1. POLSKA AGENCJA INFORMACJI I INWESTYCJI ZAGRANICZNYCH May, 2014 Poland Investment Opportunities

2. Poland – basic facts Territory:312 700 km 2 – 6 th place in the EU Population:38.1 m. – 6 th place in the EU Currency:PLN (1 EUR ~ 4.17 PLN) GDP in 2013: $ 814 bn (PPP) Membership:EU, NATO, OECD, WTO, Schengen Zone

3. Location & economic fundamentals strategic location in continental Europe, between Germany and Russia one of the most robust economy in Europe part of trans-European transportation corridor stable economic growth and low inflation rapidly growing internal market Location & economic fundamentals strategic location in continental Europe, between Germany and Russia one of the most robust economy in Europe part of trans-European transportation corridor stable economic growth and low inflation rapidly growing internal market 1000 km radius 250 m people 1000 km radius 250 m people 2000 km radius 550 m people 2000 km radius 550 m people Attractive labor market young, well-educated workforce (1.7 m students) 460 universities & high education schools language proficiency increasing labour productivity crisis resilient country Attractive labor market young, well-educated workforce (1.7 m students) 460 universities & high education schools language proficiency increasing labour productivity crisis resilient country Appealing investment incentives tax exemptions in 14 Special Economic Zones (+) local tax reliefs government grants EU grants Appealing investment incentives tax exemptions in 14 Special Economic Zones (+) local tax reliefs government grants EU grants Competitive advantages

4. Poland – leverages Image Location Foreign direct investment Public aid

5. Poland – leverages Image Location Foreign direct investment Public aid

6. Poland – highlights LCD sets & Household appliances – largest producer in the EU Apples – the largest producer in Europe (second in the world) Champignon mushrooms – the largest producer in Europe Windows and doors – second largest producer in the EU (largest exporter of PVC and wooden windows in Europe) Tobacco – second biggest producer in the EU Furniture – Third largest exporter in the EU Poultry – Third largest exporter in the EU Aviation sector - Virtually every passenger aircraft in the world carries at least one part made in Poland Yachts – European leader in the production of yachts up to 9.5 m

7. Source: Ankieta Koniunkturalna 2014,AHK Investment attractiveness of the CEE region, AHK 2014 Scale: 1 - 6 (very attractive)

8. Poland a leader of growth in Europe Source: E&Y Attractiveness Survey, June 2013 1 st place in the CEE region – the most competitive country in the region. 1 st place in terms of number of the investment projects in the CEE. 3 rd place in the whole Europe in terms of created jobs due to FDI (13 111 jobs – only the UK and Russia were better). 3 rd place in Europe in Europe in terms of created jobs per 1 project.

9. Source: UNCTAD, World Investment Prospects Survey 2009-2011, World Investment Report 2013. Main advantages of Poland: Stable economic situation Market growth Size of internal market Access to regional markets Cooperation with suppliers and business System of investment incentives Main advantages of Poland: Stable economic situation Market growth Size of internal market Access to regional markets Cooperation with suppliers and business System of investment incentives Poland is among the 15 most attractive investment locations in the world World Investment Report

10. 45th placeThe best result in the history3rd place in credit availabilityPoland among 15 countries catching up the fastest Source: Doing Business Report 2014 10 place improvement Doing Business 2014

11. Corruption Perceptions Index 2013 Transparency International Source: Corruption Perceptions Index 2013 Transparency International Transparency International: Poland has the lowest corruption among CEE countries Index value (higher score = less corruption). Numbers in brackets indicate position in ranking of 176 countries

12. Poland – leverages Image Location Foreign direct investment Public aid

13. Source: PAIiIZ, NBP 2013. shopping centers privatization shopping centers privatization assembly lines outsourcing centers (BPO), transport infrastructure Next stage: top quality creativity Next stage: top quality creativity Market seeking Resorce seeking Strategic capabilities 1990-’95: internal market 1990-’95: internal market 1995-2000: labour force low costs 1995-2000: labour force low costs >2000: quality/cost ratio >2000: quality/cost ratio KPO, R&D FDI flow to Poland 1994 - 2013

