1. ESTONIA AT A GLANCE. Estonian Investment Agency » investinestonia.com

2. (Map & location) Area 45 227 km2Area 45 227 km2 Population 1,3 millionPopulation 1,3 million Member of EU, Eurozone, OECD, NATO and SchengenMember of EU, Eurozone, OECD, NATO and Schengen Credit ratings: Fitch A+; S&P AA-; Moody’s A1 At the Heart of the Baltic Sea

3. A Message from our President “Were the internet to have a postal address, it would most likely be here in Estonia. We have reason to be proud of our highly developed telecommunications network. Estonia is a place you can take your laptop into the deepest forest and still hook up to the internet. It is no accident that Skype was born here.” “Skype represents an ideal of what we think Estonia should be - a small group of people come together and come up with a really brilliant idea that becomes known all over.” Toomas Hendrik Ilves, President of Estonia Welcome to e-Estonia!

4. Why Estonia? A unique location and culture combining Nordic roots and Eastern influences. The Estonian approach is functional and one that creates timeless value. A highly progressive environment that offers an efficient way of doing business. Our e-services, mobile communications and internet applications are among the most progressive in the world. Among the most successful countries in the world in attracting foreign investments. Foreign direct investments account for 85% of Estonia’s GDP. A unique location and culture combining Nordic roots and Eastern influences. The Estonian approach is functional and one that creates timeless value. A highly progressive environment that offers an efficient way of doing business. Our e-services, mobile communications and internet applications are among the most progressive in the world. Among the most successful countries in the world in attracting foreign investments. Foreign direct investments account for 85% of Estonia’s GDP.

5. High Position in Business Environment Rankings Source: World Bank – Doing Business 2014 11 th in Index of Economic Freedom 2014 Wall Street Journal / The Heritage Foundation 7 th in Trading Across Borders 2014 World Bank 2 nd in the Internet Freedom Freedom House 32 nd in Global Competitiveness Report 2014 World Economic Forum 28 th in Corruption Perceptions Index 2013 Transparency International 11 th in Index of Economic Freedom 2014 Wall Street Journal / The Heritage Foundation 7 th in Trading Across Borders 2014 World Bank 2 nd in the Internet Freedom Freedom House 32 nd in Global Competitiveness Report 2014 World Economic Forum 28 th in Corruption Perceptions Index 2013 Transparency International

6. Low risk – Politically and Economically Stable Political stability. Estonia is seen as the most stable country in CEE. Lowest government debt in Europe. Government debt was 10.0% in 2013 compared to 54,8% in Finland or 38% in Latvia for example. A balanced and future oriented state budget with a growing interest in entrepreneurs and foreign investors. Political stability. Estonia is seen as the most stable country in CEE. Lowest government debt in Europe. Government debt was 10.0% in 2013 compared to 54,8% in Finland or 38% in Latvia for example. A balanced and future oriented state budget with a growing interest in entrepreneurs and foreign investors. Source: IMD World Competitiveness Yearbook 2014 The higher the rank, the lower the risk

7. Estonian GDP by Economic Activity 2013 Source: Statistics Estonia

8. GDP Growth and Inflation, 2004-2016 * forecast Source: Statistics Estonia

9. Main Economic Indicators, 2012-2017 201220132014*2015*2016*2017* GDP real growth (%)3.20.80.52.53.53.4 GDP (current prices, billion EUR) 17.018.419.020.121.422.8 Consumer price index (%)3.92.80.31.92.53.0 Employment (15–74 years old, thousands) 624.4621.4622.1 620.9628.4 Growth of labour productivity0.7-0.20.32.53.73.8 Unemployment rate (ILO)10.28.66.86.4 6.1 Average wage (EUR)8879481,0051,0661,1341,208 Wage real growth (%)1.74.95.74.13.83.4 * forecast Source: Ministry of Finance Summer 2014 forecast

10. Structure of FDI Inflow (EUR m) Source: Bank of Estonia Total stock: EUR 15,6 bln

11. Structure of FDI Outflow (EUR m) Source: Bank of Estonia Total stock: EUR 4.8 bln

12. FDI Inflow by Country and Activity Stock as of 31.12.2013 Sweden26,7% Finland21,3% Netherlands10,2% Norway5,8% Russia5,3% Lithuania3,0% Cypros3,0% UK2,5% Denmark2,3% USA2,1% Luxembourg2,1% Other15,7% Financial and insurance activities25,0% Real estate activities16,0% Wholesale and retail trade15,3% Manufacturing14,3% Professional, scientific, technical activities8,4% Transportation and storage5,5% Administrative and support service activities3,2% Agriculture, foresty and fishery2,7% Information and communication2,1% Other7,5% Source: Bank of Estonia

13. FDI Outflow by Country and Activity Stock as of 31.12.2013 Cyprus28,4% Lithuania21,2% Latvia16,8% Ukraine5,4% Russia4,6% Finland4,1% Netherlands3,1% Belarus2,0% Others14,4% Transportation and storage27,4% Professional, scientific, technical activities20,3% Financial and insurance activities16,8% Real estate activities12,7% Wholesale and retail trade8,9% Manufacturing4,6% Other9,3% Source: Bank of Estonia

14. Estonian Foreign Trade - Commodities (EUR bln) Source: Statistics Estonia Commodities exports represent 67% of Estonia’s GDP

15. Sweden16,8% Finland16,1% Russia11,4% Latvia10,4% Lithuania5,9% Germany4,5% Norway3,7% USA2,9% UK2,4% Others25,9% Commodities Exports by Country and Commodity 2013 Source: Statistics Estonia Machinery and appliances28,1% Mineral products10,5% Wood and articles of wood8,6% Base metals and articles of metals7,2% Miscellaneous manufactured products 7,1% Transport equipment6,6% Chemical products5,7%5,7% Food products4,2% Live animals, animal products3,8% Textile products3,4% Other14,8%

16. Finland15,1% Germany10,5% Sweden10,1% Latvia9,6% Lithuania8,9% Poland8,0% Russia5,8% UK4,2% China3,4% Netherlands3,3% Others21,1% Commodities Imports by Country and Commodity 2013 Source: Statistics Estonia Machinery and appliances27,7% Mineral products12,7% Transport equipment10,5% Chemical products7,8% Base metals and articles of metals7,5% Food products6,1% Plastics and rubber5,0% Textiles and textile articles4,3% Wood and articles of wood2,7%2,7% Live animals, animal products2,5% Other13,2%

17. Estonian Foreign Trade - Services (EUR bln) Source: Bank of Estonia Services exports represent 24% of Estonia’s GDP

18. Exports Finland24,8% Russia11,8% Sweden7,8% Lithuania7,1% Latvia6,9% Germany4,8%4,8% UK4,4% USA4,2% Norway3,3% Switzerland3,3% Denmark2,7% Others18,9% Services Exports and Imports by Country 2013 Imports Finland14,8% Sweden8,9% Latvia8% Germany7,1% UK6,2% Russia4,6% Lithuania4,5% France4,2% Poland4,2% Cyprus4% Norway3,8% Others29,7% Source: Bank of Estonia

19. Simple and Favourable Tax System Source: KPMG

20. Information Society Indicators

21. Estonia is Part of the Nordic Electricity Market Estonia is part of Nordic electricity market and Estonian electricity system is connected also with Russia and Latvia. Estonian energy system is the only predominantly oil-shale-based energy production system in the world. The biggest energy producer in Estonia is Eesti Energia, a 100% state-owned company. The price of electricity consists of four components: electricity, network service, renewable energy support and excise duty. Electricity market is 100% open starting January 2013. Estonia is part of Nordic electricity market and Estonian electricity system is connected also with Russia and Latvia. Estonian energy system is the only predominantly oil-shale-based energy production system in the world. The biggest energy producer in Estonia is Eesti Energia, a 100% state-owned company. The price of electricity consists of four components: electricity, network service, renewable energy support and excise duty. Electricity market is 100% open starting January 2013.

22. Natural Gas Market Natural gas is imported into Estonia from Russia and Latvia. Estonian natural gas company is Eesti Gaas. Network services to all participants of the natural gas market on the territory of Estonia are provided by EG Võrguteenus. The price of gas consists of three elements: gas, network service and excise duty. The price for industrial users is a matter of negotiations. Natural gas is imported into Estonia from Russia and Latvia. Estonian natural gas company is Eesti Gaas. Network services to all participants of the natural gas market on the territory of Estonia are provided by EG Võrguteenus. The price of gas consists of three elements: gas, network service and excise duty. The price for industrial users is a matter of negotiations. Source: Eurostat

23. Property Market Indicative range for rents (excluding VAT and operating expenses) in major towns of Estonia for class A and B1 office premises and industrial space (EUR/m2 per month). Type of spaceTallinnTartuPärnuNarva Office8.0 – 16.04.8 – 11.54.0 – 8.03.1 – 5.5 Industrial2.8 - 5.02.0 - 4.01.6 - 4.41.9 - 3.8 Source: Colliers International

24. Labour Market and Education System Total labour force: 680,000 The unemployment rate: 8,6% in 2013 General working time: 8 hours a day, 5 days per week. The duration of one shift may not exceed 12 hours Overtime is allowed by mutual agreement The duration of the annual vacation: 28 days 10 Public holidays a year The average wages in Estonia in 2013 was EUR 948. The monthly minimum wage for full-time work is EUR 355. Total labour force: 680,000 The unemployment rate: 8,6% in 2013 General working time: 8 hours a day, 5 days per week. The duration of one shift may not exceed 12 hours Overtime is allowed by mutual agreement The duration of the annual vacation: 28 days 10 Public holidays a year The average wages in Estonia in 2013 was EUR 948. The monthly minimum wage for full-time work is EUR 355. 7 universities (6 public, 1 private) - ca 49,400 students  University of Tartu – 15,800 students  Tallinn University of Technology – 12,900 students  Tallinn University – 10,300 students  Estonian University of Life Sciences – 4,300 students  Estonian Academy of Arts – 1,130 students  22 other professional higher education institutions – ca 15,400 students 48 vocational schools - ca 26,200 students 214 gymnasiums (high schools) - ca 24,000 students 7 universities (6 public, 1 private) - ca 49,400 students  University of Tartu – 15,800 students  Tallinn University of Technology – 12,900 students  Tallinn University – 10,300 students  Estonian University of Life Sciences – 4,300 students  Estonian Academy of Arts – 1,130 students  22 other professional higher education institutions – ca 15,400 students 48 vocational schools - ca 26,200 students 214 gymnasiums (high schools) - ca 24,000 students 7 universities (6 public, 1 private) - ca 46,600 students o University of Tartu – 15,800 students o Tallinn University of Technology – 12,900 students o Tallinn University – 10,300 students o Estonian University of Life Sciences – 4,300 students o Estonian Academy of Arts – 1,130 students o Estonian Academy of Music and Threatre – 700 students o Estonian Business School – 1,500 students 17 other professional higher education institutions – ca 12,500 students 47 vocational schools - ca 25,700 students 204 gymnasiums (high schools) - ca 22,500 students 7 universities (6 public, 1 private) - ca 46,600 students o University of Tartu – 15,800 students o Tallinn University of Technology – 12,900 students o Tallinn University – 10,300 students o Estonian University of Life Sciences – 4,300 students o Estonian Academy of Arts – 1,130 students o Estonian Academy of Music and Threatre – 700 students o Estonian Business School – 1,500 students 17 other professional higher education institutions – ca 12,500 students 47 vocational schools - ca 25,700 students 204 gymnasiums (high schools) - ca 22,500 students

25. Room for Growth: Number of Students and Graduates Name of faculty Name of the study programme 2011/20122012/2013 Social sciences, business & law Social and behavioural sciences 3,7463,487 Journalism 1,1611,067 Business Administration 16,42715,637 Law 3,4483,124 Natural- and applied sciences Bio science 1,4971,460 Physcis 1,2831,250 Math and statistics 383353 Computer sciences 7,1047,284 Name of faculty Name of the study programme 2010/20112011/2012 Social sciences, business & law Social and behavioural sciences 679626 Journalism234210 Business Administration 3,8702,284 Law708688 Natural- and applied sciences Bio science292 277 Physcis220 249 Math and statistics 71 79 Computer sciences 957 1,029 Number of studentsNumber of graduates Source: Ministry of Education and Research World class talent: according to the World Economic Forum’s 2013-2014 Global Competitiveness Index, Estonia was ranked 24 th in the world and the highest in CEE and Russia for the quality of its higher education. Universities & vocational colleges: student base = 85,000

26. Key Sectors ICT Transport and logistics services Shared services Industrial machinery and metalworking Electronics ICT Transport and logistics services Shared services Industrial machinery and metalworking Electronics

27. ICT Estonia is the host country for NATO's Cooperative Cyber Defence Center of Excellence and the EU IT Agency’s headquarter. The computer security company McAfee ranks Estonia as having a reliable cyber security structure. Estonia is second in the internet freedom in the world, according to Freedom House. Estonia is the global pioneer in adopting electronic government and numerous ID-card based e-services. The development center of Skype is located in Estonia. Besides that also companies like Symantec, CGI, Fujitsu and many others have their base in Estonia. 2,560 companies are active in the ICT sector, contributing 5% of total sales in business activities in Estonia. Over 19,500 employees – 3,1% of total employment in Estonia. Estonia is the host country for NATO's Cooperative Cyber Defence Center of Excellence and the EU IT Agency’s headquarter. The computer security company McAfee ranks Estonia as having a reliable cyber security structure. Estonia is second in the internet freedom in the world, according to Freedom House. Estonia is the global pioneer in adopting electronic government and numerous ID-card based e-services. The development center of Skype is located in Estonia. Besides that also companies like Symantec, CGI, Fujitsu and many others have their base in Estonia. 2,560 companies are active in the ICT sector, contributing 5% of total sales in business activities in Estonia. Over 19,500 employees – 3,1% of total employment in Estonia.

