Belfast, September 2010

Portugal – the Cultural Aspects of Doing Business

Conference “Doing Business in Portugal”

www.portuguese-chamber.org.uk Tel + 44 207 201 6638

Why choose Portugal?

Irish attracted by Portuguese weather, relaxed lifestyle and golf!

Portuguese extremely welcoming to the Irish

Strong Irish influence – especially in the Algarve and Lisbon. The Irish Association Portugal (www.irishassociation.org) and www.irishdominicansinportugal.com and O’Neill’s Irish Bar in Vilamoura – famous landmark!

Foreign Investment

In 2009, Portugal attracted € 5 billion in foreign investment. Names like Volkswagen, Visteon, Delphi, Microsoft, Lear and Mitsubishi, among others, have chosen Portugal.

Portugal is headquarters of 1,300 multinationals and hosts the branch offices of another 3,000 (data from 2008).

Business environment

A republic since 1910, Portugal has been an independent state since 1143, and established its continental frontiers in 1297 ‐ it is one of the oldest nations of Europe.

In 1415, the epic voyage commenced that would make the Portuguese thefirst Europeans to discover the ocean routes to India, Brazil, China andJapan, and at the same time they founded settlements on the east and westcoast of Africa.

Portugal is nowadays an exciting country in which to do business. Firmlyanchored in the Euro‐zone, doing more than 80% of its external tradewithin Europe and with a stable parliamentary democracy, the country isreinventing itself, while creating the right conditions for companies to besuccessful.

Ten major reasons to invest in Portugal One of the countries with the lowest operational costs in Western Europe;

Portugal is a founder member of and full participant in the European Monetary Union;

A superb investment track record, with many firms bringing new projects to Portugal;

One of Europe’s youngest and most enthusiastic workforces, and first rate training facilities;

One of the world’s best and most flexible incentives packages;

High levels of productivity growth in both manufacturing and services;

A wide range of sites and buildings at highly competitive prices and ready to use;

High quality support services for investors, both during and after investment;

One of Europe’s best records for industrial relations;

A high quality of life with one of the continent’s lowest crime rates.

Country Overview

Domestic marketArea: 92 152 Km2Population: 10.627 million (2009)Working Population: 5.583 million (2009)Population density by Km2: 115.4 (2009)Official Designation: Portuguese RepublicCapital: Lisbon (2.1 million, larger metropolitan area – 2009) District capitals: Aveiro, Beja, Braga, Bragança, Castelo Branco, Coimbra,Évora, Faro, Funchal (in Madeira), Guarda, Lisboa, Leiria, Ponta Delgada(in Azores), Portalegre, Porto, Santarém, Setúbal, Viana do Castelo, Vila Real and Viseu

Language: PortugueseCurrency: Euro(Sources: National Statistics Institute; Bank of Portugal)

GVA – 2009Services: 75.4%

Industry,Constructionand Energy: 22.3 %

Agriculture,Forestry andFishing: 2.3%

Country Overview

Distribution of Employment - 2009Services: 60,5%Industry, Construction and Energy: 28.3%Agriculture, Forestry and Fishing: 11,2%

Source: National Statistics Institute

The service sector currently accounts for 60.5% of total employment and75.4% of the Gross Value Added (GVA), compared with agriculture, whichrepresents 11.2% of total employment and 2.3% of the GVA.

UnemploymentIn 2006, the increase of the GVA was followed by an increase in the number of jobs that almost evened out the rise in unemployment.

However, in 2010, the unemployment rate rose to 11%, linked the country’s economic performance and faltering world economy.

Negotiating across cultures

English-speaking business traditionsDecision during meetingDelegate responsibilityTeam workFirst name

Portuguese-speaking business traditionsNeed to involve authority

Strong hierarchy

Formal and respectfulUse title

Meetings in Portugal

There may be no fixed agenda

The perils of English – ensure you are understood

Meetings do not always lead to an action plan

Formal decisions are rarely made during meeting

The importance of lunch…

Doing business in Portugal

How the Portuguese solve problems…

How the Portuguese always have a ‘cunha’ or a contact

How the Portuguese extended family can be extremely useful in business!

How the Portuguese hate to say ‘no’

How to start doing business

You’ve heard how AICEP can help you in a formal business context

The Portuguese Chamber can prepare you for the more informal side of doing business there…using networking, contacts, the experience of others

What is the Portuguese Chamber of Commerce?

Founded in 1979, over the years the Chamber has developed close working relationships with all the principal Portuguese and UK government departments, as well as with the leading official and private bodies, allowing us insight into and access to specialist knowledge about the UK- Portuguese market.

Wide range of support services to members who are starting or developing business between the UK and Portugal, allowing them to take advantage of our experience and knowledge in several key sectors, among them banking and finance, IT and web services, the medical sector, property and construction, tourism and travel, freight and transport, legal and professional services, and publicity and public relations.

The Portuguese Chamber actively promotes the interests and businesses of its members, as well as providing a series of business networking events for companies and individuals through our calendar of activities and events, which are held both in the UK and Portugal.

Who runs the Chamber?

Honorary President - the Ambassador of Portugal in the UK

Chairman – Luis Pais Correia, CEO, Dalkia International - Northen Europe

Chamber Council of 16 leading business people – meets 4 times a year

General Manager Christina Hippisley 10 years in Portugal, speaks Portuguese, owns property there, ran a business there

Sister organisation - the British-Portuguese Chamber of Commerce in Lisbon (www.bpcc.pt)

What does the Chamber do?

Series of networking events

Targeted conferences

Chamber stands at selected consumer and trade shows in key sectors

Specific introductions

Who are our members?

Banks – e.g Banco Espirito Santo

Lawyers – eg Abreu e Advogados

Industrial companies – e.g Logoplaste

Consultants – eg Almeida Consulting

Real estate and tourism – e.g Oceanico Developments

Chamber’s relationship with AICEP – Portugal Global

Complementary and close – we work in the same building, the Portuguese Embassy in London

The AICEP director in London is on the Chamber Council

We both promote the other’s events programme

We focus more on helping businesses in banking, tourism, real estate, telecoms, legal and general consultancy make new business contacts

AICEP actively pursues inward investment from larger foreign investors, and promotes the less well known but equally important sectors of Portuguese business – e.g. renewable energy, software development, pharmaceuticals.

Why join us?

“Caixa Geral de Despósitos believes that being a member of the Portuguese Chamber of

Commerce is a key part of its UK business strategy; the Chamber helps raise the profile of

Portugal as a whole and thus of CGD, which will ultimately lead to more business for us in

the longer term.

“We believe that it is important for Portuguese businesses, - those doing business with

Portugal and our customers - that the image and reputation of the country is of the

highest standards, no matter if your business is football, green energy, property or

banking.

“The Portuguese Chamber is the only official cross-business organisation focused on

Portugal and CGD fully support its activities.”

Robert MillerGeneral ManagerCaixa Geral de DepósitosLondon office