Introduction

Welcome to the first issue of the Theodor Wille Intertrade (TWI) Newsletter, dedicated to providing you with information about our business and the services that we provide to our customers. Published every quarter, this newsletter will contain industry news throughout the Government, Military, and Energy sectors. In addition, the newsletter will highlight company success stories as well as articles covering information technology, compliance, and recent 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.

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Theodor Wille Intertrade (TWI) creates integrated supply chain solutions around the world for Defense, Government, and Energy sector customers. TWI assembles the resources, capabilities, and technologies of our team and others to integrate and accelerate international supply chains – especially those that are “expeditionary” in nature. Our heritage and an ethos of professionalism and innovation go back to our founding in 1844 and our roots in international trading. Today, as an American-owned firm headquartered in Zug, Switzerland, we are adding to that legacy from our offices in 8 countries throughout Europe, the Middle East, Africa, and Central Asia. To learn more about how TWI’s mission-oriented logisticians and procurement professionals help clients seize efficiencies in their supply networks, please visit www.twipv.com.

About Us

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THIS QUARTER’S SUPPLY

Table Of Contents

Chapter Name

No More Horsing Around 2

Safar Acquisition Expands TWI Service Offering 4

TWI Engages New Customers on DLA Program 6

A Commitment To Compliance 8

TWI Events 10

Contact Us 12

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The ability to understand and manage a supply chain is a critical factor in the success of businesses and nations worldwide. Global supply chains can increase a company’s efficiency, but can also increase its risk. As supply chains expand throughout the globe, their success can be decided by the management of emerging risks. One risk, supply chain integrity, has become a topic of discussion due to the discovery of unlabeled horse meat in European food products. Supply chain integrity is the process of managing an organization’s internal capabilities as well as its partners and suppliers to ensure high assurance of an integrated solution.

INDUSTRY NEWS

In April 2013, traces of horse meat were discovered in a variety of meats that were distributed to and sold by several high-profile companies, including: IKEA, Burger King, Makro, and Tesco PLC. Following this discovery, there were several tests that further revealed both horse and pork meat in beef and chicken products. Following these discoveries, these distributors felt an immediate public backlash. A recent study in June reported that Tesco’s sales had dropped significantly (almost 5%) throughout its stores worldwide. Burger King quickly decided to drop the Irish meat processor that supplied the beef in an

No More Horsing Around

effort to contain the public criticism. In addition, enforcement action continues to be aimed at those who knowingly sought to obtain a profit by selling horse meat as beef. This supply chain blunder was created by the lack of quality control and monitoring throughout the business process.

In the aftermath of the horse meat scandal, there have been calls for closer scrutiny on the integrity of supply chains, such as labeling and descriptions of food across several food businesses including packagers, retailers, and producers. The Food Standards Agency has suggested that various food businesses will be expected to provide reasonable precautions to prevent food fraud by themselves or others within the food chain. Through the collaborative approaches of industry codes of

conduct and due diligence, food businesses are rapidly assessing their processes to guarantee sound supply chains.

As supply chains evolve, it is ever-so-important for companies to better understand the process and environment as well as how each will impact their future. Supply chain integrity is not just providing the consumer with the final product but also about branding values and ethical business behavior. Companies must now establish and support reputable organizational foundations in place of simply cutting costs. Companies that invest in enhancing the integrity of their supply chain will be able to identify and mitigate potential risks within a rapidly changing environment.

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SUCCESS STORIES

As part of our continued growth efforts, TWI recently completed the acquisition of Safar Oilfield Services in January. Safar has over 30 years of experience providing high quality products and services specifically tailored to the needs of the oil & gas and mining industries. With over 400 customers across the Gulf Cooperation Council (GCC) countries, Kazakhstan, and Iraq, the Safar acquisition enables TWI to expand its offerings to a new category of customers in many of the same expeditionary environments where we have operated for many years.

IEG Investment Banking and the law firm of White & Case in Abu Dhabi provided TWI with outstanding advice and assistance throughout a thorough selection and due diligence process. Clyde & Co provided advisory assistance to Safar. The finalized agreement completing the transaction was signed on 21 January 2013.

Safar Acquisition Expands TWI Service Offering

“Safar is a well-run company with strong customer relationships and excellent distribution channels in some of the same geographies where TWI operates,” said Patrick Malcor, TWI CEO. “The addition of Safar’s capabilities is a key element in our growth strategy to expand into new markets and reach new customers with a broader range of products and services.”

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The US Defense Logistics Agency’s (DLA) CENTCOM-MRO contract is a demand-driven, multiple award, tailored logistics support program which provides authorized customers in the US Central Command (CENTCOM) Area of Responsibility with supplies and materials required for constructing and maintaining base camps. Since 2005, TWI’s has been a consistently reliable and responsive prime vendor on this program as it has changed and expanded dramatically. Due to the drawdown of US forces in Afghanistan, there has been a steady decline in MRO orders over the last several months. As orders in Afghanistan continue to decrease, TWI is leading a “reach out

campaign” to identify new customers across the Central Command Area of Responsibility. Recently, TWI personnel visited Kuwait and Bahrain at the end of July to meet with several potential customers and Defense Logistics Agency representatives.

In Kuwait, our team met with several large US defense contractors that have significant facility operations and maintenance contracts for US facilities in Kuwait and could benefit from the use of the MRO program. Our team and the DLA representatives provided an overview of the MRO program, what kinds of materials are available, benefits of using DLA MRO, and how to order through the Defense

TWI Engages New Customers on DLA Program

Logistics Agency. The companies that attended are very interested in the program and have substantial MRO material requirements that could be a good source of sustained demand in the months and years to come. We received the first request for quote from a contractor in Kuwait within a week of our visit which is a great indication of industry’s intent to increase the use of the MRO program.

