Spain: your partner in Europe · increasing their exports and business towards Latin America, USA,...

Spain: your partner in Europe

February 2016

Business Opportunities

Global Market Access from an International Economy

Investment Framework

0

1. Spain: a highly internationalized economy

2. Global Market Access

3. Macroeconomic Situation and Structural Reforms

4. Business Climate

Infrastructure and Technology

Incentives and taxes

Human capital: Productivity, Skilled Labour Force and Competitive Costs

Quality of life: Expat setting up

5. Business Opportunities

6. ICEX / Invest in Spain

INDEX

1


2

3

Spain is the world’s 13th-largest economy and the 5th-largest economy in the EU:

GDP worth 1.4 trillion USD


GDP comparison of major economic regions, USD billions

Germany: 3,860*

UK: 2,945

Spain: 1,407

France: 2,847

Italy: 2,148

EU28: 18,495

USA: 17,419

Mexico: 1,283

Canada: 1,789

NAFTA:20,491

China*: 10,380

Brazil: 2,353

Russia*: 1,857

India: 2,050

BRICs: 16,640

NIEs: 3,807

ASEAN-5: 2,060

Asia: 13,435

Japan: 4,616

Australia: 1,444

Source: IMF, 2015. Data Referred to 2014 * Estimated Data

4

Source: IMF, WEO Database (April 2014 edition) 2013 Data; WTO 2014, 2013 Data; World Tourism Organization (Highlights, 2014 Edition.) 2013 Data, UNCTAD (WIR 2015) 2014 Data. (*)

UAE Tourist Nº Dubai only. FDI Inward: (3) Hong Kong, (8) Singapore. FDI Outward: (5) Hong Kong. Tourism Income: (5) Macao, (10) Hong Kong. Tourist Nº: (10) Malaysia, (11) Hong Kong.

Spain in the World Economy

Spain, Key Player in the World Economy Spain in the World

GDP GDP

per capita Population

Trade in Goods.

Billions $

Trade in Services.

Billions $

Tourism FDI Stock. Billions $

Income $ Tourist Nº Inward Outward

RK Country Billion $ RK unit $ RK Millions RK Exports RK Imports RK Exports RK Imports RK Billions RK Millions RK Billions RK Billions

1 USA 16,799.7 9 53,101 3 316.4 2 1,579.6 1 2,329.1 1 662.0 1 431.5 1 139.6 1 69.8 1 5,409.9 1 6,318.6

2 China 9,181.4 84 6,747 1 1,360.8 1 2,209.0 2 1,950.0 5 204.7 2 329.4 4 51.7 3 55.686 4 1,085.3 9 729.6

3 Japan 4,901.5 24 38,491 10 127.3 4 715.1 4 833.2 8 145.4 6 162.3 21 14.9 24 10.4 30 170.6 6 1,193.1

4 Germany 3,636.0 18 44,999 16 80.8 3 1,452.7 3 1,188.9 3 286.2 3 316.8 8 41.2 6 31.5 7 743.5 3 1,583.3

5 France 2,737.4 20 43,000 23 63.7 6 579.7 5 681.0 4 236.3 4 188.5 3 56.1 -- -- 8 729.1 5 1,279.1

6 UK 2,535.8 23 39,567 22 64.1 8 541.6 6 655.3 2 292.7 5 174.0 9 40.6 7 31.2 2 1,662.9 2 1,584.1

7 Brazil 2,242.9 62 11,311 5 198.3 22 242.2 22 250.4 31 37.5 17 83.3 39 6.7 -- -- 6 754.8 19 316.3

8 Russia 2,118.0 51 14,819 9 142.9 10 523.3 16 343.0 21 64.8 10 123.0 27 12.0 8 28.4 15 378.5 17 431.9

9 Italy 2,072.0 27 34,715 24 59.7 11 517.7 10 477.4 14 110.2 12 107.3 6 43.9 4 47.7 16 373.7 14 548.4

10 India 1,870.7 144 1,505 2 1,243.3 19 313.2 12 466.0 6 150.9 9 124.6 16 18.4 37 6.8 21 252.3 30 129.6

11 Canada 1,825.1 10 51,990 36 35.1 13 458.4 11 474.3 17 78.2 14 104.9 17 17.7 16 16.6 12 631.3 10 714.6

12 Australia 1,505.3 5 64,863 52 23.2 21 252.7 23 242.1 25 52.2 19 62.2 11 31.0 38 6.4 13 564.6 16 443.5

13 Spain 1,358.7 28 29,150 28 46.6 18 316.5 17 338.9 9 145.3 16 92.2 2 60.4 2 60.7 9 721.9 11 674.0

14 Mexico 1,258.5 66 10,630 11 118.4 15 380.2 14 391.0 40 19.6 34 28.8 23 13.8 14 23.7 18 338.0 29 131.2

15 Korea 1,221.8 33 24,329 26 50.2 7 559.6 9 515.6 13 111.8 13 105.9 22 14.3 21 12.2 27 182.0 21 258.6

16 Indonesia 870.3 116 3,510 4 248.0 27 183.3 27 187.3 36 21.7 31 34.3 31 9.3 31 8.8 20 253.1 50 24.1

17 Turkey 827.2 65 10,815 19 76.5 32 151.8 19 251.6 27 46.3 37 22.2 12 28.0 5 37.8 31 168.6 41 40.1

18 Netherlands 800.0 13 47,634 63 16.8 5 671.9 8 589.8 7 146.7 8 127.4 20 15.6 20 12.8 11 664.4 8 985.3

19 Saudi Arabia 745.3 31 24,847 43 30.0 17 375.9 29 168.2 52 11.1 25 51.7 33 7.7 19 13.213 23 215.9 37 44.7

20 Switzerland 650.8 4 81,324 93 8.0 23 229.2 26 200.9 16 93.4 24 52.8 18 16.5 30 9.0 10 681.8 7 1,130.6

21 Sweden 557.9 7 57,909 85 9.6 29 167.7 30 159.8 19 75.0 22 57.4 28 11.5 -- -- 19 321.1 18 379.5

22 Poland 516.1 56 13,394 33 38.5 26 202.0 25 205.1 29 40.1 32 33.0 29 10.9 17 15.8 22 245.2 35 65.2

23 Norway 511.3 2 100,318 114 5.1 31 154.3 36 89.8 28 40.5 26 49.4 42 5.7 42 4.7 26 185.6 23 213.9

24 Belgium 506.6 17 45,384 71 11.2 12 469.4 13 450.7 15 106.2 15 97.5 24 13.5 34 7.6 14 525.6 15 450.2

25 Taiwan 489.2 38 20,930 51 23.4 20 305.4 18 269.9 26 51.4 30 41.7 25 12.7 33 8.0 39 115.6 20 258.8

26 Argentina 488.2 61 11,766 32 41.5 46 81.7 43 73.7 45 14.2 42 19.1 49 4.4 40 5.6 40 114.1 44 35.9

27 Austria 415.4 11 48,957 90 8.5 28 174.7 28 182.2 22 64.6 29 44.6 14 20.1 12 24.8 28 180.8 22 223.2

28 UAE (*) 396.2 19 43,876 88 9.0 16 379.0 20 251.0 43 16.4 18 70.0 -- -- 26 10.0 39 105.5 33 66.3

29 Thailand 387.2 93 5,674 20 68.2 24 228.5 21 250.7 23 58.6 23 55.0 7 42.1 9 26.5 25 199.3 34 65.8

30 Colombia 381.8 73 8,098 27 47.2 55 58.8 49 59.4 67 5.7 56 11.1 61 2.5 57 2.3 34 141.7 39 43.1

Spain is the 10th-largest exporter of commercial services worldwide, 4th in the EU, and

the 18th-ranked exporter of merchandise trade.

Source: World Trade Organization (WTO), 2015.

Commercial Services Exports USD Millions


5

Merchandise Trade Exports USD Millions

Source: World Trade Organization (WTO), 2015.

2014 2014/2013%

1 United States 687,605 3.73%

2 United Kingdom 337,217 7.95%

3 France 267,104 5.28%

4 Germany 266,244 4.27%

5 China 232,456 12.40%

6 Netherlands 186,587 5.47%

7 Japan 158,081 19.17%

8 India 155,627 5.02%

9 Singapore 140,140 2.29%

10 Spain 133,708 4.30%

World 4,939,570 4.90%

2014 2014/2013%

1 China 2,342,306 6.0%

2 United States 1,620,532 2.6%

3 Germany 1,507,594 3.8%

4 Japan 683,846 -4.4%


6 France 582,590 0.3%

7 Republic of Korea 572,664 2.3%

8 Italy 528,738 2.0%

9 Hong Kong 524,065 -2.1%

10 United Kingdom 505,841 -6.5%

…. … …

18 Spain 324,863 2.2%

World 19,002,000 0.3%


Spain, strong and sustainable external sector performance

6

Spanish exports of goods and services reached 32.5% of GDP in 2014.

Spanish exports of goods and services related to GDP in 2014 were higher than in the United Kingdom,

Italy or France.

A competitive combination: technology, innovation, productivity and lower Unit Labour Costs have lead to a

competitiveness-based expansion of exports.

Source: Eurostat & World Bank

EXPORTS OF GOODS AND SEVICES IN % OF THE GDP

32,5

44,8 46,0 45,5 45,7

28,7

29,6

28,4 25,0

30,0

35,0

40,0

45,0

50,0

2011 2012 2013 2014

Spain Germany France Italy United Kingdom


Spanish and foreign companies established in Spain focus on EU markets, but they are

increasing their exports and business towards Latin America, USA, Asia, Russia, Africa

and the Middle East using Spain as a platform for Global Business.

7

In 2014, exports to the EU

accounted for 63.4% of total exports,

up from 62.6% in 2013.

In the first semester of 2015, exports

to the European Union accounted

for 64.8% of the total, up from

63.6% in the same period of 2014.

In 2014, our exports to non-EU countries have increased their share in Spanish

exports from 27.5% of the total in 2005 to 36.6% in 2014, despite the economic

weakening in Latin America and in some African countries:

Exports to North America increased by 22.0% year-on-year (U.S. by 22.6% and Canada by

18.6%)

To Asia by 9.0%, (remarkably Taiwan 109.4%, South Korea 83.6%, Japan 18.4% and

China 3.5%)

Source: Secretariat of State for Trade, 2015.

Tourism:

Spain is the 2nd country worldwide in receipts and the 1st in Europe.

Spain ranks 3rd in tourist arrivals worldwide and 2nd in Europe.


8

INTERNATIONAL TOURIST ARRIVALS INTERNATIONAL TOURISM RECEIPTS

Mill. people

Source: WTO Tourism Highlights, 2015

Bill USD

Source: WTO Tourism Highlights, 2015

Spain received more than 65 million tourists in 2014

Source: IET/ Tourspain

Country 2014 % 2014/2013

1. France 83.7 0.1

2. USA 74.8 6.8

3. Spain 65.0 7.1

4. China 55.6 -0.1

5. Italy 48.6 1.8

6. Turkey 39.8 5.3

7. Germany 33.0 4.6

8. UK 32.6 5.0

9. Russia 29.8 5.3

10. Mexico 29.1 20.5

Country 2014 % 2014/2013

1. USA 177.2 2.5

2. Spain 65.2 4.2

3. China 56.9 10.2

4. France 55.4 -2.3

5. Macao 50.8 -1.9

6. Italy 45.5 3.7

7. UK 45.3 10.3

8. Germany 43.3 5.0

9. Thailand 38.4 -8.0

10. Hong Kong 38.4 -1.4

Spain is the 9th largest economy in terms of accumulated inward and 11th in outward

FDI stock in the world.

Inward FDI stock (USD Millions)

Outward FDI stock (USD Millions)

Source: UNCTAD, WIR, 2015. Source: UNCTAD, WIR, 2015.


9

Economy

Inward FDI stock 2014

Mill USD Share

1 United States 5,409,884 20.8%

2 United Kingdom 1,662,858 6.4%

3 Hong Kong, China 1,549,849 6.0%

4 China 1,085,293 4.2%

5 Singapore 912,355 3.5%

6 Brazil 754,769 2.9%

7 Germany 743,512 2.9%

8 France 729,147 2.8%

9 Spain 721,879 2.8%

10 Switzerland 681,849 2.6%


12 Canada 631,316 2.4%

13 Australia 564,608 2.2%

14 Belgium 525,612 2.0%

15 Russian Federation 378,543 1.5%

16 Italy 373,738 1.4%

17 Ireland 369,168 1.4%

18 Mexico 337,974 1.3%

19 Sweden 321,103 1.2%

20 indonesia 253,082 1.0%

World 26,038,824

Economy

Outward FDI stock 2014

Mill USD Share

1 United States 6,318,640 24.4%

2 United Kingdom 1,584,147 6.1%

3 Germany 1,583,279 6.1%

4 Hong Kong 1,459,947 5.6%

5 France 1,279,089 4.9%

6 Japan 1,193,137 4.6%

7 Switzerland 1,130,615 4.4%


9 China 729,585 2.8%

10 Canada 714,555 2.8%

11 Spain 673,989 2.6%

12 Ireland 628,026 2.4%

13 Singapore 576,396 2.2%

14 Italy 548,416 2.1%

15 Belgium 450,178 1.7%

16 Australia 443,519 1.7%

17 Russian F. 431,865 1.7%

18 Sweden 379,528 1.5%

19 Brazil 316,339 1.2%

20 Taiwan 258,829 1.0%

World 25,874,757

US, Italian, French, German and UK

Companies are the largest investors in

Spain.

Increasing interest from companies

in Asia (especially from China, India,

Korea and Japan) Latin America

(especially from Mexico, Brazil and

Colombia) and from the Middle East

Countries.

SPAIN Inward FDI stock by country (EUR Millions)

Source: Registro de Inversiones, 2015. Data Referred to 2013


10

COUNTRY STOCK 2013 % total

1 USA 61,085 17.6%

2 ITALY 37,770 10.9%

3 FRANCE 34,192 9.8%

4 GERMANY 32,985 9.5%

5 UK 30,801 8.9%

6 MEXICO 22,383 6.4%

7 LUXEMBOURG 21,829 6.3%

8 NETHERLANDS 13,580 3.9%

9 BRAZIL 11,899 3.4%

10 SWITZERLAND 11,085 3.2%

11 CHINA 7,067 2.0%

12 UAE 5,627 1.6%

13 SWEDEN 4,804 1.4%

14 COLOMBIA 4,111 1.2%

15 CANADA 3,846 1.1%

16 JAPON 3,573 1.0%

17 BELGIUM 2,792 0.8%

18 PORTUGAL 2,700 0.8%

19 URUGUAY 2,405 0.7%

20 ISRAEL 1,230 0.3%

TOTAL 347,618

Spanish companies are among leading companies in the world:


11

3 out of every 5 flights worldwide are controlled using

Spanish air navigation systems.

Telefonica is one of the largest telecommunications

companies in the world (in terms of market capitalization

and number of customers).

Santander is the 2nd bank in the Eurozone and one of the

first in the world (stock market capitalization: more than 90

billion euros) and BBVA now operates in 40 countries.

IBERDROLA is the 4th-largest utility company in the

world (in terms of market capitalization) and the 2nd

largest wind power operator in USA.

The Spanish infrastructure sector is a world leader in

foreign markets. Thirteen Spanish companies totaled 80

billion dollars in revenue. The ACS group continues to lead

the concession industry with 60 projects worldwide.

The Al Shoula Group, a Spanish-Saudi consortium, is to

run the high-speed train between La Mecca – Medina.

The Panama Canal expansion project has been awarded

to a Spanish-led consortium.


Spain is the 9th-most open country to Foreign Investment according to OECD’s FDI

Restrictiveness Index

12

CLOSE OPEN


13

• Over 12,500 foreign companies are currently located in Spain across all

economic sectors

• 70 of the FORBES Top 100 companies have branches in Spain according to

Thomson Reuters

2. Market Access

14

Domestic market of over 46 million consumers: Spain has a GDP per capita (PPP)

above the EU-28 average.

2. Market Access

Source: IMF 2014

Spain grants free access to the world´s

largest market, the European Union: more

than 500 million consumers

Advantages of operating in the EU:

Intra-European duty-free market.

Free movement of goods and

services, capital and persons.

Single currency: EURO.

15

Country GDP per capita

RK USD

1 United States 5 53,101

2 China 92 9,844

3 Japan 21 36,899

4 Germany 14 40,007

5 France 22 35,784

6 United Kingdom 20 37,307

7 Brazil 78 12,221

8 Russia 57 17,884

9 Italy 30 30,289

10 India 131 4,077

11 Canada 8 43,472

12 Australia 9 43,073

13 Spain 32 29,851

14 Mexico 65 15,563

15 Korea 26 33,189

Capacity for consumption of goods

The best European platform for doing business with Latin America:

2. Market Access

17 Agreements to Avoid Double Taxation

in Central and South America: Argentina,

Bolivia, Brazil, Barbados, Chile,

Colombia, Costa Rica, Cuba, Dominican Republic,

ElSalvador, Ecuador, Mexico, Panama,

Jamaica, Trinidad & Tobago, Uruguay, Venezuela.

20 Agreements for Protection and

Promotion of Reciprocal Investments

Bolivia, Colombia, Costa Rica, Cuba, Chile,

Ecuador, El Salvador, Guatemala, Honduras,

Jamaica, Mexico, Nicaragua, Panama, Paraguay,

Peru, Dominican Republic, Trinidad & Tobago,

Uruguay, Venezuela and Argentina.

Excellent communications and

infrastructure: Madrid concentrates around

35% of total air traffic between Europe &

Latin America.

Agreements for Protection and Promotion of Reciprocal Investments

Agreements to Avoid Double Taxation

16

2. Market Access

1. Common historical, cultural and linguistic

roots. Institutional network relationships.

