Access Europe 2013 - final slides all

1. Access Europe 2013 Wednesday, 6th November 2013 The Caledonian Hotel, Edinburgh

2. Access Europe 2013 Sarah Lord Regional Manager (Central Europe) SDI

3. Access Europe 2013 Anne-Marie Martin Chief Executive COBCOE

4. Why consider Europe Sarah Lord Regional Manager SDI Central Europe

5. Why Europe? - £11 billion exported in 2011 EU Exports from Scotland 12,000 10,000 8,000 EU Exports 6,000 4,000 2,000 0 2007 Source global connections survey 2008 2009 2010 2011

6. £11 billion but what about USA etc? Destination of Scottish Exports, 2011 (%) Australasia, 2% Unallocable , 5% Africa, 5% Asia, 9% Middle East, 4% EU, 46% Central & South America, 4% USA £3.5B North America, 16% Rest of Europe, 9% Total exports: £24 billion Source: GCS

7. SOME BACKGROUND - WHO ARE WE? Scottish Development International (SDI) is the specialist trade & investment arm of:• the Scottish Government • Scottish Enterprise • Highlands & Islands Enterprise Works in close partnership with Business Gateway and UKTI Single point of contact for all international business development needs

8. OUR PURPOSE International trade raise the ambition of more Scottish businesses to think, compete and trade globally attract investment and talent which builds on Scotland’s globally competitive sectors increase the global competitiveness of the business environment in Scotland. enhance Scotland’s image globally Foreign investment

9. SCOTLAND’S TRADE AND INVESTMENT STRATEGY GOVERNMENT AMBITION: 50% increase in international exports by 2017 Scotland’s Trade and Investment Strategy Increasing International Trade More Scottish businesses trading internationally Greater support for Growth Businesses Int. exploitation of Scotland’s education sector Team Scotland approach Customer focused delivery Aligning the work of the public and private sector Wider promotion of Scotland Influencing and providing business intelligence Harnessing the potential of international networks Integrated business planning Attracting inward investment Greater focus on strategic inward investment Embedding companies, encouraging expansion and developing supplier links Low carbon opportunities Promoting Scotland Focus on growth opportunities in sectors Ensuring a global footprint focused on opportunity Emerging markets

10. RAISING INTERNATIONAL AMBITION – TEAM SCOTLAND TEAM SCOTLAND APPROACH Work closely with range of public and private sector partners business and industry organisations local authorities and cities Education and Globalscots Local co-ordinated presence local staff working with SE/ HIE industry specialists Smart Exporter Increase in overseas coverage 27 overseas offices (increasing to 29) UKTI partner in Scotland Canada joint working Embed within Industry Strategies e.g. new Oil & Gas Strategy, Tourism Selling Scotland

11. GROWTH SECTORS Creative Industries Life Sciences Energy Tourism Financial Services Food and Drink Universities Other Growth Sectors Aerospace, Defence, Marine Chemicals Construction Forest Industries Healthcare Textiles Education

12. SDI EMEA Geographical coverage Mark Hallan Senior Director, EMEA Erik Jewell Field Ops EMEA Brian Conley Field Ops EMEA Mackay Smith Field Ops EMEA Sarah Lord Field Ops EMEA (London) (London) (Paris) (Dusseldorf) Tom Marchbank s Field Ops EMEA Yuri Andrev Field Ops EMEA (Moscow) (Dubai) UK & Nordics SER & Benelux CER inc DACH Middle East Russia

13. Why Europe? - £11 billion exported in 2011 EU Exports from Scotland 12,000 10,000 8,000 EU Exports 6,000 4,000 2,000 0 2007 Source global connections survey 2008 2009 2010 2011

14. Or put another way almost half exported into EU Destination of Scottish Exports, 2011 (%) Australasia, 2% Unallocable , 5% Africa, 5% Asia, 9% Middle East, 4% EU, 46% Central & South America, 4% £3.5B North America, 16% Rest of Europe, 9% Total exports: £24 billion Source: GCS

15. Exports to EU countries – where exactly Scottish exports to EU, % of total 2011 Denmark 3% Other 11% Netherlands 25% Sw eden 4% Italy 6% Spain 6% France 17% Eire 7% Belgium 9% Germany 12% Total Scottish exports to EU = £11 billion (2011) Source: GCS

16. Scotland’s top 20 export markets (current prices) 2011 2002 USA Netherlands France Germany Belgium Eire Norway Spain Switzerland Italy Singapore Sweden Brazil China UAE*** Japan Other Africa*** £ million 3,525 2,665 1,935 1,365 980 780 765 710 640 610 455 450 435 400 380 365 345 USA Netherlands France Germany Italy Eire Spain Belgium Sweden Norway Switzerland Denmark Russia*** Canada Japan Singapore Austria*** £ million 2,145 1,865 1,785 1,785 935 845 820 670 615 560 475 395 320 280 270 235 215 Canada Denmark Australia 325 325 320 Australia South Africa*** Finland*** 210 200 190 Source: GCS

17. SCOTTISH COMPETITIVENESS IN EUROPE SDI EMEA Industry focus by number of companies assisted in 2011/12 and 2012/13 160 140 120 100 80 60 40 20 0

18. European Export Challenges some examples Length of time to secure business Making the time for visits and research to/ in the markets Local certification & standards compliance Packaging/labelling Languages & cultures Payment terms, credit insurance Marketing communications Finding the right format for partnering and company establishment

19. Global Connections Survey – barriers to exporting (all Scottish companies) Barriers to export development (% of responses) Products/services unsuitable Transport costs Currency/exchange rates Lack of resources/managerial time Setting competitive prices Legislation and standards Lack of market information Language/cultural difficulties Lack of trained staff Export documentation No spare production capacity Export Finance High import tariffs Export Credit Insurance After sales service Non Tariff barriers 0% 2% 4% 6% 8% 10% 12% 14% Source: GCS

