SLOVAKIASLOVAKIAIdeal Investment & Business Destination Ideal Investment & Business Destination

Slovakia – Growing Heart of EuropeSlovakia – Growing Heart of Europe

Strategic location with

great export potential

Source: SARIO, 2010

I Establishment: 1st January 1993I Official name: Slovak RepublicI Area (km2): 49,035I Population: 5,379,000I Capital: BratislavaI Member of: OECD, WTO, NATO,

EU, Schengen area I Official currency: EURO I Official Language: SlovakI Government: Parliamentary

democracyI Election term: 4 yearsI Neighbours: Austria, Czech

Republic, Hungary, Poland, Ukraine

I Time zone: GMT + 1hour

Macroeconomic OverviewMacroeconomic Overview

-6-4-202468

1012

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

European Union Slovak Republic

2008 2009 2010 2011

Real GDP growth 6.4% -4.7% 4% 3.3%

Labour productivity growth 3.8% 2.7% 2.2% -

HICP Inflation 4.6% 1.6% 0.7% 4.1%

Unemployment 7.7% 11.4% 14.4% 13.5%

Average monthly gross salary (€) 723 744,5 769 786

GDP growth

GDP Prediction for 2012EC 1.2%OECD 1.8%National Bank of SR 2.1%IMF 2.4%MF SR 2.5%WB 3%

GDP Prediction for 2013IMF 3,1%National Bank of SR 3.1%WB 1.5%OECD 3.6%MF SR 2.7%OECD 4.4%

Source: International Monetary Fund, Eurostat, Slovak Statistics Office, Central office of Labour, Social Affairs and Family

Slovakia: Fastest Growth in Eurozone, 2012Slovakia: Fastest Growth in Eurozone, 2012FFFF

Source: European Commision, February 2012

-4,40-3,30

-1,30-1,00

-0,90-0,50

-0,10-0,10

0,400,500,600,700,70

0,801,00

1,201,20

-5,00 -4,00 -3,00 -2,00 -1,00 0,00 1,00 2,00

GreecePortugal

I talySpain

NetherlandsCyprus

BelgiumSlovenia

FranceIreland

GermanyLuxemburg

AustriaFinland

MaltaEstonia

Slovakia

Source: World Bank Group – Doing Business Report 2012

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 201 DOING BUSINESS 20122 ! !

Getting credit

Why Invest in Slovakia: Top ReasonsWhy Invest in Slovakia: Top Reasons

Strategic Position with Export Potential

Zdroj: World Resources Institute

London

Paris

Rome

Istanbul

Berlin

Kiev

Moscow

300 million of consumers in

radius of 1,000 km

600 million of consumers in radius

of 2,000 km

Eurozone Member – One of the few from CEE

€ Eurosince 1st January 2009

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

Source: SARIO, 2012

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 2012

19%

0%

100%

20%

Simple and Fair TaxesSimple and Fair Taxes

Low Labour Cost & High Labour Productivity Low Labour Cost & High Labour Productivity

989 €24 319CZKCzech Republic825 €3 399,52 PLNPoland

762 €213 054 HUFHungary

Data for 2011Source: National Statistical offices of Czech republic, Hungary, Poland, Slovakia, Bulgaria, Romaniaexchange rate (as of 3 April 2012)

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

Gross monthly salary

472 €1 936 RONRomania328 €642 BGNBulgaria

Slovakia reaches the highest labor productivity

786 €Slovakia

Regional Differences in WagesRegional Differences in Wages

Source: Central Office of Labour, Social Affairs and Family, 2012

1 001 €

735 €

687 €

662 €

652 €

707 € 608 €

726 €

Average gross monthly wage level in economy in Slovakia in 2011 reached 786 EUR(2,2% increase pa)

Average unemployment level in Slovakia in 2011 reached 13.5 %

Education in SlovakiaEducation in Slovakia

6,75%

40,39%

37,17%

15,68%

No educationElementary schoolSecondary General SchoolSecondary Vocational SchoolUniversity education

Number of Universities: 35Number of Students in 11/12: 204 158Graduates in 2011: 71 092

Source: The Institute for the Information and the Prognosis in the Education, 2012

In TOP 500 of world universities ranking

High-Tech Services: Knowledge Intensive

Creative, movie, TV industry and ICT

Scientific research and development (biotech, medical, engineering etc.)

