LOGISTICS In Emerging Markets Amerik Haer Managing Director Kuehne+Nagel Saudi Arabia KN KSA Airfreigth Organization

Emerging Markets Facts Emerging markets are those markets which are in the process of rapid growth and industrialization. Emerging markets yield enormous market potential. Facts World Population Mature Market – 16% Emerging Market - 84% Market Capitalization Mature Market -95% Emerging Market -5% National Income ( Purchasing Power Parity) Mature Market -62% Emerging Market -38% KN KSA Airfreigth Organization

Characteristics Regional Economic Powerhouses Large populations, Abundant resource base, and huge markets Transitional Societies Adaptable to economic and cultural reforms Great Untapped Potential World's fastest growing economies “Key Swing Factor" in the growth of world trade and global financial stability Active participants in the world's major political, economic, and social affairs KN KSA Airfreigth Organization

Opportunities Emerging Markets are too big to ignore Attractive with higher profit margin Encourage foreign investments Rationalize the trade relations and capital investment with the industrialized countries Booming Economies with good Fundamentals Great potential for FMCG, Pharma & Basic Industrial products Investment is now switching directions, as appetite for risk and confidence in emerging markets increase KN KSA Airfreigth Organization

Trends Capital flow into the Emerging Markets may hit record in 2010 Emerging Market currencies set to inflate as a result of heavy foreign direct investment Developed markets are getting hit by high levels of debt declining GDP growth KN KSA Airfreigth Organization

Logistics Perspective Identify the technical and cultural obstacles that may hinder the introduction of integrated supply chain management to an emerging market. Manage effectively the risks associated with emerging market logistics Research on the market trends and logistic requirements of a given emerging market Find solutions to overcome the physical infrastructure limitations that slows down free flow of goods Prepare the market to adapt to sophisticated & IT supported logistic solutions.

Role of a Global Logistic Provider A Global Logistic Provider is expected to : Reach the emerging markets on time Offer tailor made solutions Add flexibility to Supply Chain Leverage logistic expertise and IT not available internally Holistic supply chain network and cost optimization

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