Lithuania

3.6% GDP growth in 2014

1.2% Inflation

4th Lowest profit taxes in the EU

#1 For industry-university collaboration in the CEE

#2 Most favourable country for investment in Europe and #16 in the World

Source 1: Ministry of Finance, 2014 Source 2: KPMG, 2014 / BNP Paribas European Office Market, 2014 Source 3: European Commission, 2013 / WEF Global Competitiveness Report 2014-2015 Source 4: Foreign Policy„s Baseline Profitability Index 2014 / Centre of Registers, 2014

The city of Kaunas

• Lithuania„s 2nd largest city

• Population – 306 000

• Labour pool – 189 600

• 100 km from Lithuania‟s capital Vilnius

Source: National Statistics Departments, 2014

Investment friendly location

Kaunas is located in the center of

Lithuania, at the crossroads of major

international road and rail links

International Airports

River port and sea ports

Roads Rail

Kaunas International Airport

• Fastest growing airport in the Baltic States

• Second largest airport in Lithuania

• Carried 724,314 passengers and 2,060

tons of cargo in 2014

Vilnius International

Airport

100 km

Palanga International

Airport

243 km

Source: SE Lithuanian Airports Kaunas branch, 2014

Located at the crossroad of two major motorways

• The A1 connecting

Vilnius–Kaunas–Klaipeda

• The “Via Baltica” is integrated into the

TransEuropean motorway system,

serving as a connection between

Scandinavia and Central and Western

Europe

Road links

River and sea ports

• *Marvele cargo river port (linking Kaunas to

Klaipėda) has 0.8 m tons of potential annual

turnover for cargo[4]

• 3 major sea ports with 3 hours drive

Cargo handled in 2014 (Million tons)

Port of Klaipėda[1] (213 km) 36.4

Free Port of Riga[2] (260 km) 41.0

Kaliningrad Sea Commercial Port[3] (248 km) 3.3 * Currently being developed

Source 1: Port of Klaipėda, 2014 Source 2: Freeport of Riga, 2014 Source 3: Port of Liepaja, 2014 Source 4: Project „Development of the Nemunas ports (piers)“ feasibility study

The city connects to two international railway corridors

Rail links

I North-South corridor Tallinn–Riga– Kaunas–Warsaw

and its branch: IA Šiauliai–Kaliningrad–Gdansk.

IX East-West corridor and its branches:

IXB Kiev–Minsk–Vilnius–Kaunas– Klaipėda

IXD Kaunas–Kaliningrad

Source: Lithuanian Railways, 2015 *Still in the planning process, Warsaw-Kaunas will start running in September 2015

Warsaw

Helsinki Tallinn Riga

Rail Baltica

*„Rail Baltica“ is one of the projects of the EU. It will link Finland, the Baltic States and Poland and also improve the connection between Central and Northern Europe and Germany.

Strong economic growth

• 2nd county in Lithuania by GDP

• Generates 20% of Lithuania‟s GDP

• 62% of regional produce is exported

• Produces EUR 2.6 billion worth of

exports per year

Kaunas GDP growth (Billion EUR)

2009 2010 2011 2012 2013

5.13 5.38

6.12 6.54

6.88

Source: National Statistics Departments, Kaunas county data, 2013

Electronics and electrical equipment

Food and beverages

Logistics and storage

Mechanical engineering

Source: National Statistics Departments, Kaunas county data, 2013

Kaunas is the hub of advanced manufacturing“

Industrial competences and sectors with the highest turnover

Foreign Direct Investment (FDI)

• 964 m EUR of FDI in total

• 3,171 EUR of FDI per capita

Growth of FDI (Million EUR)

2008

679 915

964

2010 2013

Source: National Statistics Departments, Kaunasi city data, 2013

Major FDI industries

Manufacturing

54%

Wholesale and retail trade

16%

Private real estate

14%

Construction

6%

Source: National Statistics Departments, Kaunasi county data, 2013

Top investing countries

Canada More than 50 FDI companies

operate in Kaunas,

employing 6,500 people

Germany

Luxembourg

Finland

The Netherlands

Source: Orbis, Kaunas city data, 2013 Source: National Statistics Departments, Kaunas city data, 2013

