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					Euler Hermes ACI
The North American Leader in Trade Credit Insurance

RISK ASSESSMENT ‌ CREDIT INSURANCE ‌ DEBT COLLECTION
Helping Businesses Manage Risks and Opportunities

Euler Hermes ACI
   Founded in 1893 – oldest and largest credit insurer in North America
   Headquartered in Owings Mills, MD
   North and South American operations steered from Owings Mills
   In the U.S. licensed in all 50 States and D.C.
   Staffed by 400 associates
   55 offices across North America, 6 offices in Latin America
   Distribution network includes direct agents, banks and brokers
   Easy online policy management for clients, brokers and banks
   AA- (outlook stable) rating by‌Standard‌&‌Poor’s
   A+ (superior) rating by A.M.Best



                                                                                            2
                                                                    Title of the presentation
Ownership Structure – Euler Hermes ACI
(100% ownership unless otherwise specified)

                                                                Euler Hermes ACI
                                                                  Holdings Inc.
                                                                        DE, U.S.




                                                                                    Euler Hermes                                              Euler Hermes
Euler Hermes ACI   Euler Hermes ACI      Euler Hermes        Euler Hermes ACI                          North American   Euler Hermes
                                                                                  Seguro de Credito,                                        Servicos de Gestao
  Services, LLC                       Services Inc. Canada   Servicios SA de CV                         Excess, LLC       UMA, Inc.
                                                                                          SA                                                  de Risco, Ltda

    MD, U.S.           MD, U.S.             Canada                Mexico                                 MD, U.S.         MD, U.S.
                                                                                       Mexico                                                     Brazil




         5%


                   95%                                                                                                                                      Euler Hermes
 Euler Hermes                                                                                                                     Euler Hermes
 Argentina, S.A.                                                                                                                                          Seguros de Credito
                                                                                                                                Seguros de Credito,
                                                                                                                                                             Exportacao,
                                                                                                                                       S.A.
                                                                                                                                                                 S.A.
    Argentina
                                                                                                                                       Brazil
                                                                                                                                                                Brazil




                                                                                                                                                                              3
                                                                                                                                                      Title of the presentation
Euler Hermes U.S. Offices and Sales Regions

        WA

                             MT                                                                                                     ME
                                                ND
                                                             MN
      OR                                                                                                                  VT
                                                                                                                               NH
                   ID                                                       WI
                                                SD                                                                NY           MA
                                  WY                                                       MI                                CT
                                                                                                                                      RI
                                                                  IA                                        PA         NJ
                                                   NE
         NV
                                                                                                 OH              MD
                        UT                                                       IL   IN
 CA                                CO                                                                 WV                       DE
                                                     KS           MO                                        VA
                                                                                            KY
                                                                                                            NC
                                                                                       TN
                                                        OK
                    AZ                                                 AR
                                  NM                                                                   SC

                                                                                      AL         GA
                                                                                 MS
      California                              TX                   LA

      Southwest                                                                                       FL

      Central
      East
      Southeast

Regional Offices: Los Angeles, Dallas, Chicago, Owings Mills, Atlanta                                                                    4
                                                                                                                 Title of the presentation
Local Offices
Euler Hermes Americas

A dense network across 7 countries in North, Central and South America


                                     Americas HQ: Owings Mills, MD, U.S.

                                      U.S. Regional HQs: Chicago, New York,
                                       Atlanta, Dallas, Los Angeles

                                      Canada HQ: Toronto

                                      Mexico HQ: Mexico City

                                      Colombia HQ: Bogota

                                      Argentina HQ: Buenos Aires

                                      Brazil HQ: Sao Paolo
 Euler Hermes Presence
                                      Chile HQ: Santiago de Chile


                                                                                              5
                                                                      Title of the presentation
The North American Credit Insurance Market
A market set for growth


  Only 5-8% of potential C.I. market
   are currently insured
  Broad number of industries can
   benefit from C.I.
  Domestic trade receivables rarely
   credit insured until now
  Few specialized credit insurers
  C.I. market penetration in Europe
   20+ times higher than in the U.S.




    American C.I. market potential is high, boosted by globalization
                                                                                               6
                                                                       Title of the presentation
U.S. Trade Credit Insurance Market
Market Shares (%)



                      FCIA                                               EXIM

         Other*                                            4     3

                                                   8
   Atradius
                                                                                Euler Hermes ACI
                                                                          39
                                           15                        %




           Coface                                          19
                                                                                  AIG

* About 10 smaller, privately owned credit insurance providers
A Strong Partner to Manage Your Trade Receivables
What Euler Hermes ACI sets apart from its peers

  The strength and size of our agency force
  Multi-channel distribution from an extensive network of offices and partners
  An underwriting philosophy that offers a close relationship with an industry
   based expert underwriter
  Product flexibility and highest service levels
  Significant credit line capacity through strong reinsurance
  The‌international‌scope‌of‌the‌world’s‌largest‌credit‌insurer‌(50+‌countries)
  Speed of credit limit request processing
  The‌world’s‌largest‌proprietary‌database‌of‌over‌40‌million‌companies
  The strongest financial ratings in the industry


                                                                                                8
                                                                        Title of the presentation
Rely on Our Risk Underwriting Expertise
We offer superior risk underwriting capabilities

  Risk analysts with specific industry knowledge
  Ongoing buyer monitoring
  Best in market proprietary information gathered from multiple sources:
   policy holder past due reporting, banks, client and buyer visits, industry
   and economic analyses, localized information gathering
  A unique and sophisticated buyer risk rating system
  Risk management offices throughout the world




                                                                                                9
                                                                        Title of the presentation
Benefits for Our Customers
Euler Hermes ACI – a strong partner by your side

  Financial strength and stability
  Leading market position
  The global reach of Euler Hermes
  Blue chip ownership through Allianz
  Risk management expertise and proprietary information
  High credit limit capacity
  Leading edge online technology for clients and business partners




                                                                                             10
                                                                      Title of the presentation
The Euler Hermes Group
RISK ASSESSMENT ‌ CREDIT INSURANCE ‌ DEBT COLLECTION
Agenda

1 The Euler Hermes group


2 Our business


3 Our products and solutions


4 Our added value




                                                      12
                               Title of the presentation
Our Promise


We‌secure‌companies’‌business‌growth‌around‌the‌world


                     We‌protect‌companies’‌business‌transactions




                     We offer customized solutions to manage trade
                      receivables



                     We provide superior business intelligence to develop
                      your business safely



                                                                                           13
                                                                    Title of the presentation
Euler Hermes at a Glance

Our 2010 Key Figures

    Global leader in credit insurance with 34% market share
    2,086 million euros consolidated turnover
    52,000 clients worldwide
    Presence in over 50 countries on 5 continents
    6,000+ staff worldwide
    633 billion euros of global exposure
    1,600 claims indemnified per week
    40 million companies monitored in our risk database
    20,000 credit limit requests received per day
    81% of credit limit requests processed in less than 48h
    200,000 debt collections handled in 130 countries
    Rated AA- (outlook stable) by‌Standard‌&‌Poor’s‌(July‌2010)
                                                                                         14
                                                                  Title of the presentation
Our Key Financial Data

Euler Hermes Group Results (at 31 Dec. 2010)
                                               FY 2010
                                               Euro mn

Total revenues                                  2,147.7

Technical result                                  348.6

Net financial income                             123.2

Operating income                                    389.0

Net consolidated result                             294.5

Net combined ratio                                68.7%




                                                                        15
                                                 Title of the presentation
Euler Hermes Board of Management




                                         Wilfried Verstraete
                                         Chairman – Internal Audit,
                                           Communications, HR




      Nicolas Hein         Gerd-Uwe Baden                      Michel Mollard          Dirk Oevermann
    Finance, Compliance,   Risk, Information &               Market Management,         Operations & IT
        Legal & Tax               Claims                   Commercial & Distribution
                                                                                                                       16
                                                                                                Title of the presentation
Six Balanced Regions for Efficient Steering

