Romania Your Business Partner 2012

1. Romania
y o u r b u s i n e s s pa r t n e r f o r 2 0 1 2

2. Romania — Your Business Partner for 2012 Credits Merry Cemetery, Săpânţa

3. Romania 04 Infrastructure 16
Your partner for global business Building the roads for success
/01 /11
Understanding busineSs 06 Romania's global rating 17
/02 /12
Romania worth talking about, 07 Leading sectors 18
a solid partner Engineering for the future
/03 /13
/01 Automotives 18
Reforming for the future 08 Delivering performance for world class business
/04 /02 IT&C 22
The IT solutions for global business
Romania's investment policy 09 /03 Green Energy 24
/05 Reshaping for a better tomorrow
/04 Oil & Gas Industry 26
FDI at a glance 10 Turning black gold into profit
/06 /05 Pharmaceutical Industry 28
Our contribution to a healthier world
Romania trade policy 11 /06 Telecom Sector 30
A common European approach /07 Creative Industries 31
/07 Next pro within the highly competitive world of global business
/08 Food & Beverages 32
Fiscal consolidation & 13 Excellence in quality
taxation /09 Tourism 34
/08 Explore the Carpathian Garden
/10 Aeronautics 38
Workforce 14 Tradition in empowering innovation
/09 /11 Shipyards 40
A safe navigation
Driving innovation & 15 /12 R&D 41
productivity A passion to learn and perform
A path to Europe 2020 and beyond
/10 Romania in a nutshell 42
/14
Table of Contents 02 — 03

4. 01
Romania
Your partner for global business
Great market potential
›› The largest market in South Eastern Europe;
›› The 2nd largest market in Central and Eastern Europe;
›› One of the biggest domestic markets in the European Union
(the 9th in EU in terms of size and 7th largest market among the
EU Member States whose stable population exceeds 19 million
inhabitants);
›› Access to the Black Sea region — one of the fastest growing
and one of the largest economic areas outside Asia (300 million
consumers).
Strategic location
›› At the crossroads of three major markets: the European Union,
the Community of Independent States and the Middle East;
›› Crossed by three important pan — European corridors: no. 4
(links Europe from West to East), no. 9 (from North to South)
and no. 7 (inland water transportation on the Danube river).
Romania — Your Business Partner for 2012

5. ›› EU membership
›› Market gateway to one of the major single markets worldwide
(access to approximately 500 million consumers).
›› Extensive maritime and river navigation facilities
›› 1/3 of the Danube river;
›› Over 200 km of the Black Sea shore;
›› Largest and deepest port at the Black Sea — Constanța Harbour.
›› NATO membership — stability factor in the area
›› Member of the UN and other international organizations, like:
IMF, WB, OSCE, WTO
›› As EU Member State, Romania has/enjoys free trade relations
with an important number of countries or groups of countries,
including EFTA, CEFTA and Mediteranean countries; other free
trade agreements are currently under negotiation by the EU
04 — 05

6. 02
Understanding
business
›› Biggest GDP in South Eastern Europe;
›› South Eastern Europe regional leader for attracting FDI, including
Greenfield investment projects;
›› Ranking 1st among European countries in terms of internet
connection speed and the 2nd worldwide;
›› 1st in the EU in terms of total investment share in GDP (24.6%);
›› Fastest growth rate in terms of number and quality of IT
specialists in the region;
›› One of the most important software producers in Eastern Europe
and a top IT outsourcing service provider worldwide;
›› Resources to become the top gold producer in Europe;
›› Supporting R&D activities
›› Largest Renault R&D centre outside France;
›› Scientific and technological parks for: IT&C, nanotechnology,
microelectronics, bio-technology, micro-electronics & engineering;
›› Over 50 centres and "incubators" for technological transfers and
related business.
›› Strong base for manufacturing
›› More than 50 industrial parks all over the country;
›› Automotive hub in the region;
›› Sound industrial input;
›› One of the lowest operational costs in the region;
›› Romania fosters top international players: Renault, Ford,
Continental, Pirelli, Michelin, Bosch, Siemens, Oracle, IBM,
Ericsson, Microsoft, OMV, Saint Gobain, Procter&Gamble,
Lafarge etc.
Romania — Your Business Partner for 2012

7. 03
Romania worth
talking about,
a solid partner
›› Free market economy;
›› Business hub for the rest of South Eastern Europe;
›› Centre of clear competencies in the high—technology based
global market;
›› Top destination for relocation and outsourcing, with many certified
specialists in niche sectors;
›› Financial support for business development and further growth;
›› Friendly business climate designed to encourage entrepreneurship;
›› Access to Western Europe through the Rhine—Main—Danube
canal;
›› Significant tourism potential;
›› Enormous reservoir of educated talent, earning kudos for quality
work from foreign and domestic managers;
›› Cost—effective fiscal policies, encouraging entrepreneurship,
corporate investments and business initiative;
›› Low inflation rate;
›› Rich in natural resources, including agricultural land & significant
mineral deposits.
06 — 07

8. 04
Reforming for
the future
›› Newly amended Labour Code for enhanced flexibility of the
labour market
›› Monetary policy
›› Reducing the key interest rate from 10.25% in January 2009 to
5.25% in March 2012;
›› Achievingprice stability and ensuring a low volatility of the
exchange rate.
›› Extended legal framework for enhancing public-private partnerships
›› Comprehensively simplified procedures for concluding PPPs;
›› Facilitating cooperation between public authorities and private
investors.
›› Supporting business hubs for international entrepreneurs
›› Cutting red tape for facilitating access to EU funds
›› Accelerated procedures and increased transparency;
›› Introduction of non—deductible VAT eligibility for projects as of
2012.
›› One of the highest ratios between public investments and GDP
in the EU.
Romania — Your Business Partner for 2012

9. 05 the actual implementation of the investment;
›› Assistance with the selection of an optimal site/location, based
Romania's
on the technical requirements of the investment project;
›› Assistance in organizing a visit to the industrial site and with
investment
establishing local contact meetings;
›› Liaising with local and/or governmental institutions on behalf of
policy
the foreign investors;
›› Up to date information on current legislation;
›› Networking with potential partners;
›› Assistance in identifying local suppliers for the investment;
›› The Romanian legislation supports foreign investments ›› Host to the Romanian National Contact Point (RNCP), aiming
›› National treatment; at encouraging the observance of the OECD Guidelines for
›› Foreign investment allowed in all sectors of the economy; Multinational Enterprises and related information dissemination
›› Possibility to freely manage the company with full ownership rights; within the business communities and others interested parties.
›› Full repatriation of capital and profits;
›› Protection against expropriation and nationalization; ›› State aid schemes supporting investment
›› Access to incentives and funds provided by the EU and the ›› State aid available for various investment categories and sectors:
Romanian legislation. ›› Investments between 5 and 10 million Euro & that create minimum 50 new jobs;
›› Investments between 10 and 20 million Euro & that create minimum 100 new jobs;
›› Romania is a signatory of the OECD Declaration on International ›› Investments between 20 and 30 million Euro & that create minimum 200 new jobs;
Investments and Multinational Enterprises (since 2005) ›› Investments over 30 million Euro & that create minimum 300 new jobs;
›› Principles guiding investment ›› Investments over 100 million Euro, with eligible investment costs over 50 million
›› Equality of treatment; Euro & that create minimum 500 new jobs;
›› Transparency; ›› Investments concerning activities of electric and thermal energy production and
›› Efficient use of incentives; consumption;
›› Confidentiality; ›› Investments for harnessing renewable energy resources;
›› Eligibility criteria: sources of the financing funds. ›› Investments in industrial parks;
›› Investments in research, development and innovation etc.
›› One-stop-shop for foreign investment: the Romanian National ›› Support via grants, tax exemptions, green certificates generating
Contact Point (RNCP) income when traded on the green certificate market;
›› Government's leading body under the direct coordination of the ›› Aid intensity reaching 40% or 50% of the total eligible expenditure,
Prime Minister; on the region where the project is implemented in Bucharest —
›› Attracting significant foreign direct investments. Ilfov region, or in one of the other seven development regions in
Romania;
›› Support from the Romanian Center for Trade and Investment ›› Possibility of these aid intensity limits to increase by 20% in
Promotion case of small-sized and micro enterprises and by 10% in case of
›› Specialized assistance to foreign investors before, during & after medium-sized enterprises.
08 — 09

