a continuous source of cash for your business. This allows you to enhance your

credit standing with suppliers and take advantage of supplier discounts It is easy to operate and is supported by a secure, automated online account management system,

making administration and access to funds easy and efficient It can allow your business to extend attractive credit terms to its customers, making it highly competitive

as a result It is confidential. Your relationship with your customers is not affected It is a complementary form of finance, working alongside your existing banking arrangements

Invoice Finance

What Businesses are Ideal? Businesses with an annual turnover of over €1m or the potential, given adequate funding, to reach this

size rapidly Businesses that sell on credit e.g. manufacturers, wholesalers, distributors and service providers Businesses with a good spread of debtors, good credit control and management information systems Businesses that invoice in arrears for goods delivered and/or services completed Businesses that are profitable with a positive net worth We have also designed a package specifically for the SME sector aimed at businesses with a turnover

of at least €500k and a working capital requirement of greater than €100k

Contact UsDerek McDermottHead of Commercial FinanceBank of Ireland Finance

Tel +353 (0)1 614 0300Email [email protected] www.bankofireland.com/business

Bank of Ireland is a leading provider of Foreign Exchange services in Ireland and offers a comprehensive range of currency risk management solutions. Our experienced team of Treasury Specialists work closely with you in determining your currency requirements and in helping you evaluate your currency risk management choices.

We offer a range of products from the simplest of vanilla hedges to more unique structured solutions, all tailored to your specific business requirements. We can help you with competitive pricing and first-rate customer service not only across all major tradable currencies worldwide but also across selected currencies in emerging markets. In line with your requirements, we provide a range of international payment options and currency account services.

Our Treasury Specialists are committed to helping you successfully manage the impact of volatile market movements on your company’s cash flow and overall profitability.

Contact UsBank of Ireland Global Markets,Colvill House, Talbot Street, Dublin 1

DublinEamon McManamy Adrienne McNallyAssociate Director Head of Retail Sales ManagementCorporate Sales Team

Tel +353 (0)1 790 0000 Tel +353 (0)1 609 4342Email [email protected] Email [email protected]


Bank of Ireland recognises the requirements unique to exporters and how flexibility on when and how to transact your banking business can be critical. Bank of Ireland has a suite of Electronic Banking solutions that are suited to Exporters facing those challenges.

Business on Line*Bank of Ireland's internet-based cash management service Business on Line (BOL) facilitates all daily-banking transactions including international payments and receipts. BOL is convenient and accessible 24 hours a day from your desk or from a secured internet line anywhere in the world. It is secured using proven state of the art encryption software. BOL provides real time information on domestic accounts and international global markets accounts are updated seven times daily.

BOL carries 90 days transaction history and has the capability of exporting this information for reconciliation purposes. Significant cost and time savings can be achieved from using BOL.

Main Features View account balance, transactions, direct debits and standing orders View credit card balances, transactions and make payments Make domestic and cross-border account transfers and third party payments Create EFT payments View foreign exchange rates and commentary Ability to make urgent priority payments for large values (same day money transfers) Export data to other systems and ability to view interest accrued Prompt payment timeframes Best in class security features, including 128-bit encryption User flexibility and controls and full training provided

Electronic Banking Solutions for Exporters

BOL also has key benefits to support businesses whose main trade is exporting. These include: EU Regulated Payments - no charge on payments sent within the EU regulated area that are sent in Euro

and are less than €50,000 International Payments using forward contract details - if you have taken out a forward contract with our Global

Markets department, you can use the forward contract rate when making International payments on BOL International Payments using Spot Details - if you have booked a spot rate with our Global Market Dealers,

you can use the spot rate when making international payments on BOL

SWIFT Messaging for Multi-Banking Customers* MT940MT940s are electronic methods of receiving Bank of Ireland statements via SWIFT or email, include details of transactions on your accounts and provides opening and closing balances. These statements can then be uploaded into other banks' applications or an Enterprise Resource Planning system (ERP).

MT101**This service allows you to issue a SWIFT message requesting funds to be sent to a corresponding bank where you have an agreement in place.

