1. Tasks and Objectives of the Hungarian Investment Agency Róbert Bödőcs Vice President

2. Introduction of HIPA

3. Recent birth of HIPA Investment Promotion –Increase FDI inflow –Assistance for companies already present in Hungary Export promotion → Hungarian National Trading House

4. Who we are Governmental agency for investment promotion supervised by the Ministry of Foreign Affairs and Trade Full scale services: one-stop shop for foreign investors Our team: 80 employees in the HQ and a network of colleagues abroad

5. T OP S ECTORS Automobile IndustryElectronicsSSCFood IndustryRenewable EnergyPharma, BiotechnologyChemical Industry

6. I NVESTMENT PROMOTION SERVICES Pre-decision Tailored information packages on the economy, industrial sectors, incentives, business environment, supplier network Assistance in location search and evaluation Organization of site visits and partner meetings Implementation Operations Expansion assistance After care services Intermediary body between the government and the companies Supplier search Providing information on permitting procedures Assistance in identifying incentives Intermediate Body for VIP cash incentive (preliminary information, application)

7. Available Incentives  Cash grants  EU co-financed tenders OR  Cash subsidy based on the decision of the Hungarian Government (EKD)  Development tax allowance  Training subsidy  Job Protection Action Plan

8. Conditions of cash subsidy based on the decision of the Hungarian Government Based on job creation In case of asset investment In Central Hungary where subsidy may be granted in case of asset investment the conditions are min. EUR 20 million investment volume and 100 new employees, based on job creation the conditions are min. EUR 10 million investment volume and 100 new employees. According to the applicable legislation in Central Hungary subsidy may not be granted for capacity expanding investments of large companies.

9. Supplier development activity of HIPA (I.) Emphasized sectors o automotive o electronics o machine industry Supported sectors: Indirect, productive activities that do not directly contribute to the production of goods, such as packaging, logistics, engineering services, etc.

10. Supplier development activity of HIPA (II.) Our services for integrators Regular personal meetings with management for setting up and reviewing supply strategy and project plan Longlist business contacts about possible Hungarian suppliers Shortlist business contacts to maximize the chance of the successful cooperation Match-making between the OEM and the suppliers On request establishing business relationship and consultancy with other governmental organs Training services for the integrator’s suppliers according to the company’s needs and requirements

11. HIP database – A collection of approved private investment project offers. 33 projects - 1.4 billion EUR funding requirement Sectors:  Agriculture and Food Industry  Capital Goods Manufacturing  Renewable Energy  Medical, Recreational and Wellness Tourism  Innovation  Real Estate Overall project budgets ranging from EUR 1.5 million to EUR 1000 million. Hungarian Investment Projects (HIP)

12. HIPA Results in 2013 More than 20.000 jobs to be created 200 investments projects 35 positive decisions 1.2 billion euro of FDI 7,000 new jobs

13. Coloplast (40,8 m EUR; 701 jobs) OPEL (60 m EUR) ZF Lenksysteme (80 m EUR) Hankook (303 m EUR; 950 jobs) Hewlett-Packard (175 jobs) Samsung (100 jobs) Procter & Gamble (59,5 m EUR; 150 jobs) Bridgestone (237 m EUR; 505 jobs) Systemax (200 jobs) Bosch (60 m EUR; 500 jobs) Flextronics (200 jobs) Takata (68.3 m EUR; 1000 jobs) Greif ( 50 jobs) Main decisions in 2013

14. Main positive decisions in 2014 so far Alumetal (30 m EUR; 150 jobs) Samsonite (8 m EUR; 110 jobs) Ecosolifer (23,5 m EUR; 100 jobs) Pactera(11,50 m EUR; 230 jobs) GE SSC ( 53,90 m EUR; 1300 jobs) Snap-on (0,8 m EUR; 10 jobs) Emirates (300 jobs) Computacenter (220 jobs)

15. Budapest is the best FDI location in the region RankCityCountry 1BudapestHungary 2WroclawPoland 3KatowicePoland 4PlzenCzech Republic 5MoscowRussia 6BrnoCzech Republic 7PoznanPoland 8OstravaCzech Republic 9BratislavaSlovakia 10PragueCzech Republic Budapest has been ranked the most attractive city in Eastern Europe in 2014-15.

16. Róbert Bödőcs Vice President Hungarian Investment Promotion Agency robert.bodocs@hipa.hu