PORTUGAL Europe s West Coast

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1 PORTUGAL Europe s West Coast Information Technology

2 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

THE PORTUGUESE SPEAKING COUNTRIES Portugal

3 MARKET PORTUGAL IS A GATEWAY TO THE EUROPEAN UNION (500+ MILLION PEOPLE) AND THE PORTUGUESE SPEAKING COUNTRIES Portugal is a founding member of the Euro. Portuguese Exports of Goods» EU 74.1% MILLION PORTUGUESE SPEAKING CONSUMERS Portugal Brazil Cape Verde East-Timor Mozambique Angola Sao Tome and Principe Equatorial Guinea Guinea Bissau 2

4 ECONOMIC KEY FIGURES GDP GROWTH (2017) UNEMPLOYMENT RATE (March 2018) PORTUGUESE EXPORTS AS PERCENTAGE OF GDP (2017) GROWTH OF THE EXPORTS TO THE U. S. (2017) 2.7% 7.5% 43.1% 20.2% INFLATION RATE (2017) INVESTMENT GROWTH EXPECTATION (until 2019, annually) EXPORTS GROWTH (2017 ) $2.3bi 1.4% 4.4% 7.9% $5.6bi 3 Portuguese exports to the U.S. U. S. exports to Portugal

BUSINESS SERVICES IN PORTUGAL BOSE UBER PANALPINA MERCEDES-BENZ SSC BPO COMPETENCE CENTER ALTRAN NOKIA SOLUTIONS SIEMENS COLT TELECOM ARMATIS

LUFTHANSA EUROPCAR SOLVAY CENTER INFINEON HB FULLER PADDY P.

5 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 HB FULLER PADDY P. BETFAIR 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 4

6 BUSINESS SERVICES IN PORTUGAL E M P L O Y M E N T: 50, % E M P L O Y M E N T IN IT A N D E N G I N E E R I N G I NDUSTRY G ROWTH 21% I n c r e a s e o f n e w s i t e s i n t h e l a s t 2 y e a r s N U M B E R OF L A R G E SCALE BUSINESS S E R V I C E S : 100 N U M B E R O F S I T E S : nd HIGHEST R A T E OF ENGINEERING G R A D U A T E S IN EUROPE UTC Source: AICEP

RECENT TRACK RECORD Launches a Digital Delivery Hub in Lisbon "Cyber Security Operation Centre in Lisbon Next Generation Television Hub in Lisbon New

7 RECENT TRACK RECORD Launches a Digital Delivery Hub in Lisbon "Cyber Security Operation 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 6 Opens new Technology Hub in Lisbon

8 ONGOING U.S. WEST COAST TECH INVESTMENT INTO PORTUGAL R&D center with UCP s School of Biotechnology in Porto 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

AFFORDABLE OFFICE SPACES IN WESTERN EUROPE Lisbon Prime: $24 /sqft San

Lisbon CBD 1: $21 /sqft (Parque das Nações) Lisbon CBD 2: $20 /sqft

/sqft Los Angeles CBD: $42 /sqft San Jose: $37 /sqft NYC Midtown South:

/sqft Dublin 2/4 District: $63 /sqft Frankfurt: $49 /sqft Space

9 AFFORDABLE OFFICE SPACES IN WESTERN EUROPE Lisbon Prime: $24 /sqft San Francisco: $70 /sqft NYC Midtown: $78 /sqft London City: $86 /sqft 8 Lisbon CBD 1: $21 /sqft (Parque das Nações) Lisbon CBD 2: $20 /sqft (Avenidas Novas) Porto CBD: $17 /sqft (Boavista) San Mateo County: $57 /sqft Los Angeles CBD: $42 /sqft San Jose: $37 /sqft NYC Midtown South: $70 /sqft NYC Downtown: $59 /sqft NYC Brooklyn: $38 /sqft Paris CBD: $82 /sqft Dublin 2/4 District: $63 /sqft Frankfurt: $49 /sqft Space currently under construction in Lisbon: 690,000,000 sqft Source: Cushman & Wakefield, Q2 2017

