Ormita corporate profile 2011
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Ormita corporate profile 2011

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Vår internationella företagsprofil 2011.

Vår internationella företagsprofil 2011.

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Ormita corporate profile 2011 Ormita corporate profile 2011 Document Transcript

  • CorporateCorporate Profile Profile2011 2011
  • Standards of Business ConductThe Company is committed to achieving and main- The Company also has documented standards oftaining the highest standards of conduct and has business conduct which sets forth the Companiesundertaken various initiatives designed to achieve commitment to integrity and ethical behaviour inthis objective. all aspects of its business activity. The standards are applicable to all of the Companies directors, officers,In 2007 the Company adopted a Corporate Gover- and employees who are required to periodicallynance Charter which is designed to ‘institutionalise’ verify their awareness of, and compliance with, thegood corporate governance and, generally, to build a standards.culture of best practice both in the Company’s owninternal practices and in its dealings with others. The Board of Directors has oversight responsibility for the standards of operation of the Company. The Company operates under a “zero deficit sys- tem” where the company, licensees, shareholders, directors, managers and staff are ineligible to acquire their own lines of credit.
  • Our Values u u Unsold appointment time, empty hotel rooms, un- Integrity sold venue passes, unfilled advertising space, rapidly We act with courage, consistency and respect to do depreciating stock, end-of-line items or oversupplied what is honest, fair and right at all times. products all represent lost revenue which otherwise will never be recovered. Innovation These unproductive or unsold assets are known as We anticipate and respond to challenges and changing “dead capital” and there is an estimated 9.3 trillion needs with creativity, enthusiasm and determination. dollars of it world-wide. Responsibility It is Ormita’s mission to transform this otherwise We are accountable to our members, employees, col- lost profit into new income, investments and other leagues, communities and shareholders for the results benefits. of our decisions and actions. Ormita works directly with Government Ministries, State Owned Enterprises, Fortune 500 Companies, Stock Exchange Listed Companies and a handful of carefully selected private corporations in 54 countries.Contents n t Ormita Country Profiles m a o r f s5. Mission Statement 66. Australia7. A Message from the Company Founders 67. Canada9. Industry Milestones 68. China10. Certifications 69. Egypt13. About Barter 70. Germany21. Barter Industry Statistics 71. Greece22. Press Coverage 72. Hong Kong27. Government Trade 73. India33. Strategic Import/Export Financing 74. Indonesia35. Corporate Countertrade 75. Iran41. Examples of Corporate Countertrade 76. Italy47. Business to Business Barter 77. Mexico53. Media Barter 78. New Zealand55. Venture Capital 79. Pakistan57. Technical Network Infrastructure 80. Poland59. Performance Management 81. South Africa64. International Call Centre Numbers 82. Sweden 83. Turkey 84. United States of America 86. United Kingdom 88. Zambia The Ormita Commerce Network, its licensees, and subsidiaries operate under the master brand name m m k ‘Ormita’ or ‘Ormita Barter’. We are the world’s largest multi-national barter network as measured by international transaction volume, country footprint and service offerings, and believed to be the second largest barter network in the world after the WIR Bank, (formerly known as the Swiss Economic Circle / Wirtschaftsring-Genossenschaft or WIR). We provide regular barter related information and offerings to more than 210,000 business and public sector cli- ents through personnel operating in Australia, Canada, China, Egypt, Germany, Greece, Hong Kong, India, Indo- nesia, Iran, Italy, Macau, Mexico, New Zealand, Pakistan, Poland, South Africa, Sweden, Turkey, United Kingdom, United States of America and Zambia. For more information, please visit ormita.com. View slide
  • 4 Ormita Commerce Network Corporate Profile 2011 View slide
  • Mission StatementFew things operate at 100% capacity Ormita mobilises the local economyIdle machinery, fallow lands, unsold appointment We do this by:time, empty hotel rooms, unsold venue passes, un-filled advertising space, rapidly depreciating stock, • giving the unemployed and under-employed a chanceend-of-line items or oversupplied products all rep- to become involved in the local community, build skillsresent lost revenue which otherwise will never be and improve their job prospectsrecovered. • creating and strengthening local micro business net- works & cottage industry clustersIt is Ormita’s mission to transform this otherwise lost • providing businesses and organizations a cash-free wayprofit into new income and benefits for business. to reward interns and volunteers, thereby improving their own performance and levels of involvement fromOrmita the community • enhancing the employment linking capacity of the local• targets organisations which have reached a certain community level of cash sales but which still have the capacity • linking people of different ages, social and economic to expand output backgrounds – families, seniors, students, immigrants,• offers the ability to trade excess capacity or unsold people without jobs, established professionals inventory for needed products and services • providing “in-kind” grants to individuals and charities• acts as a centralised broker for the trading of idle for education and community building activities and/or excess capacity by operating a fully bro- • stimulating the trade of assets within local communities kered, global trading floor and stemming asset out-flow • providing a mechanism for asset building• operates a bank-like system so participants are not required to engage in direct barter• allows for trade in areas which are “rich” in skills Ormita helps participants buy goods and assets but “poor” in cash and servicesat a discount We do this by:Ormita facilitates cash revenue growth • converting participants previously lost-profits intoWe do this by: already budgeted for cash expenses• identifying opportunities for participants to exchange their excess capacity, time or stock for fixed assets, advertising, marketing, public relations, business reno- vations, professional advisors and other products and services which can then be utilised grow future income and preserve existing cash-flows• creating opportunities for participants to purchase employee rewards and customer incentives with their unsold time or products• creating relationships between participants that encour- age loyalty• allowing participants to grow their existing “satisfied customer base”, thereby giving them an expanded port- folio and more referrals• increasing their overall turn-over, thereby increasing the capital value of the business• showing businesses how to convert their previously uncollectible debtors ledger balances into products or services they need Ormita Commerce Network Corporate Profile 2011 5
  • 6 Ormita Commerce Network Corporate Profile 2011
  • A Message from the CompanyFoundersDear PartnerAccording to studies undertaken by the U.S. Department of Commerce (DOC), GATTand World Bank; reciprocal trade, counter-trade, retail barter and community curren-cies remain a popular method of commerce with 20 to 30 percent of world trade beingfacilitated through some form of barter, World-wide corporate barter has reached the$200 billion mark as well and counter-trade reportedly accounts for over 4 trilliondollars in transactions annually.Everyone wants to conserve cash and generate more wealth and in a highly competi-tive market every business is on the look-out for something that will give them acompetitive edge. The barter industry represents an amazing opportunity for partici-pants – allowing them to “trade what they have – for what they want”.When a someone can convert its surplus capacity into something of value – eitherexpense already budgeted for or investments aimed at company growth – they willsucceed.When we established the Ormita brand we had an objective of creating a businessthat would be successful, sustainable and create value - not just for shareholders, butfor our customers as well. In short: we wanted to establish a business that we couldbe proud of for its value to our friends, colleagues and society, as well as to our ownpockets.We believe we have succeeded.Our vision is much more than being successful – it is the combined excellence andcommitment to our members, staff and all other stakeholders, and the communitieswe serve. Above all, we believe Ormita is well placed to deliver significant returnsfor our customers and partners.This document sets out our commitment to a future of further achievement, and wecommend it to you.James (Jim) Gielarowski Daniel Evans Ormita Commerce Network Corporate Profile 2011 7
  • 8 Ormita Commerce Network Corporate Profile 2011
  • Industry Timeline1934 WIR network founded in Switzerland. First major organised multi-lateral barter network.1935 Monsanto does barter deal with China. Exchanges saccharin for mackerel.1936 East India Trading Company Rupee established1972 PepsiCo deal with USSR government exchanging rights for Stolichnaya Vodka for Pepsi products.1987 Salta Province Debt Cancelling Bond, Argentina1991 Ithaca Hours are created as a way to barter indirectly in Ithica, New York.1992 Tradebart Pty, Ltd. founded and based out of Everard Park, Australia1995 Sistema Intercambio y Transacciones Locales is initiated in Ecuador. RGT was created Buenos Aires, Argentina, by urban ecologists of PAR (Programa de Autosuficiencia Regional)1996 “Tianguis TLALOC” launched in Mexico1999 BarterTrust raises $70 million in venture funding from General Motors Investment Management Corporation, Deutsche Banc Alex. Brown, GE Equity, the private equity division of GE Capital Corp., Vector Capital, Venture Strategy Partners, Argus Capital, Draper Richards, El Dorado Ventures, Generation Partners, MSC Industrial Direct and PurchasePro.com as well as individual investors2000 BarterNet raises raised $21.3 million in its Series B funding bringing its total capital to more than $26 million2001 BarterTrust changes name to Tradaq. South African meat exporter Udom Supply Immax co trades 300,000 head of cattle (approximately 10 million USD worth) for 1,080,000 tonnes of rice from Thailand.2002 XO Limited launches as independent provider of barter software. XO Limited launches Ozone New Zealand (later to become foundation for Ormita).2003 SANE Community Exchange System (CES) started operating an internet-based LETS in Cape Town, South Africa2004 Ormita founders provides barter-assisted help to Governments of Seychelles and Maldives after Boxing Day Tsunami2005 Launch of Ozone Australia Limited.2006 Ormita does deal with Bosnia-Herzegovina.2007 Portions of XO Limited proprietary systems sold as the founders exit the company to manage Ormita Ormita joins former XO software users together into a single platform and company2008 Ormita officially launches under its own brand in the USA2009 Ormita launches in Canada.2010 Ormita launches in India.2011 Ormita launches in China. Ormita launches in Italy.2012 Ormita scheduled to launch in Pakistan, Sweden and Zambia Ormita Commerce Network Corporate Profile 2011 9
  • Our Certifications Ormita Concert10 Ormita Commerce Network Corporate Profile 2011
  • Ormita Commerce Network Corporate Profile 2011 11
  • According to the World Trade Organization 15% of world trade is conducted ona non-cash basis. This includes direct trade, gift-culture, counter-trade/reciprocaltrade (often found between governments and multi-national organizations) and non-government currencies (regional currencies, gift vouchers, loyalty points, air-pointsand community currencies) and is therefore estimated to be worth approximate-ly $9.51 trillion dollars of the USD $63.4 trillion of international world trade (2010World Bank figures).12 Ormita Commerce Network Corporate Profile 2011
  • About BarterBarter is the process of exchanging products, goods or “Tax payments [by farmers] became standardised inservices, for other products, goods or services. It is a terms of quantities of wheat or barley grain. Thesesimple method of transaction where little to no money grain standards formed the basis for all the earlyis used. In today’s world, it exists parallel to the mon- money of account units, such as the mina, shekel, lira,etary system. and pound.Historically barter operated instead of money as the Money, then originated not as a cost minimizing me-primary method of exchange. This also occurred dium of exchange, but as the unit of account in whichthroughout history in times of monetary crisis, when a debts to the palace (tax liabilities) were measured. Ascurrency was unstable, or devalued by hyperinflation the area over which taxes were imposed increased,or recession. Nowadays, however, barter is a major palaces found it useful to farm out tax collections toforce in the economic world. private farmers. The first evidence of lending at inter- est comes from the practice of payment of taxes by theToday barter has become a much more systematic and tax farmers, who then took bondservants and chargedstructured system of commerce. Modern barter and interest on the village debts. ... The clay shubati (re-trade has advanced to become an effective method of ceived) tablets record these and other debts. Each tab-escalating sales, saving cash and recovering value from let indicated a quantity of grain, the word shubati, theexcess or perishable production capacity. name of the person by whom received, the date, and the seal of the receiver. The tablets were either storedA trade or barter exchange provides a trading platform in temples where they would be safe from tampering,and bookkeeping system for its members or clients to or sealed in cases, which would have to be broken toprovide barter opportunities. get to the tablet. Unlike the tablets stored in temples, the case tablets could and did circulate. A debt couldThe member companies buy and sell products and be cancelled and taxes paid by delivering a tabletservices to each other using an internal currency recording another’s debt whereupon the case whichknown as barter or trade dollars. Participants in barter recorded the cancelled debt could be broken to verifyearn trade credits (instead of cash) when they sell and the debt terms.these credits are deposited into their account. Theythen have the ability to purchase goods and services This was general practice for several thousand yearsfrom other participants using their trade credits. …. In other words, taxes, debts, and price lists existed for thousands of years, with clay tablets circulatingAs this is multilateral trade, sellers are not obligated to before anyone had the bright idea of reducing trans-purchase from who they sold to, and vice-versa. actions costs by creating money through stamping precious metals to coins. ... From the earliest times,Multilateral barter, in the form of privately issued markets operated on the basis of credits and debits,commodity backed accounting records, has been and even the smallest sales to consumers took placein existence for thousands of years and is thought on credit, which could be carried on the books of theto date back to ancient Mesopotamia and Egypt. merchant for years before being cleared.” Haas, H. (2003)., Money upside down – A paradigm shift in eco- nomics and monetary theory?, Universität Bremen, p. 45. Ormita Commerce Network Corporate Profile 2011 13
  • Brick Tea Money: Used as a method of conducting barter transactions in Ancient China14 Ormita Commerce Network Corporate Profile 2011
  • Historic Barter Since payment by commodity generally provides a useful good, commodity money is similar to barter, butTraditional barter was the precursor of both fiat and is distinguishable from it in having a single recognizedcommodity backed money and involved the direct unit of exchange.2exchange of goods or services for one another. Each of these items was desirable in their own rightAside from the obvious issue of fair trade (ensuring and was inter-tradable with other items which thethat the items being swapped both have the same holder of the currency might desire to acquire.value), barter has other problems such timing re-straints and quantity restrictions. If you wish to trade One of the (many) stumbling blocks of this type ofcorn for fish you can only do this if corn is in season. money is that not everyone in the community mayIf you wish to trade a tonne of corn for a tonne of fish desire the resource.you have to ensure that you need a tonne of fish beforeyou carry out the trade. Imagine, for a moment, trying to read a financial state- ment that had listed assets such as: cash $5,000; 14 boxes of oranges; 25 boxes of apples; 1000 board feet ofCommodity Barter “Money” lumber; 3 acres of land; and, 8 machines. A first ques- tion that might pop into your mind is: “How in theIf the trade takes place now when corn is not readily world do I add these assets into one another?”available, or you are unable to use all of the fish now,then an “IOU” or intermediary resource is needed. It is immediately clear that for financial statements toThis intermediate commodity can then be used to buy be meaningful, amounts of dissimilar items must befish when they are needed. Thus the use of money stated in similar units. Money becomes the obviousmakes all commodities become more liquid. When choice of “similar units”.such an intermediary is introduced this becomes thebasis of a commodity currency – money backed by a By converting different kinds of objects into monetarymultilateral barter agreement between all participants. amounts, they can be dealt with arithmetically. This is called the “money-measurement concept” and is aExamples of early currency of a similar type appear fundamental principle of accounting.throughout history:• In ancient China tea leaves were compressed into “bricks”1• In medieval times Iraqis used bread• At various stages in history Russians used com- pressed cheese• Through the colonial era when gold was rare commodity money was present in the form of gunpowder, musket balls, corn and hemp.• The East African Masai used a currency made of miniature iron spears fastened together in the form of a necklace• Today, cigarettes are seen traded in prisons and social-settings whilst in the remote parts of Colum- bia coca (or cocaine) is used in lieu of a nationally issued currency. ---------------------------------------------------------------------------------------- Radford, R. A. (Nov 1945), “The Economic Organisation of a P.O.W 2(2003)., Money and Banking, Economics & You. McGraw Hill.1 Camp”, Econometrica 12 (48): 189-201(Chapter 11), p.1. Ormita Commerce Network Corporate Profile 2011 15
  • Ancient Gold Coins16 Ormita Commerce Network Corporate Profile 2011
  • Representative Money By law the refusal of “legal tender” money in favour of some other form of payment is illegal, and has atThe system of commodity money in many instances times in history (Rome under Diocletian, and post-rev-evolved into a system of representative money. This olutionary France during the collapse of the assignats)occurred because banks would issue a paper receipt invoked the death penalty.to their depositors, indicating that the receipt wasredeemable for whatever precious goods were being Governments through history have often switchedstored (usually gold or silver money). It didn’t take to forms of fiat money in times of need such as war,long before the receipts were traded as money, because sometimes by suspending the service they providedeveryone knew they were “as good as gold”. of exchanging their money for gold, and other times by simply printing the money that they needed (e.g.In this system, paper currency and non-precious Germany of World War 1).coinage had very little intrinsic value, but achievedsignificant market value by being backed by a promise When money is produced more rapidly thanto redeem it a valuable asset which was universally economic growth, the supply overtakes economicdesired. This is the origin of the term “British Pound” value. Therefore, the excess money eventuallyfor instance; it was a unit of money backed by a Tower dilutes the market value of all money issued. Thispound of sterling silver, hence the currency Pound is called Inflation.Sterling. For much of the nineteenth and twentiethcenturies, many currencies were based on representa- In 1971 the US finally switched to fiat money indefi-tive money through use of the gold standard. nitely. At this point in time many of the economically developed countries’ currencies were fixed to the USRepresentative paper money made possible the prac- dollar (Bretton Woods Conference), and so this singletice of fractional reserve banking, in which bankers step meant that much of the western world’s curren-would print receipts above and beyond the amount of cies became fiat money based.actual precious metal on deposit. As stated by leaders of the OECD as presented inIn this system, the material that constitutes the money their 2001 “Forum for the Future“ conference held initself had very little intrinsic value, but none the less Luxembourg, today, trust has shifted from a belief insuch money achieves significant market value through the convertible value of money “toward the criticalbeing scarce as an artefact. acceptance of the institutional capacity of control- ling the flows of money.”3Fiat MoneyFiat money refers to money that is not backed by re-serves of another commodity. The money itself is givenvalue by government fiat (Latin for “let it be done”)or decree, enforcing legal tender laws, previouslyknown as “forced tender”, whereby debtors are legallyrelieved of the debt if they (offer to) pay it off in thegovernment’s money. -------------------------------------------- OECD. (2002)., The Future of Money. Organisation for Economic 3 Co-operation and Development, OECD Publications Service. p.44. Ormita Commerce Network Corporate Profile 2011 17
  • Bilateral (historical) barter Multilateral (electronic) barter18 Ormita Commerce Network Corporate Profile 2011
  • Barter can be bilateral or multilateral, • Nearly every business faces the problem of cash flow management at one time or another. Issuesand usually exists parallel to monetary that contribute to the need for cash flow manage-systems in most developed countries. ment include highly competitive markets where constant advertising is a mandate, increasingBilateral barter is simple exchange (one-on-one) of a business expenditures to attract consumer atten-product or service for another product or service. tion, planned or unplanned downtime, perishable inventory and the necessity of discounting inven-Multilateral barter is a more complex exchange, where tory. Modern, multilateral barter helps businessesmembers do not exchange directly. Ormita is a multi- alleviate these problems.lateral barter exchange network. • Barter networks manage a virtual value unit (“bar-Although companies do bartering one on one, many ter dollars,” for example) of exchange, very similardeals are conducted via membership networks in bar- to a monetary system.ter companies, trade associations or barter networks;where technology and tracking software have modern- • With advancements in computer technology, theized the centuries-old system. concept of a bartering system emerged as a means by which business-to-business barter could takeAdvantages of using multilateral barter or barter place between many businesses simultaneously,exchange commerce over a direct or bilateral barter are greatly increasing the benefits of trading withoutmany. cash.• Bilateral barter is only possible when there is a coincidence of wants between two businesses. For a bilateral barter to take place it’s necessary that each party must be able to supply something the other party demands.• Multilateral barter is more complex to settle but allows trades that would not be possible with bilateral barter.• In multilateral barter, exchanges do not need to be direct. Instead three, four, five and six-way transactions are possible. Transactions can also take place at different times so no single supplier needs to “swap” their product or service immedi- ately but can do so over a period of time. In these instances the value of the deal is recorded centrally and the process managed by a commerce network or barter exchange organisation. Ormita Commerce Network Corporate Profile 2011 19
  • Ormita helps to remove the limi-tations that traditionally werea part of any barter transaction,such as the need for an equaldollar value, the mutual needbetween any two companies foreach other’s product or service,and the time it can take to coordi-nate the transaction.20 Ormita Commerce Network Corporate Profile 2011
  • Barter Industry Statistics According to the US Department of Commerce “Barter According to the International Reciprocal Trade Associa- in one form or another, accounts for nearly 30 percent tion approximately 400,000 businesses engage in formalised of the world’s total business”4. barter in the United States11. The National Association of Trade Exchanges, The A consensus of expert opinions has put the percentage of world trade linked to barter transactions at between 20% to International Journal of Hospitality Management and 25% percent12. the Michigan State University together claim that ap- proximately 70% of all Fortune 500 companies engage In North America 80,000 small businesses used barter for in barter5. the first time in 2007 and over 800,000 American companies bartered at least once 13. According to the Association of Advertising Agencies, “eight out of ten corporations engage in barter”6. Barter accounted for 31% of export operations from the Ukraine in 1995 with highly liquid goods accounting for Approximately 65% of all New York Stock Exchange- between 60 and 70% of all goods exported by barter14. listed companies engage in excess capacity / barter trade7. Companies that actively barter can do as much as 5-10% of their business annually through trades15. In 1994, on the 60th anniversary of the Swiss WIR ex- cess capacity trade system, annual volume in reached “Swapping excess goods for needed supplies, 2.5 billion Swiss Francs (over $2 billion US dollars) advertising space and improvements can and boasted 80,000 members nationally8. The WIR also enjoys a membership base of nearly 20% of all Swiss conserve cash-and generate it.”16 businesses9. At its peak in 2001-2002, an estimated 6 to 10 million Argentines participated in the Red Global de Trueque barter system, including doctors, manufacturers, and even railways, turning over approximately 6 billion US dollars per annum in transactions and accounted for approximately 15% of Argentina’s mean personal income10. --------------------------------------------4 (2004)., Department of Commerce Fact Sheet. USA DOC. -------------------------------------------- 11 (2004)., Fact Sheet, International Reciprocal Trade Association. 5 Schmidgall, R.S., Damitio, J.W. (1999)., Bartering activities of the 12 Okaroafo, S., (1989) “Determinants of LDC Mandated Counter- Fortune 500 and hospitality lodging firms., Michigan State Univer- trade,” International Management Review, (Winter), 1624. sity, International Journal of Hospitality Management 13 Frisk, S., (2007). The American Economics Association 6 American Association of Advertising Agencies. (2003). 14 Kuchma, L., (1998). Press Release. Embassy of the Ukraine to the 7 (2004)., Annual Report, National Association of Trade Exchanges United States of America. (14 Oct). 8 Lietaer, B & Belgin, S. (2004)., Of Human Wealth: Beyond Greed & 15 Schact, J. (2004)., “The Business of Bartering”, Illinois Meetings & Scarcity. Galley Edition. Events (Fall Edition). 9 Valentini, E. (2003)., Switzerland’s WIR System and Barter World 16 (2001) Kiplinger’s Personal Finance Magazine, (June 31). wide, International Trade Currency System10 Stodder, J. (2007).,Residual Barter Networks and Macro-Economic Stability. Rensselaer Polytechnic Institute at Hartford, Hartford CT. Ormita Commerce Network Corporate Profile 2011 21
  • Ormita India Staff26 Ormita Commerce Network Corporate Profile 2011
  • Government TradeTrade Procurement and Representation Ormita represents many Government entities whose procurement supply processes involve some form of barterTo help meet the ever increasing challenge of being and countertrade.able to stabilise and spur economic growth in a periodof globalisation, Ormita assists Governments and Strategic Direction of Government PolicyWholly Owned State Enterprises to leverage bartertrade for large-scale import transactions. The international government involvement in barter transac- tions (countertrades, offsets etc) represents a multi-trillion dollar annual market. This market is, however, highly frag-Although historically, many do not prefer to do busi- mented with many prime contractors who have negotiatedness through barter trade, trade experts have con- directly with governments having billions of dollars of un-cluded that world economic conditions have made filled offset obligations outstanding every year. These primecountertrade a necessary financing mechanism for contractors sometimes face difficulties in finding projectscountries that wish to fast-track investment inflow, to satisfy their offset liabilities due to complicated or badlytechnology growth and skills training and the en- adapted offset guidelines of their trading partners.hancement of trade and export capacities to othercountries. While every country has different Offset guidelines due the different economic, defence and industrial environment, a number of countries apply offsets on a case-by-case basisGovernment to Government and Government to Busi- without providing official guidelines. Experience has shownness barter trade is a mechanism to: however limited success due to reduced bargaining power and the lack of strategic planning.• Channel back of recoup foreign exchange spent for an importation; Countries with coherent and well adapted offset guidelines seem to harvest the greatest benefits out of offsets. Here,• Gain access to advanced technology and training, differences can be seen in the types of transactions that are new foreign investments, research and develop- eligible for offsets, in the differing multipliers and eligible ment and related support for national develop- industries (military, civilian), in the structure of the Offset approval authorities and the processes as well as in the ment and modernization programs; credit release procedures.• Promote mutually beneficial collaborative busi- ness ventures between local industry sectors and their foreign counterparts through joint ventures and industrial cooperation;• Promote export products and markets.Many developing nations and even developed nationsrequire countertrade in their capital-intensive foreignprocurement programs in order to fuel industrializa-tion and sustain national development programs. Ormita Commerce Network Corporate Profile 2011 27
  • Figure: Various forms of countertrade28 Ormita Commerce Network Corporate Profile 2011
  • Developing Government Barter Frame- 1. The original supply/works contract and the framework agreement are concluded together.work Agreements The framework agreement will usually be set out in a separate document, although it may beOrmita assists in developing frameworks for barter included in the original export or other supply/transactions whilst ensuring a level playing field in works contract.the market for all participants. The most commonapproach in developing a Government to business 2. The framework counter-trade agreement, thebarter trade agreement is for the parties to set out original supply/ works contract and the countertheir general agreement to a counter-trade deal in a supply/ works contract are concluded at theframework agreement. This agreement includes as same time. In this case, the framework agreementmany details of the intended operation as practicable. will contain only those provisions that link the other two contracts.When this method is used, the parties will normallyadopt one of three basic schemes:1. The framework agreement is entered into prior to the conclusion of any definitive supply contract or works contract. • Typically, the agreement covers such matters as the following: • the total value of the purchases to be made in each direction; • the general types of goods to be bought or ser- vices to be supplied; • the currency in which the price is to be expressed and payment is to be made; and • the payment procedures to be used.Often when this approach is adopted, the agreementincludes a provision that brings about the conditionsstipulated on the suppliers to conclude counter-pur-chase contracts, since it is only when they have bothbought and sold the counter-purchase goods thatdisposable cash will be obtained. Ormita Commerce Network Corporate Profile 2011 29
  • Examples of Government Barter • The Philippine Government is embarking on a • A $4 billion resort and casino in Vietnam is be- program to carry out a barter system for its coffee ing built under a barter arrangement where the products with the products of lucrative markets. government will provide the land in return for This will help them promote the exports of their eventual ownership of the assets. coffee and in turn get defense equipments from former U.S.S.R. member nations like Romania. • In order to avoid fluctuating foreign currency prices and the need for a stable reference pricing • In 2009 Saudi Arabia agreed with Pakistan to framework, Iran barters oil for food with several swap oil for food. countries. • Israel barters Calcium Carbonate, Talc and Dolo- • In the face of the embargo imposed by the US mite and other raw materials with the USA, UK on the petroleum products of Iran, the country and many European Union countries. is actively bartering with the Philippines for ba- nanas, mangosteen and durians and coordinates • The Thai Government recently held talks with with fruit growers in various regions to meet the a major Chinese bus manufacturer, Jing Long, ongoing needs of the country. regarding a barter transaction which will see Thai fruits traded for Chinese-made locomotives, pas- • Indonesian state-owned military hardware pro- senger buses, and armoured cars. Hence, China ducer PT Pindad barters armoured vehicles for gets fruits for their buses. cars with the Government of Malaysia as well as a range of other essential equipment with neigh- • Malaysia is currently supplying India with palm bouring China, Thailand and Australia. oil (from six state-owned companies) worth $121 million in exchange for a contract awarded to • The Taiwan cabinet’s Agriculture Council has the Indian Railway Construction International approved the Indonesian-proposed scheme to Company. They will lay 31.5 km. of tracks in the supply crisis-hit, cash-strapped Indonesia with southern Malaysian state of Johor. low-priced rice in exchange for oil. • The Democratic Republic of the Congo and the China Railway Engineering Corporation (CREC) have entered barter. According to this barter the Chinese company will provide Congo the desper- ately needed infrastructure in exchange for a slice of Congo’s precious natural resources to feed its booming industries. • Bilateral trade between Russia and India in 2009-10 stood at $4.54 billion and the two nations aspire to step it up more than four-fold in the next five years.30 Ormita Commerce Network Corporate Profile 2011
  • Government Procurement Adoption of BarterWhen working with foreign governments, corpora- In countries that have adopted countertrade as ations should always have in mind “what is in it for part of a government procurement policy, foreignthe Government.” What do they want that will allow suppliers and contractors are usually advised ofa company to export products into their country? the countertrade requirements during the bidding stage or supply negotiations stage to enable them toOne aspect companies do not think of in the early coordinate and gather information on such programstage of a countertrade transaction is the accessibil- from the government’s designated countertrade of-ity of raw materials. One of the easiest ways for a fice. These suppliers/contractors may be requiredcompany to move the countertraded products is to to execute a written document committing them toget a product that it needs, either as a raw material or perform countertrade in relation to a particular Sup-as a finished product. Countertrading also broadens ply Contract.the accessibility to a new source of raw materials thatmay have a better price or quality. At times, broader The common practice is for suppliers to execute asupply base works to the advantage of the company. “Countertrade/Offset Agreement” or a similar agree- ment after being awarded a supply contract whichCountertrading can also be used to establish and contains the countertrade/offset commitment of theimprove the company’s relationship with the for- supplier together with the manner and period of per-eign government. With the exchange of products for formance of such countertrade obligations and otherproducts, the foreign government can have imported related conditions.goods without using its reserve of hard currency. For-eign governments use countertrade as a way to “puff Ormita Government Countertradeup” their image with the citizens. It reflects very wellupon the government if they can negotiate with a Expertisecompany to bring in their expertise and build a plant,resulting in the creation of more jobs. • Development and implementation of policies and frameworks for GovernmentsOther countertrade benefits include expanding the • End to end countertrade project managementglobal market by gaining access to new markets; • Development of client participation in internationalimproving the quality and distribution of a coun- organizational programstry’s products; and providing a method to manage • Tender documentation preparationexchange rate risk, clean up bad debt, repatriate • Tender compliance process analysisblocked funds and solve liquidity problems. • Tender request - countertrade analysis • International product procurement • Assessing and developing countertrade solutions • Advice on discharge models of projects • Technology transfer advice • Expert witnesses services • Business flow process analysis • Commercial contracts management • Price determination Ormita Commerce Network Corporate Profile 2011 31
  • Staff from Ormita Hong Kong32 Ormita Commerce Network Corporate Profile 2011
  • Strategic Import / ExportFinancingBusiness to Government Barter Trade Opportunities and RisksWhen a company decides to export to another coun- Exporting is a means to increase a company’s overalltry, it needs to address the following: market size. This usually occurs when a company• Market opportunities – which can it identify? has reached a certain saturation or limit in its do-• Foreign exchange risk – how can it protect itself? mestic market and it needs to expand. This is why• Import and export financing – does it understand large firms tend to aggressively explore new export the banking systems? possibilities. While it is true that many small firms• Challenges of doing business in a foreign market export, they tend to be more reactive and let oppor- – does it know what it will face? tunities come to them. Many companies, especially small, tend to underestimate the potential of the ex- port market, and are overwhelmed by the intricacies, laws, and regulations surrounding exportation. • Below are common pitfalls of exporting: • Insufficient or inadequate market research and analysis • Lack of understanding of competitive conditions • An absence of product customization for foreign markets • Inferior distribution or marketing program • Ineffective or poor marketing campaigns • Difficulty finding financing • Miscalculation of the amount of expertise needed to enter a foreign market • An underestimation of the differences in a foreign market • A perception that the way of doing things back home is superior and will work abroad • An underestimation of the bureaucracy and red tape involved Ormita Commerce Network Corporate Profile 2011 33
  • Ormita Sweden Posters34 Ormita Commerce Network Corporate Profile 2011
  • CorporateCountertradeBusiness Countertrade Strategy Countertrade means exchanging goods or services which are paid for, in whole or part, with other goodsIn some instances a Government may restrict the con- or services, rather than with money. A monetaryvertibility of its currency to preserve its foreign ex- valuation can however be used in counter trade forchange reserves so they can service international debt accounting purposes. In dealings between sovereigncommitments and purchase crucial imports. This is states, the term bilateral trade is used.problematic for exporters. Non-convertibility impliesthat the exporter may not be able to be paid in his or Countertrade is generally imposed for two reasons:her home currency; and few exporters would desire first, to stimulate exports and second, to alleviate thepayment in a currency that is not convertible. balance of payment deficit resulting from imported goods. It is also encouraged in order to protect orIn other countries, Countertrade is a condition of the stimulate the output of domestic industries (includ-buying organisation importing goods from else- ing agriculture and mineral extraction) and to helpwhere. For example, all foreign companies contracted find new export markets.by Thai state agencies for work costing more than 500million baht ($12.3 million) are required to accept at Countertrade can be categorized as five distinct typesleast 30 percent of their payment in Thai agricultural of trading arrangements: barter, tolling, counter-products. purchase, offset, switch trading, and compensation or buyback.In 1982 Indonesia instituted perhaps the first compre-hensive and legally codified countertrade policy out- The single common feature of the diverse commercialside of Eastern Europe. Since then various develop- arrangements which are referred to collectively bying countries have followed suit, while many others the term countertrade is that a portion of the financ-have at various times exercised such a policy through ing of the payment for sale or for services and licens-administrative discretion on the part of national ing is denominated explicitly in terms of or otherwiseexecutive authorities. In addition, several OECD na- tied to real commodity deliveries. This contrasts withtions have also imposed trade regulations which are the usual presumption that the sale price will beanalogous to countertrade requirements, especially denominated and fully paid in traditional monetaryin regard to trade in agricultural commodities and to terms.sales of aerospace and military equipment. “Countertrade is an alternative means of structur- ing an international sale when conventional means of payment are difficult, costly, or nonexistent and is increasingly viable for transactions involving amounts $USD 5 million and upwards.” Ormita Commerce Network Corporate Profile 2011 35
  • “According to the World Trade Organisation Offset countertrade accounts for approximately 30% of all world trade”. In its “Revision of the agreement on Government Procurement” as at 8 December 2006, the World Countertrade is often viewed as an excellent mecha- Trade Organisation (WTO) defines offsets as follows: nism to gain entry into new markets. “Offsets means any condition or undertaking that en- The party receiving the goods may become a new courages local development or improves a Party’s [a distributor, opening up new international marketing Signatory] balance-of-payment accounts, such as the channels and ultimately expanding the market. Flex- use of domestic content, the licensing of technology, ibility is the key to winning business in a global mar- investment, counter-trade, and any similar actions or ket that is more and more competitive to vendors. requirements”. Barter An offset (also called parallel barter or counterpur- chase) occurs when a government or business must In a barter deal, goods are exchanged for goods - the receive goods often unrelated to its business opera- principal export is paid for with goods (or services) tions as part of an international deal. from the importing market. There are two distinct types: A single contract covers both flows and in the simpler case, no cash is involved. In practice, however, the 1. direct offset: is where the supplier agrees to supply of the principal export is often released only incorporate materials, components or sub-as- when the sale of the bartered goods has generated semblies which are procured from the importing sufficient cash. country. In some large contracts, successful bid- ders may be required to establish local produc- Barter is often the main means of trading in sub- tion. Direct offset has been particularly common sistence economies and in cross border trade in for trade in defence systems and aircraft. undeveloped regions of the world. More developed markets use it in international trade where they have 2. indirect offset: is when the supplier is expected commodities to offer which are accessible to world to purchase goods from the buyer, which are markets. unrelated to the initial product being supplied. These could include raw materials, agricultural Barter may also be introduced into existing contracts commodities, investments in local businesses or to recover debts i.e. when the original payment terms other products. have failed. This means if Party A sells mining equipment to Party B in return for tobacco - they will probably hold some of the mining equipment back until they have made some good profit from the tobacco. Barter is the simplest type of countertrade.36 Ormita Commerce Network Corporate Profile 2011
  • Switch Trading CounterpurchaseA switch trade is used when the products received in In a counterpurchase agreement, a foreign suppliera barter countertrade transaction are of no use to the undertakes to purchase goods and services from theexporter or cannot be converted to cash. The original purchasing country as a condition of securing theexporter may then barter the goods received for other order. There will be a contract for the principal sup-products which may be sold for cash. This chain of ply, paid on normal cash or credit terms - and theretransactions may be repeated a number of times. As a will be a separate agreement to cover the counterpur-result, this expands the number of goods that may be chased goods (also bought on normal cash or creditbought and sold. Switch trading is useful to a country terms).with unique requirements or goods and can openuntapped markets. The counterpurchase agreement can vary from a general declaration of intent, to a binding contractIn one example of switch trading, Poland and Greece specifying the goods and services to be supplied, thehad a counterpurchase agreement that called for Po- markets in which they may be sold, and the penaltiesland to buy the same US dollar value of goods from for non-performance. The value of the counterpur-Greece that it sold to Greece. However, Poland could chase undertaking may vary in value between 10%not find enough Greek goods that it required, so it and 100% (or more) of the original export order.ended up with a dollar denominated counterpur-chase balance in Greece that it was unwilling to use. More specifically: counterpurchase delinks theA switch trader bought the right to 250,000 counter- contract performance timing so that one transactionpurchase dollars from Poland for $225,000 and sold can go forward even though the second transactionthem to a European sultana (grape) merchant for requires more time.$235,000, who used them to purchase sultanas fromGreece. Suppose a US firm sells some products to China. China pays the US firm in dollars, but in exchange,The advantages in switch trading are that it enables the US firm agrees to spend some of its proceedsthe parities to achieve a satisfactory outcome and ex- from the sale on textiles produced by China. Thus,pands export markets. More than 80 countries nowa- although China must draw on its foreign exchangedays regularly use or require countertrade exchanges reserves to pay the US firm, it knows it will receiveand switch trading is an economical method to some of those dollars back because of the counterpur-achieve satisfactory outcomes for all parties involved. chase agreement. In one counterpurchase agreement, Rolls-Royce sold jet parts to Finland. As part of the deal, Rolls-Royce agreed to use some of the proceeds from the sale to purchase Finnish-manufactured TV sets that it would then sell in Great Britain. Ormita Commerce Network Corporate Profile 2011 37
  • Ormita Staff from Australia, India, Italy, Philippines & Sweden38 Ormita Commerce Network Corporate Profile 2011
  • Tolling Examples of Business CountertradeManufacturers may sometimes be unable to service • An Italian company that manufactures powercustomers because they lack access to adequate generating equipment, ABB SAE Sadelmi SpA,financing to buy raw materials. In a tolling deal, a was awarded a 720 million baht ($17.7 million)supplier himself provides the raw material (steel contract by the Electricity Generating Authorityingots for example) and the factory turns it into fin- of Thailand. The contract specified that the com-ished goods (e.g. steel tubes). These are then bought pany had to accept 218 million baht ($5.4 million)by a final customer who pays the supplier in cash of Thai farm products as part of the payment.- throughout the process the supplier retains owner-ship of the material as it is processed by the factory. • Saudi Arabia agreed to buy 10 747 jets from Boe- ing with payment in crude oil, discounted at 10Buyback percent below posted world oil prices.Here, suppliers of capital plant or equipment agree • General Electric won a contract for a $150 millionto be paid by the future output of the investment electric generator project in Romania by agreeingconcerned. For example exporters of equipment for a to market $150 million of Romanian products inchemical plant may be repaid with part of the result- markets to which Romania did not have access.ing output from the factory. This practice is mostcommon with exports of process plant, mining equip- • The Venezuelan government negotiated a con-ment and similar orders. Buyback arrangements tend tract with Caterpillar under which Venezuelato be much longer term and for larger amounts than would trade 350,000 tons of iron ore for Caterpil-counterpurchase or barter deals. lar earthmoving equipment.For example, Occidental Petroleum negotiated a deal • Albania offered such items as spring water, to-with the former Soviet Union under which Occiden- mato juice, and chrome ore in exchange for a $60tal would build several ammonia plants in the Soviet million fertilizer and methanol complex.Union and as partial payment receive ammonia overa 20 - year period. • Philip Morris ships cigarettes to Russia, for which it receives chemicals that can be used to make fertilizer. Philip Morris ships the chemicals to China, and in return, China ships glassware to North America for retail sale by Philip Morris. Ormita Commerce Network Corporate Profile 2011 39
  • Mr Daniel Evans (Ormita) with Mr Tariq Puri, CE O of Pakistan Trade Development Authority (TDAP) in Pakistan40 Ormita Commerce Network Corporate Profile 2011
  • Examples of CorporateCountertrade Avon uses countertrade to release blocked funds; they build plants in various countries and export part of the production in order to generate hard currency.Armand Hammer’s Occidental Petroleum Corp is aclassic example of a company with mutual advantage Avon products made in developing countries arepolicies. exported to other developing countries, rather than to industrial countries. (Unlike most products, 80%The company has been trading and countertrad- of the cost of cosmetics is promotion; thus there ising with socialist countries since the 1950s and has no cost advantage in making cosmetics in low-wageexceeded $50 billion in trade and investment. countries for export to industrial markets).Occidental Petroleum Corp is heavily involved ininfrastructure projects for economic development andmodernization. These projects include agricultureand dairy technology, mining and chemicals, energyand transport, and high technology.The company has been powerful positive forces inthe promotion of East-West trade. The Malaysian government bought 20 diesel electric locomotive from General Electric. Officials of the gov- ernment said that GE will be paid with palm oil be supplied by a plantation company. The company will supply about 200,000 metric tons of palm oil over a period of 30 months. This was GE’s first barter deal for palm oil and palm products although its division GE trading has several other counter trade agree- ments worldwide. No money changed hands, and no third parties were involved. Ormita Commerce Network Corporate Profile 2011 41
  • Coca-Cola Co. operates under a mutual advantage policy through Coca-Cola Trading Co. Colt’s defence divisions do a small amount of coun- tertrade in order to compete with foreign defence In most countries, Coca-Cola goes much further than firms. They usually limit their countertrade obliga- simply selling syrup and taking back local products; tions to sourcing or counterpurchase; they do not buy the company transfers food and beverage technology back or export products related to the original sale. and assists in developing foreign marketing pro- Counter purchases are liquidated through trading grams. companies. Most of these programs are designed to help the countries penetrate the American market. For ex- ample Coca-Cola assisted Yugoslavia and Romania in the production of wine for the American market, advising them on American taste in wines and ap- propriate package designs, as well as making agree- The defense divisions of Northrop Grumman handle ments with American wine distributors. substantial amounts of countertrade. Their counter- trade methods include sourcing, counterpurchase, In Turkey, Coca-Cola set up a joint venture to pro- and subcontracting. Northrop Grumman uses trading duce tomato paste for the American market and other companies to liquidate indirect offset obligations. markets, providing management and technology for the plant. Coca-Cola generally tries to set up a part- nership with customer countries.42 Ormita Commerce Network Corporate Profile 2011