20. WHERE WE ADD VALUE AND HELP MANAGE RISK We provide a global marketing and sales resource which can help you target overseas growth via : •Prepare businesses to do business overseas •International strategy development •Identify market opportunities & provide market intelligence •Identify business partners & finance support options •Facilitate connections & business relationships Products & services Field based : Standard and bespoke, focused on customer needs OMS - Overseas Market Support EMLJ - Exhibitions & Missions, Learning Journeys International Projects (IP’s) Ministerial visits (with Scottish Government)

21. SDI EMEA Products & Services - OMS CONCEPT  Support to companies to target overseas markets  Flexible, Tailored and JoinedUp  Brings together assistance from regional SE/SDI representatives & Scottish Development International field offices  Maximising the use of UK PLC exposure and SE networks/partners  GlobalScot network IMPLEMENTATION  All enquiries are channelled via SDI Scotland office to field office  Brief/terms agreement  Initial market research and contact identification provided in the form of report/presentation  Visit programme arrangement and formal introduction to the market  Assistance on market communications  Feedback analysis, follow up and further advice

22. SDI EMEA Products & Services - Exhibitions CONCEPT  Scotland stand with individual spaces for companies  Pre-visit market brief  Individual companies enquiries (under OMS or OMIS terms)  Marketing communications  Shipment logistics  Visitors traffic coordination and management  Post-event follow up and business development

23. Reminder of the importance of The EU markets Destination of Scottish Exports, 2011 (%) Australasia, 2% Unallocable , 5% Africa, 5% Asia, 9% Middle East, 4% EU, 46% Central & South America, 4% North America, 16% Rest of Europe, 9% Source: GCS Total exports: £24 billion

24. WHY EUROPE ? - Conclusion & 7 Key Take Aways 1. After the USA, Scotland’s top export markets are all in Europe – and the value of exports destined for countries within the European Union is estimated at over £11 billion 2. 46 % Scottish exports are to The EU 3. Market opportunity is huge – Germany alone is Europe’s largest single economy and the 5th largest in the world and The UK number 1 European export market 4. The European Union’s population of 500 million provides many opportunities for Scottish companies looking to export to the marketplace. 5. EU legislations has made it easier faster and more cost effective to do business across the 27 EU member states 6. Strong long established trading networks, history and business networks 7. Risks and barriers to market entry are generally clearly documented

25. THANK YOU !

26. Access Europe 2013 Brian Connolly European Business Adviser Enterprise Europe Network

27. Enterprise Europe Network Support Brian Connolly 6th November 2013

28. The world’s largest business and innovation network, spanning 50+ countries, 600 organisations and over 4000 advisers

29. European Business Information Service e.g. market research, legislation EEN Services European Funding e.g. FP7, Eurostars, EcoInnovation & others Partner Building & Technology Scouting e.g. distribution, licensing, co-development

32. Enquiry examples 1. 2. 3. 4. 5. Food labelling requirements in Italy Land Usage requirements in Greece Value of the seafood sector in Portugal List of large metal manufacturing companies in Turkey Regulations surrounding medical devices in Europe We have access to market information databases.. ….but our strength is the EEN & colleagues on the ground in other countries that we call on for information and advice.

33. Case Study: Business Information Foxglide Products Company based in Scotland who provide sports tops for the Scottish curling team • Needed manufacturer to work with them in producing tops with specific fabric requirements • EEN research provided a list of over 100 relevant companies with contact details. • Result: Signed Partnership Agreement in Poland with second deal due to be signed.

34. Partnering and Technology Scouting…

35. How it works… ….is by a combination of online activity and direct contacts Databases that disseminate all live opportunities • Information direct to inboxes • Search By Country….or by Sector • Search by type of opportunity - Business or Technology …followed up by some “Network Love” • Network personnel in regular contact • Use these personal contacts to benefit clients

38. • Commercial Profile Example slide

39. Tech Offer: Tech Request: Scottish company offers its proven, multiple patent pending anti-piracy, tampering and subversion technology for software applications. A Scottish SME, a world leader in the supply of tensile fabric architecture, is seeking a supplier capable of coating a 3 metre wide stretch fabric with polyurethane (or similar coating). The solution offers unbeatable protection with no impact on runtime performance. The company is looking for licensing partners across various sectors The company is open to technical collaboration or manufacturing agreements.

40. Commercial Request: Commercial Request: A Scottish company, expert in water treatment seeks distributors for their products in agricultural and industrial settings. Scottish company supplying premium smoked fish, offering a unique and extensive range of cold and hot smoked fish is looking for partners. The company is particularly interested in contacts in Eastern Europe, Turkey and Egypt. The company wants to engage a distributor and/or retailer in France and Belgium to buy and sell their product.

41. Case Study: Technological Collaboration Encap Drug Delivery: • • Encapsulation technology company. Attended EEN partnering event in Sweden 2007 where they found a potential partner… Probac AB : • Produce Probiotic Bacteria for use in functional foods, nutritional supplements and pharmaceuticals. Company expertise & requirements matched! • • Probac needed development and manufacturing expertise for their Probiotic product Encap could do it! Partnership Agreement: • Exclusive collaboration agreement signed to develop an oral probiotic for the treatment of antibiotic associated diarrhoea (AAD)

42. Case Study: Commercial Partnering Hydrosense Ltd: • • • Manufacturers of the world's only test for detecting Legionella bacteria in water Profile published on database by EEN & distributed to EU network Expression of interest received from Irish SME Water Technology Ireland Ltd: • Provide chemical sanitation services for Dairy, Meat, Brewing, Bottling industry in Ireland. Company expertise & requirements matched! • WTL needed an on-site Legionella test kit • Hydrosense could do it! Partnership Agreement: • Distribution partnership deal commenced

43. Funding…

44. Horizon 2020 Eurostars (R&D) Eco-Innovation

45. EU Funding - how we can help…. • Partner search and European networking • Awareness raising events • Early intelligence • Route into UK NCPs & EU project officers • Draft application review

46. How we work with SDI… Supporting Missions.. • Promotion of outward missions by liaising with local EEN offices to raise awareness of the event in the country in question • Support from colleagues across Europe to attract more companies to Scottish missions Brokerage Events… • Partner brokerage events are held throughout the year across the Enterprise Europe Network. • Pre-arranged and facilitated meetings with international partners. • I.e. Medica – 94 organisations, 26 different countries.

