HSBC Trade Finance

- Global Growth Strategies for BC Seafood, Aquaculture, and Agrifood Products

June 2014

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Who We Are

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Resistencia

Manila

Saipan

Hagåtña (Guam)

Wellington

Christchurch

AucklandBrisbane

Sydney

Melbourne Adelaide

Perth

Tokyo

Nagoya

OsakaPusanSeoul

Dalian Tianjin

Qingdao

Wuhan

Shanghai

Beijing

XiamenTaipei

Shenzhen

Hong Kong Macau

Guangzhou

Hanoi

Chongqing

Chengdu

Almaty

New delhi

Dhaka

Visakhapatnam

Kalkota

Karadi

Chennai

Colombo

Kuala Lumpur

Singapore

Jakarta

Bandung

Semarang

Surabaya

Kuching

Badar Seri BegawanLabuanKota Kinabalu

Bangkok

Ho Chi Minh City

Bangalore

Trivandrum

Mumbai

Portlouis

Maputo

Durban

Johannesburg

Harare

Windhoek

Lusaka

Nairobi

Kampala

Luanda

Lagos

Accra

Abidjan

Pergamino

Mar del Plata

La Plata

Buenos Aires

Montevideo

Punta del Este

Santa Fe

Porto Alegre

Corrientes

Posadas

Curitiba

São Paulo

Rio de Janeiro

Belo Horizonte

Campo Grande

Salvador

Recife

Fortaleza

Belém

Manaus

BrasíliaRibeirão Preto

Salta

Tucumán

San Juan

Santiago

Mendoza

Córdoba

Neuquén

Bahía Blanca

Panama City

CaracasCayman Islands

NassauMiami Bermuda

Washington

New YorkPhiladelphia

BostonGlastonbury

Fredericton

St John’s

QuebecMontreal

OttawaToronto

Buffalo

Chicago

Winnipeg

Calgary Saskatoon

Vancouver

Seattle

Portland

San Franisco

Los Angeles

Beverly Hills

Houston

Dallas

Mexico City

MontereyCasablanca

Madrid Valencia

Bilbao

Barcelona

Monaco

Geneva

Birmingham

Dublin

Cardiff

Isle of Man

Edinburgh

Channel Is

Manchester

London

Leeds

Paris

Amsterdam

Luxembourg

Brussels

Dusseldorf

Stockholm

Frankfurt

Rome

ZurichPrague

Milan

Valletta

Alexandria

Istanbul

SofiaLugano

Warsaw

Moscow

Athens

Nicosia

BeirutTel Aviv

Amman

Cairo

JeddahRiyadh

SalalahMuttrah

MuscatDubaiDoha

Abu Dhabi

DammamRamallah

Tehran

Baku

Yerevan

Cape Town

Cook Islands

Introduction: HSBC Group

One of the largest banking and

financial services organizations

Unrivaled footprint - 6,300

offices in 75 countries and

territories

Serves businesses ranging

from small enterprises to large

multinationals providing

solutions, tools and expertise to

help companies thrive.

Unmatched technological

platform - HSBCnet is designed

to offer a seamless suite of

online financial solutions

Global Partner of Choice

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HSBC Bank Canada

Canada’s 7th largest financial institution by total assets

Leading international bank in Canada

More than 160 offices and 5,800 employees across the

country

International Relationship Managers

Holistic cross border banking solutions

Foreign Accounts

Cash Management

Trade Finance

Foreign Exchange

C$ 2 B fund to help businesses expand internationally

Connecting Customers to Opportunities

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Awards

GTR Leaders In Trade

Best Global Trade Finance Bank

Trade Finance Awards

Best Overall Trade Finance Bank

Best Supply-Chain Finance Bank

Best Factoring Institution

Best Export Finance Arranger

Euromoney Cash Management Survey

Best Domestic Cash Management Provider in Canada

Best Global Cash Management Bank for Corporates

Best Global Cash Management Bank for Financial Institutions

Euromoney Awards for Excellence

Best Global Transaction Banking House

Best Global Risk Adviser

FX Week Best Banks Awards 2013

Best Bank for FX in Asia-Pacific

Best Bank for Emerging EMEA currencies

Best Bank for Emerging Asian currencies

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Proven Thought Leadership

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British Columbia Trade Landscape

