#1Σ INVEST MOLDOVA MOLDOVA your next destination for investments #GROWIN MOLDOVA#2WHY MOLDOVA ? M INVEST MOLDOVA # GrowlnMoldova#3FDI INVESTMENTS IN THE LAST 2 -3 YEARS AMRING™ PHARMACEUTICALS ① cegeka S European Bank for Reconstruction and Development MAIB Moldova Agroindbank BANCA TRANSILVANIA® BT DOVERIE UNITED HOLDING AD M Magnetec MOLDINDCONBANK S.A. TAURALP PHARM HOLDING AG Victoriabank® otpbank HPENOPLEX® effective heat insulation SCHNEIDERFertigung MAGNETEC, GERMANY PENOPLEX - GRUP, RUSSIAN FEDERATION INVEST FUND DOVERIE HOLDING, BULGARIA SCHNEIDER FERTIGUNG, GERMANY TAURALP PHARM HOLDING AG, SWITZERLAND VETROPACK GROUP, SWITZERLAD BANCA TRANSILVANIA, ROMANIA OTP BANK, HUNGARY EBRD CEGEKA, BELGIUM AMRING HOLDING S.A., vetropack & SWITZERLAND German industrial company opened a factory in FEZ Bǎțli Investment of ca. 40M USD. Manufacturing of construction of insulation materials. Investment located in FEZ Ungheni Acquired 63.89% of BC Moldincombank (MICB) SA, the second largest bank in Moldova. In August 2020, they opened a local company and identified brownfield locations that they had purchased. Acquired the major Pharma producer, FARMACO SA. Vetropack, a leading Swiss corporate group in the European glass packaging industry, took over over Moldovan glassworks in Chișinău (Glass Container Company and Glass Container Prim). The largest bank in Romania and in South-Eastern Europe. Acquired Victoriabank, the third largest bank in Moldova. Founded the BT Leasing Moldova - the leader of leasing companies in Moldova In 2019 Hungary's OTP Bank acquired a 96.69% stake in Moldova's Mobiasbanca - Groupe Societe Generale (MBSG). The EBRD and the private equity firms AB Invalda INVL and Horizon Capital acquired a 41.09 per cent stake in B.C. Moldova Agroindbank S.A. MAIB is the largest commercial bank in Moldova. The European IT solution provider Cegeka open a New office in Moldova in 2021. Acquired 90% of FARMAPRIM. * INVEST MOLDOVA#4A-STAY BESIX COURTYARDⓇ BY MARRIOTT Chisinau FDI INVESTMENTS IN THE LAST 2 LAST 2 -3 YEARS SUMMA GROUP, COURTYARD BY Turkish company Summa Group developed a new Hotel Courtyard by Marriott, and MARRIOTT, TURKIEY Business Center Plazza MallDova (ca. 17,000 sqm). Plan to develop 40,000 sqm in total of A-class office buildings. Privete hospital development 2023 GROUP GL INTERNATIONAL K Kaufland D BESIX GROUP. A-STAY, BELGIUM DRAXLMAIER Acquired an existing building in Chisinau downtown. Develop A - Stay smart hotel as part of the smart hotel chain. DRAEXLMAIER AUTOMOTIVE, GERMANY JYSK Expansion of Draexlmaier with 4th plant in south of Moldova, Cahul, with a manufacturing facility of ca. 20,000 sqm. Open a R&D engineering center in the Technical University campus for interiors (cockpit, door panel, console, etc.) LEAR CORPORATION, EXPANSION Expansion with ca. 6,500 sqm new facility in FEZ Ungheni. Increase the total premises to ca. 20,000 sqm. Total head count 2,100. KAUFLAND HYPERMARKET, GERMANY. SCHWARZ GRUP GROUP GL, BELGIUM 300M euro investment ongoing. Wholesale hypermarket opening the biggest chain of hypermarkets across the country. Development of 20 state of the art hypermarkets. Recent opened shops in addition to Chisinau: Balti, Ungheni and Comrat. Investment in manufacturing and office premises. New office iTower in Chisinau. L PREMIER ENERGY SUMMA LEARⓇ CORPORATION trox COVER TECHNOLOGY JYSK EXPANSION, DANEMARK PREMIER ENERGY, CZECH REPUBLIC TROX, SWEDEN. Danish retail chain expansion in