CFC Update

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CFC Update
REMA Financial Managers Summer Conference
August 21, 2009 The Inn On Lake Superior
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CFCs 40th Anniversary

• Three qualities are hallmarks of CFCcommitment,
  innovation and financial strength.
• CFC has stayed true to its missionensuring that
  electric cooperatives have the funding they need
  to keep the lights on in rural America.
• CFC has pioneered innovative services and
  products to help grow and transform the
  cooperative network.
• CFC remains financially strongconsistently rated
  A or higher by leading investment ratings
  agencies.

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New CFC Headquarters Building

• In July CFC Board of directors approved
  proceeding with final design and construction of
  new headquarters building project.
• Anticipated that CFC will occupy new building in
  fall of 2011.

4
CFC Member Capital Securities

• Purchase of MCS boosts CFC equity to ensure it
  has funding capacity members will need to
• Support their projected growth levels
• Maintain plant and equipment
• Build new generation.
• As of July, CFC members purchased 330 million of
  Member Capital Securities.

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CFC Patronage Capital

• New policy to ensure CFCs continued strength in
  capital markets during time of increasing member
  demand for funding.
• Retirement of 50 percent of CFCs allocated net
  margins from prior fiscal year, with remaining 50
  percent retained for 25 years.
• Members still notified of their exact retirement
  amount in late August or early September.

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CFC InterNotes Program

• CFC InterNotes
• Offers further investor diversification
• Allows CFC to access maturities not otherwise
  attainable
• Lowers CFCs funding costs for members
• CFC has sold 770 million of InterNotes to
  individual investors in 2009.

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Financing EC Acquisitions

• Since 2000, CFC has helped finance 14 electric
  co-op acquisitions of investor- or
  municipal-owned utilities
• Acquisitions added 315,000 new consumers to
  cooperative network.

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CFC Key Ratio Trend Analysis - KRTA

• Financial and operational results of 819 electric
  distribution cooperatives.
• Major findings included
• Revenues kept pace with rising fuel costs.
• Primary financial ratiossuch as debt service
  coverage and equityremain stable.
• Median growth, in terms of both consumers and kwh
  sales, still remain positive and consumers are
  paying their bills on time.

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Co-op Financial Professional

• CFC and NRECA to deliver new Cooperative
  Financial Professional Certificate Program.
• Limited to just 25 participants
• Program combines accelerated educational seminars
  with case study analysis.
• 1 week in Madison, Wisconsin
• On-line classes at home
• 1 week of case studies at CFC headquarters

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CFC Contributions to Co-op Network

• 20 billion in outstanding loans
• Cooperative.com support of 400,000
• Network event sponsorships of 500,000
• CFC Forum of 800,000
• Education Fund of 600,000

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CFC 2009 District Meetings

• CFC business meeting to have new format
• Election of board candidates and balloting for
  Financial Expert position and presentations by
  CFC board chairman and secretary/treasurer begin
  immediately following NRECA first general
  session, but no later than 1130 a.m. on Day 1.
• Meeting followed by CFC-sponsored luncheon for
  all attendees.
• Governor and CEO Sheldon C. Petersen will provide
  featured presentation during luncheon.

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CFC Update

• Thank you

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