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ANNUAL REPORT

obal nd Gl a l r e Switz se (S-GE) pri ame Enter new n ’s c e is Os

20 13


Contents

ANNUAL REPORT 2013 Foreword from Federal Councillor Johann N. Schneider-Ammann

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Interview with President Ruth Metzler-Arnold and CEO Daniel Küng

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Export, Import, Invest

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Export Infographic

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Success story

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Import Infographic

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Success story

     18

Invest Infographic

    20

Success story

   22

Network Infographic

    24

Success story

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Foreword Federal Councillor Johann N. Schneider-Ammann

As a first-class business and research hub, Switzerland strives to stay one step ahead of the competition. Our innovative and competitive companies, excellent universities, highly skilled personnel and outstanding infrastructure provide a strong foundation, while I do everything in my power to consolidate and strengthen the necessary framework. Our aim is to maintain and develop Switzerland as an attractive industrial location for the needs of today and tomorrow. I have every interest in sustaining value creation in this country, and I vigorously defend an open and flexible labor market based on social partnership. By keeping all these trumps in our hand we give ourselves the best possible chance of protecting jobs and ensuring a bright future for everyone in Switzerland. Switzerland Global Enterprise (S-GE) plays a key part in meeting this challenge. Through its location promotion activities abroad, S-GE makes a vital contribution to raising Switzerland’s profile as a business location. At home, it works with the cantons to help attract first-class investments with high value-added potential. Ultimately, the aim is to make Switzerland the location of choice for all who want to be among the best when it comes to innovation and competitiveness. Access to foreign markets is a vital factor in strengthening the competitiveness of Swiss companies operating internationally and thereby protect­ ing jobs in Switzerland. Free trade agreements are decisive in facilitating market access. I am proud that we were able to extend the network significantly last year by signing an agreement with China. Political negotiations were the key to opening an important door wider. Companies now have the chance to take advantage of easier market access. Here, too, S-GE is a vital partner. I am very happy that the organization is on hand to support export-oriented companies with expert advice and help them resolve issues with a quick, uncomplicated and efficient approach, and to provide them with the international contacts they need. For S-GE to be able to gear its services to its clients’ requirements, it has to have a local presence in the principal target markets. It is therefore welcome news that in the last two years the network of Swiss Business Hubs has grown to 21, with the addition of two new locations: Mexico and Turkey. A particular concern of mine, as Minister for Economic Affairs, Education and Research, is that the various organizations working abroad on behalf of Switzerland as a business and research hub continue to pull together and network with each other. If S-GE, Swissnex and other important partners such as the chambers of commerce join forces, we will be even better placed to build bridges between business, innovation, technology and research. And to position Switzerland abroad as an economically successful and innovative country. FEDERAL COUNCILLOR JOHANN N. SCHNEIDER-AMMANN Head of the Federal Department of Economic Affairs, Education and Research (EAER)

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“ENTERPRENEURIAL FREEDOM IS CRUCIAL TO OUR SMEs” Interview with Supervisory Board President Ruth Metzler-Arnold and CEO Daniel Küng

Ms Metzler, small and medium-sized enterprises are the backbone of the Swiss economy. What is your assessment of the general conditions for SMEs in Switzerland? I think the operating conditions for SMEs in the Swiss domestic market are very good. Like the major corporations, they benefit from the diverse advantages that Switzerland has to offer as a business location. That is why it is so important, particularly for SMEs, to defend entrepreneurial freedom. In most cases, they are committed to Switzerland as a location and cannot simply move abroad. Do you see threats to entrepreneurial freedom? Our country needs to be wary of ill-considered actions that would send out the wrong signals and put at risk Switzerland’s affluence, outstanding economic operating conditions, political stability and legal safeguards, not to mention its advantages as an international business location, built up over decades. I have in mind a whole raft of initiatives that highlight genuine issues we face. The question we always have to ask ourselves

is this: Could the solution to one problem create a new, more serious one that would really damage the country’s economy and society as a whole? Is Switzerland still attractive as a business location for foreign companies? Switzerland is still very attractive as a base for foreign companies who are expanding internationally. But for some time now, it has taken more than our low level of taxation to persuade companies to relocate. A number of other factors are equally important today: political and economic stability, the country’s central position in Europe, the excellent infrastructure, the innovative environment, the fund of know-how and the great quality of life, to name but a few. However, we do have indications that the number of foreign firms moving to Switzerland is declining, and it is not beyond question that businesspeople abroad are sensing a degree of uncertainty regarding the legal framework.


Which framework conditions are still essential to the success of the Swiss economy? It needs more than just a continuation of liberal economic policies to maintain an optimal operating environment. Switzerland’s international network as part of an integrated growth policy is another factor, and the Swiss Business Hubs run by Switzerland Global Enterprise (S-GE) are part of that network. What is the role of the Swiss Business Hubs? The Swiss government has entrusted us with a mandate for export, import and location promotion. We promote Switzerland as a business location abroad. We provide services to exportoriented companies from Switzerland and Liechtenstein. And we also support SMEs from selected partner countries as part of the work of economic development cooperation. We help them gear up for the export business and open up new markets in the EU and Switzerland. We also provide importers in Switzerland and Europe with contacts to reliable suppliers from these partner countries. To fulfill these missions, we rely on our unique worldwide network of 19 Swiss Business Hubs. S-GE acts on behalf of the Swiss government. What does that mean for you? It is clear to us that this official status is bound up with a great responsibility, a responsibility we are intent on fulfilling. One way we do that is through a daily concern to ensure close cooperation between the politicians and the business community. We need a close knowledge of both sides to link the two successfully. This is also something business representatives – the entrepreneurs – need to do. In their own interest! RUTH METZLER-ARNOLD, President of the Supervisory Board of S-GE

