1. V4 LOGISTIC CONFERENCE XANGA’s developments in Debrecen, Hungary  a new potential for logistic co-operation in V4 Prepared by Endre Csukás Director 6 May 2014

2. Location of Debrecen in V4 DEBRECEN

3. The city of Debrecen Debrecen the second largest city in Hungary seat of Hajdú-Bihar county seat of North Great Plain RegionPopulation Debrecen: 210,000 Hajdú-Bihar county: 550,000 North Great Plain Region: 1,550,000 Hungary:9,910,000 DEBRECEN

4. Brief history of Debrecen Market town in 1361 Free royal town in 1693 Reformed College founded in 1538 Emblem of Debrecen Capital city of Hungary in 1848-49 and in 1944

5. The economy of Debrecen Complete structural change of the industry in the 1990’s. NEW PRIORITY: HIGH ADDED VALUE INDUSTRIES PAST Food processing Poultry processing Canned food production Tobacco processing Agricultural machine manufacturing Roller bearings production Knitwear manufacturing Printing industry Block housing factory Pharmaceutical industry Medical instruments production PRESENT AND FUTURE Food processing Roller bearings production Printing industry Pharmaceutical industry Medical instruments production New high added value industries: Information Technology Electronic industry Health industry Biotechnology Functional food industry R&D based machine manufacturing Agriculture has always dominated the economy of the city. Debrecen is the centre of the Great Plain, a large agricultural area.

6. TOP 3 companies in Debrecen FAG Ownership:Germany Activity:Roller bearings manufact. Employees:1260 Turnover (2012):31 billion HUF (≈ 100 M EUR) TEVA Ownership: Israel Activity:Pharmaceutical industry Employees:2400 Turnover (2012):188 billion HUF (≈ 606 M EUR) NI (National Instruments) Ownership:USA Activity:Electronic industry Employees:1250 Turnover (2012):130 billion HUF (≈ 420 M EUR)

7. Debrecen – an educational center Large number of secondary grammar schools, technical and vocational schools (mechanics, turning, chemistry etc.) Cooperation between companies / secondary schools and the university Debrecen University, with 500 years’ tradition, having over 33,000 students Bachelor, master and PhD training among others in the following faculties: o Faculty of Law o Faculty of Economics o Faculty of Agriculture and Regional Development o Faculty of Medicine o Faculty of Chemistry o Faculty on Information Technology o Faculty of Engineering o Faculty of Teacher Training o Faculty of Arts o Faculty of Sciences o Faculty of Music

8. Debrecen – a logistic centre By car:M35 highway connects Debrecen with the capital city Budapest, enabling to cover the 220 km distance within 2 hours. By rail:Debrecen, the largest railway junction in Eastern Hungary, lies on the trans-European railroad connecting Budapest with Moscow. By air:Debrecen has a Schengen criteria international airport. Distances from the neighbouring countries: Romania: 50 km Ukraine: 120 km Slovakia: 130 km Serbia: 200 km DEBRECEN Helsinki corridor Highway Motorway Motorway under construction

9. Debrecen International Airport Started operation in 1930 Strategic Soviet military airport until 1989 International airport since 2001 Schengen airport since 2006 Currently, charter flights to tourist destinations WizzAir scheduled flights to London-Luton and Eindhoven

10. Debrecen – a tourist centre Flower carnival Medicinal water, spas, thermal tourism Conference tourism

11. XANGA Investment & Development Group XANGA Investment & Development Group: private capital investment enterprise, strategic partner of Debrecen municipality for more than a decade in developing industrial and business infrastructure in the city, assisted dozens of foreing companies in setting up their subsidiaries in Debrecen and its region. Main focus of activities: developing new greenfield industrial areas equipped will all public utilities, developing turnkey industrial and logistic facilities, providing complex logistic services, airport and cargo operation, investment management and technology transfer support, business development support, post investment services.

12. XANGA’s phylosophy Development of XANGA’s activities In 1990’s XANGA as a consultant for foreign companies setting up their business in Hungary No available suitable industrial infrastructure, old brownfield facilities XANGA started to invest in turnkey indsutrial facilities in early 2000 Industry requires logistics XANGA started to invest in logistic facilities in 2011 XANGA took a share in airport development and operation in 2011 Venture capital investment First invest in building facilities upto 80% Then find utilisation Tailor investment to concrete utilisation Involve professional partners in operation Have a small management team Find the right partners to work with in implementation

13. Target areas for XANGA’s investment activities in the city of Debrecen Debrecen International Airport with Southern Industrial Park (logistic and airport developments) Debrecen Regional and Innovation Industrial Park (industrial developments)

14. Debrecen Regional and Innovation Industrial Park Founded by the municipality in 2000 Initial size: 40 hectares greenfield XANGA as strategic partner since its establishment in filling the park with foreing production firms XANGA’s responsibilities: - to develop the infratsructure and extend the territory of the park, - to take care of the daily management and operation of the park, - to provide turn-key industrial facilities for new tenants, - to assist tenants of the park in their investment and business development. Current area: 120 hectares (90 ha built in, 30 ha vacant) XANGA developed 31,200 sqm of turnkey industrial facilities in 2013 More than 40 companies Over 5,000 employees

15. Trimodal logistic centre at Debrecen Airport Logistic facilities with a total area of 50,000 sqm to be built between 2011 and 2015: Cargo halls Logistic halls Industrial rails Railway container terminal 15,000 sqm ready by now. Trimodality: AIRPORT ROAD RAILWAYS

16. Before development

17. Completed developments Covered rail terminal Air cargo halls Logistic halls

18. Focus of development in 2014 „Bring the sea to Debrecen!” ECONN – Eastern Connect: rail container terminal 4 ha area, 3 rail tracks, to be commissioned in September 2014 Partners in operation: IntegRail, GYSEV Connecting Debrecen to main European sea ports (Hamburg, Koper etc.) Rail container terminal

19. Airport surroundings (113 ha)

20. XANGA’s link to V4 by rail DEBRECEN Debrecen – Budapest – Bratislava Debrecen – Budapest – Brno – Prague Debrecen ∙∙∙ Kosice ∙∙∙ Rzeszow – Warsaw – Gdansk Rzeszow

21. XANGA’s link to V4 by air Short term plan: Debrecen – Prague Mid-term plan: Debrecen - Warsaw DEBRECEN PRAGUE WARSAW

22. Debrecen Trimodal Logistic Centre – a new gate for V4 towards West Romania

23. THANK YOU FOR YOUR ATTENTION! For more information, please contact us. XANGA Investment & Development Group 4025 Debrecen, Hal köz 3/A II/4-5. tel: +36 52 534-950; fax: +36 52 534-951 e-mail: info@xanga.hu info@xanga.hu website: www.xanga.hu www.xanga.hu V4 LOGISTIC CONFERENCE 6 May 2014