we speak fluent business · 4 performance in fdi source: invest lithuania, 2018 39% 34% 13% 4% 3%...

We speakfluent business

MAY | 2019

2

Population2 2.8 million

Labour Pool2 1.5 million

Unemployment2 6.1%

Facts & figures

Source 1: Eurostat, 2018

Source 2: Statistics Lithuania, 2018

Source 3: European Economic Forecast, Autumn 2018

in EU for GDP per capita growth

since 200011st

GDP growth:

− in 20172: 4.1%

− in 20183: 3.4%

− in 20193: 2.8%

3

Globally ranked player

Source 1: World Bank, 2018Source 2: World Economic Forum, 2018Source 3: Fraser Institute, 2018

Source 4: Yale University, 2018Source 5: Transparency International, 2018Source 6: PwC, 2019

Ease of Doing

Business1

out of 190

countries

evaluated14Global Competitiveness

Index2

out of 140

countries

evaluated40

Environmental

Performance Index4

out of 180

countries

evaluated29Corruption

Perception Index5

out of 180

countries

evaluated38Paying Taxes

Ranking6

out of 189

countries

evaluated18

Economic Freedom

of the World3

out of 162

countries

evaluated13

4

Performance in FDI

Source: Invest Lithuania, 2018

39%

34%

13%

4%

3%

7%

Shared Service Centre

Manufacturing

IT Design, Development &Testing

Business Services

Sales, Marketing & Support

Other

Top business activities according to jobs planned | 2010-2018

Top investing countries by share of total

projects | 2010-2018

15%United

States

8% Germany

9% Denmark

8% Norway

5% Finland

12% UK

8% Sweden

5

Young & talented labour1

World-class infrastructure2

Great quality to cost ratio 3

Business friendly environment4

Perfect living pace5

What gives Lithuania the edge?

6Young & talented labour

Young highly qualified talent

Source 1: Eurostat, 2018 (age group 25-34)

Source 2: Invest Lithuania’s estimation based on Population Census (2011)

Source 3: Europeans and their languages, 2012

Source 4: Ministry of Education, Science and Sports, 2019

of population with higher

education156%

85% proficiency in English

among young professionals2

52%speak at least two

foreign languages3

26%

15%

14%

13%

9%

8%

4%

4%

6%

Business, administration and law

Health and welfare

Engineering, manufacturing andconstruction

Social sciences, journalism andinformation

Arts and humanities

Information and communicationtechnologies

Education

Natural sciences, mathematics andstatistics

Other programmes

Students by study fields in higher education institutions | 2018-20194

World-class infrastructure 7

Digital infrastructure: fast, reliable and affordable

Source 1: IMD World Competitiveness Yearbook, 2018

Source 2: OpenSignal, 2018

Source 3: European Commission Digital Agenda Scoreboard, 2015

EU and global leader in connectivity and communication technology

globally in digital/ technological

skills availability11st

3rdin the EU for mobile

4G coverage2

for fixed

broadband price31st in EU

2,73%

2,19%

1,85%1,57%

1,25% 1,12% 1,06%0,87%

0,71%

% of disposable income | Advertised download speed above 12 and

up to 30 Mbps | 2015

World-class infrastructure 8

Logistics: fast connection infrastructure

Source 1: World Economic Forum, Global Competitiveness Report, 2018

Source 2: www.portofklaipeda.lt

Source 3: Girteka Logistics, 2014. Estimates based on two-driver shared shift model

Road & Rail

Air

Sea

− 1st in CEE for quality of roads1

− Rail cargo services direct to Russia, Belarus, Latvia, Poland, Germany, Ukraine and Asia (incl. China)

− 3 International Airports, access to major European cities within 2-3 hours flight

− Klaipėda State ice-free Seaport

− 14.5 m deep port, handling up to 65 million tons of cargo annually, the largest port in the Baltic States2

3

9Great quality to cost ratio

Cost & quality combined

Source 1: Eurostat, 2017 (wages in industry, construction and services, except public administration, defense, compulsory social security)

Source 2: European Office Market. Edition 2017, BNP Paribas Real Estate

50,0

36,6

27,4

10,1 9,3 9,05,4

Average labour cost hourly wages (Eur), 20181

Ranked alongside Sweden and Finland for its business environment, Lithuania can also guarantee a fantastic cost to quality ratio.

One of the lowest office rental prices in the region2

10Business friendly environment

Business friendly environment

7 Free Economic Zones (FEZ):

− 0% corporate tax for the first 10 years*

− 50% discount on corporate tax over the next 6 years*

− 0% tax on dividends*

− 0% tax on real estate*

Industrial Parks (IP)

6-12 months delivery of build-to-suit manufacturing facilities

* Conditions apply

corporate profit tax0-15%

21% VAT

0-15%

20%

19.5%

1.79%

dividends

personal income tax

social security tax paid by employee

social security tax paid by employer

11Perfect living pace

Perfect living pace

Source 1: Expert Market, 2016

Source 2: European Commission, 2016

Source 3: Mercer's 2018 Cost of Living Ranking

Source 4: Ooma tests, 2017

− According to the Mercer Cost of Living Index 2017, Vilnius is one of the four least expensive EU capitals to live in for expatriates3

Cost of living

Lifestyle− Vilnius – among TOP 10 cities globally with the

best work life balance1

− 98% of Vilnius inhabitants are satisfied with living here (highest percentage among EU capitals)2

Keeping you

connected with

the fastest

public Wi-Fi

globally4

12Sectors

Global Business ServicesManufacturingTechnology

LITHUANIA – YOUR TOP OPTION FOR:

13Sectors

#1 Global Business Services

Source 1: Invest Lithuania, 2019

Source 2: Lithuania’s business services report, 2019, Invest Lithuania

Source 3: Central and Eastern Europe Shared Services and Outsourcing Awards, 2019

Source 4: cvmarket.lt, 2017

professionals employed

in the sector1~17,000

35 the largest number of languages

used in a single center2

yearly growth of

SSC sector213%

Top 3 most desired

employers are SSCs4

The best

destination

for shared

services and

outsourcing

in CEE3

14Sectors

Arminta Saladžienė, Head of Nasdaq Baltic

For companies like us that develop advanced solutions, Lithuania provides the perfect mix of exceptional infrastructure and exceptional talent.

Nasdaq Technology and Business Support Competence Center

FTE 340

Languages English, French, German, Danish, Russian, Swedish

Established 2015, Vilnius

Functions Development and QA Verification of Trading, Clearing,

CSD and Governance IT Platforms

System Operations, IT Operations Analytics Solutions

Accounts Payable and Receivable, Payroll, Financial

Control, Business Control, etc.

15Sectors

Functions: F&A, IT, HR, Analytics

Languages: English

Headcount: 790 Established: 2014, Kaunas

Functions: F&A, HR, Customer operations, IT

Languages: English, French, German, Finnish, Danish, Swedish

Headcount: 340 Established: 2015, Vilnius

Functions: F&A, IT, Legal, Customer operations, Analytics, RPA

Languages: English, Danish, Norwegian, Swedish, Finnish


Functions: F&A, IT

Languages: English, Swedish, Danish, Norwegian


#1 Global Business Services Presence in Lithuania

Global Operations Center

BPO

Excellence CenterShared Service Center

Functions: F&A, HR, IT, Customer operations, Procurement, other

Languages: 35 languages


Shared Service Center

Technology & HR Centre

Functions: IT, HR, Customer operations

Languages: English, French, German, Italian, Spanish


16Sectors

#2 Manufacturing

Source 1: Eurostat, 2018

Source 2: Statistics Lithuania, 2017

of Lithuania’s GDP is generated

by its manufacturing sector119%

73%of all manufacturing production

is exported2

DE, PL, US,

LV, SE

main export

destinations1

17Sectors

Raimundas Petrauskas, Managing Director at Schmitz Cargobull Baltic

Our efficiency rates in Lithuania are outstanding. The local team of innovative engineers and the flexible production line we’ve put in place have allowed us to exceed the demands of the constantly shifting market needs.

