1. Slovakia – Best Bet for Your Business
Slovak - Portugese Business Forum
Bratislava, 8 July 2009

2. great export potential
COUNTRY PROFILE
Strategic location with
great export potential
MARKET OF
300 MILLION
IN 1000KM
Area (km2): 49,035
Population: 5,379,000
Capital: Bratislava
Member of OECD, WTO, NATO, EU, Schengen border-free area, Euro currency zone

3. MACROECONOMIC OVERVIEW
Basic macroeconomic indicators 2008
Real GDP growth ,4%
Labour productivity growth 5,8 %
Real wages growth 3,3%
HICP Inflation 3,9 %
Unemployment ,6%
Average monthly salary (EUR) 723
6,8
10,4%
4,3
Growing 2007
real wages
productivity
GDP
Sovereign credit rating (Long-term Foreign Currency Debt)
A1 positive outlook
A+ stable outlook
A positive outlook

4. CURRENCY EXCHANGE-RATE DEVELOPMENT€
CURRENCY EXCHANGE-RATE DEVELOPMENT
SLOVAKIA JOINED THE EURO ZONE
1st JANUARY 2009
THE EXCHANGE RATE FOR CONVERSION SET AT
30,126 SKK/EUR
EURO IMPLEMENTATION IMPACT:
Limitation of Foreign Exchange Risk
Lowering Transaction Costs
Growth in Foreign Trade
Increase financial stability

5. STABILITY IN THE CRISIS
Source: European Central Bank, 2008

6. 19% Flat Tax Rate 19% 0% PAYING TAXES - Simple and Fair
Corporae & Personal Income Tax
Value Added Tax
Dividend tax
Inheritance and Gift Tax
Real Estate Transfer Tax
Repatriation of profits: %
19% 0%

7. Source: Statistical Office of the Slovak Republic, 2009
LABOUR MARKET
Weekly working time 40 hrs (excluding 30 min. break)
+ 8 hrs overtime per week
3 months probation period
150 of overtime per year can be ordered hrs agreed with employee
No obligation to pay bonuses (25%) for 150 hrs of overtime per year
Minimum salary: 296 EUR / month (2008)
Average salary : 723 EUR / month (2008)
Annual leave of 20 days (25 days after 15 years of employment)
Bonuses for overtime (25%) and for working on bank holidays (50%)
Source: Statistical Office of the Slovak Republic, 2009

8. Methodology (conditions included)
DOING BUSINESS 2009
1st rank indicates the easiest conditions for doing business
Methodology (conditions included)
Starting a business
Employing workers
Paying taxes
Enforcing contracts
Protecting investors
Closing business....
Source: World Bank Group – Doing Business Report 2008

9. FDI is growing steadily
Source: Slovak National Bank , 2007 9

10. WAGES and SOCIAL CONTRIBUTIONS
Minimum monthly wage Slovakia
269 EUR / month (2008)
Average monthly salary Slovakia
723 EUR / month (average 2008)
Soc. security covered by employer
35,2 %
Soc. security covered by employee
13,4 %
Excl. social security contributions covered by employer
Slovakia
723 EUR
843 EUR
Poland
Czech rep.
942 EUR
Source: Statistical Office of Slovak Republic, ČSOB bank
792 EUR
Hungary

11. NETWORK OF UNIVERSITIES
East Slovakia
university region
West Slovakia
university region
Central Slovakia
university region
Study branch in % (2007/08):
Technical sciences 28,54%
Natural sciences: 6,22%
Medical and farmaceutical sciences: 6,77%
Bratislava
university region
Number of universities: 33
Total Number of Students in 08/09:
Graduates in 08/09:

12. ROAD NETWORK and INDUSTRIAL PARKS
PLAN 2012
to connect Bratislava and Kośice
Large selection of available land
in more then 50 industrial parks

