SINGAPORE, 15TH FEBRUARY 2017 SAXONY -ANHALT – KEY LOCATION FOR ADDITIVE MANUFACTURING

SAXONY-ANHALT TODAYS TOPICS:

… The secret recipe…

About IMG

Saxony-Anhalt

Key Industries

Location for Additive Manufacturing

Incentives for Investors

Quality of Life

Summary

01 / IMG – INVESTMENT AND MARKETING CORPORATION SAXONY-ANHALT

01 / SAXONY-ANHALT: IMG

IMG is the investment promotion and marketing agency of the German federal State of Saxony- Anhalt

IMG is 100 % owned by the state government and chaired by the Ministry of Economy, Science and Digitalisation

IMG supports investors throughout the investment Your Partner – IMG Saxony-Anhalt lifecycle – at no charge for the investor

IMG has a track record of more than 200 projects

IMG is responsible for promoting Saxony-Anhalt as a tourism destination

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 5 02 / SAXONY-ANHALT: IMG - SERVICES

IMG Investment and Marketing Corporation Saxony-Anhalt

Location & Tourism Investment Marketing Consultancy Location Marketing We support you in the site search

Creating demand We support you through targeted in financing issues marketing

Key brands We support you in dealing with the authorities

Sustainable We support you success in project with excellent implementation market research

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 6 03 / SAXONY-ANHALT: IMG - WORLD CLASS SERVICE

The editors of Site Selection and a distinguished panel of global foreign direct investment experts and site consultants are pleased to announce the Top Global Investment Promotion Agencies for 2016.

These agencies accumulated the most points in a set of criteria that include:

Most professionally responsive to investor inquiries

Most knowledgeable and linguistically diverse staff

Most access to user-friendly databases of sites and incentives, both general and sector-specific

Best information on timing expectations for permitting and other processes

Best access to recent investors in the region for testimonials

Best reputation for protecting investor confidentiality

Best reputation for after-care services

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 7 04 / SAXONY-ANHALT: IMG - TEAM INTERNATIONAL

Oliver Köhn Mathias Obieglo Head of International Team Asia Tel: +49 (0) 391 / 568 99 30 Tel: +49 (0) 391 / 568 99 25 [email protected] [email protected]

Kristin Gabor Dana Brüggeman North America UK, BeNeLux Tel: +49 (0) 391 / 568 99 22 Tel: +49 (0) 391 / 568 99 23 [email protected] [email protected]

Christiane Kühne Tanja Rüdinger Austria and Switzerland Press and PR Tel: +49 (0) 391 / 568 99 39 Tel: +49 (0) 391 / 568 99 76 [email protected] [email protected]

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 8 02 / GERMAN FEDERAL STATE SAXONY-ANHALT

01 / SAXONY-ANHALT: OVERVIEW

Major cities: (capital),

Size: 20,447 sq GDP (2015): 56.2 billion km EUR

Inhabitants: 2.3 million Universities: 7

Saxony-Anhalt is located in the center of the EU27, a market with >500 million consumers

The region is part of the largest market Germany with 82 million consumers

€ 6.5 bn. of fixed assets form 33 % of foreign investment into East Germany and make Saxony-Anhalt the number 1 location for FDI in the region

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 10 02 / SAXONY-ANHALT: INFRASTRUCTURE

Highways Kiel One of the most efficient road networks in Europe with the following highways: Hamburg Schwerin

Bremen A2 Netherlands - Ruhr Area - Magdeburg - Berlin - Poland Berlin

A9 Berlin - Halle/Leipzig - Munich Hannover Potsdam Magdeburg A14 Magdeburg - Halle/Leipzig - Dresden Düsseldorf

Dresden A38 Gottingen - Halle/Leipzig Erfurt Wiesbaden Intermodal Transport Mainz 5 trimodal terminals Saarbrücken

Water level-independent connections to Antwerp, Rotterdam, Amsterdam, Hamburg, Berlin and Szczecin (PL) Stuttgart München

Airport

Leipzig/Halle: European air cargo hub serving 51 destinations Major German Highways in 13 countries; 24-hour operating permit for air freight traffic

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 11

03 / SAXONY-ANHALT: EASY ACCESS

Be quickly in the metropolis of Europe Non-stop flights to London 1 h 45 min flight time Amsterdam 1 h 15 min flight time Paris 1 h 40 min flight time Bern 1 h 40 min flight time Rome 2 h flight time Madrid 2 h 30 min flight time Barcelona 2 h 15 min flight time

and beyond … New York 8 h flight time Cairo 4 h flight time Beijing 9 h flight time Source: Airport Leipzig-Halle 2015 Singapore 12 h flight time

(From Berlin Airports Tegel /Schönefeld (and soon from Airport Berlin Brandenburg - currently under construction))

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 13 04 / SAXONY-ANHALT: WATERWAYS

Saxony-Anhalt’s inland ports are well connected to all Kiel major sea hubs, including Hamburg and Rotterdam Hamburg Schwerin

The Magdeburg and Halle port management BremenWeser

companies offer additional logistical services, i. e. Hannover Berlin Mittelland Canal Potsdam multimodal transport. Additionally, Magdeburg has a Magdeburg customs office Düsseldorf

Dresden Erfurt Distances to Hamburg via Waterways from: Wiesbaden Magdeburg Aken Dessau-Roßlau Haldensleben Mainz 300 km 345 km 360 km 280 km Saarbrücken 48-72 h 72-96 h 72-96 h 48-72 h

Stuttgart München

Inland Waterways in Germany

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 14 05 / SAXONY-ANHALT: BUSINESS ENVIRONMENT

Business Environment Corporate taxes and VAT in comparison (in %) high safety standards 40 a high level of protection for intellectual 35 property 30 political stability and a reliable legal system 25 20 high industry acceptance 15 10 Service 5 0 fast and easy approval procedures (e.g. planning permission generally issued in 4 weeks)

free, professional and client-oriented Corporate taxes and VAT in comparison VAT (in %) consultancy services by IMG (in %)

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 15 06 / SAXONY-ANHALT: LABOUR MARKET

Highly skilled GDP per hour worked, G7 countries 2013 and 2014 90% of all employees possess a vocational or university degree (OECD average: 71%)

High availability of skilled employees

55,000 students in Saxony-Anhalt

Flexibility

High willingness among employees to work flexible hours and relocate or travel

High motivation and company loyalty, employee turnover <1% source: ons.gov.uk Company-specific working schedules (24/7)

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 16 07 / SAXONY-ANHALT: COST OF LAND

The average price of industrial fully developed Cost of industrial land in ground in Saxony-Anhalt is far below the German average, and lower than most other EUR/m² German regions 250

200 In Saxony-Anhalt the average price per m² for developed sites is about 12 €/m² 150 100 50

0

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 17 03 / SAXONY-ANHALT: A CENTER OF RESEARCH

01 / SAXONY-ANHALT: A CENTER OF RESEARCH

University University Martin Luther Otto von Guericke Magdeburg Halle/Wittenberg Ca. 15,000 students in 9 faculties and 56 500 years of tradition, ca. 17,000 students in study programs (social, economic and 180 study programs technical/chemical) Institute of Physics: productive center of condensed matter Institute for Process Engineering: particle physics, with specific key subjects in technology, production of nanoparticles Stendal Magdeburg hard- and soft-matter science Institute of Fluid Dynamics and Solid-state physics Thermodynamics Institute of Chemistry, Institute of Computer Magdeburg Instrumental and Environmental Sciences Technology Department Bernburg Halberstadt Köthen FH Magdeburg/Stendal Chemical Institute Wernigerode Dessau Ca. 6,000 students in social, economical and Institute of Computer Sciences technical education Fachhochschule Harz Halle FH Anhalt Ca. 4,000 students in 19 study programs economy and technology Ca. 6,500 students in the fields of technology, Merseburg civil engineering Burg Giebichenstein Halle FH Merseburg More than 1.000 students in art and Ca. 3,400 students in interdisciplinary study design programs

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 19 03 / SAXONY-ANHALT: A CENTER OF RESEARCH

Scientific institutions

Max Planck Institute Experimental Factory

Fraunhofer Institute for Factory Centre for Neuroscientific Innovation Operation and Automation (IFF) and Technology

Leibniz Institute for four innovation and start-up centres Neurobiology (IfN) science port

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 22 04 / SAXONY-ANHALT: INDUSTRIES

01 / SAXONY-ANHALT: INDUSTRIES

Mechanical Engineering

Chemical Life Science and Plastics Industry

Key Industries Automotive Logistics Industry

Renewable Food Energy Industry

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 25 02 / SAXONY-ANHALT: MECHANICAL ENGINEERING

Industry Overview:

machine tool building, steel and custom machine engineering

power station and conveyor technology, stranding machines

motors/ motor elements

foundries / foundry technology

renewable energies

automation and control technology

plants for oil production and processing

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 26 03 / SAXONY-ANHALT: CHEMICAL AND PLASTICS INDUSTRY

Facts & Figures

More than 100 companies, 10,000 employees

Annual turnover in 2015: €3.2 bil.

Reknown international investors

Plastic producers: Dow Chemical, Braskem, Trinseo, Domo

Plastic processors: BASF, Manuli Stretch, Polifilm Group

Unique R&D infrastructure: Fraunhofer PAZ: sole pilot plant for polymer development in Europe

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 27 04 / SAXONY-ANHALT: AUTOMOTIVE INDUSTRY

Due to an ideal location in the centre of several OEM production facilities, Saxony- Anhalt is a prime region for the supplying

industry

Volkswagen: Wolfsburg Berlin

Brunswick construction Wolfsburg, Hanover, Brunswik, Salzgitter, Kassel, Dresden, Ludwigsfelde

Chemnitz, Zwickau/Mosel Hanover Iunder Opel: Magdeburg Salzgitter Eisenach BMW: Dessau

Leipzig, Berlin Halle Neoplan: Kassel Plauen Kölleda Leipzig Porsche: Chemnitz Dresden Leipzig Eisenach

Daimler: Plauen Highway Ludwigsfelde, Berlin, Kölleda 4-lane national road

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 30 05 / SAXONY-ANHALT: AUTOMOTIVE INDUSTRY

Facts & Figures

More than 260 companies and over 23.000 workers

In every German car is a piece made in Saxony-Anhalt

flexible and well educated work force

Great R&D infrastructure: / University of Magdeburg / Fraunhofer VDTC (virtual reality) / Harzgerode CCC – competence center for aluminum dye cast / Fraunhofer IWM – materials / IKAM – Institute for Automotive Expertise (fuel cell and battery testing, lightweight materials)

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 31 05 / SAXONY-ANHALT: KEY LOCATION FOR ADDITIVE MANUFACTURING

01 / SAXONY-ANHALT: ADDITIVE MANUFACTURING

Germany is one of the leading nations in Additive Manufacturing / 3D Printing in the world.

37% of German companies have experience with 3D printing. (South Korea and China 24%; USA only 16%) ; EY study 2016

Global market is believed to exceed $21bn by 2020, up from $4.1bn in 2014 worldwide (Wohlers Report 2015). Worlwide 3D Printing Industry Forecast (in Billion $) Most promising application industries are 25 aerospace, medical engineering and automotive. Germany is a global market leader in all of these 20 industries. 15

10

5

0 2015 2016 2017 2018 2019 2020

Previous Forecast Current Forecast

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 38 02 / SAXONY-ANHALT: ADDITIVE MANUFACTURING

• Cost Reduction • Lightweight materials Automotive • Special geometries of parts

• Small series Aerospace production • Weight reduction • Hybrid materials

• Customization • Just in time Medtec production • Cost efficiency

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 39 03 / SAXONY-ANHALT: ADDITIVE MANUFACTURING

enficos = energy-efficient, cost-saving and innovative product development by RP Technologies

Central German cluster for rapid prototyping and additive manufacturing

Currently 20 companies and 6 research institutes

Operates as a network platform for combined research projects between industry and universities as well as other research institutions

Organizes the annual Central German Conference on 3D-Printing

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 40 06 / SAXONY-ANHALT: SUCCESS STORY

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 42 06 / SAXONY-ANHALT: SUCCESS STORY

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 43 06 / SAXONY-ANHALT: SUCCESS STORY

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 44 06 / SAXONY-ANHALT: SUCCESS STORY

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 45 06 / SAXONY-ANHALT: ADDITIVE MANUFACTURING

Why Invest in Saxony-Anhalt? Other advantages include:

Germany and therefore Saxony-Anhalt holds the strong material development focus

key to success for your additive manufacturing proximity to world leaders in machinery and business because of its applied research equipment production excellence and diverse industrial landscape first rate electronic device manufacturers

combined with its culture of ingenuity and Europe’s rapidly expanding end user markets largest consumer market – providing perfect governmental investment incentives opportunities for starting your own presence here! and R&D support

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 46 06 / SAXONY-ANHALT: INCENTIVES

01 / SAXONY-ANHALT: INCENTIVES

Investment

small business up to 35% < 50 Employees; ≤ €10 million Turnover; ≤ €10 million Balance sheet total

medium-sized business up to 25% < 250 Employees; ≤ €50 million Turnover; ≤ €43 million Balance sheet total

large business up to 15%

Staff

up to 50% grants for staff training Guarantees

Guarantees for up to 70% of investment loans R&D

Industrial research: up to 80%

Experimental development: up to 60%

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 51

08 / SAXONY-ANHALT: QUALITY OF LIFE

01 / SAXONY-ANHALT: CORE REGION MAGDEBURG

City of Magdeburg – open for the future

General data Soft facts

Magdeburg: 240,000 inhabitants State capital of Saxony-Anhalt, largest city in the Surroundings: 650,000 inhabitants state 4 million inhabitants within 125 km radius Traditional industrial city with a charming historical background located at the river Elbe

Many historical places and buildings, like the Magdeburg Cathederal, are representing the 1,200 years old history of the city Otto-von-Guericke University and the University of Applied Sciences Magdeburg-Stendal are engaged in extensive joint-venture-research programmes Magdeburg long tradition in engineering and machinery industry boosted the automotive supplier branch in the last decade Sights: Magdeburg Cathedral, Monastery of Our Lady, Hundertwasser-Building, Rotehorn-Park, Elbauen-Park /// IMG Sachsen-Anhalt mbH /// 21/02/2017 58 03 / SAXONY-ANHALT: CORE REGION MAGDEBURG

Leisure and tourism

17 parks in and around the city European Cycle Route alongside the River Elbe

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 60 04 / SAXONY-ANHALT: CORE REGION MAGDEBURG

Leisure and tourism

Trade fair, opera house, puppet theatre, football stadium, Bördelandhalle sporting arena, museums, conservatory, etc.

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 61 05 / SAXONY-ANHALT: CORE REGION HALLE

Halle and Leipzig – offering dynamic surroundings

General data Soft facts

Halle: 240,000 inhabitants Second largest city in Saxony-Anhalt Leipzig: 500,000 inhabitants First mentioned in the year 806 5 million inhabitants within 125 km radius Cultural heart of Saxony-Anhalt with its opera, numerous theatres, museums and galleries Martin-Luther-University in Halle, University of Leipzig, Universities of Applied Sciences in Merseburg and Leipzig and several research institutes form a R&D cluster in central Germany Ambitious core region with high investments of DHL, BMW, Dell, Porsche Attractive residential areas in the city centre as well as in the surroundings Sights: Giebichenstein Castle, , Cathedral, Market Place, The Handel House, Peissnitz Island

/// IMG Sachsen-Anhalt mbH /// 21/02/2017 62 09 / SAXONY-ANHALT: SUMMARY

01 / SAXONY-ANHALT: SUMMARY

Easy access to all European markets -> gateway to Europe

Highly skilled and flexible workforce

Innovative technologies “Made in Germany”

Reduction of investment costs due to excellent funding incentives

A reliable and supportive environment for businesses

High quality of life

Confidential and cost-free service through every step of the

investment

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 65 02 / SAXONY-ANHALT: SAVE THE DATE

http://www.invest-in-saxony-anhalt.de/machinery-event-singapore

Investor Conference

B2B Meetings and Networking Opportunities

/// IMG Sachsen-Anhalt mbH /// 21.02.2017 66 THANK YOU!

SAXONY-ANHALT: BEST TO INVEST Obieglo, Mathias Regional Manager Asia /// Site selection Tel.: +49 (391) 568 9925 Fax: +49 (391) 568 9950 /// Financing issues Mail: [email protected]

/// Dealing with authorities IMG – Investment and Marketing Corporation Saxony-Anhalt /// Personnel management Am Alten Theater 6 39104 Magdeburg /// Screening investment opportunities Germany

www.invest-in-saxony-anhalt.com

/// IMG Sachsen-Anhalt mbH /// THANK YOU!

SAXONY-ANHALT: BEST TO INVEST Köhn, Oliver Head of Business Development /// Site selection Tel.: +49 (391) 568 9930 Fax: +49 (391) 568 9950 /// Financing issues Mail: [email protected]

/// Dealing with authorities IMG – Investment and Marketing Corporation Saxony-Anhalt /// Personnel management Am Alten Theater 6 39104 Magdeburg /// Screening investment opportunities Germany

www.invest-in-saxony-anhalt.com

/// IMG Sachsen-Anhalt mbH ///