Swedish export. Eight large players share their EKN experience

Swedish export Eight large players share their EKN experience

Let s create more, and more secure, export transactions Eight of Sweden s major exporting companies tell about their export. They re active on different markets, in different fields. But they have one thing in common. They all consider EKN, the Swedish Export Credits Guar antee Board, as being a key success factor in their export transactions. These large corporations have built their growth and market leaderships mainly on exports. Always with an eye on the horizon for new markets, new opportunities. If they can do it, so can you. So, get inspired. Then let s get in touch and let s do business together. contact EKN Phone: +46 8 788 00 00 Web: www.ekn.se E-mail: info@ekn.se

Ericsson Japan EKN helps us to focus on opportunities Japan has been struggling economically for several years, but the telecom sector is an exception. Here Japan is at the cutting edge, and drives development in many ways. Niclas Jalvinger is CFO of Ericsson Japan. I am impressed by EKN s attention to detail and their profes sionalism, he says. They thoroughly examine everything from technology and the market to the authorities focus and how the spectrum is allocated. Decisions are taken on purely business grounds. Niclas Jalvinger CFO of Ericsson Japan ericsson ab Head Office: Stockholm Operation/business: Telecom Major contract with Emobile We recently signed a major contract with the Japanese company Emobile, which primarily focuses on mobile broadband, explains Niclas. The market is big and there is a steady stream of subscrib ers. But, in the wake of the financial crisis, the operator found it difficult to finance the rapid expansion. We were able to solve the problem when EKN stepped in and guaranteed the transaction. Main markets: Worldwide Annual turnover: 203 billion SEK EKN visits Tokyo EKN was on site in Tokyo at the start of February 2011. It s ideal that they come and visit us. We want to give them a comprehensive picture of the situation, both opportunities and challenges. They met with customers and resellers, in this recent visit, they also visited a Network Operation Centre (NOC). 3

Scania Latin America EKN offered a faster and simpler solution when we needed it Scania, the world-known Swedish manufacturer of heavy trucks, buses and engines, has a wholly-owned subsidiary with production facilities in Brazil which support the entire Latin American market. When they faced a challenge in a deal with a Peruvian customer, EKN saved the day. Liana Mara De Marchi Cano Financial manager scania cv ab Head Office: Södertäje Operation/business: Trucks, buses and engines Main markets: Europe, Latin America, Asia Annual turnover: 78.2 billion SEK 4 Financial Manager Liana Mara De Marchi Cano heads the trade finance department at Scania Latin America. When asked to de scribe her experience of EKN, she says: We had a big deal going on, with a scope of 37 trucks to a mining contractor in Peru. Everything seemed to be on track when the bank suddenly got second thoughts and withdrew from the transaction. Customer oriented We looked for alternative solutions and came up with a new approach where Scania Finance Chile arranged the credits, with guarantees from EKN. By doing this, we managed to save the deal. This was the first time we used EKN and my experience is entirely positive, especially when I compare them with the tradi tional setup we ve used so far. In an international context, they offer fast service, simple solutions and a friendly, customer-oriented approach. I highly recommend other industries facing the same challen ges to get in touch with EKN.

ITT Water & Wastewater EKN provides access to new markets EKN s flexible solutions give ITT Water & Wastewater AB a competitive edge and access to new markets, says Håkan Gustafsson. ITT Water & Wastewater AB is a part of the global ITT Corpora tion. With the leading Flygt brand, the company dominates the market for submersible pumps and stirrers for many applications in water handling and treatment solutions. A competitive edge Håkan Gustafsson, Credit Manager, has long experience in work ing with EKN since he joined the company in the nineties. With EKN s guarantee for loss on claim, we dare to take on larger risks and can also meet customers needs for open credits. In addition, we gain a competitive edge by being able to offer more flexible terms and conditions. When dealing with local distributors on markets in the Middle East, Eastern Europe and Latin America, we need help to share our risks even on smaller, non-project-related transactions. In these cases, we ve agreed on a limit with EKN and we provide reports to EKN on a monthly basis. Håkan Gustafsson Credit Manager ITT Water & wastewater ab Head Office: Sundbyberg Main markets: Worldwide Annual turnover: 4.5 billion SEK Faster and more flexible Throughout the years, I ve also noticed a positive trend in the way EKN relates to its customers. They are faster, more flexible and offer larger coverage than before. I m convinced that we will continue our well-functioning coop eration and I strongly recommend other export-oriented businesses to explore the EKN opportunity, Håkan concludes. 5

