Investment support systems – Poland and European Union Paul van Kooperen Managing Partner PNO CEE 14th June 2012 About us in Central Europe public funding and investment landing solutions • Solutions from Baltics to Balkans • 10 offices in 7 countries, • 80 professionals • 30 year experience in EU/10 years in CEE • over 1.000 clients • independent positioning © PNO CEE 2012 2 We are proud to serve …………….. our international clients 3 © PNO CEE 2012 Areas of interest Research & Development Government Relations Management Strategic Investments – green fields Investment financing Corporate Social Responsibility © PNO CEE 2012 Access to networks 4 The European Union • 27 countries (member states) • 1 legal framework • 1 framework on state aid (grants & incentives) • Each member state can set its own FDI-support policy within the legal framework • Within the EU free movements of goods and people • Currency union (Euro) in the largest part of the economy © PNO CEE 2012 5 Poland • +4.3 % GDP growth in 2011: best in EU • Strongly improved legal framework • Generous+accessible FDI-support policy • Well educated and eager work force • Good (technical) education infrastructure • Cities: good quality of life © PNO CEE 2012 6 Public funding areas Theme Governmental policy Ambitions company 1 Energy Energy savings Durable economy Decrease of congestion (CAPEX and OPEX) Efficiency improvement Operational best-in-class More production with less energy Green energy/bio based Smart logistic concepts Durable product development (cradle-to-cradle) Corporate Social Responsibility Environment Decreasing environmental pressure Reduction of emission to air, soil, water, sound (CAPEX and OPEX) Innovation&Wo rld class prod Europe as most competitive economy Stimulating technological innovation and world class production (R&D expend & CAPEX) Claim position as segment leader Accelerate time-to-market Competitive product offering 2 3 4 Increasing employability of low qualified people Labour & education © PNO CEE 2012 (OPEX) Upgrading Professionalcapabilities of employees 7 Public funding areas Have a look at the hand-outs available to you © PNO CEE 2012 8 FDI trajectory Opportunity/ urgency Orientation/ Business planning Investigate business opportunities Initial awareness: • Location choice Grants/ incentives Decision GO/NO GO Investment preparation Investment realization Prepare for a Safe Landing of your investment 360 finance arrangement Location permits People Financing & Transactions process Landing the investment: location, legal, tax; accounting; payrolling; sourcing Realisation process grants / incentives © PNO CEE 2012 9 Strategic production/R&D location Poland Profile: • • • • Austrian investor; +1000 staff; global producer Global sales Development and production of construction materials Large construction projects Investment project: • Green field operation for production and R&D • Wage advantage (2/3 of W Europe) • Investment in a growth region including Russia, Ukraine • Close to big W European markets © PNO CEE 2012 10 Strategic production/R&D location Poland Challenge: • to apply for the grant before any constructions starts (time spent waiting for an application call) • regional business restructuring to maximise granting opportunities • to comply with grantor requirements, especially on suppliers and contractors selection Result: • €7,2 mln cash granted (40% of the capex) • project realised between June 2009 and Sep 2011 • effective cash received from the grantor €7,05 mln © PNO CEE 2012 11 Strategic expansion production location West Poland Profile: • • • • Dutch investor; multinational, bakery products; In Poland distribution company 1st phase Eur 15 Mln in production lines Biggest market: Germany; Poland expansion market Investment: • Greenfield production location • Wage advantage (2/3 of W Europe) • Investment in a large growth market • Close to biggest W European market © PNO CEE 2012 12 Strategic expansion production location West Poland Challenge: • Find a suitable location in a short time frame • close as possible to its biggest market • close to motorway infra • availability of qualified work force • optimal incentive package Result: • Location selection within 2 months • Matching tax incentive package within 3 months • 50% Tax Benefit on a €15 Mln investment+ option for a 50% expansion. © PNO CEE 2012 13 Summary: why Poland • Excellent entry into Europe • Well educated, skilled and hard working • Competitive FDI grants & incentives for production, R&D and service centers • Part of the world’s largest internal market • Strong performing internal market • Low Corporate Income tax: 19% • Consistently climbing the ranks of Transparency International (now 5.5) © PNO CEE 2012 14 PNO Central and Eastern Europe Poland: PNO Consultants Sp.zo.o Ul. Ostrobramska 75 C 04-175 Warsaw Paul van Kooperen, Managing Partner Mobile: +31(6) 31 975 642 Skype: paul.van.kooperen E-Mail: paul.vankooperen@pnocee.com www.pnocee.com www.greenmulberry.com © PNO CEE 2012 15