1. Global economic environment influence on local business decisions BUSINESS AND MANAGEMENT 2016 The 9th International Scientific Conference Giedrė Gečiauskienė Head of Markets Lithuania Danske bank Lithuania +370 620 89301

2. 11 The world is learning to live in the negative interest rates environment EURJPYCHFUSD 1 month –ibor-0,35-0,05-0,770,43 3 month –ibor-0,26-0.03-0,730,63 6 month –ibor-0,140,00-0,650,90 12 month –ibor-0.010,09-0,531,23 5 year IRS0,00-0,07-0,581,16 10 year IRS0,530,14-0,171,60 Source: Bloomberg

3. 22 Quantitative easing – beyond the level of comprehension Assets growth in major central banks Source: Macrobond

4. 33 Performance of global economy is moderate regardless of monetary stimuli Source: Bloomberg

5. 44 The world economy is dominated by few countries Nominal GDP (trn USD) GDP based on PPP (trn USD) United States17.41 China10.3517.63 Japan4.774.78 Germany3.823.62 United Kingdom2.992.43 France2.832.59 Source: Bloomberg, Investopedia

6. 55 China industrial phenomenon is somewhat fading…

7. 66 …We do not expect China to suffer hard landing of the economy China Caixin manufacturing PMI 2012-2015 48.3 China economy is slowing, and… But this will not be enough for the world economy to keep growth pace

8. 77 Low interest rates and for long – will Japan scenario repeat in Europe? Source: Bloomberg

9. 88 Negative interest rates so far do not seem to influence either deposit or loans market in euro zone Source: Bloomberg

10. 99 Value is massively created by relatively new concepts

11. 10 The list of the largest capitalization companies is dominated by Z generation concepts Short NameCountryIndustry / Sector Market capitalization (bn USD) Annual revenues (bn USD) APPLE INCUSAInformation Technology508206 ALPHABET INC-AUSAInformation Technology49571 MICROSOFT CORPUSAInformation Technology39479 EXXON MOBIL CORPUSAEnergy367199 BERKSHIRE HATH-AUSAFinancials352194 FACEBOOK INC-AUSAInformation Technology34118 AMAZON.COM INCUSAConsumer Discretionary321103 JOHNSON&JOHNSONUSAHealth Care31464 GENERAL ELECTRICUSAIndustrials275112 WELLS FARGO & COUSAFinancials24883 AT&T INCUSATelecommunication Services239140 NESTLE SA-REGSwitzerlandConsumer Staples23783 CHINA MOBILEHong KongTelecommunication Services22996 JPMORGAN CHASEUSAFinancials22491 PROCTER & GAMBLEUSAConsumer Staples21961 ROCHE HLDG-GENUSSwitzerlandHealth Care21745 IND & COMM BK-AChinaFinancials217152 WAL-MART STORESUSAConsumer Staples216437 PFIZER INCUSAHealth Care20946 VERIZON COMMUNICUSATelecommunication Services208119 ANHEUSER-BUSCH IBelgiumConsumer Staples20739 Source: Bloomberg

12. 11 Even though Baltic countries have stabilized economic growth… Source: Macrobond Financial, Danske Bank Markets estimates

13. 12 …Lithuania stays behind many European countries according to value added assessment Value added per employee Source: Macrobond Financial, Danske Bank Markets

14. 13 Economic prosperity is highly dependent on education quality Source: Macrobond Financial, Danske Bank Markets

15. 14 What is the path for Lithuanian economy years ahead? In the world where money does not cost anything, other competitive advantages and qualities are needed: Innovation Flexibility Creativeness Curiosity Courage Being first Lithuania is very successful in utilizing those. But there is still a lot of potential

16. 15 Giedrė Gečiauskienė Head of Markets Lithuania Danske bank Lithuania gge@danskebank.lt +370 620 89301 Illustrations: Eglė Džiugytė Dealer of Danske Markets Lithuania Thank you!