Anders Utkilens Rederi AS

1
DnB NOR Bank ASA Shanghai Branch
2
DnB NOR Bank's International Strategy based on
Core Competencies

• Norwegian and Nordic customers abroad

Shipping Offshore Logistics Energy
Seafood
3
A continuous growing international presence
2008 Athens, GreeceSantiago de ChileMumbai,
India
2005 DnB NOR MonchebankDnB NORD PolandDnB NORD
EstoniaDnB NORD LithuaniaDnB NORD Latvia
2006 DnB NOR Houston DnB NOR Shanghai
2007 Expansion in Poland / Baltics (BISE Bank)
4
DnB NOR Bank Asia


Branch Regional HQ Asia 65 employees 5 in
Corporate Finance/Investment Banking
New Representative Office 2008
Branch17 employees
Holding 20 of DnB NOR's portfolio in
Shipping/Offshore/Logistics - 60 of which are
Asian owners
5
DnB NOR International Strategy applied in Asia

• Narrow, Competence based Strategy - Highly
  Focused
• Nordic Trade and Industry Singapore Shanghai
• International and Local Shipping, Singapore
  Shanghai
• Offshore and Logistics Singapore
• - starting Shanghai
• Energy Singapore
• - starting Shanghai
• FX/Treasury products Singapore Shanghai

6
DnB NOR Shanghai Corporate Banking Services

• Foreign currency based facilities (short/long
  term)
• Working capital loans
• Investments loans
• Export credits
• Syndicated loan facilities
• Local currency via local bank

• Cash Management
• All relevant Accounts
• International Payments
• Electronic Banking (2008)
• All activity mirrored to Norway
• Treasury
• Spot (FX/FX, FX/RMB)
• Derivatives (FX Interest Rates)

FX /Payments
Financing

• Trade Finance / Guarantees
• Export / Import Letters of Credit
• Shipping guarantees
• Payment / Advance Paym. G'tees
• Performance Bonds
• Stand-by Letters of Credit
• Tender Bonds (Bid Bonds)

• 26 years experience in China
• All Bank Financing matters
• How to set up business
• Regulatory issues
• Training for your local staff
• - Risk Management / FX

Advice
Risk Management
7
Some of the interesting companies in China
8
Shipping Milestones in Shanghai, so far
July 2006 First Agency Role USD 245.6 million
Syndicated Loan to China Shipping Development
September 2006 USD 38.4 million bilateral Term
Loan Secured by PRC Flag Vessels to Shanghai Time
Shipping
9
Financial crisis - The basics....
10
China and the Global Crises

• The number of firms to crumble or be bought out
  is increasing

100bn
100bn
85bn
11
Retrenched Lehman Brothers Bank employees
blockade entrance to headquarters.

•  

12
How will the crisis affect China ?

• Global markets and trade means - No escape
• But the financial crisis in US and EUR - now
  mainly a liquidity crisis
• Financial institutions afraid of counterparty
  risk
• World's financial system frozen
• Liquidity is the lubricant of any financial
  system
• Chinese banks luckily not sophisticated enough
  to take part in those transactions
• And they are liquid in CNY due to high deposits
  (135 of loans)

13
How will the crisis affect China ?

• Misconceptions
• Chinese economy is NOT mainly export driven - It
  is an inside out economy driven by domestic
  expenditure
• Factory closures in the South NOT equal to
  economic malaise these are fragmented, small
  scale, high cost, low efficiency firms
• Property sector problems is only at the Upper
  Half. The Bottom Half is supported by approx. 4m
  new urban households annually.
• Chinese banks are in BETTER shape than their
  international counterparts huge turnaround
  during last 10 years.
• NPL now at 5 instead of 50 in 1997
• Chinese companies are now making money 11
  compared to 1 in 1999.

14
Understanding Chinas economic cycles ?

• 3 decades of reform
• Export does little to explain upswings. Even the
  last 3 years contributed only 2.3 points to GDP
  growth.
• Boom to Bust explained by domestic demand
  contributed 9 to GDP growth in the last 3 yrs
• Downturns centered around 1989 and 1998 (5-yr
  cycles)
• 3 ingredients for Hard Landing
• - Cyclical Downturn
• - Exogenous shock
• - Structural problem

15
Understanding Chinas economic cycles ?

• 1989

1998
16
Understanding Chinas economic cycles ?

• But this time around

17
Asia/China Conclusion

• Asia and China cannot escape the next phase
• Reduced demand from US and EUR
• China GDP growth of 8 ? for the next few years
• But by staying liquid, Asian financial
  institutions will have once-in-a-lifetime
  opportunities to
• - Buy global presence
• - Buy/steal local and regional market share
• - Monetize liquidity (e.g. buying distressed
  assets)
• - Learn from the mistakes of others
• (but ALM and credit risk critical need
  resources)
• Oliver Wyman The Asia Century in Financial
  Services will have begun

18
??!
Thank you!
19
Contact DnB NOR Shanghai Branch

• DnB NOR Bank ASA Shanghai Branch901, Central
  Plaza, 381 Huai Hai Zhong Lu, Shanghai, 200020,
  P.R.China
• Tel. (general line) 86 21 6132 2888 Fax.   
  86 21 6132 2999 E-mail.        
  dnbnor.china_at_dnbnor.noweb www.dnbnor.no/shangha
  i

Shipping Jean Chen DID (86 21) 6132
2812jean.chen_at_dnbnor.no
GM Espen Lund DID (86 21) 6132
2801 espen.lund_at_dnbnor.no
DnB NOR Markets Emily Li Yan DID (86 21) 6391
6262 emily.yan_at_dnbnor.no
Energy, Trade Industry Vidar Andersen DID (86
21) 6132 2824 vidar.andersen_at_dnbnor.no