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Helping Canadian Companies Achieve Their Global Strategy October 2011.

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Presentation on theme: "Helping Canadian Companies Achieve Their Global Strategy October 2011."— Presentation transcript:

1 Helping Canadian Companies Achieve Their Global Strategy October 2011

2 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

3 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

4 Risks Covered 4 Exporter Contract Foreign Buyer EDC Single Buyer Policy

5 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

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

7 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

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

9 Direct Loan to Buyer 9 EDC Loan Exporter Contract Foreign Buyer

10 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

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

12 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

13 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

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