CAPS - Creditor Automated Payment Services* CAPS is a fully automated payment service provided by Bank of Ireland. It facilitates high volume / mixed value domestic and international payments while providing notice to the beneficiary of the payment (including invoice details) prior to the receipt of payment. This eliminates the need for companies to mail notification. The service is specifically designed to increase efficiency and cost effectiveness within a business's accounts payable system. This service will allow you to send bulk transfers to both domestic and international beneficiaries within the same payment. You can also allocate different value dates for the payments listed within your bulk file.

Contact UsEdana Seery Payment Sales Advisor Tel +353 (0)1 242 6632Payment Transaction Banking Email [email protected] Payments www.bankofireland.com/business

* Terms and conditions apply

** Only available for inter-company transfers

At Bank of Ireland we understand the financial challenges that developing businesses can face as a start-up or at an early growth stage. Whether you're looking to expand or develop your business activities, want to introduce innovations or new technology into your company, fund R&D or acquire new technology, then one of our Equity Funds could provide the financial support you're looking for.*

Bank of Ireland has dedicated Equity Funds that have been created to support Irish companies that are at their early or growth stages with potential to export. These funds, combined with our renowned relationship model of doing business, have ensured that Bank of Ireland continues to be Banker of Choice for companies whether at start-up, early stage or an established SME.

Bank of Ireland MedTech Accelerator Fund In February 2011, the €10m Bank of Ireland MedTech Accelerator Fund was established. This was Ireland’s first Seed Fund to focus exclusively on the indigenous medical technology sector. With investments ranging from €100,000 to €500,000, the Fund is focused on export orientated high potential start-up companies that operate in one of the following sectors:

Medical Devices Diagnostics Medical / Laboratory If you would like to know more about the Bank of Ireland MedTech Accelerator Fund and how to apply, then please visit www.kernelcapital.ie.

* Investments will only be made in entities carrying on business in the Republic of Ireland that have potential to export. Investments will not

be made if the proceeds of the investment would be used to re-finance existing debts of the business.

Equity Funds at Bank of Ireland

Bank of Ireland Start-Up and Emerging Sectors Equity Fund In December 2010, the €17m Bank of Ireland Start-Up and Emerging Sectors Equity Fund was launched. This Fund seeks to make investments of between €100,000 and €500,000 to high potential start-up companies that have an innovative idea, have the potential to export and are operating in one of the following sectors:

Greentech / Cleantech ICT Software Internet Emerging technologies Trading companies

If you would like to know more about the Bank of Ireland Start-Up and Emerging Sectors Equity Fund and how to apply, then please visit www.deltapartners.com. Bank of Ireland Seed and Early Stage Equity Fund In November 2009, the €22m Bank of Ireland Seed and Early Stage Equity Fund was established. This Fund is focused on supporting Irish companies and university spin-offs that are at their early and growth stages. It seeks to make investments of between €100,000 and €500,000 in seed and early stage enterprises that have a great idea for products, have the potential to export and are operating in one of the following sectors:

Technology, including green technology/clean technology Food Multimedia Wireless Financial services sectors Patent and patent pending projects within Irish universities and third-level institutions

If you would like to know more about the Bank of Ireland Seed and Early Stage Equity Fund and how to apply, then please visit www.kernelcapital.ie

Equity Fund Investments to DateSome of the investments made by the Bank of Ireland include:

June 2011 - participated in a €1.5m investment in Limerick-based Crescent Diagnostics Ltd, a medical diagnostics company developing a predictive test for osteoporotic fracture

June 2011 - €500k investment in Waterford-based FeedHenry Ltd - their cloud platform enables the development of business-class mobile apps in a simple, secure and cost effective manner and the subsequent deployment of these to multiple smartphone and tablet devices

June 2011 - led a €700k investment in Dublin-based Eventovate Ltd, a start-up company developing a suite of cloud-based software for the hotel sector

May 2011 - led a €1.1m investment in Cork-based Radisens Diagnostics Ltd, a medical diagnostics start-up company developing disruptive point-of-care diagnostic platforms and consumables, for the diagnosis and monitoring of acute and chronic care for patients with various chronic conditions

April 2011 - led a €800k syndicated investment in Kilkenny-based Hybrid Energy Solutions Ltd, a specialist provider of hybrid renewable energy systems

