In this month's topic, we will review the foundations needed for your organisation and growth team to generate, evaluate and implement a sustainable growth process. In light of the global economic situation, we will also be reviewing some do’s and don’ts during a recession. It is our position here at Frost & Sullivan that with a solid CEO growth team and a growth process in place you can reduce your risk during uncertain economic times and even generate growth opportunities.

1. APAC
Chairman’s Series on Growth
The 10 Core Tools To Drive Growth
Presented by
Craig Baty Martin Gilliland
Global VP, IT Practice, VP, IT Go To Market Strategies
Sydney, Australia Singapore
Frost & Sullivan Frost & Sullivan
March 2009

2. Agenda
1. Recap of Poll Result from Previous webcast
2. Brief Overview: Where We Are in the Series
3. The 10 Growth Processes
4. Why Look at Growth Processes?
5. Growth Process Analysis
6. What is the Right Growth Strategy?
7. Geographic Expansion
8. Merger and Acquisition
9. Outsourcing to Drive Growth
10. New Product Launch
11. New Product Development

3. Polling Questions from February APAC CSG (Chairman’s
Series on Growth)
Have you cut back your 2009 business plans due What strategies are your company utilising during this
to the fear of an economic downturn? period of economic turmoil? Please select all that apply:
Wait
Distribution and see
Q3 2009 Channel strategy
17% Strategies 12%
Cutting
19%
Q4 2010 operationaal
33% Product costs
Developmen 19%
t:
Q4 2009 19%
Market share
50% Rebound expansion
Strategy 12%
Q4 2011 Beyond $ in growth 19% M&A
0% strategy strategy
0%
0% 0%
Which of the following Growth Processes is your Which member(s) of your "Growth Team" are currently
company depending more heavily on to drive growth? driving your company's growth strategy?

4. The Growth Acceleration System

5. The 10 Core Tools To Drive Growth
• Mergers & Acquisitions
• New Product Development
• Geographic Expansion
• Strategic Partnering
• New Product Launch
• Growth Sourcing…Outsourcing
• Distribution Channel Optimisations
• New Customer Application
• Competitive Strategy
• Marketing/Sales Strategy

6. Why Look at the 10 Core Tools?
1. Optimising Impact of Growth Pipeline
2. Comprehensive Review of All Opportunities
3. Avoids Over-Reliance on One Growth Process
4. Checklist System Identifies Undiscovered Opportunities
5. Supports Innovation and the Creative Process
6. Global Environment is Increasingly Competitive

7. Annual CEO Survey on Growth Strategy
Core Tool Analysis: 4 Measurements
• Where is the Growth Coming From?
• The Current Utilisation of Growth Tools and Processes
• The Most Difficult Growth Tools to Utilise
• Evaluation of Organisations Skills per Growth Process

8. Sources of Growth…An Over-reliance on New Product
Development
Top Successes Regarding Growth..
#1 Success #2 Success #3 Success
30%
26%
20% 21%
20%
17% 16% 16%
14% 14%14%
12% 12% 13%
12% 11% 11%
10% 10%
10% 9% 9% 8%
7% 6% 5%
5%
0%
Technology Product Marketing Competitive Customer Sales Strategy General Geographic
Development Strategy Strategy Strategy Orientation & Growth Expansion
Support Strategy
Total Sample
Selecting… 57% 47% 42% 39% 31% 31% 28%
21%
What are the top three areas that you have had the most success in growth?

9. Growth Tools & Techniques…Underutilized Management
Tools
By far, Strategic Partnering is the most underutilized management tool, as reported by 34% of CEOs.
And, while Customer Research is the second most underutilized, various other management tools appear
to be used more often.
Most Underutilized Management Tools...
40%
34%
30%
26%
20% 20%
20% 18%
16%
15% 14% 14% 14%
10%
0%
Strategic Custom er Strategic Market Technology Sales R&D Marketing New Product
Mergers &
Partnering Research Planning Analysis Acquisitions Implementation Strategy Strategy Launch
What are the main three management tools utilized by your organization to drive growth?

10. Difficult Growth Processes to Implement
As previously reported, only 2% of CEOs report they strictly utilize Mergers & Acquisitions as a growth
strategy…and most likely the primary reason is that Mergers & Acquisitions are considered the most
difficult tool to implement (39%). Also notable, the same proportion (34%) citing that Strategic Partnering
is underutilized also report that it is difficult to implement…thus, this seems to explain the earlier results.
Most Difficult Management Tools to Implement...
39%
40%
34%
30%
22%
20% 19%
20%
16% 15% 15%
13% 12%
10%
0%
Mergers & Strategic Technology Strategic New Product Market Competitive Benchmarking
Grow th Sales Custom er
Acquisitions Partnering Implementation Planning Launch Analysis Strategy Strategy Research
What are the main three management tools utilized by your organization to drive growth?

