Made in Czech. Investor s Guide for Manufacturing and Logistics Companies 2015

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1 Made in Czech Investor s Guide for Manufacturing and Logistics Companies 2015

2 1 Made in Czech Investor s Guide for Manufacturing and Logistics Companies 2015 Foreword The Czech Republic has a long and rich history as one of the world s most successful manufacturing and logistics markets. We also believe that it has a very bright future. The Czech Republic is truly situated at the geographical heart of Europe and has the infrastructure in place to operate as the gateway between the East and the West. With its population at just a little over 10 million people, it is a relatively small market but, is a heavyweight in the manufacturing arena. It is a strategic location for numerous manufacturing and logistics companies planning activity throughout Europe, Central & Eastern Europe, Russia and other CIS countries. The well-established Czech highway and road network is continuously seeing further additions and improvements, particularly since the country s economic outlook has improved over the past few years. These advantages, linked with the highly skilled workforce, low labour costs, the availability of investment grants and incentives and EU Membership, since 2004, make the Czech Republic a very attractive, business-friendly location. Local knowledge is key to making the most of the opportunities that the Czech market has to offer. For this very reason, JLL has prepared this report in co-operation with the following partners: PwC and Hays. This report aims to offer guidance to international manufacturing and related service companies that wish to establish or grow their presence in the Czech Republic and provides an inside view of the country s manufacturing landscape. It also offers key expertise on the Czech labour market with regard to the manufacturing sector and advice on important legal topics such as the structure of grants and incentives, setting-up a business and taxes. Insights into the manufacturing industry are demonstrated with sector analysis. Commentary on the real estate market provides a guide to the different acquisition and rental methods, timeframes and market practices and trends. We would like to thank all partners involved for their valuable input in preparing this report. We firmly believe that Made in Czech is a useful source of information for investing in this country. Tewfik Sabongui Managing Director Czech Republic JLL Harry Bannatyne Head of Industrial Agency Czech Republic JLL

3 Content Table 1. Executive Summary 3 2. Labour Market 5 3. Grants & Incentives 8 4. The Infrastructure Map of the Czech Republic Key Manufacturing Sectors in the Czech Republic 12 Automotive sector 14 FMCG sector 18 Home Appliances, ICT and Electronics 22 Medical and Pharmaceutical Industry 24 General Machinery The Czech Industrial Real Estate Market Real Estate: Rent or Buy? 30 Rent a facility? 30 Buy a facility? 31 Overview of the permitting process 32 How quickly can you be operational? 32 Market practice for leasing space 33 Market practice for purchasing space Real Estate Acquisition Setting-up a Business Czech Tax Structure 39

4 3 Made in Czech Investor s Guide for Manufacturing and Logistics Companies Executive Summary The Czech Republic, with a population of just over 10 million people, is one of Europe s and the World s biggest success stories in terms of manufacturing. The Czech Republic s close connection to Western markets, particularly the German market, and good cooperation with central European countries, provides it with a balanced position and excellent economic stability in both booming times, as well as crises. The Czech Republic mainly benefits from its unique location in the heart of Europe, representing a junction of trans European transport corridors, in addition to a highly educated population and a well- developed infrastructure. Numerous international companies have already identified the country s potential and have taken advantage of the favourable conditions that we highlight in this paper. The following are our key rationale for investing in the Czech Republic: Czech investment rationale Central European hub and favourable geographic location Political and economic stability, with one of the highest GDP growth rates forecasted in the EU in 2014/2015 Availability of a highly skilled workforce Low labour costs vs. high labour productivity Quality logistics / industrial real estate stock Favourable government investment incentives, mainly focused on hi-tech projects One of the densest highway networks in Europe One of the densest rail networks in the world Excellent business opportunities in the areas of R&D, Design and Innovation Fast growing market In May 2014, the Czech Republic had its 10 th anniversary of becoming a member of the European Union. Being a part of the single European market has certainly brought trading benefits along with reforms that have provided a relatively stable market environment, for today s standards, and a reliable, safe business climate. According to Oxford Economics, The Czech Republic is forecast to experience one of the highest GDP growth rates in Europe with an average of 3.0% between 2014 and The country continues to attract a large share of Foreign Direct Investment (FDI), most recently with new investments from Nexen (tyres), Hyundai Mobis (automotive components) and Bell Helicopters. Investment rating The Czech Republic has the strongest country ranking in CEE from all three major rating agencies. Moody s have ranked the Czech Republic A1, Fitch giving the rank of A+, both of them confirming a stable outlook. S&P ranked the Czech Republic at AA. Country Fitch Moody s S&P Czech Republic Hungary Poland Romania Slovakia Slovenia A+ (stable) BB (stable) A (stable) BBB (stable) A+ (stable) BBB+ (stable) Source: Fitch, Moody s, S&P, 2015 Attractive labour market A1 (stable) Ba1 (stable) A2 (stable) Baa3 (stable) A2 (stable) Baa3 (stable) AA (stable) BB+ (stable) A (positive) BBB (stable) A (positive) A (stable) The population of the Czech Republic reaches over 10.5 million inhabitants. The largest city is the capital city of Prague with more than 1.2 million inhabitants. Other large cities include Brno, Ostrava and Pilsen, all with populations of above 150,000 inhabitants. The labour force of the Czech Republic, aged between years, exceeds 7.3 million people, which is ca. 70% of the population. With inhabitants per sq km, it has the highest density of inhabitants in the CEE region and the 13 th highest density of inhabitants among European countries. According to Eurostat, the Czech Republic offers some of the most competitive labour costs in Europe at EUR 10.3 per hour. This rate is more than half of the EU 28 average and 3 times lower than in neighbouring Germany. Educated workforce The Czech Republic offers a highly qualified workforce with wide ranging experience in the manufacturing sector. The well renowned and long industrial history of the country is supported by a network of universities, secondary technical schools and training centres, providing a significant number of graduates. The Czech Republic has 77 public and private universities, with a total of 375,000 students. The highest portion of students is, unsurprisingly, in the largest cities of Prague, Brno and Ostrava. On the other hand, in every single regional capital there is at least one university. The highly skilled workforce is therefore distributed across the regions and it is not concentrated purely in the largest cities.

