Transcript Inward investment

POLAND UK
The Market. The People. The Opportunity
Poznan , November 2012
Martin Oxley
For more information on how we can help, contact the UKTI Poland team or find us on Twitter.
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Emerging Europe – the potential
• Emerging market opportunity on the UK’s
doorstep – high potential, low risk
• A region of 100m consumers – long term
strategic growth potential
• Trade, investment and supply chain – now is
the right time to engage
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Emerging Europe – where we are today
• Bilateral trade – £20 billion – 4% of the region’s
imports
• 1% UK Mid Size & SMEs engaging with the
market; under-optimised supply chain
opportunities
• Limited engagement EU funded programmes
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Poland – a quick introduction
• Political and economically stable with strong
GDP growth performance for the past 20 years.
• EU regulated market just two hours by plane
from the UK.
• 38 million consumers and a growing middle
class
• Excellent springboard market for expansion into
the Emerging Europe Region
• Largest recipient of EU funding – €67bn
between 2007 and 2013
• Western business culture with highly educated
workforce (71% with A level equivalent in
English)
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Poland – showcasing success
• Rolls Royce – power
• GSK – life sciences
• Tesco – retail
• Provident – financial services
•
RSA – insurance
• Diageo – drinks
• AB foods - food
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Trade snapshot: ‘we’re doing ok but could be doing better’
Polish export markets
2011
1
Germany
2
UK
Polish import markets
2006
2011
2006
GBP bn
%
share
28,8
26,1%
1
Germany
17,4
27,2%
1
Germany
36,9
22,3%
1
Germany
23,8
24,0%
7,1 6,4%
2
Italy
4,2
6,5%
2
Russia
20,2
12,2%
2
Russia
9,6
9,7%
GBP bn % share
Country
GBP bn % share
GBP bn % share
3 Czech Rep.
6,8
6,2%
3
France
4,0
6,2%
3
China
14,5
8,8%
3
Italy
6,7
6,8%
4
France
6,8
6,1%
4
UK
3,7
5,7%
4
Italy
8,7
5,3%
4
China
6,1
6,1%
5
Italy
5,9
5,3%
5
Czech Rep.
3,5
5,5%
5
France
6,9
4,2%
5
France
5,4
5,5%
6
Russia
5,0
4,5%
6
Russia
2,8
4,3%
6 Netherlands
6,2
3,7%
6 Czech Rep.
3,5
3,5%
7 Netherland
4,8
4,4%
7
Netherland
2,5
3,8%
7 Czech Rep.
6,2
3,7%
7 Netherlands
3,1
3,1%
8
Sweden
3,1
2,8%
8
Ukraine
2,3
3,6%
8
UK
4,3
2,6%
8
UK
2,8
2,9%
9
Hungary
2,8
2,6%
9
Sweden
2,1
3,2%
9
USA
3,8
2,3%
9
Belgium
2,5
2,5%
10
Ukraine
2,7
2,5%
10
Hungary
1,9
3,0%
3,7
2,2%
2,3
2,3%
10 South Korea
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10 South Korea
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Trade snapshot
2010/2011
•
From 2010 to 2011 goods exports from UK to Poland grew by 14% (£534 million) from
£3.8 billion to £4.3 billion.
•
From 2010 to 2011 services exports from UK to Poland grew by 25.2% (£285 million)
from £1.1 billion to £1.4 billion.
•
Total exports increased by 16.6% (£819 million) from £4.9 billion to £5.8 billion between
2010 and 2011.
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Snapshot of the UK economy
• UK is the third largest economy in
Europe after Germany and France. With
a GDP of GBP 1.55 trillion
• In 2009 the UK manufacturing sector
generated approximately £140 billion in
gross value added
• The UK economy started to grow again
in Q3 2012, growing by 1.0% - the
fastest rate of GDP growth since Q3
2007
• BAE Systems is the world's secondlargest defence contractor and RollsRoyce the world's second-largest aircraft
engine maker
• The UK is the tenth largest exporter in
the world, exporting GBP 314 billion.
The Chancellor has stated his aim for
exports to reach GBP 1 trillion by 2020
• The pharmaceutical industry plays an
important role in the UK economy and
the country has the third-highest share
of global pharmaceutical R&D
expenditures
• 21.5% of wealth is created in the
services industry and 77.8% by
industrial sector
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8
The six key sectors and examples of growth potential for UK expertise
in Poland
Infrastructure
At least £6bn in funds for
railway development alone
between 2014 and 2020.
Healthcare and Life Sciences
Poland is the 2nd largest volume
per capita healthcare market in
Europe and the 6th largest retail
market estimated at €30 billion.
Financial Services
A sector in its infancy which has
strong potential to grow in line
with market development
Defence and Security
Public security high on the Polish government
agenda, worth £2.5bn annually by 2015.
Defence improvements from 09-2019 worth at
least £6bn.
Energy
Nuclear programme worth £11bn
over the next 20 years). . Also
Shale (Up to £4bn) and renewable
(£3bn).
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Retail
20th most attractive market globally
(CBRE) and 7th largest retail market
in Europe.
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How to do business - what are we like?
• A European culture
• A trading nation – buy, sell & barter
• Trust – personal relationships important
• Currency – the zloty
• We like the UK
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How to do business / Some of the challenges
•Bureaucracy still there, but getting reduced
•Public Procurement Law – importance of a local partner
•Form filling, emphasis on contract culture
•Keep in touch & support
•Some sectors dominated by older, non-English speaking professions
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Inward Investment
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Why invest in the UK? (1)
•
A magnet for FDI: leading FDI destination in Europe.
•
No. 1 for European headquarter operations.
