Chris Schmidt - istockphoto. Germany s Major Investment Partners USA

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1 Chris Schmidt - istockphoto Germany s Major Investment Partners USA

2 I. The Big Picture II. Individual Analysis of Selected Countries North America (USA) III. Contacts 2

3 I. The Big Picture External Trade Germany s Main Import Sectors are Chemicals, Machinery and Electrical Engineering. German Imports (2010) Germany s Main Import Sectors (2010) Ranking Country of Origin EUR (m) 1 China 76, Netherlands 68, France 61, USA 45, Italy 43, UK 38, Austria 34, Belgium 33, Switzerland 32, Russia 31, Czech Rep 29, Poland 28, Spain 22, Japan 22, Sweden 13, South Korea 11, India 6, Canada 4,182.7 Clothes & Accessories 3% Other Vehicles 4% Others 30% Measuring & Controlling Instruments 2% Communication Equipment 3% Food & Live Animals 6% Road Motor Vehicles 7% Chemicals 13% Machinery 12% Electrical Engineering 11% Crude Oil & Gas Metal 11% Products (incl. Non Ferrous Metals and Iron & Steel) 8% Source: Federal Statistical Office,

4 I. The Big Picture External Trade The Main Export Sectors for Germany are Machinery, Vehicles and Chemicals. German Exports (2010) Germany s Main Export Sectors (2010) Ranking Country of Destination EUR (m) 1 France 90, USA 65, Netherlands 63, UK 59, Italy 58, Austria 53, China 53, Belgium 46, Switzerland 41, Poland 38, Spain 34, Czech Rep 26, Russia 26, Sweden 19, Japan 13, South Korea 10, India 9, Canada 6,438.4 Source: Federal Statistical Office, 2011 Measuring & Controlling Instruments 3% Other Vehicles 3% Food & Live Animals 4% Others 22% Metal Products (incl. Non Ferrous Metals and Iron & Steel) 8% Electrical Engineering 10% Machinery 18% Chemicals 16% Road Motor Vehicles 16% 4

5 I. The Big Picture FDI Stocks The Bundesbank (German Central Bank) collects FDI statistics for Germany on the basis of notification requirements for German companies with foreign capital assets. Statistics include all forms of capital transactions: New investments by foreign shareholders Foreign M&A Foreign credit or loans All German companies which meet the following criteria are included: Balance sheet has a total of more than EUR 3 million. Foreign investor holds more than 10% of shares or voting rights. The Bundesbank differentiates between primary and secondary FDI stocks: 1. Primary direct investment constitutes the direct capital links arising from a foreign investor s participation in enterprises in Germany (e.g. directly held capital including shares and direct lending). 2. Secondary direct investment refers to indirect capital links that are held via dependent holding companies. 3. Primary and secondary direct investments are consolidated to provide statistics which are as comprehensive as possible. Germany Trade and Invest uses this data! 5

6 I. The Big Picture FDI Stocks More than 20% of Germany s FDI stocks are held by investors from the Netherlands. Total FDI Stocks ranked in Germany by country of origin (2009, in EUR m) Share of total FDI Stocks in Germany by country of origin (2009) Netherlands Luxemburg UK France USA Sweden 70,346 40,004 39,965 36,133 14, , India 0.05% Czech Republic 0.06% Rest of the World 26.07% Netherlands 23.55% Japan Spain South Korea Canada Russia China Poland Czech Republic India 14,174 9,979 4,315 2,754 2, Poland 0.06% China 0.13% Russia 0.58% Canada 0.59% South Korea 0.92% Spain 2.12% Japan 3.02% Sweden 3.16% USA 7.69% France 8.51% UK 8.52% Luxemburg 14.98% Source: Bundesbank,

7 I. The Big Picture FDI Stocks Total FDI stocks grew by more than 50% over the past seven years. Total FDI Stocks in Germany ( , in EUR bn) Share of total FDI Stocks in Germany by region of origin (2009) North America 8.3% Asia 4.9% Latin Rest of the America World 0.7% 0.6% Rest of Europe 8.6% EU % Source: Bundesbank,

8 I. The Big Picture Investment Projects fdi Markets is a commercial FDI database which focuses on worldwide investment project data. Focus on: Greenfield (new operations) investment projects. Brownfield (expansion/re-investment) investment projects. Joint ventures when investing in a new project. Provided data: Number of projects Number of jobs created Invested capital Project classification: Sector Cluster Business activity Data collected on the basis of investment announcements by official national sources, investors, and national and international press releases. This is a crucial factor for significant deviations in the data of these databases. All investment projects are recorded as there are no restrictions in terms of balance sheet totals or minimal shareholder share (as is the case with the Bundesbank statistics). 8