April 2011 - led a €950k investment in Dublin-based outsourcing relationship management specialist ServiceFrame Ltd - their technology enables companies globally to manage their strategic outsourcing environments

March 2011 - led a €750k investment in Dublin/Krakow-based Digital Mines, which has developed a simple and intuitive service to enable customers to use a cloud computing environment

October 2010 - led a €1.8m investment in Dublin-based software protection and licensing services specialist InishTech

September 2010 - led a €350k investment in Cork-based Wave Break Media Ltd, producers of broadcast quality high definition royalty free film footage and animation servicing a global customer base

April 2010 - led a €600k investment in Limerick-based energy cost control technology specialist Resourcekraft. In December 2010, an additional €50k was invested

March 2010 - €100k investment in Wexford-based Sonru Ltd, a company that specialises in developing web based tools for remote interviewing

March 2010 - led a €500k investment in Dublin-based online sports team management company Teamer. In December 2010, an additional €765k was invested

Co

untry Overview

Country Overview

Safe Passage for Exporters to Brazil

Brazil by Numbers 2008 2009 2010(e) 2011(f) 2012(f)

Real GDP growth 5.2% -0.7% 7.5% 4.1% 4.5%

Inflation 5.9% 4.3% 5.9% 6.6% 5.1%

Short term interest rate 13.75% 8.75% 10.75% 12.75% -

Government deficit (% GDP) -2.0% -3.3% -2.5% -2.6% -2.6%

Current account balance (% GDP) -1.7% -1.4% -2.3% -1.8% -2.0%

e = Estimated f = Forecast Source: OECD & Bloomberg Consensus Forecasts

GDP Output by sector Agriculture 6%

Manufacturing 26%

Services 68%

Employment by sector Agriculture 20%

Manufacturing 14%

Services 66%

The Brazilian Economy

Key Facts on Brazil

Capital: Brasília

Largest city: São Paulo

Official language: Portuguese

Government: Federative Republic

Independence: From Kingdom of Portugal 7th September 1822 and Republic was declared on 15th November 1889

Population: 190,755,799 (2010 census)

Currency: Real (R$) (BRL)

Time zone: GMT -2 to -4hrs

Date format: dd/mm/yyyy

Drives on the: Right

Calling code: +55

Overview of the Brazilian Economy Brazil is the largest and most developed of South America’s economies with sizeable and modern

agricultural, mining, manufacturing and service sectors

Brazil is actively expanding its presence in world markets and has steadily improved its macroeconomic stability since the early 2000s, building up foreign reserves and reducing its debt profile by shifting its debt burden toward Brazilian Real denominated and domestically held instruments

In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. Brazil's strong growth and relatively high interest rates make it an attractive destination for foreign investors

There is ongoing commitment to inflation targeting by the Central Bank, a floating exchange rate and fiscal restraint

Recent Developments Brazil experienced a year of recession after global demand for Brazil's commodity-based exports dwindled

and external credit dried up during the global crisis in 2009. However, Brazil was one of the first emerging markets to begin a recovery. Consumer and investor confidence revived and GDP returned to strong positive growth in 2010, helped by an export recovery

Growth slowed in the second half of 2010 and the appreciation of the Brazilian Real hit export demand. However, domestic demand is picking up and is expected to contribute significantly to growth in the medium term. The Government has announced significant infrastructural projects over the next number of years that should boost the domestic economy. It also plans on spending circa 40% of 2010 GDP on infrastructure between 2011 and 2014

The economy is forecast to pick up in 2011 after a somewhat subdued second half of 2010. A recovery in investment and consumption should be supported by improving growth prospects, sustained credit growth, increased capacity utilisation and infrastructure spending. The increase in domestic demand should offset, somewhat, the slowing of export growth

Large capital inflows over the past year have contributed to the rapid appreciation of its currency and has led the Government to raise taxes on some foreign investments

Recent Developments Continued The appreciation of the currency has held back inflation but the Central Bank moved to raise rates in early

2011 in order to control inflation expectations, which had been rising. The main interest rate is currently (March 2011) 11.75% up from 10.75% at the end of 2010. Further monetary tightening is likely to the price pressures in the domestic economy

