Ormita corporate profile 2011

Corporate Profile

2011Corporate Profile

2011

Standards of Business Conduct

The Company is committed to achieving and main-taining the highest standards of conduct and has undertaken various initiatives designed to achieve this objective.

In 2007 the Company adopted a Corporate Gover-nance Charter which is designed to ‘institutionalise’ good corporate governance and, generally, to build a culture of best practice both in the Company’s own internal practices and in its dealings with others.

The Company also has documented standards of business conduct which sets forth the Companies commitment to integrity and ethical behaviour in all aspects of its business activity. The standards are applicable to all of the Companies directors, officers, and employees who are required to periodically verify their awareness of, and compliance with, the standards.

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.

Unsold appointment time, empty hotel rooms, un-sold venue passes, unfilled advertising space, rapidly depreciating stock, end-of-line items or oversupplied products all represent lost revenue which otherwise will never be recovered.

These unproductive or unsold assets are known as “dead capital” and there is an estimated 9.3 trillion dollars of it world-wide.

It is Ormita’s mission to transform this otherwise lost profit into new income, investments and other

benefits.

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.

IntegrityWe act with courage, consistency and respect to do what is honest, fair and right at all times.

InnovationWe anticipate and respond to challenges and changing needs with creativity, enthusiasm and determination.

ResponsibilityWe are accountable to our members, employees, col-leagues, communities and shareholders for the results of our decisions and actions.

Connttentts

5. Mission Statement7. A Message from the Company Founders9. Industry Milestones10. Certifications13. About Barter21. Barter Industry Statistics22. Press Coverage27. Government Trade33. Strategic Import/Export Financing35. Corporate Countertrade41. Examples of Corporate Countertrade47. Business to Business Barter53. Media Barter55. Venture Capital57. Technical Network Infrastructure59. Performance Management64. International Call Centre Numbers

Ouuur VValuuues

Ormmmitaa Coouuntrry PProffiless

66. Australia67. Canada68. China69. Egypt70. Germany71. Greece72. Hong Kong73. India74. Indonesia75. Iran76. Italy77. Mexico78. New Zealand79. Pakistan80. Poland81. South Africa82. Sweden83. Turkey84. United States of America86. United Kingdom88. Zambia

The Ormmmita Commmerce NNetworkk, its licensees, and subsidiaries operate under the master brand name ‘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.

4 Ormita Commerce Network Corporate Profile 2011

Few things operate at 100% capacityIdle machinery, fallow lands, unsold appointment time, empty hotel rooms, unsold venue passes, un-filled advertising space, rapidly depreciating stock, end-of-line items or oversupplied products all rep-resent lost revenue which otherwise will never be recovered.

It is Ormita’s mission to transform this otherwise lost profit into new income and benefits for business.

Ormita

• targets organisations which have reached a certain level of cash sales but which still have the capacity to expand output

• offers the ability to trade excess capacity or unsold inventory for needed products and services

• acts as a centralised broker for the trading of idle and/or excess capacity by operating a fully bro-kered, global trading floor

• 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 and assets but “poor” in cash

Ormita facilitates cash revenue growth

We do this by:

• 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 mobilises the local economy

We do this by:

• giving the unemployed and under-employed a chance to become involved in the local community, build skills and improve their job prospects

• creating and strengthening local micro business net-works & cottage industry clusters

• providing businesses and organizations a cash-free way to reward interns and volunteers, thereby improving their own performance and levels of involvement from the community

• enhancing the employment linking capacity of the local community

• linking people of different ages, social and economic backgrounds – families, seniors, students, immigrants, people without jobs, established professionals

• providing “in-kind” grants to individuals and charities for education and community building activities

• stimulating the trade of assets within local communities and stemming asset out-flow

• providing a mechanism for asset building

Ormita helps participants buy goodsand servicesat a discount

We do this by:

• converting participants previously lost-profits into already budgeted for cash expenses

Mission Statement

Ormita Commerce Network Corporate Profile 2011 5


A Message from the CompanyFoundersDear Partner

According to studies undertaken by the U.S. Department of Commerce (DOC), GATT and 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 being facilitated 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 trillion dollars 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 a competitive 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 – either expense already budgeted for or investments aimed at company growth – they will succeed.

When we established the Ormita brand we had an objective of creating a business that would be successful, sustainable and create value - not just for shareholders, but for our customers as well. In short: we wanted to establish a business that we could be proud of for its value to our friends, colleagues and society, as well as to our own pockets.

We believe we have succeeded.

Our vision is much more than being successful – it is the combined excellence and commitment to our members, staff and all other stakeholders, and the communities we serve. Above all, we believe Ormita is well placed to deliver significant returns for our customers and partners.

This document sets out our commitment to a future of further achievement, and we commend it to you.

James (Jim) Gielarowski Daniel Evans

19341935193619721987199119921995

19961999

20002001

2002

20032004200520062007

2008200920102011

2012

WIR network founded in Switzerland. First major organised multi-lateral barter network.Monsanto does barter deal with China. Exchanges saccharin for mackerel.East India Trading Company Rupee establishedPepsiCo deal with USSR government exchanging rights for Stolichnaya Vodka for Pepsi products.Salta Province Debt Cancelling Bond, ArgentinaIthaca Hours are created as a way to barter indirectly in Ithica, New York.Tradebart Pty, Ltd. founded and based out of Everard Park, AustraliaSistema Intercambio y Transacciones Locales is initiated in Ecuador.RGT was created Buenos Aires, Argentina, by urban ecologists of PAR (Programa de Autosuficiencia Regional)“Tianguis TLALOC” launched in MexicoBarterTrust 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 investorsBarterNet raises raised $21.3 million in its Series B funding bringing its total capital to more than $26 millionBarterTrust 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.XO Limited launches as independent provider of barter software.XO Limited launches Ozone New Zealand (later to become foundation for Ormita).SANE Community Exchange System (CES) started operating an internet-based LETS in Cape Town, South AfricaOrmita founders provides barter-assisted help to Governments of Seychelles and Maldives after Boxing Day TsunamiLaunch of Ozone Australia Limited.Ormita does deal with Bosnia-Herzegovina.Portions of XO Limited proprietary systems sold as the founders exit the company to manage OrmitaOrmita joins former XO software users together into a single platform and companyOrmita officially launches under its own brand in the USAOrmita launches in Canada.Ormita launches in India.Ormita launches in China.Ormita launches in Italy.Ormita scheduled to launch in Pakistan, Sweden and Zambia

Industry Timeline


Our Certifications

Ormita Concert


According to the World Trade Organization 15% of world trade is conducted on a non-cash basis. This includes direct trade, gift-culture, counter-trade/reciprocal trade (often found between governments and multi-national organizations) and non-government currencies (regional currencies, gift vouchers, loyalty points, air-points and 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 (2010 World Bank figures).


Barter is the process of exchanging products, goods or services, for other products, goods or services. It is a simple method of transaction where little to no money is used. In today’s world, it exists parallel to the mon-etary system.

Historically barter operated instead of money as the primary method of exchange. This also occurred throughout history in times of monetary crisis, when a currency was unstable, or devalued by hyperinflation or recession. Nowadays, however, barter is a major force in the economic world.

Today barter has become a much more systematic and structured system of commerce. Modern barter and trade has advanced to become an effective method of escalating sales, saving cash and recovering value from excess or perishable production capacity.

A trade or barter exchange provides a trading platform and bookkeeping system for its members or clients to provide barter opportunities.

The member companies buy and sell products and services to each other using an internal currency known as barter or trade dollars. Participants in barter earn trade credits (instead of cash) when they sell and these credits are deposited into their account. They then have the ability to purchase goods and services from other participants using their trade credits.

As this is multilateral trade, sellers are not obligated to purchase from who they sold to, and vice-versa.

Multilateral barter, in the form of privately issued commodity backed accounting records, has been in existence for thousands of years and is thought to date back to ancient Mesopotamia and Egypt.

“Tax payments [by farmers] became standardised in terms of quantities of wheat or barley grain. These grain standards formed the basis for all the early money of account units, such as the mina, shekel, lira, and pound.

Money, then originated not as a cost minimizing me-dium of exchange, but as the unit of account in which debts to the palace (tax liabilities) were measured. As the area over which taxes were imposed increased, palaces found it useful to farm out tax collections to private farmers. The first evidence of lending at inter-est comes from the practice of payment of taxes by the tax farmers, who then took bondservants and charged interest on the village debts. ... The clay shubati (re-ceived) tablets record these and other debts. Each tab-let indicated a quantity of grain, the word shubati, the name of the person by whom received, the date, and the seal of the receiver. The tablets were either stored in temples where they would be safe from tampering, or sealed in cases, which would have to be broken to get to the tablet. Unlike the tablets stored in temples, the case tablets could and did circulate. A debt could be cancelled and taxes paid by delivering a tablet recording another’s debt whereupon the case which recorded the cancelled debt could be broken to verify the debt terms.

This was general practice for several thousand years …. In other words, taxes, debts, and price lists existed for thousands of years, with clay tablets circulating before anyone had the bright idea of reducing trans-actions costs by creating money through stamping precious metals to coins. ... From the earliest times, markets operated on the basis of credits and debits, and even the smallest sales to consumers took place on credit, which could be carried on the books of the 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.

About Barter


Brick Tea Money: Used as a method ofconducting barter transactions in Ancient China


Historic Barter

Traditional barter was the precursor of both fiat and commodity backed money and involved the direct exchange of goods or services for one another.

Aside from the obvious issue of fair trade (ensuring that the items being swapped both have the same value), barter has other problems such timing re-straints and quantity restrictions. If you wish to trade corn for fish you can only do this if corn is in season. If you wish to trade a tonne of corn for a tonne of fish you have to ensure that you need a tonne of fish before you carry out the trade.

