1. INVESTMENT AID

2. WHAT IS INVESTMENT AID ???  OBJECTIVE: TO ENCOURAGE DIRECT INVESTMENTS -IN LESS DEVELOPED REGIONS -WITH HIGH ADDED VALUE  ELIGIBLE INVESTMENTS: INDUSTRIAL TECHNOLOGY CENTER SSC  ADMINISTRATIVE BODY: MINISTRY OF ECONOMY  FINAL DECISION ON AID: SLOVAK GOVERNMENT  LEGAL FRAMEWORK: ACT ON INVESTMENT AID

3. INVESTMENT AID GRANTED IN 2002-2011  118 SUPPORTED PROJECTS  6.37 BILLION € OF INITIAL ELIGIBLE INVESTMENTS  42.731 OF DIRECT NEW JOBS  1.26 BILLION € OF AID GRANTED  19,8% - AVERAGE AID INTENSITY  29 ths EUR - AVERAGE AID PER JOB CREATED  40% - SHARE OF TAX RELIEF FROM AID GRANTED

4. INDUSTRY – MINIMAL REQUIRENTS TO APPLY FOR AID  NEW PLANT OR EXPANSION  MIN. INVESTMENT TO LONG-TERM ASSETS DURING 36 MONTHS EUR 14 MIL., 7 MIL. or 3.5 MIL.  MIN. SHARE OF NEW MACHINERY - 60%, 50% or 40%

5. INDUSTRY – MIN. INVESTMENT & SHARE OF NEW MACHINERY INDUSTRY – MIN. INVESTMENT & SHARE OF NEW MACHINERY

6. TECHNOLOGY CENTER – CONDITIONS - CENTER FOR INOVATIONS OF PRODUCTS AND PROCESSES  NEW CENTER OR EXPANSION  MIN. INVESTMENT TO LONG-TERM ASSETS EUR 0.5 MIL WITHIN MAX. 36 MONTHS (new technology equipment, building, land, licenses...)  AT LEAST 60% OF NEWLY CREATED JOBS FOR EMPLOYEES WITH UNIVERSITY EDUCATION

7. SHARED SERVICE CENTER – CONDITIONS - center which provides services with a high added value, employs qualified experts in SOFTWARE DEVELOPMENT CENTRE, EXPERT SOLUTION CENTRE, HIGH-TECH REPAIR CENTRE, CUSTOMER SUPPORT CENTRE, HEADQUARTERS OF MULTINATIONAL CORPORATIONS  NEW CENTER OR EXPANSION  MIN. INVESTMENT TO LONG-TERM ASSETS EUR 0.4 MIL WITHIN MAX. 36 MONTHS (new technology equipment, building, land, licenses...)  AT LEAST 30% OF NEWLY CREATED JOBS FOR EMPLOYEES WITH UNIVERSITY EDUCATION

8. ELIGIBLE ARE COSTS OF:  LAND  BUILDINGS  NEW MACHINERY & TECHNOLOGY EQUIPMENT  LICENSES & PATENT RIGHTS OR  WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS AID IS CALCULATED FROM...

9. FORMS & INTENSITY OF THE AID  INCOME TAX RELIEF for 10 tax periods - PREFERRED FORM OF THE AID ------------  CASH GRANT (paid ex post)  CONTRIBUTIONS ON NEW JOBS (paid ex post) -DEPENDS ON SITUATION IN THE STATE BUDGET, USUALLY APPLICABLE ONLY IN DISTRICTS WITH HIGHER UNEMPLOYMENT ----------- -THE TOTAL AID IN ALL FORMS CANNOT EXCEED THE MAX. INTENSITY IN THE DISTRICT

10. MAX. AID – INDUSTRY

11. MAX. AID - TC & SSC:

12. MILESTONES SUBMISSION TO MoE EVALUATION SARIO DRAFT OF AID OFFER MoE ACCEPTANCE INVESTOR APPROVAL GOVERNMENT EVALUATION MINISTRIES WORKS ON PROJECT CAN START 20 days30 days STATEMENT MoE 10 days30 days AID OFFER MoE 30 days

13. EXAMPLE INDUSTRIAL INVESTMENT : 20 M EUR, 300 NEW JOBS REGION: DISTRICT POPRAD (ZONE C) – MAX. INTENSITY 38% MAX. AID = 38% * 20 = 7,6 M EUR MAX. AID IN PART. FORMS: 10 y TAX RELIEF = 3,7 M EUR CASH GRANT = 12% * 20 = 2,4 M EUR CONTRIBUTIONS ON NEW JOBS = 5ths EUR * 300 = 1,5 M EUR

14. EXAMPLE SSC PROJECT: 1 M EUR INVESTMENT, 150 NEW JOBS (WAGE COSTS= 150*24 MONTHS*1000 Eur= 3,6 M Eur) REGION: DISTRICT B.BYSTRICA (ZONE D) – MAX. INTENSITY 40% MAX. AID = 40% * 3,6 = 1,44 M EUR AID IN PART. FORMS: CONTRIBUTIONS ON NEW JOBS = 5ths EUR * 150 = 0,75 M EUR TAX RELIEF = 0,69 M EUR (BASED ON CALCULATION)