Industria Agroalimentaria

Agrifood Sector

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Agrifood Sector

INDEX 1. NAVARRA: An Introduction.

1.1 Location.

1.2 A Dynamic, stable and balanced economy.

1.3 An Industrial economy.

1.4 A Global economy.

2. NAVARRA: Preferred Choice for FOOD PROCESSING.

2.1 Strong and dynamic Agrifood sector:

2.1.1 The Sector in Navarra.

2.1.2 Main companies already established in Region.

2.1.3 Leading Technological and R&D Centers.

2.2 Availability of raw materials and increasing

agricultural production capacity

2.3 Access to Spanish and European markets.

2.4 Dedicated Industrial Estates.

2.5 Adapted training offer.

2.6 Government support.

2.6.1 Its own taxation system that encourage

productive investment.

2.6.2 Grants.

3 SODENA: Your partner for investing in Navarra.

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Agrifood Sector

1. NAVARRA: An Introduction.

1.1 Location Navarra (www.navarra.es) is a region located in

northern Spain at the western end of the

Pyrenees. It shares a 163-kilometre-long border

with France.

The region covers 10,391 square kilometers and

has a population of almost 650,000. Half of the

population is concentrated in the capital,

Pamplona and surroundings.

Navarra is a small region within Spain, but it is

one of the most economically advanced, together with Madrid, Catalonia and The Basque

Country. Navarra ranks in top positions in all national indicators of economic development,

innovation, education, quality of life etc.

Navarra Spain Nav/Sp

Population (inhabitants) 643,864 46,704,314 1.4%

Surface (Km2) 10,391 504,782 2.1%

Population density (inhabitants/km2) 61.9 92.5 -

Source: National Statistics Center, Navarra Institute of Statistics. Data: 2013

Furthermore Navarra beneficiates of some economic autonomy and has its own taxation

system, and its own legal system in many areas, which is a unique characteristic among

Spanish regions.

The reason of it is that Navarra has been an independent kingdom for almost a thousand years

and has retained many of its ancient laws since the XVI century, one of them being the right to

some economic autonomy and own taxation system.

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Agrifood Sector

1.2 A Dynamic, stable and balanced economy The official statistics of the European Union, Eurostat, which measures the regional gross

domestic product per capita ranked Navarra, at 32 out of 277 regions, as one of the richest

regions in the EU-27 in early 2010 (and held it in that position in 2011 and 2012).

Navarra offers a stable economy with moderate inflation, and fully integrated in the EU.

In 2013, GDP per capita of Navarra ranked third among all Spanish regions.

GDP (2013) Navarra Spain EU-27

GDP, current prices (billion

Euros)

18,957 1,022,988 13,031,902

Per capita GDP (euros)2012 28,358 21,948 25,600*

Source: Eurostat 2013, National Institute of Statistics 2013, Navarra Institute of Statistics 2013

Navarra maintains a higher Standard & Poors credit rating than Spain as a whole. Prior to April

2010, Navarra’s credit rating had been the highest possible AAA rating. However, as with most

other regions in Europe in 2011, it was downgraded to reflect the deepening crisis within the

Eurozone.

According to data from 2014, Navarra has a rating of 'A-' two levels above the level of Spain

rating (BBB).

Navarra has the lowest

unemployment rate in Spain,

with a rate of 14.92% by the

3rd quarter of 2014, in contrast

to the national average of

23.5%. Currently 46,200

people are ready to enter the

labor market.

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Agrifood Sector

1.3 An Industrial economy

Navarra is one of the top Spanish regions with highest importance of industry in its regional

GDP.

The economic structure of Navarra presents a remarkable specialization in the industrial

sector. Proof of this is the significant weight involving goods and automotive industry in its

economy.

The Navarre business community is varied and is made up of a large number of small and

medium-sized companies. There is also a significant presence of production plants belonging

to multinational corporations, given their importance in terms of employment and value

added, as well as their decisive contribution to the modernization of the regional productive

machine and, therefore, to the economic development of the region.

The agro-food industry is the third in order of importance, provide over half Navarre´s

industrial GAV.