In Bahrain, the team met with DLA’s regional representative as well as local contractor project management personnel who are currently providing facility operations and maintenance services to a large US facility in Bahrain. Having used the MRO program before in Iraq

and Afghanistan with great success, this defense contractor is excited to use it again in Bahrain following negotiations and approval from their contracting officer.

TWI’s Program Support team, located in suburban Philadelphia, is actively engaged with DLA Troop Support to streamline the evaluation and award process to ensure these new customer orders are processed quickly so our new customers recognize MRO as a responsive and viable source of supply. We are excited to bring these Kuwait and Bahrain customers onto the program to maintain a steady volume of orders and awards and are in the process of coordinating similar visits to other CENTCOM locations.

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TWI prides itself on having a robust/interactive compliance program. During the past several months we have made several significant changes to ensure our program is proactive and relevant. We operate all over the world and in many challenging environments, so a strong commitment to compliance and ethics is paramount to not only survive but to thrive as a company. Changes include:

• Refreshing our Code of Business Ethics & Conduct (COBEC). Making it a more usable document with situational examples, Q&A, and inspiring questions to ask, should you ever find yourself in similar situations.

• Performing an assessment of potential risks to the company across all business segments.

• Encouraging every employee to be involved in the compliance program by submitting bi-weekly compliance moments pertaining to their area of responsibility.

ACommitmentto Compliance

agreement in order to conduct business with TWI), and get feedback regarding the working relationship with TWI. As you can see, we don’t just “check-the-box” regarding compliance at TWI….we live it.

Over the next several months, we all will continue to educate, gather feedback, and enhance our compliance program. We do not want the program to be static, as risks are definitely not static, particularly in our areas of operation. We pride ourselves on being an ethical, responsible company that cares about our clients, our employees, and those we serve. We will always dedicate ourselves to doing what is right and ethical, because without a stellar reputation we have nothing.

• Conducting compliance moments at the beginning of weekly management conference calls.

• Performing face-to-face training with each employee on the COBEC, risks, ethics, anti-corruption, anti-bribery, and case-studies pertaining to the employees’ specific work area.

Our Compliance Coordinator recently traveled to all TWI operating locations to meet with employees, conduct training, and visit with many of our suppliers and service providers. All told, he visited more than 40 suppliers to reinforce our commitment to compliance and ethics, ensure their commitment (every supplier must sign-on to our supplier COBEC

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TWI recently held its Annual Food Show on the 25th and 26th of July at the Ramstein Air Base Officer’s Club in southwestern Germany. The two-day event brought together an impressive group of TWI customers and suppliers to view and sample new products. It also provided an excellent opportunity to discuss the latest issues and trends within the subsistence industry. The food show included over 50 booths that provided samples of new food items and related products to the 200+ TWI customer organizations from across Northern Europe.

A highlight of this year’s two-day event was a customer appreciation dinner held at the Dürkheimer Riesenfass in Bad Dürkheim. Attendees enjoyed a delicious meal after an interesting wine tasting tour in one of Germany’s most beautiful wine making areas.

TWI AnnualFoodShow

TWI recently attended the World Economic Forum Scenarios workshop on the Future of South Caucuses and Central Asia. The event was held on 26 June in Bishkek, Kyrgyzstan. Government and industry leaders were brought together to establish opportunities for development and growth throughout the Central Asia region. Participants engaged in highly interactive and stimulating discussion

EVENTS

on Central Asia’s future role within the global economy.

With 10 years of experience in the region, TWI provides supply chain solutions for a comprehensive list of customers out of its offices in Kazakhstan, Uzbekistan, and Kyrgyzstan. TWI’s participation in the forum exhibits its longstanding commitment to the progression of Central Asia.

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WEFBishkek

Philadelphia, PA, USABusiness Development / Program Support

Zug, SwitzerlandCorporate Headquarters

(P): +41 41 726 73 73 (P): +971 (4) 423 0922

Frankfurt, GermanyFood Division

Dubai, U.A.ETWI Procurement & Logistics Integration Center

Almaty, Kazakhstan CAS Procurement & Logistics Integration Center

(P): +1 267 297 2259

(P): +7 777 007 0820

(P): +7 7292 545233

(P): +996-707-117997

Aktau, KazakhstanTWI/Safar Oilfield Services

Aktobe, KazakhstanTWI/Safar Oilfield Services

(P) : +964 (0) 750 321 2922

(P): +7 7132 762504

(P): +971 (2) 4486347

Erbil, IraqTWI/Safar Oilfield Services

Abu Dhabi, UAETWI/Safar Oilfield Services

Bishkek, KyrgyzstanFood Division FWD

(P): +49 69 9050688-11

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

ContactUs

Philadelphia, PA, USABusiness Development / Program Support

Zug, SwitzerlandCorporate Headquarters

(P): +41 41 726 73 73 (P): +971 (4) 423 0922

Frankfurt, GermanyFood Division

Dubai, U.A.ETWI Procurement & Logistics Integration Center

Almaty, Kazakhstan CAS Procurement & Logistics Integration Center

(P): +1 267 297 2259

(P): +7 777 007 0820

(P): +7 7292 545233

(P): +996-707-117997

Aktau, KazakhstanTWI/Safar Oilfield Services

Aktobe, KazakhstanTWI/Safar Oilfield Services

(P) : +964 (0) 750 321 2922

(P): +7 7132 762504

(P): +971 (2) 4486347

Erbil, IraqTWI/Safar Oilfield Services

Abu Dhabi, UAETWI/Safar Oilfield Services

Bishkek, KyrgyzstanFood Division FWD

(P): +49 69 9050688-11

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