Business in Germany...Business in Germany Insights for Foreign Investors A Genuine Global Player...

Business in GermanyInsights for Foreign Investors

A Genuine Global Player Examining German investments abroad

Mastering Industry 4.0 German tech clusters prove successful

Special: Invest in Bavaria The centre for IoT

March 2017

International Business

Seeking a Safe Haven

Dear reader

The world is changing. We started 2017 with the inauguration of Donald Trump as the 45th President of the United States and Theresa May’s announcement that the UK would leave the European Single Market. Do not be surprised if populists perform strongly – not only in the Netherlands and France, but also in Germany – in the elections this year.

I strongly believe, however, that they will not surge to power in any of these countries. Instead, it could be the start of a type of globalisation that is felt to be more reasonable and just as favoured by many at the World Economic Forum in Davos.

Even though huge changes lie ahead of us, we have an opportunity to move closer together and reorient ourselves in order to further strengthen the German and European economies. In her speech to the German Chamber of Industry and Commerce in Cologne on 17 January 2017, Chancellor Angela Merkel appealed to leading business experts to work closely with the German government: “I ask you not to deviate from what we understand as fundamental and successful principles only to seek short-term opportunities.”

With an increasing number of unforeseeable events that impact our globalised world, Germany remains a safe haven in turbulent times. Almost no other economy in the world is as closely linked to foreign economies as Germany, as highlighted in our Investment Report. Germany stands for mindfulness, justice and tranquillity, and is standing up for its core values. Our belief in ourselves and these values is essential for strengthening the economic and political position of the European Union as a whole.

Angela Merkel summarised it nicely by saying, “Those who do not stand up for their ideals, for their basic values, who give them up for the smallest short-term advantage, won’t be successful in the future.” I agree.

Andreas Glunz Managing Partner International Business KPMG in Germany

Kind regards,

Current Data p.3

A Genuine Global Player p.4

Mastering Industry 4.0 p.6

Digitalisation of German Real Estate p.8

Welcome to Germany p.10

Meet the Locals p.11

New Salary Criteria in Germany p.12

Invest in Bavaria p.13

Key Events p.15

Three Questions p.16

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© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks of KPMG International.

2 | Business in Germany | March 2017

The German economy grew by 1.9% in real terms in 2016 (German Federal Statistical Office, 2017) and remains on a stable growth path in 2017. However, increasing protectionism puts pressure on German exports. Growth is hence primarily driven by domestic consumption.

JANUARY INFLATION

Source: German Federal Statistical Office, 03/2017

Source: German Federal Statistical Office, 03/2017 Source:

German Federal Statistical Office, 03/2017

Source:German Federal Statistical Office, 03/2017Source: fDi Markets, 03/2017

Source: ECB, 27/02/2017 Source: ECB, 27/02/2017

Source: OECD, 11/2016

EUR / USD

2017 GDP GROWTH EXPECTATION

DECEMBER EXPORTS

GERMAN INTERNATIONAL RANK BY GREENFIELD INVESTMENTS

FROM ABROAD, 2016

DECEMBER UNEMPLOYMENT RATE

DECEMBER IMPORTS

EUR / CNY

97.4 m

Germany is the country with the world's most subsidiaries abroad –an astonishing fact considering the country only ranks 17th by population.This, again, underlines the international focus of German companies.

Source: OECD, 2017

NUMBER OF THE DAY

GERMAN SUBSIDIARIES AROUND THE GLOBE

1.7 %

Current Data01

1.06 7.281.9 %

78.7 m

#6 3.9 %

27,420© 2017 KPMG AG Wirtschaftsprüfungsgesellschaft, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks of KPMG International.


02 A Genuine Global Player

With Germany being one of the world's leading export nations, the success of German businesses is based on a strong international focus. A changing risk perception seems to lead to a shift in strategy.

German companies are among the most international in the world and they will continue to invest strongly abroad. How- ever, their regional and strategic focus is changing. This is revealed in the KPMG Investment Report, for which we con-ducted a survey among 200 CFOs and heads of strategy at large German companies.

