sace’s role as business facilitator

1EMPOWER YOUR BUSINESS

SACE’s Role as Business Facilitator

Moscow, April 6th 2009


Index

SACE’s products

Contacting SACE

ITALY- RUSSIA Commercial Flows

SACE Group - Introduction


SACE supports companies in developing their business abroad,

offering a wide range of credit insurance and reinsurance

products, investment protection, surety and advanced financial

solutions

SACE supports companies in developing their business abroad,

offering a wide range of credit insurance and reinsurance

products, investment protection, surety and advanced financial

solutions

Credit insurance, reinsurance and guarantees for Italian exports and investmentsCredit insurance, reinsurance and guarantees for Italian exports and investments

Short-term insurance services both in the domestic and foreign market, surety business, specifically in the construction industry

Short-term insurance services both in the domestic and foreign market, surety business, specifically in the construction industry

100%

Medium & Long

Term

Short Term &

Surety

SACE Group: one group many solutions


Gross Premium (€ Mln)

198

2005 2006

241

2007

312

SACE Group: a strong financial partner

167

3Q 083Q 08

511

Aa2

€ 5.772 Mln

€ 377 Mln

€ 312 Mln

€ 33.600 Mln

Employees

Rating (Moody’s)

Shareholder’s Funds

Net Profit

Gross Premium

Outstanding Guarantees

Highlights 2007

Despite Market Turmoil, SACE kept improving the quality and the liquidity of its assets.

3Q2008: Profit 428,5 mln euro (+30% YoY); Claims 14,2 mln euro (-15% YoY)


SACE Group: our perception of risk


More than 155 countries on cover

SACE Group: a worldwide player

OPEN:Potential involvement in all kind of transactions.

OPEN WITH RESTRICTIONS:Restrictions may apply according to:• counterparts (i.e. sovereign)• amounts (i.e. cap for country or single transaction)• tenors (i.e. short, medium-long term)

ON A CASE BY CASE BASIS:No cover available. Potential exemptions:•project finance, •co-financing with Multilaterals, local development banks and other ECAs;• investments;• non-credit risks


Risk Coverage

RISK GENERATING EVENTS

POLITICAL NATURE

• Expropriation, nationalisation or any other Government restriction

• General moratorium decided by a foreign government

• Currency transfer restrictions due to political or economic reasons

• Exchange rate fluctuation due to law provisions adopted by the debtor country

• Embargo

• War, civil unrest or natural disasters

COMMERCIAL NATURE

• De-jure insolvency of the (private) debtor • Debtor/guarantor protracted default • Purchaser’s arbitrary repudiation, suspension or unilateral termination of a commercial contract

• Purchaser’s arbitrary refusal to accept the exported goods and/or services


Traditional Business

Purpose: to support the Italian exports and diversify SACE’s portfolio

Export credit Insurance Political Risk

Insurance

National Interest Programme

Purpose: to support the Internationalization of Italian companies and any strategic interest for the

Italian Economy

Internationalization Market Window

“Non marketable” business, bound by Consensus Rules

“Non marketable” business, off Consensus Rules, supporting the Italian investments abroad

New “marketable” business, supporting the Internationalization of Italian Economy

New “marketable” business, supporting any strategic interest for the Italian Economy

SACE Group: new strategic lines of business


Co

nte

nt

Exporter’s Country

Italy Foreign country

Traditional eligibility criteria(made in Italy)

…and…

New eligibility criteria(made by Italy)

1 - Eligibility of Italian content

Limited flexibility to cover the financing of non Italian supplies

2 - Eligibility of Italian content

Financing Cover for non Italian supplies was not allowed

3 - Eligibility of non Italian content (*) of the export contract signed by an Italian company

(*) Local content eligible within the limits set by OECD Regulatory Framework (30%)

4 - Eligibility of supplies by foreign companies participated by Italian companies

Ita

lyF

ore

ign C

ou

ntr

yTraditional Business: new eligibility criteria


Support to internationalization and “market window”

Support to internationalization:

Investments made by Italian companies overseas (acquisitions, joint ventures, investment in fixed tangible or intangible assets, etc.)

Internationalization of Italian banks;

Market window: transactions of “strategic interest” for the Italian economy:

Strategic foreign customers/partners to Italian companies in their activities abroad;

Infrastructures (including domestic infrastructures) supporting the internationalization of the Italian economy;

Strategic imports (power, gas, oil, raw materials for re-exports);

Employment and economic growth in Italy;

Strategic industries: renewable energies, environment, technological innovation.

