Konecranesin johtajan Matti Malmisen esitys Sitran järjestämässä Viennin, kasvun ja EU:n rahoituksen mahdollisuudet -tilaisuudessa 5.12.2013

1. Sitra / December 2013
Matti Malminen
matti.malminen@konecranes.com
© 2010 Konecranes Plc. All rights reserved.
Matti Malminen / Trade Finance

2. OUR COMPANY IN NUMBERS
ACTIVE IN ALMOST
12,100
EMPLOYEES
609
50
LOCATIONS WORLDWIDE
EQUIPMENT IS
61%
OF TOTAL SALES
COUNTRIES
MAINTENANCE CONTRACTS
1,73
MILLION ANNUAL
SERVICE CALLS
© 2011 Konecranes Plc. All rigths reserved.
SERVICE IS
COVERING MORE THAN
39%
418,000
OF TOTAL SALES
EQUIPMENT OF DIFFERENT
MAKES
5.12.2013
2
Corporate presentation 2013
€2,170
MILLION IN SALES
IN 2012

3. WORLD’S LARGEST GOLIATH CRANE
689 ft.
210 m
384 ft.
117 m
© 2010 Konecranes Plc. All rights reserved.
25.10.2012
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Trade & Export Finance / Matti Malminen / Konecranes

4. SHIPMENT ON
DECK NOT
ALLOWED!
TWO KONECRANES STS CRANES ON THEIR WAY FROM CHINA TO MOZAMBIQUE (12.2.2013)
© 2011 Konecranes Plc. All rigths reserved.

5. CONTAINER TRAFFIC
Annual container handling volume
Monthly container handling volume
Million teu
700
Change Y/Y
25 %
600
20 %
500
15 %
10 %
400
5%
300
0%
200
-5 %
100
-10 %
-15 %
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
-20 %
-25 %
SOURCES: Drewry Container Port Insight (latest data point July 2013)
© 2013 Konecranes Plc. All rights
reserved.
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6. TRADE FINANCE
WHAT IS IT AT Konecranes?
Trade & Export Finance – sounds fancy…
• How to make sure that Konecranes is paid by the foreign Buyer!
• Advance Payments, Letter of Credits (D/C or SBLC)
• Bank Guarantees (bonds)
• Payment time to Buyer without any extra risk to Konecranes
– ECA:s, EBRD, NIB, IFC, banks
• Finance company products (rental, leasing)
• Trade policies
© 2010 Konecranes Plc. All rights reserved.
Matti Malminen / Trade Finance

7. HOW TO COVER CREDIT RISK OF THE BUYER
Know Your Customer!
Credit Policy!
1. 100 % Advance Payment
2. Confirmed Documentary Credit / Locally issued Bank Guarantee/
3. Confirmed Standby Letter of Credit
4. Unconfirmed Documentary Credit / Buyer’s direct Bank Guarantee
5. Documentary Collection
6. Payment on open account terms
(non payment risk of the Buyer can be covered by Credit Insurance)
© 2010 Konecranes Plc. All rights reserved.
Matti Malminen / Trade Finance

8. Export Finance
Main principle
Risk of the Buyer has to be covered
by “third parties”!
1. Export Credit Agency (ECA)
•
Finnvera Plc in Finland, EKN in Sweden
2. Multilateral Finance Institution
•
•
•
NIB (Nordic Investment Bank)
EBRD (European Bank for Reconstruction &Development)
IFC, Asian Development Bank, BNDES, etc etc
3. Credit Insurance Company
4. Buyer’s Bank
•
Deferred Payment D/C, Bank Guarantee
© 2013 Konecranes Plc. All rights reserved.
Trade & Export Finance, Matti
Malminen
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9. FINANCING – RELATIONSHIP WITH BUYER
• Loan from international Bank with Export Credit Agency (ECA) support
– ”Seller’s role is to be part of the Buyer’s procurement team”
• Key questions in the first meeting
– Which banks in Europe knows the Buyer?
– Has the Buyer concluded ECA –cases in the past (Finnvera, Finland, EKN,
Sweden)?
– Are the financials available?
• Open and explain all finance charges (Buyer will pay all charges)
• Agent Bank (Lender) should
– have experience with the relevant ECA
– be easy to access by the seller and the buyer
– be ready to to meet the buyer at an early stage (also ECA:s visit is appreciated)
© 2013 Konecranes Plc. All rights reserved.
5 December 2013
9
Trade Finance / Matti Malminen

10. BUYER’S CREDIT
Credit
Agreement
BUYER
BANK
Repayment
Supply Contract
(Delivery)
© 2010 Konecranes Plc. All rights reserved.
Loan proceeds
Matti Malminen / Trade Finance
Export credit guarantee
Interest equalisation
Refinancing
Agency agreement

11. DEFERRED PAYMENT DOCUMENTARY CREDIT (D/C) 360
DAYS
BUYER
EXPORTER
1. CONTRACT
$150,- (CRANEVALUE $100+ INTEREST
$50)
5. SHIPMENT
2. D/C
APPLICATION
$ 150,-
6. Shipping documents
+ invoice $ 150,-
9. SHIPPING DOCUMENTS
DEBIT $ 150
3. D/C ISSUANCE
after 360 d
4. ADVISING
(Confirmation)
8. SHIPPING DOCUMENTS
ISSUING BANK
© 2010 Konecranes Plc. All rights reserved.
7. Payment of $150
(discounting)
./. interest for the
deferred payment
time apprx. $ 50
=> Net proceeds $100
ADVISING BANK /
CONFIRMING BANK
Matti Malminen / Trade Finance
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12. Trade Finance => Exotic countries!
© 2010 Konecranes Plc. All rights reserved.
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