1. Executive and Insider Perspective Donald N. Gray  DeLaval International AB (Tetra Laval AB)  Diversey Corporation (The Molson Companies Limited)  ExxonMobile Chemical Co. (ExxonMobile Corporation)  Director, Montreal Canadiens

2. Factors for International Companies Coming to the USA  Cost structure is key  Raw materials / natural resources drive analysis, not proximity to market  DeLaval International AB: Swedish company, world leader in the milking industry  Choose US for location of largest, state of the art pharmaceutical plant (Des Plaines, IL) because of availability of certified suppliers of critical chemicals  Removing question of quality in raw materials allowed DeLaval focus on production efficiencies, thereby increasing production  Eliminated iodine-based products provided by third parties, would have been unable to do so with lower cost nations due to unreliability local vendors

3. Factors for International Companies Coming to the USA  Domestic surplus of Natural Gas and Crude Oil supply is very attractive to companies which rely either/both for end product production  Ex. BMW investing in South Carolina factory to make it their largest in the world from which it will export over 70%  Lower cost of materials and non-unionized labor force drove the analysis  China is world’s largest consumer of coal; heavily used as source of energy for manufacturing  Global impact of burning coal now front and center to production as companies are required to provide more transparency in process  Lower cost of China labor now being pitted against other “environmental costs”

4. Natural Resources Changing International Landscape  Natural Gas & Europe  US has massive supply but it can’t be shipped by tanker  Western Europe is primarily supplied by pipeline through Ukraine  If you can’t bring the resource to you, go to where it is  Crude Oil  US is expected to be largest producer of oil (many hurdles remain)  Laws limiting export of certain crude types  Chinese companies are coming in the form of JVs and Partnerships – resource dependent  US Labor Market  History of labor being heavily unionized is no longer the case, US now being viewed as friendly for manufacturing jobs  Federal labor regulations considered a strength in comparison to China for corporate transparency