Jihlava, 7. 5. 2010

CZECHINVEST

Investment and Business

Development Agency

Hana Medricka

Director of Regional office for Vysocina region

Content

1.CzechInvest

2.Operational Programme Enterprise and Innovation

3.Investment incetives

Investment Incentives Act changes

2007

2010

-- Investment and Business Development Agency

-- State contributory organisation of the Ministry of Industry and Trade of the Czech Republic

Historical development:

Support of investment inflow

1993

Facilitating business support Services and technology centres

2002

1998 Introduction of investment incentives,development of infrastructure for investors

2003 Support for small and medium-sized enterprises

Source: CzechInvest, 2010

CZECHINVEST -DEVELOPMENT & POLICY

Support for:

Investments with high added value

Research and Development

Business Innovation

Development of Clusters

Regeneration of Brownfields

Development of the business environment

Effective distribution of EU structural funds

CZECHINVEST’S STRATEGY

Source: CzechInvest, 2010

Regional Offices

╌Coordinates and implements regional projects

╌Provides consulting in the area of EU structural funds

╌Represents CI in the regions

Source: CzechInvest, 2010

Operational programme

Enterprise and Innovation2007 - 2013

OP ENTERPRISE AND INNOVATION (OPEI)

Source of cofinancing:

-- European Regional Development Fund (ERDF)

Total allocation : -- CZK 100 billion* (i.e. approximately CZK 14.3 billion per year)

-- This represents 11.75% of the total sum from EU structural funds for the Czech Republic.

Governing body of OPEI: -- Ministry of Industry and Trade of the Czech Republic

Programme characteristics:

*Total: 3, 57 billion €, Per year: 510 million €

SOLUTIONS FOR THE NEEDS OF ENTERPRISES

‒Technology in Enterprises

‒Prospective Employees

‒Innovation Process

‒Infrastructure for Business

‒Partners in Business

‒Consultancy

PRIORITIES

AND AREAS OF SUPPORT Priority Area of support Programme %

1. Establishment of companies

1.1 Support for beginning entrepreneurs START2,61.2 Use of new financial instruments

2. Development of companies

2.1Banking instruments for the support of SMEs PROGRESS

21,8

GUARANTEE

2.2 Support for new production technologies and ICT in companies

DEVELOPMENT

ICT and Business-support Services

ICT in Companies

3. Efficient energy

3.1 Energy conservation and renewable sources of energy

ECO-ENERGY 4,0

4. Innovation 4.1 Increased innovation efficiency of companies INNOVATION 22,4

4.2 Capacities for industrial R & D POTENTIAL

5. Business and innovation environment

5.1 Cooperation platforms COOPERATION

38,4PROSPERITY

5.2 Infrastructure for human resources development TRAINING CENTRES

5.3 Business infrastructure PROPERTIES

6. Business- development services

6.1 Support for consulting services CONSULTING 7,96.2 Support for marketing services MARKETING

Technology in Enterprises

New technologies for:

ProductionInformation

systemsCommunication

systems

Development ICT in Companies

Prospective Employees

… will help with creating a quality background for education

Training centres Educa

Innovation Process

Idea

Need of realization of production -- production capacities

Think out Develop Produce and sell

Prototype

POTENCIAL INNOVATION

Innovation – Project for the protection of industrial property rights

Need of realization of R & D -- capacities for R & D -- people, laboratories, laboratory equipment, etc.