11. Growth Processes – The CEO’s Assessment of Skill
Organization's Skill/Techniques
Very Good Good Fair Poor Very Poor Not Applicable
100%
9% 8% 7%
10% 10% 12% 12% 10% 8%
10% 14%
80%
29% 31%
24% 33% 37% 32% 38% 41% 47%
36%
60%
40% 37%
49% 43% 42% 40% 44% 39% 32%
39% 32%
20%
21%
12% 14% 12% 13% 9% 9% 14% 9%
7%
0%
Technology R&D Strategic Growth Marketing Sales Customer Strategic Best New Product
Implementation Planning Strategy Strategy Strategy Research Partnering Practices Launch
Very Good/
Good… 61% 58% 57% 54% 53% 53% 48% 46% 46% 41%
Note: Proportions less than 5 percent are not shown.
How would you rate your organization regarding the following growth skill/techniques?

12. Geographical Expansion Model - Indicators
Factors Description Indicators
• Political Stability
Business • Political stability • Degree of Openness
Environment • Corruption
• Economic Growth
• Economic stability • GDP Per Capita
Economy
• Purchasing power • Exchange Rate
• Inflation
• Employment
• Labor force • Youth Unemployment
Labor
• Labor cost trends • Minimum Wages
• Labor Cost
• Computers and Internet Users
Infrastructure • Cost of operation • Real Estate Prices
• Quality of Infrastructure • Telephone and Cellular Subscribers
• Telephone Charges and Broadband Subscribers
• Number of Graduates
Education • Workforce availability • Graduate Enrolment Ratio
• Language Skills - English and other languages
• Revenues and Revenue Potential
• Revenue potential • Revenues and Revenue Potential (Region)
Market • Competition • Availability of Qualified staff
Indicators
• Resources • Number of Competitors
• Foreign Language skills

13. Geographical Expansion Model - Ranking
Rankings 2000 2005 2010 2015
1 UK UK UK UK
2 Argentina Argentina Argentina Poland
3 Czech Poland Poland Argentina
4 Poland Germany Czech Czech
5 Germany Czech Germany Germany
e
6 Hungary Hungary Hungary Hungary
pl
7 Slovakia Slovakia Slovakia Slovakia
m
8 Slovenia Slovevia Slovenia Slovenia
Sa
9 Lithuania Lithuania Lithuania Lithuania
10 Estonia Estonia Estonia Estonia
11 Latvia Serbia Latvia Latvia
12 Croatia Croatia Croatia Croatia
13 Serbia Latvia Serbia Serbia
14 Macedonia Macedonia Bulgaria Bulgaria
15 Bulgaria Bulgaria Macedonia Romania
16 Albania Romania Romania Bosnia
17 Bosnia Albania Albania Macedonia

14. What is the Right Growth Strategy?
ORGANIC M&A
Advantages Advantages
• Greater control • Speed
• Less capital structure risk • Diversification/access to new product/
service line, intellectual property, and
• Involves less uncertainty capabilities
• Allows focus on core competencies • Increase global reach and market share
• Greater investor transparency • Acquire talent and human resources
• Game changing potential
• Accelerate revenue growth
Disadvantages Disadvantages
• Takes time and long-term focus • Integration issues
• More reliant on own capabilities • Increased potential to destroy
shareholder value over long term

15. Key Challenges
Ke y Challe nges to an Organic Grow th Strategy Key Barriers to a Successful M&A Strategy
Other, 14.6% Other, 14.1%
Talent, 26.9%
Political, 5.4% Market Reaction, 5.0%
Valuations, 36.1%
Material Costs,
5.8% Shareholder Concerns,
7.5%
Ideas, 10.4%
Legal Issues, 9.1%
Shareholder
Cost of Capital, demand for near-
15.4% term impact, Competition from Lack of Targets, 16.2%
21.5% Financial Buyers
(Private Equity), 12.0%
Source: Frost & Sullivan

16. What is the right approach?
• M&A should be used as a tool for growth - not necessarily a strategy in itself
• A combination of organic and inorganic is best
• Explore and understand alternative ways of measuring success, risk, and
growth opportunities (cost of not doing a deal)
Organic Growth – Process Acquisition Growth - Issues
Successful firms have higher IRR hurdle
rates Proactive approach and opportunistic
Disciplined capital allocation process Ongoing process
Internal communication Setting the right expectations
Pipeline measurement and growth Clear goals and objectives
budgets
Systematic due diligence takes time and
Effective understanding of strengths and creativity
weaknesses
Focus on pipeline creation as well as
Clear goals and objectives execution
The right structure and process are important for both options

17. M&A Thought Leadership
We break the M&A process into four steps:
1. Sector or trend overview
2. Target specific analysis
3. Transaction specific due diligence
4. Post-deal integration and strategy
Leverage specific tools and processes that support each step
Deal Sector and Trend Target Specific Transaction Post-Deal Integration
Origination Overview Analysis Due Diligence and Strategy

