1. Title:Romania business outlook For:VOKA – Chamber of Commerce & Industry Mechelen Prepared by: Larive Romania Date: April 2015 Your partner in emerging markets www.larive.com www.larive.ro

2. Contents Chapter Romania Business Outlook 2015 I Public I © Larive Romania | 2 Romania Business Outlook 1 Belgium companies in Romania2 Tips and Tricks for doing business in Romania 3

3. 2015 Romania Business outlook Turnover growth rate in 2015 – survey on 200 Romanian CEO’s 48% of respondents foresee a significant growth of +10 to +31% for their company’s turnover in 2015 compared with only 28% in 2014, while 26% expect a growth rate of +5 to +10% in 2015, compared with 30% at the beginning of 2014. Turnover growth rate in 2015 +10 to +31% (48%) +5 to + 10% (26%) TURNOVER GROWTH (%)-5 to -10%-1 to -5%0%+1 to +5%+5 to +10%+10 to +20%+20 to +30%Over +31% INDUSTRY % of total respondents Industry / Manufacturing2132375 Services44131738174 Construction / Real Estate92818 9 Power & Energy102030 10 Information Technology (IT)20304010 Retail & Wholesale Trade2030 10 Food, Beverages, Agriculture20 60 Transportation6040 Pharmaceuticals / Healthcare7525 Telecom50 Soruce: EY Romania Business outlook survey 2015 Romania Business Outlook 2015 I Public I © Larive Romania | 3

4. 2015 Romania Business outlook Profit growth rate in 2015 – survey on 200 Romanian CEO’s PROFIT GROWTH (%)-5 to -10%-1 to -5%0%+1 to +5%+5 to +10%+10 to +20%+20 to +30%Over +31% INDUSTRY % of total respondents Industry / Manufacturing1153721115 Services417 21 174 Construction / Real Estate1093791827 Power & Energy4050 Information Technology (IT)30 Retail & Wholesale Trade20 4020 Food, Beverages, Agriculture204020 Transportation40 20 Pharmaceuticals / Healthcare25 50 Telecom5025 Soruce: EY Romania Business outlook survey 2015 25% of the respondents expect the profit growth rate of their company to range between +5 to +10% in 2015 compared with 21% in 2014, and a slightly higher percentage of 34% in 2015 vs. 33% in 2014 expect the profit of their company to grow between +10 to +31%. Profit growth rate in 2015 +5 to +10% (25%) +10 to + 31% (34%) Romania Business Outlook 2015 I Public I © Larive Romania | 4

5. 2015 Romania Business outlook Forsee investments growth in 2015 – survey on 200 Romanian CEO’s FORSEE INV. GROWTH (%)-5 to -10%-1 to -5%0%+1 to +5%+5 to +10%+10 to +20%+20 to +30%Over +31% INDUSTRY % of total respondents Industry / Manufacturing613 2515139 Services1033241410 Construction / Real Estate22332311 Power & Energy1112113322 Information Technology (IT)20 301020 Retail & Wholesale Trade25 50 Food, Beverages, Agriculture20 40 Transportation25 Pharmaceuticals / Healthcare5025 Telecom6733 Soruce: EY Romania Business outlook survey 2015 23% of respondents say they have earmarked growth rates for their investments of 5% to 10% in 2015, followed by 19% who say they will increase investments by 10% to 20% in 2015, and 17% who foresee their investments to go up from 20% to +31% in the next 12 months. Foresee investments increase rate in 2015 +5 to +10% (23%) +10 to + 20% (19%) +20 to 31% (17%) Romania Business Outlook 2015 I Public I © Larive Romania | 5

