© LENZ Finance Management KG Sourcing and Financing Service of LFM Presentation for Ghanaian Delegation IHK Chamber of Commerce & Industry, Karlsruhe 13 th April, 2015 Presented by Wolfgang Lenz, General Partner of LENZ Finance Management KG

© LENZ Finance Management KG Introduction John Ruskin: “There is hardly anything in the world that someone cannot make a little worse and sell a little cheaper, and the people who consider price alone are that person's lawful prey. It's unwise to pay too much, but it's worse to pay too little. When you pay too much, you lose a little money - that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do”. John Ruskin ( ) English writer, art critic, and reformer

© LENZ Finance Management KG Introduction In my own words of today: He, who buys cheap, buys twice. He, who buys German goods, buys quality. He, who uses LFM Services does not pay too much.

© LENZ Finance Management KG LFM Services in a nut shell: A) Analysis LFM offers its skills and contacts to source goods from Germany LFM uses its skills and knowledge to arrange for finance. LFM analyses the eligibility of Ghanaian importers to German finance. LFM does so by comparing their financial capacity with purchase needs. LFM estimates a possible credit volume and finance term. LFM issues a CER (Credit Eligibility Report) about the result of analysis.

© LENZ Finance Management KG LFM Services in a nut shell: B) Consultancy LFM offers its consultancy in case of positive results. LFM agrees about a consultancy contract with the Ghanaian importer. LFM does research about possible German suppliers. LFM checks about the financial and market standing of suppliers. LFM proposes capable suppliers and arranges finance. LFM keeps up the interest of Ghanaian importer and aims for long-term relationships.

© LENZ Finance Management KG Product particulars: The product is based on credit insurance Credit insurance is available for goods manufactured in Germany. Credit insurance is available in a variety of options. The type and use of goods are one criterion for options. The size and term of finance is another criterion. The tune of purchases is a further criterion. Remark: Eligibility of foreign goods purchased in Germany was suspended in December 2014.

© LENZ Finance Management KG Product particulars: Another version is based on Letter of Credits (L/Cs) L/Cs are available from Ghanaian banks. L/Cs require credit agreements with banks. L/C agreements do not necessarily require high cost. L/C based finance can cut cost significantly. L/C based finance usually extends up to 180, exceptionally 360 days. The choice of the right bank is important for L/C business.

© LENZ Finance Management KG List of Goods: There are no restrictions by type of goods, unless military Consumer goods Long-lasting consumer goods Components, spare parts Agro-industrial products Passenger cars Quasi-capital goods: Vehicles, earth moving equipment Capital goods: High value machinery & equipment for production

© LENZ Finance Management KG Finance Terms: Finance periods differ by type of goods Consumer goods, up to 180 days Long-lasting consumer goods, up to 360 days, exceptionally up to 2 years Components, spare parts, up to 360 days Agro-industrial products, up to 360 days Passenger cars, up to 3 years Capital goods/ Quasi-capital goods, up to 5 years

© LENZ Finance Management KG Finance Quotas: Finance quotas differ by period of finance Up to 360 days 100 % of the purchase value is eligible Finance periods beyond 360 days require a cash quota Cash quotas are minimum 15 % of the purchase value Cash quotas can be increase to overcome restrictions by other rules

© LENZ Finance Management KG Repayment terms: Repayment terms differ by period of finance Up to 360 days flexible, from monthly to bullet payment. Beyond 360 days, 15 % advance payment, 85 % in up to 10 instalments. First instalment payable 6 months after delivery / readiness for operation. Half-yearly payments are the usual case; shorter intervals allowed.

© LENZ Finance Management KG Final remarks: Only private sector business LFM is active in Ghana since LFM is exclusively contracting with the private sector. LFM has customers in different industrial sectors. LFM is dedicated to Ghanaian business. LFM only contracts, if there is conviction about feasibility.

© LENZ Finance Management KG Remember: Do not hesitate to buy German goods. There is finance available for your business. Make quality your passion. LFM assists to realize your targets. You are welcome

© LENZ Finance Management KG - QUESTIONS & ANSWERS The Floor is Yours