47. info@enterprise-europe-scotland.com http://www.enterprise-europe-scotland.com

48. Access Europe 2013 Isabelle Henderson International Trade Adviser Smart Exporter

49. WHAT IS SMART EXPORTER? • Smart Exporter is an international trade skills programme designed to increase exporting skills and knowledge amongst Scottish businesses • This initiative is delivered by SDI and funded by ESF • Smart Exporter services are available on a free or subsided basis to businesses and individuals across Scotland

50. EXPORT ADVISOR SUPPORT Access to support from an Experienced Export Advisor which includes: • An one to one meeting to discuss your international plans and how the Smart Exporter programme can help your business • Help with market research about the market potential for your product or service or information about your competitors • Access to free export training through workshops or online • Practical advise on how to be paid from an overseas sale to help with distributor agreements via Smart Exporter’s technical support

51. SMART EXPORTER – WHATS COMING UP Market Awareness events • Doing Business in India (31st October 2013, Edinburgh) • • • • Access Europe 2013 (6th November 2013, Edinburgh) Doing Business in Japan (28th November 2013, Glasgow) Doing Business in Russia (10th December 2013, Edinburgh) Emerging Europe 2014 (5th February 2014, Glasgow TBC) Exporting workshops - Introductory Programme (New Exporters) – Edinburgh (November 2013) Introductory Programme (New Exporters) – Glasgow (January 2014) Intermediate Programme (Inexperienced in international trade), Glasgow (Jan to March 2014) Intermediate Programme (Inexperienced in international trade), Stirling (Jan to March 2014) Future International E-commerce events and workshops to be scheduled All Smart Exporter Events: http://www.sdi.co.uk/Events.aspx

53. Access Europe 2013 Donald Rankine Senior Commercial Manager HSBC

54. Our Agenda • About the financial framework • Managing Risks • Payment Issues • Summary Restricted

55. The Financial Framework • European Union – a “domestic” market • Switzerland – EFTA member • No pan-European bank • Single Euro Payments Area (SEPA) • € not the common currency in all countries Restricted

56. Managing Risks • Who is your customer? • Credit rating of the customer • Open account trading • Standby Letter of Credit as a “back-up” guarantee • Currency risk Restricted

57. Payment Issues • Need for € and CHF bank accounts • In-country bank accounts • Creation of subsidiary companies in each country • Banking costs • Information reporting Restricted

58. Summary • Need to manage your risks • Be familiar with business culture • Very achievable – go for it! Restricted

59. Access Europe 2013 Peter Gouw Partner / Tax BDO

60. FISCAL FRAMEWORK FOR EXPORT AND BUSINESS IN Benelux Germany/Austria/Switzerland PETER GOUW 6 NOVEMBER 2013

61. CONTENTS • Export vs Trading • Brand vs Subsidiary • Transfer pricing, thin cap and world wide debt rule • Controlled Foreign Company rules (CFC) • Corporate taxes • Business tax incentives • Capital gains for businesses • VAT • Personal taxes

62. Benelux

64. EXPORT/IMPORT VS TRADING IN A COUNTRY • Export and import activities • Trading in Benelux/Germany/Austria/Switzerland using: • A showroom • A warehouse for delivery • An agent • A sales office • A branch • A company • Residence for corporate tax purposes • Permanent establishment (PE) • Incorporation • Residence/registration for VAT purposes

65. BDO offices in the UK Belfast (Northern Ireland) Birmingham Bristol Cambridge Cardiff Chelmsford Edinburgh Gatwick Glasgow Great Yarmouth Guernsey Guildford Ipswich Isle of Man Leeds Leicester Lincoln Liverpool London Manchester Norwich Nottingham Reading Sheffield Southampton

66. BRANCH VS SUBSIDIARY UK Parent • UK tax on branch profits UK Parent No UK tax on overseas sub income • Relief for tax paid abroad up to level of UK tax Check whether dividend is: • Exempt from tax in UK • Withholding tax applies Overseas Branch • Local tax on branch Overseas Subsidiary • Local tax on subsidiary • Effective tax position may be the same – but consider start-up losses

67. TRANSFER PRICING, THIN CAP AND WORLDWIDE DEBT RULE • Trading with branch or sub needs to be done on an arm’s length basis • This applies to goods/services ultimately sold externally but also applies to inter-company admin and finance services • Need to consider intangible assets/services e.g. use of brands • Need to watch mix of debt and equity funding • There are also UK “worldwide debt” rules which are aimed at ensuring that there is not a disproportionate amount of debt allocated to the UK

68. CONTROLLED FOREIGN COMPANY (CFC) RULES • What are the CFC rules about? • Excluded countries – no CFC issue at all: • Germany • Austria • Excluded with qualifications: • Belgium • Netherlands • Luxembourg • Not excluded • Switzerland • If not an excluded country – consider other “gateways”

69. BDO offices in the Netherlands Alkmaar Alphen a/d Rijn Amersfoort Amstelveen Arnhem Breda Den Bosch Den Helder Dordrecht Ede Eindhoven Emmen Groningen Haarlem Helmond Hengelo Heerlen Leiden Maastricht-Airport Naaldwijk (Westland) Nijmegen Nunspeet Roosendaal Rotterdam The Hague Tilburg Utrecht Wognum (West-Friesland) Zutphen

70. CORPORATE TAXES Belgium Main CT rate Netherlands Luxembourg Germany Austria Switzerland 33.99% 20% - 25% 21% 15.83% 25% 8.5% (7.83% 7% solidarity surcharge 6.75% Municipal (L town) - Effective rate 29.22% 7% -17.15% (Municipalities) No Canton Municipality Other CT rate Tax year Quarterly payments Social security contributions by employer Calendar year Calendar Year Calendar Year Calendar Year Calendar year Calendar Year Yes Maybe Yes Yes Yes No/Yes Yes Yes Yes Yes Yes Yes - 3% municipal tax on salaries - 4.5% Family Burden Equalization Fund Other payroll taxes WHT Dividends Interest Royalties 15/5/0% 15/0% 0% 15/10/0% 0% 0% 15/5/0% 0% 0% (5% inbound) 15/5/0% 0% 0% 15/5%/0% 0% 0/10% 15/5/0% 0% 0%