                                                    Northern Europe

                           France


                 Mediterranean
                countries & Africa

                                      Germany,                            Asia Pacific
                                      Austria,
                                      Switzerland

    Americas




   A global network spanning over 50 countries
                                                                                             17
                                                                      Title of the presentation
Your Global Financial Solutions Provider for Trade Receivables

 Our main lines of business

   Credit insurance
   Trade debt collection
   Bonding & guarantees


 Additional services
   Insurance‌against‌fraud‌“Fidelity”
   Financing of trade receivables
   Export guarantees on behalf of the German
    government


    We help businesses manage trade risks and opportunities
                                                                                     18
                                                              Title of the presentation
Our Business Lines
At 31 December 2010

Turnover by business line (%)

  Other Services
                                                             Bonding & Guarantees
                                           6.1
                                                 6.8               Debt Collection
                                                       3.2



 Credit Insurance                      %



                                83.9




                                                                                                 19
                                                                          Title of the presentation
Euler Hermes Shareholding Structure
At January 1st, 2011


   Euler Hermes is listed on the Paris Stock Exchange since April 2000 (ELE.PA)




                                                                                                         20
                                                                                  Title of the presentation
Milestones‌in‌Euler‌Hermes’‌History




    1883
                     2002             2003          2004             2005           2006           2007              2008             2009
   -2001



                                                                                                  New               Office opening   Creation of
1893: ACI, U.S.   Euler acquires   The group      International   EH acquires     International
                                                                                  development:    operations in     in Colombia.     Euler Hermes
1917: Hermes,     Hermes           and all its    development:    100% of its
                                                                                  Ireland,        Argentina,        Partnership in   Collections
Germany                            subsidiaries   Finland,        subsidiaries
                                                                                  Australia,      partnerships      the GCC
                                   adopt the      Greece,         in Benelux.
1918: Trade                                                                       New Zealand,    with ICIC in      countries
                                   name Euler     Portugal,       Further
Indemnity, UK                                                                     United Arab     Israel and        Oman, Kuwait,
                                   Hermes         Morocco         expansion in
                                                                                  Emirates        BOCI in China.    Qatar.
1927: SFAC, France                                                Russia,
                                                                                                  Acquisition of    Creation of
and SIAC, Italy                                                   India, Baltic
                                                                                                  debt collection   Euler Hermes
1929: COBAC,                                                      countries
                                                                                                  companies         World Agency
Belgium                                                           and Turkey
                                                                                                  UMA (U.S.)
1989: Nederlandsche                                                                               and R2C
Kredietverzekering,NL                                                                             (Ireland)




                        New organisation of Euler Hermes « One Euler Hermes ». Opening of Chile office
   2010


                                                                                                                                                            21
                                                                                                                                     Title of the presentation
Our Global Network -1




                        Euler Hermes presence in 2010

                                                                           22
                                                    Title of the presentation
Our Global Network -2

Presence in over 50 countries across five continents
 Argentina          Germany              Morocco          Slovakia
 Australia          Greece               Netherlands      South Africa
 Austria            Hungary              New Zealand      South Korea
 Bahrain            India                Norway           Spain
 Belgium            Indonesia            Oman             Sweden
 Brazil             Ireland              Philippines      Switzerland
 Canada             Israel               Poland           Taiwan
 China              Italy                Portugal         Thailand
 Chile              Japan                Qatar            Tunisia
 Colombia           Kuwait               Romania          Turkey
 Czech Republic     Luxembourg           Russia           United Arab Emirates
 Denmark            Malaysia             Saudi Arabia     United Kingdom
 Finland            Mexico               Singapore        United States
 France                                                   Vietnam
    Your trade receivables management partner, wherever you do business

                                                                                            23
                                                                     Title of the presentation
Global Credit Insurance Market


2010 Market Shares (%) – Total Market Volume € 4.9 bn
 Others

                                 7,1


 Atradius                                         34,0
                      27,7                               Euler Hermes
                                       %

