helping canadian companies achieve their global strategy october 2011

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Helping Canadian Companies Achieve Their Global Strategy October 2011

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Page 1: Helping Canadian Companies Achieve Their Global Strategy October 2011

Helping Canadian CompaniesAchieve Their Global Strategy

October 2011

Page 2: Helping Canadian Companies Achieve 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

Page 3: Helping Canadian Companies Achieve Their Global Strategy October 2011

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

Page 4: Helping Canadian Companies Achieve Their Global Strategy October 2011

Risks Covered

4

Exporter

Contract

Foreign Buyer

EDC

Single Buyer Policy

Page 5: Helping Canadian Companies Achieve Their Global Strategy October 2011

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

Page 6: Helping Canadian Companies Achieve Their Global Strategy October 2011

Insurance Frees Up Operating Line

6

EDC

AR Policy

Exporter

Contract

Foreign Buyer

Canadian Bank

Assigned

Page 7: Helping Canadian Companies Achieve Their Global Strategy October 2011

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

Page 8: Helping Canadian Companies Achieve Their Global Strategy October 2011

EDC Backstops Performance

8

Exporter

Contract

Foreign Buyer

Letter of Credit

Advise

Confirm

Foreign BankSecurity

EDC

Guarantee

SecurityX

Page 9: Helping Canadian Companies Achieve Their Global Strategy October 2011

Direct Loan to Buyer

9

EDC

Loan

Exporter

Contract

Foreign Buyer

Page 10: Helping Canadian Companies Achieve Their Global Strategy October 2011

Local Manufacturing Facility Needed

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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

Page 11: Helping Canadian Companies Achieve Their Global Strategy October 2011

EDC Arranges Financing

11

EDC

Canadian Bank

Guarantee

Foreign Buyer

Contract

Exporter Foreign Subsidiary

Foreign Bank

Guarantee

AR Policy

Page 12: Helping Canadian Companies Achieve Their Global Strategy October 2011

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

Page 13: Helping Canadian Companies Achieve Their Global Strategy October 2011

Jill Inc. Today

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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