MADE IN POLAND

MADE IN POLANDpresented by: Mrs ILONA ANTONISZYN-KLIK

Deputy Minister of Economy Republic of Poland

November 6, 2013, Tel Aviv

LEADING SECTORS OF THE POLISH ECONOMY

ECONOMIC GROWTH AND LABOR PRODUCTIVITY

• Significant growth potential,

• Dynamic increase in labor productivity – one of the highest in the EU work management improvements Introduction of new technologies Investment in human capital

• Over the past 16 years Poland has registered higher GDP per capita growth than the other EU states and the US

GDP per capita growth in Poland, EU27 and in the USA in 1996-2014* Source: Eurostat

INCREASE IN POLISH EXPORT VALUE

• 9-fold export increase over the last 18 yeasr – from 15,5 to 146 billion euro

• Changes in export structure: Increasing share of technically advanced goods, Increasing number of knowledge-based services rendered

• Key export products: machinery and electrical equipment – 23,71% means of transportation and parts thereoff – 14, 26% base metals – 11,72% plastics and rubber – 7,08%

• Main trading partners: Germany - 25,1% United Kingdom - 6,8% Czech Republic- 6,3%

• Increase in exports to the East-Central Europe countries is further projected.

DIRECT FOREIGN INVESTMENTS IN POLAND

• Poland ranks 4th in terms of investment attractiveness in Europe and 14th in the world.

• First rank in terms of investment attractiveness in East-Central Europe

• The increase of investment project number by 22 % - the highest growth among the European countries

• New investment projects mainly in the modern fields: business process outsourcing (BPOs), shared services centers, ITC technologies, automotive industry, R&D, aerospace,

*the newst survey of UNCTAD (2013)**Ernst & Young’s report (2013) and Best Countries for Business report, Bloomberg 2013

POLAND’S ATTRACTIVENESS TO FOREIGN INVESTORS

• One of the largest European consumer markets stable internal demand access to qualified human resources low labor costs

• Stable and innovatine financial sector Warsaw Stock Exchange – the largest stock eschange in the

East-Central Europe, one of the world leaders in contactless (by proximity cards)

payment systems over 16 million proximity cards users

*National Bank of Poland’s data as of 1st quarter of 2013

POLAND IS ALSO THE LARGEST FOREIGN INVESTOR AMONG THE EAST-CENTRAL EUROPEAN COUNTRIES* * UNCTAD (2012)

THE MOST PROMISING SECTORS

POLISH FOOD SPECIALITIES

THE FOOD INDUSTRY

• Modernization as well as technical and organizational improvements

• Production structure similar to those of highly-developed countries

• Competitive and renowned - on many foreign markets - products

• 358.000 people employed – 14,5% of overall employment in the industry sector*

• 14,2% of the global output of the Polish manufacturing sector

*data as of 2012

(Central Statistical Office)

THE VALUE OF THE POLISH FOOD MARKET AMOUNTED TO 55 BILLION EUR IN 2012

EXPORT POTENTIAL

• Threefold increase in agri-food exports over the last 9 years

• Changes in export structure decreasing exports of agricultural commodities, growing volume of processed agricultural

products • Most promising sectors:

meat dairy fruit and vegetables confectionary secondary cereals processing

• Strenghts: cost-price competitiveness high quality tasteThe value of exports of selected agricultural product

groups in Poland in 2011, in millions of eurosSource: The food sector in Poland in 2011, Polish

Information and Foreign Investment Promotion Agency

DEFENSE INDUSTRY

THE POLISH DEFENSE MARKET

• Centered around the Polish Defense Holding (former BUMAR) 40 companies 10.000 people employed

• The ongoing consolidation of the sector• Dynamic growth of the sector is projected• Attractive offer:

anti-air raid and anti-missile defense systems, reconnaissance and command systems, balistic protection,

different types of weapons: pistols, rifles and sniper rifles armored vehicles, ammunition and rackets

EXPORT POTENTIAL

• Increasing investments in R&D,• The Polish Defense Holding features second highest– among the Polish

companies – spending on R&D in Poland, • 130 billion PLN assigned to the modernization of the Polish Army over the

next 10 years • Significant growth in export opportunities of the sector

*ranking of the Economics Institute of the Polisf Academy of Sciences/ 2012

MEDICAL TOURISM

THE POLISH MEDICAL TOURISM MARKET

• Modern diagnostic and therapeutic equipment • Main services rendered: broad range, high quality, short waiting lists,• Most popular services:

dental treatment plastic surgery, eye surgery cardiac surgery orthopedics esthetic medicine rehabilitation

• Medical staff: highly qualified familiar with foreign languages friendly

• Attractive prices - often half the price asked by the Western European countries

• 300.000 patients annually • annual turnover of 190 million PLN

EXPORT POTENTIAL

• Anticipated annual growth: 13-15% • Second - after Hungary – most visited country in terms

of dental treatment tourism • Export highlights:

Polish sports orthopedics complex heart surgeries treatment of hearing disorders

• Years of experience in SPA services over 40 health resorts 600 wellness and SPA resorts seaside, lakeside and mountain resorts natural treasure – minaral and healing waters unique microclimate

Visitors by country of originsource: tourmedica.pl

THE VALUE OF THE POLISH MEDICAL SERVICES MARKET IS ESTIMATED AT 7,1 BILLION EUR

CLOTHING, ACCESSORIES AND LEATHER GOODS

CLOTHING, ACCESSORIES AND LEATHER GOODS MARKET

• Market structure: mainly SMEs traditional, family-operated companies

• 39.000 pleople employed in textile production, • almost 79.000 employed in garment production, • nearly 20.000 in leather goods production, • 6,8% of the overall employment in the Polish industry sector• the growing importance of the Eastern Poland macroregion:

production of popular on Western markets underwear a wide range of designs, decorations, colors, styles, prices

and sizes,

EXPORT POTENTIAL

• ability to compete effectively with foreign companies qualified staff, increasing quality of products, investment in modernization of production lines modern machinery changes in production patterns growing customer awareness, demand for quality products of

niche manufacturers

• Export highlights: jackets hosiery for men dresses and skirts throusers and shorts for men two-piece dresses ensembles for women and suits for men

THE POLISH CLOTHING AND FOOTWEAR MARKET WAS WORTH 6,9 BILLION EUR IN 2012

MINING EQUIPMENTAND MACHINERY

THE MINING EQUIPMENT AND MACHINERY MARKET

• One of the traditional, innovative, and sustainable sectors of the Polish economy

• More than 1000 enterprises• Four major capital groups, listed on Warsaw • Stock Exchange:

Famur S.A., Kopex S.A., Fasing S.A. Bumech S.A.

EXPORT POTENTIAL

• Supplies to the major mining operations throughout the world

• Varied offer: machinery and equipment for open-cast and

underground mining transportation systems, hydraulic and pneumatic drives, gas detection systems, ventilation systems, air conditioning systems, mine rescue equipment,

POLISH COSMETICS INDUSTRY

COSMETICS INDUSTRY

• The most commercially sucessful products:

beauty products for men, dental care products, hair-removal products, make-up removers,

• High-quality educational institutions• Poland is one of the two European

countries that offer Cosmetology as a degree course (at a university level),

THE TOTAL VALUE OF THE POLISH COSMETICS INDUSTRY WAS ESTIMATED AT 3,4 BILLION EUR IN 2012

EXPORT POTENTIAL

• 6th rank in Europe in terms of export value – 5-fold increase over the last 10 years

• Products available on 130 markets, even remote ones, such as:

Trinidad and Tobago New Zealand Chile United Arab Emirates

• Alternative to established brands: innovation attractive prices high quality

• Extensive R&D microbiological and physico-chemical tests dermatological tests

Destinations of the Polish cosmetics exports in 2011. Source: Central Statistical Office

PROTECTION AND PRESERVANCE OF MONUMENTS

THE POLISH PROTECTION AND PRESERVANCE OF MONUMENTS MARKET

• The industry includes conservators of historic buildings archeologists manufacturers of stone and building materials

EXPORT POTENTIAL

• Highly-specialized companies: comprehensive service and support rich experience

• The Polish archeologists and conservators working all over the world, participated, inter alia, in the renovation of: Merefnebef’s tomb, reliefs and paintings discovered in Saqqara, Egypt, several churches in the Old Dongola, Sudan virtual reconstruction of the destroyed temple of the

Pharaoh Tuthmosis III at Deir el-Bahri in Upper Egypt

CONSTRUCTION

THE POLISH CONSTRUCTION MARKET

• Main development drives: road investment projects rail infrastructure investments construction of sports facilities

• Significant contribution of the European Football Championships in 2012 (hosted by Poland and Ukraine) to the development of construction market

• Many Polish construction materials and services recognizable around the world

• Highly competitive, innovative products: high quality attractive prices

CONSTRUCTION IS A KEY SECTOR OF THE POLISH ECONOMY, CONSTITUTING 12% OF THE NATIONAL GDP AND PROVIDING JOBS TO 12 % OF ALL THE EMPLOYED.

EXPORT POTENTIAL

• Most appreciated abroad Polish construction products : ceramics and fittings

construction chemicals

woodwork (floors, stairs)

plate

roofings

mortars

finishing materials

• Large export potential of heating elements improving the energy

efficiency

• Most wanted services: of geodesists and geologists

repair and assembly works

works on the building facades and on electrical installations

construction works

photovoltaic and solar services

interior design

Main recipients of the Polish exports. Source: Central Statistical Office

WOODWORK (WINDOWS AND DOORS) INDUSTRY

THE POLISH WOODWORK (WINDOWS AND DOORS) MARKET

• one of the most innovative sectors of the Polish

economy

• 14,4 million windows and doors sold in 2012

products with identical quality to those offered

by leading global companies, yet

with slighly lower prices

EXPORT POTENTIAL

• 1st rank in the EU in terms of export value • 50% of sector exports – PCV doors and

windows, • Leader in roof windows - about 40% of the

global production• Strenghts:

ever increasing quality broad range of products innovative solutions

• ecology and energy efficiency• safety

Structure of the Polish woodwork exports in 2011. Source: ASM, Centre for Research and Analysis

IN 2012, FOR THE FIRST TIME IN HISTORY, THE VALUE OF THE POLISH EXPORTS OF WINDOWS AND DOORS EXCEEDED 1 BILLION EUROS.

PRODUCTION OF MEDICAL AND MEASUREMENT DEVICES

THE POLISH MEDICAL AND MEASUREMENT DEVICES MARKET

• Competitive products: high, certified qulity advanced technology high reliability long life only certified materials used (surgical

instruments)

• 1,2 billion EUR – the market value in 2011 r. • Dynamic growth rate at 22% annually• 36 industrial and technology parks (creation

of additional 28 parks is planned)• Projected annual growth rate at 25% (since

2013)

The value of the Polish medical market in the years 2009 – 2014 in mio EUR. Source: PMR Publications, 2012 r

EXPORT POTENTIAL

• Main trading partners– Germany (148 million EUR annually) and the other EU countries

• most desired products: bioelectronic apparatus, electrosurgical, telemedicine and audiovisual

communications systems infusion pumps operation room lamps cardiomonitors defibrillators with monitoring function medical furniture radioisotopes software

Structure of the Polish medical equipment exports in 2011. Source: UN Comtrade

THE VALUE OF MEDICAL DEVICES EXPORTS INCREASED FROM 13,73 TO 387 MILLION EUR OVER THE YEARS 1992-2011

YACHTS AND PLEASURE CRAFTS

THE YACHT AND PLEASURE CRAFTS MARKET

• 900 companies offering employment to 35.000 people (2011),

• production capacity – 22.000 vessels per year• main products:

motor boats 6 to 10 meters in lenght motor boats up to 9 meters in lenght – Poland is second

only to US in their production• Strenghts:

modern and innivative technologies and designs high quality and perfect finishing attention to details modern trends latest designs

THE POLISH LUXURY YACHTS CAN BE FOUND IN MARINAS OF MONTE CARLO, MIAMI AND MANY MORE

EXPORT POTENTIAL

• 90% of production is meant for export

• Most desired boats: economic vessels- up to several thous. EUR luxury yachts- several million EUR

• Main markets: Western Europe Scandinavia Mediterranean countries

Value of the Polish exports in 2006-2011 in mio EURSource: Central Statistical Office, 2012 r.

