A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

European Union 27European Union 27

PORTUGALPORTUGAL

PORTUGALPORTUGAL

ECONOMY OVERVIEWECONOMY OVERVIEW

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

Inflation rateInflation rate 2.4%

excl. energy 2.3%

Unemployment Rate Unemployment Rate 8%

Public DeficitPublic Deficit 2.6% of GDP

(% of GDP)(% of GDP)

ExportsExports 33%

ImportsImports 40%

Stock InvestmentStock Investment

Inward 44%

Outward 28%

Main features - 2007Main features - 2007A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SA

C O N F E D E R A Ç Ã O E M P R E SA R I A L

Services75,5%

Construction 6,4%

Agriculture2,7% Industry

15,5%

Value Added by activity

GDP 162 919 million €

GDP per head € 15 363

Population 10.6 millions

Employment 5.2 millions

Employment Rate 67.8%

GROSS DOMESTIC PRODUCTGROSS DOMESTIC PRODUCTReal growth rateReal growth rate

Source: Eurostat

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

-2,0

0,0

2,0

4,0

6,0

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

Portugal

EU 15

Source: INE

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A LMain Sectors - 2007 Main Sectors - 2007

EXPORTS AND IMPORTS STRUTUREEXPORTS AND IMPORTS STRUTURE

0% 5% 10% 15% 20%

Footwear

Wood and Cork

Mineral fuels

Paper

Textiles

Food industries

Chemical products

Plastic and Rubber

Clothing

Base metals

Transport Equipment

Machinery

Exports

Imports

(% total)

Automotive

Biotechnology

Forestry

Moulds

Technicalfabrics

Source: Balance of Payments, Banco de Portugal

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A LEXPORTS OF SERVICES EXPORTS OF SERVICES

... leading niche provider... leading niche provider

3,8

10,0

0,0

2,0

4,0

6,0

8,0

10,0

12,0

1996 2007

(%)

(% GDP)

InformationTechnology

Engineering

CommunicationTechnology

Tourism

Buildingfixtures

RENEWABLE ENERGYRENEWABLE ENERGYA SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SA

C O N F E D E R A Ç Ã O E M P R E SA R I A L

Share of renewable energy ingross electric consumption - 2006

1st Austria 53.4%2nd Sweden 46.8%3rd Portugal 30.6%EU 15 14.9%

windwindhydrohydro

solarsolar

wavewave

biomassbiomass

4th world wind energy producer

PORTUGALPORTUGAL

MAIN STRENGHTSMAIN STRENGHTS

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

THE CAPACITY OF CHANGINGTHE CAPACITY OF CHANGING

e-Government availability

e-Government Sophistication

Technological Plan fostering company innovation and broadband Investment

Administrative Simplification – Company on time

ATM - 12 000 equipments 30 services provided

ID Centers of several multinational companies

Portugal Spain Ireland EU 27

70% 50%

90%

59%

Portugal Spain Ireland EU 27

82% 78%

90%

77%

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

A PEACEFUL COUNTRY TO INVESTA PEACEFUL COUNTRY TO INVEST

Source: Global Peace Index 2008 Economist Intelligence Unit Nations considered the most peaceful have lower index scores

• Portugal is the 7th most peacefulcountry in the World

Committed to the European Growth and Stability Pact

Quality of life

Diversity of qualified, multilingual workforce

Suppliers capacity for big corporations

CountryRank Score

Japan

Iceland

Denmark

Norway

New Zeland

Ireland

Portugal

1

2

3

4

5

6

7

1.176

1.333

1.343

1.350

1.358

1.410

1.412

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

A GEOSTRATEGIC LOCATIONA GEOSTRATEGIC LOCATION

• New stage on Globalisation - late 90’s• Main investor in Brazil, Angola…

Source: Bank of Portugal

Portuguese Speaking Countries

Access to 230 Millions Consumers

Logistic Platforms Network and privileged access

Most modern telecom networks

Strong investment in all Portuguese speaking countries

Angola 696,8Brazil 1 210,1Cape Verde 81,8Mozambique 83,2

(Millions € 2004 to 2006)

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

Portugal – UkrainePortugal – Ukraine

Economic PartnersEconomic Partners

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

(Mil

lio

n €

)

Source: Eurostat

PORTUGAL - UKRAINEPORTUGAL - UKRAINE EXPORTS AND IMPORTSEXPORTS AND IMPORTS

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

IMPORT

EXPORT

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

0,1% of total

0,1% of total

A distant partner – weak and unstable trade A distant partner – weak and unstable trade

PORTUGAL – UKRAINEPORTUGAL – UKRAINE

EXPORTS AND IMPORTS - MAIN PRODUCTS - 2007EXPORTS AND IMPORTS - MAIN PRODUCTS - 2007

(% of total)

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L

Source: Eurostat

IMPORTSIMPORTS EXPORTSEXPORTS

… … a highly concentrated trade a highly concentrated trade

43,8

13,2

1,41,2 1,0 Oil seeds and

oleaginous fruits

Animal or vegetablefats and oils

Iron and steel

Salt; Sulphur; Earthsand Stone

Fertilisers

29,5

17,7

5,6

7,3

7,3

Cork

Machinery andmechanical appliances

Footwear

Vehicles

Ceramic products

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A LTRADE AND INVESTMENTTRADE AND INVESTMENT

• low starting pointlow starting point

• recent positive evolutionrecent positive evolution

POTENTIAL IS HIGHPOTENTIAL IS HIGH

WE MUST SEIZE BUSINESS WE MUST SEIZE BUSINESS OPPORTUNITIES OPPORTUNITIES

.... BILATERALLY AND WITH THIRD .... BILATERALLY AND WITH THIRD COUNTRIESCOUNTRIES

PORTUGAL and UKRAINE PORTUGAL and UKRAINE FULL PLAYERS IN THE GLOBAL FULL PLAYERS IN THE GLOBAL ECONOMYECONOMY

A SSO C I A Ç Ã O I N D U ST R I A L P O R T U G U E SAC O N F E D E R A Ç Ã O E M P R E SA R I A L