Freeport of Ventspils

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1 Freeport of Ventspils

2 Connectivity

3 Freeport of Ventspils is a part of the European Union core transport network (TEN-T)

4 Connectivity over sea and land Stena Line: Ventspils Nynashamn (Sweden) 5 times per week Ventspils Travemuende (Germany) 3 times per week

5 Free Port of Ventspils Deepest ice free port in the Baltic Sea Multipurpose port with main commodities: - liquid bulk - oil products, liquid chemicals - dry bulk - potash, coal, grain, peat, woodchips - general cargo - containers, Ro-Ro

6 Air traffic 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 passanger terminal

7 Latvia one of the best average internet speeds in EU GLOBAL TOP 10 Source: Akamai. State of the Internet Q report

8 Optical cable infrastructure Ventspils is connected to the international telecommunication network with two independent optical submarine cables as well as four major terrestrial optical lines: Lattelecom optical cable from Ventspils to Stockholm with a capacity of 10 Gbps Baltic Fiber optical cable Ventspils Gothland Stockholm: Constructed in 2002 is the newest cable in the Baltic Sea Consists of 68 fibers (manufactured by Ericsson) Present theoretical capacity from 10 to 40 Gigabit/sec each fiber Used capacity is 5 Gigabit/sec The cable has 0% damage rate and the operator guarantees a 99.7% availability of an international IP transit service

9 Taxation and Ventspils Free Port a special economic zone

10 Total Tax Rates in Europe Denmark Sweden Latvia 9,50% 4,90% 20,30% 3,00% 3,70% 17,70% 1,80% 27,20% 2,90% Source: World Bank Group and PricewaterhouseCoopers, Paying Taxes 2014, The global picture Lithuania 0 35,20% 1,30% Finland 14,50% 24,20% 1,30% Norway 24,80% 15,80% 0% Germany 23,30% 21,20% 4,00% Estonia 8,40% 39,00% 4,80% 0% 10% 20% 30% 40% 50% 60% 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.

11 Tax incentives in Ventspils (Pursuant to the law On tax application in free ports and special economic zones) Posibility to acquire tax incentives through the Special Economic Zone/Freeport status Reductions of Excise tax, Value Added tax and Customs duties Real estate tax and Corporate tax are decreased by 80% until return of 35% of the total investment (45% for medium size and 55% for small companies) Real Estate tax rate = 0,3% Corporate tax rate = 3%

12 Tax rates to licensed companies (According to the law On tax application in free ports and special economic zones) 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 = =

13 Human Resources in Ventspils

14 Ventspils Professional school Ventspils Professional school provides middle 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 mechanician, mechatronics) Tourism services (catering, cook) Business administration (accounting)

15 Ventspils Higher Educational institutions: Ventspils University College Riga Technical University Ventspils Branch The Baltic International Academy Ventspils Branch RPIVA Ventspils Branch Totally more than 1000 students studying in Ventspils bachelor, master and doctor level: Business Administration and Management Engineering (Electronics, Power and electrical engineering) Translation studies (English, German, Russian) Information technologies Law

16 Labs at the Ventspils University: Digital electronics and Electronical measurements labs Signal processing/ National Instruments lab Information transmission technology Lab Physics laboratory: Phywe, Edibon, 3D Scientific, Newport, Edmund Scientific equipment Optics and optoelectronics lab: Lasers, optical fiber, atomic force microscope, X-ray equipment Satellite Techlnology learning lab: Sattelite model, sensors, cameras, antennas, software and other in order to acquire skills in satellite developing and communication Mechatronics and robotics labs: Festo equipment Prototyping lab: for producing PCB s and various electronic circuits in small series Radio astronomy and remote sensing lab Satellite imagery processing lab

17 Technology Park and Business Incubator

18 Business Incubator support for FDI Size of the Business Incubator ~2000m 2, ~50 companies Available services: Legal address and support to start a business in Latvia Rent of premises, office equipment Front desk and secretariat Consultancy services in Marketing, Fund-raising, Local headhunting Other services that are necessary for the company can be financed with EU support Financial support rate in the business incubator - up to 80% grant for acquired services for new companies in Ventspils. In average Euro support per company.

19 Ventspils High Technology Park (VHTP): Greenfield area ~10ha All underground communications available on site (incl.water, sewerage, municipal heating, electricity 10MW, telecom and optical cable) Available SEZ status Possibility to use the VHTP Business Incubator and its business start-up support programmes.

20

21 Available premises Electronics Centre in Ventspils High Technology Park A 3700 m2, B 400 m2, C 200 m2 Planned amount of rental payment 3,84 EUR/m2 + public utilities payments Planned to be ready Owner Free Port of Ventspils Authority

22 Available premises Technology Centre in Ventspils High Technology Park A 2300m2, B 500m2, C 1400m2 Office premises available Planned amount of rental payment 4,07 EUR/m2 + public utilities payments Planned to be ready Owner Free Port of Ventspils Authority

23 Industrial premises and sites

24 There are industrial sites of ~600 ha available for development, including land lots dedicated for large projects of a size 50 ha and more

25 Conditions for the lease of the land for manufacturing projects Costs of the land: Rent = 0,25% from cadastral value of the land per year = 0,025 Euro for sq.m for year Land tax = 1,5% from cadastral value of the land per year = 0,15 Euro for sq.m for year = in case of the SEZ status only 20% of total amount Basic rules of the Land lease contract: Duration of the lease agreement 45 years with a possibility at the end of the period to prolong it to another 45 years on the same rules and conditions First refusal rights for the client General attitude: open for discussion to hear client s requirements and wishes to be implemented into the agreement

26 Projects in Pipeline

27 SIA Pobeda Confectionery 4th largest Russian chocolate producer Planned capacity more than 1080 tons of chocolate producst per year ~75 new working places Start-up planned in 2015

28 SIA Wasserkabel Montage Baltic Production of heating cables 30 new working places Start-up in the end of 2015 Country of origin: Germany

29 SIA Ventspils composites Production of fiberglass structures for chemical, petroleum and energy industry 50 new working palces Start-up in the end of 2015 Country of origin: Latvia

30 What do others say about us...

31 FDI Magazine s Global Freezones of the Future 2012/13 Rankings From over 700 economic zones globally

32 Ventspils the best regional location for business in Latvia in 2013 Ventspils the best regional location for business in Latvia in 2014

33 Ventspils: Quality of Life

34 Quality of Life Blue flagged beach Livonian orden castle, Open air Sea side museum Children recreation park Water attraction park Skater park Camping facilities Etc.

35 Blue Flagged beach and Jot harbour

36 Olympic centre VENTSPILS

37 Livonian Order castle & museums

38 Seaside park and Open air museum

39 Ventspils a City of Flowers

40 Ventspils city of tomorrow Possibilities that will suit your requirements the best

41 Thank You Contacts: Igors Udodovs Head of Marketing and Development department Tel:

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