Financing the Belgian economy and the alternatives · • ING actively supports the Belgian...
38
Financing the Belgian economy and the alternatives Philippe Masset, Head of Commercial Banking Sébastien D’Hondt, Head of Corporate Clients Erik Van Den Eynden, Head of Midcorporate & Institutional Clients Brussels – 30 April 2013
Transcript of Financing the Belgian economy and the alternatives · • ING actively supports the Belgian...
Financing the Belgian economy and the alternativesPhilippe Masset Head of Commercial Banking Seacutebastien DrsquoHondt Head of Corporate Clients Erik Van Den Eynden Head of Midcorporate amp Institutional Clients
Brussels ndash 30 April 2013
2
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
3
ldquoCompanies are the backbone of our economy Astrusted and innovating advisor we help to realise thestrategic ambitions of our business clients We havealways been still are and will stay open for business
in the futurerdquo
Philippe Masset Head of CommercialBanking ING Belgium
4
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
5
ING BE strong contribution to the Belgian economy
ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Retail Banking +6 (mainly driven by mortgages evolution in both Belgium and Record)bull Midcorps amp Institutionals +10 (thanks to high penetration in the SME sector and successful challenger in the institutional)bull Corporate Clients (Commercial Banking) +1 stable year on year
chge chge+6 +6
+2+1
+9
+10
+6+6
Total Lending - per segment
392 414
204224
9798
692736
-
20
40
60
80
FY2011 FY 2012
Retail MidCorp Commercial Banking Belux
Eur b
n
Total Lending - per type
289 306
282 306
122124
692736
-
20
40
60
80
FY2011 FY 2012
Residential Mortgages Other Lending Investment credits
Eur b
n
6
Total credit has increased since the start of the crisishellip
bull Credit development to non-financial companiesin Belgium and in the Eurozonesince the beginning of the crisis (Jan 2008 = 100)
bull ING Belgium had a stable position during the crisis
Source ECB NBB INGConsolidated balance sheet of credit institutions total of credit granted to non-financial corporations- Belgium httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000013|910000082ampLang=E- Euro Area httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000023|910000082ampLang=E
95
100
105
110
115
120
08 09 10 11 12 13
Belgium
Eurozone
7
hellipand the financing cost remains very low in Belgium
Financing cost for credit to companies is almost the lowest in Belgium within the Eurozone
Source ECB MIR surveyFor more details see httpwwwnbbbedocDQMIRenpresentationMIR_mirhtm Here the interest rate on loans up to 1 Mln euro with rate fixed for a period up to 1 year is taken
BelgiumFranceGermanyNetherlands
Spain
Italy
2
25
3
35
4
45
5
55
6
65
7
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Accommodative Accommodative monetarymonetary policypolicy
8
A slowdown of credit demand was also observed in 2012
The slowdown of total credit to companies in 2012 was more than likely influenced by a decrease of total demand for credit The very last results seem to show that the credit demand doesnrsquot deteriorate further (but there is no recovery neither)
Source NBB Bank Lending SurveyFor more details see httpwwwnbbbedocDQBLSendataBLS_loanshtm
9
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
10
Midcorporate amp Institutional Clients
bull For medium-sized companies with a turnover between EUR 4 million and EUR 250 million and institutional clients
bull gt 40000 Clients
bull Network of four regions divided into 16 local business centers and 5 business desks all of which with geographical mapping with the retail segment
bull gt 200commercial people in one-to-one approach with the client
bull Proximity + sector knowledge (agrofood institutional real estate and family business)
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
2
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
3
ldquoCompanies are the backbone of our economy Astrusted and innovating advisor we help to realise thestrategic ambitions of our business clients We havealways been still are and will stay open for business
in the futurerdquo
Philippe Masset Head of CommercialBanking ING Belgium
4
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
5
ING BE strong contribution to the Belgian economy
ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Retail Banking +6 (mainly driven by mortgages evolution in both Belgium and Record)bull Midcorps amp Institutionals +10 (thanks to high penetration in the SME sector and successful challenger in the institutional)bull Corporate Clients (Commercial Banking) +1 stable year on year
chge chge+6 +6
+2+1
+9
+10
+6+6
Total Lending - per segment
392 414
204224
9798
692736
-
20
40
60
80
FY2011 FY 2012
Retail MidCorp Commercial Banking Belux
Eur b
n
Total Lending - per type
