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THEEXECUTIVESUMMARY
                                     KOSICEINVEST2009 October 22,2009
         Contents:

         Interview with Rastislav Puchala, the driving force behind the event   2/3

         Facts & Figures of the Kosice Region                                   4

         Program of Kosice Invest 2009                                          5/6

         October 2009




ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE            WWW.LUGERA.COM
2




                                                                                 How did the idea arise to organize the Kosice Invest 2009
  THEINTERVIEW by Gerard Koolen                                                  conference?
                                                                                 Initial idea came from several AmCham Košice members two years ago.
With Rastislav Puchala, Director American Chamber of
                                                                                 They wanted to create an FDI working group in order to promote the
Commerce, Kosice.
                                                                                 Košice region as an ideal destination for foreign investments. Thanks to
                                Born in: Poprad                                  the excellent economic situation in Slovakia and in our partner countries,
                                Very Smart: MA in Information Science and
                                English, PHD in Political Science and in         and due to extensive economic reforms in Slovakia, the Košice region
                                International Relations                          experienced an exceptional FDI boom that time. Regional and municipal
                                Working History:
                                2007 - American Chamber of Commerce in the       authorities did not have to spend special effort to attract new investors.
                                Slovak Republic (Director of Košice Office)      FDI inflow seemed to be spontaneous. With the economic crisis everything
                                2006 – 2007 AquaCity Poprad, Ltd. (Deputy
                                Managing Director)                               changed, and the lack of serious pro-investment programs appeared to be
                                2006 Ministry of Foreign Affairs of the Slovak   a comparative drawback in competition with other regions. I offered my
                                Republic, Department of Analyses and Policy
                                Planning (State Counselor – Analyst)             services to the City of Košice, and municipal management wisely decided
    Philippe Claverol                                                            to invest money, effort and human capital into developing of a coherent
2002 – 2006 Embassy of the Slovak Republic in Ottawa, Canada (Head of
Consular Section)                                                                investment strategy. “Košice Invest 2009 – Invest in the East” conference
1999 – 2002 Ministry of Foreign Affairs, Department of Analyses and Policy
                                                                                 was identified as an ideal opportunity to present new Košice investment
Planning (Senior Expert)
Special Achievements:                                                            strategy and to make things happen.
Member of the Ministry of Foreign Affairs´ EU, NATO and OECD accession
teams (accomplished in 2000 and 2004)
                                                                                 How did you manage this, are you member of a particular project
Co-author of several Slovak Foreign Policy Conceptions and Slovak Foreign
Policy Evaluations                                                               group in Kosice?
Member of the negotiation team in Slovak – Canada’s negotiations on lifting of
                                                                                 Yes, I am a proud member and leader of the FDI Working Group
the visa duty for citizens of Slovakia (accomplished in 2008)
Member of AmCham Economic Impact and Development Standing Committee              comprising top management of the Municipality of Košice, corporate
and Corporate Social Responsibility Committee
                                                                                 partners and myself. Our responsibility is not only to organize the
Leader of the Foreign Direct Investment Working Group – City of Košice
Adviser to the Mayor of Košice on Investments and Foreign Affairs                conference and to attract as many foreign investors as possible. We are in




ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE                                                                  WWW.LUGERA.COM
3




charge of drafting of the Kosice long-term investment strategy. The                again. It will be excellent handbook for new investors and I was not afraid
document is being created on our brainstorming meetings in cooperation             to include this into the conference program.
with business development experts of PricewaterhouseCoopers. It will be
presented at the conference.                                                       How is the timing of the conference? Is it now the best time ever
                                                                                   for an investment in the Kosice region?
What kind of investors the conference is meant for?                                Well, October is the best time of the year to organize a conference. But
We want to capture all kinds of investors´ interest. Due to a long tradition       seriously – it is now or never! There is nothing to wait for, this is the
it is clear that the industrial production will long time be a part of the local   moment, when new investment strategies are being decided.
investment portfolio. However, we do understand geopolitical trends, and
we realize that the future of our region belongs to IT industry,                   How many people are you expecting?
pharmaceutical industry, innovations, green technologies, transportation           Our ambition is to have up to 150 participants.
and logistics, tourism, wellness, hospitality and other value added
industries.                                                                        Which incentives Slovakia and Kosice are offering investors?
                                                                                   There will be a wide variety of municipal, regional, national and EU
How successful is Kosice in attracting investors?                                  incentives presented at the conference. I don’t want to specify them now.
Košice region always ranked second, after Bratislava region, in FDI                It’s better to come, see, hear and to meet relevant people at the same
attracting. This standing is challenging and binding. However, the gap             time.
between Bratislava and Košice is very big.

