www.sambaslovakia.sk

1. Foreign Direct Investments
Roman Sabo
Head of Investment Division
9.12.2014
Slovakia

2. SARIO

3. SARIO Investment Promotion Services
I A package of services
 POTENTIAL
 in-depth information about Slovakia
 tailor-made solutions – HR, real estate, legal
 sourcing
 ESTABLISHED
 expansion, local suppliers, relocation, work permits
I Investment incentives consultancy
 industry
 shared services centers
 technology centers
 tourism
I M&A
I Outbound investments consultancy
I Investment promotion events
 in Slovakia
 abroad
Services
Free of Charge

4. Why Slovakia

5. TOP Reasons Why to Invest in Slovakia
I Safe investment environment: political and economic stability
I Central European hub & favourable geographic location with great export potential
I Official currency EURO as one of a few countries in CEE
I Fastest growing Eurozone member within the last 10 years (CAGR)
I 10 Year CEE Leader in DB 2004 – 2013 /World Bank/
I 6 Year CEE Leader in Property Rights Security in 2008 – 2013 /PRA/
I CEE leader in labour productivity and in TOP 10 hard working countries /OECD/
I High adaptability of labour force to different culture management styles
I Low overall Tax Burden
I No 9 worldwide in adapting to new technologies & high innovation potential
I Large selection of industrial land & offices
I Attractive investment incentives

6. Success Stories in Slovakia

7. Great Brands Gather in Slovakia, Medium High-Tech
Medium-High Technology: Manufacturing
Chemistry Electrical
Defence
industry
equipment
Machinery
equipment
Automotive
industry,
supplier
sector
Other
transport
equipment
Medical and
dental
instruments

8. Great Brands Gather in Slovakia, High-Tech
High-Tech Services:
Knowledge Intensive
Creative, movie,
TV industry and
ICT
Scientific
research and
development
(biotech, medical,
engineering etc.)
High-Technology:
Manufacturing
Pharmacy Computer,
Air and
electronic and
optical
products
spacecraft
industry

9. Slovakia: Success Stories from around the World
CANADA
MAGNA SLOVTECA,
KraussMaffei
Technologies,
Martinrea Slovakia
Fluid Systems,
Slomatec
US Steel, Emerson,
DELL EMEA Centre
OMV, Mercedes-
Benz, Schenker,
SPAIN
GERMANY
Erste Group
FRANCE
KOREA
JAPAN
TAIWAN
CHINA
USA
PSA Peugeot
Citroen, Dalkia,
Orange, Bourbon,
CCN, Alcatel R&D
Siemens,
Volkswagen,
T-Systems,
Continental
Aluminiuim Cortizo,
Jobelsa, Cikautxo,
OHL, O2
of Excellence,
Whirlpool, IBM, HP
European IT
Operation Centre,
Johnson Controls
AT&T, Accenture,
Amazon
KIA Motors,
Samsung,
Hyundai Mobis
Panasonic, Sanyo
SIIX, SEWS, Misuzu,
Minebea, Trim
Leader, Brother
Industries, Yazaki,
U-Shin, Makino,
Takenaka, Tamura,
Yamagata, Taisei
AU Optronics,
ESON, Foxconn,
Delta Electronics
Lenovo
UK
SPC International,
KMF, BOXPERFECT,
Amylum, Hi-Tech
Mouldings
ITALY
Magneti Marelli,
Brovedani, SISME,
CAME, ZANINI
SWITZERLAND
Swiss RE, Schindler,
Holcim, Novartis,
Vetropack, Slovaktual,
Franke
Source: SARIO, 2014
AUSTRIA
BRAZIL
Embraco

10. Schifting from production to services
I 52 established
ICT and SSC
I Personnel
over 40 000
 with college/
university
education
 excellent
language skills

11. Key Numbers

12. Investment Projects by Country SARIO 2002-2013
64
44
30
27
22
19 18 17 17 17 16
12 10
Source: SARIO, 2014

13. Investment Projects by Industry SARIO 2002-2013
Textile
5%
Rubber and
Plastic
17%
Metal
Products
21%
Electronics
18%
Automotive
30%
R&D
2%
SSC&CC
7%
Source: SARIO, 2014