28. Transport and Logistics Services An impressive infrastructure – 5 key international ports, 4 free zones, 10 border posts to Russia, block trains to Moscow and Beijing, shortest EU flight time to China. Estonia is the geographical midpoint of Northern Europe and therefore the best place to set up distribution centres and to generate added value. Europe's most effective rail operator, Europe's most modern and up to date airport and the largest port at the Baltic Sea are all located in Estonia. Estonia is ranked 7 th out of 189 economies for the ease of Trading Across Borders. An impressive infrastructure – 5 key international ports, 4 free zones, 10 border posts to Russia, block trains to Moscow and Beijing, shortest EU flight time to China. Estonia is the geographical midpoint of Northern Europe and therefore the best place to set up distribution centres and to generate added value. Europe's most effective rail operator, Europe's most modern and up to date airport and the largest port at the Baltic Sea are all located in Estonia. Estonia is ranked 7 th out of 189 economies for the ease of Trading Across Borders.

29. Shared Services Sustainable, high-quality, competitive costs and low risk solutions for BPO, IT and financial services shared service centres, customer and technical support centres. Estonia is the regional market leader in IT shared services. 55% of the workforce are fluent in one or more foreign languages. Top language skills: Russian, English, Finnish, German, Swedish. Solid track record in shared services: Kuehne+Nagel, Statoil, TeliaSonera, AGA (Linde Group), Stora Enso, Transcom, Arvato (Bertelsmann). Sustainable, high-quality, competitive costs and low risk solutions for BPO, IT and financial services shared service centres, customer and technical support centres. Estonia is the regional market leader in IT shared services. 55% of the workforce are fluent in one or more foreign languages. Top language skills: Russian, English, Finnish, German, Swedish. Solid track record in shared services: Kuehne+Nagel, Statoil, TeliaSonera, AGA (Linde Group), Stora Enso, Transcom, Arvato (Bertelsmann).

30. Industrial Machinery and Metalworking Estonia offers a dynamic, internationally focused mechanical engineering ecosystem, excellent accessibility, a sustainable, high- quality skills base and competitive, low-inflation costs. 1,370 companies are active in the machinery and metalworking sector, ca 20,400 direct employees. EUR 1.8 billion revenues, of which 50% is generated from exports. 3 main branches: o Metals and metal products – 57% of total revenues; o Transport equipment – 21% of total revenues. 88% of transport equipment production is exported; o Machinery, tools & equipment – 18% of total revenues. Examples of companies in Estonia: ABB, Hanza Tarkon, Metalliset Group, Ruukki. Estonia offers a dynamic, internationally focused mechanical engineering ecosystem, excellent accessibility, a sustainable, high- quality skills base and competitive, low-inflation costs. 1,370 companies are active in the machinery and metalworking sector, ca 20,400 direct employees. EUR 1.8 billion revenues, of which 50% is generated from exports. 3 main branches: o Metals and metal products – 57% of total revenues; o Transport equipment – 21% of total revenues. 88% of transport equipment production is exported; o Machinery, tools & equipment – 18% of total revenues. Examples of companies in Estonia: ABB, Hanza Tarkon, Metalliset Group, Ruukki.

31. Electronics Estonia offers distinctive opportunities as a near-shore electronics hub for both in-house and outsourced production and distribution. 200 companies are active in electronics sector, ca 10,800 direct employees. EUR 2.3 billion revenues, of which 91% is generated from exports. 2 main branches: o Computer, Electronic & Optical Products – 76% of total revenues; o Electrical Equipment – 24% of total revenues. Examples of companies in Estonia: Ericsson, Stoneridge Electronics, ABB, PKC Group. Estonia offers distinctive opportunities as a near-shore electronics hub for both in-house and outsourced production and distribution. 200 companies are active in electronics sector, ca 10,800 direct employees. EUR 2.3 billion revenues, of which 91% is generated from exports. 2 main branches: o Computer, Electronic & Optical Products – 76% of total revenues; o Electrical Equipment – 24% of total revenues. Examples of companies in Estonia: Ericsson, Stoneridge Electronics, ABB, PKC Group.

32. Estonian Investment Agency Our mission to ensure a competitive business environment for foreign investments in Estonia to establish and develop business relationships with international companies We provide Information services and investment preparation Investment proposals and tours Consulting and project management Facilitating contacts, negotiation with authorities Organizing recruitment and identifying suitable properties Post-investment / aftercare services Our representations: Tallinn, Estonia Hamburg, Germany Helsinki, Finland Stockholm, Sweden Silicon Valley, USA Tokyo, Japan Shanghai, China Saint-Petersburg, Russia Our representations: Tallinn, Estonia Hamburg, Germany Helsinki, Finland Stockholm, Sweden Silicon Valley, USA Tokyo, Japan Shanghai, China Saint-Petersburg, Russia EIA is a division within Enterprise Estonia

33. THANK YOU!