Exports: Fact or Fiction Conference Highlights

1. PROCON Asian Global Sourcing Conference Rosia Senh October 14, 2010

2. 2 A.) 30% of the world’s purchasing power is outside the borders of the U.S. FICTION – 70% B.) 58% of all exporters only export to one country. FACT Exports – Fact or Fiction? Exports – Fact or Fiction?

3. 3 C.) 97% of the U.S. firms selling internationally are small and medium-sized companies. FACT D.) Exports accounted for nearly 25 percent of U.S. economic growth during the past decade, and they are expected to grow by nearly 10 percent per year for the next several years. FACT Exports – Fact or Fiction? Exports – Fact or Fiction?

4. 4 E.) The United States exported $1,056,931,975,877 worth of goods to all other countries in 2009. FACT F.) On March 11, 2010, President Barack Obama issued an executive order creating the National Export Initiative (NEI), which aims to double U.S. exports over the next five years in support of 2 million jobs in the U.S. FACT Exports – Fact or Fiction? Exports – Fact or Fiction?

5. 5 Exports – Fact or Fiction? Exports – Fact or Fiction? A.) 30% of the world’s purchasing power is outside the borders of the U.S. 95.5% of world’s population and 70% of world’s purchasing power is outside of US borders

6. 6 Why companies only export to one market Why companies only export to one market 6 • Commonalities • Connections • Too timely/costly • Nervous • Unaware of available resources

7. 7 Why businesses should export Why businesses should export INCREASE SALES, REVENUE, PROFIT 2009 top export countries… 2009 top export countries… Rank Country 2009 Exports % of Exports 1 CANADA 204.7 19.4% 2 MEXICO 129.0 12.2% 3 CHINA 69.6 6.6% 4 JAPAN 51.2 4.8% 5 UNITED KINGDON 45.7 4.3% 6 GERMANY 43.3 4.1% 7 NETHERLANDS 32.3 3.1% 8 KOREA, SOUTH 28.6 2.7% 9 FRANCE 26.5 2.5% 10 BRAZIL 26.2 2.5%

8. 8 Guaranteed express delivery by 9:00 a.m., noon and end of day available in major metro areas in these countries Time-Definite Express Services Guaranteed express delivery by noon and end of day available in major metro areas in these countries Embargoed Asia Pacific: UPS’s Presence Operational Profile: – Region headquarters in Singapore – 40 countries and territories served in Asia – Over 13,300 employees in region – Delivery Fleet: More than 1,000 vehicles – Weekly Flight Segments: Intra-Asia Pacific 259; International 133 – Airports Served: Intra-Asia Pacific 16; International 377 UPS Access Points: – Over 2,250 access points UPS Facilities* UPS Supply Chain Solutions ® Facilities* Air Hubs Clark Air Hub Australia India China S. Korea Japan Singapore CLARK Hong Kong Vietnam Thailand Malaysia Taiwan Philippines Indonesia Guaranteed express delivery by end of day *Principal locations displayed

9. 9 TradeAbility Services available on UPS.com Landed Cost – Estimate duties and taxes for international shipments Denied Party Screener – Identify restricted parties or embargoed countries Import Compliance – Verify country-specific trade import regulations, tariff laws, rulings, and etc. Export License Detector – Proactively identify U.S. government export licensing requirements Harmonizer – Quickly and accurately identify harmonized tariff codes Forms – Complete forms online or browse a library of PDF documents for importing and exporting Product List – Save product information for up to 1000 products for use with other TradeAbility services Transaction History – Store and access detailed records of your TradeAbility transactions for reporting, compliance and accounting purposes

10. 10 Growth

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12. 12 Who is responsible???

13. 13 What are my Incoterms???

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16. 16 Cargo Insurance Protection for the “Full Value” in the event of Loss or Damage with the most comprehensive policy Credit Insurance Protecting your Account Receivables for slow pay, no pay or bankrupt Credit Intelligence Solutions Over 100 countries are serviced to determine credit worthiness Grow Business while Mitigating Risk!

17. 17 1. How will you reach 70% of world’s purchasing power that is outside of the US 2. How will you be part of the 42% of US companies exporting to more than one country? s 3. Multi-Country Shippers Parting Thoughts….

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