1. Investment Opportunities
Poland
Investment Opportunities

2. Poland – key facts Territory: 312 700 km2 – 6th place in the EU
Population: m. – 6th place in the EU
Currency: PLN (1 EUR ~ 4.19 PLN)
GDP in 2011: bn PLN (ca. 370 bn. EUR ~4.12 EUR/PLN)
Membership: EU, NATO, OECD, WTO, Schengen Zone

3. Real GDP changes in 2011
FI 2,8% SE
3,7%
2009
Poland was the only economy in the EU with positive growth
2010
Poland was the third fastest growing economy in the EU
2011
Polish economy was growing twice faster than EU average
2012
Polish growth reached 1,9% EU average is -0,3% (Europ. Commision) NO
1,2%
EE 8,3%
LV 5,5% DK
1,1%
LT 5,9% IR
1,4% PL
+4,3%* UK
0,9%
NL 1,0%
DE 3,0%
BE 1,8%
CZ 1,9%
SK 3,2%
FR 1,7%
AT 2,7%
HU 1,6%
RO 2,2% IT
0,4%
Opracowanie Lukasz Lesniewski, rok
BG 1,7% PT
-1,6%
ES 0,4% TR
8,5% GR
-7,1%
Source: Eurostat.

4. Polish GDP growth

5. Dynamic of growth of Polish contruction industry

6. A lengyel külkereskedelmi forgalom 2008-ban 258. 7 milliárd EURO volt
A lengyel külkereskedelmi forgalom 2008-ban milliárd EURO volt. Gazdaságának nagysága és közelsége miatt a szomszédos Németország lett Lengyelország legfontosabb kereskedelmi partnere.

7. European Commission Economic Forecast Autumn 2012
Real GDP growth (%)
2012
2013
2014
EU27
-0,3
0,4
1,6
Eurozone
-0,4
0,1
1,4
Germany
0,8
2,0
Poland
1,9
1,8
2,6
Czech Republic
-1,3
Slovak Republic
3,0
Hungary
0,3
1,3
Bulgaria
Romania
2,2
2,7
Previous growth expectations were reduced, but Poland still maintains relatively fast pace of economic growth
Source: European Commission, November 2012.

8. Unemployment rate in 2012 Unemployment in EU27: 10.7%
Eurozone: 11.8%, Poland: 10.6%
Source: Eurostat, November 2012 or latest available data.

9. 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
Source: Transparency International, 2012 Corruption Perceptions Index

10. 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
Access to the regional market was the third most important criterion,
mentioned by 10% of the companies. It was cited as especially important for
locating in countries that could provide export bases for sales to large markets,
such as Poland as a base for the markets of Western Europe.
In order to complement its analysis of FDI trends in its annual World
Investment Reports, UNCTAD conducts an annual survey of a sample of
company executives selected among the largest non-financial transnational
corporations (TNCs)
Poland is among 15 most attractive investment locations in the world
Effectiveness in utilizing FDI appraised as “above expectations”
Source: UNCTAD, World Investment Prospects Survey , World Investment Report 2012. 10

11. EY European Attractiveness Survey
Poland – the 2nd most attractive country in Europe for FDI in the next 3 years

13. Poland in Financial Times FDI quality in industrial processing sector
Poland– 3rd place in the World, 1st in Europe
Source: Financial Times/ FDI Intelligence.

14. One organisation may be wrong, but a few of them must be right
6th place globally in most attractive FDI destinations ranking
UNCTAD
3rd place globally in quality of processing industry
Financial
Times
2nd place in Europe in a group of the the most attractive countries in the next 3 years
Ernst & Young
One organisation may be wrong, but a few of them must be right

15. Poland is one of the fastest developing countries: 5th in the World,
1st in Europe.
Source: The Economist 2011.

16. 3rd location worldwide for business services
Poland is on the 3rd place worldwide on the shortlist destinations of companies searching for the best location for
financial,
accounting
advisory centers.
Source: The Hackett Group, April, 2012.