  • Examples of CorporateCountertradeBoeing Commercial Aircraft Co. follows the companyadvantage policy. In the sale of the 747 and othercivilian transport aircraft, they will accept only mini- Monsanto has been actively involved in countertrademal countertrade obligations, and will then liquidate since that time. However much to the surprise ofthese obligations through outside trading companies. many people, Monsanto’s first countertrade transac- tion actually occurred in 1935.In some cases, they will handle direct offset suchas aircraft maintenance facilities. Boeing’s defense The company sold saccharin to a company in north-divisions operate under the mutual advantage policy, ern China. They were unable to pay for the saccharinhowever; as illustrated by programs like the Peace in currency, but what they did have to offer was fro-Shield offset with Saudi Arabia in which Boeing is zen mackerel. Not being a company that was willinghelping the Saudis develop a number of high-tech- to miss a sale, Monsanto took the mackerel in trade.nology projects. From this beginning, Monsanto has grown to a point where it now supports in excess of nearly a billion dollars a year of countertrade.McDonnell Douglas follows the mutual advantagepolicy, while the military follows the companyadvantage policy. Douglas Co. was one of the firstcompanies to market civilian aircraft through coun-tertrade. They emphasize export development inbuyer countries, helping the countries market non- One of the most famous counter-trade deals of alltraditional as well as traditional exports. times has been the Pepsi-Stolichnaya vodka trade in the USSR was only finalised because of the counter-A large project is the offset with China for the sale of trade component to the deal. The Russian side wasMD-82 jetliners. The offset included subcontracting looking for a way to generate hard currency andof components to the Shanghai Aviation International signed the agreement as a way to export vodka fromCorp., manufacture of landing gear doors in China,technical training, and participation of Chinese en- Russia into new markets.gineers in the design of new generation McDonnellDouglas aircraft. Pepsico sold 30,000 cases of Stolichnaya vodka dur- ing the first year of the trade agreement and in 1998The military aircraft company, McDonnell Co., has a Pepsico sold more Stolichnaya vodka than the total ofsmall countertrade staff to fulfil direct offset obliga- such sales in the rest of the world.tions, and liquidates other obligations though a NewYork trading company. Ormita Commerce Network Corporate Profile 2011 43
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  • Ormitas Role in Corporate Countertrade Countertrade types often used by smaller firms are barter and counterpurchase. Such characteristics ofOrmita management professionals can assist Corpo- small firms as greater flexibility and reliance on per-rations in several different ways: sonal relationships provide them with a comparative advantage in countertrade deals.• Sourcing purchasers and suppliers of goods and services on countertrade. While the concept and procedures of countertrade may be simple and straightforward, its implementa-• Ensuring that the recipient organisation can use tion is not. Since countertrade has become a real- the goods and services to be received and that ity in international business, corporations must be they are an economical source compared to alter- proactive and well - positioned to seek out and take native sources. opportunities in countertrade.• Ensuring that if the recipient organisation has no use for these goods or services, that they can be Ormita has well trained purchasing and supply sold on at a cost which not only generates a profit management professionals who are able to help steer but which also covers the administrative cost of organisations through these transactions whilst the countertrade transaction, negotiating a more ensuring that relationships remain ethical and that suitable offer of goods and services from the sell- potential advantages of countertrade are realised. ing organisation if it transpires that those offered are not a viable option.• Assessing product value, quality, delivery and disposal possibilities.• Developing the supply base through counter- trade by working with these suppliers post transaction.• Evaluating and minimising the risks involved with the countertrade transaction or contract.• Exploiting reverse countertrade when sourcing globally.Ormita also has clearing account arrangements whichcan be used to facilitate the exchange of productsover a specified period of time. Ormita Commerce Network Corporate Profile 2011 45
  • Ormita India46 Ormita Commerce Network Corporate Profile 2011
  • Business to BusinessMultilateral Barter TradeMultilateral Barter TradeMultilateral barter is more complex to settle but al- The Ormita Commerce Network system helps re-lows trades that would not be possible with bilateral move the limitations that traditionally were a part ofbarter. any barter transaction, such as the need for an equal dollar value, the mutual need between any two com-Bilateral barter is only possible when there is a coin- panies for each other’s product or service, and thecidence of wants between two businesses. For a bilat- time it can take to coordinate the transaction.eral barter to take place it’s necessary that each partymust be able to supply something the other party With advancements in computer technology, thedemands. This is not always likely to happen. Imag- concept of a bartering system emerged as a means byine you are a bookstore and need wooden shelves for which business-to-business barter could take placedisplays and want to barter books for the same. But between many businesses simultaneously, greatlyit will be quite unlikely for you to find a carpenter or increasing the benefits of trading without cash.a wooden furniture distributor who will like to tradefor your books. Multilateral Barter TradeIn multilateral barter, exchanges do not need to be di- Ormita is essentially a secondary market that allowsrect. Instead three, four, five and six-way transactions people to buy essential goods and services usingare possible. Transactions can also take place at differ- future income instead of existing cash.ent times so no single supplier needs to “swap” theirproduct or service immediately but can do so over a The Ormita business barter solution is designed to:period of time. In these instances the value of the dealis recorded centrally and the process managed by a • Increase sales and market penetrationcommerce network or barter exchange organisation. • Generate new income and working capital di-Nearly every business faces the problem of cash flow rectly from existing capacitymanagement. Issues that contribute to the need forcash flow management include highly competitive • Enhance corporate cash management by allow-markets where constant advertising is a mandate, ing a business to reduce its borrowing and tradeincreasing business expenditures to attract consumer finance risksattention, planned or unplanned downtime, perish-able inventory and the necessity of discounting in- • Offset many of the costs of doing business, trav-ventory. Modern, multilateral barter helps businesses elling and livingalleviate the affect of these problems. • Receive optimum value for goods and services • Improve shareholder value and overall profit- ability Ormita Commerce Network Corporate Profile 2011 47
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  • Record-Keeping in Multilateral Barter This ensures that anyone who has received “barter dollars” is able to spend them on a range of goods orTransactions services, making them as valuable as cash.The Ormita Commerce Network offers a methodwhere the participants do not have to exchangegoods or services directly with one another but caninstead exchange using a barter “unit”.This unit is, in effect, an “IOU” issued by partici-pants.Where one member purchases a product from an-other, they issue this IOU to the seller.The seller can then redeem this IOU with this busi-ness – or any other participant of the barter exchange.When a business joins the system they list the prod-ucts or services they wish to sell and they are provid-ed an overdraft in “barter dollars” which they mayspend with other participants of the exchange.One “barter dollar” is the equivalent to one dollar ofthe national currency.When a business sells a product or accepts repaymentof an outstanding debt they receive a “barter dollar”.This can then be used to buy goods or services fromother participants of the network.Members do not have to buy from the same busi-ness they sell to as Ormita performs the function of“brokering” deals and offsetting transaction valuesbetween participants.When one member is in debt, they are obliged to selltheir goods or services to any member who may be incredit.The sum of all accounts for members of the networkis always zero, even though some will be in creditand some in debt. Ormita Commerce Network Corporate Profile 2011 49
  • Business to Business Multilateral Barter Benefits Brings New Customers Helps Beat Inflation Ormita brings new customers to a business, without Ormita offers a way for businesses to supplement affecting the existing cash sales already being gener- their existing income through the process of trading ated by the company. This may result in more “word- their excess capacity or slow moving inventory for of-mouth” referrals, an increased work-portfolio, things they need. Regardless of the amount of money more recommendations, improved organizational in the economy a business owner can still make skills, higher visibility and more cash sales. acquisitions, create more brand awareness, fund mar- keting campaigns, reward customers, improve staff Pays for Purchases Out of New Sales moral and enhance their lifestyle by trading what they have for what they need. Businesses acquire what they need, or want, and pay for it with additional sales of their products or Generates More Cash Sales services. Ormita lets businesses purchase advertising using Improves Cashflow their own products or services as payment instead of cash. This method reduces the overall cost of adver- There are two ways to increase cash flow – reduce tising to cents on the dollar. By trading in downtime costs and create additional sales. Ormita does both! or excess stock, a business owner can fund new pro- Ormita provides business owners the opportunity to motional campaigns to attract cash-paying customers acquire what they need with what they have and al- through their doors. lows them to preserve their working capital for other needs. Provides Repeat Business Moves Excess Inventory Participants will patronize other members businesses over the competition because the credits they have Every business owner struggles with the dilemma of earned are spent within the “community” of members. what to do with excess products. Traditionally this inventory is discounted, sold at a loss, donated or Recovers Value From Unsold Time and destroyed. Ormita offers a new way to recover full Space market value for these commodities without impact- ing the brand or cash-paying customers. By selling Time and excess production capacity are a priceless “off-market” to Ormita members a business retains non-recoverable, non-recyclable limited commodities. full control over product placement and pricing. Selling these via Ormita provides a mechanism for Ormita matches sellers with buyers from across the businesses to achieve greater wealth. globe – providing a new outlet to move those prod- ucts. Increased Profits Realises Value from Underperforming Sales generated via Ormita are incremental business Assets (over and above existing cash income). Using this new income a business owner can offset existing cash Participants can recover greater value versus dis- overheads and upcoming expenses by purchasing counting or liquidating. using Ormita instead. The net result is more income and cash savings. Saves Cash on Capital Expenditures By funding new purchases with its own products or services, the true cost of acquiring new assets for a business becomes lower.50 Ormita Commerce Network Corporate Profile 2011
  • Reduces Overheads Loan Repayments Cost Less Compared to CashMembers can offset many costs of doing business,travelling and living against new sales. Ormita also Because loans are repaid through a business sellingoffers a way to reduce warehousing, liquidation and its own products or services then the repayment costdisposal costs. is always less than it would be with cash. In the cash economy loans are repaid out of existing cash in-Eliminates Bad Debts come, not new sales.Ormita members pay one another at point of sale, Converts to Cashthereby taking the hassle out of debt collection. Wealso offer a unique method whereby participants can A business owner can convert their unsold time orrecover full value from existing at-risk or overdue products into new items, merchandise or servicesdebts. that can be on-sold or “converted” to cash at a price well above the cost of acquiring them.Helps Enhance Your Lifestyle Provides a Test MarketUsing new sales, a business owner can take holidays,fund new purchases for the house, undertake renova- Ormita offers a risk-free method of trialling newtions, outsource work, create a more ambient envi- products “off-market”, creating a “buzz”, solicitingronment, purchase health and beauty services, buy feedback, generating referrals and testing consumergifts, improve their education and much more. acceptance before a full product launch.Creates Wholesale Buying Power Protects the Local EconomyWhen members purchase using Ormita they are buy- Economies of scale, transfer pricing, and capitalisinging out of the profit margin created from new sales on cheap Third World labour or raw materials can– not their existing cash income. enable larger multinational and interstate manufac- turers and retailers to tip the so-called “level play-Increases a Businesses Asset Base ing field” in their direction, to the detriment of local businesses. Ormita offers a way for businesses toBy adding new customers and additional revenue, trade locally and mobilize the value of their productsa business can increase its overall profitability and and services in a way that is more cost effective thanimprove the health of its balance sheet. Increased purchasing from outside suppliers.income will offset existing purchases, freeing up cashand contributing to an overall net-profit for the busi- Builds Communityness. Participants may also choose to utilize OrmitaCredit to invest in local enterprises, acquire property Members buy and sell with other members, provid-or purchase other assets. ing the opportunity for more networking and sup- port from others within the community.Interest Free Finance Better Credit TermsOrmita offers a revolving, interest-free line of creditto participants. Repayments are funded through the Ormita participants can access interest free loans andsale of the borrowers own goods and services and are repay them with their own products and services.provided based on what a business can sell, not theircurrent turn-over. Ormita Commerce Network Corporate Profile 2011 51
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  • Media BarterAdvertising is an important component in establish- Ormita can provide a range of advertising on a pureing a product, service or company’s credibility with barter basis including :its target market. Advertising is essentially mass-produced salesmanship. If it were possible to speak • Billboardsto all of one’s prospects face-to-face, no one would • Bus Advertisingbother to use advertising. Because most businesses • Exposcannot do this, they need to pay for some form of • Internet Websitesadvertisement. Unfortunately, the cost of advertis- • Magazinesing may be too high for an up-and-coming business. • Metro AdvertisingBarter can be the saviour of such an enterprise. • Newspapers • RadioVirtually all media companies, including newspa- • Sponsorship of Eventspers, radio stations, magazines, TV stations, and • Taxi Advertisingothers, engage in barter at some time or another. Ac- • Televisioncording to the Association of Advertising Agencies,eight out of every ten media corporations engage insome form of excess capacity trading. Ormita can offer Corporations and Governments a range of advertising, suitable to their target market.Instead of paying cash for the advertising they canexchange their own product or service.Ormita acts as the facilitator in these types of trans-actions and lets multi-way barter transactions takeplace.The purchaser does not barter directly with the sellerUtilising this method the buyer can:• Build your brand value• Take customers away from the competition• Expand your audience• Eliminate the need to pay for advertising using cash• Pay for advertising campaigns out of new rev- enues rather than existing cash reserves• Receive immediate payback from advertising expenditures Ormita Commerce Network Corporate Profile 2011 53
  • 54 Ormita Commerce Network Corporate Profile 2011
  • Venture CapitalOrmita offers new enterprises the ability to access An Example Investment Transaction:seed and venture capital in the form of barter creditsmade available from participants within its network. A widget manufacturer has decided that they wish to create an investment portfolio in some start-upThese barter credits can be used to acquire a range of enterprises.products and services including: • The manufacturer has a warehouse full of wid- gets which he has been unable to sell for cash.- Advertising • Working with Ormita, the manufacturer sells- Components 10000 widgets and receives $100,000 in Ormita- Freight Credit.- Internet Access • Using the $100,000 in Ormita Credit, the manu-- Legal Services facturer invests in 3 small businesses.- Office Equipment • Over time these investments each generates a- Office Rent profit in cash, part of which goes to the Widget- Packaging manufacturer.- Printing- Professional Services A business owner can potentially turn its excess ca-- Website Design & Hosting pacity into an investment with possible cash returns- .. and more anywhere from 1 through to thousands of times greater than the value of the initial investment.Using Ormita, an existing (successful), businessowner is able to take their unsold capacity and turn It costs an investor a minimal amount of cash to in-it into something useful – an investment into a new vest – as they are essentially investing their “surplusenterprise. capacity”, by converting those into barter credits in the network and allowing their new investment toThe business owner making an Ormita unit invest- spend those credits on things that they need.ment sells his product or service for Ormita barterdollars, then transfers these to the business he or sheis investing in.The investor receives a small percentage share inthe new business (the actual percentage is privatelynegotiated between both parties).The start-up receives funding and, more importantly,support and guidance from a business owner whohas experience in the local marketplace and who nowhas a vested interested in the success of someoneother than himself. Ormita Commerce Network Corporate Profile 2011 55
  • 56 Ormita Commerce Network Corporate Profile 2011
