Impact of the current economic situation

on supply chain strategy in Russiaon supply chain strategy in Russia

Christian Leysen

Executive Chairman Ahlers nv

7th European 3PL Summit

Brussels, 24 & 25 November 2009

100 years of Ahlers History

� 1909 shipping agent in the port of Antwerp

� 60s expansion into liner services and ship management

� 70s - 80s expansion into international � 70s - 80s expansion into international forwarding and warehousing

� 90s expansion and internationalisation of all 4 activities

� 2009 a global logistic and maritime service provider

Ahlers : 1 Company, 4 Activities

CrewingTraining

Liner agenciesPort agencies

Break bulkContainers

WarehousingAdded servicesTraining

Projects

20 staff300 seamen

Belgium, France, Congo, Angola,

Gabon

Port agencies

580

15 countries in Asia,

Containers

staff

CIS and Europe

Added services

220 staff

Belgium, Russia,Ukraine

Our Network

Warehouses

• Ghent

• St-Petersburg

• Kharkiv

• Dnepropetrovsk

• Shanghai

• Semarang

Facts & Figures

� HQ in Antwerp, Belgium

� Own entities in 20 countries : Africa, Asia, CIS and Europe

� 1,120 people - € 270 million turnover

� Partner network around the world

� 100 years – privately owned by founders family

1960’s

Ahlers operated liner trade on Baltic Sea to nordic countries and former Soviet Union in 1960’s (Ventspils -at that time USSR, now Latvia).

Antwerp Hansa Cruise 1992

Vladimir Putin

� 1993 Liner & forwarding agent

� 1996 Started as warehouse (rented) operator

History of Ahlers in Russia

� 1997 Licensed customs broker

� 2000 Purchase land plot

� 2003 Start construction ALC

Ahlers in Russia Today

� Shipping agency

� International Forwarding: multimodal solutions

� Specialist in project and break bulk cargo

� Licensed customs broker

� Ahlers Logistic Centre (ALC)

200 people

� Licensed since 1997

� Listed in Register of Customs Brokers with non limited region of activities

Customs Brokerage

� Operate with Baltic, St. Petersburg, Pulkovo and Excise Customs houses

� Own offices in port area

Ahlers Logistic Centre (ALC)

LocationLocationLocationLocation

SEA PORTSEA PORT

-- in the region of sea portin the region of sea port-- on the ring road of St. Peteon the ring road of St. Pete-- close to the main transport routesclose to the main transport routes

80 km

ALCALC

RING ROADRING ROAD

80 km

ALC

ALC

Economic situation in Russia

GDP (% real change pa)

-4

-2

0

2

4

6

8

2008 2009 2010 2011 2012

Consumer price inflation

(% real change pa; av)

5

10

15

20

Source: Russia business outlook, The Economist, November 2009

-8

-6

RUSSIA MAIN CIS EASTERN EUROPE

0

2008 2009 2010 2011 2012

RUSSIA MAIN CIS EASTERN EUROPE

Main CIS: Azerbaijan, Kazakhstan, Moldova, Russia, Ukraine, Uzbekistan

Eastern Europe: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Macedonia, Poland, Romania, Slovakia, Slovenia

Living Standards

Retail sales

Market size indicators

2009 2013

Population (million) 141.4 139.6

Nominal GDP (US$bn) 1,285 1,916

GDP per head (US$ at PPP) 14,900 18,390

Private consumption per head (US$) 4,580 6,750

Total imports (US$bn) 205 294

Private consumption (% of GDP) 50.5 49.1

Government consumption (% of GDP) 19.4 18.2

Gross fixed investment (% of GDP) 20.3 19.5

Why is SCM hot ?

� Human Resources– Employer loyalty

– Management model

– Nationalism + regional competition

– Know how

Where are the opportunities?

� Physical product flows– Bottlenecks

– Administration & regulation related issues

– Short term vision embedded in culture

– Uncertainty -> forecasting ?

� Customs– Changes in import duties for some products to

stimulate added value industry

– Closure of main customs points in Moscow

– 1 customs zone for RU, BY, KZ

Where are the opportunities ?

� Survival of the fittest– Supply chain management gets more C-level

attention

– M&A opportunities

– Capacity moves to capability

A practicle example

Consumer GoodsConsumer Goods

Real life case

Situation as it was

Asia

NDC Russia (ALC)

Central Asia

CIS

KZ

2009

Europe

Local prod

CIS HQ CG

Wholesaler - regions

Retail DC MOW LSP 2

Physical flow

Buffer Stock MOW LSP 3

X- dock

Near Future ?

Challenges of tomorrow

� Topograhy

Source: Cap Gemini

Join us on www.ahlers.com

More information ?

Stefan Van DoorslaerGeneral Manager Ahlers Russiastefan.van.doorslaer@ahlers.com+ 7.921.903.87.28

Ellen TheeuwesBusiness Development Manager Ahlers Logisticsellen.theeuwes@ahlers.com+ 32.3.543.77.25

Christian LeysenExecutive Chairman Ahlers nvcleysen@ahlers.com+ 32.3.543.73.11

www.ahlers.com

www.ahlers.com