Schmitz Cargobull Baltic

FTE 570

Established 1999, Panevėžys

Products Thermo-insulating panels

Isothermal transportation equipment: insulated trucks,

trailers and semi-trailers

18Sectors

#2 International Manufacturing Presence in Lithuania

Manufacturing plant / R&D Manufacturing plant

Manufacturing plant Manufacturing plant

Manufacturing plantManufacturing plant

Products: Iso-thermal trucks, trailers and semi-trailers

Headcount: 570

Established: 1999, Panevėžys

Products: Respiratory care products

Headcount: 1920

Established: 1996, Pabradė

Products: Electronic circuit boards

Headcount: 860

Established: 1993, Kaunas

Products: Electrical distribution systems

Headcount: 1890

Established: 2014, Panevėžys

Products: Tobacco

Headcount: 570

Established: 1993, Klaipėda

Products: Reagents

Headcount: 680

Established: 2010, Vilnius

19Sectors

#3 Technology

Source 1: MOSTA, 2018

Source 2: Infobalt, 2018.

Source 3: Ministry of Education, Science and Sport, 2018-2019.

Lithuania’s consistent focus on tech education helps to

further secure its reputation as a highly attractive location

for global tech business players, such as UBER, WIX,

UNITY and many others.

31,500IT specialists in

Lithuania1

2,500 junior developers retrained by

private academies in 20182

10,600IT students in the

pipeline3

20Sectors

Boaz Inbal, Manager of External Dev. Centres at Wix.com

As advocates of the ‘can-do’ attitude, when we first visited Lithuania we were thoroughly impressed by the creativity, energy and entrepreneurial spirit of the people we met. That’s the Wix way, and so Lithuania seemed like a natural fit for our company.

Wix.com

FTE 130

Established 2013, Vilnius

Products Wix.com applications and strategic Wix projects, IT and

R&D projects

21Sectors

#3 Top Global Tech and Start-up Businesses in Lithuania

Technical office Technical office

Development unit

Head officeDevelopment office

Activity: Software development, QA, Product Design for

Wix.Com web development platform

Headcount: 140


Activity: Adtech solution development, product management

Headcount: 440

Established: 2006 in Vilnius and 2013 in Kaunas

Activity:Critical infrastructure support, DevOps, software

development

Headcount: 40


Development unit

Activity: R&D and QA for Unity engine

Headcount: 100


Activity: Development of public transport app designed to plan

journeys using real-time data

Headcount: 50


Activity: Software development, advanced analytics, product

strategy

Headcount: 230


22

Invest Lithuania is the official agency for Foreign Direct Investment and Business Development.

We’ll partner with you to get your business set up and off to the best start possible:

All of our services are free of charge

Interested? Here’s how Invest Lithuania can help

Decision-making

We’ll help you make the most informed

decisions for your new operations:

− Tailored in-depth market and industry

insights,

− Advice on business costs,

− Information concerning the local labour

and legal framework.

Business Establishment

We’ll connect you with everyone you need to

know to guarantee a soft landing for your set up:

− Intros and meetings with key market players

and relevant governmental institutions,

− Sourcing of governmental financial support.

Business Development

Once you are up and running we’ll be there

with aftercare and support:

− Assistance with one-off problems,

− Lobbying for greater governmental

support.

Contact infoInvest Lithuania

T. +370 5 262 7438

E. [email protected]

A. Upes str. 23, 08128 Vilnius, Lithuania

www.investlithuania.com

we speak fluent business · 4 performance in fdi source: invest lithuania, 2018 39% 34% 13% 4% 3%...

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