SWISS BUSINESS HUB USA

SWISS BUSINESS HUB USA

SBH / S-GE SWISS BUSINESS HUB USA

Global Network

TEAM USA Fabian Stiefvater Head of SBH USA CG NYC Damian Felchlin TC Invest / Export CG Los Angeles /SF New York, NY San Francisco, CA Caroline Blaser Deputy Director TC Invest / Export CG NYC Los Angeles, CA Christoph Besmer TC Invest / Export CG Los Angeles /SF Kimberly Shulman TC Export CG Atlanta Houston, TX Scot Orgish TC Export Houston Atlanta, GA Daniel Bangser TC Invest CG NYC Frédérique Zehnder Project Manager CG NYC Alaska Hawaii

WHAT DO WE DO? Export Promotion Support Swiss and Lichtenstein SMEs with the development of business opportunities in 21 countries worldwide. Investment Promotion Provide information about the strengths and the framework conditions of the Swiss business location towards potential investors.

EXPORT FIGURES AND MARKET POTENTIAL Swiss Exports to the U.S. Exports 2016 Swiss Imports from the U.S. Imports The USA remain the 2nd most important commercial partner (behind Germany). CHF 36.4B (12.2% of total exports) The USA is also the 2nd import source for Switzerland. Bilateral current account surplus amounts to a total of CHF 12.8B. CHF 23.6B (8.9% of total imports) Swiss Exports Sectors Chemical and pharmaceutical Precision instruments, watches and jewellery 2016 (% share) 45.0% 17.7% Trend Forecast 2017 Precious metals and stones 11.9% Machinery and electronics industry 9.5% [<+5%] [+2%,+5%] [-2%,+2%] [-2%,-5%] [<-5%]

QUICK FACTS ABOUT SWISS FDI IN THE U.S. 1. Switzerland s cumulative direct investment in the U.S. amounts to $258 billion. 2. Swiss affiliates directly support nearly half a million jobs. 3. The highest number of people who work for Swiss affiliates are in California, Texas, New York and New Jersey. 4. Swiss affiliates pay the highest average salary among affiliates from the seven largest investing countries in the U.S., $103,200 per year. 5. Swiss affiliates outspend all other countries in R&D ($10.1 billion). 6. Swiss affiliates rank fifth in manufacturing employment among the largest investing countries in the U.S.

EXPORT PROMOTION Priority industry sectors Events Trend and opportunities ICT special emphasis on Fintech ICT SME delegation (hard/software for the financial service sector (East or West Coast). Swiss Fintech sector is highly innovative and continuously growing (driven by Finance-2.0 initiative and presence of first European FinTech fund Next Generation Finance Invest ). Medtech Food MD&M West 2017 and Advamed 2017 Food Challenge Fancy Food Show 2017 The Medtech industry faces many challenges (e.g. declining demand for medical equipment, price pressure due to healthcare reform, costeffectiveness, raising bar for medical innovation, increasing regulatory requirments, significant financial impact of medical device excise tax) which provide opportunities to advice Swiss SMEs in overcoming and addressing these challenges on a mandate basis. Increasing health awareness throughout the U.S. provide opportunities for Swiss SMEs to enter the market.

OPPORTUNITIES ENTERING U.S. MARKET STRENGTHS Highly specialized skills in specific areas make it easy to sell the USP Highly skilled workforce (dual education / leading universities) Positive reputation / Swissness OPPORTUNITIES USA are Switzerland s 2 nd trade partner 2 nd destination for Swiss exports (CHF 36.4B/12.2% in 2016) 2 nd source of imports (CHF 23.6B/ 8.9% in 2016)

DIFFICULTIES ENTERING US MARKET WEAKNESSES Cultural differences Swiss companies lack of financial and human resources Certain contracts only open to U.S cies (e.g. Patriot Act, Buy American Rules) Swiss companies are risk-averse THREATS U.S. regulations and governmental system High Swiss production cost and strong Swiss Franc Potential Border Adjustment Tax (BAT)? TTIP on the table again?

INEQUALITIES Area Median Household Income (in USD) in 2015 San Francisco County 90,527 Santa Clara County (SV) 102,191 California 64,483 United States 55,775 Mississippi 40,630 Source: US Census Bureau

APPROPRIATE MARKET MODELS Normally the company is set up as subsidiary, not as branch office Continuing collaboration with service providers for tax- and legal questions Sales Agent usually works exclusively for the company and has to be independent from a legal point of view Partnership-agreements (including an exit-scenario) 4 Incorporation Market development and customer service is executed by the countractually-bound on-site partner Brand and registration stay with company Market performance completely recorded in Switzerland 1 2 Export Mode 3 Distributor Independent Sales Agent

INVEST PROMOTION 13 Swiss Business Hub USA - 29.06.2017 SWITZERLAND GLOBAL ENTERPRISE

EVENTS - Bringing together Swiss and U.S. companies along with multipliers - Media exposure Switzerland Tell Awards at

SUCCESS STORY - EXPORT - «High tech meets heavy metal» - Fact Finding Mission for company in automotive sector - Setting up: - Site visits and company meetings - Roundtable discussions - Organizational logistics

SUCCESS STORY - EXPORT

SUCCESS STORY - EXPORT - IT Startup based in Küsnacht (ZH) - «AI that connects human expertise» - Support for market entry: - Investor search - Conclusion of customer contracts - Branch office opening

SERVICE INVESTOR SEARCH

CONNECT WITH US! Damian Felchlin Consulate General of Switzerland Pier 17, Suite 600 San Francisco, CA 94111 +1 917 289 9967 damian.felchlin@eda.admin.ch Lionel Müller Consulate General of Switzerland 633 3rd Avenue New York, NY 10017 +1 415 788 2272 lionel-philippe.mueller@eda.admin.ch www.s-ge.com/ Swiss Business Hub USA @SBH_USA