General Overview

2. General Overview • “Queretaro state has a privileged geographical location in the Central Mexico region, providing a wide influence range”. • More than 45 million of inhabitants in a 135 miles ratio.

3. Economic Indicators GDP Distribution National • National • Queretaro Manufacturing Industry Distribution Per Capita Growth GDP growth (%)

4. Demographic Profile * January- March 2008

5. Labor Profile 8.1% 10.5% 6.1% 24,849 1.7% 5.7% 29,297 15,941 14,151 4,129 Jobs Creation Growth Wages *Mexican Pesos Daily salaries, without benefits

6. Queretaro, Quality of Life • Government made the investmentininfrastructure as well as an adequate urban development a priority for the development of the State • Acueducto II • New road infrastructure • City of Arts project • Queretaro is considered the 3rd safest state of all Mexico • Weather 50º- 80°F – 10° -27°C, no need tocool or heat industrial facilities. • Excellent balance between an industrial city and a city considered Cultural Heritage of Humanity • As a result of its intensive manufacturing industry, Queretaro has an Extensive Foreign Community. • Queretaro has International Schools including all grades. • Queretaro has a great variety of recreational facilities and residential areas, including: • 12 Country Clubs and 7 Golf Courses

7. Superior Education, Research and Development Research and Development Centers

8. International Trade * ACE: Economic Complementation Agreements

9. Foreign Direct Investment

10. Infrastructure

11. Infrastructure – Industrial Parks 19 Industrial Parks & Zones in the State Services: • Electric Energy • Water • Natural Gas • Wastewater Treatment Plant • Private Security • Firefighting Infrastructure • Rail Spur • Availability of Qualified • Labor Force

12. Infrastructure – Industrial Parks

13. Autoparts and Home Appliances Clusters Potential Market of 45 million consumers in a 217 miles ratio

14. Examples from the Main Sectors Food and Beverages Home Appliances Automotive Aerospace

15. Automotive Industrial Sector

16. Aerospace Industrial Sector

17. Main Aerospace Cluster in Mexico • Courses: • Electric Assembly • Structural Assembly • Machining • Sheet Metal • Superior Technician in Avionics • Aeronautic Manufacture Engineer Aerospace Industrial Park An Industrial Park dedicated to the Aerospace Sector. Benefits: Preferential lease rates, no hook up fees for electric energy, inside the International Airport of Queretaro.

18. Industrial Sector Home Appliances

19. Industrial Sector Software - IT

20. Strategic Programs • Commercialization • Suppliers Development Program • Participation in National and International Exhibitions • Business Support Programs Proexport and Disexport.

21. Certified Manufacturing Industry Micro, Small and Mid Sized Companies with Quality Certifications • More than 400 Companies with Quality Certifications: • ISO 9000 • ISO 14000 • ISO/TS 16949 • NADCAP • AS 9100

22. Rankings and Awards

23. State’s support • Counseling for Government Procedures and Regulations • Approval for the establishment of a new company (Application Form). Overseeing of the incentives and permits approval. • Outlining Work Schedules • Work schedules and on-site land, industrial facilities and park visits with the necessary arrangements for executives. • Networking Program • With services providers such as attorneys, contractors, head hunters, accountants, etc. Support services regarding industrial costs, human resources, migratory affairs, investment requisites, legal and taxing aspects, as well as assistance while getting settled in Queretaro State.

24. State’s support • Public Property and Commerce Registration • State tax equivalent to 0.6% over the value of the property plus 25% brand new companies that start construction or acquire operating facilities could get an exception or refund up to 100%.Companies already established in the State that purchase real estate as part of their patrimony, will only cause 50% of the corresponding tax. • Real State Transfer Tax • Municipal tax equivalent to the 2% over the value of the property plus 25%. New companies that begin construction or acquire facilities, as well as the established companies that acquire facilities and thus generate or maintain jobs, may obtain reductions of up to 80%. Each municipality will determine the application of this reduction.

25. State’s support • Accelerated Depreciation of Fixed Assets • Examples: • Desk personal computer, equipment and laptops, servers, printers, optical scanners, graphics units, bar-code readers, digitizers, external storage units and concentrators of computing networks: • Normal Depreciation: 30% / Accelerated Depreciation: 88% • Manufacture of motor vehicles and their parts, manufacture of metal products: • Normal Depreciation: 8% / Accelerated Depreciation: 69% • Equipment for research of new products or development of technology: • Normal Depreciation: 35% / Accelerated Depreciation: 89%

26. State’s support • Training Programs • BECATE • Job training program for the unemployed people that grants 1 up to 3 minimum wages during a period of 1 up to 3 months. The requesting company is committed to hire a set percentage (80%) of the trained workers.

27. Secretariat of Sustainable Development Blvd. Bernardo Quintana No. 204 Col. Carretas, Queretaro, Qro. 76050 Tel. +52 (442) 211 68 00 www.queretaro.gob.mx/sedesu