Global Collections Review The collections behaviour across countries 3rd edition – Summer 2010

1. Raymond van der Loos Managing Director Global Collections ReviewThe collections behaviour across countries3rd edition – Summer 2010 Main sponsor:

2. About us • Atradius Collections is a business unit of Atradius Group and provides efficient, quick and flexible solution to recover international and domestic trade debts • We serve over 14,000 customers handling on > 100,000 cases a year • We collect international cases for local, domestic debt collections agencies • Based in 20 countries, and work with a global network of collections specialists, lawyers and insolvency practitioners worldwide • Over 80 years of worldwide credit management industry experience uniquely positions Atradius Collections as a global leader in B2B debt collections Main sponsor: 2

3. Overall Introduction & Background • “Global Collections Review” survey was conducted to assess business requirements for outsourcing of collections across 22 countries all over the world • The survey looked into 4 areas of interest: • Collection behaviour and usage of external collections agencies • Criteria businesses use to select a debt collections partner • Aspects that are likely to discourage businesses from outsourcing outstanding debts • Future development of First Party Collections Main sponsor:

4. Survey Methodology • Basic population: companies from 22 countries were surveyed • Australia, Austria, Belgium, Canada, China*, Czech Republic, Denmark, Germany, Great Britain, France, Hong Kong*, Hungary, Ireland, Italy, Mexico*, Netherlands, Poland, Slovakia, Spain, Sweden, Switzerland, USA • Sample: 3.971 companies participated (150 – 200 per country) Turnover division Industry division Main sponsor: * for these countries there is limited results.

5. Main Survey Results • Consistent with results of previous editions Global Collections Review • High usage of DCAs: around 30% at European and worldwide level • with significant higher use in some countries • Usage of a DCA: 55% use for international debts • Success rate,Price and Debtor Relationship are the key drivers in • selecting a DCA • Strong focus on customer relationship, especially for not using • agencies (fear to harm the relationship) • First Party Collections: good expectations in selected group of • countries Main sponsor: 5

6. Use of outsourced collections service • On average approx. 30% of respondents use external debt coll. agency • NL and Sweden around 50% use external agencies and lower usage of other external services Main sponsor: * China, Hong Kong and Mexico n.a.

7. Collections behaviour:Domestic vs. International debts • 55% of companies using external debt coll. agencies use for international debts • Belgium, Switzerland, Ireland, Spain, UK, France: above average Main sponsor: * China, Hong Kong and Mexico n.a.

8. Criteria businesses are likely to use to select a debt collections partner • Success rate followed by Price and Debtor relationship most important selection • criteria across all countries • Additional services, Global expertise and Local knowledge remain least important Main sponsor:

9. 1: Success rate • Importance of Success Rate across all countries • Companies considered this criteria as the key driver in selecting DCAs with few exceptions • Across economic sectors, Success Rate is equally important Main sponsor:

10. 2: Price • Price is the second most important key driver in selecting a DCA • Companies in Spain gave to it a significant lower importance • Price was more important for companies in Manufacturing sector compared to Service sector Main sponsor:

11. 3: Relationship with debtors • Ability to maintain positive relationship with debtors was a further important factor • Companies in Denmark, Hungary, Ireland and USA considered it significantly more important than price • It was the second factor of choice for larger companies with a turnover of more than €100 million Main sponsor:

12. 4: Reputation • Reputation was not one of the main criterion in selecting DCAs • Companies based in Canada ranked it as more important than Success rate • It was ranked more important from companies with a turnover between €10-100 million Main sponsor:

13. 5: Easy access to up-to-date information • It was not considered as an important criterion in driving the selection of an external debt collection agency Main sponsor:

14. 6: Additional services • Additional services= Dunning, Early Collections, Invoice to Cash etc. • This criterion is in many countries not important to select an agency • Additional services were considered more important from companies in Italy and France Main sponsor:

15. 7: Local knowledge • This criterion is not important in many countries Main sponsor:

16. 8: Global expertise • Global expertise was ranked least important • However, companies in Hungary considered it as an important reason for choosing a DCA Main sponsor: 16

17. Reasons for NOT outsourcing Collections • Main reason not to outsource: ‘Use of internal resources’,‘Customer relationships’, followed by ‘Cost’ • ‘Cost’ does not represent main reason for not outsourcing collection activities • Main reasons for collecting internally, worries for damages at company image and small size of company were frequently cited* * Open question Main sponsor: 17

18. First Party Collections: expectations • Significantly higher likelihood in Italy, UK, Poland and USA * China, Hong Kong and Mexico n.a.

19. Success factors in outsourced debt collections market • Success Rate: • What do we mean with Success rate; definition? • What do (potential) customers evaluate? • Internationality: • Higher integration • Streamline process • Relationships with debtor: • How to treat “live” customer • First Party Collections: • Large differences among countries Main sponsor: 19

20. Complete survey report to download on: • www.atradiuscollections.com • Raymond van der Loos • Managing Director, Atradius Collections • Raymond.van.der.loos@atradius.com Main sponsor: 20