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TRANSCRIPT
Welcome
Zug small world - big business
2
Zug small world - big business
Page 3
bull In the heart of Europe and in the economic center of Switzerland
bull 120000 inhabitants from 131 different nations
bull 105000 workplaces (of which 35400 commuting in)
bull 30745 companies
bull Outstanding economic development over the past decades
Zug small world - big business
4
North-south axis Gotthard (rail and road)
Part of the Greater Zurich Area
In the heart of Europe - in the middle ofSwitzerland
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Selection of intl companies - mainly HQs
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bull Commodity trading
bull Wholesale distribution of brands
bull Life science(Pharma Biotech Med Tech)
bull High Tech (incl Metal processing)
bull Information and communication
technology (ICT)
bull Financial services
(PEFamily OfficesFintech)
bull Sports articles Sports marketing
Corporate functions
bull Full headquarters
bull Procurement Supply Chain IP
Highly diversified industries
Page 7
Dynamics and traditional values
Zug a worldwide leading business location
Swiss Average
Source Credit Suisse Group 2015
9
Criteriabull Tax rates for individuals and corporationsbull General level of educationbull Availability of highly qualified manpowerbull Transport-system based accessibility
Credit Suisse Location Quality Indicator 2015
Diagramm1
Tabelle1
Source UBS March 2016
73060553
Criteria
bull Economic structure
bull Innovation
bull Human capital
bull Labor market
bull Accessibility
bull Commuter belt
bull Price structure
bull Public finance
10
UBS Competitiveness Indicator Switzerland 2016
fDi Europe business location ranking 201617bull 2 Small European Regions of the Future
minus 2 economic potential 2 business friendliness 3 human capital and lifestyle
bull 4 Western European Regions of the Future
bull 6 European Regions of the Future
Page 11
Source wwwfdiIntelligencecom
Major Companies in important Clusters
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Company Industry Function Employees Arrival Growth last5 yrs
Roche DiagnosticsInternational
Life Science Worldwide HQ 2200 1978
Siemens Building Technologies
High Tech Worldwide HQ 2062 2004
Metall Zug (incl V-Zug) Machinery Worldwide HQ 1409 1887
Johnson amp Johnson Life Science Worldwide amp EMEA 920 1984Glencore Commodities Worldwide HQ 750 1975Novartis (Novartis Alcon Sandoz Consumer Health)
Life Science Swiss HQ 480 1972
Bossard Group High Tech Worldwide HQ 392 1983Landis+Gyr High Tech Worldwide HQ 357 1896Crypto Infoguard ICT Worldwide HQ 262+40 1952
Partners Group Finance Worldwide HQ 300 1996
0 - 10 10 - 20 gt20
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The best overall package
Stability Taxation
InternationalityAccessibility Quality of life
TalentsEducation
Business friendliness
Effective business environment
Zug leading in political and economic stability
Page 15
bull For many decades about 75 conservative voters
bull 6 out of 7 ministers are member of a conservative party
bull Multiparty political system = long-standing tradition and stability
Politically stable
Matthias Michel Minister of Economic Affairs (VD) Canton of Zug
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Zug 1 internationally and in CH
X-axis Effective average taxes for highly qualified individuals corporationsY-axis Long-term revenue surplusshortfall as a percentage of GDPThe X-axis intersects the Y-axis at the average taxe rate of BAK taxation index(419 highly qualified individuals 278 corporations)
DE
FK
IR
AT
BEL
CZ
DK
ESFI
HUIT
LUX
NL
PLSE
SK
UK
AR
OW
NW ZG SH
SG
GLSZ
ZH
BE
BS
TG
NO
GR
UR
LU
SL
GE
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
5 10 15 20 25 30 35
Reve
nue
surp
lus
inco
me
gap
2060
BAK Taxation Index Corporations 2013
DE
FK
IR
AT
BEL
CZ
DK
ES
FI
HUIT
LUX
NL
PLSE
SK
UK
AROW
NWZG SH
SGGL
SZ
ZHBE
BS
TG
NO
GR
UR
LU
SL
GE
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
20 25 30 35 40 45 50 55 60Re
venu
e su
rplu
s in
com
e ga
p 20
60BAK Taxation Index Highly Qualified Individuals 2013
Zug 1 internationally and in CH
Source BAKBASEL ZEW
Tax rates and public financing sustainability
Swiss cantonsEuropean countries
Zug high availability of talents
bull Access to largest talent pool of approximately 1 mio in Greater Zurich Area and Central Switzerland
bull Access to over 100 mio European talentsbull Global top specialistsbull Worldwide leading universities and research institutes are located in the
area ZurichZugLucerne (eg Swiss Federal Institute of Technology Zurich ranked 9th best university in the world World University Ranking 2015)
Page 18
Magnet for international talents
High percentage of highly qualified talentsPersons holding a university degree
Source Bundesamt fuumlr Statistik Geostat Credit Suisse
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Source microcensus mobility and traffic BFS 2012
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Total commute to Zug 35400 commute out of Zug 17700
Zurich Airport Switzerlands gateway to the worldShort commuting distances within Switzerland
By air
Access due to central location in Europe and Switzerland
Page 21
World-renowned research amp knowledge locationZug Institute of Financial Services Zug (HSLU)
From 2016 School of Information Technology (HSLU) Institute for Knowledge Energy and Raw Materials Zug (WERZ)
Zurich Swiss Federal Institute of Technology Zurich (ETHZ)(20 min from Zug) University of Zurich (UZH)
Lucerne University of Lucerne(20 min from Zug) University of Applied Sciences Lucerne (HSLU)