71. BDO offices in Belgium Antwerp Brussels Ghent Hasselt Lasne Liège Namur Roeselare Wavre

72. BUSINESS TAX INCENTIVES Belgium R&D Yes General investment – deduction Environmental investment deduction Yes Investment incentives Austria 10% premium on expenses subject to limits Additional depreciation for small companies 15% - 40% of investment Various assets Environmental/ R&D type assets Yes – e.g. environment Renovation of buildings 20% premium on training of employees 10% premium on training costs CT based on Volume 80% deduction of patent income 5% effective rate possible Switzerland V A R I O U S A T 44% of cost Tonnage tax Notional interest deduction Germany 28%/50% wage tax reduction Education allowance Patent box Luxembourg Investments up to €306,931 Energy saving investment Accelerated depreciation Netherlands CT based on volume 80% deduction of patent income Deduction for equity and reserves Various e.g. funds and VCs C A N T O N L E V E L

73. BDO Luxembourg 2, Avenue Charles de Gaulle L-1653 Luxembourg PO Box 351, L-2013 Luxembourg

74. CAPITAL TAXES FOR BUSINESSES Belgium Netherlands Luxembourg Germany Austria Switzerland Annual Real Estate tax 25% – 60% on “deemed” rental value Yes – per municipality 0.84% - 10% (municipalities) 0.95% - 2.84% (municipalities) 0.2% - 1% (municipalities) No/Yes Transfer tax 10%/12.5% 2% No 3.5% - 5.5% (Länder) 3.5% (+2% costs) No/Yes 1% - 3% No No 0.5% but exemptions - - No/Yes Net worth tax

75. BDO offices in Germany Berlin Bielefeld Bonn Bremen Bremerhaven Cologne Dortmund Dresden Dűsseldorf Erfurt Essen Flensburg Frankfurt Freiburg Hamburg Hannover Kassel Kiel Koblenz Leipzig Lűbeck Munich Rostock Stuttgart Wiesbaden

76. VAT Belgium Netherlands Luxembourg Germany Austria Switzerland VAT registration threshold No threshold No threshold €10,000*1 €17,500*1 €30,000*1 CHF €100,000 Distance selling threshold €35,000 €100,000 €100,000 €100,000 €35,000 Not Applicable 21% 21% 15% 19% 20% 8% €700,000 €1,000,000 €900,000 €900,000 €200,000 €150,000 €500,000 €500,000 €550,000 €550,000 Not Applicable Yes Yes Yes Yes Yes No Standard rate Intrastat threshold Arrivals Dispatches Directive 2008/9/ EC applies? 1 * No threshold for non-resident businesses

77. BDO Offices in Austria Graz Linz Salzburg Vienna Villach

78. PERSONAL TAXES Belgium Netherlands Luxembourg Germany Austria Switzerland 25-50% (investment income 25%) 37% - 52% (investment income – separate rules) 8 – 40% 14% - 45% 36.5% – 50% Max 11.5% Highest on incomes over €37,330 €55,991 €100,000 €250,000 €60,000 CHF 755,200/895,800 Annual allowance €6,990 €2,001 €11,265 €8,130 €11,000 CHF 14,500/28,300 Rates Church tax - 8% - 9% Other taxes 0 – 10% local tax surcharge 7% – 9% surcharge Solidarity surcharge (5.5% on tax due) Canton Municipal Ex-pat regime Yes - various exemptions Yes 30% tax free Yes – various exemptions - Limited exemption Yes – various exemptions Social security contributions – employee Yes Yes Yes Yes Yes Yes

79. BDO Offices in Switzerland Aurau Affoltern Altdorf Baden Basle Berne Biel Burgdorf Frauenfeld Fribourg Geneva Glarus Grenchen Herisau Lachen Laufen Lausanne Liestal Lucerne Lugano Olten Porrentruy Sarnen Sion Solothurn St Gallen Stans Sursee Wetzikon Zug Zurich

80. DISCLAIMER All tax information is based on information available early 2013 for the various countries. The information is only provided to give an indication of the tax systems in the countries covered. It is based on a high level review of public information and is not guaranteed to be complete. The information does not represent tax advice and BDO LLP can take no responsibility for action based on the information provided. All actions to trade or invest in any of the countries covered should be based on proper tax advice, based on all the relevant facts using UK and local tax experts.

81. Contact details Peter Gouw Tax and Valuations Partner 4 Atlantic Quay 70 York Street Glasgow G2 8JX Email: peter.gouw@bdo.co.uk Tel: 0141 249 5260

82. Access Europe 2013 Networking Break sign up for one to one sessions at the registration desk

83. Access Europe 2013 Benelux Workshop

84. Access Europe 2013 Glenn Vaughan Chief Executive British Chamber of Commerce in Belgium

85. Who We Are British by name and origin, the British Chamber is a truly international and independent organisation The British Chamber provides businesses with insight and networking opportunities We do this through events and activities organised by 3 committees: EU Committee Business in Belgium (BiB) Brussels New Generation Group (BNG)

86. Business in Belgium Committee Three task forces Training skills for business Tax, finance, and legal Sustainability and shared values The committee provides B2B networking, briefings and seminars, and profiling opportunities The committee also organises our building your Business in Belgium

87. Why Belgium? Belgium shares a border with the UK’s 2nd, 3rd, and 4th largest export destinations, and Belgium is the 6th largest. Prime office rental prices are 50-60% lower in Brussels than in London and Paris. More than 1000 public and private international organisations have headquarters in Belgium. Belgium is a similar market to the UK, so products that are successful in the UK are likely to be successful in Belgium.

