CZECH TRADE PROMOTION AGENCY2008/2009

Introductory Words from the CzechTrade Managing Director – – – 06

Profile – – – 10

Calendar 2008 – – – 14

The Agency’s Services – – – 22

CzechTrade Organization – – – 38

Results – – – 44

Table of Contents

Introductory Words fromthe CzechTrade

Managing Director

In my view, tension betweenthe necessity for continuityand the necessity for innovationand change is of paramountimportance for the companyand for the whole of civilization.PETER F. DRUCKER

Dear business partners, dear friends,

We are preparing this publication for you at a time of pessimistic economic forecasts and news. I am therefore happy to say that the nature of theinformation we are bringing to you offers quite the opposite mood. Our agency is of the opinion that 2008 has the right to aspire to be regardedas “the best” in all respects. We spent the greatest number of hours in history, almost thirty thousand, working on commissions for our exporters.The contracts totalling 5.5 billion crowns which they managed to sign with our help testify to the fact that the services provided had a major impacton their export sales.

Our economic results totalling 15.8 million crowns also improved considerably. This means that we can give our clients a guarantee of sustainablequality and ensure the continuation of the development of our foreign network next year.

The more than one thousand Czech companies we helped to enter new markets last year lie behind the above figures. We deeply appreciatethe fact that the companies’ representatives evaluated their satisfaction with our services with a grade of 1.33, when grade one on a four-pointscale is the best result.

From today’s point of view, which may appear a little timeless, last year we endeavoured to innovate our offer to make it more attractive to ourclients. For instance, we introduced a “Design for Export” service package, perfected the on-line Exporters Directory and set up Export trainingcentres at some of our foreign offices. We are continuing this trend this year.

CzechTrade sees the economic crisis as a challenge, a test and an opportunity. We are aware of the fact that our exporters need us even moreat the present time. For them, up-to-date information from the different regions and professional advice from our foreign representatives oftentake on vital importance. Their exporting success achieved during the first months of 2009 fills me with optimism.

On behalf of the CzechTrade team, I assure you that we will be searching for new ways of contributing to the growth of Czech exports.I hope we will all find the energy, courage and enthusiasm to overcome the obstacles which may become new opportunities.

Ivan Jukl, Managing Director

In my view, tension between the necessityfor continuity and the necessity for innovationand change is of paramount importance forthe company and for the whole of civilization.

PETER F. DRUCKER

Introductory Wordsfrom the CzechTradeManaging Director

Profile

Do you know who we areand what our mission is?

MissionTo contribute to the growth of our clients’ exports with our professionalservices.

VisionWe want to be the first choice of Czech companies when penetratingand developing international markets.

Key ValuesPartnership with the CustomerOur priority is the customer, we are his/her advisor and assistant,we enjoy his/her success.

Team Cooperation is a Precondition for the SuccessfulDevelopment of Company Know-howWe are a team which learns from experience and knows there is alwayssomething which needs improvement.We always want to be one step ahead.

Professionalism and High AmbitionsWe never say that we cannot manage things; we search for andprovide our customers with the best possible tailor-made solutions.

Open and Effective CommunicationWe act in a businesslike manner, openly and honestly, we make whatis complicated simpler.

Loyalty to the AgencyWe always play for CzechTrade, we are proud of our work andour brand.

TrademarksCzechTrade creates the good name of Czech products and servicesabroad; it therefore makes every effort to help the clients achieveexporting success through the agency’s trademark.Since May 2008, the verbal trademark “CzechTrade” has beenregistered with the Industrial Property Office. By registering the verbaltrademark, the CzechTrade agency has obtained another powerfultool which it wants to use for the benefit of its clients.Apart from the other national combined trademarks, the CzechTradeagency also owns the international combined trademark calledCzech Trade Promotion Agency.

Do you know whowe are and whatour mission is?

CzechTradeHeadquarters

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The CzechTrade agency was established as an allowance trade promotion organization by virtue of the decision of the Ministerof Industry and Trade on 1 May 1997. CzechTrade is the National Trade Promotion Organization (TPO) of the Czech Republic. For morethan eleven years, it has accompanied Czech exporters to foreign markets by providing them with its information, assistance andconsultancy services, Its main objective is to develop international trade and mutual cooperation among Czech and foreign subjects.

Those who want to build hightowers must spend a long timeon the foundations.

KARL MATHY

Profile

CertificationIn 2002, the CzechTrade agency obtainedan ISO 9001:2000 quality certificate,which presents the challenge ofa constant improvement in the qualityof its activities and the extension of itsportfolio of client services. This qualitymanagement system is re-certified bythe renowned DET NORSKE VERITAScompany on an annual basis.

In 2009, CzechTrade successfullyunderwent an assessment of its systemmanagement efficiency in accordancewith the IQRS standard – the InternationalQuality Rating System – which combines

the requirements of the ISO 9001:2000 standard with the specificstandards of the developed management systems, the so-calledbusiness excellence models and the best practices of successfulcompanies worldwide.

Calendar 2008

Get to know the main eventsin the life of CzechTrade.

AprilExporters Meet in PlzeňUnder the head of the Export Academy, CzechTrade organized anotherexport conference in cooperation with Komerční banka. This time,it focused on Russia, Serbia, Montenegro and the Baltic states.Representatives from 200 companies participated in the conference.The directors of the CzechTrade foreign offices provided informationon the new opportunities in various branches. The entrepreneurs appre-ciated their assistance when searching for business partners, verifyingcompany solvency, carrying out marketing research and overcomingcustoms barriers.

MayThe Export Academy Trains New Business DiplomatsA course in business diplomacy was prepared by the CzechTrade agencyin cooperation with the Ministry of Industry and Trade within theframework of the Export Academy, which is one of the twelve projectsof the CR Export Strategy for 2006-2010. Its objective is to developtheoretical knowledge and practical skills by using modern methods,including the use of information and communication technologies.About thirty of those attending finished the second year of the coursein business diplomacy.

Trade Fair “Incubators”2008 was the first time that small and medium-sized companies hadan opportunity to participate free of charge in the selected domesticinternational trade fair within the framework of a joint exposition ofthe Ministry of Industry and Trade and CzechTrade, held over an areaof about 30 m2. After the premiere at the Brno MOBITEX Trade Fair,the programme for novice exporters proved its worth at the Brno TOPTechnology Trade Fair, when it was used by a total of seven companies.

CzechTrade Assists in Demanding MarketsIn May, the possibilities of exporting to Turkey, Egypt, the United ArabEmirates and other North African areas were lively discussed at anexport conference which was organized by the CzechTrade agencytogether with Komerční banka on the premises of the Prague Universityof Economics. The representatives of the successful exporting compa-nies agreed that, among other things, they had succeeded in thesedemanding markets thanks to the support given by the CzechTradeforeign offices.

Gold Medal for CzechTradeThe foreign office in Vietnam was awarded a gold medal forthe CzechTrade exhibition stand at the Vietnam Expo 2008 held inHanoi. The award was received from the hands of the VietnameseMinister of Industry and Trade by Mr Luboš Marek, the directorof the foreign office.

