Developing a Culture of Innovation

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UTi Worldwide

Contract Logistics: Warehousing and Distribution

Transportation Management

Truck Brokerage and Distribution

Air/Ocean Freight Forwarding and Customs

Supply Chain Management Services

Financial Highlights (FY10)

Revenues: $3.6 billion Net Revenues: $1.4 billion Operating Income: $96 million* Net Income – continuing ops: $54 million ($0.54/share)*

Global Network 19,514 employees (FY10) 370 Owned Freight Forwarding locations in 282 cities in 62 countries Operate in 24.3 M Sq Ft

Seven Major Industry Verticals Chemicals Hi-Tech and Consumer Electronics Retail, Consumer Products Fashion and Apparel Pharmaceutical Automotive and Assembly Government, Aerospace and Defense

Service Lines

* Excludes impairment, restructuring and severance charges of $12.1 million /$13.1 million after taxes

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Culture of Innovation

Crosby Philosophy

“Quality is Free”

UTi University implemented to train managers

TQM - Total Quality Management

Benchmarking

ISO 9002 Registration -

Awarded South Carolina’s Governor's Quality Award

Six Sigma $1 million savings for clients

1989

1993

1995

1997

2000

2001

2003

QMS – Quality Management System 2010

• Federal Express • Motorola • Westinghouse • Milikin

All information in this document is Confidential.

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Training

• UTi University • Achieve Global/Frontline Leadership • Baldrige Criteria for Excellence • Management/Career Development • Labor Relations • Human Relations • Six Sigma • 360 Degree Feedback • Succession Planning

Driving Innovation

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Business Unit

Vertical

Consistency

Innovation

Importance of Innovation to Manufactures & Retailers

• LSP’s are seizing the opportunity to specialize in redesigning optimal supply chain networks for their customers

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Source : eyefortransport – 3PL Market Report NA 2010

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Automotive Vertical – Innovation 

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Automotive Vertical – Innovation 

Global Healthcare Spend

• The global health industry is dominated by the USA – 5% of world population – Spends over 45% of total healthcare

• Top 20 countries account for 90% of spend

• 84% of world population shares 11% of spending, but

suffers 95% of diseases

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Source : Espicom, WHO

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Manufacturer • Receives orders from wholesalers • Grants discounts to move product • Supplies the channel with product

Manufacturer Manufacturer Manufacturer

Wholesaler Wholesaler Wholesaler Wholesaler Wholesaler

Pharmacy Pharmacy Pharmacy Hospital Other

High cost due to duplication waste of distribution resources

High cost due to duplication waste of distribution resources

Manufacturer • Receives orders from wholesalers • Grants discounts to move product • Supplies the channel with product

Manufacturer Manufacturer Manufacturer

Wholesaler Wholesaler Wholesaler Wholesaler Wholesaler

Pharmacy Pharmacy Pharmacy Hospital Other

High cost due to duplication waste of distribution resources

High cost due to duplication waste of distribution resources

Pharma Vertical - Innovation Traditional Pharma Distribution Model

Pharma Vertical - Innovation Direct Distribution

Manufacturer • Controls the channel • Sets price and trading policies at retail • Receives detailed daily trading information • Lower costs – improved cash flow

Pharmacy Pharmacy Wholesale Hospital Other

Manufacturer Manufacturer Manufacturer

Shared Distribution Infrastructure

“Knowledge has to be improved,

challenged, and increased constantly, or it vanishes.”

Peter Drucker

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