289 306
282 306
122124
692736
-
20
40
60
80
FY2011 FY 2012
Residential Mortgages Other Lending Investment credits
Eur b
n
6
Total credit has increased since the start of the crisishellip
bull Credit development to non-financial companiesin Belgium and in the Eurozonesince the beginning of the crisis (Jan 2008 = 100)
bull ING Belgium had a stable position during the crisis
Source ECB NBB INGConsolidated balance sheet of credit institutions total of credit granted to non-financial corporations- Belgium httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000013|910000082ampLang=E- Euro Area httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000023|910000082ampLang=E
95
100
105
110
115
120
08 09 10 11 12 13
Belgium
Eurozone
7
hellipand the financing cost remains very low in Belgium
Financing cost for credit to companies is almost the lowest in Belgium within the Eurozone
Source ECB MIR surveyFor more details see httpwwwnbbbedocDQMIRenpresentationMIR_mirhtm Here the interest rate on loans up to 1 Mln euro with rate fixed for a period up to 1 year is taken
BelgiumFranceGermanyNetherlands
Spain
Italy
2
25
3
35
4
45
5
55
6
65
7
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Accommodative Accommodative monetarymonetary policypolicy
8
A slowdown of credit demand was also observed in 2012
The slowdown of total credit to companies in 2012 was more than likely influenced by a decrease of total demand for credit The very last results seem to show that the credit demand doesnrsquot deteriorate further (but there is no recovery neither)
Source NBB Bank Lending SurveyFor more details see httpwwwnbbbedocDQBLSendataBLS_loanshtm
9
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
10
Midcorporate amp Institutional Clients
bull For medium-sized companies with a turnover between EUR 4 million and EUR 250 million and institutional clients
bull gt 40000 Clients
bull Network of four regions divided into 16 local business centers and 5 business desks all of which with geographical mapping with the retail segment
bull gt 200commercial people in one-to-one approach with the client
bull Proximity + sector knowledge (agrofood institutional real estate and family business)
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
3
ldquoCompanies are the backbone of our economy Astrusted and innovating advisor we help to realise thestrategic ambitions of our business clients We havealways been still are and will stay open for business
in the futurerdquo
Philippe Masset Head of CommercialBanking ING Belgium
4
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
5
ING BE strong contribution to the Belgian economy
ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Retail Banking +6 (mainly driven by mortgages evolution in both Belgium and Record)bull Midcorps amp Institutionals +10 (thanks to high penetration in the SME sector and successful challenger in the institutional)bull Corporate Clients (Commercial Banking) +1 stable year on year
chge chge+6 +6
+2+1
+9
+10
+6+6
Total Lending - per segment
392 414
204224
9798
692736
-
20
40
60
80
FY2011 FY 2012
Retail MidCorp Commercial Banking Belux
Eur b
n
Total Lending - per type
289 306
282 306
122124
692736
-
20
40
60
80
FY2011 FY 2012
Residential Mortgages Other Lending Investment credits
Eur b
n
6
Total credit has increased since the start of the crisishellip
bull Credit development to non-financial companiesin Belgium and in the Eurozonesince the beginning of the crisis (Jan 2008 = 100)
bull ING Belgium had a stable position during the crisis
Source ECB NBB INGConsolidated balance sheet of credit institutions total of credit granted to non-financial corporations- Belgium httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000013|910000082ampLang=E- Euro Area httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000023|910000082ampLang=E
95
100
105
110
115
120
08 09 10 11 12 13
Belgium
Eurozone
7
hellipand the financing cost remains very low in Belgium
Financing cost for credit to companies is almost the lowest in Belgium within the Eurozone
Source ECB MIR surveyFor more details see httpwwwnbbbedocDQMIRenpresentationMIR_mirhtm Here the interest rate on loans up to 1 Mln euro with rate fixed for a period up to 1 year is taken
BelgiumFranceGermanyNetherlands
Spain
Italy
2
25
3
35
4
45
5
55
6
65
7
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Accommodative Accommodative monetarymonetary policypolicy
8
A slowdown of credit demand was also observed in 2012
The slowdown of total credit to companies in 2012 was more than likely influenced by a decrease of total demand for credit The very last results seem to show that the credit demand doesnrsquot deteriorate further (but there is no recovery neither)
Source NBB Bank Lending SurveyFor more details see httpwwwnbbbedocDQBLSendataBLS_loanshtm
9
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