  • Technical NetworkInfrastructureOrmita operates its own database and applicationserver infrastructure which is telehoused in securedleased premises in the following countries:• Canada• Germany• United Kingdom• United States of AmericaThe company also has separate infrastructure for itstelephone service platform.Our sites are all:• SAS 70 Type I certified (audit report available on request)• Dual-city grid power feeds, plus battery backup with automated transfer switch and on-site diesel generator• FM 200 server-safe fire suppression system with early pre-fire detection mechanism• Automatic temperature and climate control system with humidity and temperature sensors located throughout the facility• Biometric and key card security system including man-traps and rack level locking mechanism• Staffed 24x7 by data center technicians and engi- neers and monitored remotely Ormita Commerce Network Corporate Profile 2011 57
  • 58 Ormita Commerce Network Corporate Profile 2011
  • Performance Management Jim GielarowskiOur Leadership Our CompanyOur People SolidWe are in a business where the quality of our people • Founded inis key to our success. Our greatest single strength • More than 30 years of combined industry experi-continues to be the talent, integrity, enthusiasm and enceloyalty of our people. As we continue to evolve our • Financially sound and backed by individualsbusiness, keeping our people and attracting others with global reputationslike them will be a top priority. We believe the abili- • Experienced shareholder baseties and commitment of our professionals will makeus the preferred provider of professional services for Always therecompanies large and small around the globe. • 24 Hours a day, 7 days a week brokering services • Unique e-commerce marketplaceFlat Management StructureProfessional services firms are typically hierarchi- Global reachcal in structure. By minimizing the layers within our • Direct representation in 21 countriesorganization, we offer talented, creative individuals • Contact points in 35 countriesthe chance to work collegially within a community • Customers in 54 countriesof professionals. With an emphasis on teamworkand mutual respect, our professional community is Advanced technologyfocused on meeting the needs of our clients. • Wholly owned, developed and maintained global telecommunications and IT infrastructureMulti-Cultural Leadership • Online tradingOur corporate culture is defined and fostered by • Instant funds transferindustry leaders with experience from across the • Email alerts of transactionsglobe. As a multi-cultural, multi-faceted company, we • Escrowbenefit from local differences and global opportuni- • Swipe card technologiesties. While each office is rooted in its own culture and • Phone, Internet and TXT bankingcommunity, we share a common vision and mission: • Online statementsto help global business leaders execute their internalinitiatives and achieve targeted results. Sound financial principles • No inflationEntrepreneurial • Zero trade deficitAs a community driven organisation, we are focused • Balanced trade cycleson validating our market value through exceptional • Transactions are focused on meeting a specificfinancial performance. We believe that the needs budgetary, marketing, investment and/or philan-of all stakeholders are best served by fostering an thropy goal.entrepreneurial culture that rewards talent, integrity, • Tailored transactional plans (buying schedules)enthusiasm and loyalty. for each participant Ormita Commerce Network Corporate Profile 2011 59
  • Daniel Evans Board of Directors Company’s corporate governance charter is intended to ‘institutionalise’ good corporate governance and, Responsibility for the Company’s proper corporate generally, to build a culture of best practice both in governance rests with the Board. the Company’s own internal practices and in its deal- ings with others. The following are a tangible dem- The Board’s guiding principle in meeting this re- onstration of the Company’s corporate governance sponsibility is to act honestly, conscientiously and commitment. fairly, in accordance with the law, in the interests of the Company’s shareholders (with a view to building Independent Professional Advice sustainable value for them) and those of employees With the prior approval of the Chairman, which and other stakeholders. may not be unreasonably withheld or delayed, each Director has the right to seek independent legal and The Board’s broad function is to: other professional advice concerning any aspect of 1. chart strategy and set financial targets for the the Company’s operations or undertakings in order Company; to fulfil their duties and responsibilities as directors. 2. monitor the implementation and execution of Any costs incurred are borne by the Company. strategy and performance against financial tar- gets; and Code of ethics and values 3. appoint and oversee the performance of execu- The Company has developed and adopted a detailed tive management and generally to take and fulfil code of ethics and values to guide Directors in the an effective leadership role in relation to the performance of their duties. Company. Code of conduct for transactions in securities Power and authority in certain areas is specifically The Company has developed and adopted a formal reserved to the Board - consistent with its function as code to regulate dealings in securities by Directors outlined above. These areas include: and senior management and their associates. This is designed to ensure fair and transparent trading in ac- 1. oversight of the Company including its control cordance with both the law and best practice. and accountability system; 2. appointment and removal of senior management; 3. reviewing and overseeing systems of risk man- agement and internal compliance and control, codes of ethics and conduct, and legal and statu- tory compliance; 4. monitoring senior management’s performance and implementation of strategy; and 5. approving and monitoring financial and other reporting and the operation of committees. The Company is committed to achieving and main- taining the highest standards of conduct and has undertaken various initiatives, as outlined in this Sec- tion that are designed to achieve this objective. The60 Ormita Commerce Network Corporate Profile 2011
  • Chris CookCompany Charter Principle 7 - Recognise and manage risks The Board, together with management, has con-Principle 1 - Lay solid foundations for management stantly sought to identify, monitor and mitigate risk.and oversight Internal controls are monitored on a continuous basis and, wherever possible improved. The whole issue ofPrinciple 2 - Structure the Board to add value risk management is formalised in the Company’s cor- porate governance charter (which complies with thePrinciple 3 - Promote ethical and responsible decision Guidelines in relation to risk management) and willmaking continue to be kept under regular review. ReviewThe Board has adopted a detailed code of ethics and will take place at both committee level (audit and riskvalues and a detailed code of conduct for transactions management committee), with meetings at least threein securities as referred to above. The purpose of times each year, at Board level.these codes is to guide Directors in the performanceof their duties and to define the circumstances in Principle 8 - Encourage enhanced performancewhich both they and management, and their respec- The corporate governance charter adopted by thetive associates, are permitted to deal in securities. Board requires individual performance review andThe Board will ensure that restrictions on dealings in evaluation to be conducted formally on an annualsecurities are strictly enforced. Both codes have been basis. The Board acknowledges that performance candesigned with a view to ensuring the highest ethical always be enhanced and will continue to seek andand professional standards, as well as compliance consider ways of further enhancing performancewith legal obligations, and therefore compliance with both individually and collectively.the Guidelines. Principle 9 - Remunerate fairly and responsiblyPrinciple 4 - Safeguard integrity in financial reporting Remuneration of Directors and executives is fullyThe audit and risk committee (with its own charter) disclosed in the annual report. The remunerationcomplies with the guidelines. All the members of the committee, which advises and reports to the Board,audit committee are financially literate. is appropriately constituted in that members of the remuneration committee are non-executive directorsPrinciple 5 - Make timely and balanced disclosure with experience in corporate governance best prac-The Company undertakes to ensure timely and bal- tice.anced disclosure in its business dealings. Principle 10 - Recognise the legitimate interests ofPrinciple 6 - Respect the rights of shareholders stakeholdersThe Board recognises the importance of this principle The Board recognises the importance of this prin-and strives to communicate with shareholders both ciple (which it believes represents not only soundregularly and clearly - both by electronic means and ethics but also good business sense and commercialusing more traditional communication methods. practice) and continues to develop and implementShareholders are encouraged to attend and partici- procedures to ensure compliance with legal and otherpate at general meetings. obligations to legitimate stakeholders. The Company and its policies and practices comply with the Guide- lines in this area. Ormita Commerce Network Corporate Profile 2011 61
  • Hans-Werner Alpermann Corporate Citizenship By providing exceptional resources and an inclusive, high-performance work environment, we actively Ormita’s Corporate Social Responsibility practices provide development and networking opportuni- are tightly integrated into our culture and business. ties to challenge and bring out the best in its people We continually review and improve our efforts to and to harness the skills and knowledge required for lessen our impact on the environment, nurture a today’s and tomorrow’s ventures. workplace of diversity and inclusion, conduct re- sponsible business practices and uphold the highest Social Responsibility ethical standard. Ormita believes it has a social responsibility to make Our Board of Directors has adopted governance positive contributions to the environment, our com- principles and codes to ensure that Ormita conducts munity, our licensees, our employees, our members business with the utmost integrity and according to and our investment stakeholders. As part of this we the highest ethical standards. We have also chartered have developed policies and procedures in the fol- an independent Board of Advisors whose purpose is lowing areas: to lead and focus Ormita in advancing our enterprise commitment towards social responsibility. • Community Relations • Corporate Governance Diversity & Inclusion • Diversity Ormita is built around two core assets: its customers • Environmental Sustainability and its people. Experience tells us that the most di- • Human Rights verse companies - companies filled with imagination • Philanthropy and people of all ages, races, and backgrounds - are • Poverty Alleviation the most successful over time. • Supply Chain Sustainability • Treatment of Employees As a global business, our ability to understand, em- brace and operate in a multicultural world - both in We also aim to give a voice to the issue of Social Re- the marketplace and in the workplace - is critical to sponsibility by being transparent in our actions and our sustainability. demonstrating the rationale of our Corporate Social Responsibility initiatives. The ways in which we aim Ormita leverages the creative talent of all employees to do this are through: with a global focus, and establishes and environment that is inclusive of all perspectives, maximizing the • Community engagement potential of all employees. • CSR reporting • Environmental sustainability communications We actively seek to employ and license the highest • Issues management calibre people from all around the world, drawing • Media relationships from all genders, religions, nationalities, races, ages, • Stakeholder mapping and engagement ethnicities and sexual determinations, regardless of disabilities.62 Ormita Commerce Network Corporate Profile 2011
  • Miriam WorsnopStandards of Business Conduct Reporting Concerns about the CompanyThe Company has documented standards of business Any employee, shareholder or third party who has aconduct which sets forth the Companies commitment concern about Ormita’s business conduct or about itsto integrity and ethical behaviour in all aspects of its accounting may direct their concerns to the CEO ofbusiness activity. The standards are applicable to all the company.of the Companies directors, officers, and employeeswho are required to periodically verify their aware- Any unresolved or major concern about Ormita’sness of, and compliance with, the standards. The business conduct or about its accounting, internalBoard of Directors has oversight responsibility for the accounting controls or financial or auditing mattersstandards. may communicate that concern directly to the Chair- man or other member of the Board of Directors.CEO Succession Planning All concerns will be reviewed confidentially by theAt least annually, the Board, together with the CEO, Board of Directors prior to discussing them with theshall review both a succession plan and an emergen- CEO of the company. The status of any investigationscy succession plan. on concerns will be reported to the Board of Directors monthly.The emergency succession plan shall come into forcein the event of the sacking of, the permanent dis- Non-employee directors may request specializedability or death, or in the event of another emergency support, including the retention of outside advisorssituation of the CEO. or counsel with payment by Ormita, to investigate any concern addressed to them only with the priorThe succession plan shall come into force in the event approval of the Board of Directors.of the retirement or timely resignation of the CEO.The emergency succession plan names an individualor individuals to act in an emergency situation andprescribes their powers. The emergency successionplan is reviewed by the Board at least annually andrevised appropriately.If a new CEO is appointed under the succession plan,the Board will convene a special meeting to deter-mine whether to appoint an internal successor or toconduct an external search to locate a successor. Ifnecessary, the Board may also appoint an interimCEO while conducting a search to locate a qualifiedcandidate for CEO. Ormita Commerce Network Corporate Profile 2011 63
  • DirectInternational Call NumbersAustralia GermanyBrisbane +61 7 3149 3152 Margetshoechheim +49 931 3069 99280Head Office Fax +61 7 3077 6896 Head Office Fax +49 931 3069 99289Austria GreeceVienna +43 1 311 7296 Athens +30 211 198 2720 Head Office Fax +30 211 198 0183BelgiumBrussels +32 2 808 9128 Hong Kong National +852 5808 2688 Head Office Fax +852 5808 1360BulgariaSofia +359 2 491 7794 India Mumbai (Fax) +91 22 3916 7341CanadaMontreal +1 514 700 0180Head Office Fax +1 647 955 3798 Indonesia Bali +62 817 345 516ChinaShenzhen +86 755 3301 1789 IrelandHead Office Fax +86 755 3301 1790 Belfast +44 289 505 3012Denmark Italy +45 89 88 11 29 Biella +39 015 952 6193 Head Office Fax +39 015 952 2007EgyptCairo +20 16 777 1 222 Luxembourg National +352 20 33 31 84 Head Office Fax +352 20 33 32 43EnglandLondon +44 203 355 1381Head Office Fax +44 203 332 0787 Mexico Mexico City (Fax) +52 55 4770 7766EstoniaTallinn +372 668 2549 New Zealand Auckland +64 9 974 9159 Head Office Fax +64 4 974 5040FinlandHelsinki +358 9 3158 2401 Norway Oslo +47 21 98 89 79FranceParis +33 1 8288 392964 Ormita Commerce Network Corporate Profile 2011
  • DirectInternational Call NumbersPakistan Country Call DirectLahore +92 42 35754136Lahore (Fax) +92 42 35754135 Argentina +54 11 5239 1330 ext 27009 Bahrain +973 16199023 ext 8899778PolandKatowice +48 32 444 9155 Brazil +55 11 3323 1169 ext 27009Head Office Fax +48 32 630 4123 Chile +56 2 595 2806 ext 27009Portugal Croatia +385 17776313 ext 8899778Lisbon +351 30 880 1735 Cyprus +357 22030605 ext 8899778Scotland Czech Republic +420 246019209 ext 8899778Edinburgh +44 131 516 4667 El Salvador +503 21133826 ext 8899778Slovakia Georgia +995 32473808 ext 8899778Bratislava +42 12 3305 7871 Guatemala +502 2353 3155 ext 27009South Africa Hungary +36 18088337 ext 8899778Johannesburg +27 10 500 9060Head Office Fax +27 86 754 5827 Israel +972 37630481 ext 8899778 Japan +81 345789014 ext 8899778SwedenStockholm +46 8 4083 9907 Latvia +371 67652588 ext 8899778Head Office Fax +46 8 5250 7076 Lithuania +3 70 52059137 ext 8899778Switzerland Malta +356 27780220 ext 8899778Zurich +41 43 508 1008 Mexico +52 5546242486 ext 8899778Turkey Panama +507 202 0400 ext 27009Istanbul +90 542 786 5969 Peru +51 1705 9745 ext 27009USA Slovenia +386 16004920 ext 8899778Pittsburgh +1 412 346 6142Head Office Fax +1 717 921 1180 Spain +34 901667597 ext 8899778WalesCardiff +44 292 000 4520ZambiaLusaka +260 97 789 5034 Ormita Commerce Network Corporate Profile 2011 65
  • Ormita in AustraliaCountry OverviewRegion OECDIncome Category High IncomePopulation 21,874,900GNI Per Capita (USS) 43,770Population of Main Sydney (4,400,000); Melbourne (3,900,000); Brisbane (1,920,000); Perth (1,600,000);Cities (Including Suburbs) Adelaide (1,170,000); Tweed Heads (550,000).Over the last two decades, Australia’s economy has experienced positive reforms that have boosted its economy, and raised itsstandard of living. Australia is today riding the commodity boom, in particular signing massive contracts with China to feed thefastest growing large economy in the world with the raw materials and energy it so badly needs.Australia is a western-style market economy. The services sector is the largest, accounting for 71% of GDP in 2008 (Australia GrossDomestic Product by Sector). Although the agricultural and mining sectors are small, 4.7% of GDP combined, they contribute ap-proximately 65% of exports.Export Partners China 21.81%, Japan 19.19%, South Korea 7.88%, India 7.51%, US 4.95%, UK 4.37%, NZ 4.1% (2009)Export Commodities Coal, iron ore, meat, wool, alumina, wheat, machinery and transport equipmentImport Partners China 17.94%, US 11.26%, Japan 8.36%, Thailand 5.81%, Singapore 5.54%, Germany 5.3% (2009)Imports Machinery and transport equipment, computers and office machines, telecommunication equiment and parts; crude oil and petroleum productsAgriculture Products Wheat, barley, sugarcane, fruits; cattle, sheep, poultryIndustries Mining, industrial and transportation equipment, food processing, chemicals, steelWebsite Country Barter Capabilitieswww.ormita.com.au • Barter Consulting • BuybackEmail • Counter-purchaseinfo@ormita.com.au • Countertrade • Corporate BarterTelephone • Direct Barter TradeAdelaide (08) 7071 0822 • Export AssistanceBrisbane (07) 3149 3152 • Government BarterBunbury (08) 9762 3112 • Mining & ExplorationCanberra (02) 6160 4351 • Offset TradesGold Coast (07) 5667 8362 • Structured Multilateral Barter TransactionsHobart (03) 6281 8235 • Switch TradingMelbourne (03) 8644 2761 • TollingNewcastle (02) 4016 6271Perth (08) 6141 8502 Customer ProfileSunshine Coast (07) 5313 3592 • Fortune 500Sydney (02) 8064 2487 • Government • MultinationalsFaxBrisbane (07) 3077 6896 Preferred Deal Sizes > $250,000 AUD per trade Deal Types • Deals structured on a case-by-case basis66 Ormita Commerce Network Corporate Profile 2011
  • Ormita in CanadaCountry OverviewRegion OECDIncome Category High IncomePopulation 33,739,900GNI Per Capita (USS) 42,170Population of Main Toronto (5,650,000); Montreal (3,750,000); Vancouver (2,350,000); Ottawa (1,180,000);Cities (Including Suburbs) Calgary (1,180,000); Edmonton (1,110,000).Canada’s economy is a mixed economy and the country is one of the most important suppliers of agricultural products. The Cana-dian Prairies are one of the biggest contributors of wheat and other grains. Atlantic Canada has vast deposits of natural gas and oilas well.Although the services segment contributes nearly two thirds of Canada’s GDP, manufacturing, especially the automobile industry,also plays a significant role in the country’s economic growth. The country’s services segment includes retail, communication, realestate, financial services, health and education (both under the government’s purview), entertainment, technology and tourism.The proportion of Canada’s GDP devoted to agriculture has declined significantly, but the nation still remains one of the biggestexporters of agricultural products, including wheat and grains, to the US, Europe and East Asia.Export Partners US 75.02%, UK 3.37%, China 3.09% (2009)Export Commodities equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity, aluminiumImport Partners US 51.1%, China 10.88%, Mexico 4.56% (2009)Imports Machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable consumer goodsAgriculture Products Wheat, barley, oilseed, tobacco, fruits, vegetables; dairy products; forest products; fishIndustries Transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum and natural gasWebsite Country Barter Capabilities Customer Profilewww.ormita.ca • B2B Barter (Retail Barter) • Fortune 500 • Barter Consulting • GovernmentEmail • Buyback • Multinationalsinfo@ormita.ca • Counter-purchase • Countertrade Preferred Deal SizesTelephone • Corporate Barter SME > $2,000 CAD upwardsMontreal (514) 700 0180 • Direct Barter Trade Corporate >$100,000 CAD per tradeQuebec (418) 907 8622 • Export AssistanceToronto (647) 931 6841 • Government Barter Deal TypesVancouver (778) 785 5495 • Media Barter Exchange • Deals structured on a case-by-case • Mining & Exploration basisFax • Offset TradesToronto (514) 800 2773 • Structured Multilateral Barter Transactions • Switch Trading • Tolling Ormita Commerce Network Corporate Profile 2011 67
  • Ormita in ChinaCountry OverviewRegion East Asia & PacificIncome Category Lower Middle IncomePopulation 1,331,460,000GNI Per Capita (USS) 3,620Population of Main Shanghai (17,900,000); Guangzhou (Canton) (15,300,000); Beijing (13,200,000);Cities (Including Suburbs) Shenzhen (9,400,000); Wuhan (9,000,000); Tianjin (8,200,000).In 2010, China’s GDP growth was 10.456 percent, totalling US$ 5,745.13 billion, and is expected to increase 11.79 percent in 2011 toUS$ 6,422.28 Billion. Forecasts for 2015 predict China’s GDP to reach US$ 9,982.08 billion, growing 10-12 percent per year between2010 and 2015.China’s economy is huge and expanding rapidly. In the last 30 years, the rate of Chinese economic growth has been almost miracu-lous, averaging 8 percent growth in Gross Domestic Product (GDP) per annum. The economy has grown more than 10 times duringthat period, with Chinese GDP reaching 3.42 trillion US dollars in 2007. China already has the biggest economy after the UnitedStates and most analysts predict China will become the largest economy in the world this century.Export Partners US 20.03%, Hong Kong 12.03%, Japan 8.32%, South Korea 4.55%, Germany 4.27% (2009)Export Commodities Electrical and other machinery, including data processing equipment, apparel, textiles, iron and steel, optical and medical equipmentImport Partners Japan 12.27%, Hong Kong 10.06%, South Korea 9.04%, US 7.66%, Taiwan 6.84%, Germany 5.54% (2009)Imports Electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicalsAgriculture Products World leader in gross value of agricultural output; rice, wheat, potatoes, corn, peanuts, tea, millet, barley, apples, cotton, oilseed; pork; fishIndustries World leader in gross value of industrial output; mining and ore processing, iron, steel, aluminium, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; tele communications equipment, commercial space launch vehicles, satellitesWebsite Customer Profilewww.ormitachina.com Country Barter Capabilities • SME Business • B2B Barter (Retail Barter) • Fortune 500Email • Barter Consulting • Governmentinfo@ormitachina.com • Buyback • Multinationals • Counter-purchaseTelephone • Countertrade Preferred Deal SizesShenzhen 深圳 (0755) 3301 1789 • Corporate Barter SME > ¥20,000 upwardsShanghai 上海 (021) 6048 6839 • Direct Barter Trade Corporate ¥$100,000 per tradeWuhan 武汉电话 (027) 8589 2399 • Export AssistanceXian 西安电话 180 4922 6616 • Government Barter Deal Types • Media Barter Exchange • B2B ongoingFax • Mining & Exploration • Corporate deals structured on a case-Shenzhen 深圳 (0755) 3301 1790 • Offset Trades by-case basisShanghai 上海 (021) 6106 3629 • Structured Multilateral Barter TransactionsWuhan 武汉电话 (027) 8541 2366 • Switch TradingXian 西安电话 (029) 8826 9620 • Tolling68 Ormita Commerce Network Corporate Profile 2011
  • Ormita in EgyptCountry OverviewRegion Middle East & North AfricaIncome Category Lower Middle IncomePopulation 82,999,393GNI Per Capita (USS) 2,070Population of Main Cairo (14,800,000); Alexandria (4,500,000); Giza (2,900,000).Cities (Including Suburbs)This transcontinental country is bordered by the Gaza Strip, Israel, Sudan and Libya. The country has a diverse terrain, with a longcoastline across the Red Sea and the Mediterranean Sea. A large portion of the Sahara Desert falls within the borders of Egypt.Egypt is the 30th largest country in the world.The economy remains somewhat closed, with the dominant force in the country, the military, dominating many industries. Army-owned companies hold monopolies in sectors as diverse water, olive oil, cement, construction, hotels, and the all important oilindustry.The country has healthy trade relations with African nations, the Middle East countries and EU members. Egypt is a member of theArab League and the WTO. It has significant bilateral relations with several EU nations, and relies on the US as it key security ally,and since the 1979 peace treaty with Israel, it has been able to focus on economic growth, however uneven that growth has been.Export Partners US 7.95%, Italy 7.26%, Spain 6.78%, India 6.69%, Saudi Arabia 5.53%, Syria 5.3%, France 4.39%, South Korea 4.27% (2009)Export Commodities Crude oil and petroleum products, cotton, textiles, metal products, chemicals, processed foodImport Partners US 9.92%, China 9.63%, Germany 6.98%, Italy 6.88%, Turkey 4.94% (2009)Imports Machinery and equipment, foodstuffs, chemicals, wood products, fuelsAgriculture Products Cotton, rice, corn, wheat, beans, fruits, vegetables; cattle, water buffalo, sheep, goatsIndustries Textiles, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, construction, cement, metals, light manufacturesWebsite Country Barter Capabilities Customer Profilewww.ormitaegypt.com • Barter Consulting • Fortune 500 • Buyback • GovernmentEmail • Counter-purchase • Multinationalsinfo@ormitaegypt.com • Countertrade • Corporate Barter Preferred Deal SizesTelephone • Direct Barter Trade > $1,500,000 EGP per tradeCairo (016) 777 1222 • Export Assistance • Government Barter Deal Types • Media Barter Exchange • Deals structured on a case-by-case basis • Mining & Exploration • Offset Trades • Structured Multilateral Barter Transactions • Switch Trading • Tolling Ormita Commerce Network Corporate Profile 2011 69
  • Ormita in Germany Launching 2012Country OverviewRegion OECDIncome Category High IncomePopulation 81,879,976GNI Per Capita (USS) 42,560Population of Main Berlin (4,275,000); Stuttgart (2,650,000); Hamburg (2,575,000); Munich (1,980,000);Cities (Including Suburbs) Frankfurt (1,930,000).Germany is the largest economy in the European Union. It benefits from a large pool of talented work force that has enabledGermany to dominate the vehicles, machinery, chemicals and household equipment vertical across the globe. The service industrysectors employ as much as 29.7% of the total work force.In sectors such as automobiles manufacturing, machinery, precision equipments, heavy automotives, technology, software and soon, the Germany industry sectors are well matured units of production and have carved out their niche in the global market.Ruhr is one of the most important German industrial regions and is one of the busiest in the world. The region includes Dussel-dorf, Dortmand and Duisburg. This region in effect is the largest source for Germany’s iron and steel requirement. Several factorscontributed so that Germany could prosper and dominate in the manufacturing segment. Indisputably, Germany produces some ofthe finest automobiles in the world besides ships and tools.Export Partners France 10.2%, US 6.7%, Netherlands 6.7%, UK 6.6%, Italy 6.3%, Austria 6%, China 4.5%, Switzerland 4.4% (2009 est.)Export Commodities Machinery, vehicles, chemicals, metals and manufactures, foodstuffs, textilesImport Partners Netherlands 8.5%, China 8.2%, France 8.2%, US 5.9%, Italy 5.9%, UK 4.9%, Belgium 4.3%, Austria 4.3%, Switzerland 4.2% (2009 est.)Imports Machinery, vehicles, chemicals, foodstuffs, textiles, metalsAgriculture Products Potatoes, wheat, barley, sugar beets, fruit, cabbages; cattle, pigs, poultryIndustries Among the world’s largest and most technologically advanced producers of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, textiles metals, light manufacturesWebsite Country Barter Capabilities Customer Profilewww.ormita.de • Barter Consulting • Fortune 500 • Buyback • GovernmentEmail • Counter-purchase • Multinationalsinfo@ormita.de • Countertrade • Corporate Barter Preferred Deal SizesTelephone • Direct Barter Trade > €250,000 per tradeMargetshoechheim (0931) 3069 99280 • Export Assistance • Government Barter Deal TypesFacsimile • Media Barter Exchange • Deals structured on a case-by-case basisMargetshoechheim (0931) 3069 99289 • Mining & Exploration • Offset Trades • Structured Multilateral Barter Transactions • Switch Trading • Tolling70 Ormita Commerce Network Corporate Profile 2011
  • Ormita in Greece Launching 2012Country OverviewRegion OECDIncome Category High IncomePopulation 11,283,293GNI Per Capita (USS) 28,630Population of Main Athens (3,750,000); Thessaloniki (800,000); Patras (190,000); Iraklion (150,000);Cities (Including Suburbs) Volos (120,000).Greece is located in the South Eastern Europe and shares its borders with Albania, Bulgaria and Turkey. Greece has a land areaof 131,990 square km, with almost 80% of it being mountainous. The country also has the 10th largest coastline in the world. Thescenic beauty of the place, combined with its legacy of culture and architecture makes Greece a favourite amongst tourists, andtourism a major source of employment and GDP.Greece has a capitalistic economy with a handy contribution of 40% by the public sector. Tourism also makes a significant contribu-tion of 15% to the GDP. The country enjoyed steady growth rate around the Athens Olympic Games; growth, however, was con-stricted owing to the recession and Greece ended up violating the EU’s Growth and Stability Pact budget deficit criteria. The Greeceeconomy is marred by high rate of unemployment, which stood at 8.9% in 2009. The figures seem to be increasing due to tightenedcredit situations and deteriorating credit ratings of the country.Export Partners Germany 11.11%, Italy 11.05%, Cyprus 7.28%, Bulgaria 6.74%, US 4.95%, UK 4.4%, Turkey 4.23% (2009)Export Commodities Food and beverages, manufactured goods, petroleum products, chemicals, textilesImport Partners Germany 13.73%, Italy 12.71%, China 7.08%, France 6.1%, Netherlands 6.02%, South Korea 5.68%, Belgium 4.34%, Spain 4.08% (2009)Imports Machinery, transport equipment, fuels, chemicalsAgriculture Products Wheat, corn, barley, sugar beets, olives, tomatoes, wine, tobacco, potatoes; beef, dairy productsIndustries Tourism, food and tobacco processing, textiles, chemicals, metal products; mining, petroleum Country Barter Capabilities • Government • Barter Consulting • Multinationals • Buyback • Counter-purchase Preferred Deal Sizes • Countertrade > €250,000 per tradeWebsite • Corporate Barterwww.ormita.gr • Direct Barter Trade Deal Types • Export Assistance • Deals structured on a case-by-case basisEmail • Government Barterinfo@ormita.gr • Offset Trades • Structured Multilateral Barter TransactionsTelephone • Switch TradingAthens (211) 198 2720 • TollingFacsimileAthens (211) 770 8575 Customer Profile • Fortune 500 Ormita Commerce Network Corporate Profile 2011 71
  • Ormita in Hong KongCountry OverviewRegion East Asia & PacificIncome Category High IncomePopulation 7,003,700GNI Per Capita (USS) 29,826Population of Main Kowloon (2,000,000); Victoria (980,000); Tuen Mun (490,000); Sha Tin (430,000);Cities (Including Suburbs) Tseung Kwan O (350,000); Kwai Chung (312,000).Hong Kong has a free market economy highly dependent on international trade and finance - the value of goods and services trade,including the sizable share of re-exports, is about four times GDP.The mainland has long been Hong Kong’s largest trading partner, accounting for about half of Hong Kong’s exports by value.Hong Kong’s natural resources are limited, and food and raw materials must be imported. As a result of China’s easing of travelrestrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 22.5 million in 2010, outnum-bering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinesefirms seeking to list abroad. In 2010 mainland Chinese companies constituted about 19% of the firms listed on the Hong Kong StockExchange and accounted for 62% of the Exchange’s market capitalization. During the past decade, as Hong Kong’s manufacturingindustry moved to the mainland, its service industry has grown rapidly and in 2009 accounted for more than 90% of the territory’sGDP.Export Partners China 51.2%, US 11.6%, Japan 4.4% (2009 est.)Export Commodities Electrical machinery and appliances, textiles, apparel, footwear, watches and clocks, toys, plastics, precious stones, printed materialImport Partners China 46.4%, Japan 8.8%, Taiwan 6.5%, Singapore 6.5%, US 5.3% (2009 est.)Imports Raw materials and semi-manufactures, consumer goods, capital goods, foodstuffs, fuel (most is re-exported)Agriculture Products Fresh vegetables; poultry, pork; fishIndustries Textiles, clothing, tourism, banking, shipping, electronics, plastics, toys, watches, clocksWebsite Country Barter Capabilities Customer Profilewww.ormita.hk • B2B Barter (Retail Barter) • SME Business • Barter Consulting • Fortune 500Email • Buyback • Governmentinfo@ormita.hk • Counter-purchase • Multinationals • CountertradeTelephone • Corporate Barter Preferred Deal SizesCentral 5808 2688 • Direct Barter Trade SME > $20,000 HKD upwardsSheung Wan 5808 2722 • Export Assistance Corporate $$100,000 HKD per trade • FranchisingFacsimile • Government Barter Deal TypesCentral 5808 1360 • Media Barter Exchange • B2B ongoing • Mining & Exploration • Corporate deals structured on a case- • Offset Trades by-case basis • Structured Multilateral Barter Transactions • Switch Trading • Tolling • Venture Capital on Barter72 Ormita Commerce Network Corporate Profile 2011
  • Ormita in IndiaCountry OverviewRegion South AsiaIncome Category Lower middle incomePopulation 1,155,347,678GNI Per Capita (USS) 1,170Population of Main Delhi (22,400,000); Mumbai (22,300,000); Calcutta (16,000,000); Chennai (8,050,000);Cities (Including Suburbs) Bangalore (7,600,000); Hyderabad (7,350,000).India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, includingindustrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began inthe early 1990s and has served to accelerate the country’s growth, which has averaged more than 7% per year since 1997.India’s diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern indus-tries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source ofeconomic growth, accounting for more than half of India’s output, with only one-third of its labour force.India has capitalized on its large educated English-speaking population to become a major exporter of information technologyservices and software workers.Export Partners UAE 12.87%, US 12.59%, China 5.59% (2009)Export Commodities Petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparelImport Partners China 10.94%, US 7.16%, Saudi Arabia 5.36%, UAE 5.18%, Australia 5.02%, Germany 4.86%, Singapore 4.02% (2009)Imports Crude oil, precious stones, machinery, fertilizer, iron and steel, chemicalsAgriculture Products Rice, wheat, oilseed, cotton, jute, tea, sugarcane, lentils, onions, potatoes; dairy products, sheep, goats, poultry; fishIndustries Textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software, pharmaceuticalsWebsite Country Barter Capabilities Customer Profilewww.ormita.in • B2B Barter (Retail Barter) • SME Business • Barter Consulting • Fortune 500Email • Buyback • Governmentinfo@ormita.in • Counter-purchase • Multinationals • CountertradeTelephone • Corporate Barter Preferred Deal SizesMumbai 098410 83082 • Direct Barter Trade SME > 1 Lakh Rupees upwards • Export Assistance Corporate > 10 Lakh Rupees per tradeFacsimile • FranchisingMumbai (022) 3916 7341 • Government Barter Deal Types • Media Barter Exchange • B2B ongoing • Mining & Exploration • Corporate deals structured on a case- • Offset Trades by-case basis • Structured Multilateral Barter Transactions • Switch Trading • Tolling • Venture Capital on Barter Ormita Commerce Network Corporate Profile 2011 73
  • Ormita in Indonesia Launching 2012Country OverviewRegion Southeastern Asia, archipelago between the Indian Ocean and the Pacific OceanIncome Category Lower middle incomePopulation 245,613,043GNI Per Capita (USS) 4,394Population of Main Jakarta (capital) 9.121 million; Surabaya 2.509 million; Bandung 2.412 million;Cities (Including Suburbs) Medan 2.131 million; Semarang 1.296 million (2009)Indonesia has a market-based economy in which the government plays a significant role. There are 139 state-owned enterprises,and the government administers prices on several basic goods, including fuel, rice, and electricity.Indonesia’s improving growth prospects and sound macroeconomic policy have many analysts suggesting that it will become thenewest member of the “BRIC” grouping of leading emerging markets. Its solid track record has also resulted in credit upgradesfrom each of the major ratings agencies in the past year, with all three major credit rating agencies rating Indonesia sovereign debtone level below investment grade.Indonesia has a wide range of mineral deposits and production, including bauxite, silver, and tin, copper, nickel, gold, and coal.Although the coal sector was open to foreign investment in the 1990s through coal contracts of work, new investment was closedagain after 2000. A new mining law, passed in December 2008, opened coal to foreign investment again, although it eliminatedthe difference between foreign and domestic ownership structures. Total coal production reached 255 million metric tons in 2010,including exports of 198 million tons.Export Partners Japan 16.3%, China 9.9%, US 9.1%, Singapore 8.7%, South Korea 8%, India 6.3%, Malaysia 5.9% (2010)Export Commodities Oil and gas, electrical appliances, plywood, textiles, rubberImport Partners China 15.1%, Singapore 14.9%, Japan 12.5%, US 6.9%, Malaysia 6.4%, South Korea 5.7%, Thailand 5.5% (2010)Imports Machinery and equipment, chemicals, fuels, foodstuffsAgriculture Products Rice, cassava (tapioca), peanuts, rubber, cocoa, coffee, palm oil, copra; poultry, beef, pork, eggsIndustries Petroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical fertilizers, plywood, rubber, food, tourismWebsite Country Barter Capabilities Customer Profilewww.ormitaindonesia.com • Barter Consulting • Fortune 500 • Buyback • GovernmentEmail • Counter-purchase • Multinationalsinfo@ormitaindonesia.com • Countertrade • Corporate Barter Preferred Deal SizesTelephone • Direct Barter Trade > 90,000,00 IDR per tradeBali (817) 345 516 • Government Barter • Media Barter Exchange Deal TypesFacsimile • Mining & Exploration • Deals structured on a case-by-case basisInternational +883 5100 01192096 • Offset Trades • Structured Multilateral Barter Transactions • Switch Trading • Tolling74 Ormita Commerce Network Corporate Profile 2011
  • Ormita in IranCountry OverviewRegion Middle East & North AfricaIncome Category Upper middle incomePopulation 72,903,921GNI Per Capita (USS) 4,530Population of Main Teheran (12,500,000); Mashhad (2,625,000); Esfahan (2,025,000); Tabriz (1,480,000);Cities (Including Suburbs) Karaj (1,400,000).The economy of Iran is the eighteenth largest in the world by purchasing power parity (PPP) and is a transition economy with alarge public sector and some 50% of the economy centrally planned. Iran’s economy is marked by the heavy dominance of its oilsector which provides a large portion of government revenues.Iran has attained 90% self-sufficiency in essential agricultural products, although rice production fails to meet domestic demandthereby making substantial imports necessary. In 2007 Iran reached self-sufficiency in wheat production and for the first timebecame a net wheat exporter. Major exports in this category include fresh and dried fruits, nuts, animal hides, processed foods, andspices.Iran’s major manufactured products are petrochemicals, steel, and copper products. Other important manufactures includeautomobiles, home and electric appliances, telecommunications equipment, cement and industrial machinery. Iran has graduallybecome the largest operational base of industrial robots in West Asia.Other products include paper, rubber products, agricultural products, processed foods, leather products and pharmaceuticals.Export Partners China 16.58%, Japan 11.9%, India 10.54%, South Korea 7.54%, Turkey 4.36% (2009)Export Commodities Petroleum, chemical and petrochemical products, fruits and nuts, carpetsImport Partners UAE 15.14%, China 13.48%, Germany 9.66%, South Korea 7.16%, Italy 5.27%, Russia 4.81%, India 4.12% (2009)Imports Industrial supplies, capital goods, foodstuffs and other consumer goods, technical servicesAgriculture Products Wheat, rice, other grains, sugar beets, sugar cane, fruits, nuts, cotton; dairy products, wool; caviarIndustries Petroleum, petrochemicals, fertilizers, caustic soda, textiles, cement and other construction materials, food processing (particularly sugar refining and vegetable oil production), ferrous and non-ferrous metal fabrication, armaments Country Barter Capabilities Customer Profile • Barter Consulting • Fortune 500 • Buyback • Government • Counter-purchaseWebsite • Countertrade Preferred Deal Sizeswww.ormitairan.com • Corporate Barter > 500,000,000 IRR per trade • Direct Barter TradeEmail • Export Assistance Deal Typesinfo@ormitairan.com • Government Barter • Deals structured on a case-by-case basis • Media Barter ExchangeTelephone • Mining & ExplorationTehran (21) 88502193-4 • Offset Trades • Structured Multilateral Barter TransactionsFacsimile • Switch TradingTehran (21) 8851 2108 Ormita Commerce Network Corporate Profile 2011 75
  • Ormita in Italy Launched November 2011Country OverviewRegion OECDIncome Category High IncomePopulation 61,016,804GNI Per Capita (USS) 35,150Population of Main Rome (capital) 3.357 million; Milan 2.962 million; Naples 2.27 million; Turin 1.662 million;Cities (Including Suburbs) Palermo 872,000 (2009)The Italian economy has changed dramatically since the end of World War II. From an agriculturally based economy, it has devel-oped into an industrial state ranked as the world’s fifth-largest industrial economy. Italy belongs to the Group of Eight (G-8) indus-trialized nations; it is a member of the European Union and the Organization for Economic Cooperation and Development (OECD).Italy has few natural resources. With much of the land unsuited for farming, it is a net food importer. There are no substantialdeposits of iron, coal, or oil. Proven natural gas reserves, mainly in the Po Valley and offshore Adriatic, have grown in recent yearsand constitute the country’s most important mineral resource. Most raw materials needed for manufacturing and more than 80% ofthe country’s energy sources are imported. Italy’s economic strength is in the processing and the manufacturing of goods, primarilyin small and medium-sized family-owned firms. Its major industries are precision machinery, motor vehicles, chemicals, pharma-ceuticals, electric goods, and fashion and clothing.Italy’s agriculture is typical of the division between the agricultures of the northern and southern countries of the European Union.The northern part of Italy produces primarily grains, sugarbeets, soybeans, meat, and dairy products, while the south specializesin producing fruits, vegetables, olive oil, wine, and durum wheat. Even though much of its mountainous terrain is unsuitable forfarming, Italy has a large work force employed in farming. Most farms are small, with the average farm only seven hectares.Export PartnersExport Commodities Engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metalsImport PartnersImports Engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobaccoAgriculture Products Fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fishIndustries Tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramicsWebsite Country Barter Capabilities Customer Profilewww.ormita.it • B2B Barter (Retail Barter) • SME Business • Barter Consulting • Fortune 500Email • Buyback • Governmentinfo@ormita.it • Counter-purchase • Multinationals • CountertradeTelephone • Corporate Barter Preferred Deal SizesAsti (0141) 170 6132 • Direct Barter Trade SME > € 2,000Biella (015) 952 6193 • Export Assistance Corporate > € 50,000Firenze (055) 747 6871 • FranchisingMilano (02) 8715 8378 • Government BarterRoma (06) 9835 6362 • Media Barter Exchange Deal TypesTorino (011) 043 7942 • Offset Trades • B2B ongoingVicenza (0444) 149 6303 • Structured Multilateral Barter Transactions • Corporate deals structured on a case- • Switch Trading by-case basisFacsimile • TollingBiella (015) 952 2007 • Venture Capital on Barter76 Ormita Commerce Network Corporate Profile 2011
  • Ormita in MexicoCountry OverviewRegion Latin America & CaribbeanIncome Category Upper middle incomePopulation 113,724,226GNI Per Capita (USS) 8,930Population of Main Mexico City (capital) 19.319 million; Guadalajara 4.338 million; Monterrey 3.838 million;Cities (Including Suburbs) Puebla 2.278 million; Tijuana 1.629 million (2009)Mexico’s trade regime is built upon free trade agreements with the United States, Canada, the European Union, and many othercountries.Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and agri-culture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads,telecommunications, electricity generation, natural gas distribution, and airports.Only 11% of Mexico’s land area is arable, of which less than 3% is irrigated. Top revenue-producing crops include corn, tomatoes,sugar cane, dry beans, and avocados. Mexico also generates significant revenue from the production of beef, poultry, pork, anddairy products.In 2009, Mexico was the world’s seventh-largest producer of crude oil, and the second-largest supplier of oil to the U.S. Oil andgas revenues provided more than one-third of all Mexican Government revenues and are the country’s largest source of foreigncurrency. Mexico’s state-owned oil company, Pemex, holds a constitutionally established monopoly for the exploration, production,transportation, and marketing of the nation’s oil. With its primary known oil reserves already in serious decline, Mexico still mustdetermine in the near future how it wants to exploit probable deepwater reserves in order to avoid very difficult economic choices.Export Partners US 73.5%, Canada 7.5% (2010)Export Commodities Manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cottonImport Partners US 60.6%, China 6.6%, South Korea 5.2% (2010)Imports Metalworking machines, steel mill products, agricultural machinery, electrical equipment, car parts for assembly, repair parts for motor vehicles, aircraft, and aircraft partsAgriculture Products Corn, wheat, soybeans, rice, beans, cotton, coffee, fruit, tomatoes; beef, poultry, dairy products; wood productsIndustries Food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism Country Barter Capabilities Customer Profile • B2B Barter (Retail Barter) • SME Business • Barter Consulting • Fortune 500 • Buyback • GovernmentWebsite • Counter-purchase • Multinationalswww.acambio.com • Countertradewww.ormita.com.mx • Corporate Barter Preferred Deal Sizes • Direct Barter Trade SME > 28,000 MXNEmail • Export Assistance Corporate > 140,000 MXNinfo@acambio.com • Franchisinginfo@ormita.com.mx • Government Barter Deal Types • Media Barter Exchange • B2B ongoingTelephone • Mining & Exploration • Corporate deals structured on a case-Mexico City (55) 5293 8500 • Offset Trades by-case basis • Structured Multilateral Barter TransactionsFacsimile • Switch TradingMexico City (55) 5280 5244 • Tolling • Venture Capital on Barter Ormita Commerce Network Corporate Profile 2011 77
  • Ormita in New ZealandCountry OverviewRegion OECDIncome Category High IncomePopulation 4,315,800GNI Per Capita (USS) 27,259Population of Main Auckland (1,200,000); Wellington (400,000); Christchurch (360,000); Hamilton (185,000);Cities (Including Suburbs) Napier (120,000).New Zealand has a market economy which is greatly dependent on international trade, mainly with Australia, the EuropeanUnion, the United States, China and Japan. It has only small manufacturing and high-tech sectors, being strongly focused on tour-ism and primary industries like agriculture (though both sectors are highly profitable). Economic free-market reforms of the lastdecades have removed many barriers to foreign investment, and the World Bank in 2005 praised New Zealand as being the mostbusiness-friendly country in the world, before Singapore.New Zealand’s economy has been helped by strong economic relations with Australia. Australia and New Zealand are partners in“Closer Economic Relations” (CER), which allows for free trade in goods and most servicesInflation remains among the lowest in the industrial world however New Zealand’s heavy dependence on trade leaves its growthprospects vulnerable to economic performance in Asia, Europe, and the United States.The country has substantial hydroelectric power and sizable reserves of natural gas. Leading manufacturing sectors are food pro-cessing, metal fabrication, and wood and paper products.Export Partners Australia 23.36%, US 9.64%, China 9.21%, Japan 7.1%, UK 4.21% (2009)Export Commodities Dairy products, meat, wood and wood products, fish, machineryImport Partners Australia 18.4%, China 15.09%, US 10.45%, Japan 7.24%, Germany 4.16%, Singapore 4.12% (2009)Imports Machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plasticsAgriculture Products Dairy products, lamb and mutton; wheat, barley, potatoes, pulses, fruits, vegetables; wool, beef; fishIndustries Food processing, wood and paper products, textiles, machinery, transportation equipment, banking and insurance, tourism, miningWebsite Country Barter Capabilities Customer Profilewww.ormita.co.nz • Barter Consulting • Fortune 500 • Buyback • GovernmentEmail • Counter-purchase • Multinationalsinfo@ormita.co.nz • Countertrade • Corporate Barter Preferred Deal SizesTelephone • Direct Barter Trade > $10,000 NZDAuckland (09) 974 9159 • Export AssistanceChristchurch (03) 974 9041 • Government Barter Deal TypesDunedin (03) 974 8014 • Mining & Exploration • Corporate deals structured on a case-Wellington (04) 974 9061 • Offset Trades by-case basis • Structured Multilateral Barter Transactions • Switch TradingFacsimile • TollingAuckland (09) 974 9223Wellington (04) 974 504078 Ormita Commerce Network Corporate Profile 2011
  • Ormita in Pakistan Launching March 2012Country OverviewRegion South AsiaIncome Category Lower middle incomePopulation 173,593,383GNI Per Capita (USS) 1,050Population of Main Karachi 13.125 million; Lahore 7.132 million; Faisalabad 2.849 million;Cities (Including Suburbs) Rawalpindi 2.026 million; Islamabad (capital) 832,000 (2009)Pakistan is a developing country and its economy is the world’s 27th largest economy based on its purchasing power.The Pakistan economy faces several long term challenges such as curbing inflation and expanding investment in healthcare, educa-tion, and electricity production.Agriculture is the mainstay of Pakistan’s economy, employing more than 40% of the population. Cotton, wheat, rice, sugarcane,fruits, vegetables, and tobacco are the chief crops, and cattle, sheep, and poultry are raised. There is also a fishing industry. Mostof Pakistan’s agricultural output comes from the Indus basin. The country is now self-sufficient in food, as vast irrigation schemeshave extended farming into arid areas, and fertilizers and new varieties of crops have increased yields.Pakistan’s industrial base is able to supply many of the country’s needs in consumer goods and other products. The country majormanufactures textiles (the biggest earner of foreign exchange), processed foods, pharmaceuticals, construction materials, paperproducts, and fertilizer. Remittances from Pakistanis working abroad constitute the second largest source of foreign exchange. Sincethe mid-1950s electric power output has greatly increased, mainly because of the development of hydroelectric power potential andthe use of thermal power plants.The annual cost of Pakistan’s imports usually exceeds its earnings from exports.Export Partners US 15.8%, Afghanistan 8.1%, UAE 7.9%, China 7.3%, UK 4.3%, Germany 4.2% (2010)Export Commodities Textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugsImport Partners China 17.9%, Saudi Arabia 10.7%, UAE 10.6%, Kuwait 5.5%, US 4.9%, Malaysia 4.8% (2010)Imports Petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, teaAgriculture Products Cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggsIndustries Textiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimpWebsite Country Barter Capabilities Customer Profilewww.ormita.com.pk • B2B Barter (Retail Barter) • SME Business • Barter Consulting • Fortune 500Email • Buyback • Governmentinfo@ormita.com.pk • Counter-purchase • Multinationals • Countertrade • Corporate BarterTelephone • Direct Barter Trade Preferred Deal SizesLahore (423) 575 4136 • Franchising SME > 175,000 PKR • Export Assistance Corporate > 1,750,000 PKRFax • Government BarterLahore (423) 575 4135 • Media Barter Exchange Deal Types • Mining & Exploration • B2B ongoing • Offset Trades • Corporate deals structured on a case- • Structured Multilateral Barter Transactions by-case basis • Switch Trading • Tolling • Venture Capital on Barter Ormita Commerce Network Corporate Profile 2011 79
  • Ormita in PolandCountry OverviewRegion OECDIncome Category High IncomePopulation 38,149,886GNI Per Capita (USS) 12,260Population of Main Warsaw (2,375,000); Lodz (1,060,000); Krakow (760,000); Wroclaw (635,000);Cities (Including Suburbs) Poznan (570,000).The Economy of Poland is a high income economy and is the sixth largest in the EU and one of the fastest growing economies in Central Europe.The privatization of small and medium state-owned companies and a liberal law on establishing new firms has encouraged the development ofthe private business sector, which has been the main drive for Poland’s economic growth.Most of Poland’s imports are capital goods needed for industrial retooling and for manufacturing inputs, rather than imports for consumption.Therefore, a deficit is expected and should even be regarded as positive at this point.Agriculture employs 14.8% of the work force but contributes 3.8% to the gross domestic product (GDP), reflecting relatively low productivity.Poland is a net exporter of processed fruit and vegetables, meat, and dairy products. Processors often rely on imports to supplement domesticsupplies of wheat, feed grains, vegetable oil, and protein meals, which are generally insufficient to meet domestic demand. However, Poland isthe leading EU producer of potatoes and rye and is one of the world’s largest producers of sugar beets and triticale. Poland also is a significantproducer of rapeseed, grains, hogs, and cattle.Export Partners Germany 26.06%, Italy 6.84%, France 6.78%, UK 6.38%, Czech Republic 5.85%, Netherlands 4.14% (2009)Export Commodities Machinery and transport equipment 37.8%, intermediate manufactured goods 23.7%, miscellaneous manufactured goods 17.1%, food and live animals 7.6%Import Partners Germany 28.08%, Russia 8.65%, Italy 6.5%, Netherlands 5.59%, China 5.27%, France 4.6%, Czech Republic 4.05% (2009)Imports Machinery and transport equipment 38%, intermediate manufactured goods 21%, chemicals 15%, minerals, fuels, lubricants, and related materials 9%Agriculture Products Potatoes, fruits, vegetables, wheat; poultry, eggs, pork, dairyIndustries Machine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, textilesWebsite Country Barter Capabilities Customer Profilewww.ormita.pl • B2B Barter (Retail Barter) • SME Business • Barter Consulting • Fortune 500Email • Buyback • Governmentinfo@ormita.pl • Counter-purchase • Multinationals • CountertradeTelephone • Corporate Barter Preferred Deal SizesGdansk (58) 742 0353 • Direct Barter Trade SME > € 2,000Gorzow (95) 782 9509 • Franchising Corporate > € 50,000Kalisz (62) 597 4470 • Export AssistanceKatowice (32) 444 9155 • Government Barter Deal TypesKrakow (12) 383 3392 • Media Barter Exchange • B2B ongoingKrosno (13) 493 2591 • Mining & Exploration • Corporate deals structured on a case-Lodz (42) 278 4579 • Offset Trades by-case basisPoznan (61) 648 9107 • Structured Multilateral Barter TransactionsSzczecin (91) 882 8778 • Switch TradingTarnow (14) 692 2764 • TollingWroclaw (71) 719 9898 • Venture Capital on BarterFaxKatowice (32) 630 412380 Ormita Commerce Network Corporate Profile 2011
