Investment climate in Poland

Valencia, 26th of October 2011

Poland - Key Facts

Area: 312 700 sq km – 6th in European Union

Population: 38,12 million – 6th in European Union

Currency: Polish Zloty (1 Euro ~ 4,3 PLN)

GDP: USD 717,5 billion (PPP, 2009)

GDP per capita: USD 18,800 (PPP, 2010)

GDP growth: 5% (2008), 1,8% (2009), 3,8% (2010) Membership: EU, NATO, OECD, WTO, Schengen Zone

Competitive Advantages

Location & economic fundamentals

strategic location in continental Europe part of trans-European transportation corridor the only country of the EU with positive GDP growth in 2009 38 million consumers

Investment incentives14 Special Economic Zones grants co-financed from the EU (EUR 90 bn)

Labor force young, well-educated work force ca 11% of university students in the EU over 450 universities&higher education schools increasing labour productivity

1000 km radius

250 M people

2000 km radius

550 M people

Poland in World Investment Prospects Survey 2009-2011

The 11th most attractive country for investors

Source:UNCTAD, World Investment Prospects Survey 2009-2011

Poland’s main strengths against global competitors:

• Growth of the market

• Size of the local market

• Access to international regional markets

• Presence of suppliers and partners

• Investment incentives system

Poland – 38 million people

Poland 39

Romania 25

Czech Rep. 5

Hungary 9

Slovakia 2

Source: www.citypopulation.de, www.jobmonkey.com, GUS

Population per 1 sq km by poviats

0 50 100 150 200 250 500 1000 3000 5000

Warszawa

Gdansk

Poznan

Wroclaw

Katowice

Krakow

Lodz

Cities with more than 100,000 inhabitants

0

10

20

30

40

Poland Romania CzechRepublic

Hungary Slovakia

Source: Eurostat 2009

Total population in 2010 (in M)

Source: NBP portal, 2010

Higher education trends

0

5000

10000

15000

20000

25000

30000

35000

40000

Construction Econom ics Law Pedagogy Managem ent

Number of 1st year studentsby group of fields

• Tuition at public schools is free of charge

• Public schools provide best quality of education

• The most popular are studies in economics and management

• Increasing interest in technical studies

• 2,8% secondary school graduates applied for technical studies in 2009 (2,0% in 2008)

• Secondary grade exams include maths

0%

10%

20%

30%

40%

50%

18-24 25-34 35-44 45-54

English German Russian

Foreign language capability by age groups

Source: CBOS Survey 2006

Foreign language capability among students

0%

20%

40%

60%

80%

100%

English German Russian French Spanish

Learning of foreign languages is obligatory in the Polish education system

English is the most popular foreign language in Poland

Source: Randstad, October 2008

Children learn foreign languages from the age of 7

Language proficiency is one of the strongest points for Poland as a Business Services center

Foreign language capabilities - students

I. Government grants through individual negotiationsindividually approved and granted by the Ministry of the Economy based on the Council of Ministers’ Resolution

II. CIT exemption in Special Economic Zoneonly available in Special Economic Zone (SEZ)

III. Cash grants available through EU Fundssubject to negotiation with different managing institutions depending on the investment project key parameters

Forms of state aid in Poland

All above presented instruments can be combined together however the total amount

of state aid cannot exceed the maximum aid intensity

The application for aid has to be submitted before work on the project starts

The beneficiary of aid must provide a financial contribution of at least 25% of the eligible costs

The investment has to be maintained for at least 5 years from the date of its completion (3 years in case of SMEs)

Each newly created job has to be maintained for a period of at least 5 years from the date of its creation (3 years in case of SMEs)

It is not possible to combine cash grant based on national scheme with any other incentive

General rules – regional state aid

Why Poland? Summary

Availability of skilled human resources

Economic and political stability

Effective incentives system including EU-Funds

Strategic location – gateway to EU

Wroclaw AgglomerationDriven by Knowledge

Business opportunities

Valencia, 26th of October 2011

Is this Amsterdam?

…..Prague?

…..Venice?

…or maybe Vienna?

