Template SACE Presentazione Corporate

1
SACEs Role as Business Facilitator
Moscow, April 6th 2009
2
Index
SACE Group - Introduction
SACEs products
ITALY- RUSSIA Commercial Flows
Contacting SACE
3
SACE Group one group many solutions
SACE supports companies in developing their
business abroad, offering a wide range of credit
insurance and reinsurance products, investment
protection, surety and advanced financial
solutions
Credit insurance, reinsurance and guarantees for
Italian exports and investments
Medium Long Term

100
Short-term insurance services both in the
domestic and foreign market, surety business,
specifically in the construction industry

Short Term Surety
4
SACE Group a strong financial partner
Highlights 2007
312
241
198
167
3Q 08
2005
2006
2007
Gross Premium ( Mln)
Despite Market Turmoil, SACE kept improving the
quality and the liquidity of its assets. 3Q2008
Profit 428,5 mln euro (30 YoY) Claims 14,2 mln
euro (-15 YoY)
5
SACE Group our perception of risk
6
SACE Group a worldwide player
More than 155 countries on cover

• OPEN
• Potential involvement in all kind of
  transactions.
• OPEN WITH RESTRICTIONS
• Restrictions may apply according to
• counterparts (i.e. sovereign)
• amounts (i.e. cap for country or single
  transaction)
• tenors (i.e. short, medium-long term)
• ON A CASE BY CASE BASIS
• No cover available. Potential exemptions
• project finance,
• co-financing with Multilaterals, local
  development banks and other ECAs
• investments
• non-credit risks

7
Risk Coverage
RISK GENERATING EVENTS
POLITICAL NATURE
COMMERCIAL NATURE

• Expropriation, nationalisation or any other
  Government restriction
• General moratorium decided by a foreign
  government
• Currency transfer restrictions due to political
  or economic reasons
• Exchange rate fluctuation due to law provisions
  adopted by the debtor country
• Embargo
• War, civil unrest or natural disasters

• De-jure insolvency of the (private) debtor
• Debtor/guarantor protracted default
• Purchasers arbitrary repudiation, suspension or
  unilateral termination of a commercial contract
• Purchasers arbitrary refusal to accept the
  exported goods and/or services

8
SACE Group new strategic lines of business
National Interest Programme Purpose to support
the Internationalization of Italian companies and
any strategic interest for the Italian Economy
Traditional Business Purpose to support the
Italian exports and diversify SACEs portfolio
Export credit Insurance
Political Risk Insurance
Internationalization
Market Window
Non marketable business, bound by Consensus
Rules
Non marketable business, off Consensus Rules,
supporting the Italian investments abroad
New marketable business, supporting the
Internationalization of Italian Economy
New marketable business, supporting any
strategic interest for the Italian Economy
9
Traditional Business new eligibility criteria
Exporters Country
Italy
Foreign country
2 - Eligibility of Italian content Financing
Cover for non Italian supplies was not allowed
1 - Eligibility of Italian content Limited
flexibility to cover the financing of non Italian
supplies
Traditional eligibility criteria(made in Italy)
Italy
Content
and
3 - Eligibility of non Italian content () of the
export contract signed by an Italian company ()
Local content eligible within the limits set by
OECD Regulatory Framework (30)
4 - Eligibility of supplies by foreign companies
participated by Italian companies
New eligibility criteria(made by Italy)
Foreign Country
10
National Interest Programme new range of
activities
Support to internationalization and market
window

• Support to internationalization
• Investments made by Italian companies overseas
  (acquisitions, joint ventures, investment in
  fixed tangible or intangible assets, etc.)
• Internationalization of Italian banks
• Market window transactions of strategic
  interest for the Italian economy
• Strategic foreign customers/partners to Italian
  companies in their activities abroad
• Infrastructures (including domestic
  infrastructures) supporting the
  internationalization of the Italian economy
• Strategic imports (power, gas, oil, raw
  materials for re-exports)
• Employment and economic growth in Italy
• Strategic industries renewable energies,
  environment, technological innovation.

