WHY? WHY? WHO? WHO? HOW? HOW? Die Kreditversicherung.

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1 WHY? WHY? WHO? WHO? HOW? HOW? Die Kreditversicherung.

2 Why do you need PRISMA, THE credit insurance in Austria?

3 The crisis really hit us hard But if something did go wrong... Would it make sense to put all our eggs in one basket? What will happen if my customers The risk is just too big. What s going to happen to we ll be the market leader. our cashflows if the order collapses? If we can get this deal wrapped up, colleagues from sales have done their sums right? stop paying? And who can say for sure that my Where can I find reliable information?

4 We ll take your cares away Let s get straight to the point: in business there s a very fine line between success and failure. We ll help to keep your business on the right side of the line. You re free to manage sales and cashflows, and focus on your day-to-day operations. You can concentrate on your business and we will provide you with the information you need to make the right decisions. We are the specialists when it comes to harvesting and analysing creditworthiness data. We insure your revenue at home and abroad. You can launch new business ventures and hedge risks in existing relationships. Both call for external risk experts. If you are expanding and moving into new markets you need reliable information at your fingertips, but even the most trusted customers can stumble from time to time. Our neutral analysis makes sure that you don t miss a thing. You have the peace of mind that the risk management experts are on your side. Make the most of our in-depth data on countless companies all over the world. We look at your partners creditworthiness, keeping a close eye on developments and warning you in good time if the situation takes a turn for the worse. You pay a scheduled insurance premium which protects you against an unexpected default. We re always happy when our customers can wave goodbye to problems with customers who are unable to pay that s what the premium is for. If your business is insured against the headaches associated with defaults, then we ve done our job!

5 WHY? WHY? Ever heard of the domino effect? You can stop it before it hits your business. It s easy to get swept along by a wave of bankruptcies. Time after time, customers who are unable to pay end up putting their suppliers at significant risk. Credit insurance stops the domino effect in its tracks, as we step up and cover any defaults. Protect your current assets. Under normal circumstances your assets and inventories will be protected by various insurance policies. But what about your receivables? We offer you the best possible protection against bad debt. Swift compensation will keep your cashflow healthy, keeping your business on an even keel. Assets Fixed assets Inventories Cash and cash equivalents Trade receivables Liabilities Equity Long-term debt Liabilities Largest unsecured item on the schedule of current assets

6 Our value-based approach to your business Our corporate culture and values are our basis. You are a customer of the market leader. PRISMA is a brand of Acredia Versicherung AG, Austria s leading credit insurance. We are part of Euler Hermes, a global group that leads the way in all of Austria s key export markets. And that means you enjoy security and stability. Leave it to a credit rating specialist. We have access to over 40 million pieces of up-to-the-minute financial information, and a sophisticated monitoring and early-warning system. We take all credit decisions on the basis of uniform global standards. PRISMA is also responsible for all of the countries of the former Yugoslavia, and our Vienna office coordinates the assessment of risk for the entire CEE region. We are a true partner that you can depend on. Fast, reliable and part of an international network, we make your risk our business and find the best solution to deal with it. Our stable set-up and secure processes mean that we can surpass our customers expectations, even in times of crisis. When you need urgent credit decisions or processing of compensation claims, we promise to keep our response times to a minimum. We call the tune in the credit insurance business and you feel the benefits. We lead the way in our market segment. We have made PRISMA what it is today, and we are used to rethinking our processes and putting them into practice. Our expertise in restructuring processes is also in high demand. We offer the most effective possible protection for your interests because we take the time to sit down with you and discuss difficult situations.

7 WHO DO WE HAVE BEHIND US? WHO? PRISMA Die Kreditversicherung is a brand of Acredia Versicherung AG. Oesterreichische Kontrollbank AG, Vienna Oesterreichische Kontrollbank (OeKB) is now firmly established as the leading financial and information services provider for Austrian exporters and the country s capital market. It has a 51 percent stake in Acredia Versicherung AG. Euler Hermes Aktiengesellschaft, Hamburg Part of the Allianz Group, Euler Hermes is the global market leader in credit insurance. It has a 36 percent share of the world market. The group has a presence in more than 50 countries. Euler Hermes Aktiengesellschaft owns the remaining 49 percent of Acredia Versicherung AG. This ownership structure gives PRISMA a sound footing in Austria s commercial landscape and provides a strong basis for accessing and contributing to one of the world s largest data pools. Information on buyers from all over the world is analysed and researched on site after all, credit is local. This forms the basis for credit decisions which PRISMA s experts make on behalf of their policy holders in Austria.

8 Steps to success Euler and Hermes merge to form the Euler Hermes Group Europe s new leading credit insurer. PRISMA is the Group s representative in Austria. Oesterreichische Kontrollbank acquires shares from the existing shareholders. Today s equity stake is 51 percent. Foundation of the Aktiengesellschaft owned by majority shareholders Creditanstalt Bankverein (now UniCredit) and Hermes Kreditversicherung Hamburg (now Euler Hermes Aktiengesellschaft) PRISMA emerges from the financial crisis as market leader. PRISMA moves to its current offices in Vienna s first district and positions itself as THE credit insurer. PRISMA assumes responsibility for creditworthiness checks for all Austrian companies for the entire Euler Hermes Group in line with the credit is local approach. Establishment of Acredia Versicherung AG PRISMA Die Kreditversicherung remains an independent brand. As partner of the Euler Hermes Group, PRISMA assumes responsibility for credit monitoring in the former Yugoslav republics.

9 Facts and figures for the PRISMA Die Kreditversicherung brand EUR maximum liability credit limits credit limit requests per year As at: , figures are approximate

10 Acredia Versicherung AG The company behind the Prisma Die Kreditversicherung brand. Member of the Board of Management Gudrun Meierschitz Ludwig Mertes Karolina Offterdinger Locations Headquarters: Vienna Sales offices: Graz, Innsbruck, Linz Subsidiary: Acredia Services GmbH and PRISMA Risk Services, Serbia Further information: Reinsurance Reinsurance provides an additional level of security, as a significant proportion of our company s risks are hedged by the reinsurance market. Reinsurance is carried out by Euler Hermes-group.

11 HOW? HOW? Wherever a business is on shaky ground, we re there to halt the domino effect. Wo immer auf dieser Welt ein Geschäft den Bach runter geht, stehen wir für Zahlungsausfälle gerade.

12 How does PRISMA work? No one likes losing money. But it happens all the time. Think about how much extra business you have to do to cover the cost of unpaid services. 100,000 default 5% profitability 2,000,000 additional revenue required We use our knowledge of the market to help you manage your receivables, and keep a close eye on your customers creditworthiness leaving you free to concentrate on your day-to-day operations. True to our motto of credit is local we have access to the latest risk information thanks to our membership of the Euler Hermes Group. Within the Group, PRISMA is responsible for the Austrian and Southeast European markets. Who needs insurance? Companies of all sizes no matter what industry they are in. What is covered? Receivables from commercial customers at home and abroad. What else does it extend to? In addition to non-payment we can also cover manufacturing risk, late payment and operating costs by arrangement.

13 Insurance options 1 Jan 10 Jan 15 Mar PRISMA customer (policy holder) accepts an order. Production starts in line with customer specifications. 28 Feb Customer goes bankrupt. Scenario 1: Manufacturing risk Customer goes bust, but manufacturing run is still in progress, product cannot be delivered, claim for manufacturing risk is made. PRISMA covers the costs incurred (no loss of profits). Production completed on schedule, product shipped and invoiced, payment within 45 days, i.e. due date is 30 April. Prisma pays 30 April 31 May Payment due Customer fails to pay. 13 May Customer goes bankrupt. Scenario 2: Insurance claim in line with general conditions of sale Customer goes bankrupt, PRISMA covers the non-payment (less excess). This is PRISMA s standard service. Three reminders have no effect. The policy holder commissions the service of a debt collection agency on 1 June and informs PRISMA. 30 Nov Prisma pays Customer is unwilling to pay, but not insolvent. Scenario 3: Delayed payment Payment still not received, delayed payment claim is made (six months after initiation of debt recovery measures). PRISMA covers the invoiced amount in full (less excess, no pro rata deduction) including operating costs if included in the policy. Prisma pays

14 Our products Do you manufacture or trade in consumer goods? Do you supply customers in Austria and/or abroad? Do you have a stable customer portfolio? Do you set short payment deadlines? Are you interested in ongoing risk assessment and monitoring? Then we have the right insurance policy for you tailored to your requirements. Wo Wherever immer a weltweit deal runs ein into Geschäft trouble, wackelt, stehen we re there wir für to cover Zahlungsausfälle any losses. gerade. If Wenn you deliver Sie liefern and und your das partner Geschäft takes kippt, a tumble, we re stehen there wir für to cover den Zahlungsausfall the non-payment. gerade. Die Kreditversicherung. Die Kreditversicherung. Custom products for large companies. Standardised solutions for smaller companies. Do you manufacture or trade in capital goods? Do you supply customers in Austria and/or abroad? Do you constantly supply new customers? Do you grant payment deadlines of up to five years? Do you want to insure specific orders? That s where Prisma Invest individual cover comes in its own. This product is subject to a positive, paid credit assessment. Wenn If a capital Ihr Anlagengeschäft goods order goes schief awry, geht, stehen we re there wir für to cushion Zahlungsausfälle the financial gerade. impact. Die Kreditversicherung. For project deals cover for capital goods.

15 PR1SMA.VETO Preferential payment insurance Instead of paying, has your customer assigned a receivable to you or given you a cheque that they themselves were provided by their customer? Have you threatened your customer with legal enforcement or an insolvency petition and did your customer pay you to avoid such measures? Has your customer made a payment after a cheque already bounced or a direct debit was returned? Is your answer yes to any of the following questions? If so, you are at risk of preferential payment claims. If your customer is bankrupt and insolvency administrators are claiming back payments already made, we can protect you from incurring losses. PR1SMA Die Kreditversicherung. Preferential payment insurance. PR1SMA.SELECT The straightforward credit insurance Have you entered a new business segment and are still unsure of the payment practices of your new customers? Have you secured an unusually high-value order and are wondering whether the risk is too great for your company? Have you received a new order from a country that you haven t supplied to before? Get cover online for your transactions quickly, easily and free from administrative hassle. Austria s first online credit insurance. Quick, easy and free from administrative hassle. PR1SMA Die Kreditversicherung. Register once and start straight away.

16 Additional services Prisma Rating adds transparency to the credit assessment process. It s a number that stands out you ll instantly see how creditworthy your customers are. The best possible credit rating is 1, indicating that the buyer is extremely unlikely to go bankrupt. 10 means that the company is insolvent. How can this benefit your company? You will receive an estimation for the next 12 months showing how likely it is that your customer will be unable to pay. You can weight, analyse and manage your customer portfolio on the basis of risk categories. The rating can support your sales planning. Changes in ratings give you a clear picture of whether a customer s creditworthiness is on the way up or down. Ratings are the ideal compliment to credit limits. If your customers are late with payments, we recommend that you make use of Acredia Services GmbH. ACREDIA performs debt collection for receivables, whether or not they are covered by credit insurance. For further information, please visit

17 When will you become a PRISMA customer? Your advantages at a glance Credit insurance can ensure your company s survival. You enjoy unrivalled protection for your receivables. You have access to high-quality, reliable credit monitoring with a built-in early warning system. You swap incalculable default risk for a scheduled premium payment. You benefit from insurance cover on all of your business in Austria and the world s most important export markets. Swift compensation keeps your cashflow healthy, providing stability for your business. PRISMA covers the payment if your customer fails to meet its obligations for a longer period. You maintain your overdraft limit by assigning your claims to damages. PRISMA provides expert support when it comes to selecting your customers. Our credit insurance puts your mind at rest as you look to break into new market.

18 My notes

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20 PRISMA is THE credit insurer in Austria We stand by our customers, keeping an eye on what the future holds. We assess companies, give a clear view of the risks and cover the shortfall in the event of non-payment. We set ourselves the highest quality standards. As a growing company we are always looking for ways to extend our market leadership in Austria. PRISMA is successful The contribution made by every single one of us drives our success. We are constantly developing, and the changes we make are supported by everyone. At PRISMA everyone accepts responsibility for their actions, and knows that they can count on their colleagues. We believe in the products we sell PRISMA Die Kreditversicherung a brand of Acredia Versicherung AG Himmelpfortgasse 29, 1010 Vienna, Austria, Tel +43 (0) , Fax Company reg. no.: FN i, registered at Vienna Commercial court VAT ID no.: ATU , data protection reg. no.: Vienna. Linz. Graz. Innsbruck