Business Friendly Slovakia · KMF, BOXPERFECT, Amylum, Hi-Tech Mouldings ITALY Magneti Marelli,...
Transcript of Business Friendly Slovakia · KMF, BOXPERFECT, Amylum, Hi-Tech Mouldings ITALY Magneti Marelli,...
Business Friendly Slovakia Get to Know Slovakia as Your Investment Destination
Content 1 Success Stories 2 Key Numbers 3 Human Resources 4 Infrastructure 5 Key Sectors 6 Innovation Potential 7 Investment Incentives 8 SARIO
Success Stories in Slovakia
Great Brands Gather in Slovakia
Source: SARIO, 2013
Defence industry
Chemistry Electrical equipment
Machinery equipment
Automotive industry, supplier sector
Medium-High Technology: Manufacturing
Other transport
equipment
Medical and dental
instruments
Great Brands Gather in Slovakia, Medium High-Tech
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
Great Brands Gather in Slovakia, High-Tech
SPAIN
GERMANY
FRANCE
KOREA
JAPAN
TAIWAN
CHINA
Slovakia: Success Stories from around the World
USA
PSA Peugeot Citroen, Dalkia,
Orange, Bourbon, CCN, Alcatel R&D
Siemens, Volkswagen, T-Systems, Continental
Aluminiuim Cortizo, Jobelsa, Cikautxo,
OHL, O2
US Steel, Emerson, DELL EMEA Centre
of Excellence, Whirlpool, IBM, HP
European IT Operation Centre, Johnson Controls AT&T, Accenture,
Amazon
KIA Motors, Samsung,
Hyundai Mobis
Panasonic, Sanyo SIIX, SEWS, Misuzu,
Minebea, Trim Leader, Brother
Industries, Yazaki, U-Shin, Makino,
Takenaka, Tamura, Yamagata, Taisei
AU Optronics, ESON, Foxconn, Delta Electronics
Lenovo
UK
SPC International, KMF, BOXPERFECT, Amylum, Hi-Tech
Mouldings
ITALY
Magneti Marelli, Brovedani, SISME,
CAME, ZANINI
SWITZERLAND
Swiss RE, Schindler, Holcim, Novartis,
Vetropack, Slovaktual, Franke
Source: SARIO, 2013
AUSTRIA
OMV, Mercedes-Benz, Schenker,
Erste Group
BRAZIL
Embraco
MAGNA SLOVTECA, KraussMaffei Technologies,
Martinrea Slovakia Fluid Systems,
Slomatec
CANADA
I Central European hub & favourable geographic location with great export potential
I Safe investment environment: political and economic stability
I Official currency EURO as one of a few countries in CEE
I Fastest growing Eurozone member within the last 10 years (CAGR)
I 10 Year CEE Leader in DB 2004 – 2013 /World Bank/
I 6 Year CEE Leader in Physical Property Rights Security in 2008 – 2013 /PRA/
I CEE leader in labor productivity and in TOP 10 hard working countries /OECD/
I High adaptability of labor force to different culture management styles
I Lowest Tax Burden in Visegrad group
I No 9 worldwide in adapting to new technologies & high innovation potential
I Large selection of industrial land & offices
I Attractive investment incentives
TOP Reasons Why to Invest in Slovakia
Key Numbers
Slovakia: Strategic Position with Export Potential
Source: World Resources Institute
300 million
clients in radius of 1 000 km
600 million
clients in radius of 2 000 km
Slovakia: EURO Zone Member - One of a Few in CEE
Euro (€) since 1 January 2009
EURO IMPLEMENTATION IMPACT:
- Limitation of Foreign Exchange Risk
- Lowering Transaction Costs
- Growth in Foreign Trade
- Increased Financial Stability
-5
0
5
10
15
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013f 2014f
European Union (EU-27)Slovak Republic
2008 2009 2010 2011 2012 2013
Real GDP growth 6.4% -4.7% 4% 3.3% 2% 0.9%
Labour productivity growth
2.3% -2.3% 4.4% 2.2% 2.4% -
HICP Inflation 4.6% 1.6% 0.7% 4.1% 3.6% 1.9%
Unemployment 9.6% 12.1% 14.4% 13.6% 14.0% 14,2%
Average monthly gross salary, €
723 744.5 769 786 805 824
Real GDP growth
GDP Prediction
by Ministry of Finance
of the Slovak Republic
2013f 0.8 %
2014f 2.2 %