The Brazilian economic outlook remains vulnerable to slower growth in the world economy and China in particular. There is also a risk to investment if global risk appetites moved away from BRIC countries back to more developed nations. There is also a significant upside risk to inflation and the Government finances deficit position as a result of the commitment to such large amounts of infrastructural spending in this short time period

Source: Economic Research Unit, Bank of Ireland Global Markets

(Information correct as at April 2011 unless otherwise specified)

Safe Passage for Exporters to Russia

Russia by Numbers 2008 2009 2010(e) 2011(f) 2012(f)

Real GDP growth 5.2% -7.8% 4.0% 4.9% 4.5%

Inflation 14.1% 11.7% 6.9% 9.4% 6.4%


Government deficit (% GDP) 7.2% -6.8% -4.3% 0.2% 0.3%

Current account balance (% GDP) 6.1% 3.9% 4.8% 6.8% 5.8%



Manufacturing 34%

Services 62%


Manufacturing 32%

Services 58%

The Russian Economy

Key Facts on Russia

Capital: Moscow

Largest city: Moscow

Official language: Russian

Government: Federal semi-presidential republic

Federation declared: Russian Federation declared 26th December 1991

Population: 142,905,200 (2010 census)

Currency: Ruble (RUB)

Time zone: GMT +2 to +11hrs

Date format: dd.mm.yyyy

Drives on the: Right

Calling code: +7

Overview of the Russian Economy Russia has very quickly transformed itself since the collapse of the Soviet Union, moving from a globally

isolated, centrally planned economy to a more market-based and globally integrated economy

Economic reforms in the 1990s privatised most industries; Russian industry is primarily split between global market-oriented commodity producers - natural gas, oil, steel and aluminium - and other heavy industries that focus on the Russian domestic market. This reliance on commodity exports makes Russia vulnerable to boom and bust cycles that follow the highly volatile swings in global commodity prices

The Government has been attempting, since the mid 2000s, to reduce the reliance on commodities industries and attract high-tech industries, but the high-tech sector is still relatively small

The economy has averaged 7% growth since the 1998 Russian financial crisis, resulting in a doubling of real disposable incomes

Recent Developments Russia was particularly affected by the global financial crisis - the Russian economy contracted by 7.9%

in 2009. Domestic demand fell sharply in the first half of 2009, following plunging oil prices and an abrupt reversal of capital flows that brought a multi-year credit boom to an end. Private spending and investment declined, with an inventories run down also impacting negatively on growth. One bright spot was the contribution of net exports, which turned positive as imports contracted

The recovery throughout 2010 has been solid and growth is expected to be robust at around 4 to 4.5% over the next number of years

The recovery was initially export led, then consumption expanded and investment picked up to drive growth

The 11% fall in output during the recession of 2008/2009 opened a large gap, which remains sizable, even taking account of the recent recovery. Unemployment remains elevated from its pre-crisis levels. The output gap (and a strong Ruble) have put downward pressure on inflation over the past several years. Notwithstanding temporary inflationary pressure from food/energy prices, the output gap should hold down inflation until at least 2012

The Government expanded public spending in 2009 to spur domestic demand. However, it now plans to cut real spending in the next two years in order to return the Government budget to balance

The increase in oil prices in early 2011, if sustained, should help to correct the fiscal deficit in a faster period as well as boost the current account

Recent Developments Continued Interest rates are likely to stay low due to the large output gap in the economy, which means the growth in

the next couple of years, while robust, will still be below potential

Russia is engaging in a number of structural reforms to develop its economy with the most important being the ongoing negotiations to join the WTO, which would bring substantial long-term growth benefits

Russia has a significant number of long-term challenges, including a shrinking labour market, due to demographics, inadequately developed credit markets and poor infrastructure in need of substantial investment

Russia remains particularly exposed to global trends due to the dependence on commodities industries for growth. This will not change in the short term. A faster than expected global recovery would spur on a faster Russian recovery



Safe Passage for Exporters to India

India by Numbers 2008 2009 2010(e) 2011(f) 2012(f)

