ey bilas ilas baltic fdi trends 2015

FDI trends in the Baltics

June 2015

June 2015

► FDI trends in Europe 2015

► FDI trends in CEE

► FDI trends in Baltics

Agenda

European Attractiveness Survey 2015Baltics trends

June 2015

Number of FDI projects in Europe (% Western Europe / CEE)

+10% in FDI projects in 2014

22%

78%

2010

3 758

25%

75%

+10%

20%CEE

80%

2013 20142012

20%

4 341

WE

3 957

80%

3 909

22%

3 797

78%

2011

Europe

Source: EY’s Global Invesment Monitor 2015


June 2015

Jobs creation in Europe (% Western Europe / CEE)

+12% in terms of job creation by FDI in 2014

57%

43%

2010

137 357

52%

48%

+12%

52 %CEE

49%

2013 20142012

51%

185 583

WE

166 283

48%

158 036

50%

170 434

50%

2011

Europe



June 2015

Intra-European FDI dominates the European market

14% 12% 13% 12%

26% 26% 27% 26% 25%

51% 52% 52% 51% 52%

11%

5%5%5%5%

CanadaOthers

United States

JapanChina

Europe

2014

4 341

2%

2013

3 957

1%4%

2012

3 797

2%3%

2011

3 909

2% 4%4%

2010

3 758

2% 4%3%

Geographic origin of investors in Europe (% of FDI projects, 2010-2014)

Europe



June 2015

Software and business services capture the most FDI projects

Top 10 sectors (FDI projects, 2014)

Europe


146

163

165

188

214

226

287

300

365

646

Chemicals

Pharmaceuticals

Electrical

Plastic & Rubber

Software

Automotive

Food

Financial Intermediation

Business Services

Machinery & Equipment


June 2015

Manufacturing and logistics record the largest growth

FDI projects by activity in Europe

Europe


31154

278292284

1 018

1 900

29159

286290361

1 226

1 990

+20%

BusinessSupportServices

Research &Development

LogisticsManufacturing

+3%-6%

+3%-1%+27%

+5%

Education& Training

HeadquartersSales &Marketing

20132014


June 2015




Agenda


June 2015

The Baltic growth (+9%) in line with the European growth (10%)


FDI trends in CEE countries in 2014 (number of projects)


CEE

3338

6360

34

52

9398

114107

354646

536062

101109

125132

RussiaPoland Turkey

-12%

+6%

-27%

+21%

+76%

Baltics Romania Slovakia CzechRepublic

Serbia Hungary Bulgaria

+23%

+9%+11%

+19%

+10% 20132014

Baltics#1 per capita

June 2015

Poland is a major competitor for Baltic countries


1. Poland 202. Russia 173. Czech Republic 174. Slovakia 155. Turkey 139. Baltics 2

1. Baltics 162. Poland 143. Bulgaria 94. Slovakia 55. Hungary 5

1. Baltics 142. Russia 123. Poland 104. Turkey 65. Ukraine 5

Top 3 sectors in CEE countries in 2014 (number of projects)

CEE

71 69

112

Automotive

Software Food


June 2015

Baltics lead the way with Poland


1. Poland 742. Russia 693. Baltics 464. Turkey 445. Slovakia 39

1. Turkey 462. Russia 343. Poland 304. Baltics 215. Romania 9

1. Baltics 202. Poland 133. Bulgaria 124. Slovakia 75. Romania 5

Top 3 activities in CEE countries in 2014 (number of projects)

CEE

19074

465

Manufacturing

Sales &Marketing

BusinessServices


June 2015




Agenda


June 2015

FDI trends in Baltic countries

The number of FDI projects in the Baltics grew almost at the samespeed as in Europe in 2014

101

26%

36%

39%

2013

93

33%

31%

35%

+9%

Estonia

Latvia

Lithuania

2014Source: EY’s Global Invesment Monitor 2015

Baltics


Latvia

Lithuania

2013

4 418

24%

35%

42%3 379

15%

48%

37%

2014

+31%

Estonia

Jobs creationNumber of FDI projects

June 2015

Investors to the Baltic countries (number of FDI projects, 2014)

Nordics and European countries are the largest investors to theBaltic countries

13

Others

36

11

Russia & CIS

18US

Rest of Europe

Nordics


Baltics


Finland 14

Sweden 9

Norway 9

Denmark 4

United Kingdom 6

Belgium 3

France 2

Germany 2

Russia 9

Ukraine 2

Belarus 1

Azerbaijan 1

101

23

June 2015

USA Vilnius (LT) New center for stock exchangefirm nc

USA Vilnius (LT) New service centre 400

Examples of significant projects in 2014



Baltics

Company Origincountry Location Activity Employment

Finland Tallinn (ES) New factory forelectromechanical equipment 320

France Riga (LV) New plant for electric company 180

UnitedKingdom Vilnius (LT) Expansion of shared services

centre with HR division 80

USA Vilnius (LT) Expansion of IT developmentcentre 50

Russia Tallinn (ES) New plant for cosmeticscompany 100

June 2015

Appendices


June 2015

Manufacturing and logistics record the largest growth

FDI projects by activity in Europe

Europe


31154

278292284

1 018

1 900

29159

286290361

1 226

1 990

+3%+27%

+3%-1%

+20%

+5%

Education& Training

HeadquartersBusinessSupportServices

-6%

LogisticsManufacturingSales &Marketing


20142013


June 2015

Automotive sector leads the way


Target sectors in CEE in 2014 (number of projects)


CEE

308

30

34

37

39

50

51

63

69

71

112

Electrical

Chemicals

Automotive

Food

Plastic & Rubber

Software



Non-metallic mineral products

Business Services

Others

June 2015

Target activities in CEE in 2014 (number of projects)

Manufacturing activities outdistance other activities



CEE

6

9

54

66

74

190

465

Education & Training

Reserach & Development

Headquarters

Business Services

Sales & Marketing

Logistics

Manufacturing

June 2015

175

200

205

240

275

300

345

380

420

783

Chemicals

Other Transport Equipment

Retail

Automotive

Software

Health & Social Work

Textiles

Electrical


Food

Top 10 target sectors in Baltic countries in 2014

Software is the largest sector generator of FDI projects and jobs


Baltics


3

3

4

4

5

5

5

6

14

16

Wood

Electrical

Chemicals

Food

Software

Other Transport Services

Business Services

Retail


Construction

Jobs creationNumber of FDI projects

June 2015

Target activities in Baltic countries (number of projects)

Manufacturing and business support services projects record thelargest growth

1

14

3

12

25

38

115

7

2021

46

HeadquartersEducation& Training


LogisticsBusinessSupportServices

-9

+4

+8

-4

+8

Sales &Marketing

Manufacturing

20142013


Baltics


June 2015

Contacts


Fabrice ReynaudExecutive DirectorE-mail : [email protected] : +33 6 72 84 30 24

www.ey.com/attractiveness

Arvydas ArnasiusExecutive DirectorE-mail: [email protected]: +370 5 274 2160Mobile: +370 620 16272

ey bilas ilas baltic fdi trends 2015

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