ROMANIA Top Destination for Investment

1. ROMANIA Top Destination for Investment December, 2010

2. Romania the largest market in South Eastern Europe 1000 km radius 1500 km radius Bucharest

3. Pan European Corridors crossing Romania PAN EUROPEAN CORRIDORS CROSSING ROMANIA Helsinki – Kiev - Bucharest – Odessa/Alexandropoulos

4. GDP Growth Rate Significant Potential for Growth 2009 Source: EUROSTAT; Source: National Institute of Statistics; GDP EU 27 • Rapid and sustainable GDP growth rate between 2000-2008; • Severe adjustment of GDP in 2009 triggered austerity measures and a Governmental anti-crisis program; • Forecast 2010: -2%; 2011: + 1.5%

5. Inflation Rate Inflation Rate Source: Eurostat Source: National Institute of Statistics; • National Bank of Romania is targeting the inflation; • Disinflation policy to join Euro zone in 2015; • Target 3.5% inflation rate in 2010 and 3.0% for 2011;

6. Demographics Talent pool Human Capital • Young population (more than 50% under 40 years old) • Almost21.5million people • 106 universities, 631 faculties • 125,000 university graduates/yr • Availability of technical engineers • High industrial experience • Flexibility • Foreign language skills

7. Labor Cost – A debated topic Gross average monthly wages 2009 - EUR Gross average monthly wages EUR Source: Vienna Institute for International Economic Studies Source: National Institute of Statistics; • Romania will hold on its competitive advantage related to labour cost; • 7% decrease in 2009 against 2008; • Adjustment of the salaries growth in the administration system;

8. 376 thou State: 67%Private: 33% 14 thou S: 79%P: 21% 10 Major University Centers TARGU - MURES CLUJ-NAPOCA IASI 70 thou S: 93%P: 7% 67 thou S: 90%P: 10% SIBIU BRASOV 24 thou S: 92%P: 8% 46 thou S: 69%P: 31% GALATI 21 thou S: 87%P: 13% TIMISOARA 51 thou S: 89%P: 11% PITESTI BUCURESTI 20 thou S: 86%P: 14% CRAIOVA BUCURESTI 34 thou S: 89%P: 11%

9. Annual Inward FDI Inward FDI Flows 2009 EUR million Source: Vienna Institute for International Economic Studies; Source: National Bank of Romania • Second largest inward FDI receiver in Central - Eastern Europe; • Stock EUR 50 bill. (1990–2009) • EUR 30 bill.attracted over the last 4 years only;

10. Manufacturing Total Economy FDI by Field of Activity (1990- 2009) Source: National Bank of Romania

11. 1 2 3 4 5 6 7 8 9 10 Top 10 Investing Countries (1990-2009) Source: National Bank of Romania

12. Main foreign companies by sector

13. Highway Infrastructure Development - 2014 SUPLACU DE BARCAU BORS IASI MIHAILESTI PIATRA NEAMT ORADEA SABAOANI BICAZ TARGU MURES ALBITA CLUJ SOVATA GHEORGHIENI PRAID CAMPIA TURZII NADLAC SIGHISOARA ARAD SEBES FAGARAS SIBIU DEVA ORASTIE FOCSANI BRASOV TIMISOARA LUGOJ PREDEAL COMARNIC BUZAU PLOIESTI PITESTI DRAJNA FETESTI CERNAVODA BUCURESTI CONSTANTA CRAIOVA GIURGIU CALAFAT Source: CNADR

14. Ports and Airports SATU MARE BAIA MARE SUCEAVA IASI ORADEA CLUJ NAPOCA TARGU MURES BACAU ARAD SIBIU TIMISOARA GALATI BRASOV BRAILA SULINA TULCEA OTOPENI BANEASA DROBETA TR. SEVERIN M. KOGALNICEANU CONSTANTA CRAIOVA CORABIA OLTENITA MANGALIA GIURGIU

15. Mobile Communication Infrastructure– coverage area - • Deregulated market; • Major international players; • More than 90% network coverage.

16. Foreign Investor Rights national treatment for foreign investors; foreign investment allowed in all sectors of economy; possibility to freely manage the company with full ownership rights; full repatriation of capital and profits; protection against expropriation and nationalization; Access to incentives and funds provided by EU and Romanian legislation;

17. FISCAL CODE: Tax exemption for reinvested profit; Possibility to use accelerate depreciation of equipments (50% in the first year); Possibility to carry forward the fiscal losses for a period of up to 7 years; Exemptions from the payment of taxes on buildings and land applied by local councils in Romania on basis of state aid schemes; Fiscal incentives for R&D: additional deduction of 20% from the eligible expenses from research and development activities; Subsidies for hiring and training new personnel. Incentives and subsidies I

18. STATE AID SCHEMES/INCENTIVES FOR: investmentsbetween EUR 05-10 mill and creating at least 50 new jobs; investmentsbetween EUR 10-20 mill and creating at least 100 new jobs investmentsbetween EUR 20-30 mill and creating at least 200 new jobs; investmentsover EUR 30 mill and creating at least 300 new jobs; investmentsover EUR 100 mill and 500 new jobs; eligible costs over Euro 50 mill; investments in green energy - 50% subsidy from the total eligible expenses for all regions in Romania, except Bucharest (40% subsidy); Eligible expenses: investment in tangible assets (land, buildings, new equipments, installations) and intangible assets. Intensity ceilings increase by 20% in case of small enterprises, and by 10% in case of medium sized enterprises (Exception: economic agents activating in the field of transport) Incentives and subsidies II

19. Map of Industrial Parks • More than 40 Industrial Parks • Both private & public • Greenfield & Brownfield • Access to utilities • Package of services offered by the park administration • Wide variety of activities to be developed • Some created for high-tech activities

20. CompetitiveTaxation Source: National IPA’s Many Central and Eastern European countries increased the VAT in order to cope with economic crisis; Romania is maintaining the flat corporate tax;

21. EU financial assistance to Romania Romania could receive up to EUR 33 billion during 2007 – 2013 through EU funding; Financial support provided by European Regional Economic and Social Cohesion Policy is delivered through 3 main structural instruments and 2 funds dedicated to agriculture and fisheries.

22. Thank you for your attention!