High-Technology: Manufacturing

Computer, electronic and

optical products

Pharmacy Air and spacecraft industry

Source: SARIO, 2012

Dominating Sectors of Slovak Republic

Armament industry

Chemistry Electrical equipment

Machinery equipment

Automotive industry,

supplier sector

Medium-High Technology: Manufacturing

Other transport

equipment

Medical and dental

instruments

Source: SARIO, 2012

Dominating Sectors of Slovak Republic

SlovakiaSlovakia´s´s Success Stories Success Stories

Source: SARIO, 2012

Success Stories & FDI Success Stories & 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), Honeywell, Amazon

China Lenovo

Taiwan AU Optronics, ESON, Foxconn, Delta Electronics

Germany Siemens, Volkswagen, T-Systems, Continental

Japan Sony, Panasonic, Yazaki, Mitsui Sumitomo

Korea Samsung, KIA Motors, Hyundai Mobis

France PSA Peugeot Citroen, Alcatel R&D

Source: NBS, SARIO, 2012

Bilateral trade

Development of bilateral trade between Slovakia and Greece (in thousands €)

I 2008 - the peak of the trade and our exportsI 2009- slight decrease due to ongoing global financial and

economic crisisI 2010 – annual decrease of 21% I 2011, 2012 - downward trend in trade, mainly due to the decrease

of our exports, but still highly positive trade balance for Slovakia (our exports highly exceed imports) .

2007 2008 2009 2010 2011 1-7/2012 Export 262 451 302 137 270 015 177 529 148 744 89 027 Import 86 858 84 577 105 807 91 585 88 525 56 325 Turnover 349 309 386 714 375 822 269 114 237 269 145 352Balance 175 593 217 560 164 209 85 944 60249 32 702

Main trade commoditiesI Slovak export to GRI - the highest export turnovers were in TV sets, cars I - followed by plastics, rubber and articles thereof; paper,

paperboard and articles of paper pulp; metal and metal products (including iron, steel and copper)

I - increase in export of other commodities: wood, tires, telecommunication equipment, audio equipment, cosmetics, furniture, printing materials, artificial fertilizers, pumps, metal pipes, office equipment, musical instruments, plastic products, household appliances, commercial glass, electrical machinery, yarn and so on.

I - more than 70 commodities with volume of over 100 thousand €.I Greek import to SRI - aluminum ores and concentrates have long been the most

important commodity in our import from Greece (35% of total imports)I - Second place - market products, especially cutlery and knives. I - other commodities: pharmaceuticals, textile products, fruits, nuts,

vegetables, alcohol, cosmetics, polymers, etc.I - Overall, more than 30 items with the volume over 100 thousand

Euros.

Insight into Investment Incentives

Eligible ProjectsEligible Projects

Industry

Shared Service Centers

R&D Centers

Tourism

ELIGIBLE ARE COSTS OF:

LAND BUILDINGS NEW MACHINERY & TECHNOLOGY EQUIPMENT LICENSES & PATENT RIGHTS

OR

WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS

State aid in regions:

Bratislava: 0%Western Slovakia: 40%Central Slovakia: 50%Eastern Slovakia: 50%

Eligible CostsEligible Costs

SARISARIO ServicesO Services

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 Best Location for Your Expansions

Through Assistence in STATE AID application process for investments

into: INDUSTRY SHARED SERVICE CENTERS R&D CENTERS TOURISM

Support foreign trade via match-making & subcontracting

To AFTERCARE services - for established foreign companies

Contact: www.sario.sk

GovernmentalAgency:Services

Free of Charge

Thank you for your attentionThank you for your attention!!

Roman HlobeňDeputy Head of Mission

Embassy of the Slovak RepublicAddress: 4,G. Seferi Str., Paleo Psychico, 154 52 Athens tel. 210 6771 980 fax. 210 6776 761

emb.athens@mzv.sk