Metso paper sweden EKN is a catalyst and enabler On markets with limited access to free risk capital, EKN plays a vital role in our offer, says Mikael Fridlund, Metso. Their understanding of our needs and our customers needs has led to a really successful cooperation. Mikael Fridlund trade and project finance Metso is one of the world s leading suppliers of technology and knowhow for mining, construction, energy and the pulp & paper industries. Mikael Fridlund is in charge of trade and project finance for the Fiber Business Line within the segment, Paper and Fiber Technology. With our strong northern heritage, we can offer vast experience in this field, with tailored and competitive solutions for pulp and paper mills all over the world. Today we can see a clear trend that large pulp production lines are being built in developing markets in Latin America and Southeast Asia, where Brazil, Chile, China, India and Russia are key markets for us. metso paper sweden ab Head Office: Helsinki, Finland Operation/business: Paper fiber technology Main markets: Asia-Pacific, South and Central America, Europe, North America Annual turnover: 19 billion SEK Risk-sharing Since the Metso products mean huge investments, not seldom rang ing between 1-1.5 billion USD, the lack of free risk capital in parts of these markets is a limiting factor. The financial crisis in 2008 also tightened the tap on available risk capital when banks all over the world saw an urgent need to consolidate. EKN means, and has meant historically, a lot for our business. I consider them being a catalyst and an enabler especially when times are tough. The principle of sharing risks is vital for making these large transactions possible. Increased customer focus Mikael Fridlund has been working with trade and project finance for more than two decades and also points out a positive develop ment of EKN over the years. I must say we have a great cooperation, with mutual under standings. Their increased customer focus is evident in all our contacts. 6

Siemens Industrial Turbomachinery EKN empowers turbine sales Siemens Industrial Turbomachinery in Finspong, Sweden, is one of the world s leading suppliers of industrial gas- and steam turbines to the energy sector. 95% of the business volume is exported and EKN is a key factor for this success. Daniel Lundgren, Commercial Director at Siemens Industrial Turbomachinery AB, is highly appreciative of EKN s involvement. We have a close partnership with EKN that goes back many years, Lundgren says. They give us invaluable support in higherrisk transactions further afield. They also help us by identifying risks. EKN often makes the difference Financing was not a problem a few years ago but with the finan cial crisis, even the large strong companies out there are having difficulties raising loans, Lundgren says. That s why financing has become a more crucial issue. Now adays, EKN often makes the difference between whether a trans action takes place or not. Our customers need long-term credit since they make large investments where earnings can take a long time to materialise. With EKN guaranteeing the loans, our customers have a credit period that reflects the time until they obtain a return on their projects. Daniel Lundgren Commercial Director Siemens Industrial Turbomachinery AB Head Office: Finspong Business: Gas- and steam turbines Main markets: Worldwide Annual turnover: 9.5 billion SEK Close relationships is key I think EKN have become more easily accessible. You always know whom to call and our primary contact knows how we operate, both as individuals and as a company. We want EKN to be there as early as possible to show customers they have access to a good financing solution when buying our products. 7

Our customers are always positive about the opportunities that an EKN guarantee brings Joakim Beckius, abb

KARIN APELMAN, DIRECTOR GENERAL OF EKN, AND ANGELICA ADAMSKI An Sandvik EKN s flexibility paves the way for more transactions Angelica Adamski, Head of Sandvik Credit, says that EKN s flexibility and solution-oriented approach opens up new channels and leads to more transactions. Sandvik is an export-intensive engineering group in tooling, mate rials technology, mining and construction with representatives in more than 130 countries. By using standardised methods and fixed templates in their cooperation with EKN, they ve managed to speed up processing radically. New mandate increases opportunities EKN can now guarantee transactions concerning products with global sourcing. Much of our production takes place in Sweden, but we also have production facilities in other countries, Angelica explains. Compared with many other Export Credit Agencies (ECAs) that I have worked with around the world, EKN is among the most flexible and service-oriented. New portfolio solution To meet our need for faster and more secure export transactions, we have worked closely with EKN to develop a customised portfolio solution to meet our need for faster and more secure export trans actions. The portfolio means that we agree beforehand on what applies for a number of current markets and currencies. Now we know immediately that we have EKN s backing, and can offer more financing solutions to more markets. With structured payments and EKN s rapid processing, Sandvik Credit can help the company sell more equipment, Angelica concludes. Angelica Adamski head of Sandvik Credit sandvik ab Head Office: Sandviken Operation: High-tech engineering productions and services for metal cutting, construction and mining Main markets: North America, USA, Australia, Germany, China Annual turnover: 82.6 billion SEK 9

