SLOVAKIA Ideal Investment Business Destination Slovakia Growing Heart

SLOVAKIA Ideal Investment & Business Destination

Slovakia – Growing Heart of Europe I I I Source: SARIO, 2010 Establishment: Official name: Area (km 2): Population: Capital: Member of: 1 st January 1993 Slovak Republic 49, 035 5, 379, 000 Bratislava OECD, WTO, NATO, EU, Schengen area Official currency: EURO location Strategic Official Language: Slovak with Government: Parliamentary great export potential democracy Election term: 4 years Neighbours: Austria, Czech Republic, Hungary, Poland, Ukraine Time zone: GMT + 1 hour

GDP Prediction for 2012 Macroeconomic Overview EC 1. 2% OECD 1. 8% National Bank of SR 2. 1% GDP growth IMF 2. 4% MF SR 2. 5% WB 3% GDP Prediction for 2013 IMF 3, 1% National Bank of SR 3. 1% 2008 2009 2010 2011 Real GDP growth 6. 4% -4. 7% 4% 3. 3% Labour productivity growth 3. 8% 2. 7% 2. 2% - HICP Inflation 4. 6% 1. 6% 0. 7% 4. 1% Unemployment 7. 7% 11. 4% 14. 4% 13. 5% 723 744, 5 769 786 Average monthly gross salary (€) Source: International Monetary Fund, Eurostat, Slovak Statistics Office, Central office of Labour, Social Affairs and Family WB 1. 5% OECD 3. 6% MF SR 2. 7% OECD 4. 4%

Slovakia: Fastest Growth in Eurozone, 2012 FF Source: European Commision, February 2012

1 st Rank in CEE in DOING BUSINESS 2012 ! Methodology Starting a business Construction permits Registering property Paying taxes Enforcing contracts Protecting investors Closing business Trading across borders Getting credit Source: World Bank Group – Doing Business Report 2012 The Doing Business project provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level.

Why Invest in Slovakia: Top Reasons Strategic Position with Export Potential 300 million of consumers in radius of 1, 000 km Moscow London Berlin Kiev Paris 600 million Rome of consumers in radius of 2, 000 km Zdroj: World Resources Institute Istanbul

Eurozone Member – One of the few from CEE € Euro since 1 st January 2009 EURO IMPLEMENTATION IMPACT: ü Limitation of Foreign Exchange Risk ü Lowering Transaction Costs ü Growth in Foreign Trade ü Increased Financial Stability Source: SARIO, 2012

Simple and Fair Taxes 19% Flat Tax Rate Corporate Income Tax Personal Income Tax Value Added Tax - VAT 19% 20% Dividend tax Inheritance and Gift Tax 0% Real Estate Transfer Tax Repatriation 100% Source: SARIO 2012 of profits

Low Labour Cost & High Labour Productivity Gross monthly salary 989 € Slovakia reaches the highest labor productivity 24 319 CZK Czech Republic 825 € 3 399, 52 PLN Poland 786 € Slovakia 762 € 213 054 HUF Hungary 472 € 1 936 RON Romania 328 € 642 BGN Bulgaria GDP (in PPS) per hour worked as compared to EU 15 (100) Source: Eurostat 2011 Data for 2011 Source: National Statistical offices of Czech republic, Hungary, Poland, Slovakia, Bulgaria, Romania exchange rate (as of 3 April 2012)

Regional Differences in Wages Average gross monthly wage level in economy in Slovakia in 2011 reached 786 EUR(2, 2% increase pa) 707 € 608 € 687 € 726 € 652 € 735 € 1 001 € 662 € Source: Central Office of Labour, Social Affairs and Family, 2012 Average unemployment level in Slovakia in 2011 reached 13. 5 %

Education in Slovakia In TOP 500 of world universities ranking Number of Universities: 35 Number of Students in 11/12: Graduates in 2011: Source: The Institute for the Information and the Prognosis in the Education, 20 12 71 092 204 158