Highly skilled and well educated workforce

189,600 workforce 9.6 %

Seeking employment

81% Speak a foreign

language

66% Russian

38% English

Source: National Statistics Departments, Kaunas city data, 2011-2013

Attractive employee costs

The average monthly

salary in Lithuania is

EUR 646.3

Average monthly gross salary (EUR) in Kaunas and other major cities in Lithuania

Vilnius Kaunas Klaipėda Šiauliai Panevėžys

759.7

645.3

685.2

558.7 597.2

Source: National Statistics Departments, 2013

Qualifications and competences

2nd most student-centered city

in Lithuania

31 500 students

8 universities

6 colleges

8 vocational schools

Source: National Statistics Departments, Kaunas region data, 2014

Qualifications and competences

Kaunas University of Technology

Engineering and Technology studies

Vytautas Magnus University

Arts, Humanities, Languages and

Communication

The Lithuanian University of Health

Sciences

Biomedical Sciences

SANTAKA Valley

www.santakosslenis.lt

NEMUNAS Valley

www.slenis-nemunas.lt

Business valleys

Hubs for high tech research and

knowledge-intensive business

TECHNOPOLIS

www.technopolis.lt

KTU Startup space

nivc.ktu.edu

Developed to foster innovation by bringing

together a critical mass of young entrepreneurs

Science parks

Kaunas Free Economic zone (FEZ)

Kaunas Airpark Developed infrastructure:

• Well-maintained roads • Water and sewage system

• Power supply, inner roads and lighting • Gas and rainwater drainage system

Park is used for: • Technical maintenance • Plane repairs • Aviation engineering

Source: Kaunas FEZ, 2014

Kaunas Airport

Industrial development area

534 ha

Territory for the development of industry, business and logistics

Income tax 0% (first 6 years)

50% reduction (subsequent 10 years)

0% Property tax

0% Tax on dividends

Source: Kaunas FEZ, 2014

FEZ tax incentives

Kaunas Public Logistics Centre and Intermodal Terminal

Services

• Container warehousing

• Container loading / unloading

• Repair

• Rental

• Sales

• Customs services

Engineering infrastructure:

• Water supply

• Sewage system

• Electricity

• Natural gas

Source: AB “Lietuvos Geležinkeliai”, 2013-2015

Kaunas Municipality

Kaunas municipality provides:

• Construction permits –

up to 45 working days

• 50% off parking permits in central

locations for businesses employing

over 200 employees

Source: Kaunas City Municipality, 2015

Business friendly environment

• Ease of starting Business / World ranking – 11th[1]

• Ease of doing business / World ranking – 24th[1]

• Time needed to establish a business – 3 days[2]

• VAT – 21%[2]

• Personal income tax – 15%[2]

• Social security tax paid by employer – ≤30.98%[3]

• 15% corporate tax rate – 4th lowest corporate tax

in EU[2,4]

• Real Estate tax – 1.0%[5]

• Land lease tax for commercial areas – 0.01%[5]

Source 1: Forbes, 2014 Source 2: State Tax Inspectorate Under the Ministry of Finance of the Republic of Lithuania, 2014 Source 3: State Social Insurance Fund Board of the Republic of Lithuania under the Ministry of Social Security and Labour Source 4: KPMG, 2014 Source 5: Kaunas City Municipality, 2014

Quality of life in Kaunas

• Hundreds of years of cultural heritage,

preserved in the historical and architectural

monuments, museums, theatres, art galleries

and churches.

• A thriving night life scene catering to a

range of tastes.

• A range of sports and leisure activities, and

great access to nature.

• Žalgiris Arena is one of the largest sports

and entertainment venues in the Baltic states

European Heritage Label

Advanced manufacturing companies that already trust us:

Division of Investment and Strategic Planning

Kaunas City Municipality Administration

Sonata Senkienė

Sapiegos g. 4, LT-44250, Kaunas, Lithuania

Tel: +370 37 42 29 32 / +370 686 25880

E-mail: sonata.senkiene@kaunas.lt

www.kaunas.lt

Partners:

www.investlithuania.com