10
Midcorporate amp Institutional Clients
bull For medium-sized companies with a turnover between EUR 4 million and EUR 250 million and institutional clients
bull gt 40000 Clients
bull Network of four regions divided into 16 local business centers and 5 business desks all of which with geographical mapping with the retail segment
bull gt 200commercial people in one-to-one approach with the client
bull Proximity + sector knowledge (agrofood institutional real estate and family business)
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
4
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
5
ING BE strong contribution to the Belgian economy
ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Retail Banking +6 (mainly driven by mortgages evolution in both Belgium and Record)bull Midcorps amp Institutionals +10 (thanks to high penetration in the SME sector and successful challenger in the institutional)bull Corporate Clients (Commercial Banking) +1 stable year on year
chge chge+6 +6
+2+1
+9
+10
+6+6
Total Lending - per segment
392 414
204224
9798
692736
-
20
40
60
80
FY2011 FY 2012
Retail MidCorp Commercial Banking Belux
Eur b
n
Total Lending - per type
289 306
282 306
122124
692736
-
20
40
60
80
FY2011 FY 2012
Residential Mortgages Other Lending Investment credits
Eur b
n
6
Total credit has increased since the start of the crisishellip
bull Credit development to non-financial companiesin Belgium and in the Eurozonesince the beginning of the crisis (Jan 2008 = 100)
bull ING Belgium had a stable position during the crisis
Source ECB NBB INGConsolidated balance sheet of credit institutions total of credit granted to non-financial corporations- Belgium httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000013|910000082ampLang=E- Euro Area httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000023|910000082ampLang=E
95
100
105
110
115
120
08 09 10 11 12 13
Belgium
Eurozone
7
hellipand the financing cost remains very low in Belgium
Financing cost for credit to companies is almost the lowest in Belgium within the Eurozone
Source ECB MIR surveyFor more details see httpwwwnbbbedocDQMIRenpresentationMIR_mirhtm Here the interest rate on loans up to 1 Mln euro with rate fixed for a period up to 1 year is taken
BelgiumFranceGermanyNetherlands
Spain
Italy
2
25
3
35
4
45
5
55
6
65
7
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Accommodative Accommodative monetarymonetary policypolicy
8
A slowdown of credit demand was also observed in 2012
The slowdown of total credit to companies in 2012 was more than likely influenced by a decrease of total demand for credit The very last results seem to show that the credit demand doesnrsquot deteriorate further (but there is no recovery neither)
Source NBB Bank Lending SurveyFor more details see httpwwwnbbbedocDQBLSendataBLS_loanshtm
9
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
10
Midcorporate amp Institutional Clients
bull For medium-sized companies with a turnover between EUR 4 million and EUR 250 million and institutional clients
bull gt 40000 Clients
bull Network of four regions divided into 16 local business centers and 5 business desks all of which with geographical mapping with the retail segment
bull gt 200commercial people in one-to-one approach with the client
bull Proximity + sector knowledge (agrofood institutional real estate and family business)
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
5
ING BE strong contribution to the Belgian economy
ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Retail Banking +6 (mainly driven by mortgages evolution in both Belgium and Record)bull Midcorps amp Institutionals +10 (thanks to high penetration in the SME sector and successful challenger in the institutional)bull Corporate Clients (Commercial Banking) +1 stable year on year
chge chge+6 +6
+2+1
+9
+10
+6+6
Total Lending - per segment
392 414
204224
9798
692736
-
20
40
60
80
FY2011 FY 2012
Retail MidCorp Commercial Banking Belux
Eur b
n
Total Lending - per type
289 306
282 306
122124
692736
-
20
40
60
80
FY2011 FY 2012
Residential Mortgages Other Lending Investment credits
Eur b
n
6
Total credit has increased since the start of the crisishellip
bull Credit development to non-financial companiesin Belgium and in the Eurozonesince the beginning of the crisis (Jan 2008 = 100)
bull ING Belgium had a stable position during the crisis
Source ECB NBB INGConsolidated balance sheet of credit institutions total of credit granted to non-financial corporations- Belgium httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000013|910000082ampLang=E- Euro Area httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000023|910000082ampLang=E
95
100
105
110
115
120
08 09 10 11 12 13
Belgium
Eurozone
7
hellipand the financing cost remains very low in Belgium
