Doing Business in the Czech Republic and EU Dates and Topics

1. Doing Business in the Czech Republic and EUDates and Topics • May 17 Czech Republic 2011– Economic Overview • May 19 Doing Business in the Czech Republic - Introduction • May 20Global Company in the Czech Republic and Slovak Republic-Case of McDonald • May 24 Financial Markets in the Czech Republic and their Regulation in the Context of Global Crisis • May 25 Microsoft Business Activities in the Czech Republic • May 26Public Finance/ Health Care Sector in CR • May 31The Financial Aspects of doing Business in the EU 1 • June 2 The Financial Aspects of doing Business in the EU 2 • June 3The Financial Aspects of doing Business in the EU 3 • June 7 Solar Energy Business in the Central Europe • June 9 Prague Stock Exchange

2. ASSETS short term Cash and Marketable securities Account receivable Inventory ASSETS long term Gross property, plant & equipment Accumulated depreciation Net property, plant & equipment LIABILITIES short term Account payable Short term debt Accruals LIABILITIES long term Long term debt Preferred stock Equity Balance sheet

3. Cash and Marketable Securities • + enough alternative instruments to choose from. • - relatively high fee structure

4. Receivables • + Approaching level of standardization expected in modern business environment. • + Financing of receivables through Pledging and Factoring available. • -Cost is relatively high. • - Relatively large variability around agreed terms of payments

5. Inventories • + Introduction and use of modern methods of inventory financing (field warehouse financing, trust receipts, blanket inventory lien,etc.) • - Cost of financing relatively high • - Modern methods of inventories management (EOQ, etc.) are confined to large companies only.

6. Accounts Payables • + heightened awareness of cost of trade credit if used as a source of financing. • - too often misused as a source of financing with a disregard for buyer/ seller relationship. • - Enforcing payment discipline costly and time consuming

7. Short term debt • + Improvement in the variety of short term borrowing options from banking sector. Non Banking sector active as a lender to small and medium businesses, but costs are high. • - banks don’t analyze borrower need and tend to concentrate only on large companies with good tracking record.

8. Acquisition of plants and equipment • + Large companies use modern capital budgeting decision tools. • + Market for leases relatively well developed • - Recent government regulation intended to protect the lessee is slowing down expansion of market • - Medium size and small companies use payback method at best, if at all.

9. Long term Debt • + Corporate bond market is beginning to take off. Large corporation construct their offerings up to par with developed financial markets standards. • - Market is still too thin a for many companies too expensive. • +Needs for long term fundsserviced trough bank loans

10. Equity source of financing • + IPO’s done on the Prague stock exchange (Zentiva,ECM,Pegas, AAA Auto Group) in past four years. Hopefully, this trend will continue. • - Unfortunately IPO’s are too few and far between, even as compared with equity markets in other “new market economies” (Poland).