TRADE AND INVESTMENT PROMOTION AGENCY Zagreb, March 2010.

TRADE AND INVESTMENT PROMOTION AGENCYTRADE AND INVESTMENT PROMOTION AGENCY

Zagreb, March 2010

BASIC INFORMATIONBASIC INFORMATION

CROATIA \ BASIC INFORMATION

Population: 4,441,460

Area: 56,542 km2

Coastlength: 1,777 km

Islands: 1,185

Capital: Zagreb

Language: Croatian

Script: Latin

Currency: Kuna (HRK)

Political system: Parliamentary Democracy

Climate: Mediterranean, Continental

ECONOMYECONOMY

CROATIA \ ECONOMY

2006 2007 2008

GDP per capita (EUR) 7,706 8,452 10.681

GDP growth (%) 4.8 5.6 2.9

Inflation rate (average, %) 3.2 2.9 6,1

Unemployment rate (%, ILO) 11.2 9.5 13,4

Export (EUR bln) 8.3 9.0 10.6

Import (EUR bln) 17.1 18.8 20,8

FDI (EUR bln) 2.7 3.6 2,9

• process of harmonization with EU legislative

• end of negotiations with EU expected by end of 2010

• expected accession: 2012

• process of harmonization with EU legislative

• end of negotiations with EU expected by end of 2010

• expected accession: 2012

• Croatia has become a member of NATO in April 2009

• Croatia has become a member of NATO in April 2009

INTEGRATION PROCESSESINTEGRATION PROCESSES

On the way to EU …

CROATIA \ ECONOMY AND INTEGRATION PROCESSES

• Croatia was a non-permanent member of UN Security Council 2008/2009

• Croatia was a non-permanent member of UN Security Council 2008/2009

FOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENT

CROATIA \ FOREIGN DIRECT INVESTMENT

Foreign direct investment 1993. – Q3 2009. 23,6 billion EUR

101,0 92,8 79,1 382,1 480,2

849,7

1.362,9 1.140,6

1.467,5 1.137,9

1.762,4

949,6

1.467,9

2.764,8

3.670,2

4.190,2

1.699,2

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1. , 2. i 3. tr. 2009*

TOP 5 INVESTOR COUNTIRESTOP 5 INVESTOR COUNTIRES (1993 – Q3 2009, EUR)

1. AUSTRIA1. AUSTRIA 6.29 bln

2. 2. NETHERLANDSNETHERLANDS 4.12 bln

55. . FRANCE FRANCE 1.36 bln

3. GERMANY 3. GERMANY 2.70 bln

4. HUNGARY4. HUNGARY 2.12 bln



FDI PER CAPITA (EUR), 2008


290,2

370,6

405,7

413,5

438,4

444,3

619,0

712,1

810,0

934,0

1.018,7

Poland

Lithuania

Latvia

Romania

Hungary

Slovak R.

Slovenia

Czech R.

Bulgaria

Croatia

Estonia

FDI PER CAPITA (EUR), 1993 – 2008


2.133

2.906

2.949

3.474

3.751

4.428

4.490

5.315

5.595

6.834

8.695

Romania

Lithuania

Poland

Latvia

Slovenia

Bulgaria

Slovak R.

Croatia

Hungary

Czech R.

Estonia

CROATIA \ WHY INVEST IN CROATIA?

WHY INVEST IN CROATIA?WHY INVEST IN CROATIA?

EXPORT JUMPSTATION!EXPORT JUMPSTATION!

access to EU market of 500 milion people

trade aggrement signed with EU since february 1st 2005

INFRASTRUCTUREINFRASTRUCTURE

Railway network is constantly being improved with major project on the way Rijeka-Botovo (Hungary)

Developed Natural Gas pipeline puts Croatia at the top among EU countries

100% digitalized telecom network and high penetration rate of broadband Internet places Croatia among countries with most modern ICT infrastructure

Croatia has one of the densest highway network per total surface in SEE (km/km2)Three major PAN-EUROPEAN corridors pass through Croatia

CROATIA \ WHY INVEST IN CROATIA?

