Estonia at a Glance Kalda Kaupo © Estonian Investment Agency EIA Is a Division Within Enterprise Estonia

estonia at a glance Kalda Kaupo © estonian investment agency EIA is a division within Enterprise Estonia

+ information services and investment preparation + investment proposals and tours + consulting and project management + facilitating contacts, negotiation with authorities + organizing recruitment and identifying suitable properties + post-investment / aftercare services our global network

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North Estonia East Estonia

West Estonia

South Estonia northern europe’s hub for knowledge Finland Sweden Estonia and digital Russia Latvia

Lithuani business a Poland

Europe

+ population: 1.3 million + area: 45,339 km2 + currency: Euro + member of: EU, Eurozone, OECD, NATO and Schengen information society indicators

Entire country is covered 99% of state services 98% of the population with a broadband connection are online has an ID-card

1st country to use 5 days and 2% of GDP per year 30% of the population blockchain on national level is saved with digital signatures uses i-Voting business environment © Annika Haas digital business environment

98% of companies 99% of banking 95% of tax declarations e-Residency – Estonian established online done online filed online e-services to every world citizen international rankings

#1 #2 #1

OECD Tax Index of Economic Freedom in Internet Freedom Competitiveness Index EU (7th in the World) Freedom House 2017 The Heritage Foundation 2018 2017

#1 #12 #9

Entrepreneurial Activity Ease of Doing Business Digital Economy and World Economic Forum World Bank Society Index 2017 2018 European Commission 2017 Source: World Bank – ease of doing Doing Business 2018 business ranking

20 19 17 16

13 12 10 8 7

Denmark United Norway Sweden Estonia Finland Lithuania Ireland Latvia Germany Poland Kingdom credit ratings

AA- A+ A1 Standard& Poor’s Fitch IBCA Moody`s low risk – politically and economically stable

A balanced Lowest Political and future government stability oriented debt in Europe state budget Source: IMD World risk of political Competitiveness Yearbook 2016 instability*

8.14 8 7.3

6.14 6 5.99 5.26 5.19

4.06

2.78

UK Finland Sweden Belgium Estonia Italy Latvia Russia Croatia Spain

*10=the lowest risk; 0=the highest risk simple and favourable tax system FROM FROM 14% 0.1% 0% 20% 20% 33% 0% TO TO 20% 2.5%

Corporate Corporate Personal VAT Social tax No property The land income tax income tax income tax tax on reinvested on distributed tax profits profit Plus 2.4% unemployment insurance

EASY ADMINISTRATION All taxes can be declared via e-tax/e-customs Source: OECD corporate income tax on retained and reinvested profit

ESTONIA 0%

LITHUANIA 15%

LATVIA 0%

FINLAND 20%

GERMANY 29.8% labour market © Annika Haas Source: Statistics Estonia, 2018 / World Economic overview Forum, The Human Capital report 2017

8 1,221 HOURS A DAY 28 700,000 5.8% #12 10 EUR 5 days DAYS PER WEEK

Total Unemployment The average Globally in General Public The duration labour force rate in 2017 wage in human working time holidays of the annual Estonia in capital a year vacation 2017 potential maximization one of the world`s best-educated country

+ 1st in OECD's PISA tests in Europe + 3rd in OECD's PISA science skills tests in the world + 9th in OECD's PISA math skills tests in the world + over 85% of schools use e-School Runnel Tõnu

+ lifelong learning strategy with ICT © Source: Statistics Estonia, 2017 education system

7 17 39 168

UNIVERSITIES OTHER VOCATIONAL GYMNASIUMS 6 public, 1 private PROFESSIONAL SCHOOLS high schools HIGHER EDUCATION INSTITUTIONS

47,800 students ca 25,100 students ca 26,200 students smart and hard- working people

+ highly-skilled workforce + 86% adults speak at least one foreign language + #12 globally in human capital potential maximization* Altrov Source: World Economic Forum,

The Human Capital report 2017 © Renee activity economic

2015 2016 2017

GDP real growth (%) 1.5 1.7 4.9

GDP (current prices, billion EUR) 20.25 20.91 23

Change of consumer price index (%) -0.5 0.1 3.4

Labor force (thousands) 683.1 691.4 698.8

Unemployment rate (ILO, %) 6.2 6.8 5.8

Average wage (EUR) 1,065 1,146 1,221

Wage real growth (%) 6.0 7. 2 6.5

Source: Statistics Estonia, 2018 Source: OECD 2018

9,9 estonian GDP 15,4 2,8 by economic activity 2017 (%) 4

Manufacturing 4,1 Wholesale and retail trade Real estate activities 11,8 4,1 Transportation and storage Public administration and defence Information and communication 4,7 Construction Professional, scientific and technical activities 9,8 Education 5,7 Human health and social work activities Administrative and support service activities 6,6 Financial and insurance activities 7,6 Agriculture, forestry and fishing 6,2 7,3 Other sectors Source: Bank of Estonia (March 2018) GDP growth * forecast

