Ghent, February 26, 2013 Embassy of Poland Trade & Investment Promotion Section Krzysztof Turowski, Counsellor, Head of Section INVESTMENT CLIMATE AND BUSINESS OPPORTUNITIES IN POLAND

Poland - Key Facts Area: sq km – 6th in European Union Population:38,12 million – 6th in European Union Currency:Polish Zloty (1 USD ~ 3.1 PLN, 1 EUR ~ 4.1 PLN) GDP:EUR 371,878 billion (2011) – GUS estimation EUR billion (Q3 2012) – GUS estimation GDP per capita: EUR (2011) GDP growth:1.6% (2009), 3.9% (2010), 4.3% (2011), 2.0% (2012 – preliminary data) Membership:EU, NATO, OECD, WTO, Schengen Zone

Competitive Advantages Location & economic fundamentals  strategic location in continental Europe  part of trans-European transportation corridor  third fastest growing EU country in million consumers Location & economic fundamentals  strategic location in continental Europe  part of trans-European transportation corridor  third fastest growing EU country in million consumers Investment incentives  tax exemptions in 14 Special Economic Zones  grants co-financed from the EU (EUR 90 bn) Investment incentives  tax exemptions in 14 Special Economic Zones  grants co-financed from the EU (EUR 90 bn) Labor force  young, well-educated work force  ca 11% of university students in the EU  455 universities & high education schools  language proficiency  increasing labour productivity Labor force  young, well-educated work force  ca 11% of university students in the EU  455 universities & high education schools  language proficiency  increasing labour productivity 1000 km radius 250 mn people 2000 km radius 550 mn people

Polish economy in figures – GDP growth in recent years * Preliminary data

Polish economy in figures – inflation rate EU 27 average in 2012 = 2,6%* - source Eurostat * Provisional data Source – Central Statististical Office

Polish economy in figures - unemployment rate Mazowieckie 10.2% Podlaskie 13,8% Lubelskie 13,0% Podkarpackie 15,1% Małopolskie 10,6% Śląskie 10,4% Opolskie 13,2% Dolnośląskie 12,5% Lubuskie 15,1% Świętokrzyskie 14.8% Łódzkie 13,2% Wielkopolskie 9,1% Warmińsko- -Mazurskie 19,5% Pomorskie 12,4% Kujawsko- -Pomorskie 16,7% Zachodnio- -Pomorskie 16,7% 15% > % < Source: Central Statistical Office, as of September %

Corporate Income Tax (CIT) rate 19% Personal Income Tax (PIT) rate 18% and 32% Value added tax (VAT) basic rate: 23% reduced rates: 8%, 5% export rate: 0% Social Security Tax paid by employer between 19.48% and 22.14% Tax rates

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

Polish economy in figures – foreign trade * Estimation – Ministry of Economy in EUR billion

Polish economy in figures – trade exchange with the EU countries Export 1.Germany: ,34 2.U.K:9 552,38 3.Czech Rep:8 910,15 4.France :8 274,55 5.Italy: 6 901,83 6.Netherlands:6 340,71 7.Sweden:3 757,54 8.Slovakia:3 637,22 9.Hungary:3 428,84 10.Belgium:2 927,69 Import 1.Germany: ,52 2.Italy:7 785,80 3.France:6 010,20 4.Netherlands:5 833,43 5.Czech Rep.:5 542,53 6.U.K.:3 683,28 7.Belgium:3 381,77 8.Slovakia:3 166,09 9.Spain:2 962,14 10.Sweden:2 852,17 Preliminary data of the Ministry of Economy; in EUR million Polish-Belgian commercial turnover: 6 309,46 (9 th place)

FDI flows worldwide & in Poland in 2011 (bn USD, UNCTAD) +46.7% +17% Source: UNCTAD, World Poland

World Investment Report 2011 Source: World Investment Report, 2011 World’s most attractive destinations for Foreign Direct Investments Rank 2011 (2010) Country 1China 2USA 3India 4Brazil 5Russia 6 (12)Poland :: 9Germany 13UK 14Singapore Growth reasons: 1.Cash reserves of MNCs 2.Restructurization / Delocation 3.Undervalued companies According to UNCTAD the key factors attracting FDI to Poland are: rapidly expanding domestic market size of the domestic market flexible & skilled labour force high quality/cost ratio

Source: AmCham, KPMG Investment attractiveness of Poland – strengths

Source: AmCham, KPMG Investment attractiveness of Poland – weaknesses

Tax breaks  CIT exemption in Special Economic Zone  Real estate tax exemption Cash support  Government grants through individual negotiations  Cash grants available through EU Funds Forms of regional aid

Special Economic Zones  A special economic zone (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  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 from 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

Government grants Production  automotive  electronics  aviation  biotechnology  „big investment” in other sectors Program of support of investments of considerable importance for Polish economy Purpose of support  development of innovativeness and competitiveness of Polish economy Result of support  50 programmes of total amount 13,5 bn PLN (since 2004 r.)  33,7 thous. of new jobs Source: PAIiIZ, Ministry of Economy Modern services  ICT  SSC  BPO  R&D activity

 20 m people aged 35 and less  almost 2 m students  more than 430 thous. graduates every year  more than 90% of students know foreign languages  20 m people aged 35 and less  almost 2 m students  more than 430 thous. graduates every year  more than 90% of students know foreign languages  455 higher education institutions 18 universities 22 technical universities 95 academies of economics  growing number of science students  455 higher education institutions 18 universities 22 technical universities 95 academies of economics  growing number of science students Students and graduates Source: Central Statistical Office Main academic centers POZNAN WROCLAW WARSZAWA KRAKOW LODZ SZCZECIN TRI-CITY KATOWICE BYDGOSZCZ/TORUN BIALYSTOK OLSZTYN ZIELONA GORA OPOLE KIELCE LUBLIN RZESZOW 201 > 151 – – – < No. of students (thousands) CityStudentsGraduates Warszawa Wroclaw Katowice Krakow Poznan Tricity Lodz Students in Poland

Why Poland ? Summary Availability of skilled human resources Economic and political stability Effective incentives system including EU-Funds Strategic location – gateway to EU Innovative economy

Trade & Investment Promotion Section Embassy of Poland in Brussels Av. de l’Horizon Brussels Phone Fax Thank you for your attention!