Germany – Opportunities and Potentials

1. Maribor 21. November 2012 Germany – Opportunities and Potentials

2. Germany at a Glance Slovene German Business Relations Key Sectors in Germany How to Find a Partner?

3. Germany at a Glance Slovene German Business Relations Key Sectors in Germany How to Find a Partner?

4. Typical German?

5. Leading Economy Quality of Life Global Player Secure Investment Framework High Productivity Competitive Tax Conditions Qualified Workforce Innovative Power Inviting Incentives First-Class Infrastructure

6. Bayern Baden-Württemberg DEUTSCHLAND Hamburg Berlin Mecklenburg- Vorpommern Brandenburg Hessen Niedersachsen Bremen Nordrhein- Westfalen Rheinland- Pfalz Saarland Sachsen- Anhalt Thüringen Schleswig-Holstein Sachsen

7. Germany at a glance • Slow down yes…… slump no • Germany is also hit by the euro crisis • Short-term economic outlook is therefore quite modest with growth rates around 1 percent in both 2012 and 2013. • The fundamentals are still positive: Interest rates are extremely low, and the labor market is robust.

8. Germany at a glance • Domestic consumption supporting growth • Construction actively remains at a high level • The big “If” is that the euro crisis does not escalate • Long way out of the euro crisis • Tough recovery for the European outlook

9. Germany at a glance Quelle Commerzbank, Statistisches Bundesamt Deutschland

10. Germany at a glance Share of Total GDP and Population in the European Union 2010

11. Germany at a Glance Slovene German Business Relations Key Sectors in Germany How to Find a Partner?

12. Slovenian-German Economic Relations German-Slovenian foreign trade balance (in 1000 EUR) Quelle: Statistikamt Slowenien

13. Quelle: Statistikamt Slowenien

14. Slovenian-German Economic Relations Market share of German federal states in Slovenian imports from Germany Market share of German federal states in Slovenian exports to Germany Quelle: Statistikamt Slowenien

15. Germany at a Glance Slovene German Business Relations Key Sectors in Germany How to Find a Partner?

16. Key Sectors in Germany • Automotive • Machinery & Equipment • Metal and Metal Processing Industry • Food & Beverage, Organic Food • ICT Industry • Energy & Environmental Industry • Construction Industry

17. Emerging Industries Energy Efficiency Sector Creating the Future for a Clean Environment • Industry & Market Numbers • market leader in energy efficiency technologies • turnover of about EUR 67 billion per year • double-digit growth rates expected in coming years • 1/3 of companies active in the sector realize profit margins of over 10% • average workforce growth of about 15% per year

18. Construction industry • The construction industry is one of the most important sectors of the German economy • Germany’s Construction Industry: Strong Growth Followed by Stagnation • Construction Work on Existing Buildings Dominates • Total market volume: 312,7 bil EUR • Residencial construction: 179 bil EUR • Energy related modernization: 57,5%

19. Safety & Security Industry "Made in Germany" for Future Security Industry & Market Numbers • Largest market in Europe • High market potential with industry turnover of 20.3 billion Euro in 2008 • Industry forecast to record 55% growth by 2015 • IT security will grow by 124% within the next six years • Identification, authentication, and biometrics revenue forecast to increase by 87% by 2015 • Market for protection technologies against theft, burglary, and assault expected to grow by 33% through 2015 • Record IT security hardware and software spending of 2.3 billion Euro in 2008

20. ICT Industry Germany's ICT Industry: Shaping Europe’s Digital Future Industry & Market Numbers • Europe’s largest ICT market in terms of revenue volume (20 percent of total EU market volume). • With 5.5% global market share, German ICT industry is ranked fourth worldwide. • Turnover of EUR 137 billion • Germany’s ICT industry employs a workforce of around 850,000

21. ICT Industry Germany's ICT Industry: Shaping Europe’s Digital Future Growth Areas IT Security: The market for IT security is growing due to steadily increasing risk potential Cloud Computing: There is significant international demand for secure and cost-effective cloud solutions and services Smart Grids: Increasing importance of sustainable energy supply offer great opportunities for smart grid adoption and ICT solutions for smart grid.

22. Automotive Industry Driving Performance through Technology Industry & Market Numbers • Europe's largest automobile market • 5.5 million passenger vehicles manufactured and 2.9 million registrations in 2010 • Average manufacturer and supplier turnover of more than EUR 300 billion • 30 final assembly plants with a production capacity of over one third of total automobile production in Europe • The German auto industry invested EUR 19.6 billion in R&D in 2010 (a 3.1 percent increase on the previous year) • 3,650 patents per year (= 10 patents a day

23. Automotive Industry • Market Potential • Germany has a very competitive auto parts market with many domestic and foreign manufacturers • Suppliers are mostly specialized • New Automotive Deal • Consolidation process-oriented sectors • Just in Time  Just in Sequence • After sales market is expected to grow in the coming years

24. Automotive Industry Smart Mobility Electric mobility is the technology of the future but existing technologies must be optimized Opportunities for Automotive Suppliers The demand for new technology for this market is enormous Vehicle manufacturers require core components such as batteries and electric motors for electric.

25. Machinery & Equipment Industry Market Leadership Powered by German Engineering Industry & Market Numbers • Annual turnover 173 billion Euro • Growth rates between of 7 and 12 percent • Domestic market: 87 billion Euro • Highly innovative sector producing 28% of the worlds mechanical engineering patents • Technical fields with high import rates: drive technology (10.7%), air technology (9.3%), valves and fittings (6.7%), construction equipment (6.2%)

26. Machinery & Equipment Industry Market Potential • Imports: EUR39.1 billion in 2009 • One of the fastest growing industry sectors in Germany • High domestic demand from industries like the automotive, electronics, chemicals, food as well as the renewable energies sector • very attractive to foreign companies seeking to sell their high-tech products and components abroad .

