1. ROMANIA - Your Reliable Partner Office for Commercial and Economic Promotion Oslo 2017

2. Romania - Country overview
GDP Growth Q3 2017
Best performance in EU
8.6%
Area:
238,391 km2
NATO membership
Capital: Bucharest
FDI stock
70 bn
Currency: RON
EUR/ RON: 4.6
Bridge between East and West for 500 mil. consumers market
EU membership
st semester - EU Presidency
Population:
aprox: 21 mill
Bucharest
Metropolitan Area: 3mill
20 years of Strategic US-Romanian partnership
S & P
Moody’s
Fitch
BBB-
Stable
Baa3-
Stable
BBB-
Stable
Source: *NSI 2016; Eurostat

3. At a glance
2nd largest country in CEE and the largest in SEE in terms of size (the 9th in EU28) and population (the 7th in EU28)
At the crossroads of 3 great markets: the European Union, the CIS (Commonwealth of Independent States) and the Middle East
1st in EU for average peak connection speeds and 6th for 4 Mbps broadband adoption in Q3 2016*
Source: *Akamai 2016 Q32016 State of the internet

4. Potential for Growth GDP growth [%] FDI Inflows (EUR mld.)
(Source: National Commission for Prognosis, Eurostat)
4.4% - European Commission Winter Forecast 2017
4-5% - National Bank of Romania
FDI Inflows
(EUR mld.)
(Source: National Bank of Romania)

5. (Source: National Bank of Romania)
Inflation
Inflation rate
[%]
Target 2017: 2.5
(Source: National Bank of Romania)
 Deflation due to:
reducing the standard VAT rate from 24% to 20%;
the disinflationary influence exerted by the external environment;
the dynamics of commodity prices on international markets (eg: oil, agri-food products);
price reduction of tobacco products and the impact of the reduction in RCA policy charges.
Inflation started to be on a positive trend at the beginning of 2017 due to the persistence of the internal inflationary pressures associated with the increase of aggregate demand and the rise in wage costs.
Source: National Institute of Statistics

6. Forecast *2017: 5.8 (Source: National Commission for Prognosis)
Unemployment
Unemployment rate [%]
Forecast *2017: 5.8 (Source: National Commission for Prognosis)
The unemployment rate continues its downwards trend, reaching its lowest in the last 12 years, with 5.3% in April 2017.
Source: National Institute of Statistics

7. Governance Programme 2017-2020
A visionary new ECONOMIC CODE, encompassing all economic provisions currently into force in a sole package, starting with January 2018 (2022)
Tax reduction and simplification - maximum 50 taxes
VAT cut to 18% in 2019 / second lowest VAT rate in EU28
Income tax reduced from 16% to 10% and social contributions from 39.25% to 35% in 2018
Cutting red tape / de-bureaucratization

8. Governance Program From Idea to Strategy
Sustaining the business environment - Top priority of the Government
A dedicated Ministry was set up (Ministry for the Business Environment, Commerce and Entrepreneurship), with its main objective to help companies.
Targets:
Build a stable, safe, attractive entrepreneurial system – through adequate legislation and instruments
Foster the entrepreneurial initiative
Support the entities that produce added value
Develop alternative financial instruments
Improve the entrepreneurial education
Create partnerships to support the business environment
Develop a better relationship between public authorities and companies

9. From Idea to Strategy Programs and Measures
In order to implement the Strategy, a series of programs, laws and measures has been initiated:
To support the companies that begin their activity: Start-up Nation Programme
To protect and support their operations: Prevention Law, Public-Private Partnership Law (PPP), Trade and Service Programme, Microindustrialization Programme
To support the internationalization of companies: Internationalization Programme
To support the general development: Sovereign Investment and Development Fund - EUR 10 billion state shareholdings / EUR 3 billion in building highways and another EUR 3 billion in building 8 national hospitals

10. WHY TO INVEST IN ROMANIA Overview of the Romanian tax system
VAT
Social Security
24%
20%
19%
18%
Employee
Employer
16%
23%
2015
2016
2017/18
2019
Food products - 9%
Corporate &
Income Tax Rate
Reinvested profit tax
Tax System
Dividend Tax Rate 0%
16% 5% 0%
16%
2016
2017
2018
IT&C - 0 % income tax for employees
BA -14 technical specializations available
Employee is hired on a software engineer/ programmer/ software analyst position
Annual revenue per exempted employee must be over USD
R&D - 0 % corporate tax for R&D companies
0 % income tax for employees
Deduction of R&D eligible expenses:
depreciation of R&D equipment, salaries for R&D personnel; 50% of these expenses can be deducted from the taxable income

11. Investment Support STATE AID 2014-2020 Total Budget EUR 1.5 billion
STATE AID - GD 807/ 2014
Minimum EUR 10 mil. investment
Construction of new buildings
Renting costs for existing buildings
CAPEX aimed at technical installations and tools
Acquisition of intellectual property
STATE AID - GD 332 / 2014
Minimum 10 new jobs/ per location
Salary costs registered for a 2 consecutive year period resulted as a direct consequence of the investment
Salary costs are comprised of gross average annual salary plus benefits
FISCAL INCENTIVES
Investors that set up manufacturing locations or offices in an industrial, scientific or technological park benefit from :
Exemption on land, building and urban planning tax
Taxes charged for changing land destination

12. Ports and Airports
SATU MARE
ORADEA
SUCEAVA
TIMISOARA
CRAIOVA
SIBIU
TARGU MURES
CLUJ-NAPOCA
BACAU
IASI
BUCURESTI OTOPENI
M.KOGALNICEANU
DROBETA TR. SEVERIN
GIURGIU
MANGALIA
CONSTANTA
SULINA
TULCEA
BRAILA
GALATI
BAIA MARE
ARAD
BRASOV
130 direct flights leading to 76 destinations in 31 countries worldwide
14 international airports and 8 major ports
Constanta Port - the deepest and largest port at the Black Sea.
Romania is now more connected than ever, boasting a transport network of 14 international & domestic airports and 8 major ports
International Fligths
Ports
Under construction
Aircraft trafic reached 16 mill. passagers in 2016, up by 20% compared to 2015

13. Key facts for top tech oriented industries in Romania
INDUSTRY SIZE
KEY PLAYERS
KEY PROJECTS
AEROSPACE
EUR 400M
Airbus Helicopters EUR 15m investment
Sonaca EUR 12m investment
Premium Aerotec EUR 50m investment
IT&C
EUR 3.6B
Siemens software dev. worked on the Mars Rover
Deutsche Bank EUR 40m investment
LiveRail was acquired by Facebook for EUR 600m
EUR 22B
AUTOMOTIVE
Continental EUR 26m investment in R&D center
Daimler EUR 300m investment for gear boxes
Ford EUR 200m investment for production of new model
Source: Invest Romania

14. WHY TO INVEST IN ROMANIA Value for Money
BUCHAREST
BERLIN
LONDON
Consumer Prices
$100
$214
$170
Rent Prices
$100
$296
$184
Restaurant Prices
$100
$250
$171
Groceries Prices
$100
$294
$170
Standard of living equivalency net salary
$1,975
$3,622
$5,809
Sources: Numbeo, May, 2017

15. WHY TO INVEST IN ROMANIA Romania Largest Market in the SEE
Gas prices ranking
Labor costs ranking 1
Lowest gas prices
5th lowest electricity
price in Europe 2 RO
UKR MD BG
SRB HU
One of the most competitive labor force in the EU
Historically, investing in Romania has never been easier, with the government becoming a partner for businesses and entrepreneurs
Maximum broadband speed
World Bank ease of doing business 1 36
First in EU for
average peak connection speeds
Ahead of many EU or neighbouring countries
Source: World Banks, Doing Business Report 2016; Akamai Q32016

16. WHY TO INVEST IN ROMANIA Hourly labour costs in EU
Source: Eurostat

17. WHY TO INVEST IN ROMANIA Industrial Parks1 4 2 3 13 11 9
Status at regional level
(April 3, 2017)
North West Region: 16 parks
West Region: 6 parks
South West Region: 6 parks 1
South Region: 21 parks
South East Region: 2 parks
North East Region: 5 parks
Center: 18 parks
Bucharest: 2 parks
76 industrial parks spread across Romania - both private and public ownership
Access to utilities & benefits packages according to their focus
Exemption from land, building and urban planning taxes

18. WHY TO INVEST IN ROMANIA Skilled labor force
97%
97% of Romanian high school students study 2 or more foreign languages
The predominant foreign languages taught are English, French, German and Spanish, many other languages are also taught - Japanese, Arabic, Hebrew, Nordic languages a.s.o.
University students in Romania are proficient in [% of total]:
90%
26%
17% 8% 5%
Source: ABSL, NIS, Eurostat

19. WHY TO INVEST IN ROMANIA Skilled labor force
Source:Brainspotting

20. Conclusion: Romania – Top Investment Destination
Romania international rankings:
36th out of 190 economies in the top "Ease of doing business", "Doing Business 2017" - World Bank Report
14th according to the World Investment Report 2017 (+2 positions in the EU28 ranking compared to the previous year)
4th in “Top 20 destination countries by FDI job creation” (+38% new jobs created 2016 vs Ernst&Young, European Investment Monitor - EIM )

21. Romania – Norway Economic Relations Bilateral Trade
Bilateral trade in 2016:
Total trade: mil. EUR
Romanian Exports: mil. EUR
Imports from Norway: 42.0 mil. EUR 21

22. Romania – Norway Economic Relations Bilateral Trade
Bilateral trade 9 month 2017:
Total trade: mil. EUR
Romanian Exports: mil. EUR
Imports from Norway: 42.0 mil. EUR 22

23. Romania – Norway Economic Relations Bilateral Trade
Main Romanian Exports to Norway in 2017:
Semi-equipped ship bodies %
Electrical equipment %
Metal products %
Optical instruments 6.5%
Textile, clothing %
Chemical products, rubber 5.0% 23

24. Romania – Norway Economic Relations Bilateral Trade
Main Romanian Imports from Norway:
Electric equipments 65.0%
Optical instruments 13.6%
Metal products %
Chemical products %
Mineral products % 24

25. Romania – Norway Economic Relations Investments
Norwegian investments in Romania:
82.7 mil. EUR registered capital (Romanian statistics)
ranking 31st among foreign investors in Romania, in
terms of capital
375 Norwegian companies registered
ranking 30th among foreign investors, in terms of
number of companies 25

26. Conclusion: Romania – Sustainable and Reliable Partner for Norway
Plenty of opportunities to be further explored and materialized through
Romanian – Norway cooperation!
We are waiting for you!
Contact: 26