1. SLOVAKIA Ideal Investment & Business Destination

2. Slovakia – Growing Heart of Europe
Establishment: 1st January 1993
Official name: Slovak Republic
Area (km2): 49,035
Population: 5,437,126
Capital: Bratislava
Member of: OECD, WTO, NATO, EU, Schengen area
Official currency: EURO
Official Language: Slovak
Government: Parliamentary democracy
Election term: 4 years
Neighbours: Austria, Czech Republic, Hungary, Poland, Ukraine
Time zone: GMT + 1hour
Aktualizované: 9/2010
Zdroj: prosím uviesť link
Source: SARIO, 2011 2

3. Macroeconomic Overview
GDP Prediction for 2011
EC %
OECD 3,6%
IMF 3,8 %
National Bank of SR 3,4 %
GDP Prediction for 2012
OECD ,4 %
GDP growth
2008
2009
2010
2011 1Q
2011 2Q
Real GDP growth
6,4%
-4,7% 4%
3,5%
3,3%
HICP Inflation
4,6%
1,6%
0,7%
3,4%
Unemployment
7,7%
11,4%
14,4%
13,9%
12,9%
Average monthly gross salary (€)
723
744,5
769
746
781
Aktualizované: 6/2011
Zdroj:
EU GDP growth:
Slovakia & Hungary GDP growth:
Prediction GDP 2010
EC:
OECD:
2011
NBS:
IMF:
MF SR:
Real GDP growth:
Labour productivity growth:
HICP Inflation:
Unemployment: Need to be calculated from each months statistic (2010 Q2 = 12,37)
Average monthly gross salary:
Source: International Monetary Fund, Eurostat,
Slovak Statistics Office, Central office of Labour, social affairs and family

4. (Sovereign foreign currency ratings)
Ratings & Outlook
COUNTRY RATINGS
(Sovereign foreign currency ratings)
SLOVAKIA
CZECH
REPUBLIC
HUNGARY
POLAND
BULGARIA
ROMANIA A+
positive
AA-
stable
BBB-
negative A-
BBB
BB+ A1
Baa3 A2
Stable A
BBB+
OECD
Country risk 2 4
Aktualizované: 9/2011
Zdroj:
S&P:
Moody´s: after registration on
Fitch: after registration on
JCR:
R&I Now:
OECD Country risk:
Source: com, 4

5. 1st Rank in CEE in DOING BUSINESS 2012 !
Methodology
Starting a business
Construction permits
Registering property
Paying taxes
Enforcing contracts
Protecting investors
Aktualizované: 11/2010
The Doing Business project
provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level.
Closing business
Trading across borders
Getting credit
Source: World Bank Group – Doing Business Report 2012 5

6. Low Labour Cost & High Labour Productivity
Gross monthly salary
Slovakia reaches
the highest labor productivity
976 €
CZK
Czech Republic
806 €
3 224,98 PLN
Poland
769 €
Slovakia
760 €
HUF
Hungary
Labour productivity update: 8/2011
Aktualizované: 03/2011
Zdroj:
Czech Republic:
Poland:
Exactly: Tabl. 1 (część 2) -Q16
Hungary:
Slovakia:
Bulgaria:
Rumania:
Labour Productivity:
472 €
1936 RON
Romania
328 €
642 BGN
Bulgaria
GDP (in PPS) per hour worked as compared to EU15 (100) Source: Eurostat 2011
Data for 2010 Source: National Statistical offices of Czech republic, Hungary, Poland, Slovakia, Bulgaria, Romania
exchange rate (as of 23 March 2011)

7. € 1st January 2009 Member of the Eurozone
Slovakia joined the EURO Zone
EURO IMPLEMENTATION IMPACT:
Limitation of Foreign Exchange Risk
Lowering Transaction Costs
Growth in Foreign Trade
Increased Financial Stability
Aktualizované: 9/2010
Zdroj: prosím uviesť link
Source: SARIO, 2011

8. 19% Flat Tax Rate 19% 20% 0% 100% Simple and Fair Taxes
Corporate Income Tax
Personal Income Tax
Value Added Tax - VAT
Dividend tax
Inheritance and Gift Tax Real Estate Transfer Tax
Repatriation of profits
19%
20% 0%
100%
Source: SARIO 2011

9. in Unemployment Levels
Regional Differences
in Unemployment Levels
991 €
705 €
657 €
636 €
635 €
686 €
594 €
716 €
4,63%
8,17%
9,51%
11,76%
18,86%
10,86%
17,75%
16,78%
Source: Central Office of Labour, Social Affairs and Family, 2011

