Excellence in Innovation and R & DReasons to Invest in Austria

You Know Austria Like This…

… or Like That…

… or Like That…

… but Best Like That

Strong Economy in the Heart of Europe

Area: 83,872 km² People: 8.6 m. GDP growth: 0.8% (forecast 2015)

GDP / capita: € 36,980 R&D quota: 3.01% (forecast 2015)

GDP Industry: 28.4 %GDP Services: 70.3 %GDP Agriculture: 1.3 %

Invest in an Industrial CountryProduction sector as percentage of GDP, 2014

30.7

28.4

25.7

25.6

24.4

21.4

20.3

19.9

19.5

Germany

Austria

Switzerland

Japan

EU-28

Netherlands

USA

UK

France

Source: OECD, Eurostat 2015

You Are investing in an Industrial CountryProduction sector as percentage of GDP

Production 29%

Services 55%

Tourism & Leisure Ind. 15%

Agriculture 1%

Source: Statistik Austria 2015

Top Industries in Austria

Source: Austrian Economic Chamber

Production sold in 2014, in billion €

10,12

10,62

13,36

13,59

15,01

33,40Machinery /Metal goods

Chemicals

Vehicles

Electrical /Electronics

Gas / Heatsupply

Mineral oil

Profit from Highly Productive Employees

263

132

130

128

124

124

108

107

107

100

Luxembourg

Ireland

Netherlands

Austria

Sweden

Germany

Great Britain

Euro area

France

EU-28

Source: European Commission, Eurostat (06/2015)

Labor productivityGDP per person employed in PPS, EU-28 = 100

Expert Staff forSustainable Corporate Sucess in R&D

Dual educational system Vocational schools (HAK, HTL

unique to Austria)

21 Academies of applied sciences offering approx. 400 courses

22 public universities12 private universities Foreign language competencies More than 1,000 extra-university

research institutions

„New“ Austrians

Source: Statistik Austria 2016

Largest foreign population groups

176,517

116,739

116,053

93,966

82,971

70,255

63,608

57,604

35,355

31,151

25,324

Germany

Serbia

Turkey

Bosnia Herz.

Romania

Croatia

Hungary

Poland

Slovakia

Russia

Italy

Research andDevelopment in Austria

More than EUR 10 billion were invested in R&D in Austria in 2015

With 3.01 % of GDP Austria is above the EU average of 2.03 percent

Research premium: 12%

Austria‘s R&D Expenditures GrowAbove AverageAs percentage of GDP

Source: Eurostat

1,5

1,7

1,9

2,1

2,3

2,5

2,7

2,9

1998 2000 2003 2004 2005 2006 2007 2008 2010 2012 2014

Austria

Germany

EU-27/28

* Forecast 2015

3.01 *

Austrian Expenditures in R&DTotal 2015: 10,104.44 m. €

Federal 3114

Regions 443.2

Companies 4764.9

Foreign 1529.3

Others 153

Source: Statistik Austria 2015

Comprehensive Funding System

Austrian Research Promotion Agency (FFG): promotes R&D by companies along the entire innovation chain

Austrian Science Fund (FWF): promotion of basicresearch

Austria Wirtschaftsservice GmbH (AWS): funding bank for corporate business development

Innovation Hub Austria

OPEN INNOVATION

Excellencein professional Research and Development

StartUp Hub & Industrial Clusters

Uniqueeducational system

and access to Universities

Austrian Cluster Landscape

Economic and technologicalcooperation

More than 50 clustersApprox. 3,500 companiesApprox. 420,000 staff

COMET – All Centers in Austria

Factors for the Startup Hotspot Austria

High educational level for technical jobs Differentiated funding system Investment-friendly tax system

– 12% tax credit for R&D expenditures

Dynamic Growth of Startups

Newly established companies in Austria1993: 14,6312013: 36,9462014: 39,738

Newly established companies in Vienna2013: 8,403Thereof startups: 638Share of startups: 7.6%

More Factors for the Startup Hotspot Austria

Self-organization in startup clusters and coworking spaces Supporting network (early-stage

investors, business angles, incubators) “Limited company” with 5,000 €

as minimum cash contribution

Startup EcosystemIncubators / Accelerators

• Pioneers Festival• A1 Start Up Campus• Frequentis Startup Centre• Cisco “Entrepreneurs in Residence” (EIR)• Erste Bank Go! GründerCenter• I5invest• Impact Hub• AustrianStartups• Founder centers at universities (Vienna University of Economics and Business,

Vienna University of technology, University of• Natural Resources and Life Sciences, Vienna, Entrepreneurship Center

Network, etc.)• Numerous others such as Slax (LeitnerLeitner), Blue Minds Company, ORF-

Accelerator, etc.

