Business climate survey russia 2016 #bcsrussia Russian trade representation in Stockholm 2016-11-24 Business climate survey russia 2016

Regulatory environment #bcsrussia Agenda Current status Regulatory environment Future plans Conclusions and recommendations Business Sweden 19 September, 2018

A challenging but not pitch black 2015 #bcsrussia A challenging but not pitch black 2015 80% 40% 57% Rouble turnover make maintain + gain –ms – group currency turnover Swedish companies perform better than competition, but a weak ruble decreases profitability Source: Business sweden analysis Business Sweden 19 September, 2018

How are the companies dealing with the sour market? #bcsrussia How are the companies dealing with the sour market? 55% 85% 38% Companies undertake significant action on top and bottom lines to counter weak market Source: business sweden analysis Business Sweden 19 September, 2018

key indicators point at raised expectations #bcsrussia key indicators point at raised expectations 57% 51% negative effects decrease in magnitude and enable a beginning of a return towards growth Source: business sweden analysis Business Sweden 19 September, 2018

Regulatory environment #bcsrussia Agenda Current status Regulatory environment Future plans Conclusions and recommendations Business Sweden 19 September, 2018

Corruption continues to be a problem… #bcsrussia Corruption continues to be a problem… 2015 119th 9% russia has a long way to go but is moving forward and future expectations are on improvement Source: business sweden analysis, transparency international Business Sweden 19 September, 2018

Political turbulence is shaping the rules of the game #bcsrussia Political turbulence is shaping the rules of the game 41% 7% Business in russia is exposed to political risk, but the effects are not always negative Source: business sweden analysis, eu, usa, russian ministries Business Sweden 19 September, 2018

Local production and import substitution increase in importance #bcsrussia Local production and import substitution increase in importance 1/3 localized production for market access strongly encouraged. Complying companies benefit Source: business sweden analysis, russian ministries, tradingeconomics, fdi markets Business Sweden 19 September, 2018

Regulatory environment #bcsrussia Agenda Current status Regulatory environment Future plans Conclusions and recommendations Business Sweden 19 September, 2018

Swedish Companies are staying and expanding in russia #bcsrussia Swedish Companies are staying and expanding in russia Long-term plans for the russian market Geographical footprint set to increase after pullbacks 46% 39% 13% 18% Despite the tough current market, companies look ahead, utilizing free resources Source: business sweden analysis Business Sweden 19 September, 2018

70% 84% 88% 3 years Why stay in russia? #bcsrussia Why stay in russia? 70% 3 years 84% 88% Strong Swedish brands can reap profits today or in a near future Source: business sweden analysis Business Sweden 19 September, 2018

Regulatory environment #bcsrussia Agenda Current status Regulatory environment Future plans Conclusions and recommendations Business Sweden 19 September, 2018

Diverse range of factors affect strategic choices in russia #bcsrussia Diverse range of factors affect strategic choices in russia ? ? great opportunities combined with a high level of risk require a solid strategy Source: business sweden analysis Business Sweden 19 September, 2018

Choose your strategy based on your risk appetite and resources #bcsrussia Choose your strategy based on your risk appetite and resources High Low Risk/Reward The question is not if to be in russia, but how to be in Russia Source: business sweden analysis Business Sweden 19 September, 2018

Full report available on www.business-sweden.se #bcsrussia Full report available on www.business-sweden.se +46 703 909 473 andreas.giallourakis@business-sweden.se www.business-sweden.se @BusinessSweCEE Business Sweden 19 September, 2018