Employment (%) by economic sector

Regional Gross Added Value (%) by economic sector

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Agrifood Sector

1.4 A Global economy

Navarra’s exports have grown a great deal in recent years. In 2013 the total value of exports

from Navarra grew to over 7.3824 billion euro.

Source: Statistics National Institute and Spanish Federation of Chambers of Commerce

Foreign trade in goods – Navarra vs Spain by sectors (2013)

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Agrifood Sector

Navarra’s exports have grown a great deal in recent years. In the period January-December

2013, the total value of exports from Navarra grew to over 7.3824 billion euro.

Source: Statistics National Institute and Spanish Federation of Chambers of Commerce

Source: Statistics National Institute and Spanish Federation of Chambers of Commerce

Foreign trade in goods– Navarra by geographical area (2013)

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Agrifood Sector

According to the latest report of the Regional Directorate of Commerce in Navarra, the data

for the period January-December 2013, threw a coverage rate of 192.4% in Navarra. In the

case of Spain the coverage rate was 93.6%, placing it as the first region in absolute value of its

trade balance.

Particularly important is the Balance trade for the agrifood sector, with an increasing positive

balance since 2004, explained for an important increase in exports of both agricultural and

food products. The coverage rate in 2013 reached 190.93% for this sector in Navarra.

-

200.000,00

400.000,00

600.000,00

800.000,00

1.000.000,00

Balance of Trade for the Food and Agricultural sector in Navarra

Import

Export

Coverage rate

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Agrifood Sector

Over 100 multinational companies from 20 countries are operating in Navarra. The following

graph shows the distribution, both by sector of activity and by country of origin.

Number of foreign companies by sector

Source: Sodena

Number of foreign companies by country of origin

Source: Sodena

FOREIGN COMPANIES IN REGION

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Agrifood Sector

1. NAVARRA: Preferred Choice for FOOD PROCESSING

Navarra is a strategic location for investments in the agrifood sector for several reasons:

It has a dynamic and developed cluster to promote and facilitate innovative

processes that are being developed within the sector, renewing the industry’s

competitiveness in the marketplace.

It offers a strong agrifood base, with a wide representation of local, national and

multinational companies.

The increasing access to raw material.

It is strategically located in the North of Spain with very good accessibility to France

and in the crossing of two mayor communication axes: Bilbao-Barcelona axe and

Paris-Madrid-Lisbon axe.

It offers with sufficient skilled labour force and with and adequate education and

training system to cope with current and future needs of the industry.

The Region of Navarra enjoys a high degree of autonomy and self-government

within Spain, which allows the Region to keep its own differentiated tax regime.

Next pages provide supporting information on these elements.

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Agrifood Sector

2.1 Strong and dynamic Agrifood sector

2.1.1 The Sector in Navarra.

The highly regarded food and agriculture sector in Navarra is of strategic importance for the

development of the province. The growth potential of this sector is high, given its capacity to

generate wealth and employment.

Navarra is one of the leading Agrifood clusters in Spain, located at the heart of the Ebro

Valley, with an annual turnover of €3,000 million plus €900million in primary sector.

This sector of the economy incorporates fishing, livestock, farm produce and the food

manufacturing industry. It has over 1,270

businesses (585 in food industry processing and

packaging) and employs around 25,500 people.

The agrifood is the most territorial impact

sector. Its activity and wealth is distributed

throughout the Region.

Its potential for growth and employment

generation capacity still remain elevated.

The agrifood sector is a leading one in Navarra

thanks to its strong presence in the region and

its GDP contribution (6.6% of total Regional GDP

and 14% of Regional Industrial GDP) and job

creation.

It is a sector made up of a varied business fabric with some internationally well-known

companies.

The two most important producers of frozen vegetables in Spain, Ultracongelados

Virto y Congelados de Navarra are Navarra companies.

A leading region in canned vegetables, with the biggest national group based in

Navarra region.

Home to Spanish leader of Fresh Salads and fruits, Grupo Florette Iberica.

National leader in duck products niche market, with local companies such as

Conservas Martiko.

