Visar Fida,CEO

Invest Macedonia Mission:Mission: - to win new investment projects into Macedonia and support the expansion of the existing base of overseas companies in the country. To deliver value to investors by using our broad knowledge of the Macedonian business environment and market segments, country-wide connections and a broad network of partners. Vision:Vision: - to become the best and most professional IPA in Europe and to contribute a significant percentage of Macedonia’s FDI inflows. To be recognized not as a government organization but as a pro business service provider 4 Main functions:4 Main functions: 1.Country promotion 2.Investor Servicing 3.Aftercare 4.Export promotion

Promotion of Macedonia One of the core activities of Invest Macedonia is to widely promote the business climate of the country, its political, monetary and macroeconomic stability by: Media campaign (global TV-networks and newspapers) Specialized editions and brochures Network of economic promoters (direct marketing) Business forums, fairs and road shows

State Aid InvestMacedonia the only governmental body responsible for concluding a State aid Agreement, on behalf of the Government of the Republic of Macedonia, as provider of state aid submitting annual report for the granted state aid in the technological industrial development zones for the past years The Macedonian Law on State Aid and the Law on Technological Development Industrial Zones are in full compliance with the EU regulations on state aid

25 economic promoters in 21 countries Americas: USA, Canada, South America(Brazil) Europe: Germany, Italy, UK, Sweden, France, Switzerland, The Netherlands, Belgium, Turkey, Hungary, Russia, Croatia, Bulgaria, Albania Asia: China, Japan, India, Qatar Economic promoters

INVESTMENTOPPORTUNITIES

Investment Opportunities Target Sectors Machine and Automotive components ICT Medical Devices and Pharmaceuticals Agribusiness and Food Processing Energy sector Mineral Resources Textile Tourism

Investment Opportunities Machine and Automotive Components Industry Existing engineering and manufacturing tradition Legacy of skills available to new investors Component production started in the 1960’s to supply Zastava, Serbia Companies primarily supply the aftermarket Johnson Controls, Johnson Matthey, Kemet, Teknohose, (Free Economic Zones), Kromberg & Schubert, Hi-Tech to supply OEM’s Markets are Europe, Russia, Turkey, Africa Most companies have ISO 9001 / TS quality certification

Investment Opportunities ICT Sector Best telecommunication networks in the region – the system is 100% digital Leading multinational hardware and software suppliers (Microsoft, HP, IBM) have local sales and support services in Macedonia 100,000 PCs for every school child; free internet sessions provided by the government IT skills shortage in Western economies and growing demand for outsourcing services – Macedonia can be your solution! Availability of well-educated staff at competitive costs Quality assurance and standardization procedure intitialized

Investment Opportunities Healthcare Sector, Medical Devices and Pharmaceuticals Existing pharmaceutical industry exports to over 30 countries worldwide Strong educational system, with an abundance of medical and pharmacy graduates Supportive regulatory environment Licensing arrangements in place with many of world’s leading pharmaceutical companies Availability of serviced industrial sites Manufacturing tradition

Investment Opportunities Agribusiness and Food Processing Industry Unique combination of Continental and Sub- Mediterranean climates Environmentally friendly production practices Technologies for food processing Excellent access to regional markets Strong reputation for quality food products The greatest investment opportunities: fruits and vegetables – production, storage distribution and processing industries wine production sheep and goat cheese production

Investment Opportunities Textile sector Esteemed reputation of Macedonian textile producers on the European Union market High flexibility and readiness to adapt to the demands of foreign markets Exceptional relation between product quality and costs Modern equipment 1-2 days distance to European Union markets Foreign investment welcomed in the ready- made clothing and knit production industries

Investment Opportunities Mineral Resources Wide range of mineral resources –Metals: Iron, Copper, Lead, Zinc, Gold, Silver Ferronickel, Ferrosilicon, –Non-metalic resources: Marble, Granite, Onyx, Gypsum, Limestone, Quartz, Silica, Marl, Bentonite, Feldspar, Clay 7.4% sector growth in % of Macedonian industrial output Sector employs 6% of total employees in Macedonia Strong mining tradition