Trade Overview (C$ Bn)Trade Overview (C$ Bn)

2012 Import Break-up 2012 – C$ 27 Bn 2012 Export Break-up 2012 – C$ 95 Bn

Trade Overview (C$ Bn)

2013 Import Break-up – C$ 45 Bn Export Break-up 2013 – C$ 34 Bn

Imports & Exports

crossed the pre-

crises levels in

2013

Trade flows

diversified over the

last decade, USA

accounts for 44%

of the flows, as

compared to 52%

Source: Own Adoption of Industry Canada DataPUBLIC - Internal: Draft Copy

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5

10

15

20

25

30

35

40

45

50

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13

Imports Exports

Machinery26%

Minerals11%

Transport Eqpt10%

Base Metals8%

Textiles7%

Others38%

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2004: C$ 33.6 B – 51.8%

2013: C$ 35.1 B – 44.6%

10-Yr CAGR: 0.5%

North America

2004: C$ 4.6 B – 7.0%

2013: C$ 5.3 B – 6.7%

10-Yr CAGR: 1.6%

Europe

The Caribbean & Cen. America

2004: C$ 1.1 B – 1.6%

2013: C$ 1.9 B – 2.4%

10-Yr CAGR: 6.9%

2004: C$ 0.2 B – 0.3%

2013: C$ 0.3 B – 0.4%

10-Yr CAGR: 7.1%

Middle East

Africa

2004: C$ 0.17 B – 0.3%

2013: C$ 0.7 B – 0.4%

10-Yr CAGR: 5.9%

South America

2004: C$ 0.76 B – 1.2%

2013: C$ 1.6 B – 2.0%

10-Yr CAGR: 8.4%

2004: C$ 0.9 B – 1.4%

2013: C$ 1.0 B – 1.3%

10-Yr CAGR: 1.6%

Oceania

2004: C$ 23.7 B – 36.5%

2013: C$ 33.2 B – 42.2%

10-Yr CAGR: 3.8%

Asia

Evolving Trade Corridors

Source: Own Adoption of Industry Canada Data

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Global Trade and Receivable Finance (GTRF) Solutions

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Financing the Supply Chain

9

Export Finance• Finance manufacturer’s interim work-in-progress needs

• Financing up to 70% cost of goods

• Maximum period of finance usually 90 days

Receivable Finance • Discount open-account receivables – both domestic and international

• ARs discounted up to 90% of receivables

• Maximum period not to exceed 180 days

GTRF Solutions for Exporters

Receivables finance

Pre-shipment finance

Issue

purchase order

to supplier

Deposit

paid to

supplier

Shipment

made by

supplier

Manufacture

Invoice

issued

to buyer

Collect

payment from

buyer

Product Description

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Thank you

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Disclaimer

This document is issued by HSBC Bank Canada ("HSBC"). This document is confidential and shall not be copied, reproduced, transmitted or further distributed by

any recipient. The information contained in this document is of a general nature and is for informational purposes only. Unless otherwise stated, any pricing

information given in this document is indicative only, is subject to change and does not constitute an offer to deal at any price quoted. This document is not an offer

to sell, or a solicitation of an offer to buy or subscribe for, any security, currency or related instrument. The information presented is not meant to be comprehensive

and does not constitute financial, legal, tax or other professional advice. No consideration has been given to the particular investment objectives, financial situation

or particular needs of any recipient in the preparation of this document. You should conduct your own investigation and analysis of each potential transaction and

consider the advice of your legal, accounting, tax and other business advisors. While reasonable care has been taken in preparing this document, HSBC does not

make any guarantee, representation or warranty (express or implied) as to its accuracy or completeness, and under no circumstances will HSBC be liable for any

damage or loss caused by reliance on any opinion or statement made in this document. The information presented in this document is subject to change without

notice.

Certain of the products and services offered by HSBC and its subsidiaries and affiliates are subject to credit adjudication and approval. Not all products and

services mentioned in this document are available in all jurisdictions. Please consult with your HSBC representative to determine which products and services are

available in your jurisdiction.

HSBC is a trademark of HSBC Holdings plc and has been licensed for use by HSBC and its affiliates.

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