Jihlava, CZECHINVEST Investment and Business Development Agency Hana Medricka Director of Regional office for Vysocina region

Content 1.CzechInvest 2.Operational Programme Enterprise and Innovation 3.Investment incetives

Investment Incentives Act changes Investment and Business Development Agency -- State contributory organisation of the Ministry of Industry and Trade of the Czech Republic Historical development: Support of investment inflow 1993 Facilitating business support Services and technology centres Introduction of investment incentives, development of infrastructure for investors 2003 Support for small and medium-sized enterprises Source: CzechInvest, 2010 CZECHINVEST - DEVELOPMENT & POLICY

Support for: Investments with high added value Research and Development Business Innovation Development of Clusters Regeneration of Brownfields Development of the business environment Effective distribution of EU structural funds CZECHINVEST’S STRATEGY Source: CzechInvest, 2010

Regional Offices ╌ Coordinates and implements regional projects ╌ Provides consulting in the area of EU structural funds ╌ Represents CI in the regions Source: CzechInvest, 2010

Operational programme Enterprise and Innovation

OP ENTERPRISE AND INNOVATION (OPEI) Source of cofinancing: -- European Regional Development Fund (ERDF) Total allocation : -- CZK 100 billion* (i.e. approximately CZK 14.3 billion per year) -- This represents 11.75% of the total sum from EU structural funds for the Czech Republic. Governing body of OPEI: -- Ministry of Industry and Trade of the Czech Republic Programme characteristics: *Total: 3, 57 billion €, Per year: 510 million €

SOLUTIONS FOR THE NEEDS OF ENTERPRISES ‒ Technology in Enterprises ‒ Prospective Employees ‒ Innovation Process ‒ Infrastructure for Business ‒ Partners in Business ‒ Consultancy

PRIORITIES AND AREAS OF SUPPORT PriorityArea of supportProgramme% 1. Establishment of companies 1.1 Support for beginning entrepreneursSTART 2,6 1.2 Use of new financial instruments 2. Development of companies 2.1Banking instruments for the support of SMEs PROGRESS 21,8 GUARANTEE 2.2 Support for new production technologies and ICT in companies DEVELOPMENT ICT and Business- support Services ICT in Companies 3. Efficient energy 3.1 Energy conservation and renewable sources of energy ECO-ENERGY 4,0 4. Innovation 4.1 Increased innovation efficiency of companies INNOVATION 22,4 4.2 Capacities for industrial R & DPOTENTIAL 5. Business and innovation environment 5.1 Cooperation platformsCOOPERATION 38,4 PROSPERITY 5.2 Infrastructure for human resources developmentTRAINING CENTRES 5.3 Business infrastructurePROPERTIES 6. Business- development services 6.1 Support for consulting servicesCONSULTING 7,9 6.2 Support for marketing servicesMARKETING

Technology in Enterprises New technologies for: Production Information systems Communication systems DevelopmentICT in Companies

Prospective Employees … will help with creating a quality background for education Training centres Educa

Innovation Process Idea Need of realization of production -- production capacities Think outDevelop Produce and sell Prototype POTENCIALINNOVATION Innovation – Project for the protection of industrial property rights Need of realization of R & D -- capacities for R & D -- people, laboratories, laboratory equipment, etc. Placing on the market - Innovation projects

Infrastructure for Business Training of employees Research and Development Production in a company in science and technology parks, business incubators Training Centres Potencial Prosperity Properties

Partners in Businness Universities and R & D institutions Business incubators Technology transfer centres Technology platforms Clusters Science and technology parks Prosperity Cooperation

PRIORITIES AND AREAS OF SUPPORT PriorityArea of supportProgramme% 1. Establishment of companies 1.1 Support for beginning entrepreneursSTART 2,6 1.2 Use of new financial instruments 2. Development of companies 2.1Banking instruments for the support of SMEs PROGRESS 21,8 GUARANTEE 2.2 Support for new production technologies and ICT in companies DEVELOPMENT ICT and Business- support Services ICT in Companies 3. Efficient energy 3.1 Energy conservation and renewable sources of energy ECO-ENERGY 4,0 4. Innovation 4.1 Increased innovation efficiency of companies INNOVATION 22,4 4.2 Capacities for industrial R & DPOTENTIAL 5. Business and innovation environment 5.1 Cooperation platformsCOOPERATION 38,4 PROSPERITY 5.2 Infrastructure for human resources developmentTRAINING CENTRES 5.3 Business infrastructurePROPERTIES 6. Business- development services 6.1 Support for consulting servicesCONSULTING 7,9 6.2 Support for marketing servicesMARKETING

Actual and planned calls ProgrammeAcceptation of the application for registration Development III – ICT and BSS III – ICT in Companies III – Eco-energy III – Innovation – In. projects IV – Innovation – Patent II – Potencial III – Cooperation – Clusters II – Prosperity II – Training Centres – Marketing II – Consulting II.Plan for annoncing of a call:

INVESTMENT INCENTIVES FOR MANUCATURING Act on Investment Incentives No. 72/2000 Coll., as amended

╌ Acquisition of a new plant or expansion of an existing plant ╌ Minimum investment within 3 years ╌ CZK 100 mil. (app. EUR 3.5 mil. / USD 4.7 mil.) (C) ╌ CZK 60 mil. (app. EUR 2.1 mil. / USD 2.8 mil.) (B) ╌ CZK 50 mil. (app. EUR 1.7 mil. / USD 2.3 mil.) (A) ╌ At least half of the above minimum investment must be covered by own equity ╌ At least 60% from the total investment must be made into machinery ╌ Machinery equipment have to be new ELIGIBILITY CRITERIA

MINIMUM INVESTMENT, BY REGION SM OV LN LB DC PH RA KD TP JC PV CV CL MB LT MO UL PR PE PU PJ NA ST ZR KO PM NB PI HB SU PB TU NJ OP SY RO AB BK BR UO KV JN VS JE CR BE RK DO KT KH PS ME OC TA PZ BN HK TC ZN JI BI CH SO BM TR JH PT CB BV CK KI KM UH FM VYZL HO GROUPMINIMUM INVESTMENT A CZK 50 mil. / EUR 1.8 mil. / USD 2.4 mil. B CZK 60 mil. / EUR 2.1 mil. / USD 2.9 mil. C CZK 100 mil. / EUR 3.6 mil. USD / 4.8 mil. Valid from1 January to 30 June 2010

TAX INCENTIVE ╌ New firms: corporate tax relief for max. 5 years ╌ Existing companies: partial tax relief for max. 5 years ╌ Current corporate income tax rate = 19%

OUR SERVICES TO POTENTIAL INVESTORS -- Collect/provide information -- Identify sites and buildings -- Find potential suppliers / JV partners -- Liaise with government bodies -- Handle investment incentives -- Enable access to structural EU funds -- Provide aftercare services our services are free of charge Source: CzechInvest, 2010

CzechInvest - Key opportunities & Promotion of agency (Strategy & know-how) Dsd Ds sd

CzechInvest, the Investment and Business Development Agency, is an agency of the Ministry of Industry & Trade of the Czech Republic © Copyright, CzechInvest All rights reserved Thank you for your attention Hana Medricka Regional office for Vysocina Region Komenskeho Jihlava Tel.: /8