1. Country Presentation - Poland SICC 2009 Poland and its leadership role in Central / Eastern Europe 19th of March, 2009 Aleksander Jóźwik Justyna Kowalczyk Agata Rundo Tomasz Zacharski

2. Agenda AGENDA 1. Basic Data 2. Contemporary issues Economic Crisis European Football Championships 2012 American Anti-Missile Shield 3. Poland as an attractive Business location

3. Agenda AGENDA 1. Basic Data 2. Contemporary issues Economic Crisis European Football Championships 2012 American Anti-Missile Shield 3. Poland as an attractive Business location

4. POLAND Addresing the common misconception…

5. …about Polar Bears walking on Polish streets. POLAR

6. POLAND Addresing the common misconception… Average Temperature in Poland is about 20 O C Average Temperature in the North Pole is about -20 O C

7. Poland has a slightly greater population than Canada and is the 6 th largest country in the European Union. It’s GDP of ~$550b is comparable to the one of Ontario. Basic information about Poland A very homogenic nation Population: 38m people Size: 300.000 km 2 GDP: $550b Dynamic growth (5,4 %) BASIC DATA SIZE COMPARISON POLAND AND ONTARIO

8. Fun facts about Poland

15. Agenda AGENDA 1. Basic Data 2. Contemporary issues Economic Crisis European Football Championships 2012 American Anti-Missile Shield 3. Poland as an attractive Business location

16. Poland, while experiencing problems with the credit crunch and export breakdown, remains relatively resistant to the effects of the economic crisis POLAND – ECONOMIC OUTLOOK Polish banking system was relatively under- developed at the moment of the credit crunch (banking assets <75% of GDP), which softened the blow during the crisis Poland has a big internal market and enterprises are used to funding investments through equity rather than debt Currently Poland struggles to distinguish itself from the crisis-struck CEE in the eyes of the investors Polish government is determined on tight fiscal policy and providing additional incentives for business After the crisis Poland may well rise as the best standing economy in Central & Eastern Europe. Summary of Poland’s Economic Situation -2,3% -1,8% -4,0% +1,8% +2,7% +1,7% +2,0%

17. Football European Cup 2012 (hosted by Poland and Ukraine) is currently the biggest infrastructure project in CEE, with over 38b EUR to be spent in 2008-2012 Considered one of the most important sport events in Europe – held for the first time in CEE region Generally considered the most ambitious project in Polish post-transition history Total value of the project amounts to b38 EUR, in areas such as: roads, hotels, sport facilities, etc. At the moment Poland is managing to keep up with deadlines for the majority of its projects (still problems with road and aviation infrastructure) Ukraine is currently facing big problems due to economic crisis and political instability  talks of shifting the Euro from Ukraine to Germany Information about the EURO 2012 Football Championships

18. The most delicate political issue in Poland at the moment is the US anti-missile defence system which will be located in Poland and Czech Republic While it was designed to repel the nuclear threats of Iran and North Korea, the system is considered a threat by Russia, which fears it could be used against its strategic nuclear forces – thus threatening the status quo between both countries Recently Russian authorities threatened that they will locate more of their strategic missiles in the Kaliningrad region if Poland and USA will continue their anti-missile shield project While the agreement regarding the placement of the anti-missile system was signed between USA and Poland last year, there are discussions whether the Obama administration will back off from the deal The Anti-Missile Shield Project

19. Agenda AGENDA 1. Basic Data 2. Contemporary issues Economic Crisis European Football Championships 2012 American Anti-Missile Shield 3. Poland as an attractive Business location

20. Poland is still one of the most intended locations of investment projects in Europe. European Attractiveness Survey Source: Ernst & Young, „European Attractiveness Survey” 2005

21. Source: OECD, Employment Outlook 2006 Although Poles are hard-working and determined to succeed... Annual hours of work across the world

22. Source: EIU 2006 Labor cost per hour in 2006 (USD) Average monthly gross wage in EUR Source: Statistical Offices...wages in Poland are still among the lowest in Europe. Wage structure in Poland Labor costs in Poland equal to about one fifth of the Western Europe ones Since 2003 labor costs in Czech Republic are higher than in Poland

23. Wrocław Szczecin Gdańsk Warsaw Kraków Poznań Łódź Olsztyn ≤2 3-4 5-6 7> Gądki Bielsko-Biała Dąbrowa Górnicza Piaseczno According to PAIiIZ information there are 35 BPOs located in Poland. Scope of activities: finance and accounting, HR, logistics, CRM. Total employment: 6,500 people. Examples: NUMBER OF CENTERS Poland has multiple academic and business centers, which assured balanced development of the country Business Process Offshoring

24. There are 40 R&D centers created by foreign investors in Poland. They totaly employ over 4500 people. The biggest SSC belong to and serves: Warsaw: Krakow: Wrocław: Wrocław Szczecin Bydgoszcz Gdańsk Warszawa Kraków Poznań Katowice Kielce Bielsko-Biała Częstochowa Zielona Góra Gorzów Wielkopolski Gliwice Garwolin Radzymin Skawina Bielawa NUMBER OF CENTERS Research & Development Centers Similarly, R&D centers are spread throughout the country, mainly next to main academic and scientific sites

25. Source: Central Statistical Office, AG „Test” 2004 Metallurgy & Metal Average gross wage rate: 570 EUR (average wage for engineers - 820 EUR). Employment: 176 700 persons. Number of foreign companies: 50 Automotive Average gross wage rate: 500 EUR (average wage for engineers – 710- 830 EUR). Employment: 120 000 persons. Number of foreign companies: 300 (Tier 1 + Tier 2). Machinery & Equipment Average gross wage rate: 520 EUR (average wage for engineers - 820 EUR). Employment: 138 600 persons. Number of foreign companies: 36. Electrical Machinery & Apparatus Average gross wage rate: 510 EUR (average wage for engineers - 820 EUR). Employment: 73 000 persons. Number of foreign companies: 39 Key sectors and locations in Poland Even spread of business centers across Poland allowed for the entry of various industry giants

26. GE started operation in Poland in 1992 and have invested since then $400 mln assuring jobs to 6000 emlpoyees Attractiveness CriteriaGeneral Electric Showcase Big domestic market GE Money Bank Talent pool Variety of operations: banking, production, R&D Pricing 3 factories GE Power Control Mobility of workforce Warsaw, Gdansk, Wroclaw, Lodz, Bielsko-Biala Engineering competencies Engineering Design Centre (Warsaw), Project Centre GE Security (Gdansk) General Electric case

27. THANK YOU!