About EKF

Annual Report 2011: Difficult times - continued growth for EKF

In 2011, demand for EKF’s solutions increased for the third consecutive year. The number of customers increased by almost 25 per cent, and exposure rose to a record level of DKK 69 billion.
In 2011, EKF helped more Danish companies to secure and finance their international transactions than ever before. The customer portfolio increased by almost 25 per cent compared with the previous year. The overwhelming majority of the new customers were small and medium-sized enterprises (SME), which EKF had targeted in 2011. The number of SME clients in 2011 was 35 per cent up on 2010

EKF’s exposure grew in 2011 because many major cases were concluded. EKF issued new guarantees and working capital guarantees worth DKK 13.9 billion in 2011, on a par with 2009, which was EKF’s busiest year ever. In particular, guarantees were issued for major wind energy projects in Europe and the rest of the world worth billions of kroner, but also guarantees to the cement industry and to ships and ports have increased EKF’s exposure significantly.

By the end of 2011, EKF had issued guarantees for Danish exports worth DKK 69 billion. Total exposure has never been greater. Profit for the year was a satisfactory DKK 515 million.

“The financial crisis didn’t release its grip on the global economy in 2011. Many companies and banks wanted to insure themselves against the risks associated with trading and investing internationally. This also explains the very high demand for EKF’s guarantees and financing solutions in 2011,” says Anette Eberhard, CEO in EKF, and continues,

“Another reason for the year’s impressive result is that EKF avoided serious losses in 2011 – in spite of the difficult times and the very high level of guarantees issued in the past three years. The strong result strengthens EKF’s equity. And it allows us to continue to provide help to an ever-increasing number of Danish export companies through guarantees and working capital guarantees.”

The many new guarantees underline the value of EKF for Danish exports. According to the economic consultancy, Copenhagen Economics, EKF’s activities in 2011 helped to secure orders worth more than DKK 30 billion for Danish companies. This improved Denmark’s balance of payments by DKK 12 billion and helped to create or maintain 20,000 Danish jobs.

At the start of 2012, offers and cases worth a record DKK 40 billion were in the pipeline. Consequently, EKF is expecting that the level of activity in 2012 will be on a par with, or exceed, that of 2011.

Financial highlights for EKF 2011
> EKF issued new guarantees and working capital guarantees worth DKK
   13.9 billion
> EKF’s total exposure reached DKK 69 billion
> The profit for the year of DKK 515 million was satisfactory

Further information
Press: Anette Eberhard, CEO via Søren Weber Stendal, Communications Consultant, tel: +45 20 19 45 21.
Enterprises and organisations: Kim Richter, Director, SME & cleantech, tel: +45 35 46 26 87.
 
Read the complete annual report for EKF
 

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EKF's schemes in 2011
In 2011, the Working Capital Guarantee Scheme, which EKF has been administering on behalf of the Danish state since 2009, was made permanent and so becomes a permanent part of EKF products available  to Danish companies. The Export Lending Scheme was extended to the end of 2015, but the Reinsurance Scheme expired for buyers in OECD countries.

Exciting new partnership
In 2011, EKF entered a unique public-private agreement with PensionDanmark, thus making DKK 10 billion available for financing of Danish export orders. The money can be lent to foreign companies to enable them to place orders with Danish companies and is a supplement to the Export Lending Scheme. EKF is working to enter into similar partnership with other players in the pensions sector.

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Examples


Two of the companies, that EKF helped in 2011
In 2011, EKF helped more Danish companies to secure and finance their international transactions than ever before. Read about two of them here:

   SME guarantee got the wheels spinning in Norway
  
The Funen-based company Böll-Tec supplies automation equipment for
   companies that manufacture wood products. Böll-Tec nearly lost an
   order for custom-made equipment for a customer in Norway, when a
   leasing company refused to finance the equipment. An SME guarantee 
   from EKF secured the order worth DKK 2.5 million.

> Read more: SME guarantee got the wheels spinning in Norway


   Sustainable recycling in the United Arab Emirates

   EKF helped Eldan Recycling A/S win multiple orders for facilities for
   recycling of, for example, metals, in the UAE. Although the Arab
   customers are major companies and not short of funds, they prefer to
   finance their investments through credit.

> Read more: Funen-based company with success in the Emirates
 
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