Volvo Construction Equipment EKN is a vital factor for growth on emerging markets Volvo Construction Equipment, VCE, is a leading supplier of excavators, articulated haulers, wheel loaders, graders and other construction machines and vehicles. Patrik Achtman Director Volvo construction equipment ab Head Office: Brussels, Belgium Operation/business: Construction equipment products Main markets: Worldwide Annual turnover: 53.8 billion SEK With market presence in more than 125 countries, including a large portion of emerging markets, the collaboration with EKN is vital for growth. Patrik Achtman, Director Project and Structured Finance, explains why: We mainly do business through independent dealers and need to offer sound financing terms in order to get the deal done. The really great thing about the EKN guarantee is that we can offer a suppliers credit as an off-balance-sheet solution, without affecting the customer s credit limit. Strategic discussions I would describe our collaboration with EKN only in positive terms. I presume we are one of their most frequent customers. Over the years we ve grown to understand each other on a very deep level, Patrik says. Beside our project-related contact on a daily basis, we have meetings and discussions with them quarterly, where we get a chance to talk about volumes, strategies, new market entries, trends and so on. Key factor I recently browsed through ten years of sales history, covering about 10,000 sold units. I d say that in most of the cases, financing with EKN was a key contributing factor. And the more emerging a market is, the more important the guarantee. 10

ABB EKN is an important part in our offer With highly customised projects and complex products, the guarantees covering the risks associated with such activities are critical for ABB Sweden s ability to handle the risks and to close the deals. All of ABB Sweden s five divisions are export-oriented, delivering systems and products to large-scale power and automation projects all over the world. Joakim Beckius, Manager for the Project and Trade Finance Department, arranges financing and risk cover to successfully support ABB Sweden s export. We re involved in transactions ranging from some 100,000 USD to 1 billion USD, often at an early stage. Financing and risk cover is critical in making attractive offers to potential customers. The guarantee is a must EKN plays an important part in our offer, helping us to deal with risks that we cannot manage ourselves, Joakim Beckius says. I mean, there are a lot of deliveries from ABB tailored to the specific customer s demands and needs. If a contract or client faces difficulties, the consequences for ABB can be severe. In such cases, which are not frequent, it is vital that ABB has taken appropriate measures to minimize possible losses, both in case of non-payment or cancellation of contracts. The comfort of having EKN s guarantee for loss on production is therefore often a prerequisite for making the deal happen. Joakim Beckius manager, project and trade finance abb ab Head Office: Zürich, Switzerland Operation/business: Power and automation Main markets: Global coverage Annual turnover: 192 billion SEK A strategic partner ABB and Joakim Beckius often take customers to visit the EKN of fice in Stockholm, as a way of showing how the cooperation works. Our customers are always positive about the opportunities that an EKN guarantee brings in respect of getting good terms in financial issues. EKN s approach is business-oriented and reflects a sense of trust that we really appreciate. 11

LEON AB Environmental certified printed matter 341 392 Norrköpings Tryckeri AB 2011-11 EKN creating confidence in your exports EKN is a government agency that supports Swedish exports and the interna tionalisation of Swedish industry. This we do by offering exporting companies and banks guarantees for payment and financing, together with advice on business structure and risk management. Our services provide an extra level of confidence, increased competitiveness and more opportunities for successful export transactions. The Swedish Export Credits Guarantee Board Kungsgatan 36, Box 3064, SE-103 61 Stockholm Telephone +46 8 788 00 00 www.ekn.se