PowerPointPrsentation

1
Joël Paillot Director Export Underwriting Allgemei
ne Kreditversicherung Coface AG
2
THE COFACE GROUP

• Strong partners in a strong group Allgemeine
  Kredit Coface and Coface Group
• Worlds leading credit insurance group and
  service provider round the
  credit management, in credit information, trade
  rating and debt management.
• AA by rating agency Fitch IBCA / Aa3 by rating
  agency Moodys
• 4,200 staff members worldwide in the group,
  thereof 700 at AKC
• 83,000 customers of all sizes and trade sectors
  - in 140 countries
• worldwide
• Efficient uniform database worldwide with
  direct access to
• 44 million companies.
• 1.085 million EUR turnover in 2003 / 45.5
  million EUR profit after tax

3
THE COUNTRY RISK _at_RATING

• The country risk _at_rating takes into account the
  following risks
• Political factors
• risk of stronger fluctuation of the exchange rate
• debt service of a country to foreign investors
• risk of a sudden sharp devaluation (inflation)
• risk of a systemic crisis in the banking sector
• cyclical risk
• payment experience (in short-term transactions)

4
THE COUNTRY RISK _at_RATING
There are 7 different rating grades A1 to A4
(investment grades) The country's political and
economic Environment makes the probability of
payment defaults quite low. The situation of the
companies depends more on their particular sector
of activity.
5
THE COUNTRY RISK _at_RATING
B C D (speculative grades)
The economic and political environment faces
ongoing uncertainties and is likely to affect the
companies payment behaviour.
6
THE COUNTRY RISK _at_RATING
The country risk _at_ratings are now available for
140 countries and regularly updated on the web
site


www.cofacerating.com
7
THE 10 NEW EU MEMBERS AS PER MAY 2004
Sept. 2003
Jul 2003
Apr 2003
Dec 2002
Sep 2002
Jan 2002
Apr 2001
Jan 2001
A2
 
 
 
 
 
 
A2
Hungary
A2
 
 
 
 
 
 
A3
Czech Republic
A4
 
 
 
 
A4?
A4
A3
Poland
A3
 
 
A4
B?
 
 
B
Slovakia
A2
 
 
 
 
 
 
A2
Slovenia
A4
 
 
 
 
 
 
A4
Lithuania
A4
 
 
 
 
 
 
A4
Latvia
A3
 
 
 
 
 
 
A3
Estonia
A3
 
 
 
 
 
Malta
A3
A3
 
 
 
 
 
Cyprus
A3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8
SLOWAKIA A3
area 49,000 km2Population 5.4 million GNP per
capita 47 of the EU averageGNP growth 4.2
(2003) 4.2 (2004) 4.9
(2005)inflation rate 8.5 (2003) 7.5
(2004) unemployment rate 17.1 current account
bal. - 3.6 hourly wage 3.06 Euro - EU
(15) 22.21 Euro EU (25) 19.09
Euro (lower than in the
Czech Rep., Hungary and Poland) one single tax
rate for companies since 1 Jan 2004 19
9
SLOWAKIA (A3) COFACE ACTIVITIES
Information and debt collection Coface
Intercredit Known companies 530,000 Total
exposure 335 million Euro
10
SLOWAKIA (A3) TRADE
Privatization The government would like to
retain a share of 51 in strategically important
companies (telecom, railway,energy etc.).
Foreign trade Export
Import with the EU 59.4
53.3 Main partners Germany
29.5 23.7
Austria 11.1
7.5 France
2.9 4.0 Russia
1.3 12.9

11
SLOWAKIA (A3) TRADE
Investors Netherlands, Germany and France
Companies PSA, Opel, VW (second largest
employerand most important exporter of the
country), Hyundai, Ruhrgas, Deutsche Telekom, Gaz
de France, US Steel, Carrefour etc.
12
SLOWAKIA (A3) ACTIVITY SECTORS
Automobile (VW), energy, mobile
telephone Textiles, health, agriculture
13
SLOWAKIA (A3) WORKING POPULATION
Service sector 55 Industry 40
Agriculture 5
14
SLOWAKIA (A3) INSOLVENICIES
Company insolvencies 7,488 in 2003 7,716 in
2002 Insolvency rate 1.5
3.0
15
SLOWAKIA (A3) NONPAYMENT INDEX
PAYMENT INCIDENTS INDEX SLOVAKIA
Credit period 50 - 70 days Default in
payment 20 - 40 days delayed payments 70

16
SLOWAKIA

• Many positive reforms carried out since 1998.
• Labor laws (employment and dismissal) favoring
  theemployers
• Store opening hours 24 hours a day, 7 days a
  week
• 
  

17
SLOWAKIA

• Positive and negative aspects
• rapid export growth ( 23 )
• heavy dependence on the economy in Germany
• low wages, skilled employees
• imbalance between the western and eastern part of
  the country
• high unemployment (4 in the capital, up to 20
  in the East
• public debt remains high - up to 45 of the GNP

18
Thank you very much for your attention ... Do
you have any further questions? The
presentations can be downloaded from
www.export-invest.com or requested from Katja
Wölk-Michel, Marketing Department
(katja.woelk-michel_at_ak-coface.de).