Overview of EDCEurope

2011

ABOUT EDC

Canada’s Export Credit Agency

AAA rated Crown corporation wholly owned by Government of Canada   

Financially self-sustaining

Operates on commercial principles

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Domestic Currency Foreign Currency

Long-term Short-term Long-term Short-term

Standard & Poor’s AAA A-1+ AAA A-1+

Moody’s Aaa P1 Aaa P1

JCR AAA AAA

DBRS AAA R-1 (high) AAA R-1 (high)

100% AAA Sovereign Issuer

EDC notes are a direct and unconditional obligation of the Issuer,

therefore are direct and unconditional obligations of Canada

0% BIS risk weighting according to Basel II guidelines

Canada Banking System Is World's Soundest, Economic Forum Says in Survey. Canada’s banking system was ranked the world’s soundest for the third straight year by the World Economic Forum. September 9, 2010

EDC IS CANADA

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“What Toronto can teach New York and London”

– Financial Times, 29 January 2010

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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Nominal GDP 2009: $1.53 trillion

GDP per capita: $45,266

Population: 33.8 million

Labor force: 18.6 million

Labor force by occupation:

Services 76%

Manufacturing 13%

Construction 6%

Agriculture 2%

Other 3%

AN INTRODUCTION TO CANADA

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2009 PERFORMANCE HIGHLIGHTS

Despite the recession, EDC maintained or grew its business as follows:

Global business volume of $82.7 billion

Served 8,469 customers

Supported business in 184 countries

$19 billion in emerging markets

Contributed to 4.4% of GDP, supporting 572,000 jobs

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0

2

4

6

8

10

12

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2005 2006 2007 2008 2009 2010

Bill

ion

s (C

AD

)

Year

Direct Financing for EDC Clients

EDC’S BUSINESS IS GROWING

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2007 2008 2009 2010

Business Volume* 70 85.8 82.8 84.6

Assets* 23.1 35.3 32.9 31.9

Net Profit** 473 206 258 1,531

*CAD billions

** CAD millions

EDC’S KEY RESULTS

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Q1-20

06

Q3-20

06

Q1-20

07

Q3-20

07

Q1-20

08

Q3-20

08

Q1-20

09

Q3-20

09

Q1-20

10

Q3-20

100

100000

200000

300000

400000

500000

600000

Canadian Real Exports

2000 2001 2002 2003 2004 2005 2006 2007 2008 200960.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Export Destinations as % of TotalUSA Right Axis - Others Left Axis

United States (U.S.)

Asia

Western Europe

China

Japan

Latin America

Mexico

EXPORTS RECOVERING

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Lima, Peru

SUPPORTING BUSINESS WORLDWIDE

EDCs’ foreign representations

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North America / Caribbean $52B (61%)

Asia-Pacific $13.5B (16%)

Europe $9.1B (10%)

South / Central America $6.7B (8%)

Africa / Middle East $4.4B (5%)

% = percentage of EDC’s total business volume

Location of EDC Representation

Monterrey, MexicoMexico City, Mexico

Santiago, ChileSão Paulo, Brazil

Moscow, Russia

Rio de Janeiro, Brazil

Abu Dhabi, UAE

Mumbai, India

New Delhi, India

Beijing, People’s Republic of China

Shanghai, People’s Republic of China

Singapore

EDC Representations opened in 2010

Panama City, Panama

Istanbul, Turkey

Düsseldorf, Germany

In Q4 2010, Representation in Warsaw had been closed and the responsibility for Central Europe (in addition to Western Europe) had been given to the new Representation in Düsseldorf

Warsaw, Poland

** Commercial and sovereign loan exposure - ratio of 93:7

DIVERSIFIED TOTAL EXPOSURE

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North America/Caribbean$51,973M(60.6%)

Asia/Pacific$13,466M(15.7%)

Europe$9,092M(10.6%)

South America/Central America

$6,669M(7.8%)

Africa/Middle East$4,360M(5.1%)

Other Regions$259M(0.3%)