10 STARTUPS P O R T U G A L I S A B O O M I N G E C O S Y S T E M F O R S TA R T U P S Artificial Intelligence AI & AR e-commerce IoT Robotics Fintech A Forbes top 50 Fintech companies for

11 BOOMING ECOSYSTEM 130 Incubators 40 Active Venture Capital 20 Business Angels 20 Acceleration and preacceleration programs 10

INFORMATION TECHNOLOGY SUCCESS STORIES A

different sectors, having developed solutions

SISCOG develops systems for resource planning

Systems in use at the London Underground and

delivered Multibanco ATM machines currently

The Multibanco system has more functionalities

VISION BOX developed the Portuguese Electronic

12 INFORMATION TECHNOLOGY SUCCESS STORIES A leading data science company shaping the future of fraud detection in commerce. CRITICAL SOFTWARE creates software for different sectors, having developed solutions for NASA and for the European Space Agency. SISCOG develops systems for resource planning and management in railway. Systems in use at the London Underground and railways of Finland, Norway, Denmark, and The Netherlands. Interbanking net system created by SIBS, delivered Multibanco ATM machines currently used all around. The Multibanco system has more functionalities than ATMs in other countries. VISION BOX developed the Portuguese Electronic Passport, being the first company to create biometric data collecting machines. NDRIVE, the Portuguese company which created the world s first GPS navigation system with aerial photographs. 11

13 NEW GOVERNMENT PACKAGE FOR STARTUPS Startup Portugal acts to develop the Portuguese entrepreneurial ecosystem. Take a look at this infographic and get to know about what the Portuguese startup community has been up to in the last year. 12

HOME OF THE WEB SUMMIT Lisbon is where the world met in 2016 and 2017 and will meet again in 2018, 2019 and 2020. More than 60,000 attendees gather for four days of legendary networking.

14 HOME OF THE WEB SUMMIT Lisbon is where the world met in 2016 and 2017 and will meet again in 2018, 2019 and More than 60,000 attendees gather for four days of legendary networking. Worldclass 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. Lisbon, November 5-8,

15 PORTUGAL S COMPETITIVE ADVANTAGES

16 COMPETITIVENESS / C o u n t r i e s DOING BUSINESS REPORT # C o u n t r i e s F O R B E S B E S T C O U N T RI ES F O R D O I N G B U S I N ESS R A N K I NG #19 P O R T U G A L I S B O O S T I N G I T S C O M P E T I T I V E N E S S A N D A T T R A C T I N G N E W B U S I N E S S E S C o u n t r i e s GLOBAL INNOVATION INDEX # / C o u n t r i e s THE GLOBAL COMPETITIVENESS REPORT #42 15

Europe Quality of Railroad #31 Quality of Air Transportation #29 Quality of Ports #25 16 A L L M A I N L AND S E A

17 INFRASTRUCTURES T R A N S P O R T Portugal has the 13 th best overall infrastructure in the world. G L O B A L C O M P E T I T I V E N E S S R E P O R T ( C O U N T R I E S ) Quality of Roads #8 #4 Europe Quality of Railroad #31 Quality of Air Transportation #29 Quality of Ports #25 16 A L L M A I N L AND S E A PORT S A R E C O N N E CTED TO T H E R A I L N E TW O RK O NWARDS TO S PAI N AN D C E N T R AL E U R O P E Source: OECD, World Economic Forum

L I S B O A P O R T O D I R E C T F L I G H T S T O M A J O R C I T I E S D I R E C T F L I G H T S F R O M L I S B O N,

18 INFRASTRUCTURES INTERNATIONAL AIRPORTS P O R T O 94 C I T I E S with direct flights. L I S B O N 131 C I T I E S with direct flights. L I S B O A P O R T O D I R E C T F L I G H T S T O M A J O R C I T I E S D I R E C T F L I G H T S F R O M L I S B O N, P O R T O & P O N TA D E L G A D A A T L A N T A B O S T O N M I A M I N E W A R K NY ( J F K ) O A K L A N D P H I L A D E L P H I A P R O V I D E N C E 17 W A S H I N G T O N Source: ANA/VINCI Airports of Portugal, August 2017

19 INFRASTRUCTURES B R O A D B A N D & C O N N E C T I V I T Y CRITERIA R A N K I N G 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 18

INNOVATION PORTUGAL IS A LEADING COUNTRY IN PROVIDING

FIRM-LEVEL TECHNOLOGY ABSORPTION #28 FDI & TECHNOLOGY TRANSFER #15

INDUSTRY R&D COLLABORATION #36 G L O B A L C O M P E T I T I V E N

Today, the company has one of the largest dedicated R&D teams in

hardware and software solutions in Aveiro, Braga and Ovar.

