Helping Canadian Companies Achieve Success South of the Border October 2011
Outline
About EDC EDC’s Role Canadian Auto Sector EDC Support to Canadian Auto Sector How EDC Facilitates Innovation
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About EDC
Canada’s Export Credit Agency Crown corporation wholly owned by Government of Canada Financially self-sustaining Operates on commercial principles
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EDC’s Role
To support and develop Canada’s export trade and international business efforts Financing and insurance solutions for Canadian exporters and investors
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2010 Performance Highlights
Facilitated $84.6 billion in business volume Served 8,236 customers Supported business in 187 countries Carried out $24.7 billion in emerging markets Contributed to 4.9% of GDP, supporting 627,704 jobs 5
Business Growth
 EDC facilitated $84.6B in volume, as Canadian exports rebounded in 2010 Year
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As of December 31, 2010
Supporting Business Worldwide
North America / Caribbean $47.5B (56%)
EDC’s foreign representation
Asia-Pacific $15.2B (18%) Europe $10.7B (13%) South / Central America $5.5B (7%) Africa / Middle East $5.4B (6%) % = percentage of EDC’s total business volume
Moscow, Russia Düsseldorf, Germany
Beijing, People’s Republic of China
Istanbul, Turkey
Shanghai, People’s Republic of China
Monterrey, Mexico
New Delhi, India
Mexico City, Mexico Panama Mumbai, India Abu Dhabi, UAE
Lima, Peru Rio de Janeiro, Brazil Santiago, Chile
São Paulo, Brazil
Location of EDC Representation
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Singapore
Connecting with Canadian Businesses Across Canada 17 offices across Canada Able to respond locally to your needs
Edmonton, Alberta
St. John’s, Newfoundland and Labrador
Calgary, Alberta
Vancouver, British Columbia
Moncton, New Brunswick
Regina, Saskatchewan Québec City, Quebec Winnipeg, Manitoba
Montréal, Quebec
Halifax, Nova Scotia Drummondville, Quebec
Ville St-Laurent, Quebec Ottawa, Ontario
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Toronto, Ontario Windsor, Ontario
Mississauga, Ontario London, Ontario
The Canadian Automotive Industry & EDC’s Role
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Canadian Automotive Supply Chain
Extensive automotive history Strong OEM presence Diverse parts supply base World-class TDM industry
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Canadian Auto Sector Needs Risk Mitigation Credit insurance, Wrongful call insurance, Political risk insurance
Exporter Credit Capacity Working capital guarantee, Syndicated loans
Buyer Credit Capacity Loans, Project finance, Syndicated loans
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Volume Supported by EDC
$6 $5 $4 Billions
$3 $2 $1 $0 2006
2007 FIN
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2008 ARI
2009
2010
Accounts Receivable Insurance
Support for sales of parts, tools & molds Support for foreign affiliates of Canadian companies Highly customized for the supply chain Can cover PPAP terms
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Accounts Receivable Insurance
Exporter
Accounts Receivable Credit Insurance Policy Goods or Services
Line of Credit
Claim Payment
OEM/ Parts Supplier 14
EDC
Financial Institution
Financing Working capital support for Canadian exporters Support to enable foreign expansion Buyer financing for purchase of Canadian goods
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Term Loan
Exporter
Loan
Guarantee
EDC
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Financial Institution
Buyer Financing
Exporter/ Tool Shop
Financing Agreemen t
Contract
Disburs ement
Indemnity for TS advances
Parts Supplier
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Payout of TS Loan after PPAP & pmt
EDC
EDC Facilitating Innovation Partnering for success Supply chain support Programs for all levels
Unique products Tooling facilities Bank guarantees FX guarantees
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Summary EDC is a Canadian Crown Corporation established to support Canadian Industry in the global marketplace EDC is a key supporter of the Canadian Auto Industry Innovative financing solutions are a contributor to technical innovation The Government of Canada offers a number of programs that complement EDC support and contribute to technical innovation in the supply base
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Questions/Comments Export Development Canada www.edc.ca www.edc.ca/automotive Carl Marcotte, VP Transportation cmarcotte@edc.ca
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