DOING BUSINESS IN SWITZERLAND OR DOING BUSINESS IN EUROPE FROM A SWISS BASE July 2015 www.amcham.ch
Agenda At a Glance Economy and Business Efficiency Relation U.S.A. Switzerland Quality of Live, Education, Infrastructure, Politics Swiss-American Chamber of Commerce Conclusions September 13, 2015 2
Overview of Switzerland Land area (km 2 000) : 41.3 km 2 Population (millions): 8.1 Capital: Berne Languages: - 4 official languages - German (63.5%) - French (22.5%) - Italian(8.1%) - Rhaeto-Romanic (0.5%) - Other languages (5.4%) - English widely spoken Life expectancy: Male 81 years Female 85.2 years Citizens: U.S.-Citizens in CH 17,954 CH-Citizens in the U.S. 78,696 At a Glance Data: Based on year 2011 September 13, 2015 3
Environment Excellent Conditions to Do a Business Business environment Strong economy Business-friendly regulations - Flexible labor law - High labor productivity - Reasonable social security cost - Competitive tax regime At a Glance Individual environment High quality of life 3 Swiss cities among Top 10, Zurich #2, Geneva #8, Berne #13, according to Mercer Management Study Quality of Life 2015 Strong work ethics Excellent educational system Reliable public transport system trains between cities every 30 minutes High buying power September 13, 2015 4
Inhabitants of Major Cities, International Airports and Neighboring Countries GERMANY At a Glance FRANCE Basel (173k; 501k) Winterthur (105k, 139k) Zurich (402k, 1.185k) St. Gallen (75k, 150k) AUSTRIA LIECHTENSTEIN Berne (129k, 352k) Lucerne (81k, 209k) Lausanne (132k, 335k) Geneva (196k, 528k) Lugano (63k, 136k) ITALY Legend: City (inhabitants city, inhabitants agglomeration) / Source: wikipedia.org (Statistical figures from 31.10.2010) September 13, 2015 5
At the Hub of Europe Short Flight Time to Big European Cities At a Glance Oslo Stockholm Helsinki Copenhagen Moscow London Amsterdam Berlin Warsaw Luxembourg Paris Prague Vienna 1.6 h Budapest Bucharest Lisbon Madrid Barcelona Rome Belgrade Athens Source: Swiss - 2015 September 13, 2015 6
Traveling Time by Train between Major Cities Network of 4.583 km, electrified. Increase of domestic train frequency from 30 to 20 min. Paris 3:00 h Basel Winterthur St. Gallen Zurich Quality of Live, Education, Infrastructure, Politics Munich 3:30 h Lucerne Berne Lausanne Geneva Lyon 1:50 h Lugano Source: Swiss Federal Railways - 2015 Milan 1 h September 13, 2015 7
Agenda At a Glance Economy and Business Efficiency Relation U.S.A. Switzerland Quality of Live, Education, Infrastructure, Politics Swiss-American Chamber of Commerce Conclusions September 13, 2015 8
Strong Economy - Some Figures Economy and Business Efficiency Currency - traditionally strong Swiss Francs: Low inflation: -1.037% p.a. GDP US$ (bn) 650.8 GDP per capita US$ (PPP) : 53.769 Unemployment rate: 4.39% Youth Unemployment rate: 8.50% Exports of goods: 35.2% of GDP VAT: 8 % Based on year 2015 Source: IMD World Competitiveness Yearbook 2012 September 13, 2015 9
Switzerland Tops in the Global Competitiveness Index Economy and Business Efficiency Country / Economy Rank 2010-2011 Rank 2011-2012 Rank 2012-2013 Rank 2013-2014 Rank 2014-2015 Switzerland 1 1 1 1 1 Singapore 3 2 2 2 2 United States 4 5 7 5 3 Finland 7 4 3 3 4 Germany 5 6 6 4 5 Japan 6 9 10 9 6 Hong Kong SAR 11 11 9 7 7 Netherlands 8 7 5 8 8 United Kingdom 12 10 8 10 9 Sweden 2 3 4 6 10 Source: World Economic Forum 2015 September 13, 2015 10
Norway Switzerland Sweden Canada Germany Singapore Finland USA Luxembourg Denmark Netherlands Australia Austria United New Zealand Hong Kong France Japan Taiwan Chile Belgium Korea Qatar China UAE Czech Slovak Estonia Poland Israel Malaysia Average Mexico Russia Brazil Italy Peru Colombia Thailand Slovenia Lithuania India Kazakhstan South Africa Ireland Latvia Spain Indonesia Philippines Bulgaria Turkey Croatia Iceland Romania Hungary Portugal Jordan Venezuela Ukraine Argentina Greece Top Country Credit Rating 2013 Rating on a scale of 0-100 assessed by the Institutional Investor Magazine ranking 100 Economy and Business Efficiency 90 80 70 60 50 40 30 20 10 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 11