6. 2015 Romania Business outlook No. of employees growth in 2015 – survey on 200 Romanian CEO’s PROJECT SOUTH – TEASER I Confidential I © Larive Romania | 6 No. of employees GROWTH (%)-5 to -10%-1 to -5%0%+1 to +5%+5 to +10%+10 to +20%+20 to +30%Over +31% INDUSTRY % of total respondents Industry / Manufacturing1163322 Services11 26 215 Construction / Real Estate113311 22 Power & Energy22442211 Information Technology (IT)22332211 Retail & Wholesale Trade7525 Food, Beverages, Agriculture25 50 Transportation100 Pharmaceuticals / Healthcare7525 Telecom6733 Soruce: EY Romania Business outlook survey 2015 Only 19% of respondents expect no increase in the employees number in 2015, down from 37% in early 2014. The good news is that at the beginning of 2015, 21% of respondents say they expect the number of employees in their company to grow between +10% to +31%, compared to only 14% in 2014. No. of employees growth rate in 2015 +10 to +31% (21%) +0% (19%)

7. 2015 Romania Business outlook Salaries forseen evolution 2015 – survey on 200 Romanian CEO’s No. of employees GROWTH (%)-5 to -10%-1 to -5%0%+1 to +5%+5 to +10%+10 to +20%Over +20% INDUSTRY % of total respondents Industry / Manufacturing663265 Services45103824145 Construction / Real Estate10602010 Power & Energy10 6020 Information Technology (IT)305020 Retail & Wholesale Trade50 Food, Beverages, Agriculture7525 Transportation100 Pharmaceuticals / Healthcare50 Telecom6733 Soruce: EY Romania Business outlook survey 2015 At the beginning of 2015, 6% of respondents say salaries in their companies are expected to go up between 10% to 20%, compared to 2% in 2014. Another important difference is in the bracket “5% to 10%”, which has gone up from 19% in 2014 to 30% in 2015. No salary increase in their company for that year: from 42% in 2013, to 19% in 2014, and to 10% in 2015. Salaries evolution in 2015 +10 to +20% (6%) +5 to +10% (30%) +0% (10%) Romania Business Outlook 2015 I Public I © Larive Romania | 7

8. Cost of salaries Source: Eurostat; *cover Wages and Salaries and non-wage costs (Employers’ social contributions plus taxes less subsidies) EMPLOYEES AVERAGE GROSS EARNINGS DEC. 2014 (EUR) Agriculture401Transport & Storage595 Industry607HORECA326 Construction435IT & Telecom1089 Wholesale & Retail515Financial Services1346 AVERAGE ECONOMY 576 Hourly Labor Costs* EU27 (EUR) 2013 2015 Romania Business outlook Romania Business Outlook 2015 I Public I © Larive Romania | 8 Source: Romania National Institute of Statistics

9. Attractive location – access to new markets 2015 Romania Business outlook Romania Business Outlook 2015 I Public I © Larive Romania | 9

10. Romania Business Outlook 1 Belgium companies in Romania2 Tips and Tricks for doing business in Romania 3 Contents Chapter Romania Business Outlook 2015 I Public I © Larive Romania | 10

11. Belgium Romania economic relations Belgium companies in Romania EUR millions201220132014 (7months) RO IMPORTS from BE1,1231,215749 RO EXPORTS to BE786933539 TOTAL1,9102,1491,288 RO TRADE BALANCE(337)(281)(210) Soruce: The Romanian Embasy in Belgium The value of exchanges between BE and RO increased three times during 2006-2014 period Over 80% of the economic exchanges are made by Flemish companies EUR 324.11 mil subscribed Belgium capital in Romania (Sept. 2014) 3,181 Belgium companies are registered in Romania (Sept. 2014) Belgium Foreign Direct Investments in Romania EUR 1.1 Billion Key investment area of Belgium companies: industry, services, retail, logistics, agriculture Romania Business Outlook 2015 I Public I © Larive Romania | 11

12. VCST – manufacturing ind. (gears and shafts for automotive) Belgium companies in Romania Established 2012 Turnover: EUR 7.8 mil (2014, est.) EUR 17.0 mil (2015, est.) Employees: 160 (2015) No. of plants: 1 Romania Business Outlook 2015 I Public I © Larive Romania | 12

13. WDP Romania – services (warehousing & logistics) Belgium companies in Romania Established 2007 Turnover: EUR 1.3 mil (2013) Est. assets value: EUR 26 mil New dev. plans for 2015 Romania Business Outlook 2015 I Public I © Larive Romania | 13