Source: OECD, 2016; data from 2013. * Data from 2012

Twenty-two of the thirty largest German corporates, which form the German stock index DAX, generate 70 per cent or more of their annual revenue abroad. Although Germany is known for being one of the largest export countries in the world, a significant portion of this revenue is earned by German subsidiaries based in foreign markets. With more than 27,000 subsidiaries abroad, German companies rank number one regarding international entities, above the US.

30,000

25,000

20,000

15,000

10,000

5,000

0

27,420 26,919

21,519

Germany USA UK* Japan

23,445



Number of subsidiaries abroad by country

http://hub.klardenker.kpmg.de/investment-report-2016

In which countries or regions will you invest more intensively over the next five years?


59%Europe

54%57%

66%

all companies

more than 1 bn. euros annual sales

less than 500 mn. euros annual sales

15%No investments planned

3%17%

24%

51%China

59%55%

41%

46%North America

48%

48%40%

31%Southeast Asia

45%36%

14%

28%India

42%26%

15%

16%Russia

25%21%

5%

15%Brazil

21%

15%4%

13%Latin America

21%9%9%

10%Africa

22%9%

8%Japan

4%8%

9%

18%Middle East

16%23%

15%

500 mn. to 1 bn. euros annual sales

Source: KPMG, 2016

The outlook for the next five years, however, reveals a regional and strategic shift in investment strategy. Whereas German companies have strongly increased their involve-ment in emerging markets in the past decade, they are now turning their focus back to the mature markets in North America and Europe. Among the BRIC countries of Brazil, Russia, India and China, only the latter seems to remain a key investment target for German companies. Obviously, economic and political crises in Brazil and Russia have forced the firms to rethink their regional investment strat-egy. However, economic risk is increasing in other countries

as well, for example, in Turkey and the United Kingdom, which draws a picture of a difficult worldwide investment environment at present.

To overcome this situation, German companies are shifting their focus from expansion to investments abroad. About one quarter of the surveyed companies will also invest abroad in the next five years to reduce risks, either by diversifying their market portfolio or by increasing their own contribution to the product supply chain and thus being more independent from international suppliers.


For further information, please contact:

Andreas Glunz

Managing Partner


KPMG, Germany

[email protected]

03 Mastering Industry 4.0


A rapid change in technology could hit any industry. The pressure exerted by digitalisation on industrial manufacturing is severe. However, it seems like Germany has found the right answer.

The industrial manufacturing sector forms the basis of the German economy. Industry sectors in most First World countries nowadays have a GDP share of approximately 20 per cent, whereas the industrial sector in Germany con-tributed more than 25 per cent to the German GDP of about three trillion euros in 2015 (World Bank, 2016; Federal Bureau of Statistics, 2016). Besides the famous German automotive sector, its success is mainly driven by the machinery and equipment engineering sector. Companies like Siemens and Bosch are famous worldwide. However, there are also 10,000+ small and medium-sized enterprises (SMEs) in this industry – known in Germany as the Mittel-stand – which have nurtured the legend of products made in Germany over the past few decades.

Joint efforts to push for Industry 4.0

Over the next few years, new technologies and opportuni-ties like 3D printing, the Internet of Things and learning algorithms will disrupt the industrial manufacturing sector completely, turning it into Industry 4.0. Production pro-cesses will change dramatically. Robots will be able to man-age more production steps than ever and the co-working of machines and human beings will progress to a new level.

The German Federal Ministry for Education and Research (BMBF) started to promote Industry 4.0 back in 2011. By November 2016, the BMBF had spent more than 120 million euros on research projects.

One of the high-tech clusters is called “it's OWL” and is based in Ostwestfalen-Lippe, a region in the northwest of Germany. It brings together 180 companies, universities, research institutes and organisations, which are developing innovations in the field of intelligent technical systems.

Further excellence clusters include “microTEC Südwest” in the Stuttgart region for microsystem technology, “Cool Silicon” in the Dresden region for microelectronics and nanoelec-tronics, and the “Software-Cluster” in southwest Germany for the development of business software to manage future processes.

All of these clusters and initiatives are pursuing the goal of placing German companies in a leading position when it comes to developing the standards of future production processes.



Attracting foreign capital

The number of cross-border M&A deals with German targets in the last two years impressively documents the success of these initiatives and clusters. Industrial manufacturing is the

most interesting sector for international companies invest-ing in German firms: 18 per cent of all deals in Germany were recorded in this sector. Regarding deal value, around 21 per cent of the total M&A investments were directed towards this industry.

Cross-border M&A

Other

Consumer products and services

Healthcare

Media and entertainment

Retail

Machinery and other industrials

Materials

Real estate

Automobiles and components

Building/construction and engineering

Transportation and infrastructure

High technology

Industrial manufacturing

18%

4%

3%

3%

17%

10%

9%

9%

7%

6%15%

10%

8%

Demand-driven disruption

A recently published KPMG study on the digital transforma-tion of the manufacturing industry, which included a survey of 76 CEOs, owners and department heads, mainly from the mechanical and plant engineering sector, underlines the progressiveness of German companies with regard to Industry 4.0.

According to the study, one of the main driving forces be- hind digitalisation is the strong focus on customer needs. German manufacturing companies expect that their cus-tomers will increasingly intervene in product development and manufacturing processes. In the next ten years, a huge majority of 87 per cent of German manufacturing compa-nies wants to meet new customer requirements for new features and innovations.

Algorithms are also finding their way into technical systems, such as those used for autonomous vehicles, the aerospace industry or medical diagnostic models. 18 per cent of the companies surveyed in Germany already consider the use of complex knowledge-based systems to be relevant and want to bring this to the forefront of their own company.

In light of all this, the German industrial manufacturing sec-tor offers excellent investment opportunities for interna-tional companies. Their involvement in German industry can be expected to increase further.

For more information, please contact:

Harald von Heynitz

Partner, Head of Industrial Manufacturing, KPMG in Germany

[email protected]

Cross-border M&A deals with German targets, number of deals (as a % of total*), 2015 – 2016

Source: Thomson One, 2016 Percentages may not add up to 100% due to rounding.

* total number of deals: 1,257


https://home.kpmg.com/de/de/home/themen/2016/11/digitaler-wandel-fertigungsindustrie.html


04 Digitalisation ofGerman Real Estate

National and cultural borders still restrict the development of digital ecosystems. New research shows that European countries are at various stages of development when it comes to digital trans-formation within the real estate market.

There is no doubt that the massive trend towards digitalisa-tion will have a huge impact on the economy and society. Trends in the German real estate market are already influ-enced by the digital economy, which comprises information and communication technologies and internet-related companies.

Due to its strategic location in the centre of Europe and its excellent infrastructure, the logistics sector is one of the main drivers of Germany’s economy. The e-commerce boom that accompanies digitalisation has led to increasing demand for logistics space in recent years. At around 6.0

million square metres, take-up increased by approximately 15 per cent between 2014 and 2015, reaching a new record level. Moreover, the amount of newly constructed logistics space is also increasing. The proportion of new-build space rose from approximately 59 per cent of total take-up in 2015 to 66 per cent in 2016.

As a consequence, logistics properties are becoming increasingly attractive to investors. Evidence for this is found in the record transaction volume levels (up by around 30 per cent in 2014 and around 40 per cent in 2015), which has compressed the German real estate market.



Source: BNP Paribas Real Estate

Flagship stores on the rise The question is, how is the retail sector itself impacted by the e-commerce boom and trend towards digitalisation? Market participants expect demand for retail space in prime locations to remain stable. This retail space will be converted into showrooms and flagship stores, breaking down the barrier between over-the-counter retail and e-commerce by focusing on customer retention. Customers are inspired and advised in-store so that they buy products online after-wards. However, demand for retail space in B- or C-grade locations is expected to decline.

There is no definitive answer to the question of what impact digitalisation will have on office buildings and forecast demand for office space. Digitalisation brings with it a fear that jobs will be replaced by technology and automation. However, it is evident that the digital economy also creates new employment. According to the Bundesagentur für Arbeit (the German Federal Labour Agency), employment in the digital economy increased in four of the top five locations in Germany between 2008 and 2013. This increase ranged from 17.4% in Frankfurt to 44.0% in Berlin. Munich was the only city where employ-ment in the digital economy decreased, albeit by only 9.2%. According to calculations by Investitionsbank Berlin, the digi-tal economy could create around 270,000 additional jobs in Berlin alone.

Digital economy companies are also driving demand for office space. The take-up generated by these companies amounted to approximately 625,000 square metres in 2015, an increase of about 60% compared to 2013. Berlin plays an exceptionally important role as Germany’s ‘digital hotspot’. Whilst digital companies accounted for approximately 21% of take-up in the capital in 2013, their share of office space take-up in Berlin reached around 39% in 2015.

Most important: IT infrastructure Digitalisation brings with it other trends that influence the office sector: co-working, remote working and home offices. These all lead to enhanced requirements for flexi-ble office space. An up-to-date IT infrastructure is crucial whenever letting office space. Besides the impact of digital-isation on demand for rental space and investor interest in specific asset classes, digitalisation goes hand in hand with other benefits. These include the simplification of the transaction process and development projects brought about by storing documents and data and making them available to potential investors or project members in the cloud or in data centres.

Furthermore, digitalisation is giving rise to additional financ-ing instruments such as crowdfunding, providing developers and investors with alternative means of raising equity. Thus, digitalisation not only leads to a fear of vacant office and retail buildings, but it also generates demand for alternative asset classes and can actually allow developers and investors to meet (increasing) demand.

See our SnapShot! on digitalisation for a look at the impact of

digitalisation in the real estate industry in other European markets:

https://assets.kpmg.com/content/dam/kpmg/ch/pdf/european-

snaphot-on-digitalization-en.pdf


Gunther Liermann

Partner, Corporate Finance Real Estate

+49 69 9587 4023

[email protected]

Niels P. E. Buck

Partner, Transaction Services

+49 40 32015 5848

[email protected]

Sven Andersen

Partner, Real Estate M&A

+49 69 9587 4973

[email protected]

300,000

250,000

200,000

150,000

100,000

50,000

In s

q. m

.

Ber

lin

Dus

seld

orf

Fran

kfur

t

Ham

burg

Mun

ich

2013 2014 2015

Development of digital take-up


05 Welcome to Germany


From the outside, Germans often appear to be reserved, grumpy and uptight. Even though every stereo-type has a grain of truth, we Germans are just as friendly, open and welcoming as any other nation – just in our own way.

Understanding German mentality can be a challenge, espe-cially when it comes to meeting people for the first time. When you arrive in Germany, don’t expect to be treated cour- teously anywhere that provides a service. Bus drivers, train conductors, salespeople, civil servants – almost everybody will seem mad at you if you have an extra question, or do something a bit less smoothly than people born here. Appar-ently, there is a reason why the service sector represents a comparatively low share of the economy:

Germans love to grumble – some say that we are the cham-pions of moaning. ”No” and ”but” are among the favour-ite words in the German language. It is somewhat surprising that Grumpy Cat isn’t German. However, most of the time, we don’t want to deny or contradict: we simply want to add another point of view. So please don’t be too hard on us, it is in our nature to strive for quality. If we want to express something positive, German grammar allows us to use a double negative – just perfect for us. What do we grumble about? Often, it is about someone apparently having done an imperfect job. An airport that was scheduled to open years ago but is still under construction blows everybody’s mind.

Please don’t misunderstand us. Just because we are grum-bling doesn’t mean that we are dissatisfied. Citizens of Hamburg have been complaining about the long-running construction of the city’s new concert hall, the Elbphilhar-monie, for years, and now they warmly and proudly refer to it as ”Elphi”.

Grumpiness aside, most Germans demonstrate a great will-ingness to help whenever help is really needed. When large numbers of refugees arrived at the train station in Munich, they were greeted with food and teddy bears. The civilian effort to cope with this challenge is impressive and greatly influences what ”Willkommenskultur” stands for.

We might be straight-forward and objective at the office, but sometimes a reserved manner is actually the German way of showing appreciation and respect. In the end, it is the same story as anywhere across the globe: take your time, share a glass of beer and say “Hi”, and you will realise that Germans are warm-hearted and welcoming people. We can sometimes be a hard nut to crack, we admit it, but never-theless, welcome to Germany!


Joachim von Prittwitz

Senior Manager


KPMG, Germany

[email protected]


06 Meet the Locals

Daimler, Bilfinger and Porsche are just three examples of successful products originating from south-western Germany. Discover a region full of entrepreneurial spirit.

Stuttgart Region »

The Southwest is one of Germany’s powerhouses. Its attractive infrastructure, sophisticated research environment and highly qualified population make it a splendid invest-ment opportunity. If you are looking for the hidden champi-ons for which Germany is famous, chances are you will find them in the Southwest. Economic reasoning is deeply rooted here.

Booming industry is matched by an attractive landscape, including the Black Forest and the Upper Rhine valley. The region produces some of the world’s finest wines and is known for its delicious dishes. However, your German skills might not get you very far due to the strong dialect. A famous ad for Baden-Württemberg ran the slogan, “We can do everything. Except speak standard German.” However, we are certain you will understand our partner Arnd Klein when he introduces you to Stuttgart and the Southwest.


Ulrich Ackermann

Regional Head Southwest Stuttgart,

KPMG in Germany

[email protected]



https://www.youtube.com/watch?v=NwRlh6dRsFc

https://www.youtube.com/watch?v=NwRlh6dRsFc

07 New Salary Criteria in Germany

With effect from 1 January 2017, the salary criteria for EU Blue Cards issued by German authorities have increased and the new criteria also apply to EU Blue Card-based entry visas (national visas).

The German government has increased the minimum wage. Introduced only two years ago, the minimum gross wage has now been raised to 8.84 euros per hour with effect from the beginning of this year, up from 8.50 euros. It affects all individuals working in Germany, regardless of their nationality. This takes precedence over any other agree-ments in employment contracts or assignment contracts.

Furthermore, Germany has revised its salary criteria for the EU Blue Cards that it issues. For shortage occupations, the new criterion is 39,624 euros (in 2016: 38,688 euros) and for all other occupations it is 50,800 euros (in 2016: 49,600 euros). All applications for EU Blue Cards or EU Blue Card-based entry visas (national visas) bearing a start date of 1 January 2017 or later have to comply with the new salary criteria.

Companies intending to hire (non-privileged) third-country nationals have to take the new salary criteria into account when offering employment contracts to candidates. Entry visas (national visas) and EU Blue Cards that have already been issued are not affected by the new salary criteria, so the related employment contracts do not need to be amended.

EU Blue Card salary criteria The EU Blue Card is an important type of combined resi-dence and work permit under German immigration law. Although visas are regularly issued with a validity of 90 days, entry visas are mainly issued under the same requirements as permanent EU Blue Cards:

• Work in Germany under a local employment contract

• Possession of a German (or equivalent foreign) university degree

• A salary that complies with the salary criteria

In terms of salary, German immigration law differentiates between shortage occupations and other occupations. The location of a worker’s employing entity is not taken into account, so even foreign companies located abroad, which assign employees to Germany, are legally required to pay the statutory minimum wage during an assignment. Individuals can sue their employers – even if they are located abroad – in Germany if they are not paid according to Germany’s mini-mum wage rules.

For additional information or assistance, please contact:

KPMG Rechtsanwaltsgesellschaft mbH

Dr. Thomas Wolf

Partner, Employment & Global Immigration Services

[email protected]

Dr. Sebastian Klaus

Partner, Employment & Global Immigration Services

[email protected]



08 Invest in Bavaria

Germany's regions have developed special economic profiles. In our new series, we let external experts share their insights. First, Dr. Wolfgang Hübschle explains why Munich and the Internet of Things match so well.

Munich and the Internet of Things – you could be forgiven for thinking they were made for each other. The European Com- mission had good reason for selecting Munich as the EU’s premier ICT hub, ahead of London and Paris, in 2014. A range of new offshoots by global players and a lively start-up scene are further boosting Munich’s dynamism, as high-profile examples testify.

The IoT world in Munich

For instance, the Chinese telecommunications group Huawei decided to locate the headquarters of its European Research Centre (ERC), with a total of 18 associated research institutions across Europe, in the Bavarian capital. Since 2015, Huawei has also been ramping up a 5G test bed in Munich, which will set new benchmarks for mobile standards. Moreover, the Chinese group and the German software giant SAP formed a strategic partnership in 2012, covering joint work on innovations in the field of Industry 4.0. For SAP too, this venture is just one building block among many; there is also an SAP IoT lab in Munich.

