INVESTin LvivThe t ime i s r ight !

We invite partners to join us in the transformation of Lviv to even more successful and prosperous place. And I assure you that your business will develop together with Lviv.

Lviv is open to the world. Lviv is open to you. Invest in Lviv. The time is now.

Andriy Sadovyy Lviv City Mayor

“

LVIV IS AN EXCELLENT, SMARTLY-LOCATED, AWARD-WINNING CITY WITH A PROMISING BUSINESS CLIMATE.

The local community and business ecosystem are very advanced and dynamic, where development is backed by a pro-active local government.

WESTERN UKRAINE'S LARGEST CITY WAS NAMED:

12020 Emerging City at the Global Business Services Awards in Central and Eastern Europe (CEE) Warsaw

10Ranked in the Financial Times fDi Intelligence Global Top 10 "Smart Locations of the Future" for cost-effectiveness

12019 Most Transparent City in Ukraine for investment

EBRD Sustainability Awards 2020

RANKINGS

POPULATION

42 million (70% urban-based)

20 million diaspora worldwide

LANGUAGEUkrainian

TIME ZONEGMT +2 in winterGMT +3 in summer

BIG MAC INDEX

$ 2,38

CLIMATEAverage temperature

in July +24C | in February -3C

#43 FINTECH COUNTRY

RANKINGS INDEX 2020

CURRENCYUkrainian hryvnia/ 1€ = UAH 30 /

#64EASE OF DOING BUSINESS 2020

#20 DEALING WITH

CONSTRUCTION PERMITS

#47GLOBAL INNOVATION

INDEX 2019 (BOIB)

#5

INNOVATION EFFICIENCY

#3 LOWER-MIDDLE

INCOME

UKRAINELviv

2

UKRAINE: KEY FACTS

INFORMATION TECHNOLOGY

• #1 IT engineering force in Central and Eastern Europe (CEE)• IT services are 40% of all exports to US - #1 trade category• 100+ global companies operate software R&D labs in Ukraine• 130,000 engineering graduate annually

AGRIBUSINESS

• 33% of world’s black-soil (“chornozem”) is in Ukraine, considered the most fertile and productive agricultural land• Over 70% of Ukraine is agricultural land estimated at > $100 billion• #1 in sunflower oil exports globally• #5 world’s grain exporter• #4 in corn exports globally

INFRASTRUCTURE

• Railways – 23,000 km (#14 globally)• #7 world’s largest freight transporter• Roadways – 170,000 km (#29 globally)• Airports – 17 international airports• Sea ports – 13 along main coastline of Ukraine • 4 out of 10 principal transport corridors run through Ukraine • Pipelines: Gas 37,000 km, Oil 4,800 km, Refined product 4,400 km

NATURAL RESOURCES

• #1 black soil concentration globally• #2 manganese ores and graphite deposits globally• Top-3 iron ore deposits globally• Local gas production covers 50%+ of domestic needs

3

UKRAINE: KEY FACTS

Chengdu, China 2017

Vilnius, Lithuania 2014

Przemysl, Poland / 2005 Novi Sad, Serbia

Lodz, Poland 2003

Krakow, Poland 1995

Rzeszow, Poland 1993

Freiburg im Breisburg, 1989 Germany

4

UKRAINE: KEY FACTS

With its independent coffee houses and traditional chocolatiers, Lviv looks, smells and tastes like the best of Europe.

CNN

“

Chengdu, China

Vilnius, Lithuania

Przemysl, Poland / Novi Sad, Serbia

Lodz, Poland

Krakow, Poland

Rzeszow, Poland

Freiburg im Breisgau, Germany

Plovdiv, Bulgaria

Tbilisi, Georgia

Banja Luka, Bosnia and Herzogovina / Lublin, Poland

Wroclaw, Poland / Kutaisi, Georgia

Budapest, Hungary

Rochdale, UK

Winnipeg, Canada

20172016

20142013

2005

2004

20032002

19951993

19931992

1989 1973

FOUNDED

1256

POPULATION

758K Lviv city

1M Lviv (agglom.)

