India table IGC 1 st of April 2010

1. India table IGC 1st of April 2010 Doing business in India Louwrens Dijkstra CEO Hyva Group

2. Content: • Hyva, who we are • What is driving the business of Hyva • How will India impact our business • How did we develop the strategy for India • Where does Hyva India stand today • How did we turn vision into reality • What have we learned • What do we advice newcomers

3. Hyva, who we are

4. Hyva’s Mission Hyva is committed to being the world’s best provider of innovative and efficient equipment for material handling & transport efficiency to the commercial vehicle and environmental service industries

5. Hyva Group • Our history: 3 decades of development • Our group: 35 companies, 32 countries, 1.700 employees • Our products: Cylinders ,wet kit components cranes, hooklifts , skiploaders, compactors, RCB’s ,Floors… • Our customers: More than 25.000 • Our market: The world Hyva Winner NICCT India Business Award 2009 in recognition of the company’s excellence in exploring India-Netherlands business opportunities and investing in India.

6. What is driving the business of Hyva

7. The main drivers of our business • GDP developments • Infrastructural investment • Mining • Environmental services developments • Rising labour costs • Truck & Trailer sales

8. How will India impact our business

9. Attractiveness of India • 80 times bigger than the Netherlands . • Growing population that represents 20% of the world population. • The middle class is well educated and many of them are working hard to get a better and wealthier life. • India is playing an increasing role in the global industrial consolidation. (Mittal taking over Arcelor & TATA taking over Corus & Jaguar) India is a huge and growing country and together with China it represents the New World where major players of the old world, the USA, Japan and Europe, have almost been taken over.

10. How did we develop the strategy for India

11. Our journey 1: Market development • India was traditionally a market for small tippers with under body cylinders. • Market research was executed to identify the potential of the Indian market. • Researched the possibilities to sell front tipping cylinders for truck and trailers. • Proved that our concept was technically innovative , faster and more economical then the under body cylinder concept. • Entered the market by introducing the front –end tipping cylinders and were successful in changing the market. • Later followed by the local competition but we had already secured our reputation as market leader.

12. Our journey 2: Industrialisation • Started with components imported into India from our European supply base. • Great efforts made to develop the local supply base from 0 to almost 100%. • Some of these local suppliers are now supplying other Hyva group companies around the world. • Introduced other advanced transport solutions such as refuge collecting bodies, cranes ,hook loaders etc. We still see phenomenal growth ahead of us by introducing new technologies to the Indian market and localize production in India for technologies existing already elsewhere in the group. This will enable us to continue to provide innovative transport solutions to our Indian customer base

13. Where does Hyva India stand today

14. Hyva India Today 1/2 • Founded in 1997, now 4 locations,400+ employees, 300+ contracted workers • Undisputed market leader & strong reputed brand • Hyva India is 2nd largest contributor to the Hyva Group turnover Hyva India winner of the best “Truck Application Builder of the Year 2010” award for the contributions made to the Commercial Vehicle Industry in the Year 2009.

15. Hyva India Today 2/2 • Is an important manufacturing base, it boosts 3 manufacturing facilities out of 11 total . • In January 2010, Hyva India produced the 50.000th tipper since 1996 and produced the 100.000th cylinder since 2004. • The largest customer (by turnover) of Hyva Group is Tata motors.

16. How did we turn vision into reality

17. Key Success Factors: Innovation • Creativity and innovation played a major role : To adapt to local market conditions and changing customer demands. • Our innovative spirit enabled us to enter India: With a top class product of equivalent quality to the rest of the world plus tailor made solutions such as mining . • Business development for other markets and applications: Such as the environmental services industry with new solutions. • Centres of Excellence for research and development with a mission to develop innovative solutions for our customers . India is our worldwide “Centre of Excellence“ for tippers.

18. Key Success Factors: Our commitment to people & communities Examples: • In Krishnapur we initiated and financed the construction of a school for children close to our factory. This is financed by donations to a foundation to which Hyva, 3i, suppliers and private individuals have donated. • In India we provide medical services for our employees and their families.. • Ad hoc assistance in case of natural disasters. • We employ the same safety regulations and equipment as in any of our other factories around the world . Our commitment to Corporate Social Responsibility contributes to improving the quality of life of employees and their families, and the development of the local community

19. Key Success Factors: Conclusion • Successfully introduced our front- end cylinders as the new standard in the Indian market. • Hyva India successfully demonstrated that localization in India works and has helped the industry to develop and grow to higher levels. • Hyva will continue to invest in additional manufacturing capacity in India . • Hyva group supported significantly the development off the local components supplier (substantial job creation). • Hyva India ,as market leader provides competitive mechanised solutions to its growing customer base.

20. What have we learned

21. Lessons learned • Country has a growing & “unlimited” market potential • The people & industries are open for change • Vertical integration “almost a must” • European quality ‘made in India” is possible • Window of opportunities for selling, sourcing & manufacturing

22. What do we advice newcomers

23. Tips • Include India in your roadmap for the future • Make “people management” one of your top priorities • Be aware of bureaucracy, surprises & difficulties • Things take longer, don’t expect an easy ride • Don’t give up, once started

24. Take away’s Say hello to the Indian opportunities & Expect more than the usual: Expect the unexpected !