Download pptx - Where IT comes together KAUNAS REGION. Source: Statistics Lithuania, VRM, Invest in Lithuania, 2014 Welcome to Kaunas Region, Lithuania! KAUNAS REGION

Where IT comes together

KAUNAS REGION

Source: Statistics Lithuania, VRM , Invest in Lithuania, 2014

Welcome to Kaunas Region, Lithuania!

KAUNAS REGION stats

Regional capital Kaunas City

Population 593,000

Labour pool 289,000

Unemployment 31,300 (10.1%)

FDI growth 11.4%

LITHUANIA stats

Size 65,300 km2

Population 2.97 million

Capital Vilnius

Official language Lithuanian

Currency Lithuanian Litas (LTL)Pegged to Euro since 20021 Euro = 3.45 LTL

Real GDP growth 2013: 3.2%2012: 3.7%2011: 6.0%

FDI growth 8.1 %

Annual inflation 1.2%

Lithuania is at the center of three of large consumer markets: • Western Europe• Baltic Sea Region• Russia and former Soviet States (CIS)

Kaunas Region

KAUNAS REGIONWhere IT comes together

Source: * World Bank, Invest in Lithuania 2014

Lithuania, a gateway to the EU and CIS

• Lithuania allows access to main markets*:– Member of the European Union– Member of the Schengen Agreement

(free trade and travel)– Member of NATO– Member of the Nordic Investment

Bank, and part of Nordic-Baltic cooperation of Northern European countries

• Lithuania is ranked 17th of the world on the Ease of Doing Business Index (higher than e.g. Germany, Latvia or Poland) *

• Lithuania is a low risk country in the Central and Eastern Europe region, making it an excellent alternative for nearby high risk countries as Russia or Belarus

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LithuaniaPolandHungaryRussiaBelarus

European Union is the largest single market in the world (almost double the GDP of China) with over 500 million consumers (source: IMF)

Risk rating of Lithuania compared to other countries (100= most risky)

Source: Economist Intelligence Unit Q2 2014


Lithuania ranked 1st globally on communications technology

Source: Invest Lithuania 2013

• 1st in the World Competitiveness Rankings for communication technology *

• 1st for Internet upload and 3rd for download speed in the EU **

• Among Top 10 countries in the world for cloud readiness **

Sources: * IMD, The Word competitiveness yearbook, 2011-2012 , Invest in Lithuania** Ookla Netindex, 2013 , Invest in Lithuania*** Cisco Global Cloud Index, 2013. The Index evaluates Consumer and Business Fixed Network performance and Consumer and Business Mobile Network performance, Invest in Lithuania

International rankings

IT sector Lithuania

Answer to the question: Communications technology meets business requirementsSource: IMD WCY Executive Opinion Survey based on an index from 0 to 10, 2013 survey results, Invest in Lithuania

• Lithuanians are among the most IT-proficient people of the European Union – 96.7% of individuals aged 16-24 obtain IT skills through formal educational institutes

• More than 24,500 experienced IT professionals are currently employed in Lithuania in 2,185 companies. Over 8,000 employees are active in the area of computer programming

• Lithuania has 6,200 IT students at 7 universities and 14 colleges. A majority of ICT talent is located in Vilnius and Kaunas

• Lithuanian IT professionals feature strong competencies in: Java , Oracle, Microsoft (C#, C/C++, Visual Basic, ASP), Web Based (HTML, PHP, JavaScript, CSS, XML). Other well-spread competencies in the market are: Python, SAP, SharePoint


LithuaniaSwedenNorway

DenmarkLatvia

Hong KongIceland

Finland Israel

12

34

56

78

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8.600 8.800 9.000 9.200 9.400 9.600 9.800

Source: Invest Lithuania 2013

Kaunas Region is next to the capital Vilnius, Lithuania’s second city and an important hub for IT


Callcredit Information groupDematic

UnicallRunway

HPNielsen&Nielsen

IBMSEBNielsenAteaBarclaysCOWIDanske BankMatrix SoftwareWestern unionStorebrand

CSCTranscom Paroc CITCOINWINDOCSC TelecomSwedbank Worldone Mirror

Telia Sonera

BDCOmegaGreencarrier

Lintel

Kaunas Region is proven to be an excellent alternative for the crowded and more costly Vilnius’ market

Highly educated IT talent

Cost attractiveness ICT infrastructure

International accessibilityReal Estate availability

The Kaunas Region provides an unmatched mix of cost-effective talent and high class infrastructure

• The right people• The right education• The right languages

• The right connectivity• The right speed

• The right location• The right direct flights

• The right offices• The right cost advantages

• The right labor cost savings• The right tax scheme In

KAUNAS REGIONit all comes

together


• In Kaunas Region over 5,000 people are employed in the information and communication sector• The Kaunas region workforce is highly educated with 39% of workers having a third level diploma

(Lithuania: 34%; EU: 24%). Virtually all highly educated graduates speak English• The majority of IT talent is located in two largest clusters – Vilnius and Kaunas with more than

4,800 young people studying IT curriculums in these cities• Because of fast-growing IT centers like Barclays, Vilnius is experiencing a tight labour market for

which Kaunas is an excellent alternative• British company Callcredit expanded its IT center in Kaunas from 120 to 200 employees in 2014

benefiting from the large graduate potential Sources: Lithuanian Statistical Department, VRM, Invest Lithuania 2014

