JOC – Container Trade Europe

Receivable Securitization

September 2015

Finacity Corporation’s core competency is Structured Finance. It specializes in securitization and other forms of receivables financing. Finacity expertise is in

the structuring, administration and daily reporting of transactions

▪ Founded in 2001, headquartered in Stamford CT, USA with representative offices in London and Prague

▪ Founding partners include Euler Hermes, Bank of America, ABN AMRO Bank, AMROC Investments,

Texas Pacific Group, Bain & Company and Kleiner Perkins Caufield & Byers.

▪ While Finacity has a non-captive relationship with it’s partners, it benefits from their resources and

expertise

▪ Finacity works with many other banks and insurers, as well as rating agencies, issuers, law firms,

accounting firms and other key constituents to facilitate successful outcomes

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Finacity

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Overview

Volumes

▪ Annual run rate of approximately $100 billion in receivables.

▪ Borrowers/obligors in more than 165 countries.

▪ In excess of 25 million invoices/loans annually.

▪ Finacity acts as a “frequent issuer” having brought over $9 billion to market.

Funding Sources

▪ 90% funded by banks.

▪ 10% funded by non-bank investors.

Credit Ratings

▪ All Finacity transactions have been explicitly or implicitly rated investment grade by one or more rating agencies.

Global Reach

▪ Over 75% of Finacity’s revenue is from activity outside the U.S.

Representative Transactions

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Recent Finacity Freight Receivables Securitizations

In the past 3 years, Finacity has closed securitizations for 4 container shipping

carriers:

USD 900 MM

▪ Originating selling entities located in 4 global regions (Americas, Europe, Asia, and Australia)

▪ Multiple currencies involved: USD, EUR, AUD, and GBP

▪ Transaction funded by a syndicate of global banks

▪ The securitization is structured to ‘AA’ S&P rating criteria

USD 880 MM

▪ Originating selling entities located in 3 global regions (Europe, Asia, and Australia)

▪ The securitization is structured ‘AAA’ per S&P rating criteria

USD 350 MM

▪ Transaction funded by a syndicate of global banks

▪ Originating selling entities located in 3 global regions (Europe, Asia, and Australia)

▪ The securitization is structured to ‘A’ S&P rating criteria

USD 100 MM

▪ Transaction funded by a global bank

▪ Originating selling entities located in 4 countries

▪ The securitization is structured to ‘AAA’ S&P rating criteria

Shipping Industry – Carrier Considerations

Business considerations

▪ Cyclical sector with tendency for financial restructuring

▪ Security of maritime shipping law permits eligibility of challenging jurisdictions

▪ Typically diverse pool of customers with concentration limited to highly rated freight forwarders

▪ Short payment terms with reliable and timely collections

Transaction considerations

▪ Funding against billed receivables – Export/Pre-billed and Import/Collect

▪ Possible inclusion of Unbilled receivables (against Bill of Lading for Import/Collect)

▪ Funding against Detention and Demurrage

▪ Multiple currency funding and invoice eligibility5

Shipping Industry – Bulk Operator Considerations

Business considerations

▪ Know customer base – Carriers

▪ Contract based – multi year

▪ Fluctuations in Charter Rates

▪ Operator distress / consolidation

▪ Security of maritime shipping law

Transaction considerations

▪ Assignment and pledge of receivables in other facilities

▪ Customer concentration

▪ Credit Insurance opportunity

▪ Invoice Payment terms

▪ Portfolio performance – losses and dilution

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Structural Overview

Reporting and AdministrationCustomers

RemittanceAccount

SPV Funding SourceABCP Conduit or

Fixed Income Investor or Bank Balance Sheet

5DistributionInstructions

2Seller VFN

P&I

6Note

Proceeds

1A/R

7Proceeds

6Collections

8Reports

3Receivables

3Product

A/R Transaction Data

4Payments

CreditInsurance

Originator

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Collateral Composition

Excluded Categories

Over LimitsIneligibles

Excess ConcentrationsDilution Reserve

Loss ReserveYield and Fee Reserve

All OutstandingReceivables

Advance Amount

Non-collateral

Collateral = Eligible Receivables

+ Cash

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Securitization Program Launch and Administration

Program Launch

Analytic Assessment

Due Diligence/ On-boarding

Daily Client Data Feed

Generate Reports

Analyze AR PortfolioFunding

Initial Set-Up Ongoing Reporting/Funding

In preparation of the Securitization ProcessCa. 90% of overall effort

After Securitization Process has startedCa. 10% of overall effort

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Contacts

Stamford Office – USA281 Tresser Boulevard

Two Stamford Plaza, 11th FloorStamford, CT 06901

Charles NahumIndependent Managing Director, EuropeLondon: +44 (0) 20 7935 3390Stamford: +1 (203) 428 3514Mobile: +44 (0) 7876 653680E: CNahum@Finacity.com

Prague – EUMinkovick 170

Minkovick, 463 12. Czech Rep.Phone: +44-(0)20-3411 2539

London – UK46 Blandford StreetLondon W1U 7HT

Phone: +44 (0)20 7935 3390

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Disclosure

This presentation is for discussion only. It is not a commitment by Finacity to arrange or provide financing on these or any other terms. Terms and conditions described herein are subject to modifications and approvals.

Without the prior written consent of Finacity, none of the information or documents (or forms of documents) contained herein may be (a) used for any other purpose than your evaluation of the transaction described herein, or (b) furnished by you to any other person other than (i) such of your employees, officers and directors and legal, accounting and other advisers (collectively, "representatives") who have a need to know such information (or a need to review any such documents or forms of documents in connection with your evaluation of the subject transaction), are informed by you of the confidential nature of the information and are subject to appropriate confidentiality restrictions, (ii) as may be required by applicable law or regulations or by an order of a court or governmental agency of competent jurisdiction, provided that you give us prior notice of such requirement and order.