Automotive Sector

2013 Content

Portugal

Portuguese Auto Industry

aicep Portugal Global

2 PORTUGAL IS A BUSINESS OPPORTUNITY

Why choose Portugal? Strategic location

Portugal is the European nearest country to the U.S. 3-hour distance between Brazil and Russia. Same time as UK and Ireland.

Attractive Consumer Market

Portugal 10,6

Iberian Market 51 Great and privilege economic relations European Market 494 between Portugal and Brazil, Angola and Mozambique. Portuguese Speaking countries 220 Daily flights to major European cities. Million Inhabitants

Why choose Portugal? Qualified Workforce

Flexible labour lawHigh-standard educationWide availabilityPartnerships with world-class US institutions

Portugal has a highly skilled and educated 71,7% workforce. Portugal ranks on Top within the EU countries in number of PhDs per 1,000 inhabitants. 43,6 11,3 40% of students in tertiary education are enrolled in engineering, sciences and health. The increase rate in the last 3 years is about 30%. Working Days Lost 42% (per 1.000 employees – EIRO, 2005- Portuguese are known for commitment to 2009) At least 1 23% language At least 2 work which places us below the EU average languages regarding working days lost per year. 6% At least 3 Language skills: English, French and Spanish languages are the most spoken languages. English is universally taught from 1st grade.

Why choose Portugal? Competitive Costs

Portugal is still cost competitive according to international recognized sources. There was a decrease of -1,2% in hourly labour costs in 2012 Q1 (Euro 27 rose by +2,0%). In terms of real estate – industrial space - and within 53 countries/cities worldwide, Portugal/Lisbon is the 8th less expensive location. Portugal also has one of the lowest monthly minimum wage in Europe (485€).

+1,5 12,4 4,0 1,5 100 11,4 3,4 87

-1,2

Electricity Natural Gas Labour Cost Index Cost of Living (Prices for industries in (Prices for industries, in €/GJ – (Year-on-year rate of change – (HFC 2011 - Eurostat) €/100kWh – Eurostat 2012 Eurostat 2012 S1) Eurostat 2012 Q1) S1)

Why choose Portugal? Technological Infrastructures

0,72 0,38 FULLY DIGITALIZED

Telecom Prices Euro/10 min call Eurostat 2010 Telecommunications have been a major priority in Portugal. The country has now 95% coverage The percentage of fiber connections in total of broadband infrastructures. broadband is already 6% for Portugal, The net increase in the ahead of countries such as Netherlands, broadband penetration growth for Finland, France, Spain, Italy, Poland, Portugal is above the OECD Austria Germany or Belgium. average (Dec 2010). The Internet is also well developed. Portugal is a United Nations case study in terms of e-Government and its availability of public services on-line.

Why choose Portugal? Office Space available

Portugal offers a dynamic real estate market. High quality space, well designed and energy efficiency oriented has boomed and rent prices are competitive comparing the other European countries.

Portugal is ahead of Office space Industrial space countries such as France and Spain in terms o 915 123,5 cost. The figures are 439 79,2 290 52,2 shown for Lisbon. If we considered Porto area, prices can lower 25%.

Occupancy cost, in €/sqm/year, C&W2013 Occupancy cost, in €/sqm/year, C&W2011

Why choose Portugal? Business friendly environment

MULTI-CULTURAL

Portugal is very open to foreign cultures: the availability of international schools, EASE OF DOING BUSINESS the safety record and quality of life attract expatriates.

• Major public services are on-line; As a result Portugal is ranked #2 in the Migrant Integration Policy Index 2011. • Portugal is considered by the United Nations, a case study in e- Government; “Portugal is unique in attracting young • Average time to set up a firm is less graduates and executives.” Carlos than 1-hour Brazão, Cisco Portugal

Why choose Portugal? They chose us

MANUFACTURING SERVICES

“ One of our main strategic lines was always to shorten Our decision is a result of the recognition of the hospitality and distances with the academic world and to bet in strong innovation, the commitment of the Portuguese Government, of the multilingual skills of the investigation and development in Portugal thus taking advantage of the local population“ as well as its professionalism and ability, and proven success Portuguese engineer’s excellence. in innovation areas.” João Picoto, Chairman of Nokia Siemens Networks Chris Dedicoat, Senior Vice-President for Europe, Cisco Portugal ” ” Why choose Portugal? Auto Industry in Portugal Portuguese OEM in the Portuguese Market