Financing cost for credit to companies is almost the lowest in Belgium within the Eurozone
Source ECB MIR surveyFor more details see httpwwwnbbbedocDQMIRenpresentationMIR_mirhtm Here the interest rate on loans up to 1 Mln euro with rate fixed for a period up to 1 year is taken
BelgiumFranceGermanyNetherlands
Spain
Italy
2
25
3
35
4
45
5
55
6
65
7
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Accommodative Accommodative monetarymonetary policypolicy
8
A slowdown of credit demand was also observed in 2012
The slowdown of total credit to companies in 2012 was more than likely influenced by a decrease of total demand for credit The very last results seem to show that the credit demand doesnrsquot deteriorate further (but there is no recovery neither)
Source NBB Bank Lending SurveyFor more details see httpwwwnbbbedocDQBLSendataBLS_loanshtm
9
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
10
Midcorporate amp Institutional Clients
bull For medium-sized companies with a turnover between EUR 4 million and EUR 250 million and institutional clients
bull gt 40000 Clients
bull Network of four regions divided into 16 local business centers and 5 business desks all of which with geographical mapping with the retail segment
bull gt 200commercial people in one-to-one approach with the client
bull Proximity + sector knowledge (agrofood institutional real estate and family business)
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
6
Total credit has increased since the start of the crisishellip
bull Credit development to non-financial companiesin Belgium and in the Eurozonesince the beginning of the crisis (Jan 2008 = 100)
bull ING Belgium had a stable position during the crisis
Source ECB NBB INGConsolidated balance sheet of credit institutions total of credit granted to non-financial corporations- Belgium httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000013|910000082ampLang=E- Euro Area httpwwwnbbbebelgostatPublicatieSelectieLinkerLinkID=248000023|910000082ampLang=E
95
100
105
110
115
120
08 09 10 11 12 13
Belgium
Eurozone
7
hellipand the financing cost remains very low in Belgium
Financing cost for credit to companies is almost the lowest in Belgium within the Eurozone
Source ECB MIR surveyFor more details see httpwwwnbbbedocDQMIRenpresentationMIR_mirhtm Here the interest rate on loans up to 1 Mln euro with rate fixed for a period up to 1 year is taken
BelgiumFranceGermanyNetherlands
Spain
Italy
2
25
3
35
4
45
5
55
6
65
7
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Accommodative Accommodative monetarymonetary policypolicy
8
A slowdown of credit demand was also observed in 2012
The slowdown of total credit to companies in 2012 was more than likely influenced by a decrease of total demand for credit The very last results seem to show that the credit demand doesnrsquot deteriorate further (but there is no recovery neither)
Source NBB Bank Lending SurveyFor more details see httpwwwnbbbedocDQBLSendataBLS_loanshtm
9
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
10
Midcorporate amp Institutional Clients
bull For medium-sized companies with a turnover between EUR 4 million and EUR 250 million and institutional clients
bull gt 40000 Clients
bull Network of four regions divided into 16 local business centers and 5 business desks all of which with geographical mapping with the retail segment
bull gt 200commercial people in one-to-one approach with the client
bull Proximity + sector knowledge (agrofood institutional real estate and family business)
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
7
hellipand the financing cost remains very low in Belgium
Financing cost for credit to companies is almost the lowest in Belgium within the Eurozone
Source ECB MIR surveyFor more details see httpwwwnbbbedocDQMIRenpresentationMIR_mirhtm Here the interest rate on loans up to 1 Mln euro with rate fixed for a period up to 1 year is taken
BelgiumFranceGermanyNetherlands
Spain
Italy
2
25
3
35
4
45
5
55
6
65
7
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Accommodative Accommodative monetarymonetary policypolicy
8
A slowdown of credit demand was also observed in 2012
The slowdown of total credit to companies in 2012 was more than likely influenced by a decrease of total demand for credit The very last results seem to show that the credit demand doesnrsquot deteriorate further (but there is no recovery neither)
Source NBB Bank Lending SurveyFor more details see httpwwwnbbbedocDQBLSendataBLS_loanshtm
9
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
10
Midcorporate amp Institutional Clients
bull For medium-sized companies with a turnover between EUR 4 million and EUR 250 million and institutional clients
bull gt 40000 Clients
bull Network of four regions divided into 16 local business centers and 5 business desks all of which with geographical mapping with the retail segment