Barclays Technology Centre has already reached more than 1000 FTE in less than four years since its establishment in 2009 in Lithuania

Source: Invest Lithuania, 2014

IT students Lithuania by field of study 2012-2013


Highly educated and multilingual talentKAUNAS REGION


35%

20%

17%

16%

6%3%

3% Informatics

Computer Engineering

Software systems and programming

Information systems

Computer network management

IT management

Other

1 Employer cost are based on the following expenses: gross salary, social security, medical and pension costs in addition to social security and performance bonuses

Source: National/Regional Statistical Offices, IMD, UBS, 2014

Full employers cost per person per year (Euro)

Source: Invest in Lithuania, FEZ Kaunas, FEZ Kedainiai 2014

Tax General Free Economic Zone

Income tax 15 %0 % (first 6 years)

50% of the tax rate (subsequent 10 years)

Property tax 1 % 0 %

Dividend tax 15 % 0 %

Tax rates

• In general labour costs in Lithuania are less than half compared to Western European countries and the USA

• Kaunas is a very cost attractive location for IT as employers’ cost levels are 10-15% lower compared to Vilnius and 20-40% lower than in Poland, Slovakia and Hungary

• Standard income tax rate is one of the lowest in Europe at 15%. If established in a Free Economic Zone (FEZ), property and dividend tax is at 0% and income tax is at 0% for the first 6 years and 7.5% for the following 10 years*

Cost attractivenessKAUNAS REGION


Kosice - Sk Katowice - Pl

Gdansk - Pl Tallinn - Est Vilnius - Lith Kaunas - Lith

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5,000

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15,000

20,000

25,000

30,000

Software analyst Software developer

* Source: Invest in Lithuania, FEZ Kaunas, Kedainiai 2014

• The ICT infrastructure in Lithuania (and Kaunas Region) is the best in Europe with 33% of homes/buildings directly connected to fiber

• The most up-to-date ICT technologies are implemented and functioning in the entire country (LTE technology, 3G mobile communications, infrastructure, mobile WiMAX 4G Internet etc.)*

Source: Speedtest.net, 2014 Source: FTTH Council Europe 2013

• Also on the achieved internet speeds Lithuania scores very high at 7th globally

ICT infrastructureKAUNAS REGION


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Lithuania

Sweden

Latvia

Norway

Russia

Bulgaria

Slovakia

Denmark

Portugal

Slovenia

Estonia

Finland

0% 5% 10% 15% 20% 25% 30% 35% 40%

(blue) Fiber-to-the-Home sub-scribers

(grey) Fiber-to-the-Building + LAN subscribers

Lithuania ranked 7th globally on achieved internet speeds (Mbps)

Countries with the highest penetration of fiber-to-the-home / building

* Source: Invest in Lithuania

• Kaunas Region is situated at the geographical centre of Lithuania and is further developing and strengthening its transport infrastructure

• Kaunas Region is well connected by road to Vilnius, Klaipeda, Riga and Poland • Kaunas airport, which is the second largest airport in Lithuania, serves 8 international

destinations (incl. London, Birmingham, Dublin, Oslo and Frankfurt) throughout the year on a weekly basis

• Vilnius International Airport is located within a one hour drive providing 2-3 flights per hour and more daily direct flights to major European capitals and cities

International accessibility KAUNAS REGION


• Kaunas Region provides affordable office space which is 25% cheaper compared to Vilnius

• Kaunas Free Economic Zone (FEZ) provides opportunities for setting up an office. The zone provides favourable and lower taxes for investors investing at least Euro 1 million

• Within the city of Kaunas, new high quality developments are underway to accommodate the business services industry

Note: Cost for a Grade A office space, excluding average local rates and service chargesSource: CBRE, Jones Lang LaSalle, UBS, Ober-Haus, Colliers International ,2014

Source: Invest Lithuania, FEZ Kaunas, 2014

Average annual occupancy costs office (Euro/sqm)

New office building Kaunas City

Availability of affordable real estate KAUNAS REGION


Kaunas - Lith

Kosice - S

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Katowice - P

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Vilnius -

Lith

Tallinn - E

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Gdansk - Pl

020406080

100120140160180


Financial support available per FDI project in the field of services

Construction, Infrastructure, Salary costs Personnel training costs

Up to Euro 1.5 million Up to Euro 2 million

Max. possible support 3.5 million Euro

• Foreign investors interested in locating a business in Lithuania as well as foreign companies already operating in the Lithuanian market but eager to further expand may apply for Invest in Lithuania’s financial investment support of up to Euro 3.5 million per investment project

• Invest in Lithuania provides financial support to cover personnel training costs (up to Euro 2 million) as well as eligible construction, infrastructure and salary costs (up to Euro 1.5 million), incurred by foreign investors establishing a services business unit in Lithuania

• The financial support tool is designed to support foreign businesses investing into the production of export-oriented high-quality services as well as establishment of qualified jobs on the market

National incentives support programKAUNAS REGION


• Information• Consultancy• Analysis• Search• Guidance• Networking• Assistance• Aftercare

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Contact Information: +370 ….@www

Contact usKAUNAS REGION
