China's growing affluence drives investors to new emerging markets

New end market is primary draw for doing businesses in Southeast Asia

Amsterdam, July 30, 2008 - China has been the cornerstone for many businesses operating in Asia. Increasing labour and commodity costs however, are causing those businesses to rethink their growth plans incorporating a phenomenon known as the 'China plus one' strategy, by which firms seek to distribute their operations more widely in the Asian region, in addition to their presence in China. While China and India continue to grab the headlines, many of those businesses are seeing a rapid increase in profit levels from elsewhere in Asia – in many cases outstripping returns in China. 15% of respondents expected revenue growth of over 25% annually from their operations in Southeast Asia, almost double the proportion of firms that boasted such rates during the previous three years.

That's one of the findings of a new report 'Rich pickings – opportunities in Southeast Asia's emerging markets' produced by leading global credit insurer Atradius in conjunction with the Economist Intelligence Unit. The report is based on a survey of businesses, most of whom have their headquarters in Europe and the US.

Another reason that businesses are looking towards the second tier of emerging markets is the current dearth of manufacturing capacity in India. A potent mix of Indian bureaucracy, politics and scarcity of facilities means that manufacturers are simply looking elsewhere to set up.

"Infrastructure problems aside, the Asian market holds huge opportunities for both western investors and exporters", says Tommie Sjödahl, Atradius' Chief Market Officer responsible for Asia. "With traditional markets shrinking, or at best stagnating, as a result of the global economic downturn, businesses are turning – indeed in many cases because they see no other opportunities – to the markets of Southeast Asia."

Please click here for a copy of the Atradius report 'Rich pickings'. More than half of the businesses who participated in the report noted that the potential of Southeast Asia as a new end market was one of their main reasons for setting up operations in these countries. The Atradius report shows that the Southeast Asian economies that make up the ASEAN bloc are attracting ever increasing interest from foreign firms looking to invest, sell into, source from or find partners in the region. "The resilience of these markets to the global downturn can be traced back to the lessons that they learned from the Asian financial crisis in the late '90s", explains Sjödahl, "and that's a positive omen for western firms seeking to grow their business in Asia."

About Atradius:

Atradius provides trade credit insurance, surety and collections services worldwide, and has a presence in 40 countries. Its products and services aim to reduce its customers' exposure to buyers who fail to pay for the products and services customers purchase. With total revenues of approximately EUR 1.8 billion and a 31% share of the global trade credit insurance market, its products contribute to the growth of companies throughout the world by protecting them from payment risks associated with selling products and services on credit. With 160 offices, it has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily.

For further information please contact
Denise Hung
Marketing Manager
Tel.:  +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

China falls in the estimation of investors; other emerging markets catching up

Amsterdam, 24 June 2008.

• Atradius publishes study on the promise and perils of emerging markets.
• Opportunities continue to knock - but risks are often underestimated.
• Companies can often achieve success much faster in smaller markets.

The business prospects in emerging markets are as good as ever. However, China is no longer the undisputed favourite for companies seeking markets abroad. Other countries are growing increasingly attractive as well. 60% of surveyed company representatives continued to give top priority to China over the last three years, followed by India, the next most favoured nation, which was identified by 41% of respondents and South East Asia, excluding China, by 26%. However, there are signs of a change in the trend as only 48% intend to focus primarily on China in the future. In other words, China remains the top target, but by a far smaller margin. 45% will focus on India in the future, 25% on Central and Eastern Europe, and 24% on South East Asia (excluding China) and Russia. Experts believe that change is in the cards for China. In the future the country will be more interesting to companies as a growing consumer market than as a cheap manufacturing location.

"Some companies have realised that multinationals can achieve success much faster in smaller markets such as Thailand, Vietnam or parts of South and Central America," says Dr. Peter Ingenlath, Atradius Chief Risk Officer and Vice Chairman. This view is based on findings of the recent international study "Promise or peril – the lure of the emerging markets" produced by Atradius, global leader and provider of credit insurance and collection services.

A recession would also hit emerging markets

"The study findings show that an investor's choice of country is often driven more by emotion than by sound risk management," according to Ingenlath. "Our study raises the awareness of the special risks in emerging markets and can help companies to be better equipped to deal with them," explains Ingenlath. "Despite the tremendous optimism many companies have about particular countries, the study clearly reveals that "the local risks are underestimated by many companies. While emerging markets are now better prepared to withstand a slowdown in developed markets and avoid being dragged into a crisis, they would not be able to shrug off a deeper and longer recession." In fact, many experts forecast negative economic growth — at least for a number of quarters in succession — as a result of the sub-prime crisis in the USA.

On the one hand 72% of respondents believe their companies will be able to profit from growing opportunities in emerging markets in the next three years. On the other, however, only 30% believe that the risks will lessen over the same period. 69% believe that the level of risk will stay the same or become even more acute.

92% of respondents identified macroeconomic factors and 91% political instability or opaque rules and excessive bureaucracy as significant or very significant obstacles to success. Operatively significant or very significant obstacles identified by experts included poor infrastructure (84%), inadequate training (75%) and credit risks (74%).

55% anticipate sales growth of over 16%

There is a great deal of optimism despite all these risks. This optimism is particularly apparent in the sales which respondents expect to make in emerging markets in the next three years. While 42% of companies reported annual sales growth in excess of 16% in the last three years, as many as 55% of companies expect the same level of growth in the next three years.

90% of companies say that growth opportunities are important or very important when it comes to planning potential activities in these markets. Other important aspects are the ability to serve international customers better (58%) and the ability to avoid increasing competitive pressure in domestic markets (57%).

The trend towards investing in emerging markets remains unchanged. Total capital flows into emerging markets were higher in 2007 than ever before, according to figures from the Institute of International Finance (IIF), at US $782 bn. Of this, US $255 bn came in the form of foreign direct investment (FDI) — an increase of more than 50% compared to 2006. When it comes to market entry strategies, 29% of surveyed companies favour strategic alliances or partnerships while 23% prefer opening a representative office and 14% importing goods.

About the study series:

The international study "Promise or peril? The lure of the emerging markets" is the first of a series of studies to look at the opportunities and risks in emerging markets produced by Atradius in cooperation with the Economist Intelligence Unit (EIU), the research department of the British weekly news and international affairs publication The Economist. Subsequent studies, beginning with South East Asia, will each focus on one emerging market region and the conditions awaiting investors and exporters.

Click here to download the study "Promise or peril? The lure of the emerging markets".

About Atradius

The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence in 40 countries. Its products and services aim to reduce its customers' exposure to buyers who fail to pay for the products and services customers purchase. With total revenues of approximately EUR 1.8 billion and a 31 percent share of the global trade credit insurance market, its products contribute to the growth of companies throughout the world by protecting them from payment risks associated with selling products and services on credit. With 160 offices, it has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily.

For more information please contact
Denise Hung
Marketing Manager
Tel.: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Peter Ingenlath named Chief Risk Officer of Atradius N.V.

Amsterdam, June 10, 2008 – Chief Market Officer role to be separated into three regions

Atradius today announced the appointment of Peter Ingenlath, Vice Chairman of the Management Board of the company, as Chief Risk Officer and the envisaged appointments, pending regulatory approvals, of Tommie Sjödahl as Chief Market Officer responsible for Credit Insurance in NAFTA, Asia Pacific, the UK, Ireland, and for the Global, Special Products and Collections units and David Capdevila as Chief Market Officer responsible for Spain, Portugal and Brazil. The third Chief Market Officer, responsible for credit insurance throughout the remainder of continental Europe and the units Bonding, Instalment Credit Protection, Dutch State Business and Atradius Re, will be announced shortly.

Paul-Henri Denieuil, Chairman of the Atradius Supervisory Board commented: "In the current deteriorating economic environment we believe Peter Ingenlath can add the most value to the company by taking over the Chief Risk Officer position. As over recent years Atradius has substantially expanded the geographic scope of its business and with the integration of Crédito y Caución, we decided to strengthen the commercial function of the company by appointing three Chief Market Officers. I believe that with a management board of six very experienced individuals, the company is best positioned to grow its business while maintaining an attractive level of profitability. I would like to thank Peter Ingenlath for his excellent contribution to the success of Atradius as Chief Market Officer."

Dr Peter Ingenlath (50) has been with Atradius and its predecessor companies since 1990. He has served on the Management Board since 1999. Dr Ingenlath has a degree in Law and a PhD in laws from Bonn University. Prior to joining Atradius he was a practising lawyer.

Tommie Sjödahl (57) has been in the credit insurance industry since 1972 and with Atradius and its predecessor companies since 1992. He joined Atradius as the Managing Director of the Swedish subsidiary and has since developed the concept of integrated credit insurance services to multinational clients across the borders as the Director of Atradius Global. Mr Sjödahl has also been responsible for developing Atradius in "New Markets", Oceania and lately in the role as head of Global Business Development.

David Capdevila (42) joined the Grupo Catalana Occidente organisation in 1992 and served in progressively more senior roles including serving as a member of the Grupo Catalana Occidente management committee from 2003 to 2006. He has served most recently as General Manager of Crédito y Caución which he joined in 2006. Mr Capdevila has an actuarial economist degree from the University of Barcelona and an MBA from IESE.

"As Chief Risk Officer, Peter strengthens our risk activities through his strong understanding of the risk environment and underwriting requirements and his broad in depth knowledge of our business; stated Isidoro Unda, CEO of the Atradius Management Board: "The addition of Tommie and David to the Management Board capitalises on their vast experience and regional knowledge and will provide extensive oversight of our markets and the opportunities that arise to improve our offering."

About Atradius
The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence in 40 countries. Its products and services aim to reduce its customers’ exposure to buyers who fail to pay for the products and services customers purchase. With total revenues of approximately EUR 1.8 billion and a 31% share of the global trade credit insurance market, its products contribute to the growth of companies throughout the world by protecting them from payment risks associated with selling products and services on credit. With 160 offices, it has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily.

For information about Atradius products and services available in your country, visit www.atradius.com

Further information:
Denise Hung
Marketing Manager
Tel.: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Heaviest impact of the credit crisis yet to come

Amsterdam, 3 June 2008 – Impact spreading outside of financial services sector globally

Credit crisis related factors such as tight credit and increased payment defaults are expected to result in slower growth and growing business defaults over the remainder of 2008 and into 2009. A 14 country survey, covering businesses in North America, Europe and Australia, sponsored by Atradius found that a much more significant impact is expected in 2008 than was felt in 2007. Some of the survey's findings include:

• Approximately 65% of respondents are expecting some bank failures as a result of the credit crisis.
• Direct exposure to sub-prime lending is higher in Europe (14% of respondents) than in the US (9%).
• About 31% of respondents say they have indirect exposure to sub-prime lending with exposure highest in Mexico (51%) and the United States (46%).
• Larger companies are more frequently impacted by the credit crisis than smaller companies.
• Outside of the US and Mexico, companies in Italy (58%), the UK (46%), Spain (44%), and Australia/New Zealand (43%) have expressed the highest rates of impact from the credit crisis.
• Swedish respondents expressed a very low rate of impact (7%) from the credit crisis.
• 69% of companies in Mexico have already experienced tightening credit with Italy and Spain also experiencing a high rate of tightening. Sweden (less than 20%), the Netherlands and Denmark (less than 30%) have experienced the lowest rates of tightening.
• By industry, the energy sector has experienced the most tightening and the agriculture industry the least.
• Businesses in the energy sector have been impacted by the credit crisis more than any other industry.
• The Building Supply & Construction, Industrial & Manufacturing and Consumer Goods industries are expected to suffer the most over the next twelve months.
• Only about 38% of companies surveyed have adjusted their credit extension policies in response to the changing business climate.

Companies that securitize their receivables have already felt the pinch. Fewer buyers for and plummeting valuations on collateralized debt obligations have resulted in more expensive terms for financing growth through receivables securitization. Additionally, in countries where the real estate and financial sectors have been key contributors to economic growth, or where trading with the US is important, the past and expected future impacts are amplified. The survey, which looks at a broad range of industries, found that the energy and basic materials industries have been impacted the hardest thus far.

Peter Ingenlath, Vice Chairman of the Atradius Management Board commented; "While it seems natural to adjust your credit extension policies in the face a deteriorating credit environment, there is no need to tighten credit policies if your receivables are sufficiently protected, for example by a credit insurance policy."

The survey highlights industries and countries for which risks associated with the credit crisis may be more prominent as well as some of the concerns about the impact the credit crisis will have on their businesses. An increase in payment defaults (71% of respondents) was the biggest concern of companies surveyed followed by restrictions in sales growth (67%) and increased capital costs (65%).

Ingenlath concluded; "In 2008 we expect economic growth to slow globally and in some markets to decline as a result of slowing consumer spending, reduced production, inflationary pressures, rapidly rising energy costs and the weak USD and Sterling. Awareness of the potential risks that can damage your business is essential to maintaining a healthy company. The credit crisis is highlighting the importance of protecting the most important organ of financial fitness, your cash flow. Atradius research can help support decision makers in many countries and trade sectors."

About the Atradius Credit Crisis Survey

The Atradius Credit Crisis Survey assessed the opinions of 2500 business professionals in 14 countries regarding their company's experiences and expectations of the impact of the credit crisis. Please email This e-mail address is being protected from spambots. You need JavaScript enabled to view it for a soft copy of the survey results or visit www.atradius.com

About Atradius
The Atradius Group provides trade credit insurance, surety and collections services worldwide, and has a presence in 40 countries. Its products and services aim to reduce its customers’ exposure to buyers who fail to pay for the products and services they purchase. With total revenues of approximately EUR 1.8 billion and a 31% share of the global trade credit insurance market, its products contribute to the growth of companies throughout the world by protecting them from payment risks associated with selling products and services on credit. With 160 offices, it has access to credit information on 52 million companies worldwide and makes more than 22,000 trade credit limit decisions daily.

For information about Atradius products and services available in your country, visit www.atradius.com

Further information:
Denise Hung
Marketing Manager
Tel.: +61 2 9201 2389
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it