1. Business Environment in Baltic States Mindaugas Valuckas Member of the Board Hanner AB Riga, 10/14/2011

2. About Hanner Invests in CEE region: Lithuania, Latvia, Romania, Ukraine, Russia and Belarus Starts new investments in Germany and Scandinavia Completed 20 RE projects Did 3 private equity investments

3. Veikla 3 Baltic states makes less than 0.5% of total EU GDP Less than 1.5% of total EU population lives in Baltics How to compete with big nations?

4. Market Huge stable Small volatile Big volatile West vsBaltics vs East Bank lending Reasonable Good / Acceptable Nearly impossible

5. West vsBaltics vs East Legal System Mature and clear Well advanced Very weak

6. West vsBaltics vs East Work force Professional Qualified Inefficient Expensive Reasonable Cheap

7. West vsBaltics vs East Corruption Virtually zero Moderate Uncontrolabe

8. West vsBaltics vs East Bureaucracy Cooperative Improving Unreasonable

9. Conclusion Baltics are on a good way in improving business environment, but there still long way to go