INVESTINPORTUGAL RIGHT PLACE. RIGHT TIME. INFORMATION TECHNOLOGY 2017 PORTUGUESE TRADE & INVESTMENT AGENCY IN SAN FRANCISCO PORTUGUESE GOVERNMENT

Transcription

1 INVESTINPORTUGAL RIGHT PLACE. RIGHT TIME. INFORMATION TECHNOLOGY 2017 PORTUGUESE TRADE & INVESTMENT AGENCY IN SAN FRANCISCO PORTUGUESE GOVERNMENT

2 Same time zone as UK and Ireland Nearest European country to the US and Canada 1 hour difference from Central European Time 3 hours difference from Moscow 3 hours difference from São Paulo Note: In reference to UTC hours YOUR ATLANTIC GATEWAY TO EUROPE

3 GLOBAL COUNTRY Leading member of the Community of Portuguese Speaking Countries - CPLP 250 MILLION PORTUGUESE SPEAKING CONSUMERS Portugal is a Member State of the European Union, a founding member of the EUROZONE and part of the EU Single Market. A platform to serve Europe, with a strategic position to access key worldwide markets. Portugal and the US have a double taxation avoidance agreement and complementary FATCA.

4 GREAT QUALITY OF LIFE You will find that Portugal is not only a good country to invest in but also a great place to visit and live in: safe, sunny, with unique nature, rich historical heritage, great gastronomy, leisure and cultural amenities, and high quality healthcare facilities. Portugal is the World's and Europe's Leading Destination Source: World Travel Awards Portugal is 14th in The Travel & Tourism Competitiveness Index Million Tourists 1 in 2016 (+9.8% than 2015). 1 Resident and non resident hotel guests. Source: INE, 15th February Portugal is 10 th Country with Lisbon is the World's the Best Weather and Climate. Leading City Break Destination. Source: The Huffington Post, Aug Source: World Travel Awards Best European Country to visit. Source: USA Today Average Temperature at noon: 77ºF (Summer) and 60.8ºF (Winter). Algarve is the Best Place in the World to Retire. Source: Forbes, Retire Overseas Index (2014). Lisbon is in The Guardian's and in Lonely Planet's 2017 top list. Porto is the European Best Destination for the 3 rd time. Source: European Best Destination, Lisbon is the 2 nd Best City to Invest. Source: Financial Times, (2014). Portugal is the 3 rd most peaceful country in the World. Source: Global Peace Index 2017 Portugal has the 9 th Best Medical Assistance. Source: IMD World Competitiveness Yearbook 2017 (Out of 63 countries)

5 ECONOMIC KEY FIGURES 3% GDP INCREASE 2017-Q2 compared to 2016-Q2 > 40% PORTUGUESE EXPORTS AS PERCENTAGE OF GDP (2016) TOP 5 CLIENTS PORTUGUESE INTERNATIONAL TRADE IN GOODS & SERVICES 2017-Q1 $Million % Total 2017-Q1 1 Spain 4, France 2, Germany 2, United Kingdom 1, United States of America 1, % UNEMPLOYMENT RATE (Sept. 2017) 20% EXPORTS TO US GROWTH 2017-Q1 compared to 2016-Q1 0.9% INFLATION RATE (July 2017) 4.4% INVESTMENT GROWTH EXPECTATION until 2019 (annually) 0.9% RISE IN EXPORTS (Historic high)

6 INVESTMENT TRACK RECORD 1,750 Mn Euros 2015 INDUSTRIAL INVESTMENT PROJECTS SUBMITTED TO AICEP 700 Mn in auto sector 2015 BOSCH, HUTCHINSON, RENAULT, VW, CONTINENTAL, FAURECIA, PSA, BORGWARNER 140 Mn Euros in aerospace SUPPLY CHAIN: EMBRAER, LAUAK, ACITURRI, CAETANO AERONAUTICAL, MECACHROME, OGMA/THALES/EDISOFT HIGHEST EUROPEAN RATE OF POSITIVE INVESTMENT INTENTIONS 59 NEW FDI PROJECTS IN 2016 (a 25.5% increase, from 2015) EY Portugal Attractiveness Survey 2017 M&A OPERATIONS MARUBENI, ALTICE, FOSUN, VINCI, STATE GRID, APOLLO, COHORT, LA CAIXA, ARAUCO, YILDIRIM, LONE STAR FUNDS AGRO-FOOD: AMY S KITCHEN, SUNDROP, DRISCOLL S LIFESCIENCES: VIFOR PHARMA, ROCHE TOURISM: SCENIC LUXURY CRUISES & TOURS, SIX SENSES, MINOR GROUP, W HOTELS 15 th LESS RESTRICTIVE COUNTRY (FDI) The Global Competitiveness Report (138 countries)

7 FIRST CLASS LOGISTICS 7 INTERNATIONAL AIRPORTS 22,000,000 Miles/year 11,000,000 tons CARGO/year 10 SEAPORTS SINES DEEP SEA WATER PORT 1,918 Mi MOTORWAY LENGTH 6# IN MOTORWAY DENSITY, OECD

