JALISCO, A Leading State SECRETARIAT OF ECONOMIC DEVELOPMENT

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1 JALISCO, A Leading State SECRETARIAT OF ECONOMIC DEVELOPMENT

2 Jalisco is a state located west of the country... It is one of the largest economies in Mexico POPULATION ECONOMY GDP / PERCAPITA MEXICO 112 Million; 26 YOA 12 Trade agreements 3rd trading partner of USA NAFTA Trade agreement, world`s largest Billion USD/ 9,103 USD JALISCO 7.3 Million; 25 YOA 2nd place in the top 5 major cities for economic potential in North America* Billion USD 8,786 USD *(fdi Magazine, 2007)

3 Welcome to Jalisco! MEXICO S SILICON VALLEY The greatest concentration of Electronics Companies in Mexico 1 st Place in High-Tech Manufacturing & IT Industry in Mexico, with more than 650 companies. 54 % of State Exports consist of High-Tech Products & Services. The best place to live! Once again, Guadalajara is considered the best city to live in Mexico (Mitofsky, 2010) Ranked 6th place in the ten top Latin American Major Cities of the Future (fdi Magazine 2010/2011) & 2nd place in the Best Economic Potential Cities of North America (fdi Magazine 2007). The best place to invest! The preferred option to invest in Mexico (KPMG, 2010): Highly Skilled and Experienced Labor Force Leader in R&D, Design and Engineering Centers (Electronics, IT, Aerospace) Strong industrial-r&d/ Incentive Programs. Over 2,400 foreign companies doing business in Jalisco.

4 WE HOLD NATIONAL LEADERSHIPS IN IT SERVICES (BPO / ITO) Tourism Creative Industries Electronics & Telecommunications Equipment MANUFACTURING Furniture Jewelry Poultry & Eggs Greenhouse crops Dairy Confectionery FOOD & AGRICULTURE* Agave / Tequila Pork * 12% Contribution to National Agriculture GDP

5 INVESTMENT Source: SEPROE Source: SEPROE

6 INTERNATIONAL TRADE Source: SEIJAL Source: SEPROE

7 EMPLOYMENT Source: SEIJAL Source: SEPROE

8 WORLD-CLASS SKILLED LABOUR FORCE Labor Force: 3.44 million people. 1st. Place in Job Training Centers in Mexico Personnel turnover index lower than Monterrey, Mexico City and border zones (2010: 1.3%, 2009: 1.2%). Average Age: 24 Y/A, which is below the country average (25 Y/A). Competitive Labor Cost. Availability of Technical and Engineering Personnel. Excellent Engineering & Technical programs. Industry expertise (Electronics, Telecomm, Automotive) with more than 40 years of High-Tech experience.

9 THE BEST ACADEMIC INSTITUTIONS IN MEXICO HAVE CAMPUSES IN JALISCO 127 Higher Learning Institutions 948 High Schools 66 Postgraduate programs 1 Major Business schools 2 Technological Universities 14 Technological Institutes 625 Job Training Centers 53 Technical schools 3,321,332 Total Students in Jalisco (all grades included) Over 5,000 engineering graduates per year (2,000 specialized in High Tech) Source: SEIJAL with datas of SEJ

10 QUALITY OF LIFE Hotels & Touristic Developments Recreational & Commercial Areas Cultural Activities International Selection of Restaurants Competitive Medical Services Wide choice of housing Diverse Entertainment Tradeshow and Convention Centers Corporate buildings & offices 16 Golf Clubs in Gdl Metro Area

11 Guadalajara has been selected by MIT as the site for the Digital Creative City

12 Guadalajara International Airport 2 INTERNATIONAL AIRPORTS Guadalajara s airport is the second most important in Mexico. Puerto Vallarta International Airport Ranked number 2 in total International trade operations Four nearby international airports, less than 230 km. (155 miles) from the capital city, Guadalajara. Flights from Guadalajara to: 1,100+ international flights per month Atlanta Chicago Midway Chicago O Hare Dallas Habana Houston Las Vegas Los Angeles Oakland Ontario Orlando Panama Phoenix Sacramento Salt Lake City San Antonio San Jose, California Direct commercial flights to the main US cities (4 Hr. radius) Source: GAP

13

14 ROAD INFRASTRUCTURE Main Cities Privileged Roads and Connections From Guadalajara to: Kms Aguascalientes 225 Cd Juárez 1,520 Laredo 1,103 Manzanillo 270 México, DF 580 Nogales 1,715 Monterrey 740 Tampico 750 Tepic 227 Veracruz 775 Jalisco is connected to all of Mexico by the main Federal highways: Guadalajara Mazatlan Nogales (Pacific Coast) Lagos de Moreno Cd. Juarez Guadalajara Zacatecas Nvo. Laredo Guadalajara Mexico City Guadalajara Manzanillo