Commodity Barter “Money”

If the trade takes place now when corn is not readily available, or you are unable to use all of the fish now, then an “IOU” or intermediary resource is needed. This intermediate commodity can then be used to buy fish when they are needed. Thus the use of money makes all commodities become more liquid. When such an intermediary is introduced this becomes the basis of a commodity currency – money backed by a multilateral barter agreement between all participants.

Examples of early currency of a similar type appear 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 ofgunpowder, 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.

--------------------------------------------1(2003)., Money and Banking, Economics & You. McGraw Hill. (Chapter 11), p.1.

Since payment by commodity generally provides a useful good, commodity money is similar to barter, but is distinguishable from it in having a single recognized unit of exchange.2

Each of these items was desirable in their own right and was inter-tradable with other items which the holder of the currency might desire to acquire.

One of the (many) stumbling blocks of this type of money is that not everyone in the community may desire the resource.

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 of lumber; 3 acres of land; and, 8 machines. A first ques-tion that might pop into your mind is: “How in the world do I add these assets into one another?”

It is immediately clear that for financial statements to be meaningful, amounts of dissimilar items must be stated in similar units. Money becomes the obvious choice of “similar units”.

By converting different kinds of objects into monetary amounts, they can be dealt with arithmetically. This is called the “money-measurement concept” and is a fundamental principle of accounting.

--------------------------------------------2Radford, R. A. (Nov 1945), “The Economic Organisation of a P.O.W Camp”, Econometrica 12 (48): 189-201


Ancient Gold Coins


Representative Money

The system of commodity money in many instances evolved into a system of representative money. This occurred because banks would issue a paper receipt to their depositors, indicating that the receipt was redeemable for whatever precious goods were being stored (usually gold or silver money). It didn’t take long before the receipts were traded as money, because everyone knew they were “as good as gold”.

In this system, paper currency and non-precious coinage had very little intrinsic value, but achieved significant market value by being backed by a promise to redeem it a valuable asset which was universally desired. This is the origin of the term “British Pound” for instance; it was a unit of money backed by a Tower pound of sterling silver, hence the currency Pound Sterling. For much of the nineteenth and twentieth centuries, many currencies were based on representa-tive money through use of the gold standard.

Representative paper money made possible the prac-tice of fractional reserve banking, in which bankers would print receipts above and beyond the amount of actual precious metal on deposit.

In this system, the material that constitutes the money itself had very little intrinsic value, but none the less such money achieves significant market value through being scarce as an artefact.

Fiat Money

Fiat money refers to money that is not backed by re-serves of another commodity. The money itself is given value by government fiat (Latin for “let it be done”) or decree, enforcing legal tender laws, previously known as “forced tender”, whereby debtors are legally relieved of the debt if they (offer to) pay it off in the government’s money.

By law the refusal of “legal tender” money in favour of some other form of payment is illegal, and has at times in history (Rome under Diocletian, and post-rev-olutionary France during the collapse of the assignats) invoked the death penalty.

Governments through history have often switched to forms of fiat money in times of need such as war, sometimes by suspending the service they provided of exchanging their money for gold, and other times by simply printing the money that they needed (e.g. Germany of World War 1).

When money is produced more rapidly than economic growth, the supply overtakes economic value. Therefore, the excess money eventually dilutes the market value of all money issued. This is called Inflation.

In 1971 the US finally switched to fiat money indefi-nitely. At this point in time many of the economically developed countries’ currencies were fixed to the US dollar (Bretton Woods Conference), and so this single step meant that much of the western world’s curren-cies became fiat money based.

As stated by leaders of the OECD as presented in their 2001 “Forum for the Future“ conference held in Luxembourg, today, trust has shifted from a belief in the convertible value of money “toward the critical acceptance of the institutional capacity of control-ling the flows of money.”3

--------------------------------------------3OECD. (2002)., The Future of Money. Organisation for Economic Co-operation and Development, OECD Publications Service. p.44.


Bilateral (historical) barter

Multilateral (electronic) barter


Barter can be bilateral or multilateral, and usually exists parallel to monetarysystems in most developed countries.

Bilateral barter is simple exchange (one-on-one) of a product or service for another product or service.

Multilateral barter is a more complex exchange, where members do not exchange directly. Ormita is a multi-lateral barter exchange network.

Although companies do bartering one on one, many deals are conducted via membership networks in bar-ter companies, trade associations or barter networks; where technology and tracking software have modern-ized the centuries-old system.

Advantages of using multilateral barter or barter exchange commerce over a direct or bilateral barter are many.

• 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.

• Nearly every business faces the problem of cash flow management at one time or another. Issues that contribute to the need for cash flow manage-ment include highly competitive markets where constant advertising is a mandate, increasing business expenditures to attract consumer atten-tion, planned or unplanned downtime, perishable inventory and the necessity of discounting inven-tory. Modern, multilateral barter helps businesses alleviate these problems.

• Barter networks manage a virtual value unit (“bar-ter dollars,” for example) of exchange, very similar to a monetary system.

• With advancements in computer technology, the concept of a bartering system emerged as a means by which business-to-business barter could take place between many businesses simultaneously, greatly increasing the benefits of trading without cash.


Ormita helps to remove the limi-tations that traditionally were a part of any barter transaction, such as the need for an equal dollar value, the mutual need between any two companies for each other’s product or service, and the time it can take to coordi-nate the transaction.


According to the US Department of Commerce “Barter in one form or another, accounts for nearly 30 percent of the world’s total business”4.

The National Association of Trade Exchanges, The International Journal of Hospitality Management and the Michigan State University together claim that ap-proximately 70% of all Fortune 500 companies engage in barter5.

According to the Association of Advertising Agencies, “eight out of ten corporations engage in barter”6.

Approximately 65% of all New York Stock Exchange-listed companies engage in excess capacity / barter trade7.

In 1994, on the 60th anniversary of the Swiss WIR ex-cess capacity trade system, annual volume in reached 2.5 billion Swiss Francs (over $2 billion US dollars) and boasted 80,000 members nationally8. The WIR also enjoys a membership base of nearly 20% of all Swiss 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.

--------------------------------------------(2004)., Department of Commerce Fact Sheet. USA DOC. Schmidgall, R.S., Damitio, J.W. (1999)., Bartering activities of the Fortune 500 and hospitality lodging fi rms., Michigan State Univer-sity, International Journal of Hospitality ManagementAmerican Association of Advertising Agencies. (2003).(2004)., Annual Report, National Association of Trade ExchangesLietaer, B & Belgin, S. (2004)., Of Human Wealth: Beyond Greed & Scarcity. Galley Edition.Valentini, E. (2003)., Switzerland’s WIR System and Barter World wide, International Trade Currency SystemStodder, J. (2007).,Residual Barter Networks and Macro-Economic Stability. Rensselaer Polytechnic Institute at Hartford, Hartford CT.

According to the International Reciprocal Trade Associa-tion approximately 400,000 businesses engage in formalised barter in the United States11.

A consensus of expert opinions has put the percentage of world trade linked to barter transactions at between 20% to 25% percent12.

In North America 80,000 small businesses used barter for the first time in 2007 and over 800,000 American companies bartered at least once 13.

Barter accounted for 31% of export operations from the Ukraine in 1995 with highly liquid goods accounting for between 60 and 70% of all goods exported by barter14.

Companies that actively barter can do as much as 5-10% of their business annually through trades15.

“Swapping excess goods for needed supplies, advertising space and improvements canconserve cash-and generate it.”16

--------------------------------------------(2004)., Fact Sheet, International Reciprocal Trade Association.Okaroafo, S., (1989) “Determinants of LDC Mandated Counter-trade,” International Management Review, (Winter), 1624.Frisk, S., (2007). The American Economics AssociationKuchma, L., (1998). Press Release. Embassy of the Ukraine to the United States of America. (14 Oct).Schact, J. (2004)., “The Business of Bartering”, Illinois Meetings & Events (Fall Edition).(2001) Kiplinger’s Personal Finance Magazine, (June 31).

Barter Industry Statistics


4

5

6

7

8

9

10

11

12

13

14

15

16

Ormita India Staff



Trade Procurement and Representation

To help meet the ever increasing challenge of being able to stabilise and spur economic growth in a period of globalisation, Ormita assists Governments and Wholly Owned State Enterprises to leverage barter trade for large-scale import transactions.

Although historically, many do not prefer to do busi-ness through barter trade, trade experts have con-cluded that world economic conditions have made countertrade a necessary financing mechanism for countries that wish to fast-track investment inflow, technology growth and skills training and the en-hancement of trade and export capacities to other countries.

Government to Government and Government to Busi-ness barter trade is a mechanism to:

• Channel back of recoup foreign exchange spent for an importation;

• Gain access to advanced technology and training, new foreign investments, research and develop-ment and related support for national develop-ment and modernization programs;

• 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 nations require countertrade in their capital-intensive foreign procurement programs in order to fuel industrializa-tion and sustain national development programs.

Ormita represents many Government entities whoseprocurement supply processes involve some form of barter and countertrade.

Strategic Direction of Government Policy

The international government involvement in barter transac-tions (countertrades, offsets etc) represents a multi-trillion dollar annual market. This market is, however, highly frag-mented with many prime contractors who have negotiated directly with governments having billions of dollars of un-filled offset obligations outstanding every year. These prime contractors sometimes face difficulties in finding projects to satisfy their offset liabilities due to complicated or badly adapted offset guidelines of their trading partners.

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 basis without providing official guidelines. Experience has shown however limited success due to reduced bargaining power and the lack of strategic planning.

Countries with coherent and well adapted offset guidelines seem to harvest the greatest benefits out of offsets. Here, differences can be seen in the types of transactions that are eligible for offsets, in the differing multipliers and eligible industries (military, civilian), in the structure of the Offset approval authorities and the processes as well as in the credit release procedures.

