We speak fluent business JULY 2018
Facts & figures 1st in EU for GDP per capita growth since 2000 1 GDP growth: in 2016 2 : 2.3% in 2017 2 : 3.9% In 2018 3 : 3.1% Population 2 Labour Pool 2 2.8 million 1.5 million Unemployment 2 7.1% Source 1: Eurostat, 2017 Source 2: Statistics Lithuania, 2018 Source 3: European Economic Forecast, Spring 2018 2
Globally ranked player 16 out of 190 countries evaluated Ease of Doing Business 1 41 out of 137 countries evaluated Global Competitiveness Index 2 13 out of 159 countries evaluated Economic Freedom of the World 3 23 out of 180 countries evaluated Environmental Performance Index 4 38 out of 180 countries evaluated Corruption Perception Index 5 18 out of 190 countries evaluated Paying Taxes Ranking 6 Source 1: World Bank, 2017 Source 2: World Economic Forum, 2017 Source 3: Fraser Institute, 2017 Source 4: Yale University, 2016 Source 5: Transparency International, 2018 Source 6: PWC, 2017 3
Performance in FDI Top investing countries by share of total projects 2010-2017 Top business activities according to jobs planned 2010-2017 15% United States 8% Denmark Shared Services Centres 37% Manufacturing 34% 10% Sweden 8% Germany IT Design, Development & Testing 13% 9% UK 6% Finland Business Services Logistics 4% 4% 8% Norway Sales, Marketing & Support 3% Source: Invest Lithuania, 2018 4
What gives Lithuania the edge? 1 Young & talented labour 4 Business friendly environment 2 World-class infrastructure 5 Perfect living pace 3 Great quality to cost ratio 5
Young highly qualified talent of population with higher 56% education 1 84% 50% proficiency in English among young professionals 2 speak at least two foreign languages 3 Students by study fields in higher education institutions 2017-2018 4 Business, administration and law Engineering, manufacturing and construction Health and welfare Social sciences, journalism and information Arts and humanities Information and communication technologies Education Natural sciences, mathematics and statistics Other programmes 5% 5% 4% 6% 9% 9% 16% 19% 27% Source 1: Eurostat, 2017 (age group 25-34) Source 2: Invest Lithuania s estimation based on Population Census (2011) Source 3: Europeans and their languages, 2012 Source 4: Ministry of Education and Science, 2018 Young & talented labour 6
Digital infrastructure: fast, reliable and affordable EU and global leader in connectivity and communication technology 1st in EU for fixed broadband price 3 1st globally in fulfilling business needs for ICT 1 2,73% 2,19% 1,85% 1,57% 1,25% 1,12% 1,06% 0,87% 0,71% 2nd in Europe for mobile 4G coverage 2 % of disposable income Advertised download speed above 12 and up to 30 Mbps 2015 Source 1: IMD World Competitiveness Yearbook, 2017 Source 2: OpenSignal, 2017 Source 3: European Commission Digital Agenda Scoreboard, 2015 World-class infrastructure 7
Logistics: fast connection infrastructure 3 Road & Rail 1 st in CEE for quality of roads 1 Rail cargo services direct to Russia, Belarus, Latvia, Poland, Germany, Ukraine and Asia (incl. China) Air 3 International Airports, access to major European cities within 2-3 hours flight Sea Klaipėda State ice-free Seaport 14.5 m deep port, handling up to 65 million tons of cargo annually, the largest port in the Baltic States 2 Source 1: World Economic Forum, Global Competitiveness Report, 2017-2018 Source 2: www.portofklaipeda.lt Source 3: Girteka Logistics, 2014. Estimates based on two-driver shared shift model World-class infrastructure 8
Cost & quality combined Ranked alongside Ireland, Germany, Switzerland for its business environment, Lithuania can also guarantee a fantastic cost to quality ratio. One of the lowest office rental prices in the region 2 Average gross hourly wages (Eur), 2017 1 41,8 26,7 21,3 8,7 7,6 5,7 4,1 Source 1: Eurostat, 2017 (wages in industry, construction and services, except public administration, defense, compulsory social security) Source 2: European Office Market. Edition 2017, BNP Paribas Real Estate Great quality to cost ratio 9
Business friendly environment 0-15% 21% VAT 0-15% 15% 9% 31.18% corporate profit tax dividends personal income tax social security tax paid by employee social security tax paid by employer 6 Free Economic Zones (FEZ): 0% corporate tax for the first 10 years* 50% discount on corporate tax over the next 6 years* 0% tax on dividends* 0% tax on real estate* Industrial Parks (IP) 6-12 months delivery of build-to-suit manufacturing facilities * Conditions apply Business friendly environment 10
Perfect living pace Lifestyle Vilnius among TOP 10 cities globally with the best work life balance 1 98% of Vilnius inhabitants are satisfied with living here (highest percentage among EU capitals) 2 Cost of living According to the Mercer Cost of Living Index 2016, Vilnius is one of the five least expensive EU capitals to live in for expatriates 3 Keeping you connected with the fastest public Wi-Fi globally 4 Source 1: Expert Market, 2016 Source 2: European Commission, 2016 Source 3: Mercer's 2017 Cost of Living Ranking Source 4: Ooma tests, 2017 Perfect living pace 11
LITHUANIA YOUR TOP OPTION FOR: Global Business Services Manufacturing Technology Sectors 12
#1 Global Business Services ~15,000 professionals employed in the sector 1 34 15% Top 3 the largest number of languages used in a single center 2 yearly growth of SSC sector 2 most desired employers are SSCs 4 The best destination for shared services and outsourcing in CEE 3 Source 1: Invest Lithuania, 2018 Source 2: Lithuania s business services report, 2017 Source 3: Central and Eastern Europe Shared Services and Outsourcing Awards, 2018 Source 4: cvmarket.lt, 2017 Sectors 13
