Electrotechnical, Electronics and ICT Industry in SLOVAKIA Association of Electrotechnical Industry of the Slovak Republic Electrotechnical, Electronics and ICT Industry in SLOVAKIA

SLOVAKIA – The Heart of the Europe Area (km2): 49,035 Population: 5,380,000 Population density: 109.7 persons/km2 Capital city: Bratislava Source: SARIO

ZEP SR was established in 1991. ZEP SR Today ZEP SR was established in 1991. ZEP SR is the largest and the most significant representative of employers in electrotechnical, electronics and ICT branch and the only partner for negotiations of the Higher Level Collective Agreement with the Trade Union KOVO. ZEP SR is the Member of: National Union of Employers of the Slovak Republic (RUZ) Industry Associations of Slovakia (ZPS) Entrepreneur Association of Slovakia Scientific and Technological Parks Žilina International organization INTERELEKTRO, Moscow ZEP SR cooperates with all Universities and their Electrotechnical Faculties in Slovakia

ZEP SR Representatives Ján Badžgoň Castor & Pollux Bratislava President Vice-Presidents Jozef Dušan Hric TESLA Liptovský Hrádok Peter Kollárik Siemens Bratislava Secretary General Vlado Kalina

The membership in the Association currently includes 60 Electrotechnical and ICT Companies, 7 Members-observers, 4 Universities and 6 Secondary training institutions aimed at electrotechnics and ICT.

Order in TOP 200 chart by Total Takings No. Total Takings in 2006 (thousands SKK) 5. Samsung Electronics Slovakia, s.r.o., Galanta 85 767 180 10. Sony Slovakia, s.r.o., Trnava 20 907 843 40. SE Bordnetze – Slovakia, s.r.o., Nitra 7 174 044 46. BSH Drives and Pumps, s.r.o, Michalovce 6 419 929 51. Panasonic AVC Networks Slovakia, s.r.o., Krompachy 6 066 781 64. Yazaki Wiring Technologies Slovakia, s.r.o., Michalovce 4 728 702 66. Emerson, a.s., Nové Mesto nad Váhom 4 668 885 67 Leoni Autokabel Slowakia, s.r.o., Trenčín 4 545 852 77. Emerson Electric Slovakia, s.r.o., Nové Mesto nad Váhom 4 063 659 98. Delphi Slovensko, s.r.o., Senica 2 837 961 115. Osram Slovakia, a.s., Nové Zámky 2 540 167 119. Universal Media Corporation (Slovakia), s.r.o., N. Mesto nad Váhom 2 452 214 120. Panasonic Electronic Devices Slovakia, s.r.o., Trstená 2 443 837 121. Yazaki Slovakia, s.r.o., Bratislava 2 434 947 154. SEWS Slovakia, s.r.o., Topoľčany 1 966 400 170. ABB, s.r.o., Bratislava 1 719 766 194. ON Semiconductor Slovakia, a.s., Piešťany 1 409 750

The most Significant Producers in Slovak Electrotechnical Industry Company Total Takings Quantity of (billions EUR) Workers Samsung Electronics Slovakia 2,6 1 912 Sony Slovakia 0,6 1 695 Siemens Osram Slovakia 0,07 1 783 BHS Drives and Pumps 0,2 979 SE Bordnetze – Slovakia 0,2 3 401 (Sumitomo Electric Industies) Delphi Slovakia 0,08 1 988 Emerson 0,1 1 119 Emerson Electric Slovakia 0,1 1 124

Production of the Most Significant Electro-Producers in Slovakia Samsung Electronics LCD monitors, plasma, printers, Slovakia MP3s, home-cinemas up to 10 million LCD modules Sony Slovakia 3 million LCDs TV-Bravia (in 2008) Siemens Osram Slovakia 5 000 types of products revenues: SKK 2,7 billion in 2006 / 2007 BHS Drives and Pumps about 5 million electro motors for BOSCH per year SE Bordnetze – Slovakia optical fiber and electric cords (SKK 7 billion)

Slovak Electrotechnical Industry (EI) in years 2001 - 2006 Index Unit 2001 2002 2003 2004 2005 2006 % 2005-2006 Total Sales mill. SKK 57 732 65 647 76 099 107 021 155 665 212 536 136,5 Export bill. SKK 62,0 68,4 85,1 115,1 163,1 242,9 148,9 Foreign Trade Balance -33,5 -34,8 -15,6 -0,03 30,1 Value Added 14 833 16 408 16 780 19 316 23 986 30 341 126,5 Average Number of Workers pers. 43 012 46 511 50 630 54 018 59 807 60 586 101,3 Average Monthly Wage SKK 12 640 13 166 13 765 15 238 16 336 21 713 132,9 Profit / Loss 3 073 2 953 4 853 2 956 3 814 7 903 207,2

The Current Situation of the Electrotechnical Industry within the Economy and Industrial Manufacturing Sector of the Slovak Republic The industry creates more than 12% of the value added created by the manufacturing industry Gradual growth in value added in manufacturing output of existing investors (Samsung, Sony) Positive trend in productivity growth One of the few industrial sectors with employment growth (about 15-20% p.a.) Manufacturing output characterized by dynamic growth, doubled since 2000 Business model with municipalities seeking out and negotiating directly with investors proved successful Positive manufacturing experience of investors in Slovakia leads to manufacturing capacity expansion Negatives: Value added and productivity is relatively low at the moment Sector has negative net but shrinking foreign trade gap

The Current Situation of the Electrotechnical Industry The electrotechnical industry is currently one of the largest employers of the manufacturing sector as well as the producer of the second highest value added in industrial manufacturing. Electrotechnical industry growth was the fastest of all industrial manufacturing sectors since the year 2000. The share of the value added of the electrotechnical industry on the overall value added of the manufacturing industry increased from 9.07 % to 12.48 % since 2001. Car manufacturing can be partially credited for this development, creating demand for manufacturing of optical and electrotechnical products. There is increasing evidence of higher value added structure in the manufacturing sector as more foreign investors transfer in their higher value added services, which represent the backbone of a modern economy.

