© jeroen ketting all rights reserved · tim hesselink, partner kneppelhout sanctions russia step...

5 Identify the right value proposition


7 Main Ideas

Difficult Times


Data Source: International Monetary Fund

▶ The “risk/reward ratio” is the amount of money you invest to make a certain amount of profit.

▶ For every EURO of risk-taking investment there is continuously changing reward in Russia.

Russia’s Risk-Reward Ratio


▶ Nowadays it’s all about risks instead of potential

▶ But we wouldn’t be talking about risks if there was not potential at all

▶ Today I want to talk to you about the risks and the potential of the Russian market

▶ I stand here before you because I have some experience to share. 25 Years. LHM. LHT. KETTING.COM

▶ We went through quite a rollercoaster ride since 2014 but we came out on top

▶ We never made a loss, never borrowed money, we actually invested, and achieved 43% growth in 2018

▶ We did that by identifying potential, identifying risk and pro-actively dealing with risk and increasing potential

▶ We call that “optimizing our risk-reward ratio” and how we did that I will tell you in the coming 20 minutes.

Introduction


“Russia is never as

strong nor as weak as

she appears”

- Otto von Bismarck

“Russia is a riddle, wrapped in amystery, surrounded by anenigma”

- Winston Churchill

“Few countries in history have startedmore wars or caused more turmoilthan Russia in its eternal quest forsecurity and status. It is also true,however, that at critical juncturesRussia has saved the world'sequilibrium from forces that sought tooverwhelm it…”

- Henry Kissinger


What do we know about Russia?

ABOUT LIGHTHOUSE MANAGEMENT

OUR SERVICES:

Market Entry & Business

Establishment

Operational Management

Sales Solutions

Organizational & HR Support

8© Jeroen Ketting All Rights Reserved

LIGHTHOUSE TECHNOLOGIES

Equipment supply

Technical maintenance

Engineering solutions

99

Technical equipment, solutions and maintenance forconveying, feeding and dosing of dry bulk and powders.


1998 2003 2008/2009 2014/2015


Russia’s Sawblade Pattern

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1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Bln USD GDP of Russia, current prices

Data Source: International Monetary Fund© Jeroen Ketting All Rights Reserved

GDP of Russia

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UnitedStates

China Japan Germany UnitedKingdom

France India Italy Brazil Canada Russia SouthKorea


Countries Rank by GDP (nominal)


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Data Source: International Monetary Fund© Jeroen Ketting All Rights Reserved

Countries Rank by GDP (PPP)

• Gross public debt is 13% of GDP • Russia is #180 out of 187 (IMF data)

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Public debt to GDP ratio (top countries by GDP)


Ranking of Russia by Debt to GDP Ratio



High-Po Vertical Industry Value Chains

Dosing Conveying Storage Mixing Milling Separation

• Rotary valves• Slide gates• Loading spouts• Screw feeders• Other

components

• Diverter valves• Vortex

diverters• Screw

conveyors• Couplings• Pipe systems

• Silo• Flex-silo• Containers• Big-bag

• Paddle mixers• Ribbon mixers

• Lump breakers • Sieving machines

Dry bulk handling and process engineering

LIGHTHOUSE TECHNOLOGIES: Product Range


Food & beverages Pharma Plastics Recycling

Mining and metalsConstructionEnergy & biomassChemicals

Among our clients are the leading companies across multiple industries such as: A few examples of materialshandled by our equipment:

• Sugar• Flour• Milk powder• Coffee/tea• Pet food chunks• Plastic granules• Fertilizers• Chemical ingredients• Rubber• Metal powders• Cement• Industrial sand• Coal• Rock

LIGHTHOUSE TECHNOLOGIES: Industries


High-Po Vertical Industry Value Chains


A High-Po Vertical Industry Value Chain?


Agenda

1. Han Tiebout, Business Development Director GustoMSC

A decade of business development on the Russian offshore market

2. Oleg Pegushin, Business Development Director Kliver Yard Kaliningrad

Perspective of a Russian offshore construction yard on the Russian offshore

market

3. Tim Hesselink, Partner Kneppelhout

Sanctions Russia step by step: what is allowed and what is not allowed

4. Robert Harsanyi, Senior Export Credit Specialist Atradius

How your proposition to Russian clients with currency revenues can be

enhanced by ECA covered financing through a reduction of financing costs


Your Value Proposition



Your Horizontal Value Proposition

Don’t compete with Russian Stakeholders





Your Horizontal Value Proposition

Your strengths Your customer’s needs

Your competitor’s strengths

ImpossibleIrrelevant

Your value proposition

Competition


Identify your Value Proposition

ChallengesRisks

Understand the Risks and Challenges


▶ 1. Focus

▶ 2. Check the Risk & Challenges check-list

▶ 3. Act local, think local (Be in Russia - networking – language – Q&A)

▶ 4. Understand YOUR industry value chains

▶ 5. Define your horizontal value proposition

▶ 6. Identify your risk-reward profile

▶ 7. Know who you work with

▶ 8. Get your documentation straight

▶ 9. Strategize

▶ 1. Be pro-active

▶ 2. Don’t assume

▶ 3. Limit your exposure

▶ 4. Keep your cool (long-term > short-term)


Prepare for the Risks & Challenges

8 Questions to ask

1. Do we have a competitive product?

2. Do we know the market?

3. Are we hungry enough for the business?

4. Are we ready to go local?

5. Do we have a clear strategy?

6. Can we dedicate enough resources?

7. Do we have the right team?

8. Are we capable and willing to take control?


More than 1,500 Western companies over the last 2 decades used Lighthouse as their trusted advisor and benefited from its extensive knowledge and network.

[email protected]+7 (495) 980 09 79

www.thelighthousemanagement.com

© jeroen ketting all rights reserved · tim hesselink, partner kneppelhout sanctions russia step...

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