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Czech Republic Market Overview and Opportunities March 2013 1 general presentation update March 2013 Market Overview and Opportunities 2 Czech Republic in Europe 3 Map of Czech Republic 4 Czech Republic: basic facts Population 10.5 million Area 78,900 sq. km; 30,500 sq. miles Capital Prague, population 1.2 million Major Cities Brno, Ostrava, Plzeň, Olomouc GDP per head 20,400 USD UK Exports £ 1.8bn (2011) UK Imports £ 4.2bn (2011) (IMF) 5 Czech Republic: basic facts Member of: NATO, EU (since 2004), OECD, UN, IMF, WTO, Council of Europe Highly developed industrial base: Manufacturing and engineering, mining, automotive, electronics, construction, machinery, metallurgy, glass manufacture, production of beverages (beer) Intensive growth in the service sector Working population of 5.3m, well educated and skilled workforce 6 Czech Republic: basic facts British investment reached more than Eur2bn since early 90’ Major investors: Vodafone, Tesco, Logica, Rolls Royce CEE Headquarters: Mott MacDonald, BAE Systems, M&S, Rolls Royce, Allen & Overy Financial services: HSBC, RBS, Provident Financial Retail: M&S, Karen Millen, TM Lewin, Next, Mothercare, Top Shop, Body Shop, Tie Rack, Debenhams Luxury brands: Burberry, Jimmy Choo, Barker, Agent Provocateur Over 300 British companies present in the market 7 Czech Republic: more basic facts GDP Growth 2011 1.7% (EIA, CNB) GDP Growth forecast 2013 1.0% (EIA) Unemployment 6.8% (October 2012) Inflation 3.4% (October 2012) Gross wage average CZK 24,626 (October 2012) Exchange rate to £ CZK 31.406 FDI (2011) 3.8bn EUR FDI total until end Sep 2012 106bn EUR (Eurostat) (CNB 1st November 2012) (CNB) 8 Czech Republic Political situation 9 Czech Republic Czech Industry • Generates 30% of GDP and employment (1.3 million) • 50% of production depends on exports • Key branches – Production of automotive vehicles and related production (rubber and plastics) – Production and distribution of electricity, gas, heat and climatised air – Production of metal structures and metalworking including machinery and equipment – Production of other non-metal mineral products (linked to construction) – Production of food – Production of basic metals, metallurgy, casting – Production of ICT, electronics and optical devices 10 Czech Republic Opportunities PRIORITY SECTORS • Power • Science & Technology/Innovation (ICRC, CEITEC, ELI) • Food & Drink • Consumer Goods – luxury and high street brands 11 Czech Republic Opportunities Market Entry Sales • Direct • Distributor (Agent) Investment • Local manufacture • Branch/Subsidiary • Partnership/Joint venture 12 Czech Republic Business Culture • Liberal/sophisticated market • British products good reputation Welcome face to face • Confirm language of meeting/if in doubt, use an interpreter • Confirm objectives of meeting • Relaxed 13 Czech Republic UKTI Team Prague • Over 500 companies can’t be wrong! • Strong collaboration with other colleagues in Central Europe e.g. regional market reports, regional events, Regional Director • Good relationship with Czech Government and other partners • Work closely with the British Chamber of Commerce (www.britishchamber.cz) 14 Czech Republic Summary • Much closer than BRIC/ Excellent strategic location • Very strong history of innovation, entrepreneurs, productivity, engineering and industrial tradition • Access to EU structural funds • Natural crossroads between East & West • Anglophile; British products & investment well received • Well educated, skilled & still relatively low cost workforce • English widely spoken • EU member • Many business opportunities • It's close... 15