10. 06 ›› 3rd largest inward FDI recipient in Central and Eastern Europe;
›› One of the most investment—conducive countries in the region;
›› Fitch rating agency: Romania included in the "investment grade"
FDI at a glance category;
›› FDI stock exceeding 53 billion Euro since the '90s;
›› Industry — 43% of the FDI bulk
›› Manufacturing — 32%
›› Oil processing, chemicals, rubber and plastic products 7%
›› Metallurgy 5.3%
›› Means of transportation 4.9%
›› Electricity, natural gas and water 7.4%
›› Financial intermediation and insurance 19.1%;
›› Trade 12.4%.
Romania — Your Business Partner for 2012

11. 07 ›› Bilateral Trade Agreements (Korea, ASEAN, India, Canada, Central America,
Andean Community, Ukraine, Euromed, Mercosur, Gulf States, Libya, China);
Romania trade
›› WTO Multilateral Negotiations (Doha Development Agenda);
›› Unilateral dimension;
policy
›› Standard Generalized System of Preferences (GSP), Generalized System of
Preferences+ (GSP+), Everything But Arms (EBA);
A common European approach ›› Trade Defense Instruments: anti-dumping, anti-subsidy, safeguard measures;
›› Strengthen relations with strategic partners: USA, China, Russia,
Japan, India, Brazil;
›› Enforce EU rights, tackling barriers to trade.
›› Goals
›› Create a global system for fair and open trade;
›› Access markets for European companies, their workers and
investors;
›› Ensure that WTO obligations are complied with and international
trading rules respected;
›› Ensure that trade represents a pillar of strength for sustainable
development.
›› Tackling the European Common Trade Policy ›› Romania – International Trade 2011 at a glance
›› EU membership (as of 1st January 2007) — therefore subject to ›› Export of goods: 45 billion Euro (+28.5% & +20.5% y-o-y
the EU Common Trade Policy; growth rate 2009—2011);
›› Subject to the EU Customs Code and the EU regulations in the ›› Export structure (percentage breakdown): vehicles and transport
field; equipment (41.2%); other manufactured goods (33.4%); raw
›› WTO founding member; materials (7.2%); food, beverages & tobacco (6.4%); chemicals
›› Supporting strong multilateral trading system & trade liberalization (6.3%); fuel & lubricants (5.5%).
worldwide; ›› Import of goods: 54.7 billion Euro (+20.4% & +16.7% y-o-y
›› European Commission — collective negotiating body for relevant growth rate 2009—2011).
international trade—related measures, including with the WTO; ›› Import structure (percentage breakdown): vehicles & transport
›› Aiming to overcome the current economic turndown through equipment (34.6%); other manufactured goods (30.6%);
trade development; chemicals (13.2%); fuel & lubricants (11.3%); food, beverages
›› Globally more than 200 Foreign Trade Agreements; & tobacco (6.8%); raw materials (3.5%);
›› EU covering more than 35% of the global trade. ›› Projected growth rate of export and import over 50% by 2015.
›› EU common agenda
›› Pursue active negotiating agenda
10 — 11

12. Top 10 export markets
18.8% Germany 12.9% Italy 7.5% France 6.1% Turkey 5.6% Hungary 3.6% Bulgaria 3.2% Great Britain 3.1% Netherlands 2.5% Spain 2.4% Poland
Top 10 import suppliers
17% Germany 11.4% Italy 8.7% Hungary 5.8% France 4.7% China 4.1% Kazakhstan 4% Poland 4% Austria 3.9% Russia 3.5% Turkey

13. 08
Fiscal
consolidation &
taxation
›› Diminishing the fiscal burden;
›› One of the EU highest drops in labour taxation (above 8%) since
2000;
›› Reducing the number of taxes and tax—related tariffs from 491 in
2008, to 254 at the moment.
›› Transfer pricing procedures according to the EU and OECD
regulations;
›› Long—term stability due to domestic fiscal system harmonized with
the "acquis communautaire";
›› One of the lowest levels of EU sovereign debt as percentage of GDP
(34%) against the European average (82.5%);
›› The possibility to carry the fiscal losses further, up to 7 years;
›› Accelerated depreciation for equipment, installations, machines;
›› Exemptions from the payment of taxes on buildings and land applied
by local councils in Romania on the basis of state aid schemes;
›› Fiscal incentives for R&D: additional deduction of 20% from the
eligible expenses for research and development activities.
›› Taxation
›› 16% flat tax;
›› 24% VAT standard rate;
›› 9% VAT reduced rate for medicines, books, hotel accommodation,
museum and cinema tickets etc.;
›› 5% VAT reduced rate applied to supplies of social housing;
12 — 13

14. 09
Workforce
›› 10 major university centres;
›› 106 universities, 631 faculties;
›› 125,000 university graduates per year;
›› Young population — more than 50% under 40 years old;
›› Availability of technical engineers;
›› Flexibility, reduced language and cultural barriers;
›› Highly skilled workforce at competitive prices — 2nd lowest in the EU;
›› Extensive industrial experience;
›› High percentage of technically skilled professionals.
Romania — Your Business Partner for 2012

15. 10
Driving
innovation &
productivity
A path to Europe 2020 and beyond
Horizon 2013
›› Integrating the sustainable development principles and practices in
Romania's programs and public policies;
›› Maintaining a business environment conducive for supporting inward
FDI, technological upgrading and processes renewal;
›› Increasing the competitiveness of the Romanian economy by
promoting innovation;
›› Driving Romania's research outcome among the top players
worldwide;
›› Reducing by 8% the greenhouse gas emissions.
Horizon 2020
›› 20% of the total energy consumption from renewable sources;
›› 20% reduction of the greenhouse gas emissions;
›› Accelerating the service sector development up to 60% of GDP
growth;
›› Relying heavily on knowledge management.
Horizon 2030
›› Reaching the average level of the EU countries with regard to the
sustainable development indicators;
›› Extensive use of clean technologies for power production and heating;
›› Romanian society and economy based on knowledge and creative
industries.
14 — 15

16. 11
Infrastructure
Building the roads for success
›› Main priority of the Executive;
›› High potential for growth;
›› Sea port infrastructure development for becoming the EU
Eastern Sea Gate;
›› Bypassing the congested cities through a national program of
ring roads;
›› Enhanced legal framework for improving access to PPP / ›› Roads
concessions; ›› Total road length of 198,930 km;
›› EU funds of over 4,5 billion euros for highway construction and ›› Total national road length of 15,680 km;
rail rehabilitation; ›› National highway network in use — 390 km;
›› Coordinates together with Austria the EU Strategy for Danube ›› over 400 km of highways under construction, while other
region in order to improve navigation conditions on the Danube contracts for about 140 km await public bidding;
river. ›› Two pan—european corridors on road: IV and IX. The road
network included in the TEN-T amounts to 3,511 km, reaching
›› Rail 7,283 km after 2014.
›› 10,776 km length, 2,909 km double lines and 4,002 km
electrified lines; ›› Ports & Airports
›› 3,153 km are already on the Trans European Transport Network ›› Extensive network of 15 airports (out of which 12 international
TEN-T, reaching 4,496 km from 2014 after the TEN-T revision; airports);
›› national freight company will have a majority privatization this ›› Airport infrastructure development, including areas with significant
year; tourist activity;
›› Under the EU rail acquis rule; ›› Largest and deepest port at the Black Sea — Constanţa Harbour;
›› Network density equal to the EU average; ›› 10 ports: 2 Black Sea ports and 8 ports to the Danube river.
›› Two Pan—European Transport Network (TEN-T) rail corridors:
Corridor IV and IX.
Romania — Your Business Partner for 2012

