EU funding for private companies

EU funding for private companies An outlook at the 2014-2020 programming period September 2014

1 GCI MARKET COVERAGE GCI Covers the DACH- and CEE/SEE-Region and Disposes of an International Network Europe Asia Vienna, AT Bucharest, RO Munich, DE USA Sofia, BG Beijing, CN Denver, USA Representative offices: Bolzano, IT Bratislava, SK Budapest, HU Prague, CZ

2 SERVICES Two Integrated Competence Centres Corporate Finance und Corporate Performance Corporate Finance Business Financing Development and implementation of innovative financing concepts Identification of financing partners and process management Subsidies: concepts and implementation Funds conception and management Capital market access: prospectus, IPO and listing Corporate Performance Performance Management Optimization of processes and organizational development Cost reduction and efficiency improvement Optimization of supply chains Working capital management and liquidity management Development of integrated planning models Financial and operational controlling Development of restructuring concepts Interim management M&A Advisory Structuring of M&A processes and process management Financial modelling and data books Investors search and target scouting Due Diligence - valuation Post merger integration and transition management Business Development Development of growth strategies Creation of concepts for market entry and internationalization Penetration of new markets and business areas "Sales Audit" and "Sales Push Sales organization and processes Pricing strategies Idea / innovation management and CIP

3 REFERENCES Selected Clients and Projects Funding Romania

4 AGENDA An outlook at the 2014-2020 programming period

5 OVERVIEW Current EU planning period XXL National Rural Development Competitiveness XXL Regional Development XXL Human Capital Operational Programms 2014-2020 Large Infrastructure XXL XXL Fisheries and Maritim Affaires Administrative Capacity Technical Assistance

6 OVERVIEW Large companies have fewer EU funding opportunities in the 2014-2020 program Program Competitiveness Human Resources Large infrastructure Regional development Overview of Operational Programs relevant for private companies Themes Large enterprises SMEs 2007-2013 2014-2020 2007-2013 2014-2020 Production equipment Yes No Yes Moved to Regional Development Innovation, R&D + implementation of research Yes Yes Yes Yes IT development No Yes (clusters) Yes Yes (clusters) RES energy production Yes Moved to Large Moved to Large Yes Infrastructure Infrastructure Energy efficiency in production Yes No Yes No Cogeneration Yes Moved to Large Moved to Large Yes Infrastructure Infrastructure Support for increasing employment rate Yes Yes Yes Yes Education and transition towards employment Yes Yes Yes Yes RES energy production NA Only geothermal, Only geothermal, NA biomass, biogas biomass, biogas Cogeneration NA Yes NA Yes Production equipment for SMEs NA No NA Yes Knowledge transfer and information dissemination Yes, HR companies Yes, HR companies Yes, HR companies Yes, HR companies Non-agricultural development in rural areas No No Micro and small only Micro and small only Rural Agricultural holdings Yes Yes Yes Yes development Food processing & marketing Yes Yes Yes Yes Support for young farmers No No Yes Yes Aquaculture Fisheries No NA yet Yes NA yet

7 R&D FUNDING (1/3) R&D funding is still accessible for large companies PO C Programul Operational Competitivitate R & D funding opportunities (Competitivity PO C Axis 1 797 million EUR*) 1.1.1. R&D projects conducted by individual companies or in partnership with R&D institutes and universities in order to obtain product or process innovation in the sectors that have growth potential Objective: Increased private investments into R&D Type of projects financed: innovative technological projects, which will achieve a product innovation (both goods and services), a product and process innovation or only a process innovation innovative start-ups and spin-offs projects for temporary employment of highly qualified personnel in order to increase the R&D capacity of companies Beneficiaries: companies which don t have R&D as a primary focus, by themselves or in collaboration with R&D entities (universities etc.); Estimated grant intensity: 25% to 45% for R&D costs (experimental research, depending on the size of the company); up to 50% (large companies), up to 70% (SMEs) of eligible costs for the implementation investment; Eligible costs: R&D (personnel, consumables and equipment depreciation), R&D services, investment costs to implement the result (purchasing of equipment, construction works related to the equipment) * Budget for the whole axis, including other measures not focused on private companies

8 R&D FUNDING (2/3) R&D funding is still accessible for large companies PO C Programul Operational Competitivitate R & D funding opportunities (Competitivity PO C Axis 1 797 million EUR*) 1.2.1. Large R&D infrastructure Objective: Increased scientific capacity as a driver of innovation Type of projects financed: upgrading old R&D infrastructure building new R&D infrastructure * the infrastructure must be connected with R&D clusters * both preparation (feasibility studies etc) and implementation (equipment, construction) will be financed Beneficiaries: research companies Estimated grant intensity: up to 50% of eligible costs for large enterprises and up to 70% for SMEs. Grant intensity depends on the region. Eligible costs: tangible (equipment and building) and intangible assets for R&D * Budget for the whole axis, including other measures not focused on private companies