Summer Destinations Numerous tectonic, glacial and man- made lakes, 50 in total Large Ohrid, Dojran and Prespa lakes Wartersports, archeological, wine, eco and rural tourism In 2011, increase in foreign tourists from EU of 38% Winter Destinations Over 45 mountain peaks over 2.000m Around 70% of the territory is mountainous, many locations have more than 100 days of snow Opportunities for development and enhancements of hotels and resorts on many locations Investment Opportunities Tourism

TECHNOLOGICAL INDUSTRIAL DEVELOPMENT ZONES (TIDZs)

Investment Opportunities Free Zones Free Zone Tetovo Area Size: 95 ha; Distance from Skopje - 35 km Free Zones Skopje 1 & 2 Area Size: ha; E-75 Highway; Next to the Int’l Airport Free Zone Rankovce Area Size: 40 ha; Corridor 8 Free Zone Stip Area Size: 208 ha; The largest Free Zone; Excellent logistic support Free Zone Radovis Area Size: 10 ha; Main Road M6 Free Zone Strumica Area Size: 23 ha; Free Zone Gevgelija Area Size: 50 ha; 85 km from the port of Thessaloniki Free Zone Prilep Area Size: 68 ha; Between Prilep and Bitola (4 th and 2 nd largest city ) Free Zone Struga Area Size: 30 ha; Next to the Int’l Airport; 170 km from Durres port Free Zone Kicevo Area Size: 30 ha

Connection to utilities Subsidy of up to €500,000 towards building costs Green Customs Channel available at border for rapid export from Zone to EU countries Land in a TIDZ in Macedonia is available under long-term lease for a period of up to 99 years TAX TAX RATES TIDZs Outside TIDZs Corporate tax 0% for the first 10 years 10% Personal income tax 0% for the first 10 years 10% Value added tax0%18% Property tax 0.1% - 0.2% Excise taxes0%5% - 62% PRODUCT CUSTOMS DUTY TIDZs Outside TIDZs Raw materials0%Up to 15% Equipment0%5% - 20% Fiscal Benefits Investment Opportunities Technological Industrial Development Zones - TIDZs

TIDZ “Skopje 1” JOHNSON CONTROLS $40mn automotive components plant; 150 employees initially – increasing to 500; Integrated circuits JOHNSON MATTHEY €55mn investment over 500 employees catalyst production TEKNOHOSE ANNOUNCING BEGINNING OF CONSTRUCTION WORK IN TIDZ “SKOPJE 1” KEMET SIGNING OF THE AGREEMENT PRODIS GROUP ANNOUNCING BEGINNING OF CONSTRUCTION WORK IN TIDZ “SKOPJE 1” VAN HOOL ANNOUNCING BEGINNING OF CONSTRUCTION WORK IN TIDZ “SKOPJE 2”

“Macedonia offers the company just-in-time delivery and minimal freight costs.” Philippe Simon VP of Global Electronics Johnson Controls “We are very satisfied with the support provided by the Macedonian Government and its institutions and Bitola municipality. The decision for investment in Macedonia represents an important step in our expansion as part of the strategy for international output.” Martin Passern Managing Director Kromberg & Schubert “This will be JM’s ‘mega-European plant’ and the largest ever single investment project.” Colin Jaffray, Director, Strategic Planning Johnson Matthey PLC “Macedonia was chosen because of its international competitiveness, because of our positive existing corporate experience here and above all because of the support and professionalism that we have received from all Government institutions during the analysis process.” Steven Meylemans Project Manager Johnson Controls What They Say

Thank You AGENCY FOR FOREIGN INVESTMENTS AND EXPORT PROMOTION OF THE REPUBLIC OF MACEDONIA Nikola Vapcarov Skopje Republic of Macedonia Tel.: Fax: web:

International Office - Latin America Elena Cvetkova Head of International Office – Brazil and all Latin America Agency for Foreign Investments and Export Promotion of the Republic of Macedonia Macedonian Embassy in Washington, USA – ECONOMIC AFFAIRS Land line: Mobile: