EDC Presentation

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EDC Presentation Export Trade Conference
September 2008 Tom Prowse, EDC Vancouver
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Corporate Mandate

• At EDC our mandate to support and develop,
  directly or indirectly, Canadas export trade and
  Canadian capacity, to engage in that trade, as
  well as to respond to international business
  opportunities, guides everything we do.

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2007 Achievements

• Supported 77.7 billion in exports and
  international investments in more than 187
  markets around the world
• Supported 20.8 billion in developing markets
• Served 6,805 customers (of which 5,870 were
  SMEs)
• 23.1 billion in total assets

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What is risk?

• Risk is uncertainty, compounded by the passage
  of time.
• Managed risk is part of business. Unmitigated
  risk is like gambling.

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What do you know?

• As we know, there are known knowns there are
  things we know we know. We also know there are
  known unknowns that is to say we know there are
  some things we do not know. But there are also
  unknown unknowns -- the ones we don't know we
  don't know. Donald Rumsfeld.

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Payment Terms

• Cash in Advance
• Letter of Credit
• Documentary Collection
• Cash Against Docs
• Open Account

• No risk to seller
• Banks deal in documents only
• Repudiation
• Repudiation
• Default

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Too big to fail?

• Enron
• Worldcom
• Parmalat

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Additional Risks in Exporting

• Currency Fluctuations Hedge
• Contract Frustration Insure
• W.I.P. Insure
• Transfer and conversion Insure
• Creeping Expropriation Insure
• Political Violence - Insure

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Thank You

• www.edc.ca
• tprowse_at_edc.ca