LNG TERMINAL - OMIŠALJ

Environmental impact study Project documentation Tender 2009 15 billion cubic meters End: 2014

Environmental impact study Project documentation Tender 2009 15 billion cubic meters End: 2014

Investment size: 1 bln.Eur Investment size: 1 bln.Eur (including Pipeline 150-200 mil. (including Pipeline 150-200 mil. EUR)EUR)

Investment size: 1 bln.Eur Investment size: 1 bln.Eur (including Pipeline 150-200 mil. (including Pipeline 150-200 mil. EUR)EUR)

LNG TERMINAL - OMIŠALJ

INVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIES

• over 300 business zones ready for investment• over 300 business zones ready for investment

• ICT, R&D and BIOtechnology• ICT, R&D and BIOtechnology

• Strategic Business support services • Strategic Business support services

• Manufacturing – Car Industry• Manufacturing – Car Industry

CROATIA \ INVESTMENT OPPORTUNITIES

• Distribution & Logistics • Distribution & Logistics

• Tourism• Tourism

BUSINESS OPPORTUNITIESBUSINESS OPPORTUNITIES

final products in manufacturing industry:wood industry – furniture and parquetry made of Croatian oak and beech trees

marine and shipbuilding industry

automotive and transport industry – automobile parts such as electronic and non-electronic parts, tires etc

medicine equipment and pharmaceutical products

food and beverages

construction and development

energy sector – investment in renewable energy sources and power equipment like electro motors and transformers

transfer of technology and know-how

logistics and distribution – seaports

tourism

CROATIA \ BUSINESS OPPORTUNITIES

CROATIA offers business cooperation, especially in the following areas:

INVESTMENT IN TOURISMINVESTMENT IN TOURISM

CROATIA \ INVESTMENTS IN TOURISM

1. Investment in State owned shares Sale of state owned shares in 17 tourist companies – Croatian Privatization Fund

2. Investment in State owned real estate Projects of reconstruction of military bases into hotel resorts – Club Adriatic Reconstruction of military ports into marinas Project Brijuni Riviera, Istria Project Park Prevlaka, Dubrovnik region

3. Investment in real estate owned by municipalities Project Posedarje Pašman Riviera Project – Island of Pašman Other projects

4. Investment in development of golf courses 50 potential locations for golf course development on privately and State-owned land

POTENTIAL INVESTMENT POTENTIAL INVESTMENT IN TOURISMIN TOURISM

HOTEL MEDENA in TROGIR

•Investment Project by Croatian Privatization Fund•Capacity: Main buildings A and B (611 rooms, 8 suites;1266 beds total), pavilion C (60 rooms), pavilion D (40 rooms)•Estimated value: € 37 mln

HOTEL MEDENA in TROGIR

•Investment Project by Croatian Privatization Fund•Capacity: Main buildings A and B (611 rooms, 8 suites;1266 beds total), pavilion C (60 rooms), pavilion D (40 rooms)•Estimated value: € 37 mln

PODGORA HOTELS d.d. in MAKARSKA RIVIERA

Investment Project by Croatian Privatization Fund

Capacity: 9 suites, 546 rooms; totaling 1062 beds

Estimated property value: € 41 mln

PODGORA HOTELS d.d. in MAKARSKA RIVIERA

Investment Project by Croatian Privatization Fund

Capacity: 9 suites, 546 rooms; totaling 1062 beds

Estimated property value: € 41 mln

HOTEL HRVATSKA in Baška Voda, MAKARSKA

RIVIERA

• Investment Project by Club Adriatic d.o.o.

• Capacity: 128 double rooms and 8 appartements

HOTEL HRVATSKA in Baška Voda, MAKARSKA

RIVIERA


• Capacity: 128 double rooms and 8 appartements


HTP KORČULA d.d. in Island of Korčula

•Investment Project by Croatian Privatization Fund

•Capacity: 5 hotels with total of 1 751 beds

•Estimated property value: € 40 mln

HTP KORČULA d.d. in Island of Korčula

•Investment Project by Croatian Privatization Fund

•Capacity: 5 hotels with total of 1 751 beds

•Estimated property value: € 40 mln

MODRA ŠPILJA d.d. in Island of Vis

• Investment Project by Croatian Privatization Fund

• Capacity: 131 rooms

• Estimated property value: € 9 mln

MODRA ŠPILJA d.d. in Island of Vis

• Investment Project by Croatian Privatization Fund

• Capacity: 131 rooms

• Estimated property value: € 9 mln

Holiday Resort “Perla“ and “Orebić“ Hotel

in Pelješac Peninsula

•Investment Project by Club Adriatic d.o.o.

•Capacity: 5 appartements, 281 double rooms

Holiday Resort “Perla“ and “Orebić“ Hotel

in Pelješac Peninsula

•Investment Project by Club Adriatic d.o.o.