                                                                                   For questions or remarks do contact Rastislav Puchala at
What is the experience from investors in the Kosice region?                        rastislav.puchala@amcham.sk or Gerard Koolen at
                                                                                   gerard.koolen@lugera.com
You can get detailed feedback from investors during the conference. We
allocated a special panel for existing big investors in the region. They will
offer their “investment story” – the reasons why they came, what
problems are they facing and why they would choose Eastern Slovakia




ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE                                                                      WWW.LUGERA.COM
4



FACTS&FIGURES by Katka Bittalova
                                                                                        235.000
                                                                                        INHABITANTS                                    29.675
€ 653.89                                                                                And this makes Kosice the 2nd
                                                                                                                                       FULFILLMENTS
The average salary in the
Kosice region was € 653.89
gross monthly during the second
                                           16.64%
                                                %                                       largest city after Bratislava. It is
                                                                                        situated on the Hornad River at the
                                                                                        eastern reaches of the Slovak Ore
                                                                                                                                       Since 2003 Lugera & Makler
                                                                                                                                       placed 29.675 candidates at it’s
                                                                                                                                       clients in the CEE. Lugera,
                                                                                        Mountains near the borders with                established in 1996, has become in
quarter of 2009. Back in 1998                                                                                                          2009 the biggest temporary and
                                             Is the unemployment                        Hungary.
(11 years ago) the average gross                                                                                                       permanent placement agency in
salary was € 230.26 per month.               rate in the Kosice region at
                                                                                                                                       Romania. And is the third biggest
                                             the end of August 2009. In
                                                                                                                                       independent agency in the CEE. In
                                             January 2007 the
                                                                                                                                       Slovakia Lugera is the # 1 agency in
                                             percentage was 15.33.
18.77%
     %                                       During this period the
                                             Kosice region recorded the
                                                                                                                                       permanant placements.


Is the region’s national
share in the unemployment
statistics. Only the Presov
                                             lowest percentage in
                                             August 2008: 12.01%.              590.919                                 The Kosice Airport counted in 2008 590.919
                                                                                                                       passengers over 2008. In 2003 this was still 187.716.
                                                                                                                       The now bankrupt Sky Europe was responsible for 40 to
                                                                                                                       70% of the 2008 passengers movements. Danube Wings,
region has a higher share:                                                     PASSENGERS                              Austrian Airlines, Czech Airlines are also flying on Kosice.
20.66%. Lowest is the
Bratislava region with 4.2%.




22.923
                                   Lugera has 22.923 candidates registered in it’s TalentBase®
                                   living in and around Kosice. Further around 8.000 candidates working
                                   and living in Bratislava are originally from Kosice. This is mainly
                                                                                                       Alicia Cooke
                                                                                                                           -27 +10
                                   caused by the higher amount of attractive job offers. Many of these                     Are the lowest and highest temperatures
CANDIDATES                         persons would consider moving back to Kosice in case of interesting                     measured in Kosice during January. The records in
                                   Career opportunities.                                                                   summer +39 in August and MINUS 1 in September.
                                                                                                                           The minimum average temperatures vary over the
                                                                                                                           year between -7 in winter time to + 13 in summer.
                                                                                                                           The maximum average temperatures vary between


83M
                               high is the tallest building in Kosice: the Hospital Faculty and
                               Policlinic. The second tallest building measures 59 meter build in 1508: Dom sv             0 and 26 degrees. So beautiful summers, lovely
                               Alzbety. Lugera has its seat in the third tallest buidling. Fourth is the DoubleTree        winters.
                               building...where the conference will take place.



  ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE                                                                       WWW.LUGERA.COM
5




 THEPROGRAM                                                         I.Presentati                (09.30 – 10.30)
                                                                    Presentation by the City of Košice
                                                                    • Investments in the city of K o š i c e
Košice Invest 2009                                                  • Presentations of greenfields, brownfields and other industrial
Invest in the East
                                                                    areas.
October 22nd 2 0 0 9
                                                                    CoffeeBreak                (10.30 – 10.45)
Košice, Doubletree by Hilton
                                                                                                  Coffee Break
Organizers
                                                                    II.PresentationbytheCityandRegionofKoši
Organizers:          The City of Košice and the American
                                                                    ce                         (10.45 – 12.15)
                     Chamber of Commerce in the Slovak Republic.
                                                                    Presentation by the City and Region of Košice
                                                                    • City of Kosice’s long term investment strategy
Strategic Partner: PriceWaterhouseCoopers
                                                                    • Industrial production
Partners:          T-Systems, US Steel Kosice, Getrag Ford
                                                                    • Research, development, innovation and information technologies
                   Transmissions, INVA Group, Kosit, Deloitte,
                                                                    • Transport and logistics
                   Doubletree by Hilton, Contineo,
                                                                    • Tourism and culture
                   Lugera & Makler, HB Reavis, VSE-RWE,             • Knowledge economy
                   S.E.G., Eurovia-Cesty, Stavebneforum.sk,         • Other industries
                   ECOC-Kosice 2013.r t n e r s                     • Stateaid
                                                                    • Assistance from structural funds
Under the auspices of Mr. Lubomir Jahnatek Minister of Economy of   • Presentation by the Kosice Self-Governing Region
the Slovak Republic                                                 • Foreign direct investment strategy in the mid-term perspective
Program                                                             • Regional Innovation Center - project presentation
I n t r o d u c t i o n (09.00 – 09.30)                             • Multifunctional Regional Center - project presentation
Introduction                                                        Lunch
• Welcome speech by the Mayor of the City of Košice                                             (12.15 – 13.30)
• Welcome speech by the President of the Košice Self-Governing                                       Lunch
Region                                                                                                III.
• Welcome speech by the Executive Director of the American
Chamber of Commerce in the Slovak Republic




ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE                                           WWW.LUGERA.COM
6




    I n v e s tme n t p r o j e c t s o f i n t e r n a t i o n a l imp o
                           (13.30 – 14.30)                                    Registration and information:
Investment Projects of International Importance                               C o n t a c t : + 4 2 1 5 5 6 4 1 9 1 1 7 , k o s i c e i n v e s t@k o s i
• European Capital of Culture – Košice 2013                                   c e . s k ; k o s i c e@a m c h a m . s k
project presentation
• Ice Hockey World Championship 2011
                                                                              Accommodation:+421553251400,reservatio
project presentation
CoffeeBreak                                                                   n s . d t k o s i c e@h i l t o n . c o m

                              (14.30 – 14.45)
                                 Coffee Break                                 Or contact katka.bittalova@lugera.com:
 I V . S u c c e s s f u l l y imp l e me n t e d i n v e s tme n t p r o j
                              (14.45 – 17.00)
Successfully implemented investment projects. Case
Studies. i e s
• Investments in the IT industry - Importance of Investment of T-
Systems International
for Košice and the Region of Eastern Slovakia (T-Systems)
• Development of science, research and innovation and the transfer
of knowledge into
the production (U. S. Steel Košice)
• Knowledge economy (IT Valley, Technical University)
• Examples of the socially responsible behavior (VSE)
• Environmental services and technologies (KOSIT)
• ISPA – new industrial park in Košice (INVA Group)
• Other foreign companies operating in the city (Getrag Ford
Transmissions, Intersteel,
                                                                                        Katka Bittalova
Howe)
• Investments and the human capital (Lugera & Makler by Katka
Bittalova)




ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE                                                              WWW.LUGERA.COM

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The Executive Summary Kosice Invest 2009

  • 1. THEEXECUTIVESUMMARY KOSICEINVEST2009 October 22,2009 Contents: Interview with Rastislav Puchala, the driving force behind the event 2/3 Facts & Figures of the Kosice Region 4 Program of Kosice Invest 2009 5/6 October 2009 ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE WWW.LUGERA.COM
  • 2. 2 How did the idea arise to organize the Kosice Invest 2009 THEINTERVIEW by Gerard Koolen conference? Initial idea came from several AmCham Košice members two years ago. With Rastislav Puchala, Director American Chamber of They wanted to create an FDI working group in order to promote the Commerce, Kosice. Košice region as an ideal destination for foreign investments. Thanks to Born in: Poprad the excellent economic situation in Slovakia and in our partner countries, Very Smart: MA in Information Science and English, PHD in Political Science and in and due to extensive economic reforms in Slovakia, the Košice region International Relations experienced an exceptional FDI boom that time. Regional and municipal Working History: 2007 - American Chamber of Commerce in the authorities did not have to spend special effort to attract new investors. Slovak Republic (Director of Košice Office) FDI inflow seemed to be spontaneous. With the economic crisis everything 2006 – 2007 AquaCity Poprad, Ltd. (Deputy Managing Director) changed, and the lack of serious pro-investment programs appeared to be 2006 Ministry of Foreign Affairs of the Slovak a comparative drawback in competition with other regions. I offered my Republic, Department of Analyses and Policy Planning (State Counselor – Analyst) services to the City of Košice, and municipal management wisely decided Philippe Claverol to invest money, effort and human capital into developing of a coherent 2002 – 2006 Embassy of the Slovak Republic in Ottawa, Canada (Head of Consular Section) investment strategy. “Košice Invest 2009 – Invest in the East” conference 1999 – 2002 Ministry of Foreign Affairs, Department of Analyses and Policy was identified as an ideal opportunity to present new Košice investment Planning (Senior Expert) Special Achievements: strategy and to make things happen. Member of the Ministry of Foreign Affairs´ EU, NATO and OECD accession teams (accomplished in 2000 and 2004) How did you manage this, are you member of a particular project Co-author of several Slovak Foreign Policy Conceptions and Slovak Foreign Policy Evaluations group in Kosice? Member of the negotiation team in Slovak – Canada’s negotiations on lifting of Yes, I am a proud member and leader of the FDI Working Group the visa duty for citizens of Slovakia (accomplished in 2008) Member of AmCham Economic Impact and Development Standing Committee comprising top management of the Municipality of Košice, corporate and Corporate Social Responsibility Committee partners and myself. Our responsibility is not only to organize the Leader of the Foreign Direct Investment Working Group – City of Košice Adviser to the Mayor of Košice on Investments and Foreign Affairs conference and to attract as many foreign investors as possible. We are in ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE WWW.LUGERA.COM
  • 3. 3 charge of drafting of the Kosice long-term investment strategy. The again. It will be excellent handbook for new investors and I was not afraid document is being created on our brainstorming meetings in cooperation to include this into the conference program. with business development experts of PricewaterhouseCoopers. It will be presented at the conference. How is the timing of the conference? Is it now the best time ever for an investment in the Kosice region? What kind of investors the conference is meant for? Well, October is the best time of the year to organize a conference. But We want to capture all kinds of investors´ interest. Due to a long tradition seriously – it is now or never! There is nothing to wait for, this is the it is clear that the industrial production will long time be a part of the local moment, when new investment strategies are being decided. investment portfolio. However, we do understand geopolitical trends, and we realize that the future of our region belongs to IT industry, How many people are you expecting? pharmaceutical industry, innovations, green technologies, transportation Our ambition is to have up to 150 participants. and logistics, tourism, wellness, hospitality and other value added industries. Which incentives Slovakia and Kosice are offering investors? There will be a wide variety of municipal, regional, national and EU How successful is Kosice in attracting investors? incentives presented at the conference. I don’t want to specify them now. Košice region always ranked second, after Bratislava region, in FDI It’s better to come, see, hear and to meet relevant people at the same attracting. This standing is challenging and binding. However, the gap time. between Bratislava and Košice is very big. For questions or remarks do contact Rastislav Puchala at What is the experience from investors in the Kosice region? rastislav.puchala@amcham.sk or Gerard Koolen at gerard.koolen@lugera.com You can get detailed feedback from investors during the conference. We allocated a special panel for existing big investors in the region. They will offer their “investment story” – the reasons why they came, what problems are they facing and why they would choose Eastern Slovakia ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE WWW.LUGERA.COM
  • 4. 4 FACTS&FIGURES by Katka Bittalova 235.000 INHABITANTS 29.675 € 653.89 And this makes Kosice the 2nd FULFILLMENTS The average salary in the Kosice region was € 653.89 gross monthly during the second 16.64% % largest city after Bratislava. It is situated on the Hornad River at the eastern reaches of the Slovak Ore Since 2003 Lugera & Makler placed 29.675 candidates at it’s clients in the CEE. Lugera, Mountains near the borders with established in 1996, has become in quarter of 2009. Back in 1998 2009 the biggest temporary and Is the unemployment Hungary. (11 years ago) the average gross permanent placement agency in salary was € 230.26 per month. rate in the Kosice region at Romania. And is the third biggest the end of August 2009. In independent agency in the CEE. In January 2007 the Slovakia Lugera is the # 1 agency in percentage was 15.33. 18.77% % During this period the Kosice region recorded the permanant placements. Is the region’s national share in the unemployment statistics. Only the Presov lowest percentage in August 2008: 12.01%. 590.919 The Kosice Airport counted in 2008 590.919 passengers over 2008. In 2003 this was still 187.716. The now bankrupt Sky Europe was responsible for 40 to 70% of the 2008 passengers movements. Danube Wings, region has a higher share: PASSENGERS Austrian Airlines, Czech Airlines are also flying on Kosice. 20.66%. Lowest is the Bratislava region with 4.2%. 22.923 Lugera has 22.923 candidates registered in it’s TalentBase® living in and around Kosice. Further around 8.000 candidates working and living in Bratislava are originally from Kosice. This is mainly Alicia Cooke -27 +10 caused by the higher amount of attractive job offers. Many of these Are the lowest and highest temperatures CANDIDATES persons would consider moving back to Kosice in case of interesting measured in Kosice during January. The records in Career opportunities. summer +39 in August and MINUS 1 in September. The minimum average temperatures vary over the year between -7 in winter time to + 13 in summer. The maximum average temperatures vary between 83M high is the tallest building in Kosice: the Hospital Faculty and Policlinic. The second tallest building measures 59 meter build in 1508: Dom sv 0 and 26 degrees. So beautiful summers, lovely Alzbety. Lugera has its seat in the third tallest buidling. Fourth is the DoubleTree winters. building...where the conference will take place. ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE WWW.LUGERA.COM
  • 5. 5 THEPROGRAM I.Presentati (09.30 – 10.30) Presentation by the City of Košice • Investments in the city of K o š i c e Košice Invest 2009 • Presentations of greenfields, brownfields and other industrial Invest in the East areas. October 22nd 2 0 0 9 CoffeeBreak (10.30 – 10.45) Košice, Doubletree by Hilton Coffee Break Organizers II.PresentationbytheCityandRegionofKoši Organizers: The City of Košice and the American ce (10.45 – 12.15) Chamber of Commerce in the Slovak Republic. Presentation by the City and Region of Košice • City of Kosice’s long term investment strategy Strategic Partner: PriceWaterhouseCoopers • Industrial production Partners: T-Systems, US Steel Kosice, Getrag Ford • Research, development, innovation and information technologies Transmissions, INVA Group, Kosit, Deloitte, • Transport and logistics Doubletree by Hilton, Contineo, • Tourism and culture Lugera & Makler, HB Reavis, VSE-RWE, • Knowledge economy S.E.G., Eurovia-Cesty, Stavebneforum.sk, • Other industries ECOC-Kosice 2013.r t n e r s • Stateaid • Assistance from structural funds Under the auspices of Mr. Lubomir Jahnatek Minister of Economy of • Presentation by the Kosice Self-Governing Region the Slovak Republic • Foreign direct investment strategy in the mid-term perspective Program • Regional Innovation Center - project presentation I n t r o d u c t i o n (09.00 – 09.30) • Multifunctional Regional Center - project presentation Introduction Lunch • Welcome speech by the Mayor of the City of Košice (12.15 – 13.30) • Welcome speech by the President of the Košice Self-Governing Lunch Region III. • Welcome speech by the Executive Director of the American Chamber of Commerce in the Slovak Republic ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE WWW.LUGERA.COM
  • 6. 6 I n v e s tme n t p r o j e c t s o f i n t e r n a t i o n a l imp o (13.30 – 14.30) Registration and information: Investment Projects of International Importance C o n t a c t : + 4 2 1 5 5 6 4 1 9 1 1 7 , k o s i c e i n v e s t@k o s i • European Capital of Culture – Košice 2013 c e . s k ; k o s i c e@a m c h a m . s k project presentation • Ice Hockey World Championship 2011 Accommodation:+421553251400,reservatio project presentation CoffeeBreak n s . d t k o s i c e@h i l t o n . c o m (14.30 – 14.45) Coffee Break Or contact katka.bittalova@lugera.com: I V . S u c c e s s f u l l y imp l e me n t e d i n v e s tme n t p r o j (14.45 – 17.00) Successfully implemented investment projects. Case Studies. i e s • Investments in the IT industry - Importance of Investment of T- Systems International for Košice and the Region of Eastern Slovakia (T-Systems) • Development of science, research and innovation and the transfer of knowledge into the production (U. S. Steel Košice) • Knowledge economy (IT Valley, Technical University) • Examples of the socially responsible behavior (VSE) • Environmental services and technologies (KOSIT) • ISPA – new industrial park in Košice (INVA Group) • Other foreign companies operating in the city (Getrag Ford Transmissions, Intersteel, Katka Bittalova Howe) • Investments and the human capital (Lugera & Makler by Katka Bittalova) ARMENIA CROATIA CZECH REPUBLIC NETHERLANDS POLAND ROMANIA SLOVAKIA UKRAINE WWW.LUGERA.COM