Moldova, south of the country. Premier Energy Distribution entered Moldova in 2019 and is the biggest distributor of electrical energy in Moldova. Car covers manufacturing. Took over an existing Slovakian company APM Automotive. * INVEST MOLDOVA#5KEY FACTS EU Since July 2022, EU candidate member Global Innovation Index 2022 GDP 2022 M INVEST MOLDOVA 56 of 132 $ 14.810 bln Capital: Chişinău ca. 814,000 Population: 3.55 million (January 1st, 2019) GDP per capita 2022 $ 5,528.59 Index of economic Freedom 2023 Score 58.5 Area: 33,847 km² Language: Romanian (Official) Other spoken languages: C✶ Direct flights: to 21 countries/ 42 cities (5 charter flights) World rank 96 Employment rate for (20-64 age) 51,1% # GrowlnMoldova#6EASE OF TRAVEL Direct flights 350 Flights per week Direct flights from Chisinau Airport Austria Vienna (VIE) Belarus Minsk (MSQ) Belgium Brussels (CRL) 175 Flights per week to and from Vienna, Frankfurt am Main, Rome, Milano, Paris, London, Moscow, Dubai, Bucharest, Kiev, Warsaw, Brussel, Geneva, Verona, Venice, Istanbul, etc. London 3h 2h Vienna/Frankfurt Bucharest * Status before COVID 19 pandemics 1h 3 TUI Chişinău 1h 1 2h/3h Istanbul/Kiev Moscow Cyprus Larnaca (LCA) Denmark Copenhagen (CPH) Italy Bologna (BLQ) Milan (BGY, MXP) Parma (PMF) Rome (CIA, FCO) Turin (TRN) Venice (TSF, VCE) Verona (VRN) Poland Warsaw (WAW) Portugal Lisbon (LIS) Egypt Sharm-El-Sheikh (SSH)* CHISINAU AIRPORT Romania France Nice (NCE) Paris (BVA,CDG) Germany Berlin (SXF) Dortmund (DTM) Friedrichshafen (FDH) Memmingen (FMM) Frankfurt am Main (FRA) Great Britain London (LGW, LTN, SEN, STN) Greece Athens (ATH) Heraklion (HER)* Thessaloniki (SKG) Ireland Dublin (DUB) Israel Tel Aviv (TLV) Chisinau KIV Bucharest (OTP) Russia Moscow (DME, SVO, VKO) Sankt Petersburg (LED) Krasnodar (KRR) Spain Barcelona (BCN) Madrid (MAD) Switzerland Geneva (GVA) Turkey Antalya (AYT)" Istanbul (IST) Izmir (ADB)" Dalaman (DLM)" Bodrum (BJV)* Ukraine Kyiv (KBP) * charter flights#7THE REPUBLIC OF MOLDOVA- YOUR BRIDGE TO WEST AND EAST FREE TRADE AGREEMENTS WITH: - European Union - Moldova Association Agreement (DCFTA) - 2014 Community of Independent States (CIS) - 2012 — GUAM countries - 2002 - CEFTA countries - 2007 - Turkey - 2017 - UK-Moldova Strategic Partnership, Trade and Cooperation Agreement - 2020 ● Agreements on mutual promotion and protection of investments (34 countries) Consultations with EFTA member states & Egypt PORTUGAL IRELAND SPAIN UNITED KINGDOM FINLAND RUSSIA NORWAY ESTONIA SWEDEN LATVIA LITHUANIA POLAND GERMANY LGIUM CZECH REPUBLIC SLOVAKIA FRANCE BELARUS AUSTRIA HUNGARY ROMANIA SWITZERLAND SLOVENIA CROATIA ITALY OCENIA AND SERBIA HERCEGOVINA ALBANIA GREECE BULGARIA UKRAINE HOLDOWA BLACK SEA TURKEY INVEST MOLDOVA#8EASE OF DOING BUSINESS Starting a business 13 Dealing with construction permits 156 Getting electricity 84 Registering property 22 Getting credit 48 Protecting minority investors 45 Paying taxes 33 Trading across borders 38 Enforcing contracts 62 Resolving insolvency 67 The Republic of Moldova is ranked 48 out of 190 1 day and 3 procedures only to register a business in Moldova exceeding: Hungary, Romania, Italy, Greece * INVEST MOLDOVA#9DIGITALIZATION Online one-stop-shop for permits Online one-stop-shop for state reporting (tax, social, and medical insurance, statistics) Unilateral recognition of the EU advanced qualified electronic signatures Possibility to obtain the advanced qualified electronic signature in the consulates of the Republic of Moldova abroad Introduction of the electronic power of attorney in relations with public authorities 63rd NAL Pay NAL Notify SERVICIUL GUVERNAMENTAL DE NOTIFICARE NA Sign VISA from 190 counties globally in the ITU Global Cybersecurity Index 2020 MOLDOVA INVEST MOLDOVA#10MOLDOVAN TRADE STRUCTURE EXPORTS 2022 Total volume of Moldovan Exports 4,335 mln. USD +37,88% European Union 2540,4 mln. USD (58.6%) + 32,3% Commonwealth of Independent States 1043,1 mln. USD (24.1 %) + 123,8% Other countries 749,95 mln. USD (17.3 %) - 0,13% Source: National Bureau of Statistics AY INVEST MOLDOVA#11MOLDOVAN TRADE STRUCTURE EXPORTS 2022 Romania 28.6% Russia 4,4% Ukraine 16,6% Bulgaria 3,3% Italy 7,6% Poland 2,8% Czech Republic 2,4% C⭑ Turkey 7,0% Germany 5,3% Belarus 1,9% td INVEST MOLDOVA#12MOLDOVAN TRADE STRUCTURE IMPORTS 2022 Total volume of Moldovan Imports 9219,1 mln. USD +28.6% European Union 4364,8 mln. USD (47,3%) + 38.6% Commonwealth of Independent States 2185,6 mln. USD (23.7%) +14.5% Other countries 2,668 mln. USD (29%) +25.5% Source: National Bureau of Statistics AY INVEST MOLDOVA#13D MOLDOVAN TRADE STRUCTURE IMPORTS 2022 Romania 17,9% Germany 6,3% Russia 12,4% Italy 4,8% China 10,3% Poland 3.3% Ukraine 9,3% India 2.7% C⭑ Turkey 7.2% France 1.9% FF t )) 糖 INVEST MOLDOVA#14FOREIGN DIRECT INVESTMENTS for the last 3 years Direct investments in the form of shares and acumulated shares O European Union countries CIS 83,4% countries ■ 3,65% Other countries ■ 12,86% LYNY FDI net inflows $ 905.23 million New investments in Moldovan enterprises $ 831.89 million Reinvestment of profits by foreign investors in Moldovan subsidiary companies $ 281.68 million Net foreign capital inflows in the form of FDI in the Republic of Moldova 1.3% in relation to GDP 当糖 INVEST MOLDOVA#15INVEST M MOLDOVA OPERATING COSTS & TAXES, COST OF LIVING AND BUSINESS #GrowInMoldova#16INVESTMENT FRIENDLY FISCAL SYSTEM Corporate Income Tax Social Insurance Contributions Value Added Tax 土 ·00 Moldova 12% Ukraine 22% Slovakia 25.2% (in 2020) Ukraine 18% Russia 20% Romania 16% Italy 24% ● 土 Moldova 24% Romania 25% Italy 30% Russia 30% Slovakia 35.2% Romania 19% Moldova 10% HoReCa/ 20% 8% pharmaceuticals and agrifood/ 6% natural gases/ 0% international transportation Russia 20% Ukraine 20% Slovakia + 20% Italy 22% INVEST MOLDOVA#17AVERAGE LABOR WAGES, 2021 AVERAGE WAGE, EUR* Hourly rate (fully loaded) Net salary Gross salary Total company cost Plant manager Functional Managers 17.57 - 36,90 12.23-17.61 1900 - 4000 2380 - 5000 2950 - 6200 1293-1934 1660 - 2400 2067 - 2976 Engineer (white collar) 4.20 -5.24 470-584 571-715 709-886 Shift leader 3.32 - 4.43 360 - 480 450-600 558-744 Qualified operator (blue collar) 2.40 - 2.73 260-297 325-370 403 - 459 * Some companies pay below or above the salaries mentioned in the table in the automotive companies ** Finance, Operations/ Production managers are on the upper part of the salary band Source: Invest Moldova survey ** www.salarii.md - calculator for salary related contributions 猴 INVEST MOLDOVA#18RENTAL PRICE AND REAL ESTATE COSTS 0.5-7.0EUR/m² 3.5-4.5 EUR/m² in FEZs Moldova Romania + 4-5 EUR/m² Serbia Consumer Prices (incl. rent) in Chişinău are: 21%-lower than in Budapest 17%-lower than in Bucharest Real Estate costs 2022 Office spaces 10-20 Euro per m2 Industrial - 4-7 Euro per m2 Logistics -3-8 Euro per m2 Taxes -0.05 to 0.4% 17%-lower than in Krakow U COURTYARD COURTYARD BY MARRIOTT Source: www.numbeo.com INVEST