Confidential - © 2008 - Ducker Worldwide ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL 1 Ducker Worldwide Global Headquarters:

1Confidential - © 2008 - Ducker Worldwide

ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL

Ducker Worldwide Global Headquarters: 1250 Maplelawn – Troy, MI 48084. 248.644.0086. www.ducker.com

Becoming a Global Company – Get Moving!

Prepared For: Presented By:

Learn How to Effectively Research and Target a New Geographic Market Before You Enter

February 17, 2009



Ducker Research Goes Global

Ducker EuropeHQ: Paris

1996 2000 20082004

Ducker EuropeExpands into Berlin

Ducker AsiaBangalore India

Ducker AsiaExpands into China

Asia HQ: Shanghai, China

Ducker Research Changes Brand Name

Ducker Worldwide

What Did We Learn in The

Process?



10 Ways to Take Your Business Global*

1. Discover Why Going Global is Important

2. Build Your Foundation

3. Map Out Your Global Journey

4. Develop Sales and Distribution

5. Make it Happen

6. Build Your Business

7. Keep Learning

8. Create Your Future

9. Manifest New Frontiers

10. Reap the Rewards of Global Trade

Source: Laurel Delaney; Work Z



10 Ways to Take Your Business Global

1. Discover Why Going Global is Important

Potential of Overseas Markets

Approximately 10 percent of US businesses export though 95% of the world’s population lives outside the US

Global Customer Base

Multi-national businesses seek partners, suppliers with similar global footprint

Cost Advantage, Technology Advancement

Certain regions provide cost advantages; others bring advanced technology to services, products




2. Build Your Foundation

A New Mind-Style is Required

Global business requires an open mind and persistent attitude

Define Vision and Objectives for Global Strategy

Articulate your business vision including objectives for global expansion

Begin Planning Your Road Map

Establish plan for studying global markets, assessing opportunities and making “Go/No Go” decisions




3. Map Out Your Global Journey

Execute the Plan

Explore your territory

Conduct market research

Choose a market

Segment your product and market

Keep yourself on track

Finalize the implementation strategy

Ensure your product or, service stands on its own merits globally

Define roles and responsibilities

Determine necessity for local presence



India likely to be among the top 5 economies by 2025

Source: McKinsey & Co.



Indian middle class expansion will create huge consumption led growth




Significant demand elasticity




19.7 19.1 19.2 21.0

16.7 16.6 17.0 17.0

5.8 5.4 5.5 5.4

11.0 18.2 22.0 24.00.7

1.73.0

4.7

2.1

8.1

11.2

14.5

56.0

69.1

77.9

86.6

2001 2007 2010e 2015e

As a result, China and India are becoming major automotive markets

Global Auto Market Growth

Source: PWC, Global Insight, Ducker Analysis

ROW 7 4

Japan -1 0

Western Europe 0 0

North America -1 1

India 16 14

China 25 8

CAGR (%)

2001-2007 2007-2015e

(Millions of units sold)



Translated to the addressable market for auto components = ~ $700B by 2015




Source: ACMA, McKinsey, Ducker Analysis

Indian Auto components industry is successfully managing high growth

3.1 3.3 3.9 4 4.5 5.4 6.78.7

10.5

18.5

40

0

5

10

15

20

25

30

35

40

45

1997 1998 1999 2000 2001 2002 2003 2004 2005 … 2009 … 2014

1997-2000 9% CAGR

2000-2005 20% CAGR

2005-2014 17% CAGR

$ billion

Automotive Components Growth



China and India still have small share of US auto component imports

U.S. Imports of Automotive Components

Source: U.S. Commerce Dept., Ducker Analysis

-

10

20

30

40

50

60

70

80

90

100

110

Wor

ld

Mex

ico

Can

ada

Japa

n

Chi

na

Ger

man

y

Kor

ea

Tai

wan

Bra

zil

Fra

nce

UK

Tha

iland

Italy

Indi

a

Bill

ion

s

1995

2007



Understanding regional opportunities / differences is a key success factor

Source: ACMA, McKinsey, Ducker Analysis

$267

$386

$612

$800

1980 1990 2000 2005

$189

$264

$312

$400

1980 1990 2000 2005

Wealthiest States,

Real GDP/Capita, $

Poorest States,

Real GDP/Capita, $

Delhi

Chennai

Bombay, Pune

Automotive Hubs

Source: Ducker Analysis



Several hiccups ahead - Infrastructure (roads, air/sea ports, power) is still a bottleneck, but India ranked favorably as a country hospitable to investors

Source: Heritage foundation, Forbes, World Bank, McKinsey, World Economic Forum, Ducker Analysis

Problem factors for doing business in India Countries Most Hospitable to Investors (score)

3%

5%

5%

5%

15%

16%

22%

25%

Lack of access to finance

Poor work ethic

Policy instability

Tax regulations

Restrictive labour regulations

Corruption

Inefficient bureaucracy

Inadequate infrastructure92

91

89

88

86

84

84

83

83

82

72

69

66

60

58

44

41

21

USA

Canada

Japan

Denmark

Norw ay

Hong Kond

Sw eden

UK

Australia

Singapore

Taiw an

S. Korea

Malaysia

Thailand

India

China

Philippines

Vietnam

DevelopingCountries

22 - 40% of political

candidates face criminal charges in

India




4. Develop Sales and Distribution

Position Product to Achieve Success

Price your product/service Promote your product/service Position your product/service Place your product/service (channels)

Initiate, Cultivate and Maintain Customer Relationships

Leverage trade networking programs: Trade shows, trade missions, business networking groups, advertising

Define Cross-Border Customers

Multi-national customers want partners, suppliers with premium and consistent global quality and service




5. Make It Happen

Successfully Deliver Products and Services

Pick a payment method Pack it up Put transportation to work Plan to document everything

Measure Success, Refine Strategy

Actively measure performance and refine strategy as necessary

Speed and action are critical to success

Evaluate Company Structure

Continue to assess necessity for local presence; sales and manufacturing




6. Build Your Business

Define Roles and Responsibilities

Define goals and objectives for business leaders and team charged with global expansion

Set an Unprecedented Standard of Professionalism

Service your new customers – above and beyond

Customer retention is primary goal

Build a Team Dedicated to Global Business

Serving global and foreign customers requires expanded skills




7. Keep Learning

Embrace the Culture

On-the-job training will enhance the experience Sensitivity and respect for overseas customers

critical to success Expand your cultural consciousness

Stay Alert to Industry and Geographic Trends

As emerging markets involve to established markets, customers’ needs change and so should your products and services

Innovation

Innovation of products and services is necessary for sustainability




8. Create Your Future

Build Your Marketing Engine

Expand your Internet reach Evaluate advertising partners Secure sales structure

Build Your Sales Engine

Expand sales team with local representatives, employees

Build Your National Presence

Determine and assess the need for local presence (manufacturing, sales and marketing)




9. Manifest New Frontiers

Explore New Overseas Markets

Pursue similar process for new frontiers Research where to go next Evaluate alliances, partnerships

Understand the Global Customer Base

Go where your customers want you to go

Expand Products and Services to Meet New Markets

Tailor product and service to new market needs without compromising core competencies




10. Reap the Rewards of Global Trade

Profitable Growth

Increased Shareholder Value

Technology Advancement

Cultural Understanding

Adventure!!!

Documents

Confidential - © 2008 - Ducker Worldwide ducker.com Transportation * CONSTRUCTION * INDUSTRIAL * materials * FINANCIAL 1 Ducker Worldwide Global Headquarters: