Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. unlocking the opportunities in the global value chain: requirements & incentives Botswana Investment Conference 23-26 November, 2016 Botswana Investment & Trade Center CSABA KILIÁN – CEO ASSOCIATION OF THE HUNGARIAN AUTOMOTIVE INDUSTRY (MAGE) Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Automotive industry in Central Europe Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. Automotive industry in Central Europe Association of the Hungarian Automotive Industry (MAGE) Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Budapest., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

association of the hungarian automotive industry – (MAGE) Magyar Gépjárműipari Egyesület MAGE association of the hungarian automotive industry – (MAGE) Mission of the Association: Effective representation in legal, economic and social issues Improve competitiveness Promote national suppliers Support strong and productive R&D Foster further automotive investments Enhancing international partnership   MAGE members’ contribution: to the total automotive export: 93% to the total output of the Hungarian Automotive Industry:80% to the total automotive investments: 90% to the total automotive R&D investments: 90% MAGE members: invested in 2015: € 2,1 Billion employed more than: 80 000 people Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry H-1119 Budapest, Than Károly utca 3-5., T./F: 36 1 371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

CENTRAL-EASTERN EUROPEAN VEHICLE MARKET Magyar Gépjárműipari Egyesület MAGE CENTRAL-EASTERN EUROPEAN VEHICLE MARKET 2015.09. 24. CEE Market size: 16 countries – (Albania,Bosnia-H.,Bulgaria, Croatia,Czech R., Estonia, Hungary, Latvia, Lithunia, Macedonia, Montenegro,Poland,Romania,Serbia,Slovenia,Slovakia - 11 EU members ) Population: 121 mill.2 Significant volumes of cars are produced: the Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia. Local production value:within a global perspective, only 4% of cars were produced in CEE countries. In 2014, 3.6 million vehicles were produced in Eastern Europe, equating to 21% of total EU production. There are, in total, 33 car plants in these countries, manufacturing engines, personal cars, commercial vehicles and buses As an employment sector, it provides 850,000 jobs - a 2.5 % share of total employment. Fast growing share of road vehicle exports in total exports of CEE countries: Slovakia: 25%; Czech R: 21 %, Hungary:20%, Slovenia:15%, Romania: 14%; Poland: 10%   Automotive assembly and engine production plants in CEE countries   Types produced Country Manufacturers Brands Engine PC LCV HV BUS N.of plants Czech R. Tedom, PPCA,Tatra, VW,Sor,Hyundai, Iveco Toyota,Peugeot, Citroen,Tatra,Skoda, Sor,Hyundai,Iveco x 8 Hungary Suzuki,VW,Daimler Benz, GM Suzuki, Audi, Mercedes Benz, Opel 4 Poland Fiat, Solaris,GM,Toyota, VW,Volvo,Jelcz Fiat,Lancia,Alfa Romeo, Solaris,Opel,MAN,VW, Scania,Ford, Volvo,Jelz 14 Romania Roman, Renault, Ford Dacia,Ford, Roman 3 Slovenia Renault 1 Slovakia VW, PSA, Hyuandai VW, Audi,Porsche,Skoda, Seat, Peugeot,Citroen, Kia

automotive industry Leading OEMs have already chosen us Magyar Suzuki (Suzuki Motors)  Location: Esztergom   Foundation: 1991 Products: Swift, Splash, SX4 S-Cross, Vitara Car production: 300,000 Number of employees: 3,100 Audi Hungaria Motor (VW) Location: Győr   Foundation: 1993 Products: TT Coupe/Roadster, A3 Sedan/Cabriolet Car production: 125,000 Engine production: 2,000,000 Number of employees: 13,000 General Motors Powertrain (GM) Location: Szentgotthárd   Foundation: 1991 Products: engines, cylinder heads, gearboxes Engine production: 1,000,000 Number of employees: 1,400 Mercedes-Benz Manufacturing ( Daimler) Location: Kecskemét   Foundation: 2008 Products: B Class, CLA, CLA SB Car production: 150,000 Number of employees: 4,300

THE fDi REPORT 2016 global greenfield investment trends Magyar Gépjárműipari Egyesület MAGE 2015.09. 24.  THE fDi REPORT 2016 global greenfield investment trends Global overview key trends in 2015 include: - Greenfield FDI increasing by nearly 9% to $713bn, alongside an increase in job creation by 1% to 1.89 million. - India was the highest ranked country by capital investment in 2015, with $63bn-worth of FDI projects announced. - Western Europe was the leading source-region for FDI in 2015. - The number of FDI projects into Africa in 2015 increased by 6%. - India replaced China as the top destination for FDI.   Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. key trends in 2015: - FDI into the Middle East and Africa by project numbers increased by 0.6% in 2015 - Africa recorded 156 more FDI projects than the Middle East in 2015, a figure that has widened by 98% compared with 2014. - It also continued to dominate job creation with 95,387 more jobs created than in the Middle East - South Africa was the top African destination for inward FDI by project numbers, continuing a long-term trend Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. key trends in 2015: - Coal, oil and natural gas has reclaimed its top spot for FDI with $113.5bn. - Renewable energy is on the rise again, with project numbers increasing 50% and capital investment reaching $76bn. -The top three sectors by project numbers – software and IT services, business services and financial services – account for more than one-third (35%) of all FDI globally by project numbers. - Real estate continues to recover.   - Within the top five sectors by project numbers, business services was the only sector to witness growth, with 1413 projects. Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. drivers of global manufacturing competitiveness Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

percentage of employers facing difficulties in filling jobs, 2015 Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. percentage of employers facing difficulties in filling jobs, 2015 Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

manufacturing labor costs (US dollars) per hour Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. manufacturing labor costs (US dollars) per hour Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

what are the key trends until 2025? Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. what are the key trends until 2025? Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. labour productivity GDP per person engaged (in thousands) constant 2011 international dollars at ppp, 2005-2015 Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. how to track crossborder greenfield investment across all countries and sectors worldwide? Identify target investors for your key markets Profile companies within your target sectors Receive early warning indicators that a company may be expanding internationally Understand the key FDI trends in markets and sectors Develop your investment promotion strategy using real time data. Make smart decisions on crossborder investment! Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

top 100 automotive supplier companies 1. Continental (D, country)- 34 506 (Million €) - 3,5% (differ.as to 2013) - 3345 (Million € profit) - 9,7% (revenue %) 2. Bosch (D) - 33 300 - 8,9% - n.a. - n.a.  3. Magna (CA)- 30 142 - 19,1% - 2165 - 7,2%  4. Denso (JP) - 29 084 - 4,6% - 2354 - 8,1%  5. Hyundai Mobis (KR) - 27 139 - 16,7% - 2303 - 8,5%  6. Bridgestone / Firestone (JP) - 25 203 - 2,4% - 3279 - 13,0%  7. Johnson Controls (USA) - 23 251 - 18,0% - 1619 - 7,0%  8. Aisin (JP) - 19 974 - 5,6% - 1077 - 5,4%  9. Michelin (F) - 19 553 - -3,4% - 2170 - 11,1% 10. Faurecia (F) - 18 829 - 4,4% - 673 - 3,6%  11. ZF Friedrichshafen (D) - 16 192 - 9,3% - n.a. - n.a.  12. Goodyear (USA) - 14 921 - 5,1% - 1408 - 9,4%  13. Lear (USA) - 14 583 - 23,7% - 863 - 5,9%  14. TRW (USA) - 14 428 - 13,9% - 1148 - 8,0%  15. Delphi (USA) - 14 003 - 17,1% - 1519 - 10,9%  16. Valeo (F) - 12 725 - 9,1% - 862 - 6,8% 17. Cummins (USA) - 12 675 - 22,8% - 1437 - 11,3%  18. Mahle (D) - 9980 - 0,3% - n.a. - n.a.  19. Sumitomo Electric (JP) - 9978 - 13,2% - 579 - 5,8%  20. ThyssenKrupp Automotive (D) - 9720 - 5,3% - n.a. - n.a.  21. Yazaki (JP) - 9242 - 13,3% - n.a. - n.a.  22. Weichai Power (CN, Chineese) - 9120 - 31,6% - 693 - 7,6%  23. Schaeffler (D) - 8889 - 8,9% - 1087 - 12,2%  24. Toyota Boshoku (JP) - 8778 - 9,7% - 204 - 2,3%  25. Panasonic (Matsushita Electric) (JP) - 8159 - 10,1% - 490 - 6,0% 

