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Trade and Investment in Hungary
and new States in the European Union
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Hungary
Land 35919 sq miles - like Indiana
Population 101 millionndash like Michigan
GDPcapita at PPP USD 18840 (2009) ndash half of Florida
(wiiw EIU)GDP 199 b USD - like Connecticut
Arizona (World Bank)
A market of 250 million people within 1000 km
1000 km
EU-member since 2004
GDP growth 2010 +1 (2009 -63)
Export growth 2010 +16 (2009-91)
Industrial production +85 (2009 -159)
Average wage euro 750 (H1 2010)Unemployment rate 2010 113 (2009 101)
Average inflation rate 2010 48(2009 42)
GDP
Output
Inflation
Employment and wages
EU
Improving economic performance in 2010
Source GKI (Economic Research Institute) February 2010
Exchange rate 1 euro= 27149 HUF
2010 2011 2012 2013
Market growth
GDP per head (USD at PPP)
19 100 19 870 20 930 22 160
GDP growth () 03 25 35 33
Stability
Inflation () 44 30 24 20
Budget balance ( of GDP)
-39 -32 -30 -29
Current account balance (mill USD) -7158 -2072 -2655 -3426
Exchange rate (USD) 2201 2289 2275 2258
Competitiveness
Average wages (monthly USD) 9291 9337 9913 10525
FDI inflow(billion USD)
21 42 47 47
Recovery in 2011
Source Economist Intelligence Unit August 2010
Investors continue to see Central-Eastern Europe as top investmentdestination
Ernst and Youngrsquos 2010 European Attractiveness Survey
CEE confronted the crisis situation robustly and regained a top-three ranking as most attractive region
In 2009 Hungary was 6 in FDI job creation and 13 in the number of FDI projects in Europe by European Investment Monitor
Investors continue to see Central-Eastern Europe as top investment destination
Ernst and Youngrsquos 2010 European Attractiveness Survey
Cities in CEE will see the most expansion by 2015
Source European Cities Monitor 2010 Cushmand and Wakefield
Growing Stock of Foreign Direct Investments in Hungary(million EUR)
Source National Bank of Hungary 2010
New methodology
00
100000
200000
300000
400000
500000
600000
700000
800000
199519961997199819992000200120022003200420052006200720082009 2010
Q2
Other capital
Equity and
reinvested
earnings
High FDI stockcapita (EUR 2009)
Source wiiw 2010
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
ErnstampYoung trust of foreign investors already established in Hungary
Established investors considering developing activities in Hungary
5046
4
Yes
No
Cant say
Half of multinational companies are planning to expand
Source Ernst and Young CEE Attractiveness Survey 2009
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Hungary
Land 35919 sq miles - like Indiana
Population 101 millionndash like Michigan
GDPcapita at PPP USD 18840 (2009) ndash half of Florida
(wiiw EIU)GDP 199 b USD - like Connecticut
Arizona (World Bank)
A market of 250 million people within 1000 km
1000 km
EU-member since 2004
GDP growth 2010 +1 (2009 -63)
Export growth 2010 +16 (2009-91)
Industrial production +85 (2009 -159)
Average wage euro 750 (H1 2010)Unemployment rate 2010 113 (2009 101)
Average inflation rate 2010 48(2009 42)
GDP
Output
Inflation
Employment and wages
EU
Improving economic performance in 2010
Source GKI (Economic Research Institute) February 2010
Exchange rate 1 euro= 27149 HUF
2010 2011 2012 2013
Market growth
GDP per head (USD at PPP)
19 100 19 870 20 930 22 160
GDP growth () 03 25 35 33
Stability
Inflation () 44 30 24 20
Budget balance ( of GDP)
-39 -32 -30 -29
Current account balance (mill USD) -7158 -2072 -2655 -3426
Exchange rate (USD) 2201 2289 2275 2258
Competitiveness
Average wages (monthly USD) 9291 9337 9913 10525
FDI inflow(billion USD)
21 42 47 47
Recovery in 2011
Source Economist Intelligence Unit August 2010
Investors continue to see Central-Eastern Europe as top investmentdestination
Ernst and Youngrsquos 2010 European Attractiveness Survey
CEE confronted the crisis situation robustly and regained a top-three ranking as most attractive region
In 2009 Hungary was 6 in FDI job creation and 13 in the number of FDI projects in Europe by European Investment Monitor
Investors continue to see Central-Eastern Europe as top investment destination
Ernst and Youngrsquos 2010 European Attractiveness Survey
Cities in CEE will see the most expansion by 2015
Source European Cities Monitor 2010 Cushmand and Wakefield
Growing Stock of Foreign Direct Investments in Hungary(million EUR)
Source National Bank of Hungary 2010
New methodology
00
100000
200000
300000
400000
500000
600000
700000
800000
199519961997199819992000200120022003200420052006200720082009 2010
Q2
Other capital
Equity and
reinvested
earnings
High FDI stockcapita (EUR 2009)
Source wiiw 2010
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
ErnstampYoung trust of foreign investors already established in Hungary
Established investors considering developing activities in Hungary
5046
4
Yes
No
Cant say
Half of multinational companies are planning to expand
Source Ernst and Young CEE Attractiveness Survey 2009
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
EU-member since 2004
GDP growth 2010 +1 (2009 -63)
Export growth 2010 +16 (2009-91)
Industrial production +85 (2009 -159)
Average wage euro 750 (H1 2010)Unemployment rate 2010 113 (2009 101)
Average inflation rate 2010 48(2009 42)
GDP
Output
Inflation
Employment and wages
EU
Improving economic performance in 2010
Source GKI (Economic Research Institute) February 2010
Exchange rate 1 euro= 27149 HUF
2010 2011 2012 2013
Market growth
GDP per head (USD at PPP)
19 100 19 870 20 930 22 160
GDP growth () 03 25 35 33
Stability
Inflation () 44 30 24 20
Budget balance ( of GDP)
-39 -32 -30 -29
Current account balance (mill USD) -7158 -2072 -2655 -3426
Exchange rate (USD) 2201 2289 2275 2258
Competitiveness
Average wages (monthly USD) 9291 9337 9913 10525
FDI inflow(billion USD)
21 42 47 47
Recovery in 2011
Source Economist Intelligence Unit August 2010
Investors continue to see Central-Eastern Europe as top investmentdestination
Ernst and Youngrsquos 2010 European Attractiveness Survey
CEE confronted the crisis situation robustly and regained a top-three ranking as most attractive region
In 2009 Hungary was 6 in FDI job creation and 13 in the number of FDI projects in Europe by European Investment Monitor
Investors continue to see Central-Eastern Europe as top investment destination
Ernst and Youngrsquos 2010 European Attractiveness Survey
Cities in CEE will see the most expansion by 2015
Source European Cities Monitor 2010 Cushmand and Wakefield
Growing Stock of Foreign Direct Investments in Hungary(million EUR)
Source National Bank of Hungary 2010
New methodology
00
100000
200000
300000
400000
500000
600000
700000
800000
199519961997199819992000200120022003200420052006200720082009 2010
Q2
Other capital
Equity and
reinvested
earnings
High FDI stockcapita (EUR 2009)
Source wiiw 2010
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
ErnstampYoung trust of foreign investors already established in Hungary
Established investors considering developing activities in Hungary
5046
4
Yes
No
Cant say
Half of multinational companies are planning to expand
Source Ernst and Young CEE Attractiveness Survey 2009
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
2010 2011 2012 2013
Market growth
GDP per head (USD at PPP)
19 100 19 870 20 930 22 160
GDP growth () 03 25 35 33
Stability
Inflation () 44 30 24 20
Budget balance ( of GDP)
-39 -32 -30 -29
Current account balance (mill USD) -7158 -2072 -2655 -3426
Exchange rate (USD) 2201 2289 2275 2258
Competitiveness
Average wages (monthly USD) 9291 9337 9913 10525
FDI inflow(billion USD)
21 42 47 47
Recovery in 2011
Source Economist Intelligence Unit August 2010
Investors continue to see Central-Eastern Europe as top investmentdestination
Ernst and Youngrsquos 2010 European Attractiveness Survey
CEE confronted the crisis situation robustly and regained a top-three ranking as most attractive region
In 2009 Hungary was 6 in FDI job creation and 13 in the number of FDI projects in Europe by European Investment Monitor
Investors continue to see Central-Eastern Europe as top investment destination
Ernst and Youngrsquos 2010 European Attractiveness Survey
Cities in CEE will see the most expansion by 2015
Source European Cities Monitor 2010 Cushmand and Wakefield
Growing Stock of Foreign Direct Investments in Hungary(million EUR)
Source National Bank of Hungary 2010
New methodology
00
100000
200000
300000
400000
500000
600000
700000
800000
199519961997199819992000200120022003200420052006200720082009 2010
Q2
Other capital
Equity and
reinvested
earnings
High FDI stockcapita (EUR 2009)
Source wiiw 2010
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
ErnstampYoung trust of foreign investors already established in Hungary
Established investors considering developing activities in Hungary
5046
4
Yes
No
Cant say
Half of multinational companies are planning to expand
Source Ernst and Young CEE Attractiveness Survey 2009
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Investors continue to see Central-Eastern Europe as top investmentdestination
Ernst and Youngrsquos 2010 European Attractiveness Survey
CEE confronted the crisis situation robustly and regained a top-three ranking as most attractive region
In 2009 Hungary was 6 in FDI job creation and 13 in the number of FDI projects in Europe by European Investment Monitor
Investors continue to see Central-Eastern Europe as top investment destination
Ernst and Youngrsquos 2010 European Attractiveness Survey
Cities in CEE will see the most expansion by 2015
Source European Cities Monitor 2010 Cushmand and Wakefield
Growing Stock of Foreign Direct Investments in Hungary(million EUR)
Source National Bank of Hungary 2010
New methodology
00
100000
200000
300000
400000
500000
600000
700000
800000
199519961997199819992000200120022003200420052006200720082009 2010
Q2
Other capital
Equity and
reinvested
earnings
High FDI stockcapita (EUR 2009)
Source wiiw 2010
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
ErnstampYoung trust of foreign investors already established in Hungary
Established investors considering developing activities in Hungary
5046
4
Yes
No
Cant say
Half of multinational companies are planning to expand
Source Ernst and Young CEE Attractiveness Survey 2009
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Investors continue to see Central-Eastern Europe as top investment destination
Ernst and Youngrsquos 2010 European Attractiveness Survey
Cities in CEE will see the most expansion by 2015
Source European Cities Monitor 2010 Cushmand and Wakefield
Growing Stock of Foreign Direct Investments in Hungary(million EUR)
Source National Bank of Hungary 2010
New methodology
00
100000
200000
300000
400000
500000
600000
700000
800000
199519961997199819992000200120022003200420052006200720082009 2010
Q2
Other capital
Equity and
reinvested
earnings
High FDI stockcapita (EUR 2009)
Source wiiw 2010
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
ErnstampYoung trust of foreign investors already established in Hungary
Established investors considering developing activities in Hungary
5046
4
Yes
No
Cant say
Half of multinational companies are planning to expand
Source Ernst and Young CEE Attractiveness Survey 2009
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Cities in CEE will see the most expansion by 2015
Source European Cities Monitor 2010 Cushmand and Wakefield
Growing Stock of Foreign Direct Investments in Hungary(million EUR)
Source National Bank of Hungary 2010
New methodology
00
100000
200000
300000
400000
500000
600000
700000
800000
199519961997199819992000200120022003200420052006200720082009 2010
Q2
Other capital
Equity and
reinvested
earnings
High FDI stockcapita (EUR 2009)
Source wiiw 2010
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
ErnstampYoung trust of foreign investors already established in Hungary
Established investors considering developing activities in Hungary
5046
4
Yes
No
Cant say
Half of multinational companies are planning to expand
Source Ernst and Young CEE Attractiveness Survey 2009
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Growing Stock of Foreign Direct Investments in Hungary(million EUR)
Source National Bank of Hungary 2010
New methodology
00
100000
200000
300000
400000
500000
600000
700000
800000
199519961997199819992000200120022003200420052006200720082009 2010
Q2
Other capital
Equity and
reinvested
earnings
High FDI stockcapita (EUR 2009)
Source wiiw 2010
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
ErnstampYoung trust of foreign investors already established in Hungary
Established investors considering developing activities in Hungary
5046
4
Yes
No
Cant say
Half of multinational companies are planning to expand
Source Ernst and Young CEE Attractiveness Survey 2009
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
High FDI stockcapita (EUR 2009)
Source wiiw 2010
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
ErnstampYoung trust of foreign investors already established in Hungary
Established investors considering developing activities in Hungary
5046
4
Yes
No
Cant say
Half of multinational companies are planning to expand
Source Ernst and Young CEE Attractiveness Survey 2009
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
ErnstampYoung trust of foreign investors already established in Hungary
Established investors considering developing activities in Hungary
5046
4
Yes
No
Cant say
Half of multinational companies are planning to expand
Source Ernst and Young CEE Attractiveness Survey 2009
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Eighty percent of German investors would chose to locate in Hungary
German-Hungarian Industry and Trade Chamber Economic Trend Report Hungary 2010
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
FDI stock by country of origin 2008
Major investors Germany Austria Holland (Europe 75)
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
FDI stock by sector 2008
Manufacturing Services
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
At the cross roads of 4 main European transportation corridors
Extensive road and railway transportation network
Highly developed logistics and telecommunications infrastructure
Excellent access to key markets
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
CushmanampWakefield evaluatedthe European logistics sector
Hungary ranks 3rd in the keycost-benefit factors
CEE is a much sought after logistics and distributionlocation
Hungary offers a plentiful supply of land and availableproperties
Source CushmanampWakefield European Distribution Report 2008
Hungary 3rd in European Distribution Report
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Expanding highway network
Prague 5 hrs
Munich 6 hrs
Hamburg 8hrs
Bucharest 10 hrs
Constanza 12 hrs
Zagreb 1 hr
Trieste 6 hrs
Koper 6 hrs Beograd 4hrs
Vienna 1 hr
Rotterdam 12 hrs
Warsaw 10 hrs
Kyiv 12 hrs
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Lively Office market
bdquoArdquo class offices
Stock in Budapest (2009 Q4)3000000 m
Average rental price (headline rents) Budapest
EUR 12-15m month EUR 20 m month (premium categories)
University cities EUR 8-12 m month
Vacancy rate in Budapest in 2009 Q4 249
Business infrastructure in Hungary - Top-quality telecommunications services- Easy access to 3T xDSL connections
Millennium TowerMillennium TowerCorvin Offices
Capital Square
EiffelSquare
Source CBRE 2010 Q1
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Low Corporate Income Tax
Source European Commission 2010 France Germany Asia KPMG 2009
CountryCorporate income
tax
France 3333
Spain 3000
Germany 2944
UK 2800
Greece 2500
Czech Republic 1900
Slovakia 1900
Poland 1900
Hungary 1019
Asian countriesCorporate income
tax
Japan 4069
Malaysia 2500
China 2500
South Korea 2420
Singapore 1700
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
International schools in BudapestBritish American German French Chinese Japanese Austrian etc
Private medical services Well-known across Europe
Entertainment facilitiesThermal baths wellness recreations centres throughout the countryPublic golf coursesRich cultural lifeExcellent food and wine
Expats like Hungary
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Quality of life in Hungary
Rank CountryFinal
Score
1 France 82
2 Australia 81
3 Switzerland 81
4 Germany 81
5 New Zealand 79
hellip
20 Hungary 74
hellip
24 Czech Republic 73
25 United Kingdom 73
hellip
27 Slovenia 72
hellip
35 Poland 71
hellip
41 Ireland 70
43 Slovakia 69
44 Bulgaria 69
hellip
53 Romania 65
Hungary excels in civil liberties safety and health
Source International Living 2010
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Hungary is perceived as a quality location
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
61
64
56
54
69Telecommunication infrastructure
Transport and logistic infrastructure
Local labor skills level
Quality of education
Quality of life
Top 5 satisfaction assets
Respondents 202
rsquoVery attractiversquo + lsquofairly attractiversquo responses
Hungary Attractiveness Survey 2009
