Top Destination for Investment ROMANIA Top Destination for Investment December, 2010

Romania the largest market in South Eastern Europe Area: 238,391 km2 (9th largest in EU) Population: 21.5 million (7th largest in EU) Capital city: Bucharest 2.1 million European Union status Member since January1st,2007 Affiliation: NATO, WTO,WB, IMF. Domestic currency: LEU (RON) 1EUR=4.2920 RON 1USD=3.0543 RON (As Nov. 03, 2010) Official language: Romanian Administ. division: 41 counties and Bucharest 1000 km radius 1500 km radius Bucharest

Pan European Corridors crossing Romania Helsinki – Kiev - Bucharest – Odessa/Alexandropoulos IV Dresden/Nurnberg – Bucharest Constanta/Thessaloniki/ Istanbul VII The Danube river - 2,300km IX Helsinki – Kiev - Bucharest –Odessa/Alexandropoulos

Significant Potential for Growth 2009 GDP Growth Rate Poland 1.7% Slovakia -4.7% Czech Republic -4.8% Bulgaria -5.0% Hungary -6.3% Romania -7.1% Slovenia -7.8% EU 27 -4.2% Source: EUROSTAT; Source: National Institute of Statistics; GDP EU 27 Rapid and sustainable GDP growth rate between 2000-2008; Severe adjustment of GDP in 2009 triggered austerity measures and a Governmental anti-crisis program; Forecast 2010: -2%; 2011: + 1.5%

Inflation Rate Inflation Rate Annual Average Inflation Rate 2009 Romania 5.6% Hungary 4.0% Poland Bulgaria 2.5% Slovenia 0.9% Slovakia Czech Rep 0.6% EU 27 1.0% Inflation Rate Source: Eurostat Source: National Institute of Statistics; National Bank of Romania is targeting the inflation; Disinflation policy to join Euro zone in 2015; Target 3.5% inflation rate in 2010 and 3.0% for 2011;

Cities with more than 100,000 inhabitants Human Capital Demographics Young population (more than 50% under 40 years old) Almost 21.5 million people Talent pool 106 universities, 631 faculties 125,000 university graduates/yr Availability of technical engineers High industrial experience Flexibility Foreign language skills Cities with more than 100,000 inhabitants more than 1,000,000 inhabitants 300,000 – 400,000 inhabitants 200,000 – 300,000 inhabitants 100,000 – 200,000 inhabitants Source: National Institute of Statistics

Labor Cost – A debated topic Gross average monthly wages 2009 - EUR Gross average monthly wages EUR Source: Vienna Institute for International Economic Studies Source: National Institute of Statistics; Romania will hold on its competitive advantage related to labour cost; 7% decrease in 2009 against 2008; Adjustment of the salaries growth in the administration system;

10 Major University Centers TARGU - MURES CLUJ-NAPOCA 14 thou S: 79% P: 21% IASI 70 thou S: 93% P: 7% 67 thou S: 90% P: 10% SIBIU BRASOV 24 thou S: 92% P: 8% 46 thou S: 69% P: 31% GALATI 21 thou S: 87% P: 13% TIMISOARA 51 thou S: 89% P: 11% PITESTI BUCURESTI 20 thou S: 86% P: 14% CRAIOVA BUCURESTI 34 thou S: 89% P: 11% 376 thou State: 67% Private: 33%

Source: National Bank of Romania Inward FDI Flows 2009 Annual Inward FDI Poland 8384 Romania 3488 Bulgaria 2845 Czech Republic 1935 Hungary 800 Slovenia - 48 EUR million Source: Vienna Institute for International Economic Studies;   Source: National Bank of Romania Second largest inward FDI receiver in Central - Eastern Europe; Stock EUR 50 bill. (1990–2009) EUR 30 bill.attracted over the last 4 years only;

FDI by Field of Activity Source: National Bank of Romania (1990- 2009) Total Economy Manufacturing Source: National Bank of Romania

Top 10 Investing Countries Source: National Bank of Romania (1990-2009) Netherlands Austria Germany France Greece 21.8% 18.1% 13.4% 8.5% 6.6% Italy Cyprus Switzerland Belgium USA 5.1% 4.7% 4.2% 2.2% 2.1% 5 1 2 3 4 6 8 7 9 10   Source: National Bank of Romania

