Netherlands Foreign Investment Agency Executive Director Harry A.C. van Woerden December 4, 2007 The Netherlands: Stepping Stone to European Business Why the Netherlands?

Netherlands Foreign Investment Agency Government organization, belongs to Ministry of Economic Affairs. Located in NL Embassy. Help foreign (Korean) companies set up operations in Holland Assist Technology Matchmaking Provide services free of charge and confidentially Office in Seoul, Kwanghwamoon Kyobo Bldg.

NFIA Offices NL, The Hague (HQ NFIA) UK, London (HQ Europe) NY, New York (HQ USA) MA, Boston IL, Chicago GA, Atlanta CA, San Mateo Korea, Seoul India, New Delhi Japan, Tokyo Japan, Osaka PR China, Shanghai PR China, Guangzhou PR China, Hong Kong Taiwan, Taipei Singapore Dubai, United Arab Emirates (as of 1 January, 2008)

Investment Network in the Netherlands  Holland International Distribution Council & HQ NFIA  Regional authorities /provincial coordination Other investment authorities incl. Airport - and Harbor authorities NOM BOM OOST LIOF

Contents 1.Developments in European logistics 2.Why the Netherlands ?

National distribution One DC in every European country Direct deliveries from source Inventory planning decentralized

Centralized European Distribution 1990’s: Unification EU Centralization of European distribution Value added logistics and Value added services

Change in European Supply chains Expansion of the European Union Increased globalization of production and sourcing Increase in transport costs Market developments

Trends in European Supply chain management Supply chain Safety and Security (AEO, ISPS) Green supply chains (multi-modal transport) Supply chain visibility (WMS, TMS, RFID) Outsourcing vs. ‘Insourcing’ Reverse logistics

Dominant SC Structures Traditional EDC BDC + Satellites RDC’s

Contents 1.Developments in European logistics 2.Why the Netherlands ?

Why the Netherlands? Excellent geographical location Gateway to Europe: > 487 mln potential customers Top notch Telecom and IT infrastructure Practical and multilingual labor force Labor productivity 7,8% higher than EU average Excellent financial services, logistics High quality of infrastructure (roads, airports, waterways, railroads, seaports) Sophisticated industry, including high-tech: over foreign companies in Holland

Dutch history in trade Long history in trade First European distribution centers Expertise in shipping

Examples of EDC’s in the Netherlands

Current role of the Netherlands Point of entry into the EU market Location for EDC, BDC or RDC operations Orchestrator of European supply chains

Proximity to market Distribution largest component in total logistics costs Speed and reliability of delivery more important Main consumer markets in North West Europe Consumer markets based on GDP per region

Lead-times throughout Europe Frankfurt/Main Paris London Hamburg Source: TMI Integrated Logistics

Excellent Seaports Unit: x 1 million tons (m)

Excellent Airports (x 1,000 tonnes)

Rail Road Shortsea - feeder Pipeline Inland shipping Extensive infrastructure with fast connections

Excellent and well developed logistics industry > 200 international logistics services providers > transport companies Full range of related services

Tax and customs Better visibility in the supply chain due to new technologies Taxes have large impact on company’s profitability Tax advantages of the Netherlands

NFIA in Korea: Tel. 02–