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Agrifood Sector

Following graphs provide a quick overview of the structure of this sector in the region:

Characteristics of industry

*milling products, fats and oils, animal feed, bread,

pasta, sugar, chocolate and confectionery,

miscellaneous products, packaging.

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Agrifood Sector

2.1.2 Main Companies already established in the Region

Navarra counts with a strong presence of foreign companies in Region, including some leading

worldwide players, as it is indicated in the following table.

Local Company Activity Jobs Ultimate parent

Product Brands Country

AGROZUMOS Fruit juice 101-250 Grupo RIHA WESERGOLD

“Granini” Germany

ARDOVRIES ESPAÑA, S.A.

Frozen vegetables

<50 GRUPO ARDO “Findus” Belgium

FROMAGERIES BEL ESPAÑA GROUP

Dairy products <100 Fromageries Bel SA

“La Vache qui rit”, “Babybel”

France

GELAGRI IBERICA Frozen vegetables

251-500 Grupo Gelagri “Bonduelle” France

GENERAL MILLS SAN ADRIAN

Processed food >500 GENERAL MILLS

Mexican Food “Old El Paso”

USA

HORTICOLA DEL EBRO

Processed vegetables

<100 Grupo CECAB

“D’Aucy” France

INTERMALTA Beer malt <100 MALTEROUP - France

LACTEOS GOSHUA Dairy products <100 Laiteries Hubert Triballat

Local brand “Goshua”

France

LACTEOS DE NAVARRA

Dairy products <100 Groupe EMMI

National brand “KAIKU”

Switzerland

MANANTIALES DE BETELU

Mineral water <100 United Soft Drink

Local brand “Manantiales de Betelu”

Netherlands

MONDELEZ ESPAÑA

Biscuits <100 MONDELEZ INTERNATIONAL

Biscuits “Oreo “Chip Ahoys” and local brands

USA

PLANASA

Plant breeding, nurseries and production fresh asparagus and endives.

<100 --- --- ---

PRECOCINADOS FRISA, S.L.

V game products <50 FRISA FRANCE

--- France

REFRESCO IBERIA Beverage packaging

<100 REFRESCO HOLDING BV

--- The Netherlands

VEGA MAYOR SA Ready to eat salads and fruits

500 Grupo Agrial “Florette” France

VEGETALES LINEA VERDE

Ready to eat salads and fruits

<100 LINEA VERDE “DimmidiSi” Italy/Spain

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Agrifood Sector

The region also counts with a wide spectrum of local food processing companies, some of

them major players both at national and international levels. Some of the most relevant are

illustrated in table below.

COMPANY EMPLO

YEES TURNOVER

€ M PRODUCTS/ACTIVITIES

VISCOFAN, S.A. + of 500 752,78 Artificial casings for meat products

GRUPO AN + of 1000 672 Compound animal feed, fruit and vegetables producer and poultry operator

GRUPO UVESA + of 500 300 Products derived from poultry meat

BERLYS CORPORACIÓN ALIMENTARIA, S.A.

+ of 500 225 Bakery, pastries and patisserie products

ULTRACONGELADOS VIRTO

101-250 226 Canning and preserving vegetables

GRUPO CONGELADOS DE NAVARRA

251-500 83,66 Canning and preserving vegetables

IBERFRUTA MUERZA, S.A.

251-500 71,21 Fruit Derivatives

APERITIVOS Y EXTRUSIONADOS S.A.

101-250 45,8 Snacks

CONSERVAS MARTIKO, S.A.

101-250 52 Production of duck products

ALIMENCO, S.A. 101-250 15,26 Canning and preserving vegetables

CONSERVAS HIJOS DE MANUEL S.B, S.A.

101-250 9,41 Canning and preserving vegetables

BAJAMAR, S.A. 101-250 7,27 Canning and preserving vegetables

Furthermore, The Association for the agroindustry sector for Navarra, La Rioja and Aragón,

CONSEBRO is located in Navarra. This sectorial association, created in 1967, represents more

than 130 companies and provides services to its members to ensure companies maintain their

competitiveness while adapting to new industry challenges.

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Agrifood Sector

Description of some main companies located in Navarra:

BERLYS Corporación Alimentaria, S.A.

Food enterprise specialized in the production and marketing of

pre-cooked bread and frozen bakery, pastries and patisserie

products.

Founded in 1994, the company is leader in quality, innovation and

service in the sectors: bakery and patisserie, hospitality and

catering, modern foodstuffs and specialized shops. A front-line

company thanks to its 7 production plants (4 of them are located

in Navarra) with cutting-edge technology, 2 large logistics centers,

31 regional offices and 700 distribution points, able to supply

more than 300 different products every morning throughout the

country and to more than 20,000 clients.

CONGELADOS DE

NAVARRA, S.A.U

It is the largest broccoli manufacturer in Europe and one of the

top 10 frozen vegetable producers in Europe. Additionally the

company is specialized in value added products like sautéed,

grilled, etc. They manufacture a wide range of products for the

Retail, Foodservice and Industry channels.

CONSERVAS MARTIKO,

S.A.

The Martiko Group has wide experience in the food industry,

developing all farming, industrial and commercial activities

needed to bring to the consumer their duck and salmon products.

Founded over 25 years ago, actually has 5 production plants and it

is leader in the domestic market.

GELAGRI IBERICA, S.L.

It belongs to the Bonduelle Group and GELAGRI BRETAGNE, SA. It

is one of the most important European producers of vegetables

and frozen processed products. Its plant in Navarra is mainly

dedicated to all kinds of frozen vegetables and the production of

pre-cooked meals, frozen and canned.

GENERAL MILLS

It is one of the most important world companies in food

production. It has over 150 years of experience and it is widely

present all over the world. The factory in Navarra produces 50,000

tons per year of their “Old El Paso” and “Nature Valley” brands to

cater to 32 countries.

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Agrifood Sector

PLANASA, S.A.

Planasa is one of Europe's largest horticultural companies and has

worldwide presence. It currently boasts 3 important sections:

plant breeding, nurseries and production and marketing of fresh

asparagus and endives. The Planasa Group headquarters and the

vitro laboratory are located in Navarra, where new cultivations

and varieties of fruit trees for continental climates are cultivated.

Planasa also has an endives processing plant in Valtierra, Provedis.

VEGA MAYOR, S.L.

Vega Mayor (Florette Spanish Group) is the Spanish leader in

production and marketing of IV range salads and vegetables. The

group is also the European leader in ready to eat vegetables and

salads.

VISCOFAN, S.A.

The Viscofan Group is the world leader in artificial casings for

meat products which it distributes in over 100 countries

worldwide. It is the only manufacturer in the world using

technology for all categories of casing products: cellulose,

collagen, fibrous and plastic.

Viscofan has casing production sites in Spain, Germany, Brazil,

China, the US, Mexico, the Czech Republic and Serbia. Vegetable

food production sites for the brands of the IAN Group in Spain,

and 14 sales offices. The company headquarters are located in

Navarra where they have two production plants.

Mondelēz International, Inc. is one of the largest groups of

snacking in the world. Mondelez Spain is one of the 10 largest

food companies in the country and one of the leaders in the

categories of cookies, desserts, chocolate, nougat, cheeses, and

gum and candy. It has five plants, one located in Navarra where

produces national and international bands leader biscuits such as

“Chips Ahoy!” and “Oreo” sold in Europe. The factory also exports

to the United States, Australia, Israel, South Africa and Morocco.

ULTRACONGELADOS

VIRTO

Ultracongelados Virto produces a complete range of frozen

vegetables, pulses, fruits and mixes with vegetables, offering our

customers the best quality and service, at a very competitive

price.

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Agrifood Sector

2.1.3 Leading Technological and R&D Centers

The region has a large number of research centers that drive the development and creation of

new lines of growth in the sector.

Agro industry:

The National Centre for Technology and Food Safety (CNTA)

works on the front line with the agrifood sector in order to open

up new paths related to Quality, Technology, Safety and

Innovation in food. Its five major areas are food research,

development and innovation, foodstuff control and analysis, in-

process assistance, quality and food safety management systems, technical training and

consultancy.

Agriculture & livestock:

The Regional Livestock and Agricultural Technical Research

Centre (INTIA) includes specialized infrastructure for:

Wine: The Viticulture and Enology Station of Navarra is specialized in research,

experimentation and dissemination of the most suitable techniques for grape growing and

wine production and the management of the official wine cadastre of the Government of

Navarra.

Milk: The Lactological Institute offers dairy produce companies and cattle breeders, a

comprehensive service for the sustainable production of safe, healthy and quality food. It

is the official milk control laboratory in Navarra.

Universities:

Food Sciences Institute of University of Navarra: The extensive

experience of this university in Pharmaceutical Development is

directly applicable to nutrition research, constituting a

multidisciplinary platform that covers the entire process necessary for the development of

nutraceuticals/ functional foods.

More specifically, the Centre focuses its efforts on a number of key research areas

considered in the development/prevention of obesity and its co morbidities and in the

search for bioactive compounds that may lead to the development of nutraceuticals or

functional foods.

Institute of Agro-bio-technology (IdAB): A joint Centre belonging to

the State University of Navarra (UPNA), the Spanish Higher

Scientific Research Council (CSIC) and the Government of Navarra.

The Centre focuses on Agrobiotechnological research areas of

biomedical interest.

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Agrifood Sector

2.2 Availability of raw material and increasing agricultural

production capacity.

Navarra is located at the

hearth of The Ebro Valley, one

of the main agricultural and

agro industrial areas of Spain

with 2,4 million hectares,

900,000 of them irrigated.

The Region has 300,000

hectares cultivated with

Mediterranean and Nordic

products, for some 2 crops per

year.

Surface (Hectares) Rain fed Irrigated Total

Cereal grains 150.357 47.650 198.007

Dried pulses 5.105 968 6.073

Tubers for human consumption 270 319 589

Industrial crops 5.756 962 6.718

Flowers and ornam. plants 2 44 46

Forage crops 8.847 10.899 19.746

Vegetables 821 20.098 20.919

Total arable crops 171.158 80.940 252.098

Fruit 3.030 4.504 7.534

Vineyard 8.815 10.612 19.427

Olivar 2.714 3.081 5.795

Nurseries 10 61 71

Total woody crops 14.569 18.258 32.827

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Agrifood Sector

The Navarra Canal project is a 177 km.

waterway that will irrigate an

extensive part of the whole province

of Navarra. Current projects on the

canal include the construction of 6

tunnels, with a total length of 13.5

km., 12 drains with a total length of 51

km. and 2 aqueducts 570 meters long.

Plans also call for 4 control ponds, with

a total storage capacity of 9.5 cubic

hectares. The entire length of the

Canal has been equipped with the

latest automation for hydraulic

engineering.

New irrigated land with “Canal de Navarra”

The main agricultural benefits of “Canal of Navarra” are:

Access to Greenfield lands.

Top quality water from Pyrenees Mountains.

The increasing surface of irrigated land: from its present level of 103,000 hectares

to 156,000. Of those, 22,000 hectares are already in place and additional 15,000

will be ready by 2015.

Increase of gross productivity estimated between €0.6 /m3 and €1.2/m3, compared

to national average values of €0.22/ m3 of traditional irrigation and €0.41/m3 of

the irrigation coming from modernized gravity.

Greater diversity of crops (more than 50) and the possibility of double harvests.

Competitive pricing of a cubic meter of water from. 0.05 €/cubic meters, which is

lower than in most of the Spanish irrigation zones and limited energy cost

(irrigation by aspersion at natural pressure).

Plot concentration already done, with dimensions that favour efficiency and

mechanization.

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Agrifood Sector

2.3 Access to Spanish and European markets.

Navarra has a well-developed road network. It is crossed by several motorways that afford

easy access with the rest of Spain and Europe. Particularly important is the crossing of two

major Spanish axes North-South, linking Paris to Madrid, and East-West, linking Bilbao and

Barcelona.

The two major Spanish consumer centers (Madrid and Barcelona) can be reached in less than 3

hours from Navarra, and 70% of national consumption is within a radius of 350 km.

Excellent national highway

connections to Madrid Barcelona Zaragoza Vitoria Bilbao Pasajes

Top 2 consumption centres X X

Top 3 Logistic platforms X X X

Top 4 Goods Airports X X X X

Several Seaports

X

X X

Furthermore Navarra, bordering France, offers a good geostrategic location to access

European markets.

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Agrifood Sector

2.4 Dedicated Industrial Estates.

The Agrifood City of Tudela (CAT) is a pioneering business park where infrastructures and

services are shared to improve the competitiveness of the companies located there. This

industrial complex provides over one million square meters for the agrifood sector with fully

centralized services based in an excellent strategic location.

Its objective is to avoid investments in private installations for each company. Thanks to this

innovative system, estimated cost savings of up to 15% can be achieved.

The entire value chain is concentrated in one place:

Producers.

Ancillary industries.

Logistics.

Infrastructures.

Services and institutions that support the sector.

The common services offered are:

Trigeneration plan to produce steam, cold water for refrigeration and electricity.

Industrial Refrigeration:

- 10ºC for refrigerated chambers.

- Cold water at 5.5ºC for air

conditioning.

Other services:

- Integrated waste and discharge

management.

- Natural gas.

- Firefighting system.

- Process water.

- Surveillance and telecommunications network.

- Business Centre with conference facilities.

Free services and support to corporates include:

- Consulting services, for start-up and development phases and your own energy

savings study.

- Search for local partners and suppliers.

- Access to finance.

- Turnkey solutions – tailor made to your needs.

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Agrifood Sector

2.5 Adapted training offer

Navarra offers a wide range of technical and academic training for the agrifood sector ranging

from basic formative courses to university post-graduate degrees.

High level Education

Graduate and postgraduate offer jointly provided by the two universities established in the

Region.

State University of Navarra:

It has a strong focus on Engineering, with specific section on Agricultural

Engineering. 75 graduates per year.

Private University of Navarra:

It has a strong focus on experimental degrees linked to health (biology,

pharmacy, medicine etc) and special interest in Nutrition and Health.

Post degree programs on Nutrition and Health

Dedicated R&D resources to Food, Nutrition and Health

Vocational Education

There are basic (2 years) or High degree (2+3 years) in different locations and specialised by

areas:

Food processing:

- Manufacture of food products.

- Processes and quality control in the food industry.

Equipment:

- Installation and Electromecanic Maintainance of Equipment and and Lines.

- Industrial equipment maintenance.

- Agricultural welding.

Farming:

- Extensive Farming.

- Management and Organisation of Agricultural Enterprises.

- Organization and Management of Natural Resources and Landscape.

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Agrifood Sector

2.6 Government support

2.7.1 Its own taxation system that encourage productive

investment

The Region of Navarra enjoys a high degree of autonomy and self-government within Spain,

which allows the Region to keep its own differentiated tax regime:

Lower corporate tax rates.

Important fiscal deductions to encourage productive investments.

Regional program of grants and incentives.

Lower amortization rates and flexible depreciation plans.

Currently a fiscal reform in Navarra is underway.The main Corporate Tax differences between

Navarra and the rest of Spain are.

Type of Company Navarra

Rest of Spain (except Basque Country)

Current Foreseen as from

Jan 15 Current

Foreseen as from Jan 15

Large Firm 30%

27% in 2015 24% in 2016

30%

28% in 2015 25% in 2016

Small to Medium Size Enterprise

(SME) 27%

Tax base between 0 and € 300,000: 25%

Tax base above this figure: 30%

Micro SME 20% 19%

Tax base up to € 300,000: 20%

Tax base above this figure: 25%

The size of the company is defined as follows:

Large Firm: Companies with a turnover > 10 million Euros.

SME: Companies with a turnover of between 10 and 1 million Euros.

Micro SME: Businesses with a turnover of less than 1 million Euros.

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Agrifood Sector

Taxes described above are theoretical rates. However, it is assessed that the effective tax rate

in Navarra is 15% (Memo 10thTechnical Meetings OCEX, Sevilla 23 and 24 May, "Corporate tax

in Navarra"), lower than the effective tax rate in the rest of Spain of 19.3% (source AEAT),

when considering tax depreciation, reductions on the tax base and tax deductions.