2.5M Lviv Region

AREA

182 km2

MEMBERSHIP IN INTERNATIONAL ORGANIZATIONS

SISTER CITIES

5

LVIV: KEY FACTS

COUNTRY COMPARISON FOR CORPORATE TAXATION

Paying Taxes in Ukraine and comparator economies

Source: Doing Business, 2020

Number of Payments of Taxes per Year

Time Taken For Administrative Formalities (Hours)

Total Share of Taxes (% of Profit)

Ukraine GermanyUnited States

Eastern Europe &

Central Asia

5.0

327.5

41.7

17.6

238.0

33.8

10.6

175.0

43.8

9.0

218.0

49.0

EFFECTIVE TAX RATES, %

€ 400gross average salary

VAT 20%Corporate income tax 18%Corporate tax on salary 22%Individual income tax (temporary military tax) 18% + 1.5% Industrial property tax (for large companies) 0%Land tax 1%

6

THE PAYING TAXES

#65 UKRAINE 2020 PAYING TAXES SCORE OF DOING BUSINESS

5% work tax for private entrepreneurs in Ukraine

Details – Paying Taxes in Ukraine | Source: Doing Business, 2020

Payments (number)

Notes on Payments

Time (hours)

Statutory tax rate

Tax base Total tax and con-tribution

rate (% of profit)

1.0

1.0

1.0

1.0

0.0

1.0

online

online

online

online

online and

jointly

online

92.0

36.5

199.0

22%

18%

various rates

various rates

1.5%

20%

gross salaries

taxable profit

land area and

value

ton of

waste

personal income

value added

33.85

10.23

1.10

0.01

0.00

0.00

Tax or mandatory contribution

UNIFIED SOCIAL CONTRIBUTION

CORPORATE INCOME TAX

LAND TAX

ENVIRONMENTAL TAXES

MILITARY CONTRIBUTION

VALUE ADDED TAX (VAT)

7

THE PAYING TAXES

60 KM TO EU

A4 / E40 main road

9 customs border checkpoints

INTERNATIONAL AIRPORT

51 destination

21 airlines

9 departure gates

3000 pax / hour

7 km / 15 min to city center

Source: Danylo Halytskyi International Airport “Lviv”, 2020

Copenhagen

Riga

VilniusMinsk

Kyiv

Gdansk

Olsztyn-MazuryBydgoszcz

PoznanBerlin

Dortmund

Dusseldorf

London STN

London LT

Paris Frankfurt-Hahn

MunichMemmingen

ViennaBudapest

Burgas

Belgrade

Bratislava

Wroclaw

Prague Katowice

Krakow

Warsaw WMI

Warsaw WAW

Milan MXP

Milan BGYBolonga

RomaBarcelona

MadridNaples

Monastir

Tiva

Thessaloniki Istanbul

Dalaman

Heraklion Rhodes

Hurgada

Tel Aviv

Sharm El Shekh

Antalia

Batumi

Venice

LVIV

Baku

8

A GATEWAY TO EU

PASSENGER TRAFFIC, ‘000 pax

AIRLINES OPERATING IN LVIV INTERNATIONAL AIRPORT:

2014

585

2015

571

2016

738

2017 2018 2019

1 107

1 598

2 200

Source: Danylo Halytskyi International Airport “Lviv”, 2019

9

DANYLO HALYTSKYI INTERNATIONAL AIRPORT • LVIV •

10

UKRAINE: KEY FACTSDANYLO HALYTSKYI INTERNATIONAL AIRPORT • LVIV •

11

UKRAINE: KEY FACTS

Back in 2011 Nestle decided another important investment in Lviv - opening the NESTLE Business Service Center. This BSC grow over the years. Now we employ around 1200 people. It is very important to know that our first production site was established in Lviv. Here we have our Svitoch factory which produce chocolate. Another important asset we have in Lviv is our distribution center. This is the state-of-the-art distribution center which is servicing international and local purposes. I believe that we will continue invest in Lviv.