17. 12
Romania's
global rating
›› Fitch rating agency
›› Upgraded Romania's investment rating up to BBB+;
›› "Investment grade" category, translating into low risk for investment;
›› Outlook for long—term foreign currency loans upgraded to
"BBB-", as the prospect for long—term ratings is stable.
›› AT Kearney
›› Romania is attractive for global services: 25th among 50 countries
worldwide (2011).
Opportunities — PPP priority projects
›› Road infrastructure ›› Romania ranks 10th within Ernst & Young "Renewable Energy
›› Comarnic—Braov highway — under concession; Country Attractiveness Indices 2012" report
›› Sibiu—Piteti Highway — 116 km; ›› Bucharest is considered one of the best European business
›› Ploieti—Buzău—Focani Highway — 133 km; destinations by Cushman & Wakefield's "European Cities
›› Târgu Mure—Iai—Ungheni Highway — 307 km; Monitor 2011"
›› Bucharest South Beltway & North Beltway; ›› Ranking 1st in terms of expenses on labour force;
›› Energy ›› Ranking 2nd in terms of office space availability;
›› Tarniţa—Lăputeti Hydroelectric Power Plant; ›› Ranking 4th in terms of the evolution of the office surface prices.
›› Reactors 3 & 4 — Cernavoda Nuclear Plant;
›› Doiceti Steam Power Plant; ›› Romanian companies dominate the 4th issue of Top 100
›› AGRI International Project — Azerbaijan—Georgia—Romania gas companies in South Eastern Europe in terms of revenues in 2010
interconnector; according to SeeNews, AT Kearney & Euromonitor International.
›› Environment ›› OMV Petrom Group ranks 1st in terms of total revenues with a
›› Siret—Bărăgan Canal layout; turnover of 3,627 billion Euro;
›› Regional infrastructure ›› BCR Erste Bank ranks 1st in terms of net profit with 170 million
›› Eco Project in Ghencea District; Euro and with over 16 billion Euro in assets;
›› Esplanada Project; ›› The Romanian companies in the South Eastern Europe Top
›› Danube­—Bucharest Canal; 100 account for 40 billion Euro in the overall 87.4 billion Euro
›› Danube bridge between Brăila and Tulcea. revenues.
16 — 17

18. Leading sectors
Engineering for the future
13/ 01
›› R&D in automotive sector
Automotives ›› SEE key player regarding R&D activities in automotive sector;
Delivering performance ›› Largest Renault R&D centre outside France, with over 2,300
engineers — design and vehicles improvement, engine and
powertrain adaptation;
›› Long tradition, started with the development of the automotive
industry in the 1960's;
›› The 4th largest vehicle manufacturer in CEE; ›› Academic research in 11 technical universities;
›› Major automotive industry regional hub in SEE; ›› Major players in private research: Renault, Continental, Siemens,
›› The 2nd global car producers: Renault, Ford; Ina Schaeffler.
›› Growing automotive clusters: more than 500 automotive industry
suppliers; ›› Investment support
›› Steady automotive industry with a modern and diversified supplier ›› State aid for SMEs and large investments;
network; ›› Fiscal incentives;
›› EU membership and proximity to the main European markets; ›› Employment and training;
›› 9 billion Euro contribution to Romania's GDP (2010); ›› Additional deduction of 20% from the eligible expenses from
›› Over 50 years of automotive tradition, mainly geared towards R&D activities;
exports; ›› Rabla program ("Cash for Clunkers"), including electric and
›› Qualified labour force and competitive operational costs; hybrid cars since November 2011.
›› 4.5% overall vehicle production growth (2011 vs. 2010);
›› 8.0% forecast total output growth forecasted for 2012;
›› 9.1% forecast total output growth forecasted for 2013;
›› Talent pool: 11 technical universities;
›› Highly vertically integrated domestic automotive industry;
›› Strategic geographical location: connection between the Black,
Caspian and Mediterranean Seas;
›› Access to the EU markets and to Europe, Middle East and Africa
region (EMEA).
Romania — Your Business Partner for 2012

19. “ Our investments here started with the purchase of Mioveni plant in 1999.
The success of the Logan model, the development of the suppliers' network and
the quality of the human resources made us go further and create here a styling
Romania is now the second country of Renault. But for France, Romania is the
only country where all the know—how of a car manufacturer is to be found.
We developed here all the global function for conceiving, manufacturing and
studio, a complete engineering center, a center for design and manufacturing of selling cars.
stamping tools and the one of the biggest spare part warehouse of the Group. Romania is one of the pillars of Renault and we continue to invest here.
Jérôme Olive General Manager, Renault Group in Romania 18 — 19

20. Major players
Automotive components — 7.5 billion Euro investment inflows, to increase up to 9—10 billion Euro by 2012;
Electric & electronic Plastic & rubber
systems components
›› Lisa Draxlmaier ›› Baumeister & Ouslet
›› Delphi Packard ›› Solvay-Inergy, Phoenix AG
›› Kromberg & Schubert ›› Dow Automotives
›› Alcatel ›› AD Plastik
›› Lear Corporation ›› Simoldes Plasticos
›› Alcoa Fujikura Inc. ›› BOS Automotive
›› Leoni Wiring Systems ›› Hutchinson
›› Sumitomo Electric Wiring Systems
›› Yazaki Corporation Gear boxes
›› Valeo ›› Renault
›› Siemens Automotive ›› Daimler Chrysler
›› Ruwel AG ›› DCI Wallbridge
›› Schneider & Oechsler International ›› Star Transmission
›› Marquardt Schaltsysteme
›› Coficab Tires
›› Continental
HVAC systems ›› Michelin
›› Continental ›› Pirelli
›› Valeo
›› Calsonic Steering Wheels
›› Kansei ›› Takata Corporation
›› Eybl International AG
Exhaust systems ›› Momo
›› Borla ›› Magneto Wheels
›› Honeywell ›› Koyo Seiko
›› Garett ›› SNR Roulments
›› Ina Schaffler
Seating ›› Thyssen
›› Johnson Controls ›› Krupp
›› Faurecia ›› Auto Chassis International
›› Coindu ›› Dura Automotive System
Romania — Your Business Partner for 2012

21. Car producers
Renault
›› Over 10 years of presence in Romania;
›› 1.7 billion investments;
›› 18,000 employees;
›› 130,000 indirect jobs;
›› 4 million cars;
›› Logan, Sandero, Duster;
›› 80% cars exported;
›› Related projects
›› Gear boxes facility of 214 million Euro of the
Renault—Nissan Alliance;
›› R&D Centre "Renault Tehnologie Roumanie":
450 million Euro.
Ford
›› September 2007: the former factory of Daewoo
acquired by Ford;
›› 1.2 billion Euro pledged investments (2011—2012);
›› B Max model to be launched and produced in 2012;
›› 90% of production to be exported;
›› 3,500 employees; up to 5,000 until 2015.
20 — 21