A tax reform both in Navarra and the rest of Spain is due to be passed shortly and will come

into force as of January 2015. With this reform, the effective corporate tax is expected to

remain lower than in the rest of Spain.

2.7.2 Grants

a) Grants for investments

The calls for investment grants are currently closed. The new grants are expected to be called

in early 2015. Throughout 2014, the Government of Navarra, through the Department of

Economics, Finance, Industry and Employment, is conducting the development of a new

framework of support in order to adapt to the current economic and financial circumstances.

As a guideline in the previous call, grants were:

Size of business

Small Medium Large

Up to 30% Up to20% Up to10%

The investment grants are repayable grants that include both tangible and intangible assets.

In any case, as stated above, investments in plant and equipment and investment property

have a 10% deduction, which amounts to almost a 15% grant (we should note that the grant is

taxed as any other income).

b) Grants for R&D activities

Navarra is the second Spanish region in R&D investment: 1.91% of regional GDP in 2012, above

Madrid and Catalonia and close to the EU27 average. Furthermore, the private sector leads

R&D activities with 68.4% of total R&D expenditure in Navarra.

The regional Government of Navarra supports R&D activities with several programs and grants

available for R&D projects, which are summarized in the table below.

R&D

Grants for R&D

Projects

Budget of €34.4 million foreseen (€15.5 M in 2014 and € 18.8 million

€ in 2015) in supporting more than 250 projects.

Cooperative and supra regional projects will be prioritized to

promote open innovation.

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Agrifood Sector

Grants for R&D

Promotion

To prepare proposals to EU calls (SIC

Bonus)

€700K in 2014 and €1M in

2015

To subcontract R&D services to

specialized research centres

(Technological Bonus)

€510k in 2014 and €610 € en

2015

To recruit graduates for R&D

activities (Training program for

technologists)

€535K in 2014 and €1.96 M

in 2015

The amount of the grant will depend on the size of the company and the type of R&D to be

developped. Currently maximum rates applicable are:

Size of business

Small Medium Large

Development Projects (up to) 45% 35% 25%

Research Projects (up to) 70% 60% 55%

Statewide, the CDTI, the national entity which finances technological innovation, has also

opened several lines to foster R&D. These grants can reach up to 75% of the total budget of

the project. The aid consists of a non-refundable part (from 5% to 18% depending on the type

of project and company) and another part as a soft loan.

c) Grants for training

The Government of Navarra foresees the financing of training activities for new hires for

companies or groups of companies with a commitment to hire at least 60% of the trainees.

The content of the proposed training is flexible and can be defined by the company. The

company can also decide on the teachers to to execute the activity.

Up to 300 hour of training activities could be funded:

The first 100 hours will be funded at 100%.

The next 100 hours at 70% (up to 80% for young people.

The last 100 hours at 50%.

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Agrifood Sector

2. SODENA: Your partner for investing in Navarra

Sodena, Sociedad de Desarrollo de Navarra, is the main instrument of the Government of

Navarra for Regional Business Development. It was set up in 1984 as a state limited liability

company and it is a self-financing organization.

As a technical partner, Sodena offers strategic investment advice and tailored business

information, arranges meetings and introduces the investor to relevant public and private

organizations and companies, accompanies the investor during their fact-finding visits to the

Region and informs about how to establish and run a business in Navarra.

As a financial partner, Sodena may participate as co-investor, with a minority stake and on

temporary basis, in business projects that create value and wealth to the Region. This applies

to all phases of company development, from creation and consolidation to expansion and

growth. Venture capital is the main financial product offered by Sodena, a constant feature

since SODENA was founded. The current portfolio accounts for more than €350M invested in

122 different ventures (43 directly and 79 through 10 funds).

Sodena’s current portfolio

Other financial products such as seed capital are also available for new innovative companies

and start ups.

27

Agrifood Sector

www.Sodena.com email: info@Sodena.com

Avenida Carlos III el Noble 36, 1º Dcha

Ph: +34 848 421942 – Fax: +34 848 421943

31003 Pamplona (Spain)