Alessandro Zanelli, CEO Nestle Ukraine and Moldova

“

Total

Economically active

Unemployed

In active job search

Have higher education

POPULATION, ‘000 people

EMPLOYMENTSTRUCTURE

0 100 200 300 400 500

Industry 26%

Unemployed 7%

BPO, Shared services 3%

Construction 8%

IT 8%

Banks, Finance, Legal services 4%

Education 4%

Medicine, Social services 4%

Municipal services 4%

City and state administration 3%

Retail 13%

Commercial services 16%

600 700 800

758

564

41

17

402

Source City Institute, 2019

12

PEOPLE

Source: City Institute, 2019

I – II level of accreditation 21%

Economics 20%

Medical science 7%

Engineering 15%

Law 10%

III – IV level of accreditation 79%

Social science 14%

Natural sciences 11%

IT 7%

Humanities 8%

Architecture, construction and design 6%

114,000 STUDENTS

STUDENTSBY SCIENCE

Other 3%

UNIVERSITIES (III-IV LEVEL OF ACCREDITATION), students

Lviv Polytechnic National University 26,0

Ivan Franko National University of Lviv 20,0

Danylo Halytskyy Lviv National Medical University 6,14

Lviv National Agrarian University 4,20

Lviv State University of Internal Affairs 4,70

Lviv National University of Veterinary Medicine and Biotechnologies 3,40

Ukrainian National Forestry University 3,10

Hetman Petro Sahaidachnyy National Army Academy 2,10

Lviv University of Trade and Economics 2,78

Lviv State University of Physical Culture 2,90

Ukrainian Academy of Printing 2,33

Lviv State Financial Academy 2,50

Lviv State University of Life Safety 2,21

Ukrainian Catholic University 1,73

Lviv National Academy of Arts 1,10

10 other small universities 63,0

Total 114,0

13

EDUCATION

14

UKRAINE: KEY FACTS

Lviv and Lviv region by itself with qualified human capital, favourable location and well developed infrastructure have a big potential to grow. This is the place where foreign investors will get full support of the authorities to establish and built new companies.

Jorge Garcia, Corporate Vice President, Fujikura Automotive Europe

“ STRUCTURE OF FOREIGN DIRECT INVESTMENTS BY COUNTRIES (equity capital) IN THE ECONOMY OF LVIV ON 31.12.2018, %

PERCENTAGE OF FOREIGN DIRECT INVESTMENT BY COUNTRY (equity) INTO THE ECONOMY OF LVIV AS AT 31.12.2019, %

Po

lan

d

Net

her

lan

ds

Cyp

rus

Swit

zerl

and

Hu

ng

ary

Vir

gin

isla

nd

s

Au

stri

a

Oth

ers

LVIV

Virgin islands

Netherlands

Switzerland

Cyprus

Austria Hungary

Poland

Industry

Real estate operations

Finance and insurance activities

Administrative and support service activities

Wholesale and retail trade

Professional, scientific and technical activities

Agriculture, forestry and fish industry

Other services

56%

10%

8%

8%

4%

4%

3%

6%

23% 21% 19%

7%4%

3%

3%

20%

15

BUSINESS

20

0

40

60

80

100

120

INVESTMENTS IN LVIV

$ 250+ Mforeign direct investmentsin the economy of the city

9%+Average yearly growthof capital investments

in the economy of the city

671 %

Source: Main Department of Statistics of Lviv region, 2019

2018

2018

108

2015

14

2016

32

12

2017

2017

84

13.1

Foreign direct investment, M $

Capital Investments amount, Bln UAH

16

BUSINESS

INTERNATIONAL PRESENCE (industrial production & manufacturing)

FINANCIAL INSTITUTIONS INTERNATIONAL PRESENCE:

UTILITIES, (on April 2020) Electricity € 83.95/MW-hNatural gas € 0.19/m3

Water & sewerage € 0.35/m3 / € 0.19/m3

Food processing 39%

Metal & chemical products 4%

Mechanical engineering 14%Plastics 13%

Pharmacy 12%

Clothing & footwear 10%

Wood & paper 8%

INDUSTRIALPRODUCTION

Source: Lviv Investment Office, 2019

17

COST-EFFECTIVE LOCATION

18

UKRAINE: KEY FACTSRING UKRAINE POWERED BY AMAZON

350+ IT companies in Lviv

$ 919M economy effect of tech industry in Lviv

25 000+ IT specialists

56% software engineers

99.6% speak English

5000 IT specialists graduate annually

20% predicted annual growth of IT industry

4000+ participants in IT Arena annual event

Source: Lviv IT Cluster, 2019

COMPANIES FROM THE GLOBAL OUTSOURCING 100 PRESENT IN LVIV:

info@itcluster.lviv.ua 0 800 300 331 www.itcluster.lviv.ua

*HQ in Lviv

* *

19

IT INDUSTRY

20

UKRAINE: KEY FACTS

≈2500 EMPLOYEES

INTERNATIONAL PRESENCE:

• legal services

• accounting sales

• finance

• HR

• procurement

• consulting

• audit

• advisory

• call centers

• data analysis

• technical support

• project management

VACANCY AVG. NET SALARIES

Call center employee $ 588

Customer relations specialist $ 490

Accountant $ 385

Financial analyst $ 470

IT Administrator $ 1000

QA $ 1350

IT Developer $ 2000

Source: Deloitte, 2019

21

BPO & SS POTENTIAL

IT CLUSTER

50+ companies 6 Universities

PUBLISHING AND PRINTING CLUSTER

13 publishing enterprises 1 University

LVIV CLUSTER OF EDUCATION DEVELOPMENT AND CREATIVITY

10 founders 10 members of Advisory Board11 cluster members

LVIV MEDICAL TOURISM CLUSTER 10 private clinics

BIOTECH&PHARMA CLUSTER 18 cluster members

WEST UKRAINIAN FASHION INDUSTRY CLUSTER 32 light industry enterprises 2 educational institutions1 school of innovative tailoring skills “List”

22

DISCOVER. ACT. CONNECT.

NUMBER OF TOURISTS, million people

2013

1.3

2014

1.7

2015

1.7

2018

2.2

2017

2.6

2019

2.5

2016

2.6

Ukrainians 36%

Visiting relatives 11%

Business 11%Other 5%

Overseas Visitors 64%

Leisure, vacations 73%

PURPOSEOF

VISIT

ORIGIN

Source: Lviv Tourism Office, 2019

3.8 days average length of stay

€ 94 1 tourist spends per day

23

TOURISM

LVIV CONFERENCE FACILITIES

TOTAL DELEGATES IN 2019

291, 144

HOTELS

hotels with conference facilities Sonata Hotel 450 *

academic venuesLviv Polytechnic National University – 800*

unique venuesLviv Opera and Ballet Theatre – 1, 000*

conference hallsArena Lviv Stadium – 1, 200*

*Biggest capacity, theatre seating

41

9

10

12

Hotels with Conference Facilities 41Other hotels 81Total no. of rooms 3, 866No. of beds 7, 824

812CONFERENCES

IN LVIV 2019

236 National

423 Local

153 International

24

CONFERENCING

TOP 10 CONFERENCES IN LVIV IN 2020

28-30 May Lviv media Forum 20201-4 June OMEE International Conference on Oxide Materials for Electronic Engineering 20203-5 June International Blackcurrant Conference 202026 June Lviv IT Jazz Conference 202010-15 July 28th International Congress of Individual Psychology 2020 July 35th Annual Meeting of the European Forum of Medical Associations (EFMA) 13 September Lviv EcoForum «Water and Energy» 2020 16-20 September Book Forum 202017-20 September 11th Conference on Medical Chemistry 20202-4 October IT Arena 202010-11 October E-governance Forum 451E28-30 October 17th International Dental Forum and Exhibition 2020

SPHERE 147 medicine144 service136 economy and business84 science

76 IT54 education20 culture151 other

Source: Lviv Convention Bureau, 2019

Science 18%

Other 15%

IT 14%

Economy & Business 13%

Education 7%

Culture & Art 4%

Safety 4%

Services 4%

Law 3%

Industry 3%

Environment 3%

Medicine 12%

CONFERENCE SUBJECT

lvivconvention.com.ua

25

CONFERENCING

26

UKRAINE: KEY FACTS

We can recommend Lviv as a solid base to start when aiming to invest in Ukraine. A long breathe, patience, relationships, accessibility to (debt) financing as well as the capacity to amend plans are though key ingredients for anyone aiming to operate in Ukraine.