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JanuaryDesign for ExportSince 1 January 2008, CzechTrade has offered a service package calledDesign for Export. Enterprises are provided with an effective supportsystem in the form of specialist workshops and seminars, they partici-pate in events abroad or obtain information on design trends in indivi-dual countries from the CzechTrade foreign offices. Since July 2008,the package has included a new service called Design Status Analysisin the Company.

Entrepreneurs Prefer the Businessinfo.cz PortalThe official business and export portal, Businessinfo.cz, operated by theCzechTrade agency, ranked first among the Czech Internet portals forentrepreneurs. Eleven per cent of poll respondents mentioned it as theirfirst choice. This followed on from a poll carried out among Internetusers searching on websites for information on doing business in theCzech Republic. The other eighteen per cent of the interviewed pollparticipants mentioned the Businessinfo.cz portal as the first whenasked to spontaneously name ten Czech websites containinginformation for entrepreneurs.

FebruaryChina and Vietnam Attract Czech ExportersRepresentatives of more than two hundred companies came together onthe academic premises of the Prague University of Economics at an exportconference, which was organized by the CzechTrade agency in cooperationwith Komerční banka. The subject of the conference was exporting toWestern China and Vietnam. The entrepreneurs present agreed that duringthe workshops and individual consultations they had received a lot ofpractical advice and experience from Ivan Vyroubal and Luboš Marek,the directors of the foreign offices in the Chinese city of Chengdu and theVietnamese city of Ho Chi Ming, and from the experts of Komerční banka,which would help them analyse their export plans in these territories.

MarchHow to Succeed in the World Bank ProjectsThe website of the Export Academy of the CzechTrade agency offereda new, free, educational e-learning course called “How to Make a Bid forthe World Bank Project”. Its objective is to familiarize Czech companieswith the different kinds of World Bank projects and give those interesteda basic idea of what should be done to make a competitivebid. The prerequisites are, at least, basic knowledge of theproblem of the selection procedures in the CR, export poten-tial and doing business by providing one of the two types ofsupplies for the World Bank – supplies of goods or the provi-sion of consultancy services. The course is divided into sevenlessons, through which the participants are led by an anima-ted figure of Johnny Smart, the experienced exporter.

Spring Export Trade Fair Held for the First Timein Prague and BrnoA total of 213 companies had an opportunity to confer with thedirectors of 31 CzechTrade foreign offices about their export plansin almost a thousand consultations. The new feature was the factthat, during the first two days as the event, which took place in thePrague Pyramida Hotel, entrepreneurs also had an opportunityto meet CzechTrade experts in Brno within the framework of the34th Salima International Food Fair.

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Get to know the mainevents in the lifeof CzechTrade.

Today one can do absolutelyeverything, and one should onlybe afraid of one’s fear.

JONAS RIDDERSTALE

Calendar 2008

SeptemberCzechTrade at MSV 2008The International Engineering Trade Fair (MSV) in Brno celebrated itsfiftieth anniversary and, naturally, CzechTrade could not miss it.It presented itself at an originally designed two-storey exhibition standtogether with the Ministry of Industry and Trade and the CzechInvestagency in Fair Pavilion Z. It was the third time that the CzechTradeMeeting Point played a prominent role in the programme prepared byCzechTrade for Czech exporters. During this two-day event, more than120 representatives of small and medium-sized enterprises discussedtheir export plans with 21 directors of the CzechTrade foreign offices.CzechTrade, together with the French-Czech Chamber of Commerce,organized a workshop on doing business in France with a focus onengineering. The objective of the workshop was to provide Czechcompanies with information on the developments on the Frenchmarket and familiarize them with all the possibilities of support forexport projects. The agency’s representatives gave a detailed presenta-tion of the Design for Export service package at a “How to LearnCreativity and Innovation” conference.

We Trade with Spain, France and Italy120 participants gathered on the premises of the University of Econo-mics to participate in the fourth export conference of 2008, traditio-nally organized by the CzechTrade agency and Komerční banka.

We Welcome a delegation of Moldavian BusinessmenAn incoming mission, during which Moldavian and Czech businessmengathered at the CzechTrade headquarters in Prague, was one of theitems on the agenda of the interstate delegation, led in the CzechRepublic by the Moldavian Prime Minister Zinajda Grečanii. The mainitem on the agenda of the business trip was the Czech-MoldavianEconomic Forum held on the ancient grounds of Břevnov Monastery.

The Czech EU Presidency on Businessinfo.czIn the European Union section, the Businessinfo.cz portal introduceda new column which became the mutual information platform forthe business public within the framework of the prepared presidencyof the Czech Republic of the EU Council. The column gave an overviewpresentation of the five priority areas set by the Czech Republic for itspresidency of the EU Council upon the basis of the slogan “Europewithout Barriers”.

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JuneCzechTrade Protects its TrademarkThe agency obtained official confirmation of the registration of theCzechTrade verbal trademark with the Industrial Property Office. Withthis registration, it obtains another strong argument which it would liketo use to protect its intellectual property. This step is also related to thefact that, at the beginning of 2008, the High Court of Justice in Pragueforbade CzechTrade Internet, s.r.o. from using the abbreviated designa-tion of CzechTrade, barring cases when the designation concernedis used as part of the trading firm, as it is misleading for the public.The said court explicitly characterized this action as unfair competition.

Success of Czech Research at BIO 2008I.Q.A., the Czech company, managed to successfully sell the results ofseveral years of original research at the most important biotechnologicaltrade fair in the world, held in the Californian city of San Diego. Via itsAmerican subsidiary company, I.Q.A. signed a licence agreement witha major American pharmaceutical company. The participation of Czechenterprises at the trade fair was ensured by means of the help of

the CzechTrade and CzechInvest agencies, financially supported bythe Ministry of Foreign Affairs of the Czech Republic.

JJuullyyNew CzechTrade On-line Products The Exporters Directory underwent another stage of development witha view to increasing the effectiveness of the promotion of Czech com-panies abroad and simplifying the data update process in this directoryfor clients. In July 2008, there were four language versions of the directory available -Czech, English, German and Russian. Nowadays the Exporters Directory allows six-language presentations by choosingfrom 13 world languages. The CzechTrade Client Centre appeared inconnection with the creation of the Exporters Directory. It started todeal not only with client support for this product but also with allCzechTrade on-line services, which were expanded by the DesignersDirectory within the framework of the Design for Export service.

AugustPremiere at Formland, the Danish Trade Fair Formland 2008, the largest Scandinavian international trade fair ofdesign, furnishing accessories, household goods and gifts, is a uniqueopportunity for finding long-term and reliable business partners notonly in Denmark but also in the other Scandinavian countries. It wasthe first time that CzechTrade had attended the event. Its foreign officein Copenhagen enabled twelve Czech companies involved in glassindustry, jewellery making, furniture industry and interior design to present themselves at a joint exhibition stand in the form of samplesand catalogues.

CzechTrade at a Major Chinese Transport FairSix Czech logistics companies presented their products and servicesunder the head of CzechTrade at an exposition at the Transport logistic China 08 Fair. The director of one of them, Mr Jan Grabmüllerof České Aerolinie Cargo, said that he regarded participation in thisfair as enormously useful.

