Transcript Template SACE Presentazione Corporate

SACE’s Role as Business Facilitator
Moscow, April 6th 2009
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Index
SACE Group - Introduction
SACE’s products
ITALY- RUSSIA Commercial Flows
Contacting SACE
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SACE Group: one group many 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
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
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SACE Group: a strong financial partner
Highlights 2007
Gross Premium
Outstanding Guarantees
€ 312 Mln
312
€ 33.600 Mln
241
Net Profit
Shareholder’s Funds
Rating (Moody’s)
€ 377 Mln
198
€ 5.772 Mln
Aa2
2005
Employees
167
2006
2007
3Q 08
511
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)
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SACE Group: our perception of risk
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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
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Risk Coverage
RISK GENERATING EVENTS
POLITICAL 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
COMMERCIAL NATURE
• De-jure insolvency of the (private) debtor
• Debtor/guarantor protracted default
• Purchaser’s arbitrary repudiation, suspension or
unilateral termination of a commercial contract
• Purchaser’s arbitrary refusal to accept the
exported goods and/or services
• Embargo
• War, civil unrest or natural disasters
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SACE Group: new strategic lines of business
Traditional Business
National Interest Programme
Purpose: to support the Italian exports and diversify
SACE’s portfolio
Purpose: to support the Internationalization of Italian
companies and any strategic interest for the Italian Economy
Export credit
Insurance
Political Risk
Insurance
“Non marketable” business,
bound by Consensus Rules
“Non marketable” business,
off Consensus Rules,
supporting the Italian
investments abroad
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Internationalization
New “marketable” business,
supporting the
Internationalization
of Italian Economy
Market Window
New “marketable” business,
supporting any strategic
interest for the Italian
Economy
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Traditional Business: new eligibility criteria
Exporter’s Country
Content
Italy
Italy
Foreign country
1 - Eligibility of
Italian content
2 - Eligibility of
Italian content
Limited flexibility to cover
the financing of non Italian
supplies
Financing Cover for non
Italian supplies was not
allowed
Traditional eligibility criteria
(made in Italy)
Foreign Country
…and…
3 - Eligibility of non
Italian content (*) of
the export contract
signed by an Italian
company
4 - Eligibility of
supplies by foreign
companies participated
by Italian companies
New eligibility criteria
(made by Italy)
(*) Local content eligible within
the limits set by OECD
Regulatory Framework (30%)
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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.
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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 buyer’s 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
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Why SACE: key benefits
to the Borrowers
To the bank
 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
To the borrower
 High visibility: SACE support is fully backed by the Italian Government
 Competitiveness: longer tenors and attractive all-in cost of funding
 Security: transfer of risk and credit risk enhancer
 Capacity provider: safeguarding of company’s investments and bank credit lines
 Stability: improvement of the balance sheet composition
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SACE: Business lines and geographical exposure 2008
Strategic Interest
16%
PRI
5%
Internationalisation
14%
Strategic Interest
15%
Traditional Business
65%
PRI
0%
Traditional Business 61%
Internationalisation
24%
2007
3Q 2008
9%
3%
0%
10%
2%
Africa Sub Saharian
Other Europe and CSI
Latin Amercica
12%
Asia
36%
Middle East
North Africa
North America
Other Countries
European Union
24%
4%
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ITALY – RUSSIA: Commercial Flows
prod. chim ici
e fibre
5%
elettronica ed
elettrotecnica
6%
autoveicoli
5%
altro
19%
m eccanica
strum entale
31%
m etallurgia e
prod. in
m etallo
7%
pelli e
calzature
8%
m obili
8%
abbigliam ento
11%
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).
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SACE’s network
Moscow
Balkans
Roma
Turkey
Hong Kong
Sao Paulo
Existing offices
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Johannesburg
Monitoring areas
Consultants & Advisory
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How to contact SACE
HEADQUARTERS
Branches
INTERNATIONAL NETWORK
Rome
Piazza Poli, 37/42 • 00187 Rome
Tel. +39 06 67361 • Fax +39 06 6736225
Milan
Via A.de Togni, 2 - 20123 • Milan
Tel. +39 02 434499701, Fax +39 02 434499749
Moscow
Krasnopresnenskaja Naberejnaja, 12
123610 Moscow - Office n.1202
Tel. +7 49 52582155, Fax +7 49 52582156
Modena
Via Elsa Morante, 71 - 41100 • Modena
Tel. +39 059 331201, Fax +39 059 820832
Turin
c/o ICE - Via Bogino, 13 - 10100 • Turin
Tel. +39 011 836128 - Fax +39 011 836425
Venice-Mestre
Viale Ancona, 26 - 30172 • Venice - Mestre
Tel. +39 041 2905111, Fax +39 041 2905103
Hong Kong
40/f Suite 4001 - Central Plaza 18, Harbour Road
Wanchai, Hong Kong
Tel. +852 36202323, Fax +852 36210227
Johannesburg
Chester Road, 42
2193 Parkwood Johannesburg
Tel. +27 11 8800020, Fax +27 11 8801019
Sao Paulo
Av. Pauista 1971 – 3° andar
01311-300 Sao Paulo
Tel. +55 11 31712138, Fax +55 11 32664051
SACE BT: Piazza Poli, 42 • 00187 Rome
Tel. +39 06 6976971 Fax +39 06 697697725
www.sace.it
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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.
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