Helping Canadian Companies Achieve Their Global Strategy October 2011

Story 2  Jill Inc. is a Canadian company  Started locally and now sells across Canada  Domestic market saturated and sales have been flat  Considering changing business model to include exporting

Jill Inc. Looking to Grow 3  Situation: Contract in Mexico  Need: worried about non-payment  Solution: EDC insures single contract  Benefit: Risk of not getting paid covered

Risks Covered 4 Exporter Contract Foreign Buyer EDC Single Buyer Policy

Mexico Sales Growing 5  Situation: exporting business growing  Need: additional cash  Solution: ARI to free up security under operating line  Benefit: Risks covered and more cash available to grow business

Insurance Frees Up Operating Line 6 EDC AR Policy Exporter Contract Foreign Buyer Canadian Bank Assigned

Company Taking Off in Mexico 7  Situation: New buyers want financial or performance guarantees  Need: Operating line tied up by guarantees  Solution: EDC backstops performance and financial risk for bank  Benefit: Operating line not tied up by guarantee

EDC Backstops Performance 8 Exporter Contract Foreign Buyer Letter of Credit Advise Confirm Foreign Bank Security EDC Guarantee Security X

Direct Loan to Buyer 9 EDC Loan Exporter Contract Foreign Buyer

Local Manufacturing Facility Needed 10  Situation: Demand outstripping domestic capacity  Need: Require financing to build new plant  Solution: EDC uses financial network to arrange loan and insure foreign affiliate’s receivables  Benefit: additional financing to expand business

EDC Arranges Financing 11 EDC Canadian Bank Guarantee Foreign Buyer Contract Exporter Foreign Subsidiary Foreign Bank Guarantee AR Policy

Building on Successful Model 12  Looking to repeat model in India  Access EDC’s extensive network: banks, government, buyers  Help Jill Inc. build successful market entrance strategy (new plant, intro to buyers, market info)  Support business in up to 200 markets

Jill Inc. Today 13  Manufacturing facilities around the world  EDC support provided every step of the way  Insurance for one contract to full suite of solutions  Jill Inc.’s success is EDC’s success