2. Strong economic and business ties:

Spanish companies have invested in strategic

sectors in Latin America (banking, utilities,

communications and transport, building

industry, airport management, etc.)

3. Good communications: Spain is a major

connecting hub for airlines traveling between

America, Europe and Middle East.

4. Multinational companies are increasingly

choosing Spain for their Latin American

headquarters.

5. Spain has become the European HQ for

Latin American multinational companies.

6. In the USA there are more than 50 million

people working in Spanish.

Why is Spain a perfect hub for doing business in Latin America?

17

Spain is the world´s 2nd-largest investor in Latin America among European countries.

Source: ECLAC, 2014.

2. Market Access

18

Spain: Top- Outward FDI Stock by country EUR Millions

Source: Spanish Ministry of Economy and Competitiveness, 2014.

2011 2012

% TOTAL 2012

1 UK 51,882 59,342 14%

2 BRAZIL 60,157 56,692 13%

3 USA 52,534 53,884 12%

4 NETHERLANDS 30,764 36,496 8%

5 MEXICO 26,966 29,202 7%

6 PORTUGAL 22,159 21,705 5%

7 FRANCE 15,199 15,789 4%

8 LUXEMBOURG 26,406 14,223 3%

9 SWITZERLAND 15,105 13,615 3%

10 ARGENTINA 15,183 12,976 3%

11 CHILE 12,192 12,405 3%

12 GERMANY 21,011 10,160 2%

13 VENEZUELA 4,960 9,181 2%

14 COLOMBIA 6,231 6,654 2%

15 HUNGARY 2,642 6,331 1%

16 PERU 4,228 5,716 1%

17 AUSTRALIA 5,317 5,462 1%

18 CHINA 4,496 5,172 1%

19 ITALY 4,807 5,054 1%

20 POLAND 3,848 4,792 1%

TOTAL 447,291 438,359 100%

Latin America and the Caribbean: origin of FDI

USA; 23%

Spain; 9%

Latin

America;

9% Netherland

s; 7% Canada; 5%

UK; 4%

Japan; 3%

China; 2%

Others;

38%

Many Spanish companies have a strategic position in key sectors in Latin America

(ICT, energy, finance, infrastructures, etc.)

2. Market Access

19

http://www.bancosantander.es/index.html

http://www.google.es/imgres?imgurl=http://portal.gasnatural.com/documentos/Enlaceimagen/GNF_180x80,3.gif&imgrefurl=http://portal.gasnatural.com/servlet/ContentServer?gnpage=1-1-0&centralassetname=1-1-0-0-0-0-0&usg=__g054TrumdyWTCb95Sf8U0LyikI8=&h=80&w=180&sz=5&hl=es&start=2&zoom=1&um=1&itbs=1&tbnid=vQ3rwpjCRGuLZM:&tbnh=45&tbnw=101&prev=/search?q=gas+natural+fenosa&um=1&hl=es&sa=N&biw=1260&bih=893&tbm=isch&ei=KYEdTtWDNdPG8QOJzciECA

Some multinational companies set up in Spain to manage their operations in Latin

America or the EU.

In addition, Spain has become the European Headquarters of Latin-American

multinational companies doing business in Europe and MENA countries.

• LATIBEX: the single international market for Latin American securities

regulated by the Spanish Stock Market.

2. Market Access

20

http://www.huawei.com/

Spain is a suitable platform within the European market for doing business with

North- African, Mediterranean, and Middle East countries:

2. Market Access

• 19 Agreements to Avoid Double Taxation: Albania, Algeria, Bosnia and Herzegovina Croatia,

Cyprus, Egypt, France, Greece, Israel, Italy, Kuwait, Malta, Morocco, Montenegro, Saudi Arabia,

Slovenia, Tunisia, Turkey, United Arab Emirates.

• 15 Agreements for Protection And Promotion of Reciprocal Investments: Albania, Algeria,

BosniaHerzegovina, Croatia, Egypt, Jordan, Kuwait, Lebanon, Libya, Montenegro, Morocco,

Slovenia, Syria, Tunisia, Turkey.

• Euro-Mediterranean

Association Agreements with

Egypt, Israel, Jordan, Lebanon,

Morocco, Tunisia and Algeria for

the gradual liberalization of

trade in the Mediterranean area.

21

Euro-Mediterranean Association Agreements

Agreements for Protection and Promotion of Reciprocal Investments

Agreements to Avoid Double Taxation

Key Role of the Spanish Canary Islands Special Zone (ZEC) as a commercial and

logistic hub with Africa

Geo-strategical location: On the

Southernmost border of the

European Union (EU)

Strong historical and commercial

ties with Africa and America

Tax benefits for ZEC entities

Authorized by the European

Commission in January 2000

Europe’s most beneficial tax regime (4% corporate tax rate).

Excellent communications and services infrastructure.

Interesting tri-continental logistic platform to Africa, Latin America

and Europe

www.zec.org

2. Market Access

22

http://www.zec.corg/

2. Market Access

Source: Global Location Trends. IBM Global Business Services. 2015. (Projects of less than 10 jobs were not )included

Top ranking destination cities according to investment projects

Global Location Trends. IBM Global Business Services 2015

23

3. Macroeconomic situation and structural

reforms

24

25

Spain is growing consistently and in a balanced way The Spanish economy is growing twice as fast as the Euro Area

Growth driven primarily by investment, followed by private consumption

3. Economic policy and structural reforms

Source: Ministerio de Economía y Competitividad, OECD, IMF and

European Commission.

Full year Q1 Q2 Q3 Q4

Private consumption expenditure 1,2 3,1 2,5 2,9 3,5 3,5 3,0 2,7 2,5

General Government consumption expenditure 0,0 2,7 1,5 2,5 3,0 3,7 0,3 1,0 1,5

Gross Fixed Capital Formation 3,5 6,4 6,1 6,3 6,7 6,4 5,6 5,6 5,5

National Demand* 1,6 3,7 3,1 3,4 4,1 4,1 2,9 2,9 2,9

Exports of goods and services 5,1 5,4 5,8 6,0 4,5 5,3 6,0 5,8 5,7

Imports of goods and services 6,4 7,5 7,6 7,4 7,2 7,7 6,4 6,3 6,2

External demand* -0,2 -0,5 -0,4 -0,2 -0,7 -0,6 0,1 0,0 0,0

Gross Domestic Product 1,4 3,2 2,7 3,2 3,4 3,5 3,0 2,9 2,9

(*) Contributions to GDP in p.p

Other macroeconomic variables

Full year Q1 Q2 Q3 Q4

Unemployment rate (in %) 24,4 22,1 23,8 22,4 21,2 20,9 19,7 17,6 15,5

Full-time Equiv. Employment (YoY Growth) 1,1 3,0 2,9 2,9 3,1 3,0 3,0 2,9 2,9

Net lending(+)/borrowing(-) with RoW (% of GDP) 1,6 1,5 1,7 2,0 2,2 -- 1,6 1,4 1,3

GDP deflator (YoY Growth) -0,4 0,6 0,5 0,5 0,7 0,7 1,1 1,4 1,6

Deficit Excl. Financial Sector One-Offs (in % of GDP) -5,78 -4,2 -0,68 -2,95 -3,10 -- -2,8 -1,4 -0,3

Macroeconomic scenario (YoY growth rates in percent)

2016 2017

2016 2017

2014 2018

2014 2018

2015

2015

26

GDP growth and current account balance

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

2008 2009 2010 2011 2012 2013 2014 2015 (p) 2016 (p) 2017 (p) 2018 (p)

Real GDP (% change) Current account balance (%GDP)

GDP growth and current account balance

Real GDP (% change)

Current account balance (%GDP)

Source: National Statistics Institute and Ministry of Economy and Competitiveness

Unlike previous expansions, growth is being consistent with external

surplus

27

Labour Market Reform Competitive Labour Costs: More Flexibility, Productivity, Employment & Training

Public Sector Reform Fiscal consolidation at all levels of Public Administration

Restructuring process completed in 2013 Financial System Reform

Reforms for Competitiveness

Competitive Markets Single Market Law. Services & Product Markets Liberalization

Investments and R&D Incentives

EU Framework: Competitiveness, Employment & R&D activities

Favourable tax rate on corporate income (25% in 2016). Fiscal Incentives

Fiscal Reform

More openness means a more Competitive & Resilient Economy External Sector

New fast track regime for International Investor on Residence & Working Visa. Visa & Work Permits

28

Public Sector Reform: Fiscal Consolidation at all levels of Administration

Strengthening the structural fiscal framework:

Constitutional Reform pioneered adoption of the Fiscal Compact.

Budgetary Stability Law provides for further fiscal discipline and far‐reaching monitoring and

enforcement tools.

Independent Fiscal Authority.

Measures to increase income and reduce expenditure at all levels, with the firm aim of achieving the deficit

goal agreed with the EU (Pension System Reform, Reform of the Public Administrations).

A Fiscal Reform to boost job creation and revitalize the economic growth.


Source: Ministerio de Hacienda y Administraciones Públicas

2014 2015 2016 2017 2018

-3.56 -2.9 -2.2 -1.1 -0.2

Autonomous Communities -1.75 -0.7 -0.3 -0.1 0.0

0.57 0.0 0.0 0.0 0.0

-1.04 -0.6 -0.3 -0.2 -0.1

-5.78 -4.2 -2.8 -1.4 -0.3

Local Governments

Social Security

General Government

Net Lending(+)/Borrowing. (% of GDP. Excl. Financial Sector One-Offs)

Central Government

29

Adjustment and recapitalization of the financial system: Spain’s financial sector is now

leaner, more efficient and better capitalized.

Intense restructuring process in terms of size and capacity. The total number of

entities in the financial sector, excluding credit cooperatives and foreign branches,

has decreased from 50 in 2009 to 12 at the present time.

Sanitization of bank balance sheets (recognition and treatment of bad assets):

Separation of assets to the Asset Management Company deriving from Bank

Restructuring (Spanish acronym: SAREB): Transfer of assets worth 106,58 billion euros

at a price of 50,78 billion euros.

Recapitalization of individual institutions and the entire system: The top quality capital

ratio, namely Common Equity Tier 1 or CET1, of Spanish banking institutions stood at

12.4%; and the overall capital ratio is 14.3%, far exceeding the regulatory minimum

levels.

Non-performing loans (NPLs) have continued to decline steadily, in line with the pick-up

in economic activity (-23.9% year oy in Q4 2015). The refinanced or restructured credit

to the resident private sector has also been declining.


29

Labour Market Reform:

Fostering Labour flexibility and productivity at company level.

Firm-level salary bargaining prevails over national, regional or sector collective

agreements.

Collective dismissals without administrative authorization are allowed for firms

posting falling profits for three or more consecutive quarters and elimination of

procedural wages.

Convergence and reduction of dismissal costs in line with EU(27) average.

Fair dismissal: severance pay of 20 days per year, up to 12 months

Unfair dismissal: severance pay of 33 days per year, up to 24 months. This

means a reduction of 26.6% in the paying severance

Simplification and clarification of the regime for individual and collective dismissals

due to economic circumstances relate to sales, revenues trends.

Creation of a new permanent contract directed at SMEs

Incentives and tax relief for job creation: €500 exemption for employers’

contributions for common contingencies to the Social Security when the worker is

hired under a full-time, open-ended contract. This exemption applies for two years.


30

31

Measures to foster growth, competitiveness and entrepreneurship

Law of Guarantee of Market Unity: eliminates the fragmentation of the national market, and enables a

convergent nationwide product/service regulation across all regions

Reform of the public administration services which is still under way.

Liberalization of the retail sector. No restriction on commercial opening hours in areas of commercial

attractiveness; increase of the number of opening days.

Deregulation of professional services.

Plan on Fostering entrepreneurship and business environment: measures to support entrepreneurs,

SMEs and self‐employed workers.

Significant reduction of the red tape to start a business.

The authorization of visa and residence permits will be made quicker and easier on grounds of

economic interest

National Commission of Markets and Competition: incorporates all sector regulatory bodies and the

National Commission of Competition .

Education reform on Improving the quality and results of Education and improves Vocational Training:

Updating of qualifications, modernization of tools and gradual implementation of dual training.

Law to De-index the Spanish Economy: Decoupling of the public administration service prices and fees

from the CPI (consumer prices index).

Strengthening of the Tourism Sector: A comprehensive National Tourism Plan (PNIT) for the period 2012-

2016 has been approved.

Reform of the Electricity Sector

Creation of the State Research Agency

Second-chance Mechanism Law to configure a fresh start for entrepreneurs in Spain and self-employed.


31

32

Investors’ Residence & Working Visa

Fast track framework for Investors and qualified professionals: Residence and

Working visa

THE PROCEDURES

10 days for visas and 20 days for authorizations

A single authorization for living and working in

Spain

Valid for the whole of Spain

GENERAL REQUIREMENTS

Not being in an illegal situation in Spain

Being 18 years old or older

Not having criminal records

Public or private health insurance in Spain

Enough economic resources.

VISA AND AUTHORIZATION CONCESSIONS FOR

Investors

Entrepreneurs

Highly qualified professionals

Scientists and researchers

Intra-corporate transferred employees

Freedom to live in Spain: Granted residence and work permits authorization

Source: http://extranjeros.empleo.gob.es/es/UnidadGrandesEmpresas/folletos/index.html

The family will be able to apply at the same time

Real Estate 0.5 Mill €

Spanish

Companies

1 Mill €

Bank Deposit 1 Mill €

Public Debt 2 Mill €

http://extranjeros.empleo.gob.es/es/UnidadGrandesEmpresas/folletos/index.html

RESULTS

Spanish GDP ended 2015 at an average annual rate of 3.2%, 1.8 points higher than in 2014 and the

highest since 2007.

GDP growth is not linked to current account deficits as in previous growth cycles. The Current

Account Deficit: from roughly -10% in 2007 to a current account surplus in 2015. This is the third

consecutive yearly current & capital Account Surplus (2.1% of GDP)

Spanish exports of goods grew by 4.3% year-on-year in 2015 (1.8 points higher than the 2.5%

growth posted in 2014) to amount to 250.24 billion euros, the highest figure since records began.

The balance of Spanish exports in 2015 exceeds the figure for the Eurozone (4.2%). By country,

Spanish exports grew by more than those of France (4%), Italy (3.7%) the United Kingdom (-1.7%),

United States (-7.1%) and grew in Japan by (3.5%).

The ongoing geographic diversification of the Spanish exports pushes the increase of sales abroad:

In 2015, our exports to non-EU countries grew by 0.5% year-on-year for the sixth year in a row

Exports to third countries amounted to 35.2% of the total (from the 27,5 in 2005), with noteworthy

growth in exports to Oceania (8.3%), America (7.1%) and Asia (5.3%). Within these regions,

noteworthy growth was seen in sales to high-potential markets such as the United States (7.2%),

China (8.8%), Mexico (21.6%), Chile (23.9%), the Philippines (11.5%), Saudi Arabia (36%) and

Australia (15.1%).

Foreign productive investment amounted to 19.212 billion euros in 2014, 13.85% more than in 2013

according to data from the Foreign Investment Register of the Ministry of Economy Affairs and

Competitiveness

According to data released by the INE unemployment fell by 678,200 2015, the largest annual drop

since EPA records began. Spain has generated 36.6% of all the employment created in the Euro

Area since 2014.


33

For more information about macroeconomic

situation and economic policy, please log on

to:

www.tesoro.es

and

www.thespanisheconomy.com

34

4. Business climate

o Infrastructure and Technology

o Incentives and taxes

o Human capital: Productivity, Skilled

Labour Force and Competitive Costs

o Quality of life: Expat setting up

35

4. Business climate

o Infrastructure and Technology

36

37

250 airlines have scheduled flights, operating out of the country’s 47 airports, with Madrid

and Barcelona the main hubs.

Airport Network

Source: Eurostat: Last data available 2014

4. Business climate: Infrastructure & Technology

Country Thousands of passengers

on board

United Kingdom 22,0022

Germany 186,446

Spain 165,354

France 141,742

Italy 121,324

Turkey 165,720

Netherlands 60,963

Switzerland 46,127

Norway 37,602

Greece 39,118

Sweden 32,766

Portugal 32,558

Denmark 29,004

Belgium 28,775

Austria 25,714

Ireland 26,311

Poland 25,714

Finland 17,172

38 Source: International Union of Railways. Updated Sept 2014

Spain is the 3nd largest worldwide (1st in Europe) in High-Speed Network and the European leader with more

than 2500km in service, traveling at an average commercial speed of 222 km/h, higher than that of Japan

(218 km/h) and France (216 km/h). And a total railway network over 15,500 km.

According to The Global Competitiveness Report (World Economic Forum), Spain has one of the best indexes

of rail road infrastructure Quality in the world, and one of the best subway systems in major cities.

Railway Network


High-Speed Lines in the World (kilometres)

0 2000 4000 6000 8000 10000 12000

China

Japan

Spain

France

Germany

Italy

Turkey

South Korea

USA

Taiwan

Belgium

Netherlands

UK

Switzerland

Source: ADIF

Railway Network

39

Spain has the largest EU highway network with 14,701 km. According to The Global

Competitiveness Report (World Economic Forum), Spain has one of the best indexes of

Quality of roads in the world.

Road Network


Length of Motorways (kilometres 2012)

Source: Eurostat 2015. Last data available.

14701

12879

11465

6726

2988

2127

1719

1515

1419

1365

1254

900

780

769

751

0 5000 10000 15000 20000

Spain

Germany

France

Italy

Portugal

Turkey

Austria

Hungary

Switzerland

Poland

Croatia

Ireland

Finland

Slovenia

Czech Republic

40

4. Business climate: Infrastructure

Main Port Facilities

Excellent maritime connections, with 46 state-own ports on both the Atlantic and the

Mediterranean coasts, with 3 ports among the Top-20 container ports in Europe (Algeciras,

Valencia and Barcelona). According to The Global Competitiveness Report (World Economic

Forum), Spain has one of the best indexes of Quality of port infrastructures in the world.

