transcript
- 1. EDC IN GREATER CHINA Presented by: Jeff MacArthur Senior
Account Manager May 2, 2017
- 2. 2 To support and develop, directly or indirectly, Canadas
export trade and Canadian capacity to engage in that trade as well
as to respond to international business opportunities Canadas
Export Credit Agency Offers financial solutions to help Canadian
exporters expand their international business Crown corporation
wholly owned by Government of Canada Financially self-sustaining
and operates on commercial principles About EDC WHO WE ARE AND WHAT
WE DO EDCs Mandate
- 3. 3 MOSCOW RUSSIA 17 OFFICES ACROSS CANADA MONTERREY MEXICO
MEXICO CITY MEXICO BOGAT COLOMBIA LIMA PERU SANTIAGO CHILE ISTANBUL
TURKEY LONDON ENGLAND DSSELDORF GERMANY RIO DE JANEIRO BRAZIL SAO
PAULO BRAZIL JOHANNESBURG SOUTH AFRICA MUMBAI INDIA DUBAI UAE NEW
DELHI INDIA SINGAPORE SHANGHAI PEOPLES REPUBLIC OF CHINA BEIJING
PEOPLES REPUBLIC OF CHINA JAKARTA INDONESIA EDCS FOREIGN
REPRESENTATION SYDNEY NEW 2017
- 4. 4 EDCS BUSINESS STRATEGY FOR CHINA EDC supported almost 5.6
Billion of Canadian trade with China in 2016 (4.8 Billion with
credit insurance and 750 Million with financing) EDC is actively
seeking to grow Canadas trade with China by supporting business
opportunities, Canadian trade and investment in China Key sectors
of opportunity include: Aerospace, Automotive, Cleantech, Consumer
Goods, Agri-Food and Oil and Gas EDC will continue to focus on
increasing Canadian investment opportunities, supporting Canadian
affiliates and their parent companies and leveraging in market
relationships
- 5. 5 China was New Brunswicks 3rd largest export destination in
2015 with exports of $87.1M Canadian exports to China have
increased by 79% between 2008 and 2016 - feeding Chinas demand for
raw materials and technology Top exports include precious metals,
minerals, pulp & paper, petroleum, oilseeds and aerospace
products & parts Canadas Merchandise Exports to Greater China
and EDCs Volume (Mainland China represents 67% of Canadas total
Exports to Greater China in 2016) EDC & GREATER CHINA (GREATER
CHINA INCLUDES MAINLAND CHINA, HONG KONG, MACAO & TAIWAN) 0
5000 10000 15000 20000 25000 30000 2008 2009 2010 2011 2012 2013
2014 2015 2016 $3,739 $3,100 $5,664 $10,750 $7,610 $8,451 $8,597
$5,569 $5,579 $13,216 $13,349 $15,849 $20,767 $22,690 $26,284
$24,515 $24,784 $23,714 EDC BV Exports
- 6. 6 If you know you are going to get paid You can Enter into
new markets and expand in existing markets Be more competitive by
offering more flexible payment terms Your banker can: Provide you
with more working capital financing HOW CAN EDC HELP? MAKE SURE YOU
GET PAID
- 7. 7 EDC credit insurance covers 90% of losses due to:
Bankruptcy Default (not bankrupt but not paying) Repudiation
(refusal to accept the goods) Political Risks which prevent the
goods from entering the country or the buyer from sending the
payment out of the country HOW CAN EDC HELP? MAKE SURE YOU GET
PAID
- 8. 8 EDC offers two credit insurance solutions: Accounts
Receivable Insurance Available online, through EDC account managers
or through select insurance brokers Fully customizable coverage for
terms of up to one year No restrictions on credit limits (subject
to credit approval) Trade Protect Available exclusively online and
can be in place in as little as 10 minutes Coverage for amounts up
to USD500,000 (subject to credit approval) You pick which customers
you want to insure Standardized coverage HOW CAN EDC HELP? MAKE
SURE YOU GET PAID
- 9. 9 EDC can provide your lender with loan guarantees to
finance your export business or your foreign affiliates (available
through all banks, UNI and select credit unions) Guarantees range
from 50% to 100% depending on the size of the guarantee and the
type of assets being financed Talk to your bank tell them how EDC
could help them support your growth and help them do more business
HOW CAN EDC HELP? LOAN GUARANTEES
- 10. 10 EDC can help with your international business related
activities by providing guarantees on loans to finance: Ongoing
working capital needs Financing receivables and inventory Costs
related to export contracts Term loans for equipment Federal and
provincial Scientific Research & Development Tax Credits (SRED
Claims) Foreign domiciled inventory Foreign acquisitions Foreign
affiliate working capital needs Indirect exports sales to a company
that exports Things we havent thought of yet HOW CAN EDC HELP? EDC
GUARANTEE PROGRAM
- 11. 11 HOW CAN EDC HELP? MANAGE FX RISK Foreign exchange
volatility can wipe out profit margins (or even create a loss). The
lower the profit margins, the greater the impact of currency
volatility Banks and FX brokers can set up FX hedging facilities to
protect you from that volatility but they will need security. For
many companies, providing that security will negatively impact
working capital EDC can provide a guarantee to your bank or FX
broker to secure a foreign exchange hedging facility to help
protect you against fluctuation in foreign exchange rates
- 12. 12 HOW CAN EDC HELP? SUPPORT BONDING NEEDS Many project
oriented companies need to issue bonds in connection with projects
they are bidding or working on. For projects outside of Canada and
for some projects in Canada such as mining or oil and gas, EDC can
provide the bank with a 100% guarantee to support a wide range of
bonding needs Performance Bonds Bid Bonds Advance Payment Bonds
Holdback Bonds
- 13. 13 There are currently over 250 Canadian firms with
investments in China, including firms of all sizes and industry
sectors The stock of Canadian investment in China has increased on
average by 16% annually since 2000, reaching $12.4 billion in 2015
EDC can help create financial capacity for Canadian investment into
China through joint support with the Canadian banks Accounts
Receivable cover for the China domestic sales by a 100% owned
Canadian affiliate may be possible CANADIAN DIRECT INVESTMENT
ABROAD (CDIA)
- 14. 14 KEY EDC CONTACTS Chia Wan Liew Chief Representative -
China (Shanghai) cliew@edc.ca Peter Xu Sr. Regional Manager
(Shanghai) pxu@edc.ca Monica Fan Regional Manager (Beijing)
mfan@edc.ca Shelly He Coordinator (Shanghai) she@edc.ca Jeff
MacArthur Senior Account Manager - Moncton jmacarthur@edc.ca Bryan
Nugent Account Manager Moncton bnugent@edc.ca Luisa Rebolledo Chief
Representative - Asia lrebolledo@edc.ca Marti Falcone Regional
Manager - Asia mfalcone@edc.ca Ladislau Papara Regional Manager -
Asia lpapara@edc.ca IN CHINA: IN CANADA: