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HERE’S HOLLAND

Aerospace in the Netherlands: OPENING THE GATEWAY TO EUROPE Leading international aerospace companies such as Bombardier, UTC Aerospace Systems, GE Aviation, Mitsubishi Aircraft, and CAE have already chosen the Netherlands as a major location for their European operations.

They have established their European headquarters, shared services, MRO activities, spare parts logistics, manufacturing, R&D activities, and/or training facilities in the Netherlands. With the support of renowned universities and leading research institutions, the Dutch Aerospace sector has the commitment to continuously innovate. This gives aircraft manufacturers, airlines and operators a global competitive advantage.

The Dutch are internationally oriented by nature, and know instinctively how to anticipate and fulfill the needs of civil and military aircraft manufacturers, airlines, and operators. You can be sure that the Dutch government, at all levels, as well as any Dutch partners involved, will facilitate your aerospace business ideas to the best of their ability. The Netherlands also has an enviable reputation as a top business location. The country has a high standard of living, whilst maintaining an affordable life for its residents.

OEM-Independent World-Class Aerospace Cluster

While maintaining strong relationships with OEMs, the Dutch aerospace sector is completely independent. This neutral position offers room to support any aircraft manufacturer with ambitious plans, providing a flexible, fast, and efficient network. That’s why more than 150 aerospace companies have chosen the Netherlands. Our open and inventive business culture boosts your ability to innovate, and keeps you globally competitive.

Your European Gateway

Key advantages of the Netherlands include its strategic geographic location in the middle of the main European markets, a dense, highquality infrastructure, the Port of Rotterdam, and Amsterdam Airport Schiphol, ranked as Europe’s best airport for both cargo and passenger transport. In addition, its key role in European logistics makes the Netherlands the most efficient country for European distribution of spare parts and related MRO activities. Our international experience in delivering affordable, reliable logistics maximizes global readiness, and reduces operational costs for your customers.

A Competitive Tax Climate and Business-Friendly Authorities

In comparison with other EU countries, the Netherlands is renowned for its competitive tax climate. The corporate tax rates are lower in relation to most of its European neighbors.

Other tax advantages include its low statutory corporate income tax rate and the possibility to conclude advance tax rulings. In regards to R&D, companies can benefit from an effective corporate tax rate of only 5 percent. The Dutch government authorities that are key to your potential logistics and MRO operations operate in a transparent and reliable way to facilitate business.

HERE’S HOLLAND Your Competitive Advantages in the Netherlands:

• Strategic geographic location as European gateway • Transparent, reliable and businessfriendly authorities • Best logistics performance in Europe • Most efficient country for European distribution of spare parts • Independent, neutral aerospace industry • Excellent MRO facilities • Outstanding aerospace training facilities • Renowned knowledge & research centers • Skilled and stable workforce • Leading role in quest for sustainable solutions • Profitability for aircraft parts manufacturing is second highest worldwide (after France) • Second highest labor productivity in Europe (after UK) • Strong, collaborative aerospace cluster • One of the lowest percentages of days lost to ­strikes within EU. • Flexible labor regulations and relations • Competitive office rents

A Strategic Location: Easy Access for Your Customers The Netherlands is located in the middle of the main European markets: UK, France and Germany. Meeting business demand and keeping in touch with what’s most important — your customers — is a major success factor in international business. Ask any North American company why they’re in the Netherlands and they’ll tell you: proximity to customers and target markets. The Netherlands’ dense, high-quality infrastructure offers fast connections, no matter how you’re travelling: by air, road or rail. 95% of Europe’s major markets can be reached within 24 hours. There’s no better way to access Europe than through its front door: the Netherlands.

Facts: • NL first place in the DHL Global Connectedness Index 2012 • Amsterdam Airport Schiphol named best European Airport 2013 • Regional airports handle business flights as well as many charter lines to European destinations (Rotterdam/The Hague Airport, Eindhoven Airport, Maastricht-Aachen Airport, and Lelystad Airport) • Regional airports also function as fast and efficient multimodal logistic hubs • Easy access to Brussels Airport (Belgium), Dusseldorf Airport, Munster Airport, and Cologne Airport (Germany) • High speed train connections to London, Paris, Brussels, Frankfurt, Basel and Berlin

• The Port of Rotterdam is Europe’s largest seaport • The Netherlands is number 6 in Akamai’s ranking of countries with the fastest internet connections 2011 • A state of the art, 100% digital, advanced fiber-optic network • Home to Europe’s largest internet hub Dutch Aerospace at a Glance: The Netherlands is the best location to conduct aerospace business in Europe. The Netherlands offers a complete package of services and products, including line and base maintenance, engine and component repair, aircraft painting, engineering, spare parts provisioning and trading, logistics, aircraft overhaul and conversions, composites repair, testing, control, and aircraft end-of-life solutions. With more than 150 companies employing 17,000 people, and a yearly turnover of 2.5 billion Euros the Dutch aerospace sector is the sixth largest in Europe. From 2006 onwards 2010, the aerospace industry witnessed a significant annual growth in employment of around 5%.

