CONTENTS

3

1 Introduction…………………………………………… 4

2 Aerospace in Spain................................... 5

3 Aerospace in Andalusia............................ 6

4 Major aerospace companies..…………..…… 8

5 Technology & UAS centres…………………….. 11

6 International investors......…………………….. 13

7 Investment incentives ………..…..……………. 15

8 Additional information….......................... 16

Almería

Málaga Cádiz

Huelva Seville

Córdoba

Granada

Jaén

1. ANDALUSIA IS AN EXCELLENT LOCATION FOR BUSINESS IN SPAIN & EUROPE

EXCELLENT INFRASTRUCTURE

• 10 commercial ports

• 5 international airports

• High-speed train links

• Extensive motorway network

ANDALUSIA HAS A LARGE AND COMPETITIVE ECONOMY

• It is Europe’s 2nd largest region (>87,000 km2).

• It is Spain’s most-populated region (8.2 million).

• It has a workforce of nearly four million.

• Its GDP measures nearly €150 billion across more than 500,000 companies.

4

2. SPAIN IS A TOP EUROPEAN LOCATION FOR THE AEROSPACE INDUSTRY

Source: DBK

Spain is among the top 5 European countries in terms of employees in the aerospace sector. The Spanish aerospace market realised revenues of €6.5 billion in 2011 and employed more than 40,000 workers. It is characterised by its high growth (an average of 11.6.% in the last 10 years) and its significant investment in R&D, up to 10% of the industry revenues. There is an ongoing government program which assigned over €3.7 billion of investment into the sector between 2010-14.

5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

5,5

6,0

6,5

7,0

2009 2010 2011

Spanish aerospace industry turnover (billion €)

3. ANDALUSIA IS A LEADING SPANISH REGION FOR THE AEROSPACE INDUSTRY

Source: Hélice Foundation

Andalusia is the second largest aerospace region in Spain representing over 28.4% of the country’s sector revenues.

In 2010, aerospace industry revenues in Andalusia rose by 26%.

About 130 companies operate in the aeronautical sector in the region, accounting for over 10,000 direct jobs. Most of these companies are located in Seville and Cadiz.

ESI Seville is one of only two universities in Spain that has an aerospace department.

495 509 596 645

798 847 824

1.416 1.540

1.982

0

500

1.000

1.500

2.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Aerospace industry revenue in Andalusia (million €)

23%

16%

15% 13%

11%

22%

Aerospace companies in Andalusia by activity

Tooling & Mechanical activities

Assembly

Services

General Aviation

Composites & Plastics

Other

6

140%

13% 26%

0%

50%

100%

150%

2007 2008 2009 2010

Aerospace industry revenue growth in Andalusia (cumulated since 2007)

Andalusia Catalonia Madrid Basque Country

3. ANDALUSIA HAS AVAILABLE & AFFORDABLE LABOUR FOR NEW INVESTMENTS

Source: INE

7

0,6

1,1

5

9,9

10,9

18,9

20,1

22,9

26

27,6

34,9

45,1

46,5

54,4

58,4

123,4

136,8

158,3

206,3

0 50 100 150 200

Melilla

Ceuta

La Rioja

Navarre

Cantabria

Balearic Islands

Extremadura

Murcia

Aragon

Asturias

Castile-La Mancha

Castile and León

Basque Country

Galicia

Canary Islands

Valencia

Madrid

Catalonia

Andalusia

Unemployed with higher education 2011 (thousands)

26.892

29.194

29.707

29.991

30.025

30.058

30.103

31.968

32.609

33.248

33.449

33.544

33.998

35.970

36.083

38.224

40.552

42.854

20000 25000 30000 35000 40000 45000

Extremadura

Canary Islands

La Rioja

Galicia

Valencia

Murcia

Castile-La Mancha

Andalusia

Balearic Islands

Spain (average)

Castile and León

Cantabria

Aragon

Asturias

Navarre

Catalonia

Basque Country

Madrid

Regional labour costs in the industrial sector (€/ year)

4. ANDALUSIA IS HOME TO MAJOR AIRCRAFT OEMs

Source: Aprean

•A400M

•A320

•A330/340

•A380

•A350

•A330 MRRT Boom

•B737

•B777

•B 787

•Bombardier CRJ700

•Embraer 145

•Embraer ERJ190

•EUROFIGHTER TYPHOON

•C212

•CN235

•C295

8

EADS/ Airbus jointly employ over 2,600 people at 4 plants in Seville and Cadiz, focusing on the assembly and machining of a number of airplane models.

In addition, other major OEMs subcontract a number of prestigious programs in Andalusia.

4. LARGE SUPPLIERS WITH STRONG PRESENCE IN ANDALUSIA

Source: Aprean

• Tier one aero structures supplier and a leader in engineering & composite materials manufacturing

• EADS CASA is one of the major stakeholders

• Contracts with Airbus and Embraer to manufacture passenger aircrafts

• Global aero structures company assuming the integral management of large aircraft sections

• Provides engineering services, composite and metallic parts, as well as repair and product support services

• Top level supplier to large aerospace OEMs

• Full value chain offering complete solutions in complex aero structures, engines and tooling

The 130 aerospace companies in Andalusia include a number of large suppliers that provide OEMs with manufactured components such as aero structures, composite and metallic parts as well as engineering and other services.

9

4. FLAGSHIP PROGRAMS CARRIED OUT IN ANDALUSIA

Airbus Military has been assembling the following parts at its facility in Seville since 2009:

•FAL including flight Test and Training Center

•Horizontal Stabilizer

•Vertical Stabilizer (selected parts)

•Elevator

•Engines Nacelles

•Flaps Fairings

The following parts are built by different companies in Seville and EADS Casa Cadiz:

•Right Hand Wing

•Slats (for the whole fleet)

•Wing Fairings

•Landing Gear doors

•Dass Tip Pod

•Main Wing Subassemblies

•ASTA training center, operations and maintenance

10

5. ANDALUSIA OFFERS THE RIGHT ENVIRONMENT FOR AEROSPACE R&D

Located in Seville, Aerópolis provides support and advanced services to the aviation and aerospace industry in Andalusia. It is an excellent site to develop R+D projects and to foster business cooperation within the aerospace industry.

The Advanced Technology Aerospace Centre of Andalusia is located at Aerópolis and specializes in aerospace technology testing and R&D in 3 areas: structures and materials; electronics, avionics and systems and propulsion (engines and fuel).

Located in Cadiz, TecnoBahía is focused on the new materials industry with particular attention to its application in the aviation, naval and automotive industries.

11

5. ANDALUSIA AT THE FOREFRONT OF THE UNMANNED AIRCRAFT SYSTEMS MARKET

Andalusia will have the first UAS Experimental Flight Centre in Spain and the third in Europe.

•Excellent climate and geographic conditions

•Reserved airspace (35x30 km)

•Main runway of 800 m (light UAVs)

UAS Centre of Excellence

Andalusia has been chosen by the Spanish Government as the preferred location for this project, which will be completed in 2012. •Training and simulation facilities

•190 hectares of land

•Control tower, offices and engineering hangar

•Main runway for heavy UAVs

12

6. INTERNATIONAL AEROSPACE TESTIMONIAL FOR ANDALUSIA

13

Airbus Military is responsible for the A400M programme, the A330 Multi Role Tanker Transport (MRTT) and further military derivatives based on Airbus civil aircraft. These, together with the smaller 'Light & Medium' C295, CN235 and C212, make Airbus Military the global leader in the market for military transport, tanker and surveillance aircraft capable of performing the most varied types of missions. Altogether, Airbus Military has sold more than 1,000 aircraft to some 130 military, civil and governmental customers. More than 800 of these aircraft have been delivered. Airbus is an EADS company.

“The aeronautic industry maintains growth and job creation within the environment of today’s international economic crisis. Seville and Andalusia have been and will be a reference for the consolidation and development of this strategic sector in Spain.”

Arturo de Vicente Political Affairs EADS Spain

Head Office Seville

“The regional government of Andalusia has been an important

collaborator in the process of internationalisation and

globalisation of our company. Today we are starting to reap the

rewards of investing in projects that seemed risky in the

beginning: the A400M now is a reality. The next challenge will be

the first delivery, in the end of 2012/ beginning of 2013(…)”

Airbus Military

6. RECENT PRESS COVERAGE OF ANDALUSIA’S AERONAUTIC INDUSTRY

14

6

7. INVESTMENT INCENTIVES

Andalusia offers industrial and R&D projects a variety of incentives, for example:

1. Incentive Program for the Promotion of Innovation and Business Development (2009-2013)

UP TO 50% OF ELIGIBLE INVESTMENT (depending on the company’s size), payable through direct incentives, subsidies, loans, etc.

ONLINE APPLICATION and response within two months

2. Jeremy Fund (Joint European Resources for Micro- to Medium-Sized Enterprises)

TOTAL OF €235 MILLION available in the form of risk capital, loans and guarantees

75% funded by the European Commission (ERDF) and 25% by the Andalusian government

Provides financial support to foreign companies who want to establish in Andalusia.

3. Technology Corporation of Andalusia (CTA) for R&D and Industry-Academia Cooperation

FINANCIAL AID CONSISTING OF A 25% GRANT and a 75% loan (0% interest/3 year grace period)

Has funded 235 R&D projects in Andalusia to date

4. Job Training Incentives from the Andalusian Ministry of Employment

TRAINING OR HIRING INCENTIVES (€3,000-€4,750) for hiring permanent or young workers

15

8. FREE AND CONFIDENTIAL SERVICES FOR INTERNATIONAL INVESTORS

Invest in Andalucía can provide you with the following services related to your potential investment:

• A DEDICATED RELATIONSHIP MANAGER, specializing in the aerospace sector;

• Objective and accurate ECONOMIC, INDUSTRY, AND MARKET INTELLIGENCE;

• Assistance with LOCATION AND SITE SELECTION;

• COORDINATION OF TAILORED VISITS to sites, companies, universities and potential partners;

• ADVICE ON IMPORTANT INVESTMENT ISSUES, such as available human resources, recruitment services, labour costs, and taxes;

• INTRODUCTIONS TO USEFUL CONTACTS, such as professional service providers, technical contractors, and materials/component suppliers;

• SUPPORT IN ACCESSING finance, funding, and technology partners;

• Dedicated service to ACCESS POTENTIAL INVESTMENT INCENTIVES; and

• ON-GOING SUPPORT SERVICES once you are established.

16