1. INVEST IN POLAND INVEST IN WARMIA AND MAZURY June 2015 www.InvestInWarmiaAndMazury.pl

2. LOCATION WARMIA AND MAZURY REGION

3. www.InvestInWarmiaAndMazury.pl WARMIŃSKO-MAZURSKIE VOIVODSHIP WARMIA AND MAZURY REGION OLSZTYN  Gdańsk 159 km  Warsaw 212 km Elbląg  Gdańsk 60 km  Kaliningrad 107 km Ełk  Białystok 105 km  Vilnius 257 km

4. www.InvestInWarmiaAndMazury.pl WARMIA AND MAZURY REGION 5 GOOD REASONS TO INVEST IN WARMIA AND MAZURY REGION UNIQUE NATURAL ENVIRONMENT PEOPLE INVESTMENT INCENTIVES ACCESS TO EASTERN MARKETS GROWING ECONOMY AND PRIORITY SECTORS

5. www.InvestInWarmiaAndMazury.pl WARMIA AND MAZURY REGION GOOD REASON TO INVEST IN WARMIA AND MAZURY REGION UNIQUE NATURAL ENVIRONMENT the basis for the development 4th voivodship in Poland in terms of the area (24.000 km2) Over 30% of the area covered with forests Over 3 000 lakes 2 200 certified ecological farms Good conditions for activity-based tourism all over the year Wide offer for business tourism Over 1 mln tourists a year 1 st

6. www.InvestInWarmiaAndMazury.pl WARMIA AND MAZURY REGION GOOD REASON TO INVEST IN WARMIA AND MAZURY REGION PEOPLE well qualified workers and the lowest labour costs 1,4 mln inhabitants 65% of people in productive age 21,6% of people seeking jobs, available for the employers 3 264,63 PLN – average gross salary, 20% lower than the country’s average 529 thousand working people over 39.000 students 2 nd

7. www.InvestInWarmiaAndMazury.pl WARMIA AND MAZURY REGION GOOD REASON TO INVEST IN WARMIA AND MAZURY REGION INVESTMENT INCENTIVES the highest public support in Poland and attractive investment locations over 250 investment offers available on the spot 2 special economic zones with 37 subzones 3 science and technology parks 9 clusters The highest level of public aid in Poland – from 50% to 70% of income tax exemption for the companies Possibility to apply for the EU funds and loans at preferential terms 3 rd

8. www.InvestInWarmiaAndMazury.pl WARMIA AND MAZURY REGION GOOD REASON TO INVEST IN WARMIA AND MAZURY REGION ACCESS TO EASTERN MARKETS 208 km of the external border of EU with Russian Federation 80 km from Olsztyn to Kaliningrad Oblast (Russia), 277 km to the border with Belarus, 476 km to the border with Ukraine Local border traffic (Poland - Russia) Seaport in Elbląg 9 border crossings 4 th

9. www.InvestInWarmiaAndMazury.pl WARMIA AND MAZURY REGION GOOD REASON TO INVEST IN WARMIA AND MAZURY REGION GROWING ECONOMY AND PRIORITY SECTORS 41,6 mld PLN – gross domestic products in the region 28 635 PLN – gross domestic product per citizen 3,6% - increase of GDP between 2010 and 2013 1,1 thousand companies producing furniture – the highest ratio in the EU 1,1 thousand companies deal with forestry and wood acquisition – 7th place in the EU Priority sectors in Warmia and Mazury: wood and furniture, agri-food production, machines and devices production (including yachts and boats), tourism (including medical and business tourism) 26.000 small and medium farms offering natural, traditional and ecological food based on their own products – the highest ratio in Eastern Poland 5 th

10. www.InvestInWarmiaAndMazury.pl population - 1445,5 thousand people Available human capital – 19,7% January 2015 (Available human capital in Poland in January 2015 - 12%) number of people for one job offer – 55 people January 2015 average employment in the industry sector - 135 thousand people January 2015 average monthly salary in the industry sector – 3311,89 zł (1 euro = 4 zł; 827,97 euro) January 2015 - 20% lower than in Poland - 33% lower than in the Masovian Voivodship - 26% lower than in the Silesian Voivodship - 20% lower than in the Pomeranian Voivodship number of registered national economy entities – 123,2 thousand January 2015 Young society -15,6 % in pre-working age -71,6 % in working age Access to the qualified staff: More than 39 thousand higher education students, including 11 thousand technical faculties, over 21 thousand vocational school students and almost 9 thousand students of vocational secondary schools LABOUR MARKET IN WARMIA AND MAZURY REGION - BASIC DATA WARMIA AND MAZURY REGION

