Austria *

*) Where your profits climb to the top

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ABA-Invest in Austria October 2014

Business Location Austria

Folie 3

Invest in an Industrialized Country

Source: OECD, Eurostat

Production sector as percentage of GDP, 2013

30,2

28,7

27,5

26,4

24,8

24,4

20,7

19,9

18,8

Germany

Austria

Japan

Switzerland

EU-28

Netherlands

UK

USA

France

Folie 4

Strong Economy in the Heart of Europe

Source: Eurostat, OECD

Area: 83,872 km²

Population: 8.4 mio.

GDP growth: 0.6% (2013)

GDP / capita: € 36,640

Unemployment rate: 4.9% (lowest in EU)

R&D quota: 2.88% of GDP

Folie 5

East-West Business Platform in the Heart of Europe

Ideal access to EU markets – bestconnections to East / South East Europe

Excellent traffic connections

More than 1,000 international companies coordinate their CEE / SEE activities

Over 300 CEE headquarters

Know-how of Austrian service providers

Folie 6

Vienna International Airport – The Leading Hub to CEE and SEE

Austrian Airlines:

23 countries

42 destinations

646 flights per week

Source: Vienna Airport

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Top Investor:Austrian FDI in CEE and SEE

Source: Austrian Ministry of Economy, respective national banks

Percentage of total investment in resprective country and Austria‘s rank as an investor, 2012

25,5

24,7

24,1

16,4

13,5

13,2

12,2

11,7

10,9

10,8

9,7

3,1

2,9

2,6

2,2

Croatia 1

Bosnia-Herz. 1

Slovenia 1

Romania 2

Serbia 1

Slovakia 2

Czech Rep. 3

Bulgaria 2

Albania 3

Macedonia 2

Hungary 4

Ukraine 5

Poland 10

Montenegro 12

Russia 12

Folie 8

Keine Einbahnstraße mehr

149

116

39

75

41

26

31

29

40

9

12

888

450

330

294

212

141

117

110

97

60

52

Ungarn

Slowakei

Russland

Tschechien

Slowenien

Rumänien

Ukraine

Bulgarien

Polen

Restl. GUS

Baltikum

2003

2013

Quelle: Compass Verlag

Anzahl der Unternehmen aus Mittel- und Osteuropa Stand per Ende 2003 bzw. September 2013

Folie 9

Optimaler Access to Growth Markets

Czech Rep.GDP 2015: +2.4%

SlovakiaGDP 2015:+3.0%

Poland GDP 2015: +3.2%

HungaryGDP 2015: +2.2%

RomaniaGDP 2015: +3.0%

BulgariaGDP 2015: +2.1%

GermanyGDP 2015: +1.8%

AustriaGDP 2015: +1.8%

SloveniaGDP 2015: +1.4%

CroatiaGDP 2015: +0.7%

Source: Eurostat, WIIW– forecast 07/2014

UkraineGDP 2015: 0%

Bosnia HerzegovinaGDP 2015: +1.5%

SerbiaGDP 2015: 0%

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Leading Headquarters Location

Source: Wolf Theiss, Headquarters Austria, September 2011

23

24

25

303

12Slovakia

Czech Rep.

Hungary

Poland

Austria

Number or regional headquarters

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Attractive for more than 300 Regional Headquarters

Worldwide HQs

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Companies Profit fromHigh Purchasing Power in Austria

129

127

124

108

106

98

83

80

68

67

264Luxembourg

Austria

Netherlands

Germany

France

UK

Italia

Slovenia

Czech Rep.

Poland

Hungary

Source: OECD, Eurostat

GDP per capita, 2013In Purchasing Power Standards, EU-27=100

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Excellent Education SecuresYour Success

Dual eduaction system Vocational schools Universities of Applied Science Multi-lingual environment Largest University of Economics and

Business in the EU

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Versatile Work Force

19 % of Austrians with migrational background

Language competencies

Intercultural skills

Vienna University of Economics and Business Administration: 25% of the 24,000 students are foreigners

Austrian management know-how is internationally sought after Time Warner, Lufthansa, Roche, Deutsche Bank

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19% „New“ Austrians

Source: Statistics Austria 2013

226,882

208,947

185,592

132,661

74,639

69,859

63,197

45,589

44,209

28,510

27,916

30,017

Germany

Serb, Mont, Kos

Turkey

Bosnia-Herz.

Romania

Croatia

Poland

Hungary

Czech Rep.

Italy

Slovakia

Russia

Foreign citizens Already naturalized

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Priority for High Tech

ICT Enivoronment and renewable energies Life Sciences Nano and micro technologies Mobility and traffic

Equally important: Arts, cultural and social sciences

Quelle: Rat für Forschung und Technologieentwicklung

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Cluster Platform AustriaWorking level between federal and regional offices

Approx. 50 cluster initiativesApprox. 3,500 companiesApprox. 420,000 staff

Topics: fields of economic and technological excellence

Important regional networks

Quelle: BMWFW

Folie 18

Austria‘s R&D Expenditures Grow above Average

Germany Austria

EU-25

Source: Eurostat

2.88*

As a percentage of GDP

1,5

1,7

1,9

2,1

2,3

2,5

2,7

2,9

1998 2000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

* Forecast 2014

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Profit from Highly Productive Employees

Source: IW Köln 2012

73

76

84

86

87

90

98

100

102

107

113

115

Japan

USA

Czech Rep.

Netherlands

Austria

Sweden

Belgium

Germany

Denmark

Italy

France

UK

Unit labor costs 2010, Germany = 100

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Motivated Staff Secure Your Success

Source: World Competitiveness Yearbook 2013

10 = Motivation of staff is high7,87

7,77

7,60

7,59

7,58

7,29

7,00

6,79

6,00

5,60

4,90

4,76

4,65

4,38

Denmark 1

Switzerland 2

Ireland 3

Austria 4

Japan 5

Germany 9

Netherlands 11

USA 16

United Kingdom 30

Czech Republic 35

France 45

Italy 46

Hungary 47

Poland 52

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Economic and Social Stability

Reliable legal system Efficient public administration High personal security Very low strike rate

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Moderate Taxation on Corporate Profits

Source: Deloitte Resources

Maximum taxation on profits 2014 in %

17

19

19

21

22

25

30

35

33,33

31,4

25

12,5Ireland

Slovenia

Czech Rep.

Hungary

UK

Slovakia

Austria

Netherlands

Germany

Italy

France

USA

Folie 23

Investor-friendly Tax System

Corporate tax rate: 25%

Modern group taxation

Tax premium for R&D: 10%

No trade tax

No net worth tax

Double taxation treaties

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Incentives support your project

Examples:

Fiscal for R&D and training of staff

Grants/credits with low interest rates for investments in production up to 25%

Grants/credits with low interest rates for R&D projects up to 50%

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Unmatched Quality of LifeMaximum = 10

Source: World Competitiveness Yearbook 2014

9,73

9,55

9,47

9,38

9,21

8,48

8,33

8,22

7,73

7,56

6,46

4,00

3,69

Switzerland 1

Austria 2

Norway 3

Germany 5

Netherlands 6

France 17

USA 19

Japan 20

UK 22

Czech Rep. 24

Italy 30

Hungary 54

Poland 56

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What ABA can do for you … Consulting services – fast, non bureaucratic and free of charge

General information on Austria as a business location

Market data

Legal and tax issues – contact network

Labour laws, labour costs

Site identification

Information about incentives and public contributions

Organisation of “fact finding” missions

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ABA – at Your Service

ABA – Invest in AustriaOpernring 31010 Vienna

E-Mail: office@aba.gv.atTel: +43 1 58858 -0

www.investinaustria.at