1. SERBIA QUALITY WORKS Jelena Akovic Senior Legal Advisor Serbia Investment and Export Promotion Agency PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2010.

2. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2011. Serbia Investment and Export Promotion Agency ABOUT SERBIA  Official Name: Republic of Serbia  Area: 88,361 km 2  Population: 9.5 million  Official Language: Serbian  State Form: Democratic Republic  Capital: Belgrade (1.7 million)‏  Currency: Serbian Dinar (RSD)‏

3. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2011. Serbia Investment and Export Promotion Agency EU ACCESSION PLANS  The Stabilization and Association Agreement (SAA) signed in April 2008;  SAA ratified by EU parliament in January 2011  EU candidate status received on March,1 st 2012;  Trade interim agreement with EU;  Visa liberalization for Serbian citizens;

4. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency DEVELOPMENT OF ROAD INFRASTRUCTURE  International – Corridor VII  National – South Adriatic Highway, Regional Motorways  Aim to connect all the major centers of Serbia

5. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency TRENDS AND PROJECTIONS OF SERBIAN ECONOMY Projected by Serbia Ministry of Finance, National Bank of Serbia, World Economic Outlook Database and International Monetary Fund 20052006200720082009201020112012 GDP growth rate (%)5.43.65.43.8-3.5123 Unemployment rate (%)21.821.618.814.416.92024.424.4tbd FDI (€ million)1,2753,4301,5971,6601,3728608601,827tbd Inflation (%)13.67.311.08.66.610.37.04.2 Export (€ million)3,6085,1026,4327,4285,9617,3938,439tbd Import (€ million)8,43910,46313,95116,47811,50412,62114,449tbd

6. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency SERBIA ECONOMY TREND AND PLANS Projected by Serbia Ministry of Finance, National Bank of Serbia, World Economic Outlook Database and International Monetary Fund

7. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency MOST ATTRACTIVE TAX SYSTEM IN EUROPE Salary TaxVAT Corporate Profit Tax

8. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency SERBIA COST TABLE Typical monthly salaries:Net:Total: Minimal salary:184 €303 € Average salary in automotive ind.305 €503 € Average blue collar salary250 €412.5 € Average white collar salary550 €907.5 € Working week:40h Overtime:8h/week 4h/day No. of shifts:max 3 Utilities: Electricity cost:0.05 €/kWh Gas cost:0.42 €/m3 Water cost:0.2 €/m3 Building: Average rent cost:4 €/sqm Average building cost:400 €/sqm

9. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2011. Serbia Investment and Export Promotion Agency SERBIA FREE TRADE AGREEMENTS European UnionEFTA CEFTA TurkeyBelorussia Russia Kazakhstan USA – preferential trade

10. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency Large and mid-sized investment projects Financial grants system Eligible projects Large investment projectsMid-sized investment projects Amount of funding (€) Up to 17% of the total investment Up to 20% of the total investment Up to 10% of the total investment Minimum investment ammount €100 million or greater Between €50 and €100 million €50 million Minimum number of new, full-time jobs created 300 150 Investments of special importance: Minimum investment ammount €200 million Minimum number of new, full-time jobs created 1000

11. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency Eligible investment projects Manufacturing sector Internationally- marketable services Strategic projects in the field of tourism Undeveloped regions Standard regions Entire teritory of the RS Minimum investment 500 000 € 1 000 000 € 500 000 €5 000 000 € Minimum number of jobs created 50 1050 Ammount of funding 4 000-10 000 € Financial grants system Standard-scale projects

12. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2011. Serbia Investment and Export Promotion Agency FOREIGN INVESTMENTS IN SERBIA Since 2001 Serbia attracted more then 19 billion EUR of investments FDI BY COUNTRY IN EUR MILLIONS

13. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency Italian investments in Serbia Izvor: NBS

14. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency SocietàSettoreTipo d’investimento Valore (mil. EUR) FIATAutomobilisticaJoint Venture944 INTESA SAN PAOLO BancariaAcquisizione660 FONDIARIA SAIAssicurazionePrivatizzazione220 GOLDEN LADYTessile e abbigliamentoGreenfield96 BENETTON GroupTessile e abbigliamentoBrownfield43,4 FANTONILegno e arredamentoPrivatizzazione31 GENERALI GROUPAssicurazioneAcquisizione30 SFIRAgroalimentareAcquisizione25 FINDOMESTIC BANKBancariaAcquisizione24 CALZEDONIATessile e abbigliamentoGreenfield20 FULGARTessileGreenfield20 Presenza Italiana in Serbia

15. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency AnnoEsportazione dalla Serbia Milioni € Importazione nella Serbia Milioni € 2005525.1732.8 2006736.1872.9 2007799.51292.8 2008 763.31475.6 2009586.11111.0 2010843.91078.8 2011936.61557.6 Nel 2011, secondo i dati pubblicati da parte del Istituto per la Statistica della Serbia, l’Italia risulta il terzo partner commerciale della Serbia, dopo la Federazione Russa e la Germania L’esportazione dalla Serbia all’ Italia: abbigliamento, acciaio, ferro, metallo colorato, calzature e articoli di plastica. L’ esportazione dall’Italia verso la Serbia: veicoli, macchinari, tessuti, macchinari ad uso speciale, abbigliamento, etc. SERBIA - ITALIA Rapporti commerciali Fonte: Dati sul commercio estero Istituto Nazionale di Statistica

16. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency TRADITION OF AUTOMOTIVE INDUSTRY IN SERBIA  Current no. of Companies: around 100  Number of Employees: around 24,000  Turnover 2010: 861.7 million EUR  Largest Companies:  Fiat Automobiles Serbia  Michelin - Tigar Tyres  Trayal  CIMOS Livnica Kikinda AI  DAD Dräxlmaier  Yura Corporation d.o.o. 1939 1954 1965 1971 1988 2008 2012

17. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency AUTOMOTIVE FDI IN SERBIA 2004

18. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency AUTOMOTIVE FDI IN SERBIA 2006

19. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency AUTOMOTIVE FDI IN SERBIA 2008

20. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency AUTOMOTIVE FDI IN SERBIA 2010

21. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency AUTOMOTIVE FDI IN SERBIA 2012

22. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2010. Serbia Investment and Export Promotion Agency About SIEPA Investment Promotion Information Provision Location Advisory Project Management Project Aftercare

23. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency DATABASE DI BROWNFIELD E GREENFIELD LOCATIONS www.serbia-locations.rs

24. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2010. Serbia Investment and Export Promotion Agency SIEPA SUPPLIERS DATABASE The largest database of Serbian industry – www.siepa.gov.rswww.siepa.gov.rs

25. PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency S E R B I AS E R B I A

26. SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY 3, Vlajkoviceva St. 11000 Belgrade, Serbia Phone: +381 11 33 98 55 0 Fax: +381 11 33 98 81 4 E-mail: office@siepa.gov.rs www.siepa.gov.rs Serbia Investment and Export Promotion Agency