SIBS International, Inc Josh Demarr and Noelle Cole March 22, 2017
Who we are A global credit insurer is dedicated to helping our customers do business safely wherever they choose to trade. Our aim is to support our customers' growth by strengthening their credit and cash management. We do this through a wide range of products and services, each designed to meet our customers business needs, their trade sectors and the markets in which they trade in. 2
Introduction to Atradius A specialist credit insurer 2nd largest credit insurer in the world One IT platform worldwide 90 years experience in the credit insurance industry Revenue 2015 EUR 1.7 billion Result 2014 EUR 178.2 million Moody s credit rating A3 (outlook stable) A.M. Best credit rating A (outlook stable) Access to credit information on 200 million companies worldwide 3,300 dedicated employees worldwide A presence in more than 51 countries 3
Atradius profile - we are where you are 50 countries 160 offices 3,300 staff 200 million companies 1 worldwide database 4
We are where you are Europe Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Luxembourg, Liechtenstein, Lithuania, The Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovenia, Slovakia, Spain, Sweden, Switzerland, Turkey, United Kingdom Americas Argentina, Brazil, Canada, Colombia, Chile, Mexico, Peru, USA Africa South Africa Asia - China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, Taiwan, Thailand, Vietnam Middle East - Israel, Lebanon, Saudi Arabia, United Arab Emirates Oceania - Australia, New Zealand 5
Our financial strength It s vital that we remain financially strong enough to meet every possible challenge. We ensure that we are financially stable, despite the often challenging economic environment. This is evident from our ratings: Credit ratings A.M. Best A excellent outlook stable Moody s A3 outlook stable To ensure that our accessible capital is more than enough to meet our obligations, our excess solvency capital exceeds the required levels: by EUR 786,3 million at year end 2015. 6
Our shareholders and ownership Grupo Catalana Occidente is our main shareholder Atradius N.V. is owned by Grupo Compañía Española de Crédito y Caución, S.L. (CyC) and Grupo Catalana Occidente, S.A. (GCO). Grupo CyC is a holding company, 73.8% owned by GCO. GCO is listed on the Barcelona and Madrid stock exchanges and is the parent company of a group of insurance companies. It has an 83.2% stake in Atradius N.V. of which 35.8% is direct and 47.4% is indirect through Grupo CyC holding company. 7
Strong shareholder base INOC, S.A. operates as a holding company. The company was founded in 1957 and is based in Barcelona, Spain. INOC, S.A. 56,7% CCS Consorcio de Compensación de Seguros CCS GES NAC ESP Grupo Catalana Occidente, S.A. GES Ges Seguros y Reaseguros NAC Nacional de Reaseguros ESP ESPAÑA, S.A., Compañía Nacional de Seguros 9,9% 3,5% 7,8% 5,0% 73,8% Grupo Compañia Española Crédito y Caución, S.L. 64,2% 35,8% Atradius N.V. 8
Reinsurance panel Atradius reinsurance panel consists of a well-diversified group of well-rated reinsurers. They offer substantial reinsurance capacity and the ability to spread our risks broadly. Atradius endorses the importance of sound corporate governance. Key elements of independence, accountability and transparency, create a relationship of trust between Atradius and all of its stakeholders such as employees, customers, suppliers, shareholders and the general public. 9
Understanding your Requirements 1. Price Establish harmonised premium rates and policy conditions reflecting your group s purchasing power: Offering cost savings to existing insured business s in Japan Encouraging participation of currently uninsured companies in a group programme Ensuring an attractive policy structure and wording that works for your company worldwide 2. Cover Maximum coverage to meet your current needs and support future growth objectives: Maximising your group leverage to deliver highest levels of limit coverage Supporting your risk management locally as well as centrally. 3. Service A simple and easily managed credit insurance solution: Including strong local Account Management support your business. With an insurer who can promote and implement the credit insurance programme on a global scale. 4. Management Information A detailed online MI available to your HQ on programme performance: Including details on cover, aggregations, evolving risks, claims and overdues 10
Matching Your Ambitions What You can expect from Atradius 1. Maximum Coverage meeting Your current needs and supporting future growth objectives: Including rapid and clear decision making With empowered Underwriters who communicate clearly With a clear and rapid escalation model if required 2. Highest quality service with Risk and Policy experts at Your disposal: Strong, centralised and empowered risk/policy management Direct access to decision makers, both within and overseas Including a simplified claims reporting process 3. Management Information detailed online MI to monitor risk and programme performance: Including details on cover, aggregations, evolving risks, claims and overdues Adding value to Your credit management process 4. Flexible Policy - that works for the evolving landscape of Your company: Including easy integration of newly migrated entities With a premium calculation that is flexible for the extraction of longs (if divested) And policy conditions reflecting Your group s purchasing power 11
Risk Management Two distinct underwriting teams having access to the same data Local Buyer Underwriting Set underwriting strategies on all buyers/groups Split on a country/trade sector basis, so that individual risks are assessed with appropriate sector/market knowledge Key Account Underwriting Review all partial and zero decisions to ensure the customer s background / credit control procedures / all relevant financials, have been considered Empowered to amend decisions 12
Risk Management We underwrite to the maximum level of cover we feel appropriate, on an individual Buyer / Group, having fully analyzed the risk. Tools: Buyer visits / telephone conference calls Customer background information / trading experience Internal intelligence Atradius Buyer Ratings Management accounts / forecasts Audited accounts Companies House / international equivalents Ratings agencies: S&P, Moody s, KMV Agency reports Graydon, D&B, ICP etc. 13
Assessment of the Five Elements of Risk Country Economic/political stability, reliability of information, trade sectors, previous claims experience in the market, regular country reviews by Atradius economists Trade sector Previous claims experience, visits to customers/buyers, trade associations, sector trends, regular sector reviews by Atradius economists Terms of Payment Policy terms, normal country & sector terms, use of securities - e.g. guarantees, Letters of Credit, Retention of Title Customer Credit control, information systems, relationship with buyer, payment experience, claims history - loss ratio, spread of risk Buyer Type of business, legal form, financial information, length established/reputation, previous payment experience, group associations/common directorships. 14
Credit limit decision process YES Local Buyer Underwriter Key Account Underwriter CUSTOMER Automatic Underwriting Key Account Underwriter has a linking role: Close cooperation with you and understanding of your internal processes Maximize credit limit decisions Provides clarity on credit limit decisions 15
Key Account Underwriting Buyer KAU has a linking role Monitors risk appetite, speed of service Close cooperation with customer and Key Account Underwriter knowledge of customers internal processes Optimize credit limit decisions Customer Risk assessment 16
Credit limit decision process Key Account Underwriting Buyer Underwriting Automatic Underwriting Customer submits credit request 17
Risk Management Risk Services Organization Business Unit Risk Services Customer Account Management Account Management Key Account Underwriting Buyer Underwriting Special Risk Management Account Management: Customer Service Policy related issues (contract, premium) Customer information Key Account Underwriting: Customer and buyer related decisions Limit review meetings close to customer Buyer Underwriting: Single Ownership principal Underwriting strategies Trade sector analysis Buyer visits Special Risk Management: Securities/Pooling Restructuring/Re-financing Buyer visits Recovery close to buyer 18
Risk Management Benefit from the inside track Your Key Account Underwriter will gain an intricate understanding of your organisation. This understanding is applied to our approach with your buyers, ensuring optimal coverage. Special Risk Management (SRM) applies another level of risk analysis, for the most delicate of risks. We ll work with you to maintain cover wherever possible. 19
Information used for our risk assessment 3rd Party Credit Reports Credit agencies, Banks, Co-operation partners, Rating KMV, Moody's, S&P, Chambers of Commerce, Media, Fairs, Associations. Customer information From policy holder. Notification of non payment, payment experience reports. Buyer information Buyer information Accounts, management accounts, analyst reports, liquidity status. Internal information Delay in premium payment, debt collection, Portfolio analysis. 20
Seeing more with Atradius Insights It s the best tool available in the industry Frederic Wittemans, Senior Director European Credit, Ingram Micro It shows you what the risks are and at the same time also what the opportunities are Javier Gimeo, Credit Manager Philips 21
Atradius Collections Atradius Collections is a leading, worldwide provider of trade debt collections services. With extensive knowledge of local jurisdictions Atradius Collections are able to use the resources and worldwide reputation to help customers collect outstanding debts, maintain good buyer relations and avoid any unnecessary legal recovery costs. What Atradius Collections have to offer: Leveraging the strength of the credit insurance market Local knowledge, language and presence close to the buyer Local knowledge and presence in the markets Over 90% of our current customers say they feel we retain the relationship with their debtors for the future Contribution to costs for insured debts Online access to case activity 24/7, giving control and visibility 22
What our customers say Atradius Global are for many years our global partner in credit insurance. We have a good relationship on multiple levels and appreciate the transparency, leadership and expertise in the market. Javier Gimeno, Philips -- We are totally aligned with Atradius in the countries where we work with them. They understand our business and we really trust their opinions (which we share almost all the time). Frederic Wittemans - Ingram Micro -- Our Account Managers have made our experiences of Atradius excellent ones. We have also had calls with Special Risk Underwriters and Management when necessary. Risk appetite is also very good to date. Sarah Jenion, Penguin Random House 23