11. www.InvestInWarmiaAndMazury.pl the biggest higher education institution in the region Over 30 thousand students 17 Faculties 59 academic majors 22 PhD disciplines Main faculties:  Biofuel production technologies, Construction engineering, Mechanics, Bioengineering of animal production, Land-surveying, Farming, Environmental protection, IT, Economics, Law, Philology: English, German, Russian, Ukrainian Research centres: Research and Development Centre of Dairy Technology Research Centre of Eastern Europe Social Research Centre Research Centre of Organic and Traditional Food Nutri-Bio-Chemical Research Centre Centre of Innovative Diagnostic and Therapeutical Techniques UNIVERSITY OF WARMIA AND MAZURY IN OLSZTYN WARMIA AND MAZURY REGION University’s campus source: eholiday.pl

12. www.InvestInWarmiaAndMazury.pl THE MAP OF PUBLIC AID IN POLAND WARMIA AND MAZURY REGION Entrepreneurs investing in the SEZ area have a right to use an income tax relief within public aid on the level of:  70% of carried investment costs for small entrepreneurs  60% of carried investment costs for medium entrepreneurs  50% of carried investment costs for big entrepreneurs Relief on the basis of: new investment costs creation of new workplaces

13. www.InvestInWarmiaAndMazury.pl EXAMPLE OF CALCULATING THE AID IN SPECIAL ECONOMIC ZONES WARMIA AND MAZURY REGION Purchase of 1 ha of land200,000 Euro Buildings and structures2,000,000 Euro Equipment3,000,000 Euro Total investment’s costs5,200,000 Euro Enterprise size Exemption percentage Maximum amount of aid to be used Small70%3,640,000 Euro Medium60%3,120,000 Euro Large50 %2,600,000 Euro

14. www.InvestInWarmiaAndMazury.pl Warmia-Mazury Special Economic Zone, situated in the north-eastern region of Poland, covers the area of 1075 ha. In 2014, 71 entities were running business in 30 subzones in the area of warmińsko-mazurskie and mazowieckie voivodships. Altogether they have created 11119 new jobs in the zone and bore almost 5,5 billion PLN of investment expenditure. Suwalki Special Economic Zone consists of 7 modern industrial areas, two of which are located in Warmia and Mazury: Ełk and Gołdap (total area: 375,6334 ha). 90 companies operate in SSEZ. The entrepreneurs have invested over 2,1 billion PLN in production halls, machines and new technologies. The investors have created 7 303 jobs in SSEZ. SPECIAL ECONOMIC ZONES WARMIA AND MAZURY REGION

15. www.InvestInWarmiaAndMazury.pl technology transfer - specialized laboratories, assistance in obtaining funding, including EU funds, support for new innovative companies (business incubator), rent of office space and use of infrastructure and professional consultancy services, land for investments TECHNOLOGY PARKS IN WARMIA AND MAZURY WARMIA AND MAZURY REGION

16. www.InvestInWarmiaAndMazury.pl They have trusted us… WARMIA AND MAZURY REGION Chinese consortium WH Group Limited merged Smithfield Foods - American company which is the owner of the biggest meat plants in Poland, some of which are located in Warmia and Mazury region.

17. www.InvestInWarmiaAndMazury.pl „Searching for opportunities for development, increasing productivity and competitiveness of our company we found our way to Warmia and Mazury where during the last 5 years we have invested tens of millions of euros” Ikea Industry Division in Wielbark They have trusted us… WARMIA AND MAZURY REGION Source: kurier-ilawski.pl

18. www.InvestInWarmiaAndMazury.pl „In December 1995 Michelin Group decided to buy majority of shares of Olsztyn’s tire factory. This is how Michelin became a strategic partner and a large scale investor.” Michelin Polska They have trusted us… WARMIA AND MAZURY REGION

19. www.InvestInWarmiaAndMazury.pl „Indykpol has been working with University of Warmia and Mazury in Olsztyn for many years. A vast majority of engineering staff working in Indykpol are the graduates of regional University.” Indykpol S. A. They have trusted us… WARMIA AND MAZURY REGION

20. www.InvestInWarmiaAndMazury.pl JOIN THEM… WARMIA AND MAZURY REGION

21. www.InvestInWarmiaAndMazury.pl Interested? Need more information? CONTACT US: Warmia and Mazury Investor Assistance Centre Certified partner of Polish Information and Foreign Investment Agency 2014-2016 www.InvestInWarmiaAndMazury.pl office@investinwarmiaandmazury.pl WARMIA AND MAZURY REGION

22. Thank you Warmia and Mazury Regional Development Agency in Olsztyn Katarzyna Maria Bartnik k.bartnik@wmarr.olsztyn.pl www.InvestInWarmiaAndMazury.pl