1. POLSKA AGENCJA INFORMACJI I INWESTYCJI ZAGRANICZNYCH Poland Investment Opportunities

2. Poland – key facts Territory:312 700 km 2 – 6 th place in the EU Population:38.1 m. – 6 th place in the EU Currency:PLN (1 EUR ~ 4.19 PLN) GDP in 2011:1 525 bn PLN (ca. 370 bn. EUR ~4.12 EUR/PLN) Membership:EU, NATO, OECD, WTO, Schengen Zone

3. ES 0,4% PT -1,6% FR 1,7% BE 1,8% NL 1,0% DE 3,0% EE 8,3% LV 5,5% LT 5,9% IT 0,4% TR 8,5% HU 1,6% AT 2,7% RO 2,2% SK 3,2% FI 2,8% SE 3,7% UK 0,9% GR -7,1% DK 1,1% BG 1,7% IR 1,4% CZ 1,9% NO 1,2% PL PL+4,3%* Real GDP changes in 2011 Source: Eurostat. 2009 Poland was the only economy in the EU with positive growth 2010 Poland was the third fastest growing economy in the EU 2011 Polish economy was growing twice faster than EU average 2012 Poland is expected to grow by 2,4%, EU average is -0,3% (Europ. Commision)

4. European Commission Economic Forecast Autumn 2012 Previous growth expectations were reduced, but Poland still maintains relatively fast pace of economic growth Source: European Commission, November 2012. Real GDP growth (%) 201220132014 EU27-0,30,41,6 Eurozone-0,40,11,4 Germany0,8 2,0 Poland 2,4 (2,0*) 1,82,6 Czech Republic-1,30,82,0 Slovak Republic2,62,03,0 Hungary-1,20,31,3 Bulgaria0,81,42,0 Romania0,82,22,7 ()* Actual performing according to the Central Statistical Office

5. Unemployment rate in 2012 Unemployment in EU27: 10.7% Eurozone: 11.8%, Poland: 10.6% Unemployment in EU27: 10.7% Eurozone: 11.8%, Poland: 10.6% Source: Eurostat, November 2012 or latest available data.

6. Source: UNCTAD, World Investment Prospects Survey 2009-2011, World Investment Report 2012.  Stable economic situation  Market growth  Size of internal market  Access to regional markets  Cooperation with suppliers and business  System of investment incentives Poland is among 15 most attractive investment locations in the world Effectiveness in utilizing FDI appraised as “above expectations” Main advantages of Poland

7. EY European Attractiveness Survey Poland – the 2 nd most attractive country in Europe for FDI in the next 3 years

8. Poland in Financial Times FDI quality in industrial processing sector Source: Financial Times/ FDI Intelligence. Poland– 3 rd place in the World, 1st in Europe

9. 9 In the next 7 years emerging markets are expected to be be reposponsible for over 50% of global GDP Source: Fortresses and Footholds: Emerging market growth strategies, practices and outlook, Deloitte, January 2012 r. Poland – biggest opportunities of income increase 45% of transnational corporations that invest in developing countries point Poland as a location that offers the biggest opportunities of income increase in 3-year perspective Poland takes the 2 nd place in Eastern Europe (after Russia)

10. One organisation may be wrong, but a few of them must be right 6 th place globally in most attractive FDI destinations ranking UNCTAD 3 rd place globally in quality of processing industry Financial Times 2 nd place in Europe in a group of the most attractive countries in the next 3 years Ernst & Young Poland – on top of statistics

11. Poland is one of the fastest developing countries: 5 th in the World, 1 st in Europe. Source: The Economist 2011.

12. Source: CB Richard Ellis, September 2011. TOP 15 CITIES

13. Poland is 3 rd location worldwide for business services Source: The Hackett Group, April, 2012. Poland is on the 3 rd place worldwide on the shortlist destinations of companies searching for the best location for  financial,  accounting  advisory centers. Poland is on the 3 rd place worldwide on the shortlist destinations of companies searching for the best location for  financial,  accounting  advisory centers.

15. Manufacturing According to Deloitte Poland is 2nd in Europe in manufacturing competitiveness According to Deloitte Poland is 2nd in Europe in manufacturing competitiveness Source: Deloitte, 2013 Global Manufacturing Competitiveness Index. Index value (maximum = 10). Numbers in brackets indicate position in ranking of 38 countries

16. Information and Communications Technology ICT Development Index: Poland 31st of 155 countries in ICT availability, usage and skills ICT Development Index: Poland 31st of 155 countries in ICT availability, usage and skills Source: United Nations International Telecommunication Union (ITU), 2012 Measuring the Information Society Index value (higher score = higher ICT development). Numbers in brackets indicate position in ranking

17. The lowest corruption in the region Transparency International: Poland has the lowest corruption among CEE countries Source: Transparency International, 2012 Corruption Perceptions Index Index value (higher score = less corruption). Numbers in brackets indicate position in ranking of 176 countries

18. „Poland is one of the world's few success stories since the fall of the Soviet bloc, a development that is particularly noticeable in comparison with other countries in Eastern Europe. Statistics show that hardly anyone in Europe works as much per year as the Poles, and that they are also happier on average than other Europeans.” Der Spiegel, (May 2012) The Miracle Next Door. Poland Emerges as a Central European Powerhouse „Poland is the most striking recent economic success story in the EU. It is the only country not to have fallen into recession in 2009 and is pegged to have the fastest GDP growth in the union this year, while the government of premier Donald Tusk enjoys a rare political stability, embarking on its second term of office. ” Financial Times (June 2012) Euro 2012 to highlight Poland’s success Poland – A Success Story

19. „Poland is the South Korea of Europe – its economy moves faster than the German locomotive.” La Repubblica (June 2012) · Poland – A Success Story „Poland remains, despite the crisis, the champion of economic growth. The state budget has doubled in the last decade, the country was well governed.” Die Welt (June 2012), Wunderkind Polen „Poland is already the champion of Europe - in terms of economic growth. An estimated GDP growth for 2011 was revised upwards by Brussels (to 4.3%) and is nearly three times bigger than the average of 27 (1.5 %). What saved the Polish growth during the 2009 crisis is that it is driven by strong domestic demand (population of 38 million).” Le Figaro (March 2012) La Pologne, championne européenne de la croissance

20. Investment Climate – PAIiIZ’s & Pentor research The investment climate was given a grade 3.6 – 2nd best in history (scale 1-5max) Entrepreneurs appreciate foremost: Market size (4.2 point), Political stability (4.1 point), Labour force availability (4.0). The investment climate was given a grade 3.6 – 2nd best in history (scale 1-5max) Entrepreneurs appreciate foremost: Market size (4.2 point), Political stability (4.1 point), Labour force availability (4.0). Big companies (>250 employees) perform pretty well: 51% recorded export increase, only 6,0% decline, 75% had a turnover increase, 87% companies plan either to increase or sustain the employment at a current level. Big companies (>250 employees) perform pretty well: 51% recorded export increase, only 6,0% decline, 75% had a turnover increase, 87% companies plan either to increase or sustain the employment at a current level.

21. Ca. 90 thousand projects have received support of EUR 14,2 bn. Certified payment application constituted 105% of allocations EU funding Support areas

22. Transportation 779 km built/reconstructed expressways 4 236 km built/reconstructed national and local roads 635 km built/reconstructed railways Transportation 779 km built/reconstructed expressways 4 236 km built/reconstructed national and local roads 635 km built/reconstructed railways European funding What have we reached? Examples Ecology 13 000 km built/reconstructed sewerage, 5 700 km built/reconstructed water supply pipelines 275 built/reconstructed city water pipelines 1 729 built/reconstructed home wastewater treatment plants Development of human capital 2,7 mln people (incl. 1,6 mln women) has received supprot from ESF Development of human capital 2,7 mln people (incl. 1,6 mln women) has received supprot from ESF Entrepreneurship and innovations 2 799 of SME received support for new implemented investments 17 science parks have received support