Real GDP growth 4.9% 9.1% 9.6% 8.5% 8.6%

Inflation 9.1% 12.4% 10.3% 8.9% 6.6%


Government deficit (% GDP) -8.5% -9.5% -7.3% -6.8% -6.3%

Current account balance (% GDP) -2.4% -2.7% -2.7% -2.9% -3.0%

e = Estimated f = Forecast Source: OECD, Bloomberg


Manufacturing 29%

Services 55%


Manufacturing 14%

Services 34%

The Indian Economy

Key Facts on India

Capital: New Delhi

Largest city: Mumbai

Official languages: Hindi, English

Government: Federal parliamentary constitutional republic

Independence: From the United Kingdom declared 15th August 1947 and the republic was declared 26th January 1950

Population: 1,193,501,000 (2011 estimate)

Currency: Indian Rupee ( ) (INR)

Time zone: GMT + 5.30hrs

Date format: dd/mm/yyyy (AD)

Drives on the: Left

Calling code: +91

Overview of the Indian Economy India is continually and rapidly developing into an open-market economy, but some traces of its previous

rigid, bureaucratic, closed economy remain

Economic liberalisation, including domestic industry deregulation, privatisation of state-owned enterprises and reduced controls on foreign trade and investment, began in the early 1990s and has accelerated the country's economic growth, which has averaged more than 7% per year since 1997

India's diverse economy encompasses traditional village farming, modern agriculture, small traditional developing economy enterprises alongside a wide range of modern industries and, in particular, a large multitude of services

Agriculture remains important but services drive growth. Despite accounting for much less GDP output than services or industry, agriculture is a particularly important segment for the Government due to the numbers employed

Just over half of the workforce is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output but only one-third of its labour force

Unemployment is around 10% with an estimated 25% of the population below the official poverty line

India has recovered to pre-financial crisis levels of growth. It has capitalised on its large, educated, English-speaking population to become a major exporter of information technology services and software workers

In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth is likely to exceed 9% year-on-year in real terms

Recent Developments The Indian economy expanded very strongly in 2010 due to robust domestic demand and there are signs

that the economy is moving out of a recovery phase into one of continued, sustained high growth

Growth in services and manufacturing sectors continued to strengthen, supported by accommodative monetary policy and fiscal stimulus

The pace of growth in the early part of 2010 was due, in part, to a strong rebound in the agricultural sector. Agricultural expansion eased back in the second half, as did the very rapid pace of business investment, so the rate of growth fell back in the second half of 2010. This, however, is not a signal that the recent rate of high growth is coming to an end

Inflation soared in the early part of 2011, due to higher food prices and strong domestic demand. Inflation may fall in the latter half of the year but upward risks remain, due to the danger of food commodity price increases

Merchandise exports, which account for about 15% of GDP, have returned to pre-2008 levels. Continued industrial expansion and high food prices fuelled inflation, which peaked at about 11% in the first half of 2010, but has gradually decreased to single digits following a series of Central Bank interest rate hikes

Recent Developments Continued Interest rates are returning to normal levels. The Reserve Bank of India began to roll out its financial crisis

emergency measures in March 2010. Since then it has raised rates 175bps to 6.50% (January 2011). Given the strong economic growth momentum and no sign of any significant spare capacity in the economy, further interest rate increases are likely

The Government has a modest fiscal consolidation plan in place. While India currently runs what could be considered high deficits, it must be taken in the context of extremely rapid economic growth. The level of deficits do need to be reduced but the urgency and the level of consolidation needed is not as great as the headline rates would suggest

The Indian Government is seeking to reduce its deficit to 5.5% of GDP in 2011, down from 6.8% last year

Growth is expected to converge around a trend rate of circa 8.5% in the coming years, supported by strong investment and consumer spending in a rapidly developing economy


(Information correct as at April 2011 unless otherwise stated)

Safe Passage for Exporters to China

China by Numbers 2008 2009 2010(e) 2011(f) 2012(f)

Real GDP growth 9.6% 9.2% 10.3% 9.0% 9.2%

Inflation 5.9% -0.7% 3.2% 4.6% 3.4%


Government deficit (% GDP) 0.9% -1.2% -0.7% 0.4% 0.4%

Current account balance (% GDP) 9.1% 5.2% 5.2% 4.5% 4.4%


GDP Output by sector Agriculture 9.6%

Manufacturing 46.8%

Services 43.6%

Employment by sector Agriculture 39.5%

Manufacturing 27.2%

Services 33.3%

The Chinese Economy

Key Facts on China

Capital: Beijing

Largest city: Shanghai

Official language: Putonghua (or Mandarin)