Dominating Sectors of Slovak Republic High-Tech Services: Knowledge Intensive Creative, movie, TV industry and ICT Source: SARIO, 2012 Scientific research and development (biotech, medical, engineering etc. ) High-Technology: Manufacturing Pharmacy Computer, electronic and optical products Air and spacecraft industry

Dominating Sectors of Slovak Republic Medium-High Technology: Manufacturing Chemistry Source: SARIO, 2012 Armament industry Electrical equipment Machinery equipment Automotive industry, supplier sector Other transport equipment Medical and dental instruments

Slovakia´s Success Stories Source: SARIO, 2012

Success Stories & FDI Inflow to Slovakia Country of Origin Investor USA US Steel, Emerson, DELL EMEA Centre of Excellence, Whirlpool, IBM International Services Centre, HP European IT Operation Centre, Johnson Controls R&D Centre, AT&T, Accenture Technology Solutions, Getrag Ford (Deutschland), Honeywell, Amazon China Lenovo Taiwan AU Optronics, ESON, Foxconn, Delta Electronics Germany Siemens, Volkswagen, T-Systems, Continental Japan Sony, Panasonic, Yazaki, Mitsui Sumitomo Korea Samsung, KIA Motors, Hyundai Mobis France PSA Peugeot Citroen, Alcatel R&D Source: NBS, SARIO, 2012

Bilateral trade Development of bilateral trade between Slovakia and Greece (in thousands €) 2007 2008 2009 2010 2011 1 -7/2012 Export 262 451 302 137 270 015 177 529 148 744 89 027 Import 86 858 84 577 105 807 91 585 88 525 56 325 Turnover 349 309 386 714 375 822 269 114 237 269 145 352 Balance 175 593 217 560 164 209 85 944 60249 32 702 I 2008 - the peak of the trade and our exports I 2009 - slight decrease due to ongoing global financial and I I economic crisis 2010 – annual decrease of 21% 2011, 2012 - downward trend in trade, mainly due to the decrease of our exports, but still highly positive trade balance for Slovakia (our exports highly exceed imports).

Main trade commodities I Slovak export to GR I - the highest export turnovers were in TV sets, cars I - followed by plastics, rubber and articles thereof; paper, I I I I paperboard and articles of paper pulp; metal and metal products (including iron, steel and copper) - increase in export of other commodities: wood, tires, telecommunication equipment, audio equipment, cosmetics, furniture, printing materials, artificial fertilizers, pumps, metal pipes, office equipment, musical instruments, plastic products, household appliances, commercial glass, electrical machinery, yarn and so on. - more than 70 commodities with volume of over 100 thousand €. Greek import to SR - aluminum ores and concentrates have long been the most important commodity in our import from Greece (35% of total imports) - Second place - market products, especially cutlery and knives. - other commodities: pharmaceuticals, textile products, fruits, nuts, vegetables, alcohol, cosmetics, polymers, etc. - Overall, more than 30 items with the volume over 100 thousand Euros.

Insight into Investment Incentives

Eligible Projects Ø Industry Ø Shared Service Centers Ø R&D Centers Ø Tourism

Eligible Costs ELIGIBLE ARE COSTS OF: q LAND q BUILDINGS q. NEW MACHINERY & TECHNOLOGY EQUIPMENT q LICENSES & PATENT RIGHTS OR q WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS State aid in regions: Bratislava: Western Slovakia: Central Slovakia: Eastern Slovakia: 0% 40% 50%

SARIO Services From providing § General services & information to all subjects interested in FDI in Slovakia § Tailor-made solutions for potential investors exploring Slovakia such as § Best Location for Your Investment § Best Location for Your Expansions Through § Assistence in STATE AID application process for investments into: § INDUSTRY § SHARED SERVICE CENTERS § R&D CENTERS § TOURISM § Support foreign trade via match-making & subcontracting To § AFTERCARE services - for established foreign companies Contact: www. sario. sk Governmental Agency: Services Free of Charge

Thank you for your attention! Roman Hlobeň Address: Deputy Head of Mission Embassy of the Slovak Republic 4, G. Seferi Str. , Paleo Psychico, 154 52 Athens tel. 210 6771 980 fax. 210 6776 761 emb. athens@mzv. sk