1. Estonian factoring success
Sven Randoja
24. October 2003
Warsaw

2. Estonia ESTONIA Capital - Tallinn Population - 1.4 million
Currency - Estonian Kroon (EEK)
Exchange Rate-
EUR 1= 15,646 EEK
GDP 6,9 bn EUR

3. Estonian economy Macroeconomic highlights hfjshfjsh 1994 1999 2000
2001
2002
2003E
GDP
-2.0%
-0.6%
7.3%
6.5%
6.0%
4.7%
GDP/capita (EUR)
1290
3536
4059
4568
5060
5432
Exports ( € m, %)
1,000
2,238
3,443 (+54%)
3,695 (+7%)
3,633 (-2%)
4,000 (+10%)
Imports ( € m, %)
1,284
3,222
4,614 (+43%)
4,796 (+4%)
5,077 (+6%)
5,635 (+11%)
Trade deficit ( € m, %)
-284
-984
-1,171 (+19%)
-1,101 (-6%)
-1,444 (+30%)
-1,635 (+14%)
CAD / GDP, %
hfjshfjsh
-7,2%
-4.7%
-6.1%
-6.2%
-12.5%
-14.5%
CPI
47.7%
3.3%
4.0%
5.7%
3.6%
1.4%
Unemployment
7,3%
12.3%
13.7%
12.6%
10.3%
9.9%
FX rate EEK/EUR -
15.65
15.65
15.65
15.65
15.65

4. Estonian economy Concentration Foreign capital inflow
Financial sector
Concentration
50 banks in 1992
7 banks in 2003
Foreign capital inflow
86 % foreign investment
SEB
Swedbank
Nordea
Total corporate loans:
270 mio EUR in 1994
2,68 bln EUR in 2003
Intrest rate (short term average)
24,3% in 1994
3,5% in 2003
Stock exchange formed in 1996

5. Development of factoring market
History of factoring market
Started in 1994
3 players in the market
Hansa Leasing
Ühisliising
Bank of Tallinn
Constant growth
In 1998 Hansa Leasing joined FCI
In 2002 Ühisliising started cooperation with Gerling NCM

6. Development of factoring market
Portfolio Turnover
€ m
€ m
Source: Ühisliising

7. Development of factoring market
Market penetration
Factoring in Estonia - % of GDP % of GDP compare to other countries

8. Development of factoring market
Drivers of success
Easy alternative financing instrument
Promotion, good image
Risk assessing easier
Public sector projects
Electronic data exchange
No alternative for credit insurance

9. Factoring today Concentration Steady growth More sophisticated
5 players in the the market
2 players owns 90% of the market
Hansa Leasing owns 60% of the market and Ühisliising 30%
Steady growth
More sophisticated
Electronic data exchange
„Traditional factoring“ no more „investment projects“
Share of total volume
Export 20%
Domestic 77%,
Tax and import 3%

10. Factoring today
Factoring by sector
Wholesale and retail sale have been one of most rapidly grown
business sectors in Estonia.
Source: Ühisliising 2003

11. Factoring today Factoring clients
Factoring clients structure Factoring turnover by client group
Source: Ühisliising 2003

12. Factoring market outlook
Steady growth in pace of economy growth
More advanced technology
E-business
Market stays concentrated
Market enters credit insurance company

13. Contact Ühisliisingu AS Tornimäe 2 10145 Tallinn Estonia
Tel:
Faks:
e-post: