2010 EXIM Bank Annual Report
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EXPORT-IMPORT BANK OF THE UNITED STATES 2010 ANNUAL REPORT tabLE of Contents Quote from President Barack Obama . .2 Mission . .3 Chairman’s Message . 4 Key Markets and Industries . 6 Small-Business Report . 8 Renewable-Energy Support . 12 Sub-Saharan Africa Initiative . 13 FY 2010 at a Glance . 14 Map of Supported U .S . Exports . 16 2010 Financial Report . 17 Directors and Officers . 70 2010 AnnuaL Report | 1 “Our exports support millions of American jobs . It’s critical in the short- term, but it’s also critical for our long-term prosperity . Ninety-five percent of the world’s customers and the world’s fastest- growing markets are outside of our borders . We need to compete for them because other nations are competing for them . During the financial crisis, as trade finance dried up, the Export-Import Bank lived up to its mission and stepped up to fill the void . And under the National Export Initiative, we’ll continue to increase the amount of trade financing Ex-Im offers .” President Barack Obama Export-Import Bank Annual Conference March 11, 2010 2 | Export-Import Bank of the UNITED States mission statement The Export-Import Bank of the United States (EX-IM Bank) is the official export-credit agency of the United States. Ex-Im Bank supports the financing of U.S. goods and services in international markets, turning export opportunities into sales that help U.S. companies of all sizes to create and sustain jobs in the United States. Ex-Im Bank – an independent, self-sustaining federal agency – assumes the credit and country risks that the private sector is unable or unwilling to accept. Ex-Im Bank helps U.S. exporters remain competitive by countering the export financing provided by foreign governments on behalf of foreign companies. More than 80 percent of Ex-Im Bank’s transactions in recent years have been made available for the direct benefit of U.S. small businesses. 2010 AnnuaL Report | 3 Chairman’S MessaGE President Obama set forth a bold challenge this year in his National Export Initiative: double U.S. exports to $3.14 trillion by 2015. This effort will support two million American jobs. Given that our nation is the largest manufacturer of goods and services in the world, this goal can be achieved. The Export-Import Bank of the United States is helping to meet that challenge by supporting American companies and jobs at levels greater than at any time in our 76-year history. As a self-sustaining agency, the Bank does this important work without cost to the American taxpayer. With the close of fiscal year 2010, the Bank reported a second consecutive record-breaking year of $24.5 billion in export financing, up 70 percent from FY 2008. These transactions supported $34.4 billion worth of American exports and an estimated 227,000 American jobs at more than 3,300 U.S. companies. Our total export-finance portfolio is now $75 billion. It truly was a record-setting year as the Bank once again stepped up to meet the unprecedented financial challenges facing our nation, and, as we begin fiscal year 2011, the Bank is expanding its efforts to ensure that American exporters have access to capital and that American companies understand the enormous opportunities available through export financing. Small and Medium-Sized Business To be in a position to provide the most effective assistance Of Ex-Im Bank’s fiscal year 2010 authorizations, more than $5 to American companies, the Bank undertook a rigorous billion was for small businesses – another record for the Bank. strategic review last summer. We identified ways to expand the awareness of Ex-Im services through increased outreach and In a time of financial uncertainty, we worked to ensure effective partnerships, and improve our turnaround time of our that small and mid-sized businesses – the foundation of our transactions. In addition, we developed four key programmatic economy – were at the forefront of our outreach efforts. goals to increase the overall volume of U.S. exports: These efforts paid off with more than 700 small businesses • Increase the number of small and medium-sized working with Ex-Im Bank for the first time. In addition, businesses using Ex-Im products approximately 85 percent of the Bank’s transactions were with • Support environmentally beneficial exports, with a American small businesses, and Ex-Im Bank has helped almost particular focus on renewable energy 2,000 small businesses expand their export sales in 2010. We • Target business development to countries with high also took concrete steps to improve turnaround time for clients potential for U.S. export growth and are working to build upon these efforts in the upcoming • Build expertise and tailored offerings in industries fiscal year. with high potential for U.S. export growth We understand the unique needs of small and mid-sized Through implementation of this plan, the Bank continues to businesses that are looking to export their products, and we are respond to the global financial crisis and is on track to do its part creating financial tools tailored to ensure that these companies to meet the President’s goal of doubling exports in five years. have the capital required to gain access to key export markets. 4 | Export-Import Bank of the UNITED States Renewable-Energy Transactions We have identified several other industries that can benefit from such a tailored or focused approach. These are medical For fiscal year 2010, Ex-Im Bank tripled its renewable energy technology, construction, agricultural and mining equipment, export financing to over $300 million, an all-time high, setting and power (both renewable and conventional). Such sectors a new record. support critical infrastructure needs around the world and address the demands of a growing middle class in developing markets. Going forward, demand for renewable-energy sources, such as wind and solar power, will grow exponentially, and we believe The Year Ahead that U.S. manufacturing can lead the way in these technologies around the globe. As the chairman of Export-Import Bank, I have the privilege of working with American business leaders and entrepreneurs New Products who are building innovative companies in the United States that export their products around the world. To better meet the needs of small businesses and renewable- energy companies, Ex-Im Bank rolled out several innovative They are selling wind turbines, solar cells, medical technology, new products in fiscal year 2010, including small-business farm equipment, aircrafts and automobiles. And in the process, export-credit reinsurance for private insurers; a supply-chain they are creating good American jobs and strong communities finance product that is providing competitively priced working in areas that have been the hardest hit by the recession. capital finance to suppliers of U.S. exporters, particularly They are small and mid-sized business owners and large for small and medium-sized enterprises; and Solar Express, a corporations. product that is streamlining financing for U.S. exports to small solar-energy projects. Our central objective at Ex-Im Bank is to ensure that when these American companies sell their products in the global Countries with High Potential marketplace they have the financial products, resources and for U .S . Export Growth relationships they need to compete and succeed. As these successful Ex-Im transactions add up, more American products As part of this strategic review, the Bank completed a thorough are being sold in more key markets abroad, creating more profits and analysis of countries and industries with high potential for more good jobs here at home at no cost to the American taxpayer. U.S. export growth. These countries include Mexico, Brazil, Colombia, Turkey, India, Indonesia, Vietnam, Nigeria, and In a difficult economic climate, increasing exports and access South Africa. They were selected because of their growing to foreign markets is a proven tool for growing our economy GDP, their appetite for infrastructure investment and because and creating durable jobs. The United States is well-positioned they are places where innovative financing can make a real to capitalize on the types of products that infrastructure- difference for U.S. companies. hungry markets are demanding. Industries with High Potential The world wants what America makes. for U .S . Export Growth That is why I am bullish on the future of U.S. business and Ex-Im Bank has built a particular depth of expertise in why I am encouraged by the vital role a growing U.S. export transportation financing, particularly in aircraft financing, market will play in rebuilding our economy in fiscal year 2011. allowing us to serve that sector’s needs in innovative ways. We have a thorough understanding of the industry, both Sincerely, the manufacturers and buyers, and have structured many asset-based lending transactions. That knowledge has been invaluable in boosting U.S. aerospace and rail exports to markets in Africa, South America and Asia that previously had been viewed as too risky. Fred P. Hochberg Chairman and President 2010 AnnuaL Report | 5 keY markets and industries Ex-Im Bank is open for business in approximately 175 The Bank has developed outreach plans for each country countries. However, the Bank has identified nine emerging that include targeted private-sector and public-sector buyers, markets as the primary focus of its outreach: Brazil, Colombia, financial institutions and government agencies. India, Indonesia, Mexico, Nigeria, South Africa, Turkey and Vietnam. Industries with high potential for U.S. export growth in these nine key markets are medical technology, construction, These countries were selected using a number of factors, agricultural and mining equipment, and power generation, including the size of the export markets for U.S.