Economic Opportunities in Southern Poland 2018

1. Małopolska Regional Development Agency Economic environment and business opportunities in southern Poland 2018

2. *) in enterprisesector **) EUROSTAT ***) Statistical Office of Poland 1 EUR = 4 ,3 PLN

3. Transport and Communications Kraków-Balice Airport over 60 directconnections (London – STN, LGN, Munich , Frankfurt, Dublin, Berlin, Dusseldorf, Milano, Madrid, Paris, Kiev, and others) 19carriers (Lufthansa, Finnair, PLL LOT, AirBerlin, Ryanair) ca. 4 mln passengers per year max.2 hours of flight to other Western Europeancities Katowice-Pyrzowice Airport– 80 km from Kraków Network of roads 3 international transport routes (E40–motorway A4: Calais-Brussels-Cologne- Dresden-Wrocław-Kraków-Lviv-Kiev; E77, E462) 2326 km of national/regionalroads (57.39 km/100 sq. km) Kraków – Slovakiaborder 94 km Kraków – Ukraineborder 258 km Kraków – Czech Republic border 124 km Kraków – Germany border 450 km

4. Top tourist destination in Poland Exceptional natural environment 6 National Parks 11 Environmental & Landscape parks 86 Nature preserves 10 Spa resorts Outstanding heritage 14 sites listed on the UNESCO World Heritage List 11 Heritage & Ethnographic parks 12 Castles Over12,6 m tourist per year (2,7 m foreigners21%)

5. Attractive place for living Culture (Krakow) 6,000 Objects of historical value ¼ of Polish historical and artistic collections 38Permanent exhibitions in Krakow ’s museums 8Theatres 4 Orchestras 40International festivals Sports and recreation facilities (Krakow) : 28 Sport Fields 22 Sport Stadiums 8 Swimming Pools (outdoor & indoor) Tennis Courts Multi-functional pitches Sailing marinas 1Mountain canoeing track 3 Artificial ice rinks Hippodromes 2 Golf courses

6. Top academic center • 32 colleges and universities (22 in Kraków) • Jagiellonian University (Poland’s oldest, founded in 1364) • University of Science and Technology AGH) • Kraków University of Technology (PK) • Kraków University of Economics (UEK) • National-Louis University (WSB) in Nowy Sącz • University of Agriculture • academic year 2014/15: 182,6 thous. students (6019 foreigners) in Małopolska – 2nd place in Poland, • 52,1 thous. graduates (2014): • - economic and administrative – 21,2% • social studies and humanities – 19,4% • - medical studies –6,2% • engineering and technical – 8,1% • production and processing – 5,8% • architecture and construction – 5,4% • biology and physics – 4,7% • IT / computer science – 3,9% • 2nd place in Poland in R&D • 1,66 bln PLN (in 2014) – expenditure on R&D • 10,8 % of Poland’s overall employment in the sector • over 100 R&D units

7. Małopolskaeconomy • Małopolska is rich in natural resources, especially in sandstone, limestone, marl, porphyry, melaphyre, diabase, and tuffs deposits as well as clays for construction ceramics. Medical and thermal waters are important elements of the region resource base. • Over 356 000 business entities operate in Małopolska, 97% in the private sector (4th place in Poland) • 5112 with foreign capital • 7 smart specializations for 2014-2020 : • Biotechnology, • Balanced energy, • ICT/BPO/SSC, • Chemical industry, • Manufacture of basicmetals and metal products, • Electrical and mechanical engineering, • Creative and lesure industry

8. Economic Activity Zones and Special Economic Zones

9. Foreign Direct Investments in Małopolska • Main sector of the investment: • Industry51% • Services 17% • Trade 9% • Hotels 2% • Construction 1% • Foreign investment in the region: • 16,4 bln USD 1989-2012 • Main new investors: • BPO / ITO sector, • automotive, • steel processing, • construction (housing, retail, industry…) • power station, • chemistry • IBM(14) • State Street (276) • Motorola corp. (78) • Philip Morris International (93) • Coca Cola ent. (116) • Google (117) • CH2M HILL (436) • International Paper (93) • RR Donnelly (233) • Delphi (121) • ACS (401)

10. Foreign languages availability in Poland Source: AG TEST HR survey based on pracuj.pl, 2012, 203 996 observations, candidates aged 25-40 with university degree

11. Public aid in Małopolska The available amount of state aid can be calculated either on the basis of investment outlays or two-year employment costs of the newly employed personnel – multiplied by the maximum intensity of the aid 35%-55%

12. Małopolska Regional Development Agency • Established in1993 by State Treasury, Krakow • Region, Industry Development Agency… • A leadingregional development agencyin Poland • Employment: 100 experts • Mainshareholder: The Małopolska Region • Capital: ca 20 mln Euro • Mainactivity: • Support for regional micro nad SMSE’s • FDI and export promotion • EU foundsprojects • MARR Business Park • International cooperation

13. Małopolska Regional Development Agency MRDA Investment and Real Estate managment

14. Małopolska Regional Development Agency • TheAgencyspecialisesin: • providingcomprehensiveknow-howand modern financial solutions to business, • providing services related to theacquisition of EU funds, • helpingentrepreneurs to investsafelyinthe Małopolska Region, • supportingexport, • offeringprofessional consulting services and access to an international network of business contacts, • a financial offer: loans, guaranteefunds, seed capital for enterprises • MARR increasesthecompetitiveness of the region and createsfavourableconditions for runningbusinesses.

15. Małopolska Regional Development Agency • MARR isthe leader in Euro acquisitionfrom national and • regionalprogrammes, • overtwothousandsupportedinvestments, consulting and trainingprojects, • 158 million Euro transferred to 300 companies for innovationprojectsin Małopolska in 2009 support for the transfer of technologies, • seed capital, • International cooperation • start-upsupport • co-operationwithuniverities, • intelectual property. protection • MARR coordinates and financiallysupportscooperationbetweeneducation and business, promotesnewtechnologies and theapplication of innovativeconceptsin business

16. Regional network for cooperation and support for innovation Business in Małopolska offer for investors: • full access to economic information • offer of investment and office areas • assistance in achieving the public investment grants • tax exemption for investments within the Special Economic Zone • preparation of applications for EU programmes • investment consulting services • establishing contact with regional, municipal authoritiesand institutions of higher education • support in the permit approval process

17. Stability, predictability and quality - Poland in the World's FDI reports

18. Why doing business in Małopolska? • Huge human ressources/customer market – 8 million people • Skilledemployees, huge number of students and graduates • Location within maximum 2 hours of flight to other Western European cities from Krakow Airport • Quick and easy access to Western and Eastern Europe by motorway A4 • Stable and transparent investment suport system • Low tax burden • Investor Assistance • Economic activity areas, Special Economic Zoneincentives– until 2026

19. www.businessinmalopolska.com www.marr.pl www.sse.krakow.pl www.malopolskie.pl www.mpp.krakow.pl