POLISH INFORMATION AND FOREIGN INVESTMENT AGENCY

American investment in Poland

Iwona Chojnowska-HaponikDirectorForeign Investment DepartmentWarsaw, June 2, 2011

Source: World Investment Report, UNCTAD 2010

Poland as a major FDI recipient in the region:

Poland attracted ca. USD 11.5 billion in 2009, the highestamount among 12 new EU states

Poland in World Investment Report 2010

According to UNCTAD the key factors attracting FDI to Poland are:

• rapidly expanding domestic market

• size of the domestic market

• flexible & skilled labor force

• high quality/cost ratio

10,3

6,44,4 4,1

10,28,3

15,717,2

10,0 9,867,54

4,5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* I-III 2011

Inflow of FDI in Poland (EUR bn) in year 2000 - 2011

* preliminary data

Source: National Bank of Poland 2011

4,7

4,7

5,2

6,4

8,4

11,1

14,3

20,8

22,9

Great Britain

Austria

Italy

Sweden

USA

Luxembourg

France

Germany

the Netherlands

FDI stock in Poland (EUR bn)

EU 89,7%

Other countries

10,3%

Geographical sources of FDI

Geographical sources of FDI inflow(in EUR bn, cumulative since 1993)

Source: National Bank of Poland 2010

63,576,7

121,1 128,8 136,4

95,4116,4

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009 2010

EUR

bn

Cumulative value of FDI

American investors in Poland

over EUR 8.4 bn of American investment in Poland

EUR 965 m in 2009

751 enterprises with American shareholding (as of the end of 2009)

over 190 000 direct employment created

20 years of US investment in Poland – survey results

98% of American investors assess their investments positively 100% said they would choose Poland again 67% are planning to increase their engagement in Poland Advantages of Poland are:

- location, - workforce- size of local market

Type of operations in Poland

Source: 20 years of American investment in Poland Report

0 10 20 30 40 50 60 70 80 90

Other

R&D

BPO/SSC

Distribution /logistic centre

Plant / factory

Office, sales,marketing

Source: PAIiIZ, 2011

PAIiIZ projects in 2010 and 2011

Completed projects

Active projects

Number Value (m EUR) Planned employmentAll projects 154 5500 36 184

American 36 892 7 841% 23% 16% 22%

2010 2011Number 58 22Estimated value (m EUR) 973,2 818,7New jobs 10 711 5 864Key sectors BPO, machinery, electronics BPO, automotiveCountry of origin US (14 projects), UK, China China, US, Japan

American FDI in 2010 & 2011

GdyniaSONYSector: BPOInvestment : 3 M EUREmployment: 150

Olsztyn

Wrocław

Warszawa

Rzeszów

Środa Śląska

StrykówZabierzów

Jasionka

Poznań

Gorzyce

CIBERSector: BPOInvestment : 2 M EUREmployment: 200

Federal MogulSector: automotiveInvestment : 7,5 M EUREmployment: 20

HPSector: BPOInvestment : 1,2 M EUREmployment: 1 100McKinseySector: R & DInvestment : 1 M EUREmployment: 100

PGWSector: automotiveInvestment : 50 M EUREmployment: 151

SYMANTECSector: R&DInvestment : 0,8 M EUREmployment: 50Citi InternationalSector: BPOInvestment : 0,15 M EUREmployment: 150

Citi InternationalSector: BPOInvestment : 0,07 M EUREmployment: 75

AmwaySector: BPOInvestment : 1,5 M EUREmployment: 200

Hamilton SundstrandSector: aviationInvestment : 21,5 M EUREmployment: 268

Hamilton SundstrandSector: R&DInvestment : 5 M EUREmployment: 150

Goodrich LandingSector: aviationInvestment : 45,7 M EUREmployment: 250

Schweitzer MauditSector: paper-processingInvestment : 18 M EUREmployment: 90

Citi InternationalSector: BPOInvestment : 0,07 M EUREmployment: 75

Łódź

American companies in aviation clusters in Poland

Over 100 years of aviation history and 70 years of aircraft production;

~100 aviation businesses,employing over 23 thousand people;

Manufacturing of: sports, agricultural and training planes, helicopters, gliders, aviation parts and accessories.

PZL-MielecSikorsky

WSK RzeszowPratt&Whitney

Goodrich Krosno Hamilton Sundstrand

Designer and producer of aircrafts and components.

Centers of excellence of high-tech aircraft engine components and final products.

Producer of landing gear components for commercial and military aircraft.

Designer and manufacturer of aerospace systems for commercial, corporate and military aircraft.

Source: Aviation Valley Association; PAIiIZ

Case study - PGW

• Investment project of an American premium glass manufacturing company

• Over 40 green- and brownfield offers provided, 20 sites directly visited

• 6 trips lasting a few days to Poland with up to 10 participants; 8 meetings with foreign investors acting in Poland in search for testimonials

• 3 meetings with HR companies, four meetings with developers, support given from 4 real estate agents

• 8 meetings with utility providers

• 4 Special Economic Zones involved

• 3 high level meetings within the Ministry of Economy

• Final investment destination – Sroda Slaskanear Wroclaw

1 project (approx.150 new work places; > EUR 50 m of capital expenditures)

Greenfield site checkBrownfield site check visit

Sectors of opportunities

• Extraction: shale gas• Energy: nuclear power plant• Business Process Outsourcing / SSC• Research & Development• Aviation• Defence

0,000,200,400,600,801,001,201,401,60

Geogra

phica

l loca

tion

Workforc

e - qu

ality

of ed

ucatio

nSize

of loca

l mark

et

Workforc

e - qu

ality

of pro

fessio

nal s

kills

Availa

bility

of sk

illed w

orkfor

ce

Growth po

tentia

l of th

e eco

nomy

Econo

mical s

tability

Availa

bility

of co

mmercial

/indu

strial

space

Availa

bility

of lo

cal s

upplie

rsPoli

tical

stabil

ity

Source: AmCham, KPMG 2010

Investment attractiveness of Poland –strengths

Source: AmCham, KPMG 2010

Investment attractiveness of Poland –weaknesses

-1,40

-1,20

-1,00

-0,80

-0,60

-0,40

-0,20

0,00

Support fromgovernmentinstitutions

Simpicity of taxsystem Red tape

Quality of railwaysystem

Quality of roadsystem

PZFAPolish American Football

Association(Polski Związek Futbolu Amerykańskiego)

• 3 leagues

• 31 teams

Typical American restaurants:

• Jeff’s

• Friday’s

• American Steakhouse

Not only in the US…

…and at the barbecue time

• Steak

• Anheuser-Busch Beer

Thank you for your attention

00-585 Warszawa, ul. Bagatela 12tel. (+48 22) 334 98 00, fax (+48 22) 334 99 99

e-mail: post@paiz.gov.pl