13. AIRPORT INFRASTRUCTURE
Žilina
Prague
Poprad
Bratislava
London
Bologna
Basel
Košice
Vienna
Prague
Bratislava
Manchester
Poprad
Piešťany
Sliač
Bratislava
Vienna (A)
All major European cities
All major European & World cities
Note: Flight destinations as of January 2009

14. AUTOMOTIVE SECTOR IN SLOVAKIA
1991 – 2000: MIL. EUR
Planned: cars/year
Volkswagen
2003 – 2009: MIL. EUR
Planned: cars/year
2004 – 2009: MIL. EUR
Planned: cars/year 14

15. SLOVAK SUCCESS
K1 ATTACK 15

16. Expansion of activities
ELECTRONIC SECTOR IN SLOVAKIA
Expansion of capacity
Assembly of Bravia models for the European market to be doubled in 2008 to 4mil.
Expansion of activities
Production of LCD 10 mil pcs.
Assembly of LCD
Logistic center
Europe service center

17. Research and Development in SR
Slovak R&D network of domestic and foreign companies
Žilina region
Poprad region
Michalovce region
The main R&D locations in Slovakia are:
Košice region
Košice region
Banská Bystrica
region
Bratislava region
Source: Statistical Office of the Slovak Republic

18. State aid: eligible projects
Technological Centres
Industry
Shared Services Centres
Tourism

19. Minumum investment amount
Industry –
Tourism

20. Other conditions Industry: Technological centres:
Procurement of machinery / technological equipment in the amount of at least 40% of the total eligible costs
At least 50% of the minimum amount of investment to be covered by own equity
Compliance with the environmental protection rules
Technological centres:
At least 50% of the minimum investment amount to be covered by own equity
University education – at least 60% of the employees
Shared service centres:
University education – at least 30% of the employees
Tourism:
Procurement of machinery / technological equipment in the amount of at least 20% of the total eligible costs

21. Regional aid intensity
Regional aid intensity is calculated as a percentage of the eligible costs:

22. SLOVAKIA - Top reasons to remember
1. Central European hub and favourable geographic location
2. Political & economic stability, the highest economic growth
in the region
3. 19% flat tax rate and 0% dividend tax
4. Availability of highly skilled workforce
5. Low labour costs vs. high labour productivity
6. Euro as an official currency from 2009
7. Large selection of industrial land and offices available
for purchase/lease
8. Harmonised investment incentives
9. Infrastructure that is growing steadily
10. High innovation potential for R&D projects

23. SUCCESS STORIES – Hi-Tech, R&D

24. FOREIGN TRADE SLOVAKIA - PORTUGAL
mil. EUR
2004
2005
2006
2007
2008
Export SR
48,7
44,5
62,3
141,6
170,9
Import SR
47,6
51,2
85,6
85,0
80,5
Turnover
96,2
95,7
147,9
226,6
251,4
Balance
- 1,1
- 6,7
- 23,3
56,6
90,3

25. FOREIGN TRADE SLOVAKIA - PORTUGAL
Statistics of the year 2008:
Export commodities to Portugal
Total value 170,9 mil. €
Electric machinery, TV-sets
Motor cars and motor vehicles
Iron and steel
Machinery and equipment
Wood and wooden products
Artificial fibres
Products from iron and steel
Products from basic metals
Shoes
Plastics and plastic products
Import commodities from Portugal
Total value 80,5 mil. €
Electric machinery, TV-sets
Motor cars and motor vehicles
Plastics and plastic products
Products from basic metals
India rubber and products
Shoes
Machinery and equipment
Raw leather
Pharmaceutical products
Textile

26. SARIO - WHO WE ARE? Slovak Investment and Trade Development Agency
is a government funded organisation under the direction of the Slovak Ministry of Economy.
SARIO´s primary objective is:
to improve the standard of living of Slovak citizens
to increase the employment rate
- to reduce regional disparities

27. Thank you for your attention
Slovak Investment & Trade Development Agency Contact Information: Alexander Škurla Assigned Head of International Cooperation Department
Section of Foreign Trade tel.: cell: