Supplies for Local Projects through Equity Joint Ventures 09/10/2019 Supplies for Local Projects through Equity Joint Ventures Successful Examples of Two German Companies in the GCC 09.10.2019

BACKGROUND Two Medium Sized German Companies – Railway Suppliers 09/10/2019 BACKGROUND Two Medium Sized German Companies – Railway Suppliers Technology and Market Leaders Catenary System Poles and Concrete Sleepers Western European Markets are High Margin Markets but relatively saturated Increasingly Global Role of German Infrastructure Companies 09.10.2019

VISION Local Energy and Raw Material Supplies 09/10/2019 VISION Local Energy and Raw Material Supplies Success through Local Partnership Choice of Partner Long-Term Strategy Genuine Specialization Think Regional The Path to Partnership Business Plan and Joint Venture Secondment and Training 09.10.2019

Reasons Reasons for move to GCC Reasons For Partnership 09/10/2019 Reasons Reasons for move to GCC Cost Efficiency, Energy and Raw Materials Hub into the Entire GCC Market Emplyoment Cost Tender/Customs Advantages In one case: JV with System Supplier Reasons For Partnership Local Knowledge Counts Local Resources Local Administration Costs and Control 09.10.2019

APPROACH Identification of Market and Project Potential 09/10/2019 APPROACH Identification of Market and Project Potential Approached by Local Partner Development and Planning Partner and Product Due Dilience Detailed Market Study Business Plan Shared Cost Define Strategy Secure Initial Supplies Define Milestones 09.10.2019

Challenges Transparency and Market Data Local Investment Laws 09/10/2019 Challenges Transparency and Market Data Local Investment Laws Oman Saudi Arabia Incorporation – One-Stop-Shop National Industrial License and Customs Human Resources Saudization Omanization 09.10.2019

Challenges II Contributions in Kind - Licenses 09/10/2019 Challenges II Contributions in Kind - Licenses Technology Transfer and Protection Investment Protection Dispute Resolution Codification of Law Enforcement Oman Saudi Arabia 09.10.2019

Structure and Conclusion 09/10/2019 Structure and Conclusion Flexible Distribution Structure Regional Vehicle Exclusivity Suitable Level of Detail but Keep it simple “Management Mix“ Flexibility and Cost Local Knowledge vs. Foreign Managers Key Issues Personal Element Focus on the Feasible (e.g. technology, trademark issues) 09.10.2019