Herzlich Willkommen! Carthago . . . mit Carthago in die Zukunft Ladies and Gentlemen, my name is Matjaž Kekec and I am very happy to be here with you today. What I'd like to present you is a real success story of an upmarket german (as you see on the slide) brand of luxury motorhomes. So CARTHAGO calls you Welcome in the future. 27.03.2017

CASE: Carthago Proizvodnja avtodomov d.o.o. Total planned investment: 3.032.000,00 Eur State subsidy funds: 1.217.000,00 Eur Nr. Of new employment: 150 Production of Chic C line model   Slide 7 27.03.2017

Die Chic Familie The basic idea was to launch a compact model line in complement to the original Carthago motorhome model line of the highest price level. Just like Mercedes-Benz did it with the A-class, Carthago decided to create Chic-series of compact motorhomes. As none of the two german sites was apt to take this challenge, due to lack of skilled and qualified workforce, which is above all very expensive, Carthago decided to go greenfield and build another factory outside Germany. The chosen land was Slovenia, the chosen place was Odranci in the north-eastern Prekmurje region. 27.03.2017

Goals and benefits for Carthago Odranci, Slovenia = Carthago’s 3rd production site To increase the market share by creating production capacities for a new compact product line one of few, increasing output during recession Reduction of manufacturing costs Access to a large pool of highly skilled and educated manpower Benefit on local community support Potential for further development high manpower potential available land To increase the market share by creating production capacities for a new compact product line, which proved to be an excellent idea. Today, Carthago is one of few, increasing output during recession Reduction of manufacturing costs Access to a large pool of highly skilled and well educated manpower Benefit on local community support Potential for further development and expansion as there is a high manpower potential and lots of available land 27.03.2017

Investment implementation Challenges: Fulfillment of the obligation to employ 150 persons in 3 years after receiving the subsidy (as the result of late start with production) Support National cost sharing grant scheme – Ministry of the Economy Local community support Regional development agency Mura Employment service Murska Sobota Well, Slovenia is not the one country that would immediately raise your attention. It's a small country squeezed between Austria, Italy and Hungary, with an excellent education level of its workforce, excellent infrastructure, but not necessarily the cheapest one. What the state provides, however, is the following: Incentives for every direct foreign investment, incentives for employment (especially for the persns difficult to employ), tailored and free training programs. Specialty for the Prekmurje region is a new law which provides even further incentives, as the state has decided to develop this region in a faster rhythm than the rest of the country   27.03.2017

Important elements for successful launch Preparation of the project (CARTHAGO’s case: 1 year) Selection of highly motivated initial employees Preparation and training of employees 25 employees were trained at the HQ, Germany Surveillance and support for employees in the first days of their start-up Selection of the employees to follow criteria: experience and labor discipline Now here you can see what is essential for such a project to succeed 27.03.2017

Present stand of operation Production of 700 vehicles planned for 2010 35 % of total production output of Carthago Group 150 employees reached Enlargement in planning phase On this graph, you can see how fast the total output of Carthago rises (in spite of the less pleasant times since 2008) and how high the contribution of Slovenian site is (blue) 27.03.2017

Increasing production / output tendency    This output tendency is impressive, isn't it? And it's getting higher in spite of the fact that the market for such vehicles has shrunk for 50%. But the new Carthago Chic line made in Slovenia offers a much better value for money, which is always the best possible weapon in case of the crisis 27.03.2017

Local Payroll From 0 to 140, and we intend to go further up in the near future... 27.03.2017

Payroll – CARTHAGO Group Today the Carthago Group has more than 430 employees at 3 sites ...but, as you can see, employment at Carthago grows even outside Slovenia due to a very favourable tendency of sales volumes 27.03.2017

Benefits for the Pomurje region 150 new employments Development of sub-contracting activity in the region Higher added value: product development done by local engineers Synergies with the local community So Carthago made a good choice. Was his choice also good for the slovenian region where he settled down? Yes definitely and here you can see why: Prekmurje region got  - 150 new employments - Several sub-contractors who moved or were created locally - Higher added value: product development is mostly done by local engineers - There are superb win-win synergies with the local community 27.03.2017

Project 2 = Second investment project – new vehicle model What’s next? Project 2 = Second investment project – new vehicle model Goal: to double again the production capacity Total planned investment: 2.800.000,00 Eur Building Equipment, machines State subsidy: 30% Carthago will run on two calls for grant funds exploiting the new Law of POMURJE: Employment subvention, tax exemption foreign investment incentives State co-financing So, what's next?  Carthago will go further and, as the first part of the story has been a success, let's add another one. 27.03.2017

Increase the output rhythm to 24 vehicles a week by the end of 2010 Project 2: objectives Increase the output rhythm to 24 vehicles a week by the end of 2010 Increase the production rhythm to 45 by 2012 Increase total employment on 260 ...and further beyond, the ambitions are high. We at Carthago certainly don't regret the decision to have invested in Odranci888   27.03.2017