Go Europe! Prime Investment Location Eastern Germany

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1 Chris Schmidt - istockphoto Go Europe! Prime Investment Location Eastern Germany Michael Pfeiffer Chief Executive Germany Trade & Invest

2 About Germany Trade & Invest Germany Trade & Invest is the foreign trade and inward investment promotion agency of the Federal Republic of Germany. The agency is promoted by the Federal Ministry of Economics and Technology and the Federal Government Commissioner for the New Federal States in accordance with a German Parliament resolution. Germany Trade & Invest supports export-oriented companies based in Germany with comprehensive foreign market information. promotes Germany abroad as a high-performance economic and technology location in order to attract investors who create/secure jobs in Germany. consults potential foreign investors in terms of their settlement plans and realizes the required project management support in Germany. An additional special focal point of activity lies in promoting the economic development of the new federal states including Berlin. 2

3 South Korean-German Economic Relations In 2010, Germany imported primarily Electronics and Machinery from South Korea. Imports from South Korea to Germany ( , in EUR m) Imports from South Korea to Germany by sector (2010) 12,000 11,100 10,000 9,033 9,057 9,021 Electronics 38% 8,000 7,586 6,000 Others 45% 4,000 2, Vehicles & Parts 4% Chemicals 4% Electrical Engineering 4% Machinery 5% Source: Federal Statistical Office 2011; GTAI

4 South Korean-German Economic Relations In 2010, Germany exported primarily Machinery and Vehicles Parts to South Korea. German Exports to South Korea ( , in EUR m) German Exports to South Korea by sector (2010) Electronic, 4.6% Others, 14.0% Metal products, 2.0% Machinery, 29.8% Electrical engineerin g, 7.2% Measureme nt and control technology, 7.4% Chemicals, 16.4% Vehicles Parts, 18.6% Source: Federal Statistical Office 2011; GTAI

5 FDI Stocks in Germany South Korea ranks 15th concerning FDI Stocks in Germany. Total FDI Stocks ranked in Germany by country of origin (2009, in EUR m) South Korean FDI Stocks in Germany ( , in EUR m) Netherlands Luxemburg 70, ,621 5,000 4,500 4,340 4,573 4,315 UK France USA 40,004 39,965 36,133 4,000 3,500 3,881 3,750 Sweden 19,849 3,000 2,905 Japan Spain South Korea 14,174 9,979 4,415 2,500 2,000 1,872 Canada China Singapore 2, ,500 1,000 India Taiwan ,000 80, , Bundesbank,

6 South Korean-German Economic Relations One third of all South Korean investors invested in the Automotive, Industrial Machinery & Equipment industry since South Korean Projects in Germany by Transportation, Storage & Logistics 4% Healthcare, Pharma, Biotechnology 7% Chemicals, Plastics, Paper 15% Sector ( ) Consumer Goods (incl. Food & Beverages) 2% Textiles 2% Business & Financial Services 2% Automotive, Industrial Machinery & Equipment 32% South Korean Projects in Germany by Research & Development 4% Design, Development & Testing 9% Headquarters 13% Business Activity ( ) Educatio n & Training 2% Business Services 2% Logistics, Distribution & Transportation 2% Retail 2% Sales, Marketing & Support 47% ICT & Software 17% Electronics & Semiconductors 19% Manufacturing 19% Source: fdi Markets, Sep Note: FDI projects refer to greenfield and expansion investment projects. M&A projects are not included. 6

7 South Korean-German Economic Relations Samsung Electronics is the strongest South Korean firm in Germany with a turnover of EUR 6.1 billion. Ten important South Korean companies in Germany by turnover (2010, in EUR m) 3,000 6,138 2,500 2,000 1,900 1,854 1,500 1,000 1, Source: Bureau van Dijk Electronic Publishing, Markus Datenbank, May 2011 Note: *latest data available refers to 2009; only companies listed in the commercial register 7

8 Eastern Germany: Advantages as a Business Location The strengths and potential inherent in Eastern Germany provide investors with numerous arguments to choose Germany as a Business Location. Leading Economy Quality of Life Global Player Secure Investment Environment 9 3 High Productivity Competitive Tax Conditions 8 4 Excellent Workforce Inviting Incentives Power of Innovation First-Class Infrastructure 8

9 Leading Economy Germany is Europe s largest market. Share of Total GDP and Population in the European Union (2010) GDP (in EUR bn) Share of Total GDP (EU 27) Population in m Share of Total Population (EU 27) Germany 2,499 20% 82 16% France 1,948 16% 65 13% UK 1,698 14% 62 12% Spain 1,063 9% 46 9% Netherlands 590 5% 17 3% Poland 354 3% 38 8% Czech Republic 146 1% 11 2% Slovak Republic 66 1% 5 1% USA 11, Japan 4, EU 27 12, Eurozone 9, Note: Czech Rep. and France GDP data are forecasts; Source: Eurostat 2011, US Census Bureau 2011, Japanese Statistics Bureau