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Calendar 2008

America Offers Export OpportunitiesA conference focusing on trade in Latin and North America was held atthe Brno International Hotel. It is traditionally prepared by CzechTradetogether with Komerční banka. The Latin American markets, particularlyBrazil, are among the most attractive for domestic exporters, especiallyat this time of economic crisis. The North American markets are attrac-tive and accessible for exports as well, although with a certain degreeof difficulty. All investment and export opportunities, as well as practicaladvice on how to effectively operate in these territories, were presentedto the companies involved by the “American” foreign representatives of CzechTrade.

DecemberGünter Verheugen Praises Businessinfo.czWhen interviewed by the Profit magazine, Günter Verheugen, the vice-chairman of the European Commission in charge of enterprise and industrial policy, expressed his positive opinion of the Businessinfo.cz portal operated by the CzechTrade agency. Mr Verheugen particularly emphasized that Businessinfo.cz, the officialbusiness and export portal, could be an example of how to use theInternet in order to provide information for small and medium-sizedenterprises.

Juraj Kramara, auditor of Det Norske Veritas“Not often do we see a state organization whose managementeffectiveness is comparable to the private sector like CzechTrade.For the state sector organizations, it is difficult to find capablemanagers and stabilize them.”

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Czech Food Industry at WorldFood 2008This was the first time that the CzechTrade foreign office in Moscowhad ensured the participation of Czech food companies at the prestigious WorldFood 2008 trade fair. Ten Czech companies presentedthemselves at a joint exhibition stand in the Moscow Expo centre underthe auspices of CzechTrade.

October

NovemberThe DHL Export Award Enters its Second DecadeMore than a hundred major Czech exporters competed for primacy atthe DHL Export Award contest, which is traditionally organized by theDHL company in cooperation with the CzechTrade agency. CzechTradeenriched the eleventh year of this prestigious contest of small andmedium-sized exporters with a new feature. It declared a specialCzechTrade award for the application of industrial design, which was finally won by the UJP Praha company. BAUER TECHNICS won the category of medium-sized companies, while Arrow line was the winner of the category for small companies, Pragoimex became the exporter for the area of South-east Europe and GF MACHINERYwon the title for the exporter of the region of South Moravia.

The Incubator Project for Novice Exporters Culminates at the Medical Fair in BrnoThe representatives of the companies involved in the presentation at the “Medical Fair” trade fair made within the framework of theCzechTrade “incubator” considered the idea original and the projectuseful. The trade fair, focusing on medical equipment, rehabilitationand health, held at the Brno Fairground, was the last opportunity to test this new programme in 2008.

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Calendar 2008

CzechTrade Visited by Anne SteffensenAt the end of the year, CzechTrade welcomed an honoured guest Mrs Anne Steffenson, the representative of the Trade Council ofDenmark and the secretary of state of the Danish Ministry of ForeignAffairs. In Denmark, the mission of the Trade Council of Denmark issimilar to that of the CzechTrade and CzechInvest agencies in the CR.It also deals with the promotion of innovation. The mutual discussionproduced a lot of interesting suggestions and ideas to both of the parties involved.

Re-certification of the Quality Management SystemBy the end of the year, the validity of the CzechTrade certificate of thequality management system according to ISO 9001:2000 was about to expire. Within the framework of the certification renewal, re-certifi-cation of the quality management system was carried out by using theIQRS® method. The uniqueness of the international IQRS® evaluationsystem lies in the fact that the system incorporates all the criteria formeeting the requirements for certification in accordance with the inter-national standards ISO 9001, QS-9000 and EFQM Excellence Model (the European business excellence model) and the Malcolm BaldridgeNational Quality Award (the US national Quality Award). The evaluationthereby gives a comprehensive overview of the organization’s efficiencyand the level of the organization’s management system maturity. At thesame time, it helps to identify the weak points and the areas for furtherdevelopment. As stated by the auditors, CzechTrade’s strong pointswere management culture, the atmosphere of openness and a desire to make improvements.

The Agency’s Services

Each of you will make a choice.

Hammering Press for ChinaŽďas, the engineering company, and its subsidiary company TSPlzeň will supply a hammering press designed for free hammeringto the Western Chinese province of Sìchuān, for a price totallingalmost eight million euros. Almost two and half years have gone bysince the first journey of acquisition to the metropolis of Chengduuntil the moment when both parties gathered to conduct their finalnegotiations. “In the course of the final negotiations we were greatly assisted by the CzechTrade agency,” emphasizes StanislavHrdina, the business manager of Žďas. “For several hours, IvanVyroubal, the director of the foreign office in Chengdu, helped usto find the complete wording of the new tax regulation with whichour Chinese partners took us unawares at the end of the negotiati-ons. He also recommended us a local company providing tax consultancy of this kind.”

What particular services are provided by our representativesabroad?Market ResearchHigh-quality and up-to-date information is the primary prerequisite for success on foreign markets. CzechTrade specialists abroad offer the drawing up of such documents, facilitating decision-making whenentering a given market and enabling a company to quickly and effectively commence new business activities.

Searching for Business ContactsSearching for a suitable business partner abroad is one of the key but,at the same time, very difficult and financially demanding tasks facingan expanding company. CzechTrade representatives will draw up a well-arranged list of contacts according to the established criteria upon the basis of the local databases and sources of information.

Checking Interest in a Product/ServiceBy means of this service provided by CzechTrade, a Czech company willobtain contact information on potential business partners. Apart fromother elements, this service includes approaching the selected compa-nies, the presentation of the Czech company’s offer, the subsequentascertainment of interest in cooperation and a recommendation for proceeding further.

Organizing Business NegotiationsIn cooperation with a CzechTrade foreign office, companies’ represen-tatives may make the best use of their time and minimize the risks related to the local specifics of business negotiations.

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The main task of CzechTrade is to help to increase the exporting effici-ency and competitiveness of Czech companies on foreign markets,regardless of their experience of exporting. Therefore, both the compa-nies which have not been involved in foreign trade so far and thosewhich already have a wealth of experience of exporting will appreciatethe quality and professionalism of the wide-ranging offer of its services.

PREPARING TO EXPORTCzechTrade helps Czech companies to discover new business opportu-nities by means of a service package for novice exporters. By filling inan on-line questionnaire, a company may see for itself how prepared it is for exporting in comparison with others, forming a basis for futuresuccess.

CONSULTATIONS AND CONSULTANCYCzechTrade gives consultations regarding companies’ export plans via its export managers and the directors of its foreign offices.Consultations may be individual or CzechTrade organizes various eventsfor these purposes. The list is posted on the CzechTrade Internet website in the section titled “Calendar of Events”.

INDIVIDUAL SERVICES ABROADThe key element and the highest added value of the agency’s activityconsist of the provision of export consultancy services and individualassistance services to Czech exporters abroad. At present, CzechTradehas a network of 33 offices in 30 countries, operating in 35 countrieson four continents.The services provided are tailor-made to satisfy the client’s individualneeds and they always respect the specifics of a particular country and branch. The agency’s representatives abroad offer their knowledgeof the local environment, thanks to their experience and long-termwork in a given country. Most of the clients who have used CzechTrade services abroad claimthat these services have helped them to save financial resources and time and have improved the quality of their decision-making.

• In 2008, CzechTrade foreign offices carried out 1,111 paid commissions.

• These services were used by a total of 691 clients, who evalua-ted their satisfaction with a 1.3 grade, 1 being the highest and 4 the lowest.

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Each of you will makea choice.