10. NEW Labor Code since Sept. 1st, 2011
NEW Labor Code since Sept. 1st, 2011!!! …more flexible, more motivating & business friendly!
3/6 months/ upon agreement - probation period
1/2/3 months – notice period depends on length of employment <1 / 1-5 / 5+ yrs
40 hours - Weekly working time + 30 min unpaid break
longer working times for Managers up to 56 hrs./agreement
Introducing “flexi account” of working time
+ 150 hours/year - Unpaid overtime can be ordered by the employer/ max. up to 400hrs.
+ 250 hours/year – Agreed overtime with employees in managerial positions/ max. 550hrs.
20 days/ 25 days after 15 years of work - Annual leave
5 weeks in case employee reaches 33 yrs. (January, 2012)
Reduction of Labor Unions Influence
Shorter period for recruitment ban; easier process of collective redundancies; work in night shift in 2 weeks in a row,…
Bonuses for: above the law overtime: 25% of hour wage and bank holidays: 50% of hour wage
Source: SARIO, 2011 10

11. Road Network Aktualizované: 9/2010
Zdroj:
Source: National Motorway Company, 2011 11

12. Aerospace Network Krakow (PL) 180 km Krakow (PL) 180 km
Prague
Prague
Prague
Brno (CZ) 120 km
Brno (CZ) 120 km
Prague
Vienna
Bratislava
Prague
Vienna
Bratislava
Prague
All major European cities
Sliač
All major European cities
Aktualizované: 9/2010
Zdroj:
Letisko Piešťany a.s. Je medzinárodné letisko. V súčasnosti slúži pre pravidelné medzinárodné charterové lety pre pacientov do/z piešťanských kúpeľov a nepravidelnú dopravu cestujúcich a carga.
Budapest (HU)
Vienna (AT)
All major European & World cities
All major European & World cities
Source: 12

13. Railway Infrastructure
Aktualizované: 9/2010
Zdroj: prosím uviesť link
Source: Ministry of Transport, Post and Telecommunications of the Slovak Republic, SARIO, 2011

14. TOP SECTORS OF THE SLOVAK ECONOMY
Automotive
1st in world car production in 2010
Electronics
Leading Slovak Exporter – driver of economic and technological growth
SSC/ICT
SR is becoming a hive of SSC and ICTs

15. Key Sector: Automotive
Car Production in Slovakia
Slovak automotive industry is well diversified, with three different types of car producers surrounded by well established automotive sub-supplier networks, all of which are effectively interconnected. The sector produces various categories of cars as Volkswagen’s Hybrid Touareg, Porsche Cayenne, Peugeot 207, Kia Sportage and Ceed.
Production of cars in Slovakia is continuously increasing. While in 2010 all 3 car producers produced almost cars, predictions for 2011 forcast growth at cars/years and in 2012 Slovakia should manufacture cars.
Wolkswagen has recently announced that also the next new generation of small family car VW UP! will be produced in Slovakia.
The corporation is at the moment considering production of their first electric car E-UP! and Slovakia is still in the game.
The development of the automotive industry in Slovakia and integration into the most important global automotive centres began in the early 1990s when German automotive company Volkswagen AG decided to construct a plant for car production near Bratislava. This important milestone helped to develop the Slovak economy after the end of markets of the former Council for Mutual Economic Assistance and the shutdown of armaments production in Slovakia. The creation of a supply chain started hand in hand with the arrival of Volkswagen in Slovakia, and thus further investments into the automotive industry rose in the supply sector. Slovakia had started a new path of development of industrial production, above all in the sectors of automotive and engineering.
Kórejská automobilka Kia Motors plánuje v prvom štvrťroku 2012 spustiť v závode pri Žiline tretiu zmenu. Zamestná tak tisíc nových pracovníkov.
"Tisíc ľudí zamestnáme priamo a ďalšie tri až štyri tisícky budú potrebovať naši dodávatelia," priblížil pre denník hovorca automobilky Dušan Dvořák. 
Automobilka spustí koncom budúceho roka sériovú výrobu nového modelu. "Počas leta tohto roka pripravovala Kia Motors Slovakia svoje výrobné linky na produkciu nového modelu Kia Venga, ktorý nahradí Hyundai ix35,“
Kia vyrobila v prvom polroku tohto roka na Slovensku vyše áut. V porovnaní s rovnakým obdobím minulého roka je to o štvrtinu viac.
1st Place in 2010
103/1000 inhabitants
in World Car Production/1000 inhabitants
Full Capacity of 3 automobile companies
1,000,000 cars/year
Source: SARIO 2011, Slovak Automotive Industry Association ZAP,VW, KIA, PSA-Peugeot 15

16. Three World Car Producers in Slovakia
established 1991
7.000 employees
VW plants: Bratislava,
Martin and Košice
established 2003
3.000 employees
PSA plant in Trnava
established 2004
1st production plant in EU
3.000 employees
KIA plant in Žilina, and 2nd
KIA engine plant is under
construction
Aktualizované: 9/2010
Zdroj: prosím uviesť link
Source: 16