Strong Competitive Subsectors About 80% of the activity in the Dutch aerospace industry is civil aviation related, and 20% military. MRO & Logistics is the dominant sub-sector in the Netherlands (66%), followed by production (29%), research institutes, trade and engineering. R&D investments are around 8%, including product development.

Leading Position in R&D: Holland’s open innovation approach and well organized public-private partnerships, with the support of renowned universities and leading research institutions, offer a favorable environment for companies looking for business acceleration. Foreign companies are responsible for 30% of the investments in R&D in the Netherlands.

Excellent Training and Simulation Facilities The Netherlands offers outstanding training and simulation facilities (such as wind tunnels and simulators) for civil and military aviation.

Some of the key reasons that training companies choose to conduct training activities in the Netherlands include the excellent hotel facilities, multilingual skilled labor force, and the network of direct flights to and from Amsterdam Airport Schiphol and the Dutch regional airports.

Reliable Production- and Engineeringforce The Dutch aerospacesector involves large corporations as well as SMEs. They take part in major development programs at Airbus, Boeing, Gulfstream, Bombardier, and Lockheed Martin. Manufacturing activities are mostly focused on design, engineering, manufacturing of high-end innovative components and subsystems, and on materials and coatings.

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Experienced MRO&Logistics Player Its leading position in logistics has made the Netherlands the most efficient country for the distribution of spare parts across Europe. This is reflected by the fact that many aerospace companies and parts distributors have a logistics facility here. It has made the Netherlands an experienced MRO-player with a world class level of performance.

The Dutch MRO sector focuses on a variety of civil and military aircraft, aero engines, and helicopters. The Netherlands is working to become a global leader in MROprocesses. The Dutch Institute World Class Maintenance was established for this purpose. Both current and future MRO providers can benefit from the results.

In the Netherlands, MRO is distributed over several, strategically chosen, locations, each with its own specialization and competences: msterdam Metropolitan Area: A MRO, Logistics, Training, and Office Support Functions KLM Engineering & Maintenance is one of the world’s largest aircraft maintenance companies affiliated with an airline, and is a leader in engine maintenance and spare parts provision. Around 5,000 employees work there. More than 100 aerospace companies are based in the Amsterdam Airport Area, especially in the field of MRO (Bombardier, Nayak) logistics (Aviall, GE), training (CAE, FSC), and office functions (ILFC, Aercap). The Amsterdam Metropolitan Area has a second airfield, Lelystad airport, only an hour’s drive from Amsterdam Airport Schiphol.

The Brabant Military Aerospace & Maintenance Cluster: Two Parts of One Offer Woensdrecht-Aviolanda: This is the Dutch center of excellence in the field of Military Fixed Wing Maintenance & Repair, situated in the western part of the province of Brabant.

Currently the headquarters and main MRO&U and logistics hub for the Royal Netherlands Air Force, the site benefits from the Air Force’s

existing infrastructure, and is thus able to offer facilities at a competitive price point.

Gilze Rijen - Gate2: This facility hosts the Rotary Wing specialist that’s situated in the Mid-Brabant Aerospace & Maintenance cluster. Home to the Royal Dutch Air Force Helicopter fleet and RWTC (Rotary Wing Training Centre), Gate2 is ideally positioned for Helicopter MRO activities as well as training and simulation tools for both maintenance and flight personnel.

Maastricht Maintenance Boulevard: Regional and Business Aircraft Maastricht focuses on the regional and business MRO aircraft markets. The expertise of the participating MRO companies covers the entire spectrum of services within line and base maintenance and conversion.

Maastricht Maintenance Boulevard has the appropriate business volume and critical mass to offer customers a total care concept. An example is the Total Care Nose to Tail program. This concept offers a total MRO solution with a reliability guarantee for a fixed price per flight hour. The Aviation Competence Centre for Education is Part-147 Certified in English, but also provides training on composites repair and propeller systems.

