Export-Import Bank of the United States Working Capital Guarantee Program Presented by: Walt Trask Vice President International Trade Finance March 23, 2011

2  Official U.S. Export Credit Agency (“ECA”)  Founded 1934  Purpose: Facilitate financing of U.S. exports of goods/services and thereby create jobs  No minimum or maximum transaction size  In FY 2010 export financing surged to $24.5B supporting $34.4B of exports and 277,000 jobs Overview of Ex-Im Bank

3  A reasonable source of repayment  “On cover” in the buyer’s country  Goods must have U.S. content (labor, materials and mark- up) of at least 50%  Goods must be shipped from the U.S. Ex-Im Bank Working Capital Guarantee Basic Requirements

4  Short-term export credit insurance covering extended payment terms out to 180 (exceptionally 360) days  Medium and long-term programs covering exports of capital equipment on extended payment terms out to five years or longer  Working capital guarantee for pre-shipment finance Main Products Ex-Im Bank Working Capital Guarantee

5  Supports companies of all sizes but mainly small and medium-size firms  Provides a guarantee to lenders for an exporter’s working capital needs  Can be either transaction specific or revolving  Can also support establishment of standby letters of credit and indirect exports Ex-Im Bank Working Capital Guarantee

6  Provides needed cash to finance exports  Increases lenders appetite for financing exports by receiving a 90% government guarantee  Provides financing for foreign account receivables  Allows exporters to fill large or seasonal orders  Allows exporters to expand collateral base  Export-related inventory, including P.O.s, raw materials and WIP  Foreign Account Receivables included in Borrowing Base Ex-Im Bank Working Capital Guarantee

7  Ex-Im Bank guarantees 90% of principal and interest on a loan facility made to an exporter.  Loan is fully collateralized by export-related inventory and A/R.  Generally one year but up to three years.  Covers exporter performance risk. Basic Parameters Note: Provides no protection to exporter against foreign buyer non-payment. Ex-Im Bank Working Capital Guarantee

8  Transaction Specific  Transaction Specific Revolving  Revolving  Multiple transactions or specifically identified ones  May be committed for up to three years with annual reviews Lines of Credit Ex-Im Bank Working Capital Guarantee

9  Manufacturers  Trading companies  Wholesalers/distributors  Service companies Types of Exporters Ex-Im Bank Working Capital Guarantee

10  An Ex-Im Bank guarantee facility can support the following types of LCs:  Commercial or standby (domestic and foreign)  Collateralized at 10% - 25%  Term cannot exceed loan term  Warranty letters of credit  Lender extends other credit  100% collateralized, 25% in cash  Maximum: 20% of loan or $500,000  Term cannot exceed loan term Letters of Credit Ex-Im Bank Working Capital Guarantee

11  Risk mitigation  Competitiveness/marketing  Move existing customers to terms  Financing tool  Ability to assign foreign receivables  Accurate cash flow Trade Finance “Export Solutions” Notes Ex-Im Bank Export Credit Insurance Exporter Benefits

12 Line of Business  U.S. company that designs, engineers, manufactures and sells control instruments for the abatement of air pollution. Source domestically and globally. Primarily exports to China and select countries in Asia, Middle East and South America. Requirements  Working capital to support international sales (financing for foreign A/R and export destined inventory)  Risk mitigation for emerging market sales  Efficiency in trade process Solution  Optimize Working Capital: $7MM working capital loan backed by Ex-Im Bank guarantee  Mitigate Risk: Letters of credit (export, import, standby) Ex-Im Bank short term insurance for China Private credit insurance  Reduce Costs/Simplify Trade Process: Comerica GlobalTRADE Web Solutions That Work

13 Line of Business  Fortune 200 energy, grains and foods company that sells internationally Requirements  Risk mitigation for international sales  Working capital to support large sales to Asia (accelerate collection of accounts receivable) Solution  Mitigate Risk: Export letters of credit  Optimize Working Capital: Financing under export letters of credit (discounted drafts) Solutions That Work

14 Line of Business  Small Business company that designs and manufactures machine tools used in wheel manufacturing, roll forming, dies, metal processing systems, and exhaust technology. Sources and manufactures domestically. Sells into China, India, Mexico, South America, and Europe. Requirements  Working capital to support international sales (financing for foreign A/R and export destined inventory)  Risk mitigation for international sales Solution  Optimize Working Capital: $25MM working capital loan backed by Ex-Im Bank guarantee including standby letters of credit to support advance payments and progress billings.  Mitigate Risk: Letters of credit (export, standby) Ex-Im Bank support of open account terms with Chinese buyers Solutions That Work

15 MIDWEST MARKET Richard J. Barney Detroit, MI Cheyenne N. Carson Detroit, MI Scott K. Hibbard Grand Rapids, MI Gary K. Luxon Detroit, MI Anita L. March Oak Brook, IL Lisa F. Sasaki Detroit, MI TEXAS MARKET Anita L. March Oak Brook, IL Jean Ortiz Houston, TX WESTERN MARKET Caroline V. Brown Long Beach, CA Saul Del Real El Segundo, CA Tim Murphy City of Industry, CA Walt Trask San Francisco, CA International Trade Finance Contacts