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30 September 2015
Avans Hogeschool
Dr. Jan Siemons
CEO Netherlands Council for Trade and Investment
Promotion (NCH)

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Trusted since 1946
WHO are we?
Worldwide network
• Private organisation founded in 1946 by and for the Dutch business community
Some sponsors
• A worldwide network of knowledge, experience and contacts
Some business partners

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NCH: the right Business Partner when planning to expand into a new foreign market
• Trade and investment promotion
• Trade missions and exhibitions
• Collective participations in trade fairs and networking events
• Matchmaking
• Hands-on export development on behalf of individual companies
• Country and region comparisons
• International market entry strategy
• Alliance management
• Roundtables and sparring meetings for specific countries and/or industrial sectors
• Assistance with technology transfer
• Lead generation on behalf of Investment Promotion Agencies among Dutch businesses

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Key Questions Related Activities
Identify
Leading
Practices
Develop
Preliminary
Market Size
Estimate
Develop
Initial
Business
Case
Develop
Refined
Business
Case
1.
What is the market opportunity for global expansion?
Envision
Potential
Business
Opportunities
2.
What competitive advantages does the company want to leverage to build its global expansion strategy?
3.
Which markets should the company enter?
Assess
Current
Strategy and Core
Competencies
Conduct
Initial Market
Scan
Define Market
Requirement and Assess
Competitive
Environment
Determine
Market
Selection
Criteria
Determine
Initial Expansion
Objectives
Select
Focused
Market List
Refine Global
Expansion
Objectives
Conduct
Detailed
Market
Assessments
Develop
Initial Market
Entry
Profiles
Develop
Final Market
Entry
Plan
4.
What is the appropriate relationship structure for each market?
Identify
Potential
Relationship
Structures
5.
What is the appropriate operating model for each market?
Identify
Potential
Operating
Models
Determine
Relationshi p Structure by Market
Assess
Current
Capabilities
Identify
Potential
Acquisition
Targets or
Partners
Define
Operating
Model
Requirements by Market
Develop
Partner
Evaluation
Tool
Define
Base
Operating
Model
Prepare
Prospectus for Potential
Partners
Define
Base
Product/Source
Offerings
Negotiate
Acquisitions and
Partner
Agreements
Develop
Customized
Product/Service
Offerings and
Operating Model
There are many interdependencies between these activities

Business strategy driver for business functions
It is the overall business strategy that must drive the customer service and real estate/supply chain strategy
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Business strategy
Customer service strategy

Go to market decisions
 Resource utilization
 Management priorities

Channel selection
 Product/market allocation

Service offerings
Real estate/ supply chain strategy

Number and location of facilities
 Inventory positioning

Transportation solutions
 Partner selection

Ten corporate strategies to navigate through the storm
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Strategies
A Market focus
1 More customer focus (super pleasing, after market service, pricing)
2 Focus on (new) powerful markets
B Cost focus
3 Downsize/take-out capacity
4 Reduce working capital/reduce inventory throughout the chain
5 Outsource activities
6 Transforming fixed costs to variable cost
7 Geographical optimisation back offices
8 Analyse offshoring/nearshoring options
C New products & innovation focus
9 Link up with best talent pools
10 Broader technology base via open innovation

, NCH
Shareholder value
Revenue growth
Capital deployed
Cost reduction
= High = Medium = Low