22. 13/ 02 ›› Outlook
›› IT&C — one of the CEE's fastest growing IT markets over the
IT&C
next few years, with a 9% Compound Annual Growth Rate
(CAGR);
The IT solutions for global business ›› Hardware market growth perspective up to 1.0 billion USD in
2015;
›› PC sales (including accessories) up to 870 million USD in 2015;
›› Software spending forecasted to rise up to 305 million USD until
2015;
›› IT services will maintain the ascending trend reaching 469 million
USD in 2015;
›› One of the fastest—growing IT markets in Central and Eastern ›› Internet users by 2015 — 12.77 million inhabitants, from 8.64
Europe; million nowadays.
›› Romania — regional pole for international IT&C companies;
›› Good tradition in IT&C: first country in Eastern Europe that built ›› Investment support
computers; ›› State aid for SMEs and large investments;
›› IT&C market value in 2011: 7 billion Euro; ›› Fiscal incentives;
›› 8,000 software and IT service companies; ›› Employment and training;
›› 23% of the active workforce operating in the Science and ›› Internationalization and standardization;
Technology sector; ›› R&D: additional deduction of 20% from the eligible expenses for
›› Main IT outsourcing and custom software development centres: research and development activities.
Bucharest, Cluj-Napoca, Timioara, Iai;
›› Regional investors: Hellenic Telecommunications Organization, Internationally
Vodafone and Orange; acknowledged talent pool
›› Broadband market — key players: Romtelecom, UPC Romania,
RCS&RDS. ›› European leader and 6th in the world by the number of certified IT specialists;
›› The 2nd in the region as labour cost competitiveness;
›› Opportunities ›› The 1st in the EU with regards to the total number of Computer Science and
››Organic growth due to low computer penetration — below 25%; Mathematics Olympiad medals earned, 3rd worldwide after Russia and China;
››EU structural funds in IT worth 383 million Euro by 2013; ›› 230 IT specialists / million graduates / year, which is one of the highest rates in
››Government IT intensive programmes, such as the "Knowledge the world, exceeding US and Russia;
— Based Economy" and "Computers for Schools" programmes; ›› 5 top polytechnic universities, 59 sector universities, 174 private colleges with
››Further IT&C growth prospects — in both the SME and the technical profile;
public sector; ›› Around 9,000 computer science graduates/year, high percentage of manpower in
››Potential development due to the quadruple—play market and advanced R&D;
mobile operators in the 3G segment. ›› Secondary education in IT available in all cities;
›› 95% of young Romanians speak English, more than 47% speak at least one other
Romania — Your Business Partner for 2012 foreign language, 26% speak two foreign languages.

23. Success stories in Romania Embedded automotive systems and network operator
Top Destination for It equipment all over Romania
Network operator equipment in Western Romania
Software development centre
R&D engineers working on semiconductor design in conjunction
with Bucharest Polytechnic
Software development centre
Global Technical Support Centre
IT outsourcing, financial services & supply chain BPO
BPO for financial and administrative services in Bucharest,
dedicated to EMEA region
“ The Microsoft Global Technical Support Center in
Bucharest is the biggest of its kind in Europe.
Great technical talent, exceptional language skills
IT services BPO centre in Bucharest for the East European
market
and increasing respect for Intellectual Property 5 global IT & Technology Centers including a 15—language
are key reasons Microsoft's current and future call centre
investments in Romania.
Centre for Business Process Outsourcing — in finance —
Ronald Binkofski accountability, human resources and logistics
General Manager, Microsoft Romania
Global Service Delivery Centre
Service centres

24. 13/ 03
green energy
WIND
›› Ranking 1st in South Eastern Europe in terms of wind potential;
Reshaping for a better tomorrow ›› Ranking 1st in Central and Eastern Europe by annual wind power capacity
installations (2011);
›› Ranking 2nd in Europe in terms of wind energy potential — south-east of
›› Very important renewable energy sources potential; Dobrogea with the Constanta and Tulcea counties;
›› The 10th most attractive country in the world in wind energy ›› Ranking 7th in the EU by Installed Wind Farm Capacity in 2011 (520 MW);
investment; ›› 14,000 MW current capacity equivalent to a total annual production of 23 TWh;
›› The 13th most attractive country in the world regarding renewable ›› Significant wind resources, including a large offshore potential;
energy investment; ›› Excellent conditions for wind farms development due to onshore areas with
›› 18 billion Euro projected investments in the sector by 2020; low population;
›› Complying with the "20—20—20" EU targets ›› 4,000 MW installed power in 2020 following the implementation of the
›› 20% of EU energy consumption from renewable resources; government renewable energy sources promotion strategy.
›› 20% reduction in primary energy use by improving energy efficiency;
›› 20% reduction in the greenhouse gas emissions. SOLAR
›› Important solar potential of 210 sunny days per year;
›› National Plan of Action for Renewable Energy — renewable ›› Ranking 23rd in the world regarding the solar potential;
energy targets: 35% for 2015 and 38% for 2020; ›› Average solar exposure ranges from 1,100 to 1,300 kWh/m2/year for more
›› Renewable Energy Sources generation units amounted to than half of the country's surface;
20,264 TWh (2010); ›› Main solar regions of Romania: Black Sea coast, Dobrogea and Oltenia with an
›› Currently, the energy produced from renewable sources (E-RES) average of 1,600 kWh/m2/year.
amounts to 35.24% of the total gross electricity consumption;
›› One of the most attractive renewable energy schemes — Green BIOMASS
Certificate packages for all renewable technologies; ›› Biomass represents the largest potential source for green energy production in
›› Respects the commitments under the Kyoto Protocol. Romania (approx. 88.33 TWh/year);
›› Only 36% of that potential is currently used, providing excellent opportunities
›› Investment support for growth and development;
›› Financial incentives for significant investments in green energy; ›› 27% of Romania's land is covered by forests.
›› EU funds for upgrading / building new power and heating
production capacities using renewable energy sources: biomass, GEOTHERMAL ENERGY
micro hydro, solar, wind, geothermal, bio fuels and other; ›› The 3rd highest potential in Europe;
›› Fiscal incentives; ›› Suitable locations in the Western Plain, Southern Plains (Bucharest region) and
›› Employment and training; Southern Carpathian regions.
›› Tradable green certificates system.
Romania — Your Business Partner for 2012

25. Major players
Hidroelectrica
leading hydroenergy leading hydroenergy supplier in
Romania (over 17 TWh/year);
Iberdrola
started work on its 1,500 MW project, meaning that
it would become the largest onshore wind power
installation in the world when that project is completed
in 2017;
Energias de Portugal
several wind farms totalling 261 MW installed capacity;
Enel Green Power Romania
wind energy producer of 104 MW installed capacity;
CEZ
completed 338 MW of its 600 MW Fântânele–Cogealac
project, aiming to become the largest onshore wind
farm in Europe by the end of 2012;
Monsson Group
began construction on its 150 MW wind park worth 245
million Euro;
Martifer
wind farm (42 MW) and biodiesel production unit.
24 — 25

26. 13/ 04 ›› Gas sector
›› production and storage: Romgaz, Petrom, Depomures, Amromco Energy, Amgaz;
Oil & Gas
›› transportation: Transgaz;
›› distribution & supply: E.ON Gas Distribuţie and Distrigaz Sud Reţele, E.ON Gaz
Industry
Romania and GDF Suez Energy Romania;
Turning black gold into profit ››Petrochemical plants: Rompetrol Petrochemicals, Petrotel—
Lukoil, Oltchim;
››Retail sector: Petrom, Rompetrol, Petrotel LukOil, Oil Terminal
SA, Conpet SA.
›› Opportunities
›› The 1 oil producer in Central and Eastern Europe;
st
›› Major PPP projects;
›› The 1st petroleum industry in South Eastern Europe — holds 8 of ›› Nabucco project — gas transmission pipeline from Caspian Region
the region's 11 refineries; and Middle East to Western Europe (Turkey, Bulgaria, Romania,
›› The 1st producer of natural gas in Central and Eastern Europe; Hungary and Austria);
›› The 3rd in the EU in terms of oil reserves with 600 million barrels; ›› AGRI (Azerbaijan—Georgia—Romania Interconnector) gas
›› One of the EU's leading oil producers with 4 million tons of oil transportation project;
per year; ›› SCADA System implementation;
›› The only country producing oil in the Black Sea (offshore); ›› Interconnecting pipeline of the national gas transmission system
›› Over 150 years of tradition in the oil & gas industry — first from Romania with the South European system on the Giurgiu—
country officially registered in international statistics as having oil Ruse axis;
production (1857); ›› PEOP Constanţa—Trieste pipeline.
›› Strategic geopolitical location in terms of access to markets and
routes, including through the Black Sea; ›› Investment support
›› Regulated natural gas market in terms of structure, players and ›› State aid for big investments;
tariffs. ›› Access to European funds for
›› installations, equipment for industrial operators, for energy efficiency improvement;
Major players ›› expanding and upgrading natural gas & oil transportation and distribution grids;
›› Oil sector ›› de—sulphurization installations, burners with reduced NOx and filters on
›› OMV-Petrom — the 1 oil & gas operator, incorporating gas & crude exploration
st
refurbished/upgraded groups of large combustion plants;
and production, crude refining, processing and fuels distribution; ›› interconnecting national natural gas transport networks to European ones.
›› Rompetrol — the 2nd largest player incorporates crude oil refining, transportation, ›› Fiscal incentives;
retail, logistics, oil engineering, construction and maintenance; ›› Employment and training.
›› Petrotel-LukOil — one of the largest oil company in Eastern Europe, processing
both Romanian and Russian oil;
Romania — Your Business Partner for 2012

27. “ I believe in Romania's attractiveness for investors,
especially in the energy sector, which has a high
potential. Petrom's privatization story shows
that success can be achieved even in a complex &
challenging environment
Mariana Gheorghe
Chief Executive Officer, OMV Petrom
26 — 27

28. 13/ 05 ›› Nobel Prize (1974) for medicine and physiology — George
Emil Palade;
›› Insulin discovered by Nicolae Păulescu;
Pharmaceutical ›› "Gerovital H3" and "Aslavital" geriatric products by Ana Aslan;
›› First international bacteriology treaty, co—author Romanian
Industry scientist Victor Babe;
Our contribution to a healthier world ›› Telocytes — cells which play a role in tissue regeneration.
›› Outlook
›› Fast pace market growth over the past five years with market
dynamics expected to remain positive;
›› 11.5% growth rate for 2012—2013 (Roland Berger);
›› In terms of volumes, the market is expected to register
a
slight increase of 1.1% CAGR during 2011—2013 (Roland
Berger);
›› 2011—2013 Rx drugs are expected to increase by 13.9%
›› The 1st Central European country in terms of R&D investment in in value and 2.5% in volume (Roland Berger).
pharmaceutical field;
›› The 3rd in Central and Eastern Europe in terms of market attractiveness; ›› Major players
›› 2.4 billion Euro—worth pharmaceutical market in 2011; ›› Romanian producers: Antibiotice Iai — one of the world's
›› 6.4% net market growth as compared to 2010; biggest nystatin producers, Biofarm, LaborMed Pharma,
›› 25,000 employees in this sector, standing the test with Poland, Hofigal, Fares, Bio Vital;
Ireland or Belgium and more than double as compared to the ›› Foreign producers: Sankyo (through its subsidiary Terapia
employees in Greece or Austria; Ranbaxy), Sanofi-Aventis (through Zentiva), GlaxoSmithKline
›› High—performing market compared to its Central and Eastern (through Europharm), Actavis, Gedeon Richter (owner of
European peers; Armedica), Sandoz;
›› The size of the market in ex—factory prices is approx. 2 billion Euro; ›› Representatives: Roche, Pfizer, Servier Pharma;
›› Local production accounts only for 30% of the value of the Romanian ›› Distributors: Mediplus, Relad Group, Fildas.
pharmaceutical market;
›› Untapped growth potential — low drug consumption levels, approx. ›› Investment support
40% of the level per capita; ›› State aid for SMEs and large investments;
›› Supplied by over 490 manufacturers, 57 of which own domestic ›› Fiscal incentives;
manufacturing facilities; ›› Employment and training;
›› The Romanian pharmaceutical market is expected to become the 4th ›› Internationalization and standardization;
largest in Central and Eastern Europe by 2016. ›› R&D: additional deduction of 20% from the eligible expenses
›› Exceptional Romanian discoveries in the pharmaceutical field from research and development activities.
Romania — Your Business Partner for 2012

29. “ Roche always considered that the Romanian business environment
has a growing potential, offering a lot of opportunities and a major
resource: well—trained, dedicated people. This is why Roche opened
its first office here, back in 1992.
Dan Zamonea General Manager, Roche Romania
28 — 29

30. 13/ 06 ›› The mobile broadband in Romania is at one third of the EU
average penetration rate, registering 2,35 million connections
Telecom Sector
in 2011, 40% of which use modems/cards/keys/dongles, while
Smartphone sales have skyrocketed in the last quarter;
›› The Internet Market displays exceptional competitive dynamics.
RCS & RDS has a strong position in fixed and the first mover
advantage;
›› Romanian Telecom Market at a Glance ›› The Fixed Market is dominated by the historical operator
›› Grossing 3,6 billion Euros in total revenues in 2010, Romania Romtelecom. RCS & RDS is gaining momen­um using bundled
t
is a mobile centric communications market that provides steady services;
and healthy returns to investors; ›› With the 2009 EU telecom framework fully in place, the national
›› The major European telecom groups — Deutsche Telekom, administration provides light touch regulation and is committed
France Telecom and Vodafone — are already present in the to ensuring strong macroeconomic stability and a competitive
Romanian mobile market; market.
›› Romania is also home to innovative business solutions
successfully exported by RCS & RDS throughout Central and ›› Major Opportunity — Spectrum auction 2012
Eastern Europe; ›› Romania will hold a major spectrum auction for technologically
›› With penetration rates below the EU averages, the Romanian neutral mobile communications licences in 2012. The entire
market has significant opportunity to gen­rate highways for
e 900 MHz and 1800 MHz bandwidths which are currently used
growth in all the major service areas, especially for mobile by Cosmote Romanian Mobile Telecommunications, Orange
broadband where a 90% growth is expected across Europe over Romania and Vodafone Romania will be open for tender for a
the next 5 years; 15 year period. The entire 800 MHz and 2600 MHz bandwidths
›› Regulated according to the EU framework, the Romanian shall also be included in the tender;
electronic communication market values competition and ›› The auction will ensure equal, non—discriminatory, proportionate
technological neutrality. and transparent conditions for all the op­ rators interested in the
e
Romanian market.
›› Major Indicators of the Romanian Telecom Market
›› In 2010 the mobile services accounted for 1.68% of the GDP;
›› Talking on average 280 minutes/month (out of which 250
minutes/month are originated in mobile net­ orks), Romanians
w
use the mobile networks more intensively than the majority of
Europeans, and the mobile traffic increases are robust;
“ For 15 years now, Orange — France Telecom is a large and long
term investor in Romania.
All these years of successful commercial activity have proven
›› The 3rd highest average peak speed in the world: the fixed that Romania offers both a dynamic business environment and
broadband exceeds 3,13 million active lines and with 88% of a favorable environment for long—term investors.
lines at FTTx, Romanians ben­fit from exceptional quality of
e
service and very high speeds; Jean-François Fallacher
Chief Executive Officer, Orange Romania
Romania — Your Business Partner for 2012

31. 13/ 07 ›› Opportunities
›› Bringing growth to the less developed regions for a well-balanced
Creative
spread of FDI;
›› Government support in developing and maintaining an increasingly
Industries
dynamic enterprising & innovation—based economy;
›› Development & integration of the "incubators" into innovative
Next pro within the highly competitive world of national policies;
global business ›› High profit margins for high added—value business;
›› Continuously growing sector, reshaping the country, generating
new types of markets and practices, new attitudes and new
approaches within the economic agenda;
›› Net exporter of creative services; ›› Strong potential to become an international fashion reference,
›› The biggest EU export growth rate of royalties and license fees with its own creativity, brands and retail chains;
(92.6%) during 2002—2010; ›› Attractive location for international films, videos and advertising
›› The 3rd EU export growth rate of R&D services (33.6%) during productions.
2002—2010;
›› The 3rd EU export growth rate of architectural, engineering and ›› Investment support
other technical services (32.1%) during 2002—2010; ›› Crafts production, promotion of manually manufactured products;
›› Creative industries account for approx. 7% of the GDP; ›› Establishment and development of business and technological
›› 23.6% of the total number of companies (122,000 companies); incubators;
›› 11% of the total turnover; ›› Development of the entrepreneurial culture for women managers;
›› 12.6% of the total exports; ›› Supporting creative industries development by consolidating
›› By 2030 Romania is to become a regional and European hub. financial instruments to boost creativity;
›› State aid for SMEs and large investments;
›› Creative talent labour pool ›› Fiscal incentives.
›› Multilingual, innovative, future oriented talent pool as key to
further economic development;
›› Unparalleled ability to imagine, create and innovate;
›› 17.5% of the domestic market employees (over 693,000
employees);
›› Unique resource in taking a knowledge-based business to the
highest performance levels;
›› Undertaking ground-breaking research, developing new products
& providing sophisticated services to regional and global markets;
›› World—class intellectual capital: IBM, Intel, Ericsson, Renault
Technologie Roumanie, Microsoft, McCann Erickson, Satchi &
Satchi, Leo Burnett.
30 — 31

32. International
acknowledgement 13/ 08
Food &
›› In 2009, Herta Müller won the Nobel Prize for Literature;
Beverages
›› Radu Mihăileanu won two awards at the 2010 Cesar awards ceremony
for "The Concert";
Excellence in quality
›› Cristian Mungiu's movie entitled "4 Months, 3 Weeks and 2 Days"
received the Palme d'Or award in the Cannes Film Festival 2007 edition;
›› Marian Crian's creation, entitled "Megatron", won the Palme d'Or award
for short film at the Cannes Film Festival 2008 edition;
›› The movie entitled "The Death of Mr. Lăzărescu", directed by Cristian
Puiu, received the "Un Certain Regard" award, at the Cannes Film ›› Ranking 1st in South Eastern Europe in terms of consumer
Festival 2006 edition and many other prizes worldwide; currently it is the market potential;
Romanian film that received the highest number of awards ever; ›› Ranking 2nd in Central and Eastern Europe in terms of market
opportunities;
›› Corneliu Porumboiu won the Camera d'Or Best First Feature Award for ›› 15% of the total manufacturing employment;
his movie entitled "12:08 East of Bucharest" at the Cannes Film Festival ›› Great potential for BIO products;
2006 edition; ›› Increased demand for traditional, quality products;
›› Enhanced competitiveness over recent years;
›› Cristian Nemescu's posthumously edited movie, entitled "California ›› Opportunities for innovative companies to improve the services
Dreamin'", won the prize of the "Un Certain Regard" section at the on the local market;
Cannes Film Festival 2007 edition; ›› 9.4 million ha of arable land (almost 40% of the total country area);
›› 0.41 ha per capita — one of the highest ratios of arable land per
›› In 2010, "If I Want to Whistle, I Whistle", a movie directed by Florin capita in Europe;
erban, won the Silver Berlin Bear Jury Grand Prix; ›› Major players among the large retailers: Metro Group, Rewe,
Carrefour, Tengelmann, Mega Image, Auchan.
›› McCann Erickson Romania was designated Agency of the Year at the
2011 edition of the Golden Drum Advertising Festival of the New Europe; ›› Beverages
›› Romania is one of the world's largest wine producers;
›› McCann Erickson Romania team won a Golden Lion at the prestigious ›› The 6th wine producer in Europe and the 15th in the world;
Cannes Lions International in 2011; ›› The 5th in wine—growing standings in Europe;
›› One of the oldest wine making traditions in the world (6,000 y);
›› Saatchi & Saatchi Romania won the Silver for Outdoor Advertising ›› International acknowledgement in major wine competitions;
Campaigns at the London International Advertising Festival in 2008. ›› 183,400 ha in fruit—yielding vine area;

33. ›› 60% of mineral water reserves and 1/3 of all mineral waters of
Europe;
›› 7.77% compound annual growth rate of alcoholic drinks sales
by 2016;
›› 4.27% compound annual growth rate of soft drinks sales by
2016;
›› Major players: Cotnari (Moldavian vineyard famous for centuries),
Murfatlar (wine market leader in Romania), Vincon Vrancea,
Jidvei, Zarea, Borsec, Izvorul Alb, Izvorul Minunilor, Dorna &
Bucovina, Coca—Cola Company, European Drinks Group,
Pepsico Inc.
›› Food
“ Twenty years have passed since I received the capacity as «foreign
investor» in Romania!
›› Exports of farm and food products recorded a 40% growth rate, In a continuous investment process, during all these years, I
up to 3 billion Euro; resold 2 operations, in particular because, after so many years, I
›› 5.07% compound annual growth rate of per capita food further identified new business opportunities in the Agricultural
consumption by 2016; field, with a huge potential, in the competitive food industry
›› The 2nd EU corn producer; with a clear orientation to exports and in the field of Renewable
›› The 4th Europe’s honey producer and top 20 in the world; Energy where Romania may excel.
›› The 6th in EU by horticultural cultivated surface and one of the
EU top producers; I keep on investing in a context where now the legislation
›› Amongst EU's top 10 milk producers; crystallized, where I find competent, ambitious and loyal
›› Historical tradition in food products manufacturing; engineers, where the consumer is thirsty for any quality product,
›› Wide range of traditional products (1,500 nationally registered); whether or not it is a Premium product, where IT specialists are a
›› Food distribution channels continuously expanding; lot and where, in an objective manner, competitive advantages of
›› Major players: ALDIS, Cristim, Caroli, Angst, Scandia, Danone, a still underexploited country are numerous!
Albalact, FrieslandCampina, Hochland & Covalact Nestlé, Kraft,
Supreme Chocolat, Cadbury, Mars, Ferrero. I strongly believe that, in certain sectors, this country may be the
extraordinary start basis for whoever wishes a challenge with the
›› Investment support competitiveness of international markets.
›› State aid for SMEs' and big investments; I personally continue to invest in my future... in Romania!
›› Availability of EU funds;
›› Fiscal incentives; Jean Valvis
›› Employment and training; President & General Manager, Valvis Holding
›› Internationalization and standardization.
32 — 33

34. 13/ 09
›› Extensive airport coverage;
Tourism ›› 47% of the total tourism workforce in Romania are aged 15-34,
Explore the Carpathian Garden a percentage that is above the EU average;
›› In 2007, the medieval city of Sibiu was nominated European
capital of culture (jointly with Luxembourg);
›› Sighioara: the only inhabited medieval citadel in the world;
›› Well—focused marketing campaigns improving Romania's
›› Romania delivers a unique mix of Latin and Byzantine cultures standing among the major players in the field.
and traditions in the heart of Europe;
›› Romania offers true authenticity in the wild Carpathians or nearly ›› Ecotourism
untouched Danube Delta and a unique cultural heritage like of its ›› 3 Biosphere Reservation: the Danube Delta, the Retezat mountain
painted monasteries; area and the Rodna mountain area;
›› High potential for developing cultural circuits, nature tourism, ›› 26 national and natural parks;
rural tourism, city break packages, active and adventure tourism, ›› 55 scientific reservations;
health and wellness tourism; ›› 851 other natural reservations and protected natural areas.
›› Attractive landscape: the Carpathian mountains, sub-Carpathians,
hills and plateau; ›› Cultural tourism
›› Potential for developing ecotourism, rural tourism and agritourism, ›› Great variety of old Orthodox churches, monasteries and cathedrals;
thematic sports and recreational tourism; ›› Over 27,000 touristic sites;
›› One of the highest potentials in tourism in the region, in terms of ›› 151 monuments and archaeological sites of special value, some
natural landscape and biodiversity; included on the UNESCO heritage list;
›› One of the most diversified tourism products worldwide (natural ›› Mixture of legends, castles and palaces preserved in medieval
and anthropic resources, a unique biodiversity of flora and fauna towns.
in Europe);
›› A third of Europe's total number of natural springs are located ›› Mountain and adventure tourism
in Romania; ›› Excellent opportunities provided by outdoor landscapes;
›› 117 locations enjoying natural therapeutic factors: mineral, ›› Centuries—old woods, ozone rich air, mysterious caves, glacial
thermal, salty waters, sapropelic mud, to be used in spas and lakes, waterfalls and peaceful countryside;
healthcare centres; ›› Hunting, fishing, mountaineering, sightseeing, alpinism.
›› 30 monuments included on the UNESCO World Heritage List;
›› Romania is included in the TUI, Rewe Touristik, Thomas Cook, ›› Danube Delta
FTI touristic catalogues; ›› Biosphere Reservation designated by UNESCO;
›› Significant tourist accommodation capacity — over 300,000 places ›› The 3rd largest Delta in Europe;
in hotels, chalets, villas, inns, bungalows, motels, hostels etc.; ›› 98% of the European aquatic fauna.
Romania — Your Business Partner for 2012

35. “ Romania provides significant opportunities for
Hilton Worldwide to partner with investors and
open hotels within our award winning portfolio.
We currently feature 11 hotels either trading or
under—development in multiple locations.
Didier Martin
Vice President, Eastern Europe, Israel, Russia &
Turkey for Hilton Worldwide
Credits Parâng Mountains 34 — 35

36. Romania — Your Business Partner for 2012

37. ›› The Romanian Black Sea Coast
›› 245 km length, located in the south-east of Romania;
›› 80 km of beaches;
›› Salinity much lower than other seas;
›› Fine summer resorts.
›› Spa and wellness tourism
›› One—third of the thermal and mineral water supply of Europe;
›› Water from various mineral springs was bottled and transported
abroad starting with the 19th century;
›› Underground thermal and mineral waters, salt mines, sulphurous
thermal and mineral springs, protective bio climate;
›› Romanian spa resorts are the ideal places for healing, wellness
or relaxation.
›› Investment support
›› State aid for SMEs and large investments;
›› Major projects for PPP;
›› Fiscal incentives;
›› Internationalization and standardization;
›› Developing touristic activities in rural areas;
›› Employment and training;
›› IT and related activities: equipment, applications,consultancy,
systems;
›› Entrepreneurial skills improvement;
›› Credits and guarantees;
›› Acquisition of: vehicles, equipment, installations, furnishings,
patents & licenses, quality certification.
Major players
›› Already present in Romania or intending to develop projects in this field: Crowne
Plaza, Golden Tulip, Hilton, Howard Johnson, Ibis, Inter-Continental, Marriott,
Novotel, Ramada, Sofitel;
›› World Tourism and Traveling Council (WTTC) — Romania ranks 7th of 176 countries
in terms of its perspectives of growth in the tourism industry.
Credits Bucovina Mountains 36 — 37

38. 13/ 10 Brumărescu, Nicolae Văideanu, Vasile Dimitrescu, Elie Carafoli
(aerodynamics and space sciences);
›› Contributions to more than 30 scientific and technological space
Aeronautics missions including Outer Space;
Tradition in empowering innovation ›› Manufacturing of over 20 types of transport airplanes, helicopters,
passenger medium carriers and light airplanes;
›› Romanian aviation was officially established in 1910.
›› Centre of excellence within the Romanian defense industry; ›› Pillars of strength:
›› 5,000 employees in the sector; ›› Research, design and development;
›› Predominantly involved in manufacture and assembly of aircraft ›› Manufacturing structural aircraft items;
sub–systems; ›› General assembling;
›› Cost–effective manufacturing processes; ›› Integration of modern avionics and systems;
›› Private R&D sector growing at high—speed; ›› Maintenance, repair and overhaul works;
›› 7 R&D institutes; ›› Upgrade programs;
›› Particular strengths in maintenance and repair; involvement in ›› Flight test and certification;
upgrading programs; ›› Customer support.
›› Extension of maintenance repair and overhaul (MRO) activities
for both civil and military programs; ›› Important R&D outcomes
›› International steady partnerships for the development of a regional ›› IAR—111 supersonic aircraft carrier, demonstrator for future space
aircraft; tourism technology development;
›› Major customers in the EU: BAE Systems, EADS; ›› Executor Rocket Engine — liquid fuel rocket engine for the
›› Major manufacturing & MRO companies: Aerostar, Avioane, IAR IAR—111 & Haas II rocket;
Braov, Craiova, Metav, Romaero, Turbomecanica, Aerofina, Aeroteh; ›› Automated spacecraft built for the Google Lunar X Prize
›› Major aircraft components manufacturing: Premium Aerotec, Competition;
Universal Alloy Corporation, Duqueine Group, Elbit Systems; ›› STABILO — Manned suborbital space vehicle;
›› Significant opportunities for further development — wide range ›› Haas — Rocket launcher able to place 400 kg of payload in Low
of high quality aeronautical products and services for civil and Earth Orbit;
military applications; ›› Demonstrator 2 & 2B — equipped with the first reusable
›› Licenses to produce: BAC 1—11 airliners, BN—2 Islander utility composite materials worldwide.
aircraft, helicopters — SA 330 Puma, SA 316B, Alouette III,
turbo–shaft Turmo IV CA, Viper and Spey aircraft engines. ›› By 2020
›› Participation in major EU activities (EU FP6/7 & JTI-Clean Sky);
›› Globally acknowledged tradition — world pioneers ›› Pilot project for new regional transportation system (CNTAR);
›› Traian Vuia (first autonomous take—off airplane), Henri ›› Higher international visibility for existing capabilities (EREA,
Coandă (first jet airplane), Grigore Bricu, George Arion, Tache ACARE, ASD,IMG4).
Romania — Your Business Partner for 2012

39. ›› Investment support
›› State aid for SME's & big investments;
›› Fiscal incentives;
›› Employment and training;
›› R&D: additional deduction of 20% from
the eligible expenses from research and
development activities.
“ We had many good reasons to invest in Romania.
Particularly the existing infrastructure and
capabilities in the metalworking sector were
convincing. Our Brasov plant contributes strongly
to the competitiveness of Premium AEROTEC.
Jochen von Wurmb
Head of Premium AEROTEC plant in Brasov
38 — 39