National Interest Programme: new range of activities


First demand guarantee: from insurance policies to 100% unconditional and irrevocable guarantees (all risks including documentary risk are covered) - Advantages for the borrower: reduction of costs and supporting documents

Project/Corporate bond issuance - advantages for the borrower: (i) lower cost of funding against traditional buyer’s credit, (ii) diversification of funding sources and financial capacity saving with the banking system; (iii) access to a different set of investors in the Capital Markets

Working capital facilities granted to (i) foreign corporate/SPV participated by Italian investors, (ii) Italian exporters

Equity loan cover for the benefit of Italian investors

Political cover for overseas investments

Bid/performance/advanced payment bonds

SACE new financial products: some examples

New products


Why SACE: key benefits

to the Borrowers

To t

he b

an

kTo t

he

borr

ow

er

Risk partner: acting as a risk taker and credit enhancer, SACE decreases syndication risks

Zero Weight: SACE guaranteed assets are zero weighted under Basle I and under Basle II (depending on the local banking regulation)

Flexibility: the new national interest programme widely extends the range of SACE eligible operations

High visibility: SACE support is fully backed by the Italian Government

Competitiveness: longer tenors and attractive all-in cost of funding

Security: transfer of risk and credit risk enhancer

Capacity provider: safeguarding of company’s investments and bank credit lines

Stability: improvement of the balance sheet composition


Africa Sub Saharian

Other Europe and CSI

Latin Amercica

Asia

Middle East

North Africa

North America

Other Countries

European Union

PRI5% Traditional Business

65%

Strategic Interest 16%

Internationalisation14%

Strategic Interest 15%

PRI0%

Traditional Business 61%

Internationalisation 24%

2007

12%

10%

24%

9% 3%0%2%

36%

4%

3Q 2008

SACE: Business lines and geographical exposure 2008


ITALY – RUSSIA: Commercial Flows

The European Union was, in 2008, the main trading partner of the country. Among the EU member States, Germany was the largest exporter to Russia, followed by Italy (EUR 10,5 billion), which was also the second largest importing country (16 billion) from the Russian Federation. Total trade amounted to EUR 26,5 billion (+10% vs 2007) and the Italian trade balance deficit reached EUR 5,6 billion (+11%). Such deficit was primarily due to an increase in the import of energy commodities (72% of total Italian import), while the main Italian exports were from the following sectors: mechanical engineering (31% of the total), textiles and wearing apparel (11%) and furniture (8%). In 2008 the Italian export of goods increased by 9.5%, while the Italian imports from Russia rose by 10%.The Italian companies are mainly involved in the energy (ENI, ENEL), civil aircraft (Alenia Aeronautica), electronics and home appliances (Indesit, Candy and Merloni), food & beverage (Parmalat, Perfetti, Ferrero and Cremonini), motor vehicles (FIAT, Iveco) sectors as well as in the banking one (Gruppo Intesa SanPaolo and Gruppo Unicredit).

altro

19%

elettronica ed

elettrotecnica6%

autoveicoli

5%prod. chimici

e fibre5%

metallurgia e

prod. in metallo

7%

pelli e

calzature8%

mobili

8%

abbigliamento

11%

meccanica

strumentale31%


SACE’s network

Existing offices Monitoring areas Consultants & Advisory

Sao Paulo Johannesburg

Hong Kong

Moscow

Roma Turkey

Balkans


How to contact SACE

Turinc/o ICE - Via Bogino, 13 - 10100 • TurinTel. +39 011 836128 - Fax +39 011 836425

Venice-MestreViale Ancona, 26 - 30172 • Venice - MestreTel. +39 041 2905111, Fax +39 041 2905103

INTERNATIONAL NETWORK

MoscowKrasnopresnenskaja Naberejnaja, 12123610 Moscow - Office n.1202Tel. +7 49 52582155, Fax +7 49 52582156

Hong Kong40/f Suite 4001 - Central Plaza 18, Harbour RoadWanchai, Hong KongTel. +852 36202323, Fax +852 36210227

JohannesburgChester Road, 422193 Parkwood JohannesburgTel. +27 11 8800020, Fax +27 11 8801019

Sao PauloAv. Pauista 1971 – 3° andar01311-300 Sao PauloTel. +55 11 31712138, Fax +55 11 32664051

SACE BT: Piazza Poli, 42 • 00187 Rome Tel. +39 06 6976971 Fax +39 06 697697725

www.sace.it

HEADQUARTERS

RomePiazza Poli, 37/42 • 00187 RomeTel. +39 06 67361 • Fax +39 06 6736225

Branches

MilanVia A.de Togni, 2 - 20123 • MilanTel. +39 02 434499701, Fax +39 02 434499749

ModenaVia Elsa Morante, 71 - 41100 • ModenaTel. +39 059 331201, Fax +39 059 820832


•This presentation has been prepared solely for information purposes and should not be used or considered as an offer to sell or a solicitation of an offer to buy any insurance/financial instrument mentioned in it.

•The information contained herein has been obtained from sources believed to be reliable or has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, SACE does not represent or warrant that the information is accurate and complete.

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sace’s role as business facilitator

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