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THEODOR WILLE INTERTRADE

THE EXPEDITION MARCH 2014 ISSUE

Since 1844


Introduction Welcome to the March 2014 issue of the Theodor Wille Intertrade (TWI) newsletter, The Expedition, dedicated to providing you with information about our business and the services we provide to our customers. Published every quarter, this newsletter contains industry news throughout the Government, Military, and Energy sectors TWI supports. In addition, the newsletter highlights company success stories as well as articles covering information technology, compliance, and recent company events. We hope that this newsletter will provide you with a better understanding of who we are and the supply chain solutions we provide worldwide.


Founded in 1844, Theodor Wille Intertrade (TWI) provides expeditionary supply chain solutions to Government & Industrial sector customers worldwide. With offices in the US, Germany, Switzerland, UAE, Turkey, Iraq, Kazakhstan, and Kyrgyzstan, we provide services and expertise across all segments of the supply chain, including logistics and distribution, procurement, program management, information technology, and customer service. To learn more about TWI, please visit www.twipv.com.

About Us


THIS QUARTER’S SUPPLY


Table Of Contents

Topic

Page

USG Shifts Focus to Africa

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Distribution Division Provides Solutions for New Customer Base 4 TWI Manages Supply Chain for New Customer in Iraq 6 Safar Expands Product Offering through New Brands 8 Someone to Trust in Difficult Places TWI Events

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Contact Us 14


INDUSTRY NEWS

In March 2012, President Barack

Obama announced that the US military would begin shifting some of its focus from the Middle East to Asia. Following this, there was an expected increase in both activity and spend by the Department of Defense (DoD) throughout East Asia, specifically South Korea. Less than two years later, there has been another significant shift in focus from the US military. However, rather than Asia, it has been heavily geared toward the continent of Africa. In the past year, the US has begun to increase its presence throughout Africa with the formation of multiple small facilities as well as troop development and additional training exercises. The primary focal point

USG Shifts Focus to Africa of recent expansion in Africa has been witnessed at Camp Lemonnier in Djibouti. North of Somalia, the country has hosted the US military’s only primary facility in Africa for more than a decade. Constructed from an outpost originally designated for the French Foreign Legion, Camp Lemonnier currently provides quarters for 4,000 US military personnel and civilian contractors. Recent construction and operation & maintenance contracts at the base in the past year have been part of a larger $1.2 billion plan to improve the facility over the next 25 years. Pentagon officials have stated that the recent activity in Africa is necessary to combat the spread of al-Qaeda affiliated groups throughout North


Africa and Somalia as well as other guerrillas such as Ugandan warlord Joseph Kony. US Army Brigadier General Wayne Grigsby Jr. said “Our mission here is to enable our East African partners to actually neutralize violent extremists throughout eastern Africa.” He would later go on to add, “It also enables strategic access and freedom of movement. The purpose is to protect the United States and its interests abroad.” With the constant development of US military activity, it’s important that it has a reliable supply partner as it embarks into new, expeditionary environments. Through multiple platforms, TWI continues to provide supply chain solutions to customers throughout Africa. As a part of our CENTCOM Maintenance, Repair,

and Operations (MRO) contract with Defense Logistics Agency (DLA), TWI sources, procures, and delivers construction material from a vast network of global suppliers to DoD customers in Djibouti. To further highlight our support of US operations in Africa, TWI recently began supporting multiple food shipments to US personnel in Niger. At the direction of DLA and in collaboration with the US Air Force, TWI has supported the delivery of a broad range of food products, including fresh fruits and vegetables and specialty items to the West African nation. Through the expertise and support of our professionals, TWI continues to offer innovative solutions for the US military in Africa and beyond. 2


Distribution Division Provides Solutions for New Customer Base Throughout the past several

months, the TWI Distribution Division in Frankfurt has taken significant steps toward further diversifying its business. In February of this year, we established the first commercial customer to receive our multi-point handling services. Before then, our customer base had primarily consisted of clients that were renting out TWI warehouse space and performing the labor on their own. As a part of our diversification process, we are now transitioning from subletting unused space to providing direct services to the Frankfurt market.