10 Excellent Workforce Germany has the largest pool of employees in high-tech industries in Europe. Employees in High-Tech Industries and Cutting-Edge Technologies in the Manufacturing Sector (in % of Total Employment, 2009) Germany 10.2 Czech Republic 9.5 Slovak Republic 8.6 Hungary 7.9 EU Poland 4.8 UK 3.8 Spain 3.7 Netherlands Source: Eurostat

11 Office Rents Germany provides a competitive environment for investors. Office Rents (Total occupancy cost in USD/m2 per year, 2010) Bangkok Berlin Bratislava Hamburg Taipei Prague Warsaw Beijing Rome Seoul Zurich Hong Kong Rio de Janeiro London City Mumbai ,124 1,341 1, ,000 1,200 1,400 1,600 Quelle: CB Richard Ellis

Quality of Life Germany is known for its straight and efficient business environment, but

Scenic Attractions 2,389 km of beautiful coastline, 20 mountain ranges, 125 natural

Cultural Devotion 80 operas, world renowned symphonic orchestras, 5,600 museums and over

with more than 5,000 different kinds of beer along with sausages and more than 300

Porsche, BMW, Mercedes and Audi, luxury vehicle manufacturers all situated in Germany

8 million active tennis players and 646 golf courses Living History More than 700 medieval

12 Quality of Life Germany is known for its straight and efficient business environment, but has a lot more to offer besides ideal investment conditions. Scenic Attractions 2,389 km of beautiful coastline, 20 mountain ranges, 125 natural landscape protection areas and 10,200 km of bicycle tracks to ride through all of it Cultural Devotion 80 operas, world renowned symphonic orchestras, 5,600 museums and over 550 annual classical festivals attracting million of people Hearty Cuisine 1,250 breweries with more than 5,000 different kinds of beer along with sausages and more than 300 different kinds of bread Recreational Activities 12,000 km of German Autobahn alongside Porsche, BMW, Mercedes and Audi, luxury vehicle manufacturers all situated in Germany Sporting Enthusiasm 26,000 soccer clubs with 6.3 million active players, 1.8 million active tennis players and 646 golf courses Living History More than 700 medieval castles and magnificent palaces, the longest castle wall within Europe and cities with chronicles reaching back to Roman times Picture Credits: German Tourism Association

Industries and Target Segments Fast growing sectors in the market for

Photovoltaics Germany is the largest PV-market in the world and

Solar Thermal Energy Germany is the largest market for solar thermal

Energy Efficiency Germany is one of the leading markets worldwide in

Resources & Bioenergy Germany has the largest European market for

Geothermal Energy The German market for geothermal energy is one of

Wind Energy Germany disposes of the largest installed wind energy

13 Industries and Target Segments Fast growing sectors in the market for renewable energies formed a new picture of Germany. Photovoltaics Germany is the largest PV-market in the world and disposes of one of the most innovative R&D networks. Solar Thermal Energy Germany is the largest market for solar thermal energy in Europe and the second largest in the World. Energy Efficiency Germany is one of the leading markets worldwide in the field of energy efficiency especially for buildings Renewable Resources & Bioenergy Germany has the largest European market for bio-chemicals and is the leading producer of biofuels. Geothermal Energy The German market for geothermal energy is one of the most dynamic of the World estimated to decuple by Wind Energy Germany disposes of the largest installed wind energy capacity in the World. The future lies in field of off-shore wind energy. Energy Storage & Fuel Cells Germany is the No. 1 market for fuel cells in the EU. 13

Industries and Target Segments Mechanical and electronic technologies represent 50

14 Industries and Target Segments Mechanical and electronic technologies represent 50 percent of all exports and more than 34 percent of all foreign direct investment in Germany. 1 Electronics With a market share of over 35 percent, German semiconductors dominate the European market. Automotive Industry Germany offers the biggest market potential and is home to an excellent highly-skilled labor force. Machinery & Equipment Germany is the world s leading exporter and reaches a global market share of 19 percent. Aerospace Industry With an average growth of 9 percent the German aerospace industry is one of the most dynamic industry sectors. Maritime Technologies The German shipbuilding industry has a globally leading technological position and its suppliers are among the world s export champions. Source: 1 Fraunhofer Verbund für Mikroelektronik 14

Industries and Target Segments Market size and innovation potential within the German services and consumer goods

1 Information & Communications Technology (ICT) Germany s ICT and E-Commerce industries are market leaders in Europe

4 Consumer Goods/Retail Europe s largest consumer market with more than 82 million consumers and private spending on

Business Services Food & Beverages 2 Annual employee growth in Germany s contact center at over 15 percent; over 6,000

5 With an annual turnover of EUR 147 billion, Germany is Europe s largest food and beverage producer.

Transportation & Logistics Tourism & Leisure 3 Annual growth rate of around 8.

15 Industries and Target Segments Market size and innovation potential within the German services and consumer goods markets offer vast potential for investors. 1 Information & Communications Technology (ICT) Germany s ICT and E-Commerce industries are market leaders in Europe with sales of EUR 146 billion (ICT) and EUR billion (E-Commerce) respectively. 4 Consumer Goods/Retail Europe s largest consumer market with more than 82 million consumers and private spending on consumer goods totaling total EUR billion. Business Services Food & Beverages 2 Annual employee growth in Germany s contact center at over 15 percent; over 6,000 service centers with more than 450,000 agents. 5 With an annual turnover of EUR 147 billion, Germany is Europe s largest food and beverage producer. Current growth segments include convenience, organic, and functional food products. Transportation & Logistics Tourism & Leisure 3 Annual growth rate of around 8.5 percent with a total turnover of EUR 204 billion in 2007; easy access to all European markets thanks to favorable central location in Europe million tourists traveled to Germany in 2007, with million registered overnight stays. The number of overnight stays is increasing steadily. Source: 1 onlinebewerbung.de - Fotolia.com Darryl Brooks - Fotolia.com 4 Suprijono Suharjoto istockphoto 5 fogostudio 6 DZT/Hans Peter Merten 15

Industries and Target Segments Germany provides foreign investors with an attractive general framework in the chemical and healthcare

Investors benefit from a unique chemical park concept with a range of services and professional management.

Between 2000 2004, 30% of all worldwide bio patent applications at the Patent office in Munich came from Germany.

paper and glass/ceramic industry) The paper industry is number one in terms of production in Europe.

4 Medical Devices Industry Germany is the third largest market for medical devices worldwide and leading in Europe.

2 New Materials/ Composite Materials Composite materials and composite material systems have gained in importance.

16 Industries and Target Segments Germany provides foreign investors with an attractive general framework in the chemical and healthcare industry. Chemical Industry and Polymers Germany is the biggest market for chemical products in Europe. Investors benefit from a unique chemical park concept with a range of services and professional management. 3 Red Biotech With nearly 500 dedicated biotechnology firms Germany is home to more biotech companies than any other country in Europe. Between , 30% of all worldwide bio patent applications at the Patent office in Munich came from Germany. 1 Chemicals-Related Process Industry (e.g. paper and glass/ceramic industry) The paper industry is number one in terms of production in Europe. After the USA, China, Japan and Canada it ranks fifth in the world. 4 Medical Devices Industry Germany is the third largest market for medical devices worldwide and leading in Europe. Competitive advantage: decade long experience in the art of engineering, creativity and enthusiasm for innovation. 2 New Materials/ Composite Materials Composite materials and composite material systems have gained in importance. There is an increasing demand for light, lowabrasive and temperature-resistant polymers, metals and ceramics. 5 Pharmaceuticals Industry Germany is Europe s largest single market for pharmaceuticals. The market is attractive due to Germany s stable and broad health system. Furthermore, Germany is open to both innovation and lowpriced providers. Source: 1 Gustavo Alabiso/ Visum, Papierfabrik Palm, VfA Lilly Pharma; 4 BVmed B.Braun Melsungen AG; 5 VfA Takeda Pharma 16

17 Contact Thank you for your attention! Michael Pfeiffer Chief Executive Germany Trade & Invest Foreign Trade and Inward Investment Promotion Agency Friedrichstraße Berlin Germany T. +49 (0) F. +49 (0) Villemombler Straße Bonn Germany T. +49 (0) F. +49 (0) Germany Trade & Invest All information provided by Germany Trade & Invest has been put together with the utmost care. However we assume no liability for the accuracy of the information provided. 17

Doing Life Science Business in Germany Illinois Life Sciences & Technology Park Skokie, Illinois June 1, 2012

Doing Life Science Business in Germany Illinois Life Sciences & Technology Park Skokie, Illinois June 1, 2012 Chris Schmidt - istockphoto Illinois Life Sciences & Technology Park Skokie, Illinois June 1, 2012 Media Acclaim for a Flourishing Economy Strong economic performance Sound financial management The Economist,