Government Trade

Figure: Various forms of countertrade



Developing Government Barter Frame-work Agreements

Ormita assists in developing frameworks for barter transactions whilst ensuring a level playing field in the market for all participants. The most common approach in developing a Government to business barter trade agreement is for the parties to set out their general agreement to a counter-trade deal in a framework agreement. This agreement includes as many details of the intended operation as practicable.

When this method is used, the parties will normally adopt 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 agreement includes a provision that brings about the conditions stipulated on the suppliers to conclude counter-pur-chase contracts, since it is only when they have both bought and sold the counter-purchase goods that disposable cash will be obtained.

1. The original supply/works contract and the framework agreement are concluded together. The framework agreement will usually be set out in a separate document, although it may be included in the original export or other supply/works contract.

2. The framework counter-trade agreement, the original supply/ works contract and the counter supply/ works contract are concluded at the same time. In this case, the framework agreement will contain only those provisions that link the other two contracts.


Examples of Government Barter

• The Philippine Government is embarking on a program to carry out a barter system for its coffee products with the products of lucrative markets. This will help them promote the exports of their coffee and in turn get defense equipments from former U.S.S.R. member nations like Romania.

• In 2009 Saudi Arabia agreed with Pakistan to swap oil for food.

• Israel barters Calcium Carbonate, Talc and Dolo-mite and other raw materials with the USA, UK and many European Union countries.

• The Thai Government recently held talks with a major Chinese bus manufacturer, Jing Long, regarding a barter transaction which will see Thai fruits traded for Chinese-made locomotives, pas-senger buses, and armoured cars. Hence, China gets fruits for their buses.

• Malaysia is currently supplying India with palm oil (from six state-owned companies) worth $121 million in exchange for a contract awarded to the Indian Railway Construction International Company. They will lay 31.5 km. of tracks in the southern Malaysian state of Johor.

• 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.

• A $4 billion resort and casino in Vietnam is be-ing built under a barter arrangement where the government will provide the land in return for eventual ownership of the assets.

• In order to avoid fluctuating foreign currency prices and the need for a stable reference pricing framework, Iran barters oil for food with several countries.

• In the face of the embargo imposed by the US on the petroleum products of Iran, the country is actively bartering with the Philippines for ba-nanas, mangosteen and durians and coordinates with fruit growers in various regions to meet the ongoing needs of the country.

• Indonesian state-owned military hardware pro-ducer PT Pindad barters armoured vehicles for cars with the Government of Malaysia as well as a range of other essential equipment with neigh-bouring China, Thailand and Australia.

• The Taiwan cabinet’s Agriculture Council has approved the Indonesian-proposed scheme to supply crisis-hit, cash-strapped Indonesia with low-priced rice in exchange for oil.


Government Procurement

When working with foreign governments, corpora-tions should always have in mind “what is in it for the Government.” What do they want that will allow a company to export products into their country?

One aspect companies do not think of in the early stage of a countertrade transaction is the accessibil-ity of raw materials. One of the easiest ways for a company to move the countertraded products is to get a product that it needs, either as a raw material or as a finished product. Countertrading also broadens the accessibility to a new source of raw materials that may have a better price or quality. At times, broader supply base works to the advantage of the company.

Countertrading can also be used to establish and improve the company’s relationship with the for-eign government. With the exchange of products for products, the foreign government can have imported goods without using its reserve of hard currency. For-eign governments use countertrade as a way to “puff up” their image with the citizens. It reflects very well upon the government if they can negotiate with a company to bring in their expertise and build a plant, resulting in the creation of more jobs.

Other countertrade benefits include expanding the global market by gaining access to new markets; improving the quality and distribution of a coun-try’s products; and providing a method to manage exchange rate risk, clean up bad debt, repatriate blocked funds and solve liquidity problems.

Adoption of Barter

In countries that have adopted countertrade as a part of a government procurement policy, foreign suppliers and contractors are usually advised of the countertrade requirements during the bidding stage or supply negotiations stage to enable them to coordinate and gather information on such program from the government’s designated countertrade of-fice. These suppliers/contractors may be required to execute a written document committing them to perform countertrade in relation to a particular Sup-ply Contract.

The common practice is for suppliers to execute a “Countertrade/Offset Agreement” or a similar agree-ment after being awarded a supply contract which contains the countertrade/offset commitment of the supplier together with the manner and period of per-formance of such countertrade obligations and other related conditions.

Ormita Government Countertrade Expertise

• Development and implementation of policies and frameworks for Governments • End to end countertrade project management• Development of client participation in international organizational programs• Tender documentation preparation • Tender compliance process analysis• 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

Staff from Ormita Hong Kong



Business to Government Barter Trade

When a company decides to export to another coun-try, it needs to address the following:• Market opportunities – which can it identify?• Foreign exchange risk – how can it protect itself?• Import and export financing – does it understand

the banking systems?• Challenges of doing business in a foreign market

– does it know what it will face?

Opportunities and Risks

Exporting is a means to increase a company’s overall market size. This usually occurs when a company has reached a certain saturation or limit in its do-mestic market and it needs to expand. This is why large firms tend to aggressively explore new export possibilities. While it is true that many small firms export, they tend to be more reactive and let oppor-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

Strategic Import / Export Financing

Ormita Sweden Posters



Business Countertrade Strategy

In some instances a Government may restrict the con-vertibility of its currency to preserve its foreign ex-change reserves so they can service international debt commitments and purchase crucial imports. This is problematic for exporters. Non-convertibility implies that the exporter may not be able to be paid in his or her home currency; and few exporters would desire payment in a currency that is not convertible.

In other countries, Countertrade is a condition of the buying organisation importing goods from else-where. For example, all foreign companies contracted by Thai state agencies for work costing more than 500 million baht ($12.3 million) are required to accept at least 30 percent of their payment in Thai agricultural products.

In 1982 Indonesia instituted perhaps the first compre-hensive and legally codified countertrade policy out-side of Eastern Europe. Since then various develop-ing countries have followed suit, while many others have at various times exercised such a policy through administrative discretion on the part of national executive authorities. In addition, several OECD na-tions have also imposed trade regulations which are analogous to countertrade requirements, especially in regard to trade in agricultural commodities and to 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.”

Countertrade means exchanging goods or services which are paid for, in whole or part, with other goods or services, rather than with money. A monetary valuation can however be used in counter trade for accounting purposes. In dealings between sovereign states, the term bilateral trade is used.

Countertrade is generally imposed for two reasons: first, to stimulate exports and second, to alleviate the balance of payment deficit resulting from imported goods. It is also encouraged in order to protect or stimulate the output of domestic industries (includ-ing agriculture and mineral extraction) and to help find new export markets.

Countertrade can be categorized as five distinct types of trading arrangements: barter, tolling, counter-purchase, offset, switch trading, and compensation or buyback.

The single common feature of the diverse commercial arrangements which are referred to collectively by the term countertrade is that a portion of the financ-ing of the payment for sale or for services and licens-ing is denominated explicitly in terms of or otherwise tied to real commodity deliveries. This contrasts with the usual presumption that the sale price will be denominated and fully paid in traditional monetary terms.

Corporate Countertrade

“According to the World Trade Organisation countertrade accounts for approximately 30% of all

world trade”.

Countertrade is often viewed as an excellent mecha-nism to gain entry into new markets.

The party receiving the goods may become a new distributor, opening up new international marketing channels and ultimately expanding the market. Flex-ibility is the key to winning business in a global mar-ket that is more and more competitive to vendors.

Barter

In a barter deal, goods are exchanged for goods - the principal export is paid for with goods (or services) from the importing market.

A single contract covers both flows and in the simpler case, no cash is involved. In practice, however, the supply of the principal export is often released only when the sale of the bartered goods has generated sufficient cash.

Barter is often the main means of trading in sub-sistence economies and in cross border trade in undeveloped regions of the world. More developed markets use it in international trade where they have commodities to offer which are accessible to world markets.

Barter may also be introduced into existing contracts to recover debts i.e. when the original payment terms 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.

Offset

In its “Revision of the agreement on Government Procurement” as at 8 December 2006, the World Trade Organisation (WTO) defines offsets as follows:

“Offsets means any condition or undertaking that en-courages local development or improves a Party’s [a Signatory] balance-of-payment accounts, such as the use of domestic content, the licensing of technology, investment, counter-trade, and any similar actions or requirements”.

An offset (also called parallel barter or counterpur-chase) occurs when a government or business must receive goods often unrelated to its business opera-tions as part of an international deal.

There are two distinct types:

1. direct offset: is where the supplier agrees to incorporate materials, components or sub-as-semblies which are procured from the importing country. In some large contracts, successful bid-ders may be required to establish local produc-tion. Direct offset has been particularly common for trade in defence systems and aircraft.

2. indirect offset: is when the supplier is expected to purchase goods from the buyer, which are unrelated to the initial product being supplied. These could include raw materials, agricultural commodities, investments in local businesses or other products.



Switch Trading

A switch trade is used when the products received in a barter countertrade transaction are of no use to the exporter or cannot be converted to cash. The original exporter may then barter the goods received for other products which may be sold for cash. This chain of transactions may be repeated a number of times. As a result, this expands the number of goods that may be bought and sold. Switch trading is useful to a country with unique requirements or goods and can open untapped markets.

In one example of switch trading, Poland and Greece had a counterpurchase agreement that called for Po-land to buy the same US dollar value of goods from Greece that it sold to Greece. However, Poland could not find enough Greek goods that it required, so it ended up with a dollar denominated counterpur-chase balance in Greece that it was unwilling to use. A switch trader bought the right to 250,000 counter-purchase dollars from Poland for $225,000 and sold them to a European sultana (grape) merchant for $235,000, who used them to purchase sultanas from Greece.

