Nordic Investment overview in Baltic states
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NORDIC INVESTMENTS IN BALTICS
NORDIC BALTIC BUSINESS FORUM 2014
NOV 4TH 2014
NORDIC COUNTRIES’ FDI IN THE BALTIC REGION
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Sweden Finland Norway Denmark
Year 2003
Sources: Bank of Latvia; Bank of Estonia; Bank of Lithuania. Conversion rate used: EUR 1 = LTL 3. 45280; EUR 1 = EEK 15.6466
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Sweden Finland Norway Denmark
Year 2013
Estonia
Latvia
Lithuania
Inward FDI stock in the Baltic region 2003 vs. 2013, mln. EUR*
€6,71 bln2003
€17,28 bln2013158% ↑
195% ↑
111% ↑
401% ↑37% ↑
44% of FDI in Baltics
originate from
Nordic countries.
NORDIC COUNTRIES’ FDI IN THE BALTIC REGION
31%
13%
48%37%
26%
8%
32%
29%
43%
79%
20%34%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sweden Finland Denmark Norway
Estonia
Latvia
Lithuania
LITHUANIA LATVIA ESTONIA
26%
29%
14%
22%
60%
49%
2003
2013
Sources: Bank of Latvia; Bank of Estonia; Bank of Lithuania. Conversion rate used: EUR 1 = LTL 3. 45280; EUR 1 = EEK 15.6466
8,445
3,867
4,972
0 2000 4000 6000 8000 10000
Estonia
Latvia
Lithuania
Inward FDI stock in Baltic coutnries 2013, mln. EUR*
Sources: Central Statistical Bureau of Latvia, Statistics Lithuania, Statistics Estonia, Eurostat Employment LFS Series*Statistics Estonia only collect datat on foreign controlled companies with 20 or employees or more
11,278
6,061
12,885
10,254
8,484
25,0028,257
3,792
4,717
9,334
5,830
4,467
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Lithuania Latvia Estonia
Number of employees in Nordic controlled enterprises in Baltic States, 2012*
Denmark
Norway
Finland
Sweden
NUMBER OF NORDIC COMPANIES & EMPLOYEES
MORE THAN 2 000
ENTERPRISES
EMPLOYEES
MORE THAN 110 000
LITHUANIA
LATVIA
ESTONIA
3,08 %
2,78 %
7,92 %
SHARE FROM TOTAL EMPLOYMENT
Sources: Eurostat, EU direct investment positions*The latest available data on Estonia and Latvia are from 2012, on Lithuania – from 2011
NORDIC FDI BREAKDOWN BY SECTOR
SWEDEN FINLAND NORWAY
FINANCE 62%
MANUFAC-TURING 11%
MANUFAC-TURING 24%
REAL ESTATE22%
FINANCE 47%
WHOLESALE & RETAIL 21%
TOP 1
TOP 2
DENMARK
MANUFAC-TURING 24%
TRANSPORT & STORAGE 14%
ICT 8% WHOLESALE & RETAIL 20%
PROFFESIONAL SERVICES 13%
TOP 3 FINANCE 13%
An impressive 40% of total Nordic investments in the Baltic region are made in financial and insurance sector,while considerably less in other areas, such as manufacturing (9%), construction (7%), agriculture, forestry andfishing (7%) and information and communication activities (6%).
