Investment support

systems – Poland and

European Union

Paul van KooperenManaging Partner PNO CEE

14th June 2012

About us in Central Europe

2

public funding and investment landing solutions

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• Solutions from Baltics to Balkans

• 10 offices in 7 countries,

• 80 professionals

• 30 year experience in EU/10 years in CEE

• over 1.000 clients

• independent positioning

We are proud to serve ……………..

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our international clients

Research & Development

Strategic Investments – green fields

Access to networks

Corporate Social Responsibility

Investment financing

Government Relations

Management

Areas of interest

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The European Union

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• 27 countries (member states)

• 1 legal framework

• 1 framework on state aid (grants &

incentives)

• Each member state can set its own

FDI-support policy within the legal

framework

• Within the EU free movements of

goods and people

• Currency union (Euro) in the largest

part of the economy

Poland

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• +4.3 % GDP growth in 2011: best in

EU

• Strongly improved legal framework

• Generous+accessible FDI-support

policy

• Well educated and eager work force

• Good (technical) education

infrastructure

• Cities: good quality of life

Energy

1Theme Governmental policy Ambitions company

Energy savingsDurable economyDecrease of congestion(CAPEX and OPEX)

Efficiency improvementOperational best-in-classMore production with less

energyGreen energy/bio basedSmart logistic concepts

3

Environment

2Decreasing environmental

pressureReduction of emission to air,

soil, water, sound(CAPEX and OPEX)

Durable product development (cradle-to-cradle)

Corporate Social Responsibility

Public funding areas

Europe as most competitive economy

Stimulating technological innovation and world class production

(R&D expend & CAPEX)

Claim position as segment leaderAccelerate time-to-marketCompetitive product offeringInnovation&Wo

rld class prod

4

Labour & education

Increasing employability of low qualified people

(OPEX)

UpgradingProfessionalcapabilitiesof employees

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Public funding areas

Have a look at the hand-outs available to you

FDI trajectory

9

Opportunity/urgency

Orientation/ Business planning

DecisionInvestmentpreparation

Investment realization

Investigate businessopportunities Initial awareness:• Location choiceGrants/ incentives

Prepare for aSafe Landing of your investment

GO/NO GO 360 finance arrangementLocationpermitsPeople

Financing & Transactions process

Realisation process grants / incentives

Landing the investment: location, legal, tax; accounting; payrolling; sourcing

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Strategic production/R&D location Poland

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Profile:

• Austrian investor; +1000 staff; global producer• Global sales• Development and production of construction materials• Large construction projects

Investment project:

• Green field operation for production and R&D• Wage advantage (2/3 of W Europe)• Investment in a growth region including Russia, Ukraine• Close to big W European markets

Strategic production/R&D location

Poland

Challenge:• to apply for the grant before any constructions starts (time spent waiting for an application call)• regional business restructuring to maximise granting opportunities• to comply with grantor requirements, especially on suppliers and contractors selection

Result: • €7,2 mln cash granted (40% of the capex)• project realised between June 2009 and Sep 2011• effective cash received from the grantor €7,05 mln

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Strategic expansion production location West Poland

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Profile:

• Dutch investor; multinational, bakery products;• In Poland distribution company • 1st phase Eur 15 Mln in production lines• Biggest market: Germany; Poland expansion market

Investment:

• Greenfield production location• Wage advantage (2/3 of W Europe)• Investment in a large growth market• Close to biggest W European market

Strategic expansion production

location West PolandChallenge:• Find a suitable location in a short time frame• close as possible to its biggest market• close to motorway infra• availability of qualified work force• optimal incentive package

Result:

• Location selection within 2 months• Matching tax incentive package within 3 months• 50% Tax Benefit on a €15 Mln investment+ option for a 50% expansion.

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Summary: why Poland

• Excellent entry into Europe

• Well educated, skilled and hard working

• Competitive FDI grants & incentives for

production, R&D and service centers

• Part of the world’s largest internal market

• Strong performing internal market

• Low Corporate Income tax: 19%

• Consistently climbing the ranks of Transparency

International (now 5.5)

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PNO Central and Eastern EuropePoland: PNO Consultants Sp.zo.o

Ul. Ostrobramska 75 C 04-175 Warsaw

Paul van Kooperen, Managing Partner

Mobile: +31(6) 31 975 642

Skype: paul.van.kooperen

E-Mail: paul.vankooperen@pnocee.com

www.pnocee.com

www.greenmulberry.com

15© PNO CEE 2012