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Higher education - Well trained creative and flexible human capital
90 of students speak English
2nd most popular foreign language German
Followed by French Italian Spanish
All degrees include foreign-language certificate and computer skills
Budapest
SzegedPeacutecs
Veszpreacutem
Miskolc
Debrecen
University Towns
Number of institutions in higher education 70
Number of locations 172
Number of students in higher education 381033
Majoring in
Business and Administration 91501
Engineering 34622
Informatics 31021
Foreign languages 14100
Number of graduates in 2008 55368
Academic year 20082009
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the labour regulations
According to the surveylabour regulations do not hinder business activities
Source IMD World Competitiveness Yearbook 2010
Rank Country Scores
1 Iceland 78
2 Singapore 75
3 Switzerland 73
19 Hungary 50
20 United Kingdom 48
23 Ireland 47
35 Bulgaria 41
38 Poland 40
40 Slovak Republic 38
46 Czech Republic 35
48 Romania 33
Liberal labour regulations
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Source IMD World Competitiveness Yearbook 2010
High number of working hours
IMDrsquos World Competitiveness Yearbook ranks 58 countries by the working hours
According to the surveyHungary ranks 26 among58 countries
Rank Country
Average
number of
working hours
per year
1 Qatar 2600
2 Korea 2312
3 Hong Kong 2295
19 Bulgaria 1993
25 USA 1911
26 Hungary 1909
30 Czech Republic 1859
32 Slovak Republic 1827
44 United Kingdom 1762
46 Poland 1756
53 Spain 1714
54 Romania 1712
55 Germany 1704
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
The World Economic Forum ranks Hungary 18 of 131 countries for the quality of scientific research institutions
Source Global Competitiveness Report World Economic Forum 20102011
Strong scientific capacity
Country Ranking
Israel 1
Switzerland 2
USA 4
Germany 6
Japan 15
Ireland 16
Hungary 18
Czech R 21
Austria 20
China 39
Spain 43
Poland 47
Greece 88
Slovakia 90
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Monthly gross average wages in EUR in 2008
latest available year 2007
EU27 - average
Source National statistical offices 2009
Low competitive average wages
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Still attractive labour costs in CEE 2010
Source Eurostat JP Morgan forecasts for 2010
Level as of euro area hourly labour costs in industry and services
0
5
10
15
20
25
30
35
40
Pl Hu Sk Cz
2000
2010f
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Competitive wage levels in Budapest
Source UBS Wealth Management Research Prices and Earnings 2009
The survey of 73 cities found that wages costs in Budapest are verycompetitive in Europe
CityGross wage levelNew York=100
Copenhagen 1255
Zurich 1158
Geneva 1115
New York 1000
Munich 879
Dublin 841
Chicago 802
Tokyo 740
Vienna 720
London 690
Madrid 551
Barcelona 549
Seoul 303
Prague 248
Warsaw 214
Bratislava 212
Budarest 186
Bucharest 154
Sofia 134
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Cost of staff
Europersquos largest companieswere asked to rank cities in terms of cost of staff
Budapest is in the thirdplace
Source CushmanampWakefield European Cities Monitor 2009
City Rank Score
Bucharest 1 151
Istanbul 2 119
Budapest 3 116
Warsaw 4 104
Lisbon 4 104
Leeds 6 081
Prague 6 081
Berlin 15 038
London 28 012
Madrid 12 053
Paris 28 012
Vienna 27 013
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Future expansion plans of large companies
The cities in CEE are the most popular destinations for potential expansion
Budapest is anticipated to attract a large numbers of investors
Source CushmanampWakefield European Cities Monitor 2009
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Average office rents in the CEE and in Europe
Source Jones Lang LaSalle 2009
0
10
20
30
40
50
60
Budapest Berlin Warsaw Prague Bucharest Brussels Paris
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Budapest is the best city to live in within CEE
Source Economist Intelligence Unit 2010
Liveability ranking 2010
stabilityhealth care culture and environmenteducation andinfrastructure
Education received an outstanding 100 points in Budapest
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Benefit from a good balance of quality and cost of labour