14. H.ESSERS – services (warehousing & logistics) Belgium companies in Romania Enters in RO in 2005, taking over Centrum Transport (NL) facilities in RO (int. group acquisition) 5 warehouses in RO (+100,000 sqm.) Over 270 trucks in RO Turnover: EUR 60 mil (2013,est.) Employees: 700 (2013, est.) Clients: FMCG, Pharma, Chemistry New warehouses dev. plans for next years Romania Business Outlook 2015 I Public I © Larive Romania | 14

15. GDM Electronics – manufacturing ind. (PCB, electronics) Belgium companies in Romania Enters in RO in 2001 Turnover: EUR 2.5 mil (2013) Employees: 190 (2013) In RO: PCB production & material management Romania Business Outlook 2015 I Public I © Larive Romania | 15

16. BMT Group – manufacturing ind. (gears, aerospace, glass) Belgium companies in Romania 1998, EUR 27.1 mil, 441 employees 1999, EUR 11.1 mil, 237 employees 2001, EUR 7.0 mil, 167 employees 1998, EUR 7.8 mil, 171 employees EUR 53 mil (2013) footprint in RO Romania Business Outlook 2015 I Public I © Larive Romania | 16

17. VPK Packaging – manufacturing ind. (corrugated board) Belgium companies in Romania Enters in RO in 2007 (greenfiled) EUR 15 mil investment (15,600 sqm. factory) 30,000 tons production capacity Turnover: EUR 18.1 millions Employees: 190 Romania Business Outlook 2015 I Public I © Larive Romania | 17

18. Romania Business Outlook 1 Belgium companies in Romania2 Tips and Tricks for doing business in Romania 3 Contents Chapter Romania Business Outlook 2015 I Public I © Larive Romania | 18

19. Tips and Tricks Tips and Tricks for doing business in Romania Research your potential business partner carefully For initial approach, one may better involve a native Romanian speaker Romanian business people value personal relationships and trust is the main ingredient Romanian business people likes formal approaches Doing business in Romania is about relationships – better have a trustful partner Be patient when starting new business relationship, show good faith and prove trustworthy Romanian business culture is quite strict about hierarchies Romania Business Outlook 2015 I Public I © Larive Romania | 19

20. Business etiquette in Romania Tips and Tricks for doing business in Romania Always start with a formal attitude and approach when first meeting businesspeople in Romania Honesty and directness is appreciated and valued by Romanians Do make an appointment 1-2 weeks in advance and avoid scheduling meetings in July and August, during the two weeks before and after Christmas and one week before and after Easter. Don’t be to direct, it can be percievd as rude Romanians are innovative, they have a broad imagination and are not fussy Be clear and concise Try to find out more about Romania culture and history Romania Business Outlook 2015 I Public I © Larive Romania | 20

21. Larive Romania and Tryggr & Flemming With compliments from Romania Romania Business Outlook 2015 I Public I © Larive Romania | 21 Daniel IONESCU Managing Partner LARIVE ROMANIA +40 722 229 330 daniel.ionescu@larive.ro www.larive.ro THANK YOU ! For more information & guidance about Romania please contact Jan MARYNISSEN Partner Tryggr & Flemming +32 (0) 475/33 23 73 jan.marynissen@t-f.be www.tryggr-flemming.com

22. Disclaimer This presentation has been executed by Larive Romania based on public information and has only a general information purpose. Larive Romania offers no warranty, expressed or implied, as to the accuracy or completeness of the information contained herein, and shall have no liability for the informatiton contained in, or for the accuracy, reability or completeness of scuh information, or any omissions. Romania Business Outlook 2015 I Public I © Larive Romania | 22

23. DN – Agrar Group – Investment Opportunity I Confidential I © Larive Romania | 3 Romania Larive Romania IBD SRL 5 Ion Slatineanu, App. 15, Sector 1, Bucharest, Romania www.larive.rowww.larive.ro and www.larive.comwww.larive.com Contact persons Daniel IONESCU – Managing Partner +40 722 229 330 daniel.ionescu@larive.ro Sorin BIVOLAN – Senior Manager +40 728 038 427 sorin.bivolan@larive.ro