1. Business
Friendly
Slovakia
Presented by Robert Simoncic, CEO SARIO

2. Slovakia – Growing Heart of Europe
Establishment: 1st January 1993
Official name: Slovak Republic
Area (km2): 49,035
Population: 5,379,000
Capital: Bratislava
Member of: OECD, WTO, NATO, EU, Schengen area
Official currency: EURO
Official Language: Slovak
Government: Parliamentary democracy
Election term: 4 years
Neighbours: Austria, Czech Republic, Hungary, Poland, Ukraine
Time zone: GMT + 1hour
Strategic
Geographic Location
Source: SARIO, 2011 2

3. Eurozone Member – One of the few from CEE
since 1st January 2009
EURO IMPLEMENTATION IMPACT:
Limitation of Foreign Exchange Risk
Lowering Transaction Costs
Growth in Foreign Trade
Increased Financial Stability
Source: SARIO, 2011

4. 2010: Highest GDP Growth in the Eurozone
In 2010, based on first estimates, Slovakia had the highest economic performance among the Eurozone countries, indicating the stable economic environment supported by business friendly policies. In the entire European Union, Slovakia has the second position after Sweden having 4.3% growht.
Source: Eurostat, February 2011

5. (Sovereign foreign currency ratings)
Best Country Credit Ratings in the CEE
COUNTRY RATINGS
(Sovereign foreign currency ratings)
SLOVAKIA
CZECH
REPUBLIC
HUNGARY
POLAND
BULGARIA
ROMANIA A+
stable A
positive
BBB-
negative A-
BBB
BB+ A1
Baa3 A2
Stable
BBB+
OECD
Country risk 2 4
Aktualizované: 12/2010
Zdroj:
S&P:
Moody´s: after registration on
Fitch: after registration on
JCR:
R&I Now:
OECD Country risk:
Source: com,

6. Trading across borders
Regional Leader according to World Bank
Methodology
Starting a business
Construction permits
Registering property
Paying taxes
Enforcing contracts
Protecting investors
Aktualizované: 11/2010
The Doing Business project
provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level.
Closing business
Trading across borders
Getting credit
Source: World Bank Group – Doing Business Report 2011 6

7. Low Labour Cost & High Labour Productivity
Gross monthly salary
Labour productivity
957,5 €
CZK
Czech Republic
785,75 €
3 102,96 HUF
Poland
744,50 €
Slovakia
739,23 €
HUF
Hungary
431,88 €
1 845 RON
Romania
Aktualizované: 10/2010
Zdroj:
Czech Republic:
Poland:
Exactly: Tabl. 1 (część 2) -Q16
Hungary:
Slovakia:
Bulgaria:
Rumania:
Labour Productivity:
Labour productivity per hour worked - GDP in Purchasing Power Standards (EU-15 = 100) by Eurostat
Short Description: Gross domestic product (GDP) is a measure for the economic activity in an economy. It is defined as the value of all goods and services produced less the value of any goods or services used in their creation. GDP per hour worked is intended to give a picture of the productivity of national economies expressed in relation to the European Union (EU-15) average. If the index of a country is higher than 100, this country level of GDP per hour worked is higher than the EU average and vice versa. Basic figures are expressed in PPS, i.e. a common currency that eliminates the differences in price levels between countries allowing meaningful volume comparisons of GDP between countries. Expressing productivity per hour worked will eliminate differences in the full-time/part-time composition of the workforce.
299,11 €
585 BGN
Bulgaria
GDP (in PPS) per hour worked as compared to EU15 (100) Source: Eurostat 2010
Data for 2009 Source: National Statistical offices of Czech republic, Hungary, Poland, Slovakia, Bulgaria, Romania
exchange rate (as of 7 October 2010)
EUR 1 = 24,530 CZK, 3,949 PLN, 270,33 HUF, 4,2720 RON, 1,9558 BGN

8. 19% Flat Tax Rate 19% 20% 0% 100% Simple and Fair Taxes
Corporate Income Tax
Personal Income Tax
Value Added Tax - VAT
Dividend tax
Inheritance and Gift Tax Real Estate Transfer Tax
Repatriation of profits
19%
20% 0%
100%
Source: SARIO 2011

9. Top-Notch Sectors of Slovakia
Automotive
3rd in world car production in cars/1000 inhabitants
Electronics
Leading Slovak Exporter – driver of economic and technological growth
SSC/ICT
SR is becoming a hive of SSC and ICTs

10. Key Sector: Automotive
Car Production in Slovakia
1st Place in 2008
106 cars/1000 inhabitants
in World Car Production/1000 inhabitants
3rd Place in 2009
86 cars/1000 inhabitants
Source: SARIO 2010, Slovak Automotive Industry Association ZAP,VW, KIA, PSA-Peugeot

11. Key Sector: Electronics
Assembly of Bravia models for the European market doubled in 2008 to 4mil.
3D TV from April 2010
Production of LCD 10 mil pcs.
Assembly of LCD
Logistic center
Europe service center
3D TV from February 2010
Production of LCD moduls
Only 1 in Europe
Headquarter for Europe
3000 new jobs
Investment 191,3 mil Eur
Source: SARIO, 2010