23. European funding Absorption of European funding (mln EUR) Poland and EU member states

24. Human Resources Źródło: EIU, Eurostat. Main university centres Szczecin Tricity Warsaw Poznan Wroclaw Cracow Lodz Students in given EU countries 20 million of talented young people, who speak foreign languages 2 mln students, over 400 000 graduates every year 87% of students speak foreign languages 50% of population is younger than 35 yrs. (in the group between 20 and 29 y.o. 1/3 studies) there are 460 of higher education institutions in Poland

25. Foreign language capability by age groups Source: CBOS Survey Foreign language capability among students Learning of foreign languages is obligatory in the Polish education system English is the most popular foreign language in Poland Source: Randstad. Children learn foreign languages from the age of 6 Language proficiency is one of the strongest points for Poland as a BPO center Human Resources

26. Size of the market Markets served: Internal market of 38 mn people Unlimited access to the EU market Strong relations with CIS area and Balkan states radius 1000 km 250 mln people radius 2000 km 550 mln people Stable economy: GDP growth in Poland 3.9% in 2010, 4.3% in 2011 Main growth factors: domestic demand and foreign trade

27. I.CIT exemption in Special Economic Zone only available in Special Economic Zone (SEZ) II.Government grants through individual negotiations individually approved and granted by the Ministry of the Economy based on the Council of Ministers’ Resolution III.Real estate tax exemption subject to negotiation with the local authorities only in case if the investor is the owner of the building (provided by the Commune Council) IV.Cash grants available through EU Funds subject to negotiation with different managing institutions depending on the investment project key parameters State aid All above presented instruments can be combined together however the total amount of state aid cannot exceed the maximum aid intensity

28. State aid Special Economic Zones  Special Economic Zone (SEZ) is an area dedicated specifically for investors where they can receive special benefits  Major purpose of SEZ is to support local growth  There are 14 SEZ + many subzones  Cumulative area = 20 000 hectares  SEZ will operate at least until 2020  Permits to conduct activities in SEZ are issued by the authorities of each SEZ  Minimum investment: EUR 100,000  Possibility of including the land selected by an investor into SEZ  Special Economic Zone (SEZ) is an area dedicated specifically for investors where they can receive special benefits  Major purpose of SEZ is to support local growth  There are 14 SEZ + many subzones  Cumulative area = 20 000 hectares  SEZ will operate at least until 2020  Permits to conduct activities in SEZ are issued by the authorities of each SEZ  Minimum investment: EUR 100,000  Possibility of including the land selected by an investor into SEZ Benefits from obtaining a permit to conduct activities in SEZ:  eligibility for income tax exemption – a form of regional aid  plot of land prepared specifically for an investment project at a competitive price  free assistance in dealing with formalities relating to the investment project Benefits from obtaining a permit to conduct activities in SEZ:  eligibility for income tax exemption – a form of regional aid  plot of land prepared specifically for an investment project at a competitive price  free assistance in dealing with formalities relating to the investment project

29. Corporate Income Tax (CIT) rate: 19% Personal Income Tax (PIT) rates: 18% & 32% Value added tax (VAT) basic rate : 23% reduced rates : 8%, 5% export rate : 0% Social Security Tax paid by employer between 17.48% and 20.41% Tax rates

30. In the first half of 2012 the number of foreign direct investment projects initiated globally dropped by 23 percent. Poland was an exception to the trend, seeing FDI grow, attracting 155 projects worth a total of $823 million and creating 5,100 jobs. In the first half of 2012 the number of foreign direct investment projects initiated globally dropped by 23 percent. Poland was an exception to the trend, seeing FDI grow, attracting 155 projects worth a total of $823 million and creating 5,100 jobs. Poland – greenfield projects According to fDi data, through the end of September 219 FDI projects worth close to $1.5 billion had created 8,300 jobs in Poland. That is more jobs created than in the whole of 2011. According to fDi data, through the end of September 219 FDI projects worth close to $1.5 billion had created 8,300 jobs in Poland. That is more jobs created than in the whole of 2011.

31. Why Poland? Availability of skilled human resources Economic and political stability Effective incentive system including EU-Funding Strategic location – gateway to the EU

32. 00-585 Warszawa, ul. Bagatela 12 tel. (+48 22) 334 98 00, fax (+48 22) 334 99 99 e-mail: post@paiz.gov.pl Thank you for your attention