WELCOME TO THE CZECH REPUBLIC Investment opportunities in

WELCOME TO THE CZECH REPUBLIC Investment opportunities in IT sector Jiri Preclik, Vladimir Vyskocil 10 th October 2011

CZECHINVEST Investment & Business Development Agency Ministry of Industry and Trade State contributory organisation Czech. Investment and Business Development Agency to support foreign direct investment mission to develop local companies to implement business-development programs to improve business environment

OUR SERVICES TO POTENTIAL INVESTORS -- Collect/provide information -- Identify sites and buildings -- Find potential suppliers / JV partners -- Liaise with government bodies/local authorities -- Handle investment incentives -- Enable access to structural EU funds -- Provide aftercare services our services are free of charge Source: Czech. Invest, 2010

CZECH REPUBLIC: BASIC DATA 2010 Population Labour force Unemployment GDP growth Annual inflation Average monthly wage (nominal) 10. 5 million 5. 3 million 8. 2 % 2. 3 % 1. 5 % EUR 947 USD 1253 Source: Czech Statistical Office 2011, Czech Ministry of Finance, September 2011

INVESTMENT RISK RATING STANDARD AND POOR´S MOODY´S FITCH Slovenia AA Aa 2 AA Czech Republic AA- A 1 A+ Slovakia A+ A 1 A+ Estonia A A 1 A Poland A- A 2 A- Hungary BBB- Baa 3 BBB- Bulgaria BBB Baa 3 BBB- Romania BB+ Baa 3 BB+ COUNTRY Source: Czech National Bank, April 2011

Czech Republic Academic Institutions – R&D Potential PRAGUE REGION Students: 12, 353 Graduates: 2, 464 LIBEREC REGION Students: 799 Graduates: 455 Technical Universities Students: 80, 245 Graduates: 17, 109 Ph. D grad. : 1, 029 HRADEC KRALOVE Students: 782 Graduates: 114 PARDUBICE REGION Students: 1, 073 Graduates: 112 MORAVIA-SILESIA Students: 3, 935 Graduates: 720 Source: Institute for Information on Education Czech. Invest, 2010 *Note: according to the selected educational fields - source Czech. Invest PLZEN REGION Students: 2, 364 Graduates: 539 SOUTH MORAVIA Students: 8, 058 Graduates: 1, 897 ZLIN REGION Students: 1, 794 Graduates: 418 ICT Faculties Students: 32, 789 Graduates: 6, 575

Czech Republic Favorable Labour Costs ╌ Skills Are the Critical Factor for Success in ICT Sector ╌ Creative, Innovative, Skilled and Experienced Professionals ╌ Lower costs compared to Western Economies Position CR USA IT Top Management 6, 500 10, 000 MIS Management 4, 800 7, 400 Systems Analysis Professionals 1, 600 3, 300 Programming Professionals 1, 300 2, 700 Source: Czech. Invest, 2011; The Economist Intelligence Unit, 2010; Watson Wyatt Data Services / USD = 16. 908 CZK (www. cnb. cz 6 -19 -2011) 13. 19

Czech Republic Technology and Innovation Hub in the Heart of Europe Selected FDI / ICT Sector Source: Czech. Invest, 2011

Summary q Stable economic climate q Very good education system q Advanced domestic IT market q Financial support programmes q Attractiveness for investors