From Startup to Global Player

Bwin: founded in 1997, now3,100 staff, biggest online gaming provider

Jajah: supplier of web-basedtelephony, 2009 acquired byTelefonica for 145 m. €

Runtastic: launched by 4 students in 2009, world leaderin fitness tracking, bought byAdidas for 220 m. (2015)

From Startup to Global Player

Paysafecard: European marketleader, first online means ofpayment approved by bankinglaw

UBIMET: fastest growingprivate European supplier ofmeteorological services, stakeholder Red Bull (2012)

AFFiRiS: launching the firstclinical tests for Parkinson vaccine in 2012

Success Stories

ITAInfotope Information and Communications Technologies focuses on safeguarding networks and users from cyber threats.

LOCK 8Smart phones serve as electronic keys for intelligent bicycle locks. A special app locates bikes by GPS.

Next SocietyThe startup based in Vienna and NYC develops the most intelligent networking assistant for professionals.

East-West Business Interface in the Heart of Europe

Ideal access to EU markets – bestconnections to West / East Europe

Excellent traffic connections

Over 300 CEE headquarters

Know-how of Austrian service providers

20 % of Austrians have migration background

Vienna International Airport –The Leading Hub to CEE and SEE

Austrian Airlines:

23 countries

41 destinations

559 flights per week

Source: Vienna Airport

Attractive for More than300 Regional Headquarters

Vienna: HQ-Location for International Organizations and Top Conference City

Only UN headquarters in the EU 30 HQs of international

organizations in Vienna

More than 14,000 international staff and diplomats (UN) are living in Vienna

Leading conference city (according to ICCA study)

Skilled HQ staff available

Top Investor: Austrian FDI in CEEPercentage of total investment in respective country and Austria‘s rank as investor, 2013

27.3

21.6

17.9

16.2

13.9

13.2

11.8

11.4

10.5

8.1

7.8

3.2

Croatia 1

Slovenia 1

Bosnia-Herz. 1

Romania 2

Serbia 1

Slovakia 2

Bulgaria 2

Czech Rep. 3

Macedonia 2

Albania 3

Hungary 4

Ukraine 5

Source: WIIW (Vienna Institute for International Economic Studies)

Economic and Social Stability

Reliable legal system Efficient public

administration High personal security Very low strike rate

No StrikesWorking days lost to strikes per 1,000 employees –annual average 2005-2013

12

55

89

1623

5366

7677

102135

139

SwitzerlandAustriaPoland

SwedenNetherlands

USAGermany

United KingdomNorway

SpainFinland

BelgiumCanada

DenmarkFrance

Source: WSI - Hans Böckler Foundation 2015

Investor-friendly Tax System

Corporate tax rate: 25%Modern group taxation

Tax premium for R&D: 12%

No trade tax

No net worth tax

Double taxation treaties

5 Reasons for Korean Companies to Invest in Austria

Competitive technologies & innovative business environment

Qualified & flexible employees

High stability & security

Central European location

Huge market potential

Attractive for Korean Companies

Unmatched Quality of LIfeMaximum = 10

9,73

9,57

9,51

9,31

9,22

8,68

8,22

8,16

7,95

7,80

7,73

6,99

4,68

3,94

Switzerland 1

Norway 2

Austria 3

Germany 6

Netherlands 7

Belgium 15

USA 18

Japan 19

France 20

Czech Republic 22

United Kingdom 23

Italy 29

Poland 49

Hungary 56

Source: World Competitiveness Yearbook 2015

Who We Are

Consulting company for international investors

Owned by the Ministry of Economic Affairs

25 experienced employees

International network with offices in Shanghai and Tokyo

National network

Vigorous Support forInternational Investors

Cost free consulting services :

Company foundation

Legal and tax aspects

Location search

Incentives

Regulations

Business contacts

… making your entry in Austria easy

ABA – Invest in AustriaWe are looking forward to supporting you.

www.investinaustria.at