9 I. The Big Picture Benchmark FDI Projects China and the USA have been the most attractive markets for investors from Top 20 destination countries by number of FDI projects ( ) China United States India UK France Germany Russia Spain UAE Poland Romania Brazil Singapore Mexico Vietnam Canada Hungary Thailand Australia Hong Kong 2,385 2,004 1,948 1,863 1,554 1,550 1,534 1,531 1,498 1,367 1,249 1,245 1,153 3,151 3,085 3,074 5,643 5,132 4,973 9, ,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Source: fdi Markets, Oct Note: FDI projects refer to greenfield and expansion investment projects. M&A projects are not included. 9

10 I. The Big Picture Investment Projects The USA have invested 28% of all FDI Projects in Germany since The majority of FDI projects consisted of ICT & Software services. Projects ranked in Germany by country ( , total number and rank) Projects in Germany by Sector ( ) United States UK France Japan Netherlands China Energy, Minerals, Metals 4% Textiles 5% Hotel, Tourism, Entertainment 3% Renewable Energy 2% Other Sectors 4% ICT & Software 19% Sweden Spain Italy India Canada Russia South Korea Poland Others Transportation, Storage & Logistics 5% Healthcare, Pharma, Biotechn. 6% Consumer Goods (incl. Food & Beverages) 7% Electronics & Semiconductors 7% Chemicals, Plastics, Paper 8% Business & Financial Services 16% Automotive, Industrial Machinery & Equipment 14% Source: fdi Markets, Oct Note: FDI projects refer to greenfield and expansion investment projects. M&A projects are not included. 10

11 I. The Big Picture Foreign Companies in Germany The Markus Database (Bureau van Dijk Electronic Publishing) monitors companies and employees as they are recorded in the German commercial register. The Markus Database is not a typical FDI recording database. Its data can be used as an FDI indicator as it is possible to track foreign companies and their employees in Germany on a shareholder basis. However, the data set only provides an approximate value and makes no claim to be complete. Branch offices, representative offices, restaurants, etc. are not included. It is possible to make distinctions concerning an adequate definition of a foreign company as Markus allows share percentages to be altered. It is therefore possible to identify companies where a foreign investor holds shares between 1-100%. Germany Trade and Invest s definition of a foreign company: The global parent company or the direct shareholder have their registered office abroad and hold at least 51% of the company's shares. 11

12 I. The Big Picture Foreign Companies in Germany Most foreign companies in Germany come from the Netherlands, while US companies employ the majority of people. Number of Foreign Companies and Employees in Germany (2010) Country Number of Companies Number of Employees (Approx. Value) (Approx. Value) Netherlands 8, ,000 USA 6, ,000 UK 5, ,000 France 3, ,000 Sweden 1, ,000 Spain 1,100 71,000 Japan ,000 Russia 950 4,600 China 700 6,600 Canada ,700 Poland 370 4,700 India ,000 Czech Rep ,100 South Korea 125 4,700 Source: Bureau van Dijk Electronic Publishing, Markus Datenbank, May

13 I. The Big Picture II. Individual Analysis of Selected Countries North America (USA) III. Contacts 13

14 II. Individual Analysis of Selected Countries - USA In 2010, Germany imported primarily Chemicals, Machinery and Pharmaceuticals from the US market. Imports from the USA to Germany ( , in EUR m) Imports from the USA to Germany by sectors (2010) 60,000 50,000 49,179 45,626 46,060 45,063 Electrical Engineering 4% Others 11% Chemicals 30% 40,000 39,915 Measuring & Controlling Instruments 7% 30,000 20,000 Vehicles & Parts 8% 10,000 Machinery 15% Electronics 11% Pharmaceuticals 14% Source: Federal Statistical Office 2011, GTAI

15 II. Individual Analysis of Selected Countries - USA The USA rank 6th in terms of FDI stocks in Germany. US FDI Stocks in Germany ( , in EUR m) US FDI Stocks in Germany by Federal State (2009, in EUR m) 60,000 50,000 40,000 30,000 20,000 10, ,450 54,186 49,649 47,242 45,126 41,203 36, North Rhine-Westphalia 11,396 Niedersachsen 7,830 Baden-Wurttemberg 6,324 Bavaria 5,609 Berlin 1,665 Rheinland-Pfalz 1,481 Schleswig-Holstein 1,039 Hamburg 617 Thuringia 297 Brandenburg 274 Saxony 178 Sachsen-Anhalt 174 Bremen 137 Saarland 54 Mecklenburg- 24 Hessen n.a. 0 5,000 10,000 Source: Bundesbank 2011; Note: n.a. means data confidential 15

16 II. Individual Analysis of Selected Countries - USA Until 2008, the number of US investment projects in Germany has been rising significantly. Bavaria is the top destination for US investors. Number of US Projects in Germany ( ) Number of US Projects in Germany by Federal State ( ) Bavaria Hessen North Rhine-Westphalia Baden-Württemberg Berlin Hamburg Brandenburg Saxony Niedersachsen Rheinland-Pfalz Thuringia Saxony-Anhalt Bremen Saarland 8 20 Mecklenburg-Vorpommern Schleswig-Holstein * Other States/Regions Source: fdi Markets, Oct Note: FDI projects refer to greenfield and expansion investment projects. M&A projects are not included. 16

17 II. Individual Analysis of Selected Countries - USA The USA ranks first in greenfield and brownfield projects in Germany. Ten important US projects by jobs created since Company Name Destination State Jobs created Sector General Motors (GM) Hessen 500 Automotive OEM Federal Express (FedEx) North Rhine- Westphalia 450 Transportation Liberty Media Hessen 400 Software & IT Services Johnson Controls Baden Württemberg 300 Automotive Components Bausch & Lomb Berlin 300 Pharmaceuticals Boston Consulting Group (BCG) Not specified 235 Business Services Deere & Company Rheinland-Pfalz 200 Industrial Machinery, Equipment & Tools EPV Solar (Energy Photovoltaics) Brandenburg 200 Electronic Components Dolce International Bavaria 150 Hotels & Tourism Signet Solar Saxony 130 Electronic Components Source: fdi Markets, Oct Note: FDI projects refer to greenfield and expansion investment projects. M&A projects are not included. 17

18 II. Individual Analysis of Selected Countries - USA The ICT & Software sector is highly attractive to US investors. Sales, Marketing & and Support account for the majority of all FDI projects. US Projects in Germany by Sector ( ) US Projects in Germany by Business Activity ( ) Transportation, Storage & Logistics 3% Consumer Goods (incl. Food & Beverages) 5% Chemicals, Plastics, Paper 6% Hotel, Energy, Tourism, Minerals, Entertainment Metals 2% 3% Textiles 3% Healthcare, Pharma, Biotechn. 7% Electronics & Semiconductors 8% Automotive, Industrial Machinery & Equipment 12% Renewable Energy 1% Other Sectors 3% ICT & Software 30% Business & Financial Services 17% Construction 2% Research & Development 2% Design, Development & Testing 4% Logistics, Distribution & Transportation 5% Headquarters 8% ICT & Customer Internet Contact Infrastructure 1% Centre 2% Retail 4% Business Services 16% Technical Support Centre 1% Others 3% Manufacturing 16% Sales, Marketing & Support 36% Source: fdi Markets, Oct Note: FDI projects refer to greenfield and expansion investment projects. M&A projects are not included. 18

19 II. Individual Analysis of Selected Countries - USA The USA rank second in terms of foreign companies in Germany. Ten biggest US companies in Germany by sales (2009, in EUR m) 18,000 17,000 16,000 14,000 12,000 10,000 12,000 10,700 10,400 9,400 9,300 8,000 6,000 6,200 4,700 4,600 4,100 4,000 2,000 0 Source: AmCham, Oct

20 II. Individual Analysis of Selected Countries - USA Most US firms are located in North Rhine-Westphalia and Bavaria. Number of US Companies and Employees in Germany by Federal State (2010) Federal States Source: Bureau van Dijk Electronic Publishing, Markus Datenbank, May 2011 US Companies (Approx. Value) Employees (Approx. Value) North Rhine-Westphalia 1, ,000 Bavaria 1, ,900 Hessen 1, ,800 Baden-Württemberg ,400 Berlin ,300 Hamburg ,100 Niedersachsen ,000 Rheinland-Pfalz ,000 Schleswig-Holstein ,250 Saxony 90 7,300 Brandenburg 70 3,600 Bremen 50 6,300 Saxony-Anhalt 45 5,500 Thuringia 40 4,750 Saarland 25 2,250 Mecklenburg-Vorpommern Total 6, ,

21 I. The Big Picture II. USA Individual Analysis of Selected Countries III. Contacts 21

22 Contacts Germany Trade and Invest Foreign Trade and Inward Investment Promotion Agency Friedrichstraße Berlin Germany T F Villemombler Str Bonn Germany T F For further information, please contact: Market Intelligence Germany Mr. Thomas Bozoyan Senior Manager T F Market Intelligence Germany Mr. Marc Lehnfeld Manager T F Germany Trade & Invest GmbH All information provided by Germany Trade & Invest is for informational purposes only and not legally binding. Germany Trade & Invest does not accept liability for inaccuracies or errors in translation. 5/17/