EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 1 JOHNSON C.T. LIAO Senior Vice President & General Manager Export Insurance Dept. The Export-Import Bank of the Republic of China Apr in Brazil Growing into the Future for Bilateral Trade

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade  Preface  Exports & Imports Snapshots ( Brazil, Peru, Mexico, El Salvador V.S. Taiwan)  EXIMBANK of R.O.C. (“EXIMBANK”) Introduction & Snapshots  Business Trend of EXIMBANK  How To increase the Bilateral Economic Relationship Contents 2

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 3 Preface~ The importance of International Trade to Taiwan Y = C + I + G + ( X -M)

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade Taiwan need to expand our trade scope Total export in 2012: US$308.3 billion Brazil 0.8% The 5 Countries of Central America 0.2% U.S. 11.8% Canada 0.8% EU 9.2% Middle East 2.4% Africa 1.0% Russia 0.5% India 1.4% Australia 1.2% New Zealand 0.1% China 40.2% Japan 5.9% S. Korea 4.0% The Philippines 2.3% Malaysia 2.2% Singapore 5.5% Indonesia 1.6% ASEAN 16.7% Brazil 0.59% Peru 0.10% Mexico 0.54% El Salvador 0.04% Total 1.27% Brazil 0.59% Peru 0.10% Mexico 0.54% El Salvador 0.04% Total 1.27% 4

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 1 st and 2 nd IC foundry provider 4 th NB and branded PC maker 2 nd and 3 rd TFT-LCD maker 2 nd mobile phone chipset maker and 4 th IC designer 4 th NOR Flash IC maker 5

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade Facing the Competition and substitution of Emerging Markets Taiwan better get prepared to integrate toward upstream 2012 Exports US$301.1 Bn 2012 Imports US$270.7 Bn Materials Russia & Middle-East Material Processing & High-tech Equip. Europe/USA/ Japan Intermediate Product Processing Taiwan & S.Korea Final Product Processing China & Asean Global Market  Downstream: Only price competition  Upstream: Good way to elevate product value 6

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 7 Taiwan and Brazil Exports & Imports Stats Year EX & IM Remark Imports from Taiwan US$1.9BnUS$2.35BnUS$1.83Bn IC, Oil products from Asphalt extracts, electric appliance for receptor and monitor, etc. Exports to Taiwan US$2.44BnUS$2.99BnUS$2.79Bn Iron ore, Soy bean, Sweet Corn Total Trade Value US$4.35BnUS$5.35BnUS$4.62Bn

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 8  EXIMBANK of R.O.C.– A Policy Bank EXIMBANK is a full-implementation agency of the ROC government's trade and economic policies; i.e., Providing financial services and assisting manufacturers to expand markets in foreign trade. The best helper and partner of Taiwanese exporters and foreign buyers. A 100% government-owned bank owned by Ministry of Finance (MOF, Taiwan)  EXIMBANK of R.O.C. – A Provider for Financing Service & Export Credit Insurance EXIMBANK also proactively provides relevant financing projects and export credit insurance services to assist corporations to diversify export markets, to enhance competitiveness in foreign trade, to accelerate export trade business and to create domestic employment opportunities.

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade The Export-Import Bank of R.O.C  Established: 1979 (33 years old )  Capital: US$ 400 million ( NT$12 billion)  Chair of the Board Directors:Phd. Chrystal Shih  Location: Taipei, Taiwan  Employees: 200 (42 work for EI Dept.)  Head Office: Taipei  Branch: Hsinchu, Taichung, Kaohsiung  BIS Ratio : 31.60%  2012 Fitch rating ( Long-Term Foreign Currency IDR ： AAA+ ； Outlook Stable)  Website: 9

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 10 EXIMBANK of R.O.C. Organization Chart Board of Directors Chairman President Ethics Office Personnel Office Dept. of Accounting Dept. of Risk Management Dept. of Administrative Management Legal Affairs Section Information Management Section Offshore Banking Branch Kaohsiung Branch Taichung Branch Hsinchu Branch Dept. of Finance Dept. of Export Insurance Dept. of Loan and Guarantee Export Insurance Committee Credit Committee Executive Vice President Executive Vice President & General Auditor Auditing Office

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 11 EXIMBANK of R.O.C. Snapshot of operations in 2012 US$/Million ItemAmountGrowth Rate Loans 3, % Guarantees % Export Credit Insurance 3, %