Value Added in Electrotechnical Industry (1999 – 2006) 5000 10000 15000 20000 25000 30000 35000 1999 - 2006 1999 2000 2001 2002 2003 2004 2005 2006 10 917 million SKK 13 010 million SKK 14 833 million SKK 16 408 million SKK 16 780 million SKK 19 316 million SKK 23 986 million SKK 30 341 million SKK

Employment in Electrotechnical Industry of the Slovak Republic in 2001 - 2006 The number of employees grew by 32% since 2001, representing the third fastest employment growth rate in the manufacturing industry. The largest share of employees is in the electric equipment and instruments (68%) sub-sector. Average wages in electrotechnical industry increased by 5.4% in 2006 to SKK 17,952. The most significant factor in 2006 was the continuing inflow of foreign direct investment. Import Export

Value Added (Q. of workers / thousands SKK) Quantity of Workers and Productivity of Labor in Electrotechnical Industry Value Added (Q. of workers / thousands SKK) Quantity of Workers   2006 2005 % 2006/05 1. Leoni Autokabel Slowakia, s.r.o., Trenčín 3 693 3 837 -3,8 316 300 5,1 2. SE Bordnetze–Slovakia, s.r.o., Nitra 3 401 3 025 12,4 323 311 3,8 3. Kromberg & Schubert, s.r.o., Kolárovo 2 385 2 850 -16,3 332 310 7,2 4. Delphi Slovensko, s.r.o., Senica 1 988 2 046 -2,8 354 550 -35,7 5. Yazaki Wiring Technologies Slovakia, s.r.o., Michalovce 1 974 n 367 6. Samsung Electronics Slovakia, s.r.o., Galanta 1 912 1 641 16,5 7 198 3 231 122,8 7. Osram Slovakia, a.s., Nové Zámky 1 783 1 664 453 489 -7,5 8. Emerson Electric, s.r.o., Nové Mesto n. Váhom 1 124 1 127 -0,3 569 499 14,1 9. Panasonic Electronic Devices Slovakia, s.r.o., Trstená 1 121 1 058 6,0 350 398 -12,1 10. Emerson, a.s., Nové Mesto nad Váhom 1 119 990 13,0 551 682 -19,3 11. Panasonic AVC Networks Slovakia, s.r.o., Krompachy 1 102 963 14,4 644 498 29,3 12. BSH Drives and Pumps, s.r.o, Michalovce 979 923 6,1 13. ON Semiconductor Slovakia, a.s., Piešťany 583 495 17,8 899 1 015 -11,5 14. Semikron, s.r.o., Vrbové 493 346 42,5 536 380 40,9 19. Elteco, a.s., Žilina 287 10,1 545 561 -2,9

ELO SYS 2007 Since 1995, ZEP SR is the co-organizer of the International Fair of Electrical Engineering, Electronics and Power Engineering ELO SYS where ZEP SR have been awarding: - Electrotechnical Product of the Year - The Best Exhibit of the ELO SYS Fair - The Designer of the year - The Unique Product of the year (with USD 2 000 prize) for product at patent or invention level. There were 374 exhibitors in the Elo Sys 2007 fair (8 companis from EU and Japan) (The Unique Product of the year 2007 - VUJE)

High–tech and Middle–tech in Slovak Electrotechnical Industry Slovak power electrical engineering and electronic is comparable to EU level. * Electro-insulating materials and systems in electrical engineering could be evaluated in more detail, because they are hidden in final products, mostly. For example amorphous metals developed in the Slovak Academy of Sciences (beside USA, Germany and Japan) ranked us among the best workshops in the World. * Regulating and control engineering developed in Slovakia (directly to transport systems for EU partners mostly) are extremely successful. In comparison with USA there are several problems: different technical standards, system frequency and voltage.   In comparison with Japan the situation is very similar. Power electrical engineering, electro-insulating materials and systems, regulating and control engineering are at the knowledge level.

Slovak Investment & Trade Development Agency The main mission of SARIO is to contribute to the acceleration of economic growth of the Slovak Republic and to improve the quality of life in Slovakia - SARIO achieves this goal by presenting the economic environment of Slovakia, attracting foreign direct investments and developing of the FDI projects up to their final stage. www.sario.sk

Association of Electrotechnical Industry of the Slovak Republic Mgr. Vlado Kalina Secretary General Kominárska 2-4, 831 03 Bratislava, Slovakia Tel: +421 2 502 34 259 (905 756 791), Fax: +421 2 502 34 507 zep@zep.sk, kalina@zep.sk www.zep.sk