15 RAIL INFRASTRUCTURE Distances From Guadalajara: Kms FFCC Company Altamira/Tampico KCS Ferromex Cd. Juarez 1,874 Ferromex Nvo Laredo 1,291 KCS Ferromex Lázaro Cárdenas 878 KCS Ferromex Manzanillo 355 Ferromex México DF 613 Ferromex Monterrey 1,416 KCS Nogales 1,732 KCS Ferromex Veracruz 1,062 Ferromex Jalisco is part of the main intermodal corridors: Manzanillo Guadalajara Mexico City Guadalajara - Mexicali Manzanillo Guadalajara Hermosillo- Nogales Piedras Negras Torreon Guadalajara Guadalajara Cd. Juarez Manzanillo Guadalajara - Monterrey

16 The nearest seaport is in Manzanillo, The second most important cargo seaport in Mexico Surface: 437 has. There are currently 17 docking positions, 14 hectares of storage areas equipped with 13.5 kms of railway lines and 5.4 kms of roadways. 26 shipping lines connecting with more than 74 destinations in the world It serves 15 states within the Mexican Republic, which represent 64% of the GDP of the country. SOURCE: Administración Portuaria Integral de Manzanillo

17 WORLD-CLASS INFRASTRUCTURE 46 industrial parks 4 technological parks 2 software parks 1 multimedia park Guadalajara Logistics Center Source: & SEPROE

18 New Customs Area in Guadalajara Airport X-Ray System * Investment 3 M USD NEW AREA * 40,000 sq mt INVESTMENT * 10 M USD. COMPLY WITH SECURITY Standards *BAS *C-TPAT * Etc..

19 Southern Bypass of Guadalajara (Macrolibramiento) Asphaltic concrete 7 overpass facilities Toll road 3 collection booths 4 lanes way (2 each direction) with a right of way of 40 m Speed limit 110 Km./hr ( 68 mi/hr) Annual traffic average of 6 M vehicles. Radial distance of 30 km on average to Guadalajara Metro Area

20 Logistic Corridor of Guadalajara Metropolitan Area Strategic connection between northern, central and western Length: 70 Km 2 lanes each direction

21 P EO P L E Great availability of human capital (Labor, technical & Eng.) Lower Personnel Turnover E D U C AT I O N More than 6,000 engineering graduates per year Linkage programs to the development of workforce according to the needs of the industry Excellent and High Specialized Engineering & Technical programs B U S I N E S S E N V I R O N M E T Mexican Silicon Valley 650+ companies in the Electronic & IT sector 40+ High Tech Design Centers (INTEL & Freescale) 70% of Embedded Software Development in Mexico (Electronics, Automotive, Aerospace) I N F R A E S T R U C T U R E World class Infrastructure / Industrial Parks Strategic location and efficient logistics infrastructure

22 INCENTIVES & GRANTS INNOVA PYME PROINNOVA INNOVATEC RENIECYT Innovation fund Mixed Funds F E D E R A L AVANCE Ph s and M.S. Incorporation S T A T E Discount over the 2% ISN Technology Projects State Incentives

23 Training programs STATE INCENTIVES Specific value offer for your project State contribution for training programs for employees at technical and professional levels. Infrastructure State contributions for improvements in infrastructure (electricity, water supply, roads, etc). Land Sale, usage, exchange, or lease of government property at competitive prices. State payroll tax of 2% * 100% discount for new companies established in the first year. * 50% of discount for the new jobs created during the second year and for companies in expansion process. R&D + I Professional Services, Technology Transfer, Tech and Markets Studies, Intellectual Property Protection. Quality Certifications (ISO, QS, TS, AS, CMMI ) Municipal Incentives Potential saving in county taxes and permits

24 S E C R E TA R I AT O F ECO N O M I C D E V E LO P M E N T I N T E R N AT I O N A L P R O M OT I O N O F F I C E 1505 L o p e z C o t i l l a St, 8 º f l o o r C o l o n i a A m e r i c a n a G u a d a l a j a r a, J a l i s c o M e x i c o (33) F a x : ( 3 3 ) p r o m o c i o n. e c o n o m i c j a l i s c o. g o b. m x j a c o b o. g o n z a l e j a l i s c o. g o b. m x k u r t. r o d r i g u e j a l i s c o. g o b. m x w w w. s e p r o e. j a l i s c o. g o b. m x w w w. i n v e s t g u a d a l a j a r a. c o m

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