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Solar Energy in Germany: A Strategic Reference, 2006 Table of Contents 1 INTRODUCTION and METHODOLOGY............................................................................1 1.1 1.2 1.3 What Does This Report Cover? How to Strategically Evaluate Germany Latent Demand and Accessibility in Germany 1 1 3 2 SOLAR ENERGY IN GERMANY......................................................................................... 5 2.1 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.3 2.3.1 2.3.2 Latent Demand and Accessibility: Background Latent Demand and Accessibility 5 5 The German Photovoltaic Industry................................................................................................................. 5 The German Solar Thermal Industry.............................................................................................................. 7 Job Market.......................................................................................................................................................8 Outlook............................................................................................................................................................8 Key Contacts 9 Trade Organizations........................................................................................................................................ 9 Trade Events....................................................................................................................................................9 3 FINANCIAL INDICATORS: SEMICONDUCTORS AND RELATED DEVICES..... 11 3.1 3.1.1 3.1.2 3.1.3 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.3 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 3.4 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5 3.5 3.5.1 Overview 11 Financial Returns and Gaps in Germany........................................................................................................ 12 Labor Productivity Gaps in Germany............................................................................................................. 15 Limitations and Extensions............................................................................................................................. 15 Financial Returns in Germany: Asset Structure Ratios 16 Overview......................................................................................................................................................... 16 Assets -- Definitions of Terms.......................................................................................................................16 Asset Structure: Outlook................................................................................................................................. 19 Large Variances: Assets..................................................................................................................................20 Key Percentiles and Rankings.........................................................................................................................23 Financial Returns in Germany: Liability Structure Ratios 38 Overview......................................................................................................................................................... 38 Liabilities and Equity -- Definitions of Terms...............................................................................................38 Liability Structure: Outlook............................................................................................................................ 40 Large Variances: Liabilities............................................................................................................................ 41 Key Percentiles and Rankings.........................................................................................................................44 Financial Returns in Germany: Income Structure Ratios 57 Overview......................................................................................................................................................... 57 Income Statements -- Definitions of Terms...................................................................................................57 Income Structure: Outlook..............................................................................................................................60 Large Variances: Income................................................................................................................................ 61 Key Percentiles and Rankings.........................................................................................................................64 Financial Returns in Germany: Profitability Ratios 79 Overview......................................................................................................................................................... 79 3.5.2 3.5.3 3.5.4 3.5.5 3.6 3.6.1 3.6.2 3.6.3 3.6.4 3.7 3.7.1 3.7.2 3.7.3 3.7.4 3.8 3.8.1 3.8.2 3.8.3 3.8.4 Ratios ­ Definitions of Terms........................................................................................................................ 79 Ratio Structure: Outlook................................................................................................................................ 81 Large Variances: Ratios................................................................................................................................. 82 Key Percentiles and Rankings........................................................................................................................ 85 Productivity in Germany: Asset-Labor Ratios 98 Overview........................................................................................................................................................ 98 Asset to Labor: Outlook................................................................................................................................. 99 Asset to Labor: International Gaps............................................................................................................. 100 Key Percentiles and Rankings...................................................................................................................... 103 Productivity in Germany: Liability-Labor Ratios 118 Overview..................................................................................................................................................... 118 Liability to Labor: Outlook......................................................................................................................... 119 Liability and Equity to Labor: International Gaps....................................................................................... 120 Key Percentiles and Rankings..................................................................................................................... 123 Productivity in Germany: Income-Labor Ratios 136 Overview...................................................................................................................................................... 136 Income to Labor: Outlook............................................................................................................................ 137 Income to Labor: Gaps................................................................................................................................. 138 Key Percentiles and Rankings...................................................................................................................... 141 4 MACRO-ACCESSIBILITY IN GERMANY..................................................................... 156 4.1 Executive Summary 156 157 4.2 Economic Fundamentals and Dynamics 4.2.1 4.2.2 Social Security Reforms............................................................................................................................... 157 Labor Market................................................................................................................................................ 157 4.3 Political Risks 158 4.3.1 Basic Government Structure........................................................................................................................ 158 4.4 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5 4.4.6 Marketing Strategies 159 Services........................................................................................................................................................ 159 Trade Fairs....................................................................................................................................................160 Advertising Options..................................................................................................................................... 160 Associations..................................................................................................................................................161 Public Procurement...................................................................................................................................... 161 Marketing to the New Federal States........................................................................................................... 161 162 4.5 Import and Export Regulation Risks 4.5.1 4.5.2 4.5.3 4.5.4 Self-Certification.......................................................................................................................................... 163 Value Added Tax/Turnover Tax.................................................................................................................. 165 VAT Applicable to Online Sales.................................................................................................................. 165 Custom Regulations/Tariffs......................................................................................................................... 165 4.6 Investment Climate 166 4.6.1 Openness to Foreign Investment.................................................................................................................. 166 4.6.2 Conversion and Transfer Policies............................................................................................................... 166 4.6.3 Expropriation and Compensation................................................................................................................. 166 4.6.4 Dispute Settlement....................................................................................................................................... 166 4.6.5 Performance Requirements and Incentives.................................................................................................. 167 4.6.6 Right to Private Ownership and Establishment......................................................................................... 168 4.6.7 Intellectual Property Risks.........................................................................................................................169 4.6.8 Transparency of Regulatory System..........................................................................................................169 4.6.9 Capital Market Risks................................................................................................................................. 170 4.6.10 Political Violence....................................................................................................................................... 170 4.6.11 Corruption.................................................................................................................................................. 170 4.6.12 Bilateral Investment Agreements.............................................................................................................. 171 4.6.13 OPIC and Other Investment Insurance...................................................................................................... 171 4.6.14 Labor.......................................................................................................................................................... 171 4.6.15 Free Trade Zone Options.................................................................................................................................. 172 4.7 Trade and Project Financing 172 4.8 Travel Risks 173 4.8.1 Country Data.............................................................................................................................................. 173 4.9 4.9.1 4.9.2 4.9.3 4.9.4 4.9.5 4.9.6 4.9.7 Key Contacts 174 Trade Associations and Chambers of Commerce......................................................................................175 Market Research Firms.............................................................................................................................. 176 Commercial Banks..................................................................................................................................... 177 Other Contacts.......................................................................................................................................... 178 Contacts in Washington D.C..................................................................................................................... 178 U.S.-Based Multipliers............................................................................................................................. 179 Useful Web Sites...................................................................................................................................... 180 5 DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS.......... 181 5.1 5.2 Disclaimers and Safe Harbor Icon Group International, Inc. User Agreement Provisions 181 182