Nordex SEDa. interim report 2015

Transcription

1 Nordex SEDa interim report 2015

2 development of new business 2 Against the backdrop of economic and political un - certainties, demand for government export credit guarantees for German exports remained steady at the previous year s level in the first half of The German Federal Government provided cover for transactions worth 12.7 billion euros. This business was dominated by individual large-scale projects even more heavily than in the past. Russia, Turkey, Egypt, the United States and China were the countries ac - counting for the largest volume of cover. As in earlier years, export credit guarantees closed the first half of the year with a cash surplus, contributing million euros to the Federal budget accounts. In the first six months of 2015, the volume of export business covered by Export Credit Guarantees of the Federal Republic of Germany declined by 5.9% over the same period of the previous year, reaching 12.7 billion euros. However, there was a substantial increase in the volume of new applications (up 41%). Despite the more muted momentum in the emerging economies and developing countries 1, cover vol ume for this country group rose by 3.6%. The pro - portion which they contributed to the total cover granted widened from 76% in the same period of the previous year to 84%. Export credit guarantees for industrialised countries 2 came to 2.1 billion euros, thus contributing 16% to the total cover volume. 1 European countries (without industrialised countries): Albania, Belarus, Bosnia-Herzegovina, Bulgaria, Croatia, Kosovo, Latvia, Macedonia, Moldova, Montenegro, Romania, Russian Federation, Serbia, Turkey, Ukraine. 2 Industrialised countries: The group of industrialised countries comprises all countries with OECD country classification 0; these include OECD high-income countries (according to the World Bank definition: countries with a GNI per capita above 12,746 US dollars in 2014), member states of the European Monetary Union including their affiliated territories, as well as Singapore.

3 Business was again dominated by individual largescale projects in the first half of Accordingly, sharp fluctuations in the volume of new export credit guar antees granted for certain countries cannot be construed as evidence of a general change in the flow of exports. A series of further major projects is currently being processed. Covered exports to russia climbed to 2.5 billion euros due to the effect of a major project. In addition, cover was provided for several Airbus aircraft. More than a quarter (27%) of the cover provided was for trans - actions on short payment terms. There was also a significant 48% increase in cover provided for turkey to 1.2 billion euros. Among other things, the Federal Government backed the construc - tion of several Airbus aircraft, wind power systems and a wood fibre (MDF) production plant. The volume of covered business on short payment terms came to 29%. volume of new cover by country groups in billion eur Emerging economies and developing countries Industrialised countries ' regional distribution of newly granted cover (excluding industrial countries) as at in billion eur Europe Asia Africa America Total: (100%) top markets for new guarantees as at in billion eur Russia R.F. Turkey Egypt United States China P.R Brazil Dubai UAE Indonesia India Norway Subtotal: 8.1 (64.0%) Total: 12.7 (100%)

4 4 Export credit guarantees for egypt increased to 936 million euros due to major transactions. Cover was provided for new ship builds (submarines) and tunnel boring machines. Nearly all the transactions were ex - export credit guarantees for military goods ecuted on short payment terms. as at in billion eur Egypt Type of goods Building, testing and delivery of two submarines The cover of 716 million euros provided for the united states was dominated by guarantees for a steel mill. Total: guarantees by horizon of risk as at in billion eur At 638 million euros, covered exports to china re - mained at the previous year s level, with major guarantees issued for an Airbus aircraft. Roughly 70% of the transactions were executed on short payment terms. Wholeturnover and revolving policies: Single transaction policies up to 1 year: Single transaction policies 1-5 years: Single transaction policies over 5 years: Total: % 1.6% 10.1% 39.9% Export credit guarantees for transactions with brazil rose by 20% to 581 million euros. A substantial pro - portion of this was for machinery and equipment for automotive production and for producing MDF panels. 61% of the exports were financed on short payment terms and were primarily covered under wholeturnover policies. r The Federal Government provided cover of 502 million euros for dubai chiefly in connection with Airbus aircraft.