BIOTECHNOLOGY AND PHARMACEUTICAL INDUSTRY

THE POLISH BIOTECHNOLOGY AND PHARMACEUTICAL MARKET

• Growth factors: highly-qualified staff over 8 thousand students at 36 colleges

and univeristies R&D innovation protected by patents infrastructure development

• Research in biotechnology and molecular biology - 111 scientific institutions, 2.8 thousand scientists

• 6 dynamically operating biotechnology development centers

main groups of innovative products developed by the Polish biotechnology companies. Source: BIOTECH & PHARMA, Sector Promotion Programme Leaflet,

2013

THERE ARE 70 BIOTECHNOLOGY AND MORE THAN 140 PHARMACEUTICAL COMPANIES IN POLAND

EXPORT POTENTIAL

• One of the most promising markets in Europe

• Numerous innovative research centers

• Highly-qualified staff

• Well-developed resource base

• Competitive labor costs

IT/ ICT SERVICES

THE POLISH IT/ICT SERVICES MARKET

• Market segments: hardware software IT/ ICT services household electronics mobile applications, video games

• Strenghts: highly-qualified staff innovation creativity

• IT project designed for: health care sector telecommunications financial institutions defense industry automotive industry

The sectors with the companies featuring the largest share of IT sales Source: TOP200 Computerworld, 2012

POLAND IS THE FIFTH LARGEST ECONOMY IN EUROPE IN TERMS OF EMPLOYMENT IN ICT SERVICES. MORE THAN 5 % OF INDUSTRY PROFESSIONALS IS EMPLOYED IN POLAND.

EXPORT POTENTIAL

• One of the major IT/ ICT solutions provider in Europe • Export:

hardware (mainly to the Czech Republic) software video games mobile applications consumer electronics (ICT)

• Main markets: Germany France the USA

• Successes in international competitions: ImagineCup Code Jam Central European Programming Contest (CEPC)

JEWELRY (AMBER)

THE POLISH JEWELRY (AMBER) MARKET

• Polish jewelry appreciated all over the world • unique designs:

modern trends long tradition and rich experience attention to details, high quality latest production technologies

• 60% of turnover is generated by SMEs• Dynamic growth – amber sector currently employs nearly 10.000

thous. people (while only 480 back in 1990) modern design original amber jewelry collections very fashionable (true „renaissance” of the sector)

POLAND IS THE WORLD LEADER IN AMBER JEWELRY MANUFACTURE, AS WELL AS THE THIRD EUROPEAN AND THE SEVENTH GLOBAL IN TERMS OF SILVER GOODS PRODUCTION

EXPORT POTENTIAL

• 12th rank in the EU in terms of value of jewelry sales (400 million EUR)

• 70% of shares in global market of amber jewelry

• Main markets

the USA

Western European countries

great opportunities for exports to Asian countries, particularly to China

increase in exports to former Soviet Union countries - Russia, Ukraine and

Kazakhstan mainly

FURNITURE INDUSTRY

THE POLISH FURNITURE MARKET

• One of the most dynamic and competitve sectors of the Polish processing

industry

innovation and the pioneering production techniques

use of modern materials

attractive design

high quality

competitive prices

well-established cooperation among entrepreneurs, scientists and designers

POLAND IS ONE OF THE GLOBAL LEADERS IN THE INDUSTRY - THE FOURTH EXPORTER OF FURNITURE IN THE WORLD AND THE THIRD IN EUROPE.

EXPORT POTENTIAL

• The value of furniture exports accounts for 5% of total Polish exports• Almost 90% of furniture manufactured in Poland is exported• The industry generates incomes of approx. 6,42 billion EUR• The EU member states are the main buyers of the Polish furniture (85% of

exports), Germany - (39%) France – (9%) others, maninly the Czech Republic, the UK, Sweden and

the Netherlands • Main exports:

upholstered furniture (21% of exports) dining and living room furniture (20%)

THANK YOU FOR YOUR ATTENTION