Portrait of the German chemical and pharmaceutical industry

Portrait of the German chemical industry

German chemical industry indicatorsoverview

* estimation, **plan

  1995 2000 2005 2012 2013 2014 2015

Sales (in billion Euro) 112,3 135,0 152,8 186,8 190,6 190,8 188,7

Production (change y/y in %)* 2,1 2,4 4,7 -2,2 2,2 0,6 0,8

Employment (in 1000) 536 470 441 434 438,0 444,8 446,3

Exports (in billion Euro) 51,8 76,6 104,8 162,1 163,6 169,0 178,5

Imports (in billion Euro) 32,3 52,7 73,4 111,4 110,2 115,4 123,0

Fixed asset investments (in billion Euro) 5,8 6,8 5,4 6,3 6,9 7,1 7,1

FDI (stocks in billion Euro) 29,5 46,0 41,0 41,2 44,6 50,2 -

R&D expenditure (in billion Euro) 5,3 7,1 7,9 9,7 10,0 10,1 10,5

sources: Statistisches Bundesamt, VCI; *seasonal and working-day adjusted

Chemical industry is knowledge based and capital-intensive

Economic key measures Share of chemical industry in the manufacturing sector, 2015

source: VCI

Sales Employees Gross saleriesand wages

Fixed assetinvestments

(2013)

R&Dexpenditures

Energyconsumption

(2013)

Exports Imports

10.6

7.49.1

12.8

15.7

21.1

14.9

13.0

average, calculated based on sales

Basic chemicals: at the beginning of the value chain

Further processing industries

Manufacturing of consumer

and investment goods

Basic chemicals

Innovation

The chemical industry manufactures a wide range of products

Production structure of the German chemical/pharmaceutical industryProduction value in percent, 2015

sources: Destatis, VCI

Inorganic basic chemicals9%

Petrochemicals 17%

Polymers20%

Fine & Specialty products

26%

Phamaceuticals21%

Detergents and personal care products

8%

proproduction value: 142,1 bn. euro

More than 90 percent of chemical companies employ less than 500 persons

Size structure of the German chemical/pharmaceutical industry Share of enterprises in percent, 2014

source: Destatis, VCI

10 - 49 staff1017

48.9%

50 - 499 staff921

44.3%

> 500 staff141

6.8%

SME total: ca. 93%

companies total: 2.079

About 93 percent of chemical companies employ less than 500 persons

Size structure of the German chemical/pharmaceutical industryShare of enterprises in percent, 2014

source: Destatis, VCI

number of companies staff sales

48.9

5.2 3.1

44.3

31.925.7

6.8

62.8

71.2

10 - 49 staff 50 - 499 staff > 500 staff

8

The TOP 20 2015

source: Die Welt, 2014-06-06

The Top 20 Companies (2015)

  Company Sales (Mio. Euro) EmployeesBeschäftigte

1 BASF SE 70.449 112.4352 Bayer AG 46.324 116.8003 Fresenius SE & Co. KGaA 27.626 222.3054 Henkel AG & Co. KGaA 18.089 49.4505 Linde AG 17.944 65.0506 Boehringer Ingelheim 14.798 47.5017 Evonik Industries AG 13.507 33.2598 Merck KGaA 12.845 49.6139 Covestro AG 12.082 15.800

10 Lanxess AG 7.902 16.20011 Beiersdorf AG 6.686 17.65912 B. Braun Melsungen AG 6.129 55.71913 Wacker Chemie AG 5.296 16.97214 K+S AG 4.176 14.38315 Symrise AG 2.602 8.30116 Stada Arzneimittel AG 2.115 10.44117 Fuchs Petrolub SE 2.079 4.36818 Altana AG 2.059 6.09619 Westfalen AG 1.700 1.67020 SGL Carbon SE 1.323 5.658

Chemistry is one of Germany‘s key industries

Share in sales of the manufacturing sector, 2015

Production growth of the Top 5, 2005 – 2015 p.a.

