1. Agenda I. Poland - The Place To Be II. Foreign Direct Investment III. Business Environment: Labor, Infrastructure V. Sectors of Opportunities VI. Public Aid IV. Global Acknowledgement

2. Poland - Key Facts Area:312 700 sq km – 6th in European Union Population:38,12 million – 6th in European Union Currency:Polish Zloty (EUR 1 ~ 4.4 PLN) GDP total:USD 422 billion (2007) GDP growth:6.7% (2007), ca 5% (2008) Membership:EU, NATO, OECD, WTO, Schengen Zone

3. Competitive Advantages Location & economic fundamentals  strategic location in continental Europe  part of trans-european transportation corridor  GDP growth twice the EU average  38 million of consumers  10% growth of retail market Investment incentives  14 Special Economic Zones  over 90 bn EUR from EU Labor force  young, well-educated work force  ca 2 million of university students  455 universities & high education schools  increasing labour productivity 1000 km radius 250 mn people 2000 km radius 550 mn people

4. GDP growth 6.7% in 2007 vs 2.9% in EU 4.8% in 3H 2008, 5%F vs 1% in EU 2% forecasted in Poland vs -1,8% in EU for 2009 domestic demand - the main factor behind the growth Inflation (CPI) and interest rates Source: Ministry of Finance, NBP, Eurostat 2008 Poland: Encouraging Macro-economic Picture GDP growth rate Inflation 2.6% in 2007 vs 2.4% in EU 4.2% forecasted in 2008 vs 3,7% in EU direct inflation targeting since 1999 - target of 2.5% +/-1%

5. Poland: Falling Unemployment Source: Central Statistical Office 2008 over 20% 11/2008 9.1% Employment rate grew since 2004 by over 5% up to 56.4%

6. Labor Cost in Poland and OECD Countries (PPP adjusted, in thousands USD) Source: OECD, 2006

7. Labour costs in CEE Region in 2006-2008 Source: EUROSTAT Monthly labour cost per employee in EUR

8. Agenda I. Poland - The Place To Be II. Foreign Direct Investment III. Business Environment: Labor, Infrastructure V. Sectors of Opportunities VI. Public Aid IV. Global Acknowledgement

9. FDI inflow (mln EUR) and sources Source: NBP 2008 Geographical sources of FDI inflow * Estimated

10. Source: World Investment Report, UNCTAD 2008 Poland as a major FDI recipient in the region: Poland attracted ca. EUR 16 billion in 2007, the highest amount among 12 new EU states. Poland in World Investment Report 2008 According to UNCTAD the key factors attracting FDI to Poland are: rapidly expanding domestic market flexible & skilled labour force solid banking system

11. Agenda I. Poland - The Place To Be II. Foreign Direct Investment III. Business Environment: Labour, Infrastructure V. Sectors of Opportunities VI. Public Aid IV. Global Acknowledgement

12. There are ca 1,9 mn university students in Poland POZNAN WROCLAW WARSAW KRAKOW LODŹ SZCZECIN TRICITY KATOWICE BYDGOSZCZ-TORUN BIALYSTOK LUBLIN RZESZOW Main academic centers Source: Polish Statistical Office 2008

13. Knowledge of Foreign Languages 57% Poles is able to speak at least one foreign language, 32% of Poles speak two, 4% - three languages. Similar situation in EU: 56% of EU citizens speak one foreign language, 28% - two languages. Percentage of young Poles speaking foreign languages Learning of foreign languages is obligatory in the Polish education system Source: Eurostat 2006, TNS Opinion & Social (UK) December 2006, Ranstadt 2008

14. Passengers served by Polish airports (in millions) Source: Civil Aviation Office Air Transport Regional airports on constant rise Three new international airports may be created within a short proximity to the capital city of Warsaw

15. Agenda I. Poland - The Place To Be II. Foreign Direct Investment III. Business Environment: Labour, Infrastructure V. Sectors of Opportunities VI. Public Aid IV. Global Acknowledgement

16. Investment attractiveness of cities and regions Best cities in terms of value for money 20072006 Warszawa11 Prague84 Paris1617 Madrid1012 London1828 Lisbon32 Budapest56 Bucarest22 Berlin48 Amsterdam1219 Source: Cushman & Wakefield, European Cities Monitor 2007 1Warszawa 2Kraków 3Wrocław 4South of Poland 5Prague 6Budapest 7Sofia 8Bratyslava 9Tallin 10Bucarest Top 10 Most Cost Effective 1Luxemburg 2Tallin 3Paris 4London 5Region Pardubice 6Kraków 7South of Poland 8Villnius 9Riga 10Gorna Oryahovitsa Top 10 Best Economic Potential Source: Financial Times, European Cities & Regions of the Future 2008/09

17. Poland vs economies in transition from efficiency driven to innovation driven Source: The Global Competitiveness Report 2008-2009, World Economic Forum 2008 Reference Group Bahrain Barbados Chile Croatia Estonia Hungary Latvia Lithuania Poland Qatar Russian Federation Slovak Republic Taiwan, China Trinidad and Tobago Turkey

18. Poland value for money According to the 2008 edition of the Country Broad Index (CBI) Poland is on a high 5th ranking in group of countries value for money. Source: Country Broad Index 2008

19. Poland - No.1 Location for FDI in Europe Source: Ernst & Young, 2008; 7% 8% 9% 10% 11% 12% 16% 18% Czech Republic Poland 7% 8% 9% 10% 11% 12% 16% 18% Italy Bulgaria Spain UK Hungary Romania France Russia Germany

20. Agenda I. Poland - The Place To Be II. Foreign Direct Investment III. Business Environment: Labour, Infrastructure V. Sectors of Opportunities VI. Public Aid IV. Global Acknowledgement

21. Services and Manufacturing Hub Automotive Metal Machinery Electronics

22. Services and Manufacturing Hub Aviation BPO R&D

23. Agenda I. Poland - The Place To Be II. Foreign Direct Investment III. Business Environment: Labour, Infrastructure V. Sectors of Opportunities VI. Public Aid IV. Global Acknowledgement

24. Regional Aid Map in Poland 2007 -2013 50% 40% 40% till 2010 30% as of 2011 Warszawa City 30 % Due to relatively lower GDP level in Poland the levels of admissible state aid are higher than in most other EU countries

25. CIT exemption in Special Economic Zone Real estate tax exemption Government grants through individual negotiations Grants available through EU Funds All above presented instruments can be combined together however the total amount of public aid cannot exceed the maximum aid ceiling Forms of regional aid

26. Special Economic Zones SEZ is a designated area in which manufacturing or distribution activities can be conducted on preferential terms to support regional development there are 14 SEZs in Poland, each consisting of several subzones Total area of all SEZ – 20 000 hectares Permits to conduct activities in SEZ are issued by the authorities of each SEZ 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 – a form of regional aid plot of land prepared for an investment project at a competitive price free assistance in dealing with formalities relating to the investment

27. Governmental support system  SUPPORT FOR CO-FINANCING OF INVESTMENT COSTS Eligible criteria: investment value of at least 160 mn PLN and at least 50 new jobs  SUPPORT FOR THE CREATION OF NEW JOBS Eligible criteria: creation of at least 250 jobs (35 jobs in case of R&D sector and investment of at least 3 mn PLN) Supported sectors: Automotive Aviation Biotechnology BPO R&D IT & electronics

28. EU funds in Poland: 2007-2015 EU support Structural instruments (EUR 67,3 bln) 6 national operational programmes and 16 regional – ESF, ERDF, CF Rural Development Programme (EUR 13,2 bln) Investment in food processing, wholesale, training for farmers and foresters European Fisheries Fund(EUR 0,6 bln) Investment in fish processing and marketing

29. Why Poland? Summary Great number of high potential human resources Cost effectiveness EU-Funds (110 bn USD for the period of 2007 -2013) Strategic location

30. Short list Short list of countries, choice of locations, detailed legal and financial analysis, investment incentives system’s analysis, negotiations with central and local authorities, finding the potential partners Investment decision Long list of countries Analysis of macroeconomic, social and political conditions of the countries, general legal and financial analysis including investment incentives system, fact finding missions Considering of investment Strategic corporate decision regarding new investment, destination of investment Project Managers assistance Site visits offered to investors Providing macroeconomic and sectoral data, information on financial incentives offered by central and local governments, Special Economic Zones and EU funds Assistance in obtaining financial support from the state government Co-operation with Special Economic Zones Date base of suppliers and business partners Network of Regional Investor Assistance Centers Real estate data base After-care services Ombudsman for foreign investors Promotion of Poland through marketing campaigns, investment seminars, work- shops, study tours Investment marketing, company visits Co-operation with Polish Embassies abroad Agency’s offer About PAIiIZ