Germany – Opportunities and Potentials  Maribor  3 December 2015

Germany at a Glance Key Sectors Why Germany? Who we are? Slovene German Business Relations

Germany at a Glance Key Sectors Why Germany? Who we are? Slovene German Business Relations

Germany From “the sick man of Europe” (The economist, ) To “Europe´s engine!” (The economist, ) To “Germany´s Economic Model: what it offers to the world” (The economist, )

Germany: One of the most productive economies in OECD Vocational education More important still to Germany's industrial strength is the country's education system. Lessons learned Mittelstand and family business: the backbone of the German industry Successful model of export and investment support sheme

Germany: Strengths of the market Market size Germany has the largest economy in Europe and is Europe´s largest domestic market Easy access English widely spoken and accepted as business language Situated at the heart of Europe with instand access to established markets and emerging markets in Europe

Doing business in Germany Mario Ingo Soos Deutsche Botschaft Laibach Why Germany?

How foreign investors view Germany’s future 54% expect Germany to become even more attractive to investors over the next three years Becoming increasingly attractive for innovation activities and highly skilled talent How surveyed investors see Germany in the year 2020: Global leadership in environmental technology Centre for research and development Model for entrepreneurially minded society Source: Ernst & Young

“Invented in Germany” High Tech and Innovation: Innovation clusters: close cooperation between research institutes, the business sector and universities 2008: more than 11,000 European patents (twice as many as France and the United Kingdom combined)‏ EU leader in patents that are also registered in the EU, USA and Japan (“triad patents”)‏ German business sectors – global leaders in terms of market size and growth potential: information and communication technology chemicals and plastics transport and logistics photovoltaics medical technology Source: GTaI Picture: Hahn Meitner Institute Berlin

Germany at a Glance Key Sectors in Germany Why Germany? Who we are? Slovene German Business Relations

Germany at a glance Economy boosted by construction and consumption Domestic economy intact spending instead of saving Manufacturing industry recovery based on exports ….. …… also thanks to exchange rate Consumer industries remain reliable supports

Germany at a glance Construction: booming - now more than ever Consumption paving the way Consumer goods in demand everywhere Product innovation gaining in importance Concerns about demand increasing Investment intentions almost stable Companies want to continue recruiting… …but shortage of skilled workers at record levels

Germany at a glance Source: DIHK- Forecast, GTAI, Statistisches Bundesamt Deutschland Indicators (Percentage change on preceding year) 2014 Forecast 2015 Forecast 2016 GDP (real) 1,61,71,3 GDP by expenditure (real): Private consumption expenditure 0,92,01,5 Machinery and equipment 3,54,02,0 Construction 2,91,02,0 Domestic Demand 1,92,12,2 Export -Growth rate 4,05,03,5 Import -Growth rate 3,76,04,5 GDP per Head (EUR) Unemployment rate in % 6,76,46,6

Germany at a Glance Key Sectors in Germany Why Germany? Who we are? Slovene German Business Relations

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

Renewable Energies & Resources - Photovoltaics - Energy Efficiency - Renewable Resources and Bioenergy - Energy Storage and Fuel Cells - Solar Thermal Energy - Geothermal Energy - Wind Energy - Waste to Energy, Recycling and Sustainable Water Resource Management Chemicals & Healthcare - Chemical Industry and Polymers - Chemicals-Related Process Industry - New Materials/ Composite Materials - Red Biotech - Medical Devices Industry - Pharmaceuticals Industry Service Industries - Consumer Goods/Retail - Food and Beverages - Information and Communications Technology - Business Services - Transportation and Logistics - Tourism Mechanical & Electronic Technologies - Electronics and Microtechnology - Machinery and Equipment - Transportation and Technologies - Applied Sciences and Technology Transfer Growth Industries Germany Trade & Invest

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

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 bill EUR Residential construction: 179 bill EUR Energy related modernization: 57,5% Construction industry

ICT Industry Germany's ICT Industry: Shaping Europe’s Digital Future 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 Industry & Market Numbers

ICT Industry Germany's ICT Industry: Shaping Europe’s 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

Industrie 4.0 Germany’s continued role as one of the world’s most competitive and innovative manufacturing industry sectors. Germany’s technological leadership in industrial production research and development. SMART PRODUCTS SMART INDUSTRY SMART FACTORY

Automotive Industry Driving Performance through Technology Europe's largest automobile market 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 invest annually EUR 19.6 billion in R&D 3,650 patents per year (= 10 patents a day9 Industry & Market Numbers

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  <Industry 4.0 After sales market is expected to grow in the coming years 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.

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

Machinery & Equipment Industry Imports: EUR39.1 billion 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

Metal & Metal Processing Industry Metal and metal products imports totaled EUR 68.7 billion Sixty two percent of the imported metal products came from the European Union The non-ferrous metal industry registered sales of EUR 43.5 billion Industry & Market Numbers

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

Electronics & Microtechnology Your Market for Next-Generation Technology Turnover of 165 billion Euro Market is estimated to grow to 180 billion Euro Fourth largest industry segment in Germany by revenue 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

Energy & Environmental Technologies Bioenergy Industry Solar Industry Wind Industry

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 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

Consumer Goods & Retail Large Markets Create Major Opportunities Europe's leading consumer market with 82 million affluent consumers Private spending remained increasing 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

Food & Beverage Industry Supplying the Full Spectrum of Consumer Needs Germany is Europe's second largest food producer with sales of billion Euro Germany is a net importer of food & beverage products Largest sector sub-segments: 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

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

Germany at a Glance Slovene German Business Relations Why Germany? Fit for Business How to find a partner?

Slovenian-German Economic Relations German-Slovenian foreign trade balance (in 1000 EUR) Source: Statistical Office of the Republic Slovenia

1000 EUR EUR 2014 Country Import share (%) Import Country Export Export share (%) Total Total Germany Germany Italy Italy Austria Austria Croatia Croatia Hungary France France Russia

Market share of German federal states in Slovenian exports to Germany Market share of German federal states in Slovenian imports from Germany Slovenian-German Economic Relations Source: Statistical Office of the Republic Slovenia

Germany at a Glance Slovene German Business Relations Why Germany? Who we are? Key Sectors

The German Chamber Network Global network in 80 countries with 120 offices 98% of the German foreign trade 50,000 member firms 1,700 coworkers

AHKs as official representation of German industry and commerce AHKs as member organizations AHKs as service providers to companies “AHK – worldwide competent on-site”

Our Chamber: Membership Growth Founded: 2006 First bilateral Chamber of Commerce 12 Employees (German-Slovenian)

WCM ACTIVITIES Round tables with politicians Trade missions Company Visits Industry 4.0. Deutschlandforum Best Practice Meetings TOP International Business Drink Trade Fairs Conferences Symposia Summer picnic Der Deutsche Ball

. OUR INTERNATIONALIZATION SERVICES Information about German companies Debt collection in Germany Legal information about Germany Commercial agents Slovene Pavilions at Trade Fairs Starting a business in Germany and Slovenia Tax services for Germany and Slovenia German VAT returns Fact-Finding Missions to Germany Workshops Market Entry Germany

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