2015f 2.9 %
2016f 3.1 %
Slovakia: Macroeconomic Overview
2013f 2014f
Germany 0.4% 1,8%
Slovakia 0,9% 2.3%
Poland 1.6% 2.9%
Czech Rep. -1,2% 1.8%
Hungary 1.1% 2,1%
Source: European Commission, winter 2013
Source: European Commission, winter 2014
Slovakia: Fastest Growth in Eurozone, 2003-2012
Source: European Commission, Eurostat 2013
-2,00 -1,00 0,00 1,00 2,00 3,00 4,00 5,00
Greece
Italy
Portugal
EUROzone
France
Spain
EU
Netherlands
Belgium
Finland
Ireland
Germany
Slovenia
Austria
Cyprus
Luxemburg
Malta
Estonia
Slovakia
-1,30
-0,28
-0,15
0,84
0,85
0,89
1,00
1,13
1,20
1,29
1,33
1,45
1,49
1,63
1,76
2,10
2,13
2,88
4,50
CAGR (Compound Annual Growth Rate)
Slovakia: Lowest Indebtedness in Eurozone (%, GDP)
0
20
40
60
80
100
120
140
160
180
200
220
240
260
280
300
320
340
360
380
400
State Company Household
Source: Eurostat, 2011, the most recent data as of August 2013
50 % Slovak state debt among the
lowest in EURO Zone
Slovakia - the lowest indebtedness in
EURO Zone (126%)
0
50
100
2002 2004 2006 2008 2010 2012
SK HU CZ DE PL Developed European Economies FR UK
Source: UNCTAD STAT, 2014
Export of Goods to GDP index, 2012
Slovakia: Most Open Economy in Europe
88 %
Slovakia: Simple & Fair Tax System
Source: Eurostat, Data from the year 2011 as the latest available in November 2013
0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0
Hungary
Czech Republic
Poland
Slovakia
37,4
34,6
32,3
28,8
Slovakia: Lowest Tax Burden in Visegrad group
Total Tax Burden to GDP ratio (%)
COUNTRY RATINGS
(Sovereign foreign
currency ratings)
SLOVAKIA CZECH
REPUBLIC HUNGARY POLAND BULGARIA ROMANIA
A
stable
AA-
stable
BB-
negative
A-
stable
BBB
stable
BB+
stable
A2
stable
A1
stable
Ba1
negative
A2
stable
Baa2
positive
Baa3
stable
A+
stable
A+
positive
BB+
stable
A-
positive
BBB-
stable
BBB-
stable
A+
stable
A
stable
BBB
negative
A
stable
BBB
stable
BBB-
stable
A
stable
A
stable
BBB-
negative
A-
stable
OECD
Country risk 0 0 0 0 4 4
Slovakia: Best Country Credit Ratings in CEE
Source: www.standardandpoors. com,www.moodys.com, www.fitchratings.com, www.jcr.co.jp, www.r-i.co.jp, www.oecd.org
DOING BUSINESS The World Bank Project
•Analyzes the business regulations in 185 countries •Clasifies economies in 10 areas of business regulations
6
Registering property
Paying taxes
Enforcing contracts
Protecting investors
Insolvency resolution
Construction permits
Starting & Closing Business
Trading across borders
Getting credit
Electricity acquirement
Slovakia: 10 Year CEE Leadership in DB 2004 - 2013
SK
RO
Source: WORLD BANK GROUP Doing Business Report 2005 - 2013
No1 CEE countries
INTERNATIONAL PROPERTY RIGHTS INDEX (IPRI) – Physical Property Rights 1st international comparative study analysis of
• 130 countries • 97% of world GDP
No
1 2
4 5
6
Physical Property Rights • Protection of Rights • Registering Property • Access to Loans
3
SK
HU
BG PL
CZ RO
Slovakia: 6 Year CEE Leadership in Physical Property Rights Security 2008 - 2013
Source: PROPERTY RIGHTS ALLIANCE (SK 6.5, CZ 6.4, RO 5.9, HU 5.9, BG 6.0, PL 6.0 out of 10 points)
Source: World Bank, Property Rights Alliance
Slovakia: Best Investment Climate in CEE, 2013
DOING BUSINESS
PHYSICAL PROPERTY
RIGHTS
Slovakia
RO
CZ HU
BG
PL
Germany
CEE
complex
risky
easy
secure
Slovak Labor Force Our People - Our Treasure
Slovak Employees: Perception by Foreign Investors
Source: SARIO, 2013
Luiz Henrique da Silveira, 2013 „Slovak people are highly creative and disciplined.“