8 SEAPORT LOGISTICS EXAMPLE: SINES Port of Sines: main direct lines to distant markets (Connection to other ports by feeder). MEDITERRANEAN SERVICE Bremerhaven, Le Havre, Felixstowe Hamburg, Rotterdam Antwerp, Sines, Istambul, Gemlik, Aliaga. LION SERVICE Ningbo, Shanghai, Xiamen, Yantian, Chiwan, Sines, Le Havre, Rotterdam, Antwerp, Dunkirk, Felixstowe, Valencia, Port Klang, Singapore. USNAT SERVICE Valencia, Gioia Tauro, Napoli, La Spezia, Sines, Boston, New York, Baltimore, Norfolk, Savannah, Charleston. US GULF SERVICE Barcelona, Gioia Tauro, Napoli, La Spezia, Valencia, Sines, Port Everglades, Vera Cruz, Altamira, Houston, Cristobal. CALIFORNIA EXPRESS Gioia Tauro, Civitavecchia, La Spezia, Valencia, Sines, Cristobal, Balboa, Long Beach, Oakland, Vancouver, Seattle. WAX 3 Valencia, Sines, Tangier, Abidjan, Lome, Lagos, Cotonou, Dakar. SOUTH AMERICA EAST COAST Antwerp, Rotterdam, Hamburg, Bremerhaven, Le Havre, Sines, Rio de Janeiro, Santos, Montevideo, Buenos Aires, Rio Grande, Navegantes, Itaguai. MEDCANADA SERVICE La Spezia, Barcelona, Valencia, Casablanca, Sines, Montreal.

9 BUSINESS FRIENDLY ENVIRONMENT EASE OF DOING BUSINESS Ease of Doing Business: 21 st (The Global Talent Competitiveness Index out of 118 countries) Best Countries for Business: 19 th (FORBES 2016 Ranking - out of 139 countries) Global Competitiveness Index: 46 th (World Forum Economic 2016/2017 out of 138 countries) Labor Reform: increased the duration of fixed-term contracts, reduction of severance pay, new lay-off rules; Female Labor Force: 5 th (IMD World Competitiveness Yearbook out of 63 countries) Ease of Hiring Foreign Labor: 9 th (The World Economic Forum out of 136 countries) Time to Set up a Business: less than 1 hour; Time to Start a Business: 6 th (The Global Competitiveness Report out of 138 countries) Days to Start a Business: 4.5 (IMD World Competitiveness Yearbook out of 63 countries) No. of Procedures to Start a Business: #3 (The Global Competitiveness Report out of 138 countries) No. of Procedures to Start a Business: 25 th (IMD World Competitiveness Yearbook out of 63 countries) Major public services are online and several legal obligations have been eliminated, simplified MULTI-CULTURAL Portugal is TOP 4 in Cultural Openness (IMD, 2013); Portugal is very open to foreign cultures: high availability of international schools, safety record and quality of life attracts expatriates; As a result, Portugal was ranked #2 (out of 38) in the Migrant Integration Policy Index 2015 (MIPEX III), scoring 75 out of 100

10 INTERNATIONAL BENCHMARKING Portugal has been improving its competiveness and is the 46 th most competitive country worldwide (out of 138) with positive contribution in: Technological Readiness Innovation Infrastructure Source: World Economic Forum s Competitiveness Ranking Doing Business Report 2016/17 (190 Countries) UK Germany Portugal France Spain 7th 17th 25th 29th 32nd Best Countries for Doing Business Ranking 2017 (139 Countries) UK Portugal Germany France Spain 5th 19th 21st 26th 29th Global Competitiveness Report (138 Countries) AVAILABILITY OF LATEST TECHNOLOGIES RANK UK DE FR PT ES 7th 16th 17th 22nd 40th FIRM-LEVEL TECHNOLOGY ABSORPTION DE UK PT FR ES 12th 9th 29th 33rd 53rd FDI & TECHNOLOGY TRANSFER UK DE PT ES FR 13th 17th 19th 27th 28th QUALITY OF SCIENTIFIC RESEARCH INSTITUTIONS UK FR DE PT ES 2nd 9th 11th 25th 38th UNIVERSITY-INDUSTRY R&D COLLABORATION UK DE FR PT ES 6th 8th 32nd 36th 57th

11 TOP UNIVERSITIES 18,500 students MINHO 32 R&D facilities 11 Schools AVEIRO 32,000 students 60 R&D facilities 15 Schools 47,794 students 82 R&D facilities 18 Schools 20,000 students 41 R&D facilities 9 Schools PORTO LISBON NOVA UNIVERSITY Source: Conselho de Reitores das Universidades Portuguesas CATHOLIC UNIVERSITY EVORA COIMBRA ALGARVE 14,000 students 23 R&D facilities 16 Schools 14,000 students 16 R&D facilities 20 Schools 24,000 students 40 R&D facilities 12 Schools 8,119 students 12 R&D facilities 5 Schools 9,700 students 7 R&D facilities 7 Schools

12 GREAT TALENT Students graduated 1 by field in 2014/2015 Electricity and Power Metallurgy and Metalworking Chemistry and Chemical Process Technology Other Engineering and Technical Skills Environmental Protection Technology Materials 88,625 Graduates Students enrolled 1 by field in 2014/2015 Electricity and Power Metallurgy and Metalworking Chemistry and Chemical Process Technology Other Engineering and Technical Skills Environmental Protection Technology Materials Technology Especialization Program Master's Undergraduate Undergraduate+Master's combined program Engineering and Manufacturing Industries Source: DGEEC (2016) LISBON 1 Engineering and non-engineering programs included. 76,892 GRADUATES (2015/16) 14,743 ENGINEERING GRADUATES (2014/15) NORTH CENTER 28,987 5,303 ALENTEJO ALGARVE 25,740 5,632 16,301 3,191 2, , The English Proficiency Index 2016 (72 countries) English proficiency 15 th EF English Proficiency Index for Companies 2016 (40 countries) Workforce English 8 th Proficiency IMD World Competitiveness Yearbook 2017 (63 countries) Availability of qualified engineers 11 th Language skills meeting enterprises needs 12 th Flexibility & adaptability 10 th University Education 17 th Science in Schools 20 th Public Expenditure on Education 10 th IMD World Competitiveness Yearbook 2017 (63 countries) Management Education 12 th

13 COST COMPETITIVE PORTUGAL EU SOURCE Monthly Minimum Wage Eurostat, AICEP, 2017 (PT) [Only applicable to 22 EU countries] Hourly labor cost Eurostat, 2015 (whole economy excluding agriculture and public administration) Office rent 27.7 /sqf/year 42.2 /sqf/year Office space across the world, 2014 Cushman & Wakefield Industrial land cost 4.8 /sqf/year 7.6 /sqf/year Industrial space across the world, 2011 Cushman & Wakefield Electricity cost / kwh / kwh Annual consumption: MWh 1 st semester 2015, DGEG Corporate Income Tax 21.0% 22.1% Statutory CIT rate, 1 st semester 2017

14 LABOR REGULATIONS WORKING HOURS COMPENSATION Regular working hours 8 daily working hours 40 weekly working hours Comp Time +2 hours a day 50 hours a week Increase limited to 150 hours/year Under collective agreement : +4 hours a day 60 hours a week Increase limited to 200 hours a year Annual Paid Vacation National Holidays business days Guaranteed Monthly Minimum Wage Social Security Contributions Night time work Overtime Limits: a) 175 or 150 hours/year (depending on the company s size). The annual limit might be increased to 200 hours/year by Collective Bargaining Agreement; b) 2 hours per working day. 557 EUR (mainland Portugal 14 months/ year) 23.75% Employer 11% Employee 25% additional charge (between 10:00pm and 7:00am) + 25% for the first hour % per hour thereafter on a business day + 50% for each hour on a mandatory or extra day off, or on public holidays

15 INVEST IN PORTUGAL INFORMATION TECHNOLOGY

16 INFRASTRUCTURE Spain Portugal OECD Hungary Czech Rep. Poland France Germany Infrastructures QUALITY 1 Infrastructures HEALTH 1 Percentage of fiber connections over total broadband, June % 6.7% 6.5% 17.9% 17.3% 16.8% 1. Source: IMD World Competitiveness Yearbook 2017 (Out of 63 countries) 29.7% 29.1% Connectivity IMD World Competitiveness Yearbook 2016 (60 countries) Communications technology meets business requirements UK Portugal Ireland th 7 th 7 INTERNATIONAL AIRPORTS Portugal mainland and islands Portugal has 10 airports with connections to over 160 domestic and international destinations. France 130 Czech Rep Air Transport 28 th 16 th Germany Roads 9 th Spain th Poland th Hungary Internet Bandwidth Speed per Internet User (kbps) 2016 Report Railroad Ports QUALITY of: 29 th

17 BUSINESS SERVICES IN PORTUGAL OUTSOURCING & IT INDUSTRY TREND IN OUTSOURCING EMPLOYMENT The Outsourcing and IT activities are growing fast across the country. Currently, this industry represents close to 1 billion (0.66% of GDP).

18 BUSINESS SERVICES IN PORTUGAL 50,000 NUMBER OF EMPLOYEES IN THE BUSINESS SERVICES SECTOR SOFTWARE, DEVELOPMENT CENTERS, SHARED SERVICES CENTERS, BUSINESS PROCESS OUTSOURCING, BUSINESS PROCESS MANAGEMENT 100 NUMBER OF LARGE SCALE BUSINESS SERVICES CENTERS 7 NUMBER OF FORTUNE 500 COMPANIES WITH BUSINESS SERVICES OPERATIONS IN PORTUGAL

19 BUSINESS SERVICES IN PORTUGAL BOSE UBER PANALPINA MERCEDES-BENZ SSC BPO COMPETENCE CENTER ALTRAN NOKIA SOLUTIONS SIEMENS COLT TELECOM ARMATIS CONCENTRIX IBM DAR ENGINEERING TECHNIP NORTH TRANSCOM SITEL FUJITSU CISCO FUJITSU PEUGEOT ADIDAS MICROSOFT SIEMENS BNP PARIBAS VODAFONE ALTICE LUFTHANSA EUROPCAR SOLVAY CENTER INFINEON PADDY P. BETFAIR HB FULLER CGI SUBSEA 7 EURONEXT NATIXIS VESTAS ITEN TELEPERFORMANCE SITEL WEBHELP LISBON ALTRAN NOKIA SOLUTIONS XEROX CORIANT IBM BIZDIRECT MERCER MANPOWER YAZAKI TELEPERFORMANCE TATA CONSULTANCY GFI FAURECIA ALTICE CAP GEMINI ACCENTURE

20 BUSINESS SERVICES IN PORTUGAL RECENT TRACK RECORD SIEMENS EUROPCAR VODAFONE In 2016 Siemens opened its "Cyber Security Operation Center" (CSOC) for the protection of industrial facilities, with a joint location in Lisbon, Munich and Milford (Ohio). In 2014 the rent-a-car company announced a financial shared services center in Lisbon. Currently, it employs 300 FTEs and serves more than 16 countries. In 2016 Vodafone Group opened a Competence Center for the development and management of Next Generation Television in Lisbon. Known as TV Hub, this Center will be the innovation lab creating the Television of the Future for the various markets where the group operates. TV Hub is the 3 rd Vodafone Group Competence Center hosted by Vodafone Portugal, in total, these 3 areas employ 450 highly specialized staff. SITEL The U.S. multinational opened a new multilingual service center in Porto for 500 employees in CONCENTRIX GÉNÉRATION VERLINGUE The U.S. group is expanding its operations in Portugal with a new BPO service center for technical support and customer care to serve all European countries, with staff reaching 1,000. In 2015, Génération selected Portugal to establish a shared service center for finance and accountancy with 120 jobs. 12 countries are served from the Lisbon center. WEBHELP The French Group has selected Lisbon and Porto for a BPO multilingual operation with almost 500 employees.

21 BRAGA PORTO AVEIRO Best Southern European Cities and Regions for the Future 2014/15: LISBON TOP 2 PORTO TOP 3 BEIRA AREA LISBON

22 Available & cheap office space in Western Europe Lisbon Prime: $24 /sqft San Francisco: $70 /sqft NYC Midtown: $78 /sqft London City: $86 /sqft Lisbon CBD 1: $21 /sqft (Parque das Nações) San Mateo County: $57 /sqft NYC Midtown South: $70 /sqft Paris CBD: $82 /sqft Lisbon CBD 2: $20 /sqft (Avenidas Novas) Los Angeles CBD: $42 /sqft NYC Downtown: $59 /sqft Dublin 2/4 District: $63 /sqft Porto CBD: $17 /sqft (Boavista) San Jose: $37 /sqft NYC Brooklyn: $38 /sqft Frankfurt: $49 /sqft Space currently under construction in Lisbon: 690,000,000 sqft Source: Cushman & Wakefield, Q2 2017

23 INFORMATION AND COMMUNICATIONS TECHNOLOGY Portugal: ranks 3 rd in services offered fully online ranks 4 th in reuse of user data in online forms is 3 rd in the European Union in digital skills among citizens with high formal education (ISCED 5+) is 2 nd among citizens with medium formal education (ISCED 3-4) Source: Digital Economy and Society Index (DESI) Portugal country profile 2016 IMD World Competitiveness Yearbook 2017 (63 countries) IMD World Competitiveness Yearbook 2017 (63 countries) IMD World Competitiveness Yearbook 2017 (63 countries) IMD World Competitiveness Yearbook 2017 (63 countries) Digital / Technological Skills 14 th Internet Users (per 1000 people) 15 th Communications Technology (voice & data) 10 th Connectivity of People & Firms (telecom & IT) 14 th The Global Talent Competitiveness Index 2017 (118 countries) Technology Utilization 20 th The Global Competitiveness Report (138 countries) Availability of 22 Latest Technologies nd The Global Talent Competitiveness Index 2017 (118 countries) ICT Infrastructure 31 st The Global Innovation Index 2016 (128 countries) ICT and Business 16 th Model Creation World Economic Forum 2017 (136 countries) ICT use for B2B 29 th transactions The Global Information Technology Report 2016 (139 countries) B2C Internet Use 33 rd The Global Information Technology Report 2016 (139 countries) Government success 17 in ICT promotion th The Global Information Technology Report 2016 (139 countries) ICT use and Govt. 11 efficiency promotion th

24 INVEST IN PORTUGAL DATACENTERS Secure location Networking infrastructure Quality/Price of Power Accessibility Fiscal and financial incentives

25 SEISMIC ACTIVITY The seismic activity in Portugal is rather reduced in general terms and it does not represent a threat RECENT MAJOR EARTHQUAKES IN PORTUGAL > 6.0 Most of the seismic activity occurred south and southwest of the Algarve, but with no physical impact. YEAR LOCATION MAGNITUDE 1980 Azores Island Lisbon 8.0 Seismic activity is not uniform throughout the country. In the mainland, the risk increases from north to south. The Madeira islands have a reduced risk whereas the Azores islands have a higher risk. Seismic Intensity Scale Source: Portuguese Institute of Meteorology:

26 WEATHER CONDITIONS AVERAGE ANNUAL TEMPERATURE AVERAGE ANNUAL RAINFALL Maritime climate in the north, continental and Mediterranean climates in the south. North and central regions have warm summers and chilly winters. Further south, dry summers and mild winters The average rainfall is mainly concentrated in the northern part of the country and occurs in the winter period. Source: Portuguese Institute of Meteorology:

27 WEATHER CONDITIONS (Cº) PORTO BRAGANÇA GUARDA PORTALEGRE Source: Weather Channel, Portugal Temperature Rainfall

28 ELECTRICITY INFRASTRUCTURE Interconnection Points: Exports and Imports (GWh) At the end of 2015 the National Transmission Grid (RNT) was composed of 5,500 mi of lines, 68 substations and 15 switching stations. The RNT enables power flow from production plants to the transformer substations where it is fed to the National Distribution Grid at 60 kv. The RNT also connects to the European Transmission Grid through several interconnection points with the Spanish Transmission Grid as well as delivering VHV directly to numerous consumers. Source: National Electricity Network (

29 ELECTRICITY INFRASTRUCTURE Interruptions Source: National Electricity Network (

30 WATER AVAILABILITY The AdP Águas de Portugal group plays a structural role in the environment sector in Portugal and operates in the fields of water supply and wastewater sanitation. Through its holdings, the AdP Group operates nationwide, from the north to the south, providing services to 234 municipalities that are simultaneously shareholders in the companies managing the multi-municipal systems ( upstream systems) and directly serving their populations through municipal level services ( downstream systems) for water supply and sanitation. Over the course of the last two decades, the AdP Group has invested over 7.5 billion which, in conjunction with its planning and implementation capacities, its operational and financial management experience, the development of innovative solutions and the great commitment and dedication of its staff, has enabled a major improvement in these essential public services. Source: Águas de Portugal ( Level of population coverage exceeds 97% in water supply. 99% is subject to quality control and 98% of water has good quality.

31 INVEST IN PORTUGAL STARTUPS

32 BOOMING ECOSYSTEM 4th in Fundacity s Acceleration Ranking in 2015 (measures number of startups accelerated) 10 acceleration and pre-acceleration programs LISBON: 4th Best Prospects Cities For Start-Ups (PeoplePerHour Index 2017) 25th Ranking of Startup Cities (Reuters 2016) 20 Associations of Business Angels 40 active Venture Capital firms 90+ Incubators 2 Portuguese Accelerators in the Top 20 in 2015: Beta-i (95 startups) Fábrica de Startups (35 startups) Some International players that opened office in Lisbon this year:

33 GREAT STARTUPS Naturally, Portuguese startups gain momentum and are successful The Internet of Moving Things Online platform for student housing Cloud-based call center software Online marketplace for high-end boutiques Fraud prevention software powered by machine learning Golf GPS and Scorecard App Android Appstore that competes with Google Playstore Online platform for equity crowdfunding Music streaming platform Automated Code Review GPS navigation software Human powered translation API Achieve tax Zen Learning while playing Mobile development High-productivity platform for enterprise and mobile apps Improving people s lives Credit risk modeling platform

34 GREAT STARTUPS Portugal s recent successes in the Startup scene (just to name a few) Farfetch raised $701M becoming the 1st Portuguese Unicorn Talkdesk raised $25M Series A led by DFJ, Storm, 500 Startups & Salesforce Feedzai raised $82M from Oak HC/FT, Sapphire Ventures, Data Colective & FT Partners Veniam raised $30M, Series A&B True Venture, Union Square Ventures, Verizon Ventures, Cisco Investments & Yamaha Motor Ventures Uniplaces raised $24M Series A from Atomico & Octupus Unbabel, Hole19 seedround with Ycombinator, seedcamp, Caixa Capital, etc Codacy Lisbon based, won the Web Summit Pitch Competition in 2014

35 INCUBATORS Entrepreneurship is promoted across the country from schools and research centers to companies and local authorities. Dozens of incubators support entrepreneurs on developing their business strategy, raising financing and opening market opportunities. Beta-i (Lisboa) Recognized as one of the world most active startup accelerators and by Wired magazine as the top incubator in town. Beta-I has accelerated over 600 startups. They also organize events (like Lis summit) and corporate innovation programs (like SIBS PayForward ) Startup Lisboa supports the creation of companies and track their first years of activity. Founded in 2011 by the Lisbon Municipality, Bank Montepio and IAPMEI Portuguese Agency for Competitiveness and Innovation, it's a private nonprofit association. For international startups they offer the possibility to live at their house. TagusPark (Oeiras) is a science park with 370 acres created in The Taguspark incubator hosts many startups who benefit from privileged access to R&D institutions and prestigious Portuguese engineering schools like Instituto Superior Técnico. Founders/founders (Porto) is a technology-based incubator created by founders with diverse business experiences helping each other on the scaling of their startups, based on learning by sharing, with a likeminded community. 14 startups incubated. UPTEC (Porto) is the strucuture of the University of Porto dedicated to incubate startups. UPTEC has supported more than 370 business ideas in areas as diverse as Nanosciences, Nanotechnologies, Materials and New Production, Security, Energy, Health, Food, Biotechnology, Information Technology, Publishing and Film. Porto Design Factory is a laboratory of ideas based on interdisciplinary work, applied research and industrial collaboration. Linked to the Porto Polytechnic Institute, with excellent facilities (3D printing, etc.) and integrated in the Design Factory Global Network (a network of 12 institutions from four continents) students from very different areas cooperate in the development of innovative projects through a model of education based on problem-based learning.

36 INCUBATORS Entrepreneurship is promoted across the country from schools and research centers to companies and local authorities. Dozens of incubators support entrepreneurs on developing their business strategy, raising financing and opening market opportunities. Biocant (Cantanhede) is a science park entirely devoted to biotechnology and advanced life sciences knowledge where technology is developed and applied creating value in business initiatives. It is a partnership of the Municipality of Cantanhede, the Center for Neuroscience and Cell Biology of Coimbra, the University of Coimbra and the Aveiro University. IPN (Coimbra) Incubator provides support for the early stages of new innovative, technology-based or advanced services business projects. Priority projects are spinoffs arising from the University of Coimbra and startups that ensure a strong connection to the university environment. Sanjotec (Sao Joao da Madeira) is a Science and Technology Park promoted by the municipality hosting 70 projects and 50 companies, targeting creative industries and leveraging the regional business activity and decades of excellent know-how in footwear, apparel, textile and molds. Startup Braga is an innovation hub designed to assist the inception and development of high potential entrepreneurial projects from mobile, e-commerce, medtech and nanotechnologies. In partnership with Microsoft Ventures Startup Braga provides business acceleration programs for startups with global ambitions. Has protocols with Iberian Nanotechnology Laboratory, Braga Hospital and Minho University.

37 ACCELERATORS There are a growing number of good programs in the country, some even able to attract international startups. New vertical programs in specific industries are also being launched since last year. Lisbon Challenge the flagship accelerator of Beta-i, is a pre-seed accelerator based in Lisbon that funds 10K for 1.5% equity, to help startups build and launch their product in 10 weeks. It had 185 Start-ups from 28 countries accelerated in the last 7 editions. Vodafone Power Lab helps to drive startup potential to improve relevant industries in the Telco market, through value creation, using Vodafone s technological platforms. Beta Sound System is the Porto Design Factory and Casa da Música s leading initiative to support innovation in the music industry through the entrepreneurial creation, launch and growth of music centric startups. Building Global Innovators since 2010 has accelerated 120 startups from all over the globe. With over 110M raised, 73% startup survival rate and 727 jobs created, BGI has become a reference in the global startup ecosystem and their program is developed with the support of MIT. EDP acceleration program helps to get the prototype off the ground and to run the first pilots, leveraging EDP facilities and expertise. With over 40 years, EDP is the largest Portuguese industrial group and the 3rd largest U.S. producer of wind energy. The program is specially focused in the energy sector and runs both in Lisbon and Madrid. Deloitte Digital Disruptors runned by Deloitte Digital Portugal with Beta-i was the first vertical acceleration program in Portugal. It is specially focused on digital solutions to disrupt the insurance industry in the EMEA region.

38 ACCELERATORS There are a growing number of good programs in the country, some even able to attract international startups. New vertical programs in specific industries are also being launched since last year. A 6-month startup implementation program supported by top institutions and companies, such as: Lisbon City Hall, Tourism of Portugal, Cisco, Portugal Telecom, Brisa, EPAL and Beta-i. The objective of the program is to validate solutions to improve city life in areas such as mobility. Kick up Sports Innovation Hub supports the next generation of sports entrepreneurs and enthusiasts. Started in 2017 in a partnership with Benfica (the biggest Portuguese soccer club) and Sportzone (a specialized sport retail) among others, received more than 40 applications from all over the world. A Portuguese acceleration program launched by Amorim Cork Ventures with Beta-i and based in Barcelona, it started in 2016 and received more than 200 applications. Amorim Cork Ventures mission is to foster the creation of new cork products and businesses and leverage the well established and profitable businesses of Corticeira Amorim (one of the largest, most entrepreneurial and dynamic multinationals of Portuguese origin). A 3 month program developed by SIBS (one of the largest payments processors in Europe and Africa) to disrupt the Smart Finance and Payments Industry. The first edition on 2016 received more than 100 applications.

39 BOOTCAMPS There are events all year round in Portugal with tech talks and bootcamps with different partners and themes. Here are just a few examples: A Hackathon organized by Calouste Gulbenkian Foundation to foster the development of technological solutions to real social challenges that took place on June 24th and 25 th. BIG Smart Cities is a city-tech competition to create technologies than can improve the life of those who live, work, study and visit cities. Powered by Vodafone Power Lab and Ericsson the event is hosted at sunny Cascais on July 11 th. Startup Weekends are 54-hour events designed to provide superior experiential education for technical and non-technical entrepreneurs. It is powered by Techstars and Google for Entrepreneurs. Wonda VR and Chicas Poderosas organized on June 19th and 20th a bootcamp to improve the knowledge of Virtual and Augmented Reality. Throughout the two-day event, full of fantastic attractions and amazing networking opportunities, Farfetch (the world s largest luxury e-commerce platform) challenged the best developers in Portugal to come up with new, innovative and creative solutions that could ultimately revolutionize the world of luxury fashion. It took place in September in Porto and also included a live concert. 3 days of non-stop tech talks, workshops and a 48 hour programming competition promoted by Bright Pixel. Last edition had around 150 teams participating.

40 WEB SUMMIT Portugal was the natural choice for hosting the world s biggest technology event Lisbon is where the world met in 2016 and will meet again in 2017, 2018, 2019 and More than 55,000 attendees gather for four days of legendary networking. World-class speakers, leading investors, international media and the most promising startups across the globe come together for the most important startup gathering on the planet. NASDAQ has described how a quarter of a trillion dollars worth of private internet companies gather in one room. Bloomberg calls it Davos for geeks.

41 WEB SUMMIT Much more than just a Summit LISBON, NOVEMBER 6-9, 2017

42 NEW GOVERNMENT PACKAGE FOR STARTUPS I. Ecosystem National Incubators Network National FabLabs and Makers Network Free Tech Zone Legislation Simplified Licensing for Startups A 4 year program in 3 fields: Ecosystem; Funding and Internationalization II. Funding Hiring Incentives New Financing Methods Seed Program tax relief for individual investors who purchase new shares (~$2,250-$112,000) in startups and keep them for 3 years Matching funds for VCs and BAs two matching funds to capture up to $550 million into the entrepreneurial ecosystem Startup Voucher Incubation Voucher Startup Portugal Momentum national program for recent graduates who had financial help throughout college. Includes housing, general expenses and incubation, at no cost, for one year, to entrepreneurs who present the best business ideas.

43 NEW GOVERNMENT PACKAGE FOR STARTUPS III. Internationalization Global destination for foreign startups, investors, incubators and accelerators Portuguese startups at global tech events, trade fairs Portuguese startups at official receptions and events Creation of a Portuguese accelerator of reference in Europe Web Summit 2016, 2017, 2018, 2019 & 2020 A 4 year program in 3 fields: Ecosystem; Funding and Internationalization Highlights: Enable equity crowd funding and peer-to-peer promotion Startup Portugal Calls - $170 million over 4 years Ignition and Acceleration Vouchers - $11 million for 250 companies over 4 years World-class Portuguese Acceleration Program for 200 companies in 4 years Matching funds with Business Angels - $75 million Matching funds with Venture Capital Funds - $550 million National Portuguese networks of 20 Fab Labs and 60 Incubators Portugal Free Tech Zone for cutting-edge industries (e.g.: Driverless Cars)

44 200M FUND "Co-Invest with the Best" The 2 Goals are Attract to Portugal:* 1) Venture Capital Investors to invest in Portuguese startups; 2) International entrepreneurs and startups. *Preferred Sectors: Life Sciences, Biotechnology, Digital and IT, Tourism, and Industry 4.0 (Robotics, Nanotech, IoT, etc.) A Matching Fund that aims to foster co-investment in high growth tech startups and SME in Portugal; The 200M Co-investment can be 100% of the total private financial commitment, with min 500k and max 5M; Direct financial commitment of the "200M Fund" in companies, with coinvestment and risk sharing with private co-investors; Investment in companies by 200M Fund and Co-investors shall be made simultaneously. Contact: ; invest@200m.pt

45 INVESTINPORTUGAL INCENTIVES & GRANTS

46 INCENTIVES & GRANTS Incentive instruments were revised, simplified and reinforced. NEW ADDED VALUE PROPOSAL OTHER INCENTIVES PRODUCTIVE INVESTMENT Financial incentives (Portugal 2020) Tax incentives (Investment Tax Code) R&D INVESTMENT Financial incentives (Portugal 2020) Tax incentives (SIFIDE II) HIRING INCENTIVES NON-HABITUAL RESIDENTS Flat rate for qualified expatriates Source: Portuguese Government.

47 PRODUCTIVE INVESTMENT SCOPE FINANCIAL INCENTIVES New products or services; New production methods or processes; Innovation must be at least nationwide (non SME). TAX INCENTIVES Investment projects with positive impact on innovation and jobs creation. ELIGIBLE EXPENSES Tangible Fixed Assets: machine, equipment and buildings; Intangible Fixed Assets: software, technology transfer; Training expenses. Tangible Fixed Assets: machine, equipment and buildings; Intangible Fixed Assets: software, technology transfer. NATURE OF SUPPORT MAXIMUM SUPPORT Loan: 30% of eligible expenses as an interestfree loan; 8-years reimbursement period; Cash Grant: Loan conversion of up to 60% of the incentive depending on the performance of the project. 30% Base rate Corporate Income Tax Credit from 10% up to 25% of eligible investment; Tax benefits up to a 10-year period after the conclusion of the investment. Exemption from Municipal Property Tax, Municipal Tax and Stamp Tax Transactions. Financial grants combined with tax incentives, applied to the same expenses may not exceed 25% of the eligible investment (tax credit + cash grant + loan interest saving). 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. 10% to 25% Source: Portuguese Government.

48 R&D INVESTMENT FINANCIAL INCENTIVES TAX INCENTIVES SCOPE Investment in R&D activities to develop new products/services or new production methods or processes. ELIGIBLE EXPENSES Costs with technical staff dedicated to R&D activities; Acquisition of services from third parties, including technical and scientific assistance and consulting; Purchase of scientific and technical instruments and equipment (depreciations during project); Costs associated with patents registration and acquisition. NATURE OF SUPPORT Base Rate: 25% of eligible expenses; Bonuses: up to +60 pp according to project scope and company size; Cash Grant: up to 1,000, of incentive; For incentive amount that exceeds 1, , 25% as an interest-free loan and 75% as cash grant. Corporate Income Tax Credit: Base rate: 32.5%; Incremental Rate: 50% of the increase in expenses incurred during that period compared to the average from the previous two fiscal years, up to 1,500, MAXIMUM SUPPORT Financial grants combined with tax incentives, applied to the same expenses may not exceed: 80% of Gross Grant Equivalent for Industrial Research Projects; 60% of Gross Grant Equivalent for Experimental Projects. Source: Portuguese Government.

49 HIRING INCENTIVES INTERNSHIPS TARGET Unemployed aged between 18 and 30 (inclusive), with a qualification level 3. Unemployed aged over 30 and under 45, if registered for at least 12 months at an employment center. FINANCIAL GRANT In EUROS CONDITIONS Qualification High-school Graduate (Level 3) Meal Allowance Work Insurance Salary Support* Total Monthly Support Monthly support for Total Salary. Duration: 9 Months* Vocational High-school Graduate (Level 4) Post High-School Education (Level 5) Bachelor Degree (Level 6) Master Degree (Level 7) ENTITY IN CHARGE Public Employment Service (IEFP). PhD (Level 8) * General rule Source: Portuguese Government. * General rule

50 HIRING INCENTIVES CONTRATO EMPREGO PROGRAM TARGET Unemployed people (registered at employment center for at least 6 months). Unemployed people aged under 29 or over 45, if registered for at least 2 months at employment center. FINANCIAL GRANT One time support* depending on contract type: Permanent contract** Fixed-term contract (minimum of 12 months) * Three payments ** Obligation to maintain the contract for 24 months Source: Portuguese Government. 3, , CONDITIONS This measure is not cumulative with the Exemption of Social Contributions. There are three calls during the year: February, May and October. ENTITY IN CHARGE Public Employment Service (IEFP).

51 HIRING INCENTIVES EXEMPTION OF SOCIAL CONTRIBUTIONS TARGET Young people looking for first job, aged under 30 years. Long-term unemployed (registered at employment center for more than 12 months). TAX EXEMPTION 50% Exemption from payment of Social Security Contributions [23.75%]: Young people looking for first job: 5 years support Long-term unemployed: 3 years support 23.75% CONDITIONS Exemption only applies to permanent contracts. This measure is not cumulative with the Contrato Emprego Program. ENTITY IN CHARGE Social Security. Source: Portuguese Government.

52 EXPATS TAX REGIME + World Class Talent in Portugal. TARGET Qualified Expatriates in (i) high added-value activities, (ii) scientific, artistic or technical activities, and (iii) upper management positions. INCENTIVES FOR EMPLOYEES Flat rate for Income tax of 20% ENTITY IN CHARGE Tax Authority. (plus 3.5%) for 10 years. 20% Source: Portuguese Government, IMD Report 2013, MIPEX III US PORTUGAL CONVENTION FOR THE AVOIDANCE OF DOUBLE TAXATION: FATCA:

53 TOP SUPPORT We provide free of charge Portuguese Government public service aicep Portugal Global is your one-stop-shop. Close to you, to take you further. INVESTMENT PROMOTION AGENCY ONE-STOP-SHOP AGENCY TRADE PROMOTION AGENCY TOP 1 AICEP was recognized as top investment promotion agency in National/Western Europe in the 2017 Best to Invest Top IPA Awards. Source: Site Selection Magazine. TOP 10 AICEP is one of the Top 10 Investment Promotion Agencies that best responds to requests from investors. Source: World Bank. INFORMATION CONTACTS INCENTIVES & GRANTS LOCATION HUMAN RESOURCES BUSINESS PARTNERS INCENTIVES To help you finding the site that suits your project, AICEP will introduce you multiple location alternatives and will bridge you with utility suppliers. To support in the search of human resources and professional training, bridging contacts with Portugal s employment authorities and schools. AICEP will promote contacts with local suppliers and business partners that add value to your project. AICEP will analyse your eligibility to innovation, R&D, production and employment incentives.

54 SITE SELECTION AVAILABLE INDUSTRIAL LAND The country offers a wide range of industrial areas and ready-to-use business parks, with on-site infrastructures and utilities, private or local Government-owned. Through Global Find, a web based search engine for business locations in Portugal, the following sites are identified: 10,436 plots 4,291 available plots 271 business parks AICEP can assist you with the site selection process. Fact-finding tours are organized to the best suited locations in close contact with local authorities. No Parks 1 Park 2 Parks 3 Parks More than 3 Parks

55 STREAMLINED PERMITTING Smooth setting up AICEP Environmental Authorities Land Management Authorities Regional and Local Authorities Ministries AICEP can help! The Portuguese Government launched an Investment Committee to provide permanent support to investors to facilitate the setting up of their business, mainly by providing assistance in obtaining all the permits and licenses required. This Committee consists of different stakeholders in the areas of zoning, environment, industry, etc., and they all get a global panorama of how their individual decisions impact those of others. As a result, a project timeline is agreed upon: this tool comprises all the licensing process and the legal deadlines are thoroughly monitored, as well as the institutions involved at each stage, which then results in accountability: the outcome is a rapid response from the public administration entities while overcoming procedural bottlenecks and speeding up the process.

56 OVERSEAS NETWORK & FDI SCOUTS

57 INVESTINPORTUGAL RIGHT PLACE. RIGHT TIME. Filipe Costa: Portuguese Trade & Investment Commissioner to the Western USA Olga Benquerença: USA & Canada Head of Investment - Portuguese Trade & Investment Agency