The advantages in switch trading are that it enables the parities to achieve a satisfactory outcome and ex-pands export markets. More than 80 countries nowa-days regularly use or require countertrade exchanges and switch trading is an economical method to achieve satisfactory outcomes for all parties involved.

Counterpurchase

In a counterpurchase agreement, a foreign supplier undertakes to purchase goods and services from the purchasing country as a condition of securing the order. There will be a contract for the principal sup-ply, paid on normal cash or credit terms - and there will be a separate agreement to cover the counterpur-chased goods (also bought on normal cash or credit terms).

The counterpurchase agreement can vary from a general declaration of intent, to a binding contract specifying the goods and services to be supplied, the markets in which they may be sold, and the penalties for non-performance. The value of the counterpur-chase undertaking may vary in value between 10% and 100% (or more) of the original export order.

More specifically: counterpurchase delinks the contract performance timing so that one transaction can go forward even though the second transaction requires more time.

Suppose a US firm sells some products to China. China pays the US firm in dollars, but in exchange, the US firm agrees to spend some of its proceeds from the sale on textiles produced by China. Thus, although China must draw on its foreign exchange reserves to pay the US firm, it knows it will receive some of those dollars back because of the counterpur-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 Staff from Australia, India, Italy, Philippines & Sweden



Tolling

Manufacturers may sometimes be unable to service customers because they lack access to adequate financing to buy raw materials. In a tolling deal, a supplier himself provides the raw material (steel ingots for example) and the factory turns it into fin-ished goods (e.g. steel tubes). These are then bought by a final customer who pays the supplier in cash - throughout the process the supplier retains owner-ship of the material as it is processed by the factory.

Buyback

Here, suppliers of capital plant or equipment agree to be paid by the future output of the investment concerned. For example exporters of equipment for a chemical plant may be repaid with part of the result-ing output from the factory. This practice is most common with exports of process plant, mining equip-ment and similar orders. Buyback arrangements tend to be much longer term and for larger amounts than counterpurchase or barter deals.

For example, Occidental Petroleum negotiated a deal with the former Soviet Union under which Occiden-tal would build several ammonia plants in the Soviet Union and as partial payment receive ammonia over a 20 - year period.

Examples of Business Countertrade

• An Italian company that manufactures power generating equipment, ABB SAE Sadelmi SpA, was awarded a 720 million baht ($17.7 million) contract by the Electricity Generating Authority of Thailand. The contract specified that the com-pany had to accept 218 million baht ($5.4 million) of Thai farm products as part of the payment.

• Saudi Arabia agreed to buy 10 747 jets from Boe-ing with payment in crude oil, discounted at 10 percent below posted world oil prices.

• General Electric won a contract for a $150 million electric generator project in Romania by agreeing to market $150 million of Romanian products in markets to which Romania did not have access.

• The Venezuelan government negotiated a con-tract with Caterpillar under which Venezuela would trade 350,000 tons of iron ore for Caterpil-lar earthmoving equipment.

• Albania offered such items as spring water, to-mato juice, and chrome ore in exchange for a $60 million fertilizer and methanol complex.

• 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.


Mr Daniel Evans (Ormita) with Mr Tariq Puri, CE O of Pakistan Trade Development Authority (TDAP) in Pakistan


Armand Hammer’s Occidental Petroleum Corp is a classic example of a company with mutual advantage policies.

The company has been trading and countertrad-ing with socialist countries since the 1950s and has exceeded $50 billion in trade and investment.

Occidental Petroleum Corp is heavily involved in infrastructure projects for economic development and modernization. These projects include agriculture and dairy technology, mining and chemicals, energy and transport, and high technology.

The company has been powerful positive forces in the promotion of East-West trade.

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.

Avon products made in developing countries are exported to other developing countries, rather than to industrial countries. (Unlike most products, 80% of the cost of cosmetics is promotion; thus there is no cost advantage in making cosmetics in low-wage countries for export to industrial markets).

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.

Examples of Corporate Countertrade


Coca-Cola Co. operates under a mutual advantage policy through Coca-Cola Trading Co.

In most countries, Coca-Cola goes much further than simply selling syrup and taking back local products; the company transfers food and beverage technology and assists in developing foreign marketing pro-grams.

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-ments with American wine distributors.

In Turkey, Coca-Cola set up a joint venture to pro-duce tomato paste for the American market and other markets, providing management and technology for the plant. Coca-Cola generally tries to set up a part-nership with customer countries.

Colt’s defence divisions do a small amount of coun-tertrade in order to compete with foreign defence firms. They usually limit their countertrade obliga-tions to sourcing or counterpurchase; they do not buy back or export products related to the original sale. Counter purchases are liquidated through trading companies.

The defense divisions of Northrop Grumman handle substantial amounts of countertrade. Their counter-trade methods include sourcing, counterpurchase, and subcontracting. Northrop Grumman uses trading companies to liquidate indirect offset obligations.



Boeing Commercial Aircraft Co. follows the company advantage policy. In the sale of the 747 and other civilian transport aircraft, they will accept only mini-mal countertrade obligations, and will then liquidate these obligations through outside trading companies.

In some cases, they will handle direct offset such as aircraft maintenance facilities. Boeing’s defense divisions operate under the mutual advantage policy, however; as illustrated by programs like the Peace Shield offset with Saudi Arabia in which Boeing is helping the Saudis develop a number of high-tech-nology projects.

McDonnell Douglas follows the mutual advantage policy, while the military follows the company advantage policy. Douglas Co. was one of the first companies to market civilian aircraft through coun-tertrade. They emphasize export development in buyer countries, helping the countries market non-traditional as well as traditional exports.

A large project is the offset with China for the sale of MD-82 jetliners. The offset included subcontracting of components to the Shanghai Aviation International Corp., manufacture of landing gear doors in China, technical training, and participation of Chinese en-gineers in the design of new generation McDonnell Douglas aircraft.

The military aircraft company, McDonnell Co., has a small countertrade staff to fulfil direct offset obliga-tions, and liquidates other obligations though a New York trading company.

Monsanto has been actively involved in countertrade since that time. However much to the surprise of many people, Monsanto’s first countertrade transac-tion actually occurred in 1935.

The company sold saccharin to a company in north-ern China. They were unable to pay for the saccharin in currency, but what they did have to offer was fro-zen mackerel. Not being a company that was willing to miss a sale, Monsanto took the mackerel in trade.

From this beginning, Monsanto has grown to a point where it now supports in excess of nearly a billion dollars a year of countertrade.

One of the most famous counter-trade deals of all times has been the Pepsi-Stolichnaya vodka trade in the USSR was only finalised because of the counter-trade component to the deal. The Russian side was looking for a way to generate hard currency and

signed the agreement as a way to export vodka from Russia into new markets.

Pepsico sold 30,000 cases of Stolichnaya vodka dur-ing the first year of the trade agreement and in 1998 Pepsico sold more Stolichnaya vodka than the total of

such sales in the rest of the world.

Examples of Corporate Countertrade


Ormitas Role in Corporate Countertrade

Ormita management professionals can assist Corpo-rations in several different ways:

• Sourcing purchasers and suppliers of goods and services on countertrade.

• Ensuring that the recipient organisation can use the goods and services to be received and that they are an economical source compared to alter-native sources.

• Ensuring that if the recipient organisation has no use for these goods or services, that they can be sold on at a cost which not only generates a profit but which also covers the administrative cost of the countertrade transaction, negotiating a more suitable offer of goods and services from the sell-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 which can be used to facilitate the exchange of products over a specified period of time.

Countertrade types often used by smaller firms are barter and counterpurchase. Such characteristics of small firms as greater flexibility and reliance on per-sonal relationships provide them with a comparative advantage in countertrade deals.

While the concept and procedures of countertrade may be simple and straightforward, its implementa-tion is not. Since countertrade has become a real-ity in international business, corporations must be proactive and well - positioned to seek out and take opportunities in countertrade.

Ormita has well trained purchasing and supply management professionals who are able to help steer

organisations through these transactions whilst ensuring that relationships remain ethical and that potential advantages of countertrade are realised.

Ormita India


Business to BusinessMultilateral Barter Trade

Multilateral Barter Trade

Multilateral barter is more complex to settle but al-lows trades that would not be possible with bilateral barter.

Bilateral barter is only possible when there is a coin-cidence of wants between two businesses. For a bilat-eral barter to take place it’s necessary that each party must be able to supply something the other party demands. This is not always likely to happen. Imag-ine you are a bookstore and need wooden shelves for displays and want to barter books for the same. But it will be quite unlikely for you to find a carpenter or a wooden furniture distributor who will like to trade for your books.

In multilateral barter, exchanges do not need to be di-rect. Instead three, four, five and six-way transactions are possible. Transactions can also take place at differ-ent times so no single supplier needs to “swap” their product or service immediately 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.

Nearly every business faces the problem of cash flow management. Issues that contribute to the need for cash flow management include highly competitive markets where constant advertising is a mandate, increasing business expenditures to attract consumer attention, planned or unplanned downtime, perish-able inventory and the necessity of discounting in-ventory. Modern, multilateral barter helps businesses alleviate the affect of these problems.

The Ormita Commerce Network system helps re-move the limitations that traditionally were a part of any barter transaction, such as the need for an equal dollar value, the mutual need between any two com-panies for each other’s product or service, and the time it can take to coordinate the transaction.

With advancements in computer technology, the concept of a bartering system emerged as a means by which business-to-business barter could take place between many businesses simultaneously, greatly increasing the benefits of trading without cash.

Multilateral Barter Trade

Ormita is essentially a secondary market that allows people to buy essential goods and services using future income instead of existing cash.

