1. International growth considerations for SMEs Sally Field April 2015

2. GLOBAL CAREER COMPANY International Perspective, Regional Understanding globalcareercompany.com 2 20 March 2015 BACKGROUND My experience Worked for large international organisations: Reuters Shell Recruitment experience gained at multinationals and SMEs: Experis (part of Manpower Group) Spencer Ogden Global Career Company

3. GLOBAL CAREER COMPANY International Perspective, Regional Understanding globalcareercompany.com 3 20 March 2015 AGENDA Subjects to cover 1.Opening overseas - Why and How 2.Funding 3.Local Office Opening considerations 4.Local requirements / Issues 5.Reporting

4. GLOBAL CAREER COMPANY International Perspective, Regional Understanding globalcareercompany.com 4 20 March 2015 WHY & HOW ??? Identifying the need Why International Growth Local presence Address gap in the market Diversification Take advantage of economic conditions How Remote office: Local de-centralised office vs. Head Office back office support Subsidiary vs Local Office Branch Head Office servicing other countries Joint Venture / Partnership Acquisition

5. GLOBAL CAREER COMPANY International Perspective, Regional Understanding globalcareercompany.com 5 20 March 2015 FUNDING Start Up Funding requirements Funding options Inter Company loan from Head Office Interest rates FX revaluation Paperwork up front for local requirements Bank loan/overdraft Does your bank have overseas offices / partners One system for all banking Dangerous Territories Covenants (Credit Notes / Transactional volume thresholds) Shareholder/Director investment

6. GLOBAL CAREER COMPANY International Perspective, Regional Understanding globalcareercompany.com 6 20 March 2015 OFFICE OPENING Physical Presence Serviced Office vs Own premises Location – business enterprise zone Opening party Local PR

7. GLOBAL CAREER COMPANY International Perspective, Regional Understanding globalcareercompany.com 7 20 March 2015 LOCAL REQUIREMENTS / ISSUES Business Operating Licence Local preferences e.g. (Broad Based) Black Economic Empowerment Local employment law / works councils General benefits Payroll / Social security requirements Local staff vs overseas staff Local Public Officer VAT registration thresholds Local audit requirements VAT / WHT Permanent Establishment Risks – fraud / bribery / money laundering Legal / Financial requirements

8. GLOBAL CAREER COMPANY International Perspective, Regional Understanding globalcareercompany.com 8 20 March 2015 LOCAL REQUIREMENTS / ISSUES Currency of invoice FX gains/losses Country restrictions on access to FX (e.g. Angola, South Africa) Credit Control Payroll (e.g. Dubai, Germany) Branding / Product names on translation Time to get things done / lengthy paperwork Common Issues

9. GLOBAL CAREER COMPANY International Perspective, Regional Understanding globalcareercompany.com 9 20 March 2015 REPORTING UK Reporting Regulations FRSSE Group Structure Consolidation thresholds Audit thresholds Service Agreements / Transfer Pricing

10. GLOBAL CAREER COMPANY International Perspective, Regional Understanding globalcareercompany.com 10 20 March 2015 TIPS AND ADVICE For consideration Use local firms for support Make friends with your bank Prepare for cashflow delays Look at support available (e.g. UKTI) Adapt commission schemes to reward transactions in key currencies People are key (think local vs expat) Test the market first Associates / consultants Joint Venture / Partnerships serviced office – set targets for rewarding growth