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Coface North America Socrates 05 26 2010

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  • 1. Your trade risks, under control. Coface North America ocrates Jaen Coface North America
  • 2.
    • Founded in France in 1946; international expansion in 1990s
    • Subsidiary of Natixis
    • Rated: A+ by Fitch
      • A2 by Moody’s
      • A by S&P
    Coface: Worldwide Trade Facilitator Coface facilitates business-to-business commerce worldwide, offering solutions to all companies – whatever their size, nationality, or business sector – for managing, protecting, and financing their accounts receivable. Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 3. Coface Group Key Figures 190 companies in 65 countries 120,000 clients worldwide 50 million 6,737 employees companies in our database Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance Amounts in millions of euros 2007 2008 Consolidated turnover 1,571 1,682 Insurance 1,111 1,166 Services 250 270 Factoring 210 245
  • 4. Global Presence Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance Viet Nam Gabon Canada USA Mexico Peru Venezuela Argentina Brazil Chile Panama Ecuador Costa Rica Colombia Lebanon Uruguay Paraguay Benin Algeria Burkina Faso Cameroon Mali Côte d’Ivoire Togo Senegal South Africa Egypt Morocco Tunisia Chad Russia Portugal Spain Austria Belgium Denmark Norway Netherlands Croatia Bulgaria Poland Romania France Italy Ireland Germany Sweden UK Switzerland Latvia Estonia Hungary Lithuania Turkey Ukraine Slovenia Czech Rep. Serbia Brunei Djibouti Luxembourg Pakistan Vietnam Indonesia Greece Liechtenstein Malta Bangladesh Finland Kazakhstan Cyprus Australia New Zealand Japan South Korea China India Malaysia Thailand Philippines Singapore Hong Kong Taiwan Saudi Arabia Israel Iran U.A.E. Bahrain Jordan Syria Kuwait Libya Oman Qatar Yemen Subsidiaries or branches in 67 countries CreditAlliance partners in 32 add’l countries Total network 99 countries Slovakia Sudan Mauritania
  • 5. Business Lines
    • Coface delivers tools that enhance and support a company’s
    • credit management practices:
          • Accounts receivable protection
            • Export and domestic credit insurance
            • Single risk guarantees
          • Corporate ratings and information
          • Accounts receivable management and debt collection
          • Accounts receivable finance (factoring)
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 6. Coface in North America - History 2002 2004 2005 2006 2007
    • Coface takes on equity stake in credit reporting agencies, Veritas Group and Justicia
    • CNA Credit becomes member of Coface CreditAlliance; Joint venture for Coface to provide export credit coverage to CNA Credit policyholders
    • Coface acquires Kompass Canada franchise
    1990’s
    • Coface purchases CNA Credit in North America, becomes managing general underwriter for CNA
    • Coface acquires Kompass USA franchise
    • Coface North America Insurance Company created
    • Coface SA – Canada Branch office launched
    • Export Development Canada (EDC) names Coface as domestic credit insurance provider for its insurance program
    • Coface Collections North America acquires one of the largest US commercial collection agencies, Newton & Associates
    • Coface Canada expanded to include all 4 Coface business lines
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 7. Coface in North America – Commercial Locations Regional Head Office Regional Branch Office Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance Midwestern Region Western Region Southern Region Mid-Atlantic & E. Canada Region New England Region
  • 8. Trade Receivables Protection Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 9. Credit Insurance Credit Insurance flowchart
      • What is Credit Insurance?