4.9% 4.2% 2.9% 2.1% 1.2%

2014 2015 2016 2017 2018* foreign direct investments Jurkatam © Rasmus © Rasmus Source: Bank of Estonia (2018) FDI stock by country

28%

22%

8% 5% 4%

Sweden Finland Netherlands Lithuania Russia Source: Bank of Estonia (2018) FDI stock by sectors

29%

18% 13% 13% 8%

financial sector real estate activities manufacturing wholesale and retail trade professional, scientific and technical activities export & import Starship Technologies © Source: Statistics Estonia (2018) total exports across all commodities (million EUR)

12,784 12,521 12,288 12,006 11,892 11,575

2012 2013 2014 2015 2016 2017 Source: Statistics Estonia (2018) commodities exports by country

16% 14%

9% 7% 7%

Germany Russia Latvia Sweden Finland Source: Statistics Estonia (2018) commodities exports by commodity

26%

10% 11% 8% 9%

metals and articles of other manufactured mineral products wood and articles of machinery and metal articles wood mechanical appliances Source: Statistics Estonia (2018) commodities imports by country

14% 11% 9% 9% 9%

Latvia Sweden Lithuania Germany Finland Source: Statistics Estonia (2018) commodities imports by commodity

25%

13% 9% 9% 10%

chemical products metals and articles of mineral products transport equipment machinery and metal mechanical appliances Source: Bank of Estonia services exports and imports (2018)

EXPORTS IMPORTS 25% Finland 14% 9% Sweden 9% 7% Russia 4% 5% UK 6% 6% Latvia 9% 5% Germany 7% 3% Lithuania 6%

4% USA 3% key sectors

ICT Transport and Business Machinery and Electronics logistics services metalworking ICT

+ 6.2% of Estonian GDP + 1st Globally in the Digital Development Index + 5,000+ ICT companies + Usage and interoperability across citizens, + 20,000+ employees business + 120+ countries using Estonian ICT + Blockchain used since 2008 + 3,300+ digital services available to citizens, + Ultra modern ICT infrastructure, soon to be business and foreigners 5G + World leader in ICT based on its track record + World-class skills, experience and mindset of investments, innovations and rankings + Extensive ICT ness and state + 1st in Europe in the Global Cybersecurity Index business services

+ 60+ shared service centres + Among the best educated countries in + 8,000+ employees match, science, ICT + High employee productivity & innovation – + Ability to manage high order, global tasks Estonia ranks 1st in entrepreneurial activity and improve processes + Exceptional talent pool – 86% of the + High-quality, competitive costs and low risk workforce fluent in at least one foreign solutions for BPO, IT and financial services language + Regional market leader in IT shared services electronics

+ 230 companies + High added-value, efficiency and adaptability + 11,000 employees of product development processes + 2.13 billion EUR turnover + Excellent hub for both in-house and outsourced production and distribution + 94% exports + Full value chain of R&D, prototyping, precision + One of the largest electronics sectors in manufacture, assembly and service Europe per capita machinery and metalworking

+ 1,800 companies + Sustainable & high-quality skills base and + 33,000 employees competitive, low-inflation costs + 3.9 billion EUR sales + Branches: metals and metal products (57%), transport equipment (21%), machinery, tools + 80% exports & equipment (18%) + Dynamic, internationally focused mechanical engineering ecosystem transport and logistics

+ 1.45 billion EUR annual turnover + World leader in the development of digital + 8,000 companies logistics solutions + Deep water, ice free ports all year round + High-quality, globally integrated supply chain management + 3 free trade zones + Highly flexible, adaptable to change and on- + Strategic location between Nordics, EU and demand requests CIS regions + 7th in the ease of Trading Across Borders + Among the closest EU airports to Asia for airfreight Rail Baltic railbaltic.info © Rail Baltic

Estonia / Latvia + New 1,435 mm doubletrack railway line + Top speed up to 240 km/h TOTAL CAPITAL COSTS + To be finished by 2024 3.5 bill. € Lithuania Latvian border - Kaunas Kaunas - Vilnius Kaunas - Polish border

+ A 1,435 mm railway alongside old 1,520 mm railway + Top speed 120 km/h to 80 km/h + To be finished by 2024

Helsinki-Tallinn Tunnel A proposed undersea train tunnel connecting Finnish and Estonian capitals. ESTIMATED TOTAL CAPITAL COSTS 16 bill. € + Length: 92 km (the longest of its kind in the world) + Diameter: 14 m + 215 m below sea level at its deepest + Travel time: 30min (currently 2 hours) + Possible use of Hyperloop in the future + Estimated beginning of construction: 2025