 Chartis                 3,3
                           2,5
 QBE                         2,0           19,9
                                3,5                                   Coface
 Mapfre
 CESCE
                                                         Source: ICISA, Euler Hermes


                                                                                            24
                                                                     Title of the presentation
Agenda

1 The Euler Hermes group


2 Our business


3 Our products and solutions


4 Our added value




                                                      25
                               Title of the presentation
Credit‌Insurance:‌The‌Solution‌for‌Your‌Company’s‌
Business Development
 Questions                               Facts
 Have you ever experienced bad-        1.38% of‌a‌company’s‌annual‌
  debt losses?                           turnover can be saved by sub-
                                         scribing a credit insurance policy
 Have any of your customers ever
  become insolvent?                     49% of credit insured companies
                                         manage to obtain a bank loan
 Do you regularly sell to new           compared to 34% of non insured
  customers & markets?                   companies
 Do you need help in assessing the     Trade receivables represent around
  financial solidity of your buyers?     35% of‌a‌company’s‌assets
 Do you need to improve your           Most business insolvencies are
  cash flow?                             caused by late payments

   With any of the above questions, we can help

                                                                                             26
                                                                      Title of the presentation
Risk Management – Credit Insurance – Debt Collection

   We insure the payment of trade
    receivables

   We help businesses select the
    right customers and move safely
    into new markets

   We offer an insurance policy
    including three services:
    Risk prevention
    Debt collection
    Claims indemnification

   Euler‌Hermes‌protects‌companies’‌assets:‌trade‌receivables‌represent
   an‌average‌35%‌of‌a‌business’‌assets

                                                                                          27
                                                                   Title of the presentation
Our Core Business: Credit Insurance
How credit insurance works




   Credit insurance secures trade, domestically and around the globe

                                                                                              28
                                                                       Title of the presentation
Our Key Expertise: Risk Assessment - 1


1,200‌risk‌analysts‌and‌underwriters…


  Monitor and grade 40 million companies around the world

  Share a single, global risk database

  Share a group wide, efficient risk business model
   where credit limit decisions are always taken close to the risk

  Receive‌constant‌support‌from‌Euler‌Hermes’‌economic‌research‌teams

  Are trained across borders to ensure customers receive
   the same levels of high quality service anywhere in the world



                                                                                            29
                                                                     Title of the presentation
Our Key Expertise: Risk Assessment - 2


Our‌research‌teams‌in‌Baltimore,‌Hamburg,‌London,‌Paris…

  Produce analyses of economic, commercial and political risks for business
   dealings in 170 countries

  Provide macro-economic,‌industry‌and‌market‌forecasts‌for‌Euler‌Hermes’‌
   risk analysts and underwriters

  Participate in risk monitoring and produce tailored risk assessment for
   our international customers

  Provide input for financial and budget decisions

  Support the quality of service delivered to clients
   - analyses and forecasts shared by all Euler Hermes companies

                                                                                              30
                                                                       Title of the presentation
Euler Hermes Research
Reports and publications
  Economic Outlook
  Insolvency Outlook
  Industry / trade sector outlooks
  Country risk reports and weekly bulletin


  White papers on UK and US economies and sectors
  Quarterly surveys of Italian economy and sectors


  Annual study on white collar crime in Germany
  Companies payment behaviour in the Netherlands
  Monthly credit management indices in UK, US



                                                                             31
                                                      Title of the presentation
Euler Hermes Economic Research


                        EH Research Departments                    macro-
                        Produce macro-economic, industry and       economic
                        country risk analyses and forecasting      & country
                                                                   information

 Euler                                                             Micro-
Hermes                                                             economics
 global                                                            & business
offices                                                            intelligence
             EH Credit Analysts            EH Risk Underwriters
             Provide information and       Deliver warranties on customer
             financial analyses on         (seller) requests.
             companies                     Are specialized by industry.