Testimonials Here are some enthusiastic testimonials, from major prime contractors and equipment manufacturers who have already landed in the Netherlands, speaking about their experience of doing business with the Dutch aerospace cluster.

Nayak Aircraft Services: Amsterdam Airport Area “An aircraft only flies on time when everything comes together in time: spares, tools, manpower, hangars. The spider in this web is Amsterdam Airport Area.”

Mitsubishi Aircraft Corporation Amsterdam Airport Area “An important consideration for us was that the Amsterdam Metropolitan Area boasts one of the most modern and best-equipped airports in the world. We couldn’t have come up with a better calling card than that.

Many of our potential customers pass through Amsterdam Airport Schiphol almost every week.”

Boeing - New International Chinook Training Facility at the Rotary Wing Training Center (RWTC) “Partnering with the RWTC means we can now provide high-quality training to our international customers closer to their home base, saving them time and money.”

Boeing - Partnership with Logistics Center Woensdrecht (LCW) “Boeing has partnered with the Dutch Ministry of Defense for decades through aircraft programs including those for the Chinook and Apache helicopter. We have demonstrated our international experience in delivering affordable, reliable logistics and MRO solutions to maximize global readiness for our customers.”

UTC Aerospace Systems – Customer Support Center at Maastricht Maintenance Boulevard “Maastricht Airport and its surrounding infrastructure provide the best possible means to serve our regional customers located in Europe, Africa, and the Middle East.”

Pratt & Whitney – IAE V2500 Engine Distribution Center at Maastricht Maintenance Boulevard “The central location in Northern Europe and the logistics infrastructure in the region are two of the key decisive elements in the selection process.”

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The Netherlands: Dedicated Support Now and in the Future

Amsterdam region Amsterdam Airport Area www.aaarea.nl Paul van den Brink, tel: +31 20 206 66 51

Brabant region (including Aviolanda / Gate2) BOM Foreign Investments www.foreigninvestments.eu Bodo de Wit, tel: +31 88 831 11 46 Ben Engel, tel: + 31 88 831 11 16

Maastricht region Maastricht Maintenance Boulevard www.maastrichtmaitenanceboulevard.nl Jaap Heukelom, tel: +31 43 328 02 80

Contact Netherlands Foreign Investment Agency (NFIA) www.nfia.nl Maarten Brouwer, tel+ 31 6 50 28 43 04 The Netherlands Foreign Investment Agency (NFIA) is an operational unit of the Dutch

As much as we believe that the Netherlands offers a highly strategic location to your company, we also believe that your company would be of major strategic importance to the Netherlands’ aerospace industry. Therefore you can be sure that the Dutch government, at all levels, and any partners involved, will facilitate the potential set up of your business, to the best of their ability. This brochure lays out the many advantages of locating your potential business activities in the Netherlands.

We offer you an opportunity to further investigate the potential of your business case together with the Netherlands Foreign Investment Agency (NFIA), the Netherlands Aerospace Group (NAG) and the aerospacepartners in the regions of Amsterdam, Brabant and Maastricht, quickly and on a confidential basis.

Next steps include: • The setting up of preliminary in-person meetings to provide you with up-to-date, personalized information on the Netherlands in general, relevant business locations, Dutch legislation and tax regulations, labor issues, permit procedures, governmental incentives and many other subjects • Offering personal guidance and counseling, starting in the country of origin, regarding site selection and logistics strategies, tax structures, labor, and permits • Arranging contacts with relevant business partners, government authorities, a variety of Dutch networks and service suppliers, and other relevant contacts in the investment process • Organizing customized fact-finding trips in close cooperation with our network of regional economic development partners • Presenting concrete solutions that simplify and optimize establishment in the Netherlands

Disclaimer: The information contained in this document has been compiled with great care by the NFIA and the NAG and is accurate to the best of their knowledge at the time of compilation. However, this document is provided for informational purposes only and no rights can be derived from it.

Ministry of Economic Affairs. The NFIA is a pivotal advisor for companies considering establishing or expanding their European presence to achieve business goals. NFIA’s services are rendered free of charge, without obligation and on a confidential basis.

Contact Netherlands Aerospace Group (NAG) www.nag.aero Frank Jansen, tel: +31 79 353 13 56 The Netherlands Aerospace Group (NAG) represents the Dutch aerospace industry. NAG is recognized as the sector’s contact with the government, the sector’s representative within the European ASD, and the sector’s face in the global market. In short, NAG supports its members through knowledge, positioning, and representation.