5 Cover granted for indonesia rose by 140% to 379 million euros as a result of export credit guarantees granted for extensions to a steel mill. Export credit guarantees for india dropped sharply to 312 million euros. Around 90% of the cover provided was for transactions on short payment terms predom - inantly under wholeturnover policies. The Federal Government provided cover for the construction of two offshore ships for norway. breakdown of newly granted cover by horizon of risk and type of business Export credit guarantees for aircraft rose sharply (81%) to just under 1.5 billion euros. By contrast, cover for ship finance dropped by 57% to 1.2 billion euros after the previous year s strong increase to 2.8 billion euros as a result of a number of major projects. Cover for short-term business with credit periods of up to one year declined by 19% over the first half of 2014 to 6.3 billion euros. It accounted for 50% of new business (previous year: 58%). Short-term single transaction policies dropped by 42% from 2.2 billion euros in the previous year to 1.3 billion euros. At just under 5.1 billion euros, revolving policies were down on the previous year s figure of 5.6 billion euros. 5 medium and long-term guarantees with credit periods of more than one year rose sharply by 12% to 6.3 billion euros in the first half of The volume of export credit guarantees with credit periods of more than five years climbed by 19% to 6.1 billion euros. The proportion of medium and long-term cover in the total volume widened to 50%. The Federal Government provided cover under project finance schemes for five projects worth a combined billion euros (previous year: three projects for 585 million euros). In addition, applications for project finance worth around 1.8 billion euros are currently pending.

6 outstanding risk 6 revenues as at in million eur 26.3% 26.6% The outstanding risk for the federal government under all existing cover including interest stood at 89.0 billion euros as at 30 June 2015 and was thus unchanged over the previous year (89.1 billion euros). This amount constitutes the maximum outstanding risk from current Federal Government guarantees at any given time. Amortisation and recoveries: Premium/fees earned: Interest received: Total: * * Difference caused by rounding 47.1% revenues Revenues from premiums and fees fell by 3% over the first half of 2014 to million euros. recoveries under indemnified claims for commercial losses rose by 33% to 83.5 million euros. This was chiefly related to payments for indemnification pro - vided as a result of the finance and banking crisis in Kazakhstan.

7 Recoveries in respect of political claims and repayments of capital under rescheduling agreements rose almost three-fold over the same period of the previous year, coming to million euros. This is due to re - coveries under the bilateral rescheduling agreement with Argentina which was signed in January interest income more than doubled (144%) to million euros. At million euros, the highest payments were made by Argentina, followed by Iraq with 24.3 million euros, Pakistan with 10.3 million euros and Myanmar with 7.6 million euros. expenses Payments for claims rose slightly by 6% to mil - lion euros. The highest payments were made for claims in Iran (55.4 million euros), Russia (45.2 million euros), Ukraine (13.9 million euros), Ghana (13.7 million euros) and India (10.7 million euros). recoveries under commercial claims as at in million eur Kazakhstan Chile Indonesia Cote d Ivoire Malaysia Subtotal: 66.4 (79.5%) Total: 83.5 (100%) 36.2 recoveries under political claims and reschedulings as at in million eur Argentina Egypt Pakistan Iraq Iran Subtotal: (92.4%) Total: (100%) claims payments as at in million eur 27.8% Commercial risk claims: Political risk claims: % Total: 199.2

8 8 financial result for the half-year At the end of the first half of 2015, the export credit guarantee scheme generated a surplus of mil - lion euros (previous year: million euros). In addition, the interest received of million euros arising predominantly from rescheduling agreements was transferred to the Federal budget accounts. For methodical reasons, it is excluded from the cal - culation of the financial result as the funding costs incurred by the Federal Government in respect of claims paid are likewise not included. new developments in the export credit guarantee In the first half of 2015, the Federal Government extended the cover facilities for kenya, senegal and uganda. In doing so, it continued the strategy commenced at the end of 2014 for widening cover in the public sector for selected countries in Sub- Saharan Africa. Since December 2014, the delivery of goods and services to public and private-sector buyers in Ethiopia, Ghana, Mozambique, Nigeria and Tanzania on medium and long-term payment terms has been backed by government export credit guar - antees subject to certain conditions. With the wid - ening of cover facilities, the foundations are being laid for small and mid-size companies in particular to step up their activities in Africa. financial result as at in million eur Interest received Annual result excluding interest '11 '12 '13 '