40. 13/ 11
Shipyards
A safe navigation
›› The 3rd exporter in the EU;
›› The 2nd in the top of European yards — Daewoo Mangalia
building bulkers and container vessels (2009);
›› Over 8,000 employees in the sector;
›› 1,000 million Euro shipyards turnover (2010);
›› 7.19% foreseen annual increase in tonnage throughput to 57.76
“ Damen decided to invest in Galati Shipyard in 1999, after six
successful years of co-operation. The main advantages at that moment
were the labor cost level and the qualification of the personnel.
million tonnes for the biggest Romanian port — Constanța After more than a decade of continuous improvements & investments
(2012); we succeeded to change the company in a top European player.
›› 7.15% average annual growth in tonnage by 2016 for the
Constanța port; Flemming Seestrandt Sørensen
›› 4.25% foreseen growth in box traffic to 606,235 twenty Managing Director, Damen Shipyards Galati
equivalent foot units (TEUs) (2012);
›› 6.92% y-o-y growth in box traffic by 2016, reaching 810,508
TEUs; Major players
›› 160 years of tradition in shipbuilding manufacturing;
›› Labour—intensive industry with skilled workforce at competitive ›› Leading shipyards: Damen Shipyards Galați, Constanța Shipyard, DMHI Mangalia,
prices; STX OSV Tulcea, STX OSV Brăila, Severnav Drobeta Turnu Severin, Orova
›› High rate of innovation oriented specialists; Shipyard, Shipyard ATG Giurgiu;
›› Higher education system — highly skilled specialists, strong ›› Significant support companies: Germanischer Lloyd, Ship Design Group, Bureau
research and design database; Veritas, Retec, Dutch Marine Trading Design, Ductil, ICEPRONAV, Eekels, Helmers,
›› Access to the Black Sea and more than 1,000 km of the Danube Metchim, Menarom Pec, Det Norske Veritas, Avemar, Liebherr, Marine Engineering,
river; Van der Velden, CAD, Edilbalk, En Vogue Industries, Green Yard Brăila, Heinen &
›› Core competence in integrating logistics solutions for global Hopman, Industrial Cruman, Ronomar, Sanco, Turom Steel, Vacon;
companies due to Romania's strategic position in Europe. ›› A wide range of products: merchant vessels (tankers, bulk carriers, anchor handling
vessels, tugs, container feeders, dredgers, LPG, offshore supply vessels, yachts,
Romania — Your Business Partner for 2012 barges etc.); ship repairs & ship conversions; naval vessels.

41. 13/ 12 “ In transforming Intel to a computing company we need the best
software talent to deliver on our vision. Romania is an ideal location
for software engineering talent due to a rich university environment
R&D
and close proximity to customers and ecosystem partners.
A passion to learn and perform Monica Ene-Pietro�anu
Country Manager, Intel Romania Software Development Center
›› South Eastern Europe key player in advanced manufacturing R&D ›› 66 institutes and research centres of the Romanian Academy;
sector; ›› Advanced Information Systems for e-Services, Informatics
›› One of the highest growth rate among the EU catching-up countries; and Computer Science;
›› Pillar of strength in high energy laser research facility of the EU (ELI) ›› Communication Technologies, Information Systems Security
focused on laser—based nuclear physics; and Accessibility;
›› Ranking 14th on pharmaceutical research and development in Europe; ›› Nano—electronics, Photonics and nano—integrated
›› Ranking 23rd in the world as tertiary education enrolment rate; Systems;
›› 2% R&D intensity from GDP by 2020; ›› New Methods for Management, Marketing and Enterprise
›› 6% employment rate in knowledge—intensive activities; Development;
›› 14.87% sales of new to market and new to firm innovations; ›› Advanced Technologies for Industrial Process Control.
›› 48.35% knowledge—intensive services exports;
›› 50.72% medium and high—tech product exports; ›› Investment support
›› 78.2% youth with upper secondary level education; ›› State aid for SMEs and large investments;
›› National strategy for R&D and Innovation; ›› Fiscal incentives;
›› Intellectual assets well above the EU average; ›› Employment and training;
›› 2012 OSCAR award for Phantom high—speed digital cameras ›› 20% additional deduction from the eligible expenses for R&D
design and development (Radu Corlan & Petru Pop); activities;
›› Host to Renault's biggest R&D centre outside France (< 2,300 ›› EU funds for
engineers). ›› high—tech start—ups and spin—offs;
›› R&D infrastructure development and creation of new R&D jobs;
›› Driving key technology innovations — Extensive R&D resources and ›› promoting innovation.
outcome
›› 4 technological and scientific parks; Major players
›› 13 technological transfer centres;
›› 15 technological and business incubators; Renault, Continental, Ina Schaeffer, Oracle, HP Software Competence Center,
›› 19 technological information centres; WIPRO, Intel, Honeywell, Infineon Technologies, GlaxoSmithKline, Siemens,
›› 32 technological platforms in: renewable energy, biotechnologies, Elerom, Movidius, Monoelect, Azoth Tehnologies, Laromet, Helco, Electromedical
genomics, nanoelectronics and medicine, innovative medicine, Industries, Medtex Design & Production, Ecofix, Imatech Trade & Imaging.
chemistry etc.;
40 — 41

42. 14
Romania in a
nutshell
›› Official name: Romania
›› Form of Government: Republic
›› The Parliament: a two-chamber Parliament (the Chamber of Deputies
and the Senate)
›› National Flag: next to the staff, three equal vertical stripes — blue,
yellow and red
›› Geographical Location: South Eastern Europe
›› Neighbours: Bulgaria, Serbia, Hungary, Republic of Moldova and
Ukraine
›› Area: 238,391 sq. km (ranking 12th in Europe & 81st in the world)
›› Official language: Romanian
›› Standard time: GMT +2 hours
›› Currency: Romanian leu (RON), fractional coin — ban
›› Capital city: Bucharest (1.9 million inhabitants)
›› Administrative organisation: 42 counties (including Bucharest), 319
towns, 2,851 communes
›› Main cities: Iai, Constanța, Cluj-Napoca, Braov, Arad, Ploieti,
Timioara, Oradea
›› Airports: Bucharest—Otopeni (currently "Henri Coandă" International
Airport), Bucharest—Băneasa (currently "Aurel Vlaicu" International
Airport), Constanța, Timioara, Bacău, Baia Mare, Cluj-Napoca,
Craiova, Iai, Oradea, Satu Mare, Târgu Mure, Suceava, Arad, Sibiu
›› Population: 19.6 million inhabitants
›› Density: 91 inh./sq. km.
›› Ethnic structure: Romanians 89.5%, Hungarians 6.6%, other 3.9%
Romania — Your Business Partner for 2012 Credits traditional wooden church, Maramure�, Bârsana

43. Sources
›› European Commission
›› Business Monitor International
›› Economist Intelligence Unit
›› Ernst & Young
›› Serban & Musneci Associates
›› European Automobile Manufactures' Association
›› United Nations Conference on Trade and Development (UNCTAD)
›› The Romanian Association for Aeronautics and Astronautics
›› Ministry of Transportation and Infrastructure
›› Ministry of Regional Development and Tourism
›› Ministry of Education, Research, Youth and Sports
›› Ministry of Economy, Trade and Business Environment
›› Romanian Center for Trade and Investment Promotion
design
Romanian Creative Industries Business Federation (FEPIC)
Graphic & Design Department
Phone +40 722 690 504
Coordinator
Andreea Paul
The Economic Adviser of the Prime Minister Mihai-Răzvan Ungureanu
Romanian Government
42 — 43

44. Andreea Paul
The Economic Adviser of the Prime
Minister Mihai-Răzvan Ungureanu
Lecturer, PhD, Faculty of International
Business and Economics, Academy of
Economic Studies
andreea.paul@gov.ro
Romanian Center for Trade and
Investment Promotion
Phone +40 21 318 50 50
office@romtradeinvest.ro
www.romtradeinvest.ro Credits Moldoviţa Monastery Cover Romanian Athenaeum, Bucharest