Success depends on how youreact to unexpectedopportunities.

ROSS PEROT

The Agency’sServices

Telecommunication Facilities to Russia“Thanks to CzechTrade we got to the right door. The director of the CzechTrade foreign office knows important people and hascontacts there. Besides, support from a government organizationgives a good impression to Russian entrepreneurs. Even a letterwith the heading of a government agency and the Czech nationalcoat of arms impresses the Russians,” said Miloslav Čábela, the business manager of Tesla Karlín.“A week’s journey to Russia is much more expensive than the priceof CzechTrade’s services. Cooperation saved us a lot of time andmoney. With their help we entered the Russian market immediatelyand at a low cost.”

Semiconductor Furnaces for Moscow UniversityThe SVCS Process Innovation company uses CzechTrade services on a regular basis. The outcome has been, for example, a contractsigned in Russia totalling 2.15 million euros, whereby the companywill supply the Moscow Institute of Electrical Engineering MIET withfour semiconductor diffusion furnaces and other equipment for a research project in the area of nanotechnologies. “We useCzechTrade services not only in Moscow but also in SaintPetersburg and Yekaterinburg,” said Jarek Dolák, the company executive. “We learned how to move around in this totally differentenvironment from the agency’s representative in China. The direc-tors of the CzechTrade offices are enthusiasts who helped us a lot.”

Presentations at Trade Fairs and ExhibitionsCzechTrade will help to ensure personal participation in or cataloguepresentation at selected events held abroad. A company may therebyobtain new business opportunities and up-to-date information on itscompetitors in a given branch.

Presentation at a Trade Fair with Personal ParticipationTrade fairs are a matter of prestige; it therefore pays to participate inthem in person and present product samples. In this area, CzechTradeoffers a wide range of services, from ensuring invitations for foreignpartners to the exhibition stand and preparation of a presentation toconducting negotiations with potential partners in accordance with the instructions agreed upon, as well as compiling contacts, materialsand information.

Catalogue Presentation at a Trade Fair without PersonalParticipationShould a company decide not to participate in person in an event heldabroad for any reason and select the form of catalogue presentation,the staff of the CzechTrade foreign offices may conduct introductorynegotiations with foreign partners on behalf of the company and provide potential customers with the necessary presentation materials,including contact information.

Incubators 2008Small and medium-sized companies took the chance of free participa-tion in some of the selected domestic international trade fairs via theincubators of CzechTrade and the Ministry of Industry and Trade byopening a joint exposition in an area covering about 30 m2. However,the mission of the incubators is much deeper than only ensuring tradefair facilities for novice exporters. CzechTrade workers provided the participants in the incubators with a wide range of exhibition services,a number of recommendations and good advice. The CzechTradeagency thereby not only became the patron of these companies duringthe trade fairs; it also helped them to have a successful start in theworld of international trade. In 2008, CzechTrade ensured trade fairincubators at the MOBITEX and TOP Technology trade fairs and Medical Fair.

Client CentreThe CzechTrade Client Centre, dealing with client support forall CzechTrade on-line products, such as the Exporters Directoryand the Designers Directory, was established in connection with a range of electronic products.

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Checking a Foreign Partner’s SolvencyCzechTrade representatives abroad may check a foreign company’s solvency from well-tested sources, as a result of which a Czech exportermay avoid unnecessary risks.

Trade Fair and Exhibition ResearchIf a company is unable to participate in a trade fair or exhibition abroadbut nonetheless would like to obtain the necessary information, it mayuse CzechTrade’s services. To meet the particular requirements, theagency’s staff will gather the relevant information regarding a givenevent, including information on those companies potentially interestedin cooperation or on competitors.

Help When Establishing Agencies AbroadCzechTrade will provide the necessary information and help to over-come difficulties related to the establishment of a branch in a selectedterritory. For example, the service includes the ascertaining of informa-tion on legislation, ensuring legal consultations, establishing the condi-tions for investments and information on investment incentives.

Export Training CentresExport training centres help to penetrate a new foreign market. Theyenable company representatives to use the CzechTrade foreign officesfacilities, to operate directly in a given country, to get to know its speci-fics from first-hand experience and to prepare the establishment oftheir own representation offices abroad. They help to save financialresources, as they include the necessary service, access to importantsources of information and, above all, assistance and support from the directors of the foreign offices and their teams.

PRESENTATIONS AND TRADE FAIRSCzechTrade offers new possibilities for supporting foreign companymarketing. High-quality presentation abroad is a prerequisite for the effective obtaining of new business contacts.

Czech Exporters DirectoryIn 2008, CzechTrade produced a perfected Exporters Directory – the only official catalogue of Czech exporters. Its advantages includea greater number of language mutations and better optimization forthe Internet search engines (e.g. Google), thereby increasing thesuccessfulness of displaying a company’s presentation on the front freewebsites. Thanks to the new graphic layout and simplified division of the companies into 26 branches, the product has become morecomprehensible for foreign visitors.

CzechTrade On-line Client InterfaceThe CzechTrade client interface enables companies to order and placefree and paid records/presentations in the Exporters Directory.Companies are thereby able to easily select the preferred form of company or product presentation and to create this presentation in the Exporters Directory via the Client interface in a very straightforwardmanner. Another new product administered via the Client interface is the Designers Directory. In the long-term it will be possible to orderand administer other services provided by the CzechTrade governmentagency in the CzechTrade Client interface.

Czech Exporters Directory in 2009• The display of a company’s presentations of itself and itsproducts on the 30 Internet websites of the CzechTradeforeign offices;• Exporters Directory promotion via more than 30 CzechTradeforeign offices and more than 100 CR representation officesworldwide• Cost-saving for the creation of a company’s own Internetpresentation of itself and its products in the languagemutations for a given market

In 2008, the number of Czech companies presented in the Exporters Directory exceeded two thousand.

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The Agency’sServices

We Can Recommend Incubators to Companies“We can strongly recommend active participation in the CzechTradeincubator from our own first-hand experience as an effective presentation tool,” said Eliška Lisá of ENVINET. “Apart from otherthings, we appreciated the usefulness of the lecture “How toSucceed at a Trade Fair”, which was prepared by the CzechTradeagency in cooperation with the Veletrhy Brno company, where our company’s representative got valuable information on how tomake the most of participation in a trade fair,” she added.

2009

E-learning CoursesThe CzechTrade e-learning correspondence courses offer companiesa form of education which is not time-consuming and is affordable in terms of cost.

How to Make a Bid for the World Bank ProjectSince March 2008 there has been an e-learning course called How to Make a Bid for the World Bank Project, available free of charge onthe CzechTrade Internet website, which explains how to participate in the World Bank selection procedures, choose the right tender and make a competitive bid.

International Trade SpecialistInternational Trade Specialist is an e-learning correspondence study programme carried out by the Irish school eBSI (electronic BusinessSchool International) in cooperation with CzechTrade and IMODS o.p.s. The programme’s graduates will obtain a certificate.

Course in Business DiplomacyWithin the framework of the Export Academy, one of the twelve pro-jects of the CR 2006-2010 Export Strategy, CzechTrade organized thesecond year of the “Course in Business Diplomacy”. The course isintended for future lawyers of the business and economic departmentsof the CR representation offices and the directors of CzechTrade andCzechInvest foreign offices. 34 participants successfully passed thiscycle of 32 seminars. The course forms part of the obligatory trainingof the diplomatic corps prior to their departure and is aimed at develo-ping business skills within the field of theoretical knowledge and particularly practical skills.

Export Opportunities in 2008• In 2008, CzechTrade posted a total of 2,278 foreign demandsand 3,924 items of information on tenders and projects.

• In 2008, there were 56 successful client export cases totallingmore than 652 million Czech crowns, carried out in connectionwith information on export opportunities.

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EXPORT ACADEMY / EDUCATIONThe CzechTrade agency bases itself upon a wide range of high-quality,purposeful and systematic educational tools, meeting the needs ofCzech exporters. The thematic basis is made up of territorial know-how, experience in foreign trade and the specifics of trading abroad,with a focus on particular regions, sharing broad experience and newtrends.

Specialist and Territorial SeminarsIn 2008, the CzechTrade staff organized 29 specialist seminars, with theparticipation of 485 people. The companies showed the greatest inter-est in such seminars as “Technical Requirements for Products Exportedto Russia”, “Checking Goods of Double Use”, and “Chinese BusinessEtiquette”. CzechTrade organizes territorial seminars in cooperationwith the Ministry of Industry and Trade. Their main contribution consistsof providing up-to-date information from the heads of the business andeconomic departments of the representation offices and the directorsof CzechTrade foreign offices. In 2008, there were 19 territorial semi-nars, with of 313 participants. They showed the greatest interest in the seminars “Opportunities for Czech Companies in Belarus, Moldaviaand the Ukraine” and “Possibilities of Extending Economic Cooperationwith Spain and Portugal”. Besides open seminars and courses focusing on gaining knowledge andskills in foreign trade, CzechTrade also offers company training coursesand individual training, tailor-made for a particular client.

“Exporter’s Minimum” CourseCzechTrade organized a cycle of seminars called “Exporter’s Minimum”for the first time in 2008. The course was held in four regions of theCR (Plzeň, Hradec Králové, Brno and Přerov). It focused on raising awareness of opportunities and export-related risks with a view to increasing Czech companies’ preparedness for entering internationalmarkets by means of newly-acquired specialist knowledge and skills.249 representatives of small and medium-sized enterprises participatedin nineteen seminars.

“Successful Exporter” CourseIn autumn 2008, the second year of the course titled “SuccessfulExporter” was held under the head of the Export Academy. It offersspecialist training for the management of small and medium-sizedenterprises with preparation for doing business on foreign markets.A total of 135 people attended the nine modules of the course. The course was positively evaluated, above all owing to its great applicability in practice.

Export ConferencesIn 2008, CzechTrade organized a cycle of five export conferences focusing on selected territories in cooperation with Komerční banka.The entrepreneurs appreciated the fact that the workshops and indivi-dual consultations with the directors of CzechTrade foreign offices andthe other experts present gave them a great deal of practical adviceand experience. A total of 729 people attended the conferences.

Export Education in 2008• In 2008, organized CzechTrade 108 workshop with a total of 1,182 participants.

• The participants in the seminars and courses organized by CzechTrade evaluated their satisfaction on a scale of 1-4 (where 1 is the highest and 4 is the lowest mark). The mark achieved in 2008 was 1.25.

26

The Agency’sServices

EXPORT OPPORTUNITIESThe on-line databases of export opportunities newly posted on theBusinessinfo.cz website offer information on foreign demands, projectsand tenders, investment opportunities and foreign companies’ offers.This information is updated on a daily basis.

Since 2008, CzechTrade has provided an interactive Map of BranchOpportunities on the Businessinfo.cz website. It is a simple tool toascertain export potential in terms of the identified export opportunitiesin a selected country and a certain branch of industry.

In March 2008, Czech entrepreneurs participated in a business trip to familiarize themselves with the World Bank projects in Ethiopiaand South Sudan, which took place within the framework of the Belgian-Czech-Greek business mission. The main objective of this event was to facilitate entering the demanding sub-Saharanmarket for Czech entrepreneurs by mediating contacts at the highestlevel via the PSLO network.

Cooperation with CERNThe CzechTrade agency also mediates up-to-date information on publictenders and commissions invited by CERN on a regular basis. Since July2008, CzechTrade has also ensured the position of the ILO (IndustrialLiaison Officer), a contact person between Czech companies and theCERN headquarters. In 2008, the Large Hadron Collider (LHC) was completed in CERN, construction of which began in 2005. In thisregard there occurred a change in the structure of the branches of the declared selection procedures. The greatest volume is made up of electrical equipment and computers, followed by overground constructions and mechanical structures. In 2008, CERN declareda total of 109 selection procedures, including 26 market researches, 31 tenders and 52 demands. After a successful 2007, Czech companieswere also of use in 2008, by providing supplies totalling more than 2.3 million CHF. In 2008, the return coefficient amounted to 0.95 and was the second highest (after 2007) since 1998.

Cooperation with ESOSince 2007, Czech companies and scientific research facilities havebeen able to participate in selection procedures for equipment suppliesto the ESO (European Organization for Astronomical Research in theSouthern Hemisphere). In 2008, CzechTrade started to enlist companiesfor the ESO selection procedures and became the main contact point –it ensures the position of the ILO, the contact person between the ESOand Czech companies. Within the framework of this activity, the CzechTrade agency publicizesthe relevant ESO selection procedures, directly approaches companies,gives advice to companies while registering them in the ESO databaseand participating in given commissions. CzechTrade organizeda seminar called “ESO Industry Day I” for Czech companies in cooperation with the Ministry of Education, Youth and Sports.

29

Sources of Export OpportunitiesThe exclusive sources of export opportunities are the foreign offices ofthe CzechTrade agency, the business and economic departments of theCR representation offices abroad and the foreign representation officesin the CR. Besides, foreign demands are obtained with the help of thespecialist service called Your Czech Supplier (the on-line form for fore-ign companies is posted on the CzechTrade foreign offices’ websites).Apart from the above sources the renowned EU, World Bank and international organizations’ (CERN, ESO, and ESA) databases are alsoused to choose foreign projects and tenders.

European Development Cooperation and JPD3 Project Every year, the European Union and its member states provide morethan 30 billion euros as official aid to the developing countries. The realization of the foreign development cooperation of the EuropeanCommunities (FDC EC) is carried out within the framework of selectedgeographically or thematically focused programmes through particularprojects, in which companies, non-governmental, non-profit-makingorganizations and other kinds of subjects from the EU member statesmay participate.CzechTrade publicizes the relevant selection procedures declared withinthe framework of FDC EC, provides companies with consultancy services in the area of FDC EC, mediates information from the FDC ECsector seminars organized by the European Commission and organizesspecialist seminars dealing with the problem of FDC EC.

World Bank ProjectsIn 2008, CzechTrade helped spread information on the World Bank projects, selection procedures, new projects and activities via its repre-sentative in the World Bank (PSLO – Private Sector Liaison Officer to theWorld Bank). In the course of the year, the agency mediated a total of 705 business opportunities for companies with PSLO assistance.A new service was introduced called “PSLO Newsletter”, consisting of the regular sending (approximately twice a month) of a selection of the most interesting opportunities and news by e-mail to those interested in these projects.

