1. Germany – Opportunities and Potentials Ljubljana 15. Mai 2012

2. Vrtni palček Typical German?

3. Germany at a glance No sign of a sense of crisis Strong recovery after financial crisis continued in 2011. Dynamic GDP growth of 3.0% in 2011 Situation assessment remains excellent... … contrary to the fears in the fall Private consumption is increasingly taking over the role of the supporter of the economy

4. Germany at a glance The dynamism shown by exports in the previous 2 years continues the level of the long- term average The investment intensions of the companies remains pleasingly high Companies' willingness to recruit remains at a high level. The shortage of skilled labour is again gaining in importance as a business risk for companies

5. Germany at a glance Quelle Commerzbank, Statistisches Bundesamt Deutschland Indicators20102011Forecast GDP3,73,01,0 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

6. 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

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

8. 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

9. Quelle: Statistikamt Deutschland

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

11. 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

12. 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

13. 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

14. 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

15. Key Sectors in Germany Automotive Automotive Machinery & Equipment Machinery & Equipment Metal and Metal Processing Industry Metal and Metal Processing Industry Plastic Industry Plastic Industry Electronic & Microtechnology Electronic & Microtechnology Consumer Goods & Retail Consumer Goods & Retail Food & Beverage, Organic Food Food & Beverage, Organic Food Wood & Furniture Industry Wood & Furniture Industry Construction Industry Construction Industry

16. 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

17. 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

18. 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.

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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 permenently growing due to higher private income Germany's consumer electronics market fasted growing segment Industry & Market Numbers

25. 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

26. 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

27. 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

28. 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

30. Wood & Furniture Industry German forest are the greatest wood supplier in Europe Forest cluster and timber employ more than the automotive industry Germany is the largest furniture sales market in Europe, per capita consumption is 360 euro per person (total: 29 bil. ), ranked first in Europe; Germany imports about 14,8 bil per year German furniture sales system is highly concentrated and scale-developed; Large chains (IKEA, Höffner, XXL Lutz) are dominating the market; German consumer expect high quality for best (lowest) price;

31. 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

32. TOP Regions Ranking of the 82 Regions RegionGrade 1Frankfurt2,43 2Offenbach2,55 3Aschaffenburg2,62 4Hamburg2,65 5Köln2,65 6Stuttgart2,67 7München2,68 38Leipzig3,02 50Hannover3,1 59Berlin3,21 63Dresden3,31 Quelle: AHK

33. Requirements of the German Market Foreign companies face in the processing of the German market entry a variety of problems and challenges Market conditions Market entry costs Lack of qualified personnel Image of the own products Language and communication Problems by finding a suitable business-partner Lack of market information

34. 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

35. 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

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

37. How to find a partner? "AHK – well connected worldwide" … 80 countries..120 offices … 1.400 employees.. 50.000 member worldwide 98% of overall German trade AHK – worldwide competent on-site

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

39. . Whatever type of business you are looking for with Germany, the German-Slovene Chamber of Industry & Commerce can help. As a German Bi-lateral Chamber (AHK), we have many years of experience of finding Slovene companies the right business partner. We can assist Slovene agents to expand their range with new, innovative German products or services help and also help Slovene exporters to make contact with potential customers, wholesalers and agents in Germany. Market entry to Germany International matchmaking events Investing in Germany

40. . Legal services for Germany 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

41. 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

42. Our Partners in Germany

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

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