ROMANIA - Your Reliable Partner Office for Commercial and Economic Promotion Oslo 2017

Romania - Country overview GDP Growth Q3 2017 Best performance in EU 8.6% Area: 238,391 km2 2004 - NATO membership Capital: Bucharest FDI stock 70 bn Currency: RON EUR/ RON: 4.6 Bridge between East and West for 500 mil. consumers market 2007 - EU membership 2019 1st semester - EU Presidency Population: aprox: 21 mill Bucharest Metropolitan Area: 3mill 20 years of Strategic US-Romanian partnership S & P Moody’s Fitch BBB- Stable Baa3- Stable BBB- Stable Source: *NSI 2016; Eurostat

At a glance 2nd largest country in CEE and the largest in SEE in terms of size (the 9th in EU28) and population (the 7th in EU28) At the crossroads of 3 great markets: the European Union, the CIS (Commonwealth of Independent States) and the Middle East 1st in EU for average peak connection speeds and 6th for 4 Mbps broadband adoption in Q3 2016* Source: *Akamai 2016 Q32016 State of the internet

Potential for Growth GDP growth [%] FDI Inflows (EUR mld.) (Source: National Commission for Prognosis, Eurostat) 4.4% - European Commission Winter Forecast 2017 4-5% - National Bank of Romania FDI Inflows (EUR mld.) (Source: National Bank of Romania)

(Source: National Bank of Romania) Inflation Inflation rate [%] Target 2017: 2.5 (Source: National Bank of Romania)  Deflation due to:   reducing the standard VAT rate from 24% to 20%; the disinflationary influence exerted by the external environment; the dynamics of commodity prices on international markets (eg: oil, agri-food products); price reduction of tobacco products and the impact of the reduction in RCA policy charges. Inflation started to be on a positive trend at the beginning of 2017 due to the persistence of the internal inflationary pressures associated with the increase of aggregate demand and the rise in wage costs. Source: National Institute of Statistics

Forecast *2017: 5.8 (Source: National Commission for Prognosis) Unemployment Unemployment rate [%] Forecast *2017: 5.8 (Source: National Commission for Prognosis) The unemployment rate continues its downwards trend, reaching its lowest in the last 12 years, with 5.3% in April 2017. Source: National Institute of Statistics

Governance Programme 2017-2020 A visionary new ECONOMIC CODE, encompassing all economic provisions currently into force in a sole package, starting with January 2018 (2022) Tax reduction and simplification - maximum 50 taxes VAT cut to 18% in 2019 / second lowest VAT rate in EU28 Income tax reduced from 16% to 10% and social contributions from 39.25% to 35% in 2018 Cutting red tape / de-bureaucratization

Governance Program From Idea to Strategy Sustaining the business environment - Top priority of the Government A dedicated Ministry was set up (Ministry for the Business Environment, Commerce and Entrepreneurship), with its main objective to help companies. Targets: Build a stable, safe, attractive entrepreneurial system – through adequate legislation and instruments Foster the entrepreneurial initiative Support the entities that produce added value Develop alternative financial instruments Improve the entrepreneurial education Create partnerships to support the business environment Develop a better relationship between public authorities and companies

From Idea to Strategy Programs and Measures In order to implement the Strategy, a series of programs, laws and measures has been initiated: To support the companies that begin their activity: Start-up Nation Programme To protect and support their operations: Prevention Law, Public-Private Partnership Law (PPP), Trade and Service Programme, Microindustrialization Programme To support the internationalization of companies: Internationalization Programme To support the general development: Sovereign Investment and Development Fund - EUR 10 billion state shareholdings / EUR 3 billion in building highways and another EUR 3 billion in building 8 national hospitals

WHY TO INVEST IN ROMANIA Overview of the Romanian tax system VAT Social Security 24% 20% 19% 18% Employee Employer 16% 23% 2015 2016 2017/18 2019 Food products - 9% Corporate & Income Tax Rate Reinvested profit tax Tax System Dividend Tax Rate 0% 16% 5% 0% 16% 2016 2017 2018 IT&C - 0 % income tax for employees BA -14 technical specializations available Employee is hired on a software engineer/ programmer/ software analyst position Annual revenue per exempted employee must be over USD 10 000 R&D - 0 % corporate tax for R&D companies 0 % income tax for employees Deduction of R&D eligible expenses: depreciation of R&D equipment, salaries for R&D personnel; 50% of these expenses can be deducted from the taxable income

Investment Support STATE AID 2014-2020 Total Budget EUR 1.5 billion STATE AID - GD 807/ 2014 Minimum EUR 10 mil. investment Construction of new buildings Renting costs for existing buildings CAPEX aimed at technical installations and tools Acquisition of intellectual property STATE AID - GD 332 / 2014 Minimum 10 new jobs/ per location Salary costs registered for a 2 consecutive year period resulted as a direct consequence of the investment Salary costs are comprised of gross average annual salary plus benefits FISCAL INCENTIVES Investors that set up manufacturing locations or offices in an industrial, scientific or technological park benefit from : Exemption on land, building and urban planning tax Taxes charged for changing land destination

Ports and Airports SATU MARE ORADEA SUCEAVA TIMISOARA CRAIOVA SIBIU TARGU MURES CLUJ-NAPOCA BACAU IASI BUCURESTI OTOPENI M.KOGALNICEANU DROBETA TR. SEVERIN GIURGIU MANGALIA CONSTANTA SULINA TULCEA BRAILA GALATI BAIA MARE ARAD BRASOV 130 direct flights leading to 76 destinations in 31 countries worldwide 14 international airports and 8 major ports Constanta Port - the deepest and largest port at the Black Sea. Romania is now more connected than ever, boasting a transport network of 14 international & domestic airports and 8 major ports International Fligths Ports Under construction Aircraft trafic reached 16 mill. passagers in 2016, up by 20% compared to 2015

Key facts for top tech oriented industries in Romania INDUSTRY SIZE KEY PLAYERS KEY PROJECTS AEROSPACE EUR 400M Airbus Helicopters EUR 15m investment Sonaca EUR 12m investment Premium Aerotec EUR 50m investment IT&C EUR 3.6B Siemens software dev. worked on the Mars Rover Deutsche Bank EUR 40m investment LiveRail was acquired by Facebook for EUR 600m EUR 22B AUTOMOTIVE Continental EUR 26m investment in R&D center Daimler EUR 300m investment for gear boxes Ford EUR 200m investment for production of new model Source: Invest Romania

WHY TO INVEST IN ROMANIA Value for Money BUCHAREST BERLIN LONDON Consumer Prices $100 $214 $170 Rent Prices $100 $296 $184 Restaurant Prices $100 $250 $171 Groceries Prices $100 $294 $170 Standard of living equivalency net salary $1,975 $3,622 $5,809 Sources: Numbeo, May, 2017

WHY TO INVEST IN ROMANIA Romania Largest Market in the SEE Gas prices ranking Labor costs ranking 1 Lowest gas prices 5th lowest electricity price in Europe 2 RO UKR MD BG SRB HU One of the most competitive labor force in the EU Historically, investing in Romania has never been easier, with the government becoming a partner for businesses and entrepreneurs Maximum broadband speed World Bank ease of doing business 1 36 First in EU for average peak connection speeds Ahead of many EU or neighbouring countries Source: World Banks, Doing Business Report 2016; Akamai Q32016

WHY TO INVEST IN ROMANIA Hourly labour costs in EU Source: Eurostat

WHY TO INVEST IN ROMANIA Industrial Parks 1 4 2 3 13 11 9 Status at regional level (April 3, 2017) North West Region: 16 parks West Region: 6 parks South West Region: 6 parks 1 South Region: 21 parks South East Region: 2 parks North East Region: 5 parks Center: 18 parks Bucharest: 2 parks 76 industrial parks spread across Romania - both private and public ownership Access to utilities & benefits packages according to their focus Exemption from land, building and urban planning taxes

WHY TO INVEST IN ROMANIA Skilled labor force 97% 97% of Romanian high school students study 2 or more foreign languages The predominant foreign languages taught are English, French, German and Spanish, many other languages are also taught - Japanese, Arabic, Hebrew, Nordic languages a.s.o. University students in Romania are proficient in [% of total]: 90% 26% 17% 8% 5% Source: ABSL, NIS, Eurostat

WHY TO INVEST IN ROMANIA Skilled labor force Source:Brainspotting

Conclusion: Romania – Top Investment Destination Romania international rankings: 36th out of 190 economies in the top "Ease of doing business", "Doing Business 2017" - World Bank Report 14th according to the World Investment Report 2017 (+2 positions in the EU28 ranking compared to the previous year) 4th in “Top 20 destination countries by FDI job creation” (+38% new jobs created 2016 vs. 2015 - Ernst&Young, European Investment Monitor - EIM 2017)

Romania – Norway Economic Relations Bilateral Trade Bilateral trade in 2016: Total trade: 262.3 mil. EUR Romanian Exports: 220.3 mil. EUR Imports from Norway: 42.0 mil. EUR 21

Romania – Norway Economic Relations Bilateral Trade Bilateral trade 9 month 2017: Total trade: 178.8 mil. EUR Romanian Exports: 148.0 mil. EUR Imports from Norway: 42.0 mil. EUR 22

Romania – Norway Economic Relations Bilateral Trade Main Romanian Exports to Norway in 2017: Semi-equipped ship bodies 50.1% Electrical equipment 19.3% Metal products 9.6% Optical instruments 6.5% Textile, clothing 5.8% Chemical products, rubber 5.0% 23

Romania – Norway Economic Relations Bilateral Trade Main Romanian Imports from Norway: Electric equipments 65.0% Optical instruments 13.6% Metal products 8.1% Chemical products 6.4% Mineral products 2.6% 24

Romania – Norway Economic Relations Investments Norwegian investments in Romania: 82.7 mil. EUR registered capital (Romanian statistics) ranking 31st among foreign investors in Romania, in terms of capital 375 Norwegian companies registered ranking 30th among foreign investors, in terms of number of companies 25

Conclusion: Romania – Sustainable and Reliable Partner for Norway Plenty of opportunities to be further explored and materialized through Romanian – Norway cooperation! We are waiting for you! Contact: oslo.economic@mae.ro 26