JPD3 ProjectThe project was aimed at strengthening the competitiveness of Prague companies in the selection procedures and foreigndevelopment cooperation projects of the European Community.More than 600 entrepreneurs and their employees took thechance to participate in some of the fourteen cycles of seminars,two conferences and individual counselling.The project began in 2006 and ended on 31 July 2008.

28

The Agency’sServices

The following export alliances currently operate under the auspices of the CzechTrade agency

Status as of 30 April 2009.

3130

The Agency’sServices

Czech Energy Team 2007 Industrial electrical technologies 3

Czech Industrial Design and Innovation 2008 Industrial design 6

Aliance Strojírenské Technologie 2007 Technologies 6

Czech Communication Group 2008 Telecommunications 3

Audio Visual Connection 2008 System integrator, complex solutions in the area of digital media 3

First Czech Health Alliance 2008 Complex offer of medical supplies 7

Sans Souci Czech glass alliance 2009 Glass and ceramic production 8

CEITEC Cluster-bioinformatic 2009 Biotechnologies 25

CZECH ICT ACCELERATE EXPORT TEAM 2009 Information technologies 3

CzechBio 2009 Biotechnologies 20

EXPORT ALLIANCESEven if a company has built a strong position on the domestic market,it does not automatically mean that its products will also be in demandabroad. CzechTrade therefore offers organizational and assistance support to the branch associations of companies, which jointly enter or are already operating on foreign markets.The advantage for companies united in export associations lies in the fact that they may mutually complement one another with theirproducts or services, thereby receiving a much more interesting commission. At the same time, they share the costs of enteringa foreign market among the individual members of the alliance.

The project for the Development of Export Alliances is one of thetwelve key projects of the government 2006-2010 Export Strategy. It is aimed at creating an environment in which companies will be muchbetter motivated to unite their forces when entering foreign markets.

With the help of the CzechTrade agency, twenty-twoexport alliances associating 136 companies were established up until April 2009.

Name of Alliance Year of Establishment Branch/Commodity Number of Members

Czech Water Alliance 2004 Water resources management 14

Czech Water Technologies 2005 Water treatment technologies 7

Bohemia Line 2005 Wood processing machines 4

Česká dobývací technika 2003 Equipment for mining and the treatment of mineral resources 15

Czech ICT Alliance 2005 Information technologies 24

Czech NBC Team 2004 Protective working aids 11

Czech Space Alliance 2006 Aerospace industry technologies 8

Fashion Point Alliance 2005 Fashion design 6

České povrchové úpravy 2006 Surface treatment of materials 5

Metalpromtechnika 2006 Electrical engineering 4

Czech Valves Alliance 2007 Industrial fixtures for power engineering 4

Czech Health & Safety Alliance 2006 Means for the elimination of accidents, natural disasters 7and the effects of use of CBRN

Strength of PartnershipThe Czech Water Alliance (CWA) was established under theauspices of the CzechTrade agency in 2004. According to IvanNikl, the leader of the alliance, the basis of this partnership lies in that it involves active cooperation between CWA and CzechTrade, which does not consist of drawing subsidiesand expecting that someone will lead you to a commission without making any effort yourself. “Activity must always bebased on companies themselves, in this case the CWA alliance.For instance, its objective is to assess the long-term presence ofCzechTrade workers in a given country, come up with particularideas and thereby confront our possibilities with the currentsocial need to carry out the export”, added Mr Nikl.

2009

33

DESIGN FOR EXPORTSince 2008, the CzechTrade agency has offered a package of individualservices in the area of industrial design – Design for Export. The servicesare intended both for companies interested in using industrial design in production and for designers.CzechTrade has also become a member of the international organizati-ons BEDA and ICSID.

Seminars and WorkshopsCzechTrade organized seven specialist seminars on industrial design,held in Jihlava, Hradec Králové, Plzeň, Prague, Zlín, České Budějoviceand Brno, in cooperation with the regional Chambers of Industry of the CR. At these seminars, professional designers using case studiesdemonstrated the economic significance of investment in design with a view to improving companies’ knowledge and competence in the area of preparing and applying design.

Design Status Analysis in the CompanySince mid-2008, CzechTrade has offered an individual service calledDesign Status Analysis in the Company to production companies which decide to cooperate with a professional designer.Within the framework of this service, the company will choosea designer to cooperate with from the CzechTrade Designers Directory,who will recommend an effective procedure to the company on how toimprove the current status of the company with a view to starting pro-duction of competitive products. In 2008, this service was used by 37 companies. Most of the companies cooperated with the followingdesigners and designer studios: Jan Čtvtník, Michal Červa, FaktumDesign s.r.o. and Hynek Maňák.

32

The Agency’sServices

Design Status Analysis in the Company through the Eyesof the Company“We took an interest in the service called Design StatusAnalysis in the Company, but we were worried about tiringpaperwork and an uncertain outcome. But the opposite wastrue. The CzechTrade approach and minimum paperwork cameas a pleasant surprise. Negotiations were flexible and, despitethe unavoidable element of the approval process, they evenshowed genuine human interest in helping.”

Mr Vladimír Žíla, executive of Astera, the glass studio

In 2009, CzechTrade is expected to provide Czech compa-nies with some 80 services for the Design Status Analysisin the Company. A company will choose a designer fromthe Designers Directory and pay only 10,000 crowns for his/her services totalling 40,000 crowns.

Design Status Analysis in the Company through the Eyesof the Designer“I am glad that there exists a company promoting the enforce-ment of Czech design in companies. CzechTrade workersalways sent me the necessary requirements and information in time, I assess our cooperation very positively. Thanks to thisagency, several companies have already approached me withtheir selection procedures. Besides, this agency ensures certainformal essentials and legal certainty for the designer. It is goodif a project is carried out under the auspices of an organizationwhich has sufficient space for negotiations on the contract.This is very significant for a designer who has not had his/herown manager yet.”

Mrs Jana Kunstová, designer

Designers DirectorySince mid-2008, the electronic Designers Directory has served the pur-poses of the free promotion of designers and their successful projects.It also enables production companies to search for and choose desig-ners who are experienced in applying industrial design. These aremostly companies which are interested in the individual service calledDesign Status Analysis in the Company.At the end of 2008, the Designers Directory contained 51 contacts of industrial designers. Last year, the average monthly visit rate for the website with the Designers Directory totalled 366 visits, 222 of which were single.

• In 2009, CzechTrade presented Czech products at one of the most important trade fairs in the area of medical equipment: ARAB HEALTH 2009, held in UAE.

• On the occasion of the most important trade fair for furni-ture, interior design and accessories in the world – SALONEINTERNAZIONALE DEL MOBILE in Italy (held during theDesign Week Milano), CzechTrade presented an exhibitionproject called “Czech Selection”.

• During the Czech presidency of the EU Council, CzechTradeensured presentations of Czech companies’ cooperationwith leading designers at the cycle of exhibitions called“Through the Czech Eyes”, which are held in the main building of the European Commission in Brussels under the auspices of European Commissioner Vladimír Špidla.

2009

In April 2009, a total of 57 industrial and product designers were registered in the Designers Directory.

2009

2009

Industrial Design PromotionCzechTrade regularly presents companies, successfully cooperating withdesigners and manufacturing products of a high added value, as well assuccessful cases of designers’ work in magazines and the media. We offer the possibility of supporting presentations via the CzechTradeforeign offices at selected foreign trade fairs with a view to saving costsand helping in the search for business opportunities abroad. Forinstance, we presented Czech companies’ cooperation with designersat the INDEX DUBAI 2008 international trade fair for furniture andinterior accessories held in the United Arab Emirates. CzechTrade alsoensured the presentation of Czech design at the 100% Design Tokyotrade fair.

In this country, there were free specialist consultations dealing withindustrial design promotion via the CzechTrade agency, which tookplace at selected trade fairs such as the MOBITEX trade fair or “MedicalFair”, the international medical trade fair in Brno.

Seznam.cz

Finweb.Ihned.cz

Idnes.cz

Podnikatel.cz

Justice.cz

Mesec.cz

Finance.cz

BusinessInfo.cz

12%

12%

12%

13%

16%

16%

17%

22%

• In 2008, we organized 33 incoming missions, carried out withinthe framework of trade fairs on the basis of demands and specialist requirements.

• More and more contracts are being entered into on the basis of negotiations conducted during these events.

SERVICES FOR FOREIGN COMPANIESCzechTrade representatives abroad promote the good name of theCzech Republic and present not only the results of our industry but alsothe originality and quality of Czech products. Their personal experienceand knowledge of the specifics of the local environment becomes the starting point for effective communication between foreign and Czech partners.

Incoming missionsCzechTrade organizes meetings with Czech companies for those inter-ested from abroad, chosen in such a way that their character meetstheir requirements. Based on processed demands and tipped off andapproved contacts, it organizes either a visit to the selected companiesor a working meeting at the CzechTrade headquarters.

Czech Exporters DirectoryAnother tool to search for potential business partners in the CzechRepublic, serving the needs of foreign subjects, is the official databaseof Czech exporting companies – the Exporters Directory.

Business VisitsCzechTrade workers will tip off Czech suppliers for foreign companiesto meet their requirements and organize a visit to the companies theyhave chosen for them or ensure a working meeting at the CzechTradeheadquarters.

Your Czech SupplierA foreign company may enter a request for particular products or servi-ces by means of the on-line questionnaire called Your Czech Supplierposted on the www.czechtradeoffices.com website. These requests are posted on www.businessinfo.cz.

AAddvvaannttaaggeess ooff tthhee CCzzeecchhTTrraaddee EExxppoorrtteerrss DDiirreeccttoorryy• Client-friendly• Arranged according to branches• 13 language mutations• The possibility of creating files according to set criteria

35

BUSINESSINFO.CZBusinessinfo.cz, the official business and export portal, forms part of the CR 2006-2010 Export Strategy. It is also a part of the GlobalSpecification and Strategy of the Public Administration Portal (currentlymanaged by the CR Ministry of the Interior).In 2008, the portal partners included more than 30 state and non-stateinstitutions. The portal also developed cooperation with other organiza-tions, particularly upon the basis of exchanging and posting up-to-dateinformation. Businessinfo.cz became one of the projects of the so-cal-led E-government and a pillar of the Public Administration Portal in the field of information for entrepreneurs. In the course of 2008, the Businessinfo.cz portal also participated in the Smart Administrationprogramme.

SUCCESS OF THE PORTALNetwork for ExportUpon the completion of the integration of Overall TerritorialInformation (OTI), which was carried out by the business and economicdepartments of the representation offices abroad, attention was focu-sed above all on its topicality and uniform look. In technically undevelo-ped territories, OTI was entered by the portal editorial staff.Negotiations were conducted with the Ministry of Foreign Affairs onextending territorial information by means of up-to-date tourist information.

CR Presidency of the EU CouncilAt the end of 2008, the portal editorial staff created a column provi-ding factual information on the presidency of the Czech Republic of the European Union Council, with specific focus on the areas whichare of significance for the business public. Besides information concer-ning the significance, organization and basic principles of the presi-dency, it also contained an overview of the proposed priorities andobjectives of the Czech presidency, as well as business organizations’opinions.

Orienting in Legal ActsThe column containing guidelines on the selected areas of the law wascompletely redone and updated. Procedures were prepared with aware-ness of the fact that an entrepreneur need not be a legal expert butshould be aware of his/her obligations and be able to exercise his/herrights by legal means. Individual documents and commentaries aredevoted to the general specification of the relevant problem.

Tax-Related Monothematic IssuesTraditionally, income taxes are a popular issue on theBusinessinfo.cz portal. In 2008, the portal provided entrepreneurs witha supplement full of useful advice and, more importantly, smart forms,thanks to which entrepreneurs will save a lot of time and strain on theirnerves when filling in their tax return forms.

34

The Agency’sServices

TThhaannkkss ttoo ffuurrtthheerr ooppttiimmiizzaattiioonn,, tthhee sseeaarrcchh eennggiinneess vviissiitt rraattee iiss sstteeaaddiillyy mmaaiinnttaaiinneedd aatt aa lleevveell ooff 7700%%..• In the course of 2008, the Businessinfo.cz portal averagemonthly visit rate reached the stable level of 200,000 users.

• The number of registered users exceeded 15,000.

Spontaneous awareness

2009

CzechTrade OrganizationDo you know who you can approach?

CzechTrade Foreign OfficesAll the representatives of the 33 CzechTrade foreign offices have access to up-to-date and verified informa-tion from a given territory; they map business opportunities on an ongoing basis and organize presentationevents. At the end of 2008, CzechTrade had foreign offices in 30 countries in the world, operating in 35countries. See below.

List of CzechTrade Foreign OfficesEurope – Benelux (the Netherlands, Luxembourg), Bulgaria, Denmark, France, Croatia (Bosnia and Herzegovina, Macedonia), Ireland, Italy, Lithuania,Latvia (Estonia), Hungary, Germany, Poland, Austria, Romania, Russia (Yekaterinburg, Moscow, Saint Petersburg), Serbia, Spain, Sweden, Turkey, the Ukraine, Great BritainAsia – China (Chengdu, Shanghai), India, the United Arab Emirates, VietnamAfrica – EgyptNorth America – Canada, the United States of AmericaLatin America – Brazil, Mexico*The countries where CzechTrade provides its services without operating a foreign office in a given country are marked in green.Situation as of 31 December 2008

39

The main CzechTrade credo is an individual approach to each client with a view to helping to increase the turnover and exportsuccess of a company on foreign markets.

CzechTrade Export Managers in the Czech Republic (CR)The team of sixteen export managers at the CzechTrade headquartersin Prague is complemented by eight regional managers. A network oftheir regional offices, covering all of the thirteen regions of the CzechRepublic, was created in cooperation with the Chamber of Industry ofthe CR. It is aimed at mediating complex information on state supportfor exports, which not only includes information on CzechTrade servicesbut also on ČEB EGAP, the Ministry of Industry and Trade and theChamber of Industry of the CR.

38

Do you know who youcan approach?

The world is opening up. The openworld requires open systems and an open mind.

JONAS R IDDERSTRALE

CzechTradeOrganization

40

CzechTradeOrganization

CzechTrade ManagementThe agency’s management is in charge of the implementation of the pro-export strategy and the fulfilment of the CzechTrade mission. The managerial board is made up of:

Mr Ivan Jukl Managing DirectorMrs Jana Falathová Director of the department

of export opportunities Mr Aleš Řiháček Director of the department of marketing

and communicationMr Milan Ráž Director of the department of sales and strategyMr Tomáš Rak Director of the department of export services Mrs Lada Rindošová Director of the department of human resources

and EU fundsMrs Lenka Sokoltová Director of the department of internal services Mr Martin Šperl Director of the department of ICT projects

and technical supportMrs Jolana Žáková Internal auditSituation as of 30 April 2009

We Improve Our CompetenceCzechTrade builds a team of professionals and monitors their professio-nal growth. It therefore introduced the CzechTrade employees’ compe-tence profile, which is derived from the agency’s key values. The mem-bers of staff are assessed and their individual development plans areprepared on the basis of the above.

Composition of Staff According

to Age

Situation as of 31 December 2008

Composition of Staff According

to Gender

� 21-30 years

� 31-40 years

� 41-50 years

� 51-60 years

� 61 years and older

� Women

� Men

Composition of Staff According

to Education Level Attained

� Specialized secondary education

� Completed specialized education

with leaving examination

� Higher education

Results

What do last year’s figures say?

0

5000

10 000

15 000

20 000

25 000

30 000

2006 2007 2008

Revenues Generated by Services (in thousands of Czech crowns)

as in 2007, whereas the share of the agency’s resources is growing. Not only the revenues but also the extent of the use of the foreign offi-ces (the share of work on the clients’ particular commissions in the totaldisposable time of the foreign offices), which amounted to an averageof 29.6%, testify to the fact that the focal point of export promotion isshifting to the area of services with the highest added value – to thearea of foreign marketing in the form of individual commissions. Again,CzechTrade moved closer to the leading pro-export agencies of theworld, whose average extent of use reaches a level of 40%. Some ofthe foreign offices even exceeded this level. Traditionally, the Russianmarkets accounted for about two thirds of the export volume of the CzechTrade clients.

*Note: Data on the total number of clients in each year doesn´t represent the sum of client

using service categories, as shown above, but a number of single business subjects which used

a CzechTrade service at least once in a given year.

45

What do last year’sfigures say?

44

ECONOMIC RESULTS OF THE YEAR 2008From the financial point of view, the CzechTrade agency can characte-rize 2008 as a successful one. It managed to increase its revenues gene-rated by the services provided, thereby shifting the standard to the hig-hest level in history, exceeding 24 million crowns, which representsa significant twenty-two per cent increase in comparison with the previ-ous year. Services provided by the foreign offices, totalling 20.9 millionCzech crowns, had a major share in the record-breaking revenues. Theshare of export education totals 1.7 million crowns and the remaining1.6 million crowns account for the remaining revenues.

In 2008, thanks to its economical management and an increase in reve-nues, the agency achieved an improvement in its economic result total-ling 15.8 million crowns. The results testify to the fact that the statecontribution to the operation of the agency remains at the same level

Success in life does not dependon the conditions we have but on the decesions we make.

HAL URBAN

Results

CzechTrade Economic Results (in thousands of Czech crowns)

2006 2007 2008

Total revenues 275 501 260 473 267 674

Revenues generated by services 13 583 20 201 24 170

Other revenues and yields 13 853 3 065 6 423

Contribution to operation 248 065 237 207 237 081

Total costs 273 858 252 883 251 849

Total costs purchases 9 010 10 642 10 979

Services 203 267 178 755 173 968

Personal costs 43 765 49 246 53 043

Depreciation 11 677 10 822 10 583

Other costs 6 139 3 418 3 276

Economic resul 1 643 7 590 15 825

Export Success of Our ClientsThe biggest success of the CzechTrade agency is the export successachieved by its clients. In 2008, CzechTrade recorded a total of 324 successful cases which the agency was informed of by the satisfiedclients. Approximately five sixths of them are made up of the successfulcases realized by using the services provided by the CzechTrade foreignoffices. The remaining 56 cases originated from the export opportuni-ties posted on the CzechTrade Internet website and on the Businessinfoportal.

0

25

50

75

100

125

150

175

200

Russia Denmark Ireland Sweden Othercountries

GreatBritain

Number of Successful Export Cases Realized According

to Territories in 2008

0

1

2

3

4

5

6

2005

1,32

24 19 17 17

3,28

3,23

2006 2007

5,50

196

51

2008

Volume of Clients’ Export Supported by CzechTrade Services

in 2008 (in Billions of Czech crowns)

Number of clients according to their kinds

2005 2006 2007 2008

Service of foreign office 479 815 731 691

Seminar 347 281 302 473

Consultation day 0 171 412 308

The number of clients who ordered a CzechTrade paid ser-vice in the 2008 increased to 1.285.*

2005 2006 2007 2008

Total number 895 1213 1265 1285

The volume of client exports supported by CzechTrade servicesin 2008 totalled the record-breaking sum of 5.5 billion Czechcrowns.

When improving the measurement of successful cases, the agencymanaged to implement automated reporting, which contains otherinformation on the successful cases regarding products, branches and the regions of the CZ. The successful CzechTrade clients achieving the highest volumes of rea-lized exports were, among others, INCO engineering, s.r.o. (1.9 billioncrowns, mining equipment, Russia), UNISTAV, a.s. (437.5 millioncrowns, construction of a hotel complex, Russia), GALATEK, a.s. (295.5 million crowns, a paint shop, Russia), HAMÉ, a.s. (266 millioncrowns, tinned food, Romania), FRÝDLANTSKÉ STROJÍRNY, Rasl a syn,a.s. (234 million crowns, production line for thermal insulation, Russia),FANS, a.s. (155.6 million crowns, cooling technologies for refineries,Poland), PUMPA, a.s. (116 million crowns, pumps and fixtures, Russia),UJP Praha, a.s. (75 million crowns, cobalt irradiators, Egypt).

46

QUESTIONNAIRES ON SATISFACTION WITH CZECHTRADE SERVICESWe appreciate the feedback which we receive from our clients via questionnaires on satisfaction with the agency’s services. The informa-tion obtained helps us to perfect the services provided and flexibly react to the companies’ current needs.All the clients who used the services of CzechTrade foreign offices in2008 obtained an automatically generated questionnaire on satisfactionin which they were able to evaluate their satisfaction with the commis-sion realized. The average mark, with a 43% rate of return, amountedto 1.33 points on a scale from 1 to 4 (where 1 is the highest and 4 is the lowest mark).

Results

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1

RussiaRomania Poland Ukraine Othercountries

Sweden

0,33

0,27

0,25

0,15

1,00

3,55

Volume of Client Exports

Supported by CzechTrade Services

in 2008 (in billions of crowns)

Client would recommend

CzechTrade services

� 99% YES

� 1% NO

� 0% N/A

Service saved the client’s time

� 89% YES

� 3% NO

� 8% N/A

Service saved the client’s costs

� 67% YES

� 10% NO

� 23% N/A

Service allowed better decision-

making

� 74% YES

� 7% NO

� 19% N/A

The participants in the educational events organized by CzechTrade in 2008 evaluated their satisfaction by 1.25 points on a scale of 1 to 4(where 1 is the highest and 4 is the lowest mark). The rate of return of the questionnaires on satisfaction, distributed directly during the events in printed form, totalled 74%.