Aerospace26%

Extractive25%

Surface Transportation

15%

Infrastructure & Environment

13%

Information &Communication

Technology10%

Sovereign & Other

11%

Total loans and guarantees exposure by sector**

Business volumes by market*

* Source: EDC Data as of September 2009

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16 offices across Canada

Able to respond locally to needs

Edmonton

Vancouver Calgary

Regina

Winnipeg

WindsorLondon

MississaugaToronto

Ottawa

Montréal

Québec City

Ville St-Laurent

Moncton

Halifax

St. John’s

CONNECTING WITH CANADIAN BUSINESSES ACROSS CANADA

2009–2014 CORPORATE PLAN: ROLE OF EDC

Enhancing Canada’s trade performance by being a trusted partner to our customers

How do we do this? Expertise in trade and investment

Broad network of representation

Strong partnerships

Expanded risk appetite

Sound financial management

Timely, quality service

As a Crown corporation, our business strategy is aligned with the Government of Canada’s trade objectives

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EDC BUSINESS VOLUMES IN EUROPE (2006-2010, $ millions)

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2006 2007 2008 2009 2010 YTD0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

6218 6306

7367

8709

9444

8709

9444

EDC BUSINESS VOLUMES IN EUROPE (2010)

Country CIB FIN ST Grand TotalAUSTRIA 8,364,115 55,678,374 111,805,320 175,847,809BELGIUM 2,475,330 112,055,039 225,295,406 339,825,776CZECH REPUBLIC 3,094,094 635,134 38,178,645 41,907,872DENMARK 1,899,180 134,812,713 136,711,893FINLAND 1,369,555 102,852,038 104,221,592FRANCE 20,269,777 45,105,317 838,552,173 903,927,267GERMANY 15,534,453 254,838,633 879,665,350 1,150,038,437GRENLAND 198,504 198,504HUNGARY 40,116,421 20,429,167 60,545,588ICELAND 237,699,093 6,908,319 244,607,411IRELAND 1,757,340 1,913,957 61,932,011 65,603,308ITALY 7,788,650 4,019,746 806,233,998 818,042,394LIECHTENSTEIN 19,552 19,552LUXEMBOURG 3,222,625 60,307,742 340,595,526 404,125,893MALTA 1,625,556 1,625,556MONACO 519,639 519,639NETHERLANDS 78,176,251 186,849,908 512,019,791 777,045,950NORWAY 94,317 3,000,000 51,342,839 54,437,156POLAND 3,462,376 82,391,120 53,111,088 138,964,585PORTUGAL 1,520,024 1,000,000 57,865,502 60,385,526SLOVAK REPUBLIC 17,388,637 8,640,514 26,029,151SPAIN 7,452,220 269,137,301 539,538,777 816,128,298SWEDEN 5,070,743 1,150,000 124,817,173 131,037,916SWITZERLAND 417,904 71,630,067 203,621,749 275,669,720UNITED KINGDOM 37,834,638 512,209,609 2,166,131,439 2,716,175,686

257,308,649 1,899,621,040 7,286,712,790 9,443,642,479

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EDC BUSINESS VOLUMES IN EUROPE 2009

Country CIB FIN ST Grand TotalANDORRA 13,715 13,715AUSTRIA 4,476,290 14,842,672 114,319,823 133,638,785BELGIUM 2,633,507 234,819,269 237,452,776CZECH REPUBLIC 538,476 79,922,080 38,446,055 118,906,612DENMARK 1,297,349 95,141,536 96,438,885FINLAND 15,915,842 65,919,680 81,835,522FRANCE 66,973,328 27,584,173 892,801,210 987,358,711GERMANY 16,674,080 245,434,784 667,020,564 929,129,428HUNGARY 87,192,820 25,308,880 112,501,700ICELAND 508,812,610 9,501,503 518,314,113IRELAND 2,811,517 2,459,090 90,931,233 96,201,840ITALY 18,942,854 323,680 855,726,014 874,992,548LIECHTENSTEIN 10,873 10,873LUXEMBOURG 5,144,669 172,606,296 177,750,965MALTA 4,760,775 4,760,775MONACO 1,609,993 1,609,993NETHERLANDS 145,129,901 587,209,698 390,799,778 1,123,139,377NORWAY 1,352,524 47,330,363 48,682,886POLAND 1,185,230 35,341,438 36,526,669PORTUGAL 5,202,750 1,000,000 49,182,886 55,385,636SLOVAK REPUBLIC 148,731 8,859,957 9,008,688SPAIN 29,617,886 168,800 501,904,762 531,691,448SWEDEN 6,257,391 233,531,290 121,180,895 360,969,576SWITZERLAND 689,412 62,708,506 232,970,118 296,368,036UNITED KINGDOM 415,672,179 154,338,958 1,306,401,075 1,876,412,212Grand Total 740,663,916 2,005,529,160 5,962,908,693 8,709,101,769

