Aicep Investment
Total Page:16
File Type:pdf, Size:1020Kb
PORTUGAL Europe’s West Coast Automotive Industry STRATEGIC ATLANTIC LOCATION Nearest European country to the U.S. and Canada 5 hour difference from New York 8 hours difference from PST 1 hour difference from Central European Time Same time zone as UK and Ireland 1 MARKET PORTUGAL IS A GATEWAY 260 MILLION TO THE EUROPEAN UNION (500+ MILLION PEOPLE) AND PORTUGUESE SPEAKING THE PORTUGUESE SPEAKING COUNTRIES CONSUMERS › Portugal › Angola › Brazil › Sao Tome and Portugal is a Principe Portuguese Exports › Cape Verde founding of Goods › Equatorial member › East-Timor Guinea of the Euro. » EU › Mozambique › Guinea Bissau 74.1% 2017 2 ECONOMIC KEY FIGURES PORTUGUESE GROWTH OF THE GDP GROWTH EXPORTS AS UNEMPLOYMENT RATE PERCENTAGE EXPORTS TO THE (2017) (March 2018) OF GDP (2017) U. S. (2017) 2.7% 7.5% 43.1% 20.2% INVESTMENT INFLATION RATE GROWTH EXPORTS GROWTH $2.3bi (2017) EXPECTATION (until 2019, annually) (2017 ) 1.4% 4.4% 7.9% $5.6bi Portuguese exports to the U.S. 3 U. S. exports to Portugal - 2017 INVESTMENT TRACK RECORD ATTRACTIVE AND RELIABLE INVESTMENT DESTINATION M&A OPERATIONS Airport Infrastructure, Port Terminals, Energy, Renewable Power Assets, Electricity Grid, Water Sectors, Telecommunication, Banking, Insurance, Hospitals, Pharmaceutical, Tourism, Electronics Products, Cloud Services, Semi-conductor, Packaging, Wood-based Materials. 4 INVESTMENT TRACK RECORD INDUSTRIAL INVESTMENT : NEW AND EXPANSION BOSCH Bosch car multimedia strengthened BORGWARNER its business with $60M investment in R&D activities Expansion of existing plant to GMD produce new emission control components for the automotive New industrial unit, high pressure die industry casting components for the EBERSPÄCHER AMKOR automotive industry T e c h n o l o g y Eberspächer opens an exhaust KEMET technology plant in Portugal Expansion of an existing plant to produce new wafer level packaging Expansion of existing plant to produce solutions for the IoT market MECACHROME new aluminum electrolytic capacitors for automotive power and industrial New industrial unit for the LED lighting manufacturing of titanium parts for aircraft engines 5 Launches a Digital RECENT TRACK Delivery Hub in Lisbon "Cyber Security Operation RECORD Centre“ in Lisbon Next Generation Television Hub in Lisbon New IT development center in Porto Opens a second Delivery Centre in Portugal New R&D, engineering design center in Porto Opens new Technology Hub in Lisbon 6 ONGOING U.S. WEST COAST R&D center with UCP’s School TECH INVESTMENT INTO of Biotechnology in Porto PORTUGAL New tech center in Lisbon EMEA support center in Lisbon New South European support center in Lisbon Portugal and Cisco MoU to accelerate Portugal’s digitalization Establishing in Porto to develop solar energy system manufacturing Amazon Web Services to launch a business center in Lisbon 7 PORTUGAL’S COMPETITIVE ADVANTAGES COMPETITIVENESS 2 0 1 7 / 2 0 1 8 2017 190 C o u n t r i e s 139 C o u n t r i e s DOING FORBES BEST BUSINESS COUNTRIES FOR DOING BUSINESS P O R T UG AL REPORT RA NK ING IS BOOSTING ITS COMPETITIVENESS AND ATTRACTING #29 #19 NEW BUSINESSES 2017 2 0 1 7 / 2 0 1 8 127 C o u n t r i e s 137 C o u n t r i e s GLOBAL THE GLOBAL INNOVATION COMPETITIVENESS INDEX REPORT #31 #42 9 INFRASTRUCTURES TRANSPORT Portugal has the Quality #4 of Roads #8 Europe 13th best overall infrastructure in Quality the world. of Railroad #31 G L O B A L COMPETITIVENESS REPORT 2017 - 2 0 1 8 Quality of (137 COUNTRIES) Air Transportation #29 Quality of Ports #25 ALL MAINLAND SEAPORTS ARE CONNECTED TO THE RA IL NETWORK ON WA RD S TO SPAIN AND CENTRAL EUROPE 10 Source: OECD, World Economic Forum INFRASTRUCTURES INTERNATIONAL AIRPORTS DIRECT FLIGHTS PORTO F R O M PORTO LISBON, PORTO & 94 CITIES PONTA DELGADA with direct flights. D I R E C T FLIGHTS TO M A J O R CITIES ATLANTA LISBOA BOSTON MIAMI LISBON NEWARK NY (JFK ) 131 CITIES with direct flights. OAKLAND PHILADELPHIA PROVIDENCE WASHINGTON Source: 11 ANA/VINCI Airports of Portugal, August 2017 INFRASTRUCTURES B R O A D B A N D & CONNECTIVITY CRITERIA RANKING Connectivity #10 Integration of Digital Technology #9 EUROPE’S DIGITAL PROGRESS REPORT 2017, EU Communication Technology #10 Digital / Technological Skills #14 WORLD DIGITAL COMPETITIVENESS RANKING 2017, 63 COUNTRIES 12 INNOVATION PORTUGAL IS A LEADING COUNTRY IN PROVIDING TECHNOLOGICAL SERVICES AVAILABILITY FIRM-LEVEL FDI & QUALITY OF UNIVERSITY- OF LATEST TECHNOLOGY TECHNOLOGY SCIENTIFIC INDUSTRY R&D TECHNOLOGIES ABSORPTION TRANSFER RESEARCH COLLABORATION INSTITUTIONS #20 #28 #15 #22 #36 Today, the company has one of the largest dedicated R&D G L O B A L teams in Portugal, with over 500 highly qualified engineers COMPETITIVENESS working both on hardware and software solutions in Aveiro, REPORT 2017 - 2018 Braga and Ovar. In this way, Bosch stands not only for (137 