Veit Dengler, General Manager, 2009 „Among the important factors were the legal system, the state of the economy, the business climate and the quality of governance. The number one criterion, however, were the people. It was they who had the greatest impact on our company’s growth. In 2001, we didn’t say we’d be employing 2 000 employees here by 2008. “
Raquel Cortizo Almeida, Supervisory Board, 2012 „Slovak people work very hard, they are modest, value the security and stability with desire to work, improve themselves and can easily adopt to new working environment.“
Country of origin: USA Field: SSC – DELL Business Centre Bratislava
Country of origin: SPAIN Field: Metal Processing Aluminium
Country of origin: BRAZIL Field: Manufacture of electrical equipment
Dr. Andreas Tostmann, Former CEO Volkswagen Slovakia, 2011
„Slovak employees gained the Lean production & Green Efficiency Award for VW Slovakia through innovation, excellent performances, application of lean production tools/workshops.“
Country of origin: GERMANY Field: Automotive
Slovakia: German Quality & Slovak Price Perception by Foreign Investors
Source: SARIO, 2013
Yasuo Hayashi, Former General Director, 2012 „We were happy to foind in Slovakia German quality and Slovak price. We thought of Slovakia as “the 17th Bundesländer” of Germany, Bundesrepublik Deutschland. People come to Slovakia with some sort of a fear, yet afterwards they get very satisfied and nicely surprised; same happened to me. Slovak management was very initiative coming with great ideas, which was very helpful during the decision making process. I appreciated their patience and trust. Radoslav Pastorak, General Manager, 2013 „Slovak technical employees are very experienced and apt – if encountered a technical problem, they provide re-design solution to R&D colleagues in Germany – standardly these solutions are implemented. We can easily hire new employees if needed – 2 days for operator positions and 3 months managerial level. Slovak workforce is highly qualified with great multilingual competencies; English or German are not problem at all. As to the Japanese style of decision making process, it seemed to us a bit long or longer than necessary, yet Slovak management has always been an integral part of all the relevant discussion and in the end the decision made by my Japanese supervisor was thought over and smart. The implementation of the decision was fast and very efficient. “
Country of origin: JAPAN Field: Electrotechnical
OECD: Slovakia in TOP 10 Hard Working Countries 2013
MEXICO USA JAPAN
SLOVAK REPUBLIC
Source: OECD, July 2013. Data reflect wage and salary workers, not the self-employed.
96% of Slovak employees work more than 40 hours a week. Part-time work is practically non-existent in Slovakia.
Slovakia: Multilingual Competencies & Education
Source: Special Eurobarometer 386: Europeans and their languages, June 2012
- 80% of Slovak people speak foreign language
6,75%
40,39%
37,17%
15,68%
No education
Elementary school
Secondary General School
Secondary Vocational School
University education
- one of the highest proportion of secondary educated people, 77% in EU
- university education, 16% on the growth
Slovakia: Slovak Managers Are Best Viewed By Expats
SK
decisions acceptance ✔
flexibility/adaptability ✔
initiative ✔
teamwork ✔
taking responsibility ✔
less bureacracy ✔
company loyalty ✔
cooperation in working process
✔
deadline acceptance ✔
organized management
✔
Source: TARGET International Executive Search, Henley University of Reading, UK, 2009
How do senior expatriate managers view management culture in Slovakia, Czech Republic, Hungary and Poland?