Source: European Sea Ports Organization. ESPO & Puerto del Estado, 2015.

2014 %14/13

# Port | Country Mill € / Tonnes

1 Rotterdam (NL) 445,0 1,0%

2 Antwerp (NL) 199,0 4,3%

3 Hamburg (DE) 145,7 4,7%

4 Amsterdam (NL) 97,4 2,5%

5 Novorosiysk (RU) 121,6 8,1%

6 Algeciras (ES) 95,0 4,5%

7 Marseille (FR) 78,5 -1,9%

8 BremerHaven (DE) 78,2 -0,8%

9 Le Havre (FR) 67,6 0,6%

10 Valencia (ES) 67,0 3,1%

11 Duisburg (DE) 65,0 4,8%

12 Saint Petersburg (RU) 61,1 6,1%

13 Trieste (IT) 56,6 1,1%

14 Constantza (RO) 55,6 0,7%

15 Genoa (IT) 52,0 5,1%

16 Ghant (BE) 47,1 -2,3%

17 Dunkerke (FR) 47,0 7,8%

18 Barcelona (ES) 46,4 9,4%

19 Calais (FR) 43,3 5,1%

20 London (UK) 43,2 0,0%

21 Zeebrugge (BE) 43,0 0,5%

Top - 20 European Ports by Throughput

41

More than 80 Technology Parks

The main sectors of the

companies located in the Parks

Source: Association of Science and Technology Parks of Spain 2013


23%

15%

6%

5%

5% 4% 4% 4%

3% 2%

1%

28%

ICT Engineering/Consultancy

Medicine/Health Industrial

Agriculture/Biotechnology Energy/Environment

Technology centres/R&D Training/Human Resources

Aeronautics/Automotive Electronics

Business Centres Others

2 2

2

Madri

d

Seville

Huelva

1

Córdoba

2

Cádiz

2 1

Jaén 1

Almería

1 Granada

1 1

Murcia

2

Alicante 2

Barcelona

7 6

Cantabria

2

Valencia 2

Castellón 1

León, Burgos

and Valladolid

1

Valladolid 1

Teruel

1

Lérida

1

Gerona

1

Palma de Mallorca

1

Asturias 2

Gran Canary

1

Álava

1

Málaga 1 2

1

Fuerteventura

1

Tenerife

1

Guipúzcoa

2 1

Biscay

1

Huesca

1

Saragoss

a

1

Pontevedra

1

Badajoz

1

Orense

1

La Rioja

1

Salamanca

1 Guadalajara

1

Parks at full performance

Parks in development

66 parks in the Association of Science and

Technology Parks of Spain, hosting 6286

companies

42 Source: Eurostat – Community Survey on ICT usage in enterprises, 2011 (Data 2010)

0

10

20

30

40

50

60

70

80

90

100

ES

MT

FR

UK

FN

SE

GE

BG

NL IT PT

EU

-27

Broadband penetration in Business (% of companies with broadband access)

0

20

40

60

80

100Computer

Local Area Network

Wireless LAN

Broadband

Mobile Phones

Other Technologies

E-Mail

Internet

Total 10 to 49 50 to 249 250 or more

Source: ONTSI, based on INE 2011

ICT Infrastructures in Spanish

Businesses

Whatever the size of the company, Spain leads the field in technologically enabled

companies

Technology Adoption by Companies


43

24%

18%

29%

25%

17%

21%

11%

18% 20%

13%

16%

31%

17% 17%

21%

37%

28%

31%

13%

36%

20% 19%

28% 28% 28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

2.500.000

5.000.000

7.500.000

10.000.000

12.500.000

15.000.000

17.500.000

20.000.000

22.500.000

25.000.000

MT CY LU EE LV SI SK LT IE EL HU FI CZ PT AT DK BE SE PL NL ES IT FR UK DE

Line

s/10

0 in

habi

tant

s

Bro

adba

nd L

ines

Broadband Lines and Penetration Rate in

the EU27, lines/100 inhabitants

Source: XIV Implementation Report, European Commission, 2010

Broadband: European Comparison


4. Business climate

o Incentives and taxes

44

45

4. Business climate: Incentives & taxes

There are other regional and local incentives available in all Autonomous Communities

Main incentives for productive investment

European Union Incentives Scheme for Large Companies in Spain

Grants from Ministry of Finance and Public Administration

Additional Increase in Incentives from 10

to 20% for SMEs

Spain has got many Institutions that promote incentives in different calls along the year

R&D:

• The Centre for Industrial Technological Development (CDTI) has got a wide range of grants and loans at

competitive low interest rate for technological projects.

• The State Secretariat for Innovation in the Ministry of Economy and Competitiveness (MINECO) also offers

support with grants and loans for technological projects developed by companies and public bodies

• INVEST IN SPAIN/ICEX has developed a programme for supporting foreign companies up to €200,000 for

investments with a high degree of R&D in competitive tenders

• The National Innovation Company (ENISA) finances SMEs up to €1.5 million with participative loans at a

very competitive interest rate and where no-guarantee is required.

• The Public organization RED.ES promotes the IT activities of technological companies and start-ups financing

investments in infrastructures, equipments and so on.

Investments:

• The Official Credit Institute (ICO) supports the creation/investment carried out by companies and

entrepreneurs with loans/ leasing at a low rate

• The Ministry of Industry, Energy and Tourism (MINETUR) and The Ministry of Economy and

Competitiveness (MINECO) support investments in equipment and infrastructures with grants and loans for

large and SMEs companies

• The Institute for Energy Diversification and Saving (IDAE) participates directly in projects with loans at a

low interest rate

Human Resources:

•The Ministry of Industry, Energy and Tourism (MINETUR) and The Ministry of Economy and

Competitiveness (MINECO) support investments in human resources, training and hiring personnel with grants

and loans


46

Taxes: fiscal incentives for R&D

1. Favorable fiscal system for foreign investors and R+D activities: The 2nd most

favorable fiscal incentives for R&D among OECD countries.

2. In addition, the Spanish CIT law introduced a patent box type of incentive. Under this

regime 60% of net income arising from the letting of the right to use certain qualifying

intellectual property (IP) rights are tax-exempt.

Note: Tax subsidies are calculated as 1 minus the B index. For example, in Spain, 1 unit of R&D expenditure by large firms results in 0.349 unit of tax relief. Source: “Science, Technology and Industry, Outlook”. OCDE, 2012.


47

-0,1

0,0

0,1

0,2

0,3

0,4

0,5

Large firms SMEs

Incentives for hiring people


Source: Ministry of Employment and Social Security

48

Permanent Contract Incentives: Reduction in the employer's social security

contribution

Company Size Monthly Amount (€) Term

New contract (up to 31/08/2016) All Exemption for common contingences: 500€ 2 years

National Youth Guarantee System All 300 € 6 months

Training Contracts Incentives: Reduction in the employer's social security

contribution

Company Size Annual Amount (€) Term

New contract

Employee<30 years

Less than 250

employees 100% Throughout

the term of the

contract

More than 250

employees 75%

Training activities All Depends on the type of the training: Maximum: 4,160€ 3 years

Conversion of Training, Apprenticeships

Contracts into Permanent Contracts

All

1,800 € yearly for women 3 years

1,500 € yearly for men

Partial-Time contracts linked with training

activities

Less than 250

employees 100% for common contigences

1 year + 1

year plus

More than 250

employees 75% for common contigences

Hiring Incentives:Reduction in the employer's social security contribution

Company Size Annual Amount (€) Term

Research staff All 40% for common contingences

Throughout

the term of the

contract

"First young job" contract All

700 €/yearly for women 500

€/yearly for men 3 years

Employee<30 years

Apprenticeship contracts for first jobs All

100% for common contingences when the companies

hire beneficiaries of the National Youth Guarantee

System

Throughout

the term of the

contract

Employee<30 years

Companies with less than 50 workers

16>Employee<30

Employee>45 years

Less than 50

employees

3 years

hiring unemployed Average of 1,200 €

Average of 1,400 €

Companies with up to 9 workers hiring

unemployed Employee<30 years Up to 9 employees 100% for common contigences 1 year

Source: ICEX-Invest in Spain and Ministry of Employment and Social Security

Taxes: Moderate tax burden

The comparative analysis shows that Spain is a country with relatively moderate

ratio between Tax Revenues (Including Social Security Contributions ) and GDP

(32.5% GDP)

Countries UE. Tax Revenues (Including Social Security Contributions ) as a percentage of GDP


Source: Eurostat 2012

0,0

10,0

20,0

30,0

40,0

50,0

60,0

49


Taxes: moderate tax burden

1. A favourable tax rate on corporate income (28% for tax year 2015, and to 25% in 2016).

2. Reduced corporate tax rate (15%) for companies established on or after January 1,

2013. The reduced rate will be applicable for the first two years that the company is

generating profit.

3. An attractive allowance and deduction system in corporate tax (20.1% effective rate).

4. Participation Exemption system: dividends or profit participations from business

activities carried on abroad through subsidiaries or branches and the gains obtained

from the transfer of these securities are tax exempt in Spain if the Spanish company

holds a participation of at least 5% in the non resident company.

5. Favourable tax incentive for foreign workers: fixed rate of 24% (up to maximum of

600,000 €).

6. Spain has tax treaties with 88 countries. Under these treaties, residents in foreign

countries are taxed at a reduced rate, or are exempt from Spanish taxes on certain

items of income they receive from sources within Spain. These reduced rates and

exemptions vary among countries and specific items of income.

Source: Paying taxes 2013 (PwC & World Bank)

50

Taxes: ETVEs

1. Foreign Securities Holding Companies (in Spanish, ETVE) is a Special Tax Regime

applicable to Holding companies.

a) No taxation on paid-in dividends.

b) No taxation on paid-in capital gains.

c) No taxation on paid-out dividends/gains.

d) Stable and reliable regime.

e) Wide tax treaty network (88 treaties to avoid double taxation).

2. The attractiveness of ETVEs goes beyond the pure Tax Holding Regime. The ETVE

regime is an opportunity for international investors to channel their outbound

investments (in Europe, LATAM and other countries) through Spanish HoldCos.


51

Main Investors in Spanish ETVEs Source: Ministry of Economy and Competitiveness , 2015. Data Referred to stock 2012

0

5

10

15

20

Billio

ns

4. Business climate

o Human capital: Productivity, Skilled

Labour Force and Competitive Costs.

o Decreasing Unit Labour Costs.

52

Labour Costs

Labour costs in Spain are below the EU-28 average

4. Business climate: Human Capital:

productivity and skilled labour cost

53

43.0 41.2 39.8

35.6 35.0 32.5 31.7

31.7 31.3

28.0 27.6

23.7 21.1

20.9

15.9 14.3 14.1

12.6 11.5 10.4 9.3 8.8 7.8

7.4 6.5 6.2 4.7 3.7

3,8

00

05

10

15

20

25

30

35

40

45

Source: Destatis 2015 (Federal Statistical Office Germany)

Cost per hour Private Sector 2014 €/hour

Labour Costs

Unit Labour Costs more competitive than main European economies



54

85

90

95

100

105

110

115

2010 2011 2012 2013 2014 2015

Source: Eurostat. March 2016

UNIT LABOUR COST EVOLUTION, 2010-2015 Index, 2010=100

Germany

Spain

France

Italy

United Kingdom

Compensation of employees

Spain has the lower employee compensation in comparison with main European economies



55

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Eurostat. March 2016. Data: Millions € (at current prices). Note: Compensation of employees is defined as the total remuneration, in cash or in kind, payable by an employer to an employee in return for work done by the latter.

EMPLOYEE COMPENSATION Millions € (current prices)

Germany

Spain

France

Italy

United Kingdom

Salaries and wages in Spain

Average salaries by department for different sectors



56

0

10

20

30

40

50

60

70

80

90

Source: ODE Group Note: Gross Salary. For companies between 150-500 employees

Average Salaries by Department for Different Sectors 2016 Thousand €

Executive Director/National/Chief

Division Director

Manager/Head of Department

Officer/Programmer/Technician

Labour Productivity

Spanish Labour Productivity is better than EU-28 Labour Productivity



57

-4,0

-3,0

-2,0

-1,0

0,0

1,0

2,0

3,0

4,0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: Eurostat. December 2015. Data: % change on previous period

REAL LABOUR PRODUCTIVITY PER PERSON EMPLOYED % change on previous period

EU 28

Spain

Social Security Costs

Employer contribution rate: : From 18.9% to 23.5% in case of permanent contract during

2 years.

Incentives for certain hiring and training contracts applied to reduce employer Social

Security Contributions.

If the monthly salary is higher than the maximum contribution base, the Social Security

rate applies to this maximum contribution base, where the effective rate is lower.

Source: Ministry of Employment and Social Security



58

329.83 € 18.9%-23.5%

1,125.38 €

100 € 200 € 300 € 400 € 500 € 600 € 700 € 800 € 900 €

1.000 € 1.100 € 1.200 € 1.300 € 1.400 € 1.500 €

<1,067.40 € 1,067.40 € 3,641.99 € >3,642 €

Co

ntr

ibu

tio

n t

o S

. S

ecu

rit

y

Monthly Salary

Group 1 Employer S. Security Contribution for permanent contract during 2 years

Employer’s Social Security contributions before and after Royal Legislative Decree 1/2015



59

If a company hires a worker with a salary of 20,000€, after RD 1/2015, the total employer

contribution to Social Security is 4,764€ per year. That means a reduction of 23% in

comparison with the same employment contract before RD 1/2015 (6,180€).

Total Employers' Contribution to Social Security

Total Employers' Contribution to Social Security with 500€ Exemption

Group 1

Group 1

Annual (€) Monthly (€)

Annual (€) Monthly (€)

Salary 20,000.00 1,666.67

Salary 20,000.00 1,166.67

General Contingencies 4,720.00 393.33

General Contingencies 3,304.00 275.33

Unemployment 1,100.00 91.67

Unemployment 1,100.00 91.67

Accidents 200.00 16.67

Accidents 200.00 16.67

Salary Guarantee Fund 40.00 3.33

Salary Guarantee Fund 40.00 3.33

Professional Training 120.00 10.00

Professional Training 120.00 10.00

Total Employer's Contribution to

S.S. 6,180.00 515.00

Total Employer's Contribution to S.S.

4,764.00 397.00

Total Cost 26,180.00 2,181.67

Total Cost 24,764.00 2,063.67

% 23.61

% 19.24

Source: Ministry of Employment and Social Security Source: Ministry of Employment and Social Security

60

Human Capital: Business School

3 Spanish Business Schools are in Top-10 in the 2015 Financial Times

ranking of European business schools

Business Climate

European Business School ranking 2015

2015 Ranking School name Country

1 London Business School UK

2 HEC Paris France

3 Insead France

4 University of St Gallen Switzerland

5 IE Business School Spain

5 Esade Business School Spain

7 SDA Bocconi/Universita Bocconi Italy

8 Iese Business School Spain

9 IMD Switzerland

10 University of Oxford: Saïd UK

11 ESCP Europe France

12 Imperial College Business School UK

13 Rotterdam School of Management, Erasmus University Netherlands

14 University of Cambridge: Judge UK

15 Vlerick Business School Belgium

16 Essec Business School France

16 ESMT— European School of Management and Technology Germany

18 Mannheim Business School Germany

19 Warwick Business School UK

20 Grenoble Graduate School of Business France

Source: Financial Times 2015

http://www.google.es/imgres?imgurl=http://inversores.es/wp-content/uploads/2009/05/iese.jpg&imgrefurl=http://inversores.es/las-escuelas-de-negocios-espanolas-siguen-creciendo/&usg=__FNaTdNmjyVrpilOPsagN1ke3Q-Q=&h=409&w=354&sz=16&hl=es&start=5&zoom=1&um=1&itbs=1&tbnid=6A9zkCpfIKeQZM:&tbnh=125&tbnw=108&prev=/images?q=IESE&um=1&hl=es&sa=N&rls=com.microsoft:es&tbs=isch:1&ei=1ylVTbOlOoK0tAaQg6SnDQ

http://www.google.es/imgres?imgurl=http://www.ie.edu/IE/img/imagen_corporativa/Escuelas/IEBusinessSchool_Color.jpg&imgrefurl=http://www.ie.edu/IE/php/es/escuelas.php&usg=__4mBSK7AbKFG38dxAkO_rQy-k1xE=&h=278&w=571&sz=50&hl=es&start=2&zoom=1&um=1&itbs=1&tbnid=PlinZbb5wHjuvM:&tbnh=65&tbnw=134&prev=/images?q=ie+business+schools&um=1&hl=es&rls=com.microsoft:es&tbs=isch:1&ei=UCpVTa_NJY7vsga5o_C4DQ

http://im.ft-static.com/content/images/81b920b4-98ac-11e5-95c7-d47aa298f769.pdf

Business Schools

Spanish Business Schools have three MBA programs among the top 20 in the world



61

Global MBA ranking 2015

2015 Ranking School name Country

1 Harvard Business School USA

2 London Business School UK

3 University of Pennsylvania: Wharton USA

4 Stanford Graduate School of Business USA

4 Insead France/Singapore

6 Columbia Business School USA

7 Iese Business School Spain

8 MIT:Sloan USA

9 University of Chicago: Booth USA

10 University of California at Berkeley: Haas USA

11 Ceibs China

12 IE Business School Spain

13 University of Cambridge: Judge UK

14 Hong Kong UST Business School China

14 Northwesterm University: Kellog USA

16 HEC Paris France

17 Yale School of Management USA

18 New York University: Stern USA

19 Esade Business School Spain

20 IMD Switzerland

Source: Financial Times 2015

http://www.google.es/imgres?imgurl=http://inversores.es/wp-content/uploads/2009/05/iese.jpg&imgrefurl=http://inversores.es/las-escuelas-de-negocios-espanolas-siguen-creciendo/&usg=__FNaTdNmjyVrpilOPsagN1ke3Q-Q=&h=409&w=354&sz=16&hl=es&start=5&zoom=1&um=1&itbs=1&tbnid=6A9zkCpfIKeQZM:&tbnh=125&tbnw=108&prev=/images?q=IESE&um=1&hl=es&sa=N&rls=com.microsoft:es&tbs=isch:1&ei=1ylVTbOlOoK0tAaQg6SnDQ

62

Human Capital: Global Skills

Spain occupies 3rd position in the “Hays Global Skills Index, 2015” that

measures a comprehensive set of macroeconomic and labour market

indicators across 31 countries

Business Climate

The Hays Global Skills Index, 2015

Rank Country Score Rank Country Score

1 United States 6.9 17 Austria 5.1

2 Sweden 6.7 18 Australia 5.0

3 Spain 6.4 19 Denmark 5.0

4 Germany 6.4 20 Brazil 5.0

5 Hungary 6.3 21 India 5.0

6 United Kingdom 6.1 22 Poland 4.9

7 Japan 6.1 23 Czech Republic 4.9

8 Luxembourg 6.1 24 Chile 4.8

9 Russia 6.0 25 China 4.7

10 Colombia 5.9 26 Netherlands 4.7

11 Portugal 5.9 27 Singapore 4.7

12 Ireland 5.7 28 Switzerland 4.6

13 Canada 5.7 29 Hong Kong 4.5

14 Mexico 5.6 30 Italy 4.0

15 France 5.3 31 Belgium 3.7

16 New Zealand 5.1

Source: Hays Global Skills Index, 2015

Note: The seven indicators analyzed are: 1) Education Flexibility; 2) Labour Market Participation; 3) Labour Market Flexibility 4) Talent Mismatch; 5) Overall Wage Pressure; 6) Wage Pressure in High-

skill industries; 7) Wage Pressure in High-skill occupations

63

Human Capital: Highly skilled labor force

Spain occupies a prominence position in Europe in number of persons with

tertiary education, compared to the biggest European economies

Business Climate

0

10

20

30

40

50

60

United Kingdom France Spain Germany Italy

Source: OECD. April, 2015 Note: 2013, last data available

Population with tertiary education, 2013 % 25-34 year olds

4. Business climate

o Immigration

64

65

4. Business climate: Immigration

International mobility - New legal framework

THE PROCEDURES

10 days for visas and 20 days for authorizations

A single authorization for living and working in Spain

Valid for the whole of Spain

The family will be able to apply at the same time

GENERAL REQUIREMENTS

Not being in an illegal situation in Spain

Being 18 years old or older

Not having criminal records

Public or private health insurance in Spain

Enough economic resources.

VISA AND AUTHORIZATION CONCESSIONS FOR

Investors

Entrepreneurs

Highly qualified professionals

Scientists and researchers

Intra-corporate transferred employees

Freedom to live in Spain: Granted residence and work permits authorization

Benefits of the Schengen visa: freedom of movement

within the member states

Real Estate 500.000 €

Spanish Companies

1 mill. €

Bank Deposit 1 mill. €

Public Debt 2 mill. €

It is based on an agile and specialized system for visa and authorization concessions.

Source: http://prie.comercio.es/en/pages/programa-de-residencia-para-inversores-y-emprendedores-(prie).aspx

http://prie.comercio.es/en/pages/programa-de-residencia-para-inversores-y-emprendedores-(prie).aspx















66

4. Business climate

o Quality of life: Expat setting up

Foreign Schools

There are currently 198 international schools in Spain, including 136 English spoken

Schools, 24 French Schools and 17 German Schools, among others

4. Business climate: Quality of life

67

0

20

40

60

80

100

120

140

Source: Ministry of Education, 2016

International Schools in Spain, 2016

Spain is the 1st country in Europe in terms of quality of life for ex-pats and

3rd-ranked worldwide

With large communities of many different nationalities, Spain is known for its highly

cosmopolitan character. On average, 12.2% of the Spanish residents are foreign-

born, a figure that rises to 16-17% in regions like Madrid or Catalonia

One of the largest number of International Schools in Europe

Outstanding & modern health system with very high standards

Favourable fiscal regime for expatriates

Law enforcement: Assurance & stability in business and social life

Excellent climate, first-class gastronomy, wide range of cultural and leisure

activities


68


League table of OECD countries

Source: The Expat Explorer Survey 2015.(HSBC)

69

Average life expectancy at birth in the

EU-28 (2013)

Country Men Women

Italy 80,3 85,2

Spain 80,2 86,1

Sweden 80,2 83,8

Cyprus 80,1 85,0

Luxembourg 79,8 83,9

Malt 79,6 84,0

Netherlands 79,5 83,2

France 79,0 85,6

Ireland 79,0 83,1

Greece 78,7 84,0

Austria 78,6 83,8

Germany 78,6 83,2

Denmark 78,3 82,4

Belgium 78,1 83,2

Finland 78,0 84,1

Portugal 77,6 84,0

Slovenia 77,2 83,6

Czech Republic 75,2 81,3

Croatia 74,5 81,0

Poland 73,0 81,2

Slovakia 72,9 80,1

Estonia 72,8 81,7

Hungary 72,2 79,1

Romania 71,6 78,7

Bulgaria 71,3 78,6

Latvia 69,3 78,9

Lithuania 68,5 79,6

United Kingdom .. ..

Source: INE-Eurostat 2015

0,67

0,62

0,61

0,59 0,58

0,57 0,57

0,53 0,52

0,50

0,52

0,54

0,56

0,58

0,60

0,62

0,64

0,66

0,68

0,70

Expat Experience

5. Business opportunities

Automotive

ICT (Information and Communication Technologies)

Biotechnology, Pharmacy and Life Sciences

Aerospace

Logistics and Transport

Environment and Water Treatment

Chemical Industry

Nanotechnology

Agro-food

Real Estate

Tourism and leisure

Natural resources

Textile &Retail

70

5. Business opportunities: Automotive

71

Investing in Automotive

72

Why Spain for Automotive?

SPAIN is a key Player in the European Car Industry.

2nd manufacturer in the EU and 8th worldwide.

Productive and flexible manufacturing plants.

High Future Investment committed by Main Car manufacturers.

Powerful industrial supply chain and Auto Parts Industry.

Availability of highly qualified human resources.

High public and private investment in Professional Training.

Leadership in European Industrial Innovation-Mobility Sector.

Privileged Export Platform towards EU, Latin America, North Africa.

Open Country for Foreign Investment.

Public Support for Business Development.


73

Key figures: Automotive Industry in Spain

Spain is the 2nd-largest car manufacturer in Europe and 9th in the world.

Spain is the 1st manufacturer of Industrial Vehicles in Europe *

Most of the world's biggest car manufacturers are present in Spain with 17

automobile production plants.

Nine out of ten vehicles Made in Spain are exported to over 130 countries

Spain Automotive Parts Industry ranks 6th in the world in terms of turnover.

* Including light commercial vehicles


74


Sevilla

Valladolid

Palencia

Santander Álava

Vigo

Madrid Ávila

Navarra

Zaragoza

Valencia

Barcelona

Componentes

Nissan Mercedes-Benz

VITO y Clase V

(2014)

VW Polo (2014)

Citroën C4

Cactus (2014)

Renault Kadjar

(2015)

Renault Megane 3 Renault Megane 4

(e híbrido) (2016)

Renault Twizy Renault Captur

Nissan NT 500 Nissan NT 400

Iveco Daily y

Daily GNC (2015)

Renault Cajas

de Cambio

Ford S-Max

(2015)

Ford Mondeo y Hybrid (2014)

Ford Galaxy

(2015) Ford Kuga

Ford Transit Connect

y Tourneo Connect

Seat Ibiza

(2015)

Seat Leon (2015)

Audi Q3 (2015) Seat Altea

Nuevos Pick-up

2016

Nissan – Mercedes

– Renault

Nissan Pulsar

(2015)

Nissan NV 200 y

e-NV 200 (2014)

Iveco Stralis

Y Stralis

GNC/GNL

Iveco Trakker

Citroën C-Elysse Peugeot 301

Citroën Berlingo Peugeot Partner

Nuevo K9 (Berlingo – Partner – Combo)

(2016)

Citroën C4

Picasso

Chasis Mercedes-Benz

OC 500

Opel Corsa

(2014)

Opel Meriva

Opel Mokka Nuevos

Opel Meriva

Citroën C3

Picasso

(2016)

Motores Diésel

K9

Versión

GLP

Versión

Eléctric

a

Versión

GNC

Motores Gasolina

H4Bt y H5F

Motores

Ecoboost

(Gasolina) Motores

Nissan Diésel

Versión GNC

2

17 plants in Spain and more than 40 manufactured models

75 Sources: ANFAC (Spanish Association of Vehicle Manufacturers) · SERNAUTO (Automotive Parts Exporters Association ) Latest available figures

Key figures: Automotive Industry in Spain

Vehicle manufacturing in Spain was up 11% in 2014 reaching 2.4 million units

Automotive Industry turnover accounts for 10% of Spain’s GDP.

300,000 people directly employed in the Industry.

2,000,000 jobs linked to the Sector.

2.1 Million vehicles exported to 130 Countries in 2014 Export value €30bn.

Vehicle exports increased by 8.5% in 2014 to 2,039,893 units.

Automotive Industry Main exporter with 18% of total Goods Exports.

3-4 Million vehicles transported every year through the territory.

34 Technology Centres devoted to Automotive Industry.

R&D: One of the highest investment rates among all industries

€63 Million Annual average Investment in Professional Training by Car Manufacturers.

Lower Unit Labor costs than EU average in the Industry.


76

Sources: ICEX-Invest in Spain · Real Instituto Elcano · Ministry of Economy and Competitiveness (dataInvex)

Key figures: Foreign Direct Investment

New Industrial Plans have been approved by the 9 Multinational brands established

in the country.

13 new models assigned to Spanish plants between 2012-2015.

€10 billion investment in progress to expand production in Spanish Plants, including

new models and electric models

Plan of the Spanish Industry to produce 1 Million extra vehicles “3 Million Plan”.


77

Automotive Industry in Spain: AUTO-PARTS

Spanish Auto-Parts Industry ranks 6th in the world in terms of Turnover.

Main global suppliers of the Automotive Industry established in Spain.

1000 companies belonging to 720 groups provide customized Service to Car Manufacturers

200,000 people directly employed in the Sector

Turnover of €27.5 bn in 2013, 65% exported to 150 countries.

EU, USA, Mexico, North Africa and BRICs top ranking destinations of Spanish Exports.

€1,500 millions total industrial investment in 2013 – €785 million in R&D&i

Source: SERNAUTO (Spanish Association of Automotive Parts and Accessories Manufacturers). Last available figures: 2013.


http://www.faurecia.com/

http://www.robert-bosch-espana.es/es/es/startpage_11/country-landingpage.php

http://www.bridgestone.es/

http://www.ficosa.com/ficosa/WebPublica_ES/

http://www.cieautomotive.com/english/index.php

http://www.behr.de/internet/behrcms_eng.nsf

http://www.michelin.es/

78

Spanish Companies and Technology Centers are leading the 3 European projects on new batteries:

NECOBAUT, SOMABAT, GREEN LION.

The Spanish Technology Platform Move to Future ww.move2future.es brings together 150 Key

innovative Companies, Research and Technology Centers.

Spanish Scientific, Technological and Industrial capabilities on future transport are well

summarized in the document Intelligent Strategy for Future Transport (Green Vehicles

Spain).

120 Eco-electromobility projects with Spanish Participation and 110 New Products/Services compiled

for Green Car Initiatives.

Eco-Electromobility: Spanish Capabilities and Leadership

Spain contributes to Eco-Electromobility as a major

component designer and manufacturer and as provider of

Infrastructures and Network Intelligence.

Spanish Companies and Technology Centers have taken

part in 2 out of 3 of the projects of the European Green Cars

initiative.


http://www.move2future.es/







79

RENAULT, MERCEDES -BENZ, PEUGEOT- CITROËN, NISSAN are already manufacturing full

electric powered and hybrid vehicles in Spain.

i2e Full Electric Bus of IRIZAR already in the Market.

AUTO-PARTS companies with plants in Spain are already providing specific components and

systems for electric and hybrid vehicles.

Eco-Electromobility: Spanish Capabilities and Leadership


80 Sources: fDi Markets · Corporative Sources · ANFAC (Spanish Association of Car & Truck manufacturers).

Success stories

News/Investment Projects

RENAULT

November 2012 Renault approves the Industrial Plan 2012-2014 for the Manufacturing

Plants of Palencia (Megane), Seville and Valladolid (Captur and Twizzy models). 100

new jobs will be created in Seville's Transmissions Plant.

IVECO- (Fiat Group)

Industrial Plan up to 2016 for the manufacturing centers of Madrid and Valladolid (Heavy

Vehicles). Investment of €0.5 billion and creation of 1200 jobs throughout this period.

FORD

US-based automotive giant Ford will expand its manufacturing complex in Almussafes,

Spain. The company will build a new 80,000 m2 plant at the site to produce its own

automotive parts and increase the production of Ford Kuga by 10%. €1.1 billion

investment has been committed through the period 2009-2013.

MERCEDES

In 2013, the company will Invest up to €200 Million to adapt Vitoria Plant Facilities for the

new VITO VS20 and its Electric Version. The Industrial Plan secures jobs at the plant.


81

Sources: fDI Markets · Corporative Sources · ANFAC (Spanish Association of Car & Truck manufacturers).

PSA Peugeot-Citroën

It is to create 1000 new jobs in 2013 in the Manufacturing Facilities of Vigo for the

Production of Citroën C-Elysee, Electric Versions of Peugeot Partner and Citroën

Berlingo and New C4 Picasso.

NISSAN

In 2014, announces €130 Million Investment in Barcelona’s Plant to produce a new

Sedan starting 2014, and investments of €10 Million in its components manufacturing

plant of Cantabria.

GM

Includes Spanish Plant of Figueruelas in its Industrial Plan for Europe that will drive

and investment of up to 4 Billion in 23 new OPEL models in Europe for the period 2013-

2016.

SEAT (VW Group)

The group VOLKSWAGEN invested €665 Million in the SEAT Plant of Martorell in 2012,

including €100 Million in R&D and €13 Million in Professional Training. Martorell is one

of the Group’s most productive and flexible plants, with 377.000 units in 2012 including

the New Audi Q3. In 2013, the Plant will market the new SEAT Leon models.


82 Source : SERNAUTO (Spanish Association of Auto-Parts Exporters)

Automotive Industry in Spain: AUTO–PARTS. New Investment Projects

New Investment announcements by Auto-Parts Multinationals in 2013

FAURECIA

The French multinational of Auto-Parts has chosen Valencia to set up its fifth R&D Centre

in Spain. It will be located in the Technology Park of Paterna and is to employ 200

Technicians.

MAHINDRA

The Indian giant, leading manufacturer of Components in Asia, buys a 13.5% share of the

Spanish company CIE Automotive for €96,24Million sealing a worldwide strategic alliance.

SAMVADARDHANA MOTHERSON PEGUFORM

It has announced plans to invest €5M as a part of its €30M expansion Plan to expand

production capacity in its manufacturing facility in Ripollet (Spain) to increase production of

sintered auto-parts at the site. The entire investment will create about 100 jobs.

MAFLOW SPAIN AUTOMOTIVE

The Auto Parts company owned by the Polish Industrial Corporation Boryszew invested

€2Million in 2013 to expand production at its Plant of Guarnizo (Cantabria-Spain).

MAFLOW is one of the larger manufacturers of Air Conditioning tubes worldwide. Guarnizo’s

Plant is its only manufacturing Centre in Spain with 100 employees.


83

Investing in ICT

(Information & Communication Technologies)

5. Business opportunities: ICT

84

Spain is a leader in advanced technologies:

Spanish landing software is renowned and used worldwide

Major events/Complex, distributed international delivery

Hi-Tech and Defence Industry

Telecommunications, Utilities, Energy, Banking…

Mobile World Congress in Barcelona World’s Mobile Capital

Nearshoring value added location worldwide (BPO & IT)

Spanish companies are present and recognized in major international markets:


Spain is one of the most important ICT market by volume in Europe: €89,894

Million.

There are more than 30,000 ICT companies, including digital content, operating in

Spain. The sector is currently 1 employing more than 425,000 workers.

The gross added value at market prices represents the 4.4% of GDP in 2014.

Information and Communication Technologies Industry in Spain

85


Source [1] : ONTSI, 2015. Data 2014 (Last data available)

Spain ICT Sector Turnover 2014

31.7%

31.7%

15.6%

17.7%

3.3%

Telecommunications

Information Technologies

Production

Digital Content

€89.89 Billion

Commerce

86

Leading ICT multinationals are already successfully located in

Spain, taking advantage of Spain’s benefits:


Software Vendors Hardware Vendors

Telecom equipment vendors

ICT Services and Consulting Companies

Service Providers

IBM was set up in Spain in 1926. Today, the Spanish subsidiaries have 7,200 employees.

IBM Spain coordinates the activities of IBM in Portugal, Greece and Israel.

Projects developed in Spain:

• Centre of excellence in Barcelona to develop solutions for financial entities and the

health sector.

• INSA, an IBM branch, has set up two centres (Caceres and Salamanca) for software

developments to be applied worldwide.

• MareNostrum, supercomputer installed in the Barcelona Supercomputing Centre in

collaboration with the University of Catalonia.

• Technology Expert Council (TEC), which integrates IBM’s best talents in Spain to

enhance the leadership of the company and develop its technical knowledge.

In the beginning, HP was set up in Spain as a manufacture centre.

Nowadays, it has changed its strategy and has set up worldwide recognized support and

R&D centres.

Success stories

87


http://www.merckserono.net/




According to Walter Ji, CEO of Huawei for Spain and Portugal,

Huawei has contributed to the transformation of Telefónica

through its IT solutions and the evolution of their network

infrastructure equipment, reaching an extensive footprint

across the Group

At the same time, Huawei has completely transformed the

portfolio of devices for the customer in the countries where

Telefónica is present, especially mobile devices, where 2 out of

3 units already sold by Huawei are smartphones

In addition, the Huawei vertical cloud solutions for different

industries have worked strategically in the process of

transforming the B2B business of Telefónica.

Telefónica, Mozilla and ZTE launched the world’s first

commercial Firefox OS with the ZTE Open available at

Movistar stores from last July.

The ZTE Open offers customers a smartphone experience

at an incredible price point.

Firefox OS devices will also be launched by Telefónica in

other markets, including Colombia and Venezuela.

Success stories

88


5. Business opportunities: Life Sciences

89

Investing in Life Sciences

• Biotechnology

• Pharmacy

• Hospitals

• Healthcare technology

90

Solid Basic Science: Good scientific output.

Spain is 10th world scientific power and 5th by

scientific production in the EU15.

Integrated Healthcare System: Spain has an extensive network of university hospitals,

both public and private, backed by leading-edge research centres. The system is ideal

for translational medicine and discovering new drugs and advanced therapies.

Consolidation of biotechnology sector and an established pharmaceutical industry:

Biotechnology companies are growing faster here than in other countries and pharmaceutical industry

is leader in R+D spending in Spain

Excellent infrastructure for innovation: exponential growth of science and technology parks,

research centres and institutes of technology. Spain’s infrastructure also incorporates the latest

technology for life sciences projects.

Highly qualified workforce: There is a surplus of talent for competitive and innovative projects. In

some areas of Spain the percentage of workers with post-graduate studies is higher than the

European average.

Why Spain for Life Sciences?


Source: ASEBIO 2014 Report 91

Solid macroeconomic impact

Directly and indirectly, the sector accounted for 9% of Spain’s GDP (data

close to traditional sectors as tourism and automotive)

Consolidation of Spanish biotech sector

Biotechnology sector: overview

Growing number of biocompanies and dynamic creation of highly qualified jobs

Near to 3000 companies involved in biotech activities and 550 strictly biotech

170,000 employees and 9000 R+D activities dedicated

Breakdown of biocompanies by activity

Of all strictly biotech companies 62% focus on healthcare and 27% on agro-food.

67% of industrial companies related to biotechnology focus on agro-food and 23% on healthcare


92

Distribution of biotechnology companies and

biotech users by region

At present there are 7 bio-regions coinciding with

the major centers of technical innovation

Most biotech companies are located in Catalonia

(19.43%), Madrid (17.53%) and Andalusia

(15.49%). Together they accounted for more than

50% of the national total.

Source: ASEBIO 2014 Report


http://www.google.es/imgres?imgurl=http://www.bolsageneral.es/wp-content/uploads/2009/12/zeltia2.jpg&imgrefurl=http://www.bolsageneral.es/acciones/zeltia/analisis-tecnico-de-zeltia-intentando-cambiar-el-rumbo-por-david-galan/&usg=__RavOXQwm7KofK8UslqoHy8EaXSE=&h=90&w=155&sz=5&hl=es&start=1&zoom=1&um=1&itbs=1&tbnid=LQyWi-mFhfLW8M:&tbnh=56&tbnw=97&prev=/search?q=zeltia&um=1&hl=es&sa=N&rls=com.microsoft:es&tbm=isch&ei=wwflTaXfIMTdtAbVgZX0BQ

Source: FarmaIndustria Annual Report 2014 · PMFARMA website

Pharmaceutical Sector: overview

93

There are about 425 pharma companies in Spain, including some with no production and/or marketing

activity. Near to 60% are foreign companies.

Leading pharmaceutical/biotech multinationals are already located in Spain many of which have

successfully chosen our country for the establishment of Research Excellence Centres, Production or

Distribution Centres.

Spain’s pharmaceutical

industry enjoys a good

standing in the UE:

5th in terms of sales

5th in terms of job

creation

6th in terms of

pharmaceutical

production


Source: FarmaIndustria Annual Report 2014 94

Pharmaceutical Sector: R&D spending and workforce

The pharmaceutical industry is leader in R&D spending in Spain

Pharmaceutical companies set aside near to 900 M € for R&D

The sector accounts for 20% of all private R&D spending in Spain

Job creation in R&D

The pharma industry has 4,500 employees working full-time on R&D

This is 12% of all R&D employment in Spanish industry

200,000 total employment rate, direct and indirectly

A big market

Total sales came to 13.3 billion €

In 2014 pharmaceutical exports come to 10 billion €

Pharmaceutical products export ranks 3rd in customs duties in the Spanish exports table and account

for 4.3% of total Spain`s total exports


Source: The Ministry of Health and Social Policy, IDIS Report “Private Healthcare , adding value. Situation analysis 2014” 95

Hospital Sector: introduction to the healthcare system

Spanish Healthcare System (SHS): public and universal

This includes 3,000 health centres and 10,116 local consulting rooms.

800 hospitals (40% public and 60% private) with 162,538 beds (70% public and 30% private)

Private healthcare represents a sizeable proportion of the Spanish economy

Private healthcare expenditure accounts for 27% of total healthcare expenditure.

3.2% of Spain's GDP.

More than 450 private hospitals, 2,900 medical centers.

Substantial private sector investment in healthcare

Collaboration between the public and private sectors. 42% of private hospitals have some type of

outsourcing agreement with the government.

Strong investment in high-tech equipment

Government concessions: 8 hospitals operating under concession model.

Top ten insurance companies represents approximately 82% of the market


Source: FENIN annual report 2014

Healthcare Technology: overview

The healthcare technology market

This sector invoiced about 6,800M €

It comprises more than 1,050 companies.

Job creation

The healthcare technology sector employs more than 25,000 people.

Exports are growing

The value of exports exceeded 2,200M €.

This figure represents 0.92% of total exports in Spain.

Important trade partners

The target market is still the rest of the EU, which takes 60% of exports.

Asia and East Europe are playing an increasingly important role as big importers of Spanish technology

and products.

96


97

Merck has concentrated its global growth-hormone production in Spain and has recently announced a 14M €

investment to increase by 50% the production capacity of its facility in Madrid.

ALK-Abelló has recently concentrated its global production of single-use adrenaline auto-injector Jext®. It has

invested more than 25M € in their production facilities in Madrid and created more than 70 jobs.

Lilly has in Madrid its research centre for medicinal chemistry, one of the biggest in the world. In 2015 it was

announced that this plant will take over production from Lilly’s central in USA, increasing its productivity in 30%.

Bayer has concentrated its global aspirin production in Asturias, has invested more than 20M € and exports to

eight production centers worldwide.

Celgene opened its first research centre outside the United States in Seville. The Celgene Institute of

Translational Research Europe (CITRE) plans to focus on advanced therapies and regenerative medicine

investing 60M €.

Success stories: Proof of concept for the global market


98

Genzyme has setting up a sales office in Madrid and has a warehouse for domestic distribution.

GSK has in Madrid its research centre for tropical diseases, Molecular Discovery Research and Drug Discovery

activities. In 2014, GSK announced that they plan to invest 20M € in the next 4 years in their production center in

Castilla y Leon.

TEVA manufactures in Spain all the omeprazol that exports to Europe. From 2008 to 2014 it has invested 33M €

in its factory in Zaragoza.

Pfizer has invested 12M € in its European Biometric Centre, which has support functions for the rest of Europe

and USA.

Novartis announced in 2013 a 60M € investment to expands its facilities in Cataluña for the manufacturing of

the entire production line of inhalers. The expansion will create 70 jobs.

Success stories: Proof of concept for the global market


5. Business opportunities: Aerospace

99

Investing in Aerospace

The Spanish Aerospace Industry is 5th in Europe in terms of turnover (€9.4 billion in

year 2014) and employment (more than 50,000 employees).

The Spanish space sub-sector is 5th at the European level, employs almost 3,400

people and had a turnover of ca. €720 million in year 2014.

Half of the commercial aircraft in the world uses Spanish technology.

R&D:

The investment in R&D activities reached

€987 M in year 2014 (10.5% of the

industry turnover)

Government support:

The Spanish authorities consider the

Aerospace Industry one of the Strategic

Industrial Sectors.

Creation of several public R&D centres

focused on the aerospace industry.

Aerospace Industry in Spain

100


101

R&D: invests 11% of turnover in R&D (€987 M in year

2014)

Highly qualified human resources: 40% of the

aeronautics employees are University graduates or

engineers and 47% are highly qualified technical

professionals.

Government support: The Spanish authorities consider

the aerospace sector to be strategic so it offers several

grants and incentives lines.

Creation of several public R&D centres focused on the

aerospace industry.

The Spanish Aerospace industry is the 5th in Europe (and 8th in the world) in terms of turnover (€9.4 billion

in year 2014) and employment (more than 50,000 employees).

The Spanish Aeronautics industry is a world leader in several fields: composite aero structures, low

pressure turbine engines, Air Traffic Management systems, Military Transport Aircraft, etc.

The Spanish Space industry takes part in important contracts of high added value, in qualification of flight

equipment and ground segment, and development of satellite systems. Moreover, Spain has satellite

services operators. The Spanish Space sub-sector is 5th at European level, employs almost 3,400 people

and had a turnover of ca. €720 million in year 2014.

Half of the commercial aircraft in the world uses Spanish technology.


102

Spain has significant Aeronautics Clusters: they provide new entering

companies with infrastructures, research centers, technology parks

offering interesting synergies.


BOEING has developed important R&D Centres in Spain:

•First Boeing R&D centre outside the USA

•Main areas: safety, ATM and environmental technologies

•April 2008: first flight of an aeroplane powered by hydrogen fuel cells – Ocaña

(Madrid)

According to Boeing:

“The reason for choosing Spain was the country’s outstanding role in the EU and

as a reference point with the Latin American countries.

It also shows the relevant position the Spanish Aerospace industry has acquired in

the last few years and the country’s capabilities in environmental and ATM

technologies”

Source: www.boeing.es

Success stories

103


104

The Consortium EADS-AIRBUS has a very significant presence in Spain

Civil

aircraft

A380 – Double-deck, wide-body, four-

engine jet airliner. It is the world’s largest

passenger airliner.

It began commercial service in October

2007 with Singapore Airlines.

Spain has a participation share of 8%.

A350XWB

Last Airbus civil aircraft model: from 250 to 350-seater. Over 70% airframe is made from

advanced materials: composite structures, titanium and advanced aluminum alloys.

The two first test flights have already been developed.

Spain has a 11% share of the program.

HMC (Harbin Hafei Airbus Composite Manufacturing Center is a joint venture between

Airbus (20%) and its Chinese partners (mainly Harbin Aircraft Industry Group, 50%).

HMC manufactures elevators that are being delivered to Spanish company Aernnova

(the first ship set was delivered last September 2013).

Aernnova will later on deliver those elevators to the Airbus plant in Getafe (Madrid,

Spain).

Success stories


105

A400M – Military transport aircraft

Spain has a 15% of participation share, including:

-Final Assembly Line

-Simulation and training Center

- Services Logistics Hub

All of them located in Seville (Spain)

The first A400M aircraft have already been

delivered to customer (France) in September 2013.

A330 MRTT – Multi Role Tanker Transport

Refueling aircraft, entirely developed by

Spanish industry, including a refueling pole

with electric controls.

Eurofighter Typhoon– Multi Role Fighter

14% share of participation by the Spanish

industry. Major components developed in

Spain:

-Right wing

-Leading edge slats.

Eurocopter– Military helicopter

Plant located in Albacete (Spain):

-Final Assembly Line

-Delivery Center

For models: NH-90, TIGER and EC-35

The Consortium EADS-AIRBUS has a very significant presence in Spain

Military

aircraft

Success stories


106

Investing in Logistics and Transport

5. Business opportunities:


Logistics and Transport Industries in Spain

107

Spanish Logistics Sector ranks among the top-20 in the world according to

the latest Logistics Performance Index of the World Bank (11th among EU

countries)

Turnover €98.0 Billion

• Logistics

• Road, Railway, Sea and Air Freight

• Growth rate of 7% in the last 3 years

• Almost 4% of the Spanish GDP

Employment > 861,000 workers

• 4.2 % of active workers in Spain

• 90.8% occupancy rate

Companies > 200,000

• Structure: High market concentration

• 90% SMEs

• 10 large enterprises manage 27% of the business

Source: National Institute of Statistics, 2014 · Logistics Performance Index (The World Bank)

45,3%

1,8%

8,7%

44,2%

Road & Rail Freight

Sea Freight

Air Freight

Warehousing and other activities related to transport

Turnover 2012



108

Railway Air Road Sea Total International Freight

Railro

ad

an

d A

ir f

reig

ht

(Mn

To

nn

es

/ y

ear)

To

tal In

tern

ati

on

al fr

eig

ht,

Sea a

nd

Ro

ad

freig

ht

(Mn

To

nn

es

/ y

ear)

2007-2013 Evolution of International Traffic (million Tn)

Source: Annual Report, 2014 – Spain’s Transport and Logistics Observatory.



109

29 Container Terminals in 21 Ports • Capacity: 22,1 Million TEUs/year

• Ocuppied surface: 7,73 Million sq m

• Average productivity: 545 TEUs/m

In 2014 a total 7.66 Million

cruise passengers



110



• The Infrastructure, Transport and

Housing Plan (PITVI) (2012 - 2024)

states a stable and sustained investor

scenario of up to 0.94% of GDP during

the period.

• The Trans-European Transport

Network development encloses the

Spanish Corridors in the Atlantic and the

Mediterranean Sea to foster the Logistics.

• The Mediterranean Corridor plan

connects the Mediterranean Spanish

Seaports to a rail corridor which links

North Africa to Central Europe through

Spain.

• Intermodal investments: Spanish Ports

increase their commitment for 2015 to

over 423 million euros mainly focus on

completing basic infrastructure projects

and improving road and railway

connections.

Success stories

• DHL Spain is the key input platform across the DHL network to Latin American markets.

Invest in Spain.

• TNT International Operations Centre Madrid - Barajas (Spain) became hub for South

America in 2002. Today, shipments to and from fifteen South American countries are

handled from the Barajas Hub and to its whole network.

• Total Terminal International Algeciras (TTIA) part of the South Korean Hanjin Shipping

group builds its first container terminal semi-automatic of the Mediterranean and Southern

Europe.

111







Success stories

Hutchison Port Holdings, a subsidiary of Hong Kong conglomerate Hutchison

Whampoa, operates the new semi-automatic container terminal of the Prat quay at the

Port of Barcelona, which represents an initial investment of 300 million Euros and aims

to be the largest terminal in Southern Europe.

Mexico's Pemex will install its European operations base at the port of A Coruña which

implies a direct investment of $70 million.

The Danish APM Terminals Algeciras will devote €42 million investment to meet their

new triple-E ships in the port of Bahia de Algeciras.

Toyota Motor Europe (TME) sets up a new logistics centre in Illescas for the delivery

of the brand’s spare parts and accessories in Spain.

The German Vossloh Rail Vehicles operates one of its engineering centres, a

reflection of its commitment to innovation, in Valencia, Spain.

One of the main actors of E-commerce in Europe, Vente Privée, opens its third

logistics platform in Spain after Germany and Italy.

112








Environment and Water

113

Investing in Environment and Water

Environmental Industry in Spain

114

The Spanish environmental sector accounts 3,6% GDP

Sales: 40.355 million €

7.780 companies employing 530.947 people directly

(estimates put employment at 1 million in 2020)

• 26,4% work in Waste treatment and management.

• 11% work in Water treatment.

Environmental Industry in Spain

Success stories

Spain ranks fifth in the world and third in Europe for ISO 14001 Environmental Management

certificates with more than 16,500 awarded.

In 2011, the EU granted 85.8 million € to 29 Spanish projects on nature preservation, climate

change, environmental policy, clean technologies and environmental information and

communication.

Areas that require urgent attention and offer opportunities to foreign investors include

WasteManagement, Air Quality and Water Treatment:

• Waste generation: 463 kg/inhabitant in 2012

• Emissions: 6,2 tonnes of CO2 equivalent/inhabitant in 2011

• Water consumption: 112 litres/inhabitant/day in 2014

Sources: Estudio del sector económico del medio ambiente en España 2011 - MAGRAMA

EUROSTAT



Public entities Private companies

Environmental Industry in Spain: key players

115

EUROPEAN

ENVIROMENTAL

AGENCY

www.eea.europa.es

• Provides sound &

independent

information

• 32 member countries

SPANISH MINISTRY OF

ENVIRONMENT AND

AGRICULTURE

www.magrama.es

• Makes proposals

and develops the

implementation of

government policy

17 REGIONAL

AUTHORITIES

• Definition and

implementation of

environmental policy.

• Regional

environmental

authorities often

called “Consejerías”

MUNICIPAL

AUTHORITIES

• Subsidies,

Fines refuse

collection, street

cleaning etc.

• Local environmental

authorities, often

called ‘Concejalías’

GROUP ENVIRONMENT WATER



http://www.magrama.es/

The Water sector in Spain (1/2)

116

• Maximum reservoir capacity (2014) 55,977 hm3

• Reserves (October 2014) 35,643 hm3 (63.7%)

• Domestic consumption (2014) 112 liters/inhabitant/day

Water

Origin

Uses Urban Supply 4.485 hm3

Irrigation 15.832 hm3

>700 towns with >2000 inhabitants with no waste water treatment plant

Treatment 3.375 hm³/year of treated waste water by 2.533 WWTP

400-500 hm³/year reused by regeneration systems

Sources: MAGRAMA, INE, AEAS-AGA

Urban Supply

Surface (Dams, rivers…) 67%

Underwater sources 29%

Others (Desalination, depuration) 4%

Irrigation

Surface (Dams, rivers…) 76,9%

Underwater sources 21,5%

Others (Desalination, depuration) 1,6%



24,000 companies involved in the water sector

212,300 jobs

Water sector annual turnover: approx. 32,000 million euros

Business

Opportunities

Strengths

Sectorial targets match general interest.

