GORAN RADMANGORAN RADMANChairman Chairman ECEEECEEMicrosoft CorporationMicrosoft Corporation

ICT ICT MMarket in South East Europe arket in South East Europe and and IInvestment nvestment OOpportunitiespportunities

SEE TRANSFORMATIONSEE TRANSFORMATION

INVESTMENT

PRODUCTION

INNOVATION GROWTH

RESOURCES

IS IT SUSTAINABLE?

ADDED VALUE

COMPETITIVENESS

Croatia, 10.5%Albania, 2.1%

BiH, 2.8% Bulgaria, 8.1%

Montenegro, 0.8%

Romania, 14.0%

Serbia, 5.3%

Macedonia, 1.7%

Turkey, 63.0%

Hungary, 28.6%

Slovenia, 6.7%

SEE ICT MARKET VALUESEE ICT MARKET VALUE

Source: EIU

23.3 billion EUR in 2006

Croatia, 7.9%Albania, 0.7%

BiH, 1.1%Bulgaria, 5.4%

Montenegro, 0.3%

Romania, 2.9%

Serbia, 3.2%

Macedonia, 0.7%

Turkey, 47.9%

Hungary, 23.2%

Slovenia, 6.2%

SEE ICT MARKET VALUE SEGMENTSSEE ICT MARKET VALUE SEGMENTS

IT: 8.6 billion EUR Telecom: 14.7 billion EUR

Source: EIU

0

2

4

6

8

10

12

14

Austr

ia

Irela

nd

Sw

ed

en

Gre

ece

Cro

atia

Alb

an

ia

BiH

Bulg

ari

a

Mo

nte

neg

ro

Ro

man

ia

Serb

ia

Maced

onia

Turk

ey

Hun

gary

Slo

ven

ia

% of GDP

EU 25

SEE ICT MARKET GDP EQUIVALENTSEE ICT MARKET GDP EQUIVALENT

Source: WB

IT Spending Employment

$46.4 billion 1.526 million IT jobs

Software Vendors

Channel FirmsServices Firms

IT Professionals40%

Hardware VendorsChannel FirmsServices Firms

IT Professionals 60%

Software 13%

Hardware &Services

87%

Source: IDC Economic Impact Study CEE, 2007

While software represents only 13% of total IT spending, it drives 40% of IT employment

CEE ICT SPENDING AND EMPLOYMENTCEE ICT SPENDING AND EMPLOYMENT

IT CEE IMPACTIT CEE IMPACT

• An aggregate of $18.1 billion in An aggregate of $18.1 billion in new tax new tax revenues over four yearsrevenues over four years

• Contribution of new revenues of Contribution of new revenues of $67.3 $67.3 billion to GDP over four yearsbillion to GDP over four years

• More than 676,000 new jobs More than 676,000 new jobs generated generated in next three yearsin next three years

Source: IDC Economic Impact Study CEE, 2007

0

10

20

30

40

50

60

70

80

90

100Rank 2004./out of 104 countries Rank 2005./out of 114 countries Rank 2006./out of 122 countries

ENCOURAGING IT GROWTHENCOURAGING IT GROWTH

Source: The Global Information Technology Report 2004 – 2006. WEF

Source: The Global Information Technology Report 2004 – 2006. WEF

SEE ICT ADVANTAGES AND SHORTCOMINGSSEE ICT ADVANTAGES AND SHORTCOMINGS

Source: neoIT Offshore Insights, 2006SEE ICT OFFSHORINGSEE ICT OFFSHORING

SEE will need time to catch up, but still is the SEE will need time to catch up, but still is the fastest growing region for ICT marketfastest growing region for ICT market

MICROSOFT SEE STRATEGY

Tech AccessContentCommunity

Human Potential Knowledge Capital Social Contribution

LSELocalizationAccessibility

Capital flowJobs CreationTools

EducationInnovatio

nBusin

ess O

pportunity

Business Model Innovation

Local Software Economy

Public/Private Partnerships

© 2005 Microsoft Corporation. All rights reserved.© 2005 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.