18. Our Approach to Growth-Sourcing
Our highly-skilled team of External Internal
consultants can help you meet your
growth objectives by: Frost & Off-shoring
Sullivan Growth
Outsourcing Objectives
• Assessing the external outsourcing Model GROWTH
opportunities utilising Frost & Sullivan ZONE &
STRATEGY
Growth Sourcing Model
• Evaluating your internal growth
objectives and execution capabilities
• Partnering with your team to translate Financial Benefit –
these opportunities into measurable ROI/EVA
growth
Internal

19. Growth Sourcing Methodology
Review of Current
Secondary/ Financial Impact
Outsourcing Status Quantitative
Primary and
and Growth and Qualitative
Research Economic Benefit
Objectives Analysis
Frost & Sullivan Industry Frost & Sullivan
Database, Country outsourcing model- Return On Investment,
Client Briefing on economic forecasts, Destination of choice. Economic Value Add.
Objectives and Current primary research with Growth Thought Leader: Outsourcing for growth
Outsourcing Status successful companies in Growth Workshop, on top-line and bottom-
industry or adjacent Operational Best Practices, line
markets, case studies Outsource Strategy
STRATEGIC REVIEW COMMITTEE
Frost & Sullivan's Strategic Review Committee, composed of Senior Partners, reviews the research strategies, findings, and
recommendations at key points throughout the project. This process is designed to ensure that 1) the project objectives are
completely met, 2) the findings and recommendations provide the utmost strategic value to clients, and 3) the client’s
research investment is fully maximized.

20. Frost & Sullivan Growth-Sourcing Model
F r o s t & S u lliv a n - F r o s t & S u lliv a n - U s e r - S u b U s e r - T o ta l F r o s t & S u lliv a n - U ser -
In d ic a to r M e a s u re m e n t
S u b W e ig h t T o ta l W e ig h t W e ig h t W e ig h t T h r e s h o ld T h r e s h o ld
P o litic a l S ta b ility 4 0 .0 0
B u s in e s s E n v iro n m e n t D e g re e o f O p e n n e s s 3 0 .0 0 7 .5 1
C o rru p tio n 3 0 .0 0
1 0 0 .0 0 0 .0 0
F iv e Y e a r G ro w th 1 0 .0 0
G D P P e r C a p ita 5 0 .0 0
Econom y E x c h a n g e R a te 1 5 .0 0 7 .5 0 .7 5
In fla tio n 1 5 .0 0
FDI 1 0 .0 0
1 0 0 .0 0 0 .0 0
E m p lo ym e n t 1 2 .0 0
Labor Y o u th U n e m p lo y m e n t 2 4 .0 0
50 1
M in W a g e s 2 0 .0 0
Labor C ost 4 4 .0 0
1 0 0 .0 0 0 .0 0
C o m p u te rs ( p e r 1 0 0 ) 1 3 .0 0
C o m p u te rs ( 1 0 0 0 0 0 0 ) 4 .0 0
In te rn e t U s e rs (p e r 1 0 0 ) 1 3 .0 0
In fra s tru c tu re In te rn e t U s e rs (p e r 1 0 0 0 ) 8 .0 0
20 1
R e a l e s ta te p ric e s 1 4 .0 0
T e le p h o n e 6 .0 0
T e l C h a rg e s 1 7 .0 0
B ro a d b a n d S u b s c rib e rs 2 5 .0 0
1 0 0 .0 0 0 .0 0
G ra d u a te s 3 7 .0 0
E d u c a tio n G ra d u a te E n ro lm e n t 1 3 .0 0 15 1
S iz e o f E n g lis h S p e a k in g P o p u la tio n 5 0 .0 0
1 0 0 .0 0 100 0 .0 0 0
Business Environment
For doing business, stable political conditions, consistent policy, and regulatory environment are important and have a greater degree of influence
on the decisions relating to the choice of offshore locations.
Economy
Consistent economic growth helps in stable economic indicators such as inflation, exchange rate, and interest rate has significant impact on costs and
business and profits.
Labor
For outsourcing decisions, wage differential among the countries is the key. Employment and unemployment and labor cost trends are
Infrastructure
Measures use and penetration of ICT technologies and trends in telephone and internet charges
Education
Resource availability and quality of the workforce are important determinants of location choice decisions.