Switzerland Ireland Canada Denmark Finland Sweden USA Hong Kong Netherlands Israel United France Norway Australia Malaysia Iceland Germany Singapore UAE India Turkey New Luxembourg Latvia Austria Chile Kazakhstan Philippines Taiwan Greece Japan Belgium Poland Indonesia Average Russia Thailand Spain Korea Jordan Slovak Argentina Italy Mexico Qatar Romania Slovenia Venezuela China Hungary Portugal Colombia Czech South Africa Brazil Lithuania Estonia Croatia Peru Ukraine Bulgaria Switzerland's High Finance Skills What You Hear is What You Get are readily available Skilled labour 9 Economy and Business Efficiency 8 7 6 5 4 3 2 1 are not readily available 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 12
Hong Kong USA Switzerland Malaysia Canada Germany Australia United Denmark Taiwan Norway Singapore Sweden Japan Indonesia Thailand Netherlands Chile South Africa India Luxembourg Israel UAE Finland Ireland Philippines Qatar Poland France New Zealand Belgium Turkey Average Jordan Korea Peru Austria Spain Mexico Estonia Iceland Colombia Brazil Lithuania Kazakhstan Latvia Italy China Russia Romania Portugal Hungary Czech Slovenia Greece Croatia Ukraine Slovak Bulgaria Argentina Venezuela Finance Stock Market Efficiency Stock Markets 2014 provide adequate financing to companies Stock markets 9 Economy and Business Efficiency 8 7 6 5 4 3 2 1 do not provide adequate financing to companies 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 13
Norway Switzerland Finland USA Denmark Germany Sweden UAE Netherlands Malaysia Ukraine United Ireland Hong Kong Canada Luxembourg Israel Australia Singapore Belgium Chile India Turkey Qatar Indonesia Thailand France Iceland Austria Argentina Average Czech Japan Brazil Jordan Latvia Peru Poland Greece Mexico Colombia Spain Kazakhstan Italy Philippines China Korea New Zealand Estonia Portugal Taiwan South Africa Slovenia Slovak Lithuania Russia Romania Croatia Venezuela Hungary Bulgaria Switzerland's Easy Access to Well Educated and Skilled People easy access to well-educated and skilled people 9 8 Economy and Business Efficiency 7 6 5 4 3 2 1 difficult access 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 14
Switzerland Germany Finland Hong Kong Malaysia Sweden USA Taiwan United Canada Chile Japan Singapore Estonia Austria UAE Luxembourg Norway Australia Denmark Ireland Israel Jordan Indonesia New Zealand Qatar Czech Netherlands Thailand Korea Latvia France Lithuania Philippines Slovak Belgium Poland Average Peru Venezuela South Africa Kazakhstan Turkey Hungary Bulgaria India Colombia Mexico Spain Russia Italy China Romania Ukraine Portugal Slovenia Brazil Croatia Iceland Argentina Greece Cost of Capital in Switzerland Encourages Business Development encourages business development Cost of capital 9 Economy and Business Efficiency 8 7 6 5 4 3 2 1 deters business development 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 15
Hong Kong SAR (1) Switzerland (2) Singapore (3) Denmark (6) United States (11) China Mainland (15) United Kingdom (20) Canada (26) Ireland (40) Luxembourg (87) Median Germany (109) Sweden (100) Spain (116) Netherlands (123) Japan (133) France (134) Belgium (139) Switzerland's Top Flexible Staff Policies Lowers Employers' Risks Economy and Business Efficiency High flexibility 6 5 4 3 2 1 Low flexibility 0 In parantheses: Overall ranking Source: World Economic Forum, The Global Competitiveness Report 2014-2015 September 13, 2015 16
UAE Bulgaria Qatar Ireland Latvia Lithuania Romania Hong Kong Singapore Slovenia Taiwan Ukraine Czech Hungary Poland Chile Croatia Finland Iceland Kazakhstan Russia Thailand Turkey Estonia Switzerland Korea Slovak Sweden United Average Denmark Portugal Austria Brazil China Colombia Indonesia Malaysia Netherlands Greece Canada Israel Norway Italy New Zealand South Africa Luxembourg Australia Jordan Mexico Peru Philippines Spain Germany India France Belgium Venezuela Argentina USA Japan Competitive Corporate Tax Rates 2014 40% Economy and Business Efficiency 35% 30% 25% 20% 15% 10% 5% 0% Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 17
Various Corporate Tax Rates in Switzerland A Closer Look Lucerne Obwalden Nidwalden Appenzell AR Appenzell IR Zug Schwyz Uri Glarus Schaffhausen Thurgovia Grisons Neuchâtel St. Gall Argovia Fribourg Ticino Basel-Country Jura Zurich Valais Berne Solothurn Basel-City Vaud Geneva 12.32% 12.66% 12.66% 13.04% 14.16% 14.60% 14.86% 15.12% 15.71% 16.04% 16.43% 16.68% 17.01% 17.40% 19.17% 19.86% 20.67% 20.70% 20.77% 21.15% 21.57% 21.64% 21.85% 22.18% 22.79% 24.16% Economy and Business Efficiency 2015 2014 Source: KPMG s Corporate and Indirect Tax Rate Survey 2015 September 13, 2015 18
Corporate Tax Rates 20 Cantons Within The Top 40 in Europe Montenegro Bosnia-Herzegowina, Bulgaria, Lucerne Ireland, Liechtenstein, Cyprus Nidwalden, Obwalden Appenzell AR Appenzell IR Zug Schwyz Albania, Latvia, Lithuania, Serbia Uri Glarus Schaffhausen Romania Thurgovia Grisons Slovenia Neuchâtel St. Gall Belarus, Ukraine Argovia Poland, Czechia, Hungary Fribourg Finland, Croatia, Island, Turkey Ticino Basel-Country Jura Estonia, UK Zurich Valais Berne Solothurn Sweden, Slovakia Basel-City Vaud Portugal Geneva 9.00% 10.00% Economy and Business Efficiency 12.32% 12.50% 12.66% 13.04% 14.16% 14.60% 14.86% 15.00% 15.12% 15.71% 16.04% 16.00% 16.43% 16.68% 17.00% 17.01% 17.40% 18.00% 19.17% 19.00% 19.86% 20.00% 20.67% 20.70% 20.77% 21.00% 21.15% 21.57% 21.64% 21.85% 22.00% 22.18% 22.79% 23.00% 24.16% Source: KPMG s Corporate and Indirect Tax Rate Survey 2015 September 13, 2015 19
Development of Corporate Tax Rates Worldwide, Europe and Switzerland 45% Economy and Business Efficiency 40% United States, 40.00% 35% 30% Latin America, 26.16% 25% OECD, 24.77% Global Average, 23.68% 20% EU, 22.15% 15% Switzerland, 22.15% 10% 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: KPMG s Corporate and Indirect Tax Rate Survey 2015 September 13, 2015 20
UAE Bulgaria Qatar Ireland Latvia Lithuania Romania Hong Kong Singapore Slovenia Taiwan Ukraine Czech Republic Hungary Poland Chile Croatia Finland Iceland Kazakhstan Russia Thailand Turkey Estonia Switzerland Korea Slovak Republic Sweden United Kingdom Average Denmark Portugal Austria Brazil China Mainland Colombia Indonesia Malaysia Netherlands Greece Canada Israel Norway Italy New Zealand South Africa Luxembourg Australia Jordan Mexico Peru Philippines Spain Germany India France Belgium Venezuela Argentina USA Japan Corporate Tax Rate on Profit Economy and Business Efficiency 40 35 30 25 20 15 10 5 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 21
Switzerland UAE Hong Kong Ireland Chile Japan USA New Zealand Norway Australia Sweden Singapore Malaysia Netherlands Canada Germany United Luxembourg Denmark South Africa Poland Portugal Qatar Latvia Finland Iceland Austria Indonesia Estonia Taiwan China Belgium Average Kazakhstan Brazil Jordan Israel Thailand France Venezuela Turkey Peru Czech Russia Bulgaria Hungary Spain Lithuania Mexico Colombia Croatia Philippines India Slovenia Ukraine Argentina Slovak Korea Italy Greece Romania Switzerland's Business Activity is Not Significantly Affected by Tax Evasion does not hamper business 8 Economy and Business Efficiency 7 6 5 4 3 2 1 does hamper business 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 22
Ireland Hong Kong Switzerland Singapore Bulgaria New Zealand Malaysia Sweden Finland Taiwan UAE Qatar Netherlands Indonesia India United Czech Canada Germany Estonia Kazakhstan South Africa Thailand Australia Chile Korea Luxembourg Israel Hungary Turkey Jordan Norway Latvia Average Poland USA Iceland Lithuania Austria Denmark Philippines Venezuela Slovenia Peru Slovak Russia China Mexico Portugal Spain Belgium Japan Colombia Ukraine Romania Greece Brazil France Croatia Argentina Italy Excellent Marks for Swiss Tax Policies from the Perspective of Investors do not discourage entrepreneurial activity 9 8 Economy and Business Efficiency 7 6 5 4 3 2 1 discourage entrepreneurial activity 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 23
Very Low Rates of Value Added Tax (VAT) in Comparison to European Countries Economy and Business Efficiency Jersey 5.00% Switzerland 8.00% Liechtenstein 8.00% Global average 15.79% Bosnia & Herzegovina 17.00% Macedonia, Malta, Russia, Turkey 18.00% Germany, Montenegro 19.00% OECD average Albania, Austria, Belarus, Bulgaria, Estonia, France, Serbia, Slovakia, Ukraine, UK Belgium, Czech Rep., Latvia, Lithuania, Netherlands, Spain EU average 19.18% 20.00% 21.00% 21.61% Italy, Slovenia 22.00% Greece, Ireland, Poland, Portugal 23.00% Finland, Romania 24.00% Croatia, Denmark, Iceland, Norway, Sweden 25.00% Hungary 27.00% 0% 5% 10% 15% 20% 25% 30% Source: KPMG s Corporate and Indirect Tax Rate Survey 2015 September 13, 2015 24
UAE Qatar Singapore Kazakhstan Malaysia Philippines Indonesia USA Hong Kong Taiwan Japan Switzerland Colombia Australia Russia Canada Korea Spain Ireland Slovak Peru Average Argentina Jordan India Mexico Thailand Chile Germany Luxembourg Latvia France Lithuania Norway Italy Belgium United Netherlands Israel China Czech Austria South Africa Turkey Greece Poland Sweden Iceland New Zealand Romania Estonia Brazil Portugal Finland Bulgaria Slovenia Denmark Ukraine Croatia Hungary and Will Most Probably Remain Constant as VAT Plays an Inferior Role of Tax Revenues Collected indirect tax revenues (Taxes on goods and services as % of GDP) 18 Economy and Business Efficiency 16 14 12 10 8 6 4 2 0 Source: IMD World Competitiveness Yearbook 2015 (based on figures from 2012) September 13, 2015 25
Taxes - Conclusions Economy and Business Efficiency Switzerland offers an outstanding tax climate to foreign investors. Cantons offer tax incentives for corporate newcomers, comparable to other competitive locations; in certain areas also federal tax incentives Excellent international tax treaty network makes Switzerland an ideal place for holding companies and regional headquarters. September 13, 2015 26
Switzerland is a Magnet for Multinational Companies and Organizations Global Fortune 500 Companies per mio inhabitants* Economy and Business Efficiency 1. Switzerland 1.57 2. Sweden 1.12 3. USA 0.63 4. Canada 0.62 5. UK 0.54 6. France, Australia 0.42 8. Netherlands 0.35 9. Australia 0.41 10. Japan 0.27 11. German 0.25 12. Spain 0.19... 16. Italy 0.12 * Only countries with a population over 8 million are considered Source: Fortune 500 (2014), CIA The Worl Factbook, Additionally, Switzerland is home to: Foreign regional HQs: P&G, Medtronic, Philipp Morris, Dow, Amgen, Caterpillar, ebay, Sun, Colgate, HP, IBM, Kraft, Google, Yahoo, Chiquita, Alcoa, Du Pont and many more. International NGOs: FIFA, ICRC, UNO, WHO, WTO, UNICEF, ITU, WWF and many more. September 13, 2015 27
Thailand Finland Argentina Estonia Romania Poland Czech Republic Belgium Slovak Republic Mexico Latvia France USA India Australia Canada Indonesia Colombia Chile Brazil United Kingdom Peru South Africa Turkey Ukraine Jordan Taiwan Norway Netherlands Switzerland Denmark Germany Ireland Slovenia Korea Sweden Luxembourg Iceland Malaysia Philippines Hungary Austria Venezuela Israel Bulgaria Hong Kong China Mainland Average Russia Lithuania Croatia Greece Spain Japan Italy Portugal Kazakhstan New Zealand UAE Singapore Qatar Switzerland's Foreign Trade Activities Exceeds the Domestic Trade International Trade Current Account Balance as Percentage of GDP 2013 Economy and Business Efficiency 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 28
Switzerland Netherlands Luxembourg Malaysia Hong Kong Ireland UAE Germany Sweden Singapore Qatar Jordan Indonesia Finland Austria Israel United Belgium Canada Poland Slovak Chile Philippines Kazakhstan Peru Denmark USA Average Turkey Latvia Australia Thailand Czech India Hungary Ukraine Lithuania Argentina Greece Taiwan Mexico Romania Colombia Venezuela Iceland Estonia Norway Italy Korea South Africa Brazil France New Zealand Spain Portugal Slovenia Bulgaria China Russia Japan Croatia Switzerland's Level of International Experience of Senior Management significant International experience of senior managers is generally 8 Economy and Business Efficiency 7 6 5 4 3 2 1 low 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 29
Norway Switzerland Singapore Luxembourg Sweden Finland Denmark Canada Netherlands Hong Kong Australia New Zealand Germany Austria Chile Taiwan USA Qatar United Belgium France Czech Estonia Slovak Japan UAE Poland Israel Korea Average Malaysia Mexico China Peru Brazil Slovenia Iceland Ireland Colombia South Africa Lithuania Turkey Thailand Italy Spain India Russia Croatia Portugal Bulgaria Indonesia Philippines Latvia Hungary Romania Kazakhstan Jordan Greece Ukraine Argentina Venezuela Switzerland Has One of the Lowest Investment Risk Euromoney country credit-worthiness scale from 0-100 in 2013 Economy and Business Efficiency 100 90 80 70 60 50 40 30 20 10 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 30
Canada Finland Singapore Australia Malaysia Hong Kong Norway Switzerland Denmark Latvia Sweden Turkey New Zealand Estonia Czech South Africa Luxembourg Chile Thailand Indonesia USA Brazil Philippines Slovak Qatar India Taiwan Israel Japan Iceland Netherlands Average Poland UAE Peru Jordan Ireland United France Lithuania China Germany Portugal Kazakhstan Belgium Colombia Mexico Russia Austria Ukraine Romania Venezuela Italy Bulgaria Hungary Korea Croatia Spain Greece Slovenia Argentina Adequate Banking Regulation Favors Easy Business Development in Switzerland sufficiently effective 9 Economy and Business Efficiency 8 7 6 5 4 3 2 1 is not sufficiently effective 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 31
Luxembourg Denmark Netherlands Switzerland Finland UAE Iceland Canada Singapore Sweden Greece Norway Latvia Israel Malaysia Belgium Portugal Philippines Germany Slovenia Poland Romania Indonesia Austria Lithuania Estonia Qatar India Hong Kong Korea Average Croatia Slovak Ukraine Czech Taiwan Australia Kazakhstan Jordan South Africa USA Ireland New Zealand Turkey China Argentina Mexico Bulgaria France Russia United Thailand Italy Peru Japan Hungary Spain Colombia Venezuela Chile Brazil Language Skills Switzerland Is a Polyglot are meeting the needs of enterprises 9 Economy and Business Efficiency 8 7 6 5 4 3 2 1 are not meeting the needs of enterprises 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 32
Agenda At a Glance Economy and Business Efficiency Relation U.S.A. Switzerland Quality of Live, Education, Infrastructure, Politics Swiss-American Chamber of Commerce Conclusions September 13, 2015 33
Sister Republics: Heros of Nation Creation Relation U.S.A. - Switzerland Wilhelm Tell David Crockett September 13, 2015 34
USA vs. Switzerland: THE RACE (1) Switzerland is #1 #1 Nobel prizes per capita (US #6) #2 Credit rating (US #8) #1 Tax evasion being adequately addressed (US #7) #4 Net position in direct investments (% of GDP) (US #20) #1 Cost of capital (US #7) #2 Risk of political instability (US #14) #1 Quality of life (US #19) #1 least CO 2 emission in % of GPD (US #34) #1 Chocolate consumption per capita (US #15) Source: IMD World Competitiveness Yearbook 2014, Wikipedia September 13, 2015 35
USA vs. Switzerland: THE RACE (2) USA is #1 #1 in No. of nobel prizes (CH #5) #1 Total GDP (CH #19) #1 Computers per capita (CH #8) #1 Stock market capitalization in US$ (CH #13) #1 Number of airline passengers (CH #28) #1 Economic performance (CH #10) #1 Export of commercial services in US$ (CH #16) #1 America s Cup Winner (CH #3) #1 in No. of McDonalds restaurants (CH #30) Source: IMD World Competitiveness Yearbook 201, Wikipedia, McDonalds September 13, 2015 36
Or are we equals? Agriculture as % of GDP both at 1% Industry as % of GDP USA 20 %, CH 26% Service as % of GDP USA 79%, CH 73% Innovative capacity USA #2, CH #3 Foreign high-skilled labor USA #2, CH #1 Business Efficiency USA #1, CH #2 IMD World Competitiveness Report USA #1, CH #2 Top 15 Tennis players (male) USA 1, CH 2 Top 15 Tennis players (female) USA 1, CH 2 Top 10 Alpine Skiiers (male) USA 2, CH 1 Top 10 Alpine Skiiers (female) USA 1, CH 1 We are both world champions! Source: IMD World Competitiveness Yearbook 2014, ATP ranking (Aug. 2015), FIS Ranking (end 2014) September 13, 2015 37
We Are Both World Champions! Relation U.S.A. - Switzerland September 13, 2015 38
Export to the USA Swiss exports to the U.S.A. (CHF bn) 28 26 Relation U.S.A. - Switzerland 25.9 CH view 24 22 22.3 23.3 20 19.5 19.5 20.0 18 18.3 18.4 17.7 16 14 14.7 14.0 14.3 13.8 14.2 16.1 12 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Swiss Customs Department September 13, 2015 39
USA, the second largest export market % of total Swiss Exports 2014 (CHF bn)* 20% 18.5% 18% Relation U.S.A. - Switzerland CH view 16% 14% 12% 12.4% 10% 8% 7.2% 6.6% 6% 4% 4.8% 4.2% 3.4% 3.0% 3.0% 2.8% 2.4% 2% 0% Germany USA France Italy UK China Hongkong Austria Japan Spain Netherlands Note: * based on total swiss export of CHF 208,285 bn Source: Swiss Customs Department September 13, 2015 40
Record Trade Surplus Significant Growth Swiss Trade Surplus with U.S.A. (CHF bn) Relation U.S.A. - Switzerland 16 15.0 CH view 14 13.0 13.5 12.2 12 11.3 10 8 7.0 7.8 8.4 8.5 9.6 9.9 9.0 10.0 9.6 6 6.0 4 2.4 2 1.1 0 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: State Secretariat for Economic Affairs SECO September 13, 2015 41
The Largest U.S. Companies in Switzerland 2015 Relation U.S.A. - Switzerland Company # of employees 1. McDonald s* 7,700 CH view 2. Johnson & Johnson 5,970 3. IBM* 3,000 3. Philip Morris International 3,000 5. Procter & Gamble 2,800 6. Hewlett-Packard 2,140 7. Mettler-Toledo 1,675 8. Liberty Global 1,500 9. Deloitte 1,300 10. Johnson Controls* 1,280 11. Medtronic 1,105 Note: *) estimated by the Swiss-American Chamber of Commerce Source: Swiss Customs Department September 13, 2015 42
Top Foreign Direct Investor in 2014 Cumulated investments 2014 of foreign investors in the USA (in % of total) 18% Relation U.S.A. - Switzerland US view 16% 15.5% 14% 12.9% 12% 10% 10.5% 9.0% 8% 7.7% 7.7% 7.7% 6% 4% 2% 0% United Kingdom Japan Netherlands Canada France Germany Switzerland Source: U.S. Department of Commerce September 13, 2015 43
Positive Development of FDI in Switzerland Cumulated investments 2005-2014 (in USD bn of total) 160,000 152,879 Relation U.S.A. - Switzerland US view 150,000 140,000 133,222 130,000 131,707 122,417 126,652 120,000 119,891 110,000 100,692 102,022 107,341 100,000 90,000 94,675 80,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: U.S. Department of Commerce September 13, 2015 44
U.S. Direct Investments abroad Book value 2014: USD 4,920 bn Japan, 2.2% Germany, 2.3% South America, 2.8% Switzerland, 3.1% Australia, 3.7% France, 1.6% Relation U.S.A. - Switzerland US view Ireland, 6.3% Others, 42.9% Canada, 7.8% United Kingdom, 11.9% Netherlands, 15.3% Source: U.S. Department of Commerce September 13, 2015 45
Agenda At a Glance Economy and Business Efficiency Relation U.S.A. Switzerland Quality of Live, Education, Infrastructure, Politics Swiss-American Chamber of Commerce Conclusions September 13, 2015 46
High Quality of Life Quality of Live, Education, Infrastructure, Politics International surrounding Well developed infrastructure Things work Personal safety Recreation Clean environment Well balanced working- and private-life September 13, 2015 47
Statements Quality of Live, Education, Infrastructure, Politics Zurich ranks 2 st, Geneva 8 rd and Berne 13 th as to quality of life among 420 cities Source: 2015 Quality of Living worldwide city rankings (Mercer Management Consulting) Switzerland ranks 1 st among the world's most competitive Economies Source: The Global Competitiveness Report 2014-2015 (World Economic Forum) September 13, 2015 48
Norway Switzerland Finland USA Denmark Germany Sweden UAE Netherlands Malaysia Ukraine United Ireland Hong Kong Canada Luxembourg Israel Australia Singapore Belgium Chile India Turkey Qatar Indonesia Thailand France Iceland Austria Argentina Average Czech Japan Brazil Jordan Latvia Peru Poland Greece Mexico Colombia Spain Kazakhstan Italy Philippines China Korea New Zealand Estonia Portugal Taiwan South Africa Slovenia Slovak Lithuania Russia Romania Croatia Venezuela Hungary Bulgaria High Attractiveness for Foreign High-Skilled People are attracted to country s business environment Foreign high-skilled people 9 Quality of Live, Education, Infrastructure, Politics 8 7 6 5 4 3 2 1 are not attracted to country s business environment 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 49
United States (1) China (2) Japan (3) Germany (4) United Kingdom (5) France (6) Brazil (7) Switzerland (20) Europe Union BRIC US Economy is the largest and it will stay there for some time GDP 2014 in % of world economy (est.) 25% 20% 22.3% 23.3% 22.5% 15% 13.3% 10% 5% 5.9% 4.9% 3.8% 3.6% 3.0% 0.9% 0% Source: CIA The World Factbook September 13, 2015 50
Qatar Luxembourg Norway Singapore Switzerland Hong Kong USA UAE Austria Australia Ireland Sweden Netherlands Denmark Germany Canada Belgium Iceland Taiwan Finland France Japan United Kingdom Italy New Zealand Spain Israel Korea Average Slovenia Czech Republic Slovak Republic Portugal Lithuania Greece Estonia Russia Poland Latvia Hungary Chile Croatia Turkey Romania Argentina Malaysia Mexico Bulgaria Kazakhstan Venezuela Brazil Peru South Africa Colombia Thailand China Mainland Ukraine Jordan Indonesia Philippines India Domestic Economy - Wealth GDP Per Capita Comparison 2013 in USD 100,000 Quality of Live, Education, Infrastructure, Politics 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 51
Brazil USA Japan China Italy France Spain United Kingdom Sweden Switzerland Germany Denmark Trade to GDP Ratio (OECD Member Countries) 60 Quality of Live, Education, Infrastructure, Politics 50 40 30 20 10 0 Calculation: (Export + Imports) / (2 x GDP), Year 2013 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 52
Switzerland Norway Israel Sweden United Kingdom USA Denmark Netherlands Austria Germany Belgium Australia Lithuania France Ireland Canada Hong Kong Czech Republic Japan Taiwan Italy Russia Argentina South Africa Scientific Infrastructure Nobel Prizes Accumulated nobel prizes since 1950 per 1 Mio. Inhabitants Quality of Live, Education, Infrastructure, Politics 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Note: Awarded in physics, chemistry, physiology or medicine and economics Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 53
Switzerland Sweden Denmark Norway Finland Japan Luxembourg USA Austria Australia Israel Germany Singapore Iceland Netherlands Korea Belgium France Canada Ireland United Kingdom Taiwan Slovenia Average New Zealand Italy Estonia Spain Czech Republic Portugal Venezuela Hong Kong UAE Hungary Russia Greece Slovak Republic Brazil Lithuania China Mainland Poland Malaysia Croatia Latvia Turkey Argentina South Africa Chile Bulgaria Jordan Mexico Romania Indonesia Ukraine Thailand Kazakhstan India Colombia Philippines Total Expenditure on R&D per capita Switzerland ranks first Quality of Live, Education, Infrastructure, Politics 2000 1800 1600 1400 1200 1000 800 600 400 200 0 Data: 2012 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 54
Switzerland Canada Finland Singapore Denmark Germany USA Ireland Israel Netherlands Belgium UAE Hong Kong Malaysia Austria Australia Iceland New Zealand Sweden Indonesia Norway United Qatar France Luxembourg Portugal Estonia Philippines Latvia Average Poland Taiwan Chile India Lithuania Russia Czech Jordan South Africa Italy Romania Japan Ukraine Hungary Kazakhstan Venezuela Spain Mexico Thailand Argentina Turkey Greece Colombia Korea Slovenia China Slovak Peru Brazil Croatia Bulgaria Top University Education meets the needs of a 9 competitive economy Quality of Live, Education, Infrastructure, Politics 8 7 6 5 4 3 2 1 does not meet the needs of a competitive economy 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 55
Switzerland USA Finland Singapore Israel Malaysia Germany Denmark Netherlands Sweden Canada United UAE Ireland Hong Kong Belgium Luxembourg Austria Iceland Indonesia Taiwan Norway Jordan Japan Australia Qatar New Zealand Kazakhstan Korea Average France Estonia South Africa Philippines Hungary Latvia Lithuania Thailand China Chile Colombia Spain Mexico Romania Italy Portugal Argentina Ukraine Turkey Russia India Peru Czech Brazil Poland Greece Slovenia Venezuela Slovak Croatia Bulgaria Switzerland's Knowledge Transfer Ranks 1 st highly developed between companies and universities 9 8 Quality of Live, Education, Infrastructure, Politics 7 6 5 4 3 2 1 lacking between companies and universities 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 56
Switzerland Finland Singapore Canada Ireland Germany Denmark Netherlands New Zealand Australia Malaysia Iceland UAE Belgium Norway Hong Kong France Qatar Austria Indonesia USA Luxembourg United Israel Taiwan Estonia Japan Poland Korea Sweden Philippines Average Portugal Jordan Czech India Kazakhstan Latvia Lithuania Spain Slovenia Italy Russia Hungary Romania Ukraine Turkey Greece China Thailand Colombia Chile Slovak Croatia Mexico Argentina Peru Venezuela Bulgaria Brazil South Africa Switzerland Provides a Exceptional Educational System does enhance long-term economic development 9 Quality of Live, Education, Infrastructure, Politics 8 7 6 5 4 3 2 1 does not enhance long-term economic development 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 57
