New Zealand Overview Nick Arathimos Investment New Zealand

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New Zealand OverviewNick ArathimosInvestment
New Zealand

• Investment New Zealand

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What is Investment New Zealand?

• New Zealands investment promotion agency
• A division of Trade NZ
• Facilitates foreign direct investment (FDI)
• We give you the inside running

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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 HK3.40

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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

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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

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Percentage Contribution to GDP by Economic
Activity

• Manufacturing 18.2
• Tourism 15.9
• Finance 14.7
• Transport 8.4
• Mining 8
• Software 7.2
• Agriculture and Fishing 5.8

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GDP Growth
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Whats 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

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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?

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Where Do The s Come From?

• Visible Exports
• Dairy, Meat, Wood and Wool - 65
• Added Value Manufacturing - 25
• Invisible Exports
• Tourism, Software and Consultancy

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Big Four Global Markets

• Australia
• USA
• UK
• Japan

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Taxation in NZ

• Main taxes are Income Tax and Goods and Services
  Tax (GST)
• Personal Tax Rates
• 15 on income NZ0- 9,500
• 21 on NZ 9500- 38,000
• 33 on income NZ 38,000- 60,000
• 39 above NZ60,000
• GST applies at a uniform rate of 12.5
• Company Tax 33

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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

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Software Services and Exports
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New Zealand - Ideal Test Market

• Cost-effective testing
• Scaleable demographics
• Sophisticated market of early adopters
• A season ahead of the Northern Hemisphere

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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

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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

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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

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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
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Investment Overview

• New Zealand welcomes investment from
  international companies
• Seeks to build on and complement the relationship
  with its trading partners

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Ease of Starting a New Business
Source The Economist October 1999
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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

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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)

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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