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

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

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

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 Indicators20102011 2012 Forecast GDP3,73,00,8 Private consumption expenditure0,61,51,2 Government final consumption1,71,21,0 Gross fixed captial formation (GFCF)5,56,51,6 GFCF in machinery and equipement10,58,32,0 GFCF in construction2,25,41,0 Export (Mrd. EUR)959.4791.038.1561.074.492 -Growth rate13,78,23,5 Import (Mrd. EUR)806.164864.208903.097 -Growth rate11,77,24,5 GDP per Head (EUR)30.554 Unemployment (in Mil.)3,242,982,83 Employment (change in thousand)191541250

10. Germany at a glance Share of Total GDP and Population in the European Union 2010 GDP (in EUR billion) Share of Total GDP (EU-27) Population (in million) Share of Total Population (EU-27) GERMANY2.47720%8216% France1.93316%6513% UK1.69714%6212% Spain1.0639%469% Netherlands5885%173% Poland3543%388% Czech Rep.1451%112% Slowak Rep.661%5 USA10.957 309 Japan4.122 128 EU-2712.284 501 Eurozone9.170 331

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. 1000 EUR 2011 1000 EUR 2011 Country Import share (%) Import Country Export Export share (%) Total10022.158.543Total20.477.552100 Germany18,844.174.078Germany4.387.77321,43 Italy18,294.052.888Italy2.470.51212,06 Austria11,722.596.669Austria1.704.9458,33 France4,761.056.066France1.402.8556,85 Croatia3,89862.603Croatia1.375.5656,72 Netherlands3,28727.570Hungary619.7193,03 Serbia1,87414.888Serbia597.3522,92 Russia1,74386.539Russia542.9772,65

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

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

16. Key Sectors in Germany Automotive Automotive Machinery & Equipment Machinery & Equipment Metal and Metal Processing Industry Metal and Metal Processing Industry Food & Beverage, Organic Food Food & Beverage, Organic Food ICT Industry ICT Industry Energy & Environmental Industry Energy & Environmental Industry Construction 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. The construction industry is one of the most important sectors of the German economy Germanys 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% Construction industry

19. Safety & Security Industry "Made in Germany" for Future Security 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 Industry & Market Numbers

20. ICT Industry Germany's ICT Industry: Shaping Europes Digital Future Europes 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 Germanys ICT industry employs a workforce of around 850,000 Industry & Market Numbers

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

22. Automotive Industry Driving Performance through Technology 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 Industry & Market Numbers

23. 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 Automotive Industry

24. 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 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%) Industry & Market Numbers

26. Machinery & Equipment Industry 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. Market Potential

27. Metal & Metal Processing Industry 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 Industry & Market Numbers

28. Plastics Industry Germany is Europe's No.1 Plastics Location 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 Industry & Market Numbers

29. Electronics & Microtechnology Your Market for Next-Generation Technology 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 Industry & Market Numbers

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

31. Environmental Technologies Closed Loop Recycling and Sustainable Water Technologies 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 Industry & Market Numbers

32. Consumer Goods & Retail Large Markets Create Major Opportunities 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 permentently growing due to higher private income Germany's consumer electronics market fasted growing segment Industry & Market Numbers

33. Food & Beverage Industry Supplying the Full Spectrum of Consumer Needs 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 Industry & Market Numbers

34. Food & Beverage Industry Supplying the Full Spectrum of Consumer Needs 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 Market trends

35. 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 Market Potential

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

39. Sales in Germany Marketing-Mix Quelle: AHK Marketing ToolsVery importantLess importantunimportant Fairs63289 Presentations62299 Fact-Finding Missions612910 Brochure / Catalogs434710 Direct Marketing(Mailing)334522 e-marketing264925 Advertisement245125

40. Retail and Wholesale Distribution channels vary considerably depending on product and industry Line of BusinessRecommendation textile industryAgents food and beverageWholesale, agent metal products, automotive, mechanical engineeringDirect Sales, agent automotive, mechanical engineeringSubsidary

41. How to find a partner? The German Chamber Network "AHK – well connected worldwide"

42. How to find a partner? AHKs as official representation of German industry and commerce "AHK – well connected worldwide" AHKs as member organizations 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 entry to Germany International matchmaking events Address research e-trade-center.com Investing in Germany

45. . Market Information

46. . Online Marketplaces

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

48. Our Partners in Germany

49. . 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. National Association of German Commercial Agencies and Distribution VBI German Association of Consulting Engineers

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

51. Information Center Do you have further questions about the German Market? Contact us directly. We will be glad to answer your questions.

52. Gertrud Rantzen Predsednica Telefon: +386 252 88 63 E-Mail: gf@ahkslo.si http://slowenien.ahk.de