Transcript SACE, *, rus

SACE in Kazakhstan: a valuable partner
September 2007
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Index
SACE Group
Why SACE
Kazakhstan economy
SACE in Kazakhstan
Credentials
SACE’s network
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2
SACE Group
Why SACE
Kazakhstan economy
SACE in Kazakhstan
Credentials
SACE’s network
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3
SACE Group
Credit insurance, reinsurance and guarantees for Italian
exports and investments
Short-term insurance services both in the domestic and
foreign markets.
Leader in surety business, specifically in the construction
industry
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 30 year-experience in credit insurance
1977

Establishment of SACE as public entity under the surveillance of the Ministry of Economy & Finance (MEF)

SACE is transformed into an independent institution

SACE is transformed into a joint stock company, whose capital is wholly owned by MEF

SACE creates SACE BT, entering the short-term credit insurance market

SACE enlarges its area of business to the support of “made by Italy” abroad
1998

SACE BT acquires 70% of Assedile, leading operator in the surety sector

Moody’s assigns SACE a first time insurance financial strength rating of Aa2, with stable outlook
2004
2005
2006
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
Further enlargement of SACE SpA operational perimeter to include the concept of
supporting “ Italian Interest ”
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A strong financial partner
+6,2%
17.073
2006
Gross written premiums
2005
Δ%
16.081
240,5
197,7
+22%
33.473,91
29.890,81
+12%
510,1
757,4
-33%
44,3
73,9
-39%
6.742,02
9.092,1
-26%
Rating (Moody’s)
Aa2
Aa2
-
Employees
463
445
+4%
Outstanding
Net Profit
2005
Claims
Net Equity
2006
New guarantees (€ mln)
+21,6%
240,5
197,7
Key figures, mln €
2005
(1)
(2)
Principal + interest (net of reinsurances)
Post Equity reduction (feb 2007)
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2006
Gross written premiums (€ mln)
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SACE Exposure
SACE Exposure: geographic area
SACE Exposure: sectors
SACE Exposure: main countries
Others
countries
43,7%
50%
40%
30%
Iran
16,40%
20%
Egypt
11,00%
Turkey
10,50%
Russia
9,60%
Italy
8,80%
Egypt
T urkey
Russia
Italy
10%
0%
Iran
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Others
countries
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SACE Group
Why SACE
Kazakhstan economy
SACE in Kazakhstan
Credentials
SACE’s network
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Why SACE: beyond export
A. Broadening our area of intervention
Yesterday
From “made in” to “made
by” Italy
Today
From “made by” to supporting
the internationalization of Italian
companies
Tomorrow
From the internationalization of
Italian companies to “national
interest” and competitiveness
B. Products Development
Traditional Products
Buyer Credit
New Products
Supplier Credit
Financial Guarantee (loan, bonds,
working capital needs) - export or
investment related
Civil works
Surety
Political Risk Insurance
Local Currency Financing
Risk Sharing Guarantee
L/C confirmation
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Next development
Leasing/Factoring
Securitization
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SACE New Range of Activities: 1) Export Related Products
SACE has widened its eligibility criteria:


SACE is now able to provide cover for the financing of:

supply contracts signed by an Italian company; or

supply contracts signed by a foreign company participated for at least 20%* by an
Italian company, or

Italian origin supplies under contracts signed by a non-Italian company, and

local costs, in application of OECD Regulation Framework
Italian origin of goods is not an eligibility requirement, as SACE could cover all goods/services
(of Italian, EU, or extra EU origin) provided under such contract
(*) Such threshold is reduced to 10% for listed companies.
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SACE New Range of Activities: Export Related Products (con.d)
Exporter’s Country (*)
From Ital
y
From
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 is
not allowed
Italy
to
Foreign
Country
to Foreign country
3 - Eligibility of non Italian content
(*) of the export contract signed by an
4- Eligibility of supplies by foreign
companies
Italian company
(*) Local content eligible within the limits set by
OECD Regulatory Framework
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participated by Italian companies
Traditional
eligibility
criteria
New
eligibility
criteria
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SACE New Range of Activities: 2) Non-Export Related Products

Investments made by Italian companies / Italian subsidiaries’(*)