For companies like us that develop advanced solutions, Lithuania provides the perfect mix of exceptional infrastructure and exceptional talent. Arminta Saladžienė, Head of Nasdaq Baltic Nasdaq Technology and Business Support Competence Center FTE 280 Languages Established Functions English, French, German, Spanish, Russian 2015, Vilnius Development and QA Verification of Trading, Clearing, CSD and Governance IT Platforms System Operations, IT Operations Analytics Solutions Accounts Payable and Receivable, Payroll, Financial Control, Business Control, etc. Sectors 14
#1 Global Business Services Presence in Lithuania Technology & HR Centre Functions: IT, HR Languages: English, French, German, Italian, Spanish Headcount: 1110 Established: 2009, Vilnius Global Operations Center Functions: F&A, HR, IT, Customer operations, Procurement, other Languages: 34 languages Headcount: 1950 Established: 2010, Vilnius Shared Service Center Functions: F&A, HR, IT, Legal Languages: English, Danish, Norwegian, Swedish, Finnish Headcount: 2760 Established: 2012, Vilnius BPO Functions: IT, Customer operations Languages: English, Swedish, Danish, Norwegian Headcount: 650 Established: 2007, Vilnius Shared Service Center Functions: F&A, IT, HR Languages: English Headcount: 680 Established: 2014, Kaunas Excellence Center Functions: F&A, HR, Customer operations, IT, Analytics Languages: 10 languages Headcount: 280 Established: 2015, Vilnius Sectors 15
#2 Manufacturing of Lithuania s GDP is generated 19% by its manufacturing sector 1 65% of all manufacturing production is exported 1 DE, PL, US, LV, SE main export destinations 1 Source 1: Statistics Lithuania, 2017 Sectors 16
Our efficiency rates in Lithuania are outstanding. The local team of innovative engineers and the flexible production line we ve put in place have allowed us to exceed the demands of the constantly shifting market needs. Raimundas Petrauskas, Managing Director at Schmitz Cargobull Baltic Schmitz Cargobull Baltic FTE 540 Established Products 1999, Panevėžys Thermo-insulating panels Isothermal transportation equipment: insulated trucks, trailers and semi-trailers Sectors 17
#2 International Manufacturing Presence in Lithuania Products: Reagents Headcount: 810 Established: 2010, Vilnius Manufacturing plant / R&D Manufacturing plant Products: Iso-thermal trucks, trailers and semi-trailers Headcount: 540 Established: 1999, Panevėžys Manufacturing plant Products: Respiratory care products Headcount: 2410 Established: 1996, Pabradė Manufacturing plant Products: Electronic circuit boards Headcount: 770 Established: 1993, Kaunas Manufacturing plant Products: Electrical distribution systems Headcount: 1700 Established: 2014, Panevėžys Manufacturing plant Products: Tobacco Headcount: 540 Established: 1993, Klaipėda Sectors 18
#3 Technology Lithuania s consistent focus on tech education helps to further secure its reputation as a highly attractive location for global tech business players, such as UBER, WIX, UNITY and many others. 31,500 IT specialists in Lithuania 1 2x increase in IT study funding in 2017 1 20% increase in IT student pipeline over 2013-2016 2 Source 1: MOSTA, 2017 Source 2: Ministry of Education and Science, 2016 Sectors 19
As advocates of the can-do attitude, when we first visited Lithuania we were thoroughly impressed by the creativity, energy and entrepreneurial spirit of the people we met. That s the Wix way, and so Lithuania seemed like a natural fit for our company. Boaz Inbal, Manager of External Dev. Centres at Wix.com Wix.com FTE 100 Established Products 2013, Vilnius Wix.com applications and strategic Wix projects, IT and R&D projects Sectors 20
#3 Top Global Tech and Start-up Businesses in Lithuania Activity: Headcount: 35 Established: Activity: Headcount: 100 Established: Technical office Critical infrastructure support, DevOps, software development 2015, Vilnius Development unit Software development, QA, Product Design for Wix.Com web development platform 2013, Vilnius Activity: Headcount: 85 Established: Activity: Headcount: 35 Established: Technical office R&D and QA for Unity engine 2007, Vilnius Development unit Development of public transport app designed to plan journeys using real-time data 2007, Vilnius Development office Head office Activity: Adtech solution development, product management Headcount: 480 Established: 2006 in Vilnius and 2013 in Kaunas Activity: Headcount: 140 Established: Software development, advanced analytics, product strategy 2012, Vilnius Sectors 21
Interested? Here s how Invest Lithuania can help Invest Lithuania is the official agency for Foreign Direct Investment and Business Development. We ll partner with you to get your business set up and off to the best start possible: Decision-making We ll help you make the most informed decisions for your new operations: Tailored in-depth market and industry insights, Advice on business costs, Information concerning the local labour and legal framework. Business Establishment We ll connect you with everyone you need to know to guarantee a soft landing for your set up: Intros and meetings with key market players and relevant governmental institutions, Sourcing of governmental financial support. Business Development Once you are up and running we ll be there with aftercare and support: Assistance with one-off problems, Lobbying for greater governmental support. All of our services are free of charge 22
Contact info Invest Lithuania T. +370 5 262 7438 E. info@investlithuania.com A. Upes str. 23, 08128 Vilnius, Lithuania www.investlithuania.com