5 Made in Czech Investor s Guide for Manufacturing and Logistics Companies Favourable grants & incentives In addition to its attractive labour market and availability of workforce, another important draw factor for manufacturers assessing where to locate a new development, is the availability of investment incentives offered by the government. These are handled by CzechInvest, the Investment and Business Development Agency, a state agency created by the Ministry of Industry and Trade. Attractive investment incentives are granted through many forms of state aid, including: corporate income tax relief, transfer of land for favourable prices, job creation grants, training and retraining grants, and cash grants for the acquisition of long-term tangible and / or intangible assets. Maturing real estate market The real estate market is maturing, offering high quality manufacturing and warehouse space. Many large international developers are present in the market. The various options of buying or renting an existing facility or commissioning a built-to-suit production facility are outlined in this report. According to the JLL Global Real Estate Transparency Index, based on a combination of quantitative market data and information gathered through a survey of the global business network of JLL and LaSalle Investment Management, the Czech Republic has a transparent real estate market which is closing the gap with Western Europe. The index is based on a review of the following categories: The manufacturing sector is evolving The Czech Republic is an export oriented, open economy, with a strong emphasize on manufacturing. The country has shifted from an assembly production market to an added value manufacturing and high technology production zone, serving also as a transit station and distribution hub for goods from the east and south east to northern and western Europe. The Czech Republic has the most developed industrialized economy in Central and Eastern Europe. Its strong industrial tradition dates back to the 19 th century when Czech countries represented the industrial engine of the Austro-Hungarian Empire. Performance Measurement Market Fundamentals Governance of Listed Vehicles Regulatory and Legal Transaction Process Europe Real Estate Transparency, 2014 Highly Transparent Transparent Semi-Transparent The manufacturing industry is one of the most important parts of the national economy, representing a substantial share of gross domestic product. The traditional industries are heavy and general machine-building, iron and steel production, metalworking, chemical production, electronics, transportation equipment, plastics, textiles, and pharmaceuticals. The long term leading sector is automotive production, which strengthen its position every year. On the other hand, we are recording a gradual decline of the mining sector. In the European, as well as global rankings of most industrialised countries, the Czech Republic always belongs among the top positions. Thanks to its strategic location, next to Germany, in the centre of continental Europe, the Czech Republic is an attractive place for manufacturers to near shore operations and also to progressively compete for cost-effective, value-added manufacturing, supported by a highly skilled workforce. Low Transparency Opaque Not Covered GB BE IE FR ES PT FI SE NO DK NL BY DE PL CZ SI UA AT HU SL RO IT RS CH HR G R BG IL TR RU Source: JLL 2014 The Czech Republic is out of this world! The European Global Navigation Satellite Agency (GSA) has selected Prague as its headquarters for the Galileo navigation system project which is anticipated to attract a great deal of talent, knowledge and put a spotlight on the Czech Republic. This project will provide an opportunity, to both Czech companies and their partners, to push the boundaries in terms research and innovation into space related technologies and systems.

6 5 Made in Czech Investor s Guide for Manufacturing and Logistics Companies Labour Market Section contributed to by Hays Czech Republic Human capital is a key element in the investment process. The three main areas to assess with regard to investment potential include employment costs, availability of workforce and quality of labour. A focus on Czech labour dynamics will be outlined in this chapter. From a human resources perspective, the Czech Republic offers a highly qualified workforce with wide ranging experience in the manufacturing sector. The well renowned and long industrial history of the country is supported by a network of secondary technical schools and training centres, providing a significant number of graduates. In addition, the presence of technical universities across the country including: Prague, Brno, Liberec, Ostrava, Pilsen, Ústi nad Labem and Zlín, allow for a sustainable flow of electrical, mechanical and manufacturing engineers. Although the Czech Republic has slightly higher employment costs, when compared to other markets in the region, this is offset by the high levels of technical education and the general above average language knowledge (English and German) within the CEE region. Combined with the countries geographical location and developed transport network, it makes the country a very attractive location for manufacturing companies and also those with added value production or R&D Centres. Severance Employment lasted < 1 year employee is entitled to 1x average monthly earnings Employment lasted > 1 and < 2 years employee is entitled to 2x average monthly earnings Employment lasted > 2 years employee is entitled to 3x average monthly earnings Source: Hays Czech Republic Other information Notice period: Holidays/year: Bank holidays: 2 months by law, or by agreement 20 days by law Working hours/week: 40 (Typical) Sick Leave: Source: Hays Czech Republic 13 (Fixed to specific dates) 1 st 3 rd day no reimbursement, 4 th 14 th day reimbursed by employer, 15 th + day reimbursed by the state Labour law A trial period of up to 6 months can be agreed with so-called managerial/leading employees entitled to determine and assign tasks and give instructions to their subordinates and to organise and control their work. The trial period of a maximum 3 months, is applicable to other employees, regular staff. Employment for an indefinite period is the most common in the Czech Republic, preferred by both parties (employer and employee). Employment for a definite period concluded between the same contracting parties may not exceed 3 years. From the day when the first employment for a definite period is concluded, this employment term may be repeated twice only. Extended employment will be considered repeatedly concluded employment. Previous employment for a definite period will no longer be taken into account three years after the end of the last employment for a definite period. Employment costs The two most significant components of employer costs are salaries and Social Security Contributions (SSC). According to Eurostat, the Czech Republic offers one of the lowest labour costs in Europe at EUR 10.3 per hour. This rate is more than half of the EU 28 average and 3 times lower than in neighbouring Germany. Comparison of hourly total labour costs among selected European countries in the Industrial and Construction sectors (in EUR) 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 Sweden France Austria Germany EU (28 countries) Spain United Kingdom Slovenia Czech Republic Slovakia Poland Hungary Romania Source: Eurostat, 2013

7 MadeinCzech Investor sguideformanufacturingandlogisticscompanies Statutory employer costs Social security Sicknessinsurance 2.3% Retirement/pensioninsurance 21.5% Employmentinsurance 1.2% Health security 9.0% Total paid by employer on top of salary 34.0 % Source: Hays Czech Republic Additional costs Optional Benefits Costs average annually CZK / per head WhenassessingemploymentcostsamongtheCzechregions, thevariationbetweenaveragesalariesineachregionshouldbe considered.salarylevelsmostlydependonthedevelopmentofeach region,aswellasthetypeofindustrysituatedinthatparticulararea. Typical average gross monthly salaries for selected regions and general manufacturing positions (EUR) Prague Brno Pilsen Ostrava Skilledworkers Unskilledworkers Engineers 1,450 1,290 1,350 1,200 Source: Hays Czech Republic / CNB FX Rate (13/3/15) 1 EUR = CZK 1extraweekofholidays(over 80%companies) LunchVouchers(over76% companies) Cafeteria/flexiblebenefits forcultureetc.(around30% companies) HealthCareBenefits (commoninorganizations whereexpatsareworking) TrainingandDevelopment programs Basedonemployees monthlygross salary 6,000 12,000( EUR)per employeeannually(1dayaverage contributionis40 60( EUR) 6,000 15,000( EUR)per employeeannually 0 24,000(0 862EUR) 5,000 40,000(180 1,437EUR)up tosenioritylevel Availability of labour ThelabourforceoftheCzechRepublic,calculatedbythenumber ofpeopleagedbetween15and64yearsold,exceeds7.3million inhabitantswhichisca.70%ofthepopulation.attheendoffebruary 2015,theCzechRepublic sunemploymentratewasreportedat7.5%, accordingtotheczechnationalstatisticaloffice. Whenassessingunemploymentacrossthecountry,thespread betweenregionscanbesignificant,asshownonthemapbelow.the moredevelopedregions,suchasprague,centralbohemiaandthe Pilsenregion,haveunemploymentratesbelow6.5%,whereassomeof thelessdevelopedregions,suchastheustinadlabemregion,have unemploymentratesabove10%. Source: Hays Czech Republic / CNB FX Rate (13/3/15) 1 EUR = CZK MonthlysalariesformanufacturingrolesintheCzechRepublicrange fromlessthaneur510uptoeur900forblue-collarworkers,from EUR900uptoEUR3,200forwhite-collarstaff(specialists)andfrom EUR1,600uptoabove7,000formanagement.Itisworthnotingthat salarylevelscanbehigherwhenseekingspecialistswithnicheskills and/orwhenrelocationisrequired. Average gross monthly salaries in the Czech Regions (in EUR) Theunemploymentmapcanindicatepartsofthecountrywherethere isanaccessiblelabourforce,althoughitisworthconsideringthatthere arecertainsub-regionsinsomeofthemostdevelopedregionsthat alsohaveareadyworkforce.theseregionscanfacilitateinvestment inproximitytoamajorhub,suchasprague,whilstalsoprovidingeasy accessandcheaperemploymentofthelabourforce,particularlywhen hiringblue-collarworkers. Average unemployment rate (%) in the Czech Regions > 1000 > 10% LIBEREC LIBEREC % 5-7.5% ÚSTÍ NAD LABEM HRADEC KRÁLOVÉ PRAGUE KARLOVY VARY PARDUBICE CENTRAL BOHEMIA MORAVIA-SILESIA OLOMOUC ÚSTÍ NAD LABEM HRADEC KRÁLOVÉ PRAGUE KARLOVY VARY PARDUBICE CENTRAL BOHEMIA MORAVIA-SILESIA OLOMOUC PILSEN PILSEN VYSOČINA ZLÍN VYSOČINA ZLÍN SOUTH BOHEMIA SOUTH MORAVIAN SOUTH BOHEMIA SOUTH MORAVIAN Source: Czech National Statistical Offi ce, Q3 2014, (1 EUR = CZK) Source: Czech National Statistical Offi ce, February 2015

8 7 MadeinCzech Investor sguideformanufacturingandlogisticscompanies 2015 Skilled & educated workforce IntheCzechRepublic,thereare77publicandprivateuniversities withatotalof347,300students(81,300intechnicalfields)and88,146 graduates(16,529intechnicalfields).thehighestproportionof studentsare,unsurprisingly,inthelargestcitiesofprague,brnoand Ostrava.Ontheotherhand,ineverysingleregionalcapitalthereisat leastoneuniversity.highlyskilledlabouristhereforedistributedacross regionsandisnotpurelyconcentratedintothelargestcities. Number of Students / Number of Faculties in the Czech Regions 467 / 1 KARLOVY VARY 15,522 / 10 PILSEN Source: MŠMT ,774 / 9 ÚSTÍ NAD LABEM 144,486 / 74 PRAGUE 1,435 / 2 CENTRAL BOHEMIA 17,987 / 12 SOUTH BOHEMIA 7,951 / 6 LIBEREC 12,263 / 6 HRADEC KRÁLOVÉ 3,242 / 2 VYSOČINA 10,328 / 7 PARDUBICE 78,382 / 35 SOUTH MORAVIAN 38,856 / 18 MORAVIA-SILESIA 22,887 / 10 OLOMOUC 11,730 / 9 ZLÍN Theeconomicmaturityofcountriesfocusedonhi-techindustries isdeterminedbythequalityofthetertiaryeducationsystem anditsshareofstudentsintechnicalfields.theczechrepublic hasoneofthelargestproportionsofstudentsstudyingscience, mathematics,computing,engineering,manufacturingandconstruction. Approximately25.3%ofallstudentsareenrolledintheabove mentionedfieldsofstudy. Students at ISCED levels 5 6, as % of all students Finland 33.9 Germany 32.9 Greece 32.7 Portugal 29.2 Romania 28.6 Ireland 28.3 Slovenia 26.7 Spain 26.4 Estonia 26.3 Sweden 25.9 Austria 25.6 CzechRepublic 25.3 Bulgaria 25.1 France 25.1 Italy 24.7 Croatia 24.3 Switzerland 24.3 Slovakia 23.2 UnitedKingdom 23.2 Macedonia 23.0 Poland 22.7 Hungary 22.5 Liechtenstein 22.4 Lithuania 22.1 Latvia 21.1 Malta 20.9 Cyprus 20.8 Japan 19.8 Denmark 19.1 Luxembourg 18.2 Iceland 18.0 UnitedStates 17.8 Norway 17.0 Belgium 16.8 Netherlands 14.7 Source: Eurostat, 2014 Pavel Rufert TPGPowertrainManagement ŠKODA AUTO a.s. ŠKODA AUTO a. s. highly value the personal growth of our employees and provide regular training, as it is vital for our continuous progress. ŠKODA AUTO a. s. has also established effective cooperations with the technical universities in Prague, Brno, Pilsen and Liberec, supporting students on various research and development projects, conducting student trainee programmes, providing consultancy on student theses and sharing expertise. In addition, ŠKODA has founded its own Škoda Auto University as another opportunity for theory to meet practical experience. As ŠKODA contributes signifi cantly to improving regional employment rates, supports sporting and cultural activities, operates employee health programmes and helps enhance the environment and infrastructure in ŠKODA s locations, the Czech local authorities have always been keen to support ŠKODA s production and its growth.