11
New products
SACE new financial products some examples

• First demand guarantee from insurance policies
  to 100 unconditional and irrevocable guarantees
  (all risks including documentary risk are
  covered) - Advantages for the borrower
  reduction of costs and supporting documents
• Project/Corporate bond issuance - advantages for
  the borrower (i) lower cost of funding against
  traditional buyers credit, (ii) diversification
  of funding sources and financial capacity saving
  with the banking system (iii) access to a
  different set of investors in the Capital Markets
• Working capital facilities granted to (i) foreign
  corporate/SPV participated by Italian investors,
  (ii) Italian exporters
• Equity loan cover for the benefit of Italian
  investors
• Political cover for overseas investments
• Bid/performance/advanced payment bonds

12
Why SACE key benefits
to the Borrowers

• Risk partner acting as a risk taker and credit
  enhancer, SACE decreases syndication risks
• Zero Weight SACE guaranteed assets are zero
  weighted under Basle I and under Basle II
  (depending on the local banking regulation)
• Flexibility the new national interest programme
  widely extends the range of SACE eligible
  operations
• High visibility SACE support is fully backed by
  the Italian Government

To the bank

• Competitiveness longer tenors and attractive
  all-in cost of funding
• Security transfer of risk and credit risk
  enhancer
• Capacity provider safeguarding of companys
  investments and bank credit lines
• Stability improvement of the balance sheet
  composition

To the borrower
13
SACE Business lines and geographical exposure
2008
Strategic Interest 15
PRI 0
PRI 5
Strategic Interest 16
Traditional Business 61
Traditional Business 65
Internationalisation 24
Internationalisation 14
2007
3Q 2008
9
3
0
2
10
12
36
24
4
14
ITALY RUSSIA Commercial Flows
The European Union was, in 2008, the main trading
partner of the country. Among the EU member
States, Germany was the largest exporter to
Russia, followed by Italy (EUR 10,5 billion),
which was also the second largest importing
country (16 billion) from the Russian Federation.
Total trade amounted to EUR 26,5 billion (10 vs
2007) and the Italian trade balance deficit
reached EUR 5,6 billion (11). Such deficit was
primarily due to an increase in the import of
energy commodities (72 of total Italian import),
while the main Italian exports were from the
following sectors mechanical engineering (31 of
the total), textiles and wearing apparel (11)
and furniture (8). In 2008 the Italian export of
goods increased by 9.5, while the Italian
imports from Russia rose by 10. The Italian
companies are mainly involved in the energy (ENI,
ENEL), civil aircraft (Alenia Aeronautica),
electronics and home appliances (Indesit, Candy
and Merloni), food beverage (Parmalat,
Perfetti, Ferrero and Cremonini), motor vehicles
(FIAT, Iveco) sectors as well as in the banking
one (Gruppo Intesa SanPaolo and Gruppo
Unicredit).
15
SACEs network
Moscow
Balkans
Roma
Turkey
Hong Kong
Johannesburg
Sao Paulo
Existing offices
Monitoring areas
Consultants Advisory
16
How to contact SACE
INTERNATIONAL NETWORK
HEADQUARTERS Rome Piazza Poli, 37/42 00187
Rome Tel. [phone] Fax [phone]
Branches Milan Via A.de Togni, 2 - 20123
Milan Tel. [phone], Fax 39 02
434499749 Modena Via Elsa Morante, 71 - 41100
Modena Tel. [phone], Fax [phone]
Moscow Krasnopresnenskaja Naberejnaja, 12 123610
Moscow - Office n.1202 Tel. [phone], Fax
7 49 52582156 Hong Kong 40/f Suite 4001 -
Central Plaza 18, Harbour Road Wanchai, Hong
Kong Tel. [phone], Fax 852
36210227 Johannesburg Chester Road, 42 2193
Parkwood Johannesburg Tel. [phone], Fax
27 11 8801019 Sao Paulo Av. Pauista 1971 3
andar 01311-300 Sao Paulo Tel. [phone],
Fax [phone]
Turin c/o ICE - Via Bogino, 13 - 10100
Turin Tel. [phone] - Fax 39 011
836425 Venice-Mestre Viale Ancona, 26 - 30172
Venice - Mestre Tel. [phone], Fax 39 041
2905103
SACE BT Piazza Poli, 42 00187 Rome Tel. 39
06 6976971 Fax [phone]
www.sace.it
17
Disclaimer

• This presentation has been prepared solely for
  information purposes and should not be used or
  considered as an offer to sell or a solicitation
  of an offer to buy any insurance/financial
  instrument mentioned in it.
• The information contained herein has been
  obtained from sources believed to be reliable or
  has been prepared on the basis of a number of
  assumptions which may prove to be incorrect and,
  accordingly, SACE does not represent or warrant
  that the information is accurate and complete.