1. Doing Business in Germany and Europe Facts, Opportunities, Challenges Tuesday, June 18 th, 2013 and Wednesday, June 19 th, 2013 Petroleum Club of Houston, Houston, Texas Acenar, San Antonio, Texas

2. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 2 Bavaria: Partner for Business Invest in Bavaria: Business promotion agency of the State of Bavaria  First point of contact for interested companies in case of setting up a new business or expanding present facilities in Bavaria  One-stop service for investors  Represented globally with 24 offices  Cost-free assistance, fully confidential  Assistance in partnering

3. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 3 Invest in Bavaria: Tailor-made information for investors Full service for your company: comprehensive | customized | confidential | free | world-wide Contacts Site search Information > Market information > Branch information > Identification of location > Site visits > Contacts to partners > Contacts to networks 1 2 3 Bavaria: Partner for Business

4. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 4 Bavaria: Invest in Bavaria - References

5. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 5 Bavarian U.S. Offices for Economic Development, LLC West Coast Division 388 Market Street, Suite 1050, San Francisco, CA Tel.: +1.415.362.1001 Email: sanfrancisco@bavaria.org Internet: www.bavaria-westcoast.com Bavaria: Partner for Business in USA (West)

6. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 6 Bavaria: Business Hub In the Center of Europe

7. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 7 Bavaria: Outstanding Infrastructure International Airport Munich  220 destinations to 67 countries in the world  38 million passengers in 2012  Second largest airport in Germany  Best airport in Europe (World Airports Award 2010 and 2011)  Second best freight airport in the world (Air Cargo Excellence Survey 2008) International Airport Nuremberg  4 million passengers (2011)  Second largest airport in Bavaria (No. 10 in Germany)

8. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 8 Bavaria: A Thriving Economy Source: Creative Knowledge Cities, Marina van Geenhuizen and Peter Nijkamp, 2012 (http://books.google.com/books?hl=en&lr=&id=Jh9MHw1N8c4C&oi=fnd&pg=PA333&dq=IKM+2008+socio+econo mic+characteristics+germany&ots=YyyHu9Oc7E&sig=17kz9mmYfmz5iFhdWarHolR4pg0#v=onepage&q=IKM%2 02008%20socio%20economic%20characteristics%20germany&f=false)

9. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 9 Bavaria  Population: 12,400,000 inhabitants 15% of German inhabitants  Area : 27,200 sqm 20% of Germany Texas  Population: 26,100,000 inhabitants 8 % of American inhabitants  Area: 268,580 sqm 2nd largest State in the US Texas and Bavaria: Demographics and Geography Sources: -Bayerns Wirtschaft in Zahlen http://www.stmwivt.bayern.de/ -Statistisches Bundesamt https://www.destatis.de/DE/Startseite.html -Bureau of Labor Statistics http://www.bls.gov/eag/eag.tx.htm -Bureau of Economic Analysis http://www.bea.gov/

10. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 10 Texas and Bavaria: Strong Business Locations 2011 Stable Unemployment rate 3.7 % (Country average 6.7%) 6.5 % (Country average 7.5%) Productive GDP $ 580 bill. (16.10% of Country) $ 1,150 bill. (7.67% of Country) Competitive Export Volume $ 208 bill. (14.75 of Country) $ 251 bill. (16.74 of Country) Prosperous GDP per Capita $46,804 (Country average $ 44,021) $ 44,058 (Country average $ 48,112) Sources: -Bayerns Wirtschaft in Zahlen http://www.stmwivt.bayern.de/ -Statistisches Bundesamt https://www.destatis.de/DE/Startseite.html -Bureau of Labor Statistics http://www.bls.gov/eag/eag.tx.htm -Bureau of Economic Analysis http://www.bea.gov/

11. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 11 Bavaria: Favourite Tourist Destination  Germany’s favourite tourist destination  Unmatched leisure and recreation opportunities  Breathtaking landscapes, historic cities, rich culture  Safe, secure, financially stable

12. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 12 Bavaria: Industry sectors and networks Mobility Automotive Engineering Railway Technology Logistics Aerospace Satellite Navigation Material Development New Materials Chemicals Nanotechnology Man and Environment Biotechnology Medical Technology Energy Technology Environmental Technology Forestry and Wood Food and Nutrition Information and Electrotechnology ICT Sensor & Power Electronics Mechatronics / Robotics Services and Media Financial Services Media

13. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 13 Bavaria: Industry sectors and networks Mobility Automotive Engineering Railway Technology Logistics Aerospace Satellite Navigation Material Development New Materials Chemicals Nanotechnology Man and Environment Biotechnology Medical Technology Energy Technology Environmental Technology Forestry and Wood Food and Nutrition Information and Electrotechnology ICT Sensor & Power Electronics Mechatronics / Robotics Services and Media Financial Services Media Texas and Bavaria: Opportunities for Cooperation

14. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 14 Bavaria: Research, innovation and development 7 Institutions of the Fraunhofer Society 3 Institutes of the Helmholtz association 11 Universities including 2 Elite Universities (LMU & TU) 17 Universities of Applied Sciences 12 Max Planck Institutes U F M H FG 10 Research and transfer centers and 9 research associations FZ UU U U U U F F F F FU F F F F F F F F F F F MM M MM M M M M M M HH H FG FZ M F FG FZ U U U  287.432 Students (2010)  3% of Bavaria’s GDP invested in research and development

15. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 15 Bavaria: Benefits Munich Stuttgart Frankfurt Dusseldorf Hamburg Berlin Hanover Erfurt Dresden State-of-the art infrastructure Easy access to Europe‘s top markets and optimal links to international markets Dedicated support and incentives for research and technology Strong partner and customer base and competitive industry networks Availability of top-level trained workforce Unrivaled level of security, stability and business-friendliness Rich cultural offerings, old traditions and unimpaired nature

16. Dr. Lucie E. Merkle, Bavarian U.S. Office, 6/18/2012 Page 16 Bavarian U.S. Offices for Economic Development, LLC West Coast Division Lucie E. Merkle, Executive Director 388 Market Street, Suite 1050 San Francisco, CA 94111, USA Tel.: +1.415.362.1001 Fax: +1.415.362.1030 Email: sanfrancisco@bavaria.org Internet: www.bavaria-westcoast.com Bavaria: Your Contact in California Facebook Twitter LinkedIn