88. Building your Business in Belgium An accredited, English speaking network of companies that can meet most business needs. Our partners are experts on the Belgian market. Open to members and non-members of the British Chamber. Specialised support available for companies the Belgian market Operated in collaboration with UKTI British Embassy in Brussels. new to and the

89. Building your Business in Belgium The Chamber provides: A single point of contact for the scheme Marketing and promotion of the scheme Event hosting for companies exploring the Belgian marketplace (with UKTI) Relationship management with companies and service providers Quality assurance for companies using the services

90. Services Provided One to one meetings with selected professionals Virtual Office services – meetings, events, hot desks, telecoms Marketing and promotion – PR, communications, website, IT, translation, printing, design Legal advice Logistics – freight, warehousing, storage, deliveries Setting up an office – accountancy, VAT, registration Tax advice Human Resources – recruitment, payroll, self-employment, expat regimes, social security And more

91. Golden Bridge Export Awards The Awards recognise UK companies’ success in Belgium, and promote Belgium as the ideal starter market Any company with their head office in the UK and doing business in Belgium may apply Three possible categories: Best Exporter, Best SME, Best Newcomer Process: Application – Shortlisting – Judging – Ceremony

92. Golden Bridge Export Awards 2012 winners:  Netshield: Best Newcomer  Supergroup: Best Exporter 2013 shortlist: 4C Associates, The Real Good Food Company, Weedfree On Track 2013 Awards will be held on November 21 in London You are very welcome to attend

93. Building your business in Belgium There has never been a better time... More information www.britcham.be or Luke@britcham.be BUSINESS I INSIGHT I NETWORK Boulevard Bischoffsheim 11 - 1000 Brussels Belgium - T +32 (0)2 540 90 30 - F +32 (0)2 512 83 63 - events@britcham.be www.britcham.be - VAT BE455.006.907 - Bank ING 310.1391540.64 - IBAN BE29.3101.3915.4064 - SWIFT/BIC BBRUBEBB

94. Access Europe 2013 Nadine Vandenbroucke Senior Trade Advisor UKTI Brussels

95. Belgium : at the crossroads of Europe Facts and figures on Belgium Belgium : at the crossroads of Europe November 2013 95

96. There is more to Belgium than chocolate, beer and chips! Belgium : at the crossroads of Europe November 2013 96

97. Content •Belgium: The Regions, Facts and Figures •Differences between regions •Bilateral Trade •Why Belgium •Business Culture •Strengths of the Country •Sectors Offering Opportunities for UK Companies •The Brussels Team Belgium : at the crossroads of Europe November 2013 97

98. Belgium : The Regions The regions FLANDERS (Dutch-speaking) BRUSSELS CAPITAL (bilingual – predominantly French- speaking) Belgium : at the crossroads of Europe November 2013 WALLONIA (French-speaking, with a small German-speaking community) 98

99. Belgian Institutions Organigram of Belgian political bodies Belgium: at the crossroads of Europe November 2013 99

100. Belgian fast facts • Area : 30.510sq km • Population : 11 million • Population spread 6.2 million in Flanders, 3.4 million in Wallonia and 1 million in Brussels • Population density 349 per sq km • Life expectation 77 for men, 82 for women • Maximum distance 280 km • Languages : 3 Belgium: at the crossroads of Europe November 2013 100

101. Belgian economic facts • Growth rate 2012, -0.1%, forecast 2013 1.1% • Inflation rate in 2012, 2.9%; first quarter of 2013 stood at1.4% • Unemployment rate of 8.3% • Nr 1 exporter in the world of chocolate • Antwerp: 2nd largest port in Europe Belgium : at the crossroads of Europe November 2013 101

102. Belgium: The Three Economic Regions Flanders Chemicals, plastics, automotive, life sciences, logistics & food Brussels Home of international & EU Institutions, HQ of multinationals bilingual Wallonia 82% export 2% export Service oriented, ICT & Life sciences Aerospace, pharmaceutical, steel, chemicals, mechanical & electrical engineering 60% of national GDP Belgium : at the crossroads of Europe November 2013 25% national GDP 16% export 102

103. Belgium: Bilateral Trade • 6th export market after US, D, F, NL & IR • £15.3 billion (2011) UK-BE Belgium : at the crossroads of Europe November 2013 BE-UK • 4th Supplier • £18.6 billion (2011) • UK’s 2nd export market after USA BENELUX 103

104. Why Belgium • Good test market • Gateway to Europe • Good logistics • Close by • Multi-lingual people • Anglo-Saxon culture Belgium: at the crossroads of Euorpe November 2013 104

105. Business Culture • Belgians are formal and cautious. • Visitors should have negotiating power/price. • Keep in regular touch with/visit your distributor. Belgium : at the crossroads of Europe November 2013 105

106. Business Culture • The majority of Belgian importers are small but often specialised. • Set clear/achievable targets. • Negotiate a one year contract to begin with. • Belgian law heavily protects importers. Belgium : at the crossroads of Europe November 2013 106

107. Belgium: Strengths of the Country Primarily SMEs Competitive but open economy Strategic Location Core of the EU (One of the Founders) Multi-lingual and multiculturel Belgium : at the crossroads of Europe November 2013 Highly skilled & flexible workforce 107

108. Sectors Offering Opportunities for UK Companies • Chemicals • Creative & Media • Food and Drink • Healthcare & Medical • ICT • Renewable Energy/Energy Efficiency • Security Belgium : at the crossroads of Europe November 2013 108

109. Team Wouter Debeyne (Hi-tech) Tel +32 2 287 62 42 Email: wouter.debeyne@fco.gov.uk Gert Wauters (Performance Engineering) Tel: +32 2 287 62 24 Email: gert.wauters@fco.gov.uk Belgium : at the crossroads of Europe November 2013 109

110. Team Filip Van Kerckhoven (security & defence) Tel +32 2 287 62 34 Email: filip.vankerckhoven@fco.gov.uk Nadine Vandenbroucke (consumer goods, construction, medical devices) Tel: +32 2 287 62 33 Email: nadine.vandenbroucke@fco.gov.uk Belgium: at the crossroads of Europe November 2013 110