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1. Kick off
Project
Definition
Strategic Context
Business Drivers
Current State/ Future
State
– activities/ processes
– volumetric
– scale/headcount
– languages/skills
– flexibility/ change
– retain/relocate staff
– access
Configuration Options
– processes
– headcount(s)
– locations
Project Assumptions/
Specification
Location Criteria
2. Location Assessment and Short listing 3. Implementation
Identify Candidate
Options
Location Screening of
10 Cities and Key
Location Criteria
Regulation/Tax
Network Access
Access
Labor Availability
Costs
Existing Centers
Decision
–Threshold
Analysis
–Sensitivity
Review
4 Candidate
Cities
Candidates Cities to Shortlist Options
Labour Market Driven
Labour Market
Analysis
–languages
–attraction
Relocation
Potential
Relative Costs
–labor/property
Site/property availability
Accessibility
Financial Incentives
Decision
–Cost/Benefit
Trade -offs
Shortlist 2 Cities
(
Subject to Validation /
Community Visits
Shortlist and
Final Selection
Validation
Existing
Employers
Recruitment
Agencies
Development
Agencies
Site/Property
Options
Initial Incentive
Negotiations
Test Adverts
Decision
–Cost/Benefit
Trade -Offs
Selected Location
– subject to incentives & property
Property and
Incentives
Property
– design concept
– surveys
– negotiation
– heads of terms
– legal
Incentives
– business case
– strategy & positioning
– application
– negotiation
Integrate with
Recruitment strategy/ HR planning
Acquired
Property/Incentives
Property Fit - Out
Project Plan / Risk management
Design plan
Procurement
Route
–IT/telephony
–furniture
–workstations
Contractors
Approval
Fit-out Works
Phased Handover
New Facility

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Tomorrow’s location factors
Workforce
Talent supply
Innovation capabilities
Educational capabilities
Workforce mobility / brain gain
Workforce flexibility
Competitive unit labors cost
Attractiveness
Life style attractiveness
Migration and expat polities
Attractive Tax system
International schools
Good health care
Low crime rate
Good housing market conditions
Business
Growth market
Growth,
Talent,
Flexibility
Strong growth fundamentals
Low government involvement and cost
Global competitive regulation
Stable government (financing)
Tax effective
Geographic
Strong cluster eco-system
Proximity to competitive market
Access to talent supply
Mobility infrastructure
High tech infrastructure
International connected economy

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Overview of our services portfolio:
Level
Type of assistance Business intelligence
Strategic
Market knowledge
Marketing consultancy
Market positioning
Organisational advice
Marketing
Tactical/ operational
Investor analysis
Implementation Operational support

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Level
Type of assistance Business intelligence
Strategic
Market knowledge
Tactical/ operational
Marketing consultancy
Market positioning
Organisational advice
Marketing organisation
Investor analysis
Implementation Operational support
 Analysis of potential target groups

Feasibility studies on new concepts, markets or clusters
 Investment climate studies and investor surveys
 Benchmarking of regions or cities vis-
àvis competitors
 Identification and selection of promising target groups
 International market positioning and profiling
 Strategies to attract foreign investors
 Development and review of promotion strategy
 Audit services (budget, strategy, personnel) and defining success factors
 Offices networks and organisation abroad

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Level
Type of assistance Business intelligence
Strategic
Market knowledge
Tactical/ operational
Marketing consultancy
Market positioning
Organisational advice
Marketing organisation
Investor analysis
Implementation Operational support
 Segmentation of the inward investment market
 Research on industry sectors, investment types and/or donor countries
 Trends in location behaviour and site selection
 Analysis of lost and implemented investment projects
 Use of tools and instruments like PR, direct marketing, advertising, event marketing, etc.

Operational marketing action plans (next 6-18 months)
 Hands-on training of
(international) marketing staff
 Project management
 Anchoring of companies and after care/investor development programmes

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Trade & investment : why The Netherlands?
 Strategic location within Europe with global accessibility (Schiphol and
Rotterdam) and excellent infrastructure
 Competitive fiscal climate : attractive international tax planning options
 Strong logistics and technology infrastructure : next to Schiphol and
Rotterdam, is the Netherlands one of the most ‘wired’ countries in the world, a dynamic force in electronic commerce, cable and digital communication systems
 International business environment : an international outlook and openness to foreign cultures and investment is firmly ingrained in the
Dutch culture
 Solid workforce : highly educated, flexible, motivated and multilingual workforce
 Quality of life : high standard of living and quality of life
 Innovation environment : open innovation approach and well organised public-private partnerships can create business acceleration

