1. INVEST IN SERBIA SERBIA

2. KEY COUNTRY DATA  Area: 88,361 km²  Population: 9.5 million  Capital: Belgrade (1.6 million)  State form: Democratic republic  President: Mr. Boris Tadic  Prime Minister: Mr. Mirko Cvetkovic  Currency: Serbian Dinar (RSD)  GDP: $52.18 billion (2008)  GDP pc: $7,054 (2008)  Internet domain:.rs

3. SERBIA KEY DRIVERS TO FDI IN SERBIA  Enhanced Investment Stability  Booming Market Potential  Quality Human Resources  Upgraded Transportation Infrastructure  Low Overhead Costs  Attractive Investment Incentives  Key Industries

4. SERBIA  National treatment of foreign companies  Free transfer of financial and other assets, including profits and dividends  No industry restrictions on foreign investment  Bilateral Investment Treaty with the USA in effect since 2001 ENHANCED INVESTMENT STABILITY

5. SERBIA BOOMING MARKET POTENTIAL  Duty-free access to a 1 billion people market  A member of CEFTA in South East Europe  The only country outside the Commonwealth of Independent States with a Free Trade Agreement with Russia  A preferential trade regime with the EU and USA for most products and services  FTA with Belarus signed in April; the Agreement with Turkey to take effect as of 2010

6. SERBIA LOW OVERHEAD COSTS

7. SERBIA LOW OVERHEAD COSTS  The average salary–50% of the level in CEE countries  Tax burden totaling about 65% of the net salary; reductions possible through tax incentives  The 8:1 salary ratio by specific industries; 4:1 ratio by municipalities

8. SERBIA Readily available workforce

9. SERBIA ATTRACTIVE INVESTMENT INCENTIVES  Financial incentives:  Automotive, Electronics, IT: up to 25% of the total investment  The minimum investment amount–€200 million and 1,000 employees  Production: from €2,000 up to €5,000 per new job created  The minimum investment amount–between €1 million and €3 million and 50 employees  Services: from €2,000 up to €10,000 per new job created  The minimum investment amount–€0.5 million and 10 employees  R & D: from €5,000 up to €10,000 per new job created  The minimum investment amount–€0.25 million and 10 employees

10. SERBIA ATTRACTIVE INVESTMENT INCENTIVES  Tax incentives:  A 10-year corporate profit tax holiday for investment over €7 million and 100 employees  Corporate profit tax reduction up to 80% of the fixed assets investment  Corporate profit tax reduction of 100% of the gross salary for new employees  Salary tax exemptions for employees under 30 and over 45 years  Social insurance charges exemptions for employees under 30 and over 45 years  Customs-free imports of equipment based on foreign investment

11. SERBIA ROBUST RECENT GROWTH

12. SERBIA The most extensive tradition in automotive industry in the region – 1939 Availability of design, engineering, manufacturing, testing and maintenance companies : Zastava OEM Experienced and well trained workers Cooperation and production experience with EU and USA based companies : Fiat, GM, FORD, PSA, etc Perspective sectors Automotive

13. SERBIA Perspective sectors Automotive Engine components mostly not assemblies - flywheels, valves, camshafts (significant inflow of FDI) Plastic and rubber parts – various exterior and interior parts (mostly produced by domestic companies) Electrical and electronic – mostly wire harness but also batteries and starter motors (significant inflow of FDI)

14. SERBIA Perspective sectors Renewable Energy Potentials (Mtoe ) Biomass2.40 SHPP0.40 Solar0.64 Geothermal0.20 Wind0.19 TOTAL3.83

15. SERBIA Serbia ICT - Overview Over 2,300 ICT companies currently operate in Serbia More than 60,000 people employed in the sector Telecom market revenue around 1.47 billion EUR and IT market revenue around 460 millions EUR in 2007 Market share of the GDP was around 4.7% in 2007 More than EUR 1.5 billion invested in Serbia’s ICT sector over last 5 years

16. SERBIA Electronics Intensive development of embedded electronics and EMS (electronic manufacturing services) sectors Embedded.rs – Electronics industry cluster established in 2008 (currently 12 members and expending) Over 1700 registered companies in electronics industry covering sectors such as production of electrical material and material for electro-installation, home appliances, medical electric equipment, telecommunications, computers and informational technologies, systems of technical protection SEE electronics market value in 2008 over 10 billion

17. SERBIA Electronics-regional competitiveness

18. SERBIA Textile and Clothing Industry Long standing tradition of Textile industry High quality goods at competitive prices Quick Delivery and Minimum Orders Competitive labor costs with the industry average at € 180 Investment opportunities in primary production (more than 70% of raw materials used in textile and garment production are imported) Fashion industries of France, Italy and Germany use Serbian production capacities (Zara, Mango, Benetton, Tommy Hilfiger, Hugo Boss)

19. SERBIA Leather and Shoe Industry in Serbia Great tradition in shoe production industry and is well known for its results (Salamander, Bata, etc.) The latest fashion trend delivery due to geographical proximity to other markets International fashion industries have repeatedly used production capacities in the country (production for Prada, Gucci, Janet & Janet, Nero Giardini, etc.) Competitive labor prices with the industry average at € 180 Almost 70% of the total industry export goes into EU countries

20. SERBIA Food and Wine In figures :  5 115 000 ha of Agricultural Land  4 253 000 ha of Arable Land  67 000 ha of Vineyards  778 961 agricultural estates  90 % share of privately owned arable land  529 326 people permanently employed in Agriculture sector  10.82 % share of agriculture in GDP

21. SERBIA Food and Wine FruitsNo of treesPlanted area (ha)Average yield (kg)Annual production (t) Plums42.600.00014,4 650.000 Raspberries 14.7005.800,0 85.000 Apples15.500.00015,5 245.000 Cherries (sweet)1.800.000 16,8 29.000 Cherries (sour)10.000.00012,9 100.000 Peaches4.000.000 15,3 63.000 Strawberries8.0004.800,0 38.000 Apricots1.700.000 14,0 22.000 VegetablesNo of treesPlanted area (ha)Average yield (kg)Annual production (t) Cabbage 21.24013.200,0 300.520 Potato 81.17210.400,0 843.545 Cucumber 8.7557.070,0 62.000 Carrot 7.6238.700,0 66.000 Watermelon 16.00016.100,0 255.000 Onion 19.0007.500,0 150.000 Tomato

22. SERBIA Grapes and Wine 60 000 ha of vineyards 345 000 tones of grapes in 2008 193 000 000 liters of wine International varieties: Sauvignon, Italian Riesling, Cabernet, Chardonnay, White and Red Burgundy, Hamburg, Muscat, Afus Ali Indigenous varieties : Belgrade Seedless, Prokupac, Vranac, Tamjanika, Krstac, Smederevka, Dinka

23. SERBIA How to start One stop shop for enterprise registration EUR 500 minimal capital for LLC Up to 3 days to complete the procedure More on Serbian Business Register web site www.apr.gov.rs www.apr.gov.rs

24. SERBIA Investment locations Industrial estates in most of Serbian municipalities 4 Free zones operating in the moment, up to 10 to be established Up to EUR 10 per m2 of industrial land, 99 year lease, 4-6 months from LoI to commencement of construction works. World renown construction and construction material industry

25. SERBIA SIEPA SERVICES  Free-of-charge assistance in all investment project stages; the Agency specialized in Greenfield ventures  An investment portfolio in excess of €2 billion  Coca-Cola, Ball Corporation, JTI, Grundfos, Knauf among major clients

26. SERBIA CONTACT US SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY 3, Vlajkoviceva St. 11000 Belgrade, Serbia Phone: +381 11 33 98 55 0 Fax: +381 11 33 98 81 4 E-mail: office@siepa.gov.rs www.siepa.gov.rs