1. Top Destination for Investment
ROMANIA
Top Destination for Investment
December, 2010

2. Romania the largest market in South Eastern Europe
Area:
238,391 km2
(9th largest in EU)
Population:
21.5 million (7th largest in EU)
Capital city:
Bucharest
2.1 million
European Union status
Member since January1st,2007
Affiliation:
NATO, WTO,WB, IMF.
Domestic currency:
LEU (RON)
1EUR= RON
1USD= RON
(As Nov. 03, 2010)
Official language:
Romanian
Administ. division:
41 counties and Bucharest
1000 km radius
1500 km radius
Bucharest

3. Pan European Corridors crossing Romania
Helsinki – Kiev - Bucharest –
Odessa/Alexandropoulos IV
Dresden/Nurnberg – Bucharest Constanta/Thessaloniki/
Istanbul
VII
The Danube river - 2,300km IX
Helsinki – Kiev - Bucharest –Odessa/Alexandropoulos

4. Significant Potential for Growth
2009
GDP Growth Rate
Poland
1.7%
Slovakia
-4.7%
Czech Republic
-4.8%
Bulgaria
-5.0%
Hungary
-6.3%
Romania
-7.1%
Slovenia
-7.8%
EU 27
-4.2%
Source: EUROSTAT;
Source: National Institute of Statistics; GDP EU 27
Rapid and sustainable GDP growth rate between ;
Severe adjustment of GDP in 2009 triggered austerity measures and a Governmental anti-crisis program;
Forecast 2010: -2%; 2011: + 1.5%

5. Inflation Rate Inflation Rate
Annual Average Inflation Rate 2009
Romania
5.6%
Hungary
4.0%
Poland
Bulgaria
2.5%
Slovenia
0.9%
Slovakia
Czech Rep
0.6%
EU 27
1.0%
Inflation Rate
Source: Eurostat
Source: National Institute of Statistics;
National Bank of Romania is targeting the inflation;
Disinflation policy to join Euro zone in 2015;
Target 3.5% inflation rate in 2010 and 3.0% for 2011;

6. Cities with more than 100,000 inhabitants
Human Capital
Demographics
Young population (more than 50% under 40 years old)
Almost 21.5 million people
Talent pool
106 universities, 631 faculties
125,000 university graduates/yr
Availability of technical engineers
High industrial experience
Flexibility
Foreign language skills
Cities with more than 100,000 inhabitants
more than 1,000,000 inhabitants
300,000 – 400,000 inhabitants
200,000 – 300,000 inhabitants
100,000 – 200,000 inhabitants
Source: National Institute of Statistics

7. Labor Cost – A debated topic
Gross average monthly wages
EUR
Gross average monthly wages
EUR
Source: Vienna Institute for International Economic Studies
Source: National Institute of Statistics;
Romania will hold on its competitive advantage related to labour cost;
7% decrease in 2009 against 2008;
Adjustment of the salaries growth in the administration system;

8. 10 Major University Centers
TARGU - MURES
CLUJ-NAPOCA
14 thou
S: 79% P: 21%
IASI
70 thou
S: 93% P: 7%
67 thou
S: 90% P: 10%
SIBIU
BRASOV
24 thou
S: 92% P: 8%
46 thou
S: 69% P: 31%
GALATI
21 thou
S: 87% P: 13%
TIMISOARA
51 thou
S: 89% P: 11%
PITESTI
BUCURESTI
20 thou
S: 86% P: 14%
CRAIOVA
BUCURESTI
34 thou
S: 89% P: 11%
376 thou
State: 67% Private: 33%

9. Source: National Bank of Romania
Inward FDI Flows
2009
Annual Inward FDI
Poland
8384
Romania
3488
Bulgaria
2845
Czech Republic
1935
Hungary
800
Slovenia
- 48
EUR million
Source: Vienna Institute for International Economic Studies;
Source: National Bank of Romania
Second largest inward FDI receiver in Central - Eastern Europe;
Stock EUR 50 bill. (1990–2009)
EUR 30 bill.attracted over the last 4 years only;

10. FDI by Field of Activity Source: National Bank of Romania
( )
Total Economy
Manufacturing
Source: National Bank of Romania

11. Top 10 Investing Countries Source: National Bank of Romania
( )
Netherlands
Austria
Germany
France
Greece
21.8%
18.1%
13.4%
8.5%
6.6%
Italy
Cyprus
Switzerland
Belgium
USA
5.1%
4.7%
4.2%
2.2%
2.1% 5 1 2 3 4 6 8 7 9 10
Source: National Bank of Romania

