COMMERCIAL DIPLOMACY Renata Ramalhosa Director UK Trade and

COMMERCIAL DIPLOMACY Renata Ramalhosa Director UK Trade and Investment Portugal 5 th December 2012 1

Prosperity Agenda – A Key Priority for the UK Government 2

The UK Government’s ambitions 1. Doubling UK exports to £ 1 trillion a year by 2020; 2. getting 100, 000 more UK companies exporting by 2020; 3. getting one in four UK companies to export (European average) rather than one in five at present; and 4. maintaining the UK’s position as the most favoured location in Europe for inward investment and doubling the UK’s stock of FDI to £ 1 trillion by 2020. 3

How is UK Government delivering these ambitions? All UK Government Departments 4

Balanced Wheel Delivering services to business, including global level playing field work Championing and enhancing resilience of UK economy Strategic relationship management and consensus building Leveraging Ministerial and other influential support Short term tactical commercial and economic campaigns [and lobbying ] Prosperity reporting and analysis Long term, high impact campaigns in support of prosperity objectives 5

FCO/UKTI Agreement UKTI FCO HMA 6

4 Pathways Towards Mission - 1 PATHWAY 1 - TRADE DEVELOPMENT _ Overseas Business Risk website – regular updates on the economic/ political and security information on Portugal _ Post to draft and share timely economic reporting on issues listed on the BW _ Post to provide quarterly economic and commercial Ministerial “asks” and success stories to UKTI and FCO _ Number of Service Deliveries – 471 _ OMIS Revenue - £ 73, 988 _ Business Opportunities (responses from UK companies) – 136 _ Quality and Satisfaction Objective: 80% _ Business Improvement i. e increased productivity and competitiveness: 70% PATHWAY 2 - HIGH VALUE Opportunities _ Value of exports supported with UKI direct involvement: £ 197, 820, 000 _ To implement a Ministerial visits Plan _ HVO Oil & Gas Brazil 7

4 Pathways Towards Mission - 2 PATHWAY 3 - INWARD INVESTMENT _ Total number of projects – 12* Of which 10 are HV and GQ together Of which 5 are HVP and HV together _ Draft and implement a communication strategy to promote the UK economy, report on perceptions and impact PATHWAY 4 - STRATEGIC RELATIONSHIP _ UKTI SRM – Institutional Investors (SPs in Portugal) _ UKTI SRM – Global Corporate (EDP current in the 2 nd Tier; others to join) _ UKTI SRM – Cross cutting relationship management for other companies (CAS and Investment Development) 8

UKTI’s mission 1. Support UK companies to grow their business through international trade; 2. connect UK business to the world’s top commercial opportunities; 3. attract high quality inward investment to the UK; and 4. establish whole-of-government relationships with major wealth creators to increase exports and investment. 9

UKTI Trade objectives 1. Help 32, 000 SMEs to export this year, 50, 000 by 2014/15 and 100, 000 by 2020; 2. helping generate additional sales of £ 45. 5 bn this year and £ 56 billion by 2014 -15; 3. to include £ 3 bn of business from high value opportunities (major projects) overseas this year and £ 4. 5 bn by 2014 -15. 10

UKTI Investment objectives for the UK 1. Secure £ 1. 5 trillion in FDI stock by 2020. 2. Continue to attract high value investments from all markets in which UKTI is represented. 3. 70% of new investments significantly influenced by UKTI, 4. including £ 4. 5 billion of investment in UK priority infrastructure projects. 11

Defence and Security Organisation (DSO) objectives 1. Maintain the UK’s position as the 2 nd largest global defence exporter, with at least 20% of global defence sales. 2. Achieve 5% of global security market. 3. Provide the essential government-togovernment relationships which underpin commercial campaigns in these sectors. 12

Strategic Relationship Management (SRM) • UKTI advisers work to understand all clients’ business and their needs, whatever the size or sector of company. • A new SRM programme introduces top level client account management of our biggest inward investment and exporting companies; • and developing strong relationships with institutional investors, infrastructure developers and key intermediaries in order to facilitate and speed up infrastructure investment; • and bringing finance from international institutional investors into the UK’s infrastructure. 13

UK Regions and UKTI’s Role Crucial role of UK Regions to support UKTI posts in the world 30% in two years* 14

UKTI’s global presence • UKTI teams identify business opportunities around the world. They support businesses throughout the UK. • UKTI has more than 1, 200 staff in over 100 overseas markets and around 400 people across UK regions, working locally to support UK businesses and overseas investors. • The devolved administrations have their own trade teams, delivering services analogous to UKTI’s. UKTI has more than 1, 200 staff in over 100 overseas markets. • Our advisers are overwhelmingly from the private sector, with experience in international trade/investment. 15

The UTKI Inward Investment Cycle Helping raise investor awareness of UK benefits • Identify target firms /responsive • Cover specific questions Influencing investors during their consideration stage • Market intelligence/propositions • Identify decision criteria • Provide sector briefings • Access and introductions • Develop tailored proposition Influencing investors during preference • Provide objective advice Relationship building throughout cycle • Impartial and client focused advice CBI UNCLASSIFIED 16 16

Current investment priorities • GREAT campaign – high profile international campaign supported by GREAT British brands and personalities; • the Tech City Investment Organisation has so far attracted 37 companies to the area including Google, Cisco, Chinasoft and venture-backed companies Yammer, Airbnb and Twilio; • the Life Science Investment Organisation is coordinating UK resources to support the delivery of higher value and quality inward investment initiatives in the sector; • a new venture capital unit is looking to encourage VC firms to locate in the UK. 17 17

UKTI Portugal BUSINESS IN PORTUGUESE 18

TOP Economic and Commercial priorities 1. Portugal Structural reform 2. Portugal as a platform to Brazil, Angola and Mozambique 3. Privatization Opportunities in Portugal (Mass Transport, Water, etc) 4. Education and skills: Training for Work 5. Portuguese Investment in the UK National Infrastructure Plan 6. Portuguese Investment in the UK in high tech sector (inc. Tech City) 7. Supply chain opportunities in the aerospace sectors in Portugal 8. Low Carbon Economy 9. Mining Supply Chain Opportunities 19

UK Trade & Investment - How we deliver it in Portugal? Work with UK-based businesses to ensure their success in and through Portugal Encourage Portuguese companies to bring their highquality investment to the UK Portugal as a Platform to other Portuguese Speaking countries (Angola, Brazil, Mozambique, etc. ). Opening new markets for Portuguese companies (ex. springboard to Middle East and Commonwealth markets) 2011 - more than 300 UK companies supported Working with other Portuguese speaking countries companies looking at having (or expanding) an European presence Currently working with 600 key account companies. Since 2007 - 41 Portuguese companies supported to land expand their activities in the UK 20

UKTI Strategic Partners 21

Key Accounts 22

Platform Portuguese Language Market Knowledge Low Investment Cultural Affinity Low Risk Bilateral Partner. Agreements of Choice Low Risk Partner with Portuguese companies in those markets 23

Platform INVESTMENT PERSPECTIVE UK Portuguese Speaking Markets’ FDI PORTUGAL BRAZIL 24

Platform “Having a similar culture and speaking the same language we are putting down two relevant barriers and giving comfort to the other part. ” Mr Carneiro also recognises that using this route Sage “is perhaps progressing faster in Brazil”. “Using Portugal as a platform to Brazil has plenty of advantages, the main of which is the Portuguese language (. . . ) project documents in Brazil are in Portuguese and the understanding of business culture make it a lot easier for the UK to gain business if a Portuguese partner is involved. ” “Common language and culture gives immediately an edge. It is easier, quicker and therefore more productive to work. If we combine this with cost efficiencies, industrialization and knowledge we can see how far a good working relationship can generate. ” 25

Events – UKTI Portugal Event Date Description Inward mission to WWEM - Telford 7 -8 th November 2012 3 Portuguese companies attending WWEM in Telford and meeting UK companies Explore Export - UK 12 -16 th November 2012 Networking multi-sector event taking place during a week in different regions in the UK Innovation in Healthcare - Lisbon 11 th December 2012 Innovation in Healthcare at the time of Health Cluster Portugal’s Annual Conference BETT - London 30 January - 01 February 2013 The largest Education Technologies exhibition and networking event in the UK; 1 Portuguese company will attend and meet with potential British partners. Green Technology Roadshow – UK 11 -15 th February 2013 Networking event, taking place during 5 days in 5 different regions in the UK. Focused on the Environment & Water sectors Bridging the gap into African Portuguese speaking countries - Lisbon 26 th February 2013 An event to promote partnerships between British and Portuguese companies, exploring the potential of Portugal as a platform into African Portuguese speaking countries Ecobuild – London 5 -7 th March 2013 Inward mission of Portuguese companies attending the exhibition and meeting UK companies Low Carbon Technologies Exhibition/Energy Efficiency and Green Deal – Lisbon 12 th March 2013 Event that identifies opportunities for UK companies across the Low Carbon technologies’ sector 26

UK and Portugal Long-lasting commercial relationship • Bilateral Trade accounting for € 3 Billion • More than 400 UK companies operating in Portugal • Approximately 100 Portuguese companies operating in the UK • Approximately 80, 000 British people living in Portugal • Increasing UK interest in the platform for Portuguese speaking markets 27

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Further information Contact E Renata. Ramalhosa@fco. gsi. gov. uk T +351 213 924 057 www. ukti. gov. uk Social media linkedin. com/ukti twitter. com/ukti youtube. com/uktiweb flickr. com/ukti blog. ukti. gov. uk 29

BUSINESS IN PORTUGUESE Thank you 30