Cessna Marketing Success in the Middle East Trevor Esling Vice President, International Sales, Cessna Aircraft Co. Trevor Esling Vice President, International Sales, Cessna Aircraft Co.

Doing business in the Middle East What is the Middle East? Try to understand the market for your products in the area; What are the market trends in your business in these territories; Understand how to do business in these countries; What is the Middle East? Try to understand the market for your products in the area; What are the market trends in your business in these territories; Understand how to do business in these countries;

Doing Business in the Middle East Where actually is the Middle East – how does Cessna define it?? Saudi Arabia is the largest single market in the Area, Egypt is second; The Gulf, or GCC territories cover UAE, Kuwait, Bahrain, Qatar, Doha & Oman; Syria, Iran and Iraq are also large but embargoed countries; Jordan & Lebanon Yemen Where actually is the Middle East – how does Cessna define it?? Saudi Arabia is the largest single market in the Area, Egypt is second; The Gulf, or GCC territories cover UAE, Kuwait, Bahrain, Qatar, Doha & Oman; Syria, Iran and Iraq are also large but embargoed countries; Jordan & Lebanon Yemen

Doing business in the Middle East What do we exclude? Israel Turkey (considered to be European) The Maghreb – Morocco, Algeria, Tunisia & Libya Sudan and Ethiopia are considered as African What do we exclude? Israel Turkey (considered to be European) The Maghreb – Morocco, Algeria, Tunisia & Libya Sudan and Ethiopia are considered as African

Doing business in the Middle East After many years of slow growth progressive Governments in the GCC, Saudi and Egypt have tried to open their economies; The World Bank recently said KSA & Egypt are in the 5 most improved countries in the world for starting new businesses; It’s quicker to start a business in Egypt than it is in Italy; Do not expect the region to “westernize”; Considerable inter-regional investment After many years of slow growth progressive Governments in the GCC, Saudi and Egypt have tried to open their economies; The World Bank recently said KSA & Egypt are in the 5 most improved countries in the world for starting new businesses; It’s quicker to start a business in Egypt than it is in Italy; Do not expect the region to “westernize”; Considerable inter-regional investment

Doing business in the Middle East PetroDollars have driven a vibrant economy across the Middle East SWF’s are aggressively investing outside the area – largely in UK and USA Riyadh as a city is 4-5 million people Cairo is closer to 20 million The most profitable oil Company in the world is Saudi Aramco; One of the most successful mobile comms companies in the world is Egyptian (Orascom) The worlds largest private real estate company is from the UAE –EMAAR Group Dubai becoming a worldwide vacation, banking and trade hub; PetroDollars have driven a vibrant economy across the Middle East SWF’s are aggressively investing outside the area – largely in UK and USA Riyadh as a city is 4-5 million people Cairo is closer to 20 million The most profitable oil Company in the world is Saudi Aramco; One of the most successful mobile comms companies in the world is Egyptian (Orascom) The worlds largest private real estate company is from the UAE –EMAAR Group Dubai becoming a worldwide vacation, banking and trade hub;

Doing business in the Middle East What about the market for business jets? No longer solely a market for the BBJ or GV The area has 295 jets (per Flight) -50% in KSA Also many aircraft registered outside the area Increasingly business aviation is changing from a life style choice to a business necessity Many more aircraft now being sold to the private sector in the Mid to light categories; Cessna has seen significant growth in Citation sales since 2000; An increasing recognition of value for money What about the market for business jets? No longer solely a market for the BBJ or GV The area has 295 jets (per Flight) -50% in KSA Also many aircraft registered outside the area Increasingly business aviation is changing from a life style choice to a business necessity Many more aircraft now being sold to the private sector in the Mid to light categories; Cessna has seen significant growth in Citation sales since 2000; An increasing recognition of value for money

Doing business in the Middle East So how do you get business in the Middle East? Patience, patience & more patience Relationship selling is key; A list price mentality does not exist; Let people see you face and your products on a regular basis; Select a well known and respected local representative Make sure you understand the law in appointing representatives; So how do you get business in the Middle East? Patience, patience & more patience Relationship selling is key; A list price mentality does not exist; Let people see you face and your products on a regular basis; Select a well known and respected local representative Make sure you understand the law in appointing representatives;

Doing business in the Middle East Build a rapport with all your representatives – invest time in that relationship; Time is valued differently – no financial quarter mentality Establish a local office –be visible Don’t expect a Saudi to react like an Egyptian –all are different. Appreciate regional differences and rivalries; Don’t always believe the hype –dig deeper than that; Build a rapport with all your representatives – invest time in that relationship; Time is valued differently – no financial quarter mentality Establish a local office –be visible Don’t expect a Saudi to react like an Egyptian –all are different. Appreciate regional differences and rivalries; Don’t always believe the hype –dig deeper than that;

Doing business in the Middle East So has Cessna been successful?? Yes, the market has become a major growth area; In the segments we sell to our market shares are strong; We selected our representation well; We have invested a lot of time and effort in the area; We enjoy a strong presence in the Mid size to light jet category So has Cessna been successful?? Yes, the market has become a major growth area; In the segments we sell to our market shares are strong; We selected our representation well; We have invested a lot of time and effort in the area; We enjoy a strong presence in the Mid size to light jet category

Doing business in the Middle East In summary:- The area is changing rapidly; Inter –regional trade is booming; PetroDollar surpluses are driving significant investments both in and outside the area; In this environment business aviation is thriving and growing; Cessna is well placed to take advantage of this new market; We have had to invest time and effort to get to where we are today –more will be needed! In summary:- The area is changing rapidly; Inter –regional trade is booming; PetroDollar surpluses are driving significant investments both in and outside the area; In this environment business aviation is thriving and growing; Cessna is well placed to take advantage of this new market; We have had to invest time and effort to get to where we are today –more will be needed!

Doing business in the Middle East