1. 1 CONSULATE GENERAL OF ROMANIA Office for Commercial-Economic Promotion ROMANIA Member of the European Union ECONOMIC DEVELOPMENTS AND OPPORTUNITIES IN ROMANIA Gabriel DUTU Chicago, April 14 2010

2. 2 ROMANIA - Area: 238.391 sq. km. - Area: 238.391 sq. km. - Population: 21,700,000 - Population: 21,700,000 - Counties: 41 - Counties: 41 CAPITAL: Bucharest CAPITAL: Bucharest Basic Information

3. 3 Benefits of E.U. Accession Removal of any obstacles in the trade with EU Member States Removal of any obstacles in the trade with EU Member States Common Trade Policy with third countries Common Trade Policy with third countries Harmonization of entire legislation, capital market regulations, taxation, accounting rules => higher transparency and simplification Harmonization of entire legislation, capital market regulations, taxation, accounting rules => higher transparency and simplification Structural funds (31 billion euro for 2007-2013) Structural funds (31 billion euro for 2007-2013) Open gate for EU towards CIS, Asia, Middle East, Northern Africa Open gate for EU towards CIS, Asia, Middle East, Northern Africa Participation in major projects in the Black Sea Extended Area and in the Central & Eastern European Region Participation in major projects in the Black Sea Extended Area and in the Central & Eastern European Region Romania-important role in assuring the energy security for Europe (major transit pipelines, energy production & supply) Romania-important role in assuring the energy security for Europe (major transit pipelines, energy production & supply)

4. FLAT TAX 16% VAT19% DIVIDEND TAX 10% AVERAGE WAGE (2009) 625 USD MINIMUM WAGE 207 USD Competitive Taxation Country Corporate Tax Romania16% Hungary16% Slovakia19% Poland19% Estonia 20 % Slovenia25% Czech Rep. 28%

5. 5 Macroeconomic Performance GDP real growth

6. 6 Macroeconomic Performance Inflation rate

7. 7 Macroeconomic Performance Unemployment rate

8. 8 COUNTRY RATINGS ROMANIA COUNTRY RATINGS ROMANIA Fitch - BBB- (November 2008) Fitch - BBB- (November 2008) Coface- A4 (September 2009) Coface- A4 (September 2009) JCR- BBB (February 2009) JCR- BBB (February 2009) Moody’ s - Baa3 (September 2009) Moody’ s - Baa3 (September 2009) Standard & Poors - BB+ (October 2008) Standard & Poors - BB+ (October 2008)

9. 9 Foreign direct investments - million USD-

10. FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENT Total FDI’s until 31.12.2009: 31.7 billion USD 1. Netherlands - 18.49% 2. Austria - 12.23% 3. Germany - 10.49% 4. France - 8.18% 5. Cyprus - 5.06% 6. Italy - 4.31% 7. U.S.A - 3.34% 8. Spain - 3.23% 9. Great Britain - 3.04% Source: National Trade Register Office No Country of origin Number of companies Share-capital in Romanian companies - mil. USD - 1Netherlands3,4565,863 2Austria5,3753,870 3Germany16,6643,326 4France5,8732,594 5Cyprus4,2551,605 6Italy26,9841,367 7U.S.A.5,7551,059 8Spain3,4511,024 9 Great Britain 2,853963

11. 11 Value of Subscribed Capital by Field of Activity Source: Romanian Agency for Foreign Investment

12. 12 Foreign Investor Advantages foreign investment allowed in all sectors of economy foreign investment allowed in all sectors of economy possibility to freely manage the company with full ownership rights possibility to freely manage the company with full ownership rights full repatriation of capital and profits full repatriation of capital and profits protection against expropriation and nationalization protection against expropriation and nationalization national treatment for foreign investors national treatment for foreign investors

13. 13 FOREIGN TRADE 2001 – 2009 Source: National Institute of Statistics (www.insse.ro)

14. 14 MAIN TRADE PARTNERS Top import partner countries percentage of total import Germany16.36 Italy11.38 Hungary7.39 Russian Federation 5.97 France5.71 Turkey4.92 Austria4.88 Kazakhstan4.58 China4.22 Holland3.73 Poland3.43 Czech Republic 2.50 Belgium1.99 Spain1.96 Great Britain 1.95 Top export partner countries percentage of total export Germany16.50 Italy15.46 France7.38 Turkey6.61 Hungary5.11 Bulgaria4.16 Great Britain 3.29 Holland2.89 Ukraine2.46 Spain2.31 Austria2.27 Poland1.99 Greece1.81 Russian Federation 1.81 U.S.A.1.69

15. 15 FOREIGN TRADE IN 2009 Total volume: 99,299.27 million USD Total volume: 99,299.27 million USD ( 25.2% down to 2008) Export: 42,509.79 million USD (13.9% down to 2008) Export: 42,509.79 million USD (13.9% down to 2008) Import: 56,789.47 million USD (32.1% down to 2008) Import: 56,789.47 million USD (32.1% down to 2008) Romanian – USA Trade: Romanian – USA Trade: Total: 1,415.95 million USD 34% down to 2008 (2,154.9 million USD) Total: 1,415.95 million USD 34% down to 2008 (2,154.9 million USD) Export : 743.5 million USD 33% down to 2008 Export : 743.5 million USD 33% down to 2008 (1,106.7 million USD) (1,106.7 million USD) Import : 671.6 million USD 36% down to 2008 Import : 671.6 million USD 36% down to 2008 (1,048.2 million USD) (1,048.2 million USD)

16. 16 AMERICAN SUCCES STORIES IN ROMANIA: MAIN INVESTORS FORD MOTOR FORD MOTOR GENERAL ELECTRIC GENERAL ELECTRIC ORACLE ORACLE QUALCOMM QUALCOMM MICROSOFT MICROSOFT HONEYWELL INTL. HONEYWELL INTL. PROCTER & GAMBLE PROCTER & GAMBLE COLGATE PALMOLIVE COLGATE PALMOLIVE SMITHFIELD FOODS SMITHFIELD FOODS KRAFT FOODS INTL. KRAFT FOODS INTL. UNITED GLOBAL COM UNITED GLOBAL COM DELPHI DELPHI JOHNSON CONTROLS JOHNSON CONTROLS EMERSON ELECTRIC EMERSON ELECTRIC CITIBANK CITIBANK CAMERON CAMERON

17. 17 Market & Location Advantage : Second largest market in Central and Eastern Europe (over 21 million inhabitants) Easy access to the countries of the former CIS countries, Balkans, the Middle East and Northern Africa Junction of three prospective European transportation corridors nos. 4, 7 & 9 Resource Advantage: Skilled labor force with solid knowledge in technology, IT and engineering Rich natural resources, including fertile agricultural land, oil and gas Important potential for tourism TOP REASONS TO INVEST IN ROMANIA (1)

18. 18 Economic Advantage Sustainable economic growth Functional Market Economy status Competitive tax policy Decreasing inflation Permanent financial assistance for SME's Development Structural funds Improving Infrastructure Advantage Well-developed networks of mobile telecommunications in GSM systems Highly developed industrial infrastructure, including oil and petrochemicals Branch offices and representatives of various well-known international banks Newly developed highway infrastructure Commitment to improve the highway infrastructure to EU standards Extensive maritime and river navigation facilities TOP REASONS TO INVEST IN ROMANIA (2)

19. 19 Potential Sectors for Investment Manufacturing Manufacturing Automotive parts Automotive parts IT & Communication IT & Communication Electric & Electronics Electric & Electronics Wood processing Wood processing  Construction materials  Textile  Food processing  Infrastructure  Outsourcing and logistics

20. 20 CONSULATE GENERAL OF ROMANIA Office for Commercial-Economic Promotion Phone: 312.573.8150 Fax: 312.573.9771 E-mail: economic.office@roconschicago.org economic.office@roconschicago.org Website: www.roconschicago.org www.roconschicago.org THANK YOU !