helping canadian companies achieve their global strategy october 2011
TRANSCRIPT
Helping Canadian CompaniesAchieve 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 BankSecurity
EDC
Guarantee
SecurityX
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 marketentrance strategy (new plant, intro tobuyers, 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