17. Key Sector: Electronics
Assembly of Bravia models for the European market doubled in 2008 to 4mil.
3D TV from April 2010
Production of LCD 10 mil pcs.
Assembly of LCD
Logistic center
Europe service center
3D TV from February 2010
Aktualizované: 9/2010
Zdroj: prosím uviesť link
Production of LCD moduls
Only 1 in Europe
Headquarter for Europe
3000 new jobs
Investment 191,3 mil Eur
Source: SARIO, 2011

18. Map of SSCs & CCs Success Stories Top Destinations
Aktualizované: 9/2010
Zdroj: prosím uviesť link
Over 48 SSCs & CCs
…employing > professionals

19. Insight into Investment Incentives

20. Investment Incentives: ELIGIBLE PROJECTS
Industry
Shared Service Centers
R&D Centers
Tourism
New Amendment to the Act on Investment Aid
to aim at the less developed regions
to promote the high added value production
to support the small and medium enterprises
to emphasize indirect form of incentives
Since when? August 2011
Higher transparency & predictability - maximum volumes and forms of aid are exactly set for each district
More favorable conditions - lower requirements on minimal investment, lower share of technology
Faster approval procedure -setting shorter periods for authorities involved in procedure
More flexibility - possibility of reasonable changes during implementation
Long-term support - no limitation for support for further expansion
Higher efficiency for budget & greater motivation for companies - availability of 10 year tax relief

21. Investment Incentives: Aid is calculated from...
ELIGIBLE ARE COSTS OF:
LAND
BUILDINGS
NEW MACHINERY & TECHNOLOGY EQUIPMENT
LICENSES & PATENT RIGHTS OR
WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS

22. Investment Incentives: Forms & Intensity
INCOME TAX RELIEF up to 10 tax periods
- IN ALL DISTRICTS
CASH GRANT (paid ex post, based on annual costs report)
CONTRIBUTIONS ON NEW JOBS (paid ex post, based on annual costs report)
IN THE CASE OF INDUSTRY APPLICABLE ONLY IN DISTRICTS WITH HIGHER UNEMPLOYMENT
THE TOTAL AMOUNT IN ALL REQUESTED FORMS CANNOT EXCEED THE MAX. INTENSITY IN DISTRICT 20% - 50% OF THE ELIGIBLE COSTS.

23. MILESTONES WORKS ON PROJECT CAN START EVALUATION SARIO
DRAFT OF AID OFFER MoE
AID OFFER MoE
APPROVAL GOVERNMENT
30 days
10 days
20 days
30 days
30 days
SUBMISSION
TO MoE
STATEMENT MoE
EVALUATION MINISTRIES
ACCEPTANCE INVESTOR

24. Investment Incentives: Industrial Projects
Minimum investment
14 mil. / 7 mil. / 3.5 mil. EUR
out of that at least
7/3.5 /1.75 mil EUR to be covered by own equity
Eligible costs
land, buildings, machinery & other manufacturing equipment, licenses or patents
Machinery, technology
- at least 40%, 50% or 60% (depending on the unemployment rate) of the eligible costs
- new, not depreciated, not used before
Min. new jobs created
no limitation
Maximum incentives
up to 20%-50%
Aktualizované 10/2010

25. * Region Bratislava is excluded
Investment Incentives: INDUSTRY Min. Investment & Share of New Machinery TV VT KS RA RS PT LC VK SO KK SB PO GL LE BJ SK SP ML HE SV PP SN BR LM TS NO CA DK RK MT ZA KM BY PB PU IL TN TR BB ZV DT ZC BS KA LV NR ZM TO PE BN NM PN TT GA DS MA SE SA PK SC BA HC SL KE MY KN NZ PD ZH RV MI
14 mil EUR & 60%
7 mil EUR & 50%
3.5 mil EUR & 40%
* Region Bratislava is excluded

26. Investment Incentives: INDUSTRY - Max. Aid

27. Investment Incentives: Shared Service Centers
providing services with a high added value
employs qualified experts in
Software development center
Expert solution center
High-tech repair center
Customer support center
HQs of multinational corporations
Minimum investment
EUR
out of that at least
EUR to be covered by own equity
Eligible costs
land, buildings, technological equipment, software, licenses or patents
Min. new jobs created
no limitation
Other conditions
at least 30% employees with university education
Maximum incentives
up to 30% - 50%
(depends on further examination)
Aktualizované 10/2010

28. Investment Incentives: SSCs- Max. Aid
the same principle is applicable also for projects of TC a SSC
the difference is - comparing to industry - that here can be provided higher intensity of aid and also cash grant and contributions even in zones D and E

