A place to invest A place to live

1 2h LONDON 2h FRANKFURT

2h PARIS 2h MUNICH

2h 500 km 1000 km LISBON 2h MILAN

1h MADRID Population 2,171,886 Surface Area 7,234 sq Km.

2 MAIN FIGURES

34,079€ GDP 24.6% 33.5% 1.88% per capita Industrial GDP Exports to GDP ration R&D expenditure on (119 EU28=100) (EU28=19.3%) GDP (INE)

124 1,660 0.922 30,000 Productivity per Internationalised Human Development Researchers employed person Companies Index EU28=100

3 6 REASONS TO INVEST IN THE BASQUE COUNTRY

■ Competitiveness Pole

■ Technology, Innovation, Future

■ Talent

■ A Well-connected region

■ Business-friendly Administration

■ A place to live

4 COMPETITIVENESS POLE

5 Competitiveness Pole

SOME BASQUE LEADING COMPANIES SOME INTERNATIONAL LEADING COMPANIES IN THE BASQUE COUNTRY ■ Aernnova ■ Caf ■ Arcelor-Mittal ■ Cie Automotive ■ Bombardier ■ DanobatGroup ■ Bridgestone ■ Euskaltel ■ GKN ■ Faes Farma ■ ■ Gestamp ■ ITP- Aero ■ ■ Mercedes-Benz ■ Idom ■ Michelin ■ Mondragon ■ Siemens-Gamesa

6 Competitiveness Pole

ENERGY MACHINERY & TOOLS ELECTRONICS &ICT 68,000 Jobs 12,672 Jobs 10,840 Jobs € 44,000 M € 1,690 M € 2,840 M

AUTOMOTIVE RAILWAY AEROSPACE 36,583 Jobs 14,176 Jobs 12,546 Jobs € 15,004 M € 2,600 M € 1,755 M

BIO HEALTH MARITIME ECOINDUSTRIES 6,800 Jobs 14,210 Jobs 20,000 Jobs € 1,300 M € 2,150 M € 4,000 M

7 Competitiveness Pole 68,000 Jobs ENERGY €44,000 M

“Highly dynamic cluster throughout the value chain” Basque Energy Agency: EVE Outstanding R+D+I Centers: CIC Energigune & Wind Box Oceanic Energy platforms: BIMEP & Mutriku

Leading Basque Companies: International Companies: Strategic Sectors:

• Iberdrola • Siemens-Gamesa • Smart grids • Wind power • Sener • General Electric • Wave Power • Petronor- • Schneider • Electric vehicle • Storage • Ingeteam • ABB • Oil&Gas • Concentrated solar power • Arteche • AEG Power • Energy Eficiency

8 Competitiveness Pole

12,672 Jobs €1,690 M ADVANCED MACHINERY

“The third largest producer in the European Union with 80% exports”

AFM: Advanced Manufacturing Technologies Cluster Leading Basque Companies:

ADDIMAT: Additive Manufacturing Cluster • Danobat Group INVEMA: Research in Advance manufacturing • Fagor Arrasate IMH: Vocational Training • Zayer BIEMH – Machine-Tool Biennial Trade Fair • Ibarmia

9 Competitiveness Pole 36,583 Jobs €15,004 M AUTOMOTIVE

“50% of Spain's Automotive component industry is produced in the Basque Country”

ACICAE - Automotive cluster Leading Basque Companies: International Companies:

AIC - Open Innovation centre • Gestamp/ Mitsui • Mercedes- Daimler • Cie Automotive/ Mahindra • Bridgestone • Irizar • Michelin • Maier • GKN • Batz • ZF • Matrici • Pierburg • RPK • Dana Spicer Ayra Cardam • Fagor Ederlan • NEMAK

10 Competitiveness Pole 12,546 Jobs €1,755 M AERONAUTICS

HEGAN – Aeronautics Cluster Leading Basque Companies Representative Research, development and testing: Complete value chain: Aerostructures, TIER 1 companies & spezialized suppliers: Engine, Systems and Equipment, Space • CFAA: Aeronautic Advanced • ITP, Rolls Royce Group Manufacturing Center • Aernnova • Sener • CTA: Technology Center in • Aciturri Aeronautics • Altran • Danobat

11 Competitiveness Pole 14,176 Jobs RAILWAY €2,600 M

“Basque rail industry is one of the most pioneering as a supplier of technology, equipment, engineering and construction”

MAFEX Spanish Railway Association Leading Companies:

• CAF – Construcción Auxiliar de Ferrocarriles • Amurrio Ferrocarril y equipos (Vossloh Cogifer) • JEZ (VAE GBmh : voestAlpine) • Bombardier • Talgo

12 Competitiveness Pole 14,210 Jobs MARITIME €2,150 M.

“Basque Country Maritime heritage with innovative companies”

FMV – Basque Maritime Forum: Basque representative companies: Specialization Strategy Cluster association of the basque maritime sector • Sener Naval • Offshore wind • Vicinay Cadenas • Oil & Gas

Shipyards:

• La Naval • Balenciaga • Murueta • Zamakona

13 Competitiveness Pole 10,840 Jobs ELECTRONICS & ICT €2,840 M

“Basque Hub in comprehensive electronics, IT and Telecommunications”

GAIA – Association of Electronic Representative Basque Companies: International Companies: Industries, Telecommunication and Information Technologies • Ibermática • Microsoft • Euskaltel • Vodafone • Ikor • ZTE Cybersecurity Center • Huawei • Fagor Electronics Basque Digital Agenda AD@2020 • P4Q

Fields of work: Control and regulation; Computer Hardware; Industrial Electronic equipment, instruments and components, Electronic subcontracting, Telecommunications equipment and services, Computer software/Networks/IT Services, Multimedia/Internet/Content Industry, Systems integration, Engineering (electronics, telecommunications, computing), Other Services (R&D, Innovation, Training…).

14 Competitiveness Pole 6,800 Jobs BIO HEALTH €1,300 M

“Basque bio Health-region: cooperation between the academic world, the health system and industry” Bio Health Cluster

Representative Basque Companies: Health System: R&D:

- Pharma: FAES, PRAXIS, AJL Oftalmics, • 6 main hospitals ( 4 University hospitals) • CIC bioGUNE Roxall • CIC biomaGUNE • Health Research Institutes (Biocruces& - Diagnostics: PROGENIKA-GRIFOLS, Biodonosti) Oncomatrix , Owl

- Medical Devices: Cikautxo, Createch, Bexten

- Others: Noray/Histocel

15 Competitiveness Pole 20,000 Jobs ECO-INDUSTRIES €4,000 M

“A world-class area in Europe in the field of Eco-industries and the Circular Economy” ACLIMA Cluster Association of Environmental Industries

Basque Ecodesign Center

Representative Companies: • Indumetal Recycling • Idom • FCC – Ámbito • Eko Rec • Agua

16 TECHNOLOGY, INNOVATION & FUTURE

17 Technology, Innovation & Future

“The Basque Country: A strong innovator”

Regional Innovation Scoreboard 2017 18 Technology, Innovation & Future

RESEARCHERS: +3,590 TURNOVER: 283 M€ 668 International projects

RESEARCH CENTERS

Tecnalia Ceit Ikerlan Ideko Tekniker Lortek Azterlan Gaiker Azti Neiker Vicomtech Cidetec CIC bioGUNE CIC biomaGUNE CIC nanoGUNE CIC energiGUNE

19 Technology, Innovation & Future

The activities related to the Technology Parks network in the Basque Country:

• 5.5% of the GDP • 5.4% of the employment • 5.8% of the tax revenue

Innovation Centres “BIC: Centres for the development of . AIC AUTOMOTIVE INTELLIGENCE CENTRE entrepreneurship and new innovative companies” AERONAUTIC ADVANCED MANUFACTURING CENTRE . Mentoring . BASQUE CYBERSECURITY CENTRE Funding Training . WIND POWER ADVANCED MANUFACTURING CENTRE Facilities And much more….

20 TALENT

21 Talent

‘Euskadi is the European region with the largest number of engineering graduates’ UPV/EHU – University of the Basque Country

. 5.000 papers from 2004 until 2014 (3 times higher).

. Universities as main research stakeholders (public university 2800 publications/year).

. In absolute terms Euskadi is in third position in Spain.

. Higher weight of Baque Research outcomes in international context.

Private Universities

Mondragon University

Deusto University

University of Navarra - TECNUN

22 Talent

‘Vocational Training in the Basque Country is the first EU test bed for the introduction of applied innovation learning’

. Training cycles: +140 . Vocational training certificate require in 65% of jobs . Tknika: Innovation Centre for Vocational Training . Vocational Training Strategic Agenda

23 A WELL – CONNECTED COUNTRY

24 A well-connected country

Best European Middle-Sized Region in Connectivity Financial Times fDi - European Cities and Regions of the Future Ranking 2016-2017

Strategically located in the centre of the European Atlantic Axis. This position, as a point of passage between peninsular markets and the rest of Europe, puts the Basque Country in the middle of an area that covers: . A 2.000 km corridor connecting more tan 10 EU regions. . 80 million people : 25% of the population of the Euro Zone. . More than 2 billion euro in GDP: 30-40% of GDP of the Euro Zone. . A corridor between ports: more tan 60 ports with total traffic of over 650 million tonnes per year.