Aside from Huawei, the Munich region has a string of other companies with a prime focus on Internet of Things work and research. These include Intel, who recently decided that IoT will be at the core of its future strategy. This is good news for Munich because Intel already operates three IoT units there, including its wholly owned subsidiary Wind River. There is also Intel’s IoT Ignition Lab, which is driving research into IoT solutions for a range of vertical industries as well as supporting relevant start-ups. Intel, like many others, bene-fits from collaboration with both locally based companies and global partnerships. For example, Intel has announced that it will carry out road tests with 40 autonomous vehicles this year in collaboration with car maker BMW and Mobileye, an

Israeli manufacturer of driver assistance systems. And BMW isn’t the only vehicle manufacturer with IoT ambitions either. VW is also actively looking for innovations. That’s why in 2014 it established its Data Lab in Munich, where new IT solutions for big data and the Internet of Things are to come to fruition, in close collaboration with universities and technology partners.

Innovative collaboration with Watson IoT

IBM’s announcement that it would be setting up the global headquarters of its Watson IoT unit in Munich created quite a stir in the digital industry. With its hub, IBM offers customers, start-ups, universities, research institutions and partners access to the cloud-based IBM Watson IoT platform to galvan-ise the development of cognitive apps, services and solutions. The first few companies have seized the opportunity with enthusiasm: last year, IBM formed a strategic partnership with the automotive supplier Schaeffler and also launched a joint research programme, IBM Cognitive Computing, with BMW. “The German economy is superbly positioned for digitalisation and Industry 4.0 – its key advantage is its high level of industri-alisation,” says Martina Koederitz, CEO of IBM Deutschland and IBM General Manager for Austria and Switzerland. Among other projects, Watson is to further revolutionise Bragi’s smart headphones (hearables), proving that start-ups can also bene-fit from the IoT platform’s capacities for innovation.

A key ingredient of Munich’s digital ecosystem is its vivid start-up scene, which – in mutual symbiosis with global oper-ators – ensures a constant supply of ideas and strengthens the system’s capacities and innovativeness. The intelligent heating assistant tado° and the smart glove ProGlove are two of many that could be mentioned here. The developments and collaborations in the local IoT scene should ensure that Munich maintains and extends its global IoT leadership.



Great location – recent investments in Bavaria by foreign and domestic companies from various industries


Tettau

Schweinfurt

HEINZ-GLAS GmbH &. Co. KGaA

ADIDAS AG

Gerresheimer Tettau GmbH

Sandler AG

Siemens Aktiengesellschaft

W. MARKGRAF GmbH & Co. KG

Crown GabelstaplerGmbH & Co. KG

BMW AG

ProSiebenSat.1 Media SE

General Electric Company, Google Inc., Huawei Technologies Co., Ltd.

International Business Machines Corporation, Intel Corporation,Microsoft Corporation

Liebherr-InternationalDeutschland

GmbH

Nexans autoelectric GmbH,BHS Trading S.a.r.L.

Innocoll GmbH

SMP Deutschland GmbH

KUKA Aktiengesellschaft

Schaeffler Technologies AG & Co. KG

Hof

Bayreuth

Bamberg

Nuremberg

Munich

Würzburg

Neustadt a. d. Aisch –Bad Windsheim

Ansbach

Amberg

TirschenreuthNeustadt

Weiden

Regensburg

RodingCham

Passau

WallersdorfDeggendorf

Landshut

SchierlingIngolstadt

Saal

Penzberg

Augsburg

Würzburg

Kempten

Lindberg

Liebherr-International Deutschland GmbH

Roche Deutschland Holding GmbH


Andreas Glunz

Managing Partner


KPMG, Germany

[email protected]

Dr. Wolfgang Hübschle

Head of Invest in Bavaria

[email protected]



Key Events09

CeBIT IT trade show 20–24 March, Hanover

HANNOVER MESSE industrial show 24–28 April, Hanover

2017 IIHF Ice Hockey World Championship 5–21 May, Cologne

2017 World Table Tennis Championships 29 May–5 June, Dusseldorf

documenta art exhibition 10 June–17 September, Kassel

Conference G20 Africa Partnership 12–13 June, Berlin

KPMG events:

Business Breakfast: hot topics for US companies 03 March, Dusseldorf 07 March, Stuttgart 15 March, Munich Brexit Roadshow: the impact on the German economy (in German) 07 March, Berlin 08 March, Frankfurt (Main) 09 March, Dusseldorf 14 March, Hanover 16 March, Stuttgart

Real Estate Fund Conference 01–02 June, Frankfurt

21 March, Munich 23 March, Cologne 29 March, Nuremberg 04 April, Hamburg

That special eventWhen it comes to computer expos, you won’t find one larger than CeBIT, either in terms of size or attendance figures. It is the most significant trade fair in the field of office automation, information technology and telecommunica-tion (translated and abbreviated as ‘CeBIT’). 49 per cent of the visitors say there is no exhibition like this. Roughly a third of the attendees are top managers, which further underlines the event’s huge im-pact and future orientation.

CeBIT will take place in Hanover (northern Germany) from 20 to 24 March. It is certainly worth a visit!


https://home.kpmg.com/de/de/home/events/2017/03/hot-topcis-fuer-us-unternehmen-duss.html

https://home.kpmg.com/de/de/home/events/2017/03/hot-topics-fuer-us-unternehmen.html

https://home.kpmg.com/de/de/home/events/2017/02/hot-topics-muc.html

https://home.kpmg.com/de/de/home/events/2017/03/welche-folgen-hat-der-brexit-fuer-deutsche-unternehmen-.html

10 Three Questions... for Bernhard Mattes, President of the American Chamberof Commerce in Germany e.V.

1. How do Americans perceive Germany’s economic role in the world? Because of its strong economy and robust industrial core, Germany is not only a reliable trading partner, but has also returned to its position as the world's big-gest exporter. The US is an important consumer of German goods – particularly in sectors such as machinery, vehicles and pharmaceuticals. Moreover, German companies represent substantial investments in the US. Roughly 3,500 German subsidiaries employ around 620,000 American workers.

2. In your view, what is the particular strength of German industry? High-quality products and a highly skilled workforce ensure that the “Made in Germany” seal stands for excellence, innovation and efficiency. The German economy relies on a strong manufacturing base, and its dual training system serves as a model for countries around the world.

3. Which cultural site or event in Germany would you recommend as a must-see? As a long-time resident of Cologne, I definitely recommend visiting the city’s landmark – the Cologne Cathedral – whose tall twin spires can be seen from miles away. The Rheingau Music Festival is also one of my favourite cultural events – you can listen to world-class music in historic locations, surrounded by the beautiful vineyards of the Rheingau.

A quick German lesson

Frauenquote, die – a specific term describing a regulation controlling the representation of women in companies’ decision-making bod-ies, which women have been fight-ing for for a long time. German politicians use this expression to emphasise their belief in gender equality. New legislation requires women to make up 30 per cent of some major corporations’ supervi-sory boards – is this a good or a bad thing? There’s a broad spectrum of opinions.

Our Publications Useful insights for conducting business in Germany …

Business Destination Germany Investment deci-sions are tough. Germany offers a wide range of opportunities. This analysis

shows why now is the best time to become part of “Made in Germany“. »

Investment in Germany This guide provides you with a comprehensive overview of the German business and legal environment, including

economic facts, legal forms, subsi-dies, tariffs, accounting principles and taxation. »

German Tax Facts App Everything you need to know about taxes for companies, investors and employees, all combined in one smart and handy app. Now available at the Apple App Store and Google Play Store. »

German Tax Monthly German Tax Monthly provides information on the latest tax developments in Germany, focusing on foreign investors and selected topics of interest in daily international business. Subscribe

Brexit – an Impact Analysis Great Britain was the pre-ferred location for the Euro-pean headquarters of non-EU multinationals. How will they

be affected by Brexit? And which country is now the most promising? »

Germany-Japan Tax Treaty For the thousands of Japanese companies in Germany, as well as future investors, the new double tax agreement will

bring significant advantages. »

Contact

KPMG AG Wirtschaftsprüfungsgesellschaft Andreas Glunz* Managing Partner, International Business T +49 211 475-7127 [email protected]

Joachim von PrittwitzSenior Manager, International BusinessT +49 30 [email protected]

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