29. Investment Incentives: Technology Centers
Minimum investment
EUR
at least EUR to be covered by own equity
Eligible costs
land, buildings, machinery & other equipment, know-how, licenses or patents
Minimum newly created jobs
- no limitation
- at least 60% of newly created jobs for employees with university education
Maximum incentives
up to 30%-50% depending on the level of unemployment
Aktualizované 10/2010

30. Investment Incentives: Technology Center - Max. Aid
the same principle is applicable also for projects of TC a SSC
the difference is - comparing to industry - that here can be provided higher intensity of aid and also cash grant and contributions even in zones D and E

31. Investment Incentives: Tourism
Minimum investment
10 MIL. / 5 MIL. / 3 MIL. EUR
out of that at least
5 / 2.5 / 1.5 mil EUR to be covered by own equity
Eligible costs
land, buildings, machinery & other equipment, know-how, licenses or patents
Machinery, technology
- at least 20% or 40% (depending on the unemployment rate) of the eligible costs
- new, not depreciated, not used before
Maximum incentives
up to 30%-50% depending on the level of unemployment
Other conditions
Tourism Center Complex with Combination of more Services
Responsible institution
Minister of Transport,Construction and Regional Development of the Slovak Republic
Aktualizované 10/2010

32. * Region Bratislava is excluded
Investment Incentives: Tourism Min. Investment & Share of New Machinery TV VT KS RA RS PT LC VK SO KK SB PO GL LE BJ SK SP ML HE SV PP SN BR LM TS NO CA DK RK MT ZA KM BY PB PU IL TN TR BB ZV DT ZC BS KA LV NR ZM TO PE BN NM PN TT GA DS MA SE SA PK SC BA HC SL KE MY KN NZ PD ZH RV MI
10 mil EUR/40%
5 mil EUR/20%
3 mil EUR/20%
* Region Bratislava is excluded

33. State Aid Effectivity In the period 2002 – 2011:
109 approved investment project
41,057 number of newly created jobs
25% - average intensity of state aid
29,000 EUR – average intensity of state aid per 1 newly created job
Aktualizované 10/2010

34. Important facts Investment must be implemented within max. 36 months
Submission of investment plan before start of the work on project
Work on the project can start after the Ministry of Economy issues a preliminary statement (takes approx. 40 days)
The investor must meet his investment plan in all material aspects (especially amount and no. of newly created jobs)
The beneficiary of the aid is obliged to keep investment at least 5 years after completion of investment plan
Also newly created position must be maintained at least 5 years after their creation
Aktualizované 10/2010

35. Slovakia´s Success Stories
Aktualizované: 9/2010
Zdroj: prosím uviesť link
Source: SARIO, 2010

36. Small Country of Great Opportunities
Golf opportunities
Wellness
Visit the mysterious caves
Beautiful mountains
Skiing opportunities
Charming Castles
A place where history meets future
Rafting
Spa resorts
Aqua parks
Delicious Slovak Food
Aktualizované: 9/2010
Zdroj: prosím uviesť link
Source: SARIO, 2010 36 36

37. Začiatočný slide po skončení filmu - po spustení tohto slidu pôjde celá prezentácia automaticky
SARIO – Closer to You Strategy Key Focus New Services 18 October 2011, Košice 37

38. Foreign Direct Investment Structural Funds of the EU
SARIO Who We Are
Government Funded Organization
under the direction of the Slovak Ministry of Economy
MISSION EXECUTED THROUGH
3 CORE SECTIONS
Foreign Direct Investment
Foreign Trade
Structural Funds of the EU

39. SARIO Services Governmental Agency: Services Free of Charge
From providing
General services & information to all subjects interested in FDI in Slovakia
Tailor-made solutions for potential investors
exploring Slovakia such as
Best Location for Your Investment
Best Location for Your Expansions
Through
Assistence in STATE AID application process for investments into:
INDUSTRY
SHARED SERVICE CENTERS
R&D CENTERS
TOURISM
Support foreign trade via match-making & subcontracting To
AFTERCARE services - for established foreign companies
Governmental
Agency:
Services
Free of Charge 39

40. Business Development Department
Gateway for Investors
Broad network of cooperation partners
Promotion of Slovakia home & abroad
Latest developments in business environment:
Comprehensive investment package (tax, legal, HR, costs, …)
Investment incentives information
Sector & regional analyses
Assistance to incoming commercial & official delegations

41. Corporate Development Department
Dedicated to Investor’s Needs
Extensive experience in supporting business & investment activities
Local presence in each region of Slovakia
Individual client approach
Updated database of existing investors
Contacts to sub-suppliers and other business entities

42. Thank you for your attention!
Foreign Direct Investment Section
For more information, you can contact us at:
Address: Slovak Investment and Trade Development Agency
Martincekova 17
Bratislava
Slovak republic
Tel.:
Source: SARIO, 2011 42