Investment in Portugal

Investment in Portugal Carlos Morgado Building On Success Global Tax Conference Lisbon, Portugal www.bakertillyinternational.com

Portugal in a Nutshell 1.Portugal in a Nutshell 2.Economical Recent Developments 3.Why Investing in Portugal? 4.FDI in Portugal 5.Industry Clusters 6.How can Baker Tilly help?

Portugal in a Nutshell s Market Strengths: Privileged location Open economy (EU) English is the business language Technological innovation 10,3 M 179,369 M Population GDP Source: World Bank and Pordata; data for 2015 1.45% GDP growth Opportunities: Portugal Structural Reforms Concession opportunities Platform to Portuguese-speaking countries Golden Visa

Economic Recent Developments 1.Portugal in a Nutshell 2.Economic Recent Developments 3.Why Investing in Portugal? 4.FDI in Portugal 5.Industry Clusters 6.How can Baker Tilly help?

Economic Recent Developments Economic Overview Economical relevant improvements. Shifting from traditional industry to technology sectors. International Trade Exports are performing well. Positive trade balance since 2012. Tourism Tourism s importance has been growing. 15.3% of total exports are Machinery and Tools 76,9% of exported goods are to EU 34.4 M* foreign bed nights Source: INE; Banco de Portugal, European Commision and Eurostat *Data for 2015

Why Investing in Portugal? 1.Portugal in a Nutshell 2.Economical Recent Developments 3.Why Investing in Portugal? 4.FDI in Portugal 5.Industry Clusters 6.How can Baker Tilly help?

Why Investing in Portugal? (1/2) Technology and Innovation: Leading country in technological services. Large number of start-up incubators and technology hubs. New Markets: EU: free trade and removal of non-tariff barriers. Entry door for growing markets (Brazil, Angola and Mozambique). Web Summit Lisbon 53 m attendees 166 countries. 250 M Portuguesespeaking consumers. 500 M European consumers.

Why Investing in Portugal? (2/2) Unique Strategic Location: Privileged location. Closest to the North /South America. Ports are gateways to other continents. 3 hours difference from Brazil or Russia. Highly Qualified People: Flexible, business oriented workforce High level of education. Labor costs below EU countries. Portuguese Population with Bachelor Degree (M) 1,336 1,462 1,519 2013 2014 2015 Source: Pordata

FDI in Portugal 1.Portugal in a Nutshell 2.Economical Recent Developments 3.Why Investing in Portugal? 4.FDI in Portugal 5.Industry Clusters 6.How can Baker Tilly help?

FDI in Portugal Main Recent Transactions Bridgepoint acquires Sapec s Agro Business French Gfi Group acquires Roff Portugal Frensh Ardian acquires Ascendi PT ii Marubeni Corporation (Japan) acquires a 22.5% stake in Galp Gás Natural UnitedHealth (USA) buys CLISA Italian Zanetti acquires Nutricafés Carlyle (USA) acquires 60% of Logoplaste FDI in Portugal by Country of Origin (June 2016) Netherlands Spain Luxembourg UK France Brazil Belgium Germany USA China Switzerland # 24 2,3% 1,9% 1,7% 1,6% 1,5% 1,5% 7,1% 5,1% 19,3% Source: Banco de Portugal, AICEP Portugal position in Ease of Doing Business Rank 24,3% 23,0%

Industry Clusters 1.Portugal in a Nutshell 2.Economical Recent Developments 3.Why Investing in Portugal? 4.FDI in Portugal 5.Industry Clusters 6.How can Baker Tilly help?

Industry Clusters Automotive Molds Textile Real Estate and Tourism Natural Stone Maritime Economy Financial Services

Automotive Sector Overview Key Highlights Sub-Sectors Large car manufacturers have factories installed in Portugal. Investment in newest technology International Quality Standards; Lithium producer; Electric mobility system; Easy access to Spain and Morocco. Metal Components Manufacturing Plastic Components Manufacturing Approx. 200 Companies 13% of goods exports in 2015 # Direct Workers 45,000 in 2015 Source: FIA

Molds Industry Overview Key Highlights Sub-Sectors Growing sector with strong consolidation potential. Installed technological capacity; Exported- oriented; Strategic partner of the automotive industry; Sector has grown for the 6 th successive year. Plastic Injection Molds More than 450 Companies 590 M exports in 2015 # Workers 8,000 Source: Cefamol

Textile Industry Overview Key Highlights Sub-Sectors Sector is developing and adapting to the new realities. Exported- oriented sector; Differentiation, quality and innovation; Easy access to key markets; Competitive Labor Costs. Technical and Home Textile Private Label Clothing Manufacturing 6000 Companies in 2014 4,6 billions exports in 2014 # Workers 128,414 in 2014 Source: INE; ATP

Real Estate and Tourism Overview Key Highlights Sub-Sectors Portuguese real estate market has a significant foreign presence. Rise in tourism increased building renovation and hotel expansion; Fiscal and investment benefits (Golden Residence Permit). Hotels (Lisbon and Oporto areas) Retirement Residences Students Accommodation 42.4% Occupancy rate of bed 57.2% Foreign hotel guest 2,695 Accommodation establishments Source: INE, Pordata,; Data for 2014

Natural Stone Industry Overview Key Highlights Sub-Sectors Largest world exporter per capita of ornamental stones. Diversified and abundant resources; Competitive specialized workforce; Good transport infrastructure; Manufactures of specialized equipment/ machinery for this industry. Marble extraction and processing Limestone extraction and processing 1,858 Companies in 2011 372 M exports in 2013 # Workers 2,598 in 2012 Source: INE; DGEG; LNEG

Maritime Economy Overview Key Highlights Sub-Sectros Priority sector for Portugal (3 rd largest EEZ in Europe and 11 th worldwide). Vast maritime dimension and unexplored natural resources; Access to international marine routes; Innovative technologies (wave and wind energy). Marine biotech Fishing and Aquaculture Sea Ports Industry Production in 2010 8.174 M # Workers 109.000 in 2010 Current EZZ 1,727,408 Km2 Source: INE; A Economia do Mar em Portugal (DGPM, 2012)

Financial Services Overview Key Highlights Sub-Sector Impressive number of M&A transactions (banking and insurance); Still highly attractive for investors. Investment opportunities arising due to divestments and capital needs for build up processes. Insurance Brokerage Specialized Credit Insurance (non life) Turnover in 2013 36,080 M # Workers 107,213 in 2013 21,955 Companies in 2013 Source: Pordata

Other Attractive Sectors Footwear Metalworking Information Communication Technologies Health Renewable Energy Shared Services Biotechnology Agroindustry Aeronautical H

How can Baker Tilly help? 1.Portugal in a Nutshell 2.Economical Recent Developments 3.Why Investing in Portugal? 4.FDI in Portugal 5.Industry Clusters 6.How can Baker Tilly help?

How can Baker Tilly help? Baker Tilly Portugal is a multidisciplinary organization that provides professional services in the following areas: Audit Outsourcing Tax Incentives Consulting Corporate Finance Information Systems How can we help? Identifying investment opportunities; Provide business advice; Provide market information; Our Advantages Vast Experience Professional contacts with Fin. Institutions, Property and Sector s associations Specialized in M&A processes

Thank You! Paulo André E-mail: pandre@bakertilly.com.pt Carlos Morgado E-mail: carlos.morgado@bakertilly.com.pt