“My organization has a high population of young managers who are dedicated and industrious, ” British Manager “My manager colleagues are highly motivated and educated. My Slovak colleagues demonstrate a sharp mind and tend to learn quickly,” German Manager
Slovak Import / Export Infrastructure & Logistics
International Ports around Slovakia
Koper, SI
Hamburg, GERMANY
Rotterdam, NETHERLANDS
Bratislava
Constanta, RO
Izmail, RO
Gdansk, POLAND
Road Railway Waterway
Key Sectors
LEADING SECTORS OF THE SLOVAK ECONOMY
Automotive 1st in world car
production per 1,000 inhabitants in 2013
Electronics Technological
growth driver
ICT/SSC Prestigious and
renowned Slovak and foreign players
R&D Innovative potential
strives for
future R&D hub
Innovation & Information Technologies In-Line with Traditional Industries
Key Sector No 1 in Slovakia: Automotive
Car Production in Slovakia
Source: Slovak Automotive Industry Association ZAP,VW, KIA, PSA-Peugeot, 2012
SLOVAKIA, 2013 Leader in World Car Production
per 1000 inhabitants
181 vehicles /1000 inhabitants
European Union Average 38 vehicles / 1000 inhabitants
215 349
295 390
571 071
575 776
463 140
557 000
630 000
926 938
980 000
0 200000 400000 600000 800000 1000000 1200000
2005
2006
2007
2008
2009
2010
2011
2012
2013
I 52 established ICT and SSCs
I Personnel over 40 000
with college/ university education
excellent language skills
Key Sector No 2: ICT & SSC
Success Story: Virtual Reality Media, Trenčín
I Design, development and production of simulators and training systems since 1995;
I SW/HW engineering, and systems integration:
Military simulators and training systems – both for air and land
Civil aircraft simulators
HW subsystems, SW modules and applications
I Provider of simulation technologies for the needs of the Slovak Army and other customers worldwide to include USA, Africa, Middle East and Asia
Success Story: ESET, Bratislava
ESET – the world leader Designed antivirus solution security software Smart Security and ESET NOD32 for corporations and households to proactively detect the computer threat
CyberSecurity – Inteligent Detection automatically detect and eliminate malicious codes
Innovation Potential
FDI & Technology Transfer Growing Centre of Knowledge & Innovation
FDI AND TECHNOLOGY TRANSFER (ranking out of 139 countries)
Source: Rapport Global sur la Compétitivité 2012-2013
912
18
58
0
10
20
30
40
50
60
70
SK HU CZ PL
Slovakia
No. 9 worldwide in the extent of bringing new technology to host country 1 = not at all; 7 = FDI is a key source of new technology
Corporate R&D Centres in Slovakia
dernières
Success Stories in Automotive R&D
Johnson Controls Engineering Centre
Trenčín
ON Semiconductor Bratislava
Development Centre
R&D LEONI Autokabel
Slowakia Trenčín Technology Lab
Siemens Žilina
ZKW Slovakia R&D Center Krušovice
Continental Automotive Systems R&D Centre
Zvolen
R&D Centres and Universities
45 centres of excellence
- Slovak Academy of Science
- Centres of Investigation
- Universities
7 university cities
Slovak Academy of Sciences Institute: Institute of Materials
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..
Investment Incentives
ŽILINA REGION 12,51 %
41 376 job seekers
PREŠOV REGION 19,35 %
75 391 job seekers
KOŠICE REGION 17,23 %
63 287 job seekers BANSKÁ BYSTRICA REGION
18,26 % 60 549 job seekers
TRENČÍN REGION 10,74 %
32 122 job seekers
NITRA REGION 12,52 %
43 960 job seekers
TRNAVA REGION 9,16 %
26 630 job seekers
BRATISLAVA REGION 6,17 %
20 910 job seekers
*Represents only the number of seekers registered at the unemployment office. Please note, that many job seekers are not registered.
Source: www.upsvar.sk, annual 2013, updated 2014
Average level of unemployment in Slovakia reached 14,2 % as of 2013.
Total Number of jobseekers:
364 225
Unemployment & Registered Job Seekers