20 INNOVATION PORTUGAL IS A LEADING COUNTRY IN PROVIDING TECHNOLOGICAL SERVICES AVAILABILITY OF LATEST TECHNOLOGIES #20 FIRM-LEVEL TECHNOLOGY ABSORPTION #28 FDI & TECHNOLOGY TRANSFER #15 QUALITY OF SCIENTIFIC RESEARCH INSTITUTIONS #22 UNIVERSITY- INDUSTRY R&D COLLABORATION #36 G L O B A L C O M P E T I T I V E N E S S R E P O R T ( C O U N T R I E S ) Today, the company has one of the largest dedicated R&D teams in Portugal, with over 500 highly qualified engineers working both on hardware and software solutions in Aveiro, Braga and Ovar. In this way, Bosch stands not only for Made in Portugal but also for Invented in Portugal. July,

21 TALENT HIGH-LEVEL TALENT. FLEXIBLE. COMMITTED. ENGLISH PROFICIENCY INDEX 2017 Portugal is high proficiency #18 out of 80 countries Source: Education First, English Proficiency Index SCHOOLS IN THE FINANCIAL TIMES RANKING TOP 50 European Business School Rankings 2017 Source: European Business School Rankings 2016 FT.com EDUCATION #12 #21 #25 Ease of finding skilled employees Availability of scientists and engineers Quality of management schools Source: The Global Talent Competitiveness Index countries INSEAD, Adecco Group, Human Capital Leadership Institute 20

81,406 16,356 Social Science sand Law Engineering and Manufacturing Healthcare

22 TALENT IN HIGHER EDUCATION INSTITUTIONS BY FIELD OF STUDY 115,952 22,191 78,027 15,545 STUDENTS ENROLLED AND GRADUATES ,113 30,207 13,305 5,667 81,406 16,356 Social Science sand Law Engineering and Manufacturing Healthcare Science, Maths and Computers Science Other 21 Source: PORDATA, Ministry of Education - DGEEC

Portugal TALENT I N T E R N AT I O N A L B E N C H M A R K I N G W H A T C O M P A N I E S S

are result-oriented. If they have a problem, they deal with it.

There is also a stable environment inflation and salaries and a good match of high tech and

P e t e r H a e n d e l, Chief Financial Officer, V E S T A S Siemens Portugal M A N A G E M

O L S #20 Vestas already leads the industry in R&D investments and by establishing an

23 Portugal TALENT I N T E R N AT I O N A L B E N C H M A R K I N G W H A T C O M P A N I E S S A Y SKILLED LABOUR RANK #20 L A N G U A G E S K I L L S #14 S I E M E N S 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 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, V E S T A S Siemens Portugal M A N A G E M E N T E D U C AT I O N #12 U N I V E R S I T Y E D U C AT I O N #17 S C I E N C E I N S C H O O L S #20 Vestas already leads the industry in R&D investments and by establishing an additional engineering design center, we strengthen our R&D capabilities through the 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 Vestas 22 Source: IMD World Talent Report 2017, 63 countries

24 ATTRACTIVE INCENTIVES PRODUCTIVE I N V E S T M E N T R&D I N V E S T M E N T JOB C R E AT I O N TA X - C R E D I T F I N A N C I A L S U P P O R T TA X - C R E D I T F I N A N C I A L S U P P O R T T A X E X E M P T I O N G R A N T a n d : E x p a t s T a x R e g i m e ( I n c o m e Ta x 2 0 % f l a t r a t e f o r 1 0 Ye a r s ) U. S. P o r t u g a l C o n v e n t i o n f o r t h e a v o i d a n c e o f d o u b l e t a x a t i o n 23 U. S. P o r t u g a l F o r e i g n A c c o u n t Ta x C o m p l i a n c e A c t ( F A C T A )

25 PRODUCTIVE INVESTMENT S C O P E F I N A N C I A L I N C E N T I V E S New products or services; New production methods or processes; Innovation must be at least nationwide (non SME). TA X I N C E N T I V E S Investment projects with positive impact on innovation and jobs creation. E L I G I B L E E X P E N S E S Tangible Fixed Assets: machine, equipment and buildings; Intangible Fixed Assets: software, technology transfer; Training 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). Tangible Fixed Assets: machine, equipment and buildings; Intangible Fixed Assets: software, technology transfer. N AT U R E O F S U P P O R T M A X I M U M S U P P O R T Loan: 30% of eligible expenses as an interest-free loan; 8-years reimbursement period (including 2 years grace period); Cash Grant: Loan conversion of up to 60% of the incentive depending on the performance of the project. 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 30% * 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 (part of Lisbon region, including Lisbon, is not eligible for incentives). 10% TO 25% 24 Source: Portuguese Government *Base Rate

26 R&D INVESTMENT F I N A N C I A L I N C E N T I V E S TA X I N C E N T I V E S S C O P E Investment in R&D activities to develop new products/services or new production methods or processes. E L I G I B L E E X P E N S E S 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. N AT U R E O F S U P P O R T Base Rate: 25% of eligible expenses; Bonuses: up to +40pp according to project scope; 100% Cash Grant: up to 1,000,000 of incentive; For incentive amount that exceeds 1,000,000, 25% as an interest-free loan and 75% as cash grant. 25%* Corporate Income Tax Credit: Base rate: 32.5%; Incremental Rate: 50% of the increase in R&D expenses incurred during that period compared to the average from the previous two fiscal years, up to 1,500, % M A X I M U M S U P P O R T 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. For projects located in Lisbon, maximum financial support is 40% of eligible expenses 25 Source: Portuguese Government *Base Rate

27 JOB CREATION I N C E N T I V E S Depending on the candidate s profile, for each job position, the company can choose between one of the following incentive s schemes: I N T E R N S H I P G R A N T S OR E X E M P T I O N O F S O C I A L C O N T R I B U T I O N S OR C O N T R A T O E M P R E G O G R A N T 9 months F R O M TO years 3 years 50% Exemption 3, , C A S H G R A N T monthly grant depending on the intern s education level First-Job Long-term unemployed Permanent contract 12 month fixed term contract I N T E R N S Unemployed aged between 18 and 30 (inclusive), with at least high-school graduate Unemployed aged over 30 and under 45, if registered for at least 2 months at the employment center P E R M A N E N T E M P L O Y E E S Young people looking for first permanent contract job, aged under 30 years Long-term unemployed (registered at employment center for more than 12 months) If internships are converted into a permanent labor contract, company can apply for the Exemption of Social Contributions scheme P E R M A N E N T O R F I X E D - T E R M E M P L O Y E E S Unemployed people (registered at employment center for 6 months) Unemployed people aged under 29 or over 45, if registered for at least 2 months at employment center 26

28 EXPATS TAX REGIME + W O R L D C L A S S TA L E N T I N P O R T U G A L TARGET Qualified Expatriates in: (I) (II) (III) high added-value activities; scientific, artistic or technical activities; upper management positions. I N C E N T I V E S F O R E M P L O Y E E S Flat rate for Income tax of 20% for 10 years 20% ENTITY I N C H A R G E Tax Authority 27 Source: Portuguese Government

QUALITY OF LIFE G L O B A L P E A C E I N D E X 2018 163 C O U N T R I E S Portugal is a good location to

Stable and safe, sunny, with unique nature, rich leisure, historic and cultural amenities, and high quality

#4 PORTUGAL W O R L D S ' B E S T Q U A L I T Y O F L I F E C O U N T R Y F O R E X P AT S B L O O M B E R G

Portugal s position in the pantheon of European tourism has shot from obscure to over-the-top, and Lisbon,

