1. Dusan Kulka, FDI Advisor Regional competitiveness Forum, November, 2006 (Foreign Direct) Investment (Regional) Competitiveness

2. (Overall) investment attractiveness is heavily influenced by national legislation & government performance. First significant investment activity has been / is mostly related to privatization of state owned enterprises. Followed by “spontaneous” (mostly resource and market seeking) investments investigating emerging markets’ potentials / conditions. If balance 1,2 and 3 provides satisfying feedback, first larger greenfield investments start searching for convenient location in the region / specific country. Manufacturers seeking efficiency represent vast majority of those FDI. FDI in CEE Region

4. Basic info Indicator (2005) UkraineCzech Republic Population 46 930 thousand10 232 thousand Territory 603 700 sq km78 866 sq km GDP €66,48 billion€99,99 billion GDP per capita at PPP €6 260€17 260 Average monthly salary €126€639 FDI stock €14,5 billion€50,4 billion FDI stock per capita €310€4 932 Source: The Vienna Institute for International Economic Studies; www.wiiw.ac.at

5. Export per capita in 2004 $65.771.534.270 Total exports $32.672.195.000 Total exports Source: UNCTAD data; BermanGroup analysis; www.bermangroup.cz

6. Share of export as % of GDP Source: UNCTAD data; BermanGroup analysis; www.bermangroup.cz

7. More than 600 investment projects successfully implemented 45% of employees in industry 55% of industrial production 65% of industrial exports Once FDI feel happy

8. High potential versus poor performance First big efficiency-seeking investments plus growing annual inflow of FDI Still serious obstacles: Problematic business climate / poor image: unstable environment, red tape, … Low understanding of FDI business practice Very limited number of market-ready investment opportunities Lack of professional assistance to investors Ukraine & FDI

9. Average FDI UAH 117.121 UAH 57.057 Annual sales per employee Average FDI 44% 25% Share of exports BAS Ukraine 2005

10. Average FDI UAH 871 UAH 789 Average monthly salary Average FDI UAH 105.087 UAH 39.510 16% 12.7% Investments per employee and new jobs

11. Network of large cities Skilled and inexpensive labor Growing domestic consumption / markets Improving export performance Positive development in light industry and machinery Increasing interest of investors – productivity gains Slow but continual improvement of country’s business environment WTO accession expected Ласкаво просимо