Why is the Moldovan ICT Sector Attractive for your investment?

CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission from State Chancellery of Moldova is strictly prohibited

Government of Moldova

February 2012

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Where is Moldova?

Moldova is a bridge between the EU markets and the growing CIS markets

Population 3.6 million

Time zone GMT+2

Average monthly wage EUR 215

Multilingual population 70%

An open economy with on-going negotiations for EU integration

Open economy

▪ Moldova is the only country with:– EU autonomous trade agreements – CIS countries free trade agreements

▪ International Centre for Settlement of Investment Disputes (ICSID) member

▪ World Trade Organisation (WTO) member since 2001

EU integration

▪ 52% of trade with the EU

▪ No visa requirements for EU nationals and other 70 countries

▪ Ongoing negotiations on EU-Moldova Association Agreement and Deep and Comprehensive Free Trade Agreement (DCFTA)

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Why is Moldova an attractive destination for Ubisoft?

1 There are currently 9 Free Economic Zones

Lowest wages in Europe for qualified, multilingual European workforce1▪ High education level (80% attain

secondary education, 38% pursue higher education), strong technical education

▪ 70% of population is multilingual (Romanian, Russian, English, French, Italian, German)

2Competitive Incentives Package

▪ Most attractive Fiscal Regime in Eastern Europe:

- 12% corporate income tax- Personal and Social fund incentives for IT specialists

▪ Extensive network of double taxation treaties

Excellent infrastructure and tech savvy population3▪ One of the highest internet

speeds in the world▪ Free Wi-fi in many public

spaces: parks, airport, univ▪ IT Park being developed▪ First Data Center under

construction

4Access to EU and CIS growth markets (500m + 275m = 775m potential customers)

▪ Moldova – trade agreements with the EU and CIS countries

▪ Cultural affinities with both Western Europe and CIS

▪ By plane: <3 hours to Paris; <1 hour to Bucharest and Kiev 2 hours to Moscow.

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We are here to assist you at the highest possible level of leadership

Foreign Direct Investment Attraction TeamSuccessful investors in Moldova willing to share their experience

Doina CebotariAdvisor to Prime-Minister, Team Leader doina.cebotari@gov.md+373.798.487.09

Full-time Foreign Direct Investment Attraction Team

Leadership team

Vladimir FilatPrime Minister of the Republic of Moldova

Valeriu Lazar Deputy Prime MinisterMinister of Economy of the Republic of Moldova

Industry

Financial Institutions

ICT

Ludmila HanganuConsultantludmila.hanganu@gov.md+373.604.881.77

Diana GudumacConsultantdiana.gudumac@gov.md+373.690.590.90

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ATIC

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AGENDA

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VISION

Information and Communication Technologies are the driver of economic growth, through productivity enhancement, improved government service and transparency.

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Our mission is to ensure sustainable growth for the information technologies and communications sector through policy development.

We create business opportunities and encourage investment by promoting free market and liberalization policies.

Transparency and efficiency are core values we believe are fundamental for an effective government, responsible businesses, and an active and involved civil society.

MISSION AND VALUES

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Targeted Growth for Targeted Growth for 20120144Targeted Growth for Targeted Growth for 20120144

Indicator Current Level Target 2014

Landline telephony penetration

33 35%

Mobile telephony penetration

93% 100%

Broadband Internet penetration

10% 23%

Total sales of ICT sector€ 400 million € 500 million

ICT products and services exports

€ 100 million € 180 million

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AGENDA

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EU average – 24%

Source: NRAECIT

Access to modern technology has approaching rapidly EU levels

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Mobile Telephony is driving the progress

but penetration still well below potential 70% fixed | 120% mobile]

Source: NRAECIT

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8855%% households – landline telephony services

8080%% families – families – at least one mobile phone

4242%% inhabitants – inhabitants – use PCs

27%27% households – households – connected to Internet

We are getting ready for…

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… the Internet of Things

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Opportunities are Emerging

Digital SwitchoverNext Generation Network

Logistics & Applications Seeding & Ventures

Cloud & Data Center

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The Economics of Off-shoring – 57 %– 57 %

* Offshore location with 50 developers** Duplication of project management staff (5 people) at onshore costs*** For project business requiring significant coordination

Source of the Evaluation Model: McKinsey

Total costs WesternEurope (~€3.5 million/ year)

Labor cost savings*

Additio-nal mgmt. resour-ces**

Facility costs

Telecom-muni-cation costs and

IT infra-structure

Travel costs***

Cost level after offshoring to Moldova

-57%

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ICT Strategy

2011-2014

Broadband Access Program

Digital TV Strategy

Postal Services Strategy

ICT Development Stimuli Defining the place of Moldova’s ICT within the global value chain

Defining the Country’s OFFER National ICT sector positioning and promotion

Infrastructure Development Development of electronic communications and increase of their availability to final users

Availability of terminal equipment for the access to electronic communications network

Development of electronic contents and applications

Education as the development factor In order to ensure that the ICT sector has adequate resources for development

To prepare the citizens for e-Government

Policy: Education; Market; Infrastructure; Investment

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AGENDA

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Ambitious e-Transformation Objectives

By 2020 all public services shall have their electronic counterparts.

o 10 new electronic services implemented and launched every year;

o 7 back office processes should be digitized every year.

Over 50% adoption of electronic public services.

Existing information system rationalized and integrated into governmental data interchange framework.

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From Government Centricity to Citizen Centricity

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e-Government Center – the enabler of government transformation

Access

Provision

Awareness

Organization

Outcomes

Trust

strengthen citizens engagement and trust in government

respond to external pressures from business

respond to external pressure from citizens and/or civil society

respond to pressures from governmental agencies/institutions