1. INHOLLAND – Small Business June 29, 2006 International Banking with Rabobank

2. INHOLLAND - International Banking Introduction  Martin van der Werff  Consultant Financial Logistics  Rabobank Nederland Corporate Clients –Regional Team Amsterdam

3. INHOLLAND - International Banking What’s Up ?  International Business - The concerns, needs, risks  Trade risks - Which risks & how to mitigate them  Payment Conditions – The why’s & how’s  Delivery Conditions – The why’s & how’s

4. INHOLLAND - International Banking International Entrepreneurs require … …Knowledge and Hedging Possibilities of international business/company risks …Reliably and quickly initiate and receive (inter)national transfers …An easy-to-use Electronic Banking (EB) system …Transparent and competative cost structure …Central access and overview of local foreign accounts …a Sparring Partner to investigate, ‘sound-check’ and realise business ambitions

5. INHOLLAND - International Banking

6. International Trade Risks

7. INHOLLAND - International Banking Which Risks AND for Whom ? Risks Exporter Importer Contract risk Transport risk Debtor risk Political risk Currency risk Non-Delivery risk Quality risk Product Liability risk Non-Take up risk

8. INHOLLAND - International Banking Different situations require Different ‘tools’ International (Trade) Risk Management

9. INHOLLAND - International Banking Hedging Debtor Risk Company Trade Finance (factoring) Trade Finance (factoring) Customer information Customer information Credit Insurance Credit Insurance Documentary Collection Documentary Collection Documentary Credit Documentary Credit Forfaiting B/Ex Forfaiting B/Ex Bank Guarantee Bank Guarantee Trade Finance (factoring) Collection Bad debts Collection Bad debts Credit Insurance Credit Insurance Precautionary Curative

10. INHOLLAND - International Banking International Payment Conditions  Open account –Cheque  Documentary Collection  Documentary Credit (L/C)  Advance Payment Exporter Importer High Risk Low Risk

11. INHOLLAND - International Banking Cross Border TT payments via SWIFT Euro Rabobank WGZ Bank Dresdner Bank Wells Fargo Bank of New York US Dollar Rabobank Dresdner Bank MT103MT202 MT950 MT103MT202 MT950

12. INHOLLAND - International Banking International Payment Conditions Selection proces and determinant factors  Branch customs  Country-specific ‘habits’  Governmental requirements –Trade Restrictions –Foreign Currency Restrictions  Buyers credit: yes/no ?  Risk appetite / acceptation  Competition  Delivery condition (as per I.C.C. Incoterms 2000)  Type of Goods  And many more …

13. INHOLLAND - International Banking Letter of Credit (L/C) Exporter Seller’s Bank Importer Buyer’s Bank 15 210 389 74 6

14. INHOLLAND - International Banking Delivery Terms (ICC Incoterms 2000)  Group 'E'Departure EXW  Group 'F'Main Transport - unpaid FCA, FAS, FOB  Group 'C'Main Transport – pre-paid CFR, CIF, CPT, CIP  Group'D'Arrival DAF, DES, DEQ, DDP, DDU Mode of Transport

15. INHOLLAND - International Banking Make Sure That You :  DETERMINE concrete payment and delivery conditions  Are Unambiguous, Explicit and Clear  Negotiate  Consider interacting with your banker

16. INHOLLAND - International Banking Evolution of International Banking

17. INHOLLAND - International Banking Rabobank International Advisor www.zibb.nl/ria  Tailor-made advice  Various risk catagories and hedging instruments  Explanation of Delivery and Payments conditions  Glossary on commonly used trade terms in international business  Country specific information on 72 countries  Customary specimen texts of L/C and/or bank guarantee  Forms and documents for initiation of L/C’s, Collections  Specimen trade documents

18. INHOLLAND - International Banking

19. Questions ?

20. Thank You ! For further information please turn to: Ms. R.P. (Rowena) Bosscher, Rabobank Zuid-Kennemerland Tel: +31 23 512 05 12