12. Main foreign companies by sector
Sector of activity:
RENAULT; FORD; DELPHI; DURA; HONEYWELL; LEAR; TRW; YAZAKI; CALSONIC-KANSEI; CONTINENTAL AG; MICHELIN; PIRELLI; AUTOLIV; INA SCHEFFLER
Automotive
SOLECTRON; CELESTICA;NOKIA; SYSTRONICS; ELCOTEQ; BENCHMARK; ELBIT; SELEX; KATHREIN;
Electronics
MICROSOFT; ORACLE; HP; INTEL; IBM; CISCO; ACI;AMAZON; SIEMENS; WIPRO; SIVECO; ERICSSON;
IT services
ALPHA Bank; ING; ERSTE Bank; RAIFFEISEN Bank UNICREDIT; SOCIETE GENERALE; MILLENIUM; HVB;
Financial services
VODAFONE; ORANGE;UPC; OTE; ZAPP;
Telecom
RENAULT TECH.; INFINEON; ALCATEL-LUCENT; FREESCALE; MICROCHIP; ALVARION;
R&D Centers
DHL; TNT; MAERSK; HAPAG; FRANS MAAS;
Logistics
Gedeon-Richter; GlaxoSmithKline; Sandoz; Ranbaxy; Zentiva;
Pharmaceutical

13. Highway Infrastructure Development - 2014
SUPLACU DE
BARCAU
BORS
IASI
MIHAILESTI
PIATRA NEAMT
ORADEA
SABAOANI
BICAZ
CLUJ
TARGU
MURES
ALBITA
SOVATA
GHEORGHIENI
CAMPIA
TURZII
PRAID
NADLAC
SIGHISOARA
ARAD
SEBES
FAGARAS
SIBIU
DEVA
ORASTIE
FOCSANI
BRASOV
TIMISOARA
LUGOJ
PREDEAL
COMARNIC
BUZAU
PLOIESTI
PITESTI
DRAJNA
In use:
1099 km
Under construction
1452 km
Under design and expropriation
850 km
FETESTI
CERNAVODA
BUCURESTI
CONSTANTA
CRAIOVA
GIURGIU
CALAFAT
Source: CNADR

14. Ports and Airports International flights Domestic Flights Under
construction
SATU MARE
BAIA MARE
SUCEAVA
IASI
ORADEA
CLUJ NAPOCA
TARGU MURES
BACAU
ARAD
TIMISOARA
SIBIU
BRASOV
GALATI
BRAILA
SULINA
TULCEA
OTOPENI
DROBETA TR. SEVERIN
BANEASA
M. KOGALNICEANU
CRAIOVA
CONSTANTA
CORABIA
OLTENITA
MANGALIA
GIURGIU

15. Mobile Communication Infrastructure – coverage area -
Deregulated market;
Major international players;
More than 90% network coverage.

16. Foreign Investor Rights
national treatment for foreign investors;
foreign investment allowed in all sectors of economy;
possibility to freely manage the company with full ownership rights;
full repatriation of capital and profits;
protection against expropriation and nationalization;
Access to incentives and funds provided by EU and Romanian legislation;

17. Incentives and subsidies I
FISCAL CODE:
Tax exemption for reinvested profit;
Possibility to use accelerate depreciation of equipments (50% in the first year);
Possibility to carry forward the fiscal losses for a period of up to 7 years;
Exemptions from the payment of taxes on buildings and land applied by local councils in Romania on basis of state aid schemes;
Fiscal incentives for R&D: additional deduction of 20% from the eligible expenses from research and development activities;
Subsidies for hiring and training new personnel.

18. Incentives and subsidies II
STATE AID SCHEMES/INCENTIVES FOR:
investments between EUR mill and creating at least 50 new jobs;
investments between EUR mill and creating at least 100 new jobs
investments between EUR mill and creating at least 200 new jobs;
investments over EUR 30 mill and creating at least 300 new jobs;
investments over EUR 100 mill and 500 new jobs; eligible costs over Euro 50 mill;
investments in green energy - 50% subsidy from the total eligible expenses for all regions in Romania, except Bucharest (40% subsidy); Eligible expenses: investment in tangible assets (land, buildings, new equipments, installations) and intangible assets. Intensity ceilings increase by 20% in case of small enterprises, and by 10% in case of medium sized enterprises (Exception: economic agents activating in the field of transport)

19. Map of Industrial Parks
More than 40 Industrial Parks
Both private & public
Greenfield & Brownfield
Access to utilities
Package of services offered by the park administration
Wide variety of activities to be developed
Some created for high-tech activities

20. Competitive Taxation
Corporate Tax
VAT
Social Contributions
Employee
Employer
Bulgaria
10%
22%
13%
20.5%
Romania
16%
24%
16.5% %
Hungary
19%
25%
17%
32%
Poland
18.71% %
Slovakia
13.4%
35.2%
Czech Rep.
20%
11%
34%
Slovenia
22.1%
16.1%
Source: National IPA’s
Many Central and Eastern European countries increased the VAT in order to cope with economic crisis;
Romania is maintaining the flat corporate tax;

21. EU financial assistance to Romania
Romania could receive up to EUR 33 billion during 2007 – 2013 through EU funding;
Financial support provided by European Regional Economic and Social Cohesion Policy is delivered through 3 main structural instruments and 2 funds dedicated to agriculture and fisheries.

22. Thank you for your attention!