Trade Finance – More than leasing… G. Eric Raby

Finance Opportunity “Every machinery purchase requires a finance decision – how to pay?”

Finance Opportunity: Defining the Needs Different Needs Require Different Solutions ●End-user customers need point of sale leasing. ●Distribution channels need wholesale finance. ●Large agribusiness need project finance. ●Lesser developed areas need grants and financing. ●The need for political cover, risk share, co-financing and technical assistance is evident as well.

Finance Opportunity: Defining the Solution To create optimum solutions in markets one must adopt a holistic approach by utilising all of the identified elements both individually and jointly depending on the requirements of each specific market or even customer. Structured Trade Finance Government-support guarantees & insurance for export credit. Experienced & knowledgeable management of multiple ECA relationships and procedures. (Example: US EXIM Bank insurance for KAM client Agro LV in CIS) Multilateral Development Institutions Regional & international institutions that support economic development. Broad-based finance for key account customer projects & leasing programs. (Example: European Bank for Reconstruction & Development for risk sharing) Leasing Point of sale asset finance. Expertly defined criteria used to select best leasing providers. (Example: UCL in Ukraine) Wholesale Finance Dealer credit facilities for stocking product. Country-specific approach (credit, leasing and insurance) (Example: Atradius insurance for dealer credit facility in Russia) AID Government grants to support developing and post-conflict countries. Accessing technical assistance funds and risk guarantees for credit and leasing. (Example: Millennium Challenge Corporation and USAID cooperation in Africa.) MDILeasing STF Wholesale AID

Finance Opportunity: Defining the Customer Tier 1 – Large Scale Agribusiness Needs: ●STF Project Business - Direct ●MDI Co-Finance Support ●Most Competitive Leasing Tier 1 Tier 2 Tier 3 Tier 2 – Mature markets, mid-size customers Needs: ●Point of Sale Leasing ●STF Project Finance – Bank Guaranteed ●MDI Risk-Sharing Enhanced Leasing Tier 3 – Emerging & mature markets, smaller customers Needs: ●Leasing ●MDI Risk Sharing Enhanced Leasing Tier 4 – Inception markets; manual to mechanized Needs: ●AID, Grants and Financing ●MDI Risk Sharing via Enhanced Leasing Tier 4

Finance Opportunity: Defining the Focus Finance Needs – Russia Matching the customer need to the best solution ●Leasing – flow financing, POS ●Structured Trade Finance – projects, credit lines ●Multilateral Development Institutions - Risk-sharing, political cover ●Russian banks – Made-in-Russia initiative & ECA facilities ●Wholesale Finance – providing resource for channels MDI Leasing STF Wholesale AID

Summary ●Russia is a key market for agricultural equipment due to its size and potential ●It is somewhat of a mixed bag from a finance perspective – old methods blended with new needs ●Subsidies (goods or rates) are still part of the equation – Government-led ●Foreign investment is a driver, but ebbs and flows ●Liquidity in the market for 2012 is uncertain / WTO could be adverse to the margins of many Russian ag businesses ●Overall and long-term prospects for Russia are still very strong and will likely mature at a rate faster than the United States did in the mid-20 th century and as such, will provide an on-going need for finance solutions