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 12 (1)Supplier’s Credit (2)Buyer’s Credit (3)Relending Facility (4)Shipbuilding Financing,etc (5) Mid/Long-Term Financing/Guarantee Services Export Credits Types of Export Credit: Overseas Investment Credit

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 13 What is Relending Facility  A type of financing provided by EXIMBANK to a foreign bank that in turn relends the funds to its clients for the purchase of various products from Taiwan  Beneficial to both foreign buyers and Relending Banks as the former is able to enjoy import financing with installment repayments while the latter can easily get funds from the EXIMBANK Taiwanese Exporter Export Contract Export Import Bank of ROC （ Taiwan ） Relending Bank （ Foreign Country ） Payment Loan Funding Foreign Buyer Repayment

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade Outline of the Relending Facility A revolving line of credit from EXIMBANK to a foreign bank. The foreign bank makes a loan to their clients for importing goods from Taiwan. Reimbursement of funds from EXIMBANK to the foreign bank after delivery of goods by Taiwan exporter. Repayment by the foreign bank to EXIMBANK. 14

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade Outline of the Relending Facility Risk sharing scheme-- EXIMBANK undertakes the repayment risk of the foreign bank The foreign bank undertakes the repayment risk of the importer 15

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade Relending Banks EXIMBANK has cooperated with 42 banks in 20 countries up to April,

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 17 Financing Terms and Conditions  Eligible goods: Exported from Taiwan  Currency: US dollars  Percentage of Financing: Up to 85%-100% of transaction  Interest Rate: Floating at 6- month LIBOR plus a margin  Tenor :  consumer goods: from 6 months up to 1 year  non-consumer goods: up to 5 years  Repayment of Principal:  In one lump sum on the maturity date  semi-annual installments (tenor > 1year)  Payment of Interest: Interest paid every 6 months 17

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 1. C.W.O. (Cash With Order) 2. C.A.D. (Cash Against Documents) 3. L/C (Leter of Credit) (1) Sight L/C (2) Usance L/C 4. D/P (Document against payment) 5. D/A (Document against Acceptance) 6. O/A (Open Account) 7. Installment 8. Consignment 18

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 19 Source from Central Bank of Taiwan YearL/CN-L/CYearL/CN-L/C %42.8% %87.8% %46.8% %88.3% %52.5% %88.4%

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade Comparison of Methods of Payment in International Trade in R.O.C. Letter of Credit Documentary Collection Open Account 20

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 21 Details of our Insurance Products 1.L/C Export Credit Insurance 2.Comprehensive D/P, D/A Export Credit Insurance 3.Comprehensive Open Account Export Credit Insurance 4.Overseas Investment Credit Insurance 5.Overseas Construction Credit Insurance 6.Global-Sure Credit Insurance-whole turnover policy

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade Performance of EXIMBANK 2012  Insured Amount: NT$ million (22.06% increase V.S 2011) 22

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 23 Business Trend of EXIMBANK ~ 2012 Insured Area

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 24 Business Trend of EXIMBANK ~ 2012 Insurance Covered by Industry

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 25 Business Trend of EXIMBANK ~ 2012 Loss by Region

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 26 Business Trend of EXIMBANK ~ Amount covered in recent 7 years

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade Trade Performance of EXIMBANK to Brazil 27 ITEM YEAR Export InsuranceExport Credit ,5785, ,9773, ,0328,722 Sub-Total 177,58717,557 Total 195,144 US$/ Thousand

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 28 How could EXIMBANK of R.O.C. increase the Bilateral Economic Relationship Credit Services Medium and Long-Term Export Credit Medium and Long-Term Import Credit Overseas Investment Credit Overseas Construction Credit Technology Export Credit Short-Term Export Credit International Accounts Receivable Factoring General Export Credit

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 29 Guarantee Services Export Guarantee Import Guarantee Overseas Construction Guarantee Shipbuilding Guarantee How could EXIMBANK of R.O.C. increase the Bilateral Economic Relationship

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 30 Export Insurance Services Comprehensive D/P, D/A Export Credit Insurance Comprehensive Open Account Export Credit Insurance Safety Export Credit Insurance for Small Medium Enterprises Global-Sure Credit Insurance Export Credit Insurance for L/C Medium and Long-Term Export Credit Insurance Overseas Investment Credit Insurance Overseas Construction Credit Insurance How Could EXIMBANK of R.O.C. Increase the Bilateral Economic Relationship

EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade 31 EXIMBANK of R.O.C. Growing into the Future for Bilateral Trade Thanks for your patience The Export-Import Bank of the R.O.C Website: Tel: Fax: