Caterpillar Financial Deborah Butler International Credit Manager

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Caterpillar FinancialDeborah ButlerInternationa
l Credit Manager
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Cat Financial Marine Global Coverage
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Financing for the Marine Industry

• Types of Financing
• Construction Financing
• New Vessel Financing
• Repower Financing
• Floorplan Financing (Pleasure Craft)

• General Lending Terms
• Must be CAT- or MaK-powered
• Loan terms up to 10 years
• Flexible repayment schedules
• Fixed or floating interest rates
• Cross border multi-jurisdictions
• US Dollar, Euro, other major currencies

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Why Caterpillar Financial
Count on Cat Financial for world-class, global
financing solutions.
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Why Caterpillar Financial
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Our Current State
New Business Volume
2 Billion Portfolio (2Q08)
The Portfolio is Healthy and Growing
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Industry Analysis

• 1. The Marine Industry today continues to be
  strong.
• However, as a Finance Company we need to think
  long-term
• Large orderbook over the last 5 years
• Significant ship deliveries from 2009 impact
  on demand
• Which segments will remain stable over the next
  5 10 years?
• Offshore Supply
• Tankers
• Custom Pleasure Craft
• Cruise Ships

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Industry Analysis Through 2013
Shipping Sector Lending Looks Set to
Tighten LONDON (Reuters) - September 12, 2008 -
Shipping groups have faced further tightening in
lending conditions in past months, as market
uncertainty has grown and banks' capacity to lend
has weakened. Ambitious building programmes by
many shipping companies around the globe have
created big financing needs in the shipping
sector where orders are placed years ahead of
vessel deliveries. Many ship owners and yards
face crimped liquidity, leading to delays and
even cancellations, which in turn can dampen
tonnage growth. Lending conditions can therefore
determine how much new tonnage enters the market
moving forward. "There has been a further
tightening (in lending conditions) over the
summer," Harald Serck-Hanssen, head of Norwegian
bank DnB NOR's shipping and offshore unit, said.
Serck-Hanssen said some banks had shut their
books for the year. Global shipping loans fell
23 percent to 13.31 billion in the first half of
2008 from the same period last year, according to
data from Reuters Loan Pricing Corp. German
banking group Westdeutsche Landesbank closed down
its shipping unit about a month ago, following
restructuring measures. In June, several players
in the industry said "stormy weather" was
buffeting them and that financing looked
increasingly difficult. Serck-Hanssen noted that
Nordic banks' costs of borrowing money, had again
increased. He also predicted banks would
increasingly turn to Asia as a consequence of
rising costs when looking to syndicate, as Asian
banks have not been hit as hard as American or
European peers. Reporting by Reuters

• 1. The Marine Industry today continues to be
  strong.
• However, as a Finance Company we need to think
  long-term
• Large orderbook over the last 5 years
• Significant ship deliveries from 2009 impact
  on demand
• Which segments will remain stable over the next
  5 10 years?
• Offshore Supply
• Tankers
• Custom Pleasure Craft
• Cruise Ships

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Industry Analysis Through 2013

• 1. The Marine Industry today continues to be
  strong.
• However, as a Finance Company we need to think
  long-term
• Large orderbook over the last 5 years
• Significant ship deliveries from 2009 impact
  on demand
• Which segments will remain stable over the next
  5 10 years?
• Offshore Supply
• Tankers
• Custom Pleasure Craft
• Cruise Ships

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Summary

• We are in the Marine business
• We will continue to grow and expand
• We will be aligned with CMPS Dealers
• We have a strategy
• We have the process
• We will succeed together!

Questions?