14. Total stock: EUR 178 bn Source: National Bank of Poland, 2013.. EUR bn FDI stock in Poland, end of 2012

15. Projects successfully completed by PAIiIZ in 2012 & 2013

16. Poland – leverages Image Location Foreign direct investment Public aid

17. Imagine Cup is a global competition focused on finding IT solutions to real world issues. In 2012 students from Technical University in Gdansk and Adam Mickiewicz University in Poznan took the 2nd and 3rd place respectively. Students and graduates – achievements Source: www.microsoft.com, www.us.edu.pl 2011: Polish team from University of Silesia is a special winner of Samsung Application Contest. Every third student doing internship in Microsoft HQs in Redmond (USA) comes from Poland. The winners of the International Olympiad in Informatics (IOI) belong to the best young computer scientists in the world. In 2008 Polish team took 1st place ex-aequo with Chinese one. The third place individually was won by Pole, too. ACN International Collegiate Programming Contest is an annual multi-tiered competitive programming competition among the universities of the world. The contest is sponsored by IBM. 2012 held in Poland, Team from University of Warsaw took 2 nd place beating 110 teams.

18. Human resources Źródło: EIU, Eurostat. Main university centres Szczecin Tricity Warsaw Poznan Wroclaw Cracow Lodz Students in given EU countries 20 million of talented young people, who speak foreign languages 1.7 mln students, over 400 000 graduates every year 87% of students speak foreign languages 50% of population is younger than 35 yrs. (in the group between 20 and 29 y.o. 1/3 studies) there are 460 higher education institutions in Poland

19. Foreign language capability by age groups Source: CBOS Survey Foreign language capability among students Learning of foreign languages is obligatory in the Polish education system English is the most popular foreign language in Poland Source: Randstad. Children learn foreign languages from the age of 6 Language proficiency is one of the strongest points for Poland as a BPO center Human resources

20. Poland – leverages Image Location Foreign direct investment Public aid

21. I.CIT exemption in Special Economic Zone only available in Special Economic Zone (SEZ) II.Government grants through individual negotiations individually approved and granted by the Ministry of the Economy III.Real estate tax exemption subject to negotiation with the local authorities only in case if the investor is the owner of the building (provided by the Commune Council) IV.Cash grants available through EU Funds subject to negotiation with different managing institutions depending on the investment project key parameters State aid (I) All above presented instruments can be combined together however the total amount of state aid cannot exceed the maximum aid intensity

22. Special Economic Zones  Special Economic Zone (SEZ) is an especially dedicated area where investors receive special benefits  Major purpose of SEZ is to support local growth  There are 14 SEZ + many subzones  Cumulative area = 20 000 hectares  SEZ will operate at least until 2026  Permits to conduct activities in SEZ are issued by the authorities of each SEZ  Minimum investment: EUR 100,000  Possibility of including the land selected by an investor into SEZ Benefits from obtaining a permit to conduct activities in SEZ:  eligibility for income tax exemption – a form of regional aid  plot of land prepared for an investment project, available at a competitive price  free assistance in dealing with formalities relating to the investment project

23. Corporate Income Tax (CIT) rate: 19% Personal Income Tax (PIT) rate: 18% and 32% Value added tax (VAT): basic rate: 23% reduced rates: 8%, 5% export rate: 0% Social Security Tax paid by employer: between 19.48% and 22.67% Tax rates Employer’s social security contribution (as a % of employee’s gross wage) Employer’s social security contribution 100 Poland Czech Republic Hungary 100 34 Gross wage 19,48 -22,67 27 Total cost for employer 17,5 11 22,71 100 35,2 13,4 Slovakia Employee’s social security contribution Source: OECD, CzechInvest, HITA, Sario Average gross wage comparison does not reflect total labour cost – social security contributions make a significant difference

24. Why Poland? Availability of skilled human resources Economic and political stability Effective incentive system including EU-Funding Strategic location – gateway to the EU

25. 00-585 Warszawa, ul. Bagatela 12 tel. (+48 22) 334 98 00, fax (+48 22) 334 99 99 e-mail: post@paiz.gov.pl Thank you for your attention