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Doing Business in Spain. Montreal, 22 nd May 2008. Invest in Spain: Economy, Business and Advantages for Canadian companies. May, 2008. Marian Scheifler Phd. Chief Operations Manager. Political Structure. Spain in Figures (I-II). Canada-Spain: Some things we share.

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slide1

Doing Business in Spain

Montreal, 22nd May 2008

slide2

Invest in Spain: Economy, Business and Advantages for Canadian companies

May, 2008

Marian Scheifler Phd.

Chief Operations Manager

slide3

Political Structure.

  • Spain in Figures (I-II).
  • Canada-Spain: Some things we share.
  • Main Agreements Spain-Canada.
  • Main Reasons to Invest in Spain (I-III).
  • About INTERES.
2 spain in figures ii
2. SPAIN IN FIGURES (II)
  • The world’s 8th largest economy (market exchange rate); 11th (purchasing power parity).
  • (IMF-2008)
  • The 3rd largest investor in the world and the 2nd largest in Latin America.
  • (World Investment Report 2007 (UNCTAD)
  • 3. The 8th largest FDI stock worldwide (6th in the EU).
  • (World Investment Report 2007 (UNCTAD)
  • 4. The 10th best place to live and the preferred work destination for Europeans.
  • Worldwide Quality-of-life Index, Economist Intelligence Unit
  • 5. The world’s 2nd tourist destination.
  • (Tourism Organization (WTO))
3 canada spain some things we share
3. CANADA – SPAIN: SOME THINGS WE SHARE
  • Multilingual and multicultural societies.
  • Highly decentralized administrations: important role played by Provinces and Autonomous Communities.
  • Economic performance.
  • Great potential to strengthen trade and investment ties: current trade and investment flows belie the similarities in economic performance and complementarities in our economies.
4 main agreements spain canada
4. MAIN AGREEMENTS SPAIN - CANADA
  • S&T: (Science and Technology)
    • Spain’s R&D Plan for 2008-2011 identifies Canada as one of the three non-EU strategic countries for cooperation.
    • Canadeka: Bilateral program for technological cooperaton, CDTI –NRC. Support to joint projects of Spanish-Canadian companies.
    • CSIC-NRC: Development of research and innovation projects.
    • Genoma España – Genome Canada: Joint research projects.
  • CESCE-EDC: Reinsurance agreement for joint operations of Canadian and Spanish companies.
  • Double taxation: Agreement to avoid double taxation on income and capital.
5 main reasons to invest in spain i
5. MAIN REASONS TO INVEST IN SPAIN (I)
  • Geostrategic location:
    • Privileged position for southern Europe's key markets, Latin America and North Africa.
  • Potential access to over 1.2 billion consumers:
    • 45 million consumers in Spain.
    • 443 million consumers in Europe.
    • Entry point for non-EU Mediterranean countries with 264 million consumers. (privileged relations with Morocco and Algeria).
    • Hub for South and Central America, with 560 million consumers.
    • Financial protocols with North Africa and Latin America.
5 main reasons to invest in spain i11
5. MAIN REASONS TO INVEST IN SPAIN (I)
  • Ultra Modern Transport Infrastructure
    • 47 airports.
    • 53 ports on both the Atlantic and the Mediterranean coasts.
    • 3rd largest EU highway network.
    • Ambitious plans for high speed trains (Spain will be the world leader with 2,230 km in 2010).
    • State-of-the-Art metro system in major cities.
economic criteria competitive operating costs

5. MAIN REASONS TO INVEST IN SPAIN (II)

Economic criteria: Competitive operating costs

Source: Eurostat 2007

Source: Eurostat 2008

Source: Cost of Living Survey 2007, Mercer Human Research Consulting

Source: Eurostat 2008

slide13

5. MAIN REASONS TO INVEST IN SPAIN (III)

Fiscal incentives framework map

slide14

6. About INTERES

  • INTERES Invest in Spain is the leading government organization that supports foreign companies seeking toset up or expandtheir business in Spain.
  • We provide comprehensive, efficient and confidential consultation at no cost during all stages of the investment process.
  • THE ONE-STOP SHOP FOR INVESTORS IN SPAIN.
slide15

Investor Services

Pre-Installation

Installation

Operation

Expansion

Relocation

Benchmarking

& Attraction

Support to new invertors

strengthening

of loyalty

Growth

Retention

slide18

Doing Business in Spain

Montreal, 22nd May 2008

slide19

What makesSpain a winning location for the Life Sciences & Biotech industry?