111. Questions Any Questions? Belgium : at the crossroads of Europe November 2013 111

112. Belgium : at the crossroads of Europe November 2013 112

113. Access Europe 2013 Michiel Hendrickx Trade Adviser UKTI The Netherlands

114. Doing Business in the Netherlands: “Your gateway to the European market” Michiel Hendrickx – Trade Adviser UK Trade & Investment The Netherlands ‘Access Europe’ 6th November 2013, Edinburgh 114

115. Agenda • Why Export? • The UK and The Netherlands • Why The Netherlands? • Business Opportunities in The Netherlands • UKTI The Netherlands Events 2013 • What can we do for you? • Any Questions? 115

116. Why Export? • Increased productivity, competitiveness and innovation • Reduces financial impact of a downturn • Increased return on investment • Improve profile / credibility • Extends commercial life of goods & services • Offers employees more varied and challenging roles 116

117. Why UK economy needs the Netherlands… “The UK's biggest trading partner is Germany, but other member states, such as Holland, are also important to the success of the British economy.” Anna Holligan BBC Correspondent The Netherlands 4th November 2013 117

118. Geographic and cultural proximity to the UK • Edinburgh – Amsterdam: 400 miles • Edinburgh – London: 330 miles 118

119. Why the Netherlands? • Historic business ties • UK’s 3rd largest trading partner • UK – Netherlands Strategic Business Dialogue • Major Anglo-Dutch companies • UK exports to NL (2012): €27.5bn • UK imports from NL (2012): €34.9bn 119 1652 2010

120. Facts & Figures (1) GDP: Size: Population: 600 + 40,000 16.5 + Billion € KM2 Million 120 87% Speak English

121. Facts & Figures (2) • 4th most densely populated country in the world • Democratic and tolerant society • Open and international economy • Sophisticated market place, critical consumers • Looking for innovative products • Early adopter of new technologies 121

122. Facts & Figures (3) • 5th largest economy in the euro-zone • Stable government and industrial relations • Moderate unemployment and inflation • Sizable trade surplus • Advanced infrastructure • Important role as a European transportation hub 122

123. Gateway to Mainland Europe 123

124. Dutch Priority Sectors • Modern market economy of highly innovated and innovative companies • The High Tech Campus – ‘brainiest region in the world’ • World’s leading agro-tech cluster (2nd largest global exporter) • Some of the world’s foremost maritime and water technology companies 124

125. Business Culture - Background • Direct and ‘to the point’ communication style • Horizontal decision making structure • ‘Polder model’ • Flexibility and autonomy when abroad • Informal dress code • English widely spoken 125

126. Business Culture - Tips • Use clear communication style • Minimise use of ambiguous phrases • Be assertive • Be upfront about issues 126

127. Business Opportunities in the Netherlands 127

128. Business / Financial & Consumer Services • Leading insurers, pension funds, banks, trust offices and management consultancies • Varied performance within the sector: • + Inspection and control companies, management consultancies and travel organisations • - Architects, advertising agencies • Travel industry had 13.4% turnover increase 128

129. Information & Communications Technology • NL has an advanced ICT sector • + Application software • + Business intelligence and analytical tools • + Security software • - Hardware 129

130. Education • Bilingual Schools - English as a secondary language • International Schools & Special Needs Schools • BA, BSc, MA and MSc qualifications at Dutch universities • Educational technology and ICT opportunities • An increasing number of people choose to be educated either fully or partially in English. 130

131. Manufacturing • Sector is beginning to pick up again due to international orders • Opportunities available to companies that supply manufacturers • The European Space Agency’s Technology Centre (ESTEC) is located in NL • Their tendering system has been modified to become more open • ESA opening a new facility in Harwell, Oxfordshire 131

132. Security • The Hague Security Delta has made NL a major hub for security companies • Many opportunities to build partnerships and find innovative solutions in consortia • UK-NL Security Dialogue • ASIS International Conference & Exhibition takes place in The Hague, 13 April 2014 132

133. Food & Drink • Opportunities in alcohol-free drinks (beer), frozen products, organic food, private label, sweets & snacks • Food, drinks and tobacco shops outperformed the EU average • Shift from specialist bakers, butchers and grocery stores to supermarkets • Organic and natural products (food and non-food) • Supermarkets average a €34.2bn turnover per year • Yet they still posted a 2.4% increase in the 1st half of 2013 133

134. Non-Food Consumer Goods • Growth trends relating to ‘wellness’, ‘health’ and lifestyle • Demand for home care products, furniture and interior design • Export potential as home products grow online • Pop up stores are increasing in popularity • An ageing population  a growing care industry 134

135. UKTI Events 2013 February 2013 – Amsterdam March 2013 – Amsterdam UK Deputy Prime Minister Nick Clegg hosted a roundtable meeting with senior members of the Dutch financial community at the offices of APG Reception for members of the Anglo-Dutch business community and Netherlands British Chamber of Commerce on board the Royal Navy ship HMS St. Albans. 135

136. UKTI Events 2013 April 2013 – The Hague May 2013 – Rotterdam Networking reception for senior members of the Dutch legal profession at the Ambassador’s Residence in honour of Birketts LLP. Reception on board HNLMS Johan de Witt to celebrate 40th Anniversary of UK NL Amphibious Force attended by senior figures from the political, military and business world. 136

137. UKTI Events 2013 June 2013 – The Hague July 2013 – The Hague Annual Dinner for members of the Dutch and Belgian chapters of the Institute of Directors at the Ambassador’s Residence. Seminar for members of the Dutch telecom, technology, marketing and advertising sector hosted by British mobile marketing company, Velti. 137

138. Partners in the Netherlands 138

139. What can we do for you? • Bespoke service, impartial advice • Sector expertise • Introduction to key contacts • Use of the Ambassador’s Residence for high profile events • Such as: in-depth seminars and/or high profile receptions or dinners • UKTI handles all arrangements and attracts the right audience 139