25 A well-connected country

26 A well-connected country

‘The most comprehensive logistic atlantic hub in Southern Europe’ . Logistics: • Logistic Platforms • DHL Hub South Europe; UPS; FEDEX • Gateway to Europe, Iberian Peninsula and America . International Airports • Bilbao International: the leading Atlantic port in Southern Europe & Lufthansa Hub in Northern Spain • Vitoria-Gasteiz Cargo Airport: DHL Hub for Southern Europe . Ports • Bilbao • Pasajes . Motorway connected to the Atlantic corridor

27 BUSINESS-FRIENDLY ADMINISTRATION

28 Business friendly Administration

‘The Basque Country has its own system of funding, the Economic Agreement, which establishes and regulates financial and tax relations between the Basque Country and Spain’

29 Business friendly Administration

COMPANIES >50 COMPANIES <50 General rate = 24% General rate = 20% Actural rate* = 17% Actual rate* = 14%

1- REDUCTIONS IN THE TAXABLE AMOUNT 2- REBATES/DEDUCTIONS FROM THE TAX PAYABLE (UP TO 80%)

1.1- Investment in new businesses, via 60% of the investment Apply the third party’s rebate, with a Limit: 45% of the Taxable Amount incorporation or capital increase (Reserve) 2.1- Transfer of tax credits, when financing ceiling of 120% of the amount third-party R&D&i projects (64 bis) 1.2- Compensation for fostering business 10% of the increase in Equity contributed capitalisation (Reserve) Limit: 15-20% of the Taxable Amount Limit: 35% of the Tax Payable 30/50/70% of the cost of accepted 1.3- Offsetting losses in future tax years (Reserve) 10-15% of the provision R&D projects Limit: 15-20% of the Taxable Amount Limit: 70% of the Tax Payable 1.4- Licensing of industrial or 15/20% of the costs incurred by 70% of operating income Intellectual property to third parties (Patent Box) 2.2- For R&D&i activities accepted innovation projects Limit: 70% of the Tax Payable 1.5- Exploitation of own brand 5% of the production of Personally 10% of investments in R&D assets (Internal Patent Box) Identifiable Information (PII) Limit: 35% of the Tax Payable Limit: 0.5% of sales turnover

2.3- Job creation €5,000 per employee

* Estimated average value 30 Business friendly Administration

Specific incentives from the Basque Country compatible with Spanish and European Subsidies

NEW COMPANIES (START UP) START UP & LAUNCHING CAPITAL Up to € 550,000 ACCELERATION Acceleration Up to € 125,000 subsidies Participation of Basque Fondo projects in BICs (Business Taxes & Deduction + Incentives Incubation Centres)

INCUBATION FACILITIES MOBILITY Assessment for business Business Incubators & Accelerators establishment and talent hiring. at Technology Parks.

INNOVATION& INVESTMENTS INVESTMENTS INCENTIVES RESEARCH, DEVELOPMENT & COMPANY ACELERATION Up to € 935,000 Subsidies INTERNAZIONALIZATION (GAUZATU) No interest 25%-35% Taxes & Deduction + Incentives and warranties loans up to € CAPITAL (HAZITEK)Up to € 250,000 1,500,000 subsidies for individual projects Up to € 6,000,000 capital and € 1,600,000 subsidies for participation. (INDARTU) 10% Subsidy up to Strategic projects. € 3,000,000 in disadvantaged areas. (GAUZATU IE) Up to € EMPLOYMENT & TALENT ATRACTION (REINDUS) 75% loan (up to 5 times 1,000,000 (25% -35%) No equity) with a 10%-70% warranty interest and warranties loans (LEHEN AUKERA) Up to € 9,800 for a Young first contract. for industrial projects. (STRATEGIC PROJECTS) Up to € 9,000 permanent contract. (YOUTH RETURN) Up to € 12,000 permanent contract

(BIKAINTEK) Up to € 30,000 for a high qualified researcher.

31 A PLACE TO LIVE

32 A place to live

‘High levels of life quality: an education system with an extensive knowledge of international languages and an advanced universal public health care system, making it the best healthcare in Spain and one of the best in Europe’

33 A place to live

BASQUE: The oldest language in Europe

NATURE: 59 protected areas, 23% of the territory

GASTRONOMY: 32 Michelin Stars (the highest concentration of Michelin Stars in the world)

MUSEUMS:

Guggenheim Bilbao Museum Cristobal Balenciaga Museoa Artium, Basque museum-Center of Contemporary Art Bilbao Fine Arts Museum Chillida Leku Vitoria-Gasteiz Fine Arts Museum

34 SPRI Basque Business Development Agency: “Your gateway to investing in the Basque Country”

Eskerrik asko Thank you

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