1 The Swiss Chemical and Pharmaceutical Industry Zurich, April 2012

1

The Swiss Chemical andPharmaceutical Industry

Zurich, April 2012

2

Source: ACC, CEFIC

Chemicals in Consumer Products

-10.020.030.040.050.060.070.080.090.0

100.0

Lacq

uers

& d

yes

Pharm

aceu

ticals

Cleanin

g ag

ents

Cosm

etics

Tyres

Photo

prin

ts

Carpe

ts

Stock

ings

CD's an

d ta

pes

Curta

ining

Shoes

Batte

ries

Uphols

tery

Clothin

g

Mat

tress

es

Boats

Food

Fuels

3

America59.8 bn CHF

Asia, Africa, Australia

34.4 bn CHF

Switzerland2.8 bn CHF

Europe52.2 bn CHF

World-wide sales"top ten" Swiss chemical and pharmaceutical companies

Total 2011: 149.2 bn CHF

Source: scienceindustries 2012

4

Leading Chemical Export Nations 2010

Source: VCI 2012

billion EUR

0

20'000

40'000

60'000

80'000

100'000

120'000

140'000

160'000

Germ

any

United S

tates

Belgium

France

China

the Netherlands

United K

ingdom

Sw

itzerland

Japan

Ireland

Republic of K

orea

Italy

Singapore

Spain

Canada

India

Russian F

ederation

Taipei, C

hinese

Sw

eden

Thailand

Saudi A

rabia

Austria

Denm

ark

Malaysia

Mexico

Israel

Brazil

Poland

Indonesia

Hungary

Czech R

epublic

Australia

Argentina

Islamic R

ep. of Iran

Finland

5

Crop protection11.7 bn CHF

Diagnostics11.5 bn CHF

Pharmaceuticals

71.0 bn CHF

Vitamins, flavours and fragrances8.5 bn CHF

Fine and specialty

chemicals46.4 bn CHF

Focus on life science and chemical specialties World-wide sales of the "top ten" Swiss companies



6

Increasing trend towards pharmaceuticalsShare of the specialties in the total exported volume


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1980 1990 2000 2002 2004 2006 2008 2010 2011

Other Specialties

Flavors / Fragrances

Crop Protection

Colours

Organic Products

Pharmaceuticals

7

Export Growth of Sectors 1980 - 20111980 = 100 %


Colours(127.3 %)

Organic Products(188.7 %)

Other Specialties(360.9 %)

Crop Protection (363.5 %)

Flavors / Fragrances(397.6 %)

Pharmaceuticals (1'597.9 %)

Pharmaceuticals / Vitamines and Crop Protection Products:until 1988 excluding intermediates

Organic Products:until 1988 including intermediates

8

Increased focus of the companiesIndustry restructuring illustrated by the Basle based chemical companies (1970 – 2010)

9

Worldwide PresenceWorld map of direct investments


10

Employees abroadEmployees of the "top ten" companies by region

Total 2011: 354’500 employees


Americas 104'400

Asia, Africa, Australia 83'600

Switzerland 46'300

Europe 120'200

11

Growing importance of direct investments abroad Development of headcount of the "top ten" companies by region


-

20'000

40'000

60'000

80'000

100'000

120'000

140'000

Switzerland Europe America Asia, Africa

1997

2011

12

High research intensityInternational comparison of research intensity (R&D / turnover) in 2004

Source: CEFIC 2006

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Switzerland Japan USA EU 15

13

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2003 2004 2005 2006 2007 2008 2009 2010 2011

abroad Switzerland

Internationally integrated researchR & D expenditures



14

Rapidly rising cost of R & DR & D cost for an new pharmaceutical molecule (NCBE)

in Mio. US $

Source: EFPIA 2012

0

200

400

600

800

1'000

1'200

1'400

1975 1987 2001 2006

15

100%%12%%

costs

chances of success

SPoC*selection

preclinical clinical

phase I II III IV

research development marketscreening

10’000 - >100’000

substances

67%%

11

ca. 1/3 ca. 2/3

authorizationintroduction

6-8 1.5

2 - 4 years 4 - 7 years

* * SPoCSPoC = Selection Proof of Concept= Selection Proof of Concept

end patent protectionstart patent protection

> 1 bn USD

20 years

Patent protection

The market introduction of a pharmaceutical takes time and money

Source: Novartis, scienceindustries 2007

16

R&D expenditures in SwitzerlandPrivate research expenditures

Total 2008: 12.0 bn CHF (intramuros)