The Ormita business barter solution is designed to:

• Increase sales and market penetration

• Generate new income and working capital di-rectly from existing capacity

• Enhance corporate cash management by allow-ing a business to reduce its borrowing and trade finance risks

• Offset many of the costs of doing business, trav-elling and living

• Receive optimum value for goods and services

• Improve shareholder value and overall profit-ability


Record-Keeping in Multilateral Barter Transactions

The Ormita Commerce Network offers a method where the participants do not have to exchange goods or services directly with one another but can instead 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 may spend with other participants of the exchange.

One “barter dollar” is the equivalent to one dollar of the national currency.

When a business sells a product or accepts repayment of an outstanding debt they receive a “barter dollar”. This can then be used to buy goods or services from other 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 values between participants.

When one member is in debt, they are obliged to sell their goods or services to any member who may be in credit.

The sum of all accounts for members of the network is always zero, even though some will be in credit and some in debt.

This ensures that anyone who has received “barter dollars” is able to spend them on a range of goods or services, making them as valuable as cash.


Business to Business Multilateral Barter Benefits

Brings New Customers

Ormita brings new customers to a business, without affecting the existing cash sales already being gener-ated by the company. This may result in more “word-of-mouth” referrals, an increased work-portfolio, more recommendations, improved organizational skills, higher visibility and more cash sales.

Pays for Purchases Out of New Sales

Businesses acquire what they need, or want, and pay for it with additional sales of their products or services.

Improves Cashflow

There are two ways to increase cash flow – reduce costs and create additional sales. Ormita does both! Ormita provides business owners the opportunity to acquire what they need with what they have and al-lows them to preserve their working capital for other needs.

Moves Excess Inventory

Every business owner struggles with the dilemma of what to do with excess products. Traditionally this inventory is discounted, sold at a loss, donated or destroyed. Ormita offers a new way to recover full market value for these commodities without impact-ing the brand or cash-paying customers. By selling “off-market” to Ormita members a business retains full control over product placement and pricing. Ormita matches sellers with buyers from across the globe – providing a new outlet to move those prod-ucts.

Realises Value from Underperforming Assets

Participants can recover greater value versus dis-counting or liquidating.

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.

Helps Beat Inflation

Ormita offers a way for businesses to supplement their existing income through the process of trading their excess capacity or slow moving inventory for things they need. Regardless of the amount of money in the economy a business owner can still make acquisitions, create more brand awareness, fund mar-keting campaigns, reward customers, improve staff moral and enhance their lifestyle by trading what they have for what they need.

Generates More Cash Sales

Ormita lets businesses purchase advertising using their own products or services as payment instead of cash. This method reduces the overall cost of adver-tising to cents on the dollar. By trading in downtime or excess stock, a business owner can fund new pro-motional campaigns to attract cash-paying customers through their doors.

Provides Repeat Business

Participants will patronize other members businesses over the competition because the credits they have earned are spent within the “community” of members.

Recovers Value From Unsold Time and Space

Time and excess production capacity are a priceless non-recoverable, non-recyclable limited commodities. Selling these via Ormita provides a mechanism for businesses to achieve greater wealth.

Increased Profits

Sales generated via Ormita are incremental business (over and above existing cash income). Using this new income a business owner can offset existing cash overheads and upcoming expenses by purchasing using Ormita instead. The net result is more income and cash savings.


Reduces Overheads

Members can offset many costs of doing business, travelling and living against new sales. Ormita also offers a way to reduce warehousing, liquidation and disposal costs.

Eliminates Bad Debts

Ormita members pay one another at point of sale, thereby taking the hassle out of debt collection. We also offer a unique method whereby participants can recover full value from existing at-risk or overdue debts.

Helps Enhance Your Lifestyle

Using new sales, a business owner can take holidays, fund new purchases for the house, undertake renova-tions, outsource work, create a more ambient envi-ronment, purchase health and beauty services, buy gifts, improve their education and much more.

Creates Wholesale Buying Power

When members purchase using Ormita they are buy-ing out of the profit margin created from new sales – not their existing cash income.

Increases a Businesses Asset Base

By adding new customers and additional revenue, a business can increase its overall profitability and improve the health of its balance sheet. Increased income will offset existing purchases, freeing up cash and contributing to an overall net-profit for the busi-ness. Participants may also choose to utilize Ormita Credit to invest in local enterprises, acquire property or purchase other assets.

Interest Free Finance

Ormita offers a revolving, interest-free line of credit to participants. Repayments are funded through the sale of the borrowers own goods and services and are provided based on what a business can sell, not their current turn-over.

Loan Repayments Cost Less Compared to Cash

Because loans are repaid through a business selling its own products or services then the repayment cost is always less than it would be with cash. In the cash economy loans are repaid out of existing cash in-come, not new sales.

Converts to Cash

A business owner can convert their unsold time or products into new items, merchandise or services that can be on-sold or “converted” to cash at a price well above the cost of acquiring them.

Provides a Test Market

Ormita offers a risk-free method of trialling new products “off-market”, creating a “buzz”, soliciting feedback, generating referrals and testing consumer acceptance before a full product launch.

Protects the Local Economy

Economies of scale, transfer pricing, and capitalising on cheap Third World labour or raw materials can enable larger multinational and interstate manufac-turers and retailers to tip the so-called “level play-ing field” in their direction, to the detriment of local businesses. Ormita offers a way for businesses to trade locally and mobilize the value of their products and services in a way that is more cost effective than purchasing from outside suppliers.

Builds Community

Members buy and sell with other members, provid-ing the opportunity for more networking and sup-port from others within the community.

Better Credit Terms

Ormita participants can access interest free loans and repay them with their own products and services.


Media Barter

Advertising is an important component in establish-ing a product, service or company’s credibility with its target market. Advertising is essentially mass-produced salesmanship. If it were possible to speak to all of one’s prospects face-to-face, no one would bother to use advertising. Because most businesses cannot do this, they need to pay for some form of advertisement. Unfortunately, the cost of advertis-ing may be too high for an up-and-coming business. Barter can be the saviour of such an enterprise.

Virtually all media companies, including newspa-pers, radio stations, magazines, TV stations, and others, engage in barter at some time or another. Ac-cording to the Association of Advertising Agencies, eight out of every ten media corporations engage in some 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 can exchange their own product or service.

Ormita acts as the facilitator in these types of trans-actions and lets multi-way barter transactions take place.

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 can provide a range of advertising on a pure barter basis including :

• Billboards• Bus Advertising• Expos• Internet Websites• Magazines• Metro Advertising• Newspapers• Radio• Sponsorship of Events• Taxi Advertising• Television


Venture Capital

Ormita offers new enterprises the ability to access seed and venture capital in the form of barter credits made available from participants within its network.

These barter credits can be used to acquire a range of products and services including:

- Advertising- Components- Freight- Internet Access- Legal Services- Office Equipment- Office Rent- Packaging- Printing- Professional Services- Website Design & Hosting- .. and more

Using Ormita, an existing (successful), business owner is able to take their unsold capacity and turn it into something useful – an investment into a new enterprise.

The business owner making an Ormita unit invest-ment sells his product or service for Ormita barter dollars, then transfers these to the business he or she is investing in.

The investor receives a small percentage share in the new business (the actual percentage is privately negotiated between both parties).

The start-up receives funding and, more importantly, support and guidance from a business owner who has experience in the local marketplace and who now has a vested interested in the success of someone other than himself.

An Example Investment Transaction:

A widget manufacturer has decided that they wish to create an investment portfolio in some start-up enterprises.• The manufacturer has a warehouse full of wid-

gets which he has been unable to sell for cash. • Working with Ormita, the manufacturer sells

10000 widgets and receives $100,000 in Ormita Credit.

• Using the $100,000 in Ormita Credit, the manu-facturer invests in 3 small businesses.

• Over time these investments each generates a profit in cash, part of which goes to the Widget manufacturer.

A business owner can potentially turn its excess ca-pacity into an investment with possible cash returns anywhere from 1 through to thousands of times greater than the value of the initial investment.

It costs an investor a minimal amount of cash to in-vest – as they are essentially investing their “surplus capacity”, by converting those into barter credits in the network and allowing their new investment to spend those credits on things that they need.


Technical NetworkInfrastructure

Ormita operates its own database and application server infrastructure which is telehoused in secured leased premises in the following countries:

• Canada

• Germany

• United Kingdom

• United States of America

The company also has separate infrastructure for its telephone 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


Our Leadership

Our PeopleWe are in a business where the quality of our people is key to our success. Our greatest single strength continues to be the talent, integrity, enthusiasm and loyalty of our people. As we continue to evolve our business, keeping our people and attracting others like them will be a top priority. We believe the abili-ties and commitment of our professionals will make us the preferred provider of professional services for companies large and small around the globe.

Flat Management StructureProfessional services firms are typically hierarchi-cal in structure. By minimizing the layers within our organization, we offer talented, creative individuals the chance to work collegially within a community of professionals. With an emphasis on teamwork and mutual respect, our professional community is focused on meeting the needs of our clients.

Multi-Cultural LeadershipOur corporate culture is defined and fostered by industry leaders with experience from across the globe. As a multi-cultural, multi-faceted company, we benefit from local differences and global opportuni-ties. While each office is rooted in its own culture and community, we share a common vision and mission: to help global business leaders execute their internal initiatives and achieve targeted results.

Entrepreneurial As a community driven organisation, we are focused on validating our market value through exceptional financial performance. We believe that the needs of all stakeholders are best served by fostering an entrepreneurial culture that rewards talent, integrity, enthusiasm and loyalty.