Main foreign companies by sector Sector of activity: RENAULT; FORD; DELPHI; DURA; HONEYWELL; LEAR; TRW; YAZAKI; CALSONIC-KANSEI; CONTINENTAL AG; MICHELIN; PIRELLI; AUTOLIV; INA SCHEFFLER Automotive SOLECTRON; CELESTICA;NOKIA; SYSTRONICS; ELCOTEQ; BENCHMARK; ELBIT; SELEX; KATHREIN; Electronics MICROSOFT; ORACLE; HP; INTEL; IBM; CISCO; ACI;AMAZON; SIEMENS; WIPRO; SIVECO; ERICSSON; IT services ALPHA Bank; ING; ERSTE Bank; RAIFFEISEN Bank UNICREDIT; SOCIETE GENERALE; MILLENIUM; HVB; Financial services VODAFONE; ORANGE;UPC; OTE; ZAPP; Telecom RENAULT TECH.; INFINEON; ALCATEL-LUCENT; FREESCALE; MICROCHIP; ALVARION; R&D Centers DHL; TNT; MAERSK; HAPAG; FRANS MAAS; Logistics Gedeon-Richter; GlaxoSmithKline; Sandoz; Ranbaxy; Zentiva; Pharmaceutical

Highway Infrastructure Development - 2014 SUPLACU DE BARCAU BORS IASI MIHAILESTI PIATRA NEAMT ORADEA SABAOANI BICAZ CLUJ TARGU MURES ALBITA SOVATA GHEORGHIENI CAMPIA TURZII PRAID NADLAC SIGHISOARA ARAD SEBES FAGARAS SIBIU DEVA ORASTIE FOCSANI BRASOV TIMISOARA LUGOJ PREDEAL COMARNIC BUZAU PLOIESTI PITESTI DRAJNA In use: 1099 km Under construction 1452 km Under design and expropriation 850 km FETESTI CERNAVODA BUCURESTI CONSTANTA CRAIOVA GIURGIU CALAFAT Source: CNADR

Ports and Airports International flights Domestic Flights Under construction SATU MARE BAIA MARE SUCEAVA IASI ORADEA CLUJ NAPOCA TARGU MURES BACAU ARAD TIMISOARA SIBIU BRASOV GALATI BRAILA SULINA TULCEA OTOPENI DROBETA TR. SEVERIN BANEASA M. KOGALNICEANU CRAIOVA CONSTANTA CORABIA OLTENITA MANGALIA GIURGIU

Mobile Communication Infrastructure – coverage area - Deregulated market; Major international players; More than 90% network coverage.

Foreign Investor Rights national treatment for foreign investors; foreign investment allowed in all sectors of economy; possibility to freely manage the company with full ownership rights; full repatriation of capital and profits; protection against expropriation and nationalization; Access to incentives and funds provided by EU and Romanian legislation;

Incentives and subsidies I FISCAL CODE: Tax exemption for reinvested profit; Possibility to use accelerate depreciation of equipments (50% in the first year); Possibility to carry forward the fiscal losses for a period of up to 7 years; Exemptions from the payment of taxes on buildings and land applied by local councils in Romania on basis of state aid schemes; Fiscal incentives for R&D: additional deduction of 20% from the eligible expenses from research and development activities; Subsidies for hiring and training new personnel.

Incentives and subsidies II STATE AID SCHEMES/INCENTIVES FOR: investments between EUR 05-10 mill and creating at least 50 new jobs; investments between EUR 10-20 mill and creating at least 100 new jobs investments between EUR 20-30 mill and creating at least 200 new jobs; investments over EUR 30 mill and creating at least 300 new jobs; investments over EUR 100 mill and 500 new jobs; eligible costs over Euro 50 mill; investments in green energy - 50% subsidy from the total eligible expenses for all regions in Romania, except Bucharest (40% subsidy); Eligible expenses: investment in tangible assets (land, buildings, new equipments, installations) and intangible assets. Intensity ceilings increase by 20% in case of small enterprises, and by 10% in case of medium sized enterprises (Exception: economic agents activating in the field of transport)

Map of Industrial Parks More than 40 Industrial Parks Both private & public Greenfield & Brownfield Access to utilities Package of services offered by the park administration Wide variety of activities to be developed Some created for high-tech activities

Competitive Taxation Corporate Tax VAT Social Contributions Employee Employer Bulgaria 10% 22% 13% 20.5% Romania 16% 24% 16.5% 27.75-38.45% Hungary 19% 25% 17% 32% Poland 18.71% 19.5-22.4% Slovakia 13.4% 35.2% Czech Rep. 20% 11% 34% Slovenia 22.1% 16.1% Source: National IPA’s Many Central and Eastern European countries increased the VAT in order to cope with economic crisis; Romania is maintaining the flat corporate tax;

EU financial assistance to Romania Romania could receive up to EUR 33 billion during 2007 – 2013 through EU funding; Financial support provided by European Regional Economic and Social Cohesion Policy is delivered through 3 main structural instruments and 2 funds dedicated to agriculture and fisheries.

Thank you for your attention!