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Observations
• Overall FDI back on the rise (UNCTAD)
• An additional $800 billion outbound investment from China
2011-2016, Europe is the leading destination for Technology and Services investments. (A-CAPITAL DRAGON INDEX)
• FDI into G20 continues to decline (UNCTAD)
-- FDI job growth China/India > 2x US (absolute)
-- Small countries attract more new jobs % (relative)
• Global corporations reshape their international footprint

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Observations
• Location decisions don’t stand alone (global footprint)
• CEO’s look to capture growth opportunities
• Future success will be determined by talent and innovation
• Average size of projects (# jobs) shrinks (SILC Global)
• Average EDA-cost per new job grows (>$1,500) (SILC
Global)

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• New world, new order
• Foreign Direct Investments (FDI) has returned to growth
• In 2012 there were almost 4,000 inward investment projects – an increase of 4%
• A new phase of globalization is under way, bringing new rules, leaders and challengers. China (44%) e xtends its undisputed leadership in the eyes of foreign investors followed by India (21%) and Brazil (18%)

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• Where from, where to
• Companies from the US remain Europe’s biggest FDI investors, 26% of the total
• Chinese companies are the most active
• The UK remains Europe’s top FDI destination
• New emerging countries, Myanmar, Vietnam, India, Indonesia
• The main goal in emerging markets is growth

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Foreign Direct Investments in Top 10 EU countries

Attractiveness of regions for Foreign Direct
Investment
Most attractive regions for FDI projects
Western Europe
Central & Eastern Europe
Compared with 2010
40%
China
Northern America
India
Africa & South-East Asia
Brazil
35%
33%
25%
20%
9%
4%
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Source: Survey SILC Global among 100 European multinationals (multiple answers)
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Topics for discussion
 The role of “Corporate Social Responsibility” in location selection processes
 Critical lessons learned regarding location selection?
 What are the USP’s your countries?
 What are the pros and cons of the locations for operations in chosen by the participants?
 How could we stimulate that your countries are becoming more one of the hot spots for renewable energy and clean tech companies?
 How could your country attract more direct foreign investment?
 How do we see the future development of the investment climate in your countries, compared to other countries?

NCH The Hague
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Netherlands Council for Trade Promotion (NCH)
Prinses Beatrixlaan 712
2595 BN Den Haag, The Netherlands
Postbus 10
2501 CA Den Haag, The Netherlands
Telephone: +31 (0)70 344 15 44 www.handelsbevordering.nl

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Appendices

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Visit of Mr Pascal Lamy, Director General at the WTO, to The Netherlands (March 2013)
WTO focuses on trade facilitation and capacity building
• ‘Growth is the main dimension of development and poverty reduction, but when promoting free trade, social inclusion should get more attention’;
• Growing production in a multi-location setting creates opportunities for developing countries regarding global supply chains. The challenge now is to simplify custom systems in order for developing countries to cut back on expenses;
• The Dutch can bring their knowledge as being one of the few countries having major expertise in issues related to growth, development, sustainability, trade and business.

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Visit of Mr Donald Kaberuka, President of the African
Development Bank Group, to The Netherlands
• Development cannot be a footnote: it is part of the solution to overcome poverty
• Second, growth, trade and investment ought to be the basis on which to work together in order to overcome problems such as the infrastructural gap and colonial heritages
• Third, ODA can only work as leverage when countries tap into the world market. Nevertheless, each country should find its own path to development
‘The solution must aim to get countries to come to markets;
ODA needs to assure that the possibility is there for countries to trade themselves out of poverty .’

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The Netherlands: a new strategic agenda
Mrs Lilianne Ploumen, Minister for Foreign Trade and Development Cooperation
To evolve from development aid to development cooperation, and ultimately to international cooperation
Minister Ploumen:
• “Sticking to traditional aid structures is an old fashion”;
• Agrees on the importance of global value chains;
• ‘Let’s be pioneers, let’s not be marginal’;
• Mentions that fragile states should not become the ghettos of the world: “This is neither efficient, nor effective or an expression of solidarity”;
• Says “the Parliament will highlight five important GPGs: water, food security, climate change, peace and security, and migration”.