1. International Military Market Opportunities
Presented by:
Troy Sawler

2. Nova Scotia Business Inc.
Introduction
Troy Sawler
Investment Attraction, Oceans, Resources, and Industry
A business development agency for the Province of Nova Scotia.
Works with foreign companies to leverage Nova Scotia's value proposition to exploit growth opportunities.
Supports export development by working with companies to enhance their competitiveness in global markets.
Nova Scotia Business Inc.
My name is Troy……….
This presentation is meant to make you think about your business as it relates to international markets.
I want to present you with some thoughts and questions that might help better prepare you to exploit international markets.

3. Who Is Spending?
Many countries are spending on military goods and services as you will see from this chart.
At first glance these may all seem like international opportunities.
But are they?
For example, China and Russia have relatively large budgets - but do they represent an opportunity for you?

4. Who Is Spending? Total Defence Spending by Country
As you will see from this chart, the US spend is greater than most other countries combined.
With the changing political scene in the US is the opportunity as large as it may seem?

5. Who Is Spending? 9% 6% 5% 3% 2% 2% 2% 2% 1% 3%
More relevant to the audience here today, this chart shows estimated naval spending.
This would primarily be naval ship building.
Again, some of the big numbers don’t necessarily mean big opportunities for everyone. 2% 2% 2% 2% 1% 3%

6. Why Focus on International Opportunities?
Trend of globalization
Emerging economies spending more on defence
So now that we have taken a look at who is spending, lets take a minute to think about why it is important to even focus on international markets.
First of all there is, and has been for some time, a trend toward globalization.
Business is not necessarily bound by geographic boundaries.
We all hear about the emerging markets.
The trend is that as the economies of these emerging markets grow, so does their military spending.
This creates new opportunities on an international basis.
Many companies focus on international markets in order to continue to grow their business.
The though is, that you need to grow to survive. This in itself should be a thought that makes you take a closer look at your own business.
And finally, as simple as it may seem, companies tend to focus on new markets simply to build sales volume.

7. Why Enter International Markets?
Build Critical Mass / Economies of Scale
Increase Profits
Build Competitive Strength
To Build Sales Volume
So why enter international markets?
Well the added volume could help you build critical mass to provide your company with increased purchasing power.
The added volumes could help you realize economies of scale helping to spread overhead.
Maybe the move would provide you with an enhanced bottom line performance.
Perhaps the motivation is to capture market share which should provide you with competitive advantages.
Or you may chose to pursue international markets simply to build your sales volume.

8. Entry Challenges Offsets Geo-Political Instability Costs
Building a Local Supply Chain
Maintaining Product Standards

9. Offsets Global offsets from 2010 – 2020 est. at $367B US
Most countries have an offset program
Most defence companies rely heavily on foreign markets
You must see them as an opportunity and not a burden

10. Differentiation in Foreign Markets?
What is your value in foreign markets?
Does it vary by market?
Do you have unique technology?
Providing high value offset solutions
Becoming increasingly important to win foreign contracts

11. How to Enter Foreign Markets?
Direct investment
With a current customer
In JV with local company
Transfer of technology

12. Who Is Spending? Canadian Naval Shipbuilding Program
This is where NSBI can help you.

13. NSBI Can Assist with Market Entry
Identify Opportunities
Offset Investments
Introductions to Government, Industry, and Academia

14. Nova Scotia Opportunity
National Shipbuilding Strategy
Combat Vessels will be built in Nova Scotia
Non-Combat Vessels will be built in British Columbia

15. Nova Scotia Opportunity
Combat Vessels – Irving Shipyard Halifax
Arctic Offshore Patrol Vessels
5 to 6 ships
~ $3B Cnd
First 2 under construction
Surface Combatants / Frigates
Up to 15 ships to be built
~ $26B Cnd
12 prequalified companies
Anticipated start 2020

16. Advice Develop an offset strategy
Determine which markets are right for your company
Understand how to best enter new markets
Direct Investment
Joint Venture / Partnership
Export
Technology Transfer
Proactively develop an international network

17. Thank you! Gracias!
Troy Sawler, CITP | Investment Attraction, Oceans, Resources, and Industry
Nova Scotia Business Inc.
(t) | (m)