Mr Küng, a year ago Osec renamed itself Switzerland Global Enterprise. What were the reasons for changing the name? We wanted the new name to give people in Switzerland and abroad an idea of what we do. “Switzerland” stands for the home country that we represent, one that enjoys great respect around the world. The name of Switzerland is in itself a seal of quality, which underpins our work promoting internationalization. “Global” stands for the international field of activity that we engage in to fulfill our mandates from the Swiss federal government of export, import and location promotion, at home and abroad. It also stands for the challenges of internationalization, within our mandate to strengthen the worldwide position of Swiss companies and Switzerland itself as a business center. “Enterprise” stands for entrepreneurship: for our customers, Swiss companies expanding abroad, and foreign companies that want to invest in Switzerland or target the Swiss market as importers. What challenges did the introduction of the new brand face you with? The name change did not occur in isolation but was the final stage of a refocusing process: the implementation in our external communication, as it were. During the process, we had to pinpoint our strengths, sharpen their focus and embed them in the culture. Although this is a lengthy and complex process, in the end a company gains enormously from focusing on a small number of corporate values.

The new name came with a promise to your clients that you would become a center of excellence for internationalization. Have you kept your promise? That is a never-ending task, one we tackle over again every year and are always trying to optimize. We support more than 6000 exporting companies a year with information, advice and contacts in more than 70 countries worldwide. In import promotion, the number of contacts and queries from importers in Switzerland and the EU rose by 42% to 8213 last year. And in the area of location promotion, over 374 potential projects were referred to the cantons, about 100 more than the previous year. I know of no other institution in Switzerland with a comparable record of commitment to the internationalization of Swiss businesses. Our clients and members appreciate that. Our membership has continued to climb, from 2012 at the end of 2012, to 2157 last year, in other words we gained 135 new members. Looking ahead, where do you see the greatest market poten­ tial for Swiss companies? Despite all the prophecies of doom, Europe remains our biggest market. Of course, with a few exceptions such as Poland, Turkey and Russia, the biggest growth markets are elsewhere. There is little economic growth in Europe, so export opportunities will be created through new developments – for example, changes in environmental legislation. Working through our nine Swiss Business Hubs in Europe, we aim to identify and document these and similar opportunities, and make them accessible to our clients. Asia remains the most important growth region for Swiss companies. There are good openings and business opportunities, even for SMEs, in the Southeast Asian markets (ASEAN), while China is increasingly becoming a reference market for medium-sized companies. The South American market is also on a strong upward curve. You have analyzed the benefits of free trade agreements. Do Swiss businesses really benefit from them? Absolutely! First, free trade agreements are important because they open doors to markets that would otherwise remain closed, or at least very difficult to open, especially as the WTO negotiations on multilateral agreements are advancing at a snail’s pace, if at all. And they offer genuine competitive advantages, for example the imminent free trade agreement between Switzerland and China. Swiss businesses should make the most of this lead on the EU! Second, free trade agreements are also important because they enable companies to save a lot of money. This applies not only to exporters, but also to the import trade. The free trade agreement between Switzerland and the EU is a good example: Swiss businesses save more than one billion Swiss francs every year because of it. We will be looking into other such agreements this year to show companies where there is further potential for savings. DANIEL KÜNG, CEO Switzerland Global Enterprise

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EXPORT, IMPORT, INVEST Switzerland Global Enterprise (S-GE) works all over the world to support Swiss entrepreneurs and promote Switzerland as a business location. As a center of excellence for internationalization our role is to foster exports, imports and investments, and to help clients develop new potential for their businesses. S-GE is a strong and trusted partner for its clients, the cantons and the Swiss govern­ ment, with a global network of experienced advisers and experts.

EXPORT PROMOTION Switzerland Global Enterprise (S‑GE) is an expert in internationalization with a remit from the State Secretariat for Economic Affairs SECO to help Swiss companies, especially SMEs, identify and develop new business potential on a worldwide basis. It does so by providing regular information about relevant trends in global markets, as well as professional advice and support in finding contacts and partners, and identifying new business opportunities.

IMPORT PROMOTION S-GE works on behalf of the State Secretariat for Economic Affairs SECO to support SMEs from selected partner countries, facilitating market access and opening up new business opportunities in Switzerland and the European Union. In this way, S-GE helps to strengthen the competitiveness of the companies concerned as well as trade relations between Switzerland, the EU and the partner countries. Importers in Switzerland and Europe benefit from contacts with reliable suppliers in the partner countries.

INVESTMENT PROMOTION As part of its remit from the State Secretariat for Economic Affairs SECO and the cantons, S-GE provides potential foreign investors with information about the particular strengths and operating conditions of Switzerland as a business location. Its services for foreign companies include assessing the potential of their projects before they are presented to the cantons. S-GE assists the cantons with the relocation of foreign companies, providing market and trend analyses and coordinating the activities of all the bodies involved in the promotion of Switzerland as a business location. Information about the performance of S‑GE in the 2013 business year and the annual financial statement is presented in the 2013 financial report, which can be downloaded from www.s-ge.com/annualreport. As in previous years, 2013 saw Swiss SMEs focusing more and more on international markets and turning to S-GE for expert, impartial and professional advice on issues relating to internationalization. One sign of this was the marked increase in personal consultations in Switzerland, rising from 2431 in 2012 to 2680 last year. Particularly appreciated were the one-day country seminars, which are attended by an adviser from S-GE and a representative of the Swiss Business Hubs, the organization’s official branch offices, who take part in the discussions. These seminars for SMEs, which are free of charge, take place throughout the year and cover 30 countries. They are attended by some 1200 companies every year. S-GE conducted over 700 consulting projects in total. SMEs also turned to S-GE for advice before they had made a firm decision about export destinations – a trend that S-GE addresses through its “Find your markets” service, which leads companies to the right target market in a systematic process using proven methods.


Export

COUNTRY AND SECTOR EVENTS, ENTREPRENEUR VISITS, JOINT EVENTS WITH PARTNERS In addition to the Forum for Swiss Foreign Trade and Investment, which attracts more than 660 participants, and two well-attended forums in the focus sectors of food and ICT, S-GE organized numerous events on specific countries and issues: for instance, the ASEAN Forum, the Africa Day, and the Nordic Event. In the reporting year, around 60 events were held in Switzerland, with 20 new studies and market reports being presented. The offering was rounded off by entrepreneur visits to Germany for the CeBit trade fair (ICT), France (construction), Nigeria (“doing business”), and Saudi Arabia and Kuwait (cleantech). S-GE also organized events in various parts of Switzerland. Basel and Yverdon hosted the ASEAN Forum; a forum on the subject of free trade agreements was held in St Gallen and Lausanne; the Hong Kong Forum took place in Geneva; and the Food Forum in Fribourg. The local chambers of commerce helped organize the application process for the respective events. In 2013, S-GE put on 15 information events with cantonal chambers of commerce in the German- and French-speaking regions and in Ticino. These so-called “export dialogues” attracted more than 600 participants. The chambers of commerce acted as hosts; S-GE was responsible for the program and speakers. During 2013, S-GE continued to work with industry associations and other partners to stage joint events with the Institute for Young Entrepreneurs (IFJ), ICTswitzerland / ated-ICT Ticino, Netcomm Suisse, Alpict, Swissrail and the Swiss Textile Federation.

AT HOME: A STRONG REGIONAL PRESENCE In French-speaking Switzerland, S-GE held 36 one-day country seminars and 34 meetings and training events with partners. Under the auspices of the Enterprise Europe Network (EEN), which is mandated by the European Commission to further the interests of SMEs across Europe, S-GE organized 20 consulting sessions and two trade fair visits. The S-GE office in Lausanne has been responsible for EEN activities throughout Switzerland since 2013. At the same time, it was named the official partner for the business promotion delegations of various cantons: Geneva (delegation visits to Qatar and China, Jura (delegation visit to South Korea) and Vaud (delegation visit to Singapore and Malaysia). S-GE launched a new corporate event “Rendez-vous du commerce international”, in partnership with Credit Suisse, IMD and SERV, aimed at enhancing its stature as an authority on questions of internationalization in French-speaking Switzerland. In the Italian-speaking region of Switzerland, 19 one-day country seminars were held as well as joint events with partners. These revealed evidence of renewed interest in Europe, and above all Russia. A pleasing development is the closer cooperation with the Ticino Chamber of Commerce and Industry, as well as other local partners (for example in the ICT sector). Activities on the theme of free trade agreements were also stepped up in Ticino. For instance, a business lunch on free trade agreements with China aroused keen interest, attracting over 50 participants.

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ABROAD: GLOBALLY NETWORKED S-GE’s international network consists of 19 Swiss Business Hubs, 18 of which are placed at the disposal of S-GE by the Federal Department for Foreign Affairs (FDFA) in Switzerland’s most important export markets. The SBH in Austria is domiciled with the Chamber of Commerce of Switzerland, Austria and Liechtenstein. The opening of an office in Istanbul, Turkey, was a further step in the provision of direct local support to Swiss businesses expanding in emerging and other key markets. During 2013, S-GE worked with more than 25 bilateral chambers of foreign trade, from which it commissioned support services and assignments worth around CHF 500,000. These chambers, in turn, lend support through their strong local networks and market know-how.

EXPORTHELP SERVICES The ExportHelp team is the first port of call in Zurich, Lausanne and Lugano for answers to questions on topics such as customs duties, origin and provenance, free trade agreements and value-added tax. During 2013, it consolidated its position as a center of excellence for internationalization, answering around 1400 initial queries, more than ever before. The range of information available on the subject of free trade agreements was increased to meet growing demand: fact sheets, studies and usage analyses, along with events on FTAs and the Trade4Free tool (see also “Digital”). ExportHelp received double the number of queries for information on this topic.

TRADE FAIRS

Photo SWISS Pavilion at the 2013 Hannover Messe

Every year, S-GE’s trade fair team organizes and realizes joint platforms for Swiss participants with SWISS Pavilions at venues across the world. In 2013, S-GE organized 19 SWISS Pavilions involving a total of 249 exhibitors (2012: 237), plus two Mini SWISS Pavilions in China (Chinaplas and Sial China). Since the latter attracted twice as many exhibitors as planned, the presence at Chinaplas in 2014 has been upgraded to a regular SWISS Pavilion. A clear trend has emerged in the trade show sector over the last few years. Businesses are taking a reduced number of major stands at flagship fairs, favoring smaller, more flexible appearances in selected target markets. S-GE has responded to this trend by staging Mini Swiss Pavilions at venues outside Europe. These enable SMEs to take their first steps into new markets in a cost-effective, uncomplicated way, without prolonged preparations. Around 8000 professional contacts were recorded at SWISS Pavilions in the reporting year. Client satisfaction was over 90%. Particularly highly rated were: appearing under the “Switzerland” brand (86%), ready-to-use stands (88%), and on-site support (99%). S-GE also helped coordinate the organizers of the SWISS Pavilions and served as a general touch-point for queries about the trade fair.

MEMBERS S-GE had 2157 members on its books on 31 December 2013, reflecting growth of 7%. Members Get-Together, a series of exclusive events for members, continued to establish itself in the reporting year. An average of 35 participants attended eight meetings on various export-related topics.

COOPERATION WITH ASSOCIATIONS AND PARTNERS S-GE also has associations representing Switzerland’s major exporting industries among its members. It works closely with them, offering clients an ideal blend of internationalization and industry know-how. During 2013, S-GE was actively supported by its Premium Partner Credit Suisse, Strategic Partners DHL, SAP and XL Group as well as other partners. These service providers, with their international orientation, complement S-GE’s know-how and offer Swiss SMEs added value in their efforts to internationalize their own businesses.


DIGITAL In 2013, S-GE introduced several online tools designed to support Swiss SMEs in their export projects. Trade4Free (www.s-ge.com/trade4free) provides support with the practical application of free trade agreements. Warmup2Export (www.s-ge.com/warmup2export) helps companies assess how fit they are for the export business. Market Navigator (www. s-ge.com/marketnavigator) has indicators that help users identify a short list of export markets to target. And Export Map (www.s-ge.com/map) is a virtual world map that provides an overview of relevant export issues, information and contacts from the worldwide network of S-GE.

ACADEMY In the reporting year, the Academy continued to establish itself as the global center of excellence for training in export and investment promo­ tion. Some 250 participants attended training seminars over a total of 40 days. For the first time, a special seminar was organized for the bilateral Latin American Chamber of Commerce in Switzerland with the aim of further strengthening the professional footing of their cooperation. In 2013, the international trainee program for master’s graduates was started up successfully in collaboration with the Federal Department for Foreign Affairs (FDFA). S-GE also maintains active contacts with universities and technical colleges. An Academic Membership category was launched in the reporting year as a focus for diverse previous activities in the area of internationalization. Under the scheme, selected universities and technical colleges can become members of S-GE to advance their joint activities.

EXPERT DIRECTORY The Expert Directory (previously called “Pool of Experts”) is the online register of internationalization and export specialists from more than 40 countries. The directory lists 209 internationalization experts. Through it, companies can find local experts in the fields of strategy, marketing, sales, law, logistics and human resources – quickly, easily and at no charge. The quality seal “Certified Experts” facilitates selection.

EXPORT PLATFORMS S-GE set up four export platforms in 2010 – Cleantech Switzerland, Medtech Switzerland, ingenious switzerland and Swiss Health – as part of a federal stimulus package. These help Swiss SMEs from the respective sectors open up export markets and provide targeted support for expansion abroad.

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Import

MAKING APPROACHES In the reporting year, Import Promotion continued to consolidate its three approaches: SIPPO Pavilion (SP), Country Pavilion (CP) and Systemic Market Development (SMD). In contrast to the work it does with individual businesses using the SP approach, Import Promotion deploys the CP and SMD approaches in working with Business Service Organizations (BSOs). It succeeded in establishing a common platform with over 30 BSOs in 15 partner countries. In all three approaches, SMEs from partner countries are integrated into the global value chain with the aim of exporting to Switzerland and Europe. Import Promotion operates in ten different sectors. In 2013, it concluded the first three-year SMD projects, which involved Import Promotion making a selective know-how transfer in the areas of production, product design, marketing and export to BSOs in Bosnia and Herzegovina, knowledge that was passed on by their local experts through training sessions for SMEs. Within three years, the companies supported through the BSOs increased sales by a quarter.

INCREASING EXPORT SALES, CREATING JOBS, ARRANGING CONTACTS Thanks to the work done using the SP, CP and SMD approaches, SMEs were able to increase their export sales to the partner countries in Europe by more than CHF 48 million. Export-oriented SMEs created over 2598 new workplaces in partner countries. In the reporting year as a whole, more than 8213 contacts were arranged between exporters in the partner countries and importers in Switzerland and Europe.

SUCCESSFUL BUYER MISSIONS In the reporting year, Import Promotion hosted four buyer missions in Indonesia (natural ingredients and seaweed), Peru (fruit and vegetables) and South Africa (industrial subcontracting). The 32 participating companies from Switzerland and Europe visited 50 selected potential suppliers. The buyer missions, which involved individually tailored visits to companies and trade fairs, met with lively interest among importers from Switzerland and Europe.


Invest

MARKETING SWITZERLAND AS A BUSINESS LOCATION ABROAD Since 2013, as part of the drive to market Switzerland effectively as a busi-ness location, the core messages of “Innovation and Technology”, “Security and Trust” and “Environment and Life” have featured in online and print communications aimed at specific target groups worldwide. ­Potential investors in the world’s ten biggest economies receive informa­ tion in eight languages about the country’s advantages. During the year, S-GE also published 182 articles on Switzerland as a business hub in foreign media.

REFERRAL OF POTENTIAL INVESTORS In 2013, S-GE organized 91 events with potential investors for the cantonal and regional economic development agencies. Working with the Investment Officers of the Swiss Business Hubs in its target markets, S-GE produces analyses, provides potential decision-makers considering investments in Switzerland with information and takes care of investors in the initial phase of their project. Last year these contacts led to 374 potential corporate relocations being referred to cantonal and regional business development agencies.

GLOBAL COORDINATION OF SWISS INVESTMENT PROMOTION To ensure consistency in the marketing of Switzerland as a business location abroad, S-GE coordinates the activities of stakeholders. In 2013, S-GE once again organized the annual Investment Summit networking platform, as well as several training events with marketing and communication themes and two advanced training seminars (Investment Academy). It also laid the groundwork for collaboration with Swiss Presence (major events) and Swiss Circle (real estate).

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EXPORT PROMOTION

712

Information, advice, networking

consulting projects

Consulting, contact referrals and new business opportunities for exportoriented SMEs from Switzerland and Liechtenstein OFFICIAL PROGRAM

71 countries involved

36 one-day seminars on selected countries in French-speaking Switzerland

19

15 export consultations

one-day seminars on selected countries in Italian-speaking Switzerland

600 participants

2

focus sectors: food, ICT

Swiss Foreign Trade Forum 660 participants

90% customer satisfaction with trade fairs

Events 60 events 20 studies presented

MIS FACT FINDING Trade fairs 19 SWISS Pavilions 2 mini SWISS Pavilions 249 exhibitors

ANY

GERM

SIONS

SAU ARABD IA

KUWAIT

NIGERIA

FRAN

CE


5694

companies supported

2680

c sa ust tis om f e co wit actio r ns h n ult ing

87

%

consulting sessions in Switzerland

2157 members attractive pricing exclusive services

385,00 digital

0

visits

DI A

ExportHelp 1470 queries answered by ExportHelp

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GLOBAL DATA PROTECTION FOR BANKS Internet fraud and data theft continue to hit the headlines around the world. The business and finance sectors are unsettled and on the lookout for intelligent and efficient security software – such as the tailor-made solutions provided by NetGuardians SA, especially for banks and financial service providers. Photo Raffael Maio Board Member, CEO-COO, Co-Founder


About the company NetGuardians SA leads the way in behavior analysis for data and information exchange in the banking sector. Its monitoring software makes it possible to rapidly assess and minimize the risk of fraudulent activity and data theft.

WEBSITE www.netguardians.ch

NetGuardians SA was founded in 2007 by Raffael Maio and Joël Winteregg as a spin-off company from the Vaud School of Business and Engineering and is located in the innovative environment of the Parc Scientifique in Yverdon-les-Bains. Having tapped the Swiss market, the young company now has its sights set on Africa and the Middle East. The firm specializes in the development of software solutions for combating fraud and data theft. Key customers include banks and financial service providers. In 2012, 80 percent of NetGuardians’ sales were in Switzerland, with only 20% from exports. Now, domestic sales account for nearly half of the total and export business for more than half. Major foreign customers include financial service providers in the emerging markets of Africa, Asia and the Middle East. “The banking sector is developing fast in these markets,” explains Raffael Maio, COO and co-founder of NetGuardians. “Some banks are doubling in size within the space of a year. As a result they are planning ahead and buying the all-inclusive solutions they need as a single package, whereas in Europe our customers are more likely to evaluate the effectiveness of their existing software and optimize it as required.” NetGuardians focuses on the banking sector and the IT systems typically used there, such as the core banking software from Temenos and Oracle’s Flexcube. “We are familiar with the financial institutions in the countries we deal with and know which solutions they work with. This gives us a clear idea who our customers are,” says Maio. Participation at a Switzerland Global Enterprise trade fair in 2012 gave NetGuardians SA an opportunity to forge new contacts and analyze the Middle Eastern market in more detail.

BUILDING BRIDGES BETWEEN IT AND THE FINANCE SECTOR Maio notes a trend among banks to focus more on their core business and let professional service providers deal with their IT. But, any wholesale outsourcing of IT, whether in local or distant markets, is an additional security risk, and although it is possible to use performance contracts and non-disclosure agreements to control the handling of sensitive data by partners there is often no technology-based control system in place. “In the past, IT was considered in complete isolation from the bank’s actual core business. Now people accept that the reason the business works is because it is based on IT – it’s all about exchanging information,” Maio stresses. NetGuardians successfully connects these two worlds. Conventional software may check whether a transaction is taking place with a given login, but it is not able to detect whether this identity has been stolen. The NetGuardians software analyzes the behavior of the trader and ascertains whether the person carrying out the transaction is actually physically present in the building, if there is anything unusual about the time the transaction is executed (midnight would be suspicious, for example) or if anyone is suddenly carrying out twice as many transactions as they would on average. In such cases the system would raise an alarm, contacting the chief risk officer by text or email.

IS BIG BANKER WATCHING YOU? Does this mean employees should worry about being constantly monitored? Raffael Maio denies this is the case, saying that according to customer feedback, the opposite is in fact true. “If there’s a case of fraud where the culprit can’t be identified, the whole team comes under suspicion. That causes mistrust and insecurity. With our software it’s possible to track illegal activities with a high degree of precision,” he explains. At the same time, banks are restricting access permissions for certain activities, which is leading to changes in traders’ attitudes to risk-taking. Customer surveys show that they are more cautious in their dealings and less inclined to take a chance on transactions they are not completely sure about. “It’s a positive effect we had never predicted at the outset,” says Maio happily.

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IMPORT PROMOTION We connect, we support, we build trust Arranging business contacts for importers from the EU, Switzerland and other EFTA countries Market access for SMEs from partner countries OFFICIAL PROGRAMME

SWISS IMPORT PROMOTION PROGRAMME SIPPO

Sectors Food Fruit and vegetables Fish and seafood Natural ingredients Non-food Fashion Furniture Home accessories Technical products Industrial subcontracting Software development Compressed wood Sustainable tourism

GHANA COLOMBIA

PERU

BOLIVIA

17 partner countries SMEs in these countries can apply for admission to the SIPPO program

32 focus countries The SIPPO program supports SMEs in partner countries exporting to European focus countries (EU, Switzerland, EFTA countries)

8213

CONTACTS AND QUERIES from importers from Switzerland and the EU

4 buyer missions Indonesia, Peru, South Africa - 32 participating companies - 50 companies visited


Products and suppliers Companies in Europe and Switzerland benefit from: - new market opportunities - new products - reliable suppliers

Services Country Pavilions SIPPO Pavilions SMDA interventions

(systemic market development approach)

+ 2598

JOBS CREATED IN PARTNER COUNTRIES

UKRAINE SERBIA BOSNIA-HERZEGOVINA KOSOVO MACEDONIA ALBANIA

TUNISIA NEPAL EGYPT VIETNAM

CAMBODIA

Partners

A

40 partners in 18 countries

INDONESIA

SIPPO representatives

SOUTH AFRICA

“Albania, BosniaHerzegovina, Indonesia, Macedonia, Peru, Serbia, South Africa”

CHF 48 million export growth in partner countries

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SUSTAINABLE SCALLOP BREEDING In April 2013, ten companies took part in the Swiss Import Promotion Programme (SIPPO) at the European Seafood Exposition (ESE) in Brussels, the world’s largest trade fair for fish and seafood. Standing out in particular was the Peruvian SME Seacorp, a specialist in the breeding of scallops. Photo Seacorp fishermen, Peru


About the company Seacorp is a family business that breeds scallops in northern Peru. Since taking part in the Swiss Import Promotion Programme SIPPO, the company has increased production and sales, created additional jobs and successfully expanded its customer base in Europe.

WEBSITE www.seacorperu.com

After seeing their company grow from eight to 36 employees in two and a half years, the brothers Eric and Ian Hanschke from Lima in Peru can feel justifiably proud. The family business Seacorp has been breeding scallops in northern Peru since 2003, and with no small amount of success. Every new beginning is difficult. “When we founded the company, I had to sell my car. My brother invested his savings,” laughs Eric Hanschke, Sales Manager at Seacorp Peru. Seacorp began as a joint venture with a large Peruvian scallop breeder. Soon, the brothers were investing the money from each harvest in new scallops, and in turn using these to gradually increase the size of the stock. All the while, they had to work hard to maintain their independence. With the family living some 1000 km away in the Peruvian capital Lima, visits to loved ones were extremely rare during this time.

VIA THE SIPPO NETWORK TO THE ESE Francisco Blaha, Consultant for Fish and Seafood at SIPPO, first became aware of the brothers through the Peruvian trade development organiza­ tion Promperu. Seacorp was admitted to the SIPPO program soon after, and since their first participation in the trade fair last year have demon­ strated an impressive track record: 36 additional permanent employees, rising to around 90 employees during high season and harvesting. Moreover, land-based production has been increased from 600 square meters to three hectares and sea-based production has grown up to 240 hectares. The customer base has also grown following their participation in the SIPPO program. In the meantime, Seacorp exports to Spain, France, Austria, Germany, the Netherlands, Canada and the USA, while Switzerland is firmly in its sights. Today, the company is consciously restricting itself to these countries, exporting 300-350 tonnes per year, namely 15 to 20 containers. This output helps to keep production at a sustainable level. Seacorp wants to know who its customers are, and values direct contact. “We previously came to the ESE as visitors, and had no contact with customers. Participating in the SIPPO program has opened up new prospects for us, and has facilitated contacts. We now have a platform for showcasing our products, and can cultivate our relationships with the end customers.”

SUSTAINABILITY MORE THAN JUST A LABEL At Seacorp, the concept of sustainability is taken extremely seriously, and in every sense. 42% of the electrical supply to the farm is provided by two wind turbines. The company only employs people who live locally, and knowledge is willingly shared through training and courses. This is not always a straightforward undertaking, as Ian Hanschke explains: “We often work with former fishermen, and there can be vast cultural differences in the approach to work. They have to keep to the processes and schedules, and they can’t throw waste on the floor or into the sea. Sometimes, we have to start from scratch.” The involvement of the community is crucial, as it allows the region to share in the economic success by integrating all farming, processing and exporting activities within the local region.

