EDC

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EDC FITT Trade Summit WorkshopGoing back to
basics

• October 28thth, 2008
• Saskatoon
• Presented by Scott Ferris, FITT
• Justine Hendricks, EDC

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Agenda

• A few words on the current state of affairs
• What is going back to basics?
• Who we are
• What we do
• EDC innovation around SME needs
• FITT training and support for SMEs
• FITT recommendations
• A few western examples
• Closing the loop on back to basics

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Recent Headlines

• Bank of Canada sees sluggish growth until 2010
  CBC October 23rd
• Loonie dives, then climbs back, in wild session
  Globe and Mail October 23rd
• Bank economists see little growth ahead Globe
  and Mail October 6th

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The Big Ones

• THE END OF THE AMERICAN ORDER
• Globe and Mail October 4th
• Now Canada faces the demons
• Globe and Mail July 17th
• Slack demand for Canadian exports means narrowing
  margins for Canadian companies BNN October 2nd
  

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What is going back to basics?

• With the recent turmoils around the world many
  are asking what to do?
• Critical situations such as these bring us back
  to fundamentals in terms of business tactics and
  strategies for success
• History has shown that those who persevere
  through such times and focus on the basics to
  achieve success are those who will in the end
  succeed

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Who we are?

• EDC will be recognized as a centre of expertise
  for small exporters and export-ready companies in
  Canada.
• We will be proactive in offering tailored and
  streamlined solutions to the evolving Canadian
  small business segment to increase the number of
  Canadian small businesses that are engaged in the
  global market place and to help them successfully
  expand their international business.

EDC Small Business
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Our success measures

• We respond to a greater variety of Small Business
  exporter needs that will generate more customers
  for EDC
• Create a predictable experience for all Small
  Business customers that will contribute to
  building promoters of EDC and strong client
  appreciation
• Create a dynamic environment that develops
  employees and inspires them to strive for service
  excellence
• Broaden the number of partners leveraging EDCs
  Small business solutions that will generate more
  partnership transactions
• Work in unison with our regional colleagues,
  sector teams and underwriting teams to grow EDCs
  network and customer base across

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What is Small Business at EDC ?

• Companies with total annual sales of 5M or less
• Typically have little or no relationship with a
  commercial bank
• Can be export ready, occasional exporter to
  growth exporter
• Represents 50 of the customer base

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Products Services Tailored to SMEs

• EDC insurance solutions can help manage the risks
  associated with a new, unknown foreign customer.
  New Single Buyer Protect against losses when your
  foreign buyer cant or wont pay
• EDC financing solutions can help finance the
  costs of your export contracts . New EEC
• EDC bonding solutions can help manage currency
  fluctuations and lessen the need for collateral
  (free up working capital). Get bonds issued
  without tying up your cash
• EDC knowledge tools can help stay up-to-date on
  critical economic and political developments in
  foreign markets, gauge level of readiness to
  export and access knew markets.

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EDC Products Services

• EDC Political Risk Insurance (PRI) helps protect
  overseas assets, such as equipment and
  manufacturing facilities, for up to 90 per cent
  of losses against political risks such as
  (breach of contract conversion expropriation
  non-payment by a foreign government political
  violence  repossession and transfer.
• EDC Security Compliance Loan helps you to finance
  the security upgrades your company may need to
  meet U.S. border security requirements, as
  defined by the Customs-Trade Partnership against
  Terrorism (C-TPAT). The loan up to 150,000
  can be used to cover up to 85 per cent of your
  security-upgrade costs.

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Product Innovation in Small Business

• Single Buyer Insurance
• Structured for small exporter who may have 1 or 2
  exports/year
• Can increase access to working capital
• Open to product exports as well as services
• Purchasing 6 months of coverage up to
  250,000(USD) of insurance exposure

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Product Innovation in Small Business

• Export Express Credit
• UNSECURED LENDING FACILITY UP TO 50,000
• Open can be repaid without penalty any time
• Accessible to export ready companies
• Can be used for
• Costs associated with a specific export contract
  (equipment, travel )
• Market development (trade shows, brochures,
  market research )
• Web site development
• Patenting costs, certification

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Resources for the Exporting Community
Publications Subscriptions
On-line Resources

• Foreign Market Information
• Credit Opinions on Foreign Buyers
• Exporting 101

www.edc.ca/exporting101
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FITT

• The leading international trade training and
  professional certification authority
• More than 900 members
• 60 educational partners and the World Trade
  Center Association
• CITP Certified International
• Trade Professional designation
• recognized as the highest mark of
• professionalism in international
• trade

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The more things change

• Whats changing
• U.S. dominance
• Global sourcing
• Canada E.U. trade negotiations
• Adaptation in the face of technology

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the more they stay the same

• Whats stable
• Canadas need to be an exporter
• Growth of emerging economies
• Recognition of Canadian quality
• Canadas Free Trade Agreements

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Focus on the basicsThe Criteria for Export
Readiness

• Competitiveness
• The Right Product
• Willingness to Adapt
• Export Champion HR Resources
• Adequate Financial Resources
• Ability to Cope with Increased
• Demand
• Realistic Expectations

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A few western success stories

• Account receivable insurance is gaining traction
  in western Canada for in the agri-food, trading
  and processing industries. Its use is focused
  not only on non payment but more and more on
  repudiation and as a lever with the banks
• Bonding services have always been utilized
  specially in the oil and gas industry. With an
  increase in uncertainty many smaller companies
  looking to persevere in the market are able to
  utilize our bonding services as a source of
  security towards advance, performance and/or
  warranty bonds

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A few western success stories

• Small grain processors are utilizing bonding
  services as a means to support their licensing
  requirements with the Canadian Grain Commission
• Small businesses are leveraging this opportunity
  to revamp their premises and focus on their
  exporting opportunities our guarantee program
  has helped many companies in this process as they
  invest in upgrading or expanding their facilities
  geared towards an international market

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Focus on the basicsThe Criteria for Export
Readiness

• Competitiveness
• The Right Product
• Willingness to Adapt
• Export Champion HR Resources
• Adequate Financial Resources
• Ability to Cope with Increased
• Demand
• Realistic Expectations

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Final Note

• Be first
• Be best
• Be different
• Be the customers choice
• Be open
• And remember there are partners
• in the marketplace that are here to
• support you!

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Dont Take our Words for it.

• http//www.edc.ca/english/events_15511.htm?HPHP-B
  M2-E