Slovakia, a place to do businessSlovakia, a place to do business

Slovakia – Growing Heart of EuropeSlovakia – Growing Heart of Europe

Strategic location with

great export potential

Source: SARIO, 2010

I Establishment: 1st January 1993

I Official name: Slovak Republic

I Area (km2): 49,035

I Population: 5,379,000

I Capital: Bratislava

I Member of: OECD, WTO, NATO, EU, Schengen area

I Official currency: EURO

I Official Language: Slovak

I Government: Parliamentary democracy

I Election term: 4 years

I Neighbours: Austria, Czech Republic, Hungary, Poland, Ukraine

I Time zone: GMT + 1hour

Member of the EurozoneMember of the Eurozone

€1st January 2009Slovakia joined the EURO Zone

EURO IMPLEMENTATION IMPACT: Limitation of Foreign Exchange Risk Lowering Transaction Costs Growth in Foreign Trade Increased Financial Stability

Source: SARIO, 2010

Macroeconomic OverviewMacroeconomic Overview

-6

-4

-2

0

2

4

6

8

10

12

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

European Union Slovak Republic

2008 2009 20102011 1Q

Real GDP growth 6.4% -4.7% 4% 3.5%

Labour productivity growth 3.8% 2.7% 2.2% -

HICP Inflation 4.6% 0.9% 0.7% 3.4%

Unemployment 7.7% 11.4% 14.4% 13.9%

Average monthly gross salary (€)

723 744,5 769 746

GDP growthGDP Prediction for 2011

EC 3 %

OECD 3.6%

National Bank of SR 3.4 %

IMF 4.5 %

MF SR 3.4 %

GDP Prediction for 2012

OECD 4.4 %

Source: International Monetary Fund, Eurostat,Slovak Statistics Office, Central office of Labour, social affairs and family

2010: Highest GDP Growth2010: Highest GDP Growth in the Eurozonein the Eurozone (in %) (in %)

1.72

3.6

-0,2

-4.2

-0,2

1.61.1

0.5

3.2 3.1

1.72

1.3 1.1

4.0

2.9

Source: Eurostat, February 2011

COUNTRY RATINGS(Sovereign foreign currency ratings)

SLOVAKIACZECH

REPUBLICHUNGARY POLAND BULGARIA ROMANIA

A+ positive

AA- stable

BBB- negative

A- stable

BBB stable

BB+ stable

A1 stable

A1 stable

Baa3 negative

A2 Stable

Baa3 positive

Baa3 stable

A+ stable

A+ positive

BBB-stable

A- Stable

BBB- negative

BB+ stable

A+stable

A stable

BBB+ negative

A- Stable

BBBstable

BBB-stable

A stable

A stable

BBB stable

A- stable

OECDCountry risk 0 0 0 2 4 4

Source: www.standardandpoors. com,www.moodys.com, www.fitchratings.com, www.jcr.co.jp, www.r-i.co.jp, www.oecd.org

Ratings Ratings & Outlook& Outlook

Source: World Bank Group – Doing Business Report 2011

Registering property

Paying taxes

Enforcing contracts

Protecting investors

Closing business

Construction permits

Methodology

The Doing Business projectprovides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level.

Starting a business

Trading across borders

1st 1st Rank in CEE inRank in CEE in DOING BUSINESS 201DOING BUSINESS 20111 ! !

Getting credit

Lower Labour Cost Lower Labour Cost & Higher Labour Productivity & Higher Labour Productivity

769 €Slovakia

976 €23 951 CZK

Czech Republic

806 €3 224,98 PLN

Poland

760 €202 576 HUF

Hungary

Data for 2010Source: National Statistical offices of Czech Republic, Hungary, Poland, Slovakia, Bulgaria, Romaniaexchange rate (as of 23 March 2011)

GDP (in PPS) per hour worked as compared to EU15 (100)Source: Eurostat 2011

Gross monthly salary

472 €1936 RON

Romania

328 €642 BGN

Bulgaria

0

10

20

30

40

50

60

70

80

90

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Slovakia Romania Poland

Hungary Czech Republic Bulgaria

Slovakia reaches the highest labor productivity

Simple and Fair TaxesSimple and Fair Taxes

Corporate Income TaxPersonal Income Tax

Value Added Tax - VAT

Dividend tax Inheritance and Gift Tax

Real Estate Transfer Tax

RRepatriation of profitsepatriation of profits

19% 19% Flat Tax RateFlat Tax Rate

Source: SARIO 2011

19%

0%

100%

20%

Top 5 Investors by CountryTop 5 Investors by Country((SARIOSARIO finalized projects) finalized projects)

1

3

5

2

4

Germany South Korea

Austria FranceItaly

Source: SARIO, 2010

Major German Major German Companies in SlovakiaCompanies in Slovakia

SARIO helped to realize 55 investment projects in volume of 870 mil. EUR

creating over 10 000 new jobs!

Top 5 Top 5 EExport xport DDestinationsestinations

20%

9%

6%

13%

7%

Germany Czech Republic

France PolandItaly

Source: SARIO, 2010

TOP Sectors of Slovak EconomyTOP Sectors of Slovak Economy

Automotive1st in world car

production in 2010

ElectronicsLeading Slovak Exporter –

driver of economic and technological growth

SSC/ICTSR is becoming a

hive of SSC and ICTs

Key Key SSector: Automotiveector: Automotive

Car Car PProduction in Slovakiaroduction in Slovakia

Full Capacity of 3 automobile companies1,000,000 cars/year

Source: SARIO 2011, Slovak Automotive Industry Association ZAP,VW, KIA, PSA-Peugeot

1st Place in 2010103/1000 inhabitantsin World Car Production/1000 inhabitants

Key Sector: ElectronicsKey Sector: Electronics

Source: SARIO, 2010

IAssembly of Bravia models for the European market doubled in 2008 to 4mil.

I3D TV from April 2010

I Production of LCD 10 mil pcs.

I Assembly of LCD

I Logistic center

I Europe service center

I 3D TV from February 2010

IProduction of LCD moduls

IOnly 1 in Europe

IHeadquarter for Europe

I3000 new jobs

IInvestment 191,3 mil Eur

Key Sector: ICT / SSCKey Sector: ICT / SSCss

Over 48 SSCs & CCsOver 48 SSCs & CCs……employing > 25 800employing > 25 800++ professionals professionals

I Unique clustering of shared services and IT support creates a fast-paced, enthusiastic IT environment

I Advanced wireless technologies – Flash-OFDM, WiMAX, HSDPA – covering large majority of the population

I High population density and low deployment costs making development and experiments easier than ever

Key Facts Why to Consider Key Facts Why to Consider Slovakia for R&DSlovakia for R&D

Source: Statistical Office of the Slovak Republic, 2011

I Highly qualified human resources at affordable costs

I Presence of production plant operation in high-tech and medium high-tech industries

I Presence of foreign R&D centres and technology clusters

I Broad domestic R&D and innovation network

I Established cooperation between industries and domestic universities

I R&D incentives

„The main reason why we decided to establish R&D in Slovakia is the fact that Slovakia is still considered to be a Best – Cost – Country; secondly, the region of Banska Bystrica we chose offers well educated and qualified young engineers and furthermore our plant in Zvolen is in the closet proximity to the Technical University of Zvolen“

Gerhard Baucke – Plant Manager, Continental Automotive Systems Slovakia

FDI and Technology TransferFDI and Technology Transfer

No. 5 in the extent of bringing new technology to host country1 = not at all; 7 = FDI is a key source of new technology

Source: The Global Competitiveness Report 2010-2011, World Economic Forum, 2010

Success Story: Ultra light-weight Success Story: Ultra light-weight carbon fibre carbon fibre C2i, s.r.o. Dunajská StredaC2i, s.r.o. Dunajská Streda

I Company is developing and manufacturing ultra light-weight carbon-fibre structures from premium automotive, satellite communication, defense and electric cars sector

I Complete service from design to prototype to series production of advanced composites components

I Cooperation with Airbus, Eurocopetr, FACC, Porsche, Audi, BMW, Bentley.

Source: www.c2i.sk

Material Research in Slovakia Material Research in Slovakia

Source: www.sav.sk

I The most successful applied research institute within SAS

I Aluminium foam – the unique technology used through cooperation with Austrian company Alulight International GmbH in Ferrari, Audi and many other manufacturers..

Developing Sector in Slovakia: Developing Sector in Slovakia: BiotechnologyBiotechnology

The most biotechnology organizations and research institutions are located in Bratislava region. Three universities are active in the field of biotechnology and several Slovak Academy of Sciences institutes are doing research on biotechnology.

Associations:Slovbiotech - Slovak Association for Industrial Biotechnology – www.slovbiotech.skSAFS – Slovak Association of Research Based Pharmaceutical Companies – www.safs.sk

More Success Stories: More Success Stories: Corporate RCorporate R&D&D Centres Centres

Success Stories Success Stories & FDI & FDI IInflow to Slovakia nflow to Slovakia

Country of Origin Investor

USA

US Steel, Emerson, DELL EMEA Centre of Excellence, Whirlpool, IBM International Services Centre, HP European IT Operation Centre, Johnson Controls R&D Centre, AT&T, Accenture Technology Solutions, Getrag Ford (Deutschland)

China LENOVO

Taiwan AU Optronics, ESON, Foxconn, Delta Electronics

Germany Siemens, Volkswagen, T-Systems

Japan Sony, Panasonic, Yazaki, Mitsui Sumitomo

Korea Samsung, KIA Motors, Hyundai Mobis

France PSA Peugeot Citroen, Alcatel R&D

Source: National Bank of Slovakia 2010, SARIO, 2010

Great Brands Gather in SlovakiaGreat Brands Gather in Slovakia

Source: SARIO, 2011

SARIO Who We AreSARIO Who We Are

government funded organization

under the direction of the Ministry of Economy of

the Slovak Republic

MISSION EXECUTED THROUGH 3 CORE SECTIONS

Foreign Direct Investments

Foreign Trade

Structural Funds of the EU

SARISARIO ServicesO Services

I From providing General services & information to all subjects interested

in FDI in Slovakia Tailor-made solutions for potential investors

exploring Slovakia such as Best Location for Your Investment/Expansions

I Through Assisting in applying for STATE AID for investments into:

INDUSTRY SHARED SERVICE CENTERS R&D CENTERS TOURISM

Support foreign trade via match-making & subcontracting activities

I To AFTERCARE services - for established foreign

companies

Free of Charge

Services

ISA is an association of ISA is an association of corporate entities and corporate entities and companies doing business companies doing business in Slovakiain Slovakia

Investment Support Association, ISA

ISA represents companies of all ISA represents companies of all sectors operating in Slovakia, offering a sectors operating in Slovakia, offering a wide range of professional services for wide range of professional services for investors  enabling smooth implementation ofinvestors  enabling smooth implementation of ttheir investment objectivesheir investment objectives

Golf opportunities

Beautiful Beautiful mountainsmountains

Aqua parks

Wellness

Small CountrySmall Country of of Great OpportunitiesGreat Opportunities

Source: SARIO, 2010

Spa resorts

A place where history meets future

Delicious Slovak Food

Rafting

Skiing opportunities

Visit the mysterious Visit the mysterious cavescaves

Charming Castles

Thank you for your attention!Thank you for your attention!

For more information, you can contact us at:

Slovak Investment and Trade Development Agency

Address Martincekova 17 821 01 BratislavaSlovak Republic

Tel +421 2 58260 100Email invest@sario.sk; sario@sario.sk