      • A credit insurance policy ensures that a policyholder will be paid for goods or services sold to its customers
      • The policy insures commercial accounts receivables against non-payment
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 10. Credit Insurance
      • Benefits of Credit Insurance
      • Protection against bad debt loss
      • Potential to increase sales
      • Better borrowing position with insured receivables
      • Credit information resource
      • Collection services
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 11. Single Risk / Political Risk Insurance
      • Covers cross-border operations and transactions against loss caused by political events
      • Coverage include protection against financial loss of an investment due to:
      • - expropriation or nationalization
        • - contract termination by a foreign government
      • - non-payment of accounts receivable due to war or civil unrest
      • Coface also offers coverage of select single debtor transactions
    In depth knowledge of local conditions in emerging countries Maximum 5 years, no minimum $1 million to $50 million capacity No countries excluded ‘de facto’ Features Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 12. Credit Insurance Underwriting Process
      • Obtaining the financials of your clients, with your help and/or via our Infoline department
      • Global analysis of the risks via our tools (@rating, database, International network…)
      • Credit opinions over your requests on each buyers/clients. Expertise in all countries to provide a rapid answer: agreement or set limit
      • Provide you with a complete insurance covering your transactions worldwide or on your domestic market
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 13. CORPORATE RATINGS AND INFORMATION Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 14. Corporate Ratings and Information
      • Company information (reports and ratings)
      • International credit reports from 200 countries and territories
      • @rating Credit Opinions for quick online indication of creditworthiness
      • Kompass marketing data
      • Global buyer and seller database
      • Advertise your company and find suppliers
      • Country and Sector Risk Ratings
      • Country @ratings measure how financial engagements are influenced by the economic, financial and political outlook of the country
      • Sector @ratings measure the average level of default risk posed by companies in individual sectors
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 15. The @rating Solution
      • @rating is a unique, worldwide system of company ratings allowing credit managers to rapidly and reliably assess credit risks.
      • Available for 50 million companies worldwide , @rating draws on Coface’s twofold expertise in company information and credit insurance.
      • @ratings express recommended credit exposures on individual companies in a simple manner, with @ representing a $20,000 limit, @@ $50,000, @@@ $100,000, etc.
      • @ratings can be delivered as part of a credit insurance policy (@rating limits) or as an information-only service (@rating Credit Opinions).
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 16. The @rating Solution What goes into an ? Company analysis Annual reports Bank reports Commercial reports Published reports Economic analysis Policy-holder Credit Information Manager Direct Information from debtor Payment irregularities Notification exceeded credit period CreditAlliance UNDERWRITING @rating opinion Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 17. Country and Sector Risk Ratings Country Risk Rating Sector Risk Rating www.coface-usa.com Ratings, payment incident index and sector risk assessment are available on Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance Macroeconomic expertise
    • The country risk @rating assesses the average risk of payment default by companies in a given country
    • There are seven different rating grades: A1 to A4, B, C, D
    • The ratings are regularly updated for over 155 countries
    • 3 risk families:
      • Economic, Financial & Political Prospects
      • Growth vulnerability
      • Sovereign financial vulnerability
      • External over indebtedness
      • Foreign currency liquidity crisis
      • Banking sector’s fragilities
      • Geopolitical and Governance vulnerabilities
      • Company’s payment behavior
      • Business Climate
    • The sector risk @rating assesses the average risk of payment default by companies in a given sector
    • To calculate sector @rating, Coface combines 3 types of measurements:
    • Economic prospects of the sector
    • Companies’ financial situation
    • Coface payment experience
    • There are 10 different rating grades: ranging from A+ for the lowest risks to D for the highest risks
    • The ratings are regularly updated for 15 economic sectors
  • 18. Trade Receivables Management Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 19. Receivables Management and Collection
      • Coface Collections North America, Inc. (CCNA) offer comprehensive, flexible, collection services in the US and abroad.
      • CCNA main office is located in Metairie, LA
      • Branch offices in:
        • Vancouver, WA
        • East Windsor, NJ
        • Denver, CO
    Coface has the largest international collections network in the world in terms of geographical presence. Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 20. Receivables Management and Collections
      • A full-service commercial debt recovery by credit professionals
      • The I.N.C. approach to commercial debt recovery:
      • Investigation
        • We employ sophisticated investigative resources to gather and analyze information in order to achieve optimal results.
      • Negotiation
        • The financial information and other pertinent facts that we gather enable our collectors to negotiate from a position of strength.
      • Collection
        • Our approach combines state-of-the-art technology and resources with expertise, experience and finesse
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 21. Receivables Management and Investigation Services
      • In addition to our professional collection services, we also provide:
      • C.A.R.E.: Coface Accounts Receivable Express
        • Low-cost, automated online collection service for early past-dues
      • Accounts Receivable Management Outsourcing
      • Investigation Services
        • Real estate Broker Price Opinions (BPOs)
        • Asset and liability investigations
        • Background checks
        • Collateral property valuation
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 22. Trade Receivables Finance Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 23. Receivables Finance and Factoring
      • Our mission is to help our clients meet their business objectives and grow their companies
    Coface Credit Management North America, Inc. Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 24. Receivables Finance and Factoring
      • Receivables Financing Provides Many Benefits
      • Protection from bad debt losses
        • We will determine the creditworthiness of your customers
        • Coface assumes the risk of non-payment due to insolvency
      • Professional collections department
        • We handle the credit and debt collection functions
      • Streamlined operations and management
        • Receivables financing reduces your need for a credit and collections department
        • Online management system
      • Build your credit rating
        • Factoring will help you pay your suppliers on time and improve your credit rating
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 25. Receivables Finance and Factoring
      • How does it work?
      • Coface systematically purchases the qualified receivables
      • Any credit risk will be borne by Coface
      • The amount and type of receivables that are financed are used to determine the financing rate of the company
    • When you open your factoring account, we will notify your customers to submit payments to us on your behalf.
    • We will treat your customer with the same degree of integrity and professionalism that you provide.
    • Your Coface account executive will be in continual contact with you.
    • Account activity can be managed by you through our online system.
    Coface overview Trade Receivables Protection Corporate ratings & Information Trade Receivables Management Trade Receivables Finance
  • 26.
    • Scenario 1
      • Product: EXPORT CREDIT INSURANCE
      • 2007 sales $907,000
      • 2008 sales $1,000,000
      • 2009 sales $ 1,900,000 YTD (was able to offer credit term,
      • add new accounts (Caribbean, L/A) thus increasing sales)
    • Scenario 2:
      • Product: Domestic Factoring
      • 2009 Starting sales $1,500,000 (02/01/2009)
      • YTD revenue $3,000,000 (season over)
      • 80% advance
      • Commission 1.5%
      • Advance rate of Libor plus 4.5%
      • Monthly Minimum $1,000.00
    110% Sales Growth in 2 years 100% Sales Growth in 9 Months We Help You Make Dramatic Changes in Revenue
  • 27.
    • Client: Distribute Sheet Music and related Media Products
      • 2004 sales $55,803,390 Credit losses $125,859.79
      • 2005 sales $54,683,587 Credit losses $23,902.05
      • 2006 sales $51,696,050 Credit losses $517,000.00
        • * 3 Yr Average Bad Debt Expense $223k, 0.41% of sales
    • In 2007 Company enters into a global credit insurance program with Coface
      • (2007- 2008) Sales $57,000,000 Credit Losses $30,000.00
      • (2008-2009) Sales $60,000,000 Credit Losses reported 2008 ($50,000.00)
        • * 2 Yr Average Bad Debt Expense $40,000k, 0.07% of sales
    We Can Help You Reduce Bad Debt
  • 28.
    • Help businesses double or triple in size.
    • Protect clients from hundreds of thousands of dollars in potential losses.
    • I can provide an unlimited supply of capital.
    • Represent a global financial services group that counts 45% of the worlds 500 largest companies as clients
    • Working with me allows you to tap into a group that makes 15,000 credit decision per day and manages $500 Billion of global trade.
    Quantifiable Reasons to Business with Me
  • 29. Thank you Socrates H. Jaen Exclusive Agent for Coface North America Lic. No. CA. 0789553 Lic. No. NV. 525120 Lic. No. MT. 700306 L.B. Spurrier Insurance Agency Inc. 333 S. Anita Drive, Suite 850 Orange, CA 92868 714-460-2635 Office| 714-460-2644 Fax| 909- 904-8233 Cell [email_address]  | www.Coface-usa.com Your Trade Risks, Under Control: Accounts Receivable Insurance | Business Information | Factoring | Commercial Collections