… or Tokyo?

It’s definitely Wrocław!

Wrocław Business Opportunities Agenda

Accessibility & Infrastructure

Knowledge & Sectors of growth

Culture of leisure & high quality of life

Accessibility & Infrastructure

Perfect business location

Wrocław at a glance

Source: Statistical office, data as of June 2011

• 638 000 inhabitants in Wrocław

• 1 000 000 inhabitants in the agglomeration (yellow dot)

• Approx 3 000 000 inhabitants in the region of Lower Silesia (borders with the Czech Republic and Germany)

• Wrocław – the 3rd biggest academic centre in Poland

• R&D – the main specialization of Wrocław according to ABSL report

• 5.1% unemployment rate

• GDP growth 12,5% (2006-2008)

Strong communication links

• New bypass (A8) crosses the A4 motorway (Germany-Ukraine), connects with national road no.8 (Czech Republic-Warsaw) and with national road no.5 to Poznań

• First Polish city incorporated into the European highway system

• Rapid development of Wrocław Airport & Great opportunities for industries

• Well developed road, railway and waterway infrastructure mean lower travel times

Wrocław International Airport2nd biggest Polish airport

• 10 km away from the city centre

• Major European transfer hubs: Warsaw, Munich and Frankfurt

• Wrocław’s new terminal: the capacity of the airport will double by 2015 to 7 millions passengers a year

• New bypass connecting the A4 motorway with the airport

Destination 

Flights per

week Destination

Flights per

week

1. Alicante 2 16. Gdańsk 8

2. Barcelona Girona 2 17. Glasgow 3

3. Bologna 2 18.Heringsdorf/Swinoujście 1

4. Bristol 2 19. Liverpool 1

5. Brussels 2 20. London Luton 5

6. Copenhagen 4 21. London Stansted 9

7. Cork 2 22. Malaga 2

8. Doncaster Sheffield 3 23. Milano/Bergamo 2

9. Dortmund 2 24. Munich 27

10. Dublin 5 25. Oslo Rygge 3

11. Dusseldorf 6 26. Oslo Torp 2

12. East Midlands 4 27. Paris 3

13. Eindhoven 3 28. Rome 3

14. Frankfurt am Main 21 29. Shannon 2

15. Forlí 2 30. Warsaw 35

31. Zurich 2

Wrocław International Airport

Knowledge & Sectors of growth

Polish vibrant academic center

• 143 200 university students enrolled in 30 higher education institutions p.a.

• 32 600 graduates

• 10 Nobel Prize winners

• World-renowned Polish School of Applied Mathematics

• 25,000 students in 49 high schools

• 6,000 high school graduates p.a.

• Great number of computer science graduates

• Great number of economists and engineers

• Wroclaw University of Technology ranked No 1 technical school in Poland

Wrocław Research Centre EIT+

EUR 200 million in innovation-related programs:

• Biotechnology• ICT• Nanotechnology• Climate & Energy

Wrocław Research Centre EIT+ is a unique undertaking in Poland

Pracze Campus – the most significant polish R&D investment in recent years

Name of university Students Graduates

Wrocław University 36 567 8 734

Wrocław University of Technology 32 718 4 565

University of Economics 17 220 2 964

University of Environmental and Life Sciences

10 117 2 503

Medical Academy 5 631 1 140

Main Wrocław Universities

How well do Wrocław inhabitants know foreign languages?

22,3%

6,8%

21,1%

1,5%

1,4%

3,1%

34,8%

25,0%

2,3%

3,5%

7,8%

39,4%

41,3%

48,8%

nie znam żadnego

inne

włoski

hiszpański

francuski

rosyjski

niemiecki

angielski

znajomość rzeczywista znajomość deklarowana

62,9%

(5,6%)

English

German

Russian

Italian

Spanish

French

Other

None

actual knowledge declared knowledge

Are Wrocław students keen on foreign languages?

