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Global developments in the Equipment Leasing and Financing Industry 

Global developments in the Equipment Leasing and Financing Industry . First Latin American Leadership Meeting of the Leasing Industry. How does the World Look Like?. Back to Table of Contents. How does the World Look Like?. CHINA. BANGLADESH RUSSIA NIGERIA JAPAN. REST OF THE WORLD.

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Global developments in the Equipment Leasing and Financing Industry 

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  1. Global developments in the Equipment Leasing and Financing Industry  First Latin American Leadership Meeting of the Leasing Industry

  2. How does the World Look Like? Back to Table of Contents

  3. How does the World Look Like? CHINA BANGLADESH RUSSIA NIGERIA JAPAN REST OF THE WORLD INDIA INDONESIA BRAZIL PAKISTAN USA POPULATION: While the US holds 5% of the World’s population, China (20%), India (17%), Brazil (3%) and Russia (2%) host 42% of the global inhabitants Europe altogether hosts only 11%, and declines Back to Table of Contents

  4. How does the World Look Like? REAL GDP: While the US holds 21% of the World’s GDP, China produces 13%, India (6%), Brazil (3%) and Russia (3%). The EU produces 15%. 80% of global GDP is currently produced by 20 countries USA REST OF THE WORLD CHINA GERMANY JAPAN UK RUSSIA INDIA ITALY FRANCE BRAZIL Back to Table of Contents

  5. Source: Goldman Sachs Back to Table of Contents

  6. Demographics: Purchasing Power ASIA PACIFIC LATIN AMERICA AFRICA • And the winners are: • China • Japan • India • Korea • Indonesia • Australia • Thailand • …the winners are: • Brazil • Mexico • Argentina • Colombia • Chile • Venezuela • The winners are: • South Africa • Egypt • Algeria • Nigeria • Morocco • Tunisia • MIDDLE EAST • Iran • Saudi Arabia • Israel • United Arab Emirates • Syria • Kuwait Go to Statistics Back to Table of Contents

  7. Regional Ranking for easiness to do business in… Alta selected the top 15 of each region (where available) Missing: Russia China India Brazil Go to Global Ranking Back to Table of Contents

  8. What is happening in Europe? • In 2005, Europe originated more leasing volume than the US (€262.9 billion) • Leaseurope’s new leasing business amounts to 2.37% of GDP and the leasing penetration rate, measured as the amount of investment financed by leasing during the year, rose to 15.94%. • New leasing business grew by almost 14%, far exceeding expectations. • The portfolio of leased assets in the hands of European leasing companies represented via Leaseurope’s members amounted to approximately 600 billion euros at the end of 2005. Back to Table of Contents

  9. COUNTRY % 2005 GERMANY 133,200.00 22% GREAT BRITAIN 121,033.93 20% ITALY 100,000.00 17% FRANCE 73,144.00 12% SPAIN 35,364.30 6% AUSTRIA 21,184.53 4% PORTUGAL 11,702.31 2% SWEDEN 10,756.61 2% HUNGARY 10,480.75 2% SWITZERLAND 9,859.63 2% NETHERLANDS 9,838.70 2% GREECE 9,688.00 2% BELGIUM 8,846.67 1% CZECH REPUBLIC 8,400.85 1% DENMARK 7,490.43 1% NORWAY 7,076.61 1% FINLAND 5,497.00 1% POLAND 4,965.80 1% SLOVAKIA 3,757.33 1% SLOVENIA 2,196.50 0% ESTONIA 1,850.11 0% ROMANIA 1,692.97 0% MORROCCO 1,463.27 0% BULGARY 489.61 0% BOSNIA & HERCEGOVINA 141.88 0% RUSSIA N.A. 600,121.79 TOTAL What is happening in Europe? Source: Leaseurope Back to Table of Contents

  10. The Leasing Industry in Latin America grew over 55%, and represents total assets of US$ 26.3 billion. In Mexico, the law was reformed to enable lessors to engage in multiple financial services (Consumer lending, factoring and other- SOFOMEs), without Government regulation; In Brazil, strong association but consolidation is happening (Bradesco buying American Express and Itau buying BankBoston portfolio GE Capital sold its leasing portfolio in 2005); Chile: Banks absorbing leasing subs. Risk of corporate schizophrenia; Colombia: Consolidation among Banks; Argentina: Banks also dominating the landscape Central America: CAFTA and consolidation around banks. GE, Scotiabank and HSBC investing What is happening in Latin America? Map Source: AON Back to Table of Contents

  11. RANKING LEASING COMPANIES Top 20: 8 from Brasil; 4 from Chile; 2 from Puerto Rico; 3 from Colombia; 1 from Mexico; 2 from Peru

  12. HALLAZGOS POR PAÍS

  13. PRESENCIA DE MULTINACIONALES

  14. What is happening in Africa? • South Africa has a solid leasing industry dominated by 4 Banks; • Egypt is growing its leasing industry since the 1995 Leasing Law. Average annual originations: US$ 285 M/year; • Sub-Saharan Africa is joining the leasing league, procuring for best practices and for investment promotion in their countries. To highlight: Tanzania, Ghana, Madagascar, RDC, Nigeria… Map Source: AON Back to Table of Contents

  15. What is happening in Asia? • China Leasing Industry: Continuous growth, Leasing Law in process, Foreigners coming blindly. Expect surprises… • Japan: Mature leasing industry, with weak regulatory framework (?), penetration of 9% of total investment. IT represents 35% of originations; • India: Growth impaired by an hostile Tax Legislation and funding restrictions; • Korea: Mature and consolidating players in the industry recovering from the 1998 crisis; • Australia: Solid Leasing industry • Malaysia, Thailand, Indonesia and other countries are in the build-up phases. Map Source: AON Back to Table of Contents

  16. What is happening in the Middle East? • Saudi Arabia, Kuwait, UAE, Bahrain all regulate leasing based upon Sharia Law, on the «  Ijara » foundation. Leasing is emerging since 2000 and growing; • Kuwait lease receivables exceed US$ 2 billion (6 companies); • Israel leasing industry is highly concentrated in car leasing and financing • Iran: Emerging leasing industry with investment of IFC (2002). Mostly controlled by State owned Banks Map Source: AON Back to Table of Contents

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