BUSINESS BAVARIA

WHAT‘S INSIDE

ISSUE 03 | 2013

BUSINESS BAVARIA

5 MINUTES WITH …Konrad Häusler, Managing Director of REC Deutschland GmbH

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IN FOCUS: DIgITISATION Digital Bavaria – Connected to the Future

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BAVARIA IN YOUR BRIEFCASEEaster Fountains in Franconia

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Under the heading “Work in Bavaria” the Bavarian Ministry of Economic Affairs has created a comprehensive internet information platform where companies and specialists can find important background information on working, living and staying in Bavaria. Informationon government program-mes such as “Study and stay in Bavaria”, a joint initiative of the Bavarian Minister of Economics, Martin Zeil, and the Bavarian Minister of Science, Dr. Wolfgang Heubisch, in co-operation with Bavarian Universities, is also available.

www.work-in-bavaria.de

www.work-in-bavaria.de/employees/work/study/study-and-stay

WHERE TAlENT MEETS

With an initiative worth billions, Bavaria continues to advance digitisa-tion throughout the state.Under the slogan “Digital Bavaria”, as much as one billion euros are to be spent on the development of broadband networks alone. According to Bavarian Minister of Economics, Martin Zeil, fast internet access is the “backbone of digitisation”.

BAVARIA’S DIgITAl FUTURE

When presenting the programme, Zeil also stated that digitisation leads to substantial changes, both in business and society, so early planning was necessary. In addition to broadband development, the Ministry has identified seven other key areas it intends to promote in co-operation with scientists and businesses. Twelve concrete flagship projects have been selected that the State Government wants to support with a total of €250 million.

The funded projects include IT security, development of applied research, digitisation of important business sectors, competence development and in-ternational networking and communication in the digital economy.

With its campaign, the state wants to foster digital business start-ups and support digital businesses setting up shop in Bavaria.

The range of applications is broad. One of the supported projects deals with ‘networked mobility’, its research objective being the car of the future,where a computer brakes and steers autonomously. The state government is con-sequently praised by the IT business association, BITKOM.“ The strategy is an important step for Bavaria as a business location, particularly in light of Industry 4.0 issues”, states its national spokesperson, Martin Kinne. The global playerSiemens is also pleased.“Bavaria’s strength is to develop sec-tor-specific software”, comments Marion Horstmann, Chief Strategist of the Industry Sector at Siemens. Three fifths of the total revenue of the Munich-based group is generated by software products.

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Regions special: loweR BavaRia

In a series on the regions of Bavaria we provide information on the diversity Bavaria

has to offer. In this issue, we present the government district of Lower Bavaria. ‘Up-and-coming region’3 is a popular synonym for the attractive business and living space, which

is framed by the culturally rich cities of Passau, Straubing and Landshut.

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The Business Promotion Agency of the State of Bavaria

Holidays, business or day trips – never before have so many people tra-velled to Bavaria. In 2012,Bavaria once again set a new visitor record with 31,176,908 arrivals, an increase of 4.7%. Overnight stays at 84,069,964 are an increase of 4.2% on the previous year.„When it comes to tourism in Bavaria, 2012 thus is the top year“, stated

Minister of Economics, Martin Zeil, on occasion of the annual tourism press conference. Tourism in Bavaria therefore is both a booming sector and a leading industry in the state. Especially foreign guests are inclrea-singly pleased with the destination Bavaria: the statistics show a plus of 8.5 percent (7,298,848) for foreign bookings.

Every March the digital world meets at CeBIT in Hanover, the world’s largest high-tech fair. The country in focus for 2013 is Poland. REC Global’s head office for the German-language countries is in Ismaning, near Munich. The multinational group was founded in Poland and offers innovative software services via a number of local sales offices in Europe and North America.

WHy DID yOU CHOSE BAvARIA? The roots of REC Global are within Siemens AG and the focus of our business is on the German market. Munich proved to be an optimum location to achieve our goals across Germany and our de-velopment sites in Poland, Slovakia and Croatia, as fast as possible.

WHAT ExACTly MAkES THIS AN OPTIMUM REGION?Besides the proximity to our customers, Munich offers good infrastructure with the internatio-nal airport, motorway connections and a highly developed railway network. In addition, there are many innovative high-tech companies in the Munich region, the Technical University and of course, Munich hasa very high quality of life. Due to the innovations and high-tech products, Germa-ny and Bavaria in particular, enjoys quite a high reputation in the world, which is why Germany is a key market for REC Global. In addition, Bavaria has many medium-sized companies within the software development sector for embedded and automotive systems as well asexcellent support from public organisations which substantially fa-cilitates starting up a business in Bavaria. That is something that other countries should learn from.