BREEDING TAKES ONE AND A HALF YEARS From fertilization to harvest, it takes at least one and a half years to produce a scallop. During this time, Seacorp undertakes a quality check every week. The experts can tell when the scallops were born, where they have grown, and the condition of the seawater throughout the breeding period. In contrast to most aquaculture, the scallop spats are not collected in the sea and taken from there to captive breeding. Quite the reverse: the scallop spats are farmed from fertilization in a state-of-the-art hatchery adjacent to the sea farms and then placed in large cages in the open sea, where they can grow naturally. These are then individually hand-picked by a team of divers, which leaves the seabed undamaged and the immediate environment unchanged. At Seacorp they can proudly say, “We add life to the ocean.”

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INVESTMENT PROMOTION Connect with the best - Marketing Switzerland as a business location - Referral of concrete relocation projects of foreign companies to cantonal and regional busi- ness promoters - Global coordination of Swiss location promotion and its participants OFFICIAL PROGRAM

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“Environment + Life”

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Investment Promotion Academy (events, summits) 182 articles in foreign media on Switzerland as a business location

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GLOBAL GROUP CHOOSES WINTERTHUR DMG MORI, the world’s biggest machine tool manufacturer, is moving to Winterthur. From the autumn of 2014 all of the German-Japanese company’s sales and service activities will be coordinated from their new technology center. Around 200 new jobs will be created on the old Sulzer-Allee site. Photo DMG MORI SEIKI Co., Ltd The groundbreaking ceremony


About the company In June 2013, machine tool manufacturers DMG MORI SEIKI AG (formerly GILDEMEISTER AG) from Germany and DMG MORI SEIKI Co., Ltd (formerly MORI SEIKI Co., Ltd) from Japan chose Winterthur as the location for the headquarters of their joint venture DMG MORI SEIKI EUROPE AG, trading as DMG MORI. The companies involved are global market leaders in the development and production of cutting machine tools with an emphasis on milling and lathe technology.

The former Sulzer site in Winterthur is a hive of construction activity, as it is transformed into an urban center with residential and commercial buildings. The project received additional impetus in September 2013 when the city administration presented its redevelopment plan. The construction firm Implenia, which owns the site, is planning to build housing for 1000 residents and create 5000 workplaces. One of the buildings planned for the site will rise to 120 meters, a new vantage point for the city only six meters shorter than the Prime Tower in Zurich.

EUROPEAN HQ AND TECHNOLOGY CENTER And there’s more to come: DMG MORI, the world’s biggest machine tool manufacturer, is building its new European headquarters on the former Sulzer site. Following the groundbreaking ceremony on October 1, 2013, the excavators have now moved in. Over an area of 21,000 square meters, DMG MORI SEIKI EUROPE AG – under the new sales and service brand DMG MORI – will be supervising 17 national subsidiaries and 950 employees across Europe, from Scandinavia to Italy.

NEW URBAN CENTER

WEBSITE www.moriseiki.eu

“In a year’s time this piece of land will be unrecognizable,” said Winterthur’s mayor, Michael Künzle, in his welcoming address. He added that the renewal would not be limited to this site alone but would cover the whole of the Neuhegi-Grüze district. Winterthur’s second urban center will be created here, with commercial and industrial buildings providing 10,000 jobs, as well as residential areas and open spaces.

REASONS FOR CHOOSING WINTERTHUR Sulzer, Rieter and the Schweizerische Lokomotiv- und Maschinenfabrik are familiar names even to DMG MORI’s German-Japanese parent company. Silvio Lehmann, CEO of DMG MORI SEIKI Europe AG, emphasizes that one of the most important factors in the decision to come to Winterthur was the proximity of local industry. The location in Switzerland in general and Winterthur in particular benefits from available space, a good infrastructure, and its proximity to Zurich airport and the technical universities with their promise of a lively transfer of technology and a highly-skilled workforce. For example, one of the major occupants of the Sulzer-Areal Werk 1 site will be the Zurich University of Applied Sciences, which is setting up its new HQ there. Soft factors such as quality of life, the proximity to the old city center, parks and residential areas, and the International School (which is within walking distance) are, claims mayor Künzle, also important for recruiting additional employees to the new location.

CITY AND DEVELOPMENT AGENCIES JOIN FORCES DMG MORI’s move to Winterthur represents one of the biggest and most important projects in the twenty-year history of business development in the region. DMG MORI is investing over EUR 40 million. Location Promotion Winterthur Region has been working with the City of Winterthur, the Canton of Zurich’s Business and Economic Development Division, the Swiss Business Hub Japan run by S-GE as well as site owners and project developers Implenia for two years to realize the project. The Swiss Business Hub Japan played a significant part in the choice of location, as the background decision-making was all done in Japan. Roger Zbinden, head of the Swiss Business Hub Japan in Tokyo, explains: “In April 2011, initial talks were held with the managing director of MORI, Dr Masahiko Mori, at the headquarters in Nagoya, Japan, in order to present Switzerland as a potential location.” Together with all the advantages of the location mentioned above, the professional support available both locally in Japan and from all the departments involved in Winterthur and the Canton of Zurich was another major factor in opting for the Sulzer-Allee site.

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NETWORK At home: comprehensive and nationwide Abroad: globally networked Experts, partners and sponsors Internationalization experts, companies, specialists, public and private organizations ensure effective business promotion

Switzerland Global Enterprise Offices in Zurich, Lausanne and Lugano

Sponsors State Secretariat for Economic Affairs SECO 26 cantons Associations

Chambers of industry and commerce

Export platforms

EXPERT DIRECTORY

Cleantech Switzerland ingenious Switzerland Medtech Switzerland Swiss Health

209 internationalization experts

33 certified experts


Export cheques for SMEs from Liechtenstein

19

Swiss Business Hubs worldwide

PARTNERSHIPS

Premium Partner Credit Suisse (Premium Partner since 2009) Strategic Partners DHL SAP XL Group

Bilateral chambers of foreign trade

21

78 Trade and Investment Officers

Embassies and Consulates-General

2

ACADEMY

internships for master’s graduates

40

training days

250 participants

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A SUCCESSFUL BUSINESS HUB FOCUSING ON WORLD MARKETS Liechtenstein’s SMEs generate high value added, build on innovation, deliver quality and are successful exporters. They also have the support of Switzerland Global Enterprise. Photo Christian Hausmann Head of the Liechtenstein Office of Economic Affairs


About the company Office of Economic Affairs (OEA) In many areas, the Liechtenstein government relies on the Office of Economic Affairs (OEA) for the implementation of its economic policy. This covers a multitude of responsibilities in areas of the economy ranging from unemployment benefit

Ultralight AG, headquartered in Schaanwald, specializes in UV technology. In 2013, it took part in the Swiss Pavilion organized by Switzerland Global Enterprise (S-GE) at the PackTech India show in Mumbai. Schekolin AG from Gamprin-Bendern, which produces packaging coatings, was equally successful. It made a number of promising contacts at the international event for the packaging and processing industry. Listemann AG from Eschen, which specializes in material and heat treatment technology, found an ideal partner for the Turkish market, all thanks to a market flash and business contact check conducted by S-GE. And in Russia, the interests of coffee roasting company Demmel AG will in future be handled by a reputable importer, following a fact-finding mission organized by the Swiss Business Hub.

to occupational safety, and from civil aviation to customs and excise duties. The OEA employs around 50 staff in Schaan and is run by Christian Hausmann, who holds a degree in economics from the University of St Gallen. In October, the Office became the first department in the state administration to be presented with an EFQM Committed to Excellence award.

WEBSITE www.avw.llv.li

Like many other Liechtenstein SMEs, the four companies mentioned above have benefited from “export cheques”, as they are known. Since 2011, the Liechtenstein Office of Economic Affairs (OEA/AVW) has regularly distributed these vouchers – each worth 7500 Swiss francs – to interested SMEs. They can be used either to finance participation in a leading international trade fair or to pay for one of S-GE’s chargeable services. This kind of financial support typifies the importance attached by the government to the domestic economy.

MORE THAN A PARTNERSHIP OF CONVENIENCE “The export cheque concept has been very well received by our SMEs,” says OEA Head Christian Hausmann, “and they were all gone within the space of a few days.” Many companies have used the opportunity to obtain services from S-GE, which has resulted in a significant increase in the cooperation – now dating back 30 years – between Liechtenstein and the Swiss specialists for the promotion of exports, imports and business locations. This is based on a service agreement for the period 2011 to 2013 which Christian Hausmann initiated when he took office four years ago, and which is scheduled for a three-year renewal. “This framework agreement makes provision for the availability of services specifically to Liechtenstein. It means that S-GE, for example, will manage a twice-yearly event for SMEs and that 20 of our small to medium enterprises will also receive a complimentary market flash.” Referring to this closer cooperation, Hausmann says: “It doesn’t make sense for a small country like ours to have its own organization promoting exports, so we’re happy to have this long-term cooperation agreement with S-GE.” It goes beyond a purely business arrangement: “We established a friendly footing for our relationship a long time ago.”

INNOVATIVE AND EXPORT-ORIENTED Liechtenstein is a highly productive country and an important economic center. It has a population of 37,000 and offers as many jobs in its 4100 companies – the equivalent of one company for fewer than nine inhabitants. “That’s a world record,” says the head of the OEA, and draws a comparison: “In Switzerland, the ratio of inhabitants to companies is 24 to 1, and in Germany it’s even higher. The USA comes in behind us with one company for every 15 of the population.” According to Christian Hausmann, 40 percent of gross domestic product is generated by commerce and industry, which is double the figure for Switzerland or Germany. Apart from the big international companies like Hilti, Oerlikon or Thyssen-Krupp, he adds, the country’s success rests firmly on the shoulders of the SMEs, whose production technology is second to none. “Our export quota is 100 percent, so it’s no wonder that the government aims to support exporting companies, as it does through its cooperation with S-GE.”

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PUBLICATION DETAILS Concept and design: S-GE, Varese Corridor Editor: Sibylle Zumstein, S-GE Cover picture: Tornos, SwissNano, Moutier, Switzerland Printed in Switzerland © SWITZERLAND GLOBAL ENTERPRISE March 2014 All rights reserved

Switzerland Global Enterprise Stampfenbachstrasse 85 CH-8006 Zurich T +41 44 365 51 51 Switzerland Global Enterprise Corso Elvezia 16 CH-6901 Lugano T +41 91 911 51 35 Switzerland Global Enterprise Avenue d’Ouchy 47 CH-1001 Lausanne T +41 21 613 35 70 www.s-ge.com info@s-ge.com

OFFICIAL PROGRAMMES


S-GE Annual Report 2013