Gawein Minks, Director, Multi Ukraine

“METROPOLITAN ANDREY SHEPTYTSKY CENTER

27

UKRAINE: KEY FACTS

CONGRESS CENTER

3+ PROJECTS IN REAL ESTATE

• 8 ha land plot• 27, 000 m2 planned area• 3, 500 attendees capacity• Located near Arena Lviv stadium

28

WHERE TO INVEST?

UNDERGROUND PARKING PROJECTS

Underground parking on DVIRTSEVA SQ.

• 1.036 ha land plot• 12 000 m2 parking area• 2 floors• 400 parking spaces • total cost ≈ 12,9M USD• parking fee ≈ 1.6 USD hour (1 USD)• March 1, 2019 – started Dvirtseva sq. rehabilitation

Underground parking on PETRUSHEVYCHA SQ.

• 0.8 ha land plot• 8 332 m2 building area• 2 500 m2 area of landscaping• 12 000 m2 parking area• 2 floors• 350 parking spaces• total cost - 10,5M USD• parking fee – 1 USD per hour (1 USD)• City Council will close nearby streets for car parking• Includes Petrushevycha Sq. rehabilitation

Dvirtseva Sq.

Petrushevycha Sq.

29

WHERE TO INVEST?

CTP INDUSTRIAL PARK LVIV

• A-Class manufacturing and logistics facilities • 24 ha land plot • 100,000+ m2 Gross Leasable Area • Located on the A4 Highway on the outskirts of Lviv

• www.ctp.eu

30

INDUSTRIAL PARK ZONES

ANY CHOSEN PIECE OF LAND FROM INDUSTRIAL ZONE CAN BE SEPARATED. Acquisition:• Purchase via auction• Long-term lease / 30 years lease as industrial park

92 HA – SYHNIVKA INDUSTRIAL ZONE• 5 km / 12 min to ring road / A4 / E40 main road• 8 km / 20 min to airport• 8 km / 22 min to main train station / 20 - 500 m to railway

37 HA – RYASNE-2 INDUSTRIAL ZONE• 2.5 km / 5 min to ring road / A4 / E40 main road• 15 km / 27 min to airport• 10 km / 36 min to main train station / 200 - 1000 m to railway

M10

M11 E40 < Ring road | City center >

Pivnichna St.

Koniushynna St.

Danyly Apostola St.

SYHNIVKA

M10

M10

RYASNE-2

Shevchenka St.

Avtobudivel'nykiv Passage

Tsentral'nyj Passage

31

INDUSTRIAL ZONES

TAXES AND FEES

Property tax for industrial buildings

Investment contribution for infrastructure development

Land lease fee

STANDARD TAXATION

€ 0.89 – € 1.46 / m2

Up to 10% of estimated cost of construction

3% of normative monetary valuation

AFTER INDUSTRIAL ZONE TAX RELIEF

ZERO

ZERO

60% reduction

INCENTIVES

Main railway station

City center

Airport

Bus stationRing road / A4 / E40 main road

SYHNIVKAINDUSTRIAL ZONE

RYASNE-2INDUSTRIAL ZONE

32

INDUSTRIAL ZONES

AFTER INDUSTRIAL ZONE TAX RELIEF

ZERO

ZERO

60% reduction

SOLID WASTE MANAGEMENT PROJECT

URBAN PUBLIC TRANSPORT PROJECTS

• Construction of MBT Plant • € 100M+ investment from EBRD, EIB and Lviv Municipality

Project Manager:Lviv Municipal Company •GREEN CITY• +380 322 97 55 70zelene.misto@lvivcity.gov.ua

Implemented:• 7 new and 35 used trams (EBRD funding)• Construction of new tramline (EBRD funding)• 150 new buses in 2018 (leasing financing)

In progress:• Automatic fare collection system (EBRD funding)• 50 new trolleybuses (EBRD funding)• 10 new trams (EIB funding)• 100 new buses (EIB funding)• 100 trolley buses with autonomous motion (IFC funding)

33

MAJOR INFRASTRUCTURE PROJECTS

IMPLEMENTED

Project

Tram rolling stock Modernization

Street reconstruction with tram lines (trams 2 and 6)

Tramline to Sykhiv district

IFO

EBRD

Lviv City Council

EBRD

Lviv City Council

EBRD

BMU

Lviv City Council

Amount Financed, € M

13,9

2,5

27,1

5,9

12

6,2

7,7

Total, € M

16.4

33

25.9

TOTAL FUNDS 75.3

34

PARTNERSHIP WITH IFOs

Project

Wastewater treatment & biogas production

Heating modernization

E-ticket

Waste management

Trolleybuses and infrastructure

Urban Public Transport

Road Safety

Trolleybuses with autonomous motion

PROJECTS IN PROGRESS

Total, € M

31.5

33

11.2

41.75

22

40

IFO

EBRDE5PNEFCOLviv City Council

EBRDE5P Lviv City Council

EBRDLviv City Council

EBRDE5PLviv City Council

EBRDLviv City Council

EIB

EIB

IFC

37,8

32

Credit rating B/Positive

Amount Financed, € M

157,554

20103

101,2

25106.75

254,5

40

37,8

32

TOTAL FUNDS 249,25

35

PARTNERSHIP WITH IFOs

INNOVATION DISTRICT IT PARK

The project occupies the land plot of nearly 10 ha, and represents one of the largest and most important urban developments in the city in the next 5 to 10 years.

DEVELOPER - GALEREJA CENTRE LTD.www.galereja.com.ua

Stage 1

Six blocks of 8-storey office buildings 72 000 sq m GLA space A, B, C

office tower D 28 000 sq m GLA space

Technological laboratories F 2 000 sq m

Mall with supermarket, 10 000 sq m GBAfood court, fitness area, entertainment zone, supporting services FConference facilities

Internal and external parking 2000 + parking lots

Open green areas for sports and leisure 20 000 sq m

58 000 sq m office premises signed!

Construction period for Stage 1: 24 months

Stage 2 and Stage 3

Set of office buildings different high Up to 150000 sq mwith retail on the ground floors GLA space

36

OFFICE PROPERTY MARKET

37

OFFICE PROPERTY MARKET

LVIV.TECH.CITY

• Three class-A office buildings and a multi-family residential complex positioned in a business class with diversified amenity facilities.

• The Project’s site – 4.7 ha• Total area (GBA) 55 000 sq. m

235,000 m² total stock

(GLA)

1,8 % vacancy rate

$ 12 - 19 rent (excluding

VAT and utilities)Source: Deloitte, 2019

320 000 m2 OF A-CLASS OFFICES TO BE COMMISSIONED BEFORE 2022

• Lease area (GLA) 27 000 sq. m• Number of working stations – 3500• Underground parking. For 350 cars• Fitness centre,• Modern Café with a catering function

Developer – UDP www.udp.ua

38

OFFICE PROPERTY MARKET

CONTACT US:

SUPPORTS

• investment activities locally and clears any investment process bottlenecks

SEARCHES

• investment targets

PROVIDES

• information on business climate, investment opportunities, human capital availability, local costs and taxes structure

IDENTIFIES

• potential investment projects and investment opportunities on demand

ARRANGES

• bilateral business meetings and study visits

1 Rynok Square, office 31779008 Lviv, Ukraine+380 322 54 60 06

invest@lvivcity.gov.uainvestinlviv.com

European Business Association

3 Myhaila Verbytskoho, office 2Lviv 79013, Ukraine+380 322 61 40 67

lviv@eba.com.ua

39

LVIV INVESTMENT OFFICE

NOTES

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