Investment Opportunities in the Czech Republic

Celje, September 17th, 2012

mission

CZECHINVESTInvestment & Business Development Agency

to support foreign direct investment

to develop local companies

to implement business-development programs

to improve business environment

Ministry of Industry and Trade

CzechInvestInvestment and Business Development Agency

Source: CzechInvest, 2012

Priority Sectors (Investment Opportunities)

High-Tech Manufacturing Sector: Automotive, Aerospace

Electronics and Microelectronics

High-Tech Engineering, Nanotechnology

Biotechnology, Pharmacy and Medical Equipment

Renewable Energy and Cleantech

Business Support Services: IT & Software Development, Expert Solution Centres

High-Tech Repair Centres, Shared Services Centres

(HR, Accounting, Finances)

Technology (Design) Centres: Innovation Activities, Applied R&D

Source: CzechInvest, 2012

CzechInvest in Numbers1993 – 2011

Approved Projects (total) 1,798

New Jobs Created 228,380

Total Investment Amount 27,804 (USD million)

Prestigious Awards 14

Source: CzechInvest, 2012

-- 2009 Best Website among All Investment Promotion Agencies, World Bank

(2nd position in 2012)

-- 2009 Inward Investment Team of the Year, Business Destinations

-- 2004 Best Practices in Promotion Award, World Investment Forum

-- 2002 Best Advertisement Promotion Agency in the EU Accession Countries

-- 2001 European Investment Promotion Agency of the Year

-- 2000 European Investment Promotion Agency of the Year

Investments by Country of Origin (total value)

Source: CzechInvest, 2012

Investments by Sectors (total value)

Source: CzechInvest, 2012

More Projects with Added-Value

Source: CzechInvest, 2012

100%

1994

MFG

24%

48%

28%

2011

MFG SC TC

Note: MFG - Manufacturing Industry, SC – Service Centers, TC - Technology Centers

Major Investors - Manufacturing

╌ABB (eng.+el.)╌BOSCH (aut.)╌CONTINENTAL (aut.)╌DAIKIN (eng.+el.)╌DENSO (aut.)╌FOXCONN (el.)╌HONEYWELL (eng.)╌HYUNDAI (aut.)╌IPS ALPHA (el.)╌KIMBERLY CLARK (med.)╌MAFRA (print.)╌MAGNA (aut.)╌NEMAK (aut.)

╌PANASONIC (el.)

╌SAINT GOBAIN (build.)

╌SHIMANO (eng.)

╌SIEMENS (el.+aut.)

╌SYNTHOS (chem.)

╌TEVA (phar.)

╌TORAY (tex.)

╌TOYOTA+PEUGEOT+CITROEN

╌TRW (aut.)

╌UNILEVER (food)

╌VOLKSWAGEN (aut.)

╌CATERPILLAR (eng.)

╌JOHNSON CONTROLS (aut.)Source: CzechInvest, 2012

MAJOR INVESTORS - Technology Centres

╌AUTOPAL (aut.)

╌BANG & OLUFSEN (el.)

╌BOSCH (aut.)

╌DENSO (aut.)

╌EMERSON (el.)

╌GE AVIATION (aero.)

╌HONEYWELL (el.)

╌INGERSOLL RAND

╌LATECOERE (aero.)

╌LONZA (bio)

╌EATON (eng.))

╌MERCEDES-BENZ (aut.)

╌OLYMPUS (med.)

╌ON SEMICONDUCTER (el.)

╌PANASONIC (el.)

╌PROCTER&GAMBLE (chem.)

╌RICARDO (aut.)

╌RIETER

╌SIEMENS (el.)

╌VOLKSWAGEN (aut.)

╌VISTEON (aut.)

╌VALEO (aut.)

╌EDWARDS (eng.)Source: CzechInvest, 2012

R&D Financial Support Tools

╌Deduction of all R&D costs – companies can

deduct R&D costs from their tax base and at the

same time include them in eligible costs

╌Grants from the National Research Programme

╌Investment incentives to support companies

setting up or expanding technology centres and

centres for industrial R&D

╌Grants from EU structural funds supporting the

creation or extension of the R&D capacities and

supporting innovative projects

Czech Government supports R&D activities through the use of various tools:

Source: CzechInvest, 2012

National Programmes: Ministry of Industry and Trade

T.I.P. (Technology, Information Systems, Products) – supports R&D activities in

companies and research institutions in order to encourage the creation and

transfer of new technologies and innovations into industrial production ensuring

its efficiency and competitiveness as well as sustainable economic, social and

environmental development of the Czech Republic.

Source: Ministry of Industry and Trade, 2012

Investment Incentives

-- Act on Investment Incentives No. 72/2000 Coll., as amended

Supported activities

-- Manufacturing industry - Acquisition of a new or expansion of an existing plant

-- Technology centres - Establishment or expansion of R&D centres

-- Business support services centres - Establishment or expansion of shared service centres, SW development centres or high-tech

repair centres

Source: Act on Investment Incentives No. 72/2000 Coll.

Types of Incentives

Following items summed up cannot exceed the ceiling of state aid

-- Tax incentive-- Job creation grants-- Discounted price of land-- Cash grant on capital investment

(in case of strategic investment)

Granted above the ceiling of state aid

-- Training and retraining grants

Source: Act on Investment Incentives No. 72/2000 Coll.

Bilateral Technological Cooperation

The objective of the programme is to support technological cooperation between

enterprises from the Czech Republic and from a country outside the EU

The project should result in production of high-tech products

Areas of support:

Mechanical engineering Electrical-engineering and electronics technologies Information and communication technologies Energy, sustainable and clean technologies Agricultural and food-processing technologies Biotechnologies Medical technologies

Source: CI internal documents

Structural funds 2007-2013

Proposed operational programmes covering R&D to be implemented in the Czech Republic:

Operational Programme Allocation

Enterprise and Innovation EUR 3,041.3 million

Research and Development for Innovation EUR 2,070.7 million

Education for Competitiveness EUR 1,811.8 million

Source: CzechInvest, 2012

OP Enterprise and Innovation

Supports:

╌Investment into R&D capacities of companies

╌Creation of new (particularly innovative) companies

╌Innovation

╌Transfer of R&D results into practise

╌Infrastructure for enterprise and innovation

╌Cooperation between companies

╌Consultancy and advisory services

╌HR development

╌Regeneration of brownfields

╌Mediator: CzechInvest

Source: CzechInvest, 2012

OP Enterprise and Innovation

Programmes:

Prosperity - supported activities include the establishment and further development of science and technology parks, business incubators, and technology transfer centres, as well as creation of a network of business angels which encourage the establishment and development of innovative firms.

Potential - helps companies to set up and increase capacities necessary for the implementation of research, development and innovation activities.

Source: CzechInvest, 2012

OP Enterprise and Innovation

Programmes:

Cooperation - is intended for those who want to cooperate with other companies in their branch and to establish cluster. This programme enables the improvement of mutual ties and the establishment of long-term, advantageous multilateral partnerships of firms, universities, research institutes, regional authorities and other institutions in the given region.

Innovation – the programme contributes to the protection of intangible goods in the form of patents, utility models, industrial designs and protected trademarks.

Source: CzechInvest, 2012

CzechAccelerator 2011-2014

www.czechaccelerator.cz

The objective is to support innovative Czech companies in developed foreign markets.

Thank you for your attention.

www.czechinvest.org