2013

Naval Industry

2

Portugal

aicep Portugal Global

Content

Portuguese Naval

Industry

PORTUGAL IS A BUSINESS OPPORTUNITY

Why choose

Portugal?

Strategic location

Portugal is the European nearest country to the U.S.

3-hour distance between Brazil and Russia.

Same time as UK and Ireland.

Why choose

Portugal?

Portugal 10,6

Iberian Market 51

European Market 494

Portuguese Speaking countries 220

Attractive Consumer Market

Million Inhabitants

Great and privilege economic relations

between Portugal and Brazil, Angola and

Mozambique.

Daily flights to major European cities.

Qualified Workforce

Flexible labour lawHigh-standard educationWide availabilityPartnerships with world-class US institutions

71,7%

42% At least 1 language

23% At least 2 languages

6% At least 3 languages

43,6

Working Days Lost

(per 1.000 employees – EIRO, 2005-

2009)

11,3

Portugal has a highly skilled and educated

workforce. Portugal ranks on Top within the

EU countries in number of PhDs per 1,000

inhabitants.

40% of students in tertiary education are

enrolled in engineering, sciences and health.

The increase rate in the last 3 years is about

30%.

Portuguese are known for commitment to

work which places us below the EU average

regarding working days lost per year.

Language skills: English, French and Spanish

are the most spoken languages. English is

universally taught from 1st grade.

Why choose

Portugal?

Competitive Costs

Portugal is still cost competitive according to international recognized

sources. There was a decrease of -1,2% in hourly labour costs in 2012

Q1 (Euro 27 rose by +2,0%).

In terms of real estate – industrial space - and within 53 countries/cities

worldwide, Portugal/Lisbon is the 8th less expensive location.

Portugal also has one of the lowest monthly minimum wage in Europe

(485€).

11,4 12,4

Electricity (Prices for industries in

€/100kWh – Eurostat 2012

S1)

3,4 4,0

Natural Gas (Prices for industries, in €/GJ –

Eurostat 2012 S1)

87 100

Cost of Living (HFC 2011 - Eurostat)

+1,5

Labour Cost Index (Year-on-year rate of change –

Eurostat 2012 Q1)

-1,2

Why choose

Portugal?

1,5

Technological Infrastructures

Why choose

Portugal?

Telecommunications have been

a major priority in Portugal. The

country has now 95% coverage

of broadband infrastructures.

The net increase in the

broadband penetration growth for

Portugal is above the OECD

average (Dec 2010).

The percentage of fiber connections in total

broadband is already 6% for Portugal,

ahead of countries such as Netherlands,

Finland, France, Spain, Italy, Poland,

Austria Germany or Belgium.

The Internet is also well developed.

Portugal is a United Nations case study in

terms of e-Government and its availability

of public services on-line.

0,38 0,72

Telecom Prices Euro/10 min call

Eurostat 2010

FULLY DIGITALIZED

Office Space available

Portugal offers a dynamic real estate market. High quality

space, well designed and energy efficiency oriented has

boomed and rent prices are competitive comparing the other

European countries.

Why choose

Portugal?

Occupancy cost, in €/sqm/year, C&W2011

Industrial space

123,5

52,2 79,2

Occupancy cost, in €/sqm/year, C&W2013

Office space

915

290 439

Portugal is ahead of

countries such as France

and Spain in terms o

cost. The figures are

shown for Lisbon. If we

considered Porto area,

prices can lower 25%.

Business friendly environment

Why choose

Portugal?

MULTI-CULTURAL

Portugal is very open to foreign cultures:

the availability of international schools,

the safety record and quality of life

attract expatriates.

As a result Portugal is ranked #2 in the

Migrant Integration Policy Index 2011.

“Portugal is unique in attracting young

graduates and executives.” Carlos

Brazão, Cisco Portugal

EASE OF DOING BUSINESS

• Major public services are on-line;

• Portugal is considered by the United

Nations, a case study in e-

Government;

• Average time to set up a firm is less

than 1-hour

They chose us

Why choose

Portugal?

Our decision is a result of the recognition of the hospitality and

the commitment of the Portuguese Government, of the multilingual skills of the

local population as well as its professionalism and ability, and proven success

in innovation areas.”

Chris Dedicoat, Senior Vice-President for Europe, Cisco

“

”

One of our main strategic lines was always to shorten

distances with the academic world and to bet in strong innovation,

investigation and development in Portugal thus taking advantage of the

Portuguese engineer’s excellence.

João Picoto, Chairman of Nokia Siemens Networks

Portugal

“

”

SERVICES MANUFACTURING

The industry in Portugal

R&D

Main institutions

Government support

Portuguese Naval Industry

Overview

12

Portuguese Naval Industry Overview

The naval construction and repair offer competitive advantages due to its privileged location::

Portugal is located on the meeting point of the major maritime international routs.

The weather conditions are unique for the

practice of naval activities.

9 Sea Ports in

Portugal, all

with

international

traffic

The Lisbon Port

represents 34% of all

cargo shipped in

Portugal, followed by

Leixões (32%) and Sines

(28%); they are also

served by rail lines;

The opening in

2014 of the

Panama Canal

allowing “Post

Panamax”

ships.

Source: AIN – Associação das Indústrias Navais

CESA – Community European of Shipyards’ Association

Portuguese Naval Industry The Industry in Portugal

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GT

New orders Orderbook Completions

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New orders Orderbook Completions

•Shipbuilding and ship repair industry in Portugal has been following the world and the European descend trend,

but showed a recovery from 2010 and an increase in completions from 2011.

•The SME have showed a better response to the world crisis.

•This area has a strong exporting component, contributing for the reduction of the deficit.

World Commercial Shipbuilding Activity Portuguese Commercial Shipbuilding Activity

Source: AIN – Associação das Indústrias Navais

Portuguese Naval Industry The Industry in Portugal

Type of vessels built in domestic yards, between 2008 and 2011, changed a lot. Between 2008 and 2011 were

mainly built ferry-boats, containers, fishing vessels and recreational craft and sports.

Ferry-boats 15%

Contai ners 30%

Fishing vessels

7%

Factory vessels

for fishery 1%

Other no cargo

vessels 4%

Conver sion of ships,

floating structures

15%

Fishing ships and floating

plataforms

stuctures 3%

Recreational craft

and sports 25%

2008 Fishing vessels

8% Factory vessels

for fishery 3%

Other no cargo

vessels 3%

Conver sion of ships,

floating structures

23%

Recrea tional craft and sports

63%

2011

2009 2010 2011

14

20 22

Mill

ion e

uro

s

Recreational crafts and sports

produced in Portuguese shipyards

Type of vessels produced in Portuguese shipyards

Source: AIN – Associação das Indústrias Navais

Portuguese Naval Industry The Industry in Portugal

Portuguese Sector main figures 2011:

• Number of companies: 361

• Employment: 3.476

• Repair and

maintenance:1.660

• Shipbuilding: 1.816

• GVA: € 76 Millions;

• Turnover : € 220 Millions

• Main areas: metallic constructions

metallic ship constructions, repair

and maintenance

Portugal will always have a significant market share on ship maintenance, dealing with vessels trading either

cross-Atlantic or within the EU. For vessels over 30.000 dwt, Portugal (Lisnave) is the European leading

country in terms of vessels dry docked.

16 ARSENAL DO

ALFEITE

Portuguese Naval Industry The Industry in Portugal (North/ Center)

ESTALEIROS NAVAIS DE

VIANA DO CASTELO

SHIPBUILDING | REPAIR

BRUNSWICK MARINE

EMEA OPERATIONS

SHIPBUILDING

REPAIR

ESTALEIROS NAVAIS

IRMÃOS VIANA

UNIÃO CONSTRUTORA

NAVAL

SHIPBUILDING | REPAIR

REPAIR

SAMUEL & FILHOS

NAVALRIA

SHIPBUILDING | REPAIR

ATLANTICEAGLE

SHIPBUILDING

SHIPBUILDING | REPAIR SHIPBUILDING | REPAIR

ESTALEIROS NAVAIS

DE PENICHE

17

NAVALRIA

ATLANTICEAGLE

HIPBUILDING

LISNAVE

ARSENAL DO

ALFEITE

JAIME FERREIRA MENAVAL

Portuguese Naval Industry The Industry in Portugal (South)

CECÍLIO E CARLOS

SANFINS NAVAL ROCHA

REPAIR

ARSENAL DO

ALFEITE

SHIPBUILDING | REPAIR

JAIME FERREIRA

NAVALGRUPO

SHIPBUILDING | REPAIR

SOPROMAR PORTINOVE

REPAIR

LISNAVE

REPAIR

MPG – MANUEL PIRES

GUERREIRO

SHIPBUILDING | REPAIR

CONAFI

NAUTIBER –

ESTALEIROS NAVAIS

DO GUADIANA

SHIPBUILDING

18

Portuguese Naval Industry The Industry in Portugal

Source: AICEP Market research

3 .7 0 0 - 1 .1 0 0 € 2 .4 5 0 - 8 5 0 € 2 .1 0 0 - 8 5 0 € 2 .0 0 0 - 1 .1 0 0 € 1 .3 0 0 - 5 0 0 € 1 .7 0 0 - 5 0 0 € 1 .5 0 0 - 1 .1 0 0 € 1 .2 0 0 - 5 0 0 €

A d m in is tra tiv e

A s s is ta n t

In d u s tr ia l S u p p o rt

T e c h n ic ia n

In d u s tr ia l S u p p o rt

A s s is ta n tN a v a l E n g in e e r a n d A rc h ite c t

S p e c ia lize d

T e c h n ic ia nM a s te r N a v a l W o rk e r

S h ip M a in te n a n c e

T e c h n ic ia n

Wage structure on Portuguese shipyards.

Joana Vasconcelos new work of art - transformation of an old boat that will be on show in

Venice, is being produced at Navaltagus, a ship building and repair company .

Navalria start producing various types of modern vessels including, off-shore platforms

for wind towers and wave energy devices.

LISNAVE, the largest ship repair company in Europe, developed a non conventional

docking system (Hydrolift), which is unique in the world - the most advanced system in

Europe for ships under repair. Lisnave Shipyard is iideally located for vessels trading or

passing through Atlantic and Mediterranean waters and offers a global range of services

for vessels of all sizes, include off-shore platforms for wind towers of renewable

energies.

Portuguese Naval Industry Highlights

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Together with the Naval industry, in Portugal also the Naval Auxiliary Industry was developed. It includes the

services, goods, and equipment suppliers for the naval construction and repair industry. Below some success

cases: Company with a strong presence in the Defense sector, which operates on the design and

manufacturing of electronic, communications systems. Its main customers includes: Spanish, Dutch,

British, Australian and Brazilian Navy, European armies, port authorities and naval companies.

Tactical Communications Naval communications Surveillance

www.eid.pt

Company specialized in integrated software solutions and control, command, intelligence and

navigation systems

Navigation systems Software SICALN Cash Project

www.edisoft.pt

Arsenal do Alfeite, S.A. is dedicated mainly to the fulfilment of the repairing and

maintenance activities needs of Portuguese Navy’s naval force, providing its services also

to other OTAN members, naval forces and commercial entities. Arsenal do Alfeite, S.A.

employs the most advantage technology available in the fields of electronics, optronics,

armament, mechanics and electrotechnical engineering.

Portuguese Naval Industry Highlights

21

The European Economic and Social Commitee selected the Naval Sector is

strategically importance to economic development and improve the

environmentally-friendly and unsafe modernisation the european Shipbuilding.

The European Maritime Safety Agency is one of the EU's decentralised agencies.

Based in Lisbon, the Agency provides technical assistance and support to the

European Commission and Member States in the development and implementation of

EU legislation on maritime safety, pollution by ships and maritime security. It has also

been given operational tasks in the field of oil pollution response, vessel monitoring

and in long range identification and tracking of vessels.

Portuguese Naval Industry Highlights

22

Portugal has important R&D institutions, which develop solutions according to the companies needs.

The Instituto de Soldadura e

Qualidade provides training, auditing,

certification and R & D laboratory.

The areas in which it operates are:

metrology, temperature and humidity.

Acoustics, optics, topography, force,

pressure and mass.

Provides energy efficiency services to

vessels, inspection and metrology,

marine engineering, R & D and

training in maintenance, energy and

troubleshooting.

The Centec is the Center of Marine

Technology and Engineering at

Instituto Superior Técnico.

Investigates the areas of marine

environment, hydrodynamics, marine

structures and naval security. It has

80 members including 32 PhDs.

The Fordesi provides consultancy

and R & D in the maritime and port

areas: logintelligence, systems

integration and development as.

The Parque Tecnológico de Mutela/

Almada is a center of business

incubation and training devoted to

areas of environment, energy,

materials, industrial automation and

maintenance .

Portuguese Naval Industry R&D

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Cluster knowledge and the economy of the sea has as its objective the development of cooperative relations between the scientific institutions, companies and associated institutions of different sectors and activities whose functional area of final demand is the Sea

It includes repair and naval construction

The cluster has been recognized as Collective Efficiency Strategy, which falls into one of the types of systems to encourage investment.

MAIN PROJECTS

ECOMARE: Oceanographic

Laboratory and animal recovery

center.

Parque de Ciência e Tecnologia do

Mar. Localização: Porto Consupesca: Reduction of fuel

in the inshore and trawl fleet.

Leixões Sea Port cruise ships

terminal

Portuguese Naval Industry Main institutions

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The Portuguese Naval Industries Association's mission is to study, monitor and evaluate the sector, providing a range of services to its members .

Localização: Lisboa

Contactos: Telefone: +351 21 781 8770; E-mail: ain@ain.pt Internet: www.ain.pt

Main institutions

Associação dos Portos de Portugal

Internet: www.portosdeportugal.pt

IPTM – Instituto Portuário e dos Transportes Marítimos, I.P.. Its duties are regulate, oversee and perform the task of coordination and planning of the

maritime-port sector and supervise and regulate activities in this sector .

Internet: www.imarpor.pt

The Portuguese Navy has as its main functions the military defense and support for foreign policy, security and state authority and economic, scientific and cultural. Internet: www.marinha.pt

Portuguese Naval Industry

aicep Portugal Global

26

We are a Business Development Agency, focused on the

development of a competitive business environment that

contributes to the international expansion of the Portuguese

Economy. Who are we?

Increasing the country’s competitiveness, promoting large

private investment and fostering the internationalization of

Portuguese companies. Mission

Values

Focus on clients. We serve our clients in accordance to their

requirements through various solutions and long-term relationships.

Selectiveness. We direct our activity towards projects and markets

that make a better contribution to company competitiveness and the

sustainability of the Portuguese economy.

Excellence. We seek to exceed expectations by means of a rigorous

approach, effectiveness, enthusiasm and a willingness to innovate.

aicep Portugal Global

27

About Us

aicep Portugal Global: how can we help you?

1

Pre- Investment

2

Incentives

Negotiation

3

Settling In

4

After Care

Promoting a direct negotiation

with companies, through which a

tailored approach to incentives

may be applied in order to define

a global package that fully

satisfies the investor's needs

Single point of contact

in all phases: pre-

investment, incentives

negotiation, settling in

and after care

Government

business entity,

flexible, free of

charges and

streamlined services

Dynamic

approach

focused on the

client or investor

www.portugalglobal.pt