Annual Report 2014

Transcription

Annual Report 2014

Annual
Report
2014
Contents I
1 PROFILE OF CESCE
2 LETTER FROM THE CHAIRMAN
3 BUSINESS LINES
4
10
13
3.1 CREDIT AND SURETY INSURANCE SOLUTIONS
14
3.1.1 Business model
3.1.2 Commercial offering of insurance and financing
3.1.3 Surety
3.2 SPANISH EXPORT CREDIT AGENCY (ECA)
3.2.1 Regulatory changes
3.2.2 The faces of CESCE business
3.3 INFORMATION AND SERVICES
4 CESCE IN 2014
15
24
28
29
29
32
40
43
4.1 ECONOMIC ENVIRONMENT
44
4.2 PERFORMANCE IN THE YEAR
48
4.2.1 Credit and surety insurance solutions
4.2.2 Spanish Export Credit Agency (ECA)
49
53
5 CORPORATE RESPONSIBILITY
73
5.1 CESCE, A RESPONSIBLE COMPANY
74
5.2 COMMITMENT TO STAKEHOLDERS
77
Contents I
5.2.1
5.2.2
5.2.3
5.2.4
Employees
Customers
Suppliers
Community
5.3 COMMITMENT TO THE ENVIRONMENT
5.3.1 Environmental quality at CESCE
5.3.2 Environmental supervision in projects on behalf of the State
5.4 COMMITMENT TO GOOD GOVERNANCE
5.4.1
5.4.2
5.4.3
5.4.4
5.4.5
Good Governance bodies
Ethical framework
Risk Management
Senior management team
Board of Management
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83
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100
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Contents II
Annual
Report
2014
PROFILE OF CESCE
LETTER FROM THE CHAIRMAN
BUSINESS LINES
1
CESCE IN 2014
CORPORATE RESPONSIBILITY
PROFILE
OF CESCE
CESCE is the leader of a group of
companies providing comprehensive
commercial credit management
solutions in Europe and Latin America.
CESCE is also the Spanish Export
Credit Agency (ECA) which manages
Export Credit Insurance on behalf of
Spanish State.
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BUSINESS LINES
Mission
Vision
To encourage the steady and long term growth
of our customers providing intelligent
commercial credit management solutions that
cover the entire business value chain – market
prospecting, risk management and transfer and
access to funding – and surety and guarantee
solutions to help them tackle new projects and
business ventures.
We aim to become the
best support for
companies that sell on
credit to other
companies, by designing
innovative solutions
always keeping a
conceptual and
technological cutting
edge over our
competitors, and to
become the company of
reference in the market
for our quality of service,
the professional and
personal development
opportunities we offer
our employees and our
commitment to society.
To honour our public obligation as managers of
Export Credit Insurance on behalf of the State
with technical rigour, professionalism and strict
compliance with applicable regulations, fully
geared to support the internationalisation
process of Spanish companies.
CESCE IN 2014
Values
Innovation
Support for
economic activity and
internationalisation
Commitment
to our customers
Ethical and
responsible conduct
Commitment
to people
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PROFILE OF CESCE
BUSINESS LINES
CESCE IN 2014
1
Present in
10
1.
2.
3.
4.
Over
5.
6.
7.
8.
9.
group worldwide
7
in Europe and Latin America
CESCE
CESCE France
CESCE Portugal
CESCE Argentina
CESCE Brazil
4º
2º
2
countries
CESCE Chile
SEGUROEXPO Colombia
CESCEMEX Mexico
SECREX CESCE Peru
CESCE LA MUNDIAL Venezuela
6
9
IN CREDIT AND SURETY INSURANCE
4
8
5
in Spain
3
140.000
1.1million
credit limits in force
clients
1.457
employees
The most influential company in
the financial and insurance sector in
social media*
29
150
commercial
branches
agents
3million
online users
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PROFILE OF CESCE
BUSINESS LINES
CESCE IN 2014
Structure
Credit and surety
insurance solutions
Spanish Export
Credit Agency (ECA)
Information
and services
Comprehensive services to help
companies grow in all stages of the
business cycle.
Management on behalf of the Spanish
State of the commercial, political and
extraordinary risks associated with the
internationalisation of Spanish companies.
Commercial, financial and marketing
information on companies and entrepreneurs.
Spain
Argentina
Portugal
Brazil
France
Chile
Colombia
Mexico
Comprehensive credit management
services, technological solutions and
outsourcing of business processes.
Informa D&B
CTI
OneRate Consulting
DBK Informa
Experian
Logalty
Spain
Peru
Venezuela
Portugal
Colombia
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Shareholder
composition
BUSINESS LINES
CESCE IN 2014
2014 Milestones
Insurance companies
3,9%
Other banks
• New regulatiory framework for the
management of the State Account
8,48%
In percentages
• CESCE Fondo Apoyo a Empresas now
open for non-CESCE clients
BBVA Group
• Launch of a new global business
proposal in the credit area
16,3%
• Standard&Poor’s increases CESCE
rating to BBB with a stable outlook
Spanish State
• Consolidation of the
Customer Experience project
50,25%
• CTI acquires OneRate Consulting
Santander Group
21,07%
1970
Creation of
CESCE.
1992
2000
Commencement
of insurance
activity on own
account and
creation of
Informa D&B.
2004
Creation of the
International
Consortium of
Credit Insurers SA
(CIAC).
Commencement
of expansion in
Latin America.
2005
Acquisition of
Dun&Bradstreet
business in Spain
and Portugal by
Informa.
2008
CESCE Avanza:
redefinition of
processes and
improvement of
productivity and
customer service
quality.
2011
New business
model based on
focus on client
and variable
pricing.
2012
Launch of CESCE
MASTER ORO:
comprehensive
management of
commercial risk.
2013
Operational
and
Breakup of the Pay commercial
per Cover
integration at
principle: a new
a global level.
way of
approaching credit
insurance for
CESCE clients.
Chronology
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BUSINESS LINES
CESCE IN 2014
(*) The financial statements for FY 2013 have been restated to incorporate the legally required modifications, in regard to the change
of accounting criterion in the calculation of technical provisions for risk management on behalf of the State, implemented in 2014.
55,8
New
commitments
issued
In percentages and millions of euros
New commitments
issued on own account
84,9%
50,4
34,5
Technical
Results
17,5
20,7*
Profit
before tax
In millions of €
In millions of €
2012 2013 2014
23.258
34,6*
373,1*
2012 2013 2014
399,4
66%
319,0
59%*
28%
15,1%
4.134
New commitments
issued on behalf
of the State
Net
equity
Claims
ratio
In millions of €
In percentage
2012 2013 2014
2012 2013 2014
Financial indicators
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2
PROFILE OF CESCE
BUSINESS LINES
CESCE IN 2014
LETTER FROM
THE CHAIRMAN
Dear Shareholders:
2014 has been a defining year for CESCE, both for
the excellent economic results obtained and the
progress shown in the three business lines of the
company: Spanish Export Credit Agency (ECA); credit
and surety insurance solutions; and information
and services. This has put us in the best position to
take advantage of the evident improvement in the
economic environment in Spain.
In the first place, we have completed the adaptation
of CESCE to the new regulatory framework brought
about by Law 8/2014 dated 22 April concerning
State coverage of the internationalisation risks of
the Spanish economy in record time. This law marks
the end of the complicated legal process designed
to restructure credit insurance on behalf of the State
which was started in March 2012 by the privatisation
process of the CESCE shareholding owned by the
Government.
Secondly, we have advanced in the development and
consolidation of our strategy to transform CESCE
into a leading company in the provision of value
added services in the management of commercial
risk. Among our achievements are the rationalisation
of our operations in and out of Spain and the launch
of “Customer Experience”, a new customer relations
model.
Finally, in the area of Information and Services we
have consolidated our leadership in the supply of
information to companies and broadened the range
of outsourced business processes, payment systems
and commercial credit management.
Profitable growth
In a fiercely competitive market environment, we
have managed to increase pre-tax profit by 61.3%,
further proof of the efficiency of our fully customer
focused business model.
Pre-tax profit has increased by 61.3%, from €34.6
million to €55.8 million and net profit has grown
by 65.4%, from €26.3 to €43.5 million. This is the
second largest figure in our history and an even
In a fiercely competitive market
environment, we have managed to
increase pre-tax profit by 61%, which
proves the efficiency of our fully
customer focused business model
more laudable achievement when the environment
of strong competition and declining prices is taken
into account.The results obtained confirm the
efficacy of a business model that is totally focused
on the customer, providing unique commercial risk
management solutions: we are the only company
in the world that offers its customers different
prices for each type of debtor and the chance to
select the extent of coverage - total or partial – of
commercial risk. The solid technical foundations of
this revolutionary system, reliant on the application
of new technologies and data analysis, have enabled
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PROFILE OF CESCE
us to reduce the claims rate from 58% to 27%, the
best claims rate in the industry in Europe.
The net equity of CESCE at 31 December 2014
amounted to €399.4 million, the highest in the
history of the company, compared to the €373.1
million the year before, which confirms the growing
financial solidity of the company. CESCE benefits
from a broad coverage margin in static solvency
- €344 million, 178% of technical provisions – and
in dynamic solvency - €290 million, 15.8 times the
minimum amount-.
BUSINESS LINES
In 2014 we launched “Customer
Experience”, a new model of
customer relations involving the
entire company, seeking to offer
the customer a global, positive
and differentiated experience
Customer focus
Every day more businesses trust us to manage their
commercial risks and access our financing solutions.
It would be easy to become complacent with the
success achieved, but the capacity for adaptation,
innovation and service to businesses lies at the core
of CESCE.
Throughout 2014, we have continued to improve
our intelligent solutions, under the CESCE MASTER
ORO commercial umbrella, to provide a real
response to the needs of our customer and have
completed the global integration of our company
with the launch of the CESCE MASTER ORO system
in Latin America. We are currently working on the
integration of systems for surety management and
administration in all Latin American subsidiaries.
And we have done all this without ever losing sight of
the customers. At CESCE it is not enough to offer the
best commercial credit solutions: we aim to establish
a lasting and mutually beneficial relationship. In
2014 we launched “Customer Experience”, a new
customer relations model that involves the entire
company; it goes beyond customer satisfaction,
seeking to provide a global, positive and differentiated
experience. The “Customer Experience” model
allows customers to communicate with CESCE via
all existing commercial channels and use all the
available information technology and devices.
CESCE IN 2014
In a move that aims to make some of our benefits
available to the entire market, since mid-2014, any
business – whether or not it is a CESCE customer
– may access the non-bank financing provided by
CESCE Fondo Apoyo a Empresas (Enterprise Support
Fund), an innovative formula that allows businesses
to obtain liquidity via invoice discounting.
New State Account regulatory framework
The new regulatory framework brought about by
Law 8/2014 of 22 April and Royal Decree 1006/2014
of 5 of December, paving the way for the future
privatisation of the State’s shareholding in CESCE,
follows the model in force in most European Union
countries, where the entity responsible for the
management of coverage on behalf of the State is
a Managing Agent with private capital.
The appointment of CESCE as Managing Agent
for a period of 8 years is a guarantee for Spanish
exporters. The new regulatory framework ensures
maximum efficacy in the management of the State
account, allowing management independence to
be maintained while benefiting from the synergies,
economies of scale and know-how offered by a
large company such as CESCE, with over 40 years’
experience in this role, as well as having generated
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CESCE is in an optimal
position to continue to provide
support to Spanish exporters,
to grow in Spain, Portugal and
France and to benefit as much
as possible from the growth
potential of the Latin American
subsidiaries
a positive cash flow in the period of over €2,700
million for the State.
Throughout 2014 we have adapted the company
to this new legal framework: the separation of
functions and risk approval procedures set forth in
the Law are now fully operative and we have also
signed the Management Agreement with the State,
setting the terms and conditions of this concession.
In 2014 we have renewed our commitment to
corporate responsibility and sustainability in the
application of OECD criteria regarding sustainable
BUSINESS LINES
funding for economic development, combating
bribery and corruption and assessing the social and
environmental impact of the investment and export
projects. Our aim is to maintain mutually benefiting
relationships with the individuals and groups with
whom we are involved: employees, customers,
suppliers and society as a whole.
Outlook
The excellent performance of CESCE in 2014 has
taken place against the backdrop of the economic
recovery of Spain following six years of recession.
The reforms and austerity policies of recent years
have helped to increase confidence,led to more
access to funds and to the gradual recovery of the
employment market. As a result thereof, GDP has
grown by an average of 1.4% and is expected to
surpass 2.5% in 2015.
CESCE IN 2014
our insurance and financing solutions, focusing
further on customer experience, globalising our
offering and continuing to support R&D&I.
Lastly, I wish to thank each and every one of the
professionals at CESCE whose commitment and
effort have made possible the success achieved
this year and are our best guarantee for the future.
Álvaro Bustamante de la Mora
Chairman
In this more favourable economic environment,
CESCE is ready to continue to provide support
to Spanish exporters, to grow in Spain and to
intensely develop the growth potential of the Latin
American subsidiaries. We are facing a new era full
of challenges ahead and we do so with the firm
conviction that we have the best and best-qualified
team of professionals and cutting edge technology.
We shall continue to travel along this path, perfecting
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3
BUSINESS LINES
CESCE IN 2014
BUSINESS
LINES
3.1 CREDIT AND SURETY INSURANCE SOLUTIONS
3.1.1 Business model
3.1.2 Commercial offering of insurance and financing
3.1.3 Surety
3.2 SPANISH EXPORT CREDIT AGENCY (ECA)
3.2.1 Regulatory changes
3.2.2 The faces of CESCE business
3.3 INFORMATION AND SERVICES
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BUSINESS LINES
CESCE IN 2014
3.1
Principles of the
commercial proposal
Credit and
surety insurance
solutions
CESCE designs and markets
intelligent commercial credit solutions
which meet the needs of its customers
in all phases of the business cycle:
market prospecting, risk management,
risk transfer and access to funding. This
value proposal is built upon a unique
and differentiated business model,
focused on the customers and based
on the intensive use of information, a
consistent investment in technology
and the use of Business Analytics as a
decision-making tool.
1.
The central element of risk is the
debtor and not the customer
The basic unit of risk is not the insured party, but the insured party’s
debtor. For this reason, CESCE analyses debtor risk and helps customers
retain the best and protect themselves from the worst.
2.
Variable prices and coverage
3.
Credit insurance does not
depend on the cycle
CESCE is the only company in the world that offers a different price per
type of debtor, based on the fact that each debtor has a very different
payment behaviour.
The customer is not obliged to insure his entire debtor portfolio, and
decides at each time the level of coverage he wishes to contract.
Prices are set on the estimated future cost of the
claims ratio using prediction mechanisms, irrespective
of the results of previous years.
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BUSINESS LINES
CESCE IN 2014
Cornerstones of the
business model
Customer
focus
Technological
leadership
Operational
excellence
International
projection
Financial
solidity
3.1.1. Business
model
The technological basis of this
revolutionary system protects CESCE
against adverse economic cycles
CESCE has an innovative and differentiated
business model based on information and data
analysis, which enables it to know the needs
of each customer and automatically predict its
commercial risks to offer a tailor-made value
proposal.
Based on this philosophy, CESCE sets different
coverage prices according to the payment behaviour
of each debtor of its customer and is the only
company in the world that offers the possibility to
insure only the transactions deemed most critical,
without having to insure the entire portfolio.
Thanks to this strategic support of know-how
and a sustained investment in new technologies,
CESCE is equipped to help companies to
select and monitor customers, to advise them
in decisions to protect their commercial
transactions and to offer alternative funding
formulae designed to reduce the effect of
non-performance on their treasuries.
The technological basis of this revolutionary system
protects CESCE against adverse economic cycles
as the underwriting is performed over the expected
performance of delinquency indicators and prices
are set on the basis of the estimated future cost
of the claim rather than on what has occurred in
previous years.
This comprehensive approach to customer
protection according to their requirements
is part of a revolutionary premise in the
insurance industry: the customer is not
responsible for its claim rate: the basic
unit of risk is its debtor.
The focus on the customer, the inclusion of
data analysis at every stage of the value chain,
the company’s global approach and its financial
solidity are the cornerstones of this business model,
implemented in 2008, which has managed to earn
CESCE a position among the four first credit and
surety insurance groups in the world.
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FOCUS ON THE CUSTOMER
CESCE and its subsidiaries have over 140,000
customers worldwide. Its business success lies in its
capacity to identify with the situation of each one so
as to offer high value added services and solutions
to help decision-making and protect the customer
during difficult times.
This empathy with the customer is supported by an
analytical knowledge. Clearly convinced that the only
way to offer customers a differentiated value proposal
is to understand the needs of the companies, each
year the company invests in new technologies to help
it obtain more information on its customers and to
identify their priorities in each circumstance.
Along these lines, in 2013 CESCE completed
the implementation of a Customer Relationship
Management (CRM) tool to enable it to offer a service
or solution that is appropriate for each customer
at specific times. This tool undergoing continuous
improvement, records customer information and
defines specific action guidelines based on the
specific needs of each customer, on the relevance
of a specific situation for that customer and the
customer‘s level of satisfaction with the company.
BUSINESS LINES
New Customer Experience strategy
But CESCE’s customer relationship model does not only
use its analytical capabilities to capture those customers
more liable to buy, but also steers its actions towards
creating a positive experience for the user, establishing
relationships which will ensure permanence. With this
aim in mind, in 2014 the Company has defined its own
Customer Experience strategy.
The Customer Experience strategy developed in
2014 differentiates the brand and generates loyalty
because it goes well beyond customer satisfaction:
it seeks to offer the customer a global, positive and
differentiated experience.
Aware that customer loyalty is directly linked to
the number of interactions and the quality thereof,
the company increases its efforts in building and
maintaining communication bridges over various
channels in a consistent and coordinated manner.
Faced with the challenge of a society that uses
different interaction channels, CESCE has opted for
an omni-channel strategy with the companies with
which it works. This means that the customer has
the same experience regardless of the means of
interaction used and that, moreover, the customer
CESCE IN 2014
The Customer Experience strategy
developed in 2014 means moving
beyond customer satisfaction
may begin a transaction over one channel and
complete it through another.
In order to establish this integrated strategy, CESCE
has not only created different channels with a single
customer perspective, but has also adapted them to
the various devices and contexts in which they are
used, optimising the route to them by measuring and
evaluating the contacts.
Omni-channel strategy
The company has various online and offline channels
for delivery of the value proposal to its customers:
sales network, telephone and the Internet.
• Sales network
The sales network plays a fundamental role in the
Customer Experience strategy. In 2014, it was formed
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The Customer Service Centre in
Europe and Latin America attended to
123,077 queries
by 29 branches and 150 sales executives working in
Europe and Latin America.
These agents have all their information in the CRM tool,
and can thus offer solutions and services according
to the various events affecting the customer. They
add value to positive relevant events performed by
CESCE and minimise the impact of a situation which
might adversely affect the customer’s satisfaction
level, able to transform it into something positive by
permanent tracking of the account. By establishing
close relationships between the customer and
the sales executive, CESCE manages to increase
customer loyalty.
BUSINESS LINES
CESCE IN 2014
line of service comprising
experts in each business area
for more complex cases.
But CESCE is not satisfied
with just that, and has gone
on to implement a continuous
customer voice active listening
program. Through the CSC, its sales
executives or via direct questions,
the company receives constant
feedback to enable it to improve
service.
During the year, the Customer Service
Centre in Europe and Latin America
attended to 123,077 queries, with a
high rate of quality and efficiency: 96%
of the calls were attended in less than
30 seconds, 94% of the requests were
solved within less than 24 hours and the
complaints rate was only of 0.3%.
• Telephone channel
• Internet: CESNET and social media
The telephone channel has continued to play a
key role in the Customer Experience model via the
Customer Service Centre (CSC). This centre has a
properly trained team that redirects calls to a second
In recent years, the Internet has gained
relevance among CESCE channels: the
CESNET operational platform, the social media
and the commercial pages of the company.
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CESNET is the virtual platform that channels over
85% of the business transactions. From this website,
customers are able to manage risk in real time and
track their policies with the possibility, among other
functions, to inform of sales, extensions and defaults
to the company. In addition, they may access the
customer portfolio surveillance service, which sends
an immediate notice of any modification of risk.
BUSINESS LINES
policies automatically. In addition, they may transfer
to their own computer all the information required
for the management of their risks.
CESCE IN 2014
The repercussion of CESCE is related both to the
number of followers and the quality of the information
published.
During financial year 2014, CESCE continued to
remain the leader in social media within the insurance
and finance sectors, according to The Klout Score.
Customers may configure the platform to receive
notices on any device or for the system to apply its
A customer-focused organisation
CESCE, in its effort to provide the best service for the customer, undertook in
2014 a reorganisation of the Marketing Department in order to align the work of
areas involved in customer management and establish a new project execution
mechanism.
The scope and objective of the projects were defined for each one: the work
required for execution, the person responsible for implementation and the
interlocutors in each area. A procedure was also established to assess marketing
actions and measure results.
As part of this process, the phases of customer capture, conversion and loyalty
have been identified, as well as the tasks involved to support each one. Taking
into account available resources – both in terms of personnel and content,
instruments and channels – its Marketing strategy was organised by project type:
business-related and transversal projects.
Following the reorganisation, the figure of the product manager was established
in each project to set targets, define actions, create content associated with
each action and design interaction flows.
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BUSINESS LINES
CESCE IN 2014
Javier
Information applied to commercial risk
management underlies all solutions
and services
The intrepid
entrepreneur
has become a
company
symbol.
CESCE’s social media efforts have concentrated mainly
on Twitter, with more than 41,000 tweets, having
earned over 71,000 followers. The company has
chosen Twitter as its main channel because it allows
interaction with its target audience, but it continues
to be active on other social media such as Facebook,
with over 3000 followers; LinkedIn, with over 2500
followers; and YouTube, with 50 videos and over
275,000 viewings; as well as Instagram, Pinterest,
SlideShare, Google + or FourSquare.
The company continued to improve its image
on the Net in 2014 with its new commercial
pages www.cesceseloexplica.com and www.
cesceen3d.com. Both platforms provide users
with interactive visual explanations on the
operation of its solutions and services, as well
as videos of businessmen talking about their
experience as CESCE customers. Javier, the
intrepid entrepreneur that has become the
company image, plays a special role on these
platforms.
TECHNOLOGICAL
LEADERSHIP
CESCE is intelligence applied to commercial risk
management. Technology enables the ideas of the
company to take shape and, therefore, as of 2008 –
the date on which the company decided to reinvent
itself and support data analysis and innovation to meet
customer needs – the company has concentrated its
investment effort on the implementation and use of
digital capabilities associated with technology.
The analysis of information forms part of the DNA
of CESCE. Information applied to commercial
risk management is behind each and every one
of the solutions and services offered by CESCE.
Market prospecting, tracking of customer portfolio
or selective transfer of risk according to debtor
behaviour would be impossible without the support
of new technology.
During the transition of CESCE towards becoming
a digital company, its basic processes and activities
have not only been fully automated, but designed
to incorporate cognitive capabilities. This analytic
capability, able to transform data into knowledge, is
the core of the key business processes: the coverage
of risk and the management of performance.
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BUSINESS LINES
CESCE IN 2014
Evolution of expenditure
in R&D&i
In order to address global
integration and enrich its
innovation system, CESCE has
entered into alliances with
several companies
Another aspect that is essential to achieve this
objective is the integration of the entire chain of
information supply, using an automated connection
system that enables the processing of millions of data
on hundreds of thousands of companies contained
in multiple information sources to predict the risk of
delinquency and control claim rates.
The company systems are fed with the data provided
by its customers, the information on sectors and
countries compiled by its team of specialised
analysts, with sophisticated prediction models and
with the data bases of its subsidiary Informa D&B,
which provides information on over 240 million
companies in over 200 countries worldwide.
The capabilities for collaboration and exchange
of two-way information with partners, customers
and employees via the intelligent use of
social media offers easy access points,
combining classic points of access
(agents, branches…) with digital access.
With a view to tackling the challenges
of global integration and enriching its
innovation ecosystem, CESCE has entered
into strategic alliances with market leaders
such as IBM, Google or Salesforce. The
leveraging of technological information on
the cloud has meant a significant savings in
operational and investment costs, by having
cutting-edge technology under the pay-peruse formula.
OF TOTAL
EXPENDITURE
(*) Estimation
8
7
6,84
6
4,56*
These companies not only provide the
company with the technology needed to
implement new innovation projects in a fast
and economic way using these elastic means
of technological supply, but also offer a global
and multi-sectorial technological outlook.
A result of the agreement with IBM is the
Innovation Observatory which, among other
functions, continuously analyses the application
of digital capabilities to the CESCE strategy. In
2014, the governance bodies were formed and
several projects were identified (Omni-channel,
integrated access from any channel, cognitive
7,8%
In millions
of euros
3,61
5
4
3,34
3
2,46
2
1,23
1
0
2009 2010 2011
2012 2013 2014
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PROFILE OF CESCE
computation and API ecosystems in the development
of solutions for the business community).
The application of the Big Data technology to
customer capture and commercial risk management
is one of the projects on which a proof of concept
is being carried out.
OPERATIONAL
EXCELLENCE
The company has a global and digital operational
model, based on the intensive use of information
technology, which brings about business scalability
and profitable and sustainable growth via process
optimisation and cost control.
In the digital revolution era, with ever-changing and
increasing customer demands, CESCE undertakes
continuous improvements to maintain and improve
its operational excellence. During financial year
2014, CESCE concentrated its investment in the Risk
and Regulatory Compliance System based on the
Solvency II directive.
It thus advanced in the cognitive automation of the
risk process, that is, in mechanical decision-making
on risk coverage, with no need to consult the analyst.
BUSINESS LINES
CESCE focused its investment
in the Risk and Regulatory
Compliance System based on the
Solvency II guidelines
CESCE IN 2014
digitalise the front office services: digital marketing
(360º customer vision, social and mobile marketing),
customer experience (design of customer
experience, behaviour patterns, application of
strategies) and in distribution and sales channels
(mobility agents, social media channels, innovation
in products and services).
Globally integrated company
98% of risks are currently assumed automatically
thanks to the integration of the analytical models.
The system processes the tens of thousands daily
requests for classification, extensions, notice of
default, etc. and is able to provide a fast response
which, in most cases, is in real time.
The decision on the granting of benefits in the event
of delinquency is also modelled and automated. The
company has automatic experts who assess every
case and decide whether or not an indemnity is
to be paid to the company. This system currently
affects 90% of the transactions and implies not only
an improvement in efficiency and lower costs, but
also the possibility of reducing indemnity payment
periods, with the obvious benefit for the customer.
In addition to focusing on all key business processes,
CESCE has developed several initiatives designed to
CESCE is a globally integrated company that uses the
various capabilities and human and technological
resources available in Europe and Latin America to
provide service to its customers worldwide.
For the purposes of efficiency, CESCE is currently
implementing a global operational model both for
the head office and the international subsidiaries,
using a single management platform and the same
nomenclature for the various business segments.
In 2014, it has already integrated most of the critical
process (risks, after-sales, recoveries, reinsurance…),
using all the global capabilities of CESCE to attend
and provide service to customers anywhere in
the world where CESCE operates, irrespective of
location.
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INTERNATIONAL
OUTLOOK
CESCE operates in ten countries in Europe and
Latin America. In addition to its head office in Spain,
it boasts branches in France and Portugal and has
subsidiaries in the main markets in Latin America:
Argentina, Brazil, Chile, Colombia, Mexico, Peru and
Venezuela.
BUSINESS LINES
venture is currently owned by CESCE (63.12%), the
insurance company Münchener Rück (15.04%) and
the banks BBVA (10.92%) and Santander (10.92%).
CESCE is among the main players in the Latin
American market. By 2016 it expects to consolidate
a leading position in the region in the credit insurance
sector, as suggested by the growing demand.
CESCE IN 2014
access the same solutions and services thanks to its
global operational model.
Latin America
2014 was the consolidation year of the MASTER ORO
system in Latin America, which culminated
In 2014 CESCE launched a joint commercial proposal
in the credit area, which means that all
company customers can
CESCE is present in Latin America via the International
Consortium of Credit Insurers (CIAC). This joint
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PROFILE OF CESCE
with the launch of a full package of improvements
in the service offering: CESCE Classic and CESCE
MASTER ORO.
It was also the starting point for the consolidation
of a solution for financial entities, placing CESCE
well ahead of its competitors in this market niche
in Latin America.
In the guarantees business (bonding, sureties
and performance guarantees) CESCE boosted
its commercial activity to continue to be one of
the main players with global presence in the main
markets in Latin America.
In addition, the company carried out a functional
redefinition of the Commercial Management in
Latin America with the main aim of growth and
development of the group’s business in the region.
FINANCIAL
SOLIDITY
CESCE uses the best international practices of
analysis, measurement and management of
commercial risk. Its capacity to predict future risks
allows it to amply cover technical provisions year after
year, with a significant surplus in its solvency margin,
BUSINESS LINES
The solvency margin surplus at 31
December amounted to €290 million
and accounted for 15.8 times its
minimum quantity
that is, the resources that the company should have
to meet potential future claims situations.
Thus in 2014, in regard to dynamic solvency –
determined by the minimum amount of solvency
margin and its comparison with the amount of own
uncommitted assets, the solvency margin surplus at
31 December reached 290 million euros, equal to
15.8 times the minimum amount of €18.3 million.
In recent years the company has made important
inroads in the control, monitoring and measurement
of its risks, as well as in the preparation of contingency
plans for all risk types in order to meet the standards
set by the European Union in the Solvency II directive.
This initiative, modified in turn by Directive Omnibus
II, will come into force on 1 January 2016, once
the Spanish Parliament passes the Law of Planning,
Supervision and Solvency of Insurance and
CESCE IN 2014
Reinsurance Companies (ALOSSEAR) which will
include the European guidelines in the Spanish law.
The most significant novelties that this law will
introduce include a new calculation method for
solvency requirements, a reinforced governance
system, the unification of information systems
by entities and a new supervision model, offering
more functions for the supervisor, a system of prior
authorisations and the capacity to dictate technical
guides and circulars.
Increase in rating
The company continued to generate confidence
throughout 2014. Standard & Poor’s (S&P) raised the
rating of CESCE to ‘BBB’, from ‘BBB-’, with a stable
outlook, having also increased the rating for Spain
in the same proportion.
The risk rating agency considered that CESCE,
according to criteria that prove its credibility in a
scenario of sovereign stress, has a fair business risk
profile and a moderately strong financial risk profile.
According to S&Ps, the average combined ratio
of 90% recorded during the period 2009-2013 is
remarkable, despite the market difficulties, and it is
expected to oscillate between 93% and 95% during
the period 2014-2016.
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BUSINESS LINES
CESCE IN 2014
CESCE MASTER ORO
Risk
transfer
Market
prospecting
• Pay Per Cover: the customer decides at each time which critical risks he
wishes to insure with the information provided by CESCE.
• Full Cover: the customer insures his entire portfolio and the price of each
transaction shall depend on the debtor’s payment behaviour.
• Spain: Prospecta Data base – 2 million companies.
• Abroad: GRS Global – 220 million companies in 200 countries.
• Country risk: reports, fact sheets.
Risk
Management
• Advanced risk control mechanisms based on statistical models
from the Internet and mobile telephony.
• Specialist consultants.
Immediate
funding
• CESCE Fondo Apoyo a Empresas (CESCE Enterprise Support Fund).
• Insurance Certificates.
• Liquidity Titles.
3.1.2. Commercial
offering of insurance
and credit solutions
CESCE has changed the rules of commercial
insurance, offering companies innovative solutions
and services that meet their main business needs:
customer identification and monitoring, transfer
of commercial risk and financing. These solutions,
marketed in an integral way under the CESCE
MASTER ORO umbrella, can be purchased separately
or jointly with others and can be managed from the
CESNET platform using a variety of devices.
Risk transfer
CESCE offers customers the most innovative and
customised solutions in the insurance market for all
manner of businesses: CESCE MASTER ORO. This
solution offers two risk transfer modalities: Pay Per
Cover and Full Cover. Both solutions cover defaults
of up to 95% of company sales.
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With Pay Per Cover, the customer
is not obliged to cover his entire
portfolio; he may activate cover at
any time
With Pay Per Cover, the customer monitors the entire
debtor portfolio and may activate the coverage of
those risks deemed more critical, as he wishes and
at any time, with no obligation to cover the entire
portfolio. Moreover, CESCE advises the customer in
order to optimise his budget in a personalised “Risk
Transfer Report”.
Full Cover offers customers the most comprehensive
default prevention by transferring the risk of all their
debtors, offering them a cover commitment based
on customers risk. This means offering different
prices for debtors with different behaviours, hitherto
unheard of in the insurance industry.
With both types of cover, the company pays default
compensation within a maximum period of 60 days
as of the reporting of the claim.
CESCE MASTER ORO also adds value added services
that are personalised to the needs of each company,
BUSINESS LINES
CESCE IN 2014
such as the identification of prospects, customer
portfolio monitoring and access to immediate
funding, which can also be acquired separately and
are detailed below.
Customer monitoring
Market prospecting
Finding solvent customers is as important as being
able to control at all times their payment behaviour
to make decisions. CESCE therefore offers its
customers an innovative portfolio control and
monitoring system called Risk Management, which
provides real time information on customer payment
behaviour via any channel of choice (Internet, mobile
telephony).
The search for solvent customers is one of the main
needs for a company to grow in a profitable way.
Aware of the difficulty that this task entails, particularly
in times of crisis, CESCE offers its customers market
prospecting services to enable them to find new
customers both in Spain and abroad.
CESCE customers have access to a list of 2 million
Spanish companies along with the analysis of their
business and company valuation for the purposes of
cover based on the largest data base in the market,
Prospecta. And if the customer wishes to become
internationalised, CESCE offers GRS Global for
searches of potential customers from among over
200 million companies worldwide.
This information is completed with the Country Risk
service, offering the customer studies and analyses
of the risks arising from trade and investment
abroad.
This system is based on statistical decision-making
models tested in different countries, managing
millions of data on hundreds of thousands of
companies and providing an advanced commercial
risk outsourcing mechanism. It also benefits from
the experience of 70 analysts who control the debtor
portfolio.
This system added the Dun Trade service in 2014,
which compares the reality of each company with
that of the competition, the market and the sector,
to help adjust collection and payment periods.
In parallel, the company offers the services of CESCE
Consulting via OneRate, a company belonging to
the CESCE group which allocates a specific rating to
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CESCE Fondo Apoyo a Empresas
offers funding without having to
resort to the banking system by
discounting commercial bills
BUSINESS LINES
CESCE Consulting provides customers with
the OneRate online tool, which includes the
management of credits and collections, adds
Informa D&B financial information and links up to
the credit solution of their customers.
Financing
CESCE supports businesses to obtain liquidity with
innovative solutions that provide access to both
bank and non-bank financing. With a view to helping
them obtain funding from credit institutions, the
company has designed two innovative solutions: the
Titles of Liquidity and the Certificates of Insurance.
Furthermore, it has launched an innovative non-
bank financing formula which enables companies
to obtain liquidity without having to resort to banks
via the CESCE Business Support Fund.
During the year, more than €40 million pertaining
to more than 3500 invoices were financed, equal
to a growth of 280%.
CESCE Fondo Apoyo a Empresas
The Fund grew by 345% in number of funded
businesses, with 300 debtors in 14 countries, which
reflects the extent of the internationalisation of the
solution and the support it brings to export trade. In
the six months that CESCE Fondo Apoyo a Empresas
has been made available to non-customers, more
than 100 customers have been captured and over
€3 million have been financed.
CESCE Fondo Apoyo a Empresas offers financing to
all manner of companies without having to resort to
the banking system by discounting trade invoices.
each company and implements a risk and collection
system.
CESCE IN 2014
Since mid-2014 any company, whether or not a
customer of CESCE MASTER ORO, may access this
funding formula which, among other benefits, does
not use up bank facilities of the company or of the
supplier paying the bills and is not included in the
CIRBE (Bank of Spain’s Risk Information Centre).
The company is able to obtain liquidity within a
maximum of six days as of the time of application.
The transaction is carried out by way of factoring
without recourse, that is, the company shall not be
held liable in any way for the potential insolvency of
the debtor, with the Fund assuming all the default
risk associated with the operation.
In 2014 this financial solution was made available to
non-customers and highlights the interest of CESCE
in providing innovative solutions to businesses in
a market where access to funding at competitive
interest rates becomes a critical advantage.
Thanks to CESCE Fondo Apoyo a Empresas,
the company has become known to different
companies hitherto self-insured which, eventually,
have become customers of CESCE in some credit
cover modality.
The company has created a specific network for the
sale of this solution and formed a customised call
centre to support its customers. CESCE has thus
become one of the first entities to offer financial
solutions purchased online.
In addition to CESCE Fondo Apoyo a Empresas,
the company provides factoring –based solutions,
such as the specific Factoring Policy designed for
financial entities or the collaboration agreements
entered into with the various financial and Latin
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BUSINESS LINES
CESCE IN 2014
CESCE Fondo
Apoyo a Empresas.
The Process:
American companies to provide easy access
to funding to our customers by the issuance
of guarantees. The extent of its relationship
with the financial world is such that CESCE has
been admitted as a member of ASOFACTORING
(Colombian Factoring Association) and of AEF
(Spanish Factoring Association) as another member
along with the main banking institutions.
CESCE continues to work towards both the
consolidation of its various factoring-oriented
solutions and the creation of growth and economic
and financial restructuring alternatives for the
businesses.
The Titles of Liquidity
and Insurance
Certificates help
businesses to obtain
bank funding
Access to bank financing
notified the insurer, maturing within 25 or more
days as of the date of that request, on credits
granted debtors resident anywhere in the world,
simultaneously indicating the financial entity to
be indemnified in the event of default.
Other solutions are exclusively for customers
of CESCE MASTER ORO and provide access to
bank funding. By activating any of the risk transfer
mechanisms -Pay per Cover and Full Cover- the
companies can benefit from the issue of Titles of
Liquidity and Insurance Certificates.
• Titles of Liquidity are documents issued by
CESCE on invoices insured. These titles meet
the criteria of a CESCE personal guarantee for
financial entities, as has been acknowledged by
the Bank of Spain for the purposes of the Basel
II regulations.
• Insurance Certificates are documents that confirm
the existence of cover for specific invoices under
an insurance policy.
CESCE issue Titles of Liquidity upon validation
of compliance with the insurance conditions
and a technical /commercial verification of the
receivables for which CESCE’s customer wants
to obtain the Titles of Liquidity; to date, no other
insurance company offers such services.
This service of Insurance Certificates enables
customers to request certificates for invoices
Application
for support
via the CESNET
platform.
Study and approval
approval process to
issue the Liquidity
Title.
Obtention
of funds
transfer to
the client.
The process takes maximun 6 days.
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3.1.3 Surety
CESCE offers surety insurance to businesses. The
company backs the policyholder before the different
public administrations or the private sector in respect
of the economic liabilities he may be required to
honour as a result of the default on guaranteed
obligations arising from either a contract (works,
supply or provision of services) or from a legal
provision.
The main surety insurance modalities offered by
CESCE are:
BUSINESS LINES
During 2014, CESCE worked on a
global surety project for Europe and
Latin America
Although the trend of recent financial years is
expected to stabilise during 2015, it is worth noting
that in the last quarter of 2014 premiums appeared
to show a certain revitalisation. This, added to the
positive growth and investment prospects in the
economic context, may contribute further towards
the stabilisation of the market in 2015.
Towards a global surety project
- Public tenders (bid maintenance)
- Proper contractual performance
- Advance payments and supplies
- Customs obligations
- Advertising on TV
- Spanish Agrarian Guarantee Fund (Fondo Español
de Garantía Agraria) – FEGA.
CESCE IN 2014
In terms of functional improvements, CESCE
established a model to manage surety monitoring
and standardisation processes, as well as the
functions of each area in claims processing. It also
strengthened the competencies and skills of surety
underwriters and redefined their attributions with a
view to benefiting from global underwriters for the
group.
In parallel, CESCE compiled information from
its subsidiaries to create a global surety product
catalogue, which will be posted on its web page.
At the close of 2014, the global reinsurance unit led
reinsurance contracting for Latin America for 2015,
obtaining remarkable business conditions, such as
special capacities for global surety customers, i.e.,
those who require CESCE services from the various
subsidiaries.
In 2014, CESCE worked on a global surety project for
Europe and Latin America.
From a technical perspective, it focused on the design
and structure of a new systems platform for the
management and administration of surety insurance
in all subsidiaries called SISNET, built on the decisionmaking engine Mazinger. At the end of the year, the
new tool had already been implemented in Spain and
its deployment in Colombia was planned for the first
months of 2015.
In December 2014, the global
reinsurance unit led the
reinsurance sales process for
Latin America for 2015
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3.2
PROFILE OF CESCE
BUSINESS LINES
Spanish Export
Credit Agency (ECA)
Since 1970 CESCE has been
managing political, commercial and
extraordinary risk associated with
the internationalisation of Spanish
companies on behalf of the State .
In 2014, the Spanish Government
established a new regulatory
framework, prior to the sale of
the State’s majority share in the
company, creating the figure of
the Managing Agent of private
capital. After more than four
decades, CESCE has been
designated Managing Agent for
a period of eight years.
Wind farm / MEXICO
© GAMESA EÓLICA
CESCE IN 2014
3.2.1 Regulatory
changes
The year 2014 will go down in the history of
CESCE marked by the legislative changes enacted
throughout the year, which reconfigure the regulatory
framework governing export credit insurance on
behalf of the State. Two new legal texts passed in
2014 constitute the most important change carried
out in the legal framework within which CESCE has
been operating since its creation in 1970.
A clear catalyst of this regulatory change was the
enactment, two years earlier, of Royal Decree
Law 20/2012, which opened up a new way for
the privatisation of CESCE, by removing from the
foundational law (law of 1970) the requirement for
the State to hold a majority share in the capital of the
company. This change of scenario called for a review
of the way in which risks of internationalisation were
covered on behalf of the State, with a view to this
instrument being handled by a private company.
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Consequently, in 2014, the following legal texts were
approved:
• Law 8/2014, of 22 April, on cover on behalf of
the State of the risks of internationalisation of the
Spanish economy, repealing the previous law, Law
10/1970, of 4 July, the foundational law of CESCE.
• Royal Decree 1006/2014, of 5 December,
implementing Law 8/2014. This RD in turn repeals
Decree 3138/1971, which implemented the Law of
1970, as well as all the provisions that comprised the
regulatory framework of export credit insurance on
behalf of the State.
These two measures modify the regulations on
export credit insurance on behalf of the State,
introducing certain significant changes, such as the
following:
- One of the main advantages of the new texts
is that they simplify the regulation of the sector
by implicitly or explicitly repealing all regulations
hitherto in force. We must recall that export credit
insurance with official support is a public instrument
to drive the internationalisation of the national
enterprise and, as such, is a business area that is
highly regulated both on an international scale–
WTO, OECD, EU– and on national level. The original
laws, rules and agreements have evolved over the
BUSINESS LINES
The Law designates CESCE as
Managing Agent for a period no
less than 8 years as of the sale
of the share held by the State
years to adapt to the reality of the sector from time
to time. On a national scale, the result has been an
intricate regulatory framework made up by a broad
succession of laws, decrees and ministerial orders,
which have now merged into two single additional
regulations.
- The Law designates CESCE as Managing Agent,
as of approval and for a period not under 8 years
as of the sale of the share held by the State,
thus guaranteeing the continuity of the system,
irrespective of the identity of the new owner.
- The regulations modify the decision-making system
of the State account. A new Risk Committee on
behalf of the State- an inter-ministerial body- has
been created, chaired by the Secretary of State for
Trade and comprising up to 14 members belonging to
various areas of the administration (Trade, Economy,
CESCE IN 2014
Treasury, Foreign Affairs, Industry, Development,
Agriculture and the Insurance Compensation
Consortium, hereinafter CCS).
This Committee replaces the delegated Committee
of the Management Board, the corporate body
comprising all shareholders, public and private,
but in which only the representatives of the public
shareholder and the company chairman had the
right to vote.
This Committee was created in mid-2014,
immediately after the coming into force of the law,
and has been operating since that time; neither
the change in the membership and the nature of
the decision-making body nor the control of the
activity have affected the flexibility or the frequency
of decision-making in regard to insurance cover on
- In anticipation of a situation of a proprietary agent
working in a private business area, the legislation
requires the separation of the business areas
operated by the managing agent into proprietary
business and business on behalf of the State. The
purpose of this separation is to protect the State
account from any conflict of interest that may arise
in regard to private business, to ensure that the
proprietary account competes on an equal footing
with the rest of market operators and to protect the
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An Internationalisation Risk
Reserve Fund is created with
resources generated by the
insurance business
confidentiality of the information. CESCE undertakes
to achieve all these objectives, guaranteeing at
the same time the utmost management efficacy,
benefiting from synergies, economies of scale and
know-how offered by a sizeable company with
diversified business activity.
- As before, CESCE issues proprietary insurance
cover – that is, the contractual relationship is
established between the Managing Agent and
the insured party- but the State is liable for the
obligations assumed by the Managing Agent. This
principle, already contained in the previous law, is
not only explicitly upheld in the new law, but is in
fact reinforced by the new mechanism that shields
the instrument from any budgetary fluctuation.
In fact, under this new law, an Internationalisation
Risk Reserve Fund has been created, fed by the
resources generated by the insurance business –
BUSINESS LINES
let us recall that since 1996 the net result of cover
is positive-. In addition, the General State Budget
will include the credits to make any necessary
contributions to the Fund should the accumulated
funds prove to be insufficient. This is highly unlikely,
bearing in mind that, in the first place, the net result
of the activity has been positive for 18 consecutive
years; secondly, the claims indemnified each year on
average account for 40% of the premiums collected;
and, lastly, the Reserve Fund has been provided with
an amount which is several times this figure.
- The new regulations guarantee the transparency
of the system in regard to the Administration and
modernise accounting criteria, as well as adapt them
to the new structure.
At the time of drafting this report, the legislation
is fully in force; in addition, the Management
Convention between the State (represented by
the Ministry of the Economy and Competitiveness)
and CESCE (represented by its Chairman) has been
entered into, setting the terms and conditions of the
concession of the management service of cover on
In connection with the aforementioned legislative
changes, the company believes that the new legal
texts help simplify the regulation of the industry.
They also introduce more flexibility, by removing
CESCE IN 2014
The new regulations
guarantee the transparency
of the system in regard to the
Administration and modernise
accounting criteria
from the legislation certain restrictions that were
due to specific situations in time which have now
changed. The new control and decision-making
bodies, which began to operate in mid-2014, have
maintained both the quality and frequency of
decision-making. In short, we trust that the larger
participation by the Administration in managing
insurance cover on behalf of the State, along
with the transparency and greater knowledge of
the day-to-day details of the transactions, will
have a positive effect in driving and using this
commercial policy instrument in favour of the
internationalisation of Spanish enterprises. Lastly,
it is important to mention the relevance of the
Reserve Fund which consolidates the financial
solvency of the instrument and sets it apart from
the State budgets which, additionally, retain the
mechanisms that may be necessary to cover any
potential deviation.
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BUSINESS LINES
CESCE IN 2014
3.2.2 The
faces of CESCE
business
This year, as a novelty in the annual report of
the State account, we are including a section in
which we provide a face to the activity carried
out by CESCE as a manager of this instrument,
presenting a number of projects in which the
official support has contributed towards the
success of the international experience of
Spanish businesses.
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BUSINESS LINES
PHOTOVOLTAIC EQUIPMENT - Italy
ONYX SOLAR ENERGY
CESCE IN 2014
Photovoltaic equipment / ITALY
© Onix Solar Energy
Onyx Solar Energy, S.L.
Exporter
Fondazione Mediterranea Terina
Contracting company
Value of operation
€1.8 million
Type of operation
Sureties for Guarantors
Structure
Sector
Country
Guarantor
Term
CESCE Cover
Charged against the Surety Line for SMEs
Photovoltaic equipment
Italy
Banco Sabadell
7 months
Cover of credit from enforcement of prepayment guarantee
In May 2014, Onyx Solar Energy, S.L. entered into an agreement with Fondazione Mediterranea
Terina (Italy) for the refurbishment of two of its plants including the design, supply and installation
of structures and photovoltaic innovative items, which included:
- Passable photovoltaic paving.
- Roof of inner courtyard in the shape of a photovoltaic skylight.
- Connection walkway between the two plants with a mixed wall-curtain-canopy system, closed
siding in heat insulated glass and coloured glass roof.
- Access stairway to plant in steel and glass with coloured glass roof.
- Photovoltaic parking with intelligent mobility.
In June 2014 CESCE underwrote a Guarantor Surety Enforcement Risk Policy to cover the credit arising
from the enforcement of the prepayment guarantee of the contract.
Onyx Solar Energy S.L. is a company specialising in the development of innovative solutions for
photovoltaic integration in buildings, for which it has earned awards on several occasions.
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BUSINESS LINES
CESCE IN 2014
Wind farm / TURKEY
© Acciona
WIND FARM - Turkey
ACCIONA WINDPOWER
Acciona Windpower, S.A. (from the Acciona group)
Exporter
Debtor/Buyer
ZT Enerji Elektrik Uretim Ve Ticaret S.A.*
Guarantors
- Zafer Taahhut Insaat Ve Ticaret S.A.
- Akbank Tas
Value of operation
Contract: €56 million
Buyer credit: €21.056 million
Type of operation
Buyer credit
Term
7 years
Structure
Sector
Closing date
Country
Lending bank
CESCE cover
Corporate risk
Renewables (wind)
3 December 2014 (signature of Policy)
Turkey
BBVA
Political and commercial risk cover
In December 2014 CESCE underwrote a Buyer Credit Insurance Policy with BBVA providing the
political and commercial risks cover of a buyer credit with a repayment term of 7 years, used to
partially finance a contract whose overall value is slightly above €56 million for the turnkey supply
and installation of 19 AW 125/3000 wind generators with 3 MW power in the Çerçikaya wind farm in
the province of Hatay, south Turkey.
The supply will be made by Acciona Windpower S.A., subsidiary of the Acciona group specialising in
the design, manufacture and sale of wind generators which, as well as supply, shall provide the
assembly and maintenance service for a period of 10 years at the 57 MW wind farm owned by the
Turkish company ZT Enerji Elektrik Üretim Sanayi Ve Ticarte S.A. (Zafer Group) with whom Acciona
Windpower entered into an export contract at the end of 2013.
(*) Parent company: Zafer Taahhut Insaat Ve Ticaret S.A.
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BUSINESS LINES
TRAINS - Italy
ROME UNDERGROUND METROPOLITAN
RAILWAY- CAF
Exporter
CESCE IN 2014
Trains / ROME
© CAF
CAF
Debtor/Buyer
City Council of Rome
Value of the operation
€113.43 million
Type of operation
Supplier credit policy
Term
Over 2 years
Sector
Transport
Closing date
Country
CESCE Cover
26 February 2014 (signature of Policy)
Italy
Political risk cover
The Spanish company Construcciones y Auxiliar de Ferrocarriles, S.A. (CAF) has been
executing throughout 2014 – and expected to be completed in 2015 – a contract entered
into with the City Council of Rome of over €113 million, for the design, manufacture and
supply of several trains, each of several passenger cars, and maintenance for use in the
underground railway of Rome.
The new train units shall be running along line B of the Rome metro and the new north
extension of this line (B1).
This contract consolidates a commercial relationship of CAF with Italy that dates back several
years, not only with the City Council of Rome to whom CAF has supplied several trains – still in
operation-, but also with other regions in the country to whom CAF supplies trains.
In February 2014, the CESCE supplier credit policy came into force, granting CAF cover against risk
of default of the contract by the City Council of Rome.
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CESCE IN 2014
TELEPHONE NETWORK - Angola
HOMT ESPAÑA
HOMT España, S.A.
Exporter
Republic of Angola
Debtor
Angola Telecom
Buyer
Value of operation
Contract: €189,9 million
Buyer credit: €75,06 million
Type of operation
Buyer credit – sovereign risk Rep. of Angola
Term
8,5 years
Structure
Buyer credit with CESCE cover
Sector
Closing date
Country
Agent bank
Lenders
CESCE Cover
Telecommunications
28 April 2014 (signature of Policy)
Angola
Deutsche Bank, SAE
Deutsche Bank SAE, Caixa Bank,
Crédit Agricole CIB, Société Générale
Political risk cover
In April 2014 a policy was entered into under which CESCE, for 8.5 years, will cover the risk of
default, via a buyer credit to the Republic of Angola, of a contract of €189.97 million between
HOMT España, S.A. and the public Angolan telephone carrier, Angola Telecom.
The contract consists of Phase II of the project – Phase I was implemented by HOMT between
2008 and 2010- and its objective is to offset the enormous deficit in infrastructures in the
telecommunications sector accumulated during the years of conflict this country has undergone.
The aim is to provide the carrier - Angola Telecom, which provides the universal telephony service
to the country - with a modern broadband network for all customer operations, access network,
transport, information technology, services, civil works…
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LINE 2 OF THE LIMA UNDERGROUND
METROPOLITAN RAILWAY – Peru
FCC
BUSINESS LINES
CESCE IN 2014
Line 2 of the Lima Metro / PERU
© FCC
FCC, S.A., in a consortium with other Spanish companies
Exporter
Ministry of Transport and Communications of Peru
Contracting party
97 million dollars
Value of operation
Type of operation
Sureties for Guarantors
Structure
Sector
Country
Guarantor
Term
CESCE cover
Charged to Syndicated Surety Line
Transport
Peru
BBVA, Banco de Santander, Caixa Bank
5 years
Cover of credit arising from enforcement of
performance bond
The consortium led by ACS and FCC has secured the contract for the design,
construction, funding, operation and maintenance of Line 2 of the Lima Metro and
a branch of line 4 linking to the airport, for the amount of 4,530 million dollars.
The project consists of the construction of 35 underground metro stations along
35 kilometres of tunnels. Over 3000 workers will be employed in the works.
The CESCE cover has allowed FCC, S.A. to meet its guarantee requirements
to carry out the project.
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CONSTRUCTION OF SUPPORT SHIP - EE.UU.
METALSHIPS
Exporter
BUSINESS LINES
CESCE IN 2014
Support ship / EE.UU.
© METALSHIPS
Metalships
Buyer
Grupo Mcdermott
Value of operation
Contract: €79 million
Type of operation
Term
Issuing bank
Sector
Country
CESCE cover
Repayment Guarantees issued by BBVA
2 years
BBVA
Naval
United States
Cover for Guarantors – risk of Guarantee enforcement
On 9 September 2014 Metalships delivered the “Lay vessel 108” to the American group
Mcdermott. The christening and launch of the ship took place in Vigo at the shipyards owned
by Metalships.
The ship building contract was entered into on 27 June 2012 for a price of €79.2 million. This is
an offshore support ship for oil platforms, specifically laying underwater pipelines. The vessel,
132.4 metres long and 108 tons in gross tonnage, is able to carry a crew of 129 people.
CESCE has participated in this project by insuring the repayment guarantees issued by BBVA
which, for the amount €55.1 million, guarantees the building and delivery of the ship to the
shipowner. The ship was delivered on the date agreed in the construction agreement, thus
releasing the repayment guarantees issued by the financial entity and insured by CESCE.
The American group Mcdermott has already bought 3 ships from this shipbuilder and given the
positive experience of both parties this will probably not be the last.
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CONSTRUCTION OF WIND FARM- Mexico
GAMESA
Exporter
BUSINESS LINES
CESCE IN 2014
Wind farm / MEXICO
© GAMESA EÓLICA
Gamesa Eólica S.L.
Debtor
Enel Greenpower SPA
Value of operation
104.4 million dollars
Type of operation
Sector
Closing date
Country
Lending bank
CESCE cover
Buyer credit
Energy/Renewable energy
12 /2014
Mexico
Banco Santander
Buyer Credit Policy Cover
In December 2014 a Buyer Credit Policy was agreed whereby CESCE provides cover
to Banco Santander against the political and commercial risks 99% associated to the
funding of a contract entered into between the Spanish exporter Gamesa Eólica S.L.
and the Italian company Enelgreen Power Spa via its Mexican subsidiary Dominica
Energía Limpia S. de RL de CV.
The purpose of the contract is the supply of wind generators and the construction of a
100MW wind farm in Charcas, in the State of San Luis de Potosí (Mexico).
The operation has been carried out subject to the special conditions set by the OECD for
renewable energy projects.
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CESCE IN 2014
3.3
Information and services
CESCE offers its customers
information and services via
its subsidiaries Informa D&B
and CTI. Informa D&B is the
leader in Spain, Portugal and
Colombia providing information
on companies for companies,
with online information on over
240 million entities. CTI, on the
other hand, provides business
process outsourcing services
and technological solutions.
Both subsidiaries operate as a
strategic supplier for the parent
company CESCE and support
its innovative credit insurance
and financing system.
Informa D&B is the leading company in the supply
of commercial, financial and marketing information
to increase customer and supplier knowledge and
minimise commercial risk.
The company, created in 1992 as strategic supplier
of its parent company, CESCE, works jointly with the
latter to create global credit solutions and provides
its customers online information on more than 240
million companies worldwide.
It is the only Spanish company to offer its customers
online access to the international Dun & Bradstreet
data base: the D&B WorldBase, the largest
commercial, financial and marketing data base in
the world.
In Spain, the data base of Informa D&B is fed by public
and private information sources, like the Official
Gazette of the Companies Register (Boletín Oficial
del Registro Mercantil), Official Account Deposits
(Depósitos de Cuentas), Official State Gazette
(BOE-Boletín Oficial del Estado) and provincial and
regional gazettes, national and regional press, ad
hoc research and various publications.
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CESCE IN 2014
National data base
of Informa D&B
Supporting innovation
6,4million
3,4million
national economic agents
rated active companies
and independent professionals
11,8million
13,2million
Over
company balance sheets
Over
administrator positions
The leadership of Informa D&B is based on the intense
purchase of all available business data, the quality
in processing such information, the continuous
improvement of its company analysis and rating
systems and a constant pursuit of innovation in the
design of new products and services.
It was the first European company and second
company worldwide to market its commercial
information services via the Internet in 1996;
however, despite being a company that bases its
success on the online world, it does not neglect
personalised human relationships. As such, it has
the largest commercial network in the sector,
including 15 branches in Spain.
In 2014 Informa D&B became the first company
in the commercial information sector to
launch an Online Reputation Report to inform
on the Internet positioning, online and social
media presence of Spanish companies.
During the year, the company launched
two new types of reports. On the one
hand it launched Informa Estratégico, the
first report on companies in infographic
format, containing on less than four
In 2014 Informa D&B became
the first company in the sector
to provide an Online Reputation
Report
pages all the essential information on a company.
On the other hand, it launched the Full Administrator
Report, providing a full view of business relationships
via the company’s administrators.
In recognition of its efforts as a socially responsible
company, Informa D&B was included in the list of
Best Workplaces 2014, which means it is considered
one of the 50 best companies to work for in Spain
according to the prestigious international consulting
firm Great Place to Work.
CTI: outsourcing business processes
In 2014 CTI maintained its business model focused
on Business Process Outsourcing (BPO) and
technology, strengthening its specialisation in
information processing and payment systems, as
well as in commercial credit management.
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On 3 July 2014, CTIO acquired
all the shares in the company
OneRate Consulting
Its commercial activity operates according to a
mixed strategic approach: on the one hand, oriented
towards the whole of the market with a multisectorial approach and, on the other, increasing
the benefits for CESCE group companies, both in
terms of back-office support and provision of value
added services.
Earlier developments in respect of the Cash Flow
Management Optimisation Tool as a proprietary
technological solution began to yield results and
fulfil commercial expectations during the year.
Likewise, the developments and negotiations in
support of the FACTA project, headed by Informa
D&B, will be generating business in the short term.
FACTA is a company classification algorithm to
ensure compliance with US legislation by financial
entities.
BUSINESS LINES
Also worth mentioning is the continuous increase
year after year in telemarketing services provided in
close collaboration with Informa D&B.
Likewise, equally worthy of mention is the
c o n s o l i d a t i o n o f t h e a c c o u n t s re c e i v a b l e
management services that, as specialisation
increases in relation to commercial credit, provide
significant support to CESCE’s bank and non-bank
funding solutions , as well as direct and specialised
services on the market.
OneRate Consulting
On 3 June 2014 CTI acquired all of the shares in
the company OneRate Consulting SL, except for a
shareholding purchased by Informa D&B.
OneRate uses a high added value credit management
model and proprietary supporting software to enable
self-governance by companies of their commercial
credit and risk management processes.
The acquisition of OneRate is part of a strategic
decision made at group level, having considered
the value it adds to all its companies, particularly in
regard to the strategic approach of CESCE.
Finally, on 17 December 2014, CTI considerably
increased its capacity to provide service to CESCE
CESCE IN 2014
The purchase of OneRate
adds value to all group
companies and is particularly
relevant for CESCE
and to Informa D&B by assuming the Helpdesk and
Microcomputing services for both companies, and
the CESCE Customer Service Centre.
New distribution of shares
The Ordinary General Meeting of 23 April 2014
decided to increase the equity capital of CTI by
€1,200,000, contributed in full by Informa D&B via
the acquisition of 374,706 new shares with an issue
premium of €825,294.
As a result of the foregoing, the share capital was
composed of 872,370 shares, each with a nominal
value of one euro, all carrying the same rights and
fully paid up, divided into 627,706 shares (71.9541%)
for the shareholder Informa D&B and 244,664 shares
(28.0459%) belonging to CESCE.
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4
BUSINESS LINES
CESCE IN 2014
CESCE
IN 2014
4.1 ECONOMIC ENVIRONMENT
4.2 PERFORMANCE IN THE YEAR
4.2.1 Credit and surety insurance solutions
4.2.2 Spanish Export Credit Agency (ECA)
4.2.2.1 Insurance on behalf of the State statistics
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CESCE IN 2014
4.1
Economic scenario
The world economy maintained
a slow growth rate in 2014
(3.3%) due to the deceleration
of emerging countries and a
still inconspicuous behaviour
by most developed countries.
Although the figure is identical
to that of the previous year,
many things have changed in
the world economy during this
past year.
Not only have certain
extraordinary events taken place,
such as the sharp drop in oil prices,
the Russian crisis or the rise of the
Islamic State; a fundamental change
also seems to be taking place on a
world macroeconomic level, which
is becoming further removed from
the picture of a uniform block of
emerging countries growing at high
rates and another block of developed
countries with almost zero growth,
which had hitherto served to describe
most of the decade. Indeed, growth
in both blocks – which are becoming
increasingly less homogeneous in their
development – is rapidly drawing closer.
The difference in the growth rate between
emerging and developed countries in
2014 was less than 2%, the lowest since
the year 2000.
China continues to curb its expansion rate,
which is causing a downturn in growth
of most developing countries that had
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BUSINESS LINES
benefited in the last decade from the high prices
of commodities. By contrast, the U.S. has shown
rising dynamism. It has put an end to its monetary
stimulus policy and may even go as far as raising
interest rates by mid-2015. This leads us to wonder
whether the deceleration of the Chinese economy,
the transformation of its growth model and the
impact thereof on commodities shall bring about a
definitive change in the rest of the world; or whether,
on the other hand, we are entering into a phase of
stagnation, where the inability to boost consumption
and investment in developed countries, added to the
low growth rate of the rest of economies, will lead
to a period of protracted sluggishness.
or the instability in the Middle East. On the positive
side, we must mention the sharp drop in oil prices
which, although harmful for producing countries,
could help increase world growth over and above
expected levels in the next few years.
The performance of world trade, still disturbingly
low, is a negative symptom. The slowdown in
emerging countries had led to an anaemic growth
in trade in recent years, even below the growth of
global GDP: in 2013 it only grew by 2.1% and in 2014,
by a mere 3.1%. An upturn in trade of around 4% is
expected by 2015, in line with the likewise expected
improvement of world economic growth which the
IMF estimates to be of 3.5% in 2015 and perhaps of
3.7% in 2016. Nevertheless, this prognosis depends
to a large extent on the capacity of the recovery in
developed countries to offset the slowdown in the
rest of the world, and is also exposed to certain risks
arising from factors such as the permanent crisis in
the Eurozone (Greece), the conflict in the Ukraine
It is becoming increasingly difficult to speak of
developed countries as a whole, given the growing
differences in the performance of each one. The
most evident case, and the most favourable, is that
of the U.S. which is beginning to show significant
growth rates and might even exceed the rate of
world economic expansion in 2015 (a rate of 3.6%
is expected, compared to 2.4% of 2014 as a result
of an exceptionally difficult winter). On the other
hand, Europe continues to show alarmingly low
growth rates (0.8% in 2014). Some countries are
even at the risk of undergoing a new recession,
within a general deflationary framework, which
has eventually forced the European Central Bank
to implement its quantitative easing policy, similar
The performance of world trade,
which continues to be disturbingly
low, is a negative symptom
CESCE IN 2014
to that carried out by the U.S in recent years. All
in all, the Eurozone economy is expected to grow
a little in 2015 (1.2%). On its part, last year Japan
implemented its own stimulus plan as part of the
Abenomics programme, although the results to date
have proven somewhat disappointing. The Japanese
economy hardly grew in 2014 (0.1%) and a growth
of a mere 0.6% is expected in 2015.
Consequently, whereas the Federal Reserve is
expected to raise interest rates by mid-2015, both
the ECB and the BOJ will maintain an intense policy
of quantitative stimuli of uncertain results, which
sets a very different macroeconomic scenario for
the large economies of the OECD, which will also
have a considerable impact on the rest of the world.
Drastic changes have already been observed in 2014
in the currency and capital markets, with a strong
appreciation of the dollar against the euro (-12%)
and the yen (-15%), which is expected to continue
throughout 2015. The rest of emerging currencies,
with the exception of the renminbi given its
pegging to the US currency, have also depreciated
dramatically against the dollar, albeit not only as
a result of the expected rate increases, but also
due to the deterioration of their own fundamental
parameters. Thus, most of the emerging countries,
from having to experience a deterioration of the
crisis, have been forced to raise interest rates and
contain public expenditure. Consequently, the
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CESCE IN 2014
Growth rates
In percentages
2013 2014 2015p 2016p
World
3,3
3,3
3,5
3,7
Advanced
economies
1,3
1,8
2,4
2,4
USA
2,2
2,4
3,6
3,3
Germany
0,2
1,5
1,3
1,5
Japan
1,6
0,1
0,6
0,8
Spain
-1,2
1,4
2,0
1,8
Emerging
economies
4,7
4,4
4,3
4,7
Russia
1,3
0,6
-3,0
-1,0
Asia (emerging countries)
6,6
6,5
6,4
6,2
China
7,8
7,4
6,8
6,3
India
5,0
5,8
6,3
6,5
Latam
2,8
1,2
1,3
2,3
Brazil
2,5
0,1
0,3
1,5
Mexico
1,4
2,1
3,2
3,5
Middle East
2,2
2,8
3,3
3,9
Sub-Saharan Africa
5,2
4,8
4,9
5,2
As for Spain, the economic
recovery that began at the end of
2013 has been confirmed in 2014
paradigm of world growth is changing: it is crucial in
the coming years that the growth in the US and the
European recovery are not adversely affected by
the poor performance of emerging countries and
are capable, moreover, of offsetting the greater
weakness of China and of countries affected by
the drop in commodities’ prices.
Important differences have also been observed
among emerging countries. On the one hand,
China, where the authorities seem determined
to control the financial excesses of the past,
grew by 7.4%, the lowest in more than two
decades. In 2015-16, it is estimated to
continue to grow below 7%. On the other
hand, countries such as India and Indonesia,
following a difficult 2013, experienced a
considerable upturn last year; India could
go as far as exceeding the Chinese growth
rate in 2016. The same is happening in
other regions, such as Latin America
or Africa, with a general slowdown but enormous
disparities. As expected, on the negative side there
are countries with an extreme dependency on
commodities, such as Venezuela or Russia. The case
of Russia, moreover, is aggravated by the diplomatic
crisis with the EU and the US, stemming from
the civil conflict in the Ukraine. A similar pattern,
however, is being observed in all regions: the
countries most dependent on commodities exports
are the ones that have suffered a more dramatic
deterioration, and those who have maintained more
prudent economic policies now have more room
to manoeuvre global demand.
In regard to Spain, the economic recovery that
began at the end of 2013 has been confirmed.
Practically all indicators show a positive trend.
The recovery of internal demand is particularly
remarkable, having replaced the foreign sector as
the driver of economic reactivation and, in particular,
that of private expenditure, encouraged by improved
confidence, the increasing normalisation of financial
terms (which has led to less expensive loans) and
the gradual recovery of the employment market.
Indeed, the drop in credit volumes has been
moderate and the improvement of the financial
situation of households continues: the debt and
financial burden ratios in relation to disposable
income continue to narrow. There is even a slight
: FMI
Source
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CESCE IN 2014
4
Domestic demand
2
External sector contribution
0
Interannual GDP rate
-2
-4
-6
Contributions to
GDP growth
-8
-10
In percentage
: Bank
e
Sourc
in
of Spa
recovery in the building sector, thanks to a higher
growth rate of the non-residential element.
All this has led to a growth in GDP of 1.4% in
2014, which even exceeds the Eurozone average
which, despite being moderate, is contributing
2009
2010
2011
towards a considerable rate of job creation. The
unemployment rate in December was 23.7%, which
is two percentage points less in one year, equal to
477,900 fewer unemployed citizens.
As a counterpart to this recovery in domestic
demand, the balance of trade had begun to
deteriorate. In 2014, exports in real terms grew
by 3.5% with a growth in imports of 8.3%, which
closes the year with a consumer goods deficit of
some €24,470 million. It is estimated that Spain,
2012
2013
2014
from a surplus of 1.4% in GDP in 2013, has closed
2014 practically in equilibrium or at a slight deficit.
This is still a positive result; moreover, this trend
has been corrected during the second half of the
year as result of the fall in oil prices (actually, since
May of 2014 Spain has begun to register financing
capacity in the balance of trade). The drop in oil
prices is undoubtedly excellent news, along with
the depreciation of the euro and the recovery of
domestic demand. Forecasts suggest that Spain may
grow over and above 2% in 2015.
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CESCE IN 2014
4.2
Performance in 2014
In 2014 CESCE confirmed the solidity of its business model with a growth in after-tax
profits of 65.4%, reaching €43.5 million. This result, the second best of its history, accounts
for a margin over acquired premiums of 29%. The pre-tax profit was €55.8 million
(+61.3%) whereas the technical profit was €50.4 million (+143.5%). The
significant improvement in results is the consequence of
a reduction in claims, having reached 28%.
Technical result,
profit before tax and profit after tax
In millions of euros
50,4
(*) 2013 data restated for comparison purposes
55,8
43,5
34,5
34,6*
27,4
26,3*
20,7*
17,5
2012
Technical result
2014
2013
Profit before tax
Profit after tax
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4.2.1. Credit and
surety insurance
solutions
In a scenario of strong price competitiveness, in 2014
CESCE once again proved its technical strength and
managed to achieve its main business targets.
The combined ratio of direct insurance – the
indicator measuring the technical profitability of
non-life insurance policies – went from 84% to 57%,
keeping under the 95% threshold for the fifth year
running. This result is one of the best in the market.
BUSINESS LINES
The loss rate over premiums fell to
28%, well below the set target
CESCE IN 2014
amounted to €93.7 million (-9%), direct insurance
policies signed by European branches reached 10.4%
and the premiums accrued from surety insurance
amounted to €6 million.
Earned premiums (premiums accrued after end of
period adjustments) in direct insurance amount
€151.3 million, 10.6% less than the previous year.
model, CESCE restructured this segment. This
measure, however, led to the loss of some customers,
with the ensuing reduction in premiums accrued
in the year of 10.8%. However, it is worth noting
that the number of policies remained practically the
same as that of the year before.
In addition, the company has not had any claims
of significant amounts that have required the
application of the aggregate excess loss reinsurance.
The claims ratio fell to 28%, well below the expected
target and that recorded for 2013 of 59%. Two factors
are the main reasons for this significant drop: on the
one hand, a reduction in delinquency due to more
favourable economic conditions; and, on the other,
the measures implemented by CESCE to improve
its risk decision-making models.
Premiums
In an effort to reduce the recurring claims from large
customer policies and adapt them to its business
Thus, the premiums linked to export credit reached
€36.1 million (-15%); the domestic credit premiums
From the total amount of direct insurance premiums
accrued, which fell by 10.8% to €146.2 million, 25%
pertain to export credit, 64% to domestic credit ,
7% to premiums sold by the branches in France and
Portugal and the remaining 4% to surety insurance.
The drop in premiums had taken place amid a
general downturn in commercial insurance prices,
in which the company has managed to maintain
its policy portfolio practically unchanged, mainly
due to its marketing strategy, based on increasing
customer knowledge in order to provide a solution
to problems throughout the business cycle.
In 2014, CESCE redefined its customer relationships
by developing its Customer Experience strategy,
in an effort to go beyond customer satisfaction
offering a global, positive and differentiated
experience.
The company thus consolidated its solutions and
services under its sales offering CESCE MASTER
ORO. Aside the launch of CESCE Classic, designed
for customers who only demand insurance cover,
it improved its monitoring services by acquiring the
company OneRate Consulting. As a result of this
strategic acquisition, CESCE customers now have
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Insurance issued
on own account
PROFILE OF CESCE
30.069
27.830
23.258
CESCE IN 2014
Earned premium
income
164,9 169,2
2012
Claims
ratio
BUSINESS LINES
66%
In percentage
2013
2014
2012
Net
equity
59%
2013
373,1
151,3
2014
399,4
319,0
28%
2012
2013
2014
2012
2013
2014
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an online tool, which provides the management
of credits and receivables, includes the financial
information of Informa D&B and links up to the
credit solutions of its customers.
Throughout the year, CESCE also consolidated its
funding solutions with financial entities, by issuing
Insurance Certificates and Titles of Liquidity. In
addition, it further secured the solution CESCE
Fondo Apoyo a Empresas in the market, a
flexible alternative for obtaining liquidity via a
non-banking channel using bills discounting
without recourse, available since mid-2014 to
non-customers.
Claims
Total claims from direct insurance and
accepted reinsurance (figures of little
significance), have reached €45.2 million
in 2014, 55% less than the year before.
On its part, total claims in 2014, net of
ceded reinsurance and including internal
expenses allocated to benefits or claims,
reached €40.3 million, 47% less than the
previous year.
In addition to the abovementioned
causes, the reduction of claims over
CESCE IN 2014
The claims over
premium ratio fell to 28%,
well below the set target
premiums, having reached 28%, is the result of
the gradual fine-tuning of the risk prediction tools
that allow the company to anticipate and adjust
decision-making, marketed under the name of Risk
Management.
Capital and solvency
The net equity of CESCE at 31 December 2014
amounted to €399.4 million, compared to €373.1
of the previous year, which confirms yet again the
growing financial solidity of the company.
In terms of static solvency, represented by
calculating technical provisions, CESCE has ample
surplus cover of €344.4 million, representing 178%
of total technical provision.
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PROFILE OF CESCE
CESCE has a surplus cover of
€344.4 million, representing
178% of total technical
provisions
As for dynamic solvency, determined by the
minimum solvency margin and its comparison
with uncommitted equity, at 31 December CESCE
continued to report a significant surplus in its
solvency margin, amounting to 290 million euros
and representing 15.8 times the minimum amount
of €18.3 million.
While the new EEC rules on technical requirements,
minimum capital requirements and solvency of
insurance companies known as “Solvency II” are
being agreed, drafted and enacted - expected to
come into force in 2016 – the current EEC rules
(Solvency I), which are incorporated into Spanish
legislation, are being applied; these refer to the
calculation and cover of technical provisions (static
solvency) and the solvency margin and guarantee
fund (dynamic solvency).
CESCE IN 2014
BUSINESS LINES
Meanwhile, capital gains accrued
in the financial assets portfolio of
CESCE amounted to €65.5 million
and have increased by 17% over those
of the year before. Of this amount,
€44.6 million pertain to equity in nongroup and non-associated companies
and €20.9 million pertain to debt
securities.
Tax deductions for R&D&I
Throughout 2014, CESCE continued with
its R&D&I strategy, clearly focused on
innovation and the continuous improvement
of the technology used. The projects started in
the year have been fundamentally customerfocused, and include the development of
tools and information designed to improve
commercial decision-making and the
development of new products to meet
market needs. In addition, CESCE continued
to pay special attention to the optimisation
of internal process in order to ensure cost
savings and improved efficiency. This effort
earned CESCE certain tax deductions, as
part of the investments made had been
recognised as technological innovations.
Coverage of technical
provisions and solvency
margin
Number of times
maximum amount
(left axis)
Surplus coverage of
technical provisions
– percentage
(right axis)
200%
20
18
15,8
16
150%
14
12
10
XXX
100%
XXX
8
6
50%
4
2
0
0
2012
2013
2014
52
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PROFILE OF CESCE
4.2.2. Spanish Export Credit Agency (ECA)
In 2014 export trade of Spanish companies showed
a steady development. Access to funds – which had
been practically impossible at the hardest times
of the period 2011-2013 – has begun to recover.
Liquidity problems appear to be a thing of the past
and the price of funds has begun a downward trend
that seems not to have yet reached its lowest ebb.
It is true that the interest rates applied in Spain to
export credit have not reached the levels observed
in more northerly countries with AAA or AA ratings.
Nevertheless, the spreads have been dramatically
cut and continue to do so. We believe that we can
begin to speak of the normalisation of the sector
after the severe crisis that begun in the second half
of 2011.
Insurance contracting managed by CESCE on
behalf of the State reflects this recovery, albeit not
at an aggregate level, it has improved in terms of
transactions insured. In fact, although the level of
BUSINESS LINES
insurance issued in 2014 is almost identical to that
of 2013, there is an important qualitative difference
– perhaps suggestive of a change of direction – in
the breakdown by modalities, showing an increase
of 20% in buyer credit, compared to a slight decline
in all other modalities.
Insurance contracting on behalf of the State has
shown very similar levels to those of the year before,
clearly far from the extraordinary levels reached in
2009-2011. Insurance contracting has now reached
pre-crisis levels.
The value of the insured transactions has continued
to drop, having reached around €5,400 million in
2014. This figure reflects the aggregate value of
all export contracts that have benefited from the
insurance provided by the State.
Insurance issued has risen to €4,134 million, of which
a little more than half pertains to whole-turnover
policy modalities where cover on behalf of the State
is confined to political or catastrophe risks, whereas
commercial risks are covered by insurance policies
issued on its own behalf.
In this regard, we must mention that CESCE no longer
covers risks on behalf of the State and proprietary
risk in one single insurance contract. The provisions
of Law 8/2014 and Royal Decree 1006/2014, on the
CESCE IN 2014
Insurance contracting on behalf of the
State has shown very similar levels to
those of the previous year
separation of public and private activities of CESCE,
have put an end to this practice.
Excluding whole-turnover policy modalities,
insurance issued in 2014 has amounted to €1,680
million, almost the same as that of the year before,
only 1% down from 2013. We must recall that the
Spanish General State Budget Law established an
annual limit of €9,000 million on contracting of new
transactions (excluding whole-turnover policies).
This time, the previous year’s trend has been
reversed: Buyer Credit has risen by 20% whereas
the rest of modalities have dropped.
Portfolio performance is also reflected in the level
of premiums accrued, which reached €75.4 million
in 2014, almost identical to that of the year before.
The evolution of premiums actually collected in
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PROFILE OF CESCE
the year, including premium contracted in previous
years payment of which had been deferred and was
collected this year, has been quite different. A total
of €105 million has been collected, much higher
than that of accrued premiums and well above the
trend of the last two years.
BUSINESS LINES
Insurance contracting has returned to
pre-crisis average levels
CESCE IN 2014
returned to pre-crisis average levels. And amid this
return to normality, buyer credit has once again
become the most popular modality – at least in
terms of insured amounts, with 58% of insurance
issued in individual policies, compared to 32% in
sureties.
Aside from this accounting circumstance, both
insurance contracting and premiums collected have
6.575
Insurance issued
State Account
139,3
Premiums accrued
State Account
72,5
75,4
2013
2014
4.676
4.134
3.043
1.696
Insurance issued excluding
whole-turnover policy
1.680
2012
2012
2013
2014
54
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PROFILE OF CESCE
Buyer Credit insurance issued
amounted to €972.5 million,
20% over 2013
BUSINESS LINES
Bonding
Buyer credit
CESCE offers two types of bond coverages:
The performance of Buyer Credit is determined to
a large extent by the funding banks offer to finance
Spanish sales and also depends on the perception
of risk at any one time by the entity assuming the
risk. The offer of funding has experienced a steady
decline in recent years, reflected in the contracting of
this type of cover. The trend seems to be changing,
increasing this year for the first time after two years
of continuous decline.
In 2014 Buyer Credit insurance
issued has risen to €972.5 million,
an increase of 20% over the year
before. This figure does not include
one large contract structured as
Project Finance which, had it been
formalised in the year, would have
increased the total contracting figure
by an additional 40%.
Below is a description of the activity by cover
modality.
• Insured party: financing bank
• Bank product: credit for foreign buyer of
Spanish goods and/or services
• Risk covered: the risk of default on the credit
by the foreign debtor, or his guarantor, as the
case may be.
CESCE IN 2014
• Exporters bond insurance covers
t h e o r d e re r a g a i n s t t h e i m p r o p e r
enforcement of the bond or enforcement
due to the suspension of a contract as a
consequence of events of a political or
catastrophic nature.
• Guarantors bond insurance covers the
issuer of a bond, surety or guarantee against
the exporter’s default on the credit arising in
the event of enforcement of the guarantee.
The extraordinary demand for bond insurance
policies during the first years of the crisis has
declined in the last two years. However, it
continues to be the second most demanded
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PROFILE OF CESCE
BUSINESS LINES
CESCE IN 2014
Bond facility
for SMEs
1.
2.
Amount of facility:
up to 100 million euros.
Characteristics of beneficiaries:
Companies:
- With sufficient capacity to execute the project
and with technical references.
- Undergoing an internationalisation process.
Simultaneously meeting one of the two following
criteria:
modality and everything seems to
suggest that it will remain one of the
main products in CESCE’s portfolio for
some time.
In 2014 policies have been issued
amounting to €531 million. Unlike
previous years, this figure does not refer
to one or two single transactions; it is
the result of 42 separate transactions
of different sizes, purposes and sectors,
including the sale of ships, renewable
energy projects, SME subcontracts in
various sectors, etc.
- Balance sheets affected by the crisis of the
domestic market.
SME figures
- Recently created with limited access to bank
credit.
In mid-2013, at instructions from the
Administration, CESCE launched an
insurance line geared mainly to SMEs
undertaking international expansion
processes that were facing difficulties
in obtaining bonds as a result of their
small size, their lack of experience in
foreign trade or their balance sheet
following the crisis. Always based
on prudent insurance practices,
underwriting facilities and criteria
have been made more flexible in
order to help these businesses to
3.
Coverage percentage: 50%. Larger percentages
on a case by case basis.
4.
Types of bonds: any related to an export
contract (i.e. bidding, advance payment,
compliance, guarantee...).
Since the launch of the Bond Facility
for SMEs, cover has been offered to 52
enterprises, for an aggregate value of
€66.5 million
obtain bonds without which their international foray
would have been impossible.
Since the launch of the bond facility, cover has
been offered to 52 enterprises, at an aggregate
value of €66.5 million. Of these, 20 projects have
come to fruition totalling €23 million, with 11 offers
outstanding for an additional €16 million, resulting
in current risk at the end of 2014 of €39 million –
pertaining to 31 transactions.
The breakdown by sector is very diverse and
includes water and renewable energy projects,
construction, construction materials and equipment,
environmental consultancy and many others.
Other types of insurance
The issuance of other insurance modalities has
suffered a sharp decline. Supplier credit has dropped
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BUSINESS LINES
CESCE IN 2014
Distribution of insurance
issued by country
The main destination country
for insurance this year has been
Italy, which has accounted
for no less than 12.3% of total
issuance
to €85 million and there has been no issuance, or
practically none, in other types such as Investments,
Works Abroad or Bank Guarantees.
Breakdown by country
This year the main destination of insurance has been
Italy, which has accounted for no less than 12.3% of
total issuance. This extraordinary concentration is
mainly due to the contracting of two buyer credit
policies to fund the sale of two wind farms by
Gamesa to the Italian group ENEL. Although the
risk is located in Italy, where the buyer has its head
offices , the wind farms are built in Mexico (see
description in Projects section).
Angola ranks second, with an ever-increasing weight
in the risk portfolio; in 2013 it was the main insurance
destination. This year the issuance of cover in Angola
has amounted to € 273.4 million,
7.98% of the total. Mexico has been
the third destination, with 4.38%
of issuance, followed by Ecuador
(4.19%), Morocco (3.32%), Turkey
(3.27%) and Saudi Arabia (3.10%).
In percentage
12% Italy
Cash flow in 2014
Angola
8%
In line with the trend that began in 1996,
cash flow has been positive in 2014. Net
profit increased to €176 million, calculated
as the difference between premiums
earned plus recoveries less claims paid and
management costs.
Mexico
4%
From the point of view of revenue, premiums
collected (before management expenses)
amounted to around €105 million, much
higher than the year before and also well
above that accrued in the year due to
premiums collected on transactions of
previous years.
Recoveries increased as well, amounting
in 2014 to €115 million, compared to €85
million in 2013. For another year running, a
large share of the year’s recoveries (84.6%
of the total) belong to Paris Club refinancing
programmes . Despite the difficulties posed
Ecuador
4%
Morocco
3%
Turkey
3%
S. Arabia
3%
63% Other
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BUSINESS LINES
Claims paid on behalf of the
State have amounted in 2014 to
€24.1 million, a drop of 33%
by the international crisis, debtors
involved in these programmes have
performed satisfactorily during the
year, such as Egypt (€49.6 million
recovered), which has shown good
payment behaviour, meeting each
maturity on time despite the difficult
political situation in the country.
Recoveries from Indonesia,
Dominican Republic and Iraq for an
aggregate amount of €20.4 million
(17.8% of the total), are also fruit
of refinancing programmes and
were made in a timely manner.
A novelty in the year worth
mentioning is the Debt Payment
Agreement reached between
CESCE IN 2014
Argentina and all Paris Club creditors, including Spain.
The programme, which puts an end to a protracted
period of persistent default by Argentina, includes
an ad-hoc treatment for 5 years with maturities of
variable amounts that has enabled the consolidation
and restructuring of all of the accumulated debt,
including interest on arrears. A first recovery under
this agreement amounting to €18.9 million by way
of initial payment has been obtained.
Outside of the framework of the Paris Club
agreements, the recoveries from Iran of €16.5
million clearly improve the figure of the previous
year (7 million). This has been possible – despite
the difficulties involved in bank operations with
this country – thanks to the location of payment
channels that allowed debtors to meet some of the
outstanding debts.
On the other hand, indemnities paid out in 2014
have decreased to the lowest level in decades. The
amount of claims paid on behalf of the State has
been of €24.1 million in 2014, a drop of 33% from
the €37.2 million of the previous year.
Among the countries to which claims have been
paid is Iran, with an indemnity amount of €5.9 million
(24.5% of the total). The amounts paid pertain in full to
transactions whose debtors are three Iranian financial
entities: the Mellat, Tejarat and Saderat banks.
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At the end of 2014, the
portfolio of risks on behalf
of the State amounted to
€15,778 million
BUSINESS LINES
Risk portfolio
At the end of 2014, the portfolio of risks on behalf
of the State amounted to €15,778 million, a figure
very similar to that of the year before.
The composition of the portfolio has remained
largely unchanged. The lion’s share (86%) pertains
to outstanding risks (committed capital not yet
matured).
Next in line is Mexico, with €9 million in indemnities
(37% of total), mainly in connection with one private
debtor transaction, which is in the process of
recovery in Mexican courts.
Third is Brazil, with €4.7 million, mainly deriving from
a default by the Evangelical Lutheran Community
of Sao Paulo.
All of the €2.5 million paid out in indemnities this year
in Kazakhstan pertain to the defaults of two financial
institutions intervened on during the financial crisis
in this country, BTA and Astana Finance; CESCE
is working together with all other international
creditors on the preparation of viability plans for
both including the restructuring of the debt.
Outstanding refinanced amounts continued in
decline, as the various refinancing agreements
in force reach maturity. At the end of 2014 they
amounted to €408 million, distributed among
8 countries (Egypt, Iraq, Nicaragua, Indonesia,
Montenegro, Ivory Coast, Dominican Republic and
Ecuador).
On the other hand, the arrears on refinanced amounts
have not decreased: quite the opposite, they have
increased as a result of accumulated default interest.
Likewise, the defaults on non-refinanced amounts
have gone up for the same reason. Collectively, they
account for €1,770 million, most of it concentrated
in Cuba and Argentina.
As mentioned in previous reports, years ago risk
management reached the point of equilibrium
in aggregate terms, i.e., the point in time where
CESCE IN 2014
recoveries – including interest– came to exceed
claims paid up to that date.
Net accumulated surplus continues to grow
each year, first because premiums earned exceed
claims and, secondly, as a result of the recovery of
indemnities paid in the past, mainly via refinancing
agreements reached by the Paris Club. It is worth
mentioning that in the last fifteen years, recoveries
have averaged at €350 million per annum, albeit with
significant oscillations from one year to another. The
end result is that insurance on behalf of the State
has translated into a net income for the General
State Budgets.
However, the recoveries received in recent years
have slowly extinguished outstanding debt with
CESCE. Most of the debtors who at the time defaulted
and accounted for a large share of claims have
now settled their debts. As was mentioned earlier,
amounts outstanding under refinancing agreements
hardly reach €400 million which, once paid, shall
extinguish what in recent years has been the main
source of income of the instrument.
Nevertheless, the CESCE portfolio has been
diversified and restructured and claims are kept at
moderate levels; therefore, the system is expected
to continue to generate a positive balance for the
State.
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BUSINESS LINES
CESCE IN 2014
Exposure by country
For the first time Spain is
in the lead of the list of
risk portfolios, with €2,037
million, accounting for 15% of
the total
Breakdown of portfolio by country
The picture of the risk portfolio broken down by
country shows Spain to be in the lead for the first
time ever, with an exposure of €2,037 million,
which accounts for 15% of the total. This figure
refers mainly to guarantor insurance covering
the risk of bond enforcement, where what is
insured is the default by the Spanish company
on the credit which would arise in the event of
enforcement of a surety or bond it has ordered to
guarantee its contractual obligations. The risk of
Spain also includes bank guarantee transactions
(pre-financing credit insurance granted to Spanish
exporters) and, lastly, also includes buyer credit,
where a Spanish group acts as the
guarantor of credits granted to
subsidiaries carrying out business
abroad. Although innovative, this
is a characteristic that has become
habitual in the portfolios of several
ECAs of the OECD.
In all other regards, the breakdown by
country is not very different from that
presented the year before. Excluding
Spain, Mexico continues to occupy first
place, with €1,700 million, equal to 10.7%
of the portfolio. This is followed by Saudi
Arabia with 1,600 million (10.01%), Turkey,
with 1,367 million (8.66%) and Angola in
fourth position, with 1,213 million (7.69%).
Cuba is still among the first in the list, in
fifth position, 7.6% of the total debt due and
outstanding.
The next five exposures, ranging between
4.8% and 2.6%, are Brazil, Venezuela, UAE,
Russia and Dominican Republic.
In the next block of five are the US, which
accumulates a significant amount of risk
contracted via the investment policy,
Italy, Algeria (also investments), Argentina
(defaults) and Panama.
In percentage
Spain 12%
42% Other
Mexico
11%
S. Arabia
10%
Turkey
9%
Angola
8%
8% Cuba
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BUSINESS LINES
CESCE IN 2014
4.2.2.1 Insurance on behalf of the State
statistics
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BUSINESS LINES
CESCE IN 2014
Value of insured transactions
Risk on behalf of the State
TYPES
In thousands of euros
2010
2011
2012
2013
2014
Supplier credit
1,175,858.56
74,524.38
534,297.94
356,947.46
225,383.74
Buyer credit
2,727,971.28
4,378,895.50
1,283,172.18
833,179.01
1,116,193.82
Whole Turnover (P.A.G.E.X.) + Policy 100
600,578.36
301,784.61
266,117.91
142,733.78
111,115.15
Multi-Market
2,714,114.02
3,001,135.59
3,301,530.63
2,867,383.36
2,439,844.40
323,320.10
208,588.83
95,645.25
82,123.20
85,471.08
78,738.52
16,228.22
8,245.23
52,404.90
25,110.38
2,248,656.67
5,409,854.98
12,667,735.90
2,915,851.25
1,370,262.38
308,356.40
588,212.97
1,146,735.03
381.18
---
Others
2,358.78
---
---
---
---
Bank Guarantees
6,500.00
68,283.50
44,725.28
---
3,516.67
10,186,452.69
14,047,508.58
19,348,205.35
7,251,004.14
5,376,897.61
Documentary Credits
Constructional Works Abroad
Bonds
Investments
TOTAL
- The “Value of insured transactions” is the amount (excluding interests) of the contracts covered by the insurance.
- In the types of whole turnover and Multi-Market, this value corresponds to the amount of the sales declared covered on behalf of the State and in Policy 100 it corresponds to an estimate of expected sales.
- For policies issued in foreign currency, the last average exchange rate for each year has been used.
- For Pre-shipment risk, Bonds and Constructional Works, the amounts already included in Supplier Credit (Credit Risk) or Buyer Credit are not reflected in order not to duplicate figures.
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BUSINESS LINES
CESCE IN 2014
New Business Covered distributed by Types and Repayment Terms
TYPES
2010
2011
2012
2013
2014
Supplier credit
< 24 months
≥ 24 months
Buyer credit
< 24 months
≥ 24 months
< 24 months
≥ 24 months
Multi-Market
Documentary Credits
< 24 months
≥ 24 months
Bonds
Investments
Others
Bank Guarantees
943,319.60
927,423.18
15,896.42
1,930,926.44
--1,930,926.44
594,572.58
594,572.58
--2,686,842.65
320,086.90
320,086.90
--23,960.60
424,202.22
288,695.40
1,272.16
92,280.54
52,426.38
52,216.52
209.86
3,187,868.52
--3,187,868.52
298,764.43
298,764.43
--2,970,975.27
205,286.95
205,286.95
--3,259.39
254,690.72
610,360.70
--16,602.06
206,513.60
203,389.13
3,124.47
1,048,911.22
--1,048,911.22
263,442.20
263,442.20
--3,268,469.06
94,688.80
94,688.80
--2,975.98
1,106,642.16
579,617.44
--3,996.00
158,034.53
153,576.68
4,457.85
810,438.51
--810,438.51
141,306.44
141,306.44
--2,838,560.68
81,301.97
81,301.97
--17,367.83
617,717.00
393.44
--10,800.00
85,483.02
78,966.99
6,516.03
972,517.75
--972,517.75
110,004.00
110,004.00
--2,344,118.07
84,616.38
84,616.38
--4,045.11
531,098.23
----1,989.27
TOTAL
7,306,159.09
7,600,234.42
6,575,256.46
4,675,920.40
4,133,871.83
< 24 months
≥ 24 months
Constructional Works / Bonds / Investments / Others
4,528,925.31
1,946,822.86
830,410.92
3,527,243.17
3,188,078.38
884,912.87
3,829,989.19
1,052,035.69
1,693,231.58
3,214,745.77
814,896.36
646,278.27
2,617,705.44
979,033.78
537,132.61
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BUSINESS LINES
CESCE IN 2014
Main Destination Countries of New Business Covered
Risk on behalf of the State.
In thousands of euros and percentage
Data at 31/12/14
2014 (Amount)
Single Policies
Investments
Credit Risk
COUNTRIES
(1)
Italy
(2)
(3)
Wholeturnover Policies
Other Guarantees
Pre-shipment
< 24 months
Others
(4)
(5)
(6)
< 24 months ≥ 24 months
% overall subtotal
PAGEX and
Multi-Market
Documentary
Credits
(7)
(8)
TOTAL
(9)=(2)+(3)+(4)
+(5)+(6)+(7)+(8)
2014
2013
2012
2011
(10)
(11)
(12)
(13)
2010
(14)
37,308.58
299,530.70
0.00
0.00
0.00
82,978.79
0.00
419,818.08
12.26%
2.55%
3.10%
2.23%
2.72%
Angola
0.00
272,948.02
0.00
0.00
0.00
444.92
0.00
273,392.93
7.98%
11.50%
2.49%
3.49%
0.54%
Mexico
148,582.27
0.00
150,129.87
4.38%
4.72%
8.54%
12.76%
19.24%
547.96
999.63
0.00
0.00
0.00
Ecuador
477.64
119,318.77
0.00
0.00
0.00
23,831.92
0.00
143,628.33
4.19%
0.64%
0.45%
0.19%
0.29%
Morocco
354.97
0.00
0.00
0.00
0.00
113,197.95
0.00
113,552.92
3.32%
4.16%
3.51%
2.01%
1.90%
Turkey
3,969.74
23,447.70
0.00
0.00
0.00
84,608.04
0.00
112,025.48
3.27%
4.18%
3.68%
16.17%
5.50%
Saudi Arabia
0.00
0.00
0.00
16,858.67
4,880.24
84,266.22
0.00
106,005.13
3.10%
5.40%
12.00%
1.43%
11.40%
Brazil
0.00
164.78
0.00
0.00
0.00
82,787.68
0.00
82,952.46
2.42%
8.69%
3.32%
1.97%
7.45%
Singapore
0.00
0.00
0.00
0.00
0.00
80,211.34
0.00
80,211.34
2.34%
0.65%
0.38%
0.36%
0.19%
U.A.E.
0.00
0.00
0.00
0.00
0.00
71,305.14
0.00
71,305.14
2.08%
2.21%
1.68%
0.85%
1.30%
58,663.95
0.00
58,663.95
1.71%
1.50%
0.84%
7.52%
0.64%
38,208.50
0.00
55,383.26
1.62%
1.61%
1.17%
3.20%
0.57%
Russian Federation
0.00
0.00
0.00
0.00
0.00
17,174.76
0.00
0.00
0.00
0.00
Gabon
0.00
53,056.65
0.00
0.00
0.00
269.83
0.00
53,326.48
1.56%
0.01%
0.00%
0.50%
1.21%
Tunisia
17,886.71
0.00
0.00
0.00
0.00
31,677.21
0.00
49,563.92
1.45%
1.30%
0.88%
1.00%
0.90%
Algeria
People’s Rep. of China
168.61
0.00
0.00
0.00
0.00
46,672.38
0.00
46,840.99
1.37%
1.57%
1.76%
1.26%
1.00%
Chile
0.00
0.00
0.00
0.00
0.00
44,253.98
0.00
44,253.98
1.29%
1.20%
0.87%
1.79%
0.88%
Colombia
0.00
0.00
0.00
0.00
0.00
43,743.44
0.00
43,743.44
1.28%
0.96%
0.60%
0.64%
1.47%
India
0.00
0.00
0.00
0.00
0.00
43,581.52
0.00
43,581.52
1.27%
1.14%
1.10%
1.20%
1.14%
Israel
0.00
0.00
0.00
0.00
0.00
42,312.94
0.00
42,312.94
1.24%
1.11%
1.25%
0.47%
0.52%
Czech Republic
0.00
0.00
0.00
0.00
0.00
41,933.99
0.00
41,933.99
1.22%
1.09%
0.81%
0.84%
0.71%
South Korea
0.00
0.00
0.00
0.00
0.00
40,458.61
0.00
40,458.61
1.18%
1.94%
0.80%
0.70%
1.16%
Estonia
17,703.11
0.00
0.00
3,022.48
10,794.58
3,391.37
0.00
34,911.54
1.02%
0.09%
0.06%
0.05%
0.07%
Egypt
17,332.73
0.00
0.00
0.00
0.00
12,969.68
0.00
30,302.41
0.88%
1.06%
0.93%
1.05%
0.53%
Peru
SUBTOTAL
% Overall Subtotal
Overall Subtotal
207.03
0.00
0.00
0.00
0.00
26,916.96
0.00
27,124.00
0.79%
0.98%
0.61%
0.35%
0.44%
113,131.86
769,466.26
0.00
19,881.15
15,674.82
1,247,268.59
0.00
2,165,422.68
2,165,422.68
3,204,844.51
4,884,528.43
6,006,741.44
5,057,455.50
78.06
98.41
0.00
97.35
79.49
50.82
0.00
63.23
63.23
76.74
77.55
81.49
73.87
144,929.93
781,870.97
0.00
20,423.34
19,719.93
2,454,122.07
3,840.10
3,424,906.33
3,424,906.33
4,175,979.19
6,298,556.71
7,370,737.50
6,846,062.77
-
-
-
-
-
-
-
0.00
0.00
0.00
0.00
1,773.09
2,723.49
Policy 100 (*)
Other Commercial Risks
Overall Total
-
191,552.81
-
-
517,412.68
-
-
708,965.50
708,965.50
499,941.21
276,699.74
227,723.83
457,372.83
144,929.93
973,423.78
0.00
20,423.34
537,132.61
2,454,122.07
3,840.10
4,133,871.83
4,133,871.83
4,675,920.40
6,575,256.45
7,600,234.42
7,306,159.09
(*) Distribution per countries not available.
64
Annual
Report
2014
PROFILE OF CESCE
BUSINESS LINES
CESCE IN 2014
Premiums earned. Direct insurance
TYPES
Accumulated
1972/2014
2010
2011
2012
2013
2014
1. Supplier credit
18,263.3
(2,440.3)
13,479.5
4,386.7
4,046.3
172,591.8
2. Buyer credit
89,443.0
191,584.4
63,063.8
38,525.2
55,172.6
1,904,253.7
595.3
311.9
293.2
153.1
113.5
56,940.3
4. Multi-Market
2,073.7
2,359.2
2,839.7
2,464.0
1,857.5
16,541.7
5. Documentary Credits
4,730.1
1,192.4
1,151.0
449.3
428.6
59,685.4
568.7
137.4
109.1
271.2
97.4
25,695.2
23,440.5
9,067.1
43,924.9
26,726.7
24,323.1
185,190.1
8. Investments
9,145.7
9,111.6
23,335.3
(2,630.7)
(10,830.6)
94,298.6
9. Others
1,422.3
162.9
219.0
226.5
221.9
5,771.0
149,682.5
211,486.7
148,415.5
70,572.0
75,430.3
2,520,967.9
3. Whole Turnover (P.A.G.E.X.) + Policy 100
6. Constructional Works Abroad
7. Bonds
Total direct insurance
65
Annual
Report
2014
PROFILE OF CESCE
CESCE IN 2014
BUSINESS LINES
Current reschedulings by countries at 31/12/14
No. of
Agreements
COUNTRIES
(1)
Pending
Total
Rescheduled
(principal + capitalised
interest from previous
reschedulings)
Arrears
Principal
Claims Paid
Capitalised interest from
previous reschedulings
Instalments on Principal Pending Maturity
Interest on
principal
Penalty Interest
on Arrears
(6)
(7)
Claims Paid
(8)
Capitalised interest
from previous
reschedulings
(9)
TOTAL
(10)=(4)+(5)+(6)
+(7)+(8)+(9)
(2)
(3)
(4)
(5)
Argentina
Bosnia
Congo, Dem. Rep.
Côte d’Ivoire
Cuba
Ecuador
Egypt
Equatorial Guinea (1)
Indonesia
Iraq
Montenegro
Nicaragua-Celgusa (2)
Pakistan
Dominican Rep.
Serbia
Seychelles
Djibouti
5
1
2
12
4
8
2
5
4
4
1
1
3
4
1
1
1
393,017.04
1,849.74
7,761.55
60,057.14
135,131.49
41,092.15
627,010.73
29,581.40
90,199.39
119,858.19
26,498.87
75,377.55
22,803.89
139,832.11
18,960.65
1,592.38
4,252.10
70,166.31
0.00
76.32
16,122.10
129,406.68
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
8.86
0.00
13,499.64
0.00
121.76
466.44
2,640.77
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
17.13
0.00
15,647.12
0.00
13.95
725.49
75,433.46
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6.32
0.00
59,674.96
0.00
0.01
336.69
577,209.45
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
52.72
1,274.59
18,473.25
0.00
2,917.46
108,308.55
4,357.36
28,952.81
45,505.72
15,109.46
25,797.07
17,757.77
11,872.25
9,396.80
599.86
1,033.74
0.00
41.88
1,805.65
534.46
0.00
1,385.72
5,847.50
9,629.91
0.00
39,772.29
8,364.57
36,235.28
178.18
4,327.61
7,335.27
900.09
563.95
158,988.03
94.60
3,292.28
36,658.43
784,690.36
4,303.18
114,156.05
13,987.27
28,952.81
85,278.02
23,474.03
62,032.35
17,935.95
16,199.86
16,732.07
1,532.26
1,597.69
Total
59
1,794,876.37
215,780.28
16,745.74
91,826.34
637,221.11
291,409.41
116,922.36
1,369,905.24
NOTES :
− This table shows the situation of the Rescheduling Agreements concluded by CESCE at the time of these statistics.
− In all amounts the Insured’s participation in the risk is excluded.
− The amounts of principal correspond to the rescheduled credits and the amounts of interest to those generated by the rescheduling and not paid at its due date.
− The figures are valued in euros, applying the following exchange rate :
a) In credits insured in foreign currency, the rate at 31-12-2014 is applied to each instalment of principal, to each instalment of interest and to the penalty interest accrued.
b) In credits insured in euros :
b.1) In subrogated credits, the mean exchange rate paid for each rescheduled maturity is applied to each instalment of principal, including capitalised interest from previous rescheduling agreements, to each instalment of interest and to the penalty interest
accrued.
b.2) In purchased credits, the mean exchange rate paid is applied to each instalment of principal, including capitalised interest from previous rescheduling agreements, and the rate at 31-12-2014 is applied to each instalment of interest and to the penalty
interest accrued.
− The amounts corresponding to the quittances on principal arranged in the Rescheduling Agreements are excluded from this table.
− Penalty interest is accrued on the instalments of principal and interest unpaid at the date of the information with the interest and penalty rates specified in their respective Bilateral Agreements.
(1) Includes Rescheduled Debt up to the V Agreement signed on 19-08-2003, and the Debt subject to the Private Debt Swap Programme under the Agreement of 17-06-2003.
(2) The amounts in columns 5 and 9 correspond to capitalized interest of the original transaction (Celgusa).
66
Annual
Report
2014
PROFILE OF CESCE
CESCE IN 2014
BUSINESS LINES
Exposure by countries
Risk on behalf of the State.
COUNTRIES
(1)
Mexico
Saudi Arabia
Turkey
Angola
Cuba
Brazil
Venezuela
U.A.E.
Russian Federation
Dominican Rep.
U.S.A.
Italy
Algeria
Argentina
Panama
Chile
Gabon
Iran
Morocco
Ecuador
People’s Rep. China
Egypt
Cameroon
Bangladesh
Iraq
Indonesia
United Kingdom
Nicaragua
Ghana
Tunisia
Israel
Guatemala
Côte d’Ivoire
Ireland
Sri Lanka
Colombia
Poland
Montenegro
Estonia
Romania
Subtotal
% Overall Total
Overall Total
Data at 31/12/14
2014 (amounts)
Commitments
Other risks
Investments
(2)
46,436.58
0.00
0.00
0.00
0.00
140,866.09
0.00
0.00
0.00
0.00
335,137.14
0.00
259,567.08
12,942.44
0.00
0.00
0.00
0.00
1,881.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
17,356.35
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
814,186.68
98.18
829,302.96
(3)
1,536,737.76
1,578,994.40
1,366,921.60
1,213,380.99
212.74
577,579.15
583,976.03
585,214.66
420,806.17
392,954.96
25,621.76
352,223.30
21,974.05
8,551.16
238,498.30
191,697.07
173,251.63
129,675.30
148,283.28
142,977.04
146,622.24
29,079.89
116,542.30
86,086.07
0.00
45,321.55
70,129.21
628.89
59,113.91
33,951.69
44,620.56
38,954.99
113.64
18,392.35
34,229.13
26,914.68
19,851.33
1,952.32
23,083.49
21,824.78
10,506,944.37
82.27
12,771,837.14
% Overall Total
Claims
paid
Arrears on
Rescheduling
Rescheduling
Pending Maturity
TOTAL
2014
2013
(4)
(5)
(6)
(7)
(8)
(9)
109,623.50
0.00
0.00
0.00
414,737.41
39,672.24
4,527.42
0.00
0.00
0.00
29,355.08
23,656.66
715.10
69,352.51
0.00
552.62
2,079.60
42,480.16
526.27
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
18,265.96
0.00
0.00
6,380.34
0.00
0.00
0.00
761,924.87
94.41
807,023.76
0.00
0.00
0.00
0.00
784,690.36
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
158,988.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
17,650.72
0.00
0.00
0.00
0.00
0.00
0.00
0.00
961,329.12
99.97
961,573.47
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
16,199.86
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4,303.18
0.00
114,156.05
0.00
0.00
85,278.01
28,952.81
0.00
62,032.35
0.00
0.00
0.00
0.00
19,007.71
0.00
0.00
0.00
0.00
23,474.03
0.00
0.00
353,404.00
86.55
408,331.77
1,692,797.84
1,578,994.40
1,366,921.60
1,213,380.99
1,199,640.51
758,117.48
588,503.45
585,214.66
420,806.17
409,154.82
390,113.97
375,879.96
282,256.23
249,834.14
238,498.30
192,249.69
175,331.23
172,155.46
150,690.55
147,280.22
146,622.24
143,235.94
116,542.30
86,086.07
85,278.02
74,274.36
70,129.21
62,661.24
59,113.91
51,308.04
44,620.56
38,954.99
36,772.07
36,658.31
34,229.13
26,914.68
26,231.67
25,426.35
23,083.49
21,824.78
13,397,789.03
84.91
15,778,069.10
10.73
10.01
8.66
7.69
7.60
4.80
3.73
3.71
2.67
2.59
2.47
2.38
1.79
1.58
1.51
1.22
1.11
1.09
0.96
0.93
0.93
0.91
0.74
0.55
0.54
0.47
0.44
0.40
0.37
0.33
0.28
0.25
0.23
0.23
0.22
0.17
0.17
0.16
0.15
0.14
13,397,789.03
84.91
15,778,069.10
12.09
9.65
8.18
6.60
7.42
6.25
4.13
3.63
3.07
2.71
4.58
0.26
1.76
1.57
1.45
1.31
0.95
1.48
1.15
0.25
1.15
1.25
0.78
0.48
0.55
0.54
0.68
0.41
0.42
0.36
0.29
0.23
0.23
0.24
0.23
0.17
0.22
0.16
0.00
0.72
13,870,053.68
87.59
15,834,515.14
Commitments: amounts pending maturity of the Credit and its interest. Excluding the Insured’s participation in the risk and net of Ceded Reinsurance.
Claims paid: amount of the Credit and its interest, due, unpaid and not rescheduled. Excluding the Insured’s participation in the risk. Inclusive of the commercial and political risks on behalf of the State.
Rescheduling : amount of the Credit and its interest, regarding which an agreement has been signed for the "Rescheduling" or "Restructuring" of its maturities. Arrears of interest refer to those generated by Rescheduling and not met at its due
date, as well as the penalty interest accrued on the instalments of principal and interest unpaid at the date of the information. Excluding the Insured’s participation in the risk.
(*) Transfer of debt from Guatemala to Nicaragua in transaction CELGUSA: 112,560.92 thousand euros of principal and 339,353.25 thousand euros of interest on arrears. Refinanced for Nicaragua with quittance of 72.2%.
67
Annual
Report
2014
PROFILE OF CESCE
BUSINESS LINES
CESCE IN 2014
Expired amounts (out of risk)
TYPES
2010
2011
2012
2013
2014
214,998.05
573,282.95
1,296,433.24
231,308.75
208,963.56
1,032,622.25
836,237.91
1,273,821.85
2,026,978.52
433,424.31
626,981.57
344,683.68
258,795.62
172,840.76
104,632.39
2,600,476.57
2,993,521.17
3,273,190.13
2,873,317.36
2,402,458.08
228,065.86
363,402.43
142,825.63
109,504.87
80,840.25
-2,519.79
26,994.72
5,695.69
11,926.44
27,679.27
Bonds
109,737.45
256,909.77
270,373.89
204,537.33
326,181.97
Investments
118,943.56
103,561.91
27,156.29
120,907.22
657,680.10
---
---
---
4,522.58
---
10,618.79
36,801.49
17,046.95
95,331.37
2,289.27
4,939,924.31
5,535,396.03
6,565,339.29
5,851,175.21
4,244,149.19
Supplier credit
Buyer credit
Multi-Market
Documentary Credits
Others
Bank Guarantees
TOTAL
68
Annual
Report
2014
PROFILE OF CESCE
BUSINESS LINES
CESCE IN 2014
Commitments (pending of maturity) at the end of each year
TYPES
2010
2011
2012
2013
2014
Supplier credit
2,573,082.92
2,052,226.34
962,306.70
889,032.48
765,551.95
Buyer credit
7,662,950.80
10,014,581.40
9,789,670.77
8,573,130.76
9,112,224.21
89,465.26
43,546.01
48,192.59
16,658.27
22,029.87
Multi-Market
415,339.45
392,793.56
388,072.49
353,315.81
294,975.80
Documentary Credits
259,371.29
101,255.82
53,118.99
24,916.09
28,692.22
60,471.68
36,736.35
34,016.64
39,458.03
15,823.87
1,067,914.08
1,065,695.03
1,901,963.29
2,315,142.96
2,520,059.22
548,236.90
1,055,035.69
1,607,496.84
1,486,983.06
829,302.96
4,522.58
4,522.58
4,522.58
---
---
130,561.75
110,362.32
97,311.37
12,780.00
12,480.00
12,811,916.71
14,876,755.10
14,886,672.26
13,711,417.45
13,601,140.10
Bonds
Investments
Others
Bank Guarantees
TOTAL
69
Annual
Report
2014
PROFILE OF CESCE
BUSINESS LINES
CESCE IN 2014
New business covered net of cancellatiions by annuities
TYPES
2010
2011
2012
2013
2014
943,319.60
52,426.38
206,513.60
158,034.54
85,483.02
1,930,926.44
3,187,868.52
1,048,911.22
810,438.51
972,517.75
594,572.58
298,764.43
263,442.20
141,306.44
110,004.00
2,686,842.65
2,970,975.27
3,268,469.06
2,838,560.68
2,344,118.07
320,086.90
205,286.95
94,688.80
81,301.97
84,616.38
23,960.60
3,259.39
2,975.98
17,367.83
4,045.11
Bonds
424,202.22
254,690.72
1,106,642.15
617,717.00
531,098.23
Investments
288,695.40
610,360.70
579,617.44
393.44
---
1,272.16
---
---
---
---
92,280.54
16,602.06
3,996.00
10,800.00
1,989.27
7,306,159.09
7,600,234.42
6,575,256.45
4,675,920.40
4,133,871.83
Supplier credit
Buyer credit
Multi-Market
Documentary Credits
Others
Bank Guarantees
TOTAL
- The “New Business Covered” is the amount of the financed credits (principal + interests), excluding the insured’s participation in the risk.
- In the “Policy 100”, the insured amounts have been estimated according to expected sales and mean percentage of cover.
- In the foreign currency policies, the rate applied has been the last average of each year.
- In the types of Pre-shipment risk, Bonds and Constructional Works Abroad, the amounts already included in Supplier Credit (Risk of Credit) or Buyer Credit are not reflected in order not to duplicate figures
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CESCE IN 2014
Claims paid
Risks on Behalf of the State – Direct Insurance.
Data at 31 December 2014
TYPES
2010
2011
2012
2013
2014
Acumulado
1972/2014
Supplier Credit
Buyer Credit
Wholeturnover
Documentary Credits Confirmation
Constructional Works
Bonds
Clearing Operations
Feasibility Study
Policy 100
Others
541.21
28,646.52
56.02
0.00
0.00
0.00
0.00
642.25
0.00
0.01
5,349.98
27,065.23
41.20
0.00
0.00
0.00
0.00
684.87
0.17
940.24
122.73
42,373.72
1.17
10,926.45
0.00
0.00
0.00
311.45
0.00
1,430.05
670.19
33,364.85
14.96
32.95
0.00
3,062.08
0.00
66.98
0.18
0.00
292.68
23,611.65
2.85
0.00
13.16
0.00
0.00
0.00
0.60
197.72
567,223.38
6,827,615.71
83,989.23
309,259.55
44,486.43
31,906.64
13,546.26
4,688.71
166.28
5,872.05
Total
29,886.01
34,081.69
55,165.57
37,212.19
24,118.66
7,888,754.24
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CESCE IN 2014
Recoveries
Risk on behalf of the State – Direct Insurance.
Data at 31 December 2014
TYPES
2010
2011
2012
2013
2014
Acumulado
1972/2014
Supplier Credit
Buyer Credit
Wholeturnover
Documentary Credits Confirmation
Constructional Works
Bonds
Clearing Operations
Others
Compensated Capital Losses
3,517.16
92,885.05
188.82
6,770.49
28.63
0.00
0.00
41.95
143.70
5,466.10
61,414.46
174.84
698.99
133.08
0.00
0.00
39.60
127.23
1,899.18
69,342.25
377.28
1,425.13
289.52
0.00
0.00
8.98
90.61
2,997.05
79,393.12
329.56
2,041.40
277.00
0.00
0.00
3.69
109.36
5,547.45
102,273.49
321.76
6,502.77
251.83
0.00
0.00
4.11
150.98
418,157.28
8,265,166.41
119,806.69
367,697.90
21,161.15
2,566.16
19,593.78
2,757.00
14,528.25
Total
103,575.80
68,054.30
73,432.95
85,151.18
115,052.39
9,231,434.62
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5
CESCE IN 2014
CORPORATE
RESPONSIBILITY
5.1 CESCE, A RESPONSIBLE COMPANY
5.2 COMMITMENT TO STAKEHOLDERS
5.2.1
5.2.2
5.2.3
5.2.4
Employees
Customers
Suppliers
Community
5.3 COMMITMENT TO THE ENVIRONMENT
5.3.1 Environmental quality at CESCE
5.3.2 Environmental supervision in projects on behalf of the State
5.4 COMMITMENT TO GOOD GOVERNANCE
5.4.1
5.4.2
5.4.3
5.4.4
5.4.5
Good Governance bodies
Ethical framework
Risk Management
Senior management team
Board of Management
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CESCE IN 2014
5.1
CESCE, a responsible company
Five values have inspired the activity
of CESCE since the beginning:
innovation, support of economic
activity and internationalisation,
customer commitment, ethical
and responsible conduct and
commitment to people. Based
on these foundations, the Ethics
Code was created, a global action
framework for the company and
a testament to its commitment to
ethics in business management.
The culture of CESCE is based on respect for
fundamental rights and on five proprietary values
intrinsic to the company since its inception, which
govern its daily business activities.
Innovation
CESCE understands innovation to be a different
way to interpret business. Through innovation,
we reinvent our processes, products and systems,
simplifying them and making them more efficient and
scalable, which in turn generates more profitability
and flexibility to adapt to a changing environment.
Support of economic
activity and
internationalisation
CESCE supports economic activity by providing
security to business transactions on a national
and international level, endeavouring to support
companies and countries and generating value
for its stakeholders, via the global management of
commercial risk, information and specific technology.
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Customer commitment
defined as responsible
and committed to
human rights, the
environment and society,
but also the behaviour of
its employees, marked
by values such as loyalty,
honesty, responsibility and
integrity. These behaviours
must permeate both the
reality of the company and
the transactions and projects
it supports.
CESCE creates products that generate value for
its customers and adapt to their needs, offering a
quality service and using state-of-the-art technology
as communication channels.
Commitment
to people
Ethical and responsible conduct
CESCE favours equal and healthy
conditions and environments that
are devoid of discrimination and
offer personal and professional
development opportunities.
The actions of CESCE and of its
employees are not only governed
by compliance with the law, but also
compliance with ethical values
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CESCE IN 2014
Shared responsibility
The actions of CESCE and of its employees are not
only governed by strict compliance with the law, but
also with a number of ethical values. These values
prevail both in the activity of the company, which is
Safeguarding these principles is a
joint responsibility of the company
and all its employees.
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For this reason, in 2014 it has defined an Ethics Code
for all members of the organisation, which will set
the guidelines for the daily activities of the company.
In addition, and as a socially responsible company,
as well as strict compliance with legislation, CESCE
has signed the United Nations Global Compact. The
aim of this international initiative is to secure the
voluntary commitment by organisations to social
responsibility, by implementing ten principles
based on human, labour, environmental and anticorruption principles.
The integrity of CESCE’s conduct is particularly
relevant given is leadership in the insurance industry
ranking 4th worldwide and 2nd in Spain in credit and
surety. This position, added to the responsibility for
managing risk on behalf of the Spanish State and
its public commitment to the recommendations of
the Organisation for Economic Cooperation and
Development further underline the importance and
influence of its actions.
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CESCE IN 2014
Principles of the United Nations
Global Compact
Human
Rights
Principle 1. Businesses should support and respect the protection of internationally
proclaimed human rights.
Principle 2. Make sure that they are not complicit in human rights abuses. Principle 3: Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labour;
Principle 5: The effective abolition of child labour;
Labour
Principle 6: The elimination of discrimination in respect of employment and
occupation. Principle 7: Businesses should support a precautionary approach to
environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility;
Environment
Principle 9: Encourage the development and diffusion of environmentally friendly
technologies. Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.
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5.2
CESCE IN 2014
Commitment to
stakeholders
The corporate culture of CESCE
is based on fundamental values
and respect for the persons
involved in its business activities.
Employees, customers, suppliers
and the community are its main
stakeholders. The company has
established communication
and cooperation channels with
all of them in an environment
marked by transparency and
professionalism.
5.2.1 Employees
The workforce of CESCE companies at the end
of 2014 was of 1457 professionals carrying out
their duties in the CESCE head office and the Latin
American subsidiaries, in Informa D&B, in CTI and in
Grupo CESCE Servicios Tecnológicos (GCST).
Broken down by geographical region, 385
employees- 26% of the workforce work outside
of Spain: 17 in Portugal, 203 in the subsidiaries of
CESCE in Latin America and 165 in the subsidiaries
of Informa D&B in Portugal and Colombia.
In accordance with the global integration strategy of
CESCE, the Latin American subsidiaries have been
gradually adapting to the business model in the area
of human resources, having created an integrated
and multicultural team that represents the various
communities to which services are offered. In line
with this integration strategy, two service units were
transferred in 2014 from GCST to CTI, also belonging
to the group.
