ey bilas ilas baltic fdi trends 2015
TRANSCRIPT
FDI trends in the Baltics
June 2015
Page 2June 2015
► FDI trends in Europe 2015
► FDI trends in CEE
► FDI trends in Baltics
Agenda
European Attractiveness Survey 2015Baltics trends
Page 3June 2015
► FDI trends in Europe 2015
► FDI trends in CEE
► FDI trends in Baltics
Agenda
European Attractiveness Survey 2015Baltics trends
Page 4June 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
European Attractiveness Survey 2015Baltics trends
Page 5June 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
Source: EY’s Global Invesment Monitor 2015
European Attractiveness Survey 2015Baltics trends
Page 6June 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
Source: EY’s Global Invesment Monitor 2015
European Attractiveness Survey 2015Baltics trends
Page 7June 2015
Software and business services capture the most FDI projects
Top 10 sectors (FDI projects, 2014)
Europe
Source: EY’s Global Invesment Monitor 2015
146
163
165
188
214
226
287
300
365
646
Chemicals
Pharmaceuticals
Electrical
Plastic & Rubber
Software
Automotive
Food
Financial Intermediation
Business Services
Machinery & Equipment
European Attractiveness Survey 2015Baltics trends
Page 8June 2015
Manufacturing and logistics record the largest growth
FDI projects by activity in Europe
Europe
Source: EY’s Global Invesment Monitor 2015
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
European Attractiveness Survey 2015Baltics trends
Page 9June 2015
► FDI trends in Europe 2015
► FDI trends in CEE
► FDI trends in Baltics
Agenda
European Attractiveness Survey 2015Baltics trends
Page 10June 2015
The Baltic growth (+9%) in line with the European growth (10%)
European Attractiveness Survey 2015Baltics trends
FDI trends in CEE countries in 2014 (number of projects)
Source: EY’s Global Invesment Monitor 2015
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
Page 11June 2015
Poland is a major competitor for Baltic countries
European Attractiveness Survey 2015Baltics trends
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
Source: EY’s Global Invesment Monitor 2015
Page 12June 2015
Baltics lead the way with Poland
European Attractiveness Survey 2015Baltics trends
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
Source: EY’s Global Invesment Monitor 2015
Page 13June 2015
► FDI trends in Europe 2015
► FDI trends in CEE
► FDI trends in Baltics
Agenda
European Attractiveness Survey 2015Baltics trends
Page 14June 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
European Attractiveness Survey 2015Baltics trends
Latvia
Lithuania
2013
4 418
24%
35%
42%3 379
15%
48%
37%
2014
+31%
Estonia
Jobs creationNumber of FDI projects
Page 15June 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
Source: EY’s Global Invesment Monitor 2015
Baltics
European Attractiveness Survey 2015Baltics trends
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
Page 16June 2015
USA Vilnius (LT) New center for stock exchangefirm nc
USA Vilnius (LT) New service centre 400
Examples of significant projects in 2014
European Attractiveness Survey 2015Baltics trends
Source: EY’s Global Invesment Monitor 2015
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
Page 17June 2015
Appendices
European Attractiveness Survey 2015Baltics trends
Page 18June 2015
Manufacturing and logistics record the largest growth
FDI projects by activity in Europe
Europe
Source: EY’s Global Invesment Monitor 2015
31154
278292284
1 018
1 900
29159
286290361
1 226
1 990
+3%+27%
+3%-1%
+20%
+5%
Education& Training
HeadquartersBusinessSupportServices
-6%
LogisticsManufacturingSales &Marketing
Research &Development
20142013
European Attractiveness Survey 2015Baltics trends
Page 19June 2015
Automotive sector leads the way
European Attractiveness Survey 2015Baltics trends
Target sectors in CEE in 2014 (number of projects)
Source: EY’s Global Invesment Monitor 2015
CEE
308
30
34
37
39
50
51
63
69
71
112
Electrical
Chemicals
Automotive
Food
Plastic & Rubber
Software
Machinery & Equipment
Financial Intermediation
Non-metallic mineral products
Business Services
Others
Page 20June 2015
Target activities in CEE in 2014 (number of projects)
Manufacturing activities outdistance other activities
European Attractiveness Survey 2015Baltics trends
Source: EY’s Global Invesment Monitor 2015
CEE
6
9
54
66
74
190
465
Education & Training
Reserach & Development
Headquarters
Business Services
Sales & Marketing
Logistics
Manufacturing
Page 21June 2015
175
200
205
240
275
300
345
380
420
783
Chemicals
Other Transport Equipment
Retail
Automotive
Software
Health & Social Work
Textiles
Electrical
Financial Intermediation
Food
Top 10 target sectors in Baltic countries in 2014
Software is the largest sector generator of FDI projects and jobs
Source: EY’s Global Invesment Monitor 2015
Baltics
European Attractiveness Survey 2015Baltics trends
3
3
4
4
5
5
5
6
14
16
Wood
Electrical
Chemicals
Food
Software
Other Transport Services
Business Services
Retail
Machinery & Equipment
Construction
Jobs creationNumber of FDI projects
Page 22June 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
Research &Development
LogisticsBusinessSupportServices
-9
+4
+8
-4
+8
Sales &Marketing
Manufacturing
20142013
Source: EY’s Global Invesment Monitor 2015
Baltics
European Attractiveness Survey 2015Baltics trends
Page 23June 2015
Contacts
European Attractiveness Survey 2015Baltics trends
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