Sources: Eurostat, EU direct investment positions*The latest available data on Estonia and Latvia are from 2012, on Lithuania – from 2011
NORDIC FDI BREAKDOWN BY SECTOR SWEDEN
Sector breakdown of Sweden’s FDI in Baltic States*, mln. EUR
0 1000 2000 3000 4000 5000 6000
Others
Wholesale & retail trade
Professional, scientific activities
Real estate activities
Information and communication
Manufacturing
Financial and insurance activities Lithuania
Latvia
Estonia
€3,21 bln2003
€9,47 bln2013195% ↑
Sources: Eurostat, EU direct investment positions*The latest available data on Estonia and Latvia are from 2012, on Lithuania – from 2011
NORDIC FDI BREAKDOWN BY SECTOR FINLAND
Sector breakdown of Finland’s FDI in Baltic States*, mln. EUR
€2,05 bln2003
€4,32 bln2013
0 200 400 600 800 1000 1200
Others
Information and communication
Agriculture, forestry and fishing
Construction
Financial and insurance activities
Wholesale and retail trade
Real estate activities
Manufacturing Lithuania
Latvia
Estonia
111% ↑
Sources: Eurostat, EU direct investment positions*The latest available data on Estonia and Latvia are from 2012, on Lithuania – from 2011
NORDIC FDI BREAKDOWN BY SECTOR NORWAY
Sector breakdown of Norway’s FDI in Baltic States*, mln. EUR
€0,48 bln2003
€2,05 bln2013
0 100 200 300 400 500 600 700 800 900
Others
Construction
Real estate activities
Manufacturing
Professional, scientific activities
Wholesale and retail trade
Financial and insurance activities Lithuania
Latvia
Estonia
403% ↑
Sources: Eurostat, EU direct investment positions*The latest available data on Estonia and Latvia are from 2012, on Lithuania – from 2011
NORDIC FDI BREAKDOWN BY SECTOR DENMARK
Sector breakdown of Denmark’s FDI in Baltic States*, mln. EUR
€1,05 bln2003
€1,44 bln2013
0 50 100 150 200 250 300
Others
Real estate activities
Agriculture, forestry and fishing
Information and communication
Wholesale and retail trade
Financial and insurance activities
Transportation and storage
Manufacturing Lithuania
Latvia
Estonia
37% ↑
Norwegian Visma Group acquires Latvia's IT company FMS (2014)
FMS Group is provider of Enterprise Resource Planning (ERP) and Business Intelligence (BI)software in Latvia with a market share of more than 30%. This will substantially expandVisma’s overall presence in the Baltic region. In 2013, FMS had a turnover of EUR 10.3 millionand had 197 employees, while Visma Group’s net revenue amounted to EUR 789.4 million andhad 5 642 employees.
RECENT INTERESTING TRANSACTIONS
Swedish East Capital Explorer very active in real estate acquisition (2012-2014)
Swedish investment company East Capital Explorer AB over the past years have acquired severallarge business and retail prorperties in the Baltics, including Vilnius Business Harbour (EUR 61.6million), Rimi Eesti Food’s logistics centre and headquarters (EUR 13.4 million), TänassilmaIndustrial Park (EUR 24 million) and others.
Swedish Runsven Gruppen acquires Estonia’s pharmacy chain (2014)
Swedish investor buys 70% stake in Estonia's third-largest pharmacy chain – Südameapteek Thetransaction creates a strong competitive advantage for Südameapteek to expand to the Balticand Nordic pharmaceuticals market. Südameapteek chain currently includes 68 pharmaciesand employs 285 workers.
Finns move production to Ogre and Kaunas (2014)
To improve manufacuring efficiency Finnish bakery Fazer Group plans to move its productionfacilities from Tallinn to Latvia and Lithuania In 2013, Fazer Latvija turnover was EUR 18.41million and the company currently has 250 workers. Meanwhile, Fazer Group reached aturnover of EUR 1.7 billion.
Orkla purchases Latvia’ s NP Foods Group (2014)
Norwegian company Orkla has entered into an agreement with Nordic Partners Food Limited topurchase Latvia's NP Foods Group and its subsidiary companies Laima, Gutta, Staburadze andMargiris. In 2013, NP Foods had a consolidated turnover of EUR 77.1 million and a total of 1 100employees, while Orkla’s turnover totaled EUR 4 037.5 million and the group had around 17 000employees.
RECENT INTERESTING TRANSACTIONS
Air traffic and ship control system manufacturer Jotron opens high-tech plant in Kaunas(2014)
Jotron, a Norwegian capital company and manufacturer of air traffic and ship control systems,opened a new high-tech plant in Kaunas, Lithuania. A total of EUR 2.7 million has been investedby the company in this manufacturing development project. The company is planning toincrease its production volume and establish a local product development department.
Finnish Energiakolmio Oy acquires market shares in Estonian company Baltic Energy Services(2013)
The leading energy market expert service company in Finland, Energiakolmio Oy, has acquiredone-third of the Estonian company Baltic Energy Services. Baltic Energy Services is the leadingelectricity portfolio manager in the Baltic region with 10 % market share in Estonia. Company’sturnover in 2012 was EUR 42.6 million.Energiakolmio operates in the field of energy procurement and sales, and aims to become theleading energy management service house in the Nordic and Baltic countries.
What is the future of
Nordic-Baltic cooperation?
Partners:
• Since 2004 we offer Export Consulting and Market Research services for Baltic and foreign companies
• We have a unique exporting experience and methodology
Results:
• Over 800 projects to different countries
• 3 offices in the Baltics, 20 people, 12 languages
• GatewayBaltic annually exports production worth over 8 mill. EUR for our clients
GatewayBaltic is the leading Market Intelligence
and Export Intelligence company in the Baltics.
Looking forwards to
cooperation for economic
development of Baltic states!
Inese Andersone
GatewayBaltic Director
Elizabetes iela 51, Riga, Latvia
Phone: +371 26875782
www.gatewaybaltic.com