Take advantage of high-quality infrastructure and a stable business environment
Build on Hungaryrsquos knowledge-based economy
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
The strength of the ICT sector with good eSkills strategic assets for Hungary
Hungaryrsquos ICT sector represents a fifth of its exports the third highest in the EU The percentage of persons employed withICT user skills exceeds the EU averageMajor software developers IBM HP Siemens CISCO SAP Oracle Microsoftand TATASeveral IT companies such as BT EDS-HP and Getronics operate technology service centres in HungaryICT-related RampD drives more than a quarter of total RampD
Source Europersquos Digital Competitiveness Report - i2020 ndash ICT Country Profiles August 2009
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Biotechnology amp Pharmaceuticals
The 5th largest drug producer in EuropeHungary ranks top in clinical research (Buck Consultants)
Hungaryrsquos biotechnology sector on par with some Western European countries (Eurapabio 2009)
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Original manufacturers Suzuki Audi Suzuki 282000 pcs (2008) Audi Motor 60000+ TT coupeacutes and roadsters A3
cabriolet
Engine manufacturing (2008)
Audi Hungary 19 million engines
GM Opel 400 thousand engines
Automotive electronics prod+RampDBosch ThyssenKrupp Knorr Bremse etc
TIER 1s14 of the worldrsquos top 20 present inHungary
Automotive
Worldrsquos 2nd largest powertrain plant in Hungary by Audi
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Largest electronics producer andexporter in the CEE
Major global manufacturers Samsung GE Philips Sanyo Sonyand Jabil Flextronics
Booming sectors IT manufacturing telecommunications consumer electronics
Electronics
bdquoHungary provides an ideal environment for electronic manufacturing services as the country has good industrial infrastructure and a strong industrial
culturerdquo Hannu Hanatala Managing Director Elcoteq
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Renewable energy
Hungary plans to reach 13 of RES in total energy production by 2020 Major areas of growth biomass biogas wind powerCompulsory feed-in tariff of between 5-13 cents depending on plant sizeEU provides EUR 600 million to support renewable energy-related investmentsEmerging solar panel technology industry
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Shared Service Centers
Hungary had the highestnumber of shared service investments between 2002-2006 in Europe (ErnstampYoung 2007)
SSCs throughout the country Debrecen Miskolc Peacutecs Szeacutekesfeheacutervaacuter etc
Positive feedback fromcompanies already present in Hungary
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
The logistics sector gives 45 -5 of the Hungarian GDP
Logistics activities are the most often outsourced
Integrated Supply Chain solutions and logistics services provided by global contract logistics players 0
2
4
6
8
10
12
14
16
18
20
2001
2002
2003
2004
2005
2006
e
2007
e
2008
f
2009
f
2010
f
2011
f
2012
f
Turnover in billion USD
Logistics
Dynamic growth of the logistics market
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Innovation in Hungary
Large presence of multinationals investinginto RampD activities
Continuously expanding RampD investments inautomotive manufacturing software development and life sciences
Latest developmentsLife sciencesAMRI (USA) CodexisRichterEGIS-ServierSanofiICTEricsson (Sweden) SAPOracleAutomotiveSchefenacker ZF Knorr-Bremse Valeo
Bosch
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Hungarian Investment Projects (HIP) competitive projects for financial and strategic investors
More than 40 outstanding innovative projects
Biotechnology (15) euro1000000 - euro15000000
(ROI 3-8 years)
ICT (5) euro200000 - euro1000000
(ROI 1-5 years)
Renewable Energy (10) euro500000 - 150000000
(ROI 5-10 years)
Tourism (10) euro25000000 - euro100000000
(ROI 8-20 years)
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Our references
HanKooK
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom
Thank you for your attention
Istvan A MOLNARInvestment and Trade
Commissioner
Hungarian Consuate GeneralLos Angeles CA
Phone (310) 479-7878E-mail istvanmolnar at itdhcom
Internet wwwitdhcom