1. AND FOREIGN INVESTMENT AGENCY
POLISH INFORMATION
AND FOREIGN INVESTMENT AGENCY
Foreign investments in Poland
Foreign Investment Department
Warsaw, April

2. PAIiIZ Structure of PAIiIZ Foreign Investment Department BSS team
Manufacturing team
BSS team
Polish Foreign Investments team
State aid Section
Economic Promotion Department
Economic Information Department
Regional Development Department
Bureau for Eastern Poland Economic Promotion Programme
total employment at PAIiIZ: people
joint-stock company, 100% owned by the Treasury
4/5 of the budget from the state subsidy, 1/5 - own resources
regional offices – Investors’ Servicing Centres in regions 2

3. Long-term investment process!
Agency’s offer – full spectrum of business location advisory
Considering of investment
Marketing campaigns, investment seminars, work-shops, study tours
Cooperation with Polish Embassies
Project Managers assistance
Location advisory
Site visits
Long list of countries
Assistance in obtaining financial support from the state government
Cooperation with SEZs, data base of agencies (real estate,HR, legal), business partners and suppliers
Short list
INVESTMENT DECISION
Post-investment services
Ombudsman for foreign investors
Long-term investment process!

4. FDI stock in Poland as of the end of 2011
Geographical sources of FDI
Major FDI investors in Poland
(FDI stock as of the end of 2011, in bn EUR)
Source: National Bank of Poland, 2012 4

5. FDI by manufacturing activity (in EUR bn)
FDI stock in Poland as of the end of 2011
FDI by sectors (in %)
FDI by manufacturing activity (in EUR bn)
Source: National Bank of Poland, 2012 5

6. FDI inflows to CEE countries (mn USD)
Source: UNCTAD World Investment Report 2012 6

7. Services and Manufacturing Hubs in Poland (1)
AUTOMOTIVE
HOUSEHOLD APPLIANCES
Wrocław
ELECTRONICS
Source: PAIiIZ compilation, 2014

8. Services and Manufacturing Hubs in Poland (2)
AEROSPACE
BSS
Wrocław
R&D
Source: PAIiIZ compilation, 2014

9. Investment value (m EUR)
Completed projects by country of origin in 2014
Country
No of projects
Investment value (m EUR)
Employment US 14
365
1,808
Germany 11
948
4,121
Sweden 3 37
425 UK
1,5
210
Italy 2 67 65
Japan
260

10. Completed projects by sector in 2014
Number
Value (EUR m)
Employment
BSS+ ICT 17
12,7
3 300
automotive 9
1 223
3 256
R&D 6
7,34
523
food processing 2
250 11
wood- processing 70 95
packaging
12,5 80

11. The largest investors in terms of the number of created job places
Projects completed by November 2014 assisted by PAIiIZ
7,604 NEW WORK PLACES
45 COMPLETED PROJECTS 4 2 1 3 9 6 7
The largest investors in terms of the number of created job places
1782m EUR OF INVESTMENT
Investments by country of origin
The largest investors in terms of invested capital

12. Completed projects by region in 2014
łódzkie
investment: 61,6 m EUR
employment: 1 230
main sectors: BSS, logistic
wielkopolskie
investment: 829 m EUR
employment: 2 830
main sectors: automotive, BSS
małopolskie
investment: 39,2 m EUR
employment: 815
main sectors: BSS, food processing
dolnośląskie
investment: 27,8 m EUR
employment: 669
main sectors: R&D, automotive
pomorskie
investment: 292 m EUR
employment: 630
main sectors: food processing 4

13. Share of reinvestment in completed projects
Number
Value
(m EUR)
Employment
Completed projects 45
1,782
7,604
including reinvestment 28
1,512
6,406
Share of reinvestments
62%
85%
84%

14. Trends in FDI flow BSS manufacturing zatrudnienie job places Produkcja
Sectors
BSS
manufacturing
Parameters
Produkcja
CAPEX
zatrudnienie
reinvestment
- organic growth
- expansion projects
- new type of operations
zakup
Real estate needs
Reinvestments
job places
rented office space
brownfield
greenfield
newcomers
Source: PAIiIZ 14

