Prepared by : Synovate Prague

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Czech Investment Climate Barometer
Prepared by Synovate Prague Issue
Q.II. - June 2005
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Study Background and Objectives
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Study background and objectives

• To gather the opinions of investors about the
  business environment in Czech republic on an
  ongoing basis. This report represents the 3rd
  wave of the study conducted in June 2005
• To track changes in the business environment and
  the Government's performance over a period of
  time, leading to the creation of an unbiased
  index.
• To compare results of several CEE countries
• To identify the impact of EU accession on Czech
  businesses
• To establish the BCC as a leading forum for
  communicating the voice of the multinational
  business community with strong lobbying power
  towards the government

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Methodology
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Methodology

• FORM Online self-administered web survey
• lasting approx. 10 min.
• RESPONDENTS Senior management of foreign
  companies investing in Czech republic
• SAMPLE SIZE N135 senior managers
• TIMETABLE Interviews were conducted June
  24th July 11th 2005

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Detailed ResultsBusiness Environment in the
Czech Republic
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Expectations towards business environment
In the course of the survey, respondents were
asked how they expect the business environment in
Czech republic to change within the next 6
months. Respondents answered on a scale from -3
to 3, where -3 means definitely less
favourable, 0 means the same as today and 3
means definitely more favourable. The answers
where then re-scaled and the index of Business
Environment (BE index) was calculated.
TRACK OUR INDEX OVER TIME
Average score on the scale 0-200, where 0
means definitely less favourable, 100 means the
same as today and 200 means definitely more
favourable
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BE Index by company size, activity period,
turnover and sector
More favourable
Less favourable
Company size
Active in CZ
Annual turnover
Business sector
Base 105 64 30 11
8 54 43 20
41 18 59 29 17
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Government performance
In the course of the survey, respondents were
asked how they expect the business environment in
Czech republic to change within the next 6
months. Respondents answered on a scale from -3
to 3, where -3 means definitely less
favourable, 0 means the same as today and 3
means definitely more favourable. The answers
were then re-scaled and the index of
Governments Performance (GP index) was
calculated.
TRACK OUR INDEX OVER TIME
Average score on the scale 0-200, where 0
means definitely less favourable, 100 means the
same as today and 200 means definitely more
favourable
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GP Index by company size, activity period,
turnover and sector
Making things better
Making things worse
Company size
Active in CZ
Annual turnover
Business sector
Base 105 64 30 11
8 54 43 20
41 18 59 29 17
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Czech business environment
Definitely more favourable thanin Czech
The same
Definitely lessfavourable thanin Czech
Q II 04
Q IV 04 Q II 05
Base 58
80 123
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Czech financial sector in comparison to other
CEE countries
Q6. How do you rate the Czech financial sector
in comparison to other Central/Eastern European
Countries?
N 115
CEE
Average score on the scale 0-200, where 0
means Czech financial sector definitely less
developed, 100 means the same as in Czech and 200
means Czech financial sector definitely more
favourable
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Financial sector compared to other CEE
countriesby company size, activity period,
turnover and sector
CZ better developed
CZ less developed
Company size
Active in CZ
Annual turnover
Business sector
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Czech judicial system
Completely agree
N 115
Q7. How would you rate the judicial system in
Czech? Would you agree that this is....
Neither agree nor disagree
Completely disagree
Average score on the scale 0-200, where 0
means completely disagree, 100 means neither
agree or disagree and 200 means completely agree
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Czech judicial systemby company size, activity
period, turnover and sector
agree
disagree
Company size
Active in CZ
Annual turnover
Business sector
Base 105 64 30 11
8 54 43 20 41
18 59 29 17
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Evaluation of legal information
N 115
Completely agree
Neither agree nor disagree
Completely disagree
Average score on the scale 0-200, where 0
means completely disagree, 100 means neither
agree or disagree and 200 means completely agree
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Czech Legislationby company size, activity
period, turnover and sector
agree
disagree
Company size
Active in CZ
Annual turnover
Business sector
Base 105 64 30 11
8 54 43 20 41
18 59 29 17
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Unexpected change in Czech legislation
TRACK OUR INDEX OVER TIME
Average score on the scale 0-200, where 0
means definitely less favourable, 100 means the
same as today and 200 means definitely more
favourable
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Change in legislation by company size, activity
period, turnover and sector
Yes
No
Company size
Active in CZ
Annual turnover
Business sector
Base 115 64 30 11
8 54 43 20
41 18 59 29 17
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Future investment activity in Czech Republic
Respondents answered on a scale from -3 to 3,
where -3 means definitely not, 0 means might
yes or might not and 3 means definitely
yes. The answers where then re-scaled and the
index of Future Investment Activity was
calculated.
TRACK OUR INDEX OVER TIME
Average score on the scale 0-200, where 0
means definitely less favourable, 100 means the
same as today and 200 means definitely more
favourable
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Likelihood of investing again by company size,
activity period, turnover and sector
Yes
No
Company size
Active in CZ
Annual turnover
Business sector
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Which other countries would you consider
investing in?

N 105
Average score on the scale 0-200, where 0
means definitely less favourable than in Czech,
100 means the same as today and 200 means
definitely more favourable than in Czech
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Barriers to business growth
Very significant
Neither significant nor insignificant
Very insignificant
Q II 04
Q IV 04
Q II 05
Base 58
80
103
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Sample Structure
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Sample Structure
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Sample Structure
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Thank you for your attention.