COUNTRIES) Made in Portugal but also for Invented in Portugal. July, 2017 13 INNOVATION PORTUGAL I S A BOOMING ECOSYSTEM FOR STARTUPS Artificial AI & AR e-Commerce IoT Robotics Fintech Intelligence A Forbes top 50 Fintech companies for 2018 14 TALENT HIGH-LEVEL TALENT. FLEXIBLE. COMMITTED. ENGLISH 3 SCHOOLS IN EDUCATION PROFICIENCY THE FINANCIAL INDEX 2017 TIMES RANKING #12 Ease of finding skilled employees Portugal is high proficiency #21 Availability of TOP 50 scientists and engineers European #18 Business School #25 Quality of management schools out of 80 countries Rankings 2017 Source: Education First, English Source: European Business School Source: The Global Talent Competitiveness Index 2017. Proficiency Index 2017 Rankings 2016 FT.com 118 countries INSEAD, Adecco Group, Human Capital Leadership Institute 15 TALENT IN HIGHER EDUCATION INSTITUTIONS BY FIELD OF STUDY STUDENTS ENROLLED 115,952 AND GRADUATES 2016 | 2017 78,027 81,406 56,113 22,191 30,207 16,356 15,545 13,305 5,667 Social Science Engineering and Healthcare Science, Maths and Other sand Law Manufacturing Computers Science 16 Source: PORDATA, Ministry of Education - DGEEC Portugal TALENT INTERNATIONAL BENCHMARKING W H A T COMPANIES SAY SKILLED L A NG UA G E SIEMENS LABOUR RANK SKILLS “Portuguese people are result-oriented. If they have a problem, they deal with it. Here, workers don’t head home right when their shift ends. There is also a stable #20 #14 environment – inflation and salaries – and a good match of high tech and low cost.” P e t e r H a e n d e l , Chief Financial Officer, Siemens Portugal V E S T A S “Vestas already leads the industry in R&D investments and by establishing an additional engineering design MANAGEMENT UNIVERSITY SCIENCE IN center, we strengthen our R&D capabilities through the EDUCATION EDUCATION SCHOOLS broad pool of talent available in the Porto region.” A n d e r s V e d e l , Executive Vice President and CTO #12 #17 #20 Vestas 17 Source: IMD World Talent Report 2017, 63 countries ATTRACTIVE INCENTIVES PRODUCTIVE R&D JOB INVESTMENT INVESTMENT CREATION TAX- CREDIT TAX- CREDIT T A X EXEMPTION FINANCIAL FINANCIAL SUPPORT SUPPORT GRANT a n d : E x p a t s T a x R e g i m e ( Income Tax 20% flat rate for 10 Years) U . S . – Portugal Convention for the avoidance of double taxation 18 U . S . – P o r t u g a l Foreign Account Tax Compliance A c t ( FACTA ) PRODUCTIVE INVESTMENT FINANCIAL INCENTIVES TAX INCENTIVES New products or services; Investment projects with positive impact on innovation SCOPE New production methods or processes; and jobs creation. Innovation must be at least nationwide (non SME). Tangible Fixed Assets: machine, equipment and buildings; Tangible Fixed Assets: machine, equipment and buildings; Intangible Fixed Assets: software, technology transfer; Intangible Fixed Assets: software, technology transfer. ELIGIBLE Training expenses. EXPENSES For project with very significant creation of high qualified jobs, exceptional alternative to tangible fixed assets: wages expenses (over a period of 2 two years). Loan: 30% of eligible expenses as an interest-free loan; Corporate Income Tax Credit from 10% up to 25% 8-years reimbursement period (including 2 years grace of eligible investment;Tax benefits up to a 10-year NATURE period); O F S U P P O R T period after the conclusion of the investment. Cash Grant: Loan conversion of up to 60% of the Exemption from Municipal Property Tax, Municipal Tax incentive depending on the performance of the project. 30% * and Stamp Tax Transactions. 10% TO 25% Financial grants combined with tax incentives, applied to the same expenses may not exceed 25% of the MAXIMUM eligible investment (tax credit + cash grant + loan interest saving). SUPPORT For projects located in Lisbon and Algarve regions, only investments in new activity are eligible up to a limit of 10% of the eligible investment (part of Lisbon region, including Lisbon, is not eligible for incentives). Source: Portuguese Government 19 *Base Rate R&D INVESTMENT FINANCIAL INCENTIVES TAX INCENTIVES SCOPE Investment in R&D activities to develop new products/services or new production methods or processes. Costs with technical staff dedicated to R&D activities; Acquisition of services from third parties, including ELIGIBLE technical and scientific assistance and consulting; Purchase of scientific and technical instruments and EXPENSES equipment (depreciations during project); Costs associated with patents registration and acquisition. Base Rate: 25% of eligible expenses; Corporate Income Tax Credit: Base rate: 32.5%; NATURE Bonuses: up to +40pp according to project scope; Incremental Rate: 50% of the increase in R&D expenses 100% Cash Grant: up to €1,000,000 of incentive; incurred during that period compared to the average O F S U P P O R T For incentive amount that exceeds €1,000,000, 25% from the previous two fiscal years, up to €1,500,000.