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EDC SOLUTIONS

CI: Credit InsuranceFIN: FinancingCIB: Contract Insurance and BondingPRI: Political Risk Insurance

2009 CAD billions

Risk of not getting paid …………………………. CI $ 58.7 (70.9%)

Need financing for themselves

or their buyer …………………………………….FIN $ 11.9 (14.4%)

Need to guarantee their

performance …………………………………….CIB $ 9.6 (11.6%)

Risk of losing their investment

abroad …………………………………………... PRI $ 2.6 (3.1%)

$ 82.8

Exporters’ risks to be mitigated orneeds to be met:

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ACCOUNTS RECEIVABLE INSURANCE (covers exporters against non-payment of their short-term export receivables)

Major benefits:

covers 90% of losses when foreign buyers don’t pay

increases working capital by using it as collateral against operating lines

allows exporters to offer more competitive payment terms and accept larger orders

improves balance sheet positions by freeing up capital normally provisioned for losses

increases market penetration opportunities with EDC-backed credit decisions

source of market/buyer intelligence

And when the unexpected happens …

… EDC paid CAD 83 million in ARI claims in 200818

CONTRACT INSURANCE & BONDING SERVICES

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EDC provides a guarantee to your bank so it can issue guarantees to your customers and suppliers

EDC shares the risk with your surety company

Protect yourself from wrongful calls

Get bonds without tying up cash

www.edc.ca/bonding

POLITICAL RISK INSURANCE

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Coverage for various political risks

Protects your assets, investments from certain political events

Increases access to cash from financial institution

Helps attract additional project capital

www.edc.ca/pri

FOREIGN BUYER FINANCING

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Direct financing to your foreign customer

Loan or guarantee to another financial institution

Lines of credit

Flexible financing options for foreign buyers

EDC assumes risk of non-payment

FINANCING FOR INVESTMENT IN CANADA

EDC can look at providing European investors to Canada financing for that investment where:

The European investor will remain actively involved in the operations of the Canadian subsidiary

> 50% of the output of the Canadian operation will be exported from Canada

Benefits to Canada including employment, research & development, environmental benefits and revenue are present

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BENEFITS OF PARTNERING WITH EDC

EDC can add valuable capacity and flexibility to your financing packages

Because EDC is an ECA, its borrowers may benefit from elements such as withholding tax exemption

As an ECA, EDC may be able to co-lend with other ECAs and in longer-tenor, ECA specific tranches of debt packages

EDC has many reinsurance partners that enable us to front insurance policies of varying size and scope

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CONTACT DETAILS OF OUR EUROPE TEAM :

Klaus HoubenSenior Regional Manager Europe, EDC RepresentationTel.: + 49 (0) 211 17217 45Mobile: + 49 (0) 151 5381 6672Email: khouben@edc.ca

Charles EdgeworthRegional Manager Europe, HQ OttawaTel.: + 1 613 597 8613Mobile: + 1 416 272 8294Email: cedgeworth@edc.ca

Anna WozniakCoordinator Europe, EDC RepresentationTel.: + 49 (0) 211 17217 46Mobile: + 49 (0) 151 5381 2048Email: awozniak@edc.ca

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