MOLDOVA#19COST OF LIVING & QUALITY OF LIFE Apartment rent (1 studio) in city center: 250-300 EUR Movie, theatre, opera ticket 1 person: 5 EUR --------- D One-way ticket for public transport: 0.30 EUR Taxi ride: ca. 3-4 EUR/trip within city Mid-range restaurant, three-course meal for 2 persons: 20 EUR International hotel chains Radisson, Marriott, Best Western: rates from 70 EUR/night I Source: www.investmoldova.gov.md. INVEST MOLDOVA#20ECONOMIC SECTORS OF THE REPUBLIC OF MOLDOVA SERVICE PROVIDING SECTOR (ICT, BPO, SSC, R&D, Creative) PRODUCTION AND INDUSTRIAL (Automotive, Electronics, TAFL, Food Processing, Furniture, Machine Building) EMERGING SECTORS (Renewable energy, Life science, Hospitality and tourism, waste management) INFRASTRUCTURE AND REAL ESTATE INVEST MOLDOVA#21AGRICULTURE AND FOOD PROCESSING SECTOR 12% 10% 45% Share of agricultural production in GDP Growth of total exports from 2016 to 2020 exports in 70+ countries (82% trade - EU & CIS) 8% VAT (standard VAT rate -20%) Viticulture and Wine Fruits and Vegetables more than 40% of exports POTENTIAL IN ORGANIC FARMING NUTS TO TO EU OF UPPLIERS OF ONE C THE INVEST MOLDOVA#22WINE INDUSTRY 2022 Value min.s 2022: EXW-bottled Romania Poland Cehia Russia China 1 24,9 mln.$ +7% 8,7 mln.$ -12.3% 7,6 mln.$ -16% 7,3 mln.$ -49% 5,7 mln.$ -24% 3,2 mln.$ -14% 1st position in agri-food export (15%) 20th wine producer in the world (2022) #1 7% Moldova's total export 3% of the territory of the country #6 USA in the world in Europe wineries 2.8 mln.$ -4.5% with the highest density by vines surface Ucraina of vineyards 2,8 mln.$ -0.2% 2% of the GDP 7% agricultural surfaces Turcia Canada The Netherlands 2,6 mln.$ +15,9% 2,5 mln.$ +32% 220 980 980 GUINNESS BOOK - Milestii Mici largest winecellar by number of bottles (over 1.5 million bottles) enterprises & 6 institutions every every 4th of Education working for Wine and Oenotourism, Research and Technology Cricova - underground wine city, over 70 km galleries active Moldovan involved in the wine sector (52 000 viticulturists) National Wine Day (20 editions) WINE OF MOLDOVA A LEGEND ALIVE 发送 INVEST MOLDOVA#23AUTOMOTIVE AND MACHINE BUILDING SECTOR 14% of GDP (2020) 26% of total country exports 20500 is people employed |0l|! Success Stories Draexlmaier Automotive (wiring harnesses) 4th plant in 2018, having R&D Center in Chişinău Gebauer & Griller (cables) 2nd plant in 2017 Fujikura Automotive (wiring harnesses) 2nd plant in 2018 Cable asseblies and wiring harnesses Carpets & rugs Electronics components and systems Foams & felts Rubber Components ☐ Injections & molded parts Fastening systems (seatbelts) Car seat covers, trim G INVEST MOLDOVA#24trox COVER TECHNOLOGY AUTOMOTIVE COMPANIES ON THE MAP FO ~ CONFEZIONI ANDREN Electromanufacturing Kab-lem GROUP QUALITY HUB quality in everything we do Sammy CABLAGGI D Sumida DRAXLMAIER RR RIR FO P GG M Magnetec Gebauer & Griller LEAR SUMITOMO ELECTRIC BORDNETZE GmbH CORPORATION BLACKSEA-EMS WHETED D DRAXLMAIER FO international FO AROBS Software 田 Fujikura Automotive Group πTO FO Oth SUMITOMO ELECTRIC BORDNETZE GmbH D DRAXLMAIER 'Fujikura Automotive Group EQUIPTEST TEST SUPPORT INNOVATE SCHNEIDERFertigung Coroplast wir гогоо M Magnetec BLACKSEA-EMS EQUIPTEST TEST SUPPORT INNOVATE (Toroidal coils for power electronics) (EV charging module) (Test Probes and Test Fixtures) INVEST M MOLDOVA Electromanufacturing GG Sammy sumida Gebauer & Griller CABLAGGI (electronic transformers) (Wires & cables) (wire harnesses) Kab-lem