21. Frost & Sullivan Growth-Sourcing Model
Rankings 2000 2005 2010 2015
1 India India India India
2 The fYR of Macedonia Estonia Lithuania Lithuania
3 Serbia and Montenegro The fYR of Macedonia Estonia Estonia
4 Estonia Serbia and Montenegro Poland Poland
5 Bulgaria Poland Bulgaria Bulgaria
6 Latvia Lithuania Serbia and Montenegro Serbia and Montenegro
7 Poland Bulgaria The fYR of Macedonia Slovakia
8 Lithuania Slovakia Latvia Latvia
9 Croatia Croatia Slovakia The fYR of Macedonia
10 Slovakia Hungary Croatia Croatia
11 Czech Republic Latvia Czech Republic Czech Republic
12 Hungary Czech Republic Hungary Rom ania
13 Albania Rom ania Argentina Hungary
14 Rom ania Argentina Rom ania Argentina
15 Bosnia and Herzegovina Albania Malta Slovenia
16 Argentina Malta Slovenia Malta
17 Slovenia Slovenia Albania Bosnia and Herzegovina
18 Cyprus UK Bosnia and Herzegovina Albania
19 Malta Bosnia and Herzegovina USA USA
20 USA Cyprus UK UK
21 UK USA Cyprus Cyprus
22 G erm any G erm any G erm any G erm any
• Allows quantitative analysis of location (country and city) attractiveness
• Detailed investigation based on 22 critical indicators
• Allows users to assign weights
• Built-in flexibility to factor industry-specific or company-specific issues
• Frost & Sullivan consultants utilize model in context of company objective and industry dynamics to develop optimal strategy
• Provides ranking for Business Environment, Economy, Labor, Infrastructure and Education. Also provides overall rankings

22. Product Launch Process

23. The Growth Acceleration System
(FGP)

24. Vision: What We Do for You
What:
Frost & Sullivan helps
clients perform at industry
best-in-class levels for
growth, innovation and
leadership

25. Vision: How We Do IT
How:
Frost & Sullivan clients
leverage our Growth
Acceleration System
which provides disciplined
research and functional best
practices to generate,
evaluate and implement
powerful growth strategies

26. Vision: When Should We Start
Now:
Now is the time to partner
with Frost & Sullivan and
leverage our Growth
Partnership Service to
drive your career and
company

27. An Unrivaled Value Proposition to Drive Growth
External Challenges Internal Challenges
TEAM Research Best Practices
Growth
Acceleration
Industry Insights Career Insights
Single User-License
Annual Membership Program

28. The Growth Partnership Service: User License
Industry-Focused Research: External Growth Environment
• Technical Insights Research & Alerts • Growth Opportunity Newsletters
• Country Industry Forecasts • Movers & Shakers Interviews
• Decision Support Databases • Market Engineering Research
• Economic Impact Articles • Market Insights
• Analyst Briefings • Client Value Enhancement
• Analyst Inquiry Hours • Client Councils
• Best Practices Research • Client Portal
• Financial Benchmarking & Analysis • Industry Tracker
Industry and market intelligence for critical growth decision making

29. The Growth Partnership Service User License
Career-Focused Research and Services: Internal Growth Environment
• Ask the Thought Leader Webcast
• Growth Process Toolkits
• Best Practice Guidebooks
• Executive MindXchange
• Growth Innovation & Leadership Global Congress
• Executive Briefings
• Growth Strategy Dialogues
• Online Executive Forum
• Growth Excellence Matrix Diagnostic
• Client Councils
Supporting the CEO & the Growth
Team with Growth Strategy

30. www.frost.com/gilglobal
GIL GLOBAL 2009
A global community focused on Growth, Innovation and Leadership
May 2009 October 2009
Kuala Lumpur
London
October 2009
September 2009
Shanghai
San Francisco
October 2009 December 2009
Middle East Sao Paulo
February 2010
October 2009
Tel Aviv
India

31. Next Steps
Request a proposal for Growth Partnership Services to support you and your team to
accelerate the growth of your company.
Attend Frost & Sullivan Executive MindXchange best practice networking events
(http://www.frost.com/cal) to share and address strategic challenges
Consider Conducting a 360 Degree Growth Workshop to support your long-term growth
strategy
Join us at a Growth, Innovation and Leadership 2009: A Frost & Sullivan Global Congress
on Corporate Growth (www.frost.com/gilglobal)
Register for the next Chairman’s Series on Growth: (http://www.frost.com/growthapac)
Schedule a Recession Strategy Session with a Frost & Sullivan Industry consultant (email
us: growthteam@frost.com)
Schedule a One-on-One Growth Strategy Dialogue with a Frost & Sullivan Growth
Consultant (email us: growthteam@frost.com)
Register for Frost & Sullivan’s Growth Opportunity Newsletter and Growth Team
Membership e Bulletin to keep abreast of growth opportunities in your industry and best
practices in your career track. (www.frost.com)

32. Contact Us
If you have questions or would like further information about anything we
discussed, please send your query to the email provided below and we will
get back to you shortly.
Alvin Chua
Account Manager
Automotive, Transportation & Logistics
DID: +65 6890 0997
Mob: +65 9199 4566
eMail: alvin.chua@frost.com