Government: Single party-led state

Establishment: People's Republic of China proclaimed 1st October 1949

Population: 1,370,536,875 (2010)

Currency: Renminbi

Time zone: GMT + 8hrs

Date format: yyyy-mm-dd

Drives on the: Right, except for Hong Kong & Macau

Calling code: +86

Overview of the Chinese Economy China’s rapid growth has created many challenges. Over the past 30 years, China has moved from a

closed, centrally planned system to a quasi market-oriented one that plays a major global role. China is estimated to be the largest exporter in the world and the second largest economy. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978

Reforms include: phased out collectivised agriculture, price liberalisation, fiscal decentralisation, market-oriented state enterprises, a diversified banking system, development of stock and commodities markets, stimulating growth of the private sector and, crucially, openness to foreign trade and investment. China looks explicitly to foster globally competitive national champions

Agriculture remains a key sector due to its disproportionate numbers in employment, compared to output. China’s services sector lags behind both agriculture and manufacturing in terms of development

After keeping its currency tightly linked to the US Dollar for years, in 2005 China revalued its currency and moved to an exchange rate system that references a basket of currencies

From mid-2005 to late 2008, cumulative appreciation of the Chinese Renminbi against the US Dollar was more than 20%, but the exchange rate remained virtually pegged to the Dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a (very) gradual appreciation. China has come under some criticism for not letting its currency float independently

The Chinese Government does face a number of challenges in its rapidly developing economy. These include a high domestic savings rate and therefore weak domestic demand; controlling inflation, sustaining employment growth for tens of millions of new entrants to the workforce; reducing corruption; containing environmental damage from rapid industrialisation, securing energy and commodities supplies, spreading economic development across the nation rather than just in coastal areas and developing more high value added industries

Recent Developments The Chinese economy expanded quickly between 2008 and 2010 despite the global recession.

This was due to Government stimulus aimed at the domestic economy, which somewhat offset weaker export demand. Since the global recession, the Government is attempting to balance the economy away from total reliance on export demand and towards a more developed domestic economy for more balanced longer term growth

Private business investment, foreign investment into the domestic economy and household spending have all picked up through 2010

Officially, the Government plans to manage the public finances conservatively and run small deficits each year for the foreseeable future

However, the stimulus package from 2008 onwards has greatly increased much needed infrastructural investments, with these debts carried by regional authorities or publically owned companies rather than central Government

The Government has retained tight control of lending conditions in order to stop the economy from overheating but monetary conditions were still broadly supportive throughout 2010

Growth is likely to remain strong over the next couple of years as the Government concentrates on developing the domestic economy. However, the authorities will retain tight control of the Chinese Renminbi in order to maintain export market share and are not likely to let it float in the medium term



Notes and Contacts

No

tes and C

ontacts

Useful Contacts and Information

Banking

Donal Duffy

Head of Enterprise Ireland Relations

Tel +353 (0)1 604 4426

Email [email protected]