bull gt 200commercial people in one-to-one approach with the client
bull Proximity + sector knowledge (agrofood institutional real estate and family business)
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
8
A slowdown of credit demand was also observed in 2012
The slowdown of total credit to companies in 2012 was more than likely influenced by a decrease of total demand for credit The very last results seem to show that the credit demand doesnrsquot deteriorate further (but there is no recovery neither)
Source NBB Bank Lending SurveyFor more details see httpwwwnbbbedocDQBLSendataBLS_loanshtm
9
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
10
Midcorporate amp Institutional Clients
bull For medium-sized companies with a turnover between EUR 4 million and EUR 250 million and institutional clients
bull gt 40000 Clients
bull Network of four regions divided into 16 local business centers and 5 business desks all of which with geographical mapping with the retail segment
bull gt 200commercial people in one-to-one approach with the client
bull Proximity + sector knowledge (agrofood institutional real estate and family business)
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
9
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
10
Midcorporate amp Institutional Clients
bull For medium-sized companies with a turnover between EUR 4 million and EUR 250 million and institutional clients
bull gt 40000 Clients
bull Network of four regions divided into 16 local business centers and 5 business desks all of which with geographical mapping with the retail segment
bull gt 200commercial people in one-to-one approach with the client
bull Proximity + sector knowledge (agrofood institutional real estate and family business)
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
10
Midcorporate amp Institutional Clients
bull For medium-sized companies with a turnover between EUR 4 million and EUR 250 million and institutional clients
bull gt 40000 Clients
bull Network of four regions divided into 16 local business centers and 5 business desks all of which with geographical mapping with the retail segment
bull gt 200commercial people in one-to-one approach with the client
bull Proximity + sector knowledge (agrofood institutional real estate and family business)
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
11
Corporate Clients
bull For listed companies and companies with a turnover gt EUR 250 millionbull gt 1 000 Corporate Clients bull Sector approach 8 Teams
bull Fast Moving Consumer Goodsbull Technology Media amp Telecombull Natural Resourcesbull Chemical Health amp Pharmaceuticalsbull Utilities Transport amp Logisticsbull Services amp Non Bank Financial institutionsbull Builders amp Contractors + Real Estatebull General Industries
bull Close to the clientbullRelationship management (knowledge and anticipation of clientsrsquo needs)bullAccount management (for Belgian and abroad)
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
12
International presence of ING
Moscow
MumbaiBangalore
Hong Kong
Shanghai
Lisbon Madrid
DublinKiev
Istanbul
Milan
LondonAmsterdam
Paris
FrankfurtBrussels
LuxembourgVienna Budapest
Bratislava
Geneva Bucharest
Prague
Sofia
Warsaw
Buenos Aires
Sao Paulo
Mexico City
New York
AtlantaDallas
Houston
Los Angeles Beijing
Jakarta
Tokyo
Almaty
Kuala LumpurLabuan
Ulan Bator
Manila
Singapore
Seoul
Taipei
Bangkok
DubaiHanoi
St Petersburg
Ankara
Izmir
Sydney
Bahrain
Zurich
St Petersburg
Moscow
Disclaimer ING Bank does not have a commercial banking license in the US and therefore is not permitted to conduct commercial banking business in the US Through its wholly owned subsidiary ING Financial Holdings Corporation and its affiliates it offers a full array of wholesale products such as commercial lending corporate finance and a full range of FM products and services
KatowiceBrno
Pune
DelhiKolkata
ChennaiHyderabad
17072012
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
13
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
14
Loans
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
15
Loans
Acquisition Campaign 48hbull Scope self-employed professionals legal professions and local enterprises with an turnover up to 4000000euro
bull Timing 6 weeks (25th February 2013 till 7th April 2013)
bull Pro-active communication to clients amp prospects to promote our credit offering gt 100000 letterse-mails
bull Credits granted during the campaign Total of almost 250000000euro in 6 weeks
Business Credit Centerbull Start 2008
bull aim credit demand via phone
bull 75 credit demand treated within 24h
bull 14 immediate respons
bull Loans in general represents gt 90 of the SME credit demands
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
16
Bond Market
Different financing opportunities
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
17
Corporate Issuer
Belgium 0412