27. Metal & Metal Processing Industry Industry & Market Numbers • Metal and metal products imports totaled EUR 68.7 billion in 2010 • Sixty two percent of the imported metal products came from the European Union • In 2009, 15 million tons of steel were processed in the production of metal products • The non-ferrous metal industry registered sales of EUR 43.5 billion in 2010

28. Plastics Industry Germany is Europe's No.1 Plastics Location Industry & Market Numbers • Leadership in plastics production and consumption, export and import, and in investment in fixed assets and expenditure in R&D • Turnover EUR 88 billion, 7,200 companies, 440,000 employees • About 70 application-oriented university and non-university research institutes in the field of polymer and materials research in close collaboration with the plastics industry • Over 40 regional plastics clusters, innovative networks and competence centers

29. Electronics & Microtechnology Your Market for Next-Generation Technology Industry & Market Numbers • Turnover of 165 billion Euro in 2010 • Market is estimated to grow to 180 billion Euro in 2011 • Fourth largest industry segment in Germany by revenue (2010) • 12 billion Euro R&D expenses annually • Microelectronics is one of our fastest-growing industry sectors • market potential for automotive and industry electronics

30. Energy & Environmental Technologies Bioenergy Industry Solar Industry Wind Industry

31. Environmental Technologies Closed Loop Recycling and Sustainable Water Technologies Industry & Market Numbers Environmental technologies is one of the most important economic sectors in Germany Turnover: 85 billion Euro in 2008 German World Market Share for Recycling Technology: 24% (Material Separation devices have 64% of the world market) More than 320,000 Employees

32. Consumer Goods & Retail Large Markets Create Major Opportunities Industry & Market Numbers • Europe's leading consumer market with 82 million affluent consumers • Private spending remained stable in 2008 at EUR 1,854 billion • Private spending in the leisure and apparel segments is permententlygrowing due to higher private income • Germany's consumer electronics market fasted growing segment

33. Food & Beverage Industry Supplying the Full Spectrum of Consumer Needs Industry & Market Numbers • Germany is Europe's second largest food producer with sales of 149.5 billion Euro in 2010 • Germany is a net importer of food & beverage products • Largest sector sub-segments in 2009: meat (22.7%), dairy (15.4%), confectionery food (9.4%), and baked goods (8.7%) • Major national and international players, including Dr. Oetker Group, Südzucker AG, Vion Food Group, Kraft Foods Deutschland GmbH, Nestlé, etc

34. Food & Beverage Industry Supplying the Full Spectrum of Consumer Needs Market trends • High demand for health and wellness as well as functional food products to prevent or overcome conditions including diabetes, high blood pressure and cholesterol • Movement for organic food and “free of” foods e.g. lactose and gluten-free products • Driving demand for highly convenient foodstuffs including ready-to-eat meals, frozen foods, desserts, and baked goods • Ethnic foods, beauty foods and fair trade products

35. Market Potential • Large size of the German market in the food and beverage sector are very attractive to exporters worldwide • German consumers are generally well informed. • They expect high quality and low prices for their food and • beverage products

36. Market Access • The German food & beverage industry is highly fragmented and competitive. • Exporting companies should be aware that product packaging is very important to German consumers since they are highly environmentally conscious • Manufacturers, importers, distributors and retailers must make sure that their packaging materials for their food products comply with the EU's and Germany's domestic regulations in terms of recycling and disposal. There are several dual system companies licensed in Germany offering various waste disposal schemes

37. Germany at a Glance Slovene German Business Relations Key Sectors in Germany How to Find a Partner?

38. Erfolgsfaktoren auf ausländischen Märkten Gute Kontakte/Netzwerke Wahl der richtigen Partner auf dem globalen Markt Verlässliche Geschäftspartner Umfassende Marktkenntnisse Preis- Leistungs- Verhältnis Service Produktqualität Konkretes wirtschaftliches Konzept für den Zielmarkt Technologischer Vorsprung/ Führung Finanzierung????

39. Sales in Germany Marketing-Mix Quelle: AHK

40. Retail and Wholesale Distribution channels vary considerably depending on product and industry

41. How to find a partner? The German Chamber Network "AHK – wellconnectedworldwide"

42. How to find a partner? "AHK – wellconnectedworldwide" AHKs asmemberorganizations AHKs as official representation of German industry and commerce AHKs as service providers to companies

43. How to find a partner? AHK Slovenia – Your bridge to the German Market We… Provide information Solve problems Offer service Establish contacts

44. . Market entryto Germany International matchmaking events Addressresearch Investing in Germany e-trade-center.com

45. . Market Information

46. . Online Marketplaces

47. . Legal and tax services Information about German companies Debt collection in Germany Legal information about Germany Employees Commercial agents Starting a business in Germany Tax services for Germany German VAT returns Reclaim of German VAT

48. Our Partners in Germany

49. . National Association of German Commercial Agencies and Distribution VBI German Association of Consulting Engineers The BGA, the Federation of German Wholesale, Foreign Trade and Services, is the leading organization for the wholesale, foreign trade and service sector in the Federal Republic of Germany.

50. One of the most important marketing tools are fairs and exhibitions The AHK Slovenija website should be your first stop when looking for information on trade shows in Germany www.dihk.si Quelle: Austellungs- und Messeauschuss der Deutschen Wirtschaft