Great quality and innovation in Spanish water industry.

Sector generates employment and wealth.

Large number of products, solutions, high technological level.

International experience and reputation.

Strong sectorial network.

The Water sector in Spain (2/2)

117

Sources: PTEA

Growing demand of water supply & water treatment.

Rising social concern about water use and efficiency.

Demand if integral solutions (EPC + O&M).

Growing investments & financing in developing and emerging countries.

International projection of Spanish water companies.

Excellent public-private cooperation in I+D+i .



Desalination

118

• Spain is the 1st producer of desalinated seawater in Europe and America

• Spanish companies are leaders in Reverse Osmosis Technologies.

• Interesting cluster:

• More than 700 desalination plants in Spain according to the Ministry of

Agriculture, Food and Environment.

• International Expertise in constructing desalination plants (Befesa, Cadagua,

Acciona…)

• R&D. Research centers actively involved in desalination:



Paper, cardboard

15% Glass 8%

Wood 2%

Bricks 1% Textile

5%

Food waste 7%

Plastics 9% Metals

3%

Organic matter 42%

Other 8%

Composition of Urban Waste

5. Business opportunities: Environment and Water

Waste Management sector in Spain (1/3)

Agriculture & related

5%

Domestic 18%

Services 24%

Mining 19%

Industry 12%

Construction

22%

Waste Generation: Economical sectors

The Spanish Government is currently processing the Residues Framework Plan

(PEMAR) for the period 2015-2020.

By 2016, Spain must achieve a reduction of 47% to 35% in biodegradable urban waste

dumps. This means that additional 5.3 million tons of must be treated.

By 2020 the fraction of recycled/reutilized residues must increase from 30% to 50%.

Waste treatment expenditure still low, 35 euro/Tn (European average 100 euro/Tn)



120

Sources: MAGRAMA, Eurostat

As much as 60% of waste is still dumped, 45% of which is not treated.

Incineration 11%

Compostage, anaerobic digestion

14%

Recycling 15%

Dumping w/treatment

27%

Dumping w/o treatment

33%

Destination of Urban Wastes

Room for improvement, great business opportunities



121

Sources: MAGRAMA, Eurostat

Mixed waste 82%

Biodegradable 4% Packages

3%

Papel & cardboard 5% Glass

3%

Other 3%

Separated 18%

Waste Collection

PEMAR: Separation in origin must improve from current 18%.

Room for improvement, great business opportunities

5. Business opportunities: Chemical Industry

122

Investing in Chemical Industry

123

Main Figures of the Spanish Industry-2014 :

3,000 Companies with a turnover of 56,4billion €

12,4% of Spanish Gross Industrial Product.

540,000 direct and induced high qualified jobs.

High Domestic Consumption of Chemicals (1,200 € /capita).

2nd largest exporter of Spanish Economy with more than 32 billion €.

Spain is Gateway to EU market and EMEA & Emerging Markets.

Leader Sector in Innovation: 25% of Industrial Investment in R&D&I.

Competitive Talent: 118,600€ added value per-employee.

Sustained Growth : 54.5% growth through last 10 years.

Strategic Sector of the Spanish Economy.

4.5% annual growth of Chemical products demand forecasted worldwide

Source: FEIQUE:(Spanish Federation of Chemical Industries)

35.771

49.743 52.585 47.714

53.153 55.657 55.117 55.282 56.400

0

10.000

20.000

30.000

40.000

50.000

60.000

2000 2007 2008 2009 2010 2011 2012 2013 2014Source: INE. Industrial Company Survey, Production and Price Index, and Own elaboration

Evolution of Turnover in the Chemicals Sector 200-2013 (millions €)

Business opportunities: Chemical industry

Gases2,1%

Inorganic2,6%

Organic14,8%

Fertilizers3,6%

Plastic and Rubber RM20,5%

Fibers0,9%

Colorants 1,4%

Pharmaceutical RM5,5%

Pharmaceutical Specialities 21,3%

Agrochemicals 1,9%

Paints and Dyes6,7%

Detergents and Cleaning Products

6,1%

Perfumery and Cosmetics6,1%

Other Consumables6,4%

124

Spanish Industry : Sectoral Specialization (Turnover 2013 (%))

Source FEIQUE: Spanish Federation of Chemical Industries –www.feique.org –National Statistical Office -INE


http://www.google.es/url?sa=i&rct=j&q=fertilizante&source=images&cd=&cad=rja&docid=7uitacPwy4xK_M&tbnid=Sb5Uij1WtuWXhM:&ved=0CAUQjRw&url=http://jardinplantas.com/tag/fertilizantes/&ei=jbWxUfXqDOez0QXR6oGwBA&bvm=bv.47534661,d.ZG4&psig=AFQjCNHo-c93yiMcPBeQG-IdbKWDFBDsCQ&ust=1370687237328208

http://www.google.es/imgres?imgurl&imgrefurl=http://blogruedasytuercas.blogspot.com/2011/03/la-leyenda-del-dodge-viper-uno-de-los.html&h=0&w=0&sz=1&tbnid=SzjR5ygEC4m4UM&tbnh=194&tbnw=259&prev=/search?q=automovil&tbm=isch&tbo=u&zoom=1&q=automovil&docid=E5yxnje3VPzASM&ei=yLaxUcyMIcm00QXc0YHIAg&ved=0CAIQsCU

http://www.google.es/url?sa=i&rct=j&q=medicamentos&source=images&cd=&cad=rja&docid=bQuHsWaaYsnv6M&tbnid=CflMYqNBYYOGWM:&ved=0CAUQjRw&url=http://cienciasmundo1213.blogspot.com/2013/04/patentes-y-medicamentos-genericos.html&ei=Y7ixUbmwGOey0QWpm4GoDA&bvm=bv.47534661,d.ZGU&psig=AFQjCNH1-dUwFo4zZqmrG2474JlFemc_2g&ust=1370687962702586

http://www.google.es/url?sa=i&rct=j&q=tomates&source=images&cd=&cad=rja&docid=be5Tr3h67AarPM&tbnid=AxqRZ1uB0aYZWM:&ved=0CAUQjRw&url=http://adelgazarfacil.net/dietas-para-adelgazar-dieta-del-tomate/&ei=38CxUdPKKqXJ0QWug4DICw&bvm=bv.47534661,d.ZGU&psig=AFQjCNGN-N1vjgAdG015cVhBxs-pXCJMTg&ust=1370690119667959

http://www.google.es/url?sa=i&rct=j&q=perfumeria&source=images&cd=&cad=rja&docid=EuSNJm5BkJxgHM&tbnid=GoZ6-RKCr47ccM:&ved=0CAUQjRw&url=http://ciudadmadrid.olx.es/perfumes-y-fragancias-iid-89528169&ei=8r2xUcOEBom70QXHj4HYCA&psig=AFQjCNE9_vHDsRFV0FummWtkNw_B0qUozw&ust=1370689357265699

http://www.google.es/url?sa=i&rct=j&q=detergentes&source=images&cd=&cad=rja&docid=mZFLLGYvIzSWpM&tbnid=OtJ1BEiZPu84oM:&ved=0CAUQjRw&url=http://www.ua.all.biz/es/detergentes-ecolgicos-g1632977&ei=eL-xUfSANIWs0QX1xYDIDg&bvm=bv.47534661,d.ZGU&psig=AFQjCNHhz1m8wYZs0NlMvHPWnERWd3XOXw&ust=1370689716263007

http://www.google.es/url?sa=i&rct=j&q=gases+industriales&source=images&cd=&cad=rja&docid=5iCwTv8gPu-WoM&tbnid=3ClExnYZIonNfM:&ved=0CAUQjRw&url=http://bogotacity.olx.com.co/gases-y-productos-industriales-y-medicinales-iid-229049616&ei=kb2xUaaMGq7a0QXYtYH4DA&psig=AFQjCNHFk-V3rAZGiB5NWtfNjvQ8CgcbqA&ust=1370688893633145

http://www.google.es/url?sa=i&rct=j&q=agua&source=images&cd=&cad=rja&docid=IEgXNfSK9SY30M&tbnid=N5OZ_5M4vFiADM:&ved=0CAUQjRw&url=http://empresa-limpieza.com/agua-ionizada/&ei=GbuxUZOyHsrA0QWL9IDICA&psig=AFQjCNHhgNR3DV6wi2x2CqUc3dmGj8v1Wg&ust=1370688626455445

http://www.google.es/url?sa=i&rct=j&q=colorantes&source=images&cd=&cad=rja&docid=S3tx5vxU1O4TJM&tbnid=sdothVZImPFT5M:&ved=0CAUQjRw&url=http://www.directoalamesa.com/aditivos-alimentarios-e-1-colorantes/&ei=q7ixUa-5Cqi70QW0sYHIDw&bvm=bv.47534661,d.ZGU&psig=AFQjCNF2U6-rghRtS2KWffA3tLWiD-UcoA&ust=1370688010946406

http://es.123rf.com/photo_12416450_la-serotonina-molecula.html

http://www.google.es/url?sa=i&rct=j&q=guantes+quirurgicos&source=images&cd=&cad=rja&docid=bL-wuWzevOkNMM&tbnid=e7IKBMo_woh4AM:&ved=0CAUQjRw&url=http://es.made-in-china.com/co_mingerkang/product_Surgical-Glove-Latex-Surgical-Glove-with-Single-Packing-and-Sterilized_hoyrreygg.html&ei=wbmxUaG9MuKl0wXrn4HoDQ&psig=AFQjCNGYvG0XkK5wdfSx7ezzgEyRpbVSzw&ust=1370688302858979

http://www.google.es/url?url=http://www.muyinteresante.es/historia/preguntas-respuestas/ique-significa-el-simbolo-de-las-farmacias&rct=j&frm=1&q=&esrc=s&sa=U&ei=C0BOVLXQF4viaJuzgOAN&ved=0CBYQ9QEwAA&sig2=k3SOH5GaCuFdvMNYHlMQow&usg=AFQjCNE6hy64W5iYnjnbxAIPK9TkobfX_A

125

Mediterranean Region:

Largest Chemical Cluster in

Southern Europe and Mediterranean

Area: ChemMed in Tarragona. Key

Clusters in Huelva and Algeciras.

Chemical strategic sites in

Valencia and Murcia.

North Chemical Sites:

Cantabria, Asturias, Pays Basque.

Non Coastal Chemical Regions:

Madrid,Aragón,Castilla-León,Castilla

La Mancha.

Investment Locations:

Productive sites and Clusters providing industrial and Logistics

infrastructures.


126

Guaranteed Energy Supply and Investment in Infrastructures.

Diversified energy mix with high contribution of renewables.

Secure National Electricity System- 102,281 MW installed power.

Largest gas infrastructures and storage capacity in Europe.

High Public Investment committed to boost freight transport and

intermodal infrastructures and logistics hubs.

Agreement of the Spanish Chemical Industry with the Ministry of

Public works to develop direct connections between rail network

and Production Plants.

Vast Structure of financial programmes for Reindustrialization

and Innovation activities.

Infrastructures - Energy Supply and Investment Support.


127

According to FDI Markets Spain Ranks 2nd destination for Research &

Development projects and 5th destination for New Chemical projects (all

business activities) of Multinationals in Europe (period 2004-2014).

Destination

Countries

Research &

Development Manufacturing Headquarters

Design,

Development

& Testing

Logistics,

Distribution

& Retail

Others Total

UK 61 188 26 30 39 87 431

Spain 33 178 15 11 16 39 292

France 28 245 10 17 15 78 393

Germany 23 286 22 22 20 187 560

Ireland 21 67 9 3 25 14 139

Belgium 15 113 6 16 13 34 197

Russia 14 234 4 8 16 88 364

Hungary 13 111 1 - 17 22 164

Sweden 9 39 7 2 7 15 79

Poland 8 193 1 6 16 61 286

Austria 8 41 3 3 8 14 77

Total World 4,320

Country Ranking New Chemical Projects* in number of Projects

Source FDI Markets Data Base. *Sectors included: Chemicals (105), Pharma (87), Plastics (81) and Rubber (19).


128

Parent company Projects Capex Avg Capex Jobs Created Avg Jobs Companies

Bayer 11 144.3 13.1 325 29 4

BASF 10 365.3 36.5 448 44 4

Ube Industries 10 498.4 49.8 623 62 3

Dow Chemical 9 722.6 80.3 403 44 2

Novartis 8 665.3 83.2 1,135 141 1

DuPont 7 380.8 54.4 367 52 2

Boehringer Ingelheim 6 118.9 19.8 233 38 2

Sanofi-Aventis 6 163.9 27.3 525 87 2

Messer Group 5 110.3 22.1 139 27 1

General Electric (GE) 5 1,806.3 361.3 1,175 235 3

Michelin 5 180.8 36.2 386 77 1

Solvay 4 113.8 28.4 106 26 2

Merck & Co 4 550.4 137.6 986 246 3

Israel Chemicals (ICL) 4 395.0 98.8 826 206 2

Henkel 4 13.3 3.3 74 18 2

Les Laboratoires Servier 4 30.9 7.7 81 20 2

Hexcel 4 190.5 47.6 165 41 2

Renolit 4 89.1 22.3 72 18 2

AkzoNobel 4 73.6 18.4 160 40 2

GreenChem 3 79.5 26.5 123 41 1

Companies 21 to 163 175 4,740.6 27.1 8,650 49 149

Total 292 11,433.4 39.2 17,002 58 191

New Chemical Projects by Parent Company, investing in Spain in four selected sectors* (millions USD)

292 New Projects have been developed by 163 worldwide Multinationals with a Capital

Expenditure of 11,433.4 millions USD. (period 2004-2014)

Source: fDi Intelligence. * Sectors included: Chemicals (105), Pharma (87), Plastics (81) and Rubber (19).


129


http://www.google.es/url?url=http://www.petclic.es/productos-para-animales/bayer-hispania-sl&rct=j&frm=1&q=&esrc=s&sa=U&ei=TiYkVIj9NKTg7QaX-YCYDg&ved=0CBYQ9QEwAA&usg=AFQjCNGe-30s3wPxl49lsq7a9FUwOwlrUw

http://www.google.es/url?url=http://ut20.com/clientes/&rct=j&frm=1&q=&esrc=s&sa=U&ei=2xEpVOX7DZSuggSW0oLoBA&ved=0CBYQ9QEwAA&usg=AFQjCNE3y0iT8Y9KTta706hRT2SR9jXIjQ

http://www.google.es/url?url=http://www.aiqpa.com/empresa_05&rct=j&frm=1&q=&esrc=s&sa=U&ei=EhIpVMu-K4zDggTX8oLwBQ&ved=0CB4Q9QEwBA&usg=AFQjCNHDUxSvR9pzlqFsci31HnFPX6RtZQ

http://www.google.es/url?url=http://www.moliempresa.cat/company/40/SOLVAY-IBERICA-S.L.ca.html&rct=j&frm=1&q=&esrc=s&sa=U&ei=IhMpVN77PMHpggS4yoGICQ&ved=0CBYQ9QEwAA&usg=AFQjCNHazXWP_YFm5IyvZSmIYA50viGSVg

http://www.google.es/url?url=http://www.b2match.eu/Composites2014/participants/34&rct=j&frm=1&q=&esrc=s&sa=U&ei=bxMpVLbHLIac7gbihoGgBw&ved=0CCwQ9QEwCw&usg=AFQjCNHNN_nvfvQGsT8H7CrbgciOVYUXUg

http://www.google.es/url?url=http://greenzone.co/2014/02/27/worlds-largest-chemical-company-basf-battery-materials-high-priority-market-us/&rct=j&frm=1&q=&esrc=s&sa=U&ei=gBkpVOKbL6Lj7QbFnYHICA&ved=0CBgQ9QEwAQ&usg=AFQjCNEP24dNvKCHJVVWvYHANX7Ec-F3bA

http://www.google.es/url?url=http://www.dopsvision.com/node/8&rct=j&frm=1&q=&esrc=s&sa=U&ei=rBkpVMD4HOOd7gbIj4GQDA&ved=0CCQQ9QEwBw&usg=AFQjCNGFYVyzsmODryIDBtFvsaSqCwyyQw

http://www.google.es/url?url=http://dasz.at/en/main/referenzen&rct=j&frm=1&q=&esrc=s&sa=U&ei=-xkpVNuzOcef7gbi2YD4Dw&ved=0CBYQ9QEwAA&usg=AFQjCNGEFu-YjyC2pmpRWd_wywQ7IVJj3A

http://www.google.es/url?url=http://dccc.convio.net/site/TR?fr_id=1210&rct=j&frm=1&q=&esrc=s&sa=U&ei=PhopVPToBqbY7AbTlID4CQ&ved=0CCQQ9QEwBw&usg=AFQjCNF0Yw2pGuHQZIyTwFBysfoiPfMwZw

http://www.google.es/url?url=http://matome.naver.jp/odai/2140377239094019701/2140439419498801003&rct=j&frm=1&q=&esrc=s&sa=U&ei=fhopVM-FMJHY7AaQ9ICoDQ&ved=0CBgQ9QEwAQ&usg=AFQjCNHxNRL9tuxOg4FlE5w4t8Gy4QrVnw

http://www.google.es/url?url=http://www.dividendogma.com/compras-recientes-mapfre-y-general-electric/&rct=j&frm=1&q=&esrc=s&sa=U&ei=pxopVK-3EIfg7Qabo4HQBg&ved=0CBgQ9QEwAQ&usg=AFQjCNEwJrR-Adcknl0n78VwKqm0LUpwvg

