Roman SaboHead of Investment Division9.12.2014

Foreign Direct Investments

Slovakia

SARIO

SARIO Investment Promotion Services

I A package of services

POTENTIAL

in-depth information about Slovakia

tailor-made solutions – HR, real estate, legal

sourcing

ESTABLISHED

expansion, local suppliers, relocation, work permits

I Investment incentives consultancy

industry

shared services centers

technology centers

tourism

I M&A

I Outbound investments consultancy

I Investment promotion events

in Slovakia

abroad

Services Free of Charge

Why Slovakia

I Safe investment environment: political and economic stability

I Central European hub & favourable geographic location with great export potential

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 Property Rights Security in 2008 – 2013 /PRA/

I CEE leader in labour productivity and in TOP 10 hard working countries /OECD/

I High adaptability of labour force to different culture management styles

I Low overall Tax Burden

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

Success Stories in Slovakia

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 PeugeotCitroen, 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 ControlsAT&T, Accenture,

Amazon

KIA Motors, Samsung,

Hyundai Mobis

Panasonic, SanyoSIIX, 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, 2014

AUSTRIA

OMV, Mercedes-Benz, Schenker,

Erste Group

BRAZIL

Embraco

MAGNA SLOVTECA, KraussMaffeiTechnologies,

Martinrea Slovakia Fluid Systems,

Slomatec

CANADA

I 52 established ICT and SSC

I Personnel over 40 000

with college/ university education

excellent language skills

Schifting from production to services

Key Numbers

64

44

3027

2219 18 17 17 17 16

12 10

Investment Projects by Country SARIO 2002-2013

Source: SARIO, 2014

Textile5%

Rubber and Plastic17%

Metal Products

21%

Electronics18%

Automotive30%

R&D2%

SSC&CC7%

Investment Projects by Industry SARIO 2002-2013

Source: SARIO, 2014

Investment Incentives

ŽILINA REGION12,51 %

41 376 job seekers

PREŠOV REGION19,35 %

75 391 job seekers

KOŠICE REGION17,23 %

63 287 job seekersBANSKÁ BYSTRICA REGION

18,26 %60 549 job seekers

TRENČÍN REGION10,74 %

32 122 job seekers

NITRA REGION12,52 %

43 960 job seekers

TRNAVA REGION9,16 %

26 630 job seekers

BRATISLAVA REGION6,17 %

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

Eligible Projects

Industry

Shared Service Centers

Technology Centers

Tourism

Basic Features

I Targeted at regions with high unemployment rate

I Final decision: Slovak government

I Administrative body: Ministry of Economy of SR

I Investment intensity up to 35% from eligible costs

I ELIGIBLE COSTS :

LAND

BUILDINGS

NEW MACHINERY & TECHNOLOGY EQUIPMENT

LICENSES & PATENT RIGHTS

OR

WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS

I FORMS: INCOME TAX RELIEF up to 10 tax periods

CASH GRANT (paid ex-post, based on annual costs report)

CONTRIBUTIONS ON NEW JOBS (paid ex-post, based on annual costs report)

Legal framework: Act no. 561/2007 Coll. on Investment Aid

Statistics, 2002 - 2013

139 supported projects

€ 7.16 bn initial eligible investments

47 602 newly created job positions

€ 1.44 bn aid granted

20% average aid intensity

30 000 EUR average aid per 1 newly created job position

47% share of tax relief on total granted aid

People - our key asset

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 thequality of governance. The number one criterion, however, were the people. It was they who had the greatestimpact 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, improvethemselves and can easily adopt to new working environment.“

Country of origin: USAField: SSC – DELL Business Centre Bratislava

Country of origin: SPAINField: Metal Processing Aluminium

Country of origin: BRAZILField: 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: GERMANYField: Automotive

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

132

39

24

17

8

7

6

6

2

0 50 100 150

France

Ireland

United Kingdom

Slovenia

Lithuania

Poland

Romania

Hungary

Slovakia

Source: European Industrial Relations Observatory EIRO as of Sep 2013 (last update 25 Aug 2010)

Average number of lost working days due to industrial action 2005 - 2009 per 1 000 employees , 2005 - 2009

Slovakia:Loyal Labourforce

SLOVAKIA 5th best tourist destination by Lonely planet

For more information, please contact at:

Slovak Investment and Trade Development Agency

Trnavska cesta 100821 01 Bratislava

Slovakia

Tel. +421 2 58260 100

Email invest@sario.sk; trade@sario.sk

Thank you for your attention