Location and connectivity

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2 Location and connectivity

3 Location and General Facts Baltic Sea Region one of the busiest regions of Europe Population of Latvia ~2million. Population within 600km ~130million Ventspils one of the largest port cities of Latvia Latvia one of the environmentally greenest countries in Europe ~5mln ~10mln ~1.3mln Ventspils ~2mln ~3mln ~10mln ~35mln ~25mln ~40mln

4 Regular overseas connections Daily service to Stockholm, Sweden (Stena Line, Ro- Pax) Weekly service to Zeebrugge, Belgium, with connecting service to Tilbury, UK (SOL Line, Ro-Ro) Possibility to tranship containers.

5 Connectivity over air Riga International Airport: Distance from Ventspils ~180km More than 65 destinations More than 15 airlines More than 50 daily departures Ventspils Airport: Air-taxi and charter flights State of art passenger terminal

6 Digital Connectivity Latvia is in Top10 globally for highest average internet speeds Ventspils is connected to the international telecommunication network with two independent optical submarine cables as well as four major terrestrial optical lines.

7 Real estate for rent or buy

8 Ventspils High Technology park Foundation Ventspils High Technology park was created to promote and foster the development of technologically intense industries in Ventspils. Supportive services for start-ups and mature companies include: Consultancy services in capital attraction, headhunting, marketing, accounting, networking etc. Legal address and front desk and secretariat Development projects/eu grants Infrastructure office and production premises Business incubation

9 Premises for rent in the Ventspils High Technology Park Port authority designs and constructs premises according to the needs of the company Rent price 4,06 Eur/sq.m/month Rent or purchase of adjacent land lots possible Future ICT and Innovation Centre Potential location

10 Premises for rent in the Ventspils Airport industrial area Address: 103 Ganibu Str. Size of the premises ~4050 m 2 Possibility to divide into two lots: ~2350 m 2 and ~1700 m 2, Rent price 4,06 Eur/sq.m/month Size of the land lot ~2ha, possibility to enlarge Rent or purchase of land lots possible

11 Sites in the special economic zone for logistics and manufacturing

12 Sites in the Ventspils High Technology park Port authority has prepared a number of land lots for rent Sizes of the land lots vary from 1ha to 50ha Land lots are connected to all basic infrastructure (road, water, electricity etc.) Rent or purchase of land lots possible

13 Conditions of the rent of land for manufacturing projects Rent and land tax calculation Rate in % of cadastral value Cadastral value, EUR/m 2 EUR/m 2 / a year Rent of the land for 0,25% 4,5 0,011 Land tax 4,5 without SEZ status 1,5% 4,5 0,07 in case of SEZ status 0,3% 4,5 0,014 Total amount payable for the land in case of SEZ 0,55% 4,5 0,025 Duration of the lease agreement is 45 years with a possibility at the end of the period to prolong it to another 45 years on the same rules and conditions

14 Possibilities for ICT Vision: Ventspils the smart choice for living, education, science and entrepreneurship in ICT Over-arching objective: Ventspils a European level hub for smart technologies ICT development strategy: Ventspils Digital Centre programs for development of IT knowledgeable community as well as extensive informal education programme in digital skills for children and youth Increase of IT students at the Ventspils University College and Ventspils Technical school Municipally funded grant programme for the development of ICT pilot projects Construction of Science and innovation centre with ~3000 sq.m. production office area for IT companies Ventspils High Technology park start-up support service

15 Taxation and Special Economic Zone

16 Total Tax Rates in Europe, Baltic Sea Region Denmark 18,7% 3,0% 2,8% Latvia 6,3% 26,6% 3,0% Finland 11,8% 24,8% 1,3% Norway 23,6% 15,9% 0,0% Lithuania 5,9% 35,2% 1,5% Germany 23,2% 21,2% 4,4% Sweden 13,1% 35,4% 0,6% Estonia 8,4% 39,0% 2,0% Profit Taxes Labour Taxes Other Taxes Total tax rate measures the amount of taxes and mandatory contributions payable by businesses after accounting for allowable deductions and exemptions as a share of commercial profits. Taxes withheld (such as personal income tax) or collected and remitted to tax authorities (such as value added taxes, sales taxes or goods and service taxes) are excluded. Source: World Bank Group and PricewaterhouseCoopers, Paying Taxes 2016, The global picture

17 Freeport a Special Economic Zone Ventspils Freeport is a special economic zone with tax benefits to the port terminals, logistics and industrial companies: Corporate Income Tax and Real Estate Tax are reduced by 80% until the company compensates up to 35% (55% for small and 45% for medium-size companies) of the investments. It means that during the compensation time: Corporate Income Tax rate is 3% Real Estate Tax rate is 0.3%. Example: Investment = 10 mln Profit = 1 mln Real estate value = 1 mln Taxation in Latvia: Profit tax (15%) = Real estate tax (1,5%) = Total = Taxation in Ventspils Profit tax (3%) = Real estate tax (0,3%) = Totally applied = Savings per year = =

18 Labour and education

19 Labour costs in Latvia Gross average salaries in private sector in Latvia, EUR

20 Ventspils Technical school a regional competence centre Secondary level education in following fields: Metalworking (engineering technician, welder (TIG) (MMA), metalworking machinery mechanic, milling, turning, locksmith, CNC technician) Energy (electrician) Electronics (soldering, telecom technician) Automotive (mechanics, car mechanics mechatronics) Tourism services (catering, cook) Business administration (accounting)

21 Ventspils University College a regional centre of excellence International Business and Export Management Business Administration and Management Electronics, Electrical Engineering and Ship Navigation Electronics Translation studies (English, German, Russian) Information Technologies

22 Successful cooperation in manufacturing development

23 «Bucher Municipal», Ltd. Street sweeper car factory, part of the world s largest holding for production of utility vehicles Start-up in Ventspils in 2005 in rented premises Buy out of premises in 2012 and construction of own premises. Total area ~ sq.m Attracted EU funding for development of technology lines ~260 employees

24 «Malmar Sheet Metal» Ltd. Metalworking products for the automotive industry Supplier for Scania, Volvo, MAN, Caterpillar etc. Productions in Ventspils started in 2006 Average number of employees 150

25 «Immer Digital», Jsc One of the most advanced enterprises in the world specializing in flexible packaging materials production. Partner company UkrPlastic is in the Top 15 in Europe among packaging companies High-tech production of flexible packing for food products using digital printing technologies Main specialization in food labels, pouches and full cycle packaging production with digital printing, lamination and prepress service. Factory in Ventspils opened in 2017 Premises rented from Ventspils Freeport Authority Planned amount of employees 150

26 «Pobeda Confectionery», Ltd. 4th largest Russian chocolate producer Capacity more than tons of chocolate producst per year Premises rented from Ventspils Freeport Authority ~75 new working places

27 «Froli Baltic», Ltd Plastic items for furniture industry and bed systems: Start-up in employees Holds numerous patents and award as the most innovative company in Germany in 2004

28 «BioVenta» Ltd. Production of Bio-fuel from rapeseed Start-up of production in employees

29 «EURO LCDs» Ltd. Manufacturer of LCD pannels, light polarizing modules, 3D displays Premisses ~4200sq.m with integrated cleanroom~1700sq.m ~40 employees

30 «Hansamatrix Ventspils» Ltd. One of the leading Nordic and Baltic electronic system development and manufacturing companies Belongs to the group of the largest Latvian electronics components producers ~ 200 employees in Ventspils

31 Quality of life and International acknowledgements

32 Ventspils - excellent recreation and tourism possibilities

33 International awards and acknowledgements Ventspils one of TOP 15 European cities for a romantic weekend in 2016 Ventspils the best regional location for business in Latvia in 2013, 2014 and /2011 Ventspils - 5th best special economic and port zone 2012/2013 Ventspils - 7th best special economic zone and 2nd best port zone 2015 Bespoke awards for global outreach, facilities upgrades and infrastructure improvements 2016/2017 Ventspils 2nd best FDI strategy among micro European cities of the future Ventspils a Guinness World Record holder On 24 July, 2010 Ventspils reached a Guinness record by making the longest flower carpet in the world (1, m)

34 Thank You Contacts: Igors Udodovs Deputy CEO Head of Marketing and Development Tel:

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