Becoming a Global Company – Get Moving!

1. Becoming a Global Company – Get Moving! Learn How to Effectively Research and Target a New Geographic Market Before You Enter Prepared For: Presented By: February 17, 2009 Ducker Worldwide Global Headquarters: 1250 Maplelawn – Troy, MI 48084. 248.644.0086. www.ducker.com

2. Ducker Research Goes Global Ducker Asia Expands into China Asia HQ: Shanghai, China Ducker Europe HQ: Paris 1996 2008 2004 2000 Ducker Europe Expands into Berlin Ducker Asia Bangalore India What Did We Learn in The Process? Ducker Research Changes Brand Name Ducker Worldwide

3. 10 Ways to Take Your Business Global* • Discover Why Going Global is Important • Build Your Foundation • Map Out Your Global Journey • Develop Sales and Distribution • Make it Happen • Build Your Business • Keep Learning • Create Your Future • Manifest New Frontiers • Reap the Rewards of Global Trade Source: Laurel Delaney; Work Z

4. 10 Ways to Take Your Business Global • 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

5. 10 Ways to Take Your Business Global 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

6. 10 Ways to Take Your Business Global 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

7. India likely to be among the top 5 economies by 2025 Source: McKinsey & Co.

8. Indian middle class expansion will create huge consumption led growth Source: McKinsey & Co.

9. Significant demand elasticity Source: McKinsey & Co.

10. As a result, China and India are becoming major automotive markets Global Auto Market Growth (Millions of units sold) CAGR (%) 2001-2007 2007-2015e Source: PWC, Global Insight, Ducker Analysis

11. Translated to the addressable market for auto components = ~ $700B by 2015 Source: McKinsey & Co.

12. Indian Auto components industry is successfully managing high growth Automotive Components Growth $ billion 2005-2014 17% CAGR 2000-2005 20% CAGR 1997-2000 9% CAGR Source: ACMA, McKinsey, Ducker Analysis

13. 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

14. Understanding regional opportunities / differences is a key success factor Wealthiest States, Real GDP/Capita,$ Delhi Poorest States, Real GDP/Capita,$ Bombay, Pune Automotive Hubs Chennai Source: Ducker Analysis Source: ACMA, McKinsey, Ducker Analysis

15. Several hiccups ahead - Infrastructure (roads, air/sea ports, power) is still a bottleneck, but India ranked favorably as a country hospitable to investors Countries Most Hospitable to Investors (score) Problem factors for doing business in India 22 - 40% of political candidates face criminal charges in India Developing Countries Source: Heritage foundation, Forbes, World Bank, McKinsey, World Economic Forum, Ducker Analysis

16. 10 Ways to Take Your Business Global 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

17. 10 Ways to Take Your Business Global 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

18. 10 Ways to Take Your Business Global 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

19. 10 Ways to Take Your Business Global 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

20. 10 Ways to Take Your Business Global 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)

21. 10 Ways to Take Your Business Global 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

22. 10 Ways to Take Your Business Global 10. Reap the Rewards of Global Trade Profitable Growth Increased Shareholder Value Technology Advancement Cultural Understanding Adventure!!!