1 March 2, 2012HKCBA Workshop

March 02, 2012

Business Development Bank of Canada

Hong Kong Canada Business Association Workshop

2 March 2, 2012HKCBA Workshop

BDC Background

Established in 1950s, Business Development Bank of Canada (BDC) is currently serving 29,000 SME clients across Canada

BDC is a financial institution owned by the government of Canada

Our mission is to help create and develop Canadian businesses through financing, venture capital and consulting services, with a focus on small and medium-sized enterprises (SMEs)

Services available across Canada in both official languages through a network of more than 100 business centres

3 March 2, 2012HKCBA Workshop

BDC Financial Services

BDC recently developed a Globalization Expansion Strategy that combines financing and consulting services to support the globalization efforts of SMEs.

Market Xpansion Loan – Dedicated to offer a flexible loan, to new and exiting clients. It is dedicated to financing market development strategies, prospecting, exporting, business growth strategies, innovation, technology and SR&ED

Market Xpansion Plus Loan – Loan secured with tangible and intangible assets outside Canada. It is dedicated to financing Canadian direct investment abroad

4 March 2, 2012HKCBA Workshop

BDC Consulting Services

Phase Company Needs Global Expansion Services

I. Opportunities Identification

a) Rationale to enter a foreign market: Short term vs. Long term

b) Rationale for selected region(s)

1. Seminars and workshops on doing business in targeted countries

II. Resources Assessment

a) Market potentialb) Adaptability of product/solutionc) Financial capacityd) Management and shareholders commitment e) Talent pool

1. Provide Global Readiness Assessment (GRA)

2. In-country market reports 3. Preliminary go-to-market strategy

III. Market Exploration

Explore several locations within targeted regions and investigate:a) End user habit b) Regulationsc) Competitiond) Supply chain and potential partnerse) Production costs

1. Targeted mission2. Accompanied country visits3. Market Expansion loans (< 100k)

IV. Business Model Validation

a) Validate previous assumptionsb) Revise go-to market planc) Due diligence on identified partners

1. Credit Investigation report2. Localization strategy 3. Market validation

V. Business Plan Execution

a) Confirm commitmentb) Finalize cash flowc) Establish performance measured) Establish local presence

1. Implementation support2. Financing

5 March 2, 2012HKCBA Workshop

Target Regions

Primary: China (including Hong Kong & Taiwan)IndiaMiddle East VietnamBrazil

Secondary: Singapore

MalaysiaJapanKoreaEuropeMexico

6 March 2, 2012HKCBA Workshop

Global Opportunities I

Plaza Developer – China

Objective : The developer plans to build 30 large-scale plazas per year over the next 10 years. These large-scale buildings include hotels, office buildings, public space, shopping malls, entertainment facilities, and apartments. The developer is looking for Canadian suppliers that can provide solutions to reduce construction cost while conserving energy.

7 March 2, 2012HKCBA Workshop

Global Opportunities II

Low Cost Housing – India

Objective: BDC is working with a large infrastructure player in India to address low cost housing needs in India

8 March 2, 2012HKCBA Workshop

Thank You