Invest in Wallonia / Belgium How to optimise your presence in the heart of Europe

WALLONIA - GENERAL INFORMATION AREA 16,844.3 Km² (55,2% of Belgian territory) GDP € 88 billion * (23% of Belgian GDP) * in 2012 LOCATION Neighbouring countries : Netherlands Germany France POPULATION 3,576,325 inhab. (32,1% of Belgian population) INFRASTRUCTURES: Waterways: 741km Rail network: 1,605 km Roads : 81,207 km Airports: - Brussels South Charleroi Airport - Liege Airport

10 GOOD REASONS TO INVEST IN WALLONIA-BELGIUM SENSE OF SHARING Fiscally attractive Numerous investment incentives A positive business environment ACCESSIBILITY Proximity to Brussels, capital of EU 500 million consumers within reach Availability of land and buildings TECHNICAL KNOW-HOW Highly skilled available workforce Industrial sectors, vectors of competitiveness QUALITY OF LIFE Exceptional quality of life Efficiency of local government authorities

ACCESSIBILITY Proximity to Brussels, capital of EU 500 million consumers within reach Availability of land and buildings Train station of Liège-Guillemins, designed by Santiago Calatrava

PROXIMITY TO BRUSSELS, CAPITAL OF EU Capital of Belgium; Headquarters of NATO; 6th in the list of the leading cities in which to do business; 1,300 international corporations; 2nd largest concentration of journalists in the world; 3,800 diplomats and 159 embassies; 2nd most chosen conference centre in the world

WALLONIA, AT THE HEART OF EUROPE Trucking time Inhabitants GDP - million € 1 hour 4,700,000 66,931 2 hours 17,800,000 277,641 3 hours 42,300,000 604,860 4 hours 58,800,000 954,390

PARTICULARLY DENSE ROAD AND RAILWAY NETWORKS Source : IMD World Competitiveness Yearbook 2016

2 WORLD CONNECTED AIRPORTS "Aeropole" of 500 acres; Specialised in passengers transport; Second most punctual airport in the world base for conducting tests by surrounding aeronautical industries. 1st cargo hub in Belgium 8th cargo hub in Europe 24th cargo hub Worldwide European hub for TNT Source : http://www.charleroi-airport.com/

4 FLUVIAL PORTS INCLUDING THE 3RD LARGEST EUROPEAN INLAND PORT Central position within the Escaut-Meuse-Rhine axis and canals linking the rivers Source : Direction de la Promotion des Voies Navigables et de l’Intermodalité (DPVNI)

MORE THAN 265 BUSINESS PARKS 54 50 8 34 21 57 23 18 7,100 companies 159,000 jobs Number of business parks managed by the economic development intercommunal agencies

15 KEY LOGISTICS ZONES Ideally located logistic zones Connexions to the major ports and principal consumer centres. Source : Logistics in Wallonia

7 SCIENCE AND TECHNOLOGY PARKS working closely together to promote their "know-how" in the hosting of high-tech companies. supporting the process of innovation and the economic development of Wallonia.

BELGIUM OFFERS ONE OF THE LOWEST REAL ESTATE COSTS IN EUROPE Prime office rents - Location €/sq m/year Prime industrial rents - Location €/sq m/year Source : Cushman & Wakefield – Selected Europe Prime Rents 2016 Q4

LAND PRICES INDICATION (€/SQ.M.) Sale price (m²) Hainaut Brabant Wallon Liège Namur Luxembourg 23 - 70 75 - 125 45 - 90 20 - 40 source : Research, August 2015

SENSE OF SHARING Numerous investment incentives Fiscally attractive A positive business environment

INVESTMENTS INCENTIVES : UP TO 25 % Calculated, as a percentage, on the purchase of : building new equipment intangible investments (patents, licenses, technical expertise whether patented or not), road vehicles exceeding 3.5 tons (except in the transport sector)

RESEARCH & DEVELOPMENT SUPPORT SUPPORT FROM THE WALLONIA REGION Subsidy for Basic Industrial Research : 50% (up to 70% for SME’s) Advance loan for Applied Research : 50% (up to 70% for SME’s) INNOVATIVE FISCAL MEASURES Patent Income Deduction Investment deduction for investments in R&D centres R&D Tax Credit Partial exemption salary withholding tax for researchers Tax allowance for additional employee Innovation premium Expat status in R&D Tax exoneration for regional grants Accelerated depreciation of R&D intangibles Deductible gifts

EMPLOYMENT SUPPORT This aid covers two aspects: Tax benefits and grants that help to reduce wage costs : recruitment grants, reductions in social security costs tax exemptions Support measures encouraging training: advantageous training plans or programs, financial aid for training staff and taking on people in search of employment SUPPORT FROM THE FOREM (regional public service for employment and training) : Management of public systems Recruitment Guidance Social Guidance for Companies

TAX SYSTEM AND INCENTIVES Ruling Notional interest deduction Unique tax features for R & D Expat status Dividend withholding tax exemption VAT fiscal unity as from April 1, 2007; bonded warehouses new tax attractive instrument for European pension funds; tax shelter for audio-visual sector (films, series…); etc.,…

FISCALLY ATTRACTIVE FOR FOREIGN INVESTMENTS Source : ZEW - Project for the EU Commission - FINAL REPORT 2015

A POSITIVE ENVIRONMENT FOR EXPORT AND FOREIGN INVESTMENTS 15 first markets of the Wallonia export (%) Export trends (1996-2016) Average growth rate : Germany (+6,0%) Netherlands (+5,7%) Wallonia (+5,3%) Flanders (+5,2%) UE15 (+5,0%) France (+3,9%) Source: Wallonia Export and Investment Agency

OVERVIEW OF TOTAL FOREIGN INVESTMENTS THAT RECEIVED REGIONAL SERVICES 1.442 projects completed Google - Mons (Sources: AWEX results and DGO6)

OVERVIEW OF TOTAL FOREIGN INVESTMENTS THAT RECEIVED REGIONAL SERVICES 11.933.098.148 € invested 29.192 jobs created (Sources: AWEX results and DGO6)

TECHNICAL KNOW-HOW Industrial sectors, vectors of competitiveness Highly skilled available workforce Focal XXL Amos

INDUSTRIAL SECTORS, VECTORS OF COMPETITIVENESS Within the framework of the “Marshall Plan”, centers of competitiveness have been developed : Aeronautics & Space industry Agro-food Engineering & Advanced materials Life sciences Transport & logistics Environmental technologies

LIFE SCIENCES www.biowin.org Biowin’s objectives are www.biowin.org to develop and market new therapeutic and diagnostic products in three priority fields: cancer, inflammation and brain diseases. to develop new biomarkers, new predictive models and new drug- delivery systems, to identify new molecules with potential therapeutic uses. www.biowin.org GSK www.biowin.org

TRANSPORT & LOGISTICS Logistics in Wallonia has identified three development axes: Promoting logistics externally, and managing the setting up of European distribution centers; Developing and disseminating knowledge through training; Cross-sector networking involving all the Wallonia bodies operating in the fields of transport and logistics. www.logisticsinwallonia.be

ENGINEERING & ADVANCED MATERIAL MecaTech cluster projects are grouped along four strategic axes: future materials and surfaces, specifically the development of nanotechnologies; global forming technologies; microtechnologies and mechatronics; intelligent (reliable) maintenance. www.polemecatech.be SONACA - Charleroi

AERONAUTICS AND SPACE The strategic focus of the Wallonia air and space industry lies on three axes: More composites: replace metallic materials with composites that are lighter, last longer and have less impact on the environment; More intelligence: to meet market requirements more effectively; More applications and services: provide solutions to the problems of tomorrow. www.skywin.be SABCA - Charleroi

AGRO-FOOD Three strategic directions have been defined: to develop a culture of innovation, with products that add more value to boost profitability by fostering integration and sustainability to increase the production capacity and size of businesses by positioning them in growing markets and by expanding their capacities and sales skills. www.wagralim.be LUTOSA products

ENVIRONMENTAL TECHNOLOGIES Priority areas : sustainable chemistry and sustainable materials (including sustainable building materials) energy field (by bolstering the existing cluster) waste in its widest sense (in particular CO2 capture and storage) www.greenwin.be

OVERALL PRODUCTIVITY LABOUR PRODUCTIVITY Date OVERALL PRODUCTIVITY LABOUR PRODUCTIVITY PPS : Purchasing Power Standards Source : OECD 2017

EDUCATION Source : IMD World Competitiveness Yearbook 2016

QUALITY OF LIFE Exceptional quality of life Efficiency of local government authorities Castle of la Hulpe

BELGIUM HAS A HIGH QUALITY OF LIFE Source : IMD World Competitiveness Yearbook 2016

A QUALITY EDUCATIONAL SYSTEM 9 academies 9 university centres 130 higher institutes of education 300 research centres 7 sciences parks

HEALTH INFRASTRUCTURES Source : IMD World Competitiveness Yearbook 2016

AN EXCEPTIONAL ART OF LIVING Wallonia has perfected the art of living and therefore enjoys a very high quality of life: appreciation of Wallonia history, numerous cultural aspects, emphasis on hospitality, high density of fine restaurants

EFFICIENCY OF LOCAL GOVERNMENT AUTHORITIES The Wallonia government is committed to making Wallonia attractive to corporations and foreign investments through the high quality of direct service available; simplified administration procedures; very short decision processes; simplification of the procedure for setting up a company. Source : IMD World Competitiveness Yearbook 2016

EFFICIENCY OF LOCAL GOVERNMENT AUTHORITIES The Wallonia Export-Investment Agency provides information, advice, contacts and solutions to foreign companies considering expanding business in Southern Belgium Clients are treated on a confidentiality basis Services are free of charge Working in close connections with the Belgian Embassies www.investinwallonia.be

Wallonia Export & Investment Agency Namur Office Park Avenue des Dessus de Lives, 6 B-5101 Loyers (Namur) – BELGIUM (T) +32 81 33 28 50 (F) +32 81 33 28 69 welcome@investinwallonia.be www.investinwallonia.be