12. Information-Communication Technological Centers
Key Sector:
Information Communication Technologies
33 established
Information-Communication Technological Centers
Shared Service Centers
Employing over 20,000 people
with college/ university education
excellent language skills
In 2009 the ICT sector was more contributive for the state treasury than all companies from the entire Slovak industry
Source: IT Association of Slovakia, 2011

13. Key sector ICT locations– Highly Competitive Segment
Founding mebembers of
IT Valley Košice:
Technical University of Košice
University of Pavol Jozef Šafárik Košice
T-Systems Slovakia
NESS Slovakia
Siemens PSE
VSE IT služby
Cisco Systems Slovakia
Microsoft Slovakia
Slovak Telecom
Kosice Self-governing Region
Unique clustering of shared services and IT support creating a fast-paced, enthusiastic IT environment
Advanced wireless technologies – Flash-OFDM, WiMAX, HSDPA – covering large majority of the population
High population density and low deployment costs making development and experiments easier than ever

14. R&D in Slovakia – Discover the Potential
Availability
of Scientist
and engineers
Production
process
sophistication
Source: Global Competitiveness Report , World Economic Forum 2010
Slide 1: To what extent are scientists and engineers available in your country? (1 = not at all; 7 = widely available) Slide 2: How sophisticated are the production services? (1 = not at all—labor-intensive methods or previous generations of process technology prevail; 7 = highly—the world’s best and most efficient process technology prevails)

15. Success Stories & FDI Inflow to Slovakia
Country
of Origin
Investor
USA (140)
US Steel, Emerson, DELL EMEA Centre of Excellence, Whirlpool, IBM International Services Centre, HP European IT Operation Centre, Johnson Controls R&D Centre, AT&T, Accenture Technology Solutions, Getrag Ford (Deutschland)
China
LENOVO
Taiwan
AU Optronics, ESON, Foxconn, Delta Electronics
Germany
Siemens, Volkswagen, T-Systems
Japan
Sony, Panasonic, Yazaki, Mitsui Sumitomo
Korea
Samsung, KIA Motors, Hyundai Mobis
France
PSA Peugeot Citroen, Alcatel R&D
Source: National Bank of Slovakia 2010, SARIO, 2010 15

16. Slovakia success stories
Source: SARIO, 2010

17. SARIO Who We Are MISSION EXECUTED THROUGH 3 CORE SECTIONS
Foreign Direct Investment
Government Funded Organization
under the direction of the Slovak Ministry of Economy
Foreign Trade
Structural Funds of the EU

18. Thank you for your attention!
For more information, you can contact us at:
Address: Slovak Investment and Trade Development Agency
Martincekova 17
Bratislava
Slovak republic
Tel.:
„Best European investment agency
for high-tech investment“
(Awarded during the Global Investment Conference in La Baule in 2007) 18

19. INVESTMENT AID

20. BASIC FEATURES OF THE INVESTMENT AID
Objective: To Encourage Direct Investments
-in less developed regions
-with high added value
Eligible Investments: INDUSTRY
R&D
SSC
Administrative Body: Ministry Of Economy
Legal Framework: Act On Investment Aid

21. INVESTMENT AID GRANTED IN 2002-2010
108 supported investment projects
6.1 billion € of eligible investments
of newly created jobs
1.2 billion € of aid granted
20% - average aid per investment
€ – average aid per 1 newly created job

22. INVESTMENT AID GRANTED TO US INVESTORS
12 supported investment projects
675 million € of eligible investments
4806 of newly created jobs
88 million € of aid granted
14% - average aid per investment
€ – average aid per 1 newly created job

23. NEW RULES OF AID FROM JUNE 2011
Higher transparency & predictability
- possible volumes and forms of aid exactly set for each district
More favourable conditions for all types of project to be supported
- lower requirements on minimal investment, longer period of project
More flexibility for supported projects
- possibility of reasonable changes during implementation
Faster approval procedure
-setting shorter periods for authorities involved in procedure
Long-term support
- no limitation for support of expansion after first project finished
Higher efficiency for budget & motivation for companies
- availability of 10 year tax relief

24. NEW RULES OF AID FROM JUNE 2011
INDUSTRY - basic condition
- project of the new factory or expansion
- min. amount of investment 14 mil. €, 7 mil.€ or 3.5 mil.€ (depending on unemployment rate in the region) TV VT KS RA RS PT LC VK SO KK SB PO GL LE BJ SK SP ML HE SV PP SN BR LM TS NO CA DK RK MT ZA KM BY PB PU IL TN TR BB ZV DT ZC BS KA LV NR ZM TO PE BN NM PN TT GA DS MA SE SA PK SC BA HC SL KE MY KN NZ PD ZH RV MI
14 mil €
7 mil €
3.5 mil €

25. NEW RULES OF AID FROM JUNE 2011
R&D center - basic condition
- project of the new center or expansion
- min. amount of investment 500 ths
SSC - basic condition
- min. amount of investment 400 ths

26. NEW RULES OF AID FROM JUNE 2011
Forms of Investment aid
Income tax relief - 10 years
Cash grant (up to 50% in some districts)
Contributions on new jobs (up to eur per employee )