Our Company

Solid• Founded in • More than 30 years of combined industry experi-

ence• Financially sound and backed by individuals

with global reputations• Experienced shareholder base

Always there• 24 Hours a day, 7 days a week brokering services• Unique e-commerce marketplace

Global reach• Direct representation in 21 countries• Contact points in 35 countries• Customers in 54 countries

Advanced technology • Wholly owned, developed and maintained global

telecommunications and IT infrastructure• Online trading• Instant funds transfer• Email alerts of transactions• Escrow• Swipe card technologies• Phone, Internet and TXT banking• Online statements

Sound financial principles• No inflation• Zero trade deficit• Balanced trade cycles• Transactions are focused on meeting a specific

budgetary, marketing, investment and/or philan-thropy goal.

• Tailored transactional plans (buying schedules) for each participant


Performance ManagementJim Gielarowski

Board of Directors

Responsibility for the Company’s proper corporate governance rests with the Board.

The Board’s guiding principle in meeting this re-sponsibility is to act honestly, conscientiously and fairly, in accordance with the law, in the interests of the Company’s shareholders (with a view to building sustainable value for them) and those of employees and other stakeholders.

The Board’s broad function is to: 1. chart strategy and set financial targets for the

Company; 2. monitor the implementation and execution of

strategy and performance against financial tar-gets; and

3. appoint and oversee the performance of execu-tive management and generally to take and fulfil an effective leadership role in relation to the Company.

Power and authority in certain areas is specifically reserved to the Board - consistent with its function as outlined above. These areas include:

1. oversight of the Company including its control 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. The

Company’s corporate governance charter is intended to ‘institutionalise’ good corporate governance and, generally, to build a culture of best practice both in the Company’s own internal practices and in its deal-ings with others. The following are a tangible dem-onstration of the Company’s corporate governance commitment.

Independent Professional AdviceWith the prior approval of the Chairman, which may not be unreasonably withheld or delayed, each Director has the right to seek independent legal and other professional advice concerning any aspect of the Company’s operations or undertakings in order to fulfil their duties and responsibilities as directors. Any costs incurred are borne by the Company.

Code of ethics and values The Company has developed and adopted a detailed code of ethics and values to guide Directors in the performance of their duties.

Code of conduct for transactions in securities The Company has developed and adopted a formal code to regulate dealings in securities by Directors and senior management and their associates. This is designed to ensure fair and transparent trading in ac-cordance with both the law and best practice.

Daniel Evans


Company Charter

Principle 1 - Lay solid foundations for management and oversight

Principle 2 - Structure the Board to add value

Principle 3 - Promote ethical and responsible decision making The Board has adopted a detailed code of ethics and values and a detailed code of conduct for transactions in securities as referred to above. The purpose of these codes is to guide Directors in the performance of their duties and to define the circumstances in which both they and management, and their respec-tive associates, are permitted to deal in securities. The Board will ensure that restrictions on dealings in securities are strictly enforced. Both codes have been designed with a view to ensuring the highest ethical and professional standards, as well as compliance with legal obligations, and therefore compliance with the Guidelines.

Principle 4 - Safeguard integrity in financial reportingThe audit and risk committee (with its own charter) complies with the guidelines. All the members of the audit committee are financially literate.

Principle 5 - Make timely and balanced disclosureThe Company undertakes to ensure timely and bal-anced disclosure in its business dealings.

Principle 6 - Respect the rights of shareholdersThe Board recognises the importance of this principle and strives to communicate with shareholders both regularly and clearly - both by electronic means and using more traditional communication methods. Shareholders are encouraged to attend and partici-pate at general meetings.

Principle 7 - Recognise and manage risksThe Board, together with management, has con-stantly sought to identify, monitor and mitigate risk. Internal controls are monitored on a continuous basis and, wherever possible improved. The whole issue of risk management is formalised in the Company’s cor-porate governance charter (which complies with the Guidelines in relation to risk management) and will continue to be kept under regular review. Review will take place at both committee level (audit and risk management committee), with meetings at least three times each year, at Board level.

Principle 8 - Encourage enhanced performanceThe corporate governance charter adopted by the Board requires individual performance review and evaluation to be conducted formally on an annual basis. The Board acknowledges that performance can always be enhanced and will continue to seek and consider ways of further enhancing performance both individually and collectively.

Principle 9 - Remunerate fairly and responsiblyRemuneration of Directors and executives is fully disclosed in the annual report. The remuneration committee, which advises and reports to the Board, is appropriately constituted in that members of the remuneration committee are non-executive directors with experience in corporate governance best prac-tice.

Principle 10 - Recognise the legitimate interests of stakeholdersThe Board recognises the importance of this prin-ciple (which it believes represents not only sound ethics but also good business sense and commercial practice) and continues to develop and implement procedures to ensure compliance with legal and other obligations to legitimate stakeholders. The Company and its policies and practices comply with the Guide-lines in this area.


Chris Cook

Corporate Citizenship

Ormita’s Corporate Social Responsibility practices are tightly integrated into our culture and business. We continually review and improve our efforts to lessen our impact on the environment, nurture a workplace of diversity and inclusion, conduct re-sponsible business practices and uphold the highest ethical standard. Our Board of Directors has adopted governance principles and codes to ensure that Ormita conducts business with the utmost integrity and according to the highest ethical standards. We have also chartered an independent Board of Advisors whose purpose is to lead and focus Ormita in advancing our enterprise commitment towards social responsibility.

Diversity & InclusionOrmita is built around two core assets: its customers and its people. Experience tells us that the most di-verse companies - companies filled with imagination and people of all ages, races, and backgrounds - are the most successful over time.

As a global business, our ability to understand, em-brace and operate in a multicultural world - both in the marketplace and in the workplace - is critical to our sustainability.

Ormita leverages the creative talent of all employees with a global focus, and establishes and environment that is inclusive of all perspectives, maximizing the potential of all employees.

We actively seek to employ and license the highest calibre people from all around the world, drawing from all genders, religions, nationalities, races, ages, ethnicities and sexual determinations, regardless of disabilities.

By providing exceptional resources and an inclusive, high-performance work environment, we actively provide development and networking opportuni-ties to challenge and bring out the best in its people and to harness the skills and knowledge required for today’s and tomorrow’s ventures.

Social ResponsibilityOrmita believes it has a social responsibility to make positive contributions to the environment, our com-munity, our licensees, our employees, our members and our investment stakeholders. As part of this we have developed policies and procedures in the fol-lowing areas:

• Community Relations• Corporate Governance• Diversity• Environmental Sustainability• Human Rights• Philanthropy• Poverty Alleviation• Supply Chain Sustainability• Treatment of Employees

We also aim to give a voice to the issue of Social Re-sponsibility by being transparent in our actions and demonstrating the rationale of our Corporate Social Responsibility initiatives. The ways in which we aim to do this are through:

• Community engagement• CSR reporting• Environmental sustainability communications• Issues management• Media relationships• Stakeholder mapping and engagement


Hans-Werner Alpermann

Standards of Business Conduct

The Company has documented standards of business conduct which sets forth the Companies commitment to integrity and ethical behaviour in all aspects of its business activity. The standards are applicable to all of the Companies directors, officers, and employees who are required to periodically verify their aware-ness of, and compliance with, the standards. The Board of Directors has oversight responsibility for the standards.

CEO Succession Planning

At least annually, the Board, together with the CEO, shall review both a succession plan and an emergen-cy succession plan.

The emergency succession plan shall come into force in the event of the sacking of, the permanent dis-ability or death, or in the event of another emergency situation of the CEO.

The succession plan shall come into force in the event of the retirement or timely resignation of the CEO.

The emergency succession plan names an individual or individuals to act in an emergency situation and prescribes their powers. The emergency succession plan is reviewed by the Board at least annually and revised 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 to conduct an external search to locate a successor. If necessary, the Board may also appoint an interim CEO while conducting a search to locate a qualified candidate for CEO.

Reporting Concerns about the Company

Any employee, shareholder or third party who has a concern about Ormita’s business conduct or about its accounting may direct their concerns to the CEO of the company.

Any unresolved or major concern about Ormita’s business conduct or about its accounting, internal accounting controls or financial or auditing matters may communicate that concern directly to the Chair-man or other member of the Board of Directors.

All concerns will be reviewed confidentially by the Board of Directors prior to discussing them with the CEO of the company. The status of any investigations on concerns will be reported to the Board of Directors monthly.

Non-employee directors may request specialized support, including the retention of outside advisors or counsel with payment by Ormita, to investigate any concern addressed to them only with the prior approval of the Board of Directors.

