2. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Kosovo – Basic Facts Area:10,887 km 2 Population:1.8 million Capital:Prishtina (population 400K) Main Ethnic Groups:Albanian 90%, Serb 5%, others 5% Diaspora:Approximately 800,000 live abroad Languages:Albanian, Serbian and English Currency:Euro GDP 2010: €4.2 billion (€ 2,320 per capita) Major Markets:EU, CEFTA Borders with:Albania, Macedonia, Montenegro and Serbia

3. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry GDP growth 2006 – 2011 (in EUR) 4.0% 5.0% 5.4% 3.8% 4.6% 5.3%

4. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry FDI growth 2006 – 2011 (in mm EUR) 4.0% 65.4% -16.8% -22.0% 28.0% 8.0%

5. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry FDI 2007 – 2011 by Country (in mm EUR)

6. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry FDI 2011 by Sectors (as % of total FDI)

7. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Why invest in Kosovo?

8. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Liberal Trade Regime CEFTA 2007 Central European Free Trade Agreement Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Moldova, Montenegro, Serbia Population: 32 million GDP (2009): €180 billion Autonomous Trade Preferences with the European Union Unlimited duty-free access to the EU market, renewed 2011-2015 Generalized System of Preferences with the US Preferential duty-free entry for about 4,800 products Trade Preferences with: Japan & Norway

9. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry A Good Strategic Location Regional Center Distance from Prishtina (km) Skopje 85 Sofia 270 Thessaloniki (port city) 315 Tirana 260 Durres (port city) 260 Shengjin Port 230 Belgrade 360 Sarajevo 390 Bar (port city) 350 Vienna 930 Budapest 732

10. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Youngest Population in Europe Average age – 27 years old 15,000 new university graduates every year (70,000 students) University of Prishtina operates under bologna system Several American and British Universities English and German Languages are widely used

11. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Very Low Taxes and Wages Corporate profit tax: 10% Income tax 0 -10 % (Progressive) €0 – 80 = 0% €80 – 240 = 4% €240 – 450 = 8% €450+ = 10% Mandatory pension contribution: 5% Value Added Tax: 16 % Customs: 0% import tariff on some raw materials and a range of capital and intermediary goods. Average Wage: 280 EUR/month

12. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Legislation and Agreements Legal system completely re-built since 1999, largely EU- compatible Law on Foreign Investments requires equal treatment for foreign and domestic investors Bilateral Agreements on Investment Protection and Promotion: Protection and Security, Free Transfer of Funds, Free Repatriation of Profits and Dividends, Protection against Retroactive Application of Laws, Protection against Expropriation

13. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Business Environment in Kosovo Euro – official currency Over 60,000 active SMEs Sound banking system Free Land for Foreign Investors Improving Business Environment reforms in place Business Registration in one day Chartered Capital is zero Municipality Permit is eliminated Administrative Procedures for export and import are reduced by 70% 50% of oil related licenses and many other licenses have been eliminated New Fiscal Package

14. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Economic Stability Kosovo has the lowest level of debt in Europe, mainly due to its conservative fiscal policy Source: Economist, IMF Sovereign Debt as % of GDP in 2011

15. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Good Investment Opportunities First Core Target Sectors Business Process Outsourcing (BPO) Automotive Components Electronic Components (EMS) – Electronic Manufacturing Services Agribusiness – Food Processing and Packaging Second Core Target Sectors Mining and Energy Wood and Metal Processing Decorative Stone Tourism – New Brezovica Ski Resort Construction Textile

16. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Good Investment Opportunities - PTK Privatization of the Post and Telecommunication of Kosovo (PTK)  Low market penetration that allows for significant growth  Company is debt-free and owns 70% of market share in mobile and 94.5% in fixed telephony  High profitability  Revenue of EUR 161 million  EBITDA margin of 46% in 2011 or about EUR 74 million  Net profit of EUR 48 million  Modern technical infrastructure  Lazard Freres and Raiffeisen Investment selected as transaction advisor

17. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Good Investment Opportunities Industrial Battery Factory L.L.C. Located in Industrial Zone of Peja town on around 14.18 hectares with road and rail access and a factory floor area of 18,900 m2 Two production lines. Machines and tools in good working order. Currently underutilized. Dedicated willing workforce with technical know-how Hotel Onix Banja e Pejes and Health Spa L.L.C Situated on 26 hectares of land with built up floor area of 38,000 m² in 4 hotels and other facilities Unique water spring mineral composition and disease treatment on the West Balkans Opportunity to develop the Spa as a country club and Health Spa with restaurants, sports centres and swimming pool

18. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Survey: Investing in Kosovo - Advantages

19. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry Why Budapest It has a strategic location, in the very heart of Europe Offers rich networking opportunities Over 130 foreign companies in Hungary, 69% of them had a regional center, and 44% had already in Budapest

20. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry How can the Embassy of the Republic of Kosovo in Hungary help you? Provide comprehensive information on relevant actors involved in promotion of investments Facilitate visits and meetings with relevant actors in involved in promotion of investments, and with businesses in Kosovo Contact: Embassy of the Republic of Kosovo in Hungary Szabadsag ter 7, 1054 Bp. Tel. +36 1 688 7872 Fax. +36 1 688 787 Contact person: Mr. Delfin Pllana, Minister-Counselor

21. Investment Promotion Agency of Kosovo Government of the Republic of Kosovo Ministry of Trade & Industry THANK YOU FOR YOUR ATTENTION!