Ana Arias

Biotech & Life Sciences Investor Services Manager

slide20

INDEX

  • Why Spain?
  • Why biotechnology?
  • Why you can bet on Spanish biotech
  • A piece of history
  • Business opportunities
slide21

Why Spain?

  • Highly qualified and competitive human resources
  • Quality and standard of living
  • Geo-strategic location
  • Cultural and educational levels
  • Weather
  • Natural resources
  • Logistics...

Spain has solid scientific and technological

capabilities that have enabled a competitive

bio industry to emerge

slide22

Why Biotechnology?

  • Employment: around 80,000 people
  • Over 500 enterprises involved in biotech activities
  • Turnover: over €19,000 million and investment of over €200 million in research and development (R&D).
  • Annual growth of around 30% in total revenue.

………making Spain the most

dynamic European country in

this area after Ireland.

Source: ASEBIO – Spanish Association of Bioenterprises (2004)

slide23

Why Biotechnology? (cont.)

  • Bio-economy heads Spain’s strategic agenda.
  • The Spanish pharmaceutical market is the fifth largest in the EU-15 and the seventh in the world.
  • Favourable financial environment: increase in the volume of venture capital operations in biotechnology.
  • New venture capital funds specialized in biotechnology and national networks of business angels are being created
slide24

Why you can bet on Spanish biotech

  • Solid Science
    • -Good scientific output
      • Groups and Centers of Excellence
    • -R&D Integrated System
      • Efficient WorkFlow
      • Excellent conditions for Translational Research
      • Modern Science Parks and state of the art facilities
      • Good partnership opportunities
      • -“Value for Science”
      • Every euro in the lab is put to good use
  • Great potential

-Huge body of knowledge yet to be exploited

    • -Human Capital, very well trained
slide25

Why you can bet on Spanishbiotech(cont.)

  • Emerging bio-economy
  • -Increasing support from Governments for R&D and
  • bio-enterprise creation
  • -Competition among local Governments for talent and capital
  • -Good balance between being competitive on cost and competitive
  • in differentiation
  • Good personal attitudes
  • -Creativity
  • -Sense of community and focus on colective objectives and challenges
  • -Positive spirit and commitment
slide26

Why you can bet on Spanish biotech(cont.)

  • Solid Science: Scientific and Technological Facilities and
  • Capabilities
  • The Genomics, Proteomics and Bioinformatics platformsboost the
  • national participation in biotechnological advances:
  • -National DNA Bank
  • -Spanish National Genotyping Centre
  • -National Proteomics Institute ProteoRed
  • -National Bioinformatics Institute INB
  • A new framework for co-operative biomedical research is being created:
  • -The Biomedical Research Thematic Networks (RETICs)
  • -The Biomedical Research Centers Network (CIBER)
slide27

6%

5%

18%

26%

7%

18%

<5%

5-15%

15-25%

>25%

Why you can bet on Spanish biotech (cont.)

  • Solid Science:Principal Bio-clusters

Geographic distribution of Spanish biotech companies

  • Catalonia and Madrid, followed by the Valencia Region, Andalusia, Basque Country and Galicia have the highest concentration of biotech companies.
  • The rest of the Spanish regions are also designing and implementing strategies.

Source: ASEBIO Report – Spanish Association of Bioenterprises (2006)

slide28

Why you can bet on Spanish biotech(cont.)

  • Great potential to unlock: Workforce
  • 7,000 researchers in biotechnology and biomedicine: 11th position in the world.
  • 4th position in Europe in scientific output in biotechnology.
  • 1995-2003: number of scientific research papers published in Spain grew by over 12%.
  • 66% of biotechnology researchers working within the public Spanish R&D System were cited by U.S. patents.
slide29

Why you can bet on Spanish biotech (cont.)

  • Emerging bio-economy: Legal framework
  • The new Spanish Law on Biomedical Research: creation of a National Biobank Register
  • Favourable legal framework: Cultivation of Genetically Modified Organisms (GMO) and a unique Traceability and Labelling Law
  • Full Tax exemption on biofuels until Dec 2012.
  • Other Spanish instruments and laws.
slide30

Why you can bet on Spanish biotech (cont.)

