1. POLAND YOUR BUSINESS PARTNER
Henryk Sanecki
Consul, First Counselor
Head of Trade & Investment Section
Consulate General of the Republic of Poland
16 May 2013
Meeting with participants of the mission to Poland

2. POLAND - Basic information
Poland, with a population of over 38.5 million inhabitants, is the largest member of the European Union among all the countries of Central and Eastern Europe. In terms of the number of inhabitants, Poland is the 34th largest country in the world and the 6th largest in the EU. In terms of gross domestic product (GDP), Poland is the 8th biggest economy in the EU and the 21st biggest economy in the world (2010 GDP in current prices, USD-denominated, IMF, World Economic Outlook Database, October 2012).

3. Poland - Key Facts USD 802,145 billion (PPP, 2012) – IMF estimates
Area: sq km – 6th in European Union
( sq miles – comparable with Arizona)
Population: 38,5 million – 6th in European Union
(– comparable with California)
Currency: Polish Zloty (1 USD ~ 3.2 PLN, 1 EUR ~ 4.1 PLN)
GDP: USD billion *(PPP, 2011) – IMF data
USD 802,145 billion (PPP, 2012) – IMF estimates
GDP per capita: USD 20, *(PPP, 2011) – IMF data
USD 21, (PPP, 2012) – IMF estimates
GDP growth: 1.8% (2009), 3.9% (2010), 4.3% (2011),
1.9% (2012), 1.3%(EC forecast, 2013)
Membership: EU, NATO, OECD, WTO, Schengen Zone
* (PPP - Purchasing Power Parity)
GDP composition by sector: agriculture – 4%, industry – 31,3%, services – 64,7% 3

4. 1000 km radius 250 m people Competitive Advantages 2000 km radius
Location & economic fundamentals
strategic location in continental Europe
part of trans-European transportation corridor
fourth fastest growing EU country in 2011
38 million consumers
1000 km radius
250 m people
Labour force
young, well-educated work force
ca 11% of university students in the EU
460 universities & high education schools
language proficiency
increasing labour productivity
2000 km radius
550 m people
Over the recent years, observers have grown accustomed to the Polish economy’s relatively good performance against the backdrop of the region of Central and Eastern Europe as well as the entire European Union. It was particularly visible in 2009, when Polish GDP, according to Eurostat data, grew 1.6%, making Poland the only EU country with a positive economic growth and earning the country the epithet of the “green island”. It was also in 2010 that Polish economy stood out among European peers: the GDP growth of 3.9% was the third highest in the EU, behind Slovakia’s and Sweden’s.
Growing faster than its environment, Poland is catching up, in terms of economic situation, with Western EU countries. Poland’s GDP per capita in 1995 was 43% of the average of EU countries, in 2000 it was 48%, and in 2010 – 63%.
Investment incentives
tax exemptions in 14 Special Economic Zones
grants co-financed from the EU (EUR 90 bn)

5. Unemployment rate 8/2012 : 12.4%, 1 964.7 thous.
(labour force 16,99 M)
Mazowieckie
10.2%
Podlaskie
13.9%
Lubelskie
13%
Podkarpackie
15.3%
Małopolskie
10.6%
Śląskie
Opolskie
13.1%
Dolnośląskie
12.4%
Lubuskie
14.9%
Świętokrzyskie
Łódzkie
Wielkopolskie
9,1%
Warmińsko-
-Mazurskie
19.3%
Pomoskie
12.1%
Kujawsko-
-Pomorskie
16.6%
Zachodnio-
16.5%
14% >
10.9% <
as of the end of August 2012
Labour force M
Year
Unemployed
Unemployed with
higher education
2005
2012
Source: Central Statistical Office, August 2012

6. Harmonized unemployment rate in December 2012 in selected EU member states (source: Eurostat)

7. Main academic centers The most popular majors Tri-City 95 000 Poznan
Warsaw
Lodz
Wroclaw
Katowice
The most popular majors
Krakow
ICT
Finances, B&A
Science
Engineering
Students by major:

8. Talent shortage problem by country
Talent shortage problem in Poland does not exist: only 4% of employers have trouble filling vacancies
Poland ranks 1st among 39 countries surveyed by Manpower
Source: Manpower 2011 Talent Shortage Survey 8

9. Foreign language capabilities
Foreign language capability by age groups
Learning of foreign languages is obligatory in the Polish education system
Children learn foreign languages from the age of 6
Source: CBOS Survey 2009
Foreign language capability among students
Language proficiency is one of the strongest points for Poland as a BSS hub
English is the most popular foreign language in Poland
Source: Hays, 2012

10. Hourly labour costs and trade union density
Hourly labour costs in 2011 in EUR
Trade union density in OECD countries in 2010 (in %)
Hourly labor cost: graph:
Source: Eurostat, March 2012; OECD, Online OECD Employment database, May 2012
* data for 2009 (data for 2010 not available)
** data for 2008 (data for 2010 and 2009 not available 10

11. Modernisation of roads and railroads network
Till 2006
2014 – 2020
New constructions
After 2020
Highways and expressways:
   existing
   under construction
   planned
Railroads
Source: GDDKiA, MT

12. Direct flights to major European cities
Air transport
Passengers served by Polish airports (in millions)
Location of main Polish airports
European flights
Domestic flights
Overseas flights
WARSZAWA
SZCZECIN
ZIELONA GÓRA
BYDGOSZCZ
ŁÓDŹ
RZESZÓW
WROCŁAW
KATOWICE
KRAKÓW
GDAŃSK
POZNAŃ
Airports under construction Q
MODLIN
LUBLIN
KILECE
GDYNIA
Direct flights to major European cities
London
Warsaw, Gdańsk, Wrocław, Kraków, Rzeszów, Szczecin, Bydgoszcz, Katowice, Poznan, Łódź
Frankfurt
Warsaw, Gdańsk, Wrocław, Poznań, Kraków, Katowice, Rzeszów
Munich
Warsaw, Gdańsk, Wrocław, Kraków, Poznań
Paris
Warsaw, Katowice, Kraków, Wroclaw, Poznań, Gdańsk
Dublin
Warsaw, Wrocław, Katowice, Kraków, Poznan, Gdansk, Bydgoszcz, Szczecin, Łódź, Rzeszów
Oslo
Warsaw, Katowice, Kraków, Wroclaw, Poznań, Gdańsk, Szczecin
Milan
Warsaw, Katowice, Kraków
Dortmund
Warsaw, Katowice, Wroclaw, Kraków, Poznan, Łódź
Brussels
Warsaw, Katowice, Kraków, Wrocław
Source: The Civil Aviation Office, 2012

13. Top business locations across the world
Warsaw Ranked #12 Among Top Business Locations Across the World
Source: CB Richard Rllis, 2011

14. GDP growth in the EU countries in 2011GB
0,7
France
1,7*
Germany
3,0
Ireland
Belgium
1,9
Spain
Italy
0,4
Luxemburg
1,6
Holand
1,2
Czech
1,7
Slovakia
Austria
3,1
Hungary
Romania
2,5
- 0,2
Slovenia
Bulgaria
Greece*
- 6,9
Denmark
1,0
Sweden
3,9
Finland
Estonia
7,6
Latvia
5,5
Lithuania
5,9
POLAND
4,3
* forecast
under 1,4
1,4 – 1,7
1,7 – 2,3
2,3 – 3,2
over 3,2
in 2009
Poland avoided recession & experienced the highest GDP growth in Europe
in 2010
developed at one of the highest pace in Europe
in 2011
Poland continued to develop at the pace three times higher then the EU average
2011 to Poland is an extraordinary head: First, 2011 is still in Poland and throughout Europe also filled in the “world will face a second round of economic recession, “the shadow; Second, it is in this difficult period, and drastic changes in Poland is still the seventh parliamentary elections. Overall speaking, the current economic situation in Poland than in some EU countries is better, but the situation is not satisfactory, not to mention some of its government measures, such as reforming the tax system, reduce unemployment, increase pensions and reduce the fiscal deficit, etc. have no significant effect, and even the Government’s flood relief 2010 was also ineffective opposition parties known as the “heart of stone.” Therefore, the political parties to participate in parliamentary elections regarded the debate focused on economic development and reform issues, and also shows the economic development in Poland 2011 ruling and opposition parties on how important it is.
2009, Poland is the only EU country to achieve positive economic growth in 2010, the Polish economy has continued to grow 3.8% growth rate among EU countries in the forefront, especially in the 2011 EU countries are shrouded in debt crisis under the shadow of the Polish economy still maintained rapid growth momentum. In France, Britain, Italy and Spain and other EU countries traditionally weak economic situation, but in Poland, with its stable economic growth, has grown into Central and Eastern Europe and the whole EU economy the new leader, this is undoubtedly the Civic Platform party in this general election to win a major factor.
Portugal
- 1,6**
Source: Eurostat, 2012 14

