PORTUGAL

1 PORTUGALE conomy, tourism , policy and investment PORTUGALE conomic outlook PORTUGAL : Key Data Area: km2 Coastline: km (including Atlantic islands) Population: 10,6 million people Education: 24% has a university degree Languages: 60% speak a second languageThe WestCoast of EuropeEconomic Outlook-1,8-4,0-1,10,91,61,41,5-0,9-0,31 ,22,01,720112012201320142015 (e) 2016 (e)(e) EstimatedSources: INE statistics PORTUGAL ; Bank of PORTUGAL ; European Commission; EurostatGDP (Growth %)[ PORTUGAL and Euro Zone] PORTUGAL GDP forecasts, 2017 European Commission1,6%Unemployment Rate (%)[ PORTUGAL and Euro Zone]12,915,816,414,112,611,210,211,412, 011,610,910,020112012201320142015 (e) 2016 (e)Euro ZonePortugalEuro ZonePortugal PORTUGALT ourism economic outlook tourism is a Strategic Activityfor the Portuguese EconomyTourism Receipts in GDP (%) 2016 provisionalSources: INE statistics PORTUGAL .

2 Bank of Portugal4,65,15,56,26,77,020112012201320 14201520166,06,16,56,15,76,3201120122013 201420152016 tourism in Employment (%) tourism is a Strategic Activityfor the Portuguese EconomyIn 2016 , tourism Receipts provisionalSources: INE statistics PORTUGAL ; Bank of PortugalTourism Balance (million )5 Countries are the Main tourism MarketsAZORESMADEIRALISBONNORTHCENTREALE NTEJOALGARVE13%9%3%34%14%3% 2016 Overnight Stays per region (Share %) 2016 Overnight Stays per nationality (Million) 2016 provisionalSources.

3 INE statistics Portugal15,2(28%)38,3(72%)PortugueseFore ignTotal = 53,5 millionUK9,2 Germany5,3 Spain4,0 France3,9 Netherlands2,4 Others13,6 OVERNIGHT STAYS(MILLION)24%5 7206 1987 6018 1468 6069 25010 39411 45112 681200020052010201120122013201420152016 Growth in tourism DemandOvernight Stays (Million )Receipts (Million ) 2016 provisional; Sources: INE statistics Portugal33,835,537,439,439,741,645,948,9 53,5200020052010201120122013201420152016 HospitalityFinancial PerformanceReceipts (Million )+36%+14%+9%EBITDAG ross Value AddedTurnover2015/14 PORTUGALT ourism Competitive Advantages CompetitivenessAccording to the World Economic Forum s tourism Competitiveness Index, PORTUGAL is the 15th most competitive country worldwideA reference for Sun and in tourism Resources Mild Climate in Europe and 850K of Sandy Beaches (that attract 90% of all international tourists)

4 Thereare314distinguishedqualitybeachzone s Portugalhas209beachesawardedthe"BeachAcc ess,BeachforAll projectCompetitiveness in tourism ResourcesRich and diverse culture Urban Quality of Life 800 national monuments and more than 2,500 buildings classified as having public interest 15 UNESCO World Heritage sites plus 3 Intangible Cultural Heritage of Humanity Competitiveness in tourism Resources Natural resources 36 Protected areas Protected areas occupy 23% of total countryUnique andPreserved NatureCompetitiveness in tourism ResourcesIdeal Place for any Sport Best Golf Destination in the World, with 88 golf courses and over million rounds of golf Biggest Wave in the World (Nazare)

5 And renowned place for Surfing Diversity of Landscapes for Cycling and WalkingCompetitiveness in tourism Resources Competitive conditions in the property sector (prices) Clear and transparent legal system, tax rules, facilities for obtaining residence permits Special tax regime for non-habitual residents Great Opportunity for Residential TourismCompetitiveness in tourism Resources Leading Destination for the Meeting Industry (7thon the European ICCA and 12thof the world ranking) 1stin Labour Skills (World Economic Forum s Global Competitiveness Index 2016 -2017 within 138 countries) Safe and stable country (5thmost peaceful country in the World) Excellent quality/price ratioBusiness EnvironmentAccording to Doing Business 2017published by the World Bank, PORTUGAL is the 25theasiest countryin the world and the 15th within the Europe, among 190 countries starting a business within Europe.

6 Takes 4 -5 days and 5 proceduresRegistering a property takes just 1 dayand 1 processSIMPLEX+LeveragingTechnology PORTUGAL ranks 12th position among EU-28 countries in number of high-speed fixed broadband tourism as major program to bring inovation and digitalization to tourism EnterprisesStrategic Location Excellent and privileged economic relations between PORTUGAL , Brazil, Angola and Mozambique Daily flights to main European cities, South America, North America and AfricaPortugalIberian marketEuropean marketPortuguese speaking countries10,6 M51 M495 M220 MAttractive Consumer Market (Million):Air ConexionHUBThe country is well served of air connections to the main outbound marketsLisbon is a international hub to America, Africa and EuropeAFRICAASIANORTHAMERICASOUTH AMERICAAUSTRALIAEUROPE Lisbonis connected to 102 international cities: 64 in Europe.

7 21 in America, 15 in Africa and 2 in Asia Portoto 59: 52 in Europe, 5 in America, 1 in Africa and 1 in Asia Faroto 55 European cities Funchalto 35 European cities PontaDelgadato 9 international cities: 6 in Europe and 3 in America PORTUGALA ttracting Foreign Investment Incentives General FrameworkFinancial IncentivesAttractive LoansVenture CapitalEuropean Framework 2014/ 2020: support investment of EUR 21 billion, which favours a smart growth, based on knowledge, innovation and internationalization of its economy.

8 Focus on human resources development and job creationPartnership with financial system:is available to companies at reasonable costs and with long reimbursement periodsFiscal IncentivesThe capitalization of Portuguese companies is a strategic priority for the Portuguese GovernmentIn this context, the Government launched new venture capital instrumentsPortugal has increased its competitiveness in Tax Incentives for Productive InvestmentDevelopment of tourism and reduction of regional disparities, induce the creation of jobsInvestment Opportunities Living in PortugalOBJECTIVESR educe Seasonality.

9 Create a constant demand of products and services, improving their quality + creating and maintaining jobs and building a destination image of SUPPORT-Huge diversity of landscapes and environments in a small area-Safe investment in a Peaceful and stable country-Possible rentabilityof propertiesTax regime for non-habitual residents -a special regime for non-habitual residents, aimed at attracting foreign investors through favorable income tax rates. Discover more at Opportunities REVIVEOBJECTIVES Properties owned by the State with architectural, historical and cultural value.

10 Goal is restoring properties related to TourismPROCESSFINANCIAL SUPPORT Properties shall be subject of Public Bid Available credit lines with mutual guarantees and specific credit lines with Banks PORTUGALThe Future 10 challenges for a 10 year strategy1. PEOPLE -Promoting jobs, qualifying and valuing people and increasing income of tourism professionals2. COHESION -Mitigate regional asymmetries3. GROWTH IN VALUE -Growing more than competition in tourism receipts4. SEASONALITY Reduce seasonality5. ACCESSIBILITIES -Reinforcing accessibility to PORTUGAL and promoting mobility within the territory6.