1. 1 How to Mitigate Risks When Doing Business in the United States May 20, 2009

2. 2 Export Development Canada (EDC) is Canada’s export credit agency, offering innovative financing, insurance and risk management solutions to help Canadian exporters and investors expand their international business. Corporate Information

3. 3 At EDC our mandate – to support and develop, directly or indirectly, Canada’s export trade and Canadian capacity to engage in that trade, as well as to respond to international business opportunities – guides everything we do. Corporate Mandate

4. 4 EDC Financial Solutions 1. Credit Insurance 2. Contract Insurance & Bonding 3. Financing

5. 5 Source: EDC Data 2003 Source: EDC Data 20067 – Business Review 13% 15% 7% 65% Volume by Program $ = Billions

6. 66 Source: EDC 2007 annual report EDC International Volume (billion)

7. 77 Source: EDC Data 2007 Customers Served by Market Sector Team Legend TRN – Transportation RES – Resources LTM – Light Manufacturing INF – Infrastructure & Environment ICT – Information and Communication Technologies EXT - Extractive

8. 8 Credit Insurance 1. Accounts Receivable Insurance (ARI) 2. Contract Frustration Insurance (CFI) 3. Single Buyer Insurance

9. 99 Protect against losses when your U.S. buyer can’t or won’t pay with 90% coverage Enter new markets and expand existing ones Offer your customers more flexible payment terms – up to 180 days Increase your access to working capital with your financial institution www.edc.ca/insurance Accounts Receivable Insurance

10. 10 Contract Frustration Insurance (CFI) Single contract insurance that provides work-in- process and receivables protection Covers up to 90% of eligible losses arising from a wide range of commercial risks. CFI is targeted specifically to Canadian exporters of capital goods or services and their Canadian suppliers Available on a fully selective basis, provided the associated risks and Canadian benefits are acceptable CFI is a single contract alternative to EDC’s Accounts Receivables Insurance policy.

11. 11 Single Buyer Insurance Alternatively you can consider covering your sales to only one customer with our Single Buyer Insurance Cover an unlimited number of payments due by the same customer, up to $250,000, in a six-month period Policy insures up to 90% of your losses if you don’t get paid after your goods have been accepted by the buyer Targeted to the occasional exporter who have infrequent insurance needs (one or two exports a year) Simplified application process and policy to make it quick and simple to use www.edc.ca/singlebuyer.

12. 12 Promptly determine your buyer’s credit profile with: 1)EDC Opinion Reports ●Obtain key credit and financial information on U.S. or foreign companies as well as an opinion as to whether the company is insurable 2)Dun & Bradstreet Information Reports ●Fast and easy access to detailed credit information reports on foreign companies. EXPORT Check Helps you decide how much (if any) credit you might want to extend to a potential U.S. or foreign customer.

13. 13 Contract Insurance & Bonding (CIB) www.edc.ca/insurance www.edc.ca/bonding

14. 14 Contract Insurance & Bonding Services ● Bank Instruments guaranteeing contract performance  Performance Security Guarantees (PSG)  Performance Security Insurance – wrongful call (PSI) ● Bank Instruments guaranteeing contract performance ● Foreign Exchange Facility Guarantee (FXG) ● Financial Security Guarantee (FSG) – Offshore and Supplier ● Surety Bond Reinsurance (SBI)

15. 15 www.edc.ca/financing Financing Solutions for Exporters ● Export Guarantee Program ● Direct Buyer Loans

16. 16 A risk sharing guarantee designed to encourage Financial Institutions to advance loans to smaller exporters by providing additional security Guarantee covers the Financial Institution’s credit facility for :  Up to 90% for guarantees ≤ 500k  Up to 75% where EDC’s exposure is between 500K and 10.0 million  Up to 100% for guarantees in support of qualifying foreign investment-related credit facilities of Canadian companies. Existing operating lines of credit are not affected. Financial Institution is responsible for funding and perfecting security Export Guarantee Program

17. 17 ● Loans can be used to cover WIP financing needs for direct exports as well as indirect (i.e. component sub- supply in Canada related to a product that is ultimately exported). ● Approved loans can be up to 100% of the contract costs. ● The term of the loan is linked to the payment terms identified in the commercial contract. Variations of support: 1.Contract Specific – One-off or “Bulge” facility to specifically support an export contract. 2.Revolving Facility – specifically support a series of purchase orders or contracts knowing each deal is covered under the guarantee Export Guarantee Program

18. 18 Variations of support: (Cont’d) 3.Operating Facility – A general corporate purpose facility to be administered by the provider in support of day to day operational activities. 4.Term Loan Facility –  Infrastructure investment in Canada relating to specific existing export contracts;  Foreign Direct Investment to support the acquisition of a foreign asset or company. Export Guarantee Program

19. 19 ● Tailored specifically to your commercial contract ● Disbursed to you by EDC on behalf of the borrower ● Meets the credit needs of your foreign buyer ● Offered at competitive interest rates & fees Direct Buyer Loans (Buyer Credits)

20. 20 QUESTIONS?

21. 21 Thank you  Harold Riley – District Manager, Quebec (514) 215-7210 – hriley@edc.cahriley@edc.ca