helping canadian companies achieve their global strategy october 2011

Helping Canadian CompaniesAchieve Their Global Strategy

October 2011

Story

2

Jill Inc. is a Canadian company

Started locally and now sells across Canada

Domestic market saturated and sales have been flat

Considering changing business model to include exporting

Jill Inc. Looking to Grow

3

Situation: Contract in Mexico

Need: worried about non-payment

Solution: EDC insures single contract

Benefit: Risk of not getting paid covered

Risks Covered

4

Exporter

Contract

Foreign Buyer

EDC

Single Buyer Policy

Mexico Sales Growing

5

Situation: exporting business growing

Need: additional cash

Solution: ARI to free up security under operating line

Benefit: Risks covered and more cash available to grow business

Insurance Frees Up Operating Line

6

EDC

AR Policy

Exporter

Contract

Foreign Buyer

Canadian Bank

Assigned

Company Taking Off in Mexico

7

Situation: New buyers want financial or performance guarantees

Need: Operating line tied up by guarantees

Solution: EDC backstops performance

and financial risk for bank

Benefit: Operating line not tied up by guarantee

EDC Backstops Performance

8

Exporter

Contract

Foreign Buyer

Letter of Credit

Advise

Confirm

Foreign BankSecurity

EDC

Guarantee

SecurityX

Direct Loan to Buyer

9

EDC

Loan

Exporter

Contract

Foreign Buyer

Local Manufacturing Facility Needed

10

Situation: Demand outstripping domestic capacity

Need: Require financing to build new plant

Solution: EDC uses financial network to arrange loan and insure foreign affiliate’s receivables

Benefit: additional financing to expand business

EDC Arranges Financing

11

EDC

Canadian Bank

Guarantee

Foreign Buyer

Contract

Exporter Foreign Subsidiary

Foreign Bank

Guarantee

AR Policy

Building on Successful Model

12

Looking to repeat model in India

Access EDC’s extensive network:banks, government, buyers

Help Jill Inc. build successful marketentrance strategy (new plant, intro tobuyers, market info)

Support business in up to 200 markets

Jill Inc. Today

13

Manufacturing facilities around the world

EDC support provided every step of the way

Insurance for one contract to full suite of solutions

Jill Inc.’s success is EDC’s success