http://www.google.es/url?url=http://www.karlvillanueva.com/&rct=j&frm=1&q=&esrc=s&sa=U&ei=7RopVNbPG-HY7Aaw5oD4AQ&ved=0CBwQ9QEwAw&usg=AFQjCNHuaVINNYY2zL3SbAhcfk44Ie3waQ

http://www.google.es/url?url=http://de.wikipedia.org/wiki/Israel_Chemicals&rct=j&frm=1&q=&esrc=s&sa=U&ei=BxspVIX4L6ve7AbK-YDwDA&ved=0CBgQ9QEwAQ&usg=AFQjCNG32ciybEGp0P0s0jPvpaCSGDmRIQ

http://www.google.es/url?url=http://www.societe.com/actualites/spotless_cede_au_groupe_allemand_henkel-1762.html&rct=j&frm=1&q=&esrc=s&sa=U&ei=HBspVMSFFYSa7gas14CwBw&ved=0CBgQ9QEwAQ&usg=AFQjCNGJi3Zx1OXKH0QQw-ODSq0szOIwew

http://www.google.es/url?url=http://www.reputatiolab.com/2013/07/l-observatoire-des-crises/&rct=j&frm=1&q=&esrc=s&sa=U&ei=NhspVJebB4eE7gb_94CYCA&ved=0CBgQ9QEwAQ&usg=AFQjCNGf889ufkbMqHxPlYxOCLr89Eev5w

http://www.google.es/url?url=http://www.aviom-logistics.ru/hexcel.html&rct=j&frm=1&q=&esrc=s&sa=U&ei=YR0pVL_qLKaV7AaNt4CYBA&ved=0CBYQ9QEwAA&usg=AFQjCNHohoSCHHPipj-Ob0kcgN0quyVBuA

http://www.google.es/url?url=http://de.wikipedia.org/wiki/Datei:Renolit_logo.svg&rct=j&frm=1&q=&esrc=s&sa=U&ei=7R0pVIj5O6Tn7ga0wIC4CA&ved=0CBYQ9QEwAA&usg=AFQjCNHZjEX2VxLLyeiuoCO_Lm00hZ-sFQ

https://www.google.es/url?url=https://www.akzonobel.com/news_center/media_downloads/logos/&rct=j&frm=1&q=&esrc=s&sa=U&ei=PB4pVKrxFMO07QbdsoHQBg&ved=0CBgQ9QEwAQ&usg=AFQjCNF46-x09zPkc_R4kUeMqPoqRHm4ww

http://www.google.es/url?url=http://www.multispares.co.nz/adblue.php&rct=j&frm=1&q=&esrc=s&sa=U&ei=UB4pVIyAJZTB7AbexoGIBg&ved=0CBYQ9QEwAA&usg=AFQjCNGWPDc06i_4Z83VzWW11jKXRq4VKQ

5. Business opportunities: Nanotechnology

130

Investing in Nanotechnology

131 Source: NanoSpain · Phantoms Foundation

NanoSpain: Spanish Nanotechnology Network (www.nanospain.org) brings together

310 research groups, 50 companies and a research task force of around 2,500

researchers and technicians. Network coordinators: Phantoms Foundation

(www.phantomsnet.net) and CSIC (www.csic.es).

Phantoms Foundation (www.phantomsnet.net) focuses its activities on nanoscience &

nanotechnology and is a key actor in structuring and fostering European excellence and

enhancing collaborations in this field.

100 innovative companies providing a general overview of the sector in Spain

catalogue: http://www.phantomsnet.net/Resources/nanodoc.php?project=1

Spanish N&N Thematic Networks: RENAC (Construction), SUSCHEM

(Sustanaible Chemistry); NANOMED (Spanish Nanomedicine Platform); GENESIS (STP

Nanotechnology and Smart Systems Integretion); MATERPLAT (STP Advanced

Materials and Nanomaterials); and FOTONICA 21 ( STP Photonics).

Nanotechnology Initiatives and Companies in Spain


http://www.nanospain.org/





http://www.phantomsnet.net/





http://www.csic.es/

http://www.csic.es/

http://www.csic.es/

http://www.csic.es/

http://www.csic.es/

http://www.phantomsnet.net/Resources/nanodoc.php?project=1










132 Source: Phantoms Foundation www.phantomsnet.net

Research Groups in Nanospain Network ( Regional Distribution July 2012) 334 groups



133 Source: Phantoms Foundation www.phantomsnet.net

Emerging N&N in Spain

Nanotechnology Initiatives/ Infrastructures



134 Sources: CDTI (Centre for Industrial Technological Development · CSIC (Spanish National Research Council )

In the fields of graphene research Spain occupied the 8th position in the ranking of

countries in published papers 2004-2011. (source Thomson Reuters Global Report

Material Science)

Spain is actively participating in the EU Graphene Flagship. 300 Spanish researchers

are currently working on graphene (source: CSIC - Institute of Materials Science of

Madrid)

CSIC –National Research Council stands 3rd among world wide Institutions in

Graphene research (Thomson Reuters Global Report)

Spanish emerging companies among European leaders in graphene production and

exports. Graphenea (www.graphenea.com), Granph Nanotech

(www.granphnanotech.com) or Avanzare (www.avanzare.es) are developing innovative

processes and advanced products to supply companies as Nokia, Philips, Canon,

Nissan or Sigma Aldrich.

CDTI (Center for Industrial Technological Development) and the Spanish petrochemical

multinational REPSOL have co-invested in the company Graphenea to develop high

quality graphene for international markets.

Research laboratories in Spain are developing advanced products for electronic

applications used by multinational companies like TOSHIBA.

Nanomaterials and Graphene


http://www.graphenea.com/





http://www.granphnanotech.com/





http://www.avanzare.es/





5. Business opportunities: Agro-food

135

Investing in Agro-food

136


Basic data on the food industry

Sector Net sales

(million €)

People

employed

Meat industry 19,499 101,306

Fish processing 4,107 22,622

Fruit and vegetable processing 7,155 39,056

Manufacture of fats and oils 8,427 14,716

Dairy industry 8,322 31,874

Milling products 3,323 7,896

Animal feed products 8,984 15,673

Bread, cakes and biscuits 6,630 96,075

Sugar, chocolate and cocoa 4,788 25,000

Other products 4,827 28,486

Production of alcoholic beverages 9,586 41,548

Mineral water and soft drinks 4,519 15,508

Total 90,169 439,760

Source: Mercasa 2014. FIAB 2014 (2013 Data)

The agrifood sector’s foreign trade in 2014* had a positive

balance:

Food exports value rose to € 37,189 million:

• Fruit and vegetables € 14,333 million

• Meat € 5,109 million

• Fish and seafood € 2,933 million

• Drinks € 3,606 million

Food imports value amounted to € 28,363 million.

Mainly, Spain sold abroad its citrus, its sweet fruits, its

vegetables, its wines and its oils, but also its fish products,

processed meats and many other agrifood products.

Spanish agri-food sector accounts for 90,169 million €

(2013 data) which represents 17% of industrial GDP

Main market for Spanish exports of agrifood products has always been Europe, but since Spain joined the

European Union (EU) that relationship has intensified significantly.

* Estimated data. DataComex

137


Olive oil

Spain is the world's leading producer and exporter of olive oil and table olives, with

the largest acreage devoted to olive groves and the greatest number of olive trees.

World olive oil production

(Thousands Tons)

2012/13 2013/14*

World 2,718 3,098

EU 1,739 2.308

Spain 613 1,768

*Estimate

Source: Mercasa 2014

Wine Spain ranks 1st in the world in wine production and has the

largest surface area of wine grape vineyards in the world.

Main clients for Spanish wines are Germany, France and UK,

followed by Portugal, Russia, United States and Italy.

Spanish wines exports have increased by 6.5% in value.

Spanish Wine and Grape Must

Production 53.5 million hectolitres (2013*)

Exports 18.5 million hectolitres (total value: € 2,628 million)

*Estimate Source: MAGRAMA. MERCASA 2014

138


Subsector Production (th Tn)

Bovine 582

Ovine 119

Goat 9

Porcine 3,440

Poultry 1,370

Rabbit 63

Others 6

Total 5,588

Fuente: MERCASA 2014

•In 2013 there was an overall

improvement of the livestock and

meat produced in prices.

•Exports in 2014 were valued at

€ 5,109 million

Meat

industry

• The Spanish catches reached the 813,200 tons

with an estimated value of 1,785 million Euros.

• The aquaculture production reached 266,700

tones with a value of € 436 million.

• Exports in 2014 were valued at € 2,933 million

Fish

processing


139


Fruit &

Vegetables

•Spain is the second largest fruit and vegetable

producer in Europe.

•The value of Spanish fruit and vegetables

amounted to € 15,389 th in 2013.

•Production in Spain reaches 30 million Tn and

exports in 2014* were valued at € 14,333 million

•The main crop is the tomato

•The value generated by this sector in 2013 amounted

€ 2,765 million.

•75% corresponds to cow's milk

•14% corresponds to sheep’s milk

•12% corresponds to goat’s milk

•Exports in 2014* were valued at €1,400 million

Dairy

products




140

Shuanghui Group, acquired through the US company Smithfield,

the Spanish company Campofrio.

Chinese multinational company has paid 7,100 million for

Smithfield.

Campofrio, which owns brands such as Navidul, Oscar Mayer and

Revilla, is one of the largest food companies in Spain.

It has 29 production plants in six European countries and more

than 8,000 workers.

The Spanish Ministry of Agriculture, Food and Environment has signed

a cooperation agreement with China's Wahaha, to boost the marketing

of Spanish food products in major cities of China.

Success stories


5. Business opportunities: Real Estate

141

Investing in Real Estate

142

REAL ESTATE: Professionals

INVESTMENT VOLUMEN BY TYPE OF ASSET

Source: BNP Paribas Real Estate, Research Spain.

2013

Spain’s Terciary Real Estate Investment reached € 7,500 Millions in 2014, what it is an

increase of more than 97% between 2013 and 2014.

43%

22%

18%

15%

3%

Retail Others Office Hotel Logistics

32%

34%

8%

15%

11%

Offices Retail Logistics Hotel Others

2014


143

Residential

NEW DWELLING STOCK

(% by Region, 2013)

Source: Bank of Spain, 2015.

664.923

34.580

579.665

43.320

-

100.000

200.000

300.000

400.000

500.000

600.000

700.000

2005 2006 2007 2008 2009 2010 2011 2012

New Dwelling Started New Dwelling Finished

DWELLINGS TRANSACTIONS (units)

413.393 439.591

359.824

318.534 312.593 319.389

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

500.000

2009 2010 2011 2012 2013 2014

Source: National Institute of Statistics, 2015.


144

Residential

Source: Ministry of Public Works, 2015.

Nominal Housing Price Adjustment Since Peak in

Each Province (%)

National average may not be noteworthy as housing market requires

regional analysis. Nominal price adjustment of residential real estate has

been very heterogeneous between regions.

Higher discounts have taken place in the Mediterranean Coast, in some of

the Canary Islands and in Madrid´s outskirts.


145

Source: Ministry of Public Works, 2015.

FOREIGNERS’ HOME ACQUISTIONS

STILL DEMAND FOR HOLIDAY HOMES?

INCREASING FOREIGN INVESTMENT

After dropping 35% in 2009, the acquisition by residents and non residents rose during

the last five years.

Residential

4,24% 4,45%

6,04%

8,12%

11,15%

13,01%

0%

2%

4%

6%

8%

10%

12%

14%

2009 2010 2011 2012 2013 2014


5. Business opportunities: Tourism

146

Investing in Tourism

Spain, a Major Player in Tourism

147


Tourism accounts for 10.9% of GDP in Spain

Generates 11.9% of total employment (about 2 million jobs)

Covers 174% of the Spanish trade deficit (Bank of Spain, 2014)

Receive more than 65 million tourists (2014) (IET/Tourspain 2014)

Travel & Tourism Competitiveness Index top 10

Country 2015 2013

Spain 1 4

France 2 7

Germany 3 2

United States 4 6

U.K 5 5

Switzerland 6 1

Australia 7 -

Italy 8 -

Japan 9 -

Canada 10 8

Source: The Travel & Tourism Competitiveness Report 2015, World Economic Forum (WEF)

40.3% of our tourists have visited Spain ten or more times in their lifetimes

82% are repeat visitors

148


2nd country in the world in terms of UNESCO World Heritage Sites

(42 sites).

2nd country in Europe in natural areas (14 national parks, 126

nature reserves) and natural spaces declared UNESCO Biosphere

Reserves (42, behind only the United States with 47).

2nd country, behind USA, in receiving foreign golf tourists, with 431

courses and 884,848 tourists in 2011.

648 Spain Blue Flags Eco-Label Record (2013): Beaches Spain

(551), Greece (393), Turkey(383), France (365) and Portugal (280).

More than 120 spa resorts in mid or high mountain locations.

More than 300 days of sunshine a year and more than 2,000 km of

Green Tracks.

Business opportunities

149


HEALTH & WELLNESS

TOURISM

THEMED & LEISURE

PARCS

SMART

TOURISM

CRUISES VACATION

CLUBS

CULTURAL

TOURISM

SPORTS

TOURISM

MICE

GASTRONOMIC

TOURISM RELIGIOUS

TOURISM

NATURE

TOURISM

SUN

TOURISM

LEISURE

TOURISM

URBAN

TOURISM

INTERIOR

TOURISM

Continued expansion and diversification

Increasing number of destinations have opened

up to and invested in tourism

SHOPPING TOURISM

5. Business opportunities: Natural Resources

150

Investing in Natural Resources

151

Spain has one of Europe´s most diversified mining sectors, which produces mostly

industrial minerals and stone.

Spain encompasses almost 90% of the Iberian Peninsula which is considered to be the

most mineralized zone in the European Union as it includes the volcanic massive

sulfide ( VMS) deposits of the Iberian Pyrite Belt ( IPB ).

Leading EU producer of natural sodium sulphate, slate and celestite (strontium

minerals); of the latter, Spain is the second largest producer in the world and the only

one in Europe. Spain is the world's fifth-largest producer of sand and gravel

(industrial), also fifth- largest produces of magnesite ( 3rd in Europe), sixth largest

producer of gypsum ( 3rd largest exporter), and also world´s sixth-largest producer of

fluorspar. Source: Geological and Mining Institute of Spain ( IGME), 2012

Mining and Mineral processing industry contributed 0.8 % of Spain´s GDP ( Banco de España 2012).

Direct Employment: 35,000 people in Spain. Skilled work and

well – developed infrastructure.

Government support: Transparent legislative framework and

positive fiscal environment for the extraction of natural resources.

Long mining tradition and past success in exploration and

mine development.


152 Source: Geological and Mining Institute of Spain ( IGME)

SPAIN: STRUCTURE OF THE MINERAL INDUSTRY 2012

Commodity Major operating companies and

major equity owners Location of main facilities

Annual capacity

(Th. tons unless

otherwise

specified)

ALUMINA

Aluminio/Alúmina Española S,A,

(AESA)

(Alcoa Inc,, 100%)

Alumina plant at San Ciprian, Lugo 1,450

ALUMINUM Alcoa Inespal S,A, (AISA) (Alcoa

Inc,, 100%) Electrolytic plant at San Ciprian, Lugo 250

Electrolytic plant at Aviles 93

Electrolytic plant at La Coruña 87

CEMENT Cementos Portland Valderribas 7 plants in Spain

15,000

Lafarge SA (Lafarge España )

3 cement factories (Montcada i Reixac, Sagunto and Villaluenga de la

Sagra), 1 cement grinding station (La Parrilla) and eight distribution points

cement also has about 40 concrete manufacturing plants, between plants

fixed and mobile; 2 central exclusive production of mortars and 6

aggregate holdings spread across the Autonomous Communities of

Asturias, Catalonia, Madrid, Valencia and Castile-La Mancha.

46,000

COAL:

ANTHRACITE Antracitas Gaiztarro SA Mines near Oviedo 2,000

Antracitas del Bierzo SA Mines near Leon 1,000

BITUMINOUS Hulleras del Norte SA (HUNOSA) Various mines , Asturias 3,300

Hulleras Vasco Leonesa SA Santa Lucia Mine, Leon 2,000

Minas de Figaredo SA Mines near Oviedo 1,000

ENCASUR Emma Mines , Ciudad Real 60




Commodity Major operating companies and major equity

owners Location of main facilities

Annual capacity

(Th. tons unless

otherwise

specified)

COPPER:

METAL,

CONTENT Iberian Minerals Corp Minas de Aguas Teñidas at Huelva ( MATSA) 2,200

Atlantic Copper S,A,

(Freeport McMoRan Copper & Gold Inc,, 100%) Refinery at Huelva 270

Idem Electrolytic refinery at Huelva 105

Industrias Reunidas de Cobre Smelter at Asua-Bilbao 30

Elmet SL Smelter and electrolytic refinery at Berango, Vizcaya 60

First Quantum Minerals Ltd, 100% - Inmet Mining

Corp, Cobre Las Cruces - Open pit mines in Seville Andalucia 210

Idem Cathode electrowinning at Las Cruces in Seville 72

Lundin Mining Corp,, 100% Aguablanca Mine, Extremadura 7

DUNITE Pasek España S,A, Mines and plant at Landoy, A Coruña 1,500

FLUORSPAR Minerales y Productos Derivados SA (MINERSA) Plant at Torre, Asturias 150

Underground mines at Emilio, Jaimina, and 420

Moscona, Asturias

GOLD Orvana Minerals Corp, ( Kinbauri Gold Corp.) El Valle- Boinas Carles mines, Asturias 3,750 (kg)

MAGNESITE Magnesitas Navarras SA Mine at Eugui, plant at Zubiri 600

Magnesitas de Rubián SA Underground and Mine at Lugo, 70




Commodity Major operating companies and major

equity owners Location of main facilities

Annual capacity

(Th. tons unless

otherwise specified)

NICKEL, METAL, CONTENT Lundin Mining Corp,, 100% Aguablanca Mine at Badajoz near Seville 8

POTASH, ORE Iberpotash S,A, (ICL Fertilizers Europe) -

ICL Israel Mines and plants at Suria near Barcelona 1,100

SEPIOLITE Grupo Tolsa S,A, Mine at Madrid and Toledo and plant at Madrid 1,000

Sepiolsa ( MINERSA ) Mine and plant at near Madrid 200

MYTA (SA de Minería y Tecnología de

Arcillas, del grupo SAMCA Mine and plant in Zaragoza and Segovia 100

SODIUM SULFATE Crimidesa SA Mine and plant at Cerezo de Rio, Burgos 600

Minera de Santa Marta SA ( SANCA ) Burgos ( underground) and Toledo (open pit) 400

Sociedad Anónima Sulquiza ( MINERSA) Madrid 100

STEEL Aceralia Corporación Siderúrgica (Arbed

SA 35%) Plants at Aviles, Gijon, Sagunto, and Sestao 8,000

Compañia Española de Laminacion S,L,

(Celsa), 100% Plant at Barcelona 2,600

Corporación Gerdau Sidenor S,A,

(Sidenor) (Gerdau Group, Plant at Basauri 2,500

50%, and Santander Group, 50%)

STRONTIUM Solvay Minerales SA Mines and plant at Escuzar, Granada 85

TUNGSTEN Almonty Industries Los Santos, Salamanca 125

ZINC, METAL, CONTENT Asturiana de Zinc SA (Azsa) (Xstrata plc,

100%) Electrolytic zinc plant at Asturias 500


155

Success stories

Canada’s First Quantum Minerals Ltd interested in Cobre

Las Cruces copper mines.