Toyota / Salvador Caetano Products: Hiace; Dyna Production 2012: 1,381 units

Porto PSA Peugeot Citroen Products: Berlingo e Partner Production 2012: 43,940 units Mangualde

Mitsubishi Trucks Products: Canter Production 2012: 4,117 units Tramagal Isuzu/VN Automóveis Products: Grafter Vendas Production 2012: 1,573 units Novas Palmela AutoEuropa Products:VW Sharan; Seat Alhambra; Eos, Scirocco Production 2012: 112,550 units

Source: ACAP - Associação Automóvel de Portugal Portuguese Automotive Industry Vehicles Production

VEHICLES PRODUCTION IN PORTUGAL BY TYPE, 2012

115,735 115,089 Total Key Figures 2012 Export

Nº Companies 5

Vehicles Produced 163,561

Exports (%) 97,8%

43,831

41,038

3,995 3,850

Cars Light Commercial Heavy Bus Vehicle

Source: ACAP - Associação Automóvel de Portugal Portuguese Automotive Industry Export Destinations

VEHICLE EXPORT DESTINATIONS

Italy 2.3%

Spain 4.3%

Austria 5.9%

United Kingdom 7.2%

France 15.5%

Germany 22.3%

Others 36.5%

Source: ACAP - Associação Automóvel de Portugal Portuguese Automotive Industry Vehicles Production

VEHICLES PRODUCTION IN PORTUGAL BY OEM 2011-2012

140,000

120,000

100,000

80,000 2012 60,000 2011

40,000

20,000

0,000 Autoeuropa Peugeot - Mitsubishi Isuzu / V.N. Toyota Citroen Truck Automóveis Caetano

Source: ACAP - Associação Automóvel de Portugal Portuguese Automotive Industry Vehicles Production

NUMBER OF VEHICLES BY OEM AND TYPE, 2012

Heavy LCV TOTAL Cars Bus

VOLKSWAGEN (Autoeuropa) 112,550 n.a. n.a. 112,550

PEUGEOT-CITROEN (PSA) 3,185 40,755 n.a. 43,940

MITSUBISHI Trucks n.a. 1,451 2,666 4,117

TOYOTA (Salvador Caetano) n.a. 1,331 50 1,381

ISUZU (VN Automóveis) n.a. 294 1,279 1,573

TOTAL 115,735 43,831 3,995 163,561

Source: ACAP - Associação Automóvel de Portugal Portuguese Automotive Industry Automotive Suppliers

AUTO COMPONENTS INDUSTRY EVOLUTION

8

7,533 7,102

6

6,585

5,984

Key Figures 2012 6,236

5,714

4 5,220

5,188

4,717

Nº Companies 177 Million

Turnover 7,102 M€ 3,933

Exports (%) 80.5% 2 Employment (ap.) 41,000

Portuguese Owned 48.6% 75.6% 75.8% 79.3% 79.4% 80.5% 0 2008 2009 2010 2011 2012*

Turnover Exports % Exports

•Estimates •Source: AFIA – Associação de Fabricantes da Indústria Automóvel, June 2013 Portuguese Automotive Industry Automotive Suppliers

AUTO COMPONENTS INDUSTRY IN PORTUGAL . The components industry grew 200% in the past 15 years; . Main Customers are the major OEM: BMW, Daimler, Fiat / Chrysler, Ford, GM, Mitsubishi, Nissan, PSA Peugeot Citroën, , Toyota, Volkswagen; . Main Tiers One located in Portugal: Aspöck, Benteler, BorgWarner, Bosch, Coficab, Continental, Delphi, Faurecia, Gestamp, Huf, Kirchhoff, Mahle, Preh, Renault, Sakthi, Saint-Gobain, SAS, TRW, Tyco, Visteon, Yazaki; . Main Portuguese owned companies: Cabelauto, Caetano Coatings, Celoplás, Coindu, Couro Azul, Epedal, ERT Têxtil, Fehst, Iberomoldes, Inapal Metal, Inapal Plásticos, Incompol, Manuel da Conceição Graça, Microplásticos, Prenso Metal, Schmidt Light Metal, Simoldes, Sodecia, Sunviauto, TMG, Veneporte. . The quality of Portuguese suppliers have reached international standards, all companies have already quality certification ISO 9001 and the majority achieved the technical specification for the automotive industry ISO/TS 16949 and the environmental certification ISO 14001; . Activity sectors include: electrical and electronic equipment; infotainment; interiors; exterior; chassis, brakes, suspension, steering wheels and wheels; power train; engines and components and others.

