INVESTMENT AND BUSINESS ENVIRONMENT REPUBLIC OF MACEDONIA INVESTMENT AND BUSINESS ENVIRONMENT Zorica Apostolska, Minister for Foreign Investments Zagreb, 4-7 December 2018

An outstanding business environment # 1 IN CONTINENTAL EUROPE (# 10 IN THE WORLD) BY “EASE OF DOING BUINESS” World Bank’s Doing Business 2019 Report #1 IN EUROPE IN EASE OF STARTING A BUSINESS World Bank’s Doing Business 2016, 2017 Reports #7 IN THE WORLD IN PROTECTING INVESTORS Doing Business 2019 Report #1 COST EFFECTIVENESS DESTINATION IN EUROPE European Cities and Regions of the Future 2016/17 #1 IN THE WORLD WITH LOWEST TOTAL TAX RATE LEVEL PWC and World Bank Group 2014 Study FASTEST GROWTH IN EUROPE BY FDI JOBS CREATED IN 2014 EY’s attractiveness survey Europe 2015 #5 BEST PLACE IN THE WORLD TO START A BUSINESS CNN’s Going Global edition 2

One of the best business environment in the world EASE OF DOING BUSINESS 2019, IFC & THE WORLD BANK GLOBAL RANKINGS #10 in the World #4 in Europe #1 in Eastern Europe Criteria includes: Starting a business, protecting investors, getting a construction permit, enforcing contracts, getting credit, cross-border trading, getting electricity, registering a property, paying taxes etc. 3

Educational system and workforce supply Map of technical universities and technical high-schools in Macedonia High intellectual capital: More than 90% of high school graduates in academic year 2016/17 enrolled in universities Multiple vocational high schools in each city PC for each student in primary and middle schools Full scholarships for each student enrolled in a top 100 university in the world €24 mil investment for 80 new laboratories in all Universities Engineering studies are widely spread across the country Tailor-made curriculums and training programs through Vocational Schools or Universities

Government Plan for Economic Growth - Financial support scheme for investments Pillar Programme Benefits SUPPORT FOR INVESTMENTS 1.1 Creation of new sustainable jobs 20% refund of the net salaries, up to €4,400 per person per annum 1.2 Cooperation with domestic suppliers 1% refund of the total annual purchases 1.3 Research and development centres (R&D) 50% refund of the expenses connected to the R&D centre, up to €1mil 1.4 Investments of significant economic interest to Macedonia 50% refund of the total investments costs (fiscal benefits and cash grants) 1.5 Increase of CAPEX and revenues 10% refund of all capital investments, up to €1mil 1.6 Acquisition of companies in financial difficulties 10% refund of the acquisition transaction, up to €1mil SUPPORT FOR COMPETI-TIVENESS 2.1 Increase of the competitiveness for entering new markets 10% refund of all capital investments, up to €1mil (in addition to programme 1.5) 2.2 Entering new markets and increase of revenues 20% refund of the expense connected to the process of entering new markets

Unparalleled Government Support PRE - INVESTMENT PHASE DECISION AND INVESTMENT OPERATIONAL PHASE AND AFTERCARE Support with business opportunity analysis and costs analysis Identification of project specific location factors Identification of supplier base Organisation of meetings with state and local authorities, legal advisors, foreign investors already present in Macedonia Site visit organisation Final office space/site decision support Information and data packs Management of all formalities Support in establishing local entities Facilitation of dialogue with all domestics counterparts Ongoing dialogue and access to top government Support with the recruitment process Facilitation of communication with potential business partners Universities linkages Coordination and support in contact with state and local authorities, recruitment agencies

Examples of companies already present in Macedonia 8

Connections, Culture and Lifestyle Brand New Int’l Airports in capital Skopje and Ohrid - €120M+ investment from TAV Summer and winter sports 4 national parks Lakes, several ski-centers World Economic Forum - Travel & Tourism Competitiveness Report 2013 "Attitude of population toward foreign visitors" MACEDONIA – 4th most friendly country in the world 5 International Schools with large mix of ex-pats International cultural events: - Ohrid Summer Festival - Struga Poetry Evenings - Skopje Jazz Festival - May Opera Evenings Largest wine producer in the region - 78 wineries in Macedonia - “Wine Road” travel programs

Macedonia – Host of World Congress of Entrepreneurs 2019