This mine is the largest open pit operation and process plant located in

Southern Spain.).The plant is designed to produce approximately 72,000

tones of copper cathode per year, shipped as final product.

ICL (Israel Chemicals Ltd) announced

the first stage of an efficiency plan for

Iberpotash, which includes increasing

potash granulating capacity to meet increased

demand for granulated potash, as well as

construction of a plant at Suria to produce 1.5 Mt of

vacuum salt for the food and chemical industries.

Execution of this plan was expected to be completed

in early 2014 at a cost of about 160 million euros.

The second project, which had not yet been

approved, would expand Suria’s potash production

capacity to produce 1.1 Mt of potash, of which

630,000 t would be granulated potash and 50,000 t

would be technical potash.

In September 2009, Orvana

Minerals Corp of Canada( OMC )

acquired “El Valle –Boinas/Carles”

( EVBC) cooper and gold mine in northern Spain,

through its acquisition of Kinbauri Gold Corp. The

EVBC was previously mined from 1997 to 2006 by

Rio Narcea Gold Mines. They produced nearly

1,000,000 ounces of gold and over 20,000 tones of

copper prior to the closure of the mine. Production

guidance for EVBC for 2013 is, 63,000 ounces of

gold, 6,000,000 pounds of copper and 200,000

ounces of silver.


5. Business opportunities: Textile & Clothing

156

Investing in Textile & Clothing

157


Spain is one of the five biggest producers in T&C industry in the EU and

accounting for about three quarters of EU production of textile and clothing.

There are more than 8,500 companies, which are a major employment

generator and provided jobs for 129,000 people in 2014, with an estimated

turnover of € 9.3bn.

Textile and Clothing sector in figures in Spain

Source : Fact Sheets MINETUR 2013

158


Spain Exports of Textile and Clothing sector

Source : Directorate General for Customs / Icex

Spain Imports of Textile and Clothing sector

European Union 68%

America 10%

Asia 12%

Africa 4%

Rest of Europe 6%

Oceania 0%

Rest of the world 0%

European Union 66%

America 9%

Asia 15%

Africa 2%

Resto Europa 8%

Oceania 0%

Rest of the world 0%

159


Spanish companies in T&C sector

The main Spanish companies and brands national in the sector are:

159

http://www.google.com/url?url=http://www.mediabistro.com/prnewser/desigual-clothing-brand-reflects-barcelonas-sunny-spirit_b85234&rct=j&frm=1&q=&esrc=s&sa=U&ei=zRpSVOyUB4PSaNLBgaAN&ved=0CBoQ9QEwAg&usg=AFQjCNH8ZdvG2qMOkjA_YZaKRiHaXQZrZQ

http://www.google.com/url?url=http://www.brandemia.org/mango-cambia-de-logotipo-por-primera-vez-en-su-historia&rct=j&frm=1&q=&esrc=s&sa=U&ei=-RpSVODNMcHYarD_gqAG&ved=0CB4Q9QEwBA&usg=AFQjCNHes2uu13At75fNarrSUEqRoTIgEQ

http://www.google.com/url?url=http://spelcom.cl/?page_id=827&rct=j&frm=1&q=&esrc=s&sa=U&ei=IBtSVIbZCs6raezogJgC&ved=0CCYQ9QEwCA&usg=AFQjCNHwlpLSOv8rBmSaN44UWjAXSz0jeQ

http://www.google.com/url?url=http://en.wikipedia.org/wiki/File:Massimo_Dutti.png&rct=j&frm=1&q=&esrc=s&sa=U&ei=2RtSVJP4Gs3xarjugcAE&ved=0CBYQ9QEwAA&usg=AFQjCNHE-d3IYmDZJwrJvdrXY2U00Q91jg

http://www.google.com/url?url=http://www.lovelygram.com/hoss-intropia/&rct=j&frm=1&q=&esrc=s&sa=U&ei=JhxSVJzoF5Dtapb7gfAD&ved=0CBYQ9QEwAA&usg=AFQjCNEwLXUHvOn_uk59HMDgzgIx6xwkNQ

160

Foreign companies in T&C sector

Foreign companies and brands with presence in Spain are:


http://www.google.com/url?url=http://fashionplaceface.com/victorias-secret-vs-logo/&rct=j&frm=1&q=&esrc=s&sa=U&ei=HEVSVLSeH4_Vav7PgegL&ved=0CBYQ9QEwAA&usg=AFQjCNEpXIy0XJA9atqk1ntkC8GD_b-v2w

http://www.google.com/url?url=http://tout-metz.com/magasin-primark-possible-ouverture-metz-2014-7854.php&rct=j&frm=1&q=&esrc=s&sa=U&ei=R0VSVOabO8KRaK2TgNAB&ved=0CB4Q9QEwBA&usg=AFQjCNEsKJDfqm8AxURd8WHM2IhAhPslJw

http://www.google.com/url?url=http://www.cath.ch/detail/benetton-retire-le-photomontage-du-pape-embrassant-un-imam&rct=j&frm=1&q=&esrc=s&sa=U&ei=DEZSVOKDNYTKaK_KgdAN&ved=0CCYQ9QEwCA&usg=AFQjCNGVxL5P6QDVrZRyHPDoppuGhGYqZQ

http://www.google.com/url?url=http://goodlogo.com/extended.info/pepe-jeans-logo-3231&rct=j&frm=1&q=&esrc=s&sa=U&ei=REZSVLqAIcneavyIgZgG&ved=0CBYQ9QEwAA&usg=AFQjCNEiAq7dZPQ0oimW02xGKbHULTctwQ

http://www.google.com/url?url=http://www.andrewandrogers.com/brands/prada-logo/&rct=j&frm=1&q=&esrc=s&sa=U&ei=rFdSVPDeA87eaLaggPAP&ved=0CBYQ9QEwAA&usg=AFQjCNG27BwlzM1soDgLcO7An0gHDN4R0g

http://www.google.com/url?url=http://vietq.vn/y-nghia-thu-vi-nam-sau-nhung-logo-noi-tieng-d31570.html&rct=j&frm=1&q=&esrc=s&sa=U&ei=_1dSVJ7qBJThaunMgugD&ved=0CB4Q9QEwBA&usg=AFQjCNFdYjHfS8wiXN6ePZ8Dys04uRmmxw

http://www.google.com/url?url=http://en.wikipedia.org/wiki/Burberry&rct=j&frm=1&q=&esrc=s&sa=U&ei=60VSVMkSz-Fq3MKCaA&ved=0CBYQ9QEwAA&usg=AFQjCNHntyUrVcmh0H72gQfYCsfeG7TwDg

http://www.google.com/url?url=http://commons.wikimedia.org/wiki/File:H&M-Logo.svg&rct=j&frm=1&q=&esrc=s&sa=U&ei=NltSVJvnNIK6ab7WgbgI&ved=0CBYQ9QEwAA&usg=AFQjCNH3egOxPDDT2EhoVKhc4-q0SzJdBA

http://www.google.com/url?url=http://typophile.com/node/104818&rct=j&frm=1&q=&esrc=s&sa=U&ei=nFtSVMDlD83taO7QgcAH&ved=0CBwQ9QEwAw&usg=AFQjCNFWfDzdDdF7HK_8n5N1cy74po4jmQ

http://www.google.com/url?url=http://fr.wikipedia.org/wiki/Fichier:Chanel_logo2.svg&rct=j&frm=1&q=&esrc=s&sa=U&ei=BlxSVO_nGdLdatO6gOAD&ved=0CBYQ9QEwAA&usg=AFQjCNE0P7RjQvRsIBwEzGjCts0HuFJPww

http://www.google.com/url?url=http://commons.wikimedia.org/wiki/File:Louis_Vuitton_Logo.svg&rct=j&frm=1&q=&esrc=s&sa=U&ei=cVxSVNfGI42raYaIgYAE&ved=0CBYQ9QEwAA&usg=AFQjCNFW0QmCZlfVwnLk2IhfscLJLsaosw

http://www.google.com/url?url=http://logoshistory.blogspot.com/2011/01/all-christian-dior-logos.html&rct=j&frm=1&q=&esrc=s&sa=U&ei=k1xSVIabCpPnat2KgrAD&ved=0CBYQ9QEwAA&usg=AFQjCNFGabra3nVZXnkY5gAGQkQ3s79QKw

http://www.google.com/url?url=http://goodlogo.com/extended.info/salvatore-ferragamo-logo-3657&rct=j&frm=1&q=&esrc=s&sa=U&ei=51xSVLDGH8flaLHSgNgP&ved=0CBYQ9QEwAA&usg=AFQjCNFoLDxYFEWYKMbrLYnyr8y4KqD7tA

http://www.google.com/url?url=http://fontmeme.com/fendi-font/&rct=j&frm=1&q=&esrc=s&sa=U&ei=W11SVPmlCpXbapTEgpgN&ved=0CBYQ9QEwAA&usg=AFQjCNHdv6moDCuIBYlUg23d03qZ-_DAJg

http://www.google.com/url?url=http://annarosich.wordpress.com/2014/02/12/tipografia-giorgio-armani/giorgio-armani-logo/&rct=j&frm=1&q=&esrc=s&sa=U&ei=wV1SVP4k1-1q1--CsAw&ved=0CBoQ9QEwAg&usg=AFQjCNGvADTDA_D5n6cNlti-NI83MLoJLA

http://www.google.com/url?url=http://luxevn.com/tu-dien-thuong-hieu/ermenegildo-zegna/&rct=j&frm=1&q=&esrc=s&sa=U&ei=811SVNfRMZLvaLr0gLAH&ved=0CBgQ9QEwAQ&usg=AFQjCNF7kxQs-LcnxunkRHBb0LrdMP6Q4g

161


Hennes & Mauritz was set up in Spain in 2000. H & M, open the first store in

Barcelona, Glories 6th of April, followed by two additional store openings in Zaragoza

in the shopping centers of Grancasa, April 7, and Augusta, April 13. The fourth

opening was in May month in Barcelona la Maquinista. In fall 2000 was open H&M in

the center of Madrid and in Spring 2001 in Valencia.

H & M expands its commitment to the 'e-commerce' the presence Store 'online' in

Spain in autumn 2014.

«Estamos entusiasmados con la llegada

de H&M 'online' a España este otoño, algo

que nuestros clientes estaban esperando

ansiosos, ya que es el complemento

perfecto para nuestras 150 tiendas de

España y la oportunidad de ofrecer a

nuestros clientes la mejor experiencia de

compra las 24 horas del día», ha asegurado

Doris Klein, directora general de H&M para

España y Portugal.

Source: ABC.es

Success stories

6. ICEX-Invest in Spain

Paseo de la Castellana, 278

28046 Madrid SPAIN

T (+34) 91 503 58 00

E-mail: [email protected]

www.investinspain.org

ICEX / Invest in Spain your partner in Spain

162

mailto:[email protected]

Objectives & activities

Who is…

163

• Promote, attract and consolidate foreign direct investment in Spain, with particular emphasis on new investment projects in the industrial, technological and services sectors.

• Facilitate cooperation between international investors and Spanish companies in order to increase and develop their activity in Spain.

• Position Spain as a global platform for international business and investment and as a global, competitive economy. Open to investment and with a wide and diversified business structure and network, human and technological resources which are very competitive for investment and access to EU, North African, Mediterranean, Middle Eastern and Latin American markets.

• Improve the business climate and increase Spain's attractiveness for foreign investment through proposals to improve the regulatory framework and make it easier for companies to invest and do business in Spain.

Invest in Spain is an executive division of ICEX Spain Trade and

Investment, a public company chaired by the Secretary of State for Trade

of the Ministry of Economy and Competitiveness.

Its mission is to attract foreign direct investment (FDI) to Spain. It has an

exterior network of more than 100 Economic and Commercial Offices of

Spanish Embassies facilitating access to potential international investors.

www.oficinascomerciales.es

http://www.oficinascomerciales.es/





Personalized advisory service. Customized reports on client needs

Specialized consultancy in legal and technical terms through associated

companies

Advice on all stages of the investment process:

Information on incentives and subsidies for investment projects, on an

European, national, regional and local level.

Establishment of companies, industry regulations, labor and tax

regulations, industrial and intellectual property, administrative

processes, advice on the most appropriate way of obtaining work and

residence permits.

Information on business opportunities and privatization processes.

1. Information and Advice

Personalized support for foreign companies in Spain:

• Identification of strategic and technological partners for each project.

• Organization and coordination of agendas, meetings and investor visits

• Looking for the best location in Spain for each project.

Network of investment attraction agencies: a meeting point for all official

institutions which either on a state, regional or local level are dedicated to

promoting and attracting investment.

2. Support and Management of FDI projects

164

Investor Network, a service which aims to put the Spanish and international capital markets in touch with selected investment opportunities.

Looking for financial partners and managing joint ventures between foreign investors and Spanish companies.

Support in finding incentives and financing, both public and private, for the establishment, development and expansion of companies in Spain.

Invest in Spain manages the Technological Fund, a European program created to promote R+D+i. Non-repayable aid for foreign companies.

Information for foreign investors on privatization processes in Spain.

3. Financing and investor relations

4. Business and development climate

Invest in Spain promotes improved relations between companies and foreign chambers of commerce and Governments, in order to improve comprehension of their interests and needs.

Proposals for legislative and administrative reform which improve the business environment.

Business climate evaluation studies by means of individual interviews and opinion groups comprised of foreign companies established in Spain.

For further information you can follow our Newsletter, guides and publications on topics of interest to investors. 165

Provides advice on the most appropriate way (quickest and least

bureaucratic) to obtain the permits for highly qualified employees,

technical staff, scientists, families, ...

Advice on how to open a branch, create or acquire a company ...

Assessment for transactions that involve immigration issues for

foreigners without residence in Spain

Act as the institutional contact for companies vis-à-vis all Spanish

bodies with powers, such as the Spanish Embassy and Consulates,

Ministry of Employment, Home Office and Regional Immigration

Offices

Services of special interest: Immigration Department

6. Invest in Spain: Investor services

166

6. Invest in Spain: Investor services

167

Services of special interest: Investment Program in R&D Activities

Since 2007 ICEX-Invest in Spain has managed European Regional

Development Funds (ERDF) with the objective of attracting research

and development activities from foreign-owned capital companies to

Spain

For the period 2014-2020 ICEX-Invest in Spain will manage €14 million

budget for projects allocated in Extremadura, Andalucia, Castilla la

Mancha, Canarias, Murcia, C. Valenciana or Galicia

Investment in facilities, equipment, human resources and technology

could be supported up to €200,000 per company in competitive

tenders.

Since 2007 Invest in Spain has supported 127 projects in high value-

added sectors such as Biotechnology, IT, Renewable energies and

Environment

168

Investment & Business Opportunities in selected Spanish Companies

The information provided in this section on the by ICEX-Invest in Spain is a summary based on different

sources: the company, website, databases, etc. This is not a bidding information and ICEX-Invest in

Spain does not assume any responsibility for the information provided.

The potential investor should carry out its own due diligence completing and updating the information

directly with each company.

ICEX-Invest in Spain acts as facilitator, promoting the dissemination of information about business and

investment opportunities in Spain among potential investors. ICEX-Invest in Spain also facilitates the

direct contact between potential investors and Spanish companies or asset managers. ICEX-Invest in

Spain does not take part in the negations between the parties, without precluding the possibility of

advising them if requested.

General Information on companies included in this Report The Information on Spanish and foreign companies included in this Report has been obtained from

public sources, among others, including their web sites, media news, Stock Exchange information and

others. ICEX-Invest in Spain does not assume any responsibility on it.

The inclusion of this companies in this Report is for information purposes only, and does not preclude

the position of this Companies in relation to potential investors either its intention or strategy.

Disclaimer Clauses:

6. ICEX-Invest in Spain

Paseo de la Castellana 278

28046 Madrid SPAIN

T (+34) 91 503 58 00

E-mail: [email protected]

www.investinspain.org

ICEX / Invest in Spain your partner in Spain

169

mailto:[email protected]

Spain: your partner in Europe · increasing their exports and business towards Latin America, USA,...

Documents

Transcript of Spain: your partner in Europe · increasing their exports and business towards Latin America, USA,...