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CESCE IN 2014
Workforce of CESCE
and its subsidiaries
GCST
Latinoamérica
CTI*
Informa
CESCE
1.610
1.457
1.472
92
48
11
296
228
203
202
185
241
544
535
485
2012
CESCE España had a total of 444 employees
in Spain at the end of 2014. This workforce
is characterized by high standards of
qualifications and technical expertise. Thus,
half the employees are masters graduates
(52%); 14% are graduates and 34% are
college-trained.
By sex, the workforce is made up of 183
men (41% of the workforce) and 261
women (59%); the percentage of female
employees in CESCE is higher than the
average of the insurance sector which,
461
2013
The relationship between the company and its
workforce is defined by strict compliance with the
labour legislation of each country.
Human resources in CESCE España in 2014
541
467
The workforce of CESCE in Spain
is made up 444 employees,
characterised by high standards of
qualifications and technical expertise
according to data from the ICEA in 2013, is of
around 53%.
CESCE supports stable employment, values
experience and provides proper working conditions,
the training and the working environment to retain
talent. Proof of this is that in 2014 the average
seniority in the company is of 20 years and the
average age is 48.
The relationship of the company and its employees
is marked by strict compliance with legislation and
the labour principles of the United Nations Global
Compact. As a signatory member, CESCE supports
freedom of association and the right to collective
bargaining, disapproval of child and forced labour
and prohibition of any kind of labour discrimination.
In Spain, the working conditions of CESCE are
based on the Insurance Sector Collective Bargaining
Agreement (General State Collective Bargaining
Agreement for Insurance and Reinsurance entities
and Mutual Funds for Accidents at Work). Moreover,
the company has entered into agreements with
the Legal Representatives of the Workers that have
led to improvements in the collective bargaining
agreement.
Regular meetings are held with Trade Union
Representatives, such as the Occupational Health
2014
(*) In 2014 it includes OneRate Consulting
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and Safety Committee, the Social Benefit Committee,
the Pension Plan Control Committee, etc.
Equal opportunities and non-discrimination
CESCE promotes non-discrimination and equality
among its employees, irrespective of race, sex,
origin, ideology and social status.
This commitment is embodied in its “Policy of Zero
Tolerance of Discrimination” drafted in 2008, in
support of the European Framework Agreement
on Harassment and Violence at the Workplace and
undertakes to avoid any discriminatory practices on
the grounds of race, sex, creed and opinion, as well
as avoiding sexual harassment, labour harassment
and ill-treatment and humiliation.
The company has also developed a Procedure
for Managing Situations that are Discriminatory
or Undermine Employees’ Rights, included in the
internal regulations of the company and made
available to all employees via the corporate intranet.
Throughout 2014, there have been no reports of
discriminatory practices or harassment.
As part of this non-discrimination policy, CESCE
fosters the socio-professional integration of disabled
people and has 12 employees with disability in
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CESCE IN 2014
its workforce, above the
number required by Spain’s
Law on Social Integration of
the Disabled (LISMI).
In terms of breakdown by
gender, women account for
59% of the workforce, and their
presence in the technical and
managerial levels is above the
average for the industry.
The percentage of women
belonging to the senior
management team is 27%, compared
to the average for the sector in 2013
of 12%.
In order to encourage equal
opportunities, as well as achieve worklife balance, CESCE has an Equality Plan
2010-2014 (called “A la Par”), agreed
with the Workers’ Legal Representatives.
During its four years of life, a number of
measures have been implemented that are
designed to encourage these principles,
with an emphasis on regulation of working
time, prevention of sexual harassment,
gender violence and occupational health,
among others.
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CESCE invested €166,328 in the
Annual Training Plan, benefiting 258
employees
Among the measures promoting the work-life balance
are the different working time modalities available
to the employees: general full time (continuous
working day) and a special working day (split into
morning and afternoon in winter and continuous in
summer), both with sufficient time flexibility plus the
existence of reduced working hours for childcare,
etc. In 2014, 30% of the workforce works the general
working day modality.
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Training
CESCE IN 2014
organisation and respond to the specific training
needs of such jobs.
CESCE believes employee training to be an essential
instrument to achieve its corporate objectives and,
at the same time, meet the employee expectations.
Every year it develops the Annual Training Plan, the
preparation of which includes an employee survey
designed to detect any new needs.
In 2014, CESCE invested €166,328 in the Annual
Training Plan, which includes three types of courses:
• Corporate Training for development of key
competencies for the company business.
• Individual financial aid for training courses to
support the professional development of its
employees.
A total of 258 employees of CESCE benefited from
this training. Of those attending the courses, 60%
were women and 40% were men.
As well as training its employees, the company
offers students from various senior colleges
the opportunity to do their
• Specific individual training to foster the professional
development of key positions in the These working day flexibility measures along with
the extension to the following year of paid holiday
time, both implemented under the Equality Plan,
are fully consolidated throughout the workforce.
Training at CESCE
during 2014
Number of teaching hours:
Training hours/total hours:
Average training time per employee:
Rate achieved:
7.197 hours
0,9 %
16,2 hours
58%
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CESCE encourages leisure activities
as an integrating factor for
employees and their families, via the
Company Group
internships in CESCE. Thus, in 2014 it signed an
agreement with ICEX to take part in the 1st Edition of
the “Internship Programme in Financial Institutions
and Internationalisation” and internship agreements
with Universidad Pontificia de Comillas, Universidad
Autónoma de Madrid and Universidad Rey Juan
Carlos de Madrid.
Talent management
CESCE is aware of the need to retain the best
professionals, as its business success depends, to a
large extent, on their talent and commitment. With
this in mind, the company offers them a stable
working environment for professional growth,
encourages continuous training and listens to their
needs via the Workers’ Legal Representatives and the
various communication channels in place.
In order to ensure it has a motivated workforce in line
with its corporate objectives, the company fosters job
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CESCE IN 2014
stability and offers its employees, as
well as a competitive salary, a number
of very attractive social benefits: life
insurance and pension plan, mortgage
loans, school and college grants for
employees’ children, meal allowance,
transport allowance and subsidised
health insurance, among others.
Moreover, it encourages leisure activities
as an integrating factor for employees and
their families via a Company Group that is
subsidised by the company that organises
cultural, sports, family and travel activities.
Occupational Health and Safety
CESCE monitors health and safety at work and
complies with occupational risk prevention
legislation. As part of its endeavour to become a
healthy company, it provides free and voluntary
health check-ups to the employees, from which
56% of the staff benefited in 2014, encourages
healthy habits and carries out prevention and
awareness campaigns on various diseases.
The company has an Occupational Risk Prevention
Service provided since July by an external company,
and a Health and Safety Committee responsible
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for occupational risk prevention and reduction of
accidents at the workplace.
As for occupational accidents during the year, only
6 minor accidents took place, all in itinere.
The Committee ensures the application of
ergonomic measures to the working conditions of
each employee, particularly the proper use of the
computer and other IT devices.
Five meetings with the Occupational Health
and Safety Committee were held in 2014. A Risk
Assessment review was also carried out in the
head offices as well as the 3rd Psychosocial Risk
Assessment, designed to ascertain the level of
satisfaction of employees with their working
conditions in the various areas.
Aware of the importance of occupational health,
employees receive specific training in this matter.
In 2014, 80 hours of stress prevention and 170
hours in fire prevention and extinction training were
provided.
In addition, in order to encourage employee
wellbeing, the 6th Influenza Vaccination Campaign
was held in 2014, along with the launch of the
Healthy Breakfast campaign, as part of the Health
Monitoring Campaign of 2014.
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Various communication campaigns for prevention
of certain diseases were also organised: colon
cancer, cardiovascular diseases on the World Heart
Day and breast cancer. In relation to the latter, and as
an example of staff awareness, a female employee
recorded a testimonial video that was published on
the intranet encouraging colleagues to carry out
prevention control.
CESCE IN 2014
The “Todos en Grupo” intranet
provides fast and single voice
transmission to all centres in which the
human resources of CESCE carry out
their activities
Communication Channels
CESCE has several communication channels with its
employees, in the belief that a fluid information flow
is key to improving work conditions and increasing
productivity.
Internal communication is performed via the
hierarchical levels and the global intranet “Todos en
Grupo”, although there are other channels such as
bulletin boards, newsletters and informative emails.
In addition, if necessary, the workers have three
channels to voice consultations or conflicts related
to labour rights: the chain of command, the Human
Resources Department and the Workers’ Legal
Representatives.
The “Todos en Grupo” intranet provides fast and
single voice transmission of the corporate culture to
all centres and countries in which CESCE employees
carry out their activity. This is a common desktop
including applications, information and policies,
both corporate and local, as well as news and
transversal working groups. Throughout 2014, 840
items were published on this platform and some
of the improvements suggested in the Satisfaction
Survey of 2013 were implemented, such as new
applications or easier dissemination of contents.
Hierarchical communication is articulated not only
in functional and operational meetings, but also
via the organisation of different events designed
to transmit guidance and strategy to the teams. An
example thereof is the Meeting of Senior Managers,
the Sales Convention, the Meeting of Shareholders
and the Christmas Cocktail Party, the summaries of
which are also published on the intranet.
During 2014, internal communication, in line with
the company’s global strategy, focused on the
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BUSINESS LINES
In 2014, communication
focused on the dissemination
and understanding of the new
global business model
dissemination and understanding of
the new global business model as
well as the development of a sense of
belonging to CESCE as a group. Along
these lines, communications and
publications relating to corporate
visual identity, global organisational
charts and international projects
have been promoted.
In parallel and following the
practices in Spain, a survey of the
personnel in the Latin American
subsidiaries was performed,
regarding their perception and
areas for improvement of the
corporate intranet and the
internal communication in
each of the companies.
CESCE IN 2014
5.2.2 Customers
Covering customer needs is the cornerstone
of CESCE’s business and the goal that drove the
transformation of the company in 2008. In the midst
of the world economic crisis, stagnant domestic
demand, high default rates and difficulties accessing
credit, the company reformulated the sector
paradigms in order to provide flexible and efficient
solutions to the most pressing needs of companies:
internationalisation, risk management and access
to funding.
Today, CESCE provides credit and financing
management solutions that are unique in the
market, helping its more than 140,000 customers
in all stages of the business cycle which has, in just
a few years, managed to earn it fourth place in the
world credit insurance market.
The portfolio of customers of CESCE is diverse, both
in terms of size and activity, as well as multinational.
Customers access the various solutions via an omnichannel sales system. Via the CESNET platform,
customers manage their risk portfolios over the
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BUSINESS LINES
Internet from anywhere in the world and from
any device, also benefiting from the advantages
of direct personal channels provided by CESCE
over the telephone and the 29 sales offices and
150 agents of the company in Europe and Latin
America.
customer information and that contained in other
data bases to help them identify new customers and
manage their risks.
The company’s relationship with its customers is one
of “partnership”: they provide data on their business,
sales and collections, and CESCE processes all the
Customer protection is ensured by CESCE’s
Regulations for the Protection of the Insured. These
regulations, approved by the Board of Management
Customer protection
CESCE IN 2014
Department of
Insured Party Relations
Velázquez, 74
28001 Madrid
Tel.: 902 11 10 10
Email: [email protected]
Training and information
for the customer
The support for entrepreneurship and international expansion is reflected in the
intense informative and training activity that has been consistently carried out
by CESCE in recent years via its publications and institutional activities.
business community. In these works, CESCE specialists provide an analysis of the
most relevant issues and their outlook. This information helps customers make
better documented credit decisions based on accurate and truthful information.
Annual publications such as the situation analysis “Panorama Internacional” or
the “Industry Report on the Spanish Economy”, of which the 3rd edition was
published in 2014, are on their way to becoming documents of reference in the
The company also promotes information of interest to businesses and
entrepreneurs in its daily articles contained in the “SME advisor” blog and weekly
summaries of international news selected by its Country Risk department.
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Institutional activities
by subject
Risks, industry analysis
and default rate
Positioning and
branding
Customer protection
is ensured by CESCE’s
Regulations for the
Protection of
the Insured Party
2
4
Export
to grow
5
FIEM and
State Account
5
Countries
Internationalisation
Entering into
Collaboration Agreements
Encouraging
SMEs
in November 2006, contain
a d e t a i l e d d e s c r i p t i o n of
customer rights according to
the legislation in force and
must be known and applied
by all company employees.
8
10
11
12
Overall commercial
risk management
13
Financing
13
Fairs
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17
Customers manage
potential conflicts with
the insurer through
CESCE’s Department of
Insured Party Relations.
Its independence from
the sales department
is guaranteed by the
regulations.
CESCE IN 2014
Institutional Activities
In parallel, every year CESCE organises talks and
institutional activities in order to provide relevant
training to companies on ways to expand their
businesses, manage commercial risk and the various
credit access options available. In 2014, a total of
100 institutional activities were held in different
Spanish cities in collaboration with the Chambers
of Commerce, the Ministry of the Economy and
Competitiveness, as well as various business
associations and other entities.
Included in this training effort are the events promoted
by CESCE in collaboration with other large companies,
such as the third edition of “Impulsando Pymes”
(“Promoting SMEs”) which introduced intelligent risk
management to SMEs and “Exportar para Crecer”
(“Exporting to Grow”), dedicated this year to Mexico.
The company also entered into a collaboration
agreement with the Chambers of Commerce
whereby the company will be offering its broad range
of value added services and specialist advice to all
Spanish Chambers of Commerce.
Forever working close to its customers, the company
was present in the various trade fairs and forums such
as the IMEX Fair, the V “Salón Mi Empresa”, Conxemar,
Cevisama and Forinvest, among others.
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Principle of
competition
Principle
of disclosure
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Principle
of confidentiality
Principles to be
applied in the awards
is provided for under Article 192 of Spain’s Public
Procurement Law.
5.2.3. Suppliers
CESCE has around 20 main suppliers and
its relationship with them is based on ethics,
transparency and strict compliance with legislation.
Supplier selection is made according to objective
technical, professional and financial criteria, in line
with the Internal Rules on Selection and Contracting
in place.
Internal contracting rules
As a mainly public-owned company whose core
activity is of general interest, the legal regime
applicable to the contractual activity of the company
Upon this legal basis, the company has established its
own internal standards with an objective procedure
for the award of contracts that is respectful and
consistent with the following principles:
• The principle of competition, which aims to
ensure that any interested party can participate in a
tendering and contract process by submitting a bid
or proposal.
CESCE IN 2014
Transparency, equal treatment
and non-discrimination
In addition to these principles, others are also
applied, such as transparency, equal treatment
and non-discrimination, all in accordance with the
provisions concerning the obligations of entities
classified as having “no contracting power” in Spain’s
Public Procurement Law.
The company’s significant contracts are published
on the State Procurement Platform and on the
CESCE website.
In addition, as a member of the United Nations
Global Compact, the company expects its suppliers
to show integrity and respect for human, labour and
environmental rights.
• The publicity principle, requiring that a sufficient
number of potential stakeholders can be aware of
a call for tender.
Supplier service contracts therefore include clauses
requiring respect for the labour rights of their
employees, such as payment of Social Security,
occupational accident insurance and all manner of
obligatory social insurance.
• The principle of confidentiality, ensuring that
the contract is awarded upholding the criteria of
maximum discretion and prudence, without the
required publicity being harmful to the interests of
the contractor.
The company also includes its concerns for quality
and the environment in the bids for supplies or
services. They require, among other documentation,
the presentation of the ISO 9.001 quality certification
and the ISO 14.001 environmental certification.
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5.2.4. Community
CESCE considers that its performance as a
company is inextricably linked to the progress of
the communities where it is present and that are
affected by its business. The company does not
only generate wealth via employment, supplier
contracting and payment of taxes; its contribution
to the community is also relevant in regard to the
activity carried out as insurer of commercial credit
and risk management agent on behalf of the State.
In the activity carried out on its own behalf, CESCE
promotes the development of businesses, providing
security to their business transactions and offering
entrepreneurs the possibility of generating wealth
and employment.
By managing the internationalisation risk of Spanish
companies on behalf of the State, it also supports
the economy, stability and social welfare in the
developing countries where Spanish companies
carry out their projects.
As this financing generates debt, CESCE maintains a
responsible attitude by applying the OECD rules on
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In its proprietary business
activity, CESCE promotes the
development of businesses,
providing security to their
commercial transactions and
offering entrepreneurs the
chance to generate wealth and
employment
sustainable funding and the regulations contained
in the Law on Managing Foreign Debt with Highly
Indebted Countries, in order to prevent excess debt
from hindering development.
The activity of CESCE is particularly important
as a guarantor of respect for human, labour
and environmental rights. Following the
recommendations of the OECD “Common
Approaches” Agreement, the coverage of a risk
associated with a given project is subject to an
analysis of the social and environmental impact that
it may generate.
CESCE IN 2014
Community Projects
As a socially responsible company, CESCE
collaborates with a number of organisations in social
and community projects in which its employees play
a leading role. In 2014, the company was involved
in the following:
• Food collection campaigns “Un kilo de ayuda”
(“One kilo of aid”) promoted by the Food Bank. In
2014, 2.7 tons were donated to the Food Bank of
Lorem ipsum dolor sit amet
Madrid as part of the “Operación 1500 kilos”.
1350
INTERDUM
kilos of food were collected from employees, and
the company matched that same amount. This
initiative was rounded off with the visit of a group of
employees to the Food Bank to receive a certificate
from the organisation for its donation.
• Donations to non-profit social organisations: the
company delivered surplus marketing material to
Aphisa, a non-profit organisation for the defence
of rights and improvement of quality of life of
persons with disabilities and their families. It also
made financial contributions to the Fundación Luisa
Astrain.
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5.3
PROFILE OF CESCE
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CESCE IN 2014
Commitment to the
environment
CESCE is committed to the
protection of the environment.
As part of its daily activity, it
supports energy efficiency,
limited use of resources and
proper waste management.
As managing agent of risk
and internationalisation on
behalf of the State, it assesses
the environmental and social
impact of all its projects prior to
agreeing cover.
5.3.1. Environmental
quality at CESCE
CESCE promotes a preventive approach to support
the environment, encourages initiatives to increase
environmental responsibility and fosters the
development and dissemination of technologies
that respect the environment.
In order to apply the three commitments included in
the United Nations Global Compact, the company
controls direct impacts arising from its activity by
means of an Environmental Control System certified
by the ISO 14.001 Standard, implemented in 2004,
part of the ISO 9.001 Quality System.
Since the implementation of this system, gradual
improvements have been made to the facilities,
equipments and processes that have led to increased
energy efficiency and very significant reductions in
the main resource consumption indicators (paper,
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water, etc.) as well as a more efficient and responsible
management of generated waste (fluorescent
bulbs, batteries, toner, paper, etc.). Continuous
improvement in energy efficiency also complies
with the guidelines of the Cabinet Agreement of
20 July 2007 on the Energy Savings and Efficiency
Plan in Administration Buildings.
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Throughout the year, the number of copies/printings
fell by 8%, having amply met the paper reduction
target. To this end, the company implemented an
awareness campaign among the employees called
“Target: Paperless Office. Paperless Desk”. It reminded
employees of the goal set by the company in 2007
of a paperless working environment, to which the
computer systems were adapted. The campaign was
implemented over the intranet and using posters.
As part of its compliance with environmental
co m m i t m e n t s , C E S C E c a r r i e d o u t a s t u d y
Evolution of main
environmental indicators
(2012- 2014)
CESCE supports efficiency:
the consumption of electricity
and gas was reduced by 5%
and 36% respectively
Targets met
In 2014, as part of the continuous improvement cycle
of the Environmental Management System, CESCE
undertook to meet two targets: to reduce the average
number of copies/printings per employee by 2%
and to perform a study on alternative consumables
offering better environmental qualities. Both targets
have been met.
CESCE IN 2014
on alternative consumables offering better
environmental qualities. At the date of drafting this
report, the possibility of applying these to company
procurement contracts was being considered.
No specific energy consumption commitment
was set for 2014. However, there is a permanent
commitment to improving the energy efficiency of
facilities and equipment. Proof of this support for
energy efficiency is the reduction in electricity and
gas per employee of 5% and 36% respectively.
During the year the company commissioned from
Applus+ an Energy Simulation Study, designed to
analyse energy use compared to other buildings
of similar characteristics, having concluded that
these were comparable. Nevertheless, a number
of measures in addition to those in place in recent
2012
2013
2014
Water usage
(m³/employee)
10,06
9,40
9,59
Energy usage
(kW/employee)
2.252
2.106
2.009
24,51*
63,91
40,72
28,61
26,01
26,24
Gas consumption
(m³/employee)
Paper consumption
(kg/employee)
Copies/prints
per employee
4.658,8 4.363,5 4.012,6
Use of toner
(unit/employee)
0,57
0,49
0,72**
Recycled paper
(kg/employee)
91,34
94,01
95,34
* Consumption only as of September 2012, as diesel had
been used prior to this date.
