Country Presentation Poland SICC 2009 Poland its leadership

Country Presentation - Poland SICC 2009 Poland its leadership role in Central / Eastern Europe 19 th of March, 2009 Aleksander Jóźwik Justyna Kowalczyk Agata Rundo Tomasz Zacharski

Agenda AGENDA 1. Basic Data 2. Contemporary issues Economic Crisis European Football Championships 2012 American Anti-Missile Shield 3. Poland as an attractive Business location

Agenda AGENDA 1. Basic Data 2. Contemporary issues Economic Crisis European Football Championships 2012 American Anti-Missile Shield 3. Poland as an attractive Business location

Addresing the common misconception… POLAND

…about Polar Bears walking on Polish streets. POLAR

Addresing the common misconception… Average Temperature in Poland is about 20 OC Average Temperature in the North Pole is about -20 OC POLAND

Basic information about Poland has a slightly greater population than Canada and is the 6 th largest country in the European Union. It’s GDP of ~$550 b is comparable to the one of Ontario. BASIC DATA • A very homogenic nation • Population: 38 m people • Size: 300. 000 km 2 • GDP: $550 b • Dynamic growth (5, 4 %) SIZE COMPARISON POLAND ONTARIO

Fun facts about Poland

Fun facts about Poland

Fun facts about Poland

Fun facts about Poland

Fun facts about Poland

Fun facts about Poland

Fun facts about Poland

Agenda AGENDA 1. Basic Data 2. Contemporary issues Economic Crisis European Football Championships 2012 American Anti-Missile Shield 3. Poland as an attractive Business location

Summary of Poland’s Economic Situation Poland, while experiencing problems with the credit crunch and export breakdown, remains relatively resistant to the effects of the economic crisis POLAND – ECONOMIC OUTLOOK -4, 0% -2, 3% +2, 0% +1, 7% -1, 8% +2, 7% +1, 8% • Polish banking system was relatively underdeveloped at the moment of the credit crunch (banking assets <75% of GDP), which softened the blow during the crisis • Poland has a big internal market and enterprises are used to funding investments through equity rather than debt • Currently Poland struggles to distinguish itself from the crisis-struck CEE in the eyes of the investors • Polish government is determined on tight fiscal policy and providing additional incentives for business After the crisis Poland may well rise as the best standing economy in Central & Eastern Europe.

Information about the EURO 2012 Football Championships Football European Cup 2012 (hosted by Poland Ukraine) is currently the biggest infrastructure project in CEE, with over 38 b EUR to be spent in 2008 -2012 • • • Considered one of the most important sport events in Europe – held for the first time in CEE region • Generally considered the most ambitious project in Polish post-transition history • Total value of the project amounts to b 38 EUR, in areas such as: roads, hotels, sport facilities, etc. At the moment Poland is managing to keep up with deadlines for the majority of its projects (still problems with road and aviation infrastructure) Ukraine is currently facing big problems due to economic crisis and political instability talks of shifting the Euro from Ukraine to Germany

The Anti-Missile Shield Project The most delicate political issue in Poland at the moment is the US anti-missile defence system which will be located in Poland Czech Republic • While it was designed to repel the nuclear threats of Iran and North Korea, the system is considered a threat by Russia, which fears it could be used against its strategic nuclear forces – thus threatening the status quo between both countries • Recently Russian authorities threatened that they will locate more of their strategic missiles in the Kaliningrad region if Poland USA will continue their anti-missile shield project • While the agreement regarding the placement of the anti-missile system was signed between USA and Poland last year, there are discussions whether the Obama administration will back off from the deal

Agenda AGENDA 1. Basic Data 2. Contemporary issues Economic Crisis European Football Championships 2012 American Anti-Missile Shield 3. Poland as an attractive Business location

European Attractiveness Survey Poland is still one of the most intended locations of investment projects in Europe. Source: Ernst & Young, „European Attractiveness Survey” 2005

Annual hours of work across the world Although Poles are hard-working and determined to succeed. . . Source: OECD, Employment Outlook 2006

Wage structure in Poland . . . wages in Poland are still among the lowest in Europe. Labor cost per hour in 2006 (USD) Source: EIU 2006 Average monthly gross wage in EUR Source: Statistical Offices Labor costs in Poland equal to about one fifth of the Western Europe ones Since 2003 labor costs in Czech Republic are higher than in Poland

Business Process Offshoring Poland has multiple academic and business centers, which assured balanced development of the country According to PAIi. IZ information there are 35 BPOs located in Poland. Scope of activities: finance and accounting, HR, logistics, CRM. Total employment: 6, 500 people. Gądki Examples: Dąbrowa Górnicza Bielsko-Biała ≤ 2 3 -4 5 -6 7> NUMBER OF CENTERS Piaseczno

Research & Development Centers Similarly, R&D centers are spread throughout the country, mainly next to main academic and scientific sites There are 40 R&D centers created by foreign investors in Poland. They totaly employ over 4500 people. Gdańsk Szczecin The biggest SSC belong to and serves: Warsaw: Bydgoszcz Radzymin Gorzów Wielkopolski Warszawa Poznań Garwolin Zielona Góra Krakow: Wrocław Bielawa Częstochowa Gliwice Kielce Kraków Katowice Wrocław: Bielsko-Biała NUMBER OF CENTERS Skawina

Key sectors and locations in Poland Even spread of business centers across Poland allowed for the entry of various industry giants Electrical Machinery & Apparatus • Average gross wage rate: 510 EUR (average wage for engineers 820 EUR). • Employment: 73 000 persons. • Number of foreign companies: 39 Machinery & Equipment • Average gross wage rate: 520 EUR (average wage for engineers - 820 EUR). • Employment: 138 600 persons. • Number of foreign companies: 36. Automotive • Average gross wage rate: 500 EUR (average wage for engineers – 710830 EUR). Metallurgy & Metal • Average gross wage rate: 570 • Employment: 120 000 persons. EUR (average wage for engineers 820 EUR). • Number of foreign companies: 300 (Tier 1 + Tier 2). • Employment: 176 700 persons. Source: Central Statistical Office, AG „Test” 2004 • Number of foreign companies: 50

General Electric case GE started operation in Poland in 1992 and have invested since then $400 mln assuring jobs to 6000 emlpoyees Attractiveness Criteria Big domestic market Talent pool Pricing Mobility of workforce Engineering competencies General Electric Showcase GE Money Bank Variety of operations: banking, production, R&D 3 factories GE Power Control Warsaw, Gdansk, Wroclaw, Lodz, Bielsko-Biala Engineering Design Centre (Warsaw), Project Centre GE Security (Gdansk)

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