9 Made in Czech Investor s Guide for Manufacturing and Logistics Companies Grants & Incentives Section provided by PwC Legal Introduction Choosing the appropriate investment location relies on a thorough analysis of potential costs and benefits of the sites. One of the key factors influencing the decision on location is often the availability of state aid. Investors considering investment in the Czech Republic are able to benefit from various types of incentives. The amount of incentives provided depends on the location of the investment. The incentives are provided in the form of: (i) cash grants, (ii) tax relief and (iii) discounts on the purchase price of land. Incentive procedures are handled by CzechInvest, the Investment and Business Development Agency, a state agency created by the Ministry of Industry and Trade. CzechInvest acts as an intermediate in the incentive application process and for communications between an applicant and the relevant ministries. Eligible Investments Investment incentives can be provided for the following investments: introduction or expansion of production in certain sectors of the manufacturing industry; construction or expansion of research and development centres; launch or expansion of technology centres; and launch or expansion of business support services centres. Forms of the incentives being provided: corporate income and real estate tax relief; transfer of land for a favourable price; job creation grants; training and retraining grants; and cash grant for the acquisition of long-term tangible and / or intangible assets. Corporate income tax relief An entity can apply for corporate income tax relief for ten years or for ten consecutive tax periods. The first relief period can be drawn when the statutory conditions for the state aid are met but can be no later than within three years from the moment when the investment incentive has been granted. An entity can also apply for tax relief concerning land or real estates situated in the favourable industrial areas. Tax relief is subject to approval of the municipality and may be applied for 5 years at maximum. Transfer of land for a favourable price The nature of this grant represents the possibility for the applicant to acquire land plots owned by the state or municipalities for favourable prices. The incentive is then represented by the difference between the purchase price and the market price of the particular land plots. Job creation and training/re-training grants These grants can only be provided for investments made in certain regions (regions where the unemployment rate is at least 50 % higher than the average rate in the Czech Republic). For every newly created job a cash grant in the amount of CZK 200,000 (approximately EUR 7,200) can be granted. In addition to that, grants of up to 45 % of the amount of expenses spent for training and retraining, depending on the size of the enterprise, can be provided to the applicant. These grants may be changed in the future as the Act on Incentives, amended in 2015, predicts also related regulations to be amended: the grants may be provided also for investments in regions where the unemployment rate is at least 25% and grants for job creations may be raised up to CZK 300,000 (approximately EUR 10,800). Cash grant on capital investment The capital investment grant is provided for a strategic investment (as described further in the text) to launch or expand new manufacturing or technology centres. A cash grant is provided to the amount of 10 % of the eligible costs. This grant could be increased up to 12.5 % of the eligible costs if both manufacturing and technology centres are launched at the same time. Amount of Incentive The amount of incentive is limited by a ceiling the amount stipulated in the implementing regulation depends on the region. Currently, a ceiling varies from 30 % to 40 % of the eligible costs. In February 2014, the European Commission adopted a new map of amounts of state aid applicable for the Czech Republic, decreasing the amount of the incentive to 25 % of eligible costs. Investments in the territory of Prague are not eligible to receive any incentives. Conditions Any entity that makes its investment in the Czech Republic is entitled to apply for an incentive. The applicant can be both Czech or foreign entities; whereas the recipient of the incentive can only be an entity with its registered seat in the Czech Republic. The Investment Incentives Act stipulates basic conditions for granting the incentive, among others: the investment must be implemented in the territory of the Czech Republic; the activity subject matter of the investment, construction or facility must be environmentally friendly; work connected to implementing the investment shall be started only after CzechInvest has approved the investment and incentives.

10 9 Made in Czech Investor s Guide for Manufacturing and Logistics Companies 2015 Conditions for eligibility for incentives in the case of investment in manufacturing industry: General Conditions: the investment in long-term tangible and non-tangible assets shall exceed CZK 100 million of which the minimum of CZK 50 million is intended for investment into new machinery; creation of at least 20 new jobs. Strategic Investment: the investment in long-term tangible and non-tangible assets shall exceed CZK 500 million of which a minimum of CZK 250 million is intended for investment into new machinery and the creation of at least 500 new jobs; Conditions for eligibility for incentives in the case of investment in technological centres: General conditions: the investment in long-term tangible and non-tangible assets shall exceed CZK 10 million of which a minimum of CZK 5 million is intended for investment into new machinery; creation of at least 20 new jobs. Strategic Investment: investment in long-term tangible and non-tangible assets exceeding CZK 200 million of which a minimum of CZK 100 million is intended for investment into new machinery and the creation of at least 100 new jobs; In the case of an investment into a strategic development centre, an additional 20 jobs in the case of software development and 170 jobs in the case of other strategic development centres or, 500 jobs in the case of customers support centres, must be created by the investment as a condition for granting the incentive. The above criteria are reduced to half in case the investment is being made either in a district in which the unemployment rate is at least 50 % higher than the average unemployment rate in the Czech Republic or in the favourable industrial area. The above conditions must be fulfilled by the recipient of the incentive within 3 years from the moment when the incentive has been granted. Application process The application is filed by the applicant with CzechInvest who then elaborates an opinion on the investment and forwards the application to the Ministry of Industry and Trade. The Ministry will assess the intent of the investment in cooperation with other relevant ministries. The process usually takes from five to six months. In case the applicant and recipient are the same entity/person, the process is usually faster and should take from three to four months.

11 4. The The Infrastructure Map Map of of the the Czech Czech Republic Republic Bayreuth 1 GERMANY Sokolov 6 Cheb Nürnberg München Karlovy Vary GERMANY Motorways and express roads Under construction/ Preparatory works Main roads In operation Planned construction 5 Litvínov Chomutov Key Jirkov Plzeň Dresden Berlin Teplice Most Kladno 6 Děčín Ústí nad Labem 7 8 Klatovy Regional cities 8 Strakonice Cities over 50,000 inhabitants Příbram Cities 20,000-50,000 inhabitants Main International Airports Regional International Airports Litoměřice 4 1 Mladá Boleslav Písek 3 Česká Lípa Tábor 11 Liberec 10 PRAHA 1 3 České Budějovice Linz Jablonec nad Nisou 35 Jičín Kolín Kutná Hora Trutnov Pardubice Havlíčkův Brod Jihlava Jidřichův Hradec 11 Hradec Králové 35 Wroclaw Chrudim 1 Třebíč AUSTRIA Náchod Žďár nad Sázavou Znojmo Svitavy 52 POLAND 43 BRNO 2 Šumperk 35 Olomouc Opava Prostějov 55 Přerov 46 1 Blansko Vyškov Břeclav Kroměříž Hodonín Bratislava Wien Source: JLL based on ŘSD, 2015 Krnov 55 OSTRAVA Zlín 56 1 Kopřivnice Nový Jičín 49 Uherské Hradiště Valašské Meziříčí Warszawa Bohumín Orlová Vsetín Havířov Žilina 48 Frýdek- -Místek SLOVAKIA Transport Infrastructure Motorways and Express Roads Existing network Under Construction Major roads planned till 2018 Czech Republic - At a Glance Economy Czech Republic - Facts and Figures Population (a) 10,538,275 Territory km2 (a) 78,866 GDP Volume in milllion USD (b) 212,688 GDP per Capita in USD (b) 19,552 Consumer Price Index (b) 0.4% Unemployment Rate as of February 2015 (a) 7.5% Government Gross Debt (as % of GDP) (b) 41.3% 10 Year Government Bonds (b) 1.6% Exchange Rate EUR/CZK, period average (b) 27.5 Exchange Rate USD/CZK, period average (b) 20.8 Source: (a) Czech Statistical Office, (b) Oxford Economics, 2015 Karviná Český Těšín Třinec Katowice Largest cities in the Czech Republic City Population Prague 1,246,780 Brno 378,327 Ostrava 297,421 Pilsen 167,472 Liberec 102,113 Olomouc 99,471 Ústí nad Labem 93,747 České Budějovice 93,467 Hradec Králové 93,035 Pardubice 89,467 Source: Czech Statistical Office, ,234 km 31 km D1 Motorway (Prague - Brno - Ostrava) - Completion of the section Přerov - Lipník D3 Motorway (Prague - Linz) - Completion of the section Veselí nad Lužnicí - Úsilné D8 Motoway (Prague - Dresden) - Completion of the final section Lovosice - Řehlovice D11 Motorway (Prague - Wroclaw) - Completion of the section Osičky - Hradec Králové R4 Express Road (Prague - Písek) - Completion of the section Skalka - křižovatka II/118 (Háje) R6 Express Road (Prague - Bamberg) - Completion of the section Lubenec - Bošov R7 Express Road (Prague - Chomutov) - Completion of the section Postoloprty - Bítozeves R35 Express Road (Hradec Králové - Olomouc) - Completion of the section Opatovice nad Labem R49 Express Road (Hulín - Slovak border) - Completion of the section Hulín - Fryšták Airport Network 10 International Airports