Omega Pharma NVEUR 180m4500 Fixed Rate Notes due May 2017
EUR 120m5000 Fixed Rate Notes due May 2019
Joint bookrunnerCorporate Issuer
Belgium 0612
CompagniedrsquoEntreprises CFE SA EUR 100m4750 Fixed Rate Notes due 2018
Joint Bookrunner
Corporate Issuer
Belgium 0511
NyrstarEUR 525m5375 Fixed Rate Notes due May 2016
BookrunnerCorporate Issuer
Belgium 0411
Befimmo SAEUR 162m4500 Fixed Rate Notes due April 2017
Bookrunner
Corporate Issuer
Belgium 0212
Kinepolis Group NVEUR 75m4750 Retail Bond due March 2019
Joint BookrunnerCorporate Issuer
Belgium 0612
Arseus NVEUR 225m4750 Fixed Rate Notes (retail bond)due July 2017
Joint bookrunner
Corporate Issuer
Belgium 0309
Bekaert NV SAEUR 150m5750 Senior Bonds due 2012
EUR 150m6750 Senior Bonds due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
UCB NVSAEUR 750m5750 Fixed Rate Notes due 2014
Joint BookrunnerCorporate Issuer
Belgium 1009
Cofinimmo NVSA EUR 100m5000 Fixed Rate Notes due 2014
Joint Bookrunner
Corporate Issuer
Belgium 0310
Nyrstar NV EUR 225m5500 Fixed Rate Notes due 2015
Joint BookrunnerCorporate Issuer
Belgium 0610
Groupe Bruxelles Lambert EUR 350m4000 Fixed Rate Notes due 2017
Joint BookrunnerCorporate Issuer
Belgium 1111
Bekaert NVEUR 400mEUR 205m - 4125 Fixed Rate Notes due December 2016
EUR 195m ndash 5000 Fixed Rate Notes due December 2019
Co-Lead Manager
Corporate Issuer
France 0209
GDF SuezEUR 750m5000 Retail Targeted Senior Bonds due 2015
Joint BookrunnerCorporate Issuer
Belgium 0509
Solvay EUR 500m5000 Senior Bonds due 2015
Joint Bookrunner
bull ING DCM has been involved multiple times as bookrunner and coordinator in the retail bond transactions from Belgian corporates
bull With a strong footprint in the Belgian retail and private banking market ING has been instrumental in the success of both small and sizeable transactions
bull The retail bond market in Belgium is an extraordinary niche segment on the primary corporate front bond and very much to the advantage of Belgian issuers in their search to diversify their funding needs
bull Total outstanding volume in the Belgian retail bond market exceeds 11bn euro Corporate Issuer
Belgium 1109
DrsquoIeteren NVSAEUR 150m5500 Fixed Rate Notes (retail bond)due Dec 2014
Joint bookrunner
2012
2011
2010
2009
Corporate Issuer
Belgium 0911
DelhaizeEUR 400m4250 Fixed Rate Notes due October 2018
Co-manager
Belgium 0912
Etexco NVEUR 400m5000 Fixed Rate Notes due Mar 2017
Corporate Issuer
Bookrunner
2013Belgium 0313
Joint Bookrunner
UCB SANVEUR 250m3750 Fixed Rate Notes due 2020
Corporate Issuer
Belgium 0113
DEME NVEUR 200m4145 Fixed Rate Notes due February 2019
Corporate Issuer
Bookrunner
Retail bonds offer unique funding diversification for Belgian companies
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
18
Working Capital Solutions- Factoring- Supply Chain Finance
Different financing opportunities
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
19
Belgian Factoring Market
0
5
10
15
20
25
30
35
40
45
2002 2003 2004 2005 2006 2007 est2008
est2009
2010 2011 est2012
Bill
ions
0
1
2
3
4
5
Bill
ions
Total Belgian Factoring marketING Commercial Finance
2012 Factoring Market grew with 11 to a volume of over EUR 42 bln of receivables purchased
Factoring market growth in the past 10 years averages at 16 year-on-year
and ING ComFin increased volume of purchased with over 11 to EUR 47 bln of receivables purchased 19
Total Belgian Factoring market sums up to EUR 42 bln of receivables
purchased in 2012
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
20
Supply Chain Finance in a nutshell
Benefits for client
bull Working capital improvement
bull Tool to improve terms of trade
bull Improved supplier relationships
bull Reduced operational and payment costs
bull Reconciliation tool amp early dispute warning
bull Automation of payments to key suppliers
Benefits for your suppliers
bull Unlocking trapped working capital for suppliers
bull Diversified non-recourse funding off balance sheet
bull Competitive funding rate leveraged on the strong rating of the client leading to financial cost savings
bull Transparency in status of invoices
bull Possible savings in credit insurance
Schematic Overview
25
34
1
1 Supplier delivers goods and sends invoice2 Buyer submits approved invoices to ING3 Supplier sells receivables to ING anytime
before maturity at a discount 4 ING pays the discounted amount 5 Buyer settles payment with ING at maturity
SupplierBuyer
1
2
3
4
5
Product description
SCF offers a payable solution for large corporate buyers based on non-recourse receivable-based financing to its suppliers In exchange for the SCF benefits to its suppliers (transparency cash flow certainty and cheaper funding) buyers are able to obtain improved commercial terms from their suppliers
Principle