Source: AFIA – Associação de Fabricantes da Indústria Automóvel Portuguese Automotive Industry A Competitive Framework for New Mobility Concepts

Portugal benefits from the first national wide, fully interoperable electric mobility system, based on Portuguese innovation and technology, where any user can charge any vehicle at any of the more than 1,100 charging points operated by any company with a single subscription.

Joining efforts between automotive, energy and ICT companies and R&D, Portugal is a natural environment for the development and testing of new mobility solutions and services adapted to the future of cities, mobility and energy systems.

An emerging cluster around new mobility concepts and services is generating world leadership of Portuguese companies and attracting the partnership of large corporations, such as Siemens or Oracle, reshaping the traditional automotive cluster itself.

Source: CEIIA Portuguese Automotive Industry R&D and Training

CEIIA - CENTER FOR EXCELLENCE AND TRAINING ACADEMY INNOVATION IN THE AUTOMOTIVE INDUSTRY

• It promotes the growth of Portuguese companies in ATEC is a training leading organization serving mainly international supply chains operating in the mobility the automotive and IT industry in many areas; Its industry. It comprises an engineering center unit and mission is to develop and improve competences through training. Its facilities include computer and mecatronic a mobility cluster management unit; labs, automation and robotic labs and a welding center. • It gathers companies, R&D institutions, Public entities, universities and international organizations; ATEC is the certifying body for training in the • It is focused in product and process development in EPLAN tool. areas such as design, styling, virtual reality, reverse ATEC has certified its home automation engineering, prototyping and composites; training centres in Lisbon and Porto in • Projects involved: Pininfarina projects, electric bus accordance with the Konnex standards and has development, Electric Vehicles, electric recharging also certified its home automation training team. stations project. ATEC is a CISCO Academy: it has launched the CISCO networking equipment to trainees allowing them to obtain Cisco certification and DESIGN VIRTUAL REALITY STYLING has introduced the Cisco Certification Program. ATEC is part of Microsoft IT Academy: ATEC offers the widest range of Microsoft courses providing international Microsoft curriculum. ISO 14001 and ISO 9001 Certification

Find more at www.ceiia.com Find more at www.atec.pt Portuguese Automotive Industry Recent Track Record

Peugeot –Citroen plant in Mangualde recently announced 21 M€ of investment aimed to increase productivity. It employs currently 870 people with a turnover of 410 M€.

Renault CACIA plant has a new investment project of 16,6 M€ to reinforce production capacity in the medium and long-term, retaining its 1005 jobs.

Volkswagen plant - Autoeuropa – located in Palmela has recently invested 49 M€ in a new project to increase production quality and productivity. Turnover has achieved 2,246 M€ and the employment 3,600.

The French Group Faurecia has a 14M€ -investment project in one of the 8 plants located in Portugal, to increase productivity and production quality. This factory employs 345 people and has a turnover of around 250 M€.

The German company Continental is currently investing 83 M€ in the Portuguese tire plant on na expansion project for production of new products, creating 97 new jobs. Portuguese Automotive Industry Lithium for electric vehicles batteries

Portugal is the TOP lithium producer in Europe

LITHIUM: World Mine Production

Source: U.S. Geological Survey, Mineral Commodities Summaries, January 2012

Preliminary studies are forecasting that Portugal has an estimate reserve of 2 - 10 Million Tons of lithium to be explored in the near future. aicep Portugal Global aicep Portugal Global

We are a Business Development Agency, focused on the development of a competitive business Who are we? environment that contributes to the international expansion of the Portuguese Economy.

Increasing the country’s competitiveness, Mission promoting large private investment and fostering the internationalization of Portuguese companies.

Focus on clients. We serve our clients in accordance to their requirements through various solutions and long-term relationships. Selectiveness. We direct our activity towards projects and markets that Values make a better contribution to company competitiveness and the sustainability of the Portuguese economy. Excellence. We seek to exceed expectations by means of a rigorous approach, effectiveness, enthusiasm and a willingness to innovate. About Us aicep Portugal Global: how can we help you?

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Pre- Incentives Settling In After Care Investment Negotiation

Single point of contact Dynamic in all phases: pre- approach investment, incentives focused on the negotiation, settling in client or investor and after care

Promoting a direct negotiation Government with companies, through which a business entity, tailored approach to incentives flexible, free of may be applied in order to define charges and a global package that fully streamlined services satisfies the investor's needs www.portugalglobal.pt