Miriam Worsnop



AustraliaBrisbane +61 7 3149 3152Head Office Fax +61 7 3077 6896

AustriaVienna +43 1 311 7296

BelgiumBrussels +32 2 808 9128

BulgariaSofia +359 2 491 7794

CanadaMontreal +1 514 700 0180Head Office Fax +1 647 955 3798

ChinaShenzhen +86 755 3301 1789Head Office Fax +86 755 3301 1790

Denmark +45 89 88 11 29

EgyptCairo +20 16 777 1 222

EnglandLondon +44 203 355 1381Head Office Fax +44 203 332 0787

EstoniaTallinn +372 668 2549

FinlandHelsinki +358 9 3158 2401

FranceParis +33 1 8288 3929

GermanyMargetshoechheim +49 931 3069 99280Head Office Fax +49 931 3069 99289

GreeceAthens +30 211 198 2720Head Office Fax +30 211 198 0183

Hong KongNational +852 5808 2688Head Office Fax +852 5808 1360

IndiaMumbai (Fax) +91 22 3916 7341

IndonesiaBali +62 817 345 516

IrelandBelfast +44 289 505 3012

ItalyBiella +39 015 952 6193Head Office Fax +39 015 952 2007

Luxembourg National +352 20 33 31 84Head Office Fax +352 20 33 32 43

MexicoMexico City (Fax) +52 55 4770 7766

New ZealandAuckland +64 9 974 9159Head Office Fax +64 4 974 5040

NorwayOslo +47 21 98 89 79

DirectInternational Call Numbers

Direct

PakistanLahore +92 42 35754136Lahore (Fax) +92 42 35754135

PolandKatowice +48 32 444 9155Head Office Fax +48 32 630 4123

PortugalLisbon +351 30 880 1735

ScotlandEdinburgh +44 131 516 4667

SlovakiaBratislava +42 12 3305 7871

South AfricaJohannesburg +27 10 500 9060Head Office Fax +27 86 754 5827

SwedenStockholm +46 8 4083 9907Head Office Fax +46 8 5250 7076

SwitzerlandZurich +41 43 508 1008

TurkeyIstanbul +90 542 786 5969

USAPittsburgh +1 412 346 6142Head Office Fax +1 717 921 1180

WalesCardiff +44 292 000 4520

ZambiaLusaka +260 97 789 5034


Country Call DirectArgentina +54 11 5239 1330 ext 27009

Bahrain +973 16199023 ext 8899778

Brazil +55 11 3323 1169 ext 27009

Chile +56 2 595 2806 ext 27009

Croatia +385 17776313 ext 8899778

Cyprus +357 22030605 ext 8899778

Czech Republic +420 246019209 ext 8899778

El Salvador +503 21133826 ext 8899778

Georgia +995 32473808 ext 8899778

Guatemala +502 2353 3155 ext 27009

Hungary +36 18088337 ext 8899778

Israel +972 37630481 ext 8899778

Japan +81 345789014 ext 8899778

Latvia +371 67652588 ext 8899778

Lithuania +3 70 52059137 ext 8899778

Malta +356 27780220 ext 8899778

Mexico +52 5546242486 ext 8899778

Panama +507 202 0400 ext 27009

Peru +51 1705 9745 ext 27009

Slovenia +386 16004920 ext 8899778

Spain +34 901667597 ext 8899778

International Call Numbers

Ormita in AustraliaCountry Overview

Region 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 its standard of living. Australia is today riding the commodity boom, in particular signing massive contracts with China to feed the fastest 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 Gross Domestic 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, poultry Industries Mining, industrial and transportation equipment, food processing, chemicals, steel

Website www.ormita.com.au

Email [email protected] Telephone Adelaide (08) 7071 0822Brisbane (07) 3149 3152Bunbury (08) 9762 3112Canberra (02) 6160 4351Gold Coast (07) 5667 8362Hobart (03) 6281 8235Melbourne (03) 8644 2761Newcastle (02) 4016 6271Perth (08) 6141 8502Sunshine Coast (07) 5313 3592Sydney (02) 8064 2487 Fax Brisbane (07) 3077 6896

Country Barter Capabilities • Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Government Barter• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling

Customer Profile• Fortune 500• Government• Multinationals

Preferred Deal Sizes> $250,000 AUD per trade

Deal Types• Deals structured on a case-by-case basis


Ormita in CanadaCountry Overview

Region 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).

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; fish Industries Transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum and natural gas

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 oil as 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, real estate, 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 biggest exporters of agricultural products, including wheat and grains, to the US, Europe and East Asia.

Website www.ormita.ca

Email [email protected] Telephone Montreal (514) 700 0180Quebec (418) 907 8622Toronto (647) 931 6841Vancouver (778) 785 5495 Fax Toronto (514) 800 2773

Country Barter Capabilities • B2B Barter (Retail Barter)• Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Government Barter• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter

Transactions• Switch Trading• Tolling


Preferred Deal SizesSME > $2,000 CAD upwardsCorporate >$100,000 CAD per trade

Deal Types• Deals structured on a case-by-case

basis


Ormita in ChinaCountry Overview

Region 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 to US$ 6,422.28 Billion. Forecasts for 2015 predict China’s GDP to reach US$ 9,982.08 billion, growing 10-12 percent per year between 2010 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 during that period, with Chinese GDP reaching 3.42 trillion US dollars in 2007. China already has the biggest economy after the United States 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; fish Industries 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, satellites

Website www.ormitachina.com

Email [email protected] Telephone Shenzhen 深圳 (0755) 3301 1789Shanghai 上海 (021) 6048 6839 Wuhan 武汉电话 (027) 8589 2399Xian 西安电话 180 4922 6616 Fax Shenzhen 深圳 (0755) 3301 1790Shanghai 上海 (021) 6106 3629Wuhan 武汉电话 (027) 8541 2366Xian 西安电话 (029) 8826 9620

Country Barter Capabilities • B2B Barter (Retail Barter)• Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Government Barter• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling

Customer Profile• SME Business• Fortune 500• Government• Multinationals

Preferred Deal SizesSME > ¥20,000 upwardsCorporate ¥$100,000 per trade

Deal Types• B2B ongoing• Corporate deals structured on a case- by-case basis


Ormita in EgyptCountry Overview

Region 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 long coastline 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 oil industry.

The country has healthy trade relations with African nations, the Middle East countries and EU members. Egypt is a member of the Arab 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 manufactures

Website www.ormitaegypt.com

Email [email protected] Telephone Cairo (016) 777 1222

Country Barter Capabilities • Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Government Barter• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling


Preferred Deal Sizes> $1,500,000 EGP per trade



Ormita in Germany Launching 2012Country Overview

Region 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 enabled Germany to dominate the vehicles, machinery, chemicals and household equipment vertical across the globe. The service industry sectors 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 so on, 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 factors contributed so that Germany could prosper and dominate in the manufacturing segment. Indisputably, Germany produces some of the 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 manufactures

Website www.ormita.de

Email [email protected] Telephone Margetshoechheim (0931) 3069 99280

Facsimile Margetshoechheim (0931) 3069 99289

Country Barter Capabilities • Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Government Barter• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling


Preferred Deal Sizes> €250,000 per trade



Ormita in Greece Launching 2012Country Overview

Region 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 area of 131,990 square km, with almost 80% of it being mountainous. The country also has the 10th largest coastline in the world. The scenic beauty of the place, combined with its legacy of culture and architecture makes Greece a favourite amongst tourists, and tourism 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 Greece economy is marred by high rate of unemployment, which stood at 8.9% in 2009. The figures seem to be increasing due to tightened credit 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

Website www.ormita.gr

Email [email protected] Telephone Athens (211) 198 2720

Facsimile Athens (211) 770 8575

Country Barter Capabilities • Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Government Barter• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling

Customer Profile• Fortune 500

• Government• Multinationals

Preferred Deal Sizes> €250,000 per trade



Ormita in Hong KongCountry Overview

Region 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 travel restrictions, 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 Chinese firms seeking to list abroad. In 2010 mainland Chinese companies constituted about 19% of the firms listed on the Hong Kong Stock Exchange and accounted for 62% of the Exchange’s market capitalization. During the past decade, as Hong Kong’s manufacturing industry moved to the mainland, its service industry has grown rapidly and in 2009 accounted for more than 90% of the territory’s GDP.

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, clocks

Website www.ormita.hk

Email [email protected] Telephone Central 5808 2688Sheung Wan 5808 2722

Facsimile Central 5808 1360

Country Barter Capabilities • B2B Barter (Retail Barter)• Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Franchising• Government Barter• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling• Venture Capital on Barter


Preferred Deal SizesSME > $20,000 HKD upwardsCorporate $$100,000 HKD per trade

Deal Types• B2B ongoing • Corporate deals structured on a case- by-case basis


Ormita in IndiaCountry Overview

Region 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, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the 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 of economic 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 technology services 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, pharmaceuticals

Website www.ormita.in

Email [email protected] Telephone Mumbai 098410 83082

Facsimile Mumbai (022) 3916 7341



Preferred Deal SizesSME > 1 Lakh Rupees upwardsCorporate > 10 Lakh Rupees per trade



Ormita in Indonesia Launching 2012Country Overview

Region Southeastern Asia, archipelago between the Indian Ocean and the Pacific OceanIncome Category Lower middle incomePopulation 245,613,043 GNI 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 the newest member of the “BRIC” grouping of leading emerging markets. Its solid track record has also resulted in credit upgrades from each of the major ratings agencies in the past year, with all three major credit rating agencies rating Indonesia sovereign debt one 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 closed again after 2000. A new mining law, passed in December 2008, opened coal to foreign investment again, although it eliminated the 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, tourism

Website www.ormitaindonesia.com

Email [email protected] Telephone Bali (817) 345 516

Facsimile International +883 5100 01192096

Country Barter Capabilities • Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Government Barter• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling


Preferred Deal Sizes> 90,000,00 IDR per trade



Ormita in IranCountry Overview

Region 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 a large public sector and some 50% of the economy centrally planned. Iran’s economy is marked by the heavy dominance of its oil sector 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 demand thereby making substantial imports necessary. In 2007 Iran reached self-sufficiency in wheat production and for the first time became a net wheat exporter. Major exports in this category include fresh and dried fruits, nuts, animal hides, processed foods, and spices.

Iran’s major manufactured products are petrochemicals, steel, and copper products. Other important manufactures include automobiles, home and electric appliances, telecommunications equipment, cement and industrial machinery. Iran has gradually become 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

Website www.ormitairan.com

Email [email protected] Telephone Tehran (21) 88502193-4

Facsimile Tehran (21) 8851 2108

Country Barter Capabilities • Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Government Barter• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading

Customer Profile• Fortune 500• Government

Preferred Deal Sizes> 500,000,000 IRR per trade



Ormita in Italy Launched November 2011Country Overview

Region 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 substantial deposits of iron, coal, or oil. Proven natural gas reserves, mainly in the Po Valley and offshore Adriatic, have grown in recent years and constitute the country’s most important mineral resource. Most raw materials needed for manufacturing and more than 80% of the country’s energy sources are imported. Italy’s economic strength is in the processing and the manufacturing of goods, primarily in 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 specializes in producing fruits, vegetables, olive oil, wine, and durum wheat. Even though much of its mountainous terrain is unsuitable for farming, Italy has a large work force employed in farming. Most farms are small, with the average farm only seven hectares.