Only buyer approved receivables can be assigned to ING The credit risk is therefore fully structured on the buyer which is a strongly rated ING corporate client All transactions are electronic and operate via a dedicated web-based SCF platform
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
21
Working Capital Solutions credentials
Wood based materials Industry
BENLDEUKESPT
EUR 100m
Sole Arranger
2012
Trade receivables purchase programme
Food industry
Belgium 2012
Sole Arranger and Agent
Food Retail Industry
Belgium
EUR 90mSupply Chain Finance programme
Sole Arranger and Liquidity Provider
2012
Wood based materials
Food IndustryEUR 30mSyndicated Factoring Facility
Food Retail
Food industry
Belgium 112012
Food IndustryEUR 40mNon-recourse Factoring Facility
Sole Arranger and Agent
Chemicals Industry
Belgium 2009
EUR 160mTrade receivables purchase programme
Global Coordinator amp MLAGeneral Industries
Belgium 2009
EUR 30mTrade receivables purchase programme
Sole ArrangerPackaging Industry
Belgium
EUR 32m
Sole Arranger
Trade receivables purchase programme
2009
Chemicals Industry General IndustryPackaging Industry
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
22
Leasing
Different financing opportunities
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
23
Lease Market position
2007 2008 2009 20102011 2012
General Market Share
Market Share vis agrave vis main competitors000
500
1000
1500
2000
2500
3000
3500
2007 2008 2009 2010 2011 2012General Market Share 1800 1790 2000 2012 2233 2230Market Share vis agrave vis main competitors 2635 2865 3020 3110
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
24
Main takeaways
bull ING actively supports the Belgian economy Strong growth in lending (+ EUR 44 billion) and savings (+ EUR 35 billion) in 2012
bull Our client is the starting point ING is a trusted advisor amp partner
bull Different financing possibilities for Belgian companies
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
25
Annexe
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
26
The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
70
72
74
76
78
80
82
84
86
88
90
Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12
NegativeSentiment
Global sentiment about the access of SMErsquos (and self-employed) to banking credits
This index is computed by the laquo CEFIP raquo through a survey amongst 711 SMErsquos and self-employed The value of the index is ranged between 0 (extremely negative) and 200 (extremely positive More details and the complete report are available here httpwwwcefipbefilesDocumentenFRbarometer16_FRpdf (only in FR and NL)
Last surveyOCT 2012
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
27
Total credit evolution was much more problematic during the previous cycle
Total credit to non- financial companies increased by 18 YoY in October
Despite the financial crisis total credit continues to increase in Belgium
Credit allocation was much more subdued over the period 2001 - 2005
Evolution of total credit to non financial companies in Belgium ( YoY)
-10
-5
0
5
10
15
20
00 01 02 03 04 05 06 07 08 09 10 11 12
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
2828
Conjunctuur risicogehalte KMO dossiers stijgt
Bron interne Febelfin-enquecircte(1) De risicocategorieeumln zijn ingedeeld op basis van de Probability of Default (PD) - Gering (van 0 tot circa 08) - Middelgroot (van circa 08 tot circa 4) - Hoog (van circa 4 tot circa 21) - Erg hoog (van circa 21 tot 100)
Source Febelfin 4032013
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
29
ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo (eind 2007 ndash eind 2012)
+ 875 miljard
EUREXTRA (sedert 2007)
Source Febelfin 4032013
29
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
30
SME in Belgium vs Eurozone
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
31
The relative importance of SMErsquos in the Eurozone
0 20 40 60 80 100
CY
LU
EE
GR
IT
PT
MT
ES
NL
SI
BE
AT
EM
FR
FI
DE
SK
IE
0-9 10-49 50-249 250+
Based on non-financial private sector value added
Share of SMErsquos in the total value added bull SMErsquos are important for the eurozone economy (60 of the total value added of the non-financial private sector)
bull There is no clear correlation between the size of the country and the importance of SMErsquos in the economy (look at Italy and Ireland)
bull Having said that total value added is still quite concentrated
bullIn the Eurozone 02 of the total number of companies count for 30 of total employment and 40 of total value added
bullIncluding large SMErsquos (50-249 workers) 12 of the total number of companies count for 47 of total employment and 59 of total value added
Source Annual report on SMErsquos in the EU 20112012 ING
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
32
The relative importance of SMErsquos in the Eurozone
Based on value added
Share of SMErsquos in the manufacturing sector