14. Investment Incentives

15. Unemployment & Registered Job Seekers
Average level of unemployment in Slovakia reached 14,2 % as of 2013.
ŽILINA REGION
12,51 %
41 376 job seekers
PREŠOV REGION
19,35 %
75 391 job seekers
KOŠICE REGION
17,23 %
63 287 job seekers
BANSKÁ BYSTRICA REGION
18,26 %
60 549 job seekers
TRENČÍN REGION
10,74 %
32 122 job seekers
TRNAVA REGION
NITRA REGION
12,52 %
43 960 job seekers
9,16 %
26 630 job seekers
BRATISLAVA REGION
6,17 %
20 910 job seekers
*Represents only the number of seekers registered at the unemployment office. Please note, that many job
seekers are not registered.
Source: www.upsvar.sk, annual 2013, updated 2014
Total Number of jobseekers:
364 225

16. Eligible Projects
 Industry
 Shared Service Centers
 Technology Centers
 Tourism

17. Basic Features
I Targeted at regions with high unemployment rate
I Final decision: Slovak government
I Administrative body: Ministry of Economy of SR
I Investment intensity up to 35% from eligible costs
I ELIGIBLE COSTS :
 LAND
 BUILDINGS
 NEW MACHINERY & TECHNOLOGY EQUIPMENT
 LICENSES & PATENT RIGHTS
OR
 WAGE COSTS OF NEW EMPLOYEES DURING 2 YEARS
I FORMS:
 INCOME TAX RELIEF up to 10 tax periods
 CASH GRANT (paid ex-post, based on annual costs report)
 CONTRIBUTIONS ON NEW JOBS (paid ex-post, based on annual costs report)
Legal framework: Act no. 561/2007 Coll. on Investment Aid

18. Statistics, 2002 - 2013
139 supported projects
€ 7.16 bn initial eligible investments
47 602 newly created job positions
€ 1.44 bn aid granted
20% average aid intensity
30 000 EUR average aid per 1 newly created job position
47% share of tax relief on total granted aid

19. People - our key asset

20. Slovak Employees:
Perception by Foreign Investors
Country of origin: USA
Field: SSC – DELL Business Centre Bratislava
Veit Dengler, General Manager, 2009
„Among the important factors were the legal system, the state of the economy, the business climate and the
quality of governance. The number one criterion, however, were the people. It was they who had the greatest
impact on our company’s growth. In 2001, we didn’t say we’d be employing 2 000 employees here by 2008. “
Country of origin: SPAIN
Field: Metal Processing Aluminium
Raquel Cortizo Almeida, Supervisory Board, 2012
„Slovak people work very hard, they are modest, value the security and stability with desire to work, improve
themselves and can easily adopt to new working environment.“
Source: SARIO, 2013
Country of origin: BRAZIL
Field: Manufacture of electrical equipment
Luiz Henrique da Silveira, 2013
„Slovak people are highly creative and disciplined.“
Country of origin: GERMANY
Field: Automotive
Dr. Andreas Tostmann, Former CEO Volkswagen Slovakia, 2011
„Slovak employees gained the Lean production & Green Efficiency Award for VW Slovakia
through innovation, excellent performances, application of lean production tools/workshops.“

21. Slovakia:
Slovak Managers Are Best Viewed By Expats
How do senior expatriate managers view
management culture in Slovakia, Czech Republic, Hungary and Poland?
SK
decisions acceptance ✔
flexibility/adaptability ✔
initiative ✔
teamwork ✔
taking responsibility ✔
less bureacracy ✔
company loyalty ✔
cooperation in
✔
working process
deadline acceptance ✔
organized
management
✔
“My organization has a high
population of young managers
who are dedicated and
industrious, ” British Manager
“My manager colleagues are
highly motivated and
educated. My Slovak
colleagues demonstrate a
sharp mind and tend to learn
quickly,” German Manager
Source: TARGET International Executive Search, Henley University of Reading, UK, 2009

22. Slovakia:
Loyal Labourforce
Average number of lost working days due to industrial action 2005 - 2009
132
per 1 000 employees , 2005 - 2009
39
17
24
6
6
7
8
2
0 50 100 150
Slovakia
Hungary
Romania
Poland
Lithuania
Slovenia
United Kingdom
Ireland
France
Source: European Industrial Relations Observatory EIRO as of Sep 2013 (last update 25 Aug 2010)

23. SLOVAKIA 5th best tourist destination by Lonely planet

24. Thank you for your attention
For more information, please contact at:
Slovak Investment and Trade Development Agency
Trnavska cesta 100
821 01 Bratislava
Slovakia
Tel. +421 2 58260 100
Email invest@sario.sk; trade@sario.sk