Moroccan Association for and Trade Moroccan Automotive Industy : opportunities and perspectives

Salma ADNAN, Communication and Marketing Responsible Paris, 16/10/2013 L’industrie automobile au Maroc, une évolution progressive Signing of an agreement Convention sur les Start of between Government and Creation of VUL avec Logan Renault Tangier-Med project SOMACA Adoption of integration/ &PSA production Compensation law

1960 1970 1982 1995 1996 2003 2005 2007 2008 2012

Valuation Law Agreement on Low Privatization First exports Cost Vehicles with Start of the of Somaca of Logan 1st line RTM

Renault Tangier-Med project in Melloussa 360 0000 vehicles by 2014 (170 000 in 2012) Suppliers’ network development

•World class infrastructures and services • Skilled human ressources and training support • an offer with competitive incentives An overview on current Situation:

. Major project : Renault Investment in Tangier

 400,000 cars per year to be produced Production in 2013 (200.000 in 2010)  Capacity: 60 cars per hour Renault is developing a mega siteCenter in the  6.000 Direct Employment Employment North Area of  30.000 + Indirect Employment

‘’The most competitive site of the Group’’ Investment  Total Investment: 1 Billion €

Site  280 Ha to create major Renault site

 ~44km to Europe Situation  ~30km to Tangier Med port  Locking to Highway

 Car carrier terminal in Tangier Med Port Logistics  Easy access to a huge containers traffic

3 Car Manufacturing in morocco

Tangier I Tangier II SOMACA North zone

South zone

Production capacity : TANGER : 400.000 vehicles/year SOMACA : 60.000 vehicles/year Suppliers in Morocco

Tangier Tetouan Kenitra Casablanca North Zone

South Zone

5 Automotive Industry structure in Morocco

Providers

Subcontracters

Tier 1 Suppliers

Cars Manufacturers Constructeurs South Europe 6 Figures of the automotive sector in Morocco

Exports (Millions Euros)

2702,4 2336,1 1827,6

1195,8

2009 2010 2011 2012

Year 2009/2010 2010/2011 2011/2012

evolution + 52,8% +27,8% +15,7% rxmt oaptnilmarket potential a to Proximity 0 000 200 17% Annual vehicles vehicles A MOROCCO MOROCCO market EUROPE growth f42millions 4,2 of n2015 in • • Advanced The E uropeen ttswt h uoenUnion European the with status Fast TUNISIA Market - growing LIBYA 4k far km 14 , MIDDLE EGYPT AFRICA region + EAST

JORDAN Integrated Moroccan offer

To support this strategy and achieve tangible results, The PNEI ( Industrial Emergence National Plan) suggests an integrated offer aiming at the development of the investments in the automotive sector; it is based on three components :

• Infrastructures and services world class

• Qualified Human Ressources and training support

• Offer with competitive incentives Worldclass infrastructures &Services : A diversified range of real estate with best international standards within Integrated Industrial Plateforms (P2I) World-class Infrastructures and Services

Government Single Point of Contact in interest the Zone (Territorial development) Competitive Incentive package

Attractive Training P2I incentive scheme

Proactive plan for the sector

P2I : an integrated vision of territorial development R &D and the national economy Integrated logistical platform Professionnals interest (Pool of employment, Logistic linking to the City logistics, etc.)

Housing and life scheme Worldclass ifrastructures & Services : Two Integrated Industrial Platforms dedicated to the automotive sector : Kénitra & Tangier

Tangier Automotive City (TAC) Atlantic Free Zone (AFZ)

11 Pool of competitive ressources and training support : A Training incentive scheme, adapted to the needs of the automotive sector :

 Training of 70.000 profiles (of whom 6 000 at the charge of Renault) in the automotive sector to accompagny its developpement: ● 3 500 engineers and managers Objectives ● 4 800 intermediary trainers ● 7 800 technicians ● 48 000 operators

Action’s axes

 Elaboration of a Training incentive scheme for the automotive sector.  Breakdown of staff on key training existing public and private systems, including Higher Education, Training and Learning System, Technical Education, private institutions for skills training funded through ANAPEC  Follow up and up dating of training program

 Exemptions of payroll taxes for 24 month for a salary of 550 $ per month;  Direct support to training during the first Three years

1 2 incentive plan for the sector

Attractive incentives plan for the sector

 Significant reduction of the corporate tax: complete exemption for the first 5 years, and 8.75% for the following 20 years in the free zone

 No VAT Applied either in Importation & Exportation

 No Taxes on Dividends (vs. 10% for locals)

 Financial support for the establishment in key areas:

– 30% of Professional Building costs: with a ceiling of 182€/m² – 10% equipment costs for machinery investment exceeding 220.000 € – Ceiling: 1.8M Euros (or 10% of total investment)

Average Tax Rate: 7% over 25 Years

1 3 AMICA’s Presentation AMICA assists the automotive suppliers by representing them before government economic and administrative institutions acting in :

1 Export Suppliers Upgrading 2 promotion 3 4

Investment attraction Training development Automotive Training Institutes (IFMIA) in Morocco

Tangier

Kenitra

Casablanca

Fès

A global investment of 314 millions Euros

15 Automotive Training Institutes (IFMIA) in Morocco

IFMIA of Casablanca: 9 520 sqm Workshops 3 820 sqm Classes 1 960 sqm

Administration 2 180 sqm

Students residential 1 560 sqm

16 AMICA’s Events

17 Contact details :

Salma ADNAN Communication & Marketing Responsible [email protected]

(Association Marocaine pour l’Industrie et le Commerce de l’Automobile) 625, Bd. Mohamed V-20310 Casablanca-Maroc Tél : +212 (0) 522 24 28 82 +212 (0) 522 40 38 33 Fax :+212 (0) 522 24 85 81 Thank you