•Capacity: 5 appartements, 281 double rooms

Camp Uvala Slana in Selce


• Capacity: 230 camp sites

Camp Uvala Slana in Selce


• Capacity: 230 camp sites


ŽIVOGOŠĆE HOTELS d.d. in Makarska Riviera

•Investment Project by Croatian Privatization Fund• Capacity: Hotel Nimfa (155 rooms); Buildings

Licinijan, Pelagija, Suzina and Pokrivenica (136 rooms);

• Hotel Punta (132 rooms, 14 bungalows with 39 apartments);

• Auto-camp Dole 50 camping spots)•Estimated property value: € 34 mln

ŽIVOGOŠĆE HOTELS d.d. in Makarska Riviera

•Investment Project by Croatian Privatization Fund• Capacity: Hotel Nimfa (155 rooms); Buildings

Licinijan, Pelagija, Suzina and Pokrivenica (136 rooms);

• Hotel Punta (132 rooms, 14 bungalows with 39 apartments);

• Auto-camp Dole 50 camping spots)•Estimated property value: € 34 mln

CROATIAN AUTOMOTIVE CROATIAN AUTOMOTIVE INDUSTRYINDUSTRY

“We expect a recovery in our industry. Inside the 300 km circle around Zagreb there will be a production of one million cars per year until 2012. For this reason we are making contacts and establishing cooperation with

companies in a country that is exactly in the middle of that huge

anticipated production.”

Mr. Hubert Hödl, Vice President Marketing & Business Development, Magna International Inc.


Production of Motor Vehicles, Trailers and Automotive Parts Total Income

2002 2003 2004 2005 2006 2007

Total income in EUR (millions) 143.8 171.5 186.0 201.0 227.0 260.0

% change 67% 19% 9% 8% 13% 15%

Total income of the Croatian automotive industry has shown double digit growth rates

100

150

200

250

300

2002 2003 2004 2005 2006 2007


AUTOMOTIVE INDUSTRY STRUCTURE

CN Code 2004 2005 2006 2007 2008

Chassis fitted with engines, for motor vehicles

164 593 1474 882 4168

Bodies for the motor vehicles 19,672 47,333 7,935 132,929 245,921

Parts and accessories of the Motor vehicle (thousands)

91,122 115,397 111,411 154,328 178,441

Total (thousands) 91,142 115,445 111,421 154,462 178,691

Indices 139,3 126,7 96,5 138,6 115,7

Motor wehicle manufacture

Bodies, trailers and semi trailers

Motor wehicle parts and equipment manufacture


COMPANIES IN AUTOMOTIVE INDUSTRY IN CROATIA

2004 2005 2006 2007

Number of companies in automotive industry 60 67 69 74

Number of employees 3,041 3,135 3,155 3,565

Founded in 2006 with headquarters in Zagreb Cluster members – producing, engineering & developing companies in the automotive sector Total Employment: 2.000+ Employees Total Turnover 2007: 105 Mio. EUR Exports – 90% to the Western European countries/regions


CONCEPTS AND INNOVATIVE PRODUCTS

• Croatian company DOK-ING project

• Complete design and development of an Electric engine

• Electromotor produced by TEMA, a croatian company

• Test drive held in March 2010

ENERGY DEVELOPMENT STRATEGY

3 FUNDAMENTAL ENERGY GOALS

SECURITY OF THE ENERGY SUPPLY

ENERGY SYSTEM COMPETITIVENESS

SUSTAINABLE ENERGY DEVELOPMENT

DIRECTIVE EU 2001/77/WC

MANDATORY SHARE OF RES IN TOTAL EN. CONSUMPTION

EMISSION REDUCTION – KYOTO PROTOCOL

ENVIRONMENTAL PROTECTION

REDUCTION OF IMPORT DEPENDENCY

EMPLOYMENT AND DEVELOPMENT OPPORTUNITIES


OBLIGATIONS by 2020:

greenhouse gas emissions cut by 20%

20% of total energy consuption from renewable sourcess

increase energy efficiency by 20%

10% of biofuels in petrol and diesel fuel in total transportation cunsumption

35% of electrical energy production from ROI(including large hydro power plant)

CO2 emissions pcc



Goals by 2020 – 1,545 MW from Renewable Energy Sources

1200 MW FROM WIND MILLS 140 MW FROM BIOMASS ENERGY PLANTS 100 MW FROM SMALL HYDRO-POWER PLANTS 45 MW FROM SOLAR POWER PLANTS 20 MW FROM GEOTHERMAL POWER PLANTS 40 MW FROM THERMAL ENERGY PLANTS USIING COMMUNAL WASTE

REALIZED PROJECTS

By March 1st 2009 a total of 287 requests have been received :

164 wind farm 63 small-scale hydro-power

plant 29 solar power plant 10 biomass 8 cogeneration

020406080

100120140160

NUMBER OF REQUEST

wind

hydro

solar

biomass

cogeneration

Wind Park Krtolin 11.95 MWWPD Germany

REALIZED PROJECTS

2 600 hours of sunshine per year on the Croatian coast provide ideal conditions

OPPORTUNITIES

INSOLATION MAP

Photovoltaic Solar System Performance Calculator

http://oie.pondi.hr/

GEOTHERMAL FIELDS

The biggest geothermal fields in the Republic of Croatia

The Energy Act 5 sub-Acts - since July 1st 2007

Define:Define: Right to incentives (feed-in tariff) Compulsory purchase of electrical energy from

RES The operator (HROTE) has an obligation to connect

the client to the network Process of acquiring the status of the eligible

producer

OPPORTUNITIES

Special support for:

Manufacturing activities

Technology and R&D Centres

Strategic and Business Support Services

INVESTMENT INCENTIVES

ABOUT ABOUT TIPATIPA(Trade and Investment (Trade and Investment

Promotion Agency)Promotion Agency)

Established by Croatian Government

Project managers at your disposal 24/7

One-Stop shop for investors

Our professional service is free of charge

Propose measures to enhance the business environment

CROATIA \ APIU

TIPATIPASERVICESSERVICES

LABOUR MARKET MONITORA unique place of information about the workforce in Republic of Croatia that provides an insight into the labour legislative through a simple and structured interface and allows investors to make estimations of workforce availability and cost.

LABOUR MARKET MONITORA unique place of information about the workforce in Republic of Croatia that provides an insight into the labour legislative through a simple and structured interface and allows investors to make estimations of workforce availability and cost.

BUSINESS ZONES DATABASEDatabase of more than 200 business zones accross the country, consisting of all data for investors such as available land, cost, legislative, incentives, infrastructure, geographical position, operational cost, etc.

BUSINESS ZONES DATABASEDatabase of more than 200 business zones accross the country, consisting of all data for investors such as available land, cost, legislative, incentives, infrastructure, geographical position, operational cost, etc.

INCENTIVE CALCULATORIncentive calculator was developed by APIU to provide an additional service for potential investors. Through online calculator investors can instantly calculate the amount of incentives granted on the basis of Investment incentive act.

INCENTIVE CALCULATORIncentive calculator was developed by APIU to provide an additional service for potential investors. Through online calculator investors can instantly calculate the amount of incentives granted on the basis of Investment incentive act.

TIPA ASSISTS!• prior, during and after realization of investment projects• in getting promptly all needed administrative licences• with gaining access to state and local incentives• in creating added value for projects

TIPA ASSISTS!• prior, during and after realization of investment projects• in getting promptly all needed administrative licences• with gaining access to state and local incentives• in creating added value for projects

TIPA NETWORKS!• government bodies• local and regional institutions• TAX, financial, and legal advisors• utility companies

TIPA NETWORKS!• government bodies• local and regional institutions• TAX, financial, and legal advisors• utility companies

OUR SERVICESOUR SERVICESTIPATIPA SERVICES SERVICES

CROATIA \ APIU SERVICES

TIPA PROVIDES!• information about economic and legal investment environment• guidance through free zones and industrial parks• database of available land and property• organized site visits tailored to meet investors’ needs

TIPA PROVIDES!• information about economic and legal investment environment• guidance through free zones and industrial parks• database of available land and property• organized site visits tailored to meet investors’ needs

THANK YOU!THANK YOU!

ContactConsulate General of Croatia in Chicagoat 1 312 482 9902 or

Trade and Investment Promotion Agency @

www.apiu.hrPhone:+385 (0)1 4866 000+385 (0)1 4866 001

Fax:+385 (0)1 4866 009

Address:A. Hebranga 34/10000 ZagrebCroatia

TRADE AND INVESTMENT PROMOTION AGENCY Zagreb, March 2010.

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Transcript of TRADE AND INVESTMENT PROMOTION AGENCY Zagreb, March 2010.