•
Internationally competitive location for tax.
Corporation tax down to 22% in 2014. R&D tax
credits.
•
Top three universities in the world.
•
10% of the world’s pharmaceutical R&D funding.
•
More than 100 science parks.
•
Vibrant markets in advanced materials, aerospace
and automotive.
•
One of the largest and most diverse creative and
digital industry sectors in the world.
•
European centre for professional services and world’s
leading global financial hub in London.
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Why invest in the UK? (2)
•
Easy to set up and operate ... also to exit.
•
Transparent legal and regulatory environment.
•
World-class international transport links.
•
Rich, diverse and cosmopolitan UK market: customers,
product innovators, suppliers and partners are easily
accessible.
•
Equally accessible for nascent, emerging and developed
economies.
•
Entrepreneurial culture.
•
Well-educated, motivated and flexible workforce.
•
UK labour regulations are among the most businessfriendly in Europe.
•
London ranked number one for its global appeal.
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UK Government measures attracting inward investment
•
Cutting corporation tax to 22% by 2014.
•
Committed to remaining one of the most open
countries in the world for ease of doing
business.
•
Major investment in education and training to
create an more flexible and educated
workforce.
•
Introduction of the “Patent Box”: 10% tax rate
for profits attributable to patents. R&D tax
credits.
•
Ongoing investment opportunities through the
Life Sciences Investment Organisation, Tech
City and other R&D ‘clusters’.
•
Visas for entrepreneurs and investors.
Plans for
£250bn
in infrastructure
investment
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Inward Investment - achievements
•
In 2011-12 the UK secured:
‒ 1,406 investment projects,
‒ helping to create or safeguard
‒ 52,741 new jobs,
‒ 59,918 jobs safeguarded.
•
Of these, UKTI helped to land 1,172
projects, generating 60,486 jobs.
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Other current investment priorities
•
GREAT campaign – high profile international campaign
supported by GREAT British brands and personalities;
•
the Tech City Investment Organisation has so far
attracted 37 companies to the area including Google, Cisco,
Chinasoft and venture-backed companies Yammer, Airbnb
and Twilio;
•
the Life Science Investment Organisation is
coordinating UK resources to support the delivery of higher
value and quality inward investment initiatives in the sector;
•
a new venture capital unit is looking to encourage VC
firms to locate in the UK.
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Inward Investment – UKTI’s role
For potential investors, knowing where
to locate their international business is often a long
and involved process. UKTI:
•
knows the UK’s strengths and where investment
opportunities exist, in a diverse range of sectors,
activities and locations;
•
helps businesses de-risk investment decisions
through the provision of expert
and objective information and advice;
•
supports businesses coming to the UK to get up
and running with speed and confidence;
•
continues working with investors once they have
set up in the UK.
For more information on how we can help, contact the UKTI Poland team or find us on Twitter.
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UKTI investment services (1)
•
Impartial advice on where and how to set
up a business in the UK.
•
Guidance on set-up procedures, e.g.
corporate structure, registering a company,
relocating staff.
•
In-depth, tailored information and advice,
e.g. premises, tax, R&D collaboration,
visas.
•
Access to lists of professional service
organisations which can support a
company’s move to the UK.
•
Practical help in the UK (visits to locations,
accessing financial incentives etc.).
•
Assistance in finding new partners and
expanding business.
UKTI aims to provide the most
effective end-to-end service possible
for inward investors.”
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Inward Investment – international data
Ernst & Young European Investment
Monitor 2012 (narrower definition of FDI):
• In 2011 the UK attracted 898 projects, up 13%
on 2010. This was far ahead of our main
European rivals – Germany with 558 (down
21%) and France 281 (down 2%).
2012 UN World Investment Report:
• UK is top in Europe for stock of inward
investment – US$£1,198 billion (2011),
a 3% increase on 2010.
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UK
3%
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UKTI investment services (2)
•
UKTI assists investors not only to set up but
also to thrive and grow once they are
established. This includes:
– access to our best-in-class exportsupport services;
– an understanding voice in Government
for investors’ needs and concerns;
– ongoing tailored support to help
investors flourish and grow in the UK.
•
UKTI’s strategic relationship management will
build Government’s understanding of the
requirements of important inward investors.
For more information on how we can help, contact the UKTI Poland team or find us on Twitter.
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Investment – recent successes
•
•
Jaguar Land Rover announced 1,000 jobs
at Halewood and plans to invest £1.5bn
annually.
Vauxhall at Ellesmere Port creating 700
direct jobs, plus 3,000 in the supply
chain.
•
Wind turbine manufacturer Gamesa
announced a manufacturing facility in
Leith worth up to €150m of investment,
supporting some 800 direct jobs.
•
RBK Money, one of the top payment
platforms in Russia, have chosen London
as the base for its new European
operations.
We have always benefited from
the UK's dedicated and highly
skilled workforce."
Eric Le Corre, Managing Director, Michelin UK
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Next steps – 3 critical success factors
• A good understanding of the market and what to do
• A seamless transfer to market
• A great banking partner – Santander BZWBK
UKTI Team Poland – Emerging market opportunity right on your doorstep
For more information on how we can help, contact the UKTI Poland team or find us on Twitter.
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Next steps – 3 key action points from our meeting
•Teleconference with our Head of Trade and relevant specialists
• We’ll send you some key materials on your sector and a quick analysis on
Poland or the UK
• Pop over for lunch – you’re most welcome!
UKTI Team Poland – Emerging market opportunity right on your doorstep
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We want to help YOU to do business
Martin Oxley
Director, UKTI Poland
[email protected]
twitter@UKTI_Poland
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