NATION:TECHNOLOGICAL

AND/OR SUCCESSFUL

Dima Malenko6/2/2016

Товарищи! Я верю в автомобильное будущее Лучанска!

GDP PER CAPITA

–Wikipedia

“The argument for using GDP as a standard-of-living proxy is not that it is a good indicator of the absolute level of standard of living, but that living standards tend

to correlate with per capita GDP, so that changes in living standards are readily detected

through changes in GDP. ”

UKRAINE’S GDP PER CAPITA

$3083

Based on World Bank data for 2014

GDP per capita, $Luxembourg

US

Israel

Estonia

Poland

Brazil

Belarus

China

Ukraine

India 1,5823,083

7,5908,040

11,72714,337

20,14837,206

54,630116,613

Based on World Bank data for 2014

–various sources

“IT industry contribution to GDP in 2015 was around $2.4bln,

which is about 3% of total $90bln of GDP”

ECONOMY 101:

GROSS DOMESTIC PRODUCT = compensation of employees + gross operating surplus

+ gross mixed income+ taxes

– subsidies on production and imports

income method of calculation

ECONOMY 101:

GROSS DOMESTIC PRODUCT = compensation of employees

+ gross operating surplus + gross mixed income

+ taxes – subsidies on production and imports

income method of calculation

REVENUE PER EMPLOYEE

• Good measure of effectiveness of a particular company

• For exports-oriented hi-tech businesses almost directly represent their employee’s contribution to GDP

REVENUE PER EMPLOYEE

Revenue, $M Employees Revenue per employee, $

Luxoft* 650.8 11087 58700

EPAM** 914.128 18354 49805

* based on 6-K filing from 5/12/2016** based on 10-K filing from 2/23/2016

KEY ASSUMPTION

Revenue per employee≈

contribution to GDP≈

$55,000

For current state and trajectory of IT industry in Ukraine

Contribution to GDP

Average* IT

$55,000

$7,170

* adjusted to size of working population (43% of total)

What if we had manyIT workers?

What if we had manyIT workers?

MANY

GDPnew = GDPcurrent + ∆N•W•ContribIT

GDPPCnew = GDPnew N+∆N

∆N = GDPPCnew•N – GDPcurrentW•ContribIT – GDPPCnew

Current GDP for Ukraine, GDPcurrent = $90.524bln*Current population of Ukraine, N = 42,708,600**% of workforce in population, W = 43%**

IT worker’s to contribution to GDP, ContribIT = $55,000Target GDP per capita, GDPPCnew = $14,337

We will need at least

24,092,060new developers

Population growth, ∆N = 56,028,047

* for 2015 according to IMF** based on DerzhStat data for Jan-Mar 2016

IT CONSULTING LANDSCAPERevenue, $M Employees Revenue per

employee, $Accenture 31,000 373,000 83,110

Tata Consultancy 16,540 353,843 46,744

Capgemini 13,244 180,639 73,318

Cognizant 12,416 233,000 53,288

Wipro 7,735 172,912 44,734

Unisys 3,356 20,000 167,800

Our top companies are already world-class,and we cannot expect improvements in RPE

within current model

“THEIR” IT IS DIFFERENTRevenue per Employee

Luxoft Accenture Unisys Shopify Atlassian Adobe Zendesk Google

$1,205,876

$408,548$380,750$253,376$195,833$167,800$83,110$58,700

Not everything is that bad

Embraer Regional Jet 145

Revenue $5.9bln $11.2bln

Revenue per Employee $325,303 $406,554

! "

Antonov An-148

Revenue $211.9mln

Revenue per Employee $16,433

For the first time ever, in 2011, global spending on prescription drugs topped $954 billion

Revenue $69.304mln $149.08mln

Revenue per Employee $85,245 $66,259

# #

Revenue $1.3bln $19.4bln $50.36bln $48.85bln

Revenue per

Employee$122,695 $129,047 $424,254 $623,882

$ % & '

World production and use(million tonnes)

from Food and Agriculture Organization of the United Nations WORLD AGRICULTURE TOWARDS 2030/2050, The 2012 Revision

CHERNOZEM highly fertile soil

• ~25% of world’s chernozems are in Ukraine

• wheat production• top: 7.0-9.1 t/hr• Ukraine: 3.49 t/hr

Substantial portion of fertilizers does not get to the crops with such a process

What if a drone could deliver a necessary portion of fertilizer exactly to a individual plant,

like Mark Watney did?

TECHNOLOGY IS NOT SUCCESSTECHNOLOGY IS A KEY TO SUCCESS

QUESTIONS?

@dmalenkowww.dmalenko.org

dmalenko@rollapp.com

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