Moroccan Investment Development AgencyAllal El Fassi Avenue, Madinat Al Irfane,10110 Hay Riad, Rabat - MoroccoGPS : 33.978478,-6.868201

Phone: + 212-537 22 64 00 Email: aero@invest.gov.ma

www.invest.gov.ma

THE AEROSPACEINDUSTRYIN MOROCCO

YOUR ONE STOP SHOPFOR INVESTMENT IN MOROCCO

AEROSPACE INDUSTRYSNAPSHOT

MOULAY HAFID ELALAMYMinister of Industry, Trade,

Investment and Digital Economy

“ CASABLANCA AMONG THE TOP 15 AEROSPACE CITIES OF THE FUTURE ” FDI 17/2016

COMPANIES REVENUEGROWTH

INVESTMENTEMPLOYEESEXPORTSALES

+17% x12 444x10 x10

>120 10 2016 2001 2016 2009

>1200012002016 2001

1.00.12016 2001 2016 2003

( in billions USD)

( in millions USD)

(average annual)

“The Kingdom of Morocco is adedicated industrial partner. The

Boeing Eco-System is indicative of our ability to plan and execute large-scale projects in the aerospace sector and launches a new era of aerospace in Morocco.”

2000

5

22

52

100

121

2004 2008 2012 2016

AEROSPACE INDUSTRYEVOLUTION

AN OVERVIEW OF THE MOROCCANAEROSPACE ECOSYSTEMS

> AEROTECHNIC INDUSTRIES> ATLANTIC AIR INDUSTRIES MAROC> HELICONIA INDUSTRIES> ROYAL AIR MAROC> SAFRAN AIRCRAFT ENGINES> SERVICES MOROCCO> STTS MAROC

> BM ELECTRONIC SYSTEMS> CABLAGE INOV> COMECA MAROC> EATON> EOLANE MAROC> EXXELIA MAROC > HIOLLE INDUSTRIES MAROC

> INNOVISTA SENSORS> LATSIMA - GROUPE LATECOÈRE> MATIS AEROSPACE MARO> LIA TECH MAROC> NEXANS MAROC> NSE AERO MAROC> OB ELECTRONIQUE

> POWEREX> SOURIAU MAROC> SAFRAN ELECTRICAL & POWER MOROCCO> TRONICO ATLAS - GROUP ALCEN> VALTRONIC

ASSEMBLY

ENGINEERING

EWIS(ELECTRICAL WIRING INTERCONNECTION SYSTEM)

> ACTIVITE TECHNIQUE DU MAROC> ADETEL MAROC> ADHESIUM TECHNOLOGIES> AKKA TECHNOLOGIES MAROC> ALTRAN> COMEFA-MAROC> JONE & PRECISION ENGINEERING MAROC> LEXIS ENGINEERING SYSTEMS

MOROCCO AUTOMOTIVE ENGINEERING> MORPHO MAROC> NTS MAGHREB> SAFRAN ENGINEERING SERVICES MAROC> THALES HOLDING MAROC> WAGA ENGINEERING ET DISTRIBUTION> ZODIAC AEROSPACE MAROC

MRO

TIER 1> BOMBARDIER AEROSPACE NORTH AFRICA> DAHER MAROC> HEXCEL> LISI AEROSPACE CREUZET MAROC > RFM - RATIER FIGEAC MAROC> SAFRAN DEFENSE SECURITY MOROCCO > SAFRAN NACELLES > STELIA

TIER 2> AERO 13 MAROC> AERONAUTIQUE MAROC> AGBM (GROUPE AEMI)> AML- MICROTECHNIQUE MAROC> AOCM

> ARCONIC FIXATIONS CASABLANCA - GROUP AFS> ASM AERO> ATCH- GROUPE AHG> AUSARE MAROC SA> CASABLANCA AERONAUTIQUE> CHATAL MAROC> CIRCOR MAROC> COMPOSITE INDUSTRIE MAROC > EFOA> FIGEAC AERO MAROC> FMTM> GMM - GROUPEMENT MECANIQUE MAROCAIN > GOAM INDUSTRIE> HALMES (HALGAND)> ICM INDUSTRIE MAROC

> KMTM - KEP METAL TECH MAROC> LELMA> LPS AERO> MAROC DECOUPE LASER> MECAFIM> MECAUR GROUP AHG> MIKROMA MAROC> MK AERO - GROUP MECACHROME> MS COMPOSITES MAROC> NOVAE MAROC> NP MOROCCO (NIEF PLASTIC) > SERMP (GROUPE LE PISTON FRANÇAIS) > SIMRA MAROC> SOCAERO - GROUP DAHER> SPMA- GROUP ARM> TECNUM> TOLERIE VENDEENNE MAROCAINE (TVM> UMP-M

➤ On-time delivery

➤ Quality

➤ Cost competitiveness

MOROCCO’S AEROSPACE VALUE PROPOSITION

MATIS Aerospace received the « Boeing Performance Excellence Silver Award » in 2016

Airbus A320, A320neo, A330, A330neo,A340, A350, A380, Airbus HelicoptersDassault Falcon 5X, Falcon F7X/F8X, Business Jets

Boeing 737, 767, 777,777X, 787, 747

Bombardier G5000/GX, CRJ,CRJ/CL/DASH8-400, LEARJET,Global, Challenger, Regional jet

COMAC ARJ21, C919

Embraer 170, 175, 140, 145,Regional jet

Sukhoi SJ100

AIRCRAFTPROGRAMS

THESE AIRCRAFTS FLY WITH PARTS MADE IN MOROCCO

EQU

IPPE

D AI

RCRA

FTO

EM H

EADQU

ARTERS

MOROCCAN AEROSPACE MEETS WORLDWIDE RATE DEMANDS

MOROCCO AEROSPACEHUB: AT THE CROSSROADSOF CONTINENTS

Due to its political stability, solid infrastructure,

and strategic location, Morocco is rapidly becoming a regionalmanufacturing and export base for international companies.

Sources: Royal Air Maroc, Shipping Comapny, TMPA.

Flight duration

Sea/land route

EVERETT

NEW YORK

CHARLESTON

MUNICHTOULOUSE

2h2d

MADRID

1h1d

8h12d

11h12d

7h10d

SAO PAULO

10h25d

DAKAR

4h3d

3h3d

ROME

ACCRA

JEDDAHTOKYO

DUBAI

3h2d

6h6d

20h33d

7h7d

4h5d

CAIRO

4h4d

BEIJING

SHANGHAI

22h30d

18h30d

SKILLED WORKFORCE

Source: OFPPT, IMA

2011NOUASSEUR AIRPORT ZONE - CASABLANCA NOUASSEUR AIRPORT ZONE - CASABLANCA

IMATHE AEROSPACE

TRAINING INSTITUTESPECIALIZED INSTITUTEFOR AEROSPACE ANDAIRPORT LOGISTICS

2013

Training dedicated to aircraft manufacturing andairport logistics: technician and specialized worker

Training dedicated to aircraft manufacturingand maintenance

Continuous and Middle Management training (diploma) Skills training (8 fields)In-service training (2 cycles)

Skills training upon hiring In-service training

7 000 m² building 3D airplane simulator 4 engines for medium and heavy carrier 1 KING AIR 200 airplane 1 helicopter

16 full time trainers 2 300 m² workshop organized in 5 areas 12 training rooms, 1 multimedia room, 1 lecture hall

Size: 15 000 m² Capacity: 2 000 Output: >1 000 trainees per year

Yearly output: 40 examinations, 30 forums, 1 500 students evaluated 95% hiring rate for skills training Total output: 2 500 diplomas end 2015 3400 people trained by the end of 2016

ISMALA

CREATION

LOCATION

GOAL

TRAINING

RESOURCES

KEY FIGURES

Skills training in aircraft maintenance

AGGRESSIVE TRAINING PLAN TO SUPPORT THE GROWTH OF THE AEROSPACE SECTOR

TRAINING PROVIDED BY BOTH PUBLIC AND PRIVATE OPERATORS, THROUGH SPECIFICALLY DESIGNED TRAINING COURSES TO MEET THE INDUSTRY STAKEHOLDERS’ NEEDS

• Aeronautics and space Engineering

• Computer Science and Embedded systems

• Advanced tele-communications and networks.

• The School of Aerospace Engineering of theInternational University of Rabat (UIR) provideshigh-level training in the field of aeronauticsand space.• The teachings within the university have beenprepared in conjunction with the Georgia Instituteof Technology and Mississippi State University.

• Computer Engineering

• Industrial and production engineering

• Electric, Electronics and Telecom Engineering.

• Mechanical design and manufacturing

• Energy and renewable Energy

• Monitoring and Maintenance mechanics.

A YOUNG AND ACTIVE POPULATION64% of population aged under 34

AEROSPACE RELATED ENGINEERING PROGRAMS

WORLD CLASSINFRASTRUCTURE

HIGHWAYS● Network multiplied by 12 in 15 years

● Connecting 70% of the population

HIGH SPEED TRAIN● 1st high-speed train Tangier-Casablanca by 2018

TRAINS● 1st in Africa in terms of railway infrastructure

PORTS

● 38 ports among which 13 dedicated to foreign trade 2 shorelines (Mediterranean and Atlantic)● Tanger Med: 5th largest port of the Mediterranean sea ; connected to 170 international ports in 67 countries.

AIRPORTS● 16 international airports

● Casablanca #1 hub between Europe and Africa

URBANINFRASTRUCTURE● Tramways in Rabat and Casablanca

ATTRACTIVEINCENTIVE PACKAGE

(*) All Moroccan graduatesSource: Training subsidies granted by the governmentin the aerospace sector (procedures manual).

MADE TO MEASURE SUBSIDIES FOR AEROSPACE PROJECTS

TRAINING SUBSIDIES

THE BOEING ECOSYSTEM A set of tailored incentives covering the specific needs of any aerospace supplier. The Boeing company worked closely with the Kingdom of Morocco to design a targeted package comprised of uncapped investment incentive, a fast-track process and a tailored training program.Companies at any level of the supply chain can apply.Target annual economic impact: 1 billion USD with over 120 companies.

DEDICATED INDUSTRIAL FUNDSA set of dedicated industrial funds granted by the government covering different projects’ investment components such as land, industrial building, equipment, training costs, etc.

FREE ZONE STATUS❙❱ Full exemption from corporate tax for the first 5 years, followed by a rate capped at 8.75% for the next 20 years❙❱ Custom fee exemptions on imported goods and products❙❱ VAT exemption on imported goods❙❱ Exemption from license fees and urban tax during 15 years.

CONTINUINGTRAINING

(USD)

5 50

1 650

3 000

3 300

LEVEL*

Operator

Technician

Middle Management

Engineer / Manager

UPON HIRINGTRAINING

(USD)

1 650

3 300

1 000

3 300

PLUG & PLAY INDUSTRIAL PLATFORMS

CITY

Tangier

Tangier

Nouaceur

Salé

Kénitra

Oujda

Nouaceur

LANDLEASING

(USD/FT²/MONTH)

0,05

0,05-0,06(subject to conditions)

NA

NA

NA

NA

0,02

BUILDINGLEASING

(USD/FT²/MONTH)

0,6

0,5

0,7

0,6

0,5-0,6

0,5-0,6

NA

LANDSALE

(USD/FT²)

5,6-7,9

6,1-8,9

10,7 (Subject to conditions)

14-18,7

3,7-5,6

2,8-4,2

TURNKEYBUILDING

SALE

Price to bediscussed

with the zonedevelopper

depending oncustomer needs'

specifications

No sale options

Tanger Free Zone

Tanger Automotive City

Midparc

Technopolis

Atlantic Free Zone

Oujda Technopole

Nouaceur Technopole

ZONESGROSSAREA

(ACRES)

988

198

306

151

852

264

509

INTERNATIONALMAJOR PLAYERS

SETTLEDIN THE ZONE

AIRPORT

1,9 mi fromTangier airport

37,2 mi fromTangier airport

1,2 mi fromMohammed V

airport

6,2 mi fromRabat Salé airport

31 mi fromRabat Salé airport

0,6 mi fromOujda Angad airport

1,2 mi fromMohammed V

airport

PORT

34,8 mi fromTangier Med port

18,6 mi fromTangier Med port

18,6 mi fromCasablanca port

75,8 mi fromCasablanca port

99,4 mi fromCasablanca port

74,6 mi fromNador port

18,6 mi fromCasablanca port

RAIL STATION

7,5 mi from Tangiercity main station

24,9 mi from KsarSghir rail station

1,2 mi fromMohammed V

airport rail station

12,4 mi from Rabatcity rail station

0 mi railwaybetween Kenitraand Sidi Kacem

6,2 mi from Oujdarail station

1,2 mi fromMohammed V

airport rail station

MOTORWAY

0 mi from A7

6,2 mi from A4

5 mi from A7

0 mi from A1

8,7 mi from A1

6,2 mi from A2

5 mi from A7

MATIS; SAFRANAIRCRAFT ENGINES;SAFRAN NACELLES;

UTC (RATIER FIGEAC MAROC);SAFRAN DEFENSE

SECURITY MOROCCO;GROUPE LPF;LISI-CREUZET;

CETIM

ESTERLINE;D.L. AEROTECHNOLOGIE

EUROPAC;KANSAI PAINT

BOMBARDIER;HEXCEL COMPOSITES;

EATON; ARCONIC;STELIA AEROSPACE

ZODIAC AEROSPACE;LEAR CORPORATION

DELPHISEWS

YAZAKI

EUROPERFIL; SYNERGY CABLES;

IMPERIAL TOBACCO

LOCATION REAL ESTATE OFFER NEARBY INFRASTRUCTURE (MILES)SURFACEAREA

O T H E R Z O N E

F R E E Z O N E S