WheelTug PLC Pitch Deck | Investor Insights | April 2024
Flanders masters of innovation john vz-fit-2012 10 31
1. FLANDERS:
MASTERS IN INNOVATION
John Verzeele, Oct. 31, 2012
Taipei
2. Belgium’s tale of the tape
Brussels Capital 10% of
population
2% of Belgian exports
Flemish Region Walloon Region
58% of population 32% of population
82% of Belgian exports 16% of Belgian exports
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3. FLANDERS: Key Figures
Flanders: a prosperous region
with an open economy in the core of Europe
Population: 6.28 million (= 57.6% BEL)
Language: Dutch (NL)
Surface: 13.521 km² (= 45% BEL)
GDP: €194 billion
GERD: €4.15 billion (+- 2/3 of BEL)
% GERD/BBP: 2.12% (2009)
Total public budget STI policy: €1.7 billion of which €1.07 billion R&D
The region has constitutional competences on
3
research, innovation and economic policy
4. Strategic Location in Europe
Unique location at European
crossroads
Proximity to EU headquarters of
major commercial & official
organisations
The port of Antwerp is Europe’s
n°2, its most centrally located
one, and port of entry for
thousands of products.
5. Belgium at the heart of Europe EU=EU-27
members
750 km
Flanders offers logistics
€ 6 Bn GDP (67%)
operations access to the 500 km
largest one-day-market in € 3,7 Bn GDP (42%)
Europe: main markets can 250 km
be served within 24 hours € 1,5 Bn GDP (17%)
54 Mio consumers (12%)
131 Mio consumers (29%)
236 Mio consumers (53%)
Total EU population:
Total EU GDP:
490 Mio
€ 12.00 trillion
Source: PricewaterhouseCoopers,
Report 2004
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7. Main drivers for R&D
Knowledge driven
Customer market
History
Skilled labour presence
Source: Buck Consultants International 2009
8. Best quality for education and schooling
(The Global Competitiveness report World Economic Forum 2012)
Ranking Primary Educational Math and Management
education System Sciences Schools
Belgium 2 6 2 1
Netherlands 14 10 9 10
Germany 36 17 48 36
France 28 34 15 5
UK 23 20 43 2
Source: 2012 03-04 - 170160
9. Reading skills + best foreign language skills
PISA assessment score 2011
519
Flanders
508
Netherlands
506
Belgium
497
Germany
496
France
494
UK
Source: Education at a glance, OECD Indicators 2011
9
09-07 - 030125
10. Mathematics achievement score
PISA assessment score 2011
Flanders 537
Netherlands 526
Belgium 515
Germany 513
France 497
UK 492
Source: Education at a glance, OECD Indicators 2011
10
09-07 - 030125
12. 2012 Survey of Japanese companies
(BJA)
93% of Japanese companies think that the level of
technological education in Belgium meets the needs of their
business.
100% of the Japanese companies believe that the level of
management education in Belgium meets the need of their
business
94% of the Japanese companies agree that the level of
language skills meet the needs of their business
13. High quality and availability of R&D
The Global Competitiveness Report World Economic Forum 2012
Ranking Availability Capacity for Quality of Availability
of latest innovation scientific of scientists
technology research and
institutions engineers
Belgium 8 14 5 13
Netherlands 6 10 8 17
Germany 20 3 10 41
France 11 8 15 11
UK 7 13 3 14
Source: 2012 03-04 - 170160
14. Most popular study branches in
Flanders 2011 - 2012
students seem to prefer to choose science and technology
as a major
University of Antwerp
Biomedical sciences: +31%
Commercial engineering: +28%
KU Leuven
Chemistry: +105,88%
University of Ghent
Chemistry: +35,71%
ICT: +35,13%
VUB Brussels
Engineering: +14%
UCL Limburg
Commercial engineering: +30%
Civil engineering: +20%
Veterinary medicine: +34%
16. Research: a proven track record of
market-driven innovation
Over the last few decades our dense network of universities
has been complemented by market-driven strategic research
centers in selected fields
1986 IMEC 1993 VITO 1996 VIB 2004 IBBT/i-minds
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17. Flanders: The 6 domains of expertise in ICT
(6/6)
Software products
• LMS, Materialise, Inventive Designers, Real Dolmen, ACA-
IT-solutions, Invenso, Produmex, Metris, Helios-IT, …
• Speech & Language Technology: Nuance,…
• Gaming: Larian Studios
• Agoria ISV (Independent Software Vendors-platform)
20. Why ‘smart specialisation’ is important
for Flanders
‘Flanders in Action’: strategic framework for a new growth path
Future project (starting 2006) of the Flemish government, supported by
+100 stakeholder organisations (‘Pact 2020’),
Aiming at a ‘top 5 region’ position in Europe = transition towards an
innovation driven growth model,
Consensus that STI investments should be focussed on ‘spearheads’:
domains that can position Flanders in future value chains with important
societal and economic impact.
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21. Focussing on 10 spearhead initiatives in 6 ‘clusters’
SWOT Analysis of EU Foresight Study with
Flanders vs EU 15 key areas
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22. NEW INDUSTRIAL POLICY: an integrated
framework
White Paper ‘New Industrial Policy (27 May 2011):
Integrated policy platform for economic transformation
Productivity
&
Competitiveness
A new Productivity Offensive Policy
• Increase knowledge productivity in
clusters (critical mass and
specialisation) Industrial
New Infrastructures
Innovation Industrial Policy
• Support ‘lead companies’ Policy
Policy
‘lead markets’ and
‘lead clusters’
• Factory of the Future
Competences
&
Transformational Sectoral Policy Labour Market
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Policy
• Focus on transformation strategies
based on value chains, clusters
and grand projects
23. Advanced manufacturing
Advanced manufacturing:
- flexible tailor-made production
- specialized high added-value products
- first series before mass production
Belgium, at the crossroads of different cultures,
offers the ideal test market for new products
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24. Daikin
1. specialized high added-value products:
High end products in Ostend (Flanders) vs
low end production in Czech Republic
2. first series before mass production
The heating and airco systems can be tested in
simulation for the climats in more than 30 countries
ranging from – 25 degrees (Nordic countries) to + 60
degrees for heat waves and African countries
3. flexible tailor-made production:
Special systems for wine culture
30. 1. Patent income deduction
Deduction of 80% of the income from patents
from the taxable basis, resulting in an effective
tax rate of maximum 6,8% on this income
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31. 2. Investment deduction
Investment deduction for R&D related inv.
deduction of 15,5% on the investment
value (in one shot)
OR 22,5% on the annual depreciation
(spread deduction)
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32. 3. Exemption from withholding tax on
the remunerations of researchers
•Principle: the salary withholding tax is normally retained on the
remunerations paid to the researcher, but the amount of tax so
retained must not be totally paid to the Revenue Collector (=
extra financial means for the employer) 80 % exemption !
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33. IWT: Subsidies
IWT wants to encourage companies in Flanders to innovate in various ways.
1.Subsidies: IWT has a wide range of subsidy programs in fundamental, basic and
Applied research, where can make