** In 2014, the multifunction printers were replaced and now
lower capacity cartridges are used.
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years have been proposed and will be studied with
a view to application in the future.
Targets for 2015
The company has set two targets for 2015 in order
to improve environmental quality. Firstly, it aims to
reduce the number of copies/prints per employee
by an additional 2%, having considered that there
is still room to reduction in the use of paper.
Secondly, it aims to apply environmental criteria in
the procurement of I.T. equipment.
Promotion of responsible conduct
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promoted by WWF. The company switched off its
indoor and outdoor lighting for one hour at its head
office in Madrid and at its subsidiary Segurexpo in
Colombia, as well as provided a monetary donation
and publicised the event throughout its sales
network.
The publicity and dissemination of these actions
was made via the global intranet of the company
“Todos en Grupo”, which contains the evolution of
efficiency indicators, the degree of achievement
of set targets and all information related to good
environmental practices.
As an environmentally responsible company, it
promotes waste recycling (paper, plastic, toner,
etc.) among employees and organises awareness
campaigns for a more rational use of resources with
a view to achieving a “Paperless Office”. In 2014
it also launched a waste paper recycling initiative,
transforming waste paper into employee diaries. It
also continued to provide employees with the tools
and processes needed to separate waste deemed to
be hazardous for Safety, Health and the Environment.
5.3.2. The
environment in
projects on behalf of the State
For another year running, and as proof of the
company and employees’ commitment to the
protection of the environment, on 29 March CESCE
took part in the Hour of the Planet global campaign
CESCE encourages initiatives that promote greater
environmental responsibility and support the
development and dissemination of technologies
that respect the environment.
CESCE IN 2014
CESCE offers more favourable
financial conditions for projects
involving renewable energies,
mitigation of climate change
and water
Renewable energy and water projects
With this approach in mind and in application of
Annex IV of the OECD Agreement (regulatory
framework of export credit insurance), in projects
carried out on behalf of the State it offers more
favourable conditions – mainly in terms of longer
repayment periods – to projects involving renewable
energies, mitigation of climate change and water
(supply, distribution and treatment).
In 2014, two operations benefited from the
more favourable terms of Annex IV of the OECD
Agreement: two wind farms in Mexico for which
issued insurance amounted to around €300 million.
Moreover, in 2014 other policies in the renewable
energy sector have been issued that have not
benefited from Annex IV. One was an operation
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CESCE assesses the potential
environmental and social
impact of all projects
requesting State cover
concerning the construction of another wind farm
in Turkey and four others of contracts for equipment
for various photovoltaic facilities.
Social and environmental assessment of
transactions to be covered on behalf of the
State
In accordance with the “Common Approaches”
OECD Agreement, in its activity as managing agent
for internationalisation risk on behalf of the State,
CESCE assesses the potential environmental and
social impact of all projects submitted for cover,
in order to ensure that they all meet the highest
international standards.
The projects are reviewed and classified into three
categories according to the nature and importance
of the impacts generated by their implementation
in the environment where they are located, the
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CESCE IN 2014
maximum impact being
Category A and the
minimum or non-existent
being Category C.
In Category A and B
operations, CESCE ensures
the projects meet the
environmental and social
standards of the World Bank
b e fo re m a k i n g a n y co v e r
decisions. When granting cover,
it decides whether to subject it to
conditions prior/subsequent to
the issuance of the policy, such as
the implementation of prevention
measures, the minimisation of
impact or the necessary monitoring
requirements.
In order to carry out this assessment,
the company uses an innovative
environmental filter software called
Ecocheck. This tool automatically
conducts an initial assessment of
the information compiled, which is
then completed and validated by the
Environmental Department of CESCE.
In line with the “Common Approaches”
guidelines, CESCE provides public
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access to social and environmental information of
Category A projects during the processing phase of
the insurance. It also regularly publishes the list of
policies issued for operations classified as Category
A and B.
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OECD meetings of the various credit agencies of
OECD member States. At these meetings, reported
operations are analysed and the degree of application
of the “Common Approaches” is assessed in order
to ensure uniform application thereof across the
various countries.
CESCE IN 2014
During 2014, 8 policies classified as Category B and
none as Category A have been issued.
The company also provides reports on a six-monthly
basis to the OECD on category A and B operations
which have turned out a policy, and takes part in the
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CESCE IN 2014
Type B operations supervised on behalf of the State
NAME OF PROJECT
COUNTRY SECTOR
ENVIRONMENTAL
STANDARDS
CONCLUSIONS OF
ENVIRONMENTAL ANALYSIS
más información
Solar concentration energy plant
with a 100mW capacity KAXU
SOLAR ONE
South
Africa
Electrical
power
IFC Performance
Standards
The aim of the project is the construction of a solar electricity generation plant of 100 MW of
installed capacity. The project is estimated to generate greenhouse gas reductions equal to
315,000 tons/year.
Valuation: the management of the impacts arising from the project is deemed acceptable.
Solar concentration energy plant
with a 100mW capacity KAXU
SOLAR ONE
South
Africa
Electrical
power
IFC Performance
Standards
Operation: same project as above, therefore same analysis was performed.
Valuation: the management of the impacts arising from the project is deemed acceptable
Extension and
rehabilitation of
National highway I
Luanda
wholesale
market
Supply of two water treatment
plants for the solar plant in
Mojave
Construction of the
Zopiloapan and Stipa
Nayáa wind farms
Cercikaya
wind farm
Dominica
Energía Limpia
Wind Farm
GABÓN
Infrastructures WB Safeguard
and civil works Policies
The purpose of the project is the extension and rehabilitation of National highway I in Gabon.
CESCE had granted coverage previously for another previous phase of this project.
Valuation: a declaration is requested from the authorities confirming that the process had
been completed in accordance with said criteria.
ANGOLA
Food &
agriculture
European
Union Legislation
The purpose of the operation is to build and fit in turnkey mode a part of the Luanda
wholesale market.
Valuation: satisfactory, given that European standards will be applied
EE.UU
Electrical
power
World Bank
Standards
The operation consists of the design, assembly, supply and supervision of the installation of
two water treatment plants for the Mojave Solar Project.
Valuation: the impact shall not have adverse effects of significance by applying the
measures of design, environmental protection and good management practices proposed.
World Bank
Standards
The project consists of the construction of two wind farms of 70MW (Zopiloapan) and 74
MW (Stipa Nayá), both located in el Espinal, in the State of Oaxaca (Mexico).
Valuation: no significant impact expected on birdlife, although prevention measures and
monitoring will be carried out to detect potential collisions.
Mexico
Electrical
power
Turkey
Electrical
power
World Bank
Standards
Mexico
Electrical
power
World Bank
Standards
The project consists of the construction of a 19 turbine wind farm with a 3 MW capacity
each.
Valuation: satisfactory
Consists of a 100MW wind farm in Charcas, San Luis de Potosí (Mexico).
Valuation: the impact on birdlife of the operation is expected to be moderate given that
the specific wealth and abundance of fowl with collision potential are low. Measures will
be reinforced during migration seasons.
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5.4
PROFILE OF CESCE
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CESCE IN 2014
Commitment to good
governance
The organisational structure
of CESCE ensures the
achievement of corporate
objectives and the equitable
treatment of its shareholders.
As a largely publicly-owned
company submitted to citizens’
scrutiny, it complies with Law
19/2013 on Transparency,
Access to Information and
Good Governance and displays
integrity in all actions, as
set forth in the Ethics Code
approved in 2014.
5.4.1. Corporate
Governance Bodies
CESCE’s main corporate governance bodies are
the General Shareholders’ Meeting , the Board of
Management , the Board Committee and the Senior
Management Team.
The General Shareholders Meeting is the main
representative body of the company. Its main
responsibilities – set forth in Article 160 and
following of Royal Legislative Decree 1/2010 of 2
July, approving the consolidated text of the Capital
Companies Act – are the approval of the annual
financial statements of the company and of the
consolidated group, the validation of management
by the Board of Management and the proposed
allocation of earnings.
The Ordinary General Meeting meets at least once
annually within the first six months of the financial
year. In 2014, this meeting took place on 29 April.
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The Board of Management is
made up of fifteen members,
eight of which represent the
Spanish State
The Board defines general corporate policy, has the
appropriate structure to implement it and supervises
management compliance with the targets set. It also
holds all powers not eligible for delegation set forth
in Article 249bis of the Capital Companies Law.
The Board assumes all responsibilities assigned
by the majority shareholder, which is the Spanish
State, via the Regulatory Instruction on Relations
with State-Owned Companies in which the DGPE
has a stake (8 February 2007).
CESCE’s Board of Management consists of fifteen
members, eight of which – including the Company
Chairman – represent the State, the others insurance,
financial or credit institutions.
The Executive Chairman was appointed by Royal
Decree 2062/2011 dated 30 December at the
proposal of the Minister of the Economy and
Competitiveness and with prior Cabinet approval.
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CESCE IN 2014
The Board held eleven meetings in
2014.
Executive Committees
In order to assist it in its tasks and
optimise its efficacy, CESCE’s Board
of Management has created Executive
Committees. The Committee on State
Risk in 2014 held eighteen on-site meetings
and thirty meetings via remote electronic
means, now no longer operational since
the coming into force of Law 8/2014. The
Committee on Proprietary Risk held twentytwo on-site meetings and forty-six via remote
electronic means. There is also an Audit
and Control Committee and a Delegated
Committee for Director Remuneration and
Compensation, which met on five and one
occasion, respectively.
Senior Management Team
The Senior Management Team is responsible for
meeting all the corporate targets set by the Board
of Management. It is made up of the Executive
Chairman, six Senior Management members and
four directors: a total of eleven highly qualified and
renowned professionals in their various areas of
specialisation.
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CESCE IN 2014
Principles of the
CESCE ethics code
Compliance with
the legal and regulatory framework
The remuneration
of the Board of Management
in 2014 amounted
to €140,104
Socially responsible actions
Respect for Human Rights
Protection of the Environment
Anti-corruption and bribery
Ethical behaviour
in business development
Objectivity, responsibility and independence in
decision-making
Confidentiality of information
Safeguard the corporate image and reputation
Information veracity
Objectivity in contracting
Use and protection of assets
Commitment to employees
Zero tolerance of discriminatory actions
Respect in labour relations
Safe and healthy working environment
Professional development
Remuneration
In 2014, the remuneration of the Board of
Management, made up of fourteen members plus
the Chairman (although the latter does not receive
any remuneration whatsoever as administrator, as
he is a Senior Executive), was of €140,104.
The remuneration for the Senior Management of
CESCE is governed by what is set forth in Royal
Decree 451/2012 dated 5 March, regulating the
system of remunerations for senior managers
and directors in the public business sector and
other entities.
The remuneration paid to the Chairman or
maximum representative of the company
amounted to €210,000, and that of Senior
Management, to €939,094.
5.4.2. Ethical
framework
CESCE conducts its business in accordance
with applicable legislation and the fundamental
principles set forth in the United Nations Global
Compact. In 2014, the company took a step further
in its commitment to integrity and responsible
management, by approving its first Ethics Code on
24 June 2014.
This general framework for action contains the
criteria which must govern the decisions and actions
of the company with its stakeholders. Its various
rules and specific procedures are supported by this
framework.
All company employees must know and respect the
Ethics Code.
As set forth in the legislation, in 2014 an Ethics Code
Committee was created, responsible for keeping
current with the principles and values expressed
therein and to ensure their application in all areas
of the company. For this purpose, it considers
the various suggestions received via the different
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The role of the Ethics
Committee, created in 2104, is
to keep current the principles
and values contained in the
Ethics Code
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For the purpose of dissemination outside the
company, the Ethics Code is available on the
corporate website and is being used by customers
and suppliers. It is also mentioned in the Progress
Report.
5.4.3. Risk
Management
channels in place. The Ethics Code Committee
meets on a regular basis and is made up of four
members from different areas of the company.
Dissemination
During the year, several initiatives were carried out
to disseminate the Ethics Code among employees.
This included it being sent to all directors and
country managers of the group by the chairman and
its publication in the corporate intranet along with
an explanation thereof and the development of the
culture of good governance. As a reinforcement, it
appeared as the first news item in the 2014 Newsletter,
addressed to the entire staff and containing the most
important news items in the year.
The Company has a Risk Management System
designed to detect, assess and respond to any
eventualities which could potentially affect its
business.
The main bodies responsible for risk supervision and
processing, from the initial detection phase through
to the final mitigation phase are: Business Risk Unit,
Internal Audit Unit, Audit and Control Delegated
Committee and Board of Management.
The CESCE Enterprise Risk Unit, created in 2013,
monitors and guarantees the appropriate actions by
the company in the face of business risk. It reports
directly to the Chairman and, functionally, to the
CESCE IN 2014
The Enterprise Risk Unit at
CESCE monitors and ensures
the appropriate action by
the company in the face of
business risk
Board of Management. It is responsible for all units
involved in internal control and management.
By creating this Unit, CESCE meets the increasing
regulatory requirements (Solvency II) and business
risk requirements (ERM) seeking to strengthen
internal control functions, segregating control
functions from operational activity.
The main duties of Internal Audit are to carry out
process audits and, generally, to detect risks which
may significantly affect the performance of the
company at the various levels. It also verifies the
adequacy and efficacy of the internal control system
and other governance system components.
This unit depends functionally and independently
on the Audit and Control Delegated Committee of
the Management Board and hierarchically reports
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The main risks of CESCE are the
technical-insurance risk, credit
risk, market and liquidity risk and
operating risk
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CESCE IN 2014
In order to identify these risks, the
internal control unit has designed a risk
map to identify and then analyse and
make decisions on the main risks. The
ultimate purpose of this risk assessment
and identification process is to mitigate the
potential impact thereof on the company’s
financial statements.
Combating fraud
to the Head of the Business Risk Unit, who in turn
reports to the Chairman of the Company. Its scope
of action extends to the entire CESCE group.
The Delegated Audit and Control Committee of the
Board of Management comprises three members
and directly reports to the Board of Management
informing on meetings held and actions carried out.
The Board of Management is the body that is
ultimately responsible for implementing, supporting
and developing internal control procedures.
CESCE considers fraud as one more operating
risk. The company has a Global Fraud Risk
Committee with representation from all areas,
which analyses the policies and procedures of the
head office and the subsidiaries in Latin America,
prepares and renews criteria on prevention of
fraud and discusses the actions carried out by
the various areas.
Objectives of risk management and control
The Executive Committee, on its part, makes case
by case decisions and establishes restrictions
which might affect the different business areas.
The members of the Executive Committee are also
members of the Global Fraud Risk Committee.
The main risks of CESCE, grouped according to
their impact on key processes are the technicalinsurance risk, credit risk, market and liquidity risk
and operating risk.
In order to avoid fraud, there are also automatic
processes in place which prevent the acceptance of
operations involving companies that are included in
other operations previously classified as fraudulent.
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To this end, CESCE has a fraud data base containing
case records that have been classified within this
risk.
Finally, the Internal Audit Unit conducts timely
reviews, assessing the possibility of occurrence
of internal or external fraud risk and the
organisation’s response to it.
CESCE IN 2014
CESCE has
an anti-corruption policy
applicable to any modality
on behalf of the State
In its fraud prevention effort, CESCE collaborates
with a number of different institutions,
commissions and departments of other entities,
as well as the State Security Forces.
Anti-Corruption policy
CESCE endeavours to eradicate all forms
of corruption, including extortion and
bribery both in proprietary business, via a
fraud management system, and business
on behalf of the State.
CESCE’s anti-corruption policy is
applicable to any modality of coverage
granted on behalf of the State, in
accordance with the Anti-Corruption
Convention of the OECD.
In accordance with this policy, before
issuing an insurance policy, CESCE
requires the exporter to declare that it has never
committed any offence of corruption in relation to
the operation for which official support is sought,
nor is or has it been involved in legal proceedings
for corruption of a public official. The company
shall inform the potential beneficiaries of official
support on the legal and criminal consequences of
engaging in corruption . It shall also verify whether
the applicant company figures in the lists of entities
excluded from official support of any international
financial institution (IFI).
In the event of grounded suspicions of bribery,
CESCE informs the legal authorities and takes
the pertaining preventive or corrective measures,
which may include the suspension of the study of
the application or the support.
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CESCE IN 2014
5.4.4 Senior Management Team
Chief Executive Officer:
Mr. Álvaro Bustamante de la Mora
Head of Business on behalf of the State:
Ms. Beatriz Reguero Naredo
Head of Operations on behalf of the State:
Ms. Beatriz Reguero Naredo
Head of Country Risk and Debt Management:
Mr. Ricardo Santamaría Burgos
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CESCE IN 2014
Head of Proprietary Business
Mr. Luis Antonio Ibáñez Guzmán
Technical Management
Mr. Luis Antonio Ibáñez Guzmán
Corporate Sales Management
Mr. Juan Antonio Mateo Jiménez
Marketing & Communication Management
Ms. Isabel Colomina Casaus
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CESCE IN 2014
Chief Financial Officer
Ms. Pilar Andrés Hermán
Human Resources Management
Mr. Francisco Gea Barberá
Legal Department
Mr. Jaime de Miguel Muñoz
Systems and Organisation
Mr. Mariano Arnáiz Mateo
Enterprise Risk Unit
Mr. José Manuel Val López
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CESCE IN 2014
5.4.5 Board of Management
Chairman
Mr. Álvaro Bustamante de la Mora
CESCE
First Vice-president
Mr. Álvaro Aresti Aldasoro
Director of Global Customers and IBC of Grupo BBVA
BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Second Vice-president
Mr. Antonio José Fernández-Martos Montero
General Manager of Trade and Investment
MINISTRY OF ECONOMY AND COMPETITIVENESS
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CESCE IN 2014
Members of the Board
Mr. Fernando Merry del Val Díez de Rivera Adviser TRADE DEPARTMENT PRIVATE OFFICE
Mr. Fernando Eguidazu Palacios
General Manager of International Economic Relations
MINISTRY OF FOREIGN AFFAIRS AND COOPERATION
Mr. José Corral Vallespín General Deputy Director of Risk
GRUPO SANTANDER
Mr. Francisco Javier Fernández De Trocóniz Núñez
Director of IBC España and Portugal – Corporate and Investment Banking
BANCO BILBAO VIZCAYA ARGENTARIA
Ms. Virginia Alonso Albarrán
Economic Adviser of the Ministry of the Treasury and Public Administrations
MINISTRY OF THE TREASURY AND PUBLIC ADMINISTRATIONS
Mr. Jaime Ybarra Loring General Manager of Wholesale Banking
BANCO SANTANDER - (FUSIÓN BANESTO)
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CESCE IN 2014
Mr. Mariano Olmeda Sarrión Deputy General Manager
GRUPO SANTANDER, S.A.
Mr. José María Fernández Rodríguez General Manager of Treasury
Mr. Joaquín Rizo Fernández
General Secretary and CFO
ESPAÑA, S.A. CIA. NACIONAL DE SEGUROS
Mr. Sergio Pérez Saiz Deputy General Manager of Financial Development of Internationalisation
DEPARTMENT OF TRADE
Mr. Francisco Vallejo Vallejo Chairman
SABADELL URQUIJO – BANCA PRIVADA
Mr. Jorge Guillermo Pipaón Pulido
State Attorney in Department of Trade
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CESCE IN 2014
Secretary
Ms. Mª. Belén Plaza Cruz
State Attorney
General Directorate State Assets
Deputy Secretary
Mr. Jaime de Miguel Muñoz
Head of Legal Department
CESCE
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2014
PROFILE OF CESCE
BUSINESS LINES
CESCE IN 2014
Advisors
Mr. Pablo De La Torre Rodríguez Director International Banking
BANCO POPULAR ESPAÑOL
Mr. Luis Orgaz García Head of Country Risk
BANK OF SPAIN
Mr. Ignacio Ramiro Ruiz de Ojeda Managing Director
DEUTSCHE BANK
107
Annual
Report
2014
PROFILE OF CESCE
BUSINESS LINES
CESCE IN 2014
Other attendees
Ms. Pilar Andrés Hermán Financial Director
Ms. Beatriz Reguero Naredo Head of Business on behalf of the State
Mr. Ricardo Santamaría Burgos Head of Country Risk and Debt Management
Mr. Luis Antonio Ibáñez Guzmán Head of Proprietary Business
Mr. José Manuel Val López Head of Enterprise Risk Unit
108
PUBLISHED BY: CESCE
Velázquez 74, Madrid.
www.cesce.com
Annual
Report
2014

Annual Report 2014

Transcription

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