9 @ spotlight on africa: opportunities for small and mid-size companies. This was the motto of a forum which took place at the end of March 2015 in Hamburg. There exporters and representatives of banks and associations discussed the future prospects of the continent with Afrika-Verein der deutschen Wirtschaft e.v., the Federal Ministry for Economic Affairs and Energy and representatives of the mandataries, Euler Hermes and PwC. The one-day information event particularly highlighted the opportunities offered by the continent, recent decisions on cover policy, risk-mitigating measures and increased A free initial inquiry was introduced in December 2014 for cases in which the proportion of foreign deliveries exceeds 49%. This allows exporters to determine at an early stage whether the Federal Government is fundamentally willing to provide cover for the transaction despite the fact that the bulk of the manufacturing content is likely to be of non- German provenance. In the first half of the year, exporters who were able to plausibly justify the need for increased foreign content received a positive declaration of intent, thus obtaining additional forward planning Since February 2015, exporters have been able to submit a non-committal inquiry on-line to determine whether a transaction is fundamentally eligible for cover. This particularly reduces the ob - stacles for companies requesting government export credit cover for the first time. The regional company advisors examine the planned structure of the transaction on the basis of the information provided in the initial inquiry and advise exporters in a preliminary free discussion in person. A final and legally binding decision on the eligibility of a transaction for cover is made after an application is formally submitted and examined by the Federal Working in close consultation with exporters and banks, the Federal Government revised the letter of undertaking. Explanations based on practical experience and a clear structure make it easier to understand. Letters of Undertaking must be submitted by the exporter and its sub-contractor and are a major condition for receiving buyer credit cover. A special document for companies covering their foreign subsidiary s risk exposure is now also In June 2015, the Interministerial Committee revised the rules for federal government participation in claims management costs. Under the new rules, the Federal Government will bear a portion of the external costs for claims management measures taken prior to indemnification if these measures are taken with its approval or at its instigation and are extraordinary and considerable, i.e. cost more than 10,000 euros. The amount exceeding 10,000 euros is refundable. 9

10 At exporters request, the Federal The Federal Ministry for Economic Affairs and Energy has launched an information service for German companies covering current questions in connection with greece. Companies can contact Germany Trade & Invest (GTAI) by telephone or or visit the new special GTAI web site: has im proved the letter of interest (loi) for standard transactions. It now contains sub - stantially more information on the transaction to be covered and the type and scope of the Hermes Cover being applied for. Although the LOI is legally only an expression of interest and therefore not binding, the intention of cover by the Federal Government which it expresses is an important competitive factor for exporters during the bidding The Interministerial Committee has adopted the changes to the country risk categories implemented by the OECD. The following OEDC country risk categories were modified in the first half of 2015: country risk categories Telephone information service: +49 (0)228/ (work days from 9 am to 5 pm) griechenlandinfo@gtai.de Special website on Greece: Trade & Export Finance (TXF) named Euler Hermes Best in Class in the Export Credit Agency category. In addition, Hermes Cover was awarded the TFR Gold Award by Trade and Forfaiting Review (TFR). As well as this, three projects covered by export credit guar - antees issued by the Federal Republic of Germany were named Deals of the Year Bangladesh Hungary Maldives Montenegro Mozambique Romania Russia R.F. Rwanda South Africa new previously

11 The leadership function in the Interministerial Com - mittee, which has the underwriting responsibility for Federal Export Credit Guarantees, is exercised by the federal ministry of economic affairs and energy: Bundesministerium für Wirtschaft und Energie Referat VC2 Scharnhorststraße D Berlin The Federal Government has appointed a consortium formed by euler hermes aktiengesellschaft (Euler Hermes), Hamburg, as lead partner, and pricewaterhousecoopers ak tien ge sell schaft wirtschaftsprüfungsgesellschaft (PwC), Frankfurt am Main, Branch Office Hamburg, to manage the official export credit guarantee scheme. Further details and in for ma - tion may be obtained by contacting the Head Office of Euler Hermes Aktiengesellschaft in Hamburg or one of the branch offices. Extensive information material on the official export guarantee scheme, for example current editions of the AGA-Report, the General Terms and Conditions, information leaflets and application forms as well as the Annual Reports in English and German can also be accessed via Internet. You may request additional information material or raise your questions directly via . Euler Hermes Aktiengesellschaft Export Credit Guarantees of the Federal Republic of Germany Postal address Hamburg, Germany Office address Gasstraße Hamburg, Germany Phone: +49 (0)40/ Fax: +49 (0)40/ info@exportkreditgarantien.de department berlin Friedrichstadt-Passagen Quartier 205 Friedrichstraße Berlin, Germany Phone : +49 (0)30/ Fax : +49 (0)30/ aga-berlin@exportkreditgarantien.de 11 Press deadline: 30 June 2015 Date of publication: August 2015

12 Euler Hermes Aktiengesellschaft Export Credit Guarantees of the Federal Republic of Germany Postal address Hamburg, Germany Office address Gasstraße Hamburg, Germany Phone: +49 (0)40/ Fax: +49 (0)40/ Branch offices: Berlin, Frankfurt, Hamburg, Cologne, Munich, Stuttgart