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Madrid preferred location for foreign investors

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Madrid preferred location for foreign investors presentation. Containing Madrid Key Figures; Reasons to invest in Madrid; Main Sectors information and the Services Offered by PromoMadrid to Foreign ...

Madrid preferred location for foreign investors presentation. Containing Madrid Key Figures; Reasons to invest in Madrid; Main Sectors information and the Services Offered by PromoMadrid to Foreign Investors.

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    Madrid preferred location for foreign investors Madrid preferred location for foreign investors Presentation Transcript

    • MADRID AS PREFERREDLOCATION FOR FOREIGNINVESTORSApril 2012 1
    • 1.- MADRID: KEY FACTS MRID KEY FACTS2.- WHY INVEST IN MADRID?3.- MAIN INDUSTRIES4.- SERVICES OFFERED BY PROMOMADRID 2
    • 1. MADRID: KEY FACTS LOCATION OF MADRID 3
    • 1. MADRID: KEY FACTS THE MADRID REGION AT A GLANCEComprised of the Capital City, Madrid, MADRID in SPAINand the rest of the 179 municipalities: Size: 8,028 km2 1.6% of Spain Population (2011) : 13.8% of Spain 6.49 mill (1) GDP (2011) : 19.7% of Spain €211,669 mill (2) Large foreign population (2011) : 18.6% of Spain Madrid region 1.07 mill (1) Madrid City (region’s and countrys capital) Sources: (1) National Statistics Institute; (2) Madrid Statistics Institute and National Statistics Institute 4
    • 1. MADRID: KEY FACTS REGIONAL ECONOMY DEPENDENT UPON THE SERVICE SECTOR AND SUPPORTED BY A STRONG INDUSTRIAL BASEGross Value Added (*) by sector, Madrid 2011 Leading Economic Sectors (%) (1)  Services Agriculture  Business Services and Real Estate Construction 8.4% 0.1%  Commerce Industry 9.4%  Transport and Communications  Financial Services  Industry  Paper products, Editing & Publishing  Chemicals (Pharma) and Plastics  Metal Industry  Electronics Services 82.1% (*) Gross Value Added : GDP less taxes on products plus subsidies on products Source: (1) Madrid Statistics Institute 5
    • 1. MADRID: KEY FACTS TOP FOREIGN DIRECT INVESTMENT LOCATION IN SPAIN When it comes to investing in Spain, Madrid always comes in 1stDistribution of FDI by regions, Spain, 2007-2011 (%) (1) Rest of Spain 21%  FDI to Madrid reached 72,071 mill. € between 2007-2011 (1) Catalonia  Spain was the world’s 14th and 15% Europe’s 6h largest recipient of FDI 64% in 2010 (2)Sources: (1) Ministry of Economy;(2) World Investment Report 2011, UNCTAD 6
    • 1.- MADRID: KEY FACTS2.- WHY INVEST IN MADRID?3.- MAIN INDUSTRIES4.- SERVICES OFFERED BY PROMOMADRID 7
    • 2. WHY INVEST IN MADRID? DYNAMIC AND INTERNATIONAL BUSINESS CENTRE 8
    • 2. WHY INVEST IN MADRID? BUSINESS FRIENDLY GOVERNMENT  Fiscal policy friendly to foreign corporations: Holding Companies, Tax Consolidation, Tax Credits for R&D activities  Expats pay only 24% income tax during the first 6 years (income generated in Spain) (*)  Lowest regional personal income tax in Spain  2,04 days: average time for setting up a company (Telematic procedure) (1)  Top “Business friendly” region in Spain (2)(*) For annual incomes lower than 600,000 EurosSource: (1) Ministry of Industry, Tourism and Trade, CIRCE, 2011; (2) “Business Freedom Index 2011” Thomson Reuters 9
    • 2. WHY INVEST IN MADRID? SPAIN’S ECONOMIC ENGINE …  Top Spanish region in terms of GDP and GDP per capita (2011) (1)  2.4% average annual growth in 2002-2011 (2)  Financial Centre of Spain, third in Europe and fourth worldwide (3)  Main business hub in Spain (more than 500,000 operative companies) : (4)  21% of all the companies created in Spain in 2011 are from Madrid (4)  53% of the 500 main Spanish companies are headquartered in Madrid (5)  First high technology exporter region in Spain (36% of the total of Spain) (6)Source: (1) Regional statistics Institutes (for GDP data) and National Statistics Institute 2011 (for population data);(2) Madrid Statistics Institute; (3) Madrid as Financial Center-Deloitte 2010; (4) National Statistics Institute;(5) Actualidad Económica 2011; (6) Datacomex-ICEX 2011 10
    • 2. WHY INVEST IN MADRID?7th worldwide most … AND TOP WORLDWIDE BUSINESS CENTREattractive city forbusiness  Preferred location in Spain for foreign multinationals: over 5,000 foreign companies are located in Madrid (1)  3rd European city and 7th Worldwide by number of top multinational companies with operative headquarters : (3) BBVA, ENDESA, REPSOL, SANTANDER, TELEFONICA, etc.  The Madrid region has a higher purchasing power than most of the other European countries, such as Germany, the UK, France or Italy, with a GDP per capita in 2011 of 32,616 €. (4) 5th European Sources: (1) ORBIS 2012; (2) IBM Global Location Trends 2010; (3) UNCTAD; (4) Regional commercial centre (5) Statistics Institute (for Madrid data) and Eurostat (for EU countries data); (5) Worldwide Centers of Commerce Mastercard 2008 11
    • 2. WHY INVEST IN MADRID? EXCELLENT GEOSTRATEGIC LOCATION 12
    • 2. WHY INVEST IN MADRID? LOGISTICS CENTRE FOR THE IBERIAN PENINSULA Transport by air Transport by land Barajas Airport is the main National: heart of radial airport of Spain and the 4th in Barajas is of main airport Europe in termsthepassenger highway and railway system; hub for high-speed trains. trafficIberia and the 4th in in (almost 50 million passengersin terms ofis also the Since 2010 Spain boasts the Europe in 2011). It 2nd airport in Europe in terms of EU’s largest high-speed rail passenger traffic network (2nd in the passenger capacity (70 million).(1) Strategic link between world), with 1,800 miles in Direct flights with more than Europe and Latin America: service. (2) 208 cities worldwide in 67 30% of flights to Latin countries(1) More than 600 miles of America are routed via highways in the region. (3) Strategic link between Europe Madrid(1) Within 8 hours by road of any and Latin America: 1/3 of flights market in Spain. to Latin America are routed via Madrid. (1) International: good road and rail links to France and Portugal. Impending Transport by sea connection to the French rail The Dry Port in the Logistics Center of Coslada is 10 system. minutes away from Barajas and connects Madrid with Regional: the public transport the main Iberian ports in a few hours and at very low network provides cost cheap, efficient and integrated transit throughout the region’sSources: (1) AENA; (2) ADIF; (3) National Statistics Institute 8.000 km2. Due to its inter-modal excellence, 60% of Spain’s largest logistic companies operate from Madrid 13
    • 2. WHY INVEST IN MADRID? STRATEGIC PLATFORM TO SOUTHERN EUROPE, NORTHERN AFRICA AND LATIN AMERICA Bridge to more than 1,300 Million(*) potential customers  Main Multinationals with HQs for Southern Europe in Madrid: Microsoft (Consumer Goods), Altran, Peribit Networks, THQ, etc.  Main Multinationals with HQs for Europe in Madrid: Europe Alpargatas, BP Solar, Cigna, IBM, Reynolds Ventures, Cemex, Sany Heavy Industry Co., etc.  Main Multinationals with HQs for EMEA in Madrid: Ericsson Thyssenkrupp (Elevators), ICP Solar Africa Technologies, Pemex, Grupo Modelo, etc. South  Main Multinationals with HQs for Latin America in Madrid: America Alcatel, Atlantic Cooper, BT, Qualcom, WincorNixdorf, etc. Spain is the 2nd investor in Latin America (LAM) in 1990- 2010 (1)(*) European Union , Mediterranean countries & LAM; Madrid represented 60% of Spain’s investment in LAM in Sources: (1) Cepal 2011; (2) Ministry of Economy; 2007-2011 (2)(3) Survey AHK, German Chamber of Commerce in Spain 2010. “50% of all German subsidiaries in Spain are 14 involved in third markets’ decision-making” (3)
    • 2. WHY INVEST IN MADRID?SCIENTIFIC AND TECHNOLOGICAL DEVELOPMENT CENTRE 15
    • 2. WHY INVEST IN MADRID? PRO-R&D GOVERNMENT R&D Weight in GDP in 2010 R&D goal in Madrid: to reach 3% of Madrid’s GDP by 2.02% (1) 2.00% (2) 2013 1.63% (1)  Madrid, number 1 Region in Spain in terms of R&D 1.39% (1) expenditure as percentage of GDP (2.02%). (1)  R&D expenditure of Spain and Madrid has increased in last years ( Madrid, from 1.92% of GDP in 2007 to 2.02% of GDP in 2010. (1) Regional, National and European I PRIDI 2009-2012 incentives Regional Plan for Research + Development + InnovationSource: (1) National Statistics Institute; (2) Eurostat 16
    • 2. WHY INVEST IN MADRID? SPAIN’S MAIN R&D HUB 4.5 million s.q.m. devoted to science and technology clusters R&D Professionals 2010 (1) Madrid 25% Univ. Çomplutense Univ. Autónoma Rest of Spain 75% de MadridNational R&D Expenditure 2010 (1) Madrid 26% Universidad Politécnica de Madrid Rest of Spain 74% Corporate R&D’s GVA 2010 (1) Madrid 28% Rest of Spain 72% Universidad Carlos III Source: (1) National Statistics Institute 17
    • 2. WHY INVEST IN MADRID? … SECOND EUROPEAN HIGH TECHNOLOGY REGION High-tech employment in EU-27, 2010 (1) Madrid is in 6th position according to Buck Consultants’ 2009 ranking “EuropeanTech City Index” “One of Madrid’s competitive advantages is the high number of universities with R&D practices, which are so useful for the group’s innovation processes.” Alvaro Alcina, Strategic Development and External Relations Director, ALCATELSource: (1) Eurostat, Regional Employment in High Tech Sectors 18
    • 2. WHY INVEST IN MADRID? COMPETITIVE ECONOMY 19
    • 2. WHY INVEST IN MADRID? ..CCOMPETITIVE REAL ESTATE COSTS… Office rental prices European office space (€/Sq.m/annum) (1) availability ranking (2) 336 Berlín 1 Frankfurt 408 Bucharest 2 Milan 500 3 Mumbai 641 Leeds 4 Sydney 651 Birmingham 4 Paris 750 Barcelona 6 Moscow 754 Dublin 7 Hong Kong 901 Bratislava 8 Tokyo 1,051 Frankfurt 9 London 1,067 London 10Source: (1) Knight Frank Global Real Estate Annual Review 2011; (2) European Cities Monitor 2011, Cushman & Wakefield 20
    • 2. WHY INVEST IN MADRID? … AND LABOUR COSTS IN SPAIN … Euro Zone Labour costs (€/hour)1 20,6 € Euro Zone 23,1 € EU 27 27,6 € ITALY 26,8 € AUSTRIA 29,2 € FINLAND 29,7 € GERMANY 30,1 € NETHERLANDS 31,1 € FRANCE 34,2 € BELGIUM 39,3 €Source: (1) Eurostat , April 2012 21
    • 2. WHY INVEST IN MADRID? … AND IN MADRID Annual Total Remuneration Benchmarking in Europe, 2010 (€) (1) JOB TITLE Madrid London Paris Milan Amsterdam Brussels Munich Geneva Marketing Middle 64 578 65 367 67 507 71 779 75 579 79 039 91 304 119 386 Management Difference with 1,22% 4,50% 11,15% 17% 22,30% 41,30% 84,80% Madrid Auditor 45 366 47 602 48 972 47 596 56 536 59 328 69 698 96 234 Difference with - 5% 8% 4,90% 24,60% 30,70% 53,60% 112% Madrid Labour costs are distinctly low when compared with those of other Western European countries In comparison to its neighbors from the European-15, labour costs in Madrid are 26% lower overallSource: (1) Watson Wyatt Global 50, 2010 22
    • 2. WHY INVEST IN MADRID? HIGHLY QUALIFIED AND DIVERSE HUMAN CAPITAL 23
    • 2. WHY INVEST IN MADRID? QUALIFIED WORKFORCE Population with tertiary education, 2010 (1)  17 universities (plus 2 distance learning universities)  University graduates: more than 35,000 per year (2)  Doctorates: more than 1,800 per year (2)  Number of university students: 195,000 per year (2)  Engineering students: 45,000 per year (2)Source: (1) Eurostat; (2) National Statistics Institute 24
    • 2. WHY INVEST IN MADRID? LARGE AND MULTINATIONAL LABOUR POOL  More than 3.3 million professionals (4Q 2011) (1) Available workforce  Unemployment rate: 18.5% (4Q 2011) (1)  Europe’s 3rd largest metropolitan area (2)  1,07 million foreigners (18.6% of the population) (3)  More than 11,000 foreign students per year (4.4% of total university students, higher than the national average of 3.2%) (4) International  36% of the Spanish population speaks one or more foreign languages fluently  Madrid concentrates the highest percentage of students learning a foreign language in Spain: 91.4% English, 16.5% French and 1.5% German (5)  Spain 1st destination in Europe under ERASMUS programSource: (1) National Statistics Institute; (2) UN-World Urbanization Prospects 2007; (3) National Statistics Institute; (4) Ministry of Education 2010-11; (5) Financial Times 2009 25
    • 2. WHY INVEST IN MADRID? UNIQUE QUALITY OF LIFE 26
    • 2. WHY INVEST IN MADRID? ABILITY TO ATTRACT AND RETAIN TALENT “Madrid, my new home. Best for life and business” Ruth Härdle, Eurocopter Spain, R&D Configuration Management  Spain # 1 in terms of quality of life for expatriates (1)  Top Quality Multilingual Education: 50 international schools, 242 bilingual public schools and 32 bilingual public high-schools.  Universal health system with 87 hospitals.  Madrid is the 2nd city in the world by quality of its health system. (2)  Wide range of cultural and leisure activities: Museums, Theatres, Concert Halls, Theme Parks, etc.  Sailing and skiing within 1 hour of Madrid’s downtown  Outstanding weather: 2.769 hours of sun per year (15ºc) “Madrid has the best combination of whatever a businessman needs” Ricardo Weiss, TAVEX-Brasil, Corporate General ManagerSource: (1) HSBC 2011; (2) Global Cities 2011, Euromoney. 27
    • 1.- MADRID: KEY FACTS2.- WHY INVEST IN MADRID?3.- MAIN INDUSTRIES4.- SERVICES OFFERED BY PROMOMADRID 28
    • 3. MAIN INDUSTRIES INVESTMENT SECTORSIT and Telecommunications Logistics, Retail & Hospitality Clean Energies IBM, Alcatel-Lucent, DHL, FEDEX, Kiala, Pal Iberdrola, BT, Toshiba, Nokia, letways, Accor Petratherm, MT- HP, Oracle, Atos, , Autogrill, Decathlon, Enerterra, Suzlon, BT, Motorola, H&M, Leroy Vestas, Sunpower, Siemens, Microsoft, Merlin, McDonalds, Ne Suntech, First SAP, Vodafone, wrest, Primark, Travell Solar, Yingli Solar, Google, Accenture odge ABBAerospace Life Sciences Finance EADS, Boeing, Airbus, ICBC,BMCE, Pfizer, Bristol Myers Deutsche Bank, Eurocopter, Thales Squibb, GSK, Sanofi Barclays, BNP- Alenia Space, Alcatel, Aventis, MSD, Lilly, Paribas, Western EuroProp Int., General Janssen Cilag, Novo Union, Generali, Dynamics, CAE, Safran Nordisk, Italfarmaco, AXA, Allianz , Saxo Gr., Hexcel, Merck Serono, Bayer Bank, CIGNA, Zürich RR Plc, Goodrich Business Services Clifford Chance, DLA Pipper,Baker&McKenzie, Boston Consulting,PWC, Deloitte, KPMG, E&Y,Voith, Jacobs, FW, Mc Cann- Erikson, DDB 29
    • 3. MAIN INDUSTRIES INVESTMENT OPPORTUNITIESR&D and Excellence Centres Regional HQs & SSC Distribution Centers Abbott, Carrefour, IBM, Boeing, Ericsson Accenture, Altran, BT, Danone, Dunlop, , Motorola, HP, GSK, J Cigna, Cemex, Grupo Inditex, Fnac, anssen- Modelo,BMCE, Daimler Holmen Paper, Cilag, Lilly, Alcatel- , Deloitte, Ericsson, IB Legrand, Lilly, MSD, Lucent, Pfizer, Sieme M, Praxair, Pemex, Ro Míele, Renault, ns, Vodafone, Sanofi che, Microsoft, Nixdor Roche,Toys-R-Us, Aventis f, Thyssen Krupp Valeo, WEG 30
    • 1.- MADRID: KEY FACTS2.- WHY INVEST IN MADRID?3.- MAIN INDUSTRIES4.- SERVICES OFFERED BY PROMOMADRID 31
    • 4. SERVICES OFFERED BY PROMOMADRID We provide companies with information and advice throughout their investment decision process and implementation PRELIMINARYOBJECTIVES IMPLEMENTATION STUDY  To attract new  Advice and supply  Advice and support foreign companies to of tailor-made to commence the Region of Madrid information operations in Madrid  To help foreign  Organization of companies already visit to Madrid settled in Madrid to increase their business 32
    • 4. SERVICES OFFERED BY PROMOMADRID PRELIMINARY IMPLEMENTATION STUDYPRELIMINARY STUDY Economic data: macroeconomic and demographic, regional and local figures Market intelligence Legislation: investment, company, labour and social security, tax and accounting Business and Operational Costs: labour, property, utilities, pricing and setting-up costs Property availability: rental/sales, industrial/office and warehouse/labs Support programmes and Available incentives The most suitable product and service providers The search for potential partnerships, strategic alliances and joint ventures with local companies 33
    • 4. SERVICES OFFERED BY PROMOMADRID PRELIMINARY IMPLEMENTATION STUDYPRELIMINARY STUDYOrganize client’s visit to Madrid Organize visits to potential location sites Arrange meetings with foreign businesses located in Madrid Meetings with sectorial associations and incentive management entities Programme of visits to companies who may be potential investment partners 34
    • 4. SERVICES OFFERED BY PROMOMADRID PRELIMINARY IMPLEMENTATION STUDYIMPLEMENTATION Practical guidance with administrative procedures Liaisons with local, regional, and national institutions Help in finding project financingAdvice regarding obtaining business incentivesHelp in choosing and securing final location 35
    • 4. SERVICES OFFERED BY PROMOMADRID THIS CUSTOMIZED INFORMATION AND GUIDANCE WILL BE PROVIDED AT NO CHARGE AND ON A STRICTLY CONFIDENTIAL BASIS 36
    • SOLID CUSTOMER BASE 37
    • SOLID CUSTOMER BASE 38
    • Thank you C/ Suero de Quiñones, 34 Madrid 28002 Tel: +34 917 450 127 Fax: +34 914 110 913 info@promomadrid.com www.promomadrid.com 39