Austria – Romania Bilateral Economic Relations Arnulf Gressel, Commercial Attaché May 9, 2014, Brasov

2 Austrian exports to / imports from Romania Exports 1,8 bn. € (-8.3 %), Imports 1,1 bn. € (-0.6 %) in 2013 Source: Statistik Austria 2

Austria is top investor in CEE. 3 Source: Austrian National Bank as per

Also in Romania - Austria is top! Austrian investment amounts to 10.9 bln Euro – 18.5 % of total FDI. 4 Source: National Bank of Romania as per Dec 31, 2012

Austrian companies contribute to the development of the economy in Romania and the creation of valuable jobs.  modern technology - job creation – social values environmentally friendly – sustainable business concepts  over 1,000 active Austrian investors  6,687 companies with Austrian equity  around 100,000 direct employees 5

6 Important sectors IndustryAgricultureServicesResources 6

7 What makes Romania so attractive  Largest market in Eastern Europe, a region where Austrian companies are particularly active  Very favourable prerequisites in a variety of sectors  Cultural likeness to Austria  Very good foreign language capacities  Ambitious modernization plans, abundance of projects and opportunities  Financing through EU-structural funds  Cheap labour costs and low tax regime  Large Romanian community in Austria, consistent economic and historic ties

Despite difficult economic conditions Austrian companies continued investing. Apart from the biggest well known Austrian investments - OMV/Petrom und Erste Bank/BCR – many other Austrian companies with remarkable success in Romania, also SMEs. 8

New Austrian Projects – fresh investments

AUSTRIAN INVESTMENTS IN ROMANIA In 2011 Romania‘s biggest gas power station was built. OMV-Petrom has invested 500 mil. Euro in the 860 KW power station. This power station alone covers 8% of average energy consumption of Romania. OMV-Petrom

11 STRABAG AUSTRIAN INVESTMENTS IN ROMANIA STRABAG in a consortium with Vinci (France) and Aktor (Greece) has won end of 2013 the tender for 58 km of highway incl. tunnels and bridges for the first time crossing the Carpatian mountains on a highway from Comarnic to Brasov. This project will be the first mayor PPP project in traffic infrastructure in Romania.

12 Schweighofer AUSTRIAN INVESTMENTS IN ROMANIA In 2013/14 Schweighofer invests 150 mil. Euro in a wood processing plant in Covasna. In addition to this project Schweighofer already operates plants in Sebes, Radauti, Siret and Comanesti as the largest investor in this sector.

13 Raiffeisen Evolution Floreasca Sky Tower – the highest building in Bucharest with 137 m. Promenada Mall with a gross floor area of sqm on 6 levels with underground parking lots. build by STRABAG in 2013 AUSTRIAN INVESTMENTS IN ROMANIA

14 AUSTRIAN INVESTMENTS IN ROMANIA BILLA Romania Billa has increased it‘s network of shops in Romania to 80 outlets and belongs to the largest supermarket chains in Romnia.

15 Kronospan AUSTRIAN INVESTMENTS IN ROMANIA Largest Austrian investment in Brasov county, producing chipboards and OSB boards. Two factories in Romania (Brasov and Sebes), overall investment of EUR 500 Mio.

After entering the market in 2011 with an acqusition of a 26% share, Austrian Post Group has acquired the remaining 74% of Post Master at the end of 2012 and has become the largest private alternative postal service company in Romania. AUSTRIAN INVESTMENTS IN ROMANIA Österreichische Post AG – Post Master Romania

In 2012 Verbund has finalized the first phase of 99 MW in a wind park in Casmicea in Dogrugea region. The second phase has been finalized in 2013 reaching 226 MW in total. In 2012 Verbund has also built a 400-kV / 750 MVA transfomer station. AUSTRIAN INVESTMENTS IN ROMANIA Verbund

18 Issues for Austrian Investors in Romania  Political stability – predictability of policies  Better quality and more transparency for public tenders  Large prevalence of black labour – efficient tax administration  EU structural funds – better absorption  Skilled labor force – dual education  Research and development – results in higher value added for the local economy

Thank you very much for your interest! Va mulumesc pentru interesul dvs.! Rudolf Lukavsky Commercial Counsellor Austrian Embassy – Commercial Section T