  • Ormita in South AfricaCountry OverviewRegion Sub-Saharan AfricaIncome Category Upper middle incomePopulation 49,320,150GNI Per Capita (USS) 5,770Population of Main Johannesburg (5,700,000); Johannesburg (town) (3,200,000); Durban (3,100,000);Cities (Including Suburbs) Cape Town (2,900,000); Pretoria (2,000,000)The economy of South Africa is ranked as an upper-middle income economy by the World Bank, which makes the country one of only four coun-tries in Africa represented in this category (the others being Botswana, Gabon and Mauritius).Mining has been the main driving force behind the history and development of Africa’s most advanced and richest economy. It is the world’slargest producer of chrome, manganese, platinum, vanadium and vermiculite, the second largest producer of ilmenite, palladium, rutile andzirconium. It is also the world’s third largest coal exporter. Mining now accounts for a mere 2.3% of employment and 3% of GDP.South Africa has a large agricultural sector and is a net exporter of farming products. There are almost a thousand agricultural cooperatives andagribusinesses throughout the country, and agricultural exports have constituted 8% of South African total exports for the past five years.Manufacturing is relatively small, providing just 13.3% of jobs and 15% of GDP. Labour costs are low, but not nearly as low as in most otheremerging markets, and the cost of transport, communications and general living is much higher.Export Partners China 10.34%, US 9.19%, Japan 7.59%, Germany 7.01%, UK 5.54%, Switzerland 4.72% (2009)Export Commodities Gold, diamonds, platinum, other metals and minerals, machinery and equipmentImport Partners China 17.21%, Germany 11.24%, US 7.38%, Saudi Arabia 4.87%, Japan 4.67%, Iran 3.95% (2009)Imports Machinery and equipment, chemicals, petroleum products, scientific instruments, foodstuffsAgriculture Products Corn, wheat, sugarcane, fruits, vegetables; beef, poultry, mutton, wool, dairy productsIndustries Mining (world’s largest producer of platinum, gold, chromium), automobile assembly, metalworking, machinery, textiles, iron and steel, chemicals, fertilizer, foodstuffs, commercial ship repair Country Barter Capabilities Customer Profile • Barter Consulting • Fortune 500 • Buyback • Government • Community Currencies • Multinationals • Counter-purchase • Countertrade Preferred Deal SizesWebsite • Corporate Barter > 500,000 ZARwww.ormita.co.za • Direct Barter Tradewww.sane.org.za • Export Assistance • Government Barter Deal Types • Person to Person • Mining & ExplorationEmail • Offset Trades • Deals structured on a case-by-case basisinfo@ormita.co.za • Structured Multilateral Barter Transactionsinfo@sane.org.za • Switch TradingTelephoneJohannesburg (010) 500 9060FacsimileNational (086) 754 5827 Ormita Commerce Network Corporate Profile 2011 81
  • Ormita in Sweden Launching 2012Country OverviewRegion OECDIncome Category High IncomePopulation 9,302,123GNI Per Capita (USS) 48,930Population of Main Stockholm (1,970,000); Göteborg (510,000); Malmö (260,000); Uppsala (130,000);Cities (Including Suburbs) Västerås (110,000).The economy of Sweden is a developed diverse economy, aided by timber, hydropower and iron ore. These constitute the resourcebase of an economy oriented toward foreign trade. The main industries include motor vehicles, telecommunications, pharmaceuti-cals, industrial machines, precision equipments, chemical goods, home goods and appliances, forestry, iron and steel.Sweden is an export-oriented mixed economy featuring a modern distribution system, excellent internal and external communi-cations, and a skilled labour force. Timber, hydropower and iron ore constitute the resource base of an economy heavily orientedtoward foreign trade. Sweden’s engineering sector accounts for 50% of output and exports. Telecommunications, the automotive in-dustry and the pharmaceutical industries are also of great importance. Agriculture accounts for 2 percent of GDP and employment.Export Partners Norway 10.61%, Germany 10.2%, UK 7.45%, Denmark 7.35%, Finland 6.44%, US 6.36%, France 5.05%, Netherlands 4.67% (2009)Export Commodities Machinery 35%, motor vehicles, paper products, pulp and wood, iron and steel products, chemicalsImport Partners Germany 17.9%, Denmark 8.9%, Norway 8.7%, Netherlands 6.17%, UK 5.56%, Finland 5.14%, France 5.06%, China 4.79% (2009)Imports Machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel; foodstuffs, clothingAgriculture Products Barley, wheat, sugar beets; meat, milkIndustries Iron and steel, precision equipment (bearings, radio and telephone parts, armaments), wood pulp and paper products, processed foods, motor vehicles Country Barter Capabilities • B2B Barter (Retail Barter) Customer Profile • Barter Consulting • SME Business • Buyback • Fortune 500 • Counter-purchase • Government • Countertrade • MultinationalsWebsite • Corporate Barterwww.ormita.se • Direct Barter Trade Preferred Deal Sizeswww.swebarter.se • Export Assistance SME > 15 000 SEK • Franchising Corporate > 500 000 SEKEmail • Government Barterkundtjanst@ormita.se • Media Barter Exchangeinfo@swebarter.se • Mining & Exploration Deal Types • Offset Trades • B2B ongoingTelephone • Structured Multilateral Barter Transactions • Corporate deals structured on a case-Norrkoping (011) 475 9991 • Switch Trading by-case basisStockholm (08) 4083 9907 • Tolling • Venture Capital on BarterFaxStockholm (08) 5250 707682 Ormita Commerce Network Corporate Profile 2011
  • Ormita in TurkeyCountry OverviewRegion Eastern Europe & Central AsiaIncome Category Upper middle incomePopulation 74,815,703GNI Per Capita (USS) 8,730Population of Main Istanbul (12,500,000); Ankara (3,925,000); Izmir (2,825,000); Bursa (1,580,000);Cities (Including Suburbs) Adana (1,400,000).Turkey is among the world’s leading producers of agricultural products; textiles; motor vehicles, ships and other transportationequipment; construction materials; consumer electronics and home appliances.Turkey is the world’s largest producer of hazelnut, cherry, fig, apricot, quince and pomegranate; the second largest producer ofwatermelon, cucumber and chickpea; the third largest producer of tomato, eggplant, green pepper, lentil and pistachio; the fourthlargest producer of onion and olive; the fifth largest producer of sugar beet; the sixth largest producer of tobacco, tea and apple; theseventh largest producer of cotton and barley; the eighth largest producer of almond; the ninth largest producer of wheat, rye andgrapefruit, and the tenth largest producer of lemon.Tourism is one of the most dynamic and fastest developing sectors in Turkey. Turkey is the largest TV producer in Europe, account-ing for 21% of all TV sets manufactured and sold on the continent and the country has a large apparel manufacturing base.Livestock products, including meat, milk, wool, and eggs, contributed to more than 1/2 of the value of agricultural output. Fishingis another important part of the economy.Export Partners Germany 9.6%, France 6.1%, UK 5.8%, Italy 5.8%, Iraq 5% (2009 est.)Export Commodities Apparel, foodstuffs, textiles, metal manufactures, transport equipmentImport Partners Russia 14%, Germany 10%, China 9%, US 6.1%, Italy 5.4%, France 5% (2009 est.)Imports Machinery, chemicals, semi-finished goods, fuels, transport equipmentAgriculture Products Tobacco, cotton, grain, olives, sugar beets, hazelnuts, pulse, citrus; livestockIndustries Textiles, food processing, autos, electronics, mining (coal, chromate, copper, boron), steel, petroleum, construction, lumber, paper Country Barter Capabilities Customer Profile • B2B Barter (Retail Barter) • SME Business(Reciprocal Barter Partner) • Barter Consulting • Fortune 500 • Buyback • GovernmentWebsite • Counter-purchase • Multinationalswww.ormitaturkey.com • Countertradewww.turkbarter.com • Corporate Barter Preferred Deal Sizes • Direct Barter Trade SME > 4,000 TRYEmail • Export Assistance Corporate > 50,000 TRYinfo@ormitaturkey.com • Franchisinginfo@turkbarter.com • Government Barter • Media Barter Exchange Deal TypesTelephone • Mining & Exploration • B2B ongoingIstanbul (542) 786 5969 • Offset Trades • Corporate deals structured on a case- • Structured Multilateral Barter Transactions by-case basisFax • Switch TradingIstanbul +883 5100 01192096 • Tolling • Venture Capital on Barter Ormita Commerce Network Corporate Profile 2011 83
  • Ormita in USACountry OverviewRegion OECDIncome Category High incomePopulation 307,007,000GNI Per Capita (USS) 47,240Population of Main New York (21,900,000); Los Angeles (18,000,000); Chicago (9,850,000);Cities (Including Suburbs) Washington (8,250,000); San Francisco (7,300,000); Dallas (6,350,000); Philadelphia (6,000,000); Houston (5,800,000); Atlanta (5,700,000).The economy of the United States is the world’s largest national economy. Retailing is a major sector of the economy of the UnitedStates, indeed, it is often credited with “leading” the economy. Consumer goods are commonly obtained through internationaltrade, but many consumer products are available that are “made in America”.Main industries include petroleum, steel, automobiles, construction machinery, aerospace, agricultural machinery, telecommunica-tions, chemicals, electronics, food processing, consumer goods, lumber, and mining.Export Partners Canada 19.37%, Mexico 12.21%, China 6.58%, Japan 4.84%, UK 4.33%, Germany 4.1% (2009)Export Commodities Agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles, medicines) 15.0%Import Partners China 19.3%, Canada 14.24%, Mexico 11.12%, Japan 6.14%, Germany 4.53% (2009)Imports Agricultural products 4.9%, industrial supplies 32.9% (crude oil 8.2%), capital goods 30.4% (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery), consumer goods 31.8% (automobiles, clothing, medicines, furniture, toys)Agriculture Products Wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; fish; forest productsIndustries Highly diversified, world leading, high-technology innovator, second largest industrial output in world; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining84 Ormita Commerce Network Corporate Profile 2011
  • Website Country Barter Capabilitieswww.ormita.com • B2B Barter (Retail Barter) • Barter ConsultingEmail • Buybackinfo@ormita.com • Counter-purchase • CountertradeTelephone • Corporate BarterAtlanta (678) 298 3210 • Direct Barter TradeAustin (512) 499 2345 • Export AssistanceBaltimore (443) 692 0121 • FranchisingBoise (208) 906 1188 • Media Barter ExchangeBoston (857) 524 5135 • Mining & ExplorationChicago (773) 337 4770 • Offset TradesColumbus (614) 754 5884 • Structured Multilateral Barter TransactionsDallas (214) 461 4818 • Switch TradingDenver (303) 997 1666Detroit (313) 733 2939 Customer ProfileFort Worth (817) 439 6909 • Fortune 500Houston (713) 820 9464 • GovernmentLos Angeles (323) 443 0233 • MultinationalsMemphis (901) 328 7278Nevada (702) 446 0899 Preferred Deal SizesNew York (347) 527 7677 Corporate $10,000Orlando (321) 281 3766Philadelphia (215) 695 3040 Deal TypesPhoenix (602) 427 5620 • Corporate deals structured on a case-by-case basisPittsburgh (412) 360 8450Salt Lake (801) 618 0488San Francisco (415) 358 1808 Reciprocal Trade BrandsSan Jose (408) 538 0208Seattle (206) 691 8191Tampa (813) 200 4844Washington (202) 380 3223FaxLos Angeles (323) 375 2189Pittsburgh (412) 360 8403Seattle (206) 666 2547York (717) 921 1180 Ormita Commerce Network Corporate Profile 2011 85
  • Ormita in UK Launching 2013Country OverviewRegion OECDIncome Category High incomePopulation 61,838,154GNI Per Capita (USS) 41,520Population of Main London (12,300,000); Birmingham (2,550,000); Glasgow (1,420,000); Liverpool (1,330,000);Cities (Including Suburbs) Leeds (2,125,000).The economy of the United Kingdom is the sixth-largest national economy in the world. Agriculture is intensive, highly mecha-nised, and efficient by European standards, producing about 60% of food needs, with less than 1.6% of the labour force. The UKalso retains a significant, though reduced, fishing industry.The aerospace industry of the UK is the second- or third-largest aerospace industry in the world, depending upon the method ofmeasurement. The pharmaceutical industry employs around 67,000 people in the UK and in 2007 contributed £8.4 billion to theUK’s GDP and invested a total of £3.9 billion in research and development.The service sector is the dominant sector of the UK economy, and contributes around 73% of GDP. Tourism is very important to theBritish economy. With over 27 million tourists arriving in 2004, the United Kingdom is ranked as the sixth major tourist destinationin the world.Export Partners US 14.71%, Germany 11.06%, France 8%, Netherlands 7.79%, Ireland 6.89%, Belgium 4.65%, Spain 4% (2009)Export Commodities Manufactured goods, fuels, chemicals; food, beverages, tobaccoImport Partners Germany 12.87%, US 9.74%, China 8.88%, Netherlands 6.94%, France 6.64%, Belgium 4.86%, Norway 4.84%, Ireland 4.01%, Italy 3.99% (2009)Imports Manufactured goods, machinery, fuels; foodstuffsAgriculture Products Cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry; fishIndustries Machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, other consumer goods86 Ormita Commerce Network Corporate Profile 2011
  • Websitewww.ormita.co.uk Country Barter Capabilities • B2B Barter (Retail Barter)Email • Barter Consultinginfo@ormita.co.uk • Buyback • Counter-purchaseTelephone • CountertradeAshburton (0136) 469 8269 • Corporate BarterBirmingham (0121) 314 3597 • Direct Barter TradeBlackburn (0125) 436 8876 • Export AssistanceBlackpool (0125) 380 8318 • FranchisingBradford (0127) 444 9121 • Media Barter ExchangeBrighton (0127) 325 6267 • Mining & ExplorationBristol (0117) 911 7959 • Offset TradesCanterbury (0122) 467 6332 • Structured Multilateral Barter TransactionsCoventry (0247) 699 8602 • Switch TradingHull (0148) 277 8674 • TollingLeeds (0113) 350 5716 • Venture Capital on BarterLeicester (0116) 298 5728Liverpool (0151) 601 3633 Customer ProfileLondon (0203) 355 1381 • SME BusinessLondon (0203) 432 3666 • Fortune 500Manchester (0161) 820 7688 • GovernmentNewcastle (0191) 432 8845 • MultinationalsNorwich (0160) 385 7940Nottingham (0115) 871 5146 Preferred Deal SizesPlymouth (0175) 254 6696 SME £2,000Sheffield (0114) 299 4914 Corporate £20,000Sunderland (0191) 543 8911Swansea (0179) 282 4745 Deal TypesWakefield (0192) 491 0728 • B2B ongoing • Corporate deals structured on a case-by-case basisFaxBirmingham (0121) 400 1248 Pending Licensee NegotiationsLeeds (0113) 892 1048Liverpool (0151) 701 0082London (0203) 051 6863Manchester (0161) 738 1182Plymouth (0175) 292 4058 Ormita Commerce Network Corporate Profile 2011 87
  • Ormita in ZambiaCountry OverviewRegion Sub-Saharan AfricaIncome Category Lower middle incomePopulation 13,881,336GNI Per Capita (USS) 1,070Population of Main Lusaka (capital) 1.413 million (2009)Cities (Including Suburbs)Some 85% of Zambians work as subsistence farmers; commercial agriculture is mostly confined to a small number of large farms.The leading crops are corn, sorghum, rice, peanuts, sunflower seeds, vegetables, flowers, tobacco, cotton, sugarcane, cassava, andcoffee. Cattle, goats, pigs, and poultry are raised. There is a small fishing industry.The mining and refining of copper constitutes by far the largest industry in the country and is concentrated in the cities of the Cop-perbelt. Cobalt, zinc, lead, emeralds, gold, silver, coal, and uranium are also mined. Industries include food and beverage process-ing, construction, horticulture, and the manufacture of chemicals, textiles, and fertilizer. Most of Zambia’s energy is supplied byhydroelectric plants, especially the one at Kariba Dam.Copper, cobalt, electricity, tobacco, flowers, and cotton are the main exports. The principal imports are machinery, transportationequipment, petroleum products, electricity, fertilizer, foodstuffs, and clothing.Export Partners Switzerland 51.3%, China 20.3%, South Africa 9.2%, Democratic Republic of the Congo 4.6% (2010)Export Commodities Copper/cobalt 64%, cobalt, electricity; tobacco, flowers, cottonImport Partners South Africa 35%, Democratic Republic of the Congo 23.5%, Kuwait 8.9%, China 5.6% (2010)Imports Machinery, transportation equipment, petroleum products, electricity, fertilizer, foodstuffs, clothingAgriculture Products Corn, sorghum, rice, peanuts, sunflower seed, vegetables, flowers, tobacco, cotton, sugarcane, cassava (tapioca), coffee; cattle, goats, pigs, poultry, milk, eggs, hidesIndustries Copper mining and processing, construction, foodstuffs, beverages, chemicals, textiles, fertilizer, horticulture Country Barter Capabilities Customer Profile • B2B Barter (Retail Barter) • SME Business • Barter Consulting • Fortune 500 • Buyback • GovernmentWebsite • Counter-purchase • Multinationalswww.ormitazambia.com • Countertradewww.zbex.ws • Corporate Barter Preferred Deal Sizes • Direct Barter Trade SME £2,000Email • Export Assistance Corporate £20,000info@ormitazambia.com • Franchisinginfo@zbex.ws • Government Barter Deal Types • Media Barter Exchange • B2B ongoingTelephone • Mining & Exploration • Corporate deals structured on a case-Lusaka (97) 789 5034 • Offset Trades by-case basis • Structured Multilateral Barter Transactions • Switch Trading • Tolling88 Ormita Commerce Network Corporate Profile 2011