1. POLISH INFORMATION AND FOREIGN INVESTMENT AGENCY
Business opportunities in Poland
Sławomir Majman
President
Polish Information and Foreign
Investment Agency (PAIiIZ)
Rome, 6th April 2011

2. Poland - Key Facts Area: 312 700 sq km – 6th in European Union
Population: 38,12 million – 6th in European Union
Currency: Polish Zloty (EUR 1 ~ 4.00 PLN)
GDP total: ca. EUR 494 billion (PPP, 2009)
GDP growth: 4.8% (2008), 1.7% (2009), 3.8% (2010)
Membership: EU, NATO, OECD, WTO, Schengen Zone

3. GDP changes in 2010 +3,8% PL Źródło: Eurostat FI 3,1% NO 0,4% SE 5,5%
EE 3,1%
LV -0,3% DK
2,1%
LT 1,3% IR
-1,0% UK
1,3% PL
+3,8%
NL 1,8% DE
3,6%
BE 2,1%
CZ 2,4%
SK 4,0% FR
1,6%
AT 2,0%
HU 1,2%
RO -1,3% IT
1,3%
BG 0,2% ES
-0,1% PT
1,4% TR
7,5% GR
-4,5%
Źródło: Eurostat

4. The future seems to be bright -
The future seems to be bright - GDP forecasts for 2011 are very favorable
Source: European Commission, Interim Forecast, March 2011.

5. Competitive Advantages
Location & economic fundamentals
strategic location in continental Europe
part of trans-European transportation corridor
the only country of the EU with positive GDP growth in 2009
38 million consumers
young, well-educated work force
ca 11% of university students in the EU
increasing labour productivity
Investment incentives
14 Special Economic Zones
grants co financed from the EU (EUR 90 bn)

6. Poland is much less affected by the crisis than neighbouring countries
Stricter banks’ credit policies before crisis compared to other countries
No dynamic growth of foreign debt as in other countries
Financial instruments far less sophisticated as in the other countries
Smaller influence of stock market on the economy than in the other countries
Falling natural resources’ prices
Huge internal market

7. Leverages: 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
Stable economy:
GDP growth in Poland 1.7% vs -4.2% in the EU in 2009
Current GDP: 3.8% in 2010, 4% in 2011
Main growth factors: domestic demand and foreign trade
1000 km radius
250 mn people
2000 km radius
550 mn people

8. Leverages: Human resources (I)
Main academic centers
Students in CEE
Tricity
Szczecin
Warsaw
Poznan
Lodz
Wroclaw
Krakow
20 M enterprising and multilingual young people
about 2 M students, over 400 K graduates each year
87% of students can communicate in a foreign language
50% of the population is less than 35 years old, 35% under 25
(every 3rd has higher education in the 20 – 29 age group)
a nationwide network of 448 universities and technical universities
Source: EIU, Eurostat

9. Leverages: Human resources (II)
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, October 2008

10. Leverages: Perception (I)
Poland’s main strengths against global competitors:
Growth of the market
Size of the local market
Access to regional markets
Cooperation with suppliers and business partners
Investment incentives system
Stable investment environment
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 11th most attractive investment location in the world
Source:UNCTAD, World Investment Prospects Survey 10

11. Leverages: Perception (II)
Poland – the biggest rise in comparison to the previous edition (2007); 2. place in Europe, 6. place in the world.
50% companies postpone investment projects due to the crisis.
Country
2010 rank
2007 rank
Difference
China 1
USA 2 3
India -1
Brazil 4 6
Germany 5 10
Poland 22 16
Australia 7 11
Mexico 8 19
Canada 9 14 UK -6
UEA -3
Vietnam 12
France 13
Hong Kong -9
Other Persian Gulf countries 15 17
Source: AT Kearney, 2010

12. Leverages: Perception (III)
Poland is in a group of the most attractive countries for investments –having the most favorable economic and polical environment
Forecasted GDP changes in 2011 (%)
Major strengths of Poland:
Controlled inflation/CPI
Competitive CIT levels
Significant internal demand
Source: Harvard Business Review Polska.

13. Leverages: 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

14. Leverages: EU funds

15. FDI Flow to Poland – a long term view
EU accession
Long term upward trend.
In 2008 and 2009 FDI flow at the same level.
2010: estimates (will be changed).
Source: NBP.

16. PAIiIZ projects in 2010 Number of completed projects: 58
Estimated value: EUR 973,2 mn
New jobs:
Key sectors:
BPO
machinery
electronics
Main source countries:
USA
Sweden
France
In April 2011 PAIiIZ cooperates with 154 investors willing to invest EUR 6.4 bn and to employ people
Source: PAIiIZ, 2011

17. Services and Manufacturing Hub in Poland
Automotive
White goods
R&D
Aviation
Electronics
BPO

18. Effective incentives system including EU-Funds
Why Poland? Recap
Strategic location – gateway to the EU
Economic and political stability
Availability of skilled human resources
Effective incentives system including EU-Funds 18

19. Thank you for your attention e-mail: post@paiz.gov.pl
Warszawa, ul. Bagatela 12
tel. (+48 22) , fax (+48 22)