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Where IT comes together

KAUNAS REGION. Where IT comes together. KAUNAS REGION. Welcome to Kaunas Region , Lithuania!. Where IT comes together. Lithuania is at the center of three of large consumer markets : Western Europe Baltic Sea Region Russia and former Soviet States (CIS). Kaunas Region.

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Where IT comes together

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  1. KAUNAS REGION WhereIT comestogether

  2. KAUNAS REGION WelcometoKaunasRegion, Lithuania! WhereIT comestogether • Lithuania is at the center of three of large consumermarkets: • Western Europe • Baltic Sea Region • Russia andformerSovietStates (CIS) KaunasRegion Source: Statistics Lithuania, VRM , Invest in Lithuania, 2014

  3. KAUNAS REGION Lithuania, a gateway to the EU and CIS WhereIT comestogether • Lithuania allows access to main markets*: • Member of the European Union • Member of the Schengen Agreement (free trade and travel) • Member of NATO • Member of the Nordic Investment Bank, and part of Nordic-Baltic cooperation of Northern European countries • Lithuania is ranked 17th of the world on the Ease of Doing Business Index (higher than e.g. Germany, Latvia or Poland) * • Lithuania is a low risk country in the Central and Eastern Europe region, making it an excellent alternative for nearby high risk countries as Russia or Belarus European Union is the largest single market in the world (almost double the GDP of China) with over 500 millionconsumers (source: IMF) Risk rating of Lithuania comparedtoothercountries (100= most risky) Source: * World Bank, Invest in Lithuania 2014 Source: Economist Intelligence Unit Q2 2014

  4. KAUNAS REGION IT sector Lithuania WhereIT comestogether • Lithuanians are among the most IT-proficient people of the European Union – 96.7% of individuals aged 16-24 obtain IT skills through formal educational institutes • More than 24,500 experienced IT professionals are currently employed in Lithuania in 2,185 companies. Over 8,000 employees are active in the area of computer programming • Lithuania has 6,200 IT students at 7 universities and 14 colleges. A majority of ICT talent is located in Vilnius and Kaunas • Lithuanian IT professionals feature strong competenciesin: Java , Oracle, Microsoft (C#, C/C++, Visual Basic, ASP), Web Based (HTML, PHP, JavaScript, CSS, XML). Other well-spread competencies in the market are: Python, SAP, SharePoint Source: Invest Lithuania 2013 Lithuania ranked 1st globally on communicationstechnology International rankings • 1st in the World Competitiveness Rankings for communication technology * • 1st for Internet upload and 3rd for download speed in the EU ** • Among Top 10 countries in the world for cloud readiness ** Sources: * IMD, The Word competitiveness yearbook, 2011-2012 , Invest in Lithuania ** Ookla Netindex, 2013 , Invest in Lithuania *** Cisco Global Cloud Index, 2013. The Index evaluates Consumer and Business Fixed Network performance and Consumer and Business Mobile Network performance, Invest in Lithuania Answerto the question: Communications technologymeets business requirements Source: IMD WCY Executive Opinion Survey based on an index from 0 to 10, 2013 survey results, Invest in Lithuania

  5. KAUNAS REGION KaunasRegion is next to the capital Vilnius, Lithuania’s second city and an important hub for IT WhereIT comestogether Omega Greencarrier Lintel BDC TeliaSonera IBM SEB Nielsen Atea Barclays COWI Danske Bank Matrix Software Western union Storebrand CSC Transcom Paroc CITCO INWINDO CSC Telecom Swedbank Worldone Mirror CallcreditInformationgroup Dematic Unicall Runway HP Nielsen&Nielsen KaunasRegion is proven tobe an excellent alternative for the crowded and more costly Vilnius’ market Source: Invest Lithuania 2013

  6. KAUNAS REGION The KaunasRegionprovides an unmatched mix of cost-effective talent and high class infrastructure WhereIT comestogether Highly educated IT talent • The right people • The right education • The right languages ICT infrastructure Cost attractiveness • The right connectivity • The right speed • The right laborcostsavings • The right tax scheme In KAUNAS REGION it all comes together International accessibility Real Estate availability • The right offices • The right costadvantages • The right location • The right direct flights