  • Emerging bio-economy:Government support
  • The Ingenio 2010 Programme: to meet the Research, Development and Innovation convergence objectives of the Lisbon Strategy.
  • Sustained annual growth rates of the government’s budgets in recent years.
  • The Spanish Tax System is one of the most advanced in the world, especially in the Research, Development and Innovation field.
  • The adoption of the Young Innovative Company Status will no doubt help biotechnology firms.
slide31

A piece of history

  • 2001:The Spanish National Cancer Centre (CNIO) launches its first Oncochip.
  • 2002:Abengoa signs a $35.5 M R&D project with the U.S Department of Energy (DOE).
  • 2003:Serono concentrates global production of its growth hormone in Spain.
  • 2005:Genetrix receives the first Orphan Status designation by the EMEA in Europe for a medicinal product based on the use of stem cells of adult origin.
  • 2005:GSK opens its Molecular Screening and Tropical diseases research facilities in Spain.
  • 2005:Natraceutical buys Braes Group (€80 M). In 2006 it acquires Forté Pharma (€82M).
  • 2006:Spain continues to be the European leader in the cultivation of genetically modified crop varieties with a total of 53,667 hectares under cultivation.
  • 2007:The EMEA approves Zeltia's drug Yondelis for the treatment of soft tissue sarcomas.
  • 2008:The OMS designated the ONT (Organización Nacional de Transplantes) as a WHO Collaborating Center on Donation and Transplants
slide33

BIO Business Opportunities

Spain offers specific opportunities in…………………….

  • Biochips: towards a personalized medicine
  • Food quality and security
  • Private Equity
  • Functional foods
  • Organic farming
slide34

BIO Business Opportunities (cont)

Spain offers specific opportunities in…………………….

  • Nanobiotechnology
  • Generic drugs
  • Gene silencing
  • Production of therapeutic proteins using non-genetically modified plants
  • Algae active ingredients
slide35

BIO Business Opportunities (cont.)

Spain offers specific opportunities in…………………….

  • Production of enzymes with industrial applications in transgenic plants.
  • Drug development from target’s structural determination.
  • Pharmacogenetics: Genetic biomarkers.
  • Molecular diagnosis. DNA and protein arrays.
  • Bioinformatics.
slide36

Leading pharmaceutical & biotech multinationals

are already successfully located in Spain

slide37

BIOSPAIN 2008

  • BIOSPAIN 2008 is the International Meeting on Biotechnology to be held in Granada from the 17th to the 19th of September 2008.
  • Five events in one:
  • BIOTEC 2008 " - Scientific Congress
  • Plenary Sessions: "Towards a Sustainable Bioeconomy“
  • Investment Forum
  • Partnering
  • Trade Fair and Bio-Regions Hall
slide38

Thank you very much

See you at BIOSPAIN’08!

www.biospain2008.org

For further information please contact:

Ana Arias

Life Sciences & Biotech Life Sciences & Biotech Investor Services Manager

Email: aarias@interes.org

slide39

Doing Business in Spain

Montreal, 22nd May 2008

spain business opportunities in aeronautics

SPAIN: Business opportunities in Aeronautics

Vanessa Guerrero, Investor Services Manager

INTERES Invest in Spain

May, 22th 2008 MONTREAL

slide42

Why Spain

  • Because the Spanish Aeroespace Industry is the fifth in Europe in terms of turnover (4,203 million euros)* and employment (29,521 employees)*
  • Because of its high growth – the industry has grown an average 13% in the last decade:

4,203

3,767

1,421

* 2006 Data

slide43

Why Spain

Because Spain is highly developed in aeronautical production:

420 M €

420 M €

2,816 M €

546 M €

Total:

4,203 M €

slide44

Why Spain

  • Because Aeronautics companies based in Spain are leaders in:
  • Composite Aerostructures (especially, carbon fiber reinforced plastics)
  • Low pressure turbine engines
  • Air Traffic Management systems

- 3 out of 5 flights in the world use Spanish software for landing

slide45

Why Spain - Clusters

  • Spain has significant Aeronautics clusters:
  • MADRID

63.6% of turnover

58.4% of employees

130 companies

  • ANDALUSIA

16.8% of turnover

21.0% of employees

75 companies

  • BASQUE COUNTRY

11.3% of turnover

11.1% of employees

54 companies

  • CASTILLA-LA MANCHA

4.2% of turnover

3.5% of employees

12 companies

  • CATALONIA

2.1% of turnover

2.7% of employees

53 companies

slide46

Why Spain – R&D

  • Because Aeronautics in Spain is a very innovative industry:
  • Investment: 575 M. € in 2006 (+26% from 2005)
        • 48% by companies
        • 13.7% of turnover
        • 15% of turnover in the case of systems and frames
  • High quality public R&D Centers:

FIDAMC : Research, Development and Applications of Composites

Other important centers:

Public Research Organization specialized in aerospace research and technology development

slide47

Why Spain – R&D

  • Both AIRBUS and BOEING have developed important R&D Centers in Spain:
  • Boeing Research and Technology Europe (Madrid)
  • First Boeing R&D center outside the USA
  • Main areas: safety, ATM and environmental technologies
  • April ’08: first flight of an airplane powered by hydrogen fuel cells

According to Boeing:

“The reason for choosing Spain was the outstanding role of the country in the EU and as a reference point with the Latin American countries.

It also shows the relevant position that the Spanish Aerospace industry has acquired in the last few years and the capabilities of the country in environmental and ATM technologies”

Source:www.boeing.es

slide48

Why Spain – R&D

  • Both AIRBUS and BOEING have developed important R&D Centers in Spain:
  • Airbus Advanced Composites Center
  • Center of excellence for horizontal tail planes for all Airbus Aircraft worldwide
  • Airbus Spain: leader worldwide in composite materialstructures: first company in using carbon fiber for fuselage sections in commercial aircrafts over 100 seats
  • Specialised in large curvature panels from carbon fiber reinforced plastic
slide49

Why Spain – Industry

PRIME CONTRACTORS

)

Complete integration capability

OEMs – Original Equipment Manufacturers

Taking part in FAL. Intermediate added value products

SUBCONTRACTORS

Systems or sub-systems manufacturers

AUXILIARY INDUSTRY

Product manufacturers

Ca. 170 companies

slide50

Why Spain – Industry

  • Growing importance of Spain in international programs:

AIRBUS

  • Spanish participation share:

- Civil programs:

    • 4.2% in the first programs (manufacture)
    • 10.8% in A380 (also design, development and certification); mostly in Madrid

- Military programs:15% in A400M (including the Final Assembly Line, and simulation and training center, in Seville, Andalusia)

EADS

  • Eurofighter Typhoon: 14% (in Madrid, major components: right wing and leading edge slats)
  • Eurocopter: Brand-new plant in Albacete (Castilla-La Mancha), FAL and delivery center for NH-90, Tiger and EC-35
slide51

Why Spain – Government Support

  • New National Strategic Plan 2008-2016:
  • Reinforcing traditional technological strengths
  • Diversify toward new promising areas
  • OVERALL GOAL  2016 turnover 3 times higher than the current level of 4,600 M. €
business opportunities
Business Opportunities
  • Navigation and avionic systems
  • General aviation. Very Light Jets
  • Helicopters
  • Engines and propulsion engineering
  • Training centers for professional pilots for air transport
  • MRO (Maintenance, Repair and Overhaul) centers for transport aircrafts
  • MRO centers for aircrafts designed for general and business aviation, schools and aerial works
  • Simulators for aviation, based on low-cost technologies
  • Manufacturing of Unmanned Aerial Vehicles for civil uses
slide54

Flight Simulators

  • Used by both civil and military aviation for training, engineering, design, research, etc.
    • Development of Spanish Aeronautics and ITC industries
    • Spanish companies are mainly focused on the military market
    • Airlines outsourcing training activities
    • Growth in business aviation and low-cost carriers
    • Increase in flight training centers
slide55

Helicopters

  • Third Eurocopter FAL established in Spain
  • Opportunities
    • Services to ECE Helicopter FAL
      • Engineering services
      • Electronics and systems
      • Tooling
    • Helicopter maintenance
    • Sections manufacturing
  • Top Reasons
    • Total market: 53.6 Million €
    • Business size will increase: ECE – Participation in all future development
    • Presence of technological centers and parks

* Source: Own estimations, 50% outsourcing assumed

slide57

Doing Business in Spain

Montreal, 22nd May 2008

slide58

“DOING BUSINESS IN SPAIN”

LEGAL ENVIRONMENT

Best Practices

Alberto Echarri

Partner - Head of M&A

Gómez-Acebo & Pombo Abogados

Toronto, Ottawa, Montreal

May 2008

invest in spain facts figures
INVEST IN SPAIN: FACTS & FIGURES
  • Spain is the world’s 8th largest economy, with sustained growth above the EU average. It is the country with the fastest rate of job creation in the OECD.
  • Spain is the 8th largest FDI recipient in the world and the 3rd largest investor in the world.
  • Spain has a privileged geo-strategic position: access to 1,300 million consumers in the world. It is an international business hub.
  • 440 million people in the world speak Spanish.
invest in spain facts figures60
INVEST IN SPAIN: FACTS & FIGURES

What foreign investors value most of Spain is:

1. Cost of investment

2. Local human resources

3. Geographical & Financial Environment

Generous incentives for R&D.

Access to the EU and Latin America.

invest in spain facts figures61
INVEST IN SPAIN: FACTS & FIGURES

More than 11,000 foreign companies & 54 international banks are located in Spain.

Spain has modern infrastructures and excellent business opportunities, namely in ICT, Biotechnology, Renewable Energy, Environment & Water Treatment.

Quality of life: Spain is the first choice for European executives faced with relocation, according to Financial Times. It is the world’s 2nd tourist destination and is known for its passion for work, arts, sports, and life.

priority sectors ict
PRIORITY SECTORS: ICT

Spain has one of the most burgeoning ICT (Information & Communications Technologies) markets in Europe, with a turnover of 87+ billion €.

40% of private R&D investment in Spain is devoted to this sector.

Spain offers tax advantages / cost relief for companies.

The Spanish telecom network is completely digital and has over 1,400,000 km of transmission networks. Mobile phone penetration exceeds 105%. Growth in broadband connection was more than 45% in 2005, with 4.5 million users.

16% of employees in this sector are devoted to R&D.

priority sectors renewable energies
PRIORITY SECTORS: RENEWABLE ENERGIES

3 main renewable energy resources:

1. Solar

2. Wind

3. Co-generation

Spain is one of the most attractive countries in the world for renewable energy projects: Spain is the 3rd country in the world in wind energy. Spain has 13% market share in this sector.

According to Greenpeace, if Spain exploited its natural energy resources, it would have 50 times more energy than necessary by 2050.

Spain possesses insulation towers for solar energy: Companies will invest over 1 billion $ in solar parks over the next few years.

prority sectors biotech pharma health
PRORITY SECTORS: BIOTECH, PHARMA, HEALTH

The biotech sector has expanded over 300% in the last 4 years. Spain is the 4th country in the EU for biotechnology scientific production.

Spain has 60 scientific & technological parks within the biotech industry, with 150 companies fully dedicated to biotech whose revenues total 420 million €.

The number of biotech companies has multiplied by 3 in the last 5 years, such that over 14,500 professionals & 425 research units are involved in biotech projects in Spain, producing over 4% of the world’s publications in this field.

Spain’s government wants R&D in this sector to reach 2% of GDP by 2010. As such, many new start-ups are funded by the government.

Spain collaborates with over 200 centers in the development of almost 128 clinical studies of the highest quality.

priority sectors environment
PRIORITY SECTORS: ENVIRONMENT

Spain is the world’s leader in water treatment and desalination using reverse osmosis technology. There are over 900 desalination plants in Spain.

1.5 million m3 of desalinated water is produced per day.

The economy is looking for a new impulse in recycling. There are 814 Spanish companies authorized to work as used-vehicle treatment centers.

Cars & motors are increasingly environmentally friendly.

4 million tons of recycled waste was produced from 2000-2004. 250,000 tons of tires are recycled per year.

priority sectors environment66
PRIORITY SECTORS: ENVIRONMENT

According to European regulations, Spain and the rest of the EU countries must reuse and recover 95% of materials used in vehicle production by 2015.

Recycling culture also affects home appliances, such that they are dismantled rather than buried in landfills. Spain aims to manage 160,000 tons of this waste using environmentally-friendly methods. Currently, 100,000+ tons are treated.

The number of home appliances recovered grows by 10% every year. Spain is working to recover and transform sludge from construction material extraction processes and agricultural waste plastic.

most dynamic sectors
MOST DYNAMIC SECTORS

1. Private equity

  • Declining

Energy

  • Power companies: ENDESA/IBERDROLA
  • Renewable Energies

Air transport

  • IBERIA
  • SPANAIR

Hospitality

Chemical sector

Environment

Real estate

the legal environment
THE LEGAL ENVIRONMENT

Sophisticated legal system

  • Meets EU/US/CAN standards
  • Principles equivalent to Common Law

Common legislation throughout the country

  • Civil law exceptions: inheritance / family law
  • Specific sector regulations:
    • Generally central regulations
    • Regional legislation for delegated matters
      • Transportation
      • Hospitality sector
      • Environment
      • Water treatment
      • Tax in Basque Country, Navarra and Canary Is.

Municipal regulations

the legal environment69
THE LEGAL ENVIRONMENT

Friendly and open environment

  • Contract law principle of freedom of will of the parties
  • Contractual restraints limited by:
    • EU competition regulations / vertical restraints
    • Employment law
  • Freedom of investment / disinvestment
  • Freedom of establishment in the EU
  • Foreign investment deregulation
establishing a business
ESTABLISHING A BUSINESS

Incorporation formalities

  • Standard documentation
  • Notarized incorporation: 10 days
  • 15-30 days for registration of company
  • Companies may operate from day 1
  • SS and TAX registration: day 2

No registration of agreements except

  • Effects vis-à-vis third parties
    • Corporate documents
    • Real Estate deals
    • Guarantees
home country agreements
HOME COUNTRY AGREEMENTS

Generally adjustable to local requirements

  • Commercial agreements
  • Acquisition agreements

Choice of law

Choice of forum

Choice of language

Arbitration

most common vehicles
MOST COMMON VEHICLES

Common distribution agreements

  • Agency
  • Distribution / Licensing / Concession
  • Franchising

Joint ventures

Direct acquisition of

  • Shares
  • Assets
  • Securities
agency agreements
AGENCY AGREEMENTS

Free will of the parties

Contractual restraints

  • In-term
  • Post-term

Public order rules / Agency Act

  • Goodwill indemnity payment
  • Spanish law
  • Spanish forum
distribution agreements
DISTRIBUTION AGREEMENTS

COMMERCIAL DISTRIBUTION

  • Exclusive / Non-exclusive
  • Contractual restraints
  • Limited non-compete clauses
    • EU Regulations on concessionaires

LICENSING/TECHNOLOGY TRANSFER

  • Know-How, Technical Assistance, IP
  • EU BER on licensing agreements

FRANCHISING

  • Represents almost 8% of retail trade
  • Governed by agreement
  • Pre-contractual information required
  • BE Regulation for anti-compete clauses
joint ventures i
JOINT VENTURES (I)

Common SPVs

  • Limited liability company (SA / SL)
  • UTE
  • EIG

Legal Structure/Documentation

  • Corporate SPV
  • By-laws of SPV
  • Shareholders´ Agreement
  • Business Plan
joint ventures ii
JOINT VENTURES (II)

Corporate governance rules

Non-compete clauses

Territorial scope

Veto rights

Investment restraints

Financial provisions

Step-out clauses

  • Russian Roulette
  • Put and call options
acquisition i
ACQUISITION (I)

Standard international practices

Players

LOI

Offer letter and exclusivity period

NDA

DD Review

  • Legal
  • Tax & Finance

Acquisition agreement

Agreements with managers and directors

Non-compete covenants

acquisition ii
ACQUISITION (II)

Price

  • Price retention
  • Escrow / bank guarantees

Reps. & Warranties

  • Standard Common Law provisions
  • Time limitations
  • Caps
  • Labour contingencies

Conditions precedent (antitrust)

Interim period clauses (MAE, BAU)

acquisition iii
ACQUISITION (III)

Public companies

  • 30% threshhold
  • Reporting obligations

Financing

  • Acquisition finance
    • Financial assistance prohibited
    • Guarantees
  • Project finance
    • Project guarantees
  • Shareholder loans: subordinated/Equity
  • Capital contributions
real estate deals
REAL ESTATE DEALS

Corporate acquisition

Assets

Due diligence

  • Land Registry searches
  • Zoning certificates
  • Leased property

Purchase agreement

  • Notarized deed

Complex acquisitions

  • Shopping malls
  • Sites under construction
guide for foreign investors
GUIDE FOR FOREIGN INVESTORS

Friendly legal environment

  • Sophisticated legal advisors
  • Reliable judiciary
  • Arbitration

Standardized practices

  • Adjustment of home agreements
  • Choice of law and forum. English language

Exchange control de-regulation

Tax-efficient SPVs/Spanish Holdcos

Standard business and financial practices

Minor business culture differences

slide82

Doing Business in Spain

Montreal, 22nd May 2008

title
Title

Case study of a biotechnology startup in Spain

the path to spain
The path to Spain

Alec Mian

Canada

B.Sc. McGill University, Montreal.

UK

Ph.D. University of Cambridge, UK

USA

Harvard Medical School, Boston.

Co-founded Gamera Biosciences (Cambridge, MA). Sold to Tecan Holding (SWX: TECN) in 2000

Spain

3 year sabbatical, co-founded a design company La Evolucion, SL.

Currently on Board of Directors of Santa & Cole, SA. (Design)

Started Genmedica Therapeutics, SL.

company goals and strategy
Company goals and strategy
  • Goal
  • Create a focused portfolio of drug candidates for diabetes
  • Financable, milestone driven development path (seed, Series A, B and C…)
  • Product partnering opportunities with large pharma in 2009/2010
  • Exit by trade sale or IPO (2011)
  • Strategy
  • Focus on an emerging, protectable area within diabetes
  • Leverage local resources to get started
  • Attract international resources to accelerate growth and value
history
History
  • 2005
  • Incorporated
  • Licensing with University of Barcelona - first drug candidate (GMC-1)
  • 2006
  • GMC-1: research and additional patents filed
  • GMC-2: drug candidates researched and patents filed
  • Initiated formation of Board of Directors (BOD) and Scientific Advisory Board (SAB)
  • 2007
  • Largest first round biotechnology financing in Spain (Spanish VC’s: BCN-Empren,
  • Innova31, Unirisco; Public: ENISA, CIDEM, Torres Quevedo)
  • GMC-3 research and patents filed
  • Initial development team hired. CRO’s work initiated
  • 2008
  • Cellular and animal based development of drug candidates , additional patents filed
  • More hiring.
metabolic syndrome first defined in 1998 by the who
Metabolic syndrome: first defined in 1998 by the WHO

Abdominal obesity

(waist circumference, men above 102 cm; women 88 cm)

Fasting triglyceride

(above 1.69 mmol/L)

Blood pressure

(above 130/85 mm Hg)

Fasting glucose

(> 6.1 mmol/L)

HDL cholesterol

(men above 1.04 mmol/L; women, 1.29 mmol/L)

metabolic syndrome epidemic rates
Metabolic syndrome: epidemic rates

> 60 years

General population

pathogenesis of metabolic syndrome
Pathogenesis of metabolic syndrome
  • Current diabetes therapies target symptoms not cause of diabetes
anti inflammatories in diabetes salicylates
Anti-inflammatories in diabetes: salicylates
  • The anti-diabetic effects of salicylates are the most studied of non-traditional anti-diabetics
company architecture
Company architecture
  • Leveraging local and international resources
financing
Financing
  • Leveraging local and international resources
spanish resource availability the good the bad
Spanish resource availability: the good, the bad…

Basic science

Clinical science

IP

EXCELLENT

LACKING

Employees

SAB/BOD

Late stage financing

Early stage financing

next steps for genmedica
Next steps for Genmedica
  • Continue to fund early development in Spain
  • Continue to build team in Spain, continue work with international CRO’s (France, India)
  • API chemistry will be done in Spain
  • Clinical studies in Germany or UK
  • Next financing round probably European Union or US-based
slide96

Doing Business in Spain

Montreal, 22nd May 2008

agenda
Agenda
  • Corporate Overview
  • Market leader in Civil and Military simulation equipment
  • Civil Training and Services
  • OEM Relationships
  • Global Academy & Ab-Initio Training
overview of cae inc
Overview of CAE Inc.

Civil

Military

One of Canada’s Largest Aerospace Companies

  • Founded in 1947 in Montreal
  • 5,000 employees worldwide
    • More than 3,000 in Canada
    • More than 1,000 in USA
    • More than 1,000 in the rest of the world
  • Annual revenues of more than C$1.2 billion
  • Over 90% of revenues from global exports and international activities in 50 countries
  • Operations and training facilities in 19 countries on 5 continents
  • Train over 50,000 pilots/year
market leader in civil and military simulation equipment
Market leader in Civil and Military simulation equipment

Largest Manufacturer of Aviation Simulation Equipment in World

Full Mission Simulators (FMS)

Full Flight Simulators (FFS)

Reconfigurable, Deployable Trainers

Flight Training Devices (FTD)/ Cockpit Procedures Trainers

(CPT)

Part Task Trainers (PTT)

Integrated Procedures Trainers

(CAE Simfinity)

Desktop Trainers

(CAE Simfinity)

civil training services market presence
Civil Training & Services Market presence

MARKET LEADER IN PILOT TRAINING

  • 23 training centres across 5 continents
  • 110 full-flight simulators deployed
  • Serving approximately 3,500 customers
  • Training and Services segments addressed
    • Commercial
    • Regional
    • Business
    • General aviation

Global market reach across all market segments

over 23 training locations worldwide
Over 23 training locations worldwide

Amsterdam

Fassburg*

Burgess Hill

Holzdorf*

Moscow

Vancouver

Benson

Toronto

Bueckeburg*

London*

Montreal

Seattle

Maastricht

Brussels

New Jersey*

Denver

Rome

Washington

Sesto Calende

Evora

Phoenix

Charlotte

Madrid

Tampa

Dallas

Miami

Dubai

Zhuhai

Kuala Lumpur

Singapore

São Paulo

Santiago

Sydney

Civil Training

Military Training

oem relationships
OEM Relationships

Airbus

Embraer

Dassault

Bombardier

Agusta

Lockheed Martin

CAE

CAE Delivers factory training for sever of world’s largest aircraft manufactures

slide104

CAE Global Academy

Addressing Global Pilot Shortage

  • Network of Ab-Initio Flight Schools
  • Formed in 2005 to address Global Shortage of Airline pilots
  • Currently consists of 6 Flight Schools
  • Production Capability of over 1000 pilots/year
  • Expected to increase to 3,000 pilots/year in 2008
  • Delivery of Multi-Crew Pilot License (MPL)
slide106

Doing Business in Spain

Montreal, 22nd May 2008

international technology cooperation with spain canadeka

International Technology Cooperation With Spain - CANADEKA

Claude Morasse

National Research Council Canada

Director, IRAP Ontario

May 20, 2008

slide108
National Research Council Canada

Industrial Research Assistance Program

NRC- IRAP

nrc industrial research assistance program
NRC - Industrial Research Assistance Program

Our Mandate :

Stimulate wealth creation in Canada throughtechnological innovation.

Our Mission :

Stimulate innovation in Canadian SMEs.

Our strategic objective :

Increase innovation capacity of Canadian SMEs.

.

nrc s industrial research assistance program
NRC’s Industrial Research Assistance Program
  • In existence since 1947
  • In Canada :
    • Invests over $100M per year in contribution to SMEs ( less than 500 employees )
    • Work with over 10,000 SMEs / year and provide funding support to over 2,500 projects / year
the toolbox
The Toolbox
  • Support to Firms for R&D
  • Financial Support for Firms’ Technology Development
  • Financial Support to Bring New Skills to Firms
  • Financial Support for Organizations Providing Innovation Assistance to SMES
  • Technology and Advisory Services
  • Networking and Linkages
firms eligible to nrc irap financial support
Firms eligible to NRC-IRAP financial support
  • For profit, incorporated commercial entity;
  • 500 employees or less;
  • Willingness and potential to improve their technological innovation capability;
  • Open to establishing a trusted relationship with NRC-IRAP;
  • With a coherent business plan demonstrating required skills in marketing, technology and management, as well as the appropriate financial capacity to undertake the project and exploit its results.
irap s international partnering goals
IRAP’s International Partnering Goals
  • Key to IRAP’s strategic planning is growing SMEs to a mid size and ready for international technology opportunities
  • We work in close collaboration with Canadian embassies and other federal government departments
  • IRAP has long supported SMEs to seek out international technology partners
  • Our support includes:
    • Information and competitive intelligence on international markets and technologies
    • Host foreign SMEs and missions that visit Canada
    • Funding to Canadian SMEs to carry out technology missions
    • Funding to support international R & D collaboration projects
international partnering approach
International Partnering Approach
  • Across Canada, IRAP’s Industrial Technology Advisors monitor clients for international interests
  • This results in individual SMEs visiting research institutions and firms, or organized missions with several firms ( 5-15 SMEs )
  • Increasingly, our planning involves competitive intelligence and activities
  • Support follow-up activities by Canadian SMEs to pursue international collaborative projects
  • Seek to partner with organizations in other countries with similar mandates
canadeka
CANADEKA

NRC-IRAP’s ultimate goal is to encourage science and technology development and commercialization by SMEs and realizes that partnerships and agreements like the one held with Spain’s Centre for the Development of Industrial Technology (CDTI) will assist in achieving this goal.

canadeka117
CANADEKA
  • NRC-IRAP and  CDTI  are collaborating on a reciprocal basis to further each other’s support of SME growth, technology transfer and technology development for the purpose of generating economic benefits for both Canada and Spain.
  • This agreement allows for mutual collaboration between our countries, and is an opportunity to build greater partnerships between Canadian and Spanish companies as well as research institutions that continue to make headway in all areas of innovation. 
canadeka criteria
CANADEKA - CRITERIA
  • Involve at least one qualified company from each country (Spain and Canada).
  • Be directed at developing a product, process or service having a wide market potential.
  • Have some identified expected benefit from pursuing the project on a cooperative basis.
  • Be directed towards the development or use of advanced technologies.
  • Aim to secure a significant technological advance with regards to the product, process or service concerned.
  • Clearly identify a commercial application to benefit mankind.
projects to date
PROJECTS TO DATE
  • 7 to date in manufacturing engineering, ICT, bioenergy and biotechnology
  • 8 in development in bioenergy, ICT, and biotech
key contacts
In Canada

National Coordinator

George Ortega

(204) 984-4400

george.ortega@nrc-cnrc.gc.ca

Executive Coordinator

Bill Dobson

(416) 954-8330

bill.dobson@nrc-cnrc.gc.ca

In Spain

National Coordinator

Ismael Rodrigo Barco

rodrigo_ismael@cdti.es

Executive Coordinator

Jose Manuel Leceta

jmlg@cdti.es

KEY CONTACTS
slide123

Doing Business in Spain

Toronto, 20th May 2008