1. www.fipa.gov.ba INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW OPPORTUNITY Sarajevo, March 2011 “KOIMA“ DELEGATION VISIT TO BIH

2. 1.Stable financial sector 2.Favorable trade and other agreements 3.Favorable legislation 4.Favorable tax and customs system 5.Competitive labour force 6.Foreign Investors Support Fund BUSINESS ENVIRONMENT REASONS TO INVEST IN BIH www.fipa.gov.ba

3. The most stable currency in SEE (1KM = 0,51129 EUR) Constant growth of foreign currency reserves Foreign ownership in private banking sector in BiH is 86% 1. Stable financial sector Annual inflation rate, % Source: Agency for Statistics of BiH, IMF

4. 200520062007200820092010Total Sarajevo Stock Exchange 283.95334.75651.56243.92112.02108.551,919.69 Banja Luka Stock Exchange 142.19198.62379.67140.6592.28176.201,221.80 Total426.14533.371,031.23384.57204.30284.753,141.49 Stock exchange turnover in million € www.fipa.gov.ba Source: SASE, BL Stock Exchange

5. www.fipa.gov.ba 2. Favourable trade and other agreements Free Trade Agreements: - Central European Free Trade Agreement (CEFTA) - 30 mill consumers - Free Trade Agreement with Turkey - 70 mill consumers Preferential Trade Agreements: - EU, 27 countries - 500 mill consumers - Preferential export regimes with: USA, Australia, Canada, Japan, New Zealand, Switzerland, Norway, Russia Agreements on Avoidance of Double Taxation - with 35 countries Agreements on Promotion and Protection of Investments – with 35 countries www.fipa.gov.ba

6. Free Trade Agreements Central European Free Trade Agreement (CEFTA) - 30 mill Free Trade Agreement with Turkey - 70 mill Preferential Trade Agreement with EU, 27 countries - 500 mill Preferential export regimes with USA, Australia, New Zealand, Switzerland, Norway, Russia, Japan, Canada and Iran

7. www.fipa.gov.ba FDI Law National treatment of foreign investors Repatriation of profits Protection against nationalization, expropriation or similar measures Right to freely employ foreign nationals, subject to the labour and immigration laws in BiH Corporation organization There are no citizenship/nationality limitations for partners or the members of the menangment and supervisory boards 3. Favourable Legislation

8. Tax system –Unique VAT rate of 17% –Profit tax is 10% –Favorable incentives and tax exemptions Customs system –Exemption from payment of customs duties for foreign investors –Customs rates 0-15% 4. Favorable tax and customs system www.fipa.gov.ba

9. 5. Competitive labour force Educated & skilled Efficient, creative and innovative Foreign language spoken Price competative (in comparison to other EU countries) Average net wage in 2010 - 408 EUR www.fipa.gov.ba

10. Established by Council of Ministers Budget 1 mill € Foreign investment projects in production, research, development etc. (except trade, banking, leasing and insurance) Conditions: - Number of employees - Investment location - Value of investment - Export of products - Environment protection 6. Foreign Investors Support Fund

11. FDI by Sectors (May 1994 – December 2010) Source: CBBH, MoFTER, FIPA Source: CBBH, MoFTER i FIPA FDI inflow in BiH, by years, mill €

12. Million € www.fipa.gov.ba Source: CB BiH, MOFTER, FIPA Top investor countries in BiH May 1994 - December 2010 – Total amount 6.1 billion €

13. www.fipa.gov.ba Energy sector Toursim sector Wood industry Metal processing industry Automotive industry Constructuction industry Agriculture and food processing Textile and footwear ICT The most attractive sectors

14. Investment opportunities Availability of natural resources and supply networks Highly competitive overall cost structure Privatization process Concessions Bankruptcy opportunities Investment projects Joint ventures Investment locations www.fipa.gov.ba

15. FIPA support To inform you on: FDI related legislation Macroeconomic indicators Business environment Investment projects, privatisation opportunities, available tenders To advice you: How to set up a company To identify location for Greenfield investment or business service providers To support you to: Implement projects Cooperate with local private sector Organise meeting with responsible authorities ALL FIPA SERVICES ARE CLIENT-ORIENTED AND FREE OF CHARGE! www.fipa.gov.ba What we can do for you?

16. www.fipa.gov.ba INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW OPPORTUNITY THANK YOU FOR YOUR ATTENTION Banja Luka Office Ðure Daničića 1/III Phone/ Fax: : ++387 51 226 180 E-mail: banjaluka@fipa.gov.ba Mostar Office Rade Bitange 30 Phone /Fax: ++387 36 558 815 E-mail: mostar@fipa.gov.ba www.fipa.gov.ba Sarajevo Office Avaz Twist Tower, Tešanjska 24A Phone: +387 33 278 080 Fax: +387 33 278 081 E-mail: fipa@fipa.gov.ba