National Chammber of Commerce

1. Investment climate in Poland
Polish Information and Foreign Investment Agency
Warsaw, 18th of March 2014

2. Strategic location
Key Facts
Official name Republic of Poland
Official
language
Polish
Capital Warsaw
Area 312 700 sq km
Population 38,5 million
Currency
Polish Złoty
1 USD ~ 3.1 PLN,
1 EUR ~ 4.2 PLN
Time zone
UTC +1 (Winter)
UTC +2 (Summer)

3. Economic and political stability
• Strategic location - gateway to the EU
• Ruling party (Civic Platform) has been re-elected for a consecutive term
• High position in the Corruption Perceptions Index 2013- 38th place
• Membership: EU, NATO, OECD, WTO, IMF, Schengen Zone
• Poland is knocking at G20 door
• 6th largest country in the EU
• FDI stock: 173 bn EUR as of 2012
• Dynamically growing domestic market

4. Effective investment incentives
• CIT exemption in Special Economic Zone
• CIT relief for acquisition of new technology
• Real estate tax exemption
• Government grants
• Cash grants available through EU Funds
Tax breaks
Cash
grants
EU
Funds
• 2014 – 2020 financial perspective

5. Human resources
- almost 2.0 mn students (2012/2013)
- 485thous. graduates in 2012/2013
- >90% of students speak foreign languages
- over 24 thous. foreign students
- 17% of population with higher education:
- 453 higher education institutions
- 19 universities, 25 technical universities,
76 academies of economics
- 200 different majors taught
- growing number of science students
City Students Graduates
Warszawa 258 890 65 590
Krakow 184 493 47 271
Wroclaw 145 621 47 277
Poznan 140 472 36 224
Lodz 122 480 35 248
Katowice agglom. 95 417 25 878
Tricity 95 289 23 005
No. of students in main academic hubs (in thous)
201 >
151 – 200
101 – 150
51 – 100
50 <
POZNAN
WROCLAW
WARSZAWA
KRAKOW
LODZ
SZCZECIN
TRI-CITY
KATOWICE
BYDGOSZCZ/TORUN
BIALYSTOK
OLSZTYN
OPOLE
KIELCE
LUBLIN
RZESZOW
ZIELONA GORA
Source: Central Statistical Office, 2013

6. International recognition
14th place as the most attractive FDI destination
2nd most attractive country for FDI in the next 3 years
3rd place worldwide as the best quality location for
manufacturing projects
2nd location in Eastern Europe and Russia offering the greatest
revenue opportunities over next three years
Poland classified as a mature outsourcing location
3rd best location in the world after India and China, for
outsourcing businesses in financial, accounting, advisory
6th among top 10 destination countries in Europe in 2012

7. FDI flows
RUSSIA
TURKEY
-18%
-1%
+5%
IRELAND
-21%
UK
GERMANY
-8%
-47%
NETHERLANDS
-22%
POLAND
ROMANIA
-23%
FRANCE
-12%
SPAIN
+5%
TOP 10 DESTINATIONS
COUNTRIES IN EUROPE IN 2012
Country Number of projects
UK 812
Germany 410
Spain 278
Russia 265
France 244
Poland 237
Ireland 147
Netherlands 145
Romania 138
Turkey 133
Other 1 082
Total 3 891
Source: The FDI Report 2013

8. FDI inflow to Poland – Feb 2014
Main sectors of FDI inflow in Feb. 2014
Sector Number
Value
(EUR mn)
Employment
BPO 39 30.15 8410
automotive 34 1313.25 9049
aviation 10 141.5 1190
R&D 14 21.5 1236
electronic 8 74.7 3621
FDI by countries of origin in February 2014 No. of projects by country of origin in Feb. 2014
Country Number Value (EUR mn)
USA 48 931.15
Germany 28 582.85
Japan 12 117.8
UK 11 38.3
China 9 128
France 9 123.2
Republic of Korea 7 442
% share of main sectors of FDI
BPO
37%
automotive
32%
aviation
10%
R&D
13%
electronic
8%
USA
39%
Germany
22%
Japan
10%
UK
9%
China
7%
France
7%
Republic of
Korea
6%

9. Services and manufacturing hubs
Wrocław
Electronics
Automotive
Household appliances

10. Services and manufacturing hubs
Wrocław
Aerospace
Business Services
Research & Development

11. Business services
• Increasing complexity of processes
• Knowledge-based economy
• Steady growth of service-type projects in PAIiIZ portfolio
• Deep talent pool – 2 mn students, ca 500 000 graduates
• Cost-effectiveness
• Political & economic stability
• Well-developed infrastructure & accessibility
• 7 major cities with many service centers
• 110 000 employees in SSC/BPO/ITO centers
(50% of increase comparing to 2010)
• 125 000 FTE’s till the end of 2014
• More than 400 centers, service available in +37
languages covering Europe, Asia & both Americas
Prime
movers
Result
Trends

12. Polish companies on the rise!

13. Poland – an export powerhouse!
Source: Ministry of Economy 2014
152.8 bn
EURO
Polish exports in 2013
+6.5 % growth compared to 2012
Dynamic
growth
UAE: +66.5%
USA: +20.6%
China: +17.4%
Republic of Korea: +32.6%
„GO TO”
sectors
Food processing +11.5%
Chemical products +8.2%
Electromachines +6.9%

14. Polish foreign investments
ICT
Natural resources
Furniture
Logistics
Automotive industry
Food processing
Building materials
43 bn
EURO
Mergers&
Acquisitions
Greenfield
investments

15. Polish companies – global recognition
Examples
Inglot
Operations in ca. 50
countries.
Asseco Foreign employment:
+10 000
Oknoplast
Top 5 global windows
producer
Sponsor: Inter Mediolan
KGHM
Chile: 3 bn USD investment
PESA Global sales
InPost
Logistic solutions in
+ 14 countries

16. New business directions - Africa
September 2013:
URSUS signs deal for the sale of 3000 agriculture machines in
Ethiopia. Transfer of technology; est. of service centres.
Technology
transfer
„Poland will triple its exports to
African countries until the end of
2014.”
Janusz Piechociński
Deputy Prime Minister, Minister of Economy
Dedicated
Governmental
Programme
2013
Governmental
Trade Missions
Nigeria Zambia
RSA
Growing
Dynamics

17. Poland – Turkey business relations
200mn
EURO
Polish FDI
- Turkey
2012
„Turkey is one of the top
countries where the Polish
economy will be promoted.”
Janusz Piechociński
Deputy Prime Minister, Minister of Economy
Dedicated
Governmental
Programme
Growing
Dynamics
600 years
of relations
September 2013:
Solaris signs deal with the City
of Izmir (ESHOT). Delivery of
100 buses in Q1 2014.
January 2014:
Maspex Wadowice signs JV
contract with TAT KONSERVE
SANAYİİ. Sale of TEDI juices.

18. Last but not least…
Top class cars from Poland!
● Luxury ● High tech ● Style ●

19. See you in Poland!