In the manufacturing sector large companies are even more crucial
In the Eurozone 08 of the total number of companies acting in the manufacturing sector count for 40 of employment in this sector and 54 of the sectorrsquos value added
Including large SMErsquos (50-249 workers) 44 of the number of companies count for 64 of the employment and 77 of the value added in the manufacturing sector
0 20 40 60 80 100
CY
EE
PT
IT
GR
ES
NL
SI
MT
EM
FR
AT
BE
SK
FI
DE
IE
LU
0-9 10-49 50-249 250+
Source Annual report on SMErsquos in the EU 20112012 ING
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
33
Financing problem in the Eurozone
Countries where the financing problem is a stronger constraint facing SMErsquos are also those where SMErsquos have the largest
contribution to total value added
of SMErsquos declaring that access to financing is their most pressing problem
Share of SMErsquos in total non financial private sector
Source Annual report on SMErsquos in the EU 20112012 ECB ING
IEDE
FIFR EM
AT BE NLES
IT
PT
GR
45
50
55
60
65
70
75
80
0 10 20 30 40
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
34
Different financing opportunities
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
35
bull Immediate disposalfinancing of 70-90 of assigned receivables (with or without recourse on client)
bull Selection of debtors possible (concentration up to 30 on country basis)
bull Full cash dominion by ING Commercial Finance
bull Credit management
bull Debtor administration
bull Debt collection
bull Take over Debtor Risk
bull Up to 100 coverage
Receivables Finance Credit Management services
Credit Insurance
Overview of ING ComFin ndash Product overview
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
36
bull ING Commercial Finance shall upon request of the Client grant advances on the purchase price before it becomes due and payable up to the a fixed contractual percentage (min 90) of the total balance of the receivables The advances shall be made available to The Client by means of withdrawals from its current account
bull Debtors will pay on a ING Commercial Finance bank account The Client will receive daily information on incoming payments The withdrawals in overdraft are compensated (credited) each time the Client sends ING Commercial Finance a new file (including lsquonewrsquo invoices minus the received payments for lsquooldrsquo invoices that The Client has booked)
bull Funding will be done locally to your local entity or group centralized treasury Benefiting from our web based client portal treasury management and portfolio management can be centralized
Methodology
Commercial finance - Methodology
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
37
bull The programme provides an alternative and stable source of funding that is aligned on working capital needs (eg increase in materials prices)bull Secured and competitive form of financingbull More finance available than from conventional bank borrowing formsbull Off balance Improvement of performance parameters improve overall rating of the company
bull No SPV and related consolidation issues
bull No rating agencies
bull Low legal and third parties costs (rating agencies management company)
bull Single counterparty Short and simple implementation period
bull Simple structure Low fixed costs (low entering costs)
Funding
Management Tool
bull Commercial finance allows you to focus on your commercial activities (core business) bull High-grade debtor specialism bull Commercial finance reduces losses on accounts receivable by continuous follow-up procedures and by analyzing the quality of the debtors
Flexibility
Commercial finance - Benefits
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
38
Thank you
- Financing the Belgian economy and the alternatives
- Slide Number 2
- Slide Number 3
- Slide Number 4
- ING BE strong contribution to the Belgian economy
- Total credit has increased since the start of the crisishellip
- hellipand the financing cost remains very low in Belgium
- A slowdown of credit demand was also observed in 2012
- Slide Number 9
- Midcorporate amp Institutional Clients
- Corporate Clients
- International presence of ING
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Lease Market position
- Slide Number 24
- Slide Number 25
- The sentiment of a credit tightening is largely shared by a lot of managers particularly within Belgian SMErsquoshellip
- Total credit evolution was much more problematic during the previous cycle
- Conjunctuur risicogehalte KMO dossiers stijgt
- ldquoEen EUR krediet voor elke extra EUR spaargeldrdquo(eind 2007 ndash eind 2012)
- Slide Number 30
- The relative importance of SMErsquos in the Eurozone
- The relative importance of SMErsquos in the Eurozone
- Financing problem in the Eurozone
- Slide Number 34
- Slide Number 35
- Slide Number 36
- Commercial finance - Benefits
- Slide Number 38
-
