1. Stephen Marlow Executive Vice President Toshiba America Electronic Components, Inc. Advisory Board Member Center for Unconventional Security Affairs Considerations for Going Global An Electronic Component Company Perspective

2.  Fiduciary Responsibilities  Stakeholder  Brand  Regulatory & Compliance  Import & Export  Sox  Safety & Security  Assets  Information Security  IP Protection  Employee Considerations when Going Global

3. Why TAEC went Global? Source: Michael Porter, Oracle Presentation 2008 To Support the Needs of Our Customers

4. D D D D D D Cellular Manufacturer D – Customer Design Site M – Customer Mfr Site M – 3 rd Party Mfr Site TD – Toshiba Design Site D – 3 rd Party Design Site TM – Toshiba Mfr Site D TM TD M M M M M M M M

5. Computer Manufacturer TD TM D D D D D M M M M M M M M D – Customer Design Site M – Customer Mfr Site M – 3 rd Party Mfr Site TD – Toshiba Design Site D – 3 rd Party Design Site TM – Toshiba Mfr Site

6. TM Printer Manufacturer D D D D D M MM M M TD D D – Customer Design Site M – Customer Mfr Site M – 3 rd Party Mfr Site TD – Toshiba Design Site D – 3 rd Party Design Site TM – Toshiba Mfr Site

7. TD DD D D D D D D D D D D D DD D D D D D DD D D D D D D D D D D D D D D D D D D D D D Software/Firmware Development D – Customer Design Site TD – Toshiba Design Site D – 3 rd Party Design Site

8. Global Business Overlay – Customer Sites – Toshiba Sites – 3rd Party Sites – 3rd Party Sites

9. Understanding the Business Environment  Which factors need to be considered?  Beyond the physical flow of product  What credible sources of information exist?  What are the real risks?  Risks are unique to each entity

10. Source: GlobalIncidentMap.com, 10/08 Global Incidents

11. Country Threat Rating Source: Air Security International

12. Water Scarcity Source: IMWI report, Insights from the Comprehensive Assessment of Water Management in Agriculture, 2006

13. World Hunger Source: United Nations World Food Programme, 10/31/08

14. Life Impact of Climate Change Source: Center for Sustainability and the Global Environment (SAGE)

15. Global Business Overlay – Customer Sites – Toshiba Sites – 3rd Party Sites – 3rd Party Sites

16. CONCLUSIONS:  Increasingly, business (not just manufacturing) is migrating to “low cost” areas of the world:  most densely populated on the planet  Population, Poverty & Malnutrition are the perfect petrie dish for geopolitical instability:  these same areas have the greatest climate and political risk.  highest risk for personnel  Crisis management and business continuity planning is essential:  establish “sensory networks” (accurate, relevant & timely)  prepare for the worst, but (practically) minor incidents are much more common