Best Weather and Climate Aug 8 th 2016 Portugal: the country is considered the third most welcoming country

29 QUALITY OF LIFE G L O B A L P E A C E I N D E X C O U N T R I E S Portugal is a good location to investment and work but also a great place to live and enjoy life. Stable and safe, sunny, with unique nature, rich leisure, historic and cultural amenities, and high quality healthcare facilities. #4 PORTUGAL W O R L D S ' B E S T Q U A L I T Y O F L I F E C O U N T R Y F O R E X P AT S B L O O M B E R G P U R S U I T S Where to Go in 2017 Jan 4 th 2017 The 20 destinations that will be especially hot this year Portugal s position in the pantheon of European tourism has shot from obscure to over-the-top, and Lisbon, the charm-packed capital, is poised to keep climbing T H E H U F F I N G T O N POST Top 10 Countries With the Best Weather and Climate Aug 8 th 2016 Portugal: the country is considered the third most welcoming country for expats overall and ranks fifth in both the Quality of Life and the Ease of Settling In Index 28 #1 Source: Quality of Life Index 2017, Expat Insider THE G U A R D I A N Sun, surf and low rents: why Lisbon could be the next tech capital Oct 29 th 2016

AICEP I N V E S T M E N T P R O M O T I O N AGENCY T R A D E P R O M O T I O N AGENCY AICEP was recognized as the top investment promotion agency in Western Europe at the 2017 Best to

Source: Site Selection Magazine TO P 1 O N E - S T O P S H O P F R E E O F C H A R G E G O V T A G E N C Y AICEP is one of the Top 10 Investment Promotion Agencies in replies to RFI -

Source: World Bank TO P 10 I N F O R M AT I O N C O N TA C T S I N C E N T I V E S & G R A N T S L O C AT I O N To help you find the site that suits your project, AICEP will introduce you

30 AICEP I N V E S T M E N T P R O M O T I O N AGENCY T R A D E P R O M O T I O N AGENCY AICEP was recognized as the top investment promotion agency in Western Europe at the 2017 Best to Invest Top IPA Awards. Source: Site Selection Magazine TO P 1 O N E - S T O P S H O P F R E E O F C H A R G E G O V T A G E N C Y AICEP is one of the Top 10 Investment Promotion Agencies in replies to RFI - Requests For Information from potential investors. Source: World Bank TO P 10 I N F O R M AT I O N C O N TA C T S I N C E N T I V E S & G R A N T S L O C AT I O N To help you find the site that suits your project, AICEP will introduce you to multiple location alternatives and bridge you with utility suppliers. H U M A N R E S O U R C E S AICEP will support your search of human resources and professional training, bridging contacts with Portugal s employment authorities and schools. B U S I N E S S P A R T N E R S AICEP will promote contacts with local suppliers and business partners that can add value to your project. I N C E N T I V E S AICEP will analyse your eligibility to innovation, R&D, production and employment incentives. 29

INVEST IN PORTUGAL THE RIGHT PLACE THE RIGHT TIME P O R T U G A

benquerenca@portugalglobal.pt Henrique Gomes: henrique.

pt Portuguese Trade & Investment Agency Office in San Francisco

31 INVEST IN PORTUGAL THE RIGHT PLACE THE RIGHT TIME P O R T U G A L G L O B A L. P T Olga Benquerença: olga.benquerenca@portugalglobal.pt Henrique Gomes: henrique.gomes@portugalglobal.pt Portuguese Trade & Investment Agency Office in San Francisco Economic and Commercial Section Consulate General of Portugal in San Francisco

RECORD RECENT TRACK. Strengthens R&D capabilities with new engineering design centre in Porto. Opens a Digital Delivery Hub in Lisbon

RECORD RECENT TRACK. Strengthens R&D capabilities with new engineering design centre in Porto. Opens a Digital Delivery Hub in Lisbon WHY PORTUGAL RECENT TRACK RECORD Strengthens R&D capabilities with new engineering design centre in Porto Opens a Digital Delivery Hub in Lisbon Opens its "Cyber Security Operation Centre in Lisbon Opens