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Coface Your Trade Risks, Under Control
Chris Short Vice President Coface North America
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Key Facts
Coface Worldwide Trade Facilitator

• Founded in France in 1946, international
  expansion in 1990s
• Subsidiary of Natexis Banques Populaires since
  2002
• 2005 sales of 1.5 billion
• Offices in 60 countries, with partner network
  that expands global reach to 93 countries
• 4,850 employees 85,000 clients
• Rated AA by Fitch, Aa3 by Moodys and AA- by SP

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Coface Strategy

• Coface delivers tools that enhance and support a
  companys credit management practices
• Credit insurance
• Export and domestic credit insurance
• Single risk and political risk guarantees
• Company information and corporate ratings through
  the _at_rating solution
• Receivables management and collection
• Factoring

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Global Service Network

• Coface provides local service to clients in 93
  countries representing over 80 of world trade
  via
• direct presence in 60 countries with 4,850 staff
  members located in 160 cities
• CreditAlliance network comprised of Coface
  subsidiaries and branches worldwide, as well as
  51 credit insurance and company information
  partners

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The Move to Open Account

• Exports from Europe, Asia and Latin America are
  done predominately on open account
• The world is shrinking
• To be competitive, open account terms are a must
• But risks are difficult to quantify
  internationally
• To be successful in providing open account terms,
  it is key to have expertise and information

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Benefits of Selling on Open Account

• Increased Sales
• Lower borrowing costs if credit enhancement is
  used
• Replace costly letters of credit

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Open Account As a Sales Tool

• Builds loyalty
• Better credit terms enhances cash flow for the
  importer
• Ability to develop new markets
• Everyone else is doing it

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Lower Borrowing Costs/More Favorable Banking
Relationship

• Additional security of insured receivables (or
  other enhancements) means lower interest costs
  and offsetting cash balances
• Ability to borrow the financial strength of
  carrier

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Replace Letters of Credit

• Tie up exporters and importers bank lines
• In regions with high interest cost or inflation,
  the real purchase price is much higher than the
  cost at face
• Levy a cost to the exporter through bank fees,
  discrepancy fees, etc.
• Do not build loyalty
• May preclude sale if a competitor offers open
  account terms

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Thank you