17. Strenghts: Image (VII)
Source: CB Richard Ellis, September 2011.

18. Warsaw in the top of the European business friendly institutions
Place
City
Country 1
London
United Kingdom 2
Moscow
Russia 3
Brussels
Belgium 4
Warsaw
Poland 5
Prague
Czech Republic 6
Paris
France 7
Copenhagen
Denmark 8
Stockholm
Sweden
Source: European Cities and Regions of the Future 2012/13, fDi Intelligence

19. Top 10 region of the CEE region in terms of investment attractiveness
Place
City
Country 1
Małopolska Province
Poland 2
Opolskie Province 3
Central Bohemian Region
Czech R. 4
Plzeň Region
Czechy R. 5
Pardubice Region 6
Katowice urban area 7
Zaporizhia Oblast
Ukraine 8
Stara Zagora Province
Bulgaria 9
Tuapsinsky District
Russia 10
Wielkopolskie Province
Źródło: European Cities and Regions of the Future 2012/13, fDi Intelligence

20. Top 10 cities in the CEE region in terms of FDI attractiveness
Place
City
Country 1
Katowice
Poland 2
Kraków 3
Lublin 4
Lwów
Ukraine 5
Brno
Czech Republic 6
Warszawa 7
Ostrawa 8
Poznań 9
Cheb 10
Moskwa
Russia
Źródło: European Cities and Regions of the Future 2012/13, fDi Intelligence

21. Top 100 Destinations for Outsourcing
Kraków: first in Eastern Europe, second in Europe
Place
City
Country … 9
Dublin
Ireland 10
Kraków
Poland 17
Praque
Czech Republic
Source: Tholons Top 100 Outsourcing Destinations, January 2013

22. What have we reached? Examples
Transportation
779 km built/reconstructed expressways
4 236 km built/reconstructed national and local roads
635 km built/reconstructed railways
Ecology
km built/reconstructed sewerage,
5 700 km built/reconstructed water supply pipelines
275 built/reconstructed city water pipelines
1 729 built/reconstructed home wastewater treatment plants
Development of human capital
2,7 mln people (incl. 1,6 mln women) has received supprot from ESF
Entrepreneurship and innovations
2 799 of SME received support for new implemented investments
17 science parks have received support

23. Highway and expressway in Poland

24. Łódź region and its highway and expressway net

25. Students in given EU countries
Human Resources
Main university centres
Students in given EU countries
Tricity
Szczecin
Warsaw
Poznan
Lodz
Wroclaw
Cracow
20 million of talented young people, who speak foreign languages
2 mln students, over 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 is 460 of higher education institutions in Poland
Źródło: EIU, Eurostat.

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

27. Strenghts: Size of the market
Markets served:
Internal market of 38 mn people
Unlimited access to the EU market
Strong relations with CIS and Balkan states
radius 1000 km
250 mln people
Stable economy:
GDP growth in Poland 3.9% 4.3% in 2011
Main growth factors: domestic demand and foreign trade
radius 2000 km
550 mln people

28. State aid 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 based on the Council of Ministers’ Resolution
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
All above presented instruments can be combined together however the total amount of state aid cannot exceed the maximum aid intensity

29. 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 = hectares
SEZ will operate at least until 2020
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

30. Tax rates Corporate Income Tax (CIT) rate: 19%
Personal Income Tax (PIT) rates: 18% & 32%
Value added tax (VAT)
basic rate : 23%
reduced rates : 8%, 5%
export rate : 0%
Social Security Tax paid by employer
between 17.48% and 20.41% 30

31. FDI Investment in Poland
Reinvested profits constituted 2/3 of FDI flows;
85% of FDI inflow comes from the EU, main countries are Luxemburg, Germany, Italy.
At the end of 2011 FDI stock value amounted to USD 198 billion.
1990-’95:
Vast internal market
e.g. shopping malls, privatization
‘ : Significant labour force stock, low production costs
e.g. electronics, automotive
>2000:
Favorable quality/cost ratio
e.g. outsourcing centers (BPO), infrastructure
Next stage:
top quality advantages...
e.g. R&D centers
Source: PAIiIZ, NBP
2013.
Market seeking
Resorce seeking
Strategic capabilities

32. Effective incentive system including EU-Funding
Why Poland?
Strategic location – gateway to the EU
Economic and political stability
Availability of skilled human resources
Effective incentive system including EU-Funding 32

33. Thank you for your attention