15. Spending structure of Polish
households in 2010 (in %)
Communication 4.5
Other
Food
Health
Household equipment
Clothing & footwear
Alcohol & cigarettes
Housing & energy
Restaurants & hotels
Recreation & culture 7.8
Transport
Source: Central Statistical Office

16. FDI Attractiveness
Source: FDI Intelligence Report, September 2011

17. International recognition
6th place as the most attractive FDI destination
World Investment Report
2nd most attractive country for FDI in the next 3 years
European
Attractiveness
Survey
3rd place worldwide as the best quality location for manufacturing projects
FDI Benchmark
2nd location in Eastern Europe and Russia offering the greatest revenue opportunities over next three years
Emerging market growth strategies, practices and outlook

18. Top ranking destination countries by estimated jobs in Business Services
Poland ranked 8th in the top destination countries by estimated jobs
Poland no. 4 according to new jobs creation in Business Support Services
Poland ranks 4th placse as a country od destination for BPO’s right after US, Philipines and India
Source: IBM Global Location Trends, 2011

19. Geographical sources of FDI in Poland
Source: National Bank of Poland 2011

20. Poland’s foreign trade volumes in January-August 2012 – breakdown by countries (source: GUS)

21. Poland’s foreign trade volumes in January-August 2012 – breakdown by countries (source: GUS)

22. Foreign trade – in 2012 exports grow faster than imports
Poland’s foreign trade volumes (source: GUS)
Foreign trade – in 2012 exports grow faster than imports
According to the newest data from GUS, exports grew faster than imports in the first eleven months of PLN-denominated exports in current prices were higher by 8.1% y/y and amounted to PLN bln. Imports, in turn, increased y/y by 3.2%, hitting the level of PLN bln. Poland’s foreign trade deficit declined significantly to EUR 8.1 bln at the end of November, compared with EUR 14.3 bln at end-November 2011.

23. Major FDI investors in Poland
(FDI stock as of the end of 2010, in bn EUR)
Source: National Bank of Poland 2011

24. Corporate income tax rates across Europe
Entrepreneurs in Poland pay one of the lowest CIT in Europe
Source: 24

25. Companies with foreign shareholding in Polish regions
Number of entities with foreign shareholding
Number of persons employed
Poland
23 078
Mazowieckie
8 576
Dolnośląskie
2 274
Śląskie
2 077
Wielkopolskie
2 062
Małopolskie
1 471
87 956
Zachodniopomorskie
1 299
48 656
Pomorskie
1 246
57 335
Łódzkie
950
75 794
Lubuskie
777
36 252
Kujawsko-pomorskie
571
38 195
Opolskie
471
24 909
Podkarpackie
345
36 566
Lubelskie
343
20 875
Warmińsko-mazurskie
301
14 091
Świętokrzyskie
174
18 704
Podlaskie
141
9 175
Mazowieckie
Podlaskie
Lubelskie
Podkarpackie
Małopolskie
Śląskie
Opolskie
Dolnośląskie
Lubuskie
Świętokrzyskie
Łódzkie
Wielkopolskie
Warmińsko-
-Mazurskie
Pomorskie
Kujawsko-
-Pomorskie
Zachodnio-
Labour force M
Source: Central Statistical Office, 2011

26. Companies with foreign shareholding in Poland
Companies with foreign shareholding in Poland
23 thous. companies with foreign shareholding, majority of which are large companies
companies with foreign shareholding give job to over 1.5 m people, which represents 9.7% of all employed
companies employ more people than domestic firms (respectively 175 and 92)
they are characterized by far higher productivity than domestic firms (by 74.7%)
they are responsible for 52.8% of Polish exports and 54.2% of Polish imports
their employees are better paid and have access to know-how and newest technologies