Placing on the market

- Innovation projects

Infrastructure for Business

Training of employees

Research and Development

Production

in a company

in science and technology parks,

business incubators

Training Centres

Potencial

Prosperity

Properties

Partners in Businness

Universitiesand R & Dinstitutions

Business incubators

Technology transfer centres

Technologyplatforms

Clusters

Science and technology parks

Prosperity

Cooperation

PRIORITIES

AND AREAS OF SUPPORT Priority Area of support Programme %

1. Establishment of companies

1.1 Support for beginning entrepreneurs START2,61.2 Use of new financial instruments

2. Development of companies

2.1Banking instruments for the support of SMEs PROGRESS

21,8

GUARANTEE

2.2 Support for new production technologies and ICT in companies

DEVELOPMENT

ICT and Business-support Services

ICT in Companies

3. Efficient energy

3.1 Energy conservation and renewable sources of energy

ECO-ENERGY 4,0

4. Innovation 4.1 Increased innovation efficiency of companies INNOVATION 22,4

4.2 Capacities for industrial R & D POTENTIAL

5. Business and innovation environment

5.1 Cooperation platforms COOPERATION

38,4PROSPERITY

5.2 Infrastructure for human resources development TRAINING CENTRES

5.3 Business infrastructure PROPERTIES

6. Business- development services

6.1 Support for consulting services CONSULTING 7,96.2 Support for marketing services MARKETING

Actual and planned calls

Programme Acceptation of the application for registration

Development III. 1.5.2010 – 1.8.2010

ICT and BSS III. 15.4.2010 – 15.10.2010

ICT in Companies III. 1.1.2010 – 15.10.2010

Eco-energy III. 1.3.2010 – 30.6.2010

Innovation – In. projects IV. 1.5.2010 – 30.9.2010

Innovation – Patent II. 1.6.2009 – 31.5.2010

Potencial III. 26.2.2010 – 30.9.2011

Cooperation – Clusters II. 1.3.2010 – 30.5.2010

Prosperity II. 1.11.2009 – 60.3.2010

Training Centres 1.11.2009 – 31.5.2010

Marketing II. 1.3.2010 – 30.6.2010

Consulting II. Plan for annoncing of a call: 1.9.2010

INVESTMENT INCENTIVES FOR MANUCATURING

Act on Investment Incentives

No. 72/2000 Coll., as amended

╌Acquisition of a new plant or expansion of an existing plant

╌Minimum investment within 3 years

╌ CZK 100 mil. (app. EUR 3.5 mil. / USD 4.7 mil.) (C)

╌ CZK 60 mil. (app. EUR 2.1 mil. / USD 2.8 mil.) (B)

╌ CZK 50 mil. (app. EUR 1.7 mil. / USD 2.3 mil.) (A)

╌At least half of the above minimum investment must be covered by

own equity

╌At least 60% from the total investment must be made into

machinery

╌Machinery equipment have to be new

ELIGIBILITY CRITERIA

MINIMUM INVESTMENT, BY REGION

SM

OV

LN

LBDC

PHRA

KD

TP

JC

PV

CV

CL

MBLT

MOUL

PRPE

PU

PJ

NA

ST

ZR

KO

PM

NB

PI

HB

SU

PB

TU

NJ

OP

SY

RO

AB

BK

BRUO

KV

JN

VS

JE

CRBE

RK

DO

KT

KH

PS

ME

OC

TA

PZ

BN

HK

TC

ZN

JI

BI

CHSO

BMTRJHPT CB

BVCK

KI

KM

UH

FM

VY ZL

HO

GROUP MINIMUM INVESTMENT

A CZK 50 mil. / EUR 1.8 mil. / USD 2.4 mil.

B CZK 60 mil. / EUR 2.1 mil. / USD 2.9 mil.

C CZK 100 mil. / EUR 3.6 mil. USD / 4.8 mil. Valid from1 January to 30 June 2010

TAX INCENTIVE

╌ New firms: corporate tax relief

for max. 5 years

╌ Existing companies: partial tax

relief for max. 5 years

╌ Current corporate income

tax rate = 19%

OUR SERVICES TO POTENTIAL INVESTORS

-- Collect/provide information

-- Identify sites and buildings

-- Find potential suppliers / JV partners

-- Liaise with government bodies

-- Handle investment incentives

-- Enable access to structural EU funds

-- Provide aftercare services

our services are free of charge

Source: CzechInvest, 2010

WWW.CZECHINVEST.ORG

CzechInvest -

Key opportunities & Promotion of agency

(Strategy & know-how)

Dsd Dsd Ds sd

CzechInvest, the Investment and Business Development Agency, is an agency of the Ministry of Industry & Trade of the Czech Republic

© Copyright, CzechInvest 2010. All rights reserved

Thank you for your attention

Hana Medricka

Regional office for Vysocina Region Komenskeho 31 586 01 Jihlava Tel.: 567 155 197/8 E-mail: jihlava@czechinvest.org