Connecting Gateways? The Netherlands and Italy

1. Connecting Gateways? The Netherlands and Italy Eveline van den Bosch Senior Manager Supply Chain Solutions Verona, May 28 2013

2. Overview • Introduction to HIDC • The Netherlands: best practices • Changes in European Supply Chains, opportunities for Northern Italy

3. HIDC: 27 years of Experience • General introduction • Private, not for profit organization representing 400 members • Founded by the Dutch logistics industry in 1987 • Ministry of Economic Affairs • Unique position within Europe • 3 traveling ambassadors • In close cooperation with the NFIA • Supporting approx 200 companies on an annual basis (60% is US) • All services are Free of Charge and without any obligation LSP

4. HIDC: 27 years of Experience • Our Services and Focus • Advisory role to US companies in setting up or re-structuring their European • Supply Chain • Small- and Medium Sized companies • Covering multiple industries (High Tech, Life Sciences, Life Style, E-Commerce) • Promotion of the Netherlands as “The Logistics Gateway to the European market” • Logistics partner selection • Organize Customized Fact Finding visits to the Netherlands • Stimulating research and innovation • Raise public and political support for the logistics industry, provide input for • governmental bodies

5. The Netherlands, since long the Gateway for Europe Dutch history in trade First EDCs in 16th century Central location within Europe Access to European markets and beyond Gateway to Europe 170 million consumers within 500 km Excellent sea- and airport facilities Superior logistics infrastructure Excellent and well developed logistics industry Taxation advantages Internationally oriented business community

6. Import - export in The Netherlands Major importer of goods and services World’s sixth largest exporter of goods Import value in billions of US dollars (2013) Export value in billions of US dollars (2013)

7. Port of Rotterdam: Europe's largest and most important port Top 10 Container Ports worldwide market leader European container ports x 1,000 TEUS (Twenty-Feet– Equivalent Units) Source: Port of Rotterdam 2013

8. Amsterdam Airport Schiphol: Europe's best airport for cargo and passenger transport

9. Home to many logistics hubs

10. Excellent and well developed logistics industry 2013 • GDP € 43 billion • 750,000 jobs • Top ranking in supply chain benchmarks • Large number of international logistics services providers • Full range of related services • Excellent logistics expertise • Mature market – control towers Ambition The Netherlands • # 1 logistics hub in Europe in 2020

11. Tax & customs advantages • Taxes have large impact on company’s profitability • Business oriented customs & tax authority • Highly automated customs procedures • Bonded warehousing possibilities • The Netherlands provides VAT deferment: NO advanced payment of import VAT = cash flow benefit!

12. Services hub – Easy of doing business The Netherlands 2nd in Logistics Performance Index World Bank (LPI 2014) 4th best place in the world to do business

13. Europe, an interesting market China EU USA Source: CIA World Factbook 2011

14. Challenges in Europe Various differences exist between European countries: • Economics • Market size • Buying power • Unions • Innovation • Etc. • Finance • Corp taxes • Currencies • Incentives • Etc. • Legislation • Labor laws • Patents • Export/import • Etc. • Culture • Language • Business • practices • International • orientation • Etc.

15. Drivers for change in Trade and Logistics in the European Union (EU) Expansion of the European Union - 75 million customers in 10 countries (2004) to 480 million customers in 27 countries Increased globalization of production and sourcing Market developments

16. Market developments Product variety Product life cycles Customer order lead time Delivery restrictions Working Capital INTERNET

17. RDC EDC X-dock RDC X-dock RDC RDC BDC Supply chain configuration – new European logistics structures RDC’s Traditional EDC BDC + Satellites RDC EDC: European Distribution Center BDC: Bulk Distribution Center, often acting as RDC for the region RDC: Regional Distribution Center

18. Position of Verona as Gateway to South & Eastern-Europe

19. How to become a RDC or satellite? If you want to become a “Gateway” you really need to excel on a very broad range of logistics activities: Quantative • Serving a large part of the European manufacturing and consumer markets • Large market share in imports / exports and containers • High number of Logistics Centers • High number of transportation companies and supporting activities Qualitative • Level of professionalism of the supporting activities (customs, banks, insurance, …) • Trade services • Level of professionalism of the logistics industry (transportation, warehousing, Value Added Logistics, …) • Knowledge development – people & IT • Flexibility (easiness of doing business)

20. Considerations - Northern Italy Gateway to South Europe ? • Position in infrastructure to rest of Europe • Position and capacity in Interporto and its network • Capacity of Logistic Service providers • Hinterland strategy to enlarge catchment area • Connections sea-road-rail • Investment climate for foreign investors • Tax and customs climate • Flexibility and availability of the workforce • Support of government • Stability of the economical environment • Promotion of the region

21. NDL/HIDC - Holland Office Eveline van den Bosch Senior Manager Supply Chain Solutions North-America and Europe E: e.vandenbosch@hidc.nl I: www.hidc.nl T: +31 79 343 81 10 M: +31 6 204 15 032