Source: economiesuisse, SFSO 2010

Engineering, metals

1'610 Mio. CHF

Information & communication1'552 Mio. CHF

Chemicals & pharmaceuticals 5'271 Mio. CHF

Food 548 Mio. CHF

Research labs 1'129 Mio. CHF

Others 1'868 Mio. CHF

17

Employees in R&D in SwitzerlandResearch staff in the industry

Total 2008: 39’830 employees

Source: economiesuisse, SFSO 2010

Information & communication

7'534

Research labs 3'737

Chemicals & pharmaceuticals

11'633

Food 1'612

Others 7'084

Machinery, metals 8'230

18

Exports are financing R&D in SwitzerlandFinancing deficit of the "top ten" Swiss companies (2011)

in billion CHF


-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Sales R&D expenses

19

Strong dependency on exports

Total exports and domestic sales 2011: 78.5 bn CHF

Source: SCA, scienceindustries 2012

Other regions2.8 bn CHF

Latin America3.1 bn CHF

Domestic Sales3.9 bn CHF

North America10.9 bn CHF

Asia11.8 bn CHF

Rest of Europe3.3 bn CHF

EU42.7 bn CHF

20

Others34.9 bn CHF

Food, beverages,

tobacco7.4 bn CHFMetals &

machinery68.6 bn CHF

Textiles & clothing

3.2 bn CHF Watches19.3 bn CHF

Chemicals & pharmaceutic

als74.6 bn CHF

Important export industryTotal Swiss exports


Source: SCA 2012

21

Export Growth in % 1998 - 2010% numbers in brackets: share of chemicals & pharmaceuticals exports 2009

Dyes & PigmentsCrop Protection

Pharmaceuticals, Vitamines, DiagnosticaChemicals & Pharmaceuticals

Total Swiss ExportsSource: scienceindustries 2012

- 100

- 50

0

50

100

150

200

250

- 100

0

100

200

300

400

500

- 100

- 500

50100

150

- 150

- 100

- 50

0

50

100

150

200

250

300

350

- 100- 50

050

100

150200

250300

- 200

- 100

0

100

200

300

(61.6 %)

(15.8 %)

(2.1 %)

(4.2 %)

(14.7 %)

(1.7 %)

22

Growing importance of exportsShare of chemicals and pharmaceuticals in total Swiss exports

%


-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

1980 1990 2000 2002 2004 2006 2008 2010 2011

23

Significant trade surplusInternational comparison of the export surplus 2010

in billion EUR

Source: VCI 2012, UN Population Statistic 2012

per capita in EUR

-1'000 0 1'000 2'000 3'000 4'000

Italy

SpainUnited States of America

J apan

United KingdomFrance

Germany

NetherlandsBelgium

Switzerland

-15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0

Italy

Spain

United States of America

J apan

United Kingdom

France

Germany

Netherlands

Belgium

Switzerland

24

Contribution to Gross Domestic Productselected industries 1997 - 2009

%

Source: SFSO 2012

-

1.00

2.00

3.00

4.00

5.00

6.00

1998 2000 2002 2004 2006 2008 2009p

Food

Watches

Chemicals & pharmaceuticals

Metals & machinery

25

Dynamic industryDevelopment of production index (1995 - 2011)

% (1995 = 100)

Source: SFSO 2012

-50.0

-

50.0

100.0

150.0

200.0

Ch

em

icals &

ph

arm

ace

utica

ls

Me

tals

En

gin

ee

ring

Pa

pe

r an

dp

rintin

g

Ele

ctrical

en

gin

ee

ring

En

erg

y, wa

ter

Fo

od

Te

xtiles

To

tal

26

Major employer in industryEmployees by industry sector in %

Total of industry: 629’500 (2011)

Source: SFSO 2012

Others19.0 %

Engineering13.0 %

Electrical equipment

5.8 %

Data Processing Equipment &

Watches16.4 %

Metals15.2 %

Pharmaceuticals5.8 %

Mineral Oil & Chemicals

4.5 %

Food & Tabaco9.5 %

Wood, Paper & Printing10.9 %

27

Size of the Swiss companiesDistribution of employment by company size (2008)

Source: SFSO 2012

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

250 and moreemployees

50 to 249employees

10 to 49 employees 0 to 9 employees

Entreprises %

Employees %

28

Size of the Swiss companiesDistribution of employment by company size (2008)

Source: SFSO 2012

0 to 9 employees (452 enterprises)

1'774

10 to 49 employees (212

enterprises)5'810

50 to 249 employees (120

enterprises)14'145

more than 249 employees (50

enterprises)49'045

29

Responsible CareNumber of workplace accidents per mio. working hours (LTIR)


-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1993 1996 2000 2001 2002 2003 2004 2005 2006 2007

30

Responsible CareEnergy consumption in terajoules per production unit


0.0

20.0

40.0

60.0

80.0

100.0

120.0

2002 2003 2004 2005 2006 2007

31

Responsible CareCO2 emissions in tons per production unit


0

1'000

2'000

3'000

4'000

5'000

6'000

7'000

8'000

9'000

1993 1996 2000 2002 2004 2006 2007 2008 2009 2010

32

Responsible CareVOC emissions


0

500

1'000

1'500

2'000

2'500

3'000

3'500

4'000

1993 1996 2000 2002 2004 2006 2007 2008 2009 2010

33

Responsible CareWater consumption


0

50

100

150

200

250

300

350

1996 2000 2001 2002 2003 2004 2005 2006 2007

Cooling water

Process water

Documents

1 The Swiss Chemical and Pharmaceutical Industry Zurich, April 2012