This Additional/Voluntary Filing does not concern an event described in Securities and Exchange Act Rule 15c2-12, as amended. Issuer: State of Wisconsin CUSIP Numbers: 977055 Prefix (All) 977056 Prefix (All) 97705L Prefix (All) 977087 Prefix (All) 977092 Prefix (All) 977100 Prefix (All) 977109 Prefix (All) 977123 Prefix (All) Type of Information: Financial/Operating Filing Information Provided to Other Third Party Attached is a presentation that was provided at a State- sponsored investor outreach event on June 9, 2014. While the attached does not follow the format of other State of Wisconsin disclosure materials prepared by this office, this filing is being made so that all investors have the same information regarding the State of Wisconsin. The attached provides selected information regarding certain topics; it is not intended to provide comprehensive information concerning the financial condition of the State. The State of Wisconsin is providing this Additional/Voluntary Filing with the Municipal Securities Rulemaking Board through its Electronic Municipal Market Access system. This Additional/Voluntary Filing is also available on the State of Wisconsin Capital Finance Office web site at: doa.wi.gov/capitalfinance The undersigned represents that he is the Capital Finance Director, State of Wisconsin Capital Finance Office, which is the office of the State of Wisconsin responsible for providing additional/voluntary filings, annual reports, and Event Filings pursuant to the State’s Master Agreement on Continuing Disclosure (Amended and Restated December 1, 2010), and is authorized to distribute this information publicly. /S/ KEVIN D. TAYLOR Kevin D. Taylor, Capital Finance Director State of Wisconsin Capital Finance Office Wisconsin Department of Administration 101 East Wilson Street, FLR 10 Madison, WI 53703 Phone: (608) 266-2305 Fax: (608) 266-7645 E-mail: [email protected]Website: www.doa.state.wi.us/capitalfinance State of Wisconsin Additional/Voluntary Filing #2014-11 Dated June 12, 2014
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State of Wisconsin Additional/Voluntary Filing #2014-11 ...€¦ · This Additional/Voluntary Filing does not concern an event described in Securities and Exchange Act Rule 15c2-12,
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This Additional/Voluntary Filing does not concern an event described in Securities and Exchange Act Rule 15c2-12, as amended.
Type of Information: Financial/Operating Filing Information Provided to Other Third Party
Attached is a presentation that was provided at a State-sponsored investor outreach event on June 9, 2014. While the attached does not follow the format of other State of Wisconsin disclosure materials prepared by this office, this filing is being made so that all investors have the same information regarding the State of Wisconsin. The attached provides selected information regarding certain topics; it is not intended to provide comprehensive information concerning the financial condition of the State.
The State of Wisconsin is providing this Additional/Voluntary Filing with the Municipal Securities Rulemaking Board through its Electronic Municipal Market Access system. This Additional/Voluntary Filing is also available on the State of Wisconsin Capital Finance Office web site at:
doa.wi.gov/capitalfinance
The undersigned represents that he is the Capital Finance Director, State of Wisconsin Capital Finance Office, which is the office of the State of Wisconsin responsible for providing additional/voluntary filings, annual reports, and Event Filings pursuant to the State’s Master Agreement on Continuing Disclosure (Amended and Restated December 1, 2010), and is authorized to distribute this information publicly.
/S/ KEVIN D. TAYLOR Kevin D. Taylor, Capital Finance Director State of Wisconsin Capital Finance Office Wisconsin Department of Administration 101 East Wilson Street, FLR 10 Madison, WI 53703 Phone: (608) 266-2305 Fax: (608) 266-7645 E-mail: [email protected] Website: www.doa.state.wi.us/capitalfinance
State of Wisconsin Additional/Voluntary Filing #2014-11
John Koskinen, Chief Economist and Research Director
Wisconsin Department of Revenue
1
Disclaimer
This presentation is not an offer, or solicitation of an offer, for any securities issued, or to be issued, by the State of Wisconsin, and it does not provide any investment advice. Prospective investors for securities issued, or to be issued, by the State should refer to the official statement or offering memorandum authorized by the State for providing information about the specific securities and should consult with their advisors and legal counsel with questions about those securities. Information included in this presentation is based on the sources indicated. The State has not verified the accuracy of information from external sources. This presentation provides selected information regarding specific topics. The information is not intended to provide comprehensive information concerning the operations or financial condition of the State. The charts depict varying financial periods and were created for this presentation. The State’s Continuing Disclosure Annual Report, dated December 27, 2013, provides information about the operations and financial condition of the State and is available through the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system, and the State also posts “material event notices” and “informational notices” on the EMMA system. That information is also available through the Capital Finance Office’s web site at www.doa.wi.gov/capitalfinance. All statements in this presentation, other than statements of historical fact, are forward-looking statements that are based on expectations, estimates, projections, or assumptions. Forward-looking statements are made as of the date of this presentation, and the State undertakes no obligation to update such statements to reflect subsequent events or circumstances. Actual results could differ materially from the anticipated results.
Wisconsin Ranked 7th in the US for Per Capita Income Growth in 2013
Source: U.S. Department of Commerce, Bureau of Economic Analysis
…And Far Outpaced The Region
11
Per Capita Income Growth2000 to 2013
Over 60% (12)
47% to 60% (17)
42% to 47% (10)
25% to 42% (11)
Source: U.S. Department of Commerce, Bureau of Economic Analysis
Wisconsin Per Capita Income Above US Average When Adjusted for Purchasing Power
37
38
39
40
41
42
43
44
2008 2009 2010 2011 2012
Pe
r C
apit
a In
com
e in
Th
ou
san
ds
All States
Wisconsin
12
Source: US Department of Commerce, Bureau of Economic Analysis
Wisconsin Median Household Income Typically Above US Average
90%
95%
100%
105%
110%
115%
120%
125%
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Wisconsin Median Household Income % of US Average
13 Source: U.S. Department of Commerce, Bureau of the Census
Wisconsin Housing Reviving
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Jan 0
0
Jun
00
No
v 00
Ap
r 01
Sep
01
Feb
02
Jul 0
2
De
c 02
May 0
3
Oct 0
3
Mar 0
4
Au
g 04
Jan 0
5
Jun
05
No
v 05
Ap
r 06
Sep
06
Feb
07
Jul 0
7
De
c 07
May 0
8
Oct 0
8
Mar 0
9
Au
g 09
Jan 1
0
Jun
10
No
v 10
Ap
r 11
Sep
11
Feb
12
Jul 1
2
De
c 12
May 1
3
Oct 1
3
Mar 1
4Pe
rcen
t C
han
ge O
ver
Pri
or
Year
Total Residential Building Permits, 12-Month Total
14
Last Month Plotted: April 2014
Source: U.S. Department of Commerce, Bureau of the Census
Wisconsin Home Prices on the Rise
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Jan
06
Jun
06
No
v 0
6
Ap
r 0
7
Sep
07
Feb
08
Jul 0
8
Dec
08
May
09
Oct
09
Mar
10
Au
g 1
0
Jan
11
Jun
11
No
v 1
1
Ap
r 1
2
Sep
12
Feb
13
Jul 1
3
Dec
13
Perc
ent
Ch
ange
, Sam
e M
on
th P
rio
r Ye
ar
Freddie Mac Home Price Index--Wisconsin
Last Month Plotted: March 2014
15 Source: Freddie Mac, Economic and Housing Research
Leading Index Expects Continued Wisconsin Growth Map from FRB Philadelphia Press Release on their Leading Index
16 Release Date: May 29, 2014
Milwaukee ISM Manufacturing Index Surges in May
25
30
35
40
45
50
55
60
65
70
75
Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Jul 12 Jan 13 Jul 13 Jan 14
Milwaukee
U.S.
Last Month Plotted: May 2014
17 Source: Institute for Supply Management; Marquette University Center for Supply Chain Management
Marquette ISM, May 2014
Report on Manufacturing Highlights
18
What respondents are saying in May 2014:
We are being impacted by a large increase in orders.
The major issue at this time is production capacity to fill these orders
Quoting activity and dollar volume have increased in the past 4 weeks; Heavy RFQ activity
Sales rose but quoting was unexpectedly high.
North America sales orders ahead of plan
Business is already brisk
Strong automotive
Only challenge is in freight movement - delayed rail movement; sea freight held up for bundling shipments
Aluminum mill lead times extended
Point
Index Series May-14 Apr-14 Change Direction
PMI 63.49 47.26 16.20 growing
New Orders 70.75 40.38 30.40 growing
Production 69.60 38.34 31.30 growing
Employment 59.93 52.13 7.80 growing
Supplier Deliveries 62.41 59.63 2.80 slower
Inventories 54.76 45.83 8.90 growing
Customers' Inventories 45.00 42.50 2.50 declining
Prices 59.52 63.04 -3.50 growing
Backlog of Orders 59.52 54.17 5.40 growing
Index Value
MANUFACTURING AT A GLANCE: May 2014
Source: Marquette University Center for Supply Chain Management
Manufacturing Outlook
• Manufacturing is projected to do well in the US due to:
– Unit labor costs, productivity adjusted
– Energy cost advantages
– Flexible labor markets
– Export growth
– Re-shoring of operations and in-sourcing suppliers
19
Wisconsin One of the Two Most Manufacturing Intensive States
20
2012 Manufacturing EmploymentPct of Total Employment
Under 5% (8)
5% to 10% (20)
10% to 15% (20)
Over 15% (2)
Source: U.S. Bureau of Labor Statistics, Current Employment Statistics
0
20
40
60
80
100
120
140
US
Man
ufa
ctu
rin
g C
ost
s =
10
0
Natural Gas
Electricity
Labor
Other
21
Source: Boston Consulting Group, August, 2013 BCG calculations from data supplied by Bureau of Labor Statistics, US Economic Census, US Bureau of Economic Analysis and International Labor Organization. Chinese costs represent costs in Yangtze region.
Exhibit 1: Labor and Energy Costs Make the U.S. One of the
Developed World's Lowest Cost Countries
Source: Boston Consulting Group, August, 2013
Exhibit 2: The US Labor Market is the Most Attractive among the Major Developed World's Manufacturers
NAICS 3334 HVAC and commercial refrigeration equipment 2.71 NAICS 335311 Electric power and specialty transformer mfg. 3.91
NAICS 3335 Metalworking machinery manufacturing 2.27 NAICS 335312 Motor and generator manufacturing 4.59
NAICS 3336 Turbine and power transmission equipment mfg. 4.48 NAICS 335313 Switchgear and switchboard apparatus mfg. 2.90
NAICS 335314 Relay and industrial control manufacturing 6.56
Wisconsin Exports Reached Record Level in 2013
14,000
16,000
18,000
20,000
22,000
24,000Wisconsin Exports in Millions of Dollars, Twelve Month Total
27
Export manufacturing has recently become the unsung hero of the U.S. economy. As a share of the U.S. economy, in fact, exports are at their highest point in 50 years —Boston Consulting Group, August 2013
Source: US Bureau of the Census, Foreign Trade Statistics
28 Source: US Bureau of the Census, Foreign Trade Statistics
Rank HS Code Description 2012 Value 2013 Value
1 843149 PARTS AND ATTACHMENTS NESOI FOR DERRICKS ETC. 1,009 688