GROUP (wire harnesses) F RRR R 區 R R R F R 區 RRRR AROBS Software D DRÄXLMAIER (Software, EV & Hybrid R&D) (interiors engineering center) SUMITOMO ELECTRIC BORDNETZE GmbH D DRAXLMAIER U INTROSCOP Automation Fujikura Automotive Group D (wire harnesses, KSK) (wire harnesses, KSK) DRAXLMAIER (wire harnesses) Coroplast WHETEC international SCHNEIDERFertigung (wire harnesses, KSK) (cable assemblies & terminals) (wire harnesses) LEAR CORPORATION ~ CONFEZIONI ANDREN trox COVER TECHNOLOGY (wire harnesses) (seat trim covers) (car covers) (car covers) QUALITY HUB quality in everything we do (car steering wheels) # GrowlnMoldova#25INFORMATION AND COMMUNICATIONS TECHNOLOGY SECTOR Third sector of the national economy with a fastest growth rate: +190% last year, -7,4% of GDP (incl. 4,2% for IT) Moldova ranks 8th in the world and first in Eastern Europe in the ranking of countries with the cheapest mobile internet Dedicated policies applied (Strategic framework, Law on IT Parks and on IT Visa) Highly qualified & multilingual human resource (over 30k employed ICT professionals) Global top 5 by the accessibility of Gigabit Internet (after Singapore, South Korea, Malta and Monaco) IT Services and products - one of the main chapters of exports (surpassed vine exports second year in a row) The average price paid for 1Gb of internet is $0.26, according to cable.co.uk. This price is 50-60% lower than the prices. in Romania, Ukraine or Russia and 3 times lower than in Serbia and Belarus. 98% - points of presence of fibber optic backbone network (POP) - coverage of mobile communications networks (4G) Source: National Bureau of Statistics/Gigabitmonitor.com/Worldwide broadband price comparison INVEST MOLDOVA All#26MOLDOVA IT PARK Flat tax system for the residents of the Moldova IT Park at 7% of the sales income, incorporating: Social security budget Social security (employee & employer) 54,7% Medical insurance 15.4% MOLDOVA Innovation Technology PARK Medical insurance (employee & employer) PIT Personal Income Tax CIT Corporate Income Tax Road Tax State budget CIT 10% PIT 19.4% Road Tax 0.1% 7% UNIQUE TAX Local budget Local tax 0.3% Real estate tax 0.1% Local Tax Real Estate Tax AV INVEST MOLDOVA#27MOLDOVA IT PARK www.moldovaitpark.md 1345 residents in first 2,5 years of activity 920 of them - new created companies MOLDOVA Innovation Technology PARK 211 of them - foreign companies, originating from 35 countries Over 18 500+ employed IT professionals BEST ECOSYSTEM PRACTICE BY INTERNATIONAL TECHNOLOGY UNION (2019) ✡ D+ + AY INVEST MOLDOVA#28EF English Proficiency Index (EX EPI) 2021 Pupils studying foreign languages in primary and general secondary institutions, 2020-2021 Total 301,840 % English 242,594 72.6 French 105,238 31.5 Russian 99,099 29.6 Germany 11,350 3.4 Spanish 1,631 0.5 Others 3,519 1.1 According to the EF English Proficiency Index (EX EPI) 2021, Moldova has the 27th position in Europe and ranks 36th worldwide at the level of English proficiency for the adult population. AVA INVEST MOLDOVA#29WHY MOLDOVA? Strategic geographical location Multilingual population and affordable labour force Competitive operational costs Advanced IT infrastructure at competitive costs Digital in Public services (E-Government and E-Raporting, E-Documents, One-stop-shop Special Government Incentives - Law on IT Parks, FEZ and Industrial parks Attractive fiscal system INVEST MOLDOVA#30GROW IN MOLDOVA a promise & an invitation INVEST MOLDOVA www.invest.gov.md