(average growth rates, in %)

source: Destatis, VCI

22.8%

13.2%

10.6%9.4%

9.3%

34.6%

Vehicleconstruction

Mechanical engineering

Chemical industry

Food Electrical engineering

OthersFood

Chemical industry

Mechanical engineering

Vehicle construction

Electrical engineering

0.4

1.0

1.7

2.1

2.6

total manu-facturing: 2,0%

Chemistry is one of Germany‘s key industries

Share in sales of the manufacturing sector2015

source: Destatis, VCI

Vehicleconstruction

22.8%

Mechanical engineering

13.2%

Chemical industry10.6%Food

9.4%

Electrical engineering

9.3%

Others34.6%

Germany still ranking fourth worldwide

Top 10: chemical producersChemical sales, in bn Euro, 2015

source: Chemdata International ,VCI

China United States

Germany Japan South Ko-rea

France India Switzer-land

Italy Taiwan

1,766

772

198 186129 117 111 83 81 75

Sales world total:4,710 billion euro

12

Germany is the biggest chemical producer in Europe

Chemical sales in the EU 28Share in sales in percent, 2015

source: Chemdata International, VCI

Germany25%

France15%

Italy10%

United Kingdom8%

Ireland8%

Spain7%

Netherlands6%

Belgium7%

others14%

787 Billion Euro

High growth rates in Asia

Top 10: production growth chemical/pharmaceutical industry average annual growth rates 2010-2015

source: Chemdata international, Feri, VCI

Chi

na

Indi

a

Fran

ce

Sou

th K

orea

Taiw

an

Ger

man

y

Italy

Japa

n

Uni

ted

Sta

tes

Sw

itzer

land

12.0

3.42.6 2.4

1.40.7

0.1

-0.6 -0.7

-1.9

World: 3,3

Germany: No.2 of chemical exports

TOP 10: Chemical exportsIn bn Euro, 2015

source: Chemdata International ,VCI

USA Germany China Belgium Nether-lands

Switzer-land

France United Kingdom

Ireland South Ko-rea

172.4 169.4

113.9106.0

81.6 77.5 75.267.4 63.5

56.8

Europe is the most important region for the German chemical industry

German chemical exports by regionsin percent, 2015

source: Destatis, VCI

EU 2856.9%

other Europ. Countries10.4%

NAFTA12.8%

Latin America3.0%

Asia14.4%

Africa1.8%

Oceania0.8%

Germany is benefiting from higher growth rates outside of the EU

Growth rates of German chemical exports by regionsAnnual average growth rates 2010-2015 in percent

source: Destatis, VCI

EU 15 EU 12 NAFTA Asia

2.2

6.3

13.8

6.1

World 4,6 %

Capital spending abroad is overtaking capital spending in Germany

Capital spending of the German chemical industryIn Germany and abroad, in mn Euro

source: Destatis, VCI

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

capital spending in Germany

capital spending abroad

Shifts in foreign investment

Foreign investments of the German chemical/pharmaceutical industryin percent,

source: Deutsche Bundesbank, VCI

32.8

31.1

6.3

29.8

20.6

44.4

6.1

28.9 Europe (w/o Germany)

NAFTA

Latin America

Asia, others

internal: 2010

external: 2015

Industry invests in innovation

R&D expenditure of the German chemical and pharmaceutical industryin billion Euro

source: Stifterverband, VCI * planned

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015*

0

2,000

4,000

6,000

8,000

10,000

12,000

7,1

9,0

10,5

R&D pharmaceutical industry

R&D chemical industry

Germany ist the forth biggest innovation location worldwide

20source: OECD, Eurostat, Chemdata International * internal R&D expenditure

TOP 10 and the EU: R&D expenditure of the chemical/pharmaceutical industry, share of the countries in expenditure of the world*, 2015

USA EU 28 China Japan Germany United Kingdom

Switzer-land

France South Korea

Korea, Republic

Denmark

43.7%

21.5%

12.8%10.8%

5.9%4.5% 3.9% 3.6%

2.0% 1.7% 1.1%

World:134.9 Billion Euro