140. What can we do for you? ”We fully appreciate the hours UKTI The Netherlands have invested in the Dixcart project and the event would have been nowhere near as successful without UKTI’s drive and enthusiasm” International Business Development Manager, Dixcart International Professional Advisers 140

141. Contact Us British Embassy The Hague Lange Voorhout 10 2514 ED The Hague The Netherlands +31 (0) 70 4270 308 michiel.hendrickx@fco.gov.uk www.gov.uk/government/world/netherlands 141 @UKTI_NL

143. Access Europe 2013 Richard Carty Commercial Director Netshield

144. Netshield Our Exporting Journey Presented by Richard Carty

145. Netshield Overview  Founded by Richard Carty and Tony Sterling in 1995, when they saw a gap in the market for a quality IT services provider.  Netshield specialises in the delivery of complete manage and serviced IT services.  Providing networking and IT expertise, skills management and support offerings across Enterprise Network environments.  UK head office is in Aldridge and office in Brussels is the first building block to developing the business in Western Europe.

146. Service Portfolio l NetHost Security and reassurance with zero downtime Hosting solutions to protect your server and vital data l NetManage Reduced costs and expert management A range of managed IT services, ensuring your network is maintained, protected and up-todate with the latest technology l NetSupport Expert support when you need it A choice of support options covering all areas of IT infrastructure l NetWork Bespoke systems and state of the art technology Plan, design and implement bespoke network infrastructures or assessment of existing IT network l NetRecover Business continuity guaranteed For minimal downtime in event of a disaster

147. How it all started! Netshield was already working with UK based companies with operations / subsidiaries around the world Decision to be proactive in European / Global markets Met with UKTI representatives at “Technology World” in October 2009

148. Goals and Objectives  Achieve sustainable and continual growth  Maintain high levels of customer satisfaction and the delivery of quality services.  Export successfully in to a Global Marketplace  Be a trusted adviser within our field

149. First Steps  Engaged with UKTI & West Midlands European Centre  on an ICT Cluster trade mission to Belgium, in February 2010  Spent 3 days here getting an overview Presentations at the Embassy Networking @ West Midlands European Centre event Arranged meetings (1 to 1’s) at Embassy Visited organisations at their premises all over Belgium  Started to gain an understanding of the opportunity

150. First Steps...cont. We began to comprehend the reasons for expanding in Belgium New Markets…  In Belgium….  It’s proximity to the UK and other European countries  It’s languages, cultures & politics! New Business Relationships…  Met with potential partners & clients organised by UKTI &WMES  More traditional ways of business  It’s languages, cultures & politics!  More relationship based More Revenue/Profit…  New streams of revenue  New profit streams

151. We also… Met with various business organisations West Midlands in Europe Service British Chamber of Commerce in Belgium Specific Trade Associations (Agoria, L-SEC) Belgium Investment bodies Brussels Enterprise Agency* Flanders Investment* Wallonia Investment

152. Next steps  UKTI – carried out an OMIS for us on ICT opportunity which was completed in Autumn 2010 From ECR Results we:- Then we came back to do our own market • Rebranded – website, collateral for an research & talk to people/organisations in more international feel detail – November 2010 & UKTI personnel supported us in this activity • Started to exhibited at trade shows with the help of UKTI grants UKTI - We carried out an (ECR) Export Communications Review which was completed in early 2011

153. Marketing Objective  To establish Netshield as a high quality Managed IT service provider  To increase the level of contract customers in Belgium by 50% Target Market SME’s with 25 users or more, operating in the following sectors; professional services, business services, legal, associations and manufacturing.

154. Which Way to go?

155. Business Development Phase  As a result of joining British Chamber: We became involved in networking/event sponsorships/PR Uncovered business opportunities Developed useful relationships/friends/contacts Met with Hosted & delivered seminars Opened an office in Brussels

156. Business Development Phase  Spent a great deal of time in the last 18 months living & working in Belgium  Have successfully gained long term contracts Also recruited Belgians in the UK and currently looking at Belgian Interns

157. Obstacles we faced…  Business culture  Lack of local knowledge  Language barriers  Differences in marketing culture  Unfamiliar with local legislations

158. How we prevailed • Developed relationships with local businesses and Chambers • Employed a Belgian national to assist with further market research and gain local knowledge • Seek local advise for regulations and legislations

159. Some organisations we are working with………

160. The Future is Bright…  We have been proactively exporting for around 18 months now  2013 has provided promising and continued exporting growth  Working closely with UKTI and Local Chambers we have generated a number of opportunities.  Develop more Innovative Managed IT services for clients  We are now looking at the next steps and expanding into other European countries.

161. Thank you for listening Any questions? Richard Carty Email: richard.carty@netshield.co.uk Website: www.netshield.co.uk :@Netshield : http://uk.linkedin.com/in/richardcarty

162. Access Europe 2013 Q&A

163. Access Europe 2013 Germany, Austria, Switzerland Workshop

164. Germany, Austria & Switzerland Market Clinic Access Europe 6th November Edinburgh

165. Sarah Lord Regional Manager Central Europe Lauren Mcquade Managing Director English at St. Andrews

166. CER Countries

167. Germany has historically been and remains the leading geographical export market of choice for Scottish companies in CER representing circa 71% of all interest this last financial year. This fully aligns with the Business Connections data Trends. Switzerland and Austria have historically been the two other countries of interest for Scottish companies together accounting for approximately 15% of interest. In the last 12 months, Poland is increasing but not yet impacting on CER field Table 1 – CER Trade Assists by Country 2012/13 Country Germany % assists by country 71.89 Austria 9.44 Poland 5.42 Switzerland 3.82 Czech Republic 3.41 Albania 1.61 Bulgaria 1.41 Hungary 1.20 Romania 0.80 Croatia 0.60 Bosnia 0.20 Albania 0.20

