"A4rb_speech" – – do not delete this text object! narrow February 2016 Doing Business in Romania

"A4rb_speech" – – do not delete this text object! narrow 2 Economic & political stability EU membership: gateway to a 500 million consumers market Second largest country in CEE and the largest in SEE offering significant market potential in terms of size (the 9th in EU28) and population (the 7th in EU28), Geo-strategic location, at the crossroads of three great markets: the European Union, the CIS states and the Middle East Why to invest in Romania? (I)

"A4rb_speech" – – do not delete this text object! narrow 3 Why to invest in Romania? (II) 1st Romania is ranked 1st in the EU for: Growth of agricultural exports and IT services Naval vessels exports Total investment share in GDP Speed of internet connectivity Export growth rate for the past decade 2nd Romania is ranked 2nd in the EU for: Number of certified IT specialists Office space availability in metropolitan areas Wind energy potential Low labor cost Growth rate of automotive industry in the past decade 3rd Romania is ranked 3rd in the EU for: Oil reserves (with 600 million barrels) Export growth rate of R&D services Energy independence Romania is lagging in EU for: Waste recycling Highway buildup Size of mutual fund industry GDP and Insurance premium per capita Healthcare services (doctor salaries, fertility, life expectancy) Source: Ernst&Young

"A4rb_speech" – – do not delete this text object! narrow 4 Why to invest in Romania (III)- Potential for growth 2013: 3.4% (the highest in CEE and 2nd in EU) 2014: 2.8% (the 4 th growth in CEE and 9 th in EU) 2015: 3.6% (estimated) 2016 (4.1%), 2017 (4.2%) Forecasts * GDP Growth Rate Source: National Institut of Statistics, Eurostat, National Commission for Prognosis, National Bank of Serbia Last update: January 2016

"A4rb_speech" – – do not delete this text object! narrow 5 Why now? What is new? (I) Lowest taxes ever in the past 15 years Last update: December 2015 VAT rate cut from 24% to 20% Romania's corporate tax rate for 2015 is 16% (stable) The dividend tax rate is 5% on dividends paid to Romanian companies and to non-resident companies Total tax rate in RO stands at 42%, in contrast to 122% in the CZ, 95% in HU and 58% in POL

"A4rb_speech" – – do not delete this text object! narrow 6 Why now? What is new? (II) Potential for growth 2013: 3.4% (the highest in CEE and 2nd in EU) 2014: 2,8% (the 4 th growth in CEE and 9 th in EU) GDP Growth Rate * compared with the same quarter 2014 Source: National Institut of Statistics, Eurostat 3,4% 2,8%3,6% Q3 * growth in Q3, 2015 the 3 nd highest GDP growth in CEE after Czech Republic 3,6% Last update: January ,4% Best performe country in EU28 against the previous quarter

"A4rb_speech" – – do not delete this text object! narrow 7 Decreased corruption: “Street effect”- the people is pressing for a more responsible government and this is causing politicians to rethink how they approach things Unfortunately, Romania is still 58th in the 2015 Corruption Perceptions Index (Transparency International), with 46 points on a 0-to-100 scale, below the European Union average of Why now? What is new? (III) Source: National Institute for Statistic World bank doing business 2015 Global Competitiveness Report – World Economic Forum

"A4rb_speech" – – do not delete this text object! narrow 8 Why now? What is new? (IV) Unemployment in Europe Unemployment rates (age: from 15 to 74 years) Source: Eurostat

"A4rb_speech" – – do not delete this text object! narrow 9 Why now? What is new? (V) Human Capital 20 million people / young population (almost 50% under 40 years old) 103 universities, 590 faculties Over 400,000 Romanian students Over 100,000 university graduates /year Availability of technical engineers (15% of the graduates has engineering degrees) High industrial experience Foreign language skills (English, French, German, Spanish, Italian) English language studied by 90% of students Source: National Institut of Statistics

"A4rb_speech" – – do not delete this text object! narrow 10 Why now? What is new? (VI) Better communication between Government and business environment CRD (Coalition for Romania's development, a business lobby group which includes all relevant business groups for the first time in 25 years, including that of foreign investors) was created and has in 2015 started pushing for greater investment in infrastructure

"A4rb_speech" – – do not delete this text object! narrow 11 Why now? What is new? (VII) Competitive Labour Cost Romania will maintain its competitive advantage related to labor cost. The employers enjoy a flexible labor code. Romania has the second-lowest wage in EU. Source: Vienna Institute for International Economic Studies Gross average monthly wages (EUR) Last update: January2016

"A4rb_speech" – – do not delete this text object! narrow 12 Why now? What is new? (VIII) Competitive Taxation 16% corporate tax - one of the lowest in EU28 9% VAT for tourism and food products Starting with 1 st of January 2016 standard VAT rate decreased to 20% from 24% and dividend tax rate to 5% from 16% Romania is committed to reduce standard VAT rate from 20% to 19% in 2017 and corporate & income tax from 16% to 14% in 2019 Source: KPMG Last update: January 2016

"A4rb_speech" – – do not delete this text object! narrow 13 Source: Ministry of Transportation and Infrastructure I heard a lot of terrible things about Romania. What is true and what is not? political instability What is, actually, the reality: - (elections in 2016) - previous government lasted for about 3 years - government resigned after 2 days of demonstrations - a new government was named in about 2 weeks current Prime Minister is a former UE commissioner fiscal legislation instability -infrastructure investment is still moving slowly, but... special infrastructure tax was already lowered and will be removed starting Jan. 1, certain requirements for VAT registration were changed but it was implemented as a way to diminish VAT fraud - the Minister of Finance is a former EU specialist

"A4rb_speech" – – do not delete this text object! narrow 14 What kind of returns should I expect? What to invest into in Romania? RO, the 8th largest component of the MSCI Frontier Markets Index we believe the country is under-priced on the equity markets currency exchange rate stability at 38% in terms of debt/GDP, RO looks much better than POL (57%), HR (67%) or HU (79%) Central Bank independence has been a cornerstone of the economy for the past 25 years recent investments by foreign investors included banks, NPL (non- performing loans), large industrial factories, information technology, real estate a variety of private companies stand ready for foreign investments anywhere between 1 and 100 million euro Source: National Institut of Statistics

"A4rb_speech" – – do not delete this text object! narrow 15 #1 challenge for you: IPA Romania #2 challenge for you: Investment Fair in Bucharest