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Source Global Competitiveness Index 2015-2016 World Economic Forum (6 = Highest score)
Criteria
minus Redundancy costs
minus Hiring amp Firing
minus Cooperation in labor-employer relations
minus Flexibility in wage determination
minus Ease of finding skilled employment
minus Active labor market policies
minus Pay and productivity
minus Reliance on professional management
minus Female participation in labor force
minus Male participation in labor force
Labor market efficiency
Diagramm1
Tabelle1
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Changes in immigration law
Unchanged free movement of persons until 2017 At present negotiationswith the EU as follows
bull Maintaining of the bilateral agreements
bull Immigration must be influenceable by Switzerland
bull Significant economic needs must be considered (initiators statement)
Conclusionsbull Outcome open since the EUs reaction is pending
bull Worst case scenario quota system like we had before 2002 ZG was always able to
cover their requirements
bull Alternative scenario additional vote considering all the pros and cons
Zug highest quality of life
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laquoThe Canton of Zug offers our employees a quality of life that is unrivalled a fantastic transportation infrastructure clean environment and a hub for innovation all set against awe-inspiring landscape This made our decision to establish our office in Zug an easy oneraquo
Dieter Schulze CEO SABMiller Europe AG
Quality of life
People from 131 different nations live in the canton (total 31643)By continentsEurope 88 Asia 5 America 4 Africa 2 Australia 1
Top 12 nations in percent
Source Fachstelle Statistik Zug 2013
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International community
bull Info material amp newsbull Newcomer set
bull wwwzgch (English)
bull wwwzug4youch and The Zug Post
bull Migration Advisory Officebull English-speaking authorities
bull Relocation agencies
bull Service amp international clubs
bull Various events
Page 27Page 27
Integration of internationals
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bull International School of Zug andLuzern wwwiszlch
bull WalterswilBaar
bull Riverside Campus Huumlnenberg
bull Institut Montana ZugZugerbergwwwmontana-zugch
bull International School of Central Switzerland Chamwwwisocsch
bull SIS Swiss International School Rotkreuz wwwswissinternationalschoolch
bull Four Forest Bilingual International School Cham wwwfour-forestschoolch
International Schools
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bull Cantonal hospital in Baar (Zuger Kantonsspital)
bull Private Andreas Clinic Cham (Hirslanden Group)
bull Nursing homes
bull Home healthcare support (Spitex)
bull Many more hospitals in Zurich and Lucerne
Health Care System
connections per hour and direction
Zug city trainsAccess to city center fromall communities within max15 min
20 min to Zurich (half hour interval)41-53 min to Zurich Airport (half hour interval)
20 min to Luzern ( half hour interval)
Baar
Cham
Rotkreuz
Arth-Goldau Erstfeld
Oberwil
Chaumlmleten
Zythus
Neufeld
Lindenpark
Postplatz
Fridbach
Schutzengel
Chollermuumlli
Alpenblick
Casino
Walchwil
HoumlrndliLuzern
Zug
ZuumlrichZuumlrich
Steinhausen
Rigiblick
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31
Source Swiss Federal Statistical Office 2016
0
50
100
150
200
Crimes per 1000inhabitants
Crime statistics 2015
Diagramm1
Sheet1
Zug effective business environment
Our Economic Promotion teambull is a one-stop-shop caring for companies located in Zug and supporting those
interested in moving here
bull actively develops solutions for industry needs
bull provides answers to your questions solution-minded and fast
bull offers a unique set of supporting material
bull acts as a long-term partner to support you in your growth
All our services are free of charge
The spirit of Zug friendly and efficient
bull Business support services 280 advocates300 fiduciaries (90 organized in Fiduciary Association of Zug)gt 10 banks (also providing all international services)
bull Business premisesHigh availability of top office space on prime locations at reasonable prices Price range depending on location (CHF 150- to CHF 400- per m2 and year)
bull Business centers10 business centers in the canton
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Business infrastructure
Zug leading in overall tax burdenand long-term financial stability
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Source KPMG (2015) Corporate Tax Rates Table amp Swiss Tax Report 2014
International tax comparison coporate profit taxMaximum tax levy on corporate profit
Diagramm1
Tabelle1
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Source KPMG (2015) Corporate Tax Rates Table
Development international corporate profit taxMaximum tax levy on corporate profit
Diagramm1
Tabelle1
85
tax status ordinarymixed
(~ up to 5 FTE no Swiss income share-
holders abroad)
mixed(~ more than 30 FTE
no Swiss income)
85 85
89
09 22after tax rates(published)
effective tax rates( on pre-tax profit)
1457 856 962
85
783
Holding(holding participations 23 of income assets out of participations)
cantonal amp municipal
federal
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Corporate profit taxation
Source Kantonale Steuerverwaltung Zug
39
Corporate entities
ExampleJoint-stock company equity of CHF 2 mioNet profit CHF 16000000
Total cantonal municipal and church tax (+direct federal tax approx CHF 11790)
Source Eidgenoumlssische Steuerverwaltung 2014
Intercantonal tax comparison