SUCCESS STORIES

The first such customer, Fiege Logistics, was lacking a regional hub within the Hessen state of Germany. With our 54,000 square foot warehouse strategically positioned at both the intersection of two major roadways and in close proximity to the Frankfurt airport, TWI was well positioned to offer our suite of solutions. Following a successful facility tour at the Frankfurt warehouse, TWI quickly commenced this business within one week, which is virtually unheard of in the Third Party Logistics market. Over the first four weeks of operations, TWI has averaged more than 700 pallets of throughput. To highlight the high level of customer satisfaction generated, both parties are now jointly planning to increase the material that TWI take on in its regional hub business. On top of the Fiege success story, TWIs services to Hellman Perishable Logistics will also convert to a full-service concept on June 1st. By combining the operational requirements of these two new customers, TWI is able to surpass the customers’ internal results with our cost-effective, efficient, high-quality solutions. By taking on these new customers, we continue to develop our capabilities and competencies while educating the market on the benefits of TWI’s logistics solutions. With a growing pipeline of customers, we anticipate a strong 2014 for our commercial business in Europe. Most importantly, this new customer base will enable us to fulfill our ultimate goal of providing a comprehensive list of Supply Chain Integration solutions for the commercial market in Europe, just as we


do for our Government customers in the Defense Logistics Agency (DLA) and General Services Administration (GSA). On top of this customer success story, another of TWI’s in-house sublease customers is currently converting to a full-service customer, which is scheduled to be established by 1 June. By combining the operational requirements

of these two new customers, TWI is able to surpass the customers’ internal results through our costeffective, faster, and high quality solutions. In support of these new operations, we continue to develop our capabilities and competencies while also educating the market on the benefits of our array of solutions.

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TWI Manages Supply Chain for New Customer in Iraq

On March 10, 2014, TWI

commenced support for a major new customer, Michael Baker International, as their full-line Supply Chain Management services provider for a large project in Iraq. Under this agreement, TWI will provide procurement and logistics support as a service and this marks the fifth such engagement with a major US defense contractor. Not only is this an important added value service for our customer, this engagement also allows TWI to penetrate the Iraq market once again which we believe will lead to additional growth opportunities for our organization.

Procurement is the backbone of TWI’s business and one of our key core competencies. Providing procurement as a service is very different than the traditional general trading model many people and companies are familiar with, a buy and sell model that other procurement organizations use. We see our service offering as higher on the value chain and we’ve recognized increased demand from our customers for this type of support. As a leader in this arena, we’ve developed this service into a strategic product that we can more easily offer to organizations that would like to leverage TWI’s procurement expertise, our corporate


integrity, a compliance culture, and the transparency & visibility that our sophisticated business systems provide to our customers. For our latest agreement, TWI essentially serves as an extension of Baker’s own procurement organization and executes all aspects of the supply chain from planning through to delivery to the end users of products. We provide full visibility into true product and freight costs and are paid through a monthly program management fee. This approach has proven to be very successful and as we have seen thus

far, something that our customers truly appreciate. In the weeks and months to come, procurement services will continue to be an area of focus for TWI and a service that we will continue to refine and offer to our customers. To continue to make this a success and display our effectiveness in providing world-class procurement services to our customers, we will rely on the professionalism and experience of our employees as well as our robust systems infrastructure.

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Safar Expands Product Offering Through New Brands

In an effort to consistently offer our customers the most innovative, high quality oilfield products and solutions, Safar is excited to add several world renowned brands to its extensive product line. We are excited to be providing dependable brands such as EATON Aeroquip, Magnaflux, Southwest Oilfield Products, Shell, and Bulwark. With these new brands comes the quality and reliability that they have provided the oil and gas industry for decades. Earlier this year, we established a distributorship agreement with Southwest Oilfield Products, Inc. of Houston, Texas. Through this

distributorship, we have become the first supplier to provide Southwest’s high quality products throughout our facilities in Iraq, Kazakhstan, and UAE. With over 60 years of experience in global oilfield products and services, Southwest Oilfield Products, Inc. is an industry leader in the design and manufacture of well service systems and pumping solutions. Furthermore, Safar will be opening a new hose business at our facility in Erbil, Iraq. We have partnered with EATON Aeroquip to provide innovative, custom hoses for drilling rigs throughout the region. The EATON Aeroquip brand is recognized


amongst customers for its extreme pressure capability and long life usage characteristics. With over 65 years of expertise in resolving fluid challenges, EATON Aeroquip represents outstanding quality and performance in the hydraulics industry. This month, we will begin operations of the hose production facility that will offer a wide range of hoses, fittings, adapters, and other high quality EATON Aeroquip products. To further highlight our newest additions to our product offering, we have recently begun offering a comprehensive list of Magnaflux products through our facility in Erbil. Alongside our Kazakhstan locations

(Aktobe & Aktau), which already offer the Magnaflux brand, we are excited to add these premium oilfield products to our vast product line in Iraq. Magnaflux provides leading manufacturers and NDT facilities around the glove with the most comprehensive and proven line of liquid penetrant and magnetic particle materials, equipment, and accessories. At Safar, we are committed to providing our customers with reliable, quality oilfield products and solutions that they deserve, day in and day out. Through our extensive brand offering, we accomplish our customers’ requirements across all segments of the drilling and exploration spectrum.