12 Made in Czech Investor s Guide for Manufacturing and Logistics Companies Key Manufacturing Sectors in the Czech Republic Successful then, successful now The Czech Republic is one of the most prosperous economies of the Central and Eastern European region. It benefits mainly from its unique location in the heart of Europe representing a junction of trans European transport corridors, as well as from a well-educated population and a well-developed infrastructure. The country also has the most developed industrialized economy in Central and Eastern Europe. Its strong industrial tradition dates back to the 19 th century when Czech countries represented the industrial engine of the Austro-Hungarian Empire. During the interwar times, the Czechoslovakian Republic steadily ranked among the top ten most developed countries in the world. The manufacturing industry is one of the most important parts of the national economy, representing a substantial share of gross domestic product. The traditional industries are heavy and general machine-building, iron and steel production, metalworks, chemical production, electronics, transportation equipment, plastics, textiles and pharmaceuticals. The long term strongest sector is automotive production, which strengthens its position every year. On the other hand, we are recording a gradual decline of the mining sector. In the European, as well as the global rankings of the most industrialised countries, the Czech Republic always features among the top positions. Manufacturing, value added 2012 (worldwide ranking; % of GDP; trend 2012/2009) 1 Thailand 34% 2 Korea, Rep. 31% 3 Belarus 25% 4 Czech Republic 25% 5 Malaysia 24% 9 Ireland 23% 10 Germany 22% 12 Slovakia 21% 17 Switzerland 19% 19 Austria 18% 25 Poland 18% 30 Croatia 16% 77 United Kingdom 10% 78 France 10% Source: The World Bank, 2014 Strong FDI influence In the last fifteen years, the Czech economy has been significantly influenced by a strong inflow of foreign direct investment. The period between 2003 and 2007 saw the strongest inflow of FDI, as the incoming corporations and investors were significantly increasing the production capacity of country. Over the past few years, we have recorded more reinvestment of capital and expansions of existing investments rather than the inflow of new investors. A substantial number of corporations that set-up their production facilities in the Czech Republic several years ago, are now expanding their operations, mainly into Research and Development centres, IT centres, Central European or European distribution hubs, or even European headquarters. The Czech economy is thus gradually moving from the production and assembly part of the industry, to higher added value sectors. Despite the relatively small size of the country, thanks to existing know how and technical excellence, sustaining cost effectiveness, excellent transport infrastructure and strategic location, it is still one of the major destinations of foreign investment in Europe. Foreign direct investment, net inflows 2012 (BoP, current bil. US$, trend 2012/2011) 1 China United States Brazil United Kingdom Russian Federation France Germany Czech Republic Hungary Poland Romania Slovak Republic 1.5 Source: The World Bank, 2014 Growing sectors in the Czech Republic The largest share in the Czech national production accounts is obviously covered by the services and trade & wholesale sectors, with a share of 61% of Gross Value Added in As depicted on the following graph, services and trade are followed by manufacturing (27% share), construction, utilities, agriculture and extraction.

13 13 Made in Czech Investor s Guide for Manufacturing and Logistics Companies 2015 Czech GVA Structure on National Accounts in 2012 Manufacturing 24% Other dominating sectors, based on value added, are metal processing (3.8% of GVA), electronics and electrical equipment (2.5%), FMCG (2.4%) and general machinery (3.4%). Agriculture 2% Utilities 5% Services 51% Based on economic forecasts, the value added on manufacturing in the Czech Republic is forecast to grow by more than 46% in the coming decade, leaving the estimated growth of the services sector (28% by 2023) far behind. Czech Gross Value Added, real, LCU (billions CZK: 2010 prices) Construction 6% Source: JLL, CZSO, 2014 The manufacturing sectors have grown in the past two decades by 260%. The fastest growing industrial subsector was the manufacturing of plastics and rubbers with a 1,261% growth of gross value added between 1993 and The plastics and rubber manufacturers key customers recruit mainly from the automotive, electronics and packaging industries. The next biggest industry jumpers were mainly the automotive and other transportation manufacturing industries with an 851% increase and the electronics & electrical equipment industries with a 737% increase. Czech GVA Structure in Manufacturing Industries Automotive and other transport Source: JLL, CZSO, 2014 Trade & Wholesale 11% Metals Electronics and electrical equipment FMCG Extraction 1% Machinery The production of automotive and other transportation vehicles with its 4.9% share on total GVA, is not only the largest manufacturing subsector, but also the sector with largest share growth on total GVA with an approximate growth of 3.2 percentage points in the past 20 years. Rubber and plastics Pharmaceuticals and medical other Non-mettalic mineral products Wood and paper Textile Fuels Agriculture and forestry Industry incl. Manufacturing Source: Oxford Economics, 2014 Manufacturing Services From the various different manufacturing sectors, five (FMCG, domestic appliances & electronics, automotive, medical & pharma and general machinery) are outlined in more detail in the following sections. Although we have selected these sectors as an example, great potential also exists in many other sectors. Mark Kelleher Vice-President, European Operations Smiths Medical Smiths Medical, part of Smiths Group, is a leading global provider of medical devices and equipment for the healthcare industry. Worldwide the company employs over 7,500 people, with manufacturing concentrated in the US, UK, Italy, Mexico and from 2013, the Czech Republic. Smiths Medical chose the Czech Republic to expand its operational base in Europe to serve our European customers and EU markets. The key benefits included the country s stable economic base, its strategic location within Central Europe, the availability of highly skilled labour and the over cost effectiveness. After considering other locations in CEE and the Czech Republic, Smiths Medical chose to locate its CEE production base in Hranice, in northern Moravia, near the University cities of Olomouc, Ostrava and Brno. The location benefits from a combination of lower total operating costs, direct access to the European motorway networks and close proximity to skilled labour and a regional supply base.

14 Made in Czech Investor s Guide for Manufacturing and Logistics Companies Automotive sector The Czech Republic is currently the 5 th biggest car producer in Europe and the 13 th largest worldwide. In 2013, the number of passenger cars produced in the country reached almost 1.13 million units, which places the country as the second largest global car manufacturer (after Slovakia) in production per capita. In 2012, production per 1,000 inhabitants reached 111 car units. During 2013, the number of cars produced per 1,000 inhabitants decreased to 107 units; however, the latest data for H (+10.3%) indicates another strong year for the Czech automotive sector. With such statistics, it is no wonder that automotive and automotive parts productions currently represent the most dominant Czech manufacturing industry. The automotive sector in the Czech Republic includes the production of a wide variety of vehicles ranging from passenger cars (Škoda Auto Mladá Boleslav, TPCA Kolín, Hyundai Nošovice.), to trucks (Tatra Kopřivnice), buses (Iveco (ex Karosa) Vysoké Mýto, SOR Libchavy), motorcycles (Jawa Týnec nad Sázavou), trailers (Schwarzmuller Žebrák, PANAV Senice na Hané, Agados Velké Meziříčí) and sport roadsters (Kaipan Smržovka). As one of the most important industries in the Czech Republic, the sector boasts the highest inflow of FDI and currently employs approximately 120,000 people across the country in car plants or related services. In H1 2014, the Czech Republic accounted for over 7% of the total European car production market. In the past few years, the initial inflow of mainly large car producers has been accompanied by a significant inflow of automotive suppliers and research and development centres tied to these manufacturers. The strong automotive background is also attracting more and more distribution centres, usually for the central European or, the entire European market area. The main drivers behind other leading automotive manufacturers moving their production to the country include: the tradition of car production and access to a skilled labour-force, further supported by a large number of technical university graduates, the availability of relatively cheaper materials and the central location of the country which gives proximity to both growth and core markets. Major Car Producers The tradition of car production in the Czech Republic is tied to Škoda Auto, one of the most famous and most valued Czech brands worldwide. Škoda Auto, a car manufacturer with over 115 years of tradition in motor vehicle production is the largest Czech exporter with nearly 600,000 cars produced per annum. Moreover, it is the only car manufacturer in the country who is involved not only in production, but also in actual car development. The company is based in Mladá Boleslav, north-east of Prague, with production situated in three locations (Mladá Boleslav, Kvasiny and Vrchlabí) where nine different models, including one of the most popular brands globally, within its category, the Škoda Octavia, are being produced. In 1991, Škoda Auto became part of leading car producer Volkswagen Group. Its R&D centre in Mladá Boleslav, which was further extended by a new Engine centre this September, is the fourth largest of the entire group in the world. Pavel Rufert TPG Powertrain Management ŠKODA AUTO a. s. ŠKODA AUTO a. s. follows the tradition, success and expertise of more than 100 years of uninterrupted car manufacturing, technical development and customer after-sales care. In the Czech Republic alone, ŠKODA AUTO a. s. has been operational in three production plants: Mladá Boleslav, Vrchlabí and Kvasiny, employing a total of 24,500 employees (in 2013). It was mainly the company s great potential, successful car models, skilled labour and other advantages of automotive production in the Czech Republic that sparked VW s interest to connect the ŠKODA brand with the VW Group in The high quality and reliability of ŠKODA products has been the result of the introduction of new technologies, building on the expertise of skilled professionals and cooperating on common projects and platforms. VW Group s confidence in ŠKODA s technical know-how was proved by assigning ŠKODA with the full development of a new series of 3-cylinder 1.2l MPI engines for three VW Group brands, starting in Between 1991 and 2014, a total of 280 billion Czech crowns have been invested by ŠKODA AUTO a.s. in the Czech Republic. For example, the latest R&D activities have been endorsed by the investment into a new Engine Centre in Mladá Boleslav, where new development projects are integrated into the Group s strategic programmes. The stable economic environment in the Czech Republic, cost-efficient production and human resources have not only been beneficial for ŠKODA but also for our suppliers who have been opening new plants, creating local automotive clusters close to our factories. TPCA (Toyota Peugeot Citroen Automobile) started production in their brand new manufacturing plant in Kolín, east of Prague, in The total construction cost, which amounted to 20 billion CZK, represented the largest greenfield investment in CEE at the time. The factory, which is focused on the manufacturing of small city cars (Toyota Aygo, Peugeot 107 and the Citroen C1) currently employs 3,200 people and its annual production reaches 300,000 vehicles. To date, the largest foreign direct investment in the history of the country is represented by the new production plant of leading Korean car producer Hyundai, who set up in Nošovice in the Moravia-Silesia region, close to the Slovak borders (another Korean car producer, KIA, is situated in Žilina approximately 80 km from Nošovice). It is the first manufacturing plant of Hyundai in Europe and the serial production started there in November 2008, after only 19 months of construction. The annual production of five car models, especially designed for the European market, totals 300,000. This major investment of the Korean producer initiated a huge inflow of OEM suppliers, first closely tied to Hyundai and KIA, but later reaching other producers within and also beyond the Czech Republic.

15 15 Made in Czech Investor s Guide for Manufacturing and Logistics Companies 2015 OEM parts suppliers It might sound like a bold statement but the spectrum of OEM parts production in the country indicates that almost every single part of a car is being produced in the Czech Republic. Out of 50 leading European OEM parts suppliers 36 are producing in the country. For example, TPCA uses 80% of spare parts for its car production in their plant in Kolin from Czech based producers. The manufacturers include both major multinationals who entered the country in the past two decades as well as traditional Czech companies. Out of the Top 100 global OEM parts suppliers, there are 69 companies based and producing in the Czech Republic. The first and major inflow of automotive suppliers was originally connected to Škoda production in Mladá Boleslav, in the Central Bohemian region. The area around Mladá Boleslav and nearby Liberec region have attracted a number of leading companies from the sector, TRW in Řepov and Stará Boleslav, Mahle Behr in Mnichovo Hradiště, Continental in Brandýs nad Labem, Faurecia, Magna, Johnson Controls in Mladá Boleslav and FIAMM, an Italian producer who took over local company, Akuma. The establishment of the TPCA plant in Kolín, reinforced the interest of international OEM parts producers to enter the Czech market. The third major impulse represented the opening of the Hyundai production site in Nošovice. The strongest and most developed OEM parts manufacturing sector in the Czech Republic includes tyres, rubber and plastics production, which draws upon the long history of the Czech and Czechoslovakian companies active in this field, such as: Mitas, Gumárny Zubří and Barum, now part of the Continental group. The newest addition to this subsector is Korean tyre producer Nexen who will be investing 1 billion USD into a new plant in Žatec. Interior and seating producers, including: Faurecia, Hyundai Mobis and Johnson Controls, represent another strong group of manufacturers supplying parts not only to Czech automotive producers but, also to other manufacturers outside of the country. One recent, large investment, included Johnson Controls who decided to move its production of car seating from Germany to CTPark Bor in the Pilsen region. The plant will supply car seating to BMW factories in Germany and to domestic producers as well. Automotive electronics and brake systems production is another thriving part of OEM production in the country. Brembo, an Italian supplier of brakes systems to Porsche, BMW, Mercedes and Land Rover opened its 25,000 m 2 plant in Ostrava, Northern Bohemia in This year, they extended their premises by another 30%. Lighting systems and HVAC are also represented by a large number of producers including strong players like Visteon Autopal and Mahle Behr. One of the largest, recent investments into the automotive sector included Hyundai Mobis who, in mid-2014, announced its decision to invest 120 million USD into a new factory for the production of lighting systems in Mošnov, in the vicinity of the Hyundai car production site in Northern Moravia. The booming automotive sector also represented an opportunity for once renowned but, recently subdued sectors; such as textiles and glass production. AGC Automotive Czech, a successor of a traditional glass producer from Northern Bohemia, Sklo Union in Teplice, is nowadays the largest producer of flat glass in CEE for the construction and automotive sectors. Fezko Strakonice, once a world recognised producer of hats, is now a part of Johnson Controls and a supplier of textiles for car interiors to leading car producers including Škoda Auto, Opel, VW and Ford. Top 50 European OEM parts suppliers, based on 2012 European OEM parts sales (Manufacturing in the Czech Republic marked in red) Robert Bosch Continental Faurecia Magna International ZF Friedrichshafen Johnson Controls BASF Valeo Delphi Automotive TRW Automotive Lear Gestamp Automocion Magneti Marelli Benteler Automobiltechnik HELLA KGaA Hueck & Co. Denso BorgWarner Brose Fahrzeugteile Schaeffler Aisin Seiki Mahle Behr Autoliv Plastic Omnium Draeximaier Group Eberspaecher Holding GKN PLC Hyundai Mobis Leoni Visteon Federal-Mogul Grupo Antolin IAC Group Honeywell Tenneco Dana Holding Goodyear Tire & Rubber KSPG Webasto WABCO Takata JTEKT Cummins Leopold Kostal Alpine Electronics NTN Corp. TI Automotive TrelleborgVibracoustic Bayer MaterialScience Georg Fischer Automotive Source: JLL based on Supplement to Automotive News, June 2013

16 Selection of Manufacturers Automotive Sector Central Bohemian Region Bakov nad Jizerou Faurecia Exhaust Systems Bělá pod Bezdězem Tiberina Automotive Bělá Benátky nad Jizerou LINDE + WEIMANN CZ UACJ Extrusion Czech Brandýs nad Labem Continental Automotive Czech Republic Březnice Zbrojovka Březnice Čenkov KOSTAL Kontakt Systeme Hořovice KOSTAL CR Saint-Gobain Sekurit ČR Kladno Keihin Thermal Technology Czech (Showa Aluminium Czech) Kněžmost Kautex Textron Bohemia Kolín Lear Corporation Czech Republic MC Syncro Kolín TPCA (Toyota Peugeot Citroen Automobile) Komárov BUZULUK Lysá nad Labem LINDE + WEIMANN CZ Mělník MTX Mladá Boleslav Autoliv B.V. & Co. Faurecia Interior Systems Grupo Antolin Bohemia HP-Pelzer Magna Seating Johnson Controls Recticel Interiors CZ SAS Autosystemtechnik Škoda Auto (Volkswagen Group) TI Group Automotive Systems Yapp Czech Automotive Systems SAI Automotive Bohemia Tower Automotive Czech Trelleborg Automotive Czech Republic Yapp Czech Automotive Systems Pilsen Region Bor u Tachova Autoneum CZ Eissmann Automotive Česká Republika Ideal Automotive Rieter Automotive CZ Technické pružiny Scherdel Domažlice BEHR Thermot-tronik Czech Holýšov Evobus Bohemia Dýšina Gerresheimer Wilden Czech Chotěšov MD Elektronik Janovice nad Úhlavou OLHO-Technik Czech Nýřany Faurecia Automotive Czech Republic Ostrov u Stříbra Ideal Automotive Lear Corporation Czech Republic Neumatic CZ Mnichovo Hradiště Hella - Mahle Behr - Plastic Omnium (HBPO Czech) Mahle Behr Mnichovo Hradiště Nymburk Magna Exteriors & Interiors (Bohemia) Příbram AIR Čenkov DUVE ČR KARSIT HOLDING Rakovník BRANO GROUP Eberspacher Rakovník Valeo Autoklimatizace Rudná L&L Products Řepov TRW Carr Slaný Mitsubishi Electric Automotive Czech Stará Boleslav TRW Carr Týnec nad Sázavou JAWA Unhošť Furukawa Electric Autoparts Central Europe T.RAD Czech Úvaly u Prahy Essa Czech Zdice KOSTAL CR Zruč nad Sázavou Asmo Czech TRW Autoelektronika Žebrák Mubea Muramoto Manufacturing Europe Valeo Climate Contro Karlovy Vary Region Hranice u Aše Grupo Antolin-CML Nejdek Metalis Nejdek Witte Nejdek Plzeň Alfmieier CZ Boshoku Automotive Czech DAIHO Fuji Koyo Czech HP-Pelzer JTEKT Automotive Czech Plzen MTX Specialty Coating Systems Viza Auto CZ Yazaki Wiring Technologies Czech Přeštice International Automotive Components Group (IAC) Tachov Grammer CZ Johnson Controls South Bohemian Region Ústí nad Labem Region Chabařovice Magna Seating Chomutov Eaton Industries Magna Seating Chomutov Jirkov Hillside Plastics Kadaň Donaldson Industrial CR Oiles Czech Manufacturing Roudnice nad Labem Thermal Products Czech Republic Johnson Controls Automobilové součástky Klášterec nad Ohří Donaldson Czech Republic Rumburk Toyoda Gosei Czech Benteler Automotive Rumburk BOS Automotive Products CZ Krupka Auto-Kabel Krupka Litvínov INNO-COMP Bohemia Prague Region Lovosice Aoyama Automotive Fasteners Czech Fukoku Czech KOS WIRE EUROPE Tokai Rika (TRCZ) Most AFSI Europe Grammer CZ Nemak Czech Republic Recticel Automotive (RAI Most) Vysočina Region Byňov Teplice AGC Automotive Czech Snoeks Automotive CZ Ústí nad Labem ArcelorMittal - Stainless Automotive- -Tubes Czech Republic KS Kolbenschmidt Czech Republic Žatec Grammer CZ Gestamp Louny HITACHI Automotive Systems Czech HP-Pelzer JC Interiors Czechia Koito Czech Neturen Nexen Tire Liberec Region South Moravian Region Česká Lípa EKOBUS Fehrer Bohemia Grammer CZ Johnson Controls Autobaterie Johnson Controls Automobilové součástky Dolní Chrastava Grupo Antolin Bohemia Frýdlant Thermolast TRW Automotive Czech Hodkovice nad Mohelkou Tenneco Monroe Czechia Hrádek nad Nisou KSM Castings (CITIC Dicastal) Chrastava Benteler ČR Jablonec nad Nisou A.Raymond Jablonec Benteler ČR Megatech Industries Jablonec TI Group Automotive Systems TRW Automotive Czech Turnov Rumburk Frýdlant Jilemnice Grupo Antolin Turnov BRANO GROUP KAMAX Louny Hrádek nad Nisou Stráž nad Nisou Neumatic CZ Aisan Bitron Czech Chrastava Smržovka CIE Automotive CZ Nový Bor Liberec Zákupy Fujikoki Czech Stráž pod Ralskem Chabařovice Ústí nad Labem Adršpach International Automotive NACHI Czech Zákupy Jablonec nad Nisou Vrchlabí Components Group (IAC) Krupka Česká Lípa Turnov Trutnov Litvínov Teplice Velké Mnichovo Hradiště Jilemnice Březno Dolní Kalná Červený Kostelec Jirkov Bělá pod Kněžmost Lovosice Jičín Bezdězem Bakov Chomutov Most Roudnice nad Jizerou Jaroměř Klášterec nad Ohří Louny Mladá Boleslav Řepov Libáň České Meziříčí Kadaň nad Labem Kralupy Mělník Benátky nad Jizerou Nejdek Žatec nad Vltavou Brandýs Kvasiny Hanušovice nad Labem Lysá nad Labem Rychnov Kostelec nad Orlicí nad Kněžnou Slaný Nymburk Krnov Hranice u Aše