1. Netherlands Foreign Investment Agency Executive Director Harry A.C. van Woerden December 4, 2007 The Netherlands: Stepping Stone to European Business Why the Netherlands?

2. Netherlands Foreign Investment Agency Government organization, belongs to Ministry of Economic Affairs. Located in NL Embassy. Help foreign (Korean) companies set up operations in Holland Assist Technology Matchmaking Provide services free of charge and confidentially Office in Seoul, Kwanghwamoon Kyobo Bldg.

3. NFIA Offices NL, The Hague (HQ NFIA) UK, London (HQ Europe) NY, New York (HQ USA) MA, Boston IL, Chicago GA, Atlanta CA, San Mateo Korea, Seoul India, New Delhi Japan, Tokyo Japan, Osaka PR China, Shanghai PR China, Guangzhou PR China, Hong Kong Taiwan, Taipei Singapore Dubai, United Arab Emirates (as of 1 January, 2008)

4. Investment Network in the Netherlands  Holland International Distribution Council & HQ NFIA  Regional authorities /provincial coordination Other investment authorities incl. Airport - and Harbor authorities NOM BOM OOST LIOF

5. Contents 1.Developments in European logistics 2.Why the Netherlands ?

6. National distribution One DC in every European country Direct deliveries from source Inventory planning decentralized

7. Centralized European Distribution 1990’s: Unification EU Centralization of European distribution Value added logistics and Value added services

8. Change in European Supply chains Expansion of the European Union Increased globalization of production and sourcing Increase in transport costs Market developments

9. Trends in European Supply chain management Supply chain Safety and Security (AEO, ISPS) Green supply chains (multi-modal transport) Supply chain visibility (WMS, TMS, RFID) Outsourcing vs. ‘Insourcing’ Reverse logistics

10. Dominant SC Structures Traditional EDC BDC + Satellites RDC’s

11. Contents 1.Developments in European logistics 2.Why the Netherlands ?

12. Why the Netherlands? Excellent geographical location Gateway to Europe: > 487 mln potential customers Top notch Telecom and IT infrastructure Practical and multilingual labor force Labor productivity 7,8% higher than EU average Excellent financial services, logistics High quality of infrastructure (roads, airports, waterways, railroads, seaports) Sophisticated industry, including high-tech: over 5.000 foreign companies in Holland

13. Dutch history in trade Long history in trade First European distribution centers Expertise in shipping

14. Examples of EDC’s in the Netherlands

15. Current role of the Netherlands Point of entry into the EU market Location for EDC, BDC or RDC operations Orchestrator of European supply chains

16. Proximity to market Distribution largest component in total logistics costs Speed and reliability of delivery more important Main consumer markets in North West Europe Consumer markets based on GDP per region

17. Lead-times throughout Europe Frankfurt/Main Paris London Hamburg Source: TMI Integrated Logistics

18. Excellent Seaports Unit: x 1 million tons (m)

19. Excellent Airports (x 1,000 tonnes)

20. Rail Road Shortsea - feeder Pipeline Inland shipping Extensive infrastructure with fast connections

21. Excellent and well developed logistics industry > 200 international logistics services providers >12.000 transport companies Full range of related services

22. Tax and customs Better visibility in the supply chain due to new technologies Taxes have large impact on company’s profitability Tax advantages of the Netherlands

23. NFIA in Korea: WWW.nfia-korea.com Tel. 02–732-1924 E-mail : info@nfia-korea.com