www.bankofireland.com/exporting

Trade Finance

Dublin

Billy Slyne

Associate Director Trade Finance

Tel +353 (0)1 609 4571


Belfast

Willie McCoy

Business Development Manager

Trade Finance

Tel +44 (0)28 9043 3291


www.treasuryspecialists.com


Monty MacKenzie

Associate Director

Head of Financial Institutions

Tel +353 (0)1 609 3630



Invoice Finance

Derek McDermott

Head of Commercial Finance

Bank of Ireland Finance

Tel +353 (0)1 614 0300


www.bankofireland.com/business

Electronic Banking

Edana Seery

Payment Sales Advisor

Tel +353 (0)1 242 6632


www.bankofireland.com/business


Eamon McManamy

Associate Director

Corporate Sales Team

Tel +353 (0)1 790 0000


Adrienne McNally

Head of Retail Sales Management

Tel +353 (0)1 609 4342



Equity Funds

Donal Duffy

Head of Enterprise Ireland Relations

Tel +353 (0)1 604 4426


www.deltapartners.com

www.kernelcapital.ie

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Calendar

2012

JANUARY

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T 4 11 18 25

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JULY

M 4 11 18 25

T 5 12 19 26

W 6 13 20 27

T 7 14 21 28

F 1 8 15 22 29

S 2 9 16 23 30

S 3 10 17 24 31

APRIL

M 4 11 18 25

T 5 12 19 26

W 6 13 20 27

T 7 14 21 28

F 1 8 15 22 29

S 2 9 16 23 30

S 3 10 17 24

OCTOBER

M 3 10 17 24 31

T 4 11 18 25

W 5 12 19 26

T 6 13 20 27

F 7 14 21 28

S 1 8 15 22 29

S 2 9 16 23 30

FEBRUARY

M 7 14 21 28

T 1 8 15 22

W 2 9 16 23

T 3 10 17 24

F 4 11 18 25

S 5 12 19 26

S 6 13 20 27

AUGUST

M 1 8 15 22 29

T 2 9 16 23 30

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S 7 14 21 28

MAY

M 2 9 16 23 30

T 3 10 17 24 31

W 4 11 18 25

T 5 12 19 26

F 6 13 20 27

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S 1 8 15 22 29

NOVEMBER

M 7 14 21 28

T 1 8 15 22 29

W 2 9 16 23 30

T 3 10 17 24

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S 6 13 20 27

MARCH

M 7 14 21 28

T 1 8 15 22 29

W 2 9 16 23 30

T 3 10 17 24 31

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SEPTEMBER

M 5 12 19 26

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DECEMBER

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F 2 9 16 23 30

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S 4 11 18 25

JUNE

M 6 13 20 27

T 7 14 21 28

W 1 8 15 22 29

T 2 9 16 23 30

F 3 10 17 24

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S 5 12 19 26

JANUARY

M 2 9 16 23 30

T 3 10 17 24 31

W 4 11 18 25

T 5 12 19 26

F 6 13 20 27

S 7 14 21 28

S 1 8 15 22 29

JULY

M 2 9 16 23 30

T 3 10 17 24 31

W 4 11 18 25

T 5 12 19 26

F 6 13 20 27

S 7 14 21 28

S 1 8 15 22 29

APRIL

M 2 9 16 23 30

T 3 10 17 24

W 4 11 18 25

T 5 12 19 26

F 6 13 20 27

S 7 14 21 28

S 1 8 15 22 29

OCTOBER

M 1 8 15 22 29

T 2 9 16 23 30

W 3 10 17 24 31

T 4 11 18 25

F 5 12 19 26

S 6 13 20 27

S 7 14 21 28

FEBRUARY

M 6 13 20 27

T 7 14 21 28

W 1 8 15 22 29

T 2 9 16 23

F 3 10 17 24

S 4 11 18 25

S 5 12 19 26

AUGUST

M 6 13 20 27

T 7 14 21 28

W 1 8 15 22 29

T 2 9 16 23 30

F 3 10 17 24 31

S 4 11 18 25

S 5 12 19 26

MAY

M 7 14 21 28

T 1 8 15 22 29

W 2 9 16 23 30

T 3 10 17 24 31

F 4 11 18 25

S 5 12 19 26

S 6 13 20 27

NOVEMBER

M 5 12 19 26

T 6 13 20 27

W 7 14 21 28

T 1 8 15 22 29

F 2 9 16 23 30

S 3 10 17 24

S 4 11 18 25

MARCH

M 5 12 19 26

T 6 13 20 27

W 7 14 21 28

T 1 8 15 22 29

F 2 9 16 23 30

S 3 10 17 24 31

S 4 11 18 25

SEPTEMBER

M 3 10 17 24

T 4 11 18 25

W 5 12 19 26

T 6 13 20 27

F 7 14 21 28

S 1 8 15 22 29

S 2 9 16 23 30

JUNE

M 4 11 18 25

T 5 12 19 26

W 6 13 20 27

T 7 14 21 28

F 1 8 15 22 29

S 2 9 16 23 30

S 3 10 17 24

DECEMBER

M 3 10 17 24 31

T 4 11 18 25

W 5 12 19 26

T 6 13 20 27

F 7 14 21 28

S 1 8 15 22 29

S 2 9 16 23 30

2011

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