1. New Zealand Overview Nick Arathimos Investment New Zealand Investment New Zealand

2. What is Investment New Zealand? New Zealand’s investment promotion agency A division of Trade NZ Facilitates foreign direct investment (FDI) “We give you the inside running”

3. New Zealand - Key Facts Population - 3.8 million Land area - 271,000 sq. km (about the same size as UK or Japan) Currency 1 NZ$ = 43 cents USD 1 NZ$ = HK$3.40

4. New Zealand Economy Deregulated Prices are market driven rather than determined by the government Free movement of money in & out of NZ Deregulated employment market More than farming

5. Business in NZ Transparency in business processes Efficient, open & honest bureaucracy Just do it attitude Simple low tax structure Economic growth combined with low inflation Democratic

6. Percentage Contribution to GDP by Economic Activity Manufacturing18.2% Tourism15.9% Finance14.7% Transport8.4% Mining8% Software7.2% Agriculture and Fishing5.8%

7. GDP Growth

8. What’s NZ like for Business ? 8 Universities, 20 + Polytechnics 8 Crown Research Institutes Professional and skilled workers Competitive costs – c30% lower than Australia Robust, modern infrastructure

9. EXPORT = LIFE Exports USD 10 billion = 30 % g.d.p Free Market with Australia = 23 million Singapore on board Hong Kong under negotiation USA, Chile, ASEAN?

10. Where Do The $’s Come From? Visible Exports Dairy, Meat, Wood and Wool - 65% Added Value Manufacturing - 25% Invisible Exports Tourism, Software and Consultancy

11. Big Four Global Markets Australia USA UK Japan

12. Taxation in NZ Main taxes are Income Tax and Goods and Services Tax (GST) Personal Tax Rates: 15% on income NZ$0- $9,500 21% on NZ $9500- $38,000 33% on income NZ$ 38,000- $60,000 39% above NZ$60,000 GST applies at a uniform rate of 12.5% Company Tax 33%

13. IT Industry in NZ NZ IT Valued at $9.5 billion Approximately 50,000 employed in IT 4,500 IT students in NZ Universities 1,500 graduates annually 40% increase in graduates since 1998 Trend encouraged by Government

14. Software Services and Exports

15. New Zealand - Ideal Test Market Cost-effective testing Scaleable demographics Sophisticated market of early adopters A season ahead of the Northern Hemisphere

16. Fertile Biotechnology Environment Relatively disease free animal health status New Zealand - the premier location for producing human pharmaceuticals through farm animals High quality and cost competitive Government and university research facilities A science community with strong international linkages Research focuses on both agbiotech and human health

17. Fertile Biotechnology Environment Biological sciences are a strength of New Zealand tertiary education sector New Zealand produces more graduates in biology than any other science discipline New Zealand has a deep resource of people with intellectual capital in the biological sciences

18. Back Office Processing (SSC) New Zealand represents a cost effective location compared to other Western countries for both labour and infrastructure costs New Zealand has international and national telecommunications infrastructure to undertake cross border back office processing operations New Zealand employees are customer service centric New Zealand provides a 24x7 work force

19. Back Office Processing (SSC) Total annual operating costs for a 100 person, transaction processing back office facility, percentage cost saving in Auckland compared to Australian and US locations

20. Investment Overview New Zealand welcomes investment from international companies Seeks to build on and complement the relationship with it’s trading partners

21. Ease of Starting a New Business 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Italy Japan Germany France Denmark Sweden Australia Ireland Netherlands Britain Finland Canada New Zealand United States Source: The Economist October 1999

22. Venture Capital High business birth rate - 22.7 % 96 % of companies employ less than 20 people Deal flow = 400 for first 5 months 2001 Less than 5 % invested

23. Venture Capital Returns = 25 - 40% p.a. No capital gains tax NZD 500 m – 1 b invested + same available = 0.8 % of private capital investment (US 2.4%)

24. Opportunities Funding and management collaborations Client / investee company synergies, e.g: Wireless communications and the Internet 3D imaging and computer animation Genetics and biopharmaceuticals High tech niche manufacturing