DID BEING IN MUNICH lEAD TO NEW OP-PORTUNITIES fOR yOUR COMPANy?Our access to the German market became much simpler once we had a base in Munich. Having a

local business partner and contracts being subject to German law has really simplified co-operation with our customers.

HOW WEll HAS THE GERMAN BRANCH BEEN INTEGRATED INTO REC GlOBAl?REC Global has been in Munich since 2009 and this sales location has turned out to be very im-portant for the entire group. Several major custo-mers in Germany and Austria have been won and long-term co-operation projects have emerged.The German branch is fully integrated into the overall organisation.

WHERE DO yOU SEE fUTURE GOAlS AND Ex-PECTATIONS fOR THE REGION Of BAvARIA?As a result of the continuous shortage of spe-cialists in Germany, REC Global has good op-portunities to co-operate with other compa-nies. We would like to support companies in mastering this challenge and thus effectively strengthen Bavaria as a business location.

NUMBER Of THE MONTH

KONRAD HäUSlER, MANAgINg DIRECTOR OF REC DEUTSCHlAND gMBH

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31,176,908

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5 MINUTES WITH …

at least branches in Bavaria. There are also many medium-sized IT security companies such as validas, Secunet, Genova, Milkovski, Mixed Mod, Dall-meier Electronic oder Prozesswerk, the nuremberg-based certgate GmbH and major security technology users like Allianz, O2 and Munich airport. The only specialist exhibition on IT security in the the German-speaking countries, the it-sa, is held annually in nuremberg. Security technology also plays an important role for companies such as Audi, BMW or MAn, which are involved in the Embedded Systems sector.

Data and internet security is at the heart of the recently presented ‘Digital Bavaria’programme. The Fraunhofer Research Institution for Applied and Integrated Security (AISEC) in Garching near Munich is to be expanded into a research centre. “We are becoming increasingly reliant on information and communication technologies functioning properly and not being mani-pulated”, explains head of the institute, Claudia Eckert.

But Bavaria has not just been top in IT security. Information and communi-cation technology is one of the key industries in the State. About two fifths of the 75,500 national ICT enterprises, including many software developers and IT service providers, are based in Bavaria.

The almost unique concentration of research institutes, manufacturers and user industries, each with world leaders, makes Bavaria a hotspot of the digital economy. To further increase the attractiveness of the location, the state government invests in research on cyber physical systems, i.e. systems where computational and physical processes and resources are linked and coordinated via information technology and communicate via global public networks.

Another key focus of research is on the so called smart grids which help optimisepower supply across the grid. ‘Car-to-X’technology is also being promoted; driver assist and traffic management systems workingtogether to manage the traffic using data from all networked vehicles and their environment.

The area of eHealth has particularly large economic potential. After all, many health service sectors are more than a decade behind many other industries when it comes to the use of IT solutions. Under the heading ‘Industry 4.0’, the State Government intends to invest significantly in the development of self-configuring and flexible production plants. Minister Zeil is sure about one thing: “Digitisation is the innovation engine of the 21stCentury”.

The ‘Digital Bavaria’programme focuses on promoting data and in-ternet security. In addition, companies and the Bavarian Ministry of Economic Affairs have identified network technology, power supply, transport and health as important future markets.

An online banking customer from nördling was shocked to find that he had fallen victim to cyber crime in mid-February. He had entered TAn numbers on a fake website which looked just like his bank’s online presence. Seve-ral thousand euros were then stolen from his account.

Phishing, where criminals use fake websites and emails to obtain the cre-dentials of online banking customers, has been on the increasefor quite a whileaccording to consumer protection organisations and the Federal Criminal Police Office (BKA). Likewise for spyware attacks on computers. “Thenumber of unreported cases in this area cannot even be estimated”, reported Jürgen Maurer, vice-President of the Federal Office of Criminal Investigations, at a recent police congress. According to the Federal Office, in 2011 approximately 60,000 cyber crime cases were counted in Germany.Five years ago it was half that number. According to EU data, one million people worldwide are victims of cyber crime on a dailybasis. Some compa-nies haveevenalready been blackmailed by hackers.

But now the interception of personal data might soon become more diffi-cult. The Bavarian Ministry of Economic Affairs is promoting the develop-ment of a secure computer keyboard which helps prevent phishing attacks.Data is encrypted directly where it is generated,i.e. at the keyboard, and transmitted securely to the web server. The Bavarian companies Applied Security and Imbus as well asthe Upper-Palatinate branch of ZF Friedrichs-hafen AG are involved in thisresearch project.

In addition, the Free State is supporting several other projects in this area, among them a project which could significantly limit the misuse of credit cards. The Munich-based companies Giesecke & Devrient and validas to-gether with the Technical University of Munich have jointly developed a test procedure that allows the integrity and security of smart cards to be verified. This will increase data security and reduce production costs.

Bavaria is already the most important German IT security location and ranks among the leading locations at a European level. The southernmost Federal State has been home to numerous leading security technology companies and research institutes for years. Companies such as Infineon, Giesecke & Devrient, Oracle, ARM, EADS/Cassidian, Rohde & Schwarz, Bosch Sicher-heitstechnik, IABG, TÜvSüd, ESG and Siemens have their head offices or

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IN fOCUS: DIGITISATION

DIgITAl BAVARIA – CONNECTED TO THE FUTURE

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fAIRS AND EvENTS

IMAgE SOURCES: S. 1: © Thinkstock.com | S. 3: © Susann Städter/Photocase S. 5: © Roland Amschlinger | S. 6: © Thinkstock.com

YOUR KEY TO OUR STATEInvest in Bavaria – The Business Promotion Agency of the Bavarian Ministry of Economic Affairs, Infrastructure, Transport and Technology and Bayern International.

PUBlISHERDR. JOHAnn nIGGLPRInZREGEnTEnSTR. 2880538 MUnICH | GERMAnyTEL.: +49 89 24210-7500FAX: +49 89 24210-7557WELCOME@InvEST-In-BAvARIA.COM

BUSINESS BAVARIACOORDInATIOn: ALEXAnDRA SCHMIDHUBEREDITORIAL DEPARTMEnT: WWW.TEXTBAU.COMTRAnSLATIOn: WWW.TRAnSLATE-ME.InFOART DIRECTIOn | InTERnET: ALEX PODOLAyDESIGn: WWW.TREIB-STOFF.COM

… IN MUNICH

INTERNET WORlD 201319 – 20 MARCH 2013International Internet and eCommerce Fair

www.internetworld-messe.de/eng

MUlTI-COlOURED FOUNTAINS: TOWNS IN THE FRANCONIAN SWITzERlAND REgION DECORATE THEIR FOUNTAINS WITH COlOURED EggS

BAVARIA IN yOUR BRIEfCASE

Exactly 100 years ago Engelhardsberg in the franconian Switzer-land region is said to have displayed the first Easter fountain. The reasons for this custom of decorating fountains remain unclear. Be-sides Christian influences it could be that the origin dates back to times of water shortages in the franconian region.

Until well into the 20th Century it was very challenging to supply the remote valleys of the region with water. The region simply did not have a central water supply. The inhabitants built cisterns and containers to collect the pre-cious liquid. Aquifers in the Jurassic layers could usually only be found at the bottom of the valleys. From there the water had to be transported laboriously in butts to the mountain villages by ox cart.In some places wells a hundred metres deep were dug to get to the groundwater. These wells were often protected with a solidly built well house.

Decorating the Easter fountains begins with cleaning the site or “sweeping the well”, after which it is decorated.The clubs in the villages are responsib-lefor sweeping and decorating; the preparation of these coloured works of art often takes several days.According to the Guinness Book of Records, the world’s largest Easter foun-tain can be found in Bieberbach near Egloffstein – with 11,108 hand painted eggs. The small village lies on a Jurassic hill, between Gößweinstein and

Egloffstein. Also famous are the Easter fountains in Betzenstein, Birkenreuth, Schloss Greifenstein and Burg Pottenstein. The fountains are decorated every year on Palm Sunday or Good Friday for a period of two to three weeks, de-pending on weather conditions.

www.fraenkische-schweiz.com

... IN NUREMBERg

EUROPEAN COATINGS SHOW19 – 21 MARCH 2013International Trade Fair of the Paint and Coatings Industry

www.european-coatings-show.com

… BY AND WITH INVEST IN BAVARIA

INvEST IN BAvARIA AT THE EvENT“ ERfOlG-REICH IN MITTElfRANkEN, POTENZIAlE NUT-ZEN – IDEEN vERWIRklICHEN“ ON 21 MARCH 2013 IN BAD WINDSHEIM | BAvARIA your contact: Philipp Gleißner | Tel.: +498924210-7517vlr@invest-in-bavaria.com

INvEST IN BAvARIA AT THE lOCATION MARkE-TING EvENT “HIGH-TECH lOCATION BAvARIA” ON 14 MARCH 2013 IN IZMIR | TURkEy

GET TOGETHER lOCATION MARkETING AND NETWORkING EvENT ON SENSOR + TEST IN NUREMBERG fROM 14 – 16 MAy 2013your contact for both meetings:Meike Jäckel | Tel.: +49 89 24210-7512meike.jaeckel@invest-in-bavaria.com

WORkSHOP „INvEST IN BAvARIA“ fORRUSSIAN ENTREPRENEURS ON 18 MARCH 2013IN kAZAN | RUSSIAyour contact: Svetlana Huber | Tel.: +49 89 24210-7505svetlana.huber@invest-in-bavaria.com

INvEST IN BAvARIA AT TRANSPORT lOGISTIC INTERNATIONAl fAIR fOR lOGISTICS, MOBIlITy, IT AND SUPPly CHAIN MANAGEMENT4 – 7 JUNE 2013 IN MUNICH | BAvARIAHAllE B 5 | STAND 319/418your contact:Maciej Czauderna | Tel.: +49 89 24210-7519maciej.czauderna@invest-in-bavaria.com

Easter Fountain

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economy key figures

>> 42% share of employment in the manufacturing industry>> Export quota about 50%>> Above average economic growth>> Above average number of trainees in specialised technical trades as well as workers with advanced training qualification in technical areas

Research and innovation

>> University of Passau, Universities of Applied SciencesLandshut, Deggendorf >> Competence centre Regenerating raw materials>> Technology transfer centres in Teisnach, Freyung and Ruhstorf>> Regional cluster for lightweight construction technologies, micro-system technology,bionics, regenerating raw materialsas well as forest and wood>> numerous corporate networks

People in lower Bavaria, the region around landshut, are proud of their homeland and known for their open-mindedness. A popular mix, which can also be enjoyed at the landshuter Hochzeit – one of the world’s most famous history plays only held every four years, next in 2013.

Also world ranking are the cultural festival “Europäische Wochen” in Passau, the Gäubodenfest in Straubing, the Gothic old town of Landshut and the idyl-lic baroque city of Passau. Tradition and modern trends play a major role in glass technologytoo; with their glass industry the Lower Bavarians set high standards in the region of the Bavarian Forest around Zwiesel. The Danube

ports of Passau, Kehlheim, Deggendorf and Straubing are key infrastructure hubs suitable for oversized and heavy haulage. However, there is still enough room for the region’s original beauty: the Bavarian Forest national park is the only remaining virgin forest area in Germany.

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SPECIAl: lOWER BAvARIA

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Top sectors

>> Automotive>> Electronic and information technology>> Metal construction and mechanical engineering>> Renewable raw materials and energy>> Glass technology and industry>> Construction and civil engineering >> Optics and high-frequency engineering

infrastructure

>> International transit motorways and connection to the ICE network>> Danube ports Kelheim, Straubing, Deggendorf and Passau for mass and heavy load transports>> Connection to the Rhine Main Danube waterway>> Cargo transportation centre Straubing>> Proximity to Munich international airport and 4 regional airports

Usps of lower Bavaria

>> Logistics and transport hub to Austria, the Czech Republic, neighbouring states, Eastern Europe>> Comparatively low wage level, low prices for industrial property, whilst close to Munich and nuremberg

lower Bavaria in figures

>> Area: 10,330 km2

>> Inhabitants:about 1.2 million>> Regional structure: 3 cities (Landshut, Passau, Straubing), 9 districts

liveable lower Bavaria

>> Tourism and recreation region with many leisure options>> year-round holiday destination with snow-sure winter sports areas in the Bavarian Forest>> Spa Triangle Bad Füssing / Bad Griesbach / Bad Birnbach as well as the Danube Spa towns of Bad Abbach and Bad Gögging>> Europe‘s largest golf site

sights in lower Bavaria

>> national park Bavarian forest, only remaining virgin forest area of Germany>> Cultural festival Europäische Wochen, Passau>> Gäubodenfest, Straubing>> Landshuter Hochzeit >> Landshut‘s gothic old town>> Idyllic baroque city of Passau>> Donaudurchbruch, Weltenburg monastery near Kelheim>> Baroque monastery Metten>> “Hundertwasserturm“ in Abensberg, designed by artist Friedensreich Hundertwasser

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