1. Where IT comes together
KAUNAS REGION
Where IT comes together

2. Welcome to Kaunas Region, Lithuania!
Where IT comes together
Lithuania is at the center of three of large consumer markets:
Western Europe
Baltic Sea Region
Russia and former Soviet States (CIS)
LITHUANIA stats
Size
65,300 km2
Population
2.97 million
Capital
Vilnius
Official language
Lithuanian
Currency
Lithuanian Litas (LTL)
Pegged to Euro since 2002
1 Euro = 3.45 LTL
Real GDP growth
2013: 3.2%
2012: 3.7%
2011: 6.0%
FDI growth
8.1 %
Annual inflation
1.2%
KAUNAS REGION stats
Regional capital
Kaunas City
Population
593,000
Labour pool
289,000
Unemployment
31,300 (10.1%)
FDI growth
11.4%
Kaunas Region
Source: Statistics Lithuania, VRM , Invest in Lithuania, 2014
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3. Lithuania, a gateway to the EU and CIS
KAUNAS REGION
Lithuania, a gateway to the EU and CIS
Where IT comes together
Lithuania allows access to main markets*:
Member of the European Union
Member of the Schengen Agreement (free trade and travel)
Member of NATO
Member of the Nordic Investment Bank, and part of Nordic-Baltic cooperation of Northern European countries
Lithuania is ranked 17th of the world on the Ease of Doing Business Index (higher than e.g. Germany, Latvia or Poland) *
Lithuania is a low risk country in the Central and Eastern Europe region, making it an excellent alternative for nearby high risk countries as Russia or Belarus
European Union is the largest single market in the world (almost double the GDP of China) with over 500 million consumers
(source: IMF)
Risk rating of Lithuania compared to other countries
(100= most risky)
Source: * World Bank, Invest in Lithuania 2014
Source: Economist Intelligence Unit Q2 2014
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4. KAUNAS REGION
IT sector Lithuania
Where IT comes together
Lithuanians are among the most IT-proficient people of the European Union – 96.7% of individuals aged obtain IT skills through formal educational institutes
More than 24,500 experienced IT professionals are currently employed in Lithuania in 2,185 companies. Over 8,000 employees are active in the area of computer programming
Lithuania has 6,200 IT students at 7 universities and 14 colleges. A majority of ICT talent is located in Vilnius and Kaunas
Lithuanian IT professionals feature strong competencies in: Java , Oracle, Microsoft (C#, C/C++, Visual Basic, ASP), Web Based (HTML, PHP, JavaScript, CSS, XML). Other well-spread competencies in the market are: Python, SAP, SharePoint
Source: Invest Lithuania 2013
Lithuania ranked 1st globally on communications technology
International rankings
1st in the World Competitiveness Rankings for communication technology *
1st for Internet upload and 3rd for download speed in the EU **
Among Top 10 countries in the world for cloud readiness **
Sources:
* IMD, The Word competitiveness yearbook, , Invest in Lithuania
** Ookla Netindex, 2013 , Invest in Lithuania
*** Cisco Global Cloud Index, The Index evaluates Consumer and Business Fixed Network performance and Consumer and Business Mobile Network performance, Invest in Lithuania
Answer to the question: Communications technology meets business requirements
Source: IMD WCY Executive Opinion Survey based on an index from 0 to 10, 2013 survey results, Invest in Lithuania
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5. Kaunas Region is next to the capital Vilnius, Lithuania’s second city and an important hub for IT
Where IT comes together
Callcredit Information group
Dematic
Unicall
Runway HP
Nielsen&Nielsen
IBM
SEB
Nielsen
Atea
Barclays
COWI
Danske Bank
Matrix Software
Western union
Storebrand
CSC
Transcom
Paroc
CITCO
INWINDO
CSC Telecom
Swedbank
Worldone
Mirror
Telia Sonera
BDC
Omega
Greencarrier
Lintel
Kaunas Region is proven to be an excellent alternative for the crowded and more costly Vilnius’ market
Source: Invest Lithuania 2013
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6. In KAUNAS REGION it all comes together
The Kaunas Region provides an unmatched mix of cost-effective talent and high class infrastructure
Where IT comes together
Highly educated IT talent
The right people
The right education
The right languages
Cost attractiveness
ICT infrastructure
The right connectivity
The right speed
The right labor cost savings
The right tax scheme In
KAUNAS REGION
it all comes together
Real Estate availability
International accessibility
The right offices
The right cost advantages
The right location
The right direct flights

7. Highly educated and multilingual talent
KAUNAS REGION
Highly educated and multilingual talent
Where IT comes together
In Kaunas Region over 5,000 people are employed in the information and communication sector
The Kaunas region workforce is highly educated with 39% of workers having a third level diploma (Lithuania: 34%; EU: 24%). Virtually all highly educated graduates speak English
The majority of IT talent is located in two largest clusters – Vilnius and Kaunas with more than 4,800 young people studying IT curriculums in these cities
Because of fast-growing IT centers like Barclays, Vilnius is experiencing a tight labour market for which Kaunas is an excellent alternative