  7. KAUNAS REGION Highly educated and multilingual talent WhereIT comestogether • In Kaunas Region over 5,000 people are employed in the information and communication sector • The Kaunas region workforce is highly educated with 39% of workers having a third level diploma (Lithuania: 34%; EU: 24%). Virtually all highly educated graduates speak English • The majority of IT talent is located in two largest clusters – Vilnius and Kaunas with more than 4,800 young people studying IT curriculums in these cities • Because of fast-growing IT centers like Barclays, Vilnius is experiencing a tight labour market for which Kaunas is an excellent alternative • British company Callcredit expanded its IT center in Kaunas from 120 to 200 employees in 2014 benefiting from the large graduate potential Sources: Lithuanian Statistical Department, VRM, Invest Lithuania 2014 IT students Lithuania by field of study 2012-2013 Barclays Technology Centre has already reached more than 1000 FTE in less than four years since its establishment in 2009 in Lithuania Source: Invest Lithuania, 2014 Source: Invest Lithuania, 2014

  8. KAUNAS REGION Cost attractiveness WhereIT comestogether • In general labour costs in Lithuania are less than half compared to Western European countries and the USA • Kaunas is a very cost attractive location for IT as employers’ cost levels are 10-15% lower compared to Vilnius and 20-40% lower than in Poland, Slovakia and Hungary • Standard income tax rate is one of the lowest in Europe at 15%. If established in a Free Economic Zone (FEZ), property and dividend tax is at 0% and income tax is at 0% for the first 6 years and 7.5% for the following 10 years* * Source: Invest in Lithuania, FEZ Kaunas, Kedainiai2014 Full employerscost per person per year (Euro) Tax rates Source: Invest in Lithuania, FEZ Kaunas, FEZ Kedainiai2014 1 Employer cost are based on the following expenses: gross salary, social security, medical and pension costs in addition to social security and performance bonuses Source: National/Regional Statistical Offices, IMD, UBS, 2014

  9. KAUNAS REGION ICT infrastructure WhereIT comestogether • The ICT infrastructure in Lithuania (and Kaunas Region) is the best in Europe with 33% of homes/buildings directly connected to fiber • The most up-to-date ICT technologies are implemented and functioning in the entire country (LTE technology, 3G mobile communications, infrastructure, mobile WiMAX 4G Internet etc.)* * Source: Invest in Lithuania • Also on the achieved internet speeds Lithuania scores very high at 7th globally Countrieswith the highestpenetration of fiber-to-the-home / building Lithuania ranked 7th globally on achieved internet speeds (Mbps) Source: Speedtest.net, 2014 Source: FTTH Council Europe 2013

  10. KAUNAS REGION International accessibility WhereIT comestogether • Kaunas Region is situated at the geographical centre of Lithuania and is further developing and strengthening its transport infrastructure • Kaunas Region is well connected by road to Vilnius, Klaipeda, Riga and Poland • Kaunas airport, which is the second largest airport in Lithuania, serves 8 international destinations (incl. London, Birmingham, Dublin, Oslo and Frankfurt) throughout the year on a weekly basis • Vilnius International Airport is located within a one hour drive providing 2-3 flights per hour and more daily direct flights to major European capitals and cities

  11. KAUNAS REGION Availability of affordable real estate WhereIT comestogether Averageannualoccupancycosts office (Euro/sqm) • Kaunas Region provides affordable office space which is 25% cheaper compared to Vilnius • Kaunas Free Economic Zone (FEZ) provides opportunities for setting up an office. The zone provides favourable and lower taxes for investors investing at least Euro 1 million • Within the city of Kaunas, new high quality developments are underway to accommodate the business services industry Note: Cost for a Grade A office space, excluding average local rates and service charges Source: CBRE, Jones Lang LaSalle, UBS, Ober-Haus, Colliers International ,2014 New office building Kaunas City Source: Invest Lithuania, FEZ Kaunas, 2014

  12. KAUNAS REGION National incentives support program WhereIT comestogether • Foreign investors interested in locating a business in Lithuania as well as foreign companies already operating in the Lithuanian market but eager to further expand may apply for Invest in Lithuania’s financial investment support of up to Euro 3.5 million per investment project • Invest in Lithuania provides financial support to cover personnel training costs (up to Euro 2 million) as well as eligible construction, infrastructure and salary costs (up to Euro 1.5 million), incurred by foreign investors establishing a services business unit in Lithuania • The financial support tool is designed to support foreign businesses investing into the production of export-oriented high-quality services as well as establishment of qualified jobs on the market Financial support available per FDI project in the field of services Construction, Infrastructure, Salary costs Personnel training costs Up to Euro 1.5 million Up to Euro 2 million Max. possible support 3.5 million Euro Source: Invest Lithuania, 2014

  13. KAUNAS REGION Contact us WhereIT comestogether TBD • Information • Consultancy • Analysis • Search • Guidance • Networking • Assistance • Aftercare One stop shop Contact Information: +370 …. @ www

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