zfb group (free trade zone)
TRANSCRIPT
ZFB GROUP
Corporate Presentation
June 9, 2015
1. ZFB GROUP
1. Introduction
2. ZFB Group Offer
2. FREE TRADE ZONE REGIME
1. Definition of free trade zone
2. The role of the free trade zones
3. Free trade zones incentives
1. Free trade zones investment over $28 million of COP
2. Jobs at free trade zones over 62.000 direct
3. Free trade zones = Productive transformation
4. Industries in Colombian Free Trade Zone
5. Free trade zone: Logistics operations made easy
6. Free trade zone: more value in the chain of distribution
7. Free trade zone: incentives for initial investment and operating costs
8. Free trade zone: operating efficiency
9. Requirements to set up in a free trade zone
Content
Content
3. ZFB USER OPERATOR and subsidiaries
1. Bogotá Free Zone
2. Total free trade zone market vs. Zona Franca de Bogotá participation
3. Zona Franca de Bogotá, user operator leader in free trade zone operations
4. PICIZ Cloud: software for managing free trade zones and industrial parks
4. ZFB DESARROLLADORA and subsidiaries.5. Zona Franca de Bogotá
1. Industry and Logistics Offer2. Value Offer3. “Francamente Responsable” Program
2. Services and Technology Park
3. Industry and Logistics offer
4. Cali – Zona Franca Pacífico Services and Technology
ZFB GROUP
ZFB Group consists of seven companies:
6. Proinversiones ZFB S.A.S.
4. DZF S.A. Desarrolladora de Zonas Francas
5. Construcciones de Zonas Francas S.A.S
7. ZFB Tecnology Services S.A.S.
Development through urbanization and construction of infrastructure and buildings on property owned by us third
party. Acquisition sale, leasing and/or property management.
Inside free trade zones
Outside free trade zones
Design, construction and development of Data Center in our own or thrid party real estate.
In and out of free zones
Management, administration, supervision, promotion and development of activities in one or
more free trade zones.
Inside free trade zones
2. International FTZ Operator User S.A.S.
Operator User of the Free Zone- IFOU
1. Zona Franca de Bogotá S.A. Usuario Operador de Zonas Francas
Develop social welfare programs and of publicutility.
3. Fundación Zona Franca de Bogotá
In and out of free zones
▪ 20 years of experience and leadership in developing, promoting, operating and managing free zones in Colombia.
▪ Zona Franca de Bogotá: has the largest number of qualified users in 205 companies,194 supporting companies and an average daily movement of 900 cargo vehicles.
▪ Piciz Cloud: world-class software for managing free zones and industrial parks.
▪ Over 250.000 m2 built in infrastructure within our free zones: warehouses, offices, data centers, custom projects.
▪ Proinversiones ZFB, since 2015 has developed, designed and built infrastructure outside the free zone regime.
▪ ZF Towers Services & Technology Park: is the most important
services and technology park of Colombia. This cluster brings together 32 outsourcing companies and 13,300 employes.
ZFB Group, leaders in developing competitive environments for business:
Piciz:ZF management software and
Industrial Parks
ZFB Group Offer
Operator User
Management of Free Zones
Consultancies
User certification formalities
Training
Industry and Logístics
Warehouses: rental and sale
Custom infrastructure
solutions
Property Maintenance
Brokerage
ZF Towers Services &
Technology Park
Office space
Infrastructure Data Centers
Foundation
Education Programs
Employment Portal
Sustainability Programs
Turnkey solution BPO
• DZF S.A. Desarrolladora de Zonas Francas
• Construcciones en Zonas Francas S.A.S
• Proinversiones ZFB S.A.S• ZFB Technology Services SAS
• ZFB S.A Zona Franca de Bogotá
• IFOU SAS. International
OFF
ER
COM
PAN
IES
Operation Data Centers
• Fundación ZFB
FREE TRADE ZONE REGIME
Definition of free trade zone
Instrument of Colombian Government to encourage job creation and new capital investment
Customs incentives
Tax incentives
Customs extraterritoriality
The role of the free trade zones
Fuente: SELA, 2012. Elaborado por Hernando José Gómez
In the 90´s Last 20 years
Instrument to promote exports
Instrument to promote productive and sustainable development
• Production diversification • FDI catalyst• Technology transferance • Expansion of the exportable offer• Development of productive chains• Integration of countries• Employment generation• Consolidation of sectors related of CGV
International Trend
Free trade zones incentives
15% income tax 0% CREE tax 0% VAT on domestic goods 0% VAT and tariffs on foreign goods
More Competitive
UP TO 32% TAX RATE REDUCCION!
Free trade zones incentives
More Competitive
1. Partial processing between companies in a free zone and TAN (National Customs Territory).
2. Storage for unlimited time without paying taxes or VAT nationalization.
3. Partial Nationalization of raw materials or finished products.
4. Customs on site.
5. Picking & Packing without haste and without them nationalized.
6. Using DTA or OTM for transfer from ports and border crossings, the form for movement of goods serves as DEX..
7. International logistics distribution for the Americas from Colombia.
Free trade zones incentives
More Competitive
8. Free movement of goods from free zones to the free zone warehouses and ports.
9. Tariff free re exportation.
10. Inventory verification prior to nationalization and payment for goods for sale and not on reject defective goods.
11. Goods produced or processed in FTZs are considered national. They are treated as goods originating in TAN when complying with the origin criteria.
12. Support businesses such as banks, restaurants,convenience stores and training rooms..
Free trade zones investment over $28 million of COP
Committed investment vs. execution in 2014 (left)Accumulated investment (right ). Milliards of COP
Source: ANDI, Ministerio de Comercio, Industria y Turismo. *Applicable to 100 free zones approved of the effective data of Law 1004 of 2005, Cut off date April 21,2014
Committed investment Investment Executed
13.8
28.7
MIL
LA
RD
S O
F C
OP
2009 2010 2011 2012 2013 2014
3.8
6.6
9.7
15.4
20.5
28.7
MIL
LA
RD
S O
F C
OP
Jobs at free trade zones over 62.000 direct
Workers in ZF, 2014(left)Direct employment evolution in ZF (right)
Fuente: ANDI, Ministerio de Comercio, Industria y Turismo.
62,892
170,288
9,443
# O
F P
EO
PL
E
2009 2010 2011 2012 2013 2014
28,954 29,130 32,712
47,328 52,551
62,892
# O
F D
IRE
CT
WO
RK
ER
S
Free trade zones = Productive transformation
Financial performance of companies in the TAN vs. ZF users, by economic sector. Average 2005-2012
Source: Super Sociedades, calculation by Hernando Jose Gomez
TOTAL
MAMUFACTURING TOTAL
Machinery and equipment
Food and Beverages
Chemicals
Rubber and plastics
Transportation and communications
Textiles and apparel
Agricultural
Leather and footwear
Cardboard, printing
Non metallic minerals
6.90%
10.30%
23.80%
18.30%
14.80%
8.30%
7.40%
5.20%
4.20%
3.30%
2.70%
1.10%
6.80%
5.80%
11.10%
5.90%
9.40%
3.60%
6.70%
2.80%
1.70%
5.80%
4.80%
3.70%
ROE TAN average
ROE ZF average
Comparison of tax impact in the free trade zone regime on the average net margin per industry
Source: Benchmark 2014
Previous free zone regime
New free zone regime TAN
7.23% 7.14%
5.38%
Chemical industry
Previous free zone regime
New free zone regime TAN
4.47% 4.46%
3.29%
Printing industry
Previous free zone regime
New free zone regime TAN
5.69%
5.12%
3.61%
Plastics industry
Previous free zone regime
New free zone regime TAN
3.42%
4.44%
2.82%
Textile industry
Industries in Colombian Free Trade Zone
TOP 10 SECTORS OF RANKED USERS
Sector Number of
Companies1 Transportation and storage 353
2Wholesalers ( Pharmaceutical products,misc.
products and paint, glass products) 116
3Manufacture of chemicals and chemical
products 42
4Professional, scientific and technical activities
(Consulting) 40
5Manufacturing of rubber and plastics
products. 386 Information and communications 347 Retailers 31
8
Administrative and support servicies activities: Call center, janitorial activities,
containers and packaging 309 Food manufacturing 27
10 Apparel manufacturing 24 Total users in the TOP 10 735
Other sectors(metal products,vehicle commerce, machine and especial use manufacturing, other manufacturing
industries) 323
48%
16%6%
5%
5%5%
4%
4% 4% 3% Transportation and storage
Wholesalers
Manufacturing of chemical substances and products
Professional, scientific and technical ac-tivities
Rubber and plastic manufacturing
Information and communications
Wholesalers
Actividades De Servicios Administra-tivos Y De Apoyo
Elaboracion De Productos Alimenticios
Confección de prendas de vestir,
International port of origin
Free trade zone: Logistics operations made easy
Shops and sales points
Arrival at port Carriage
Distribution center in ZF Transport
Transport
DTA / DTM
Total logistic coordination deconsolidation, warehousing , quality control, repackaging, labeling ,
promotionals , containers.Total or partial customs clearance, packing.
Cargo service
Source : ALG – Advanced Logistics Group
Las Zonas Francas eslabón clave en la optimización de la cadena logísticaFree trade zone: more value in the chain of distribution
In Free Zone
TAN entry with payment of duties and VAT on foreign components
Added value in ZF is regarded as national
More favorable tax base: or tariffs on raw materials or final good
Out of Free Zone
TAN entry with payment of duties and VAT for all products exported
There is no way to generate added value before bringing the product to Colombia
without paying taxes
No difference for payment of customs duties when importing
Free trade zone: incentives for initial investment and operating costs
Lower cost to the final product
With in ZF
Equipment and machinery brought from abroad do not pay duty or VAT
Partially nationalization - Transformation and exportation of goods without
nationalization in ZF
Inventory control system monitored by operating user well in line with the DIAN
Out of ZF
All machinery and equipment from abroad pay import duties and VAT
100% nationalization of content on transport document
Conventional methods of inventory control
Free trade zone: incentives for initial investment and operating costs
Key difference in cash flow
• Savings on operations of imports and exports shared by all free zone regimes.
• Decrease in times of distribution and logistics related ro the strategic position of the zones.
• Storage capacity and logistics infrastructure.
Zonas Francas: Beneficios y competitividad para los centros ede distribución Free trade zone: operating efficiency
Distribution centers in Free Zones are the best option for developing Cross docking operations in Colombia and Latin America
Receiving
1. Create a new company in Colombia.
2. Submit a business plan to the Operator User, who will certify your company as a user.
3. Meet the following requirements:
Requirements to set up in a free trade zone
Amount of a new business assets Investment commitment Commitment to job creation
Investment < 500 SMMLVApproximately. US$ 148.000 No requirements No requirements
500 SMMLV < Investment < 5.000 SMMLV
US$ 148.000 < investment < aproximately US$1.5 M
No requirements 20 jobs at implementation of the project
5.001 SMMLV < Investment < 30.000 SMMLV
US$ 1.5 M < investment < approximately US$9 M
New investment of 5.000 SMMLV (US$ 1.5M)
30 jobs at implementation of the project
Investment > 30.000 SMMLVInvestment > US$ 9 M approx.
SMMLV 11.500 new investment (US$ 3.4 M)
50 jobs at the implementation of the project
© Z
FB U
suar
io O
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ZFB USER OPERATOR
and subsidiaries
Bogotá Free Zone Leading user operator in operations in Colombia Free Trade Zones
User operator of permanent free trade
zones
User operator of special free trade
zones
User operator of off shore free trade
zones
Free trade zone regime advisor to
new companies and qualified user
Integrated management system of free trade zones:
Piciz Cloud
Services Portfolio
Source: Matriz Plan Maestro ANDI
Total free trade zone market vs. Zona Franca de Bogotá participation
34%
48%
17%
Caribbean region
Andean region
Pacific region
Special 18 Permanent 14
Special 29Permanent 16
Special 6Permanent 10
COUNTRY TOTAL: 40 Permanent53 Special
ZFB Operations:6 Permanent 14% 38 Special 86%
Zona Franca de Bogotá user operator leader in free trade zone operations
Source: DANE 2014
Total operations FTZ in the country Approved operations ZFB 0
200000
400000
600000
800000
1000000
1200000
974000
625832
64% market share
Features
• Built on Oracle platform, HTML5• Tasks Center functionalities• Control center• Logistics planner• Statistical reports• Development of forms and certificates
Benefits
• Access from any device • Real-time information • Friendly and intuitive design • Optimizes operation and makes it easy for you
to control• Easy integration with other applications
PICIZ Cloud: software for managing free trade zones and industrial parks
© Z
FB D
esar
rolla
dora
201
4
ZFB DESARROLLADORAand subsidiaries.
OFFER:
• FREE ZONE BOGOTÁ
• FREE ZONE OCCIDENTE
• FREE ZONE LA CANDELARIA
• FREE ZONE PACÍFICO
• PROJECTS IN CALI
Zona Franca de Bogotá
27.902 Jobs Total
investment USD $600,000
More than 18 years in operation
Competitiveness
• 1.5 kilometers from El Dorado International Airport.
• Direct access from the freight corridor 13th Street.
• Cluster of more than 320 companies in various industries, logistics, trade, services and technology.
• Economy of scale savings in energy and security
• Connectivity: 15 Broadband providers with last mile installations.
Quality
Experience
Zona Franca de BogotáIndustry and Logistics Offer
Operation Services
• User Rating• Flexible schedules• Site operator• Piciz system • Waste management • 24/7 security • User Service Center
Other services for businesses
• DIAN• Recruitment • Banks• Insurance• Brokerage• Auditoriums and halls
Continued availability of warehouses
Community services
• Health services• Ambulance• Service station• Nursery • Restaurants • Supermarket• Cartage
Zona Franca de BogotáValue Offer
4. ASPECTOS ADMINISTRATIVOS. “Francamente Responsable” Program
Education Employment
Mobility Environment
www.trabajaenzonafranca.com
UnifrancaJob Portal
Business Center
ZF TOWERS 135A - 135B
ZF Towers largest technology and services in Colombia
Data Centers
ZF TOWERS 114D
32 empresas on services and
technology
13.300 persons employed
64.000 m2 constructed
Infrastructure Scalability Access and Human Resource
Development
Sustainability
Zona Franca de Bogotá: Services and Technology Park
Zona Franca de BogotáServices and Technology Park
“Turnkey” solutions for BPO
Offices · Jobs · Services · Technology
Consulting and support on infrastructure and maintenance
• 10.865 m2 of offices for leasing• 30% Occupancy - 7.673m2 available to lease
Office Furniture PC «Plug & Play»Space
Data Center L16A
680 m2 of White area:● 2nd floor: 340m2 ● 3rd floor: 340m2
Available 340 m2
Infrastructure solutions as a services (IAAS)
Zona Franca BogotáServices and Technology Park
Zona Franca OccidenteIndustry and Logistics offer
Mosquera Cundinamarca Avenida Troncal de Occidente22 certified users 400 jobs A 20 km from El Dorado airport
...
Zona Franca OccidenteIndustry and Logistics offer
• Located in Mosquera, municipality of 110,000 inhabitants, know for its industrial vocation by the settlement of more than 500 industries, especially food and construction.
• 3.5 km internal roads, designed for heavy traffic.
• Circuit for large energy users to 34.5 KVA.
• Aqueduct for reuse of treated and rain water in industrial processes.
• Waste water treatment plant.
Zona Franca La CandelariaIndustry and Logistics offer
Vía Mamonal Km 9 Cartagena 5 minutes from the port of Cartagena 55 Users Petrochemical cluster Robust energy support
. . .
• Flexibility spaces• Bioclimatic ventilation system• Maximum use of natural light• Packing area for each warehouse• Offer of refrigerated Warehouses
Zona Franca Candelaria Industry and Logistics offer
• A 1,5 Km from the nearest dock, 8.5 km from the port Contecar, 15 km from the port Authority.
• Major seaports located in the area of influence.
• Strategically located in the largest petrochemical and plastics complex.
• Space to generate links with the supply chain and to take advantage of its geography, port and logistics.
• Immediate vicinity of raw material suppliers.
Zona Franca del PacíficoIndustry and Logistics offer
Vía Jumbo Km. 6 Palmira - 5 minutes from the airport Alfonso Bonilla - 39 users10 minutes from Yumbo industrial center
. .
Zona Franca Pacífico Industry and Logistics offer
.
• Road infrastructure that provides access to the main centers of consumption in the country.
• Water Treatment plant.
• Electrical substation.
• Web control of cargo entering and exiting.
• 9 meter wide roads to enter and exit.
Cali – Zona Franca PacíficoServices and Technology
Versalles BPO : Offices and Jobs
Pacific Free Zone White Area for Data Center4.812 m2 of built area
• Two blocks from MIO THE AMERICAS bus terminal
• 4 routes of public buses• Easy access to main routes• Universities• Shopping centers• 1km from Cali bus station
Av 2E Calle 25 Norte, Versalles- Cali
