Business Environment in Baltic States

Mindaugas ValuckasMember of the Board

Hanner AB

Riga, 10/14/2011

About Hanner

Invests in CEE region:Lithuania, Latvia, Romania, Ukraine, Russia and Belarus

Starts new investments in Germany and Scandinavia

Completed 20 RE projects

Did 3 private equity investments

Veikla

3 Baltic states makes less than 0.5% of total EU GDP

Less than 1.5% of total EU population lives in Baltics

How to compete with big nations?

Market

Huge stable Small volatile Big volatile

West vs Baltics vs East

Bank lending

Reasonable Good / Acceptable Nearly impossible

West vs Baltics vs East

Legal System

Mature and clear Well advanced Very weak

West vs Baltics vs East

Work force

Professional Qualified Inefficient Expensive Reasonable Cheap

West vs Baltics vs East

Corruption

Virtually zero Moderate Uncontrolabe

West vs Baltics vs East

Bureaucracy

Cooperative Improving Unreasonable

Conclusion

Baltics are on a good way in improving business environment, but there still long way to go