15. International recognition
14th place as the most attractive FDI destination
2nd most attractive country for FDI in the next 3 years
3rd place worldwide as the best quality location for manufacturing projects
2nd location in Eastern Europe and Russia offering the greatest revenue opportunities over next three years
Poland classified as a mature outsourcing location
3rd best location in the world after India and China, for outsourcing businesses in financial, accounting, advisory
6th among top 10 destination countries in Europe in 2012

16. Poland in Doing Business 2015
2015 RANK
DOING BUSINESS 2014 RANK
DOING BUSINESS 2013 RANK
DOING BUSINESS 2012 RANK 32 45 55 74
Quotations from the 2014 report:
„Poland is now classified as a high-income economy, a remarkable achievement over 2 decades.”
„Poland has made the greatest progress toward the frontier in regulatory practice in enforcing contracts in the past 5 years.”
„Every region has a leading champion in the scope of improvements made since  — whether Poland for OECD high-income economies, China for East Asia and the Pacific or Colombia for Latin America and the Caribbean.”
Source: World Bank, Doing Business 2015, 2014, 2013, 2012

17. Poland - positive investment factors
Source: Ankieta koniunkturalna EŚW 2014, AHK Polska, June 2014

18. Poland – negative investment factors
Source: Ankieta koniunkturalna EŚW 2014, AHK Polska, June 2014

19. Would you take the same decision once again?
Would you choose your country again? = Investors’ loyalty against investing country
Poland 1st place (ex equo with Estonia) with most positive results (96%)
Source: Ankieta koniunkturalna EŚW 2014, AHK Polska, June 2014

20. The EU budget: present and future financial perspective
Effective incentives system
Tax breaks
CIT exemption in Special Economic Zone
CIT relief for acquisition of new technology
Real estate tax exemption
Cash support
Government grants
Cash grants available through EU Funds
Nadrzędnym celem wdrożenia Systemu jest stworzenie finansowego instrumentu wsparcia, który umożliwiałby przekonanie przedsiębiorców planujących inwestycje w regionie Europy Środkowo-Wschodniej, a wahających się co do wyboru konkretnej lokalizacji, do umiejscowienia projektu w Polsce.
The EU budget: present and future financial perspective
Total: 975 bn EUR
Poland: 69 bn EUR (7% of total)
Total: 960 bn EUR
Poland: 72.9 bn EUR (7.6% of total)

21. Regional state aid map – Maximum intensity in years 2014-2020
35%
50%
25%
35%
20%
Warsaw
Warsaw:
- until – 15%
- as of – 10%
* map will be valid starting from

22. Special Economic Zones
Special Economic Zone (SEZ) is an especially dedicated area where investors receive special benefits
Major purpose of SEZ is to support local growth
There are 14 SEZ + subzones
Cumulative area = ha
SEZ will operate at least until 2026
Permits to conduct activities in SEZ are issued by the authorities of each SEZ
Minimum investment: EUR
Possibility of including the land selected by an investor into SEZ
Benefits from obtaining a permit to conduct activities in SEZ:
eligibility for income tax exemption
plot of land prepared for an investment project, available at a competitive price
free assistance in dealing with formalities relating to the investment project

23. CIT exemption in SEZ (mn PLN)
Results of SEZ
PLN 83,8 bn of the investment expenditures (as of end of September 2012)
82 % of the investment expenditures were incurred by foreign companies
of new jobs have been created in SEZ (as of end of September 2012)
Every work place in the SEZ generates 0,75 of work place outside of the SEZ
SEZ are located in 146 cities and 210 communes on total area of ha (as of end of 2012)
CIT exemption in SEZ (mn PLN)
Source: Ministry of Economy, Office of Competition and Consumer Protection

24. Exemption from real estate tax
Example:
Grudziądz, Kujawsko - Pomorskie province
Investment in the Pomorska SEZ by entrepreneur other than small or medium-sized
a form of regional state aid
available in communes which adopted resolutions concerning the possibility of exemption from real estate tax
maximum tax limits set by the Ministry of Finance
the exemption usually depends on the amount of new workplaces created
Jobs created
Full exemption
Investment of at least EUR 100,000 50
3 years 70
5 years 90
7 years
For every EUR 500,000 – additional 6 month of exemption no more than 1 year

25. Government grants – priority sectors
Program of support of investments of considerable importance for Polish economy
Priority sectors
Production
automotive
electronics
aviation
biotechnology
„big investment” in other sectors
Modern services
ICT
SSC
BPO
R&D activity (e.g. software development)
Purpose of support
development of innovativeness and competitiveness of Polish economy
Result of support
53 programmes of total amount PLN 900 m (since 2004)
19,000 of new jobs 25

26. Government grants - parameters
Sector
New work places
and
Investment costs
Max. amount of support
Employment grant
Production*
250
PLN 40 m
from PLN 3,200 (USD 1,000) to PLN 15,600 (USD 5,000)/ per job
Modern services
PLN 1.5 m**
R&D 35
PLN 1.5 m
Large investment in other sector
200 or
500
PLN 750 m
PLN 500 m
Investment grant
Production* 50
PLN 160 m
1.5% to 12.5% of investment costs
Large investment in other sector
200 or
500
PLN 750 m
PLN 500 m
R&D 35
PLN 10 m
up to 10%
*) Aid is not granted if unemployment rate in location (poviat) is below 75% of the national average, unless Eastern Poland
**) excluding office space rental costs

27. European Funds for Poland: EUR 67 bn in 2007-2013
5 National OP (74 %)
16 Regional OP (25 %)
European Territorial Cooperation Programme
Source: European Commission

28. EUR 72.9 bn* European Funds for Poland: EUR 72.9 bn in 2014-2020
Partnership contract – between
Poland and EC (draft adopted by the Council of Ministers on January 15th, 2013)
Regional contract – between
central government
and self-government units
* for cohesion policy + EUR 28,5 bn for agriculture policy

29. EU Cohesion Fund ( )
72.9 bn EUR

30. Case study – AMAZON
Amazon logistic centres in Poland: 2 near Wrocław (Kąty, Bielany Wrocławskie in Lower Silesia region) and 1 near Poznań (Tarnowo Podgórne in Wielkopolska region).
Amazon will invest in total approx. EUR 40 million. Operations at the 3 new locations will begin by the end of 2014 / beginning of 2015.
ultimately people will be employed permanently and additionally at the seasonal pick periods.
three Amazon sites in Poland will be integrated into the network of 25 centers in Europe as part of an expansion strategy to serve customers in every European country.
Location factors :
Logistic & technical infrastructure
Specialised and educated labour
Competitive labour costs
Poznań
Investment:
40 mn EUR
Jobs (total in 3 centres):
(season)
Wrocław
I.2013
X.2013
II.2014
VIII 2014
Presentation
of investment
plans
Investment
decision
Cornerstone
laying
ceremony
Start of operations 30 30

31. Case study – Volkswagen
VW new greenfield project:
investment outlays: 800 m EUR
employment: 2300
product: semi truck
location: Września, wielkopolskie province
timeline:
VW project step by step
Over 22 greenfield offers provided, 11 visited sites
5 Special Economic Zones involved
5 trips lasting a few days to Poland to view the plots with up to 10 participants (PAIiIZ, investor and consultancy company)
5 PAIiIZ visits to the selected regions prior to the investor’s visits in order to prepare local authorities
Several meetings at PAIiIZ HQ with local authorities and SEZ
3 negotiation rounds in Berlin; up to 50 participants; with the participation of Vice Minister of Economy
1 visit to the VW HQ
1 VW VIP visit to Poland, viewing the sites from the helicopter
Września 31 31

32. Thank you for your attention
Warszawa, ul. Bagatela 12
tel. (+48 22) , fax (+48 22)