Export Partners Export Commodities Engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metalsImport Partners Imports 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, ceramics

Website www.ormita.it

Email [email protected] Telephone Asti (0141) 170 6132Biella (015) 952 6193Firenze (055) 747 6871Milano (02) 8715 8378Roma (06) 9835 6362Torino (011) 043 7942 Vicenza (0444) 149 6303

Facsimile Biella (015) 952 2007

Country Barter Capabilities • B2B Barter (Retail Barter)• Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Franchising• Government Barter• Media Barter Exchange• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling• Venture Capital on Barter


Preferred Deal SizesSME > € 2,000Corporate > € 50,000



Ormita in MexicoCountry Overview

Region 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 other countries.

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, and dairy 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 and gas revenues provided more than one-third of all Mexican Government revenues and are the country’s largest source of foreign currency. 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 must determine 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

Website www.acambio.comwww.ormita.com.mx

Email [email protected]@ormita.com.mx Telephone Mexico City (55) 5293 8500

Facsimile Mexico City (55) 5280 5244



Preferred Deal SizesSME > 28,000 MXN Corporate > 140,000 MXN



Ormita in New ZealandCountry Overview

Region 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 European Union, 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 last decades have removed many barriers to foreign investment, and the World Bank in 2005 praised New Zealand as being the most business-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 services

Inflation remains among the lowest in the industrial world however New Zealand’s heavy dependence on trade leaves its growth prospects 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, mining

Website www.ormita.co.nz

Email [email protected] Telephone Auckland (09) 974 9159Christchurch (03) 974 9041Dunedin (03) 974 8014Wellington (04) 974 9061

Facsimile Auckland (09) 974 9223Wellington (04) 974 5040

Country Barter Capabilities • Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Government Barter• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling


Preferred Deal Sizes> $10,000 NZD

Deal Types• Corporate deals structured on a case- by-case basis


Ormita in Pakistan Launching March 2012Country Overview

Region 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. Most of Pakistan’s agricultural output comes from the Indus basin. The country is now self-sufficient in food, as vast irrigation schemes have 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 major manufactures textiles (the biggest earner of foreign exchange), processed foods, pharmaceuticals, construction materials, paper products, and fertilizer. Remittances from Pakistanis working abroad constitute the second largest source of foreign exchange. Since the mid-1950s electric power output has greatly increased, mainly because of the development of hydroelectric power potential and the 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, shrimp

Website www.ormita.com.pk

Email [email protected] Telephone Lahore (423) 575 4136

Fax Lahore (423) 575 4135

Country Barter Capabilities • B2B Barter (Retail Barter)• Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Franchising• Export Assistance• Government Barter• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling• Venture Capital on Barter


Preferred Deal SizesSME > 175,000 PKR Corporate > 1,750,000 PKR



Ormita in PolandCountry Overview

Region 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 of the 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 domestic supplies of wheat, feed grains, vegetable oil, and protein meals, which are generally insufficient to meet domestic demand. However, Poland is the 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 significant producer 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, textiles

Website www.ormita.pl

Email [email protected] Telephone Gdansk (58) 742 0353Gorzow (95) 782 9509Kalisz (62) 597 4470Katowice (32) 444 9155Krakow (12) 383 3392Krosno (13) 493 2591Lodz (42) 278 4579Poznan (61) 648 9107Szczecin (91) 882 8778Tarnow (14) 692 2764Wroclaw (71) 719 9898

Fax Katowice (32) 630 4123

Country Barter Capabilities • B2B Barter (Retail Barter)• Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Franchising• Export Assistance• Government Barter• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling• Venture Capital on Barter


Preferred Deal SizesSME > € 2,000 Corporate > € 50,000



Ormita in South AfricaCountry Overview

Region 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’s largest producer of chrome, manganese, platinum, vanadium and vermiculite, the second largest producer of ilmenite, palladium, rutile and zirconium. 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 and agribusinesses 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 other emerging 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

Website www.ormita.co.zawww.sane.org.za

Email [email protected]@sane.org.za Telephone Johannesburg (010) 500 9060

Facsimile National (086) 754 5827

Country Barter Capabilities • Barter Consulting• Buyback• Community Currencies• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Government Barter• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading


Preferred Deal Sizes> 500,000 ZAR

Deal Types• Person to Person • Deals structured on a case-by-case basis


Ormita in Sweden Launching 2012Country Overview

Region 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 resource base 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 oriented toward 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

Website www.ormita.sewww.swebarter.se

Email [email protected]@swebarter.se Telephone Norrkoping (011) 475 9991Stockholm (08) 4083 9907

Fax Stockholm (08) 5250 7076



Preferred Deal SizesSME > 15 000 SEKCorporate > 500 000 SEK



Ormita in TurkeyCountry Overview

Region 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 transportation equipment; 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 of watermelon, cucumber and chickpea; the third largest producer of tomato, eggplant, green pepper, lentil and pistachio; the fourth largest producer of onion and olive; the fifth largest producer of sugar beet; the sixth largest producer of tobacco, tea and apple; the seventh largest producer of cotton and barley; the eighth largest producer of almond; the ninth largest producer of wheat, rye and grapefruit, 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. Fishing is 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

(Reciprocal Barter Partner)

Website www.ormitaturkey.comwww.turkbarter.com

Email [email protected]@turkbarter.com Telephone Istanbul (542) 786 5969

Fax Istanbul +883 5100 01192096



Preferred Deal SizesSME > 4,000 TRYCorporate > 50,000 TRY



Ormita in USACountry Overview

Region 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 United States, indeed, it is often credited with “leading” the economy. Consumer goods are commonly obtained through international trade, 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, mining


Website www.ormita.com

Email [email protected] Telephone Atlanta (678) 298 3210Austin (512) 499 2345Baltimore (443) 692 0121Boise (208) 906 1188Boston (857) 524 5135Chicago (773) 337 4770Columbus (614) 754 5884Dallas (214) 461 4818Denver (303) 997 1666Detroit (313) 733 2939Fort Worth (817) 439 6909Houston (713) 820 9464Los Angeles (323) 443 0233Memphis (901) 328 7278Nevada (702) 446 0899New York (347) 527 7677Orlando (321) 281 3766Philadelphia (215) 695 3040Phoenix (602) 427 5620Pittsburgh (412) 360 8450Salt Lake (801) 618 0488San Francisco (415) 358 1808San Jose (408) 538 0208Seattle (206) 691 8191Tampa (813) 200 4844Washington (202) 380 3223

Fax Los Angeles (323) 375 2189Pittsburgh (412) 360 8403Seattle (206) 666 2547York (717) 921 1180

Country Barter Capabilities • B2B Barter (Retail Barter)• Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Franchising• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading


Preferred Deal SizesCorporate $10,000

Deal Types• Corporate deals structured on a case-by-case basis

Reciprocal Trade Brands


Ormita in UK Launching 2013Country Overview

Region 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 UK also 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 of measurement. The pharmaceutical industry employs around 67,000 people in the UK and in 2007 contributed £8.4 billion to the UK’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 the British economy. With over 27 million tourists arriving in 2004, the United Kingdom is ranked as the sixth major tourist destination in 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 goods


Website www.ormita.co.uk

Email [email protected] Telephone Ashburton (0136) 469 8269Birmingham (0121) 314 3597Blackburn (0125) 436 8876Blackpool (0125) 380 8318Bradford (0127) 444 9121Brighton (0127) 325 6267Bristol (0117) 911 7959Canterbury (0122) 467 6332Coventry (0247) 699 8602Hull (0148) 277 8674Leeds (0113) 350 5716Leicester (0116) 298 5728Liverpool (0151) 601 3633London (0203) 355 1381London (0203) 432 3666Manchester (0161) 820 7688Newcastle (0191) 432 8845Norwich (0160) 385 7940Nottingham (0115) 871 5146Plymouth (0175) 254 6696Sheffield (0114) 299 4914Sunderland (0191) 543 8911Swansea (0179) 282 4745Wakefield (0192) 491 0728

Fax Birmingham (0121) 400 1248Leeds (0113) 892 1048Liverpool (0151) 701 0082London (0203) 051 6863Manchester (0161) 738 1182Plymouth (0175) 292 4058

Country Barter Capabilities • B2B Barter (Retail Barter)• Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Franchising• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling• Venture Capital on Barter


Preferred Deal SizesSME £2,000Corporate £20,000

Deal Types• B2B ongoing• Corporate deals structured on a case-by-case basis

Pending Licensee Negotiations


Ormita in ZambiaCountry Overview

Region 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, and coffee. 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 by hydroelectric plants, especially the one at Kariba Dam.

Copper, cobalt, electricity, tobacco, flowers, and cotton are the main exports. The principal imports are machinery, transportation equipment, 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

Website www.ormitazambia.comwww.zbex.ws

Email [email protected]@zbex.ws Telephone Lusaka (97) 789 5034

Country Barter Capabilities • B2B Barter (Retail Barter)• Barter Consulting• Buyback• Counter-purchase• Countertrade• Corporate Barter• Direct Barter Trade• Export Assistance• Franchising• Government Barter• Media Barter Exchange• Mining & Exploration• Offset Trades• Structured Multilateral Barter Transactions• Switch Trading• Tolling


Preferred Deal SizesSME £2,000Corporate £20,000



Ormita corporate profile 2011

Business

Transcript of Ormita corporate profile 2011