9 R&D FUNDING (3/3) R&D funding is still accessible for large companies PO C Programul Operational Competitivitate R & D funding opportunities (Competitivity PO C Axis 1 797 million EUR*) 1.2.4: Attracting personnel with advanced skills from abroad to strengthen the capacity of R&D Objective: Increasing Romanian participation in EU research Type of projects financed: creating centers of scientific competence and / or high-level technology to European standards within an R&D institution, a university or a local business by attracting foreign specialists of any nationality, with recognized competence Beneficiaries: research companies Estimated grant intensity: up to 50% of eligible costs for large enterprises and up to 70% for SMEs for industrial research and up to 25% and 45% respectively for experimental development Eligible costs: personnel costs, consumables, R&D equipment depreciation for project period * Budget for the whole axis, including other measures not focused on private companies

10 ICT FUNDING ICT clusters can obtain funding from EU PO C Programul Operational Competitivitate ICT funding opportunities (Competitivity PO C Axis 2 523 million EUR*) 2.2.1. Supporting the increase in added value and innovation in the ICT sector through the development of clusters Objective: Increasing vertical integration of innovative ICT solutions in economics Type of projects financed: development, made by clusters, of ICT ranges of products / services with applications in the Romanian economy; innovative strategic projects submitted by clusters with an impact on the development of the whole ICT industry on a national or international level. Beneficiaries: companies belonging to ICT clusters Estimated grant intensity: up to 50% of eligible costs and up to 70% for SMEs; can be increased by 15% in certain conditions Eligible costs: personnel and administrative costs, marketing costs * Budget for the whole axis, including other measures not focused on private companies

11 RES ENERGY FUNDING Only certain RES will be supported in the 2014-2020 program PO IM Programul Operational Infrastructura Mare RES Energy Production ( PO IM Large Infrastructure, Priority Axis 7 budget n/a) SO 7.1. Increasing the installed capacity of electricity and heat production based on renewable resources Objective: Reduction of carbon emissions Type of projects financed: Creation and modernization of biomass and biogas production capacities of electricity and / or thermal power Creation and modernization of geothermal energy production capacities Creation and modernization of small micro hydro production capacities (in discussion) Beneficiaries: Companies with energy production as activity Estimated grant intensity: Up to 45% for large companies, up to 55% for medium companies and up to 65% for small enterprises Eligible costs: the extra investment costs necessary to promote the production of energy from renewable sources

12 ENERGY EFFICIENCY FUNDING Cogeneration support is still present for large companies PO IM Programul Operational Infrastructura Mare Energy Efficiency ( PO IM Large Infrastructure, Priority Axis 7 -??? Mil EUR) SO 7.2. Increasing energy efficiency in enterprises through high efficiency cogeneration systems Objective: Increase of efficiency of cogeneration processes in the industrial sector; avoiding carbon emissions Type of projects financed: construction of low power high efficiency gas and biomass cogeneration plants for enterprises construction of high efficiency cogeneration plants which use residual gases from industrial processes At least 60% (est.) of energy production has to be consumed in by the company. Beneficiaries: Industry enterprises with a consumption of over 200 toe/year (aprox. 2.300 MWh) and a thermal necessity for industrial processes of over 4.000-.5000 h/year Estimated grant intensity: Up to 45% for large companies, up to 65% for SME s (depending on region) Eligible costs: investment costs for the equipment and construction works needed for the high-efficiency cogeneration plant (modernization of a cogeneration plant to be higher efficiency or building a new one to replace separate production of power and heat)

13 EQUIPMENT FUNDING (1/2) Industrial start-ups can obtain funding from the Regional Development Program POR Programul Operational Regional Industry funding opportunities for SMEs (Regional Development POR Axis 2 700 million EUR) POR 2.1. Support for new SMEs and business incubators Objective: Strengthening the market position of start-ups Type of projects financed: construction / modernization and expansion of the production / services of SMEs, including the acquisition of tangible and intangible assets creation / modernization / expansion of SME incubators / business accelerators, including development of related services and incubated companies Beneficiaries: non-agricultural SMEs with 1-3 years of activity Estimated grant intensity: up to 75% Eligible costs: IT equipment, industrial equipment and software, office equipment, energy saving equipment/installations