British company Callcredit expanded its IT center in Kaunas from 120 to 200 employees in benefiting from the large graduate potential
Sources: Lithuanian Statistical Department, VRM, Invest Lithuania 2014
IT students Lithuania by field of study
Barclays Technology Centre has already reached more than 1000 FTE in less than four years since its establishment in 2009 in Lithuania
Source: Invest Lithuania, 2014
Source: Invest Lithuania, 2014
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8. 50% of the tax rate (subsequent 10 years)
Cost attractiveness
KAUNAS REGION
Where IT comes together
In general labour costs in Lithuania are less than half compared to Western European countries and the USA
Kaunas is a very cost attractive location for IT as employers’ cost levels are 10-15% lower compared to Vilnius and 20-40% lower than in Poland, Slovakia and Hungary
Standard income tax rate is one of the lowest in Europe at 15%. If established in a Free Economic Zone (FEZ), property and dividend tax is at 0% and income tax is at 0% for the first 6 years and 7.5% for the following 10 years*
* Source: Invest in Lithuania, FEZ Kaunas, Kedainiai 2014
Full employers cost per person per year (Euro)
Tax rates
Tax
General
Free Economic Zone
Income tax
15 %
0 % (first 6 years)
50% of the tax rate (subsequent 10 years)
Property tax
1 %
0 %
Dividend tax
Source: Invest in Lithuania, FEZ Kaunas, FEZ Kedainiai 2014
1 Employer cost are based on the following expenses: gross salary, social security, medical and pension costs in addition to social security and performance bonuses
Source: National/Regional Statistical Offices, IMD, UBS, 2014
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9. ICT infrastructure
KAUNAS REGION
Where IT comes together
The ICT infrastructure in Lithuania (and Kaunas Region) is the best in Europe with 33% of homes/buildings directly connected to fiber
The most up-to-date ICT technologies are implemented and functioning in the entire country (LTE technology, 3G mobile communications, infrastructure, mobile WiMAX 4G Internet etc.)*
* Source: Invest in Lithuania
Also on the achieved internet speeds Lithuania scores very high at 7th globally
Countries with the highest penetration of fiber-to-the-home / building
Lithuania ranked 7th globally on achieved internet speeds (Mbps)
Source: Speedtest.net, 2014
Source: FTTH Council Europe 2013
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10. International accessibility
KAUNAS REGION
Where IT comes together
Kaunas Region is situated at the geographical centre of Lithuania and is further developing and strengthening its transport infrastructure
Kaunas Region is well connected by road to Vilnius, Klaipeda, Riga and Poland
Kaunas airport, which is the second largest airport in Lithuania, serves 8 international destinations (incl. London, Birmingham, Dublin, Oslo and Frankfurt) throughout the year on a weekly basis
Vilnius International Airport is located within a one hour drive providing 2-3 flights per hour and more daily direct flights to major European capitals and cities
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11. Availability of affordable real estate
KAUNAS REGION
Where IT comes together
Average annual occupancy costs office (Euro/sqm)
Kaunas Region provides affordable office space which is 25% cheaper compared to Vilnius
Kaunas Free Economic Zone (FEZ) provides opportunities for setting up an office. The zone provides favourable and lower taxes for investors investing at least Euro 1 million
Within the city of Kaunas, new high quality developments are underway to accommodate the business services industry
Note: Cost for a Grade A office space, excluding average local rates and service charges
Source: CBRE, Jones Lang LaSalle, UBS, Ober-Haus, Colliers International ,2014
New office building Kaunas City
Source: Invest Lithuania, FEZ Kaunas, 2014
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12. National incentives support program
KAUNAS REGION
National incentives support program
Where IT comes together
Foreign investors interested in locating a business in Lithuania as well as foreign companies already operating in the Lithuanian market but eager to further expand may apply for Invest in Lithuania’s financial investment support of up to Euro 3.5 million per investment project
Invest in Lithuania provides financial support to cover personnel training costs (up to Euro 2 million) as well as eligible construction, infrastructure and salary costs (up to Euro 1.5 million), incurred by foreign investors establishing a services business unit in Lithuania
The financial support tool is designed to support foreign businesses investing into the production of export-oriented high-quality services as well as establishment of qualified jobs on the market
Financial support available per FDI project in the field of services
Construction, Infrastructure, Salary costs
Personnel training costs
Up to Euro 1.5 million
Up to Euro 2 million
Max. possible support
3.5 million Euro
Source: Invest Lithuania, 2014
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13. Contact us TBD One stop shop
KAUNAS REGION
Contact us
Where IT comes together
TBD
One stop shop
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