Invest in Israel                   April 2013
IsraelArea:                                 21,000 sqkmPopulation:                             ~ 8 millionGDP per capita 2...
Israel – Geography• Similar size to Wales• Main cities : Tel Aviv, Jerusalem, Haifa, Be’er Sheva
Strong Economic Performance
Israel - Main Economic Indicators                                                    2007    2008    2009    2010    2011 ...
GDP Growth Rate 2009-2012      20%                14.7%      15%                           10.7%      10%                 ...
Investments’ Growth Rate 2009-2012        40%                  31.4%        30%                              18.7%        ...
Exports’ Growth Rate 2009-2012       10%                 7.7%        8%                   6.9%        6%                  ...
Changes in GDP to Debt Ratio 2009-2012        60%        50%        40%        30%        20%        10%          0%      ...
S&P Credit Rating (2009 – 2012)                                   Downgrading by one notch                                ...
The Unemployment Rate 2008 - 2012   12%                                                                                   ...
Innovation Ecosystem
Innovation RankingSource: Economist Intelligence Unit
Israel’s Competitive Edge – IMD World Report     Country Rank                                    1st        2nd           ...
Innovation in CleantechSource: Cleantech Group 100 Publication, Oct. 2012
Venture Capital Raised by Israeli High-Tech Companies                   2.5                   2.0                   1.5   ...
Israeli High-Tech : Capital Received vs. Capital Raised                    12                                             ...
Multinationals Activity in Israel - Highlights            First R&D facility outside the U.S.            R&D Centres is on...
Multinationals R&D Centres in IsraelHaifa Region                                  Northern Region                         ...
Government SupportIsrael encourages foreign investment by offering a wide range of incentivesand benefits to investors.•  ...
Success Stories
Iscar“Iscar is an amazing company run by amazing people. I dont getmany opportunities to invest in companies like that."Wa...
TevaThe largest generic pharmaceutical manufacturer in the world• Revenues increased from $30 million in 1976 to $20 billi...
NetafimIntroduced a new concept of low-volume irrigation by launching thedrip irrigation revolution• World leader in smart...
M-SystemsInvented the USB flash drive• 1989 – Founded.• 1995 – Selling the DiskOnChip, the first flash drive.• 1999 – Sell...
Given ImagingPioneered the capsule endoscopy technology• Only three years after its founding, in 2001, Given Imaging made ...
Check PointGlobal leader in securing the Internet• Initial funding - $400K (1993).• Pioneered the I.T. security industry w...
More Success Stories  2nd largest company in the world in the field of geothermal energy  A revolutionary instant messagin...
Hi-Tech Companies acquired in 2011-2012 (Partial List)Acquirer       Amount ($) Israeli Company                 100M     F...
Transactions of Global PE Funds in Israel                                                                         Company ...
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Invest in Israel

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Invest in Israel

  1. 1. Invest in Israel April 2013
  2. 2. IsraelArea: 21,000 sqkmPopulation: ~ 8 millionGDP per capita 2012 (PPP adjusted): $32,200
  3. 3. Israel – Geography• Similar size to Wales• Main cities : Tel Aviv, Jerusalem, Haifa, Be’er Sheva
  4. 4. Strong Economic Performance
  5. 5. Israel - Main Economic Indicators 2007 2008 2009 2010 2011 2012 GDP Real Growth Rate 5.5% 4.0% 0.8% 4.8% 4.6% 3.2% GDP per Capita Growth Rate 3.5% 2.1% -0.9% 2.9% 2.7% 1.3% (Current prices) Unemployment Rate 7.3% 7.7% 9.5% 8.4% 7.1% 6.9% Inflations Rate 0.5% 4.6% 3.3% 2.7% 3.5% 1.7% Public Debt (% of DGP) 77.8% 77.1% 79.3% 76.3% 74.0% 74.0%* (*) First three quarters at annual rate • Mild response to the financial crisis and quick recovery afterwards • Low inflation and unemployment rates • Decreasing public debt relative to GDPSource: Israel Ministry of Finance
  6. 6. GDP Growth Rate 2009-2012 20% 14.7% 15% 10.7% 10% 4.8% 5% 3.2% 2.7% 0.3% 0% -0.5% -1.5% -1.6% -5% -5.5% -10% Israel Australia Canada United Germany France Japan Euro Area United Italy States KingdomThe cumulative GDP growth rate, in real termsSource: OECD
  7. 7. Investments’ Growth Rate 2009-2012 40% 31.4% 30% 18.7% 20% 10% 7.2% 0% -2.0% -10% -6.0% -6.2% -7.1% -7.7% -11.2% -20% -18.5% -30% Israel Australia Canada Germany France OECD Japan United United Italy Average States KingdomThe cumulative fixed capital formation growth rate, in real termsSource: OECD
  8. 8. Exports’ Growth Rate 2009-2012 10% 7.7% 8% 6.9% 6% 5.0% 4.3% 4% 3.5% 2.1% 2% 1.4% 0% -2% -2.5% -4% -4.1% -6% -5.9% -8% United Germany Israel Australia Euro Area United France Italy Canada Japan States KingdomThe cumulative export of goods & services growth rate, in real termsSource: OECD
  9. 9. Changes in GDP to Debt Ratio 2009-2012 60% 50% 40% 30% 20% 10% 0% -10% United Japan United OECD France Germany Canada Australia Italy Israel Kingdom States AveragePercentage points change in the debt to GDP ratioSource: OECD
  10. 10. S&P Credit Rating (2009 – 2012) Downgrading by one notch Upgrading by one notch Negative outlook Source: Israeli Ministry of Finance February 2013
  11. 11. The Unemployment Rate 2008 - 2012 12% 11.7% 11% 10.0% 10.1% 10% 9.5% 9.4% 9% 8.4% 8% 7.7% 7.5% 7.1% 6.9% 7% 6% 5% 4% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Israel Euro AreaSource: Eurostat, OECD, The Central Bureau of Statistics (Israel)
  12. 12. Innovation Ecosystem
  13. 13. Innovation RankingSource: Economist Intelligence Unit
  14. 14. Israel’s Competitive Edge – IMD World Report Country Rank 1st 2nd 3rd 4th Total Expenditure on R&D Israel Finland Sweden Japan (% GDP) Venture Capital U.S. Israel Hong Kong Taiwan Scientific Research Israel Switzerland U.S. Germany Entrepreneurship Israel Malaysia Colombia Taiwan Flexibility and Adaptability Israel Hong Kong Australia Brazil Information Technology Skills Israel Iceland Denmark SwedenSource: IMD World Competitiveness Yearbook - 2011
  15. 15. Innovation in CleantechSource: Cleantech Group 100 Publication, Oct. 2012
  16. 16. Venture Capital Raised by Israeli High-Tech Companies 2.5 2.0 1.5 $ Billion 1.0 0.5 0.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Israeli VC Foreign VCSource: IVC-ONLINE
  17. 17. Israeli High-Tech : Capital Received vs. Capital Raised 12 10.8 10 8 $ Billion 6 5.2 4.1 3.8 4 3 2.5 2.6 2.2 2.3 2.1 2.1 2 1.6 1.8 1.5 1.3 1.3 1.0 1.1 1.0 1.1 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Capital Received (M&A and IPOs) Capital RaisedSource: IVC-ONLINE
  18. 18. Multinationals Activity in Israel - Highlights First R&D facility outside the U.S. R&D Centres is one of its 3 Strategic Centres Operated for 62 years and now has 9 R&D facilities Acquired companies for more than $1 billion Recently opened 2 R&D centres 7,000 employees in R&D and manufacturing facilities 10 companies acquired in the past 12 years
  19. 19. Multinationals R&D Centres in IsraelHaifa Region Northern Region Jerusalem Region Tel Aviv Region Southern Region
  20. 20. Government SupportIsrael encourages foreign investment by offering a wide range of incentivesand benefits to investors.• The Law for the Encouragement of Capital Investments  Competitive grant programme  Corporate Tax incentives• Tax exemption for venture capital investment• The Law for the Encouragement of Industrial R&D• Promoting R&D Centres in the periphery• Israel NewTech – Supporting Israel’s Cleantech Industry• Special Programme - R&D centres for the financial sector
  21. 21. Success Stories
  22. 22. Iscar“Iscar is an amazing company run by amazing people. I dont getmany opportunities to invest in companies like that."Warren Buffet, CEO of Berkshire Hathaway• ISCAR has catapulted from a small niche supplier to one of the worlds leading manufacturers of metalworking tools.• In 2006, Berkshire Hathaway acquired 80% of Iscar for $4 billion, in its first investment outside of the U.S.• In 2008, Warren Buffett called the acquisition of Iscar a "dream deal" that surpassed all his expectations.• In 2011, Iscar enjoyed a 41% increase in sales from the previous year.
  23. 23. TevaThe largest generic pharmaceutical manufacturer in the world• Revenues increased from $30 million in 1976 to $20 billion in 2012 – a 20% annual growth rate.• Developed Copaxone, the leading drug for treating multiple sclerosis, which generates annual revenues of $4 billion.• Employs 46,000 people worldwide and supplies one of every six prescriptions issued in the US.• Headquarters in Israel.• Market cap: $35 billion.
  24. 24. NetafimIntroduced a new concept of low-volume irrigation by launching thedrip irrigation revolution• World leader in smart irrigation solutions (30% of the market)• Inventor of the “Drip irrigation”, which enabled efficient irrigation with small amounts of water.• Transformed the manner in which farmers deliver water to crops.• Has delivered strong double digit revenue growth for the past 10 years.• Permira acquired control for a value of $870 million (2011).
  25. 25. M-SystemsInvented the USB flash drive• 1989 – Founded.• 1995 – Selling the DiskOnChip, the first flash drive.• 1999 – Selling the DiskOnKey, the first USB flash drive.• Also created the patented TrueFFS which presented the flash memory as a disk drive to the computer.• 2006 - Sold to SanDisk for $1.55 billion.
  26. 26. Given ImagingPioneered the capsule endoscopy technology• Only three years after its founding, in 2001, Given Imaging made worldwide headlines when it introduced the revolutionary FDA approved PillCam capsule endoscopy.• The PillCam, is the first ingestible non-invasive disposable camera the size of a capsule that diagnosis gastrointestinal track diseases.• In the same year (2001) was listed on NASDAQ.• Received the Wall Street Journal Technology Innovation Award (2004).• Selected as World Economic Forum Technology Pioneer (2007).
  27. 27. Check PointGlobal leader in securing the Internet• Initial funding - $400K (1993).• Pioneered the I.T. security industry with FireWall-1 and its patented Stateful Inspection technology, which is still the foundation for most network security.• All Fortune 100 companies use Check Point security solutions.• Net income 2012: $620 million.• Market cap - $11 billion.
  28. 28. More Success Stories 2nd largest company in the world in the field of geothermal energy A revolutionary instant messaging application acquired by AOL Manufacturer of plastic consumer products ($1 billion annual sales) Best Overall Mobile App - Mobile World Congress 2013 Invented and patented the first Voice over IP World leader in off-patent crop protection, acquired by ChemChina
  29. 29. Hi-Tech Companies acquired in 2011-2012 (Partial List)Acquirer Amount ($) Israeli Company 100M Face.com – Facial recognition technology 70M Snaptu – Free mobile application platfor 300M Telmap – Navigation and location based services 100M Videosurf – Video search engine 200M Broadlight – Fabless semiconductor company 475M Intucell – Self-optimizing network software 300M Anobit – Flash memory controllers
  30. 30. Transactions of Global PE Funds in Israel Company Fund Year Acquired Company Value ($) 2005 Bezeq (telecom provider) 923 million (*) 2008 Tnuva (dairy products manufacturer) 1.025 billion 2008 25% of Strauss Coffee 1 billion 2011 Netafim (smart irrigation solutions) 870 million 2012 Paradigm (oil exploration software) 1 billion(*) In 2010, Bezeq was sold for $1.75 billion.

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