14 EQUIPMENT FUNDING (2/2) Industrial SMEs should also access the Regional Development Program for funding POR Programul Operational Regional Industry funding opportunities for SMEs (Regional Development POR Axis 2 700 million EUR) POR 2.2. Support for SMEs Objective: Increasing economic competitiveness by supporting SMEs Type of projects financed: construction / modernization and expansion of the production / services of SMEs, including the acquisition of tangible and intangible assets activities required for completion and implementation of the certification of products, services or specific processes. promoting products and services Beneficiaries: non-agricultural SMEs with more than 3 years of activity Estimated grant intensity: up to 75% Eligible costs: IT equipment, industrial equipment and software, office equipment, costs related to innovation * Budget for the whole axis, including other measures not focused on private companies

15 HR DEVELOPMENT FUNDING (1/2) The EU will encourage the employment of youth PO CU Programul Operational Capital Uman HR funding opportunities (PO CU) Priority Axis 1: Workplaces for the young budget 212 million EUR Objective: Increase of occupation rate for NEET* between 16 and 24 years old, increase of competencies for NEET between 16-24 years old Type of projects financed (selection relevant for companies): training programs in collaboration with employers support for employers for hiring young NEET Beneficiaries: Companies willing to hire and train young NEET Estimated grant intensity: Up to 50% of eligible costs (support for the employer), up to 70% of eligible costs (for training) Eligible costs: wage costs over a maximum period of 12 months following recruitment (support for the employer), trainer and trainee costs, materials, supplies, travel expenses (for training) *Not in Education, Employment or Training

16 HR DEVELOPMENT FUNDING (2/2) Hiring long term unemployed is also a priority PO CU Programul Operational Capital Uman HR funding opportunities (PO CU) Priority Axis 3: Workplaces for everyone budget 1.100 million EUR Objective: Increase of occupation rate for inactive workers, with accent on long-term unemployed, old, disabled, low educated, rural or roma workers, increase of competencies for inactive workers, with accent on long-term unemployed, old, disabled, low educated, rural or roma workers Type of projects financed (selection relevant for companies): training programs in collaboration with employers support for employers Beneficiaries: Companies willing to hire and train unemployed workers Estimated grant intensity: Up to 50% of eligible costs (support for the employer), up to 70% of eligible costs (for training) Eligible costs: wage costs over a maximum period of 12 months following recruitment (support for the employer), trainer and trainee costs, materials, supplies, travel expenses (for training) *Not in Education, Employment or Training

17 RURAL DEVELOPMENT FUNDING (1/2) Agricultural equipment can be funded through PNDR PNDR Programul National de Dezvoltare Rurala Investments for agricultural holdings (Rural Development PNDR Axis 4) PNDR 4.1: Investments for agricultural holdings Objective: increasing the competitivity of agricultural holdings, farm modernization Type of projects financed: Setting up or expansion of farms, including pollution reduction and compliance to standards Infrastructure for farms (roads, utilities) Farm-level processing Irrigation investments Beneficiaries: farmers (including agricultural companies) Estimated grant intensity: up to 50%, up to 2 million EUR depending on the type of the investment Eligible costs: equipment costs, construction costs, crop set-up costs, costs for reaching compliance to standards * Budget for the whole axis, including other measures not focused on private companies

18 RURAL DEVELOPMENT FUNDING (2/2) Investments into the processing of agricultural products are still a priority in the upcoming program PNDR Programul National de Dezvoltare Rurala Investments for agricultural holdings (Rural Development PNDR Axis 4) PNDR 4.2: Investments for processing and marketing of agricultural products Objective: increasing the competitivity of processing activities, increasing the added value of the agricultural products Type of projects financed: Setting up or expansion of processing and sales units Setting up and expansion of local collection, distribution, packing networks for agricultural products Quality control improvements Green energy production as part of the processing Beneficiaries: companies and cooperative associations Estimated grant intensity: up to 50% for SMEs, upt to 40% for large companies, up to 2,5 million EUR depending on the type of the investment Eligible costs: equipment costs, construction costs, costs for reaching compliance to standards * Budget for the whole axis, including other measures not focused on private companies

19 CONTACT Your contact: Norbert Höckl n.hoeckl@gci-management.com +40 723 46 32 55 GCI Bucharest Str. Nicolae Racota 5 RO-011392 Bucharest Telephone: 0040 21 310 35 79 Telefax: 0040 21 310 35 80 gci.ro@gci-management.com www.gci-management.com Bratislava Budapest Bucharest Denver Munich Peking Prague Sofia Wien