Portrait of the German chemical and pharmaceutical industry Portrait of the German chemical industry German chemical industry indicators overview 1995 2000 2005 2010 2011 2012 2013 112,3 135,0 152,8 171,1 184,2 186,8 190,6 Production (change y/y in %) 2,1 2,4 4,7 11,3 2,1 -2,7 1,9 Employment (in 1000) 536 470 441 415 429 434 438 Exports (in billion Euro) 51,8 76,6 104,8 142,4 153,2 162,1 166,3* Imports (in billion Euro) 32,3 52,7 73,4 101,6 111,3 111,4 109,4* 5,8 6,8 5,4 5,8 6,2 6,3 6,4* 29,5 46,0 41,0 56,3 57,7 57,2 - 5,3 7,1 7,9 8,3 9,0 9,7 10,5** Sales (in billion Euro) Fixed asset investments (in billion Euro) FDI (stocks in billion Euro) R&D expenditure (in billion Euro) sources: Statistisches Bundesamt, VCI * estimation ** budget plan * estimation, **plan Chemical industry is knowledge based and capital-intensive Economic key measures Share of chemical industry in the manufacturing sector, 2013 24.1 average, calculated based on sales 17.5 15.2 12.2 11.3 11.0 9.2 7.4 Sales source: VCI Employees Gross saleries Fixed asset and wages investments (2012) R&D Energy expenditures consumption (2012) Exports Imports Basic chemicals: at the beginning of the value chain Innovation Basic chemicals Further processing industries Manufacturing of consumer and investment goods The chemical industry manufactures a wide range of products Production structure of the German chemical/pharmaceutical industry Production value in percent, 2013 production value: 143,3 bn. euro Phamaceuticals 20% Detergents and personal care products 8% Inorganic basic chemicals 9% Petrochemicals 19% Polymers 20% Fine & Specialty products 24% sources: Destatis, VCI About 93 percent of chemical companies employ less than 500 persons Size structure of the German chemical/pharmaceutical industry Share of enterprises in percent, 2012 companies total: 2.057 > 500 staff 142 companies 6,9% 10 - 49 staff 50 - 499 staff 886 companies 43,1% source: Destatis, VCI SME total: ca. 93% 1.029 companies 50,0% About 93 percent of chemical companies employ less than 500 persons Size structure of the German chemical/pharmaceutical industry Share of enterprises in percent, 2012 71.7 63.8 50.0 43.1 31.1 25.2 6.9 number of companies 10 - 49 staff source: Destatis, VCI 5.2 3.1 staff 50 - 499 staff sales > 500 staff The TOP 20 2013 The Top 20 Companies (2013) Unternehmen 1 BASF SE 2 Bayer AG 3 Fresenius SE & Co. KGaA 4 Linde AG 5 Henkel AG & Co. KGaA 6 Boehringer Ingelheim 7 Evonik Industries AG 8 Merck KGaA 9 Lanxess AG 10 Beiersdorf AG 11 B. Braun Melsungen AG 12 Wacker Chemie AG 13 K+S AG 14 Stada Arzneimittel AG 15 Westfalen AG 16 Fuchs Petrolub AG 17 Symrise AG 18 Altana AG 19 SGL Carbon SE 20 DAW SE source: Die Welt, 30. Juni 2014 8 Umsatz (Mio. Euro) 73.973 40.157 20.331 16.655 16.355 14.065 12.874 11.095 8.300 6.141 5.170 4.479 3.950 2.014 1.860 1.832 1.830 1.765 1.477 1.230 Beschäftigte 112.206 113.200 178.337 63.487 46.850 47.492 32.995 38.154 17.000 k.A. 48.264 16.009 14.421 9.154 1.371 3.846 6.105 5.741 6.284 5.480 Chemistry is one of Germany‘s key industries Share in sales of the manufacturing sector, 2013 Production growth of the Top 5, 2003 – 2013 p.a. (average growth rates, in %) Electrical engineering 21.0% 3.9 36.4% Vehicle construction 2.5 Mechanical engineering 2.5 12.8% 11.0% 8.7% Chemical industry 10.1% Vehicle construction Mechanical engineering Chemical industry Food Electrical engineering Others source: Destatis, VCI Food 1.6 1.1 total manufacturing: 2,0% Chemistry is one of Germany‘s key industries Share in sales of the manufacturing sector 2013 Vehicle construction 21.0% Others 36.4% Mechanical engineering 12.8% Electrical engineering 8.7% source: Destatis, VCI Food 10.1% Chemical industry 11.0% Germany still ranking fourth worldwide Top 10: chemical producers Chemical sales, in bn Euro, 2013 1,291 Sales world total: 4,127 billion euro 652 208 China United States Japan source: Chemdata International ,VCI 196 Germany 144 South Korea 114 100 83 80 66 France India Brazil Italy Switzerland Germany is the biggest chemical producer in Europe Chemical sales in the EU 28 Share in sales in percent, 2013 others 16% Germany 26% Ireland 5% Belgium 6% Total: 758 Billion Euro Spain 7% France 15% United Kingdom 7% Netherlands 7% source: Chemdata International, VCI 12 Italy 11% High growth rates in Asia Top 10: production growth chemical/pharmaceutical industry average annual growth rates 2008-2013 13.9 World: 4.0 1.7 0.4 -0.9 3.4 4.4 0.2 -0.5 -1.2 -4.3 CN US JP source: Chemdata international, Feri, VCI DE KR FR BR IT IN GB Germany: world champion of chemical exports TOP 10: Chemical exports In bn Euro, 2012 160.5 146.5 102.7 86.8 77.4 75.2 64.9 Germany USA Belgium source: Chemdata International ,VCI China Netherlands France United Kingdom 63.3 Switzerland 58.6 57.4 Japan Ireland Europe is the most important region for the German chemical industry German chemical exports by regions in percent, 2013 Asia 13.8% Africa 1.7% Oceania 0.8% Latin America 3.1% NAFTA 10.3% EU 27 58.7% other Europ. Countries 11.6% source: Destatis, VCI Germany is benefiting from higher growth rates outside of the EU Growth rates of German chemical exports by regions Annual average growth rates 2007-2013 in percent 13.1 9.9 7.4 7.0 World: 5.1% 2.4 Latin America source: Destatis, VCI Asia NAFTA EU 12 EU 15 Capital spending abroad is overtaking capital spending in Germany Capital spending of the German chemical industry In Germany and abroad, in mn Euro 9000 8000 capital spending in Germany 7000 6000 5000 capital spending abroad 4000 3000 2000 1992 1994 source: Destatis, VCI 1996 1998 2000 2002 2004 2006 2008 2010 2012 German chemical industry invests abroad FDI of the German chemical industry FDI stocks, in bn Euro 70.0 60.0 57,2 50.0 40.0 30.0 20.0 10.0 1991 1993 1995 source: Deutsche Bundesbank, VCI 1997 1999 2001 2003 2005 2007 2009 2011 Europe is the most important target for foreign investment FDI of the German chemical industry by regions FDI stocks, in percent, 2012 Latin America 3.1% Asia 17.1% Africa 1.6% EU 27 37.0% NAFTA 27.4% other European Countries 13.7% source: Deutsche Bundesbank, VCI Production plants abroad gain importance Key figures of German chemical companies 2012 in Germany Number of companies 2.057 abroad 1.427 Sales (in billion Euro) in Germany 187 Mrd. € abroad 191 Mrd. € Persons employed (in thousand) in Germany abroad source: Deutsche Bundesbank, Destatis, VCI 434.300 390.000 Strategies for market development vary by regions Chemical exports and sales by foreign subsidiaries In bn Euro, 2012 95.8 exports sales by foreign subsidiaries 62.0 58.0 41.6 22.3 18.4 16.3 11.1 EU 27 other European Countries source: Deutsche Bundesbank, Destatis, VCI NAFTA Asia Germany is attractive for foreign investors FDI of foreign companies in the German chemical industry In bn. Euro 45.0 42,0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 1991 1993 1995 source: Deutsche Bundesbank, VCI 1997 1999 2001 2003 2005 2007 2009 2011 Industry invests in innovation R&D expenditure of the German chemical and pharmaceutical industry in billion Euro 12,000 10,507 10,000 9,743 9,048 9,034 8,000 6,717 R&D chemical industry 6,000 4,000 2,000 R&D pharmaceutical industry 0 1999 source: Stifterverband, VCI 2001 2003 2005 2007 * planned 2009 2011 2013* Germany ist the forth biggest innovation location worldwide TOP 10 and the EU: R&D expenditure of the chemical/pharmaceutical industry, share of the countries in expenditure of the world*, 2012 36.0% World total: 112,6 bn Euro 25.7% 16.9% 9.4% 6.9% 5.9% 4.1% 4.1% 1.9% USA EU-27 Japan China source: OECD, Eurostat, Chemdata International 24 Germany United France Kingdom Switzerland * internal R&D expenditure South Korea 1.5% 1.5% Belgium Denmark