KAUNAS REGION
Where Business Services come together
Lithuania is at the center of three of large consumer markets:
• Western Europe
• Baltic Sea Region
• Russia and former Soviet States (CIS)
LITHUANIA stats
Size
Population
Capital
Official language
65,300 km2
2.97 million
Vilnius
Lithuanian
Currency Lithuanian Litas (LTL)
Pegged to Euro since 2002
1 Euro = 3.45 LTL
Real GDP growth 2013: 3.2%
2012: 3.7%
2011: 6.0%
FDI growth
Annual inflation
8.1 %
1.2%
Kaunas Region
KAUNAS REGION stats
Regional capital
Population
Labour pool
Unemployment
FDI growth
Kaunas City
593,000
289,000
31,300 (10.1%)
11.4%
Source: Statistics Lithuania, VRM, Invest Lithuania 2014

KAUNAS REGION
Where Business Services come together
• 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 million consumers
(source: IMF)
100
Risk rating of Lithuania compared to other countries
(100= most risky)
80
60
40
20
0
Lithuania
Poland
Hungary
Russia
Belarus
Source: * World Bank , Invest Lithuania 2014
Source: Economist Intelligence Unit Q2 2014

KAUNAS REGION
Where Business Services come together
• Lithuania’s business services market has been thriving for years, becoming an acknowledged hot spot for shared services centers (SSC) and Business Process Outsourcing (BPO)
• With a cluster of multinationals providing services in the English, German, Russian, Polish and
Scandinavian languages for the entire European market, Lithuania has emerged as an attractive and still not overheated location for shared services and outsourcing business developments
• Market observers forecast a further rapid growth in the industry, whereas the Lithuanian
Government has set a strategic goal to be achieved by the country by the year 2015 – to become the Northern Europe Service Hub
• By 2015 the share of exports of services is expected to be 1/2 of Lithuania’s total exports
International rankings Shared Service Centers and BPO in Lithuania
• 3rd in Europe and 14th in the world in ranking of the best destinations for providing outsourcing activities*
• Vilnius a hotspot location with 82% growth for
SSC in the past 3 years **
• The strong growth puts pressure on the Vilnius labor market. Kaunas provides an excellent alternative
Sources:
*A.T. Kearney’s Global Services Location Index 2011, Invest Lithuania
**Annual Shared Services and BPO Conference 2013, Deloitte, Invest Lithuania
Activity
IT
Finance
Multifunction
Contact Center
Other
TOTAL
Number Jobs created
16 2,550
10
10
870
3,530
8
4
48
3,330
440
10,720
Source: Invest Lithuania 2013

Omega
Greencarrier
Lintel
KAUNAS REGION
Where Business Services come together
BDC
Telia Sonera
Callcredit Information group
Dematic
Unicall
Runway
HP
Nielsen&Nielsen
Kaunas Region is proven to be an excellent alternative for the crowded and more costly
Vilnius’ market
IBM
SEB
Nielsen
Atea
Barclays
COWI
Danske Bank
Matrix Software
Western union
Storebrand
CSC
Transcom
Paroc
CITCO
INWINDO
CSC Telecom
Swedbank
Worldone
Mirror
Source: Invest Lithuania 2013

KAUNAS REGION
Where Business Services come together
Highly educated and multilingual talent
Cost attractiveness
• The right people
• The right education
• The right languages
• The right labor cost savings
• The right tax scheme
Real Estate availability
• The right offices
• The right cost advantages
ICT infrastructure
• The right connectivity
• The right speed
International accessibility
• The right location
• The right direct flights

KAUNAS REGION
Where Business Services come together
• Within Kaunas Region approximately 15,000 people are employed in the business services 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
• Lithuania ranks 5th in EU for population speaking at least 1 foreign language (>90% of population) and 7th in EU for 2 foreign languages (>50% of population)*
• The study of foreign languages is widely practiced in Lithuania and Kaunas Region
* Source: Invest Lithuania 2013
Languages studied in Lithuania 2010
3%
5%
9%
Current language capabilities Lithuanians
Language % of
Lithuanians speak
10%
Russian 90%
73%
English
Polish
38%
19%
English
French
Other Languages
Source: Eurostat, 2012,
German
Russian
German 14%
Contact centers in Kaunas region benefit from multilingual capabilities - Unicall

KAUNAS REGION
Where Business Services come together
• 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 BPO/call centers and shared services centers as employers’ cost levels are 10-15% lower compared to Vilnius
• 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, Kėdainiai 2014
Full employers cost per person per year (Euro) Tax rates
20 000
18 000
16 000
14 000
12 000
10 000
8 000
6 000
4 000
2 000
0
Kosice - Sk Katowice -
Pl
Gdansk - Pl Tallinn - Est Vilnius - Lith Kaunas -
Lith
Financial analyst Call Center Agent
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
Tax
Income tax
Property tax
Dividend tax
General
15 %
1 %
15 %
Free Economic Zone
0 % (first 6 years)
50% of the tax rate
(subsequent 10 years)
0 %
0 %
Source: Invest in Lithuania, FEZ Kaunas, FEZ Kėdainiai 2014

KAUNAS REGION
Where Business Services come together
40
30
20
10
0
80
70
60
50
• 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 Lithuania 2013
• Also on the achieved internet speeds Lithuania scores very high at
7 th globally
Countries with the highest penetration of fiber-to-the-home / building
Lithuania ranked 7th globally on achieved internet speeds (Mbps)
Source: Speedtest.net, 2014
Lithuania
Sweden
Latvia
Norway
Russia
Bulgaria
Slovakia
Denmark
Portugal
Slovenia
Estonia
Finland
0% 10% 20%
Source: FTTH Council Europe 2014
30% 40%
(blue) Fiber-tothe-Home subscribers
(grey) Fiber-tothe-Building +
LAN subscribers

KAUNAS REGION
Where Business Services come together
• 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

KAUNAS REGION
Where Business Services come together
• 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
Average annual occupancy costs office (Euro/sqm)
• Kaunas Region provides affordable office space which is 25% cheaper compared to
Vilnius
180
160
140
120
100
80
60
40
20
0
• 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

KAUNAS REGION
Where Business Services come together
• 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

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KAUNAS REGION
Where Business Services come together
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