Transactions of “strategic interest” for the Italian economy:

Strategic imports (power, gas, oil, raw materials for re-exports);

Strategic foreign customers/partners to Italian companies in their activities abroad;

Infrastructures (including domestic infrastructures) supporting: (a) the
internationalization of the Italian economy (terminals, railways, roadways, etc), or (b)
diversification of sources of energy for the domestic market (pipelines, regasification
plants, etc;

Internationalization of Italian banks;

Employment and economic growth in Italy;

Strategic industries: renewable energies, environment, technological innovation
(*) Participated at least 20% by an Italian companies. Such threshold is reduced to 10% for listed companies.
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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;
 Corporate/Project bond issuance - advantages for the borrower: (i) lower cost of funding against
traditional buyer’s credit, (ii) diversification of funding sources and preservation of room in its credit
lines with the banking system; (iii) access to a high number 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;
 Local Currency Facility;
 Securitisation - credit enhancement;
 Islamic Finance
(*) Such threshold is reduced to 10% for listed companies.
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SACE Group
Why SACE
Kazakhstan economy
SACE in Kazakhstan
Credentials
SACE’s network
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14
Kazakhstan macroeconomics
Foreign Debt/GDP
11,0%
100,0%
 GDP
90,0%
10,5%
• In 2006 the GDP real rose by 10,6%
• Foreign Debt/GDP ratio expected around 90%
80,0%
70,0%
10,0%
60,0%
9,5%
50,0%
40,0%
9,0%
30,0%
20,0%
8,5%
10,0%
 Key factors
8,0%
0,0%
• Kazakhstan has sustained very strong
macroeconomic performance since the start of the
decade
2004
2005
2006s
Foreign Debt/GDP
• Inflation should decrease below 8% during 2007
2007p
2008p
GDP
Balance
0,5
1,5
1
0
• External debt has risen significantly
• Economic growth in the forthcoming years should
continue to be strong
mln US$
 Public finances
2004
2005
2006
2007
2008
0,5
0
-0,5
-1
-1
-1,5
%
-0,5
-1,5
-2
-2
-2,5
-2,5
-3
-3
-3,5
-3,5
-4
Balance Current Transaction
Balance Current Transaction/GDP
Sources: SACE’s Country Risk Department
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Kazakhstan – Italy: International Trade
3.000
• Increase of Italian imports due to
strong demand for mining products
mln
euro
Italian Import/Export with Kazakhstan
2.000
1.000
0
1997
• Italian exports concentrated in
machinery & Equipments
1998
1999
2000
2001
2002
2003
2004
2005
2006
-1.000
-2.000
-3.000
Im port
Export
balance
• Italian exports had an increase of
Italian Exports to Kazakhstan by industrial sector
55% during 2006
• The amount of direct investments
reached the amount of USD 10
billion during 2006. Italy is the ninth
country for amount invested in
Kazakhstan
Source: ISTAT
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SACE Group
Why SACE
Kazakhstan economy
SACE in Kazakhstan
Credentials
SACE’s network
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Benefits of SACE’s support
Buyers /
Borrowers
Banks
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 Longer tenors
 Bigger tickets
 Diversification of financing sources
 Additional credit capacity without affecting bank’s lines
 Competitive all-in cost of financing
 Release of capital which can be used for other investments
 Zero-weighted credit as per Basel 1 & 2
 Competitive pricing
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Kazakhstan: Market & ECAs classification
Rating
 S&Ps:
BBB
 Moody’s: A2
 Fitch:
BBB
OECD
 Country Category 4/7
SACE Cover
Policy
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 Sovereign/Bank/Corporate Risk: Open
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SACE Group
Why SACE
Kazakhstan economy
SACE in Kazakhstan
Credentials
SACE’s network
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20
Credentials
 Commitment: € 52 mln
 Exporter: Ansaldobreda S.p.a.
 Commitment: € 0.8 mln
 Commitment :€ 1.7 mln
 Debtor: Alessi S.p.a.
 Debtor: Dainese S.p.a.
 Buyer: Greater City Municipality of Kayseri
 Beneficiary: Banca Intesa S.p.a.
 Beneficiary: Banca Intesa S.p.a.
 Country: Turkey
 Country: Italy
 Country: Italy
 Structure: Buyer Credit Insurance Policy
 Structure: Credit Enhancement
 Structure: Credit Enhancement
 Beneficiary: BNP Paribas
December 2005
 Commitment: € 1 bln
 Commitment : € 13.5 mln
 Insured: Italcementi S.p.a.
 Insured: Permasteelisa S.p.a.
 Beneficiary: Ciments Francais
 Buyer: Government of the State of Qatar
 Country: Egypt, India, Kazakhstan, Thailand
 Country: Qatar
 Structure: Investment Policy
 Structure: Civil Works Policy
November 2005
November 2005
November 2005
October 2005
 Commitment: €230 mln
 Commitment: € 3 mln
 Commitment: € 21.1 mln
 Insured: Rivoli Spa
 Exporter: Alenia Aeronautica
 Buyer :Parà - Secretaria Executiva de
 Beneficiary: Barclays Bank
 Transportes -SETRAN
 Buyer: Air Deccan
 Country: Brazil
 Country: India
 Structure: Civil Works Policy
 Structure: Buyer Credit Insurance Policy
 Commitment: € 1 mln
 Supplier: Perfora S.r.l.
 Buyers: Brazilian companies (5)
 Country: Brazil
October 2005
 Structure: Supplier Credit Policy
October 2005
 Commitment : € 22 mln
 Supplier: Danieli & Officine Meccaniche
S.p.a.
 Exporter: Gruppo Comau
 Buyer: OMK Steel (Russia)
 Beneficiary: Bayerische- HVB
 Country: Russia
 Country: Germany, South Africa
 Structure: Strcutured Finace
 Structure: Surety Bond
Sept- Dec 2005
September 2005
 Commitment: € 3.3 mln
 Commitment: € 18.5 mln
 Commitment: € 25 mln
 Supplier: Italdesign Giugiaro S.p.a.
 Buyer: China Motor Corporation
 Country: Taiwan
 Structure: Supplier Credit Policy
 Supplier: Officine Meccaniche Villa &
 Commitment: € 50 mln
 Bonaldi S.p.a.
 Exporter: Ansaldobreda S.p.a
 Buyer: China Petroleum Material and
 Beneficiary: DSB- Material
 Equipment Corporation
 Country: Denmark
 Country: China
 Structure: Surety Bond
 Commitment: $ 1.2 bln
 Exporter: Binacchi & C. S.r.l.
 Insured: Bond Issued by Gazprom
 Beneficiary: Banco Santander Central
Hispano
 Supplier: Snam,Saipem,Ilva,Nuovo Pignone
 Buyer: Friboi LTDA
 Country: Russia
 Structure: Structured Finance Guarantee
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September 2005
 Country: Brazil
 Structure: Buyer Credit Insurance Policy
 Structure: Supplier Credit Policy
September 2005
June 2006
July 2005
July 2005
May 2005
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SACE Group
Why SACE
Kazakhstan economy
SACE in Kazakhstan
Credentials
SACE’s network
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22
SACE’s network
Russia
Italy
Cina
Hong Kong
Regional Offices
• Milan
• Modena
• Rome (Headquarters)
• Turin
• Mestre Venice
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Foreign Office
Next openings
• Moscow
• Hong Kong
• Shanghai
• San Paolo
• Istanbul
• Mumbai
• North Africa
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Disclaimer
This presentation has been prepared by SACE SPA solely for information purposes. The information contained herein has
not been independently verified.
Under no circumstances should this document 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 but SACE does not represent or
warrant that it is accurate and complete. The views reflected herein are those of SACE and are subject to change without
notice.
The products mentioned in this document may not be eligible for sale in some states or countries, or suitable for all types of
investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates, interest
rates or other factors.
The forward-looking information contained herein has been prepared on the basis of a number of assumptions which may
prove to be incorrect and, accordingly, actual results may vary.
The information herein may not be reproduced or published in whole or in part, for any purposes, or distributed to any other
party, without the written permission of SACE S.p.A. By accepting this document you agree to be bound by the foregoing
limitations.
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