Norway Switzerland Ireland Canada Denmark Germany Sweden Singapore Luxembourg Australia New Zealand UAE Austria USA Finland United Netherlands Qatar France Chile Japan China Spain Malaysia Slovak Poland Estonia Hong Kong Average Portugal Israel Philippines Latvia Mexico Brazil Kazakhstan Hungary Belgium Korea Taiwan Jordan Russia Lithuania Peru Czech Croatia India South Africa Iceland Indonesia Colombia Slovenia Turkey Greece Italy Argentina Romania Bulgaria Thailand Ukraine Venezuela Very Low Risk of Policital Instability Quality of Live, Education, Infrastructure, Politics low 10 9 8 7 6 5 4 3 2 1 high 0 Source: IMD World Competitiveness Yearbook 2014 September 13, 2015 58
Agenda At a Glance Economy and Business Efficiency Relation U.S.A. Switzerland Quality of Live, Education, Infrastructure, Politics Swiss-American Chamber of Commerce Conclusions September 13, 2015 59
A Short View on the Swiss-American Chamber Of Commerce Strong membership base - Swiss companies with large business interests in USA - U.S. companies based in Switzerland Very prominent Board of Directors giving Chamber necessary credibility Approx. 200 senior managers promoting the relevant topics in various boards and chapters Local presence in Zurich, Geneva, Lugano, New York, Boston, Atlanta, Raleigh, Miami, San Francisco and Los Angeles Key services: Information, Building of networking platforms, Lobbying Main topics: - Cross-border issues between Switzerland and the USA (trade and investments in both directors) - Issues of multinational companies (both Swiss and Foreign) doing business in Switzerland Swiss-Amercian Chamber of Commerce September 13, 2015 60
Members Benefits, Categories and Fees Category Large Company Membership CH company: more than 5,000 empl. worldwide US company: more than 500 empl. in CH Sustaining Membership Active Membership Individual Membership only as an employee of a Sustaining and Active Membership U.S.Resident - Membership only for US domiciled small firms with up to five employees or individual business persons - not available for the NY and LA Chapter - Representative of Corporate Membership - Individual (non-voting Membership) Yearbook Yearbook entry, additional possibility to make a presence in the yearbook Directories with verified contacts, description of business, split into U.S.-based and Swiss-based companies section and classified by business (NAICS) Articles on Swiss-U.S. Business relations Statistics, reports, indices September 13, 2015 61 1 4 1 2 1 - enews (approx. 5 times year) Latest news from the Chamber and its members Business news letter (approx. 5 times year) Latest business news and member news Business news in German Invitation to events (fax and e-mail) at reduced registration fee Reduced registration fee Briefings, Seminar, Workshops, CEO Luncheons Great possibilities to extend your network Possibility to bring guest along or to send a replacement person for same registration fee Information Translations of Swiss Laws into U.S. English Voting right at Annual General Meeting x Information services Questions about Swiss-American business relations to be sent to info@amcham.ch Annual calendar dues for CH companies Annual calendar dues for U.S. companies CHF USD 2,200.- n.a. 1,525.- 650.- 825.- 350.- - 1 220.- 95.- 1 - n.a. 200.-
Yearbook 2015/16 Swiss-Amercian Chamber of Commerce Directories with verified contacts, description of business, split into U.S.- based and Swiss-based companies section and classification of business (NAICS). Articles on Swiss-U.S. Business relations Statistics, reports, indices Possibility to make a presence Members get a free copy September 13, 2015 62
Agenda At a Glance Economy and Business Efficiency Relation U.S.A. Switzerland Quality of Live, Education, Infrastructure, Politics Swiss-American Chamber of Commerce Conclusions September 13, 2015 63
Conclusions Conclusion Switzerland offers one of the highest living standards in the world offers easy access to the major European cities is one of the most important and centrally located finance centres has attractive corporate and individual tax conditions has a flexible, highly educated, multi-lingual and highly productive pool of employees so tell us now: would you expect anything more? September 13, 2015 64