0,1%

18,1%

44,9%

1,6%

1,4%

6,4%

89,8%

9,9%

7,0%

7,8%

18,9%

26,7%

84,7%

99,7%

nie znam żadnego

inne

włoski

hiszpański

francuski

rosyjski

niemiecki

angielski

znajomość rzeczywista znajomość deklarowana

62,9%

(5,6%)

English

German

Russian

French

Spanish

Italian

Other

None actual knowledge declared knowledge

Strong diversified economyON THE FOREFRONT OF POLISH IT

Nokia Siemens Networks, IBM, Siemens, Microsoft, Volvo IT, Opera

Software, QAD, Tieto, Teta, Capgemini

BUSINESS PROCESS OUTSOURCING CENTRE

HP, Volvo Finance, Google, Credit Suisse, McKinsey, UPS, Mellon Bank

of New York, Irevna, Ernst&Young, Mphasis, UPS

SECOND BIGGEST FINANCIAL CENTRE IN POLAND

Santander Consumer Bank, BZ WBK (Santander), Lukas Bank

and EFL (Credit Agricole), Getin Holding, Eurobank (Societe General),

BWE Bank,

AUTOMOTIVE INDUSTRY

Volvo, Toyota, Bosch, Wabco, PGW, Autoliv

HI-TECH ELECTRONICS

LG LCD, LG Electronics, Toshiba, MSI, Iiyama, ETO Magnetic

WHITEGOODS INDUSTRY

FagorMastercook, Whirlpool, Electrolux, LG Electronics

LIFESCIENCE INDUSTRY

3M, Hasco-Lek, MacoPharma, US Pharmacia, Herbapol

Engineering Centre

ICTCompanies: Volvo IT, Tieto, Opera Software, IBM, Microsoft, Nokia Siemens NetworksStudents: 10330Graduates: 1640

AutomotiveCompanies: Volvo, Wabco, AutolivStudents: 9640Graduates: 870

White GoodsCompanies: Fagor Mastercook, Siemens, Whirlpool, Diehl ControlsStudents: 11120Graduates: 1025

National most valued brands

Source: GoodBrand Social Equity Index ®2009

The most attractive cities for career development

Source: On Board PR, City Brands Report, 2009

„Wrocław – your mood” promotional campaign

• Wrocław offers participation to a unique promo campaign – nationally and internationally

• Wrocław is the national leader in attracting students and talents

• Wrocław is the only city in Poland to have developed a unique, autonomous, customer-oriented, promotional network in Ukraine and other Eastern countries

• The network can serve as a promotion and recruitment vehicle for top talents from beyond Poland

Culture of leisure & high quality of life

Wrocław - The City of Entertainment

• European Capital of Culture 2016

• Wratislavia Cantans – about to be hosted

by the National Music Forum

• Dialog International Theatre Festival

• Nowe Horyzonty International Film

Festival in a number of cinema screens

• The prestigious BBC Golf Competition

• High-profile horse races at Partynice

- it hosts Al Wathba Stud Farm Cup race

• Poland’s largest leisure and swimming

complex

Wrocław – Quality of Life

In recent years EUR 2,5 bln investments to increase quality of life:

• Wrocław’s New Terminal

• Wrocław Motorway Bypass

• Wrocław Municipal Stadium

• The most modern concert hall in Poland

• Wrocław's new Regional Centre for Business Tourism

• Intelligent Transport system to give priority to public transport

Let’s Create a City: Answering the needs of international community

• Four International Schools

• Five Bilingual Middle Schools

Polish - English, French, German,

Spanish

• Five Bilingual High Schools

Polish - English, French, German,

Spanish

• Active International Friends of Wrocław

Club (more than 150 families)

Wrocław Agglomeration – the right place for investment

• Accessible strategic location in the heart of Europe

• Availability of skilled workforce in the city and nearby counties

• Perfect business environment

• Investment support

• High quality of life for expats and local-based employees

Thank You

Wroclaw Agglomeration Development Agency /Agencja Rozwoju Aglomeracji Wrocławskiej

(ARAW)pl. Solny 14, 50-062 Wroclaw, Poland

araw@araw.plwww.araw.pl

www.invest-in-wroclaw.pl

Valencia , 26th of October 2011