                                Companies (buyers)
                                                                                         32
                                                                  Title of the presentation
2010 Economic Outlook: Slow Recovery


World GDP and trade growth                                                              Business insolvencies remain high
15%                                                                               5%
                                                                                        180

12%                                                                               4%                                        EH Global Insolvency Index
                 12%                                                                    160
                                                                                                                            EMU Insolvency Index
 9%                                   11%                                         3%                                        USA Insolvency Index
                                                 9%                    10%              140
                                            8%                               7%
 6%                                                   7%                          2%
            6%                                                                          120
       5%                        5%
 3%                                                                               1%
                            3%                                                          100
                       0%                                  2%
 0%                                                                               0%
       98   99   00    01   02   03   04    05   06   07   08    09    10    11          80
-3%                                                                               -1%
                                                                                         60
-6%                                                                               -2%
                                                                                         40
-9%              World volume of trade growth                                     -3%
                 (left axis)                                                             20
                 World real GDP growth (right
-12%                                                            -13%              -4%
                 axis)
                                                                                         0
-15%                                                                              -5%         95   96   97   98   99   00   01   02   03   04   05   06    07   08   09   10




 Sources: National figures, IHS Global Insight, Euler Hermes forecasts (April 2010)




                                                                                                                                                                                 33
                                                                                                                                                          Title of the presentation
Agenda

1 The Euler Hermes group


2 Our business


3 Our products and solutions


4 Our added value




                                                      34
                               Title of the presentation
Our Product and Solutions Offering


Expert trade receivables management solutions
 Credit insurance
 Trade debt collection
 Bonding
 Trade receivables financing
 Other trade receivables
  management services


   Euler Hermes: Business insured. Success ensured.




                                                                             35
                                                      Title of the presentation
Our Offering – 1
Trade Credit Insurance
Why get credit insured with Euler Hermes?


  Partner with the world leader in credit insurance, rated AA- by S&P
  Secure your companies business development:
      - Insurance against late payment, payment default, political risk
      - Speedy indemnification if outstanding payments cannot be collected

  Optimise‌your‌company’s‌trade‌receivables‌management

  Manage your policies online via our EOLIS extranet



    Euler Hermes global coverage amounts to over 630 billion euros

                                                                                                36
                                                                         Title of the presentation
Our Offering - 1
Trade Credit Insurance: Case Study

Company A
                                                                                 Company A
  September 2008                                                             September 2009
  > Not credit insured                                                       > Credit insured (up to € 800M)
                                               Prevention
   100,000 customers                          Information on companies to    120,000 customers
   Sales: € 870M                              select the safest clients      Sales: € 950M (+9.2%)
   Loss ratio: 0.5%                                       +                  Loss ratio: 0.06% (€ 0.57M)
                                               Collection of bad debts
                                                           +
  Buyer 1        loss = € 1.45M                Loss indemnification
  Buyer 2        loss = € 0.98M
  Buyer 3        loss = € 0.50M
  Buyer 4        loss = € 0.82M                                                 Losses covered by
  Buyer 5        loss = € 0.57M
                 Total = € 4.32 M                                                 Euler Hermes
 Had Company A been credit insured, it could
 have avoided all losses apart from Buyer 5.




     Loss ratio prior to credit insurance 0.5% > 1 year later, loss ratio 0.06%
                                                                                                                     37
                                                                                              Title of the presentation
Our Offering - 1
Trade Credit Insurance: for Companies of all Sizes and Sectors
57,000 customers
  Multinationals
  Medium-sized to large companies

  SMEs

  Micro-companies


 Euler Hermes customers by industry
 25

 20

 15

 10

  5

  0




                            Customers in %




                                                                               38
                                                        Title of the presentation
Our Offering - 1
Trade Credit Insurance

Solutions for companies of all sizes

  World Program
   Customised solutions for international groups

  Excess of loss
   Customised policy for larger corporations with integrated credit management
   department; only large risks are underwritten

  Policies for medium-sized to large companies
   Customised policies covering domestic and export business

  Policies for SMEs
   A simple policy, easy to manage


                                                                                           39
                                                                    Title of the presentation
Our Offering - 1
Trade Credit Insurance: Euler Hermes World Agency
A dedicated entity servicing multinational companies

  A centralised program and service organisation to cover the risks of
   multinational groups

  A single contractual agreement between the multinational parent company
   and Euler Hermes World Agency

  Additional‌services‌provided‌to‌a‌group’s‌subsidiaries‌at‌local‌level




                                                                                                  40
                                                                           Title of the presentation
Our Offering – 2
Trade Debt Collection
Collection services for policy holders and non-insured companies


  Integrated solutions for disputes and debt collection

  A sophisticated international debt collection business model

  A common IT platform

  Strong expertise in international collections
      - Euler Hermes presence in over 50 countries
      - In-depth knowledge of local legal environments

  200,000 debt collections handled in 2010


                                                                                          41
                                                                   Title of the presentation
Our Offering – 3
Bonding & Guarantees
The European market leader in bonding & guarantees

  We offer a wide range of domestic and export guarantees and bonds
      - Performance bonds
      - Advanced payment bonds
      - Maintenance bonds
      - Custom bonds
      - Other
  Euler Hermes bonds are a financing alternative to bank bonds and allow
   companies to free up liquidity to continue to develop their business
  In 2009 Euler Hermes provided facilities worth € 20 billion to 8,000 clients


                                                                                               42
                                                                        Title of the presentation
Our Offering – 4
Other Trade Receivables Management Solutions
Additional services offered by Euler Hermes
  Trade debt financing
    - Securitisation of trade receivables
    - Partnership with factoring companies
    - Participation in the structuring of financing operations


  Products‌built‌on‌Euler‌Hermes’‌rating‌system‌
    - Portfolio rating


  Fidelity
    - Insurance against employee fraud


                                                                                        43
                                                                 Title of the presentation
Agenda

1 The Euler Hermes group


2 Our business


3 Our products and solutions


4 Our added value




                                                      44
                               Title of the presentation
Added Value for Our Customers


                   Quality account service
                    Customised solutions for your company
                    Credit decisions are made in the country closest to
                    your buyer


                   In-depth knowledge of trade mechanisms and corporate
                    risks throughout the world
                    Exclusive information on buyers gathered locally and shared
                    in a common and continuously updated database


                   Technological capacity for managing large flows of
                    information globally
                    Worldwide deployment of common IT applications,
                    customised locally


                                                                                             45
                                                                      Title of the presentation
Our Online Service EOLIS

With the EOLIS extranet customers can:

  Manage their credit insurance policies
  Manage outstanding customer receivables and
   credit limits
  Receive on-line approval of credit limits
  Report overdue accounts and give order to
   collect a payment
  Report claims
  View debtor information and collection files in
   progress
  Issue reports to monitor and optimise their
   accounts receivable

   93.4% of customers are very satisfied or satisfied with EOLIS
                                                                                          46
                                                                   Title of the presentation
A New, More Integrated Organisation to Better
Serve Our Customers

We‌help‌our‌clients‌capture‌the‌upswing‌of‌the‌cycle…

   Increased cover and competitive premium rates
   Innovative products and solutions for managing
    trade receivables from A-Z
   Highest level customer service


…‌and‌benefit‌from‌our‌credit‌management‌expertise

   International B2B trade debt collection services
   Customized service for multinational companies via
    Euler Hermes World Agency
   Increased presence in Asia Pacific and Latin America
    to accompany our clients in growth markets

                                                                                  47
                                                           Title of the presentation
A Reliable Partner for Our Stakeholders

                Consistent customer focus
                  Proactiveness and responsiveness
                  Product innovation
                  Transparent communication
                  Consistent high quality service around the world

                Employer of choice
                  Opportunities for professional development
                  International mobility
                  Diversity

                A sound investment for our shareholders
                  Solid AA- credit rating (S&P July 2009), best among peers
                  Robust business model
                  Sustainable returns on equity
                  Member of the Allianz group
                                                                                             48
                                                                      Title of the presentation

				
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