1. POLSKA AGENCJA INFORMACJI I INWESTYCJI ZAGRANICZNYCH Sławomir Majman PAIiIZ President Why Poland blossomed

2. Poland – key facts Territory:312 700 km 2 – 6 th place in the EU Population:38.1 mn. – 6 th place in the EU Currency:Polski Złoty (1 EUR ~ 4.19 PLN) GDP in 2010:1 415 bln PLN (ca. 354 bln EUR ~3.99 EUR/PLN) GDP growth: 1.6% (2009), 3.9% (2010), 4.3% (2011) Membership:EU, NATO, OECD, WTO, Schengen Zone

3. ES -0,1% PT 1,4% FR 1,6% BE 2,1% NL 1,8% DE 3,6% EE 3,1% LV -0,3% LT 1,3% IT 1,3% TR 7,5% HU 1,2% AT 2,0% RO -1,3% SK 4,0% FI 3,1% SE 5,5% UK 1,3% GR -4,5% DK 2,1% BG 0,2% IR -1,0% CZ 2,4% NO 0,4% PL PL+4,3%* GDP changes in 2010 (Poland in 2011) Source: Eurostat. 2009 Poland was the only economy in the EU with growing 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 develop at the fastest pace in Europe (Europ. Commision) *Data for 2011.

4. Source: UNCTAD, World Investment Prospects Survey 2009-2011. Main advantages of Poland Stable economic situation Market growth Size of internal market Access to regional markets Cooperation with suppliers and business System of investment incentives Poland is 6 th most attractive investment location in the world Strenghts: Image (I)

5. Source: World Investment Report 2011 Strenghts: Image (II) World Investment Report 2011 Most attractive countries for FDI location Poland is 6th most attractive investment location in the world

6. Strengths: Image (III) 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

7. 7 It is expected that emerging markets in next 7 years will be reposponsible for over 50% of global GDP Soruce: Fortresses and Footholds: Emerging market growth strategies, practices and outlook, Deloitte, Styczeń 2012 r. Strenghts: Image (IV) 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)

8. 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 3 rd place in Europe in terms of pace of growth jobs created due to FDI Ernst & Young Strenghts: Image (V)

9. Poland is one of the fastest developing countries: 5 th in the World, 1 st in Europe. Source: The Economist 2011. Strenghts: Image (VI)

10. Source: CB Richard Ellis, Wrzesień 2011. Strenghts: Image (VII)

11. Strenghts: Image (VIII) 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.

12. Strenghts: Image (IX)

13. Ca. 90 thousand projects have received support of EUR 14,2 bn. Certified payment application constituted 105% of allocations Strenghts: EU funding (I) Support areas

14. 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 Strenghts: European funding (II) 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

15. Strenghts: European funding (III) Absorption of europan funding (mln EUR) Poland and EU member states

16. Strenghts: Human Resources (I) 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 is 460 of higher education institutions in Poland

17. 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 Strenghts: Human Resources (II)

18. Strenghts: Human Resources (III) Attractiveness in terms of number of students Source: European Cities and Regions of the Future 2012/13, fDi Intelligence

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

20. 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 Leverages: State aid (I) All above presented instruments can be combined together however the total amount of state aid cannot exceed the maximum aid intensity

21. Leverages: State aid (II) Special Economic Zones  Special Economic Zone (SEZ) is an especially dedicated area where investors 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 for an investment project, available at a competitive price  free assistance in dealing with formalities relating to the investment project

22. 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

23. FDI Flow to Poland 2011: EUR 10.2 bn 52% increase over 2010 Źródło: Narodowy Bank Polski, luty 2012 r.

24. Source: PAIiIZ, 2011 PAIiIZ projects in 2011 Number of completed projects: 53 Estimated value: EUR 1 171 mn. New jobs: 10 284 Key sectors: BPO automotive electronics Main source countries: USA Japan France China In April, 2012 PAIiIZ cooperated with 150 investors

25. Projects served by PAIiIZ in 2010 & 2011 Source: PAIiIZ, February 2012.

26. Projects currently served by PAIiIZ Value: EUR 5.0 bn New work places: 34 576 Key sectors: BPO, R&D Automotive Machine Elektronics In April, 2012 PAIiIZ conducted 150 investment projects Major source countries of investors: USA (34 projects, EUR 789 mn.) UK (18 proj. EUR 575 m.) Germany (15 proj. EUR 212 m.) People’s Republic of China (9 proj. EUR203mn.) Source: PAIiIZ, April, 2012

27. Strengths: Poland’s export growth (bn EUR in 2011) 8.7 United Kingdom 35.4 Germany France 7.3 Italy 6.1Russia 8,3 Czech Republic 8.3 Źródło: Narodowy Bank Polski, Gazeta Wyborcza, luty 2012 r.