27. Special Economic Zones (SEZ)
SEZ is a designated area in which manufacturing or distribution activities can be conducted on preferential terms
The purpose of SEZs is to support regional development
Currently, there are 14 SEZs in Poland, each consisting of several subzones
Total area of all SEZ – hectares
SEZ will operate until 2020, hopefully longer
Permits to conduct activities in SEZ are issued by the authorities of each SEZ
Minimum investment: EUR 100,000
Possibility of including the land selected by an investor into SEZ
Benefits of obtaining a permit to conduct activities in SEZ :
eligibility for income tax exemption – a form of regional aid
plot of land prepared for an investment project, available at a competitive price
free assistance in dealing with formalities relating to the investment project

28. Forms of regional aid Tax breaks Cash support
CIT exemption in Special Economic Zone
Real estate tax exemption
Cash support
Government grants through individual negotiations
Cash grants co-financed from the EU Funds
Nadrzędnym celem wdrożenia Systemu jest stworzenie finansowego instrumentu wsparcia, który umożliwiałby przekonanie przedsiębiorców planujących inwestycje w regionie Europy Środkowo-Wschodniej, a wahających się co do wyboru konkretnej lokalizacji, do umiejscowienia projektu w Polsce.

29. What do these objects have in common?

30. They were all invented by the Poles!
Car wiper blades - Józef Hofmann
Bullet-proof vest - Jan Szczepanik
Telectroscope - Jan Szczepanik
Kerosene lamp - Ignacy Łukasiewicz
ENIGMA cypher machine decrypting code -
Marian Rejewski, Henryk Zygalski, Jerzy Różycki
Hand mine detector - Józef Kosacki
Oil extracting device - Witold Zglenicki
Blue laser semiconductor – GaN – Sylwester Porowski

31. Created in Poland - examples
Products and services designed, created and produced in Poland (also supported by EU funds or winners of Polish Product of the Future Contest run by PARP)
Just a few examples from:
pharmaceutical sector, promoted during just finished Polish presidency in the EU, with the latest achievement:
modular prosthesis of human hand – company Promanus – characteristic feature is the full modularity allowing for fast and easy change in the configuration of the device, as well as the advanced measurement system allowing for processing of biological signals;
neutraceuthics (DNA chain) – Wroclaw Techno Park S.A. – modern technologies allowing for production of natural products – new generation diatery supplements (PARP beneficiary, 5.1 OP IE);
agriculture and food processing – the apple pictured represents the organic food, in 2010 there were 519 thous. hectars of organic cultivation, over 6 times more than in 2004;
Polish design – carpet produced by company Moho, made of life, pure wool; + success of Polish Expo 2010 in Shanghai,
- ICT solutions, computer game (np. Wiedźmin);
ecological sector and energy sector:
solar collector (WATT company) of a high energy efficiency,
small, 3 wheel electric car – SAM, produced by company Impact Automotive Technologies near Warsaw,
Solaris – city bus with electric drive system; such buses can be seen in many European cities, as 60% of production of this company is exported.
aviation – Avio Splot – company active in designing, development and production of low pressure turbins and engines (used in aviation); Aviation Valley in Rzeszow.

33. Emerging market, yet a mature & secure investment location
Unemployment rate at 12%
(at European Union average)
Inflation rate at around 3,5% vs. 3% average for EU
Attractive salary levels up to 40% lower vs. Western
Europe
VAT: 23%, Income Tax: 18-32%, Corporate Tax – 19%
Youngest population in Europe
(50% of Poles below age 37)
2 hours to London
2 hours to Moscow
7 hours to New York
1 hour to Berlin
8 hours to Tokyo
Sources: International Monetary Fund, Ministry of Economics in Poland, Polish Central Statistical Office, Polish Foreign Investment & Information Agency

34. Sectors of opportunities
Business Services Sector
Research & Development
automotive
machinery
food-processing
aviation
energy: nuclear power plant, renewable energy sources

35. Effective incentives system
Why Poland? Summary
Availability of skilled human resources
Economic and political stability
Strategic location – gateway to the EU
Effective incentives system 35

36. Thank you for your attention
HENRYK SANECKI
Consul, First Counselor
Head of Trade & Investment Section
Consulate General of the Republic of Poland
Presentation upon data given by Polish Information and Foreign Investment Agency
( PAIIZ: )