1. Hungarian Investment and Trade Agency Automotive Industry in Hungary 2014

2. Hungary: home of automotive investments H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Audi Hungaria Motor Kft. in Győr produces engines for all brands in the VW Group and has a brand new production plant for A3 Cabriolet and A3 Limousine, together with the new generation of TT Coupé and TT Roadster. Mercedes-Benz Manufacturing Hungary Kft. has picked Hungary as its first plant in Eastern Europe, producing the Mercedes B and CLA models. Magyar Suzuki Zrt. has assembly lines in Esztergom, producing Suzuki Swift, Splash, SX4 and SX4 S-Cross. Opel Szentgotthárd Kft. produced Opel Astra cars at the beginning, afterwards they manufactured engines, cylinder heads, crankshafts and piston-rods.

3. Overview: major OEMs in Hungary H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Foundation: 1993 Products: TT Coupé/Roadster, A3 Cabriolet/Limousine Car. prod. cap.: 125.000 Engine prod. cap.: 1.900.000 Nr. of employees: 10.300 Revenue (2012): EUR 5,282 billion AUDI Hungaria Motors Kft. Location: Győr Foundation: 1991 Products: engines, cylinder heads, gearboxes Engine prod. cap.: 1.000.000 (2015) Nr. of employees (expected): 1000 (1,500 - 2015) Revenue (2012): EUR 86,7 million General Motors Powertrain (GM) Location: Szentgotthárd Foundation: 1991 Products: Swift, Splash, SX4 S-Cross Car. prod. cap.: 300.000 Nr. of employees: 3.100 Revenue (2012): EUR 1,4 billiion Magyar Suzuki (Suzuki Motors) Location: Esztergom Foundation: 2008 Products: A and B Class, CLA Car. prod. cap.: 150.000 Nr. of employees: 3.000 Revenue (2012): EUR 0,92 billion (Operation started in March 2012) Mercedes-Benz Manuf. (Daimler) Location: Kecskemét Szentgotthárd Győr Esztergom Kecskemét Tatabánya BUDAPEST Miskolc Székesfehérvár Pécs Szeged Szolnok Debrecen Nyíregyháza Hatvan Szombathely

4. Facts and figures H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Production value : 19.4% of total industrial production Automotive industry gives 20% of Hungary’s total exports (16,65 bn EUR in 2012 ) Main export market: EU (75 %) No. of companies: cca. 700 No. of employees: cca. 115,000 Average gross salary: 824 EUR/month (Eurostat, 2013 June) Forecast: more than 2,3 million engines and 400.000 passenger cars will be manufactured in Hungary in 2014

5. Top reasons for Hungary I. H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Central location At the crossroads of 4 main European transportation corridors - Ideal logistical center for the automotive industry (More than 90% of Hungary’s automotive production goes for export) Cost efficiency Competitive wages and labor cost/value ratio in European comparison in the CEE region. Tradition of innovation Long and successful tradition of cooperation between the universities and the producers in R&D. Long-term planning  Solid political and public institutional framework  Stable economic outlook  Harmonized tax system

6. Competitive average wages H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Source: wiiw, Eurostat, national statistics

7. High average yearly working hours (2012) H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699

8. Gross wage levels in European cities H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Source: UBS, Wealth Management Research, Prices and Earnings, 2012 September New York=100 (2012)

9. Automotive competence centers H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Győr (engine, vehicle manufacturing) Veszprém (mechatronics, fuels and lubricants) Budapest (vehicle technology, electronics, mechatronics) Kecskemét (material sciences, vehicle assembly) Miskolc (driveline systems, mechatronics) Competencies in the Regions – Alignment of the Academic and Industrial Main Priorities

10. Top reasons for Hungary II. H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Strong supplier base: Over 700 companies in the automotive sector 15 of the 20 leading Tier 1 companies settled down in Hungary Hungarian automotive suppliers have several years of experience supplying OEMs & Tier 1s Strong governmental supplier development activity Extended vertical and horizontal supplier connections

11. Hungary: home of automotive investments H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Tier 1 Tire man. R&D And many more… OEM

12. More than 700 suppliers Central Transdanubia Western Transdanubia Central Hungary Southern Transdanubia Southern Great Plain Northern Great Plain Northern Hungary AFLKirchhoff Ajkai ElektronikaLé Belier Albert WeberLear AlcoaMagyarmet Asahi GlassMichels BentelerMusashi Borg WarnerPlasticor BournsPlastimat BridgestonePoppe+Potthoff Continental Autom.Rába DensoSCI Sanmina Diamond ElectricSCS Euro ExcedySEWS GediaSuoftec GestampToyo Seat HammersteinU-Shin HankookValeo ITW SiewerVideoton Johnson ControlsVisteon Karsai PlastWescast ArcelorGyőri Plast AutolivHirschler B.O.S.Kravtex BPW RábaLuk Savaria Car-InsideMagna Steyr DanaNemak DekorsyRába DelphiRehau EdagRekard Produkt EMTRudolph Logistik ErbslöhSemperform Euro ExedyVeritas Euro ElzettSMR Federal MogulVogel und Noot BHG CabTec Ratipur Interplus BroseJohnson Controls ContiTech FluidKALOplastic ContiTech RubberKnorr-Bremse Csaba-MetálKunplast-Karsai EckerleLinamar EmikaMagna Exteriors EuroFitPata FreudenbergPhoenix Mecano HirschmannThyssenKrupp HBPOZorge Caroflex Carrier Transicold Eagle Ottawa Eismann FAG (Schaeffler) Faurecia Euroszol F.Segura Hajdu Autó Haldex Hübner Isringhausen Jász-Plasztik Lé Belier Michelin Nief Phoenix Akzo Nobel CoatingsFirth Rixson ARRKGanz Foundry BoschGibbs CSABAcastHi-Lex DelphiKnaus Tabbert Delta-TechKovács ExirLear Leoni Mitsuba Modine Prec-Cast Remy Saia-Burgess Salgglas Shinwa Stanley Electric Starter Battery Technoplast ZF AVLHokushinSiemens VDO CascadeIbidenTauril ClarionLearThyssenKrupp Continental Autom.MGMToyo Seat ContiTech FluidMichelinVogel Sitze DraexlmaierMono-IpolyfabricWebasto EMTNABIW.E.T. Excel CsepelPEMÜZollner FESTOSchwarzmüller GE LightingSemcon

13. H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Source: Ernst & Young, The Central and Eastern European automotive market, 2010 Light vehicle production in the Central and Eastern European Region (in thousand units)

14. About the Hungarian Investment and Trade Agency - HITA H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Support the foreign trade activities of Hungarian undertakings Training of SMEs enabling them to be involved into multinational companies’ supply chain Organizational Structure  Investment Promotion Directorate  Business Development Directorate  Enterprise Europe Network (EEN) Founded by the Hungarian Government in 2011, in order to assist in achieving its external economic policy goals The supervising body of HITA is the Prime Minister’s Office 150 employees, mainly consultants on sectorial basis Our main tasks are:

15. Our services for successful investments H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Project partner and project financing advisory Supplying information on permitting procedures Assistance in applications for incentives Expansion assistance Advocacy to improve the business climate Operations Tailored and comprehensive information packages on the economy, financial incentives, business environment, tax Assistance in location search and evaluation, site visits organized Partner meetings organized Ramp-up Pre-decision

16. H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Our services for successful investments: Incentives Services of the Incentives Department: EU co-financed tenders Subsidy based on individual government decision Development tax allowance Job creation subsidies Training subsidy

17. H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Our services for successful investments: Supplier Department (I.) Regular personal meetings with management for setting up and reviewing supply strategy and project plan Longlisting business contacts about possible Hungarian suppliers Parametering the possible Hungarian suppliers Prefiltering business contacts for the OEMs Shortlist business contacts to maximize the chance of the successful cooperation

18. H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Match-making between the OEM and the suppliers Business Seminars, Conferences, Supplier Days, Shows & Exhibitions On request establishing business relationship On request consultancy with other governmental organs Follow-up meetings Building interactive supplier database and e-market service Our services for successful investments: Supplier Department (II.)

19. Thank you for your kind attention! H-1055 BUDAPEST, HONVÉD UTCA 20. PHONE: (+36) 1 872 6520 FAX: (+36) 1 872 6699 Contact us: Web: www.hita.hu E-mail: investment@hita.hu investment@hita.hu Phone: +36 1 872-6520