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Explore opportunities in Belt and Road countries –Poland, Czech Republic & Ukraine

PartnerCEE Clients & Markets Leader

CEE Advisory LeaderPwC CEE

Piotr Romanowski

Introduction to PwC CEE & Chinese Investment in Poland, Czech Republic and Ukraine

PwC 2

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Introduction to PwC Central and Eastern Europe (CEE)

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Our team from CEE

Piotr Romanowski

AgnieszkaGajewska

Tomasz Baranczyk

Oleg Tymkiv

Jan Brazda

Darren Chong

CEE Advisory, Clients & Markets Leader

CEE Capital Projects & Infrastructure Leader

CEE Tax Managing Partner

CEE Deals Partner

CEE Capital Projects & Infrastructure Partner

CEE China Business Group Leader

Poland Poland Poland Ukraine Czech Republic

Poland

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PwC CEE – a network of 29 countries

Ukraine

MoldovaRomania

Bulgaria

HungarySlovakia

Czech Republic

Uzbekistan

Slovenia Kazakhstan

Kyrgyzstan

Azerbaijan

Croatia

Bosnia

SerbiaMacedonia

Georgia

Albania

Montenegro

Armenia

Turkme-nistan

Mongolia

Kosovo

Belarus

Russia

EstoniaLatvia

Lithuania

Poland

6% world population

Combined Population

407 m

5 disputed territories

Combined GDP

$3.1 trillion

4.2% of world GDP

29 countries275 Partners 11 000 Staff 56 offices

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More than 25 languages (English is the common language in all offices)

Unique cultures (complemented by the PwC partnership culture)

Different legal and regulatory systems

Several alphabets and character sets

Different levels of economic and political development

24 currencies (with significant currency fluctuation)

A diverse and complex region (1/3)


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2.0%1.7%3.1%4.0%2.5%3.5%3.3%

3.8%5.5%1.8%

3.2%

3.6%-1.0%2.0%

3.3%

Source: WORLD ECONOMIC OUTLOOK, October 2017 Source: WORLD ECONOMIC OUTLOOK, October 2017

GDP per capita, current prices(USD ths, 2017, est.)

Real GDP growth 2017 (est.)

Kazakhstan

UkraineAzerbaijan

44.18

Bulgaria

10.37

19.82

7.92

17.4913.46

8.59

20.5823.28

28.21

2.46

10.25

4.10

13.43

38.85Germany

Poland

Slovenia

Romania

HungarySlovakia

Russian Federation

Spain

PortugalCzech Republic

United Kingdom

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0

20

40

60

80

100

120

140

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Source: World Bank, Ease of Doing Business Index

Ease of doing business ranking

CEE countries:Non-CEE countries:

20062006

20172017


Georgia Estonia Germany Poland Spain Portugal Czech Rep

France Russia Kazakhstan Serbia Romania Italy Croatia Azerbaijan Ukraine

Today’s focus: Czech Republic, Poland & Ukraine

Czech Republic Poland Ukraine

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• 10 million inhabitants

• Most industrialized country in Central Europe(industrial sector is 37.5% of the economy)

• Has attracted huge FDI (EUR 77.8 billion since 1993)

• Massive economic ties with Western EU (>60% of foreign trade)

• Strong economy and currency (2.7% unemployment; CZK appreciating)

Czech Republic – the most mature Central Europe economy

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• The largest market in Central Europe – both in terms of consumer spend and human capital

• The largest beneficiary of EU funds across CEE (EUR 100 bnearmarked for Poland in the current EU budget for 2014-2020)

• 25 years of uninterrupted growth (every quarter, 2009 included)

Poland – the largest market in Central Europe

Ukraine – high upside potential

Source: World BankPwC 12


• Gradual recovery from Crimean/Donetsk conflict (GDP: - 29.8% in 2015; 3.3% in 2016; 2.1% in 2017; 3.2% in 2018 est)

• Most advantageous renewable energy tariffs in CEE(solar – EUR 150 / 1 MW; wind – EUR 102 / 1 MW)

• Underdeveloped infrastructure (EUR 50* bln investment required till 2030)

• Upcoming privatization

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Chinese investment in Czech Republic, Poland & Ukraine

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China substantially increased FDI in selected CEE countries in 2016

China’s FDI flows into CIS countries is stable and growing in 2016

16551534128164

402527

BulgariaRomaniaCzech RepublicPoland

2000-2015 (annual average) 2016USD mln

Source: Mercator Institute for China Studies

Source: Ministry of Commerce of PRC

158160178487

KyrgyzstanKazakhstanRussia BelarusUzbekistan

1 300

Direct investments and the presence of Chinese banks have increased China’s presence in CEE; the investment is expected to continue growing

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Selected Chinese Companies in Ukraine, Czech and Poland

UkraineChina National Building Materials & Equipment Import and Export CorporationZhejiang Furuipu Building Material Import and Export CorporationChina FAW Group CorporationChina Machinery Engineering CorporationChina Gezhouba GroupHytera Communications CorporationHuaweiLenovo Sany Heavy Equipment International Holdings Company LimitedCOFCO

Approx 20

Czech RepublicCEFC China EnergyXian Shangu PowerBuzuluk KomarovNoarkChanghongHuaweiZTEShanxi Yuncheng Plate Making Group Co.,Ltd.COSCO North CarChina Eastern AirlinesHainan AirlinesSichuan AirlinesBank of ChinaCNRWanfeng GroupShaanxi Blower (Group) Co., Ltd.

Approx 40

PolandLiuGong MachineryTri-ringXiaomiEverbrightNovetekTCLBiotonPinggao GroupHuaweiZTEBank of ChinaICBCChina Construction BankNuctechSinohydroTP LinkCOSCO

Approx 100PwC 15

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Overview of PwC Services

Advisory• Digital &Technology• Transactions, mergers and aquisitions• Research & Development (R&D)

and Innovation Management• Operational Efficiency• Inward Investments• Creating and Implementing Strategies• Procurement and infrastructure

investments• Change Management• Forensic Services• HR Consulting• Corporate Social Responsibility

Assurance• Audit• Internal Audit• Financial Reporting and Accounting

Advisory Services• Regulatory Services• International Financial Reporting

Standards• Accounting and Payroll Outsourcing• Risk management• Corporate governance• Business controls and performance

assurance• IT risks/Cyber Security• Financial Risk

Tax & Legal• Indirect Taxes• Tax Litigation• Legal services• International Tax Structuring• Transfer Pricing Services• Human Resource Services (HRS)• IT Based Tax Consulting• Accounting and Payroll Outsourcing

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Chinese speakers coordinate and deliver professional services

Experienced consultants who understand Chinese business culture and have experience working with Chinese clients

Access to business opportunities in 29 countries across CEE

Working closely with PwC China to enhance service quality

A single point of contact for your investments in 29 countries

Successfully helped Chinese clients entering into CEE market

Working with PwC CEE China Business Group

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Thank you!

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

© 2018 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. CN-20180411-3-C1