28. Despite turmoil in the global economy, global FDI inflows rose by 17% in 2011, to $1.5 trillion, surpassing their pre-crisis average. UNCTAD estimates that FDI flows will rise moderately in 2012, to around $1.6 trillion. Developing and transition economies continued to account for half of global FDI in 2011 as their inflows reached a new record high. Despite turmoil in the global economy, global FDI inflows rose by 17% in 2011, to $1.5 trillion, surpassing their pre-crisis average. UNCTAD estimates that FDI flows will rise moderately in 2012, to around $1.6 trillion. Developing and transition economies continued to account for half of global FDI in 2011 as their inflows reached a new record high. Source: UNCTAD, January, 2012. Global FDI inflows (USD Billions) Strength: FDI’s growth (I) Flash estimates for 2011

29. Strength: FDI’s growth (II) Flash estimates for 2011 UNCTAD: FDI inflow to Poland increased to USD 14.2 bn in 2011, from USD 9.7 bn in 2010, that means 46.7% increase. UNCTAD: FDI inflow to Poland increased to USD 14.2 bn in 2011, from USD 9.7 bn in 2010, that means 46.7% increase. Source: UNCTAD, January, 2012. NBP: FDI inflow increased to EUR 10.2 bn in 2011, vs. EUR 6.7 bn in 2010, that means 52% increase. NBP: FDI inflow increased to EUR 10.2 bn in 2011, vs. EUR 6.7 bn in 2010, that means 52% increase.

30. +46.7% +17% Source: UNCTAD, January, 2012. World Poland * Estimates Strength: FDI’s growth (III) Flash estimates for 2011

31. Warsaw is one of the most atractive localizations for FDI in Europe PlaceCityCountry 1LondonUnited Kingdom 2ParisFrance 3ViennaAustria ……… 20PragueCzech Republic 21WarsawPoland 22BarcelonaSpain 23AntverpiaBelgium Warsaw third in the CEE region After Moscow (4th place) and Prague (20th place) Improvement by one position vs. former edition. Source: European Cities and Regions of the Future 2012/13, fDi Intelligence Strength: localizations (I)

32. Warsaw in the top of the European business friendly institutions PlaceCityCountry 1LondonUnited Kingdom 2MoscowRussia 3BrusselsBelgium 4WarsawPoland 5PragueCzech Republic 6ParisFrance 7CopenhagenDenmark 8StokholmSweden Source: European Cities and Regions of the Future 2012/13, fDi Intelligence Strength: localizations (II)

33. Top 10 region of the CEE region in terms of investment attractiveness PlaceCityCountry 1Woj. MałopolskiePoland 2Woj. OpolskiePoland 3Kraj ŚrodkowoczeskiCzech R. 4Kraj PilzneńskiCzechy R. 5PardubiceCzechy R. 6Aglomeracja ŚląskaPoland 7ZaporożeUkraine 8Obwód Stara ZagoraBulgaria 9Region TuapsińskiRussia 10Woj. WielkopolskiePoland Źródło: European Cities and Regions of the Future 2012/13, fDi Intelligence Strength: localizations (III)

34. Top 10 cities in the CEE region in terms of attractiveness Źródło: European Cities and Regions of the Future 2012/13, fDi Intelligence PlaceCityCountry 1Katowice Poland 2Kraków Poland 3 4Lwów Ukraine 5Brno Czech Republic 6Warszawa Poland 7Ostrawa Czech Republic 8Poznań Poland 9Cheb Czech Republic 10MoskwaRussia Strength: localizations (IV)

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

36. 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