Compared to 10 Years Ago, USA is Losing Competitiveness at the Margin vs. Its Peers e McKinsey conducted a study in 2010 that compares the USA with other countries on 20 attributes related to economic fundamentals, business climate, human capital and infrastructure. McKinsey compared current status vs. status in 2000. e We augmented the McKinsey study with 9 additional attributes across those aforementioned areas as well as government spending metrics. e Through this study, we found that America, relative to other countries, improved on none of the 29 attributes, remained the same on 9 attributes (including GDP per capita, public debt as % of GDP, public spending on healthcare, public spending on education, growth in local innovation clusters, population & demographic profile, retention of foreign-born talents, total healthcare spending and cost-adjusted labor productivity) and deteriorated on 20 (including trade surplus, national spending on R&D, industrial production, corporate tax rate, business environment, FDI, tax incentives for R&D, number of patent applications, availability of high-quality labor, higher education penetration, telecom & transportation infrastructure, etc.). www.kpob.com USA Inc. | What Might a Turnaround Expert Consider? 391 USA Ranking High in Country Attractiveness Indicators But Losing Share at the Margin... US Relative Position Key metrics “Ten YearsAgo -—S Today”——«™” Trend cE 4 Household consumption | B Vv Household consumption growth | Oo Vv GDP | | Vv GDP per capita? o =] = Stock market capitalization | | Vv Technology company market cap? | Oo Vv Industrial production Hl Oo Vv Trade as % of GDP o | Vv Trade surplus2 | | Vv National spending on R&D o i Vv Spending Government public debt as % GDP2 o a — Public healthcare spending as % of GDP? | | = Government surplus as % of GDP2 Oo | v Public expenditure on education | B — ®@ Top Ranked @ Top Quartile ™@ Average Hi Bottom Quartile Source: 1) Growth and competitiveness in the Unit