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Someone to Trust in Difficult Places

Whether doing business with

government or commercial customers, TWI understands our reputation for ethical conduct remains our most valued asset. This trustworthy reputation has been built over the past 170 years, first and foremost in the way we interface with our customers, suppliers, subcontractors, partners and even our competition. TWI prides itself on having excellent external relations with both business partners and competition alike. No matter the business culture or environment, or where we operate, we have a responsibility to conduct our business with the highest standards of ethical behavior and compliance. We recognize that even the appearance of impropriety can have damaging affects to our reputation.

In 2014, TWI will continue our growth and diversification efforts in multiple locations around the world. We increasingly work with many suppliers and service providers from a multitude of countries with varied and diverse cultures and value systems. With this growth comes a new set of challenges. To maintain our ethical business practices and culture, TWI has established an easy- to-understand yet strict Code of Business Ethics and Conduct (COBEC) manual and a complementary robust Compliance and Ethics training program. New employees receive introductory Compliance and Ethics training from their Supervisor within 30 days of their employment start date. All employees receive annual refresher training from


our Compliance and Ethics Officer. We also recognize that our COBEC and complementary training programs are “living programs�. These are not static and are updated as frequently as our expanding business base and challenging operating environments necessitate. Every one of our employees has a responsibility to help ensure Suppliers comply with our COBEC, reinforce our strong ethical reputation, and are ready alert management of potential infractions.

To further protect our reputation, TWI requires all of our suppliers and business partners to acknowledge a Supplier version of our COBEC upon establishing a relationship with us. This acknowledgement is renewed on an annual basis. With operating bases in North America, Europe, the Middle East, Central Asia and Africa it is easy to see the challenges that exist in the graphic below.

Corruption Index

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TWI Attends USAFRICOM Industry Day

TWI recently attended the United

States Africa Command (USAFRICOM) Industry Day. Held 29-30 January in Stuttgart, Germany, the event brought together government agencies and industry leaders to discuss current events and issues as well as trends and upcoming contracts throughout the African continent. As the U.S. reductions in Afghanistan continue, both the government and industry are putting more focus on the activities, opportunities, and challenges in the AFRICOM area of responsibility (AOR).

For more information on the USAFRICOM Industry day, visit: http://www.ncsi.com/africom/2014/.


US Consul General Visits Safar in Iraq

EVENTS

Safar Oilfield Services recently hosted US

Consul General Joseph Pennington in Erbil, Iraq. On 4 February, Safar provided the Consul General with an extensive tour and presentation of its showroom, warehouses, and oilfield products. Safar provides a wide range of high quality, US sourced oilfield products to customers throughout Iraq, including impact safety gloves, lifting equipment, spill kits, and space heaters. The visit highlighted the successful and strong relationships that Safar has built with a comprehensive list of US suppliers, manufacturers, and customers.

Georgia Tech Dubai Visit TWI recently hosted several

students from the Georgia Institute of Technology Graduate Engineering Program. Held 25 February at our Dubai Logistics and Procurement Integration Center, the visit provided students the opportunity to discuss business activities, regional trends, and issues with an established organization operating in the Middle East and beyond. With residence programs at various locations across the globe, the Graduate program’s students gain a global perspective through international immersion and extensive industry engagement.

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Contact Us

Frankfurt, Germany

Mersin, Turkey

(P): +49 69 9050688-11

(P): +90 542 4331009

Distribution Division

Philadelphia, PA, USA

Business Development / Program Support (P): +1 267 297 2259

For additional contact information please visit our website at www.twipv.com or contact TWI Communications at Communications@twipv.com.

Zug, Switzerland Corporate Headquarters (P): +41 41 726 73 73

TWI/Safar Logistics Hub


Aktau, Kazakhstan

TWI/Safar Oilfield Services (P): +7 7292 545233

Almaty, Kazakhstan

Central Asia Procurement & Logistics Integration Center (P): +7 777 007 0820

Aktobe, Kazakhstan

TWI/Safar Oilfield Services (P): +7 7132 762504

Bishkek, Kyrgyzstan Food Division FWD

(P): +996-707-117997

Erbil, Iraq

TWI/Safar Oilfield Services (P) : +964 (0) 750 744 98 77

Dubai, U.A.E

TWI Procurement & Logistics Integration Center (P): +971 (4) 423 0922

Abu Dhabi, UAE

TWI/Safar Oilfield Services (P): +971 (2) 4486347

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TWI Newsletter - The Expedition - March 2014 Issue  
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