top 100 automotive supplier companies 26. Autoliv (S) - 7601 - 18,9% - 594 - 7,8%  27. Tenneco (USA) - 6926 - 19,7% - 475 - 6,9% 28. Borg Warner (USA) - 6832 - 26,5% - 793 - 11,6%  29. Calsonic (JP) - 6758 - 16,0% - 204 - 3,0%  30. Magneti Marelli (I,) - 6500 - 8,6% - 204 - 3,1%  31. Hitachi (JP) - 6357 - 6,8% - 374 - 5,9%  32. Gestamp (ES, ) - 6250 - 8,0% - n.a. - n.a.  33. Visteon (USA) - 6177 - 33,5% - n.a. - n.a.  34. Federal Mogul (USA) - 6019 - 22,1% - 248 - 4,1%  35. Pirelli (I) - 6018 -  -0,7% - 838 - 13,9%  36. Benteler (AT,) - 5865 - -1,5% - n.a. - n.a.  37. JTEKT (JP) - 5844 - 6,4% - 298 - 5,1%  38. GKN (GB,) - 5515 - 4,5% - 508 - 9,2%  39. Dana (USA) - 5443 - 10,7% - 311 - 5,7%  40. Hella KG Hueck (D) - 5179 - 9,5% - 413 - 8,0%  41. Brose Fahrzeugteile (D) - 5169 - 10,7% - n.a. - n.a.  42. Sumitomo Rubber Industries (JP) 5016 - 6,7% - 538 - 10,7%  43. TE Connectivity (CH,) - 5010 - 25,7% - 1055 - 21,1%  44. Hankook Tires (KR) - 5010 - 4,3% - 773 - 15,4%  45. Plastic Omnium (F) - 4882 - 4,9% - 402 - 8,2%  46. IAC (LU) - 4853 - 28,5% - n.a. - n.a.  47. NSK Group (JP) - 4378 - 12,3% - 429 - 9,8%  48. ZF Lenksysteme (D) - 4340 - 5,5% - 174 - 4,0%  49. Samvardhana Motherson Group (IN) - 4270 - 28,3% - 275 - 6,4%  50. Takata (JP) - 4257 - 17,7% - 193 - 4,5% 

top 100 automotive supplier companies 51. Toyoda Gosei (JP) - 4253 - 15,2% - 270 - 6,4%  52. Koito Manufacturing (JP) - 4099 - 25,6% - 340 - 8,3%  53. Mitsubishi Electric (JP) - 4045 - 21,9% - n.a. - n.a.  54. HVCC (KR) - 4034 - 14,3% - 275 - 6,8%  55. NTN (JP) 3974 - 12,1% - 251 - 6,3%  56. Mando (KR) - 3772 - 11,6% - 207 - 5,5%  57. Flex-N-Gate (USA) - 3661 - 11,6% - n.a. - n.a.  58. Eberspächer  (D)- 3599 - 23,4% - n.a. - n.a.  59. Nemak (MX) - 3416 - 7,1% - 298 - 8,7%  60. Yokohama Rubber (JP) - 3413 - 3,2% - 333 - 9,8%  61. Dräxlmaier (D) - 3400 - 17,2% - n.a. - n.a.  62. Harman International (USA) - 3375 - 39,9% - 244 - 7,2%  63. Getrag (D) 3320 - 3,6% - 230 - 6,9%  64. Eaton (USA) 3295 - 18,3% - 531 - 16,1%  65. Alps Electric (JP) - 3263 - 9,8% - 175 - 5,4%  66. PPG Industries (USA) - 3197 - 19,5% - 548 - 17,1%  67. Meritor (USA) - 3093 - 15,0% - 179 - 5,8%  68. Leoni (D) - 3077 - 4,7% - 137 - 4,4%  69. Tokai Rika (JP) - 3068 - 6,7% - 219 - 7,1%  70. TS Tech (JP) - 3049 - 4,1% - 240 - 7,9%  71. American Axle (USA) - 3040 - 30,5% - 220 - 7,2%  72. Honeywell (USA) - 2996 - 9,9% - n.a. - n.a.  73. Martinrea International (CA) - 2912 - 24,4% - 123 - 4,2%  74. TI Automotive (USA) - 2830 - 18,9% - n.a. - n.a.  75. Cooper Tire & Rubber (USA) - 2817 - 12,8% - 247 - 8,8% 

top 100 automotive supplier companies 76. Futaba Industrial (JP) - 2808 - 10,7% - 29 - 1,0%  77. Cooper Standard (USA) - 2669 - 18,9% - 135 - 5,1%  78. Webasto (D) - 2623 - 5,5% - n.a. - n.a.  79. Inteva (USA) - 2591 - 18,9% - n.a. - n.a.  80. NHK Spring (JP) - 2511 - 16,6% - 191 - 7,6%  81. Mann + Hummel (D) - 2500 - 4,2% - n.a. - n.a.  82. Hutchinson (F) - 2495 - 6,7% - n.a. - n.a.  83. Nexteer Automotive (USA) - 2450 - 41,3% - 195 - 8,0%  84. KSPG (D) - 2448 - 8,2% - 184 - 7,5%  85. Pioneer (JP) - 2437 - 4,3% - 64 - 2,6%  86. Keihin (JP) - 2397 - 17,8% - 135 - 5,6%  87. Wabco (B) - 2345 - 18,7% - 272 - 11,6%  88. Asahi Glas (JP) - 2330 - 12,7% - n.a. - n.a.  89. Sumitomo Riko (JP) - 2298 - 23,0% - 71 - 3,1%  90. Linamar (CA) - 2288 - 21,8% - n.a. - n.a.  91. Toyo Tire & Rubber (JP) - 2282 - 6,7% - 314 - 13,8%  92. Saint-Gobain (F) - 2258 - -1,7% - n.a. - n.a.  93. Grupo Antolin (ES) - 2245 - 5,5% - n.a. - n.a.  94. Knorr-Bremse (D) - 2230 - 7,7% - n.a. - n.a.  95. Aunde (D) - 2218 - 30,8% - n.a. - n.a.  96. Nippon Sheet Glas (JP) - 2143 - 6,1% - 65 - 3,0%  97. Illinois Tool Works (USA) - 2131 - 22,4% - 494 - 23,2%  98. Leopold Kostal (D) - 2113 - 11,2% - n.a. - n.a.  99. 3M Automotive (USA) - 2094 - 16,7% - n.a. - n.a.  100. Mitsuba Corp (JP) - 2019 - 7,3% - 122 - 6,1% - Source: autopro.hu/

Magyar Gépjárműipari Egyesület MAGE 2015.09. 24. Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry 1119 Bp., Than Károly utca 3-5., Tel./fax: 06-1-371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu

Magyar Gépjárműipari Egyesület MAGE THANK YOU FOR YOUR KIND ATTENTION! CSABA KILIÁN CEO association of the hungarian automotive industry (MAGE) CONTACT: H-1119 BUDAPEST, THAN KÁROLY UTCA 3-5. PHONE: (36 1) 371 5874 MAGE@GEPJARMUIPAR.HU WWW.GEPJARMUIPAR.HU Magyar Gépjárműipari Egyesület | Association of the Hungarian Automotive Industry H-1119 Budapest, Than Károly utca 3-5., T./F: 36 1 371 5874, mage@gepjarmuipar.hu, www.gepjarmuipar.hu