Export Development Canada Presentation to Canadian Forage and Grasslands December 14, 2010

Export Development CanadaPresentation to

Canadian Forage and Grasslands

December 14, 2010

About EDC

Canada’s Export Credit Agency

Crown corporation wholly owned by Government of Canada   

Financially self-sustaining

Operates on commercial principles

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2009 Performance Highlights

Record business volume of $82.8 billion

Served 8,469 customers

Supported business in 190 countries

$18.7 billion in emerging markets

Contributed to 5% of GDP, supporting 642,000 jobs

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Lima, Peru

Supporting Business Worldwide

EDC’s foreign representation

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North America / Caribbean $50.3B (61%)

Asia-Pacific $12.6B (15%)

Europe $10.2B (12%)

South / Central America $4.5B (5%)

Africa / Middle East $5.0B (6%)

% = percentage of EDC’s total business volume

Location of EDC Representation

Monterrey, MexicoMexico City, Mexico

Santiago, Chile

Warsaw, Poland

São Paulo, Brazil

Moscow, Russia

Rio de Janeiro, Brazil

Abu Dhabi, UAE

Mumbai, India

New Delhi, India

Beijing, People’s Republic of China

Shanghai, People’s Republic of China

Singapore

Istanbul, Turkey

Panama (Opening in September)

Risk Mitigation

Insurance Products

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Accounts Receivable Insurance

Mitigates risks in unknown markets with unknown customers

Increases margin value on operating credit

Used as a marketing tool to provide short term buyer credit

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Political Risk Insurance

Insures assets or investments against

Expropriation (creeping or outright)

Political Violence

Conversion

Breach of Contract

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Surety and Bonding

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Bank Guarantees

Performance Security Guarantee (PSG)

Indemnifies the Bank for 100% of L/C issued in support of Bid Bond, Performance Bond or Warranty Bond.

Can be augmented with Performance Security Insurance (PSI) to cover wrongful of L/C.

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Bank Guarantees

Financial Security Guarantee (FSG)

Indemnifies the Bank for 100% of L/C issued in support of security requirements. (i.e. CGC Grain Bond, supplier deposit, foreign line of credit)

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Financing

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Financing

Canadian Direct Investment Abroad

Provides direct financing for assets or investments abroad

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Financing

Buyer Financing

Provides term financing for buyers of Canadian goods and services (Direct and/or Indirect)

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Financing

Export Guarantee Program

Provides 50% - 90% government guarantee to Bank in order to provide additional security value for export projects

EDC shares in security held by the Bank

Guarantee Fee is for the account of the client. (0.25bps set + quarterly flat fee)

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