Export-Import Bank of the United States Working Capital Guarantee Program

1. Export-Import Bank of the United StatesWorking Capital Guarantee Program • Presented by: • Walt Trask • Vice PresidentInternational Trade Finance • March 23, 2011

2. Overview of Ex-Im Bank • Official U.S. Export Credit Agency (“ECA”) • Founded 1934 • Purpose: Facilitate financing of U.S. exports of goods/services and thereby create jobs • No minimum or maximum transaction size • In FY 2010 export financing surged to $24.5B supporting $34.4B of exports and 277,000 jobs

3. Ex-Im Bank Working Capital Guarantee Basic Requirements • A reasonable source of repayment • “On cover” in the buyer’s country • Goods must have U.S. content (labor, materials and mark-up) of at least 50% • Goods must be shipped from the U.S.

4. Ex-Im Bank Working Capital Guarantee Main Products • Short-term export credit insurance covering extended payment terms out to 180 (exceptionally 360) days • Medium and long-term programs covering exports of capital equipment on extended payment terms out to five years or longer • Working capital guarantee for pre-shipment finance

5. Ex-Im Bank Working Capital Guarantee • Supports companies of all sizes but mainly small and medium-size firms • Provides a guarantee to lenders for an exporter’s working capital needs • Can be either transaction specific or revolving • Can also support establishment of standby letters of credit and indirect exports

6. Ex-Im Bank Working Capital Guarantee • Provides needed cash to finance exports • Increases lenders appetite for financing exports by receiving a 90% government guarantee • Provides financing for foreign account receivables • Allows exporters to fill large or seasonal orders • Allows exporters to expand collateral base • Export-related inventory, including P.O.s, raw materials and WIP • Foreign Account Receivables included in Borrowing Base

7. Ex-Im Bank Working Capital Guarantee Basic Parameters • Ex-Im Bank guarantees 90% of principal and interest on a loan facility made to an exporter. • Loan is fully collateralized by export-related inventory and A/R. • Generally one year but up to three years. • Covers exporter performance risk. Note: Provides no protection to exporter against foreign buyer non-payment.

8. Ex-Im Bank Working Capital Guarantee Lines of Credit • Transaction Specific • Transaction SpecificRevolving • Revolving • Multiple transactions or specifically identified ones • May be committed for up to three years with annual reviews

9. Ex-Im Bank Working Capital Guarantee Types of Exporters • Manufacturers • Trading companies • Wholesalers/distributors • Service companies

10. Ex-Im Bank Working Capital Guarantee Letters of Credit • An Ex-Im Bank guarantee facility can support the following types of LCs: • Commercial or standby (domestic and foreign) • Collateralized at 10% - 25% • Term cannot exceed loan term • Warranty letters of credit • Lender extends other credit • 100% collateralized, 25% in cash • Maximum: 20% of loan or $500,000 • Term cannot exceed loan term

11. Trade Finance “Export Solutions” Notes Ex-Im Bank Export Credit InsuranceExporter Benefits • Risk mitigation • Competitiveness/marketing • Move existing customers to terms • Financing tool • Ability to assign foreign receivables • Accurate cash flow

12. Solutions That Work

13. Solutions That Work

14. Solutions That Work

15. International Trade Finance Contacts