168. DACH – Broad Summary ofSize in Mio. (2012) 12 Population Sector Interest Received last months Sector Germany Austria Switzerland Food & drink √ √ √ Education √ √ √ Textiles √ √ √ Renewables √ √ Tourism √ ICT/techi √ √ Oil & gas √ √ FS/BS √ √ Life Sciences & Chemicals √ √ Non sector √ √ √

169. GDP per Capita in $ (2012) Scotland $32,856 * Germany $39,700 Switzerland $46,200 Austria $43,100 Slovenia $28,700 Croatia $18,100 BosniaHerzigovina $8,400 Montenegro $12,000 Albania $8,200 CER Region *Excluding oil and gas Poland $20,900 Czech Republic $27,600 Slovakia $24,600 Hungary $20,000 Romania $13,000 Serbia $10,600 Bulgaria $14,500 Macedonia $10,800 Source: www.cia.gov/ and for Scottish data, Scottish Government

170. Population Size in Mio. (2012) Scotland 5,2 Germany 81.8 Switzerland 7.9 Austria 8.4 Slovenia 2.0 Croatia 4.3 BosniaHerzigovina 3,8 Montenegro 0,6 CER Region Poland 38.5 Czech Republic 10.5 Slovakia 5.4 Hungary 9.9 Romania 21.3 Bulgaria 7,3 Serbia 7.2 Kosovo 1,7 Albania 0,2 Source: Eurostat / and Scottish Government

171. Real GDP Growth in % (2012) Scotland 0.4% Poland 2% Germany 0.7 Switzerland 1.0% Austria 0.8% Kosovo 2.1% Albania 1.3% CER Region Slovenia -2.3% Croatia -2% BosniaHerzigovina -0.7% Czech Republic - 1.2% Slovakia 2% Hungary -1.7% Romania 0.3% Bulgaria 0.8% Serbia - 1.8% Montenegro -5.0% Source: www.cia.gov/ and Scottish Government

172. Total Imports in $ bn (2012) Scotland $23,3bn Poland $195,4bn Germany $1.222bn Switzerlan d $287,7bn Austria $163,2b n Slovenia $28,0bn Croatia $20,2bn BosniaHerzigovina $8,8bn Montenegr o $2,4bn CER Region Czech Republic $124,2bn Slovakia $75,9bn Hungary $87,3bn Romania $67,54bn Bulgaria $31,5bn Serbia $18,3bn Kosovo $3,3bn Albania $4,2bn Source: www.cia.gov / and for Scottish data, UK Office for National Statistics

173. Total Exports in $ bn (2012) Scotland $37,7bn * Germany $1.460bn Switzerlan d $333,4bn Austria $160,1b n Slooveni a $27,5bn Croatia $12,4bn BosniaHerzigovina $3,3bn Montenegr o $0,4bn CER Region Poland $188,5bn Czech Republic $131,7bn Slovakia $80,6bn Hungary $90,2bn Romania $58,1bn Bulgaria $26,8bn Serbia $11,3b n Kosovo $0,4bn Albania $ $0,9bn Source: www.cia.gov/ and for Scottish data, UK Office for National Statistics *Excluding oil and gas, data 2011

174. Exports from Scotland to … in £ Mio. (2011) Germany 1,365 Switzerland 640 Poland 205 Czech Republic 75 Slovakia 10 Austria 75 Slovenia 5 Hungary 60 Romania 145 Bulgaria 20 Croatia 5 CER Region Source: Scottish Development International / crm

175. Number of SDI assists (2012/13) Poland 27 Germany 358 Switzerland 19 Austria 47 Czech Republic 17 Hungary 6 Croatia 3 BosniaHerzigovina 1 Albania 9 CER Region Romania 4 Bulgaria 7 Source: Scottish Development International

176. What do all DACH economies have in common ? • DACH all have high export rates • DACH all have strong SME’s or Mittlestand • DACH are very strong innovators • Networks are key in all DACH countries but networks vary – personal networks very important in AT • Formality & Punctuality do count • Business relationships take time to build up – be patient • Trading in the language helps – literature • Prepare, prepare and prepare for meetings ! • Make use of networks including chambers overseas and sector associations

177. DACH Country Differences • Germany is not Austria ! Austria is not Switzerland etc – nationality and regional identities are strong and count • Remember different employment (longer) and payment terms (shorter) • Proactive Business Development is key to establish & expand your business and revenue – – Trade Fairs pivotal to business development in Germany (auma.de) Personal networks perhaps more important in Austria and Switzerland • Austria developing as a headquarters location for central europe trade partly due to geographical position and stabile eurozone benefits • Respect national and regional variations (16 federal states in De, 9 in AT and 26 swiss cantons) • Don’t assume – – – – Austria is more than tourism and the sound of music (Porsche is the biggest firm in Salzburg £10B t/o 17000 employees) Switzerland is more than banks & chocolate (e.g. Cleantech – hydro electric power 58%) Germany is not just big engineering and automotive firms ( Mittlestand =80% firms. 60% employment)

178. Population Size in Mio. (2012)

179. Market Awareness Seminar November 6th, 2013 “The relationship is key”

181. English at St Andrews Learn English. Experience Scotland. Who we are and what we offer… • http://www.youtube.com/watch?v=IzoOJfZeYf

182. Phase 1 – “Testing the waters” • Step 1 Market intelligence • Step 2 Contact relevant agencies • Step 3 Make face-to-face contact, attend events/trade fairs

183. Phase 2 – ‘Getting to know one another” • Agencies & contacts • Committing to the relationship • German protocol/hierarchical way of doing business, their values • Trial of product/service

184. Phase 3 – Nurturing the relationship Be willing to: • adapt your offering • outline your offer in detail • commit time to face-toface contact

185. Phase 4 – Valuing the relationship In our experience it is crucially important to: • maximise on the opportunity – give and extract full value • use experience to attract new customers • follow up

186. Thank you! Please feel free to contact me at: lauren@easaenglishtraining.com Tel: 07525 355838

187. Access Europe 2013 Q&A

188. Access Europe 2013 Networking Lunch sign up for one to one sessions at the registration desk

189. Access Europe 2013 One to One meetings

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