Podbořany Kladno Přelouč Pardubice Štíty Unhošť Choceň Libchavy Úvaly Rychvald Karviná Rakovník Rudná PRAHA Kolín Moravany Lanškroun Zábřeh Hradec nad Moravicí Žebrák Vysoké Mýto Ostrava Český Těšín Zdice Česká Třebová Mohelnice Uničov Frýdek-Místek Dýšina Hořovice Týnec nad Sázavou Třemošnice Hlinsko Svitavy Kopřivnice Třinec Komárov Nový Jičín Litovel Nošovice Tachov Ostrov Moravská Třebová u Stříbra Plzeň Hranice Frenštát pod Radhoštěm Zruč nad Sázavou Jevíčko Senice Nýřany Havlíčkův Brod na Hané Příbram Olomouc Valašské Meziříčí Bor u Tachova Chotěšov Jiřice Lipník nad Holýšov Přeštice Přerov Rožnov pod Radhoštěm Mírovice Humpolec Žďár Bečvou Zubří nad Sázavou Vsetín Domažlice Tábor Blansko Ivanovice na Hané Kroměříž Klatovy Blatná Jihlava Batelov Velké Meziříčí Otrokovice Zlín Písek Soběslav Vyškov Brno Janovice nad Úhlavou Okříšky Uherské Hradiště Bojkovice Strakonice Oslavany Bzenec Uherský Brod Jemnice Prachatice Dačice Hluk Hodonín Vimperk České Mikulov Břeclav Budějovice České Velenice Praha PMP PAL Satrema TRW Volant Horní Počernice Blatná DURA Automotive CZ Tesla Blatná České Budějovice MOTOR JIKOV Robert Bosch České Velenice Magna Cartech Dačice TRW - DAS Kamenice nad Lipou Edscha Automotive Kamenice Písek Aisin Europe Manufacturing Czech Faurecia Automotive Czech Republic Faurecia Components s.n.o.p. cz Heyco Werk ČR Prachatice InTiCa Systems Soběslav BANES MOTOR JIKOV Strakonice ČZ DURA Automotive CZ Ideal Automotive Johnson Controls Fabrics Strakonice Mahle Filter Systems Metal Progress Strakonice Tábor BRISK Tábor Greiner Perfoam Vimperk SAK Batelov Motorpal Havlíčkův Brod Futaba Czech Humpolec Valeo Compressor Europe Jemnice Motorpal Jihlava Automotive Lighting Jihlava Bosch Diesel Motorpal Kosyka Tesla Jihlava Jiřice Connaught Electronics CZ Okříšky Fraenkische CZ Mann Hummel CZ Velké Meziříčí Agados Construct Czech Motorpal Žďár nad Sázavou Cooper-Standard Automotive Česká republika TOKOZ Blansko BLATA Brno Daido Metal Czech IFE-CR IGE-CZ Mergon Czech Břeclav Gumotex LINDE + WEIMANN CZ Bzenec AVX Czech Republic Hodonín International Automotive Components Group (IAC) Ivanovice na Hané Fischer Automotive Systems Mikulov Gebauer A Griller Kabeltechnik Nichias Czech Oslavany Metaldyne Vyškov SMC Industrial Automation Lear Corporation Czech Republic Zlín Region Bojkovice Zeveta Bojkovice Hluk Halla Visteon-Autopal Czech Republic Kroměříž Magneton Plastika Otrokovice Continental Barum MITAS Tomatex Otrokovice Rožnov pod Radhoštěm Brose CZ Robert Bosch ZPV Uherské Hradiště Schlote-Automotive Czech Liberec CleverGlass DENSO Air Systems Czech Fehrer Bohemia Grupo Antolin Bohemia Inteva Products Czech Republic Knorr Bremse Systémy pro užitková vozidla ČR LIPLASTEC Magna Exteriors & Interiors (Bohemia) Matador Automotive ČR Sarnamotive Bohemia TI Group Automotive Systems Nový Bor Brano Group Smržovka Kaipan Stráž nad Nisou Benteler ČR PEKM Kabeltechnik Stráž pod Ralskem Johnson Controls Automobilové součástky Uherský Brod Mann Hummel Innenraumfilter CZ Teknia Uherský Brod Valašské Meziříčí Antolín-CIE Czech Republic CIE Automotive CZ PWO Unitools CZ Vsetín Indet Safety Systems Nippon Kayaku CZ Zlín D PLAST - EFTEC Zubří BRANO GROUP Gumárny Zubří Hradec Králové Region Adršpach Continental Automotive Czech Republic Červený Kostelec Saar Gummi Czech Dolní Kalná Takata - Petri Parts Jaroměř KARSIT HOLDING Jičín Continental Automotive Czech Republic RONAL CR Tucker Kostelec nad Orlicí Federal-Mogul Friction Products Kvasiny Škoda Auto Libáň Magna Exteriors & Interiors (Bohemia) Nový Jičín Varroc Lighting Systems Rychnov nad Kněžnou Assa Abloy Czech & Slovakia Johnson Controls Automobilové součástky Magna Seating Trutnov Continental Automotive Czech Republic Vrchlabí Škoda Auto (Volkswagen Group) Olomouc Region Hanušovice ZKL Hranice AVL Čechy Henniges Automotive Lipník nad Bečvou MetalPlast Lipník nad Bečvou Litovel BRANO GROUP (Deltacol CZ) Mohelnice Hella Autotechnik Nova Olomouc Koyo Bearings Česká republika OTSUKA-BRANO Moravia Silesia Region Český Těšín Donghee Czech Pyeong Hwa Automotive Czech Frenštát pod Radhoštem Continental Automotive Czech Republic Siemens Automobilové Systémy Frýdek-Místek Hanwha L&C Czech Frýdlant nad Ostravicí BATZ Czech Hradec nad Moravicí BRANO GROUP Karviná Sejong Czech Stant Manufacturing Kopřivnice Brose CZ DURA Automotive Systems CZ Erich Jaeger Rieger Automotive International Rochling Automotive Kopřivnice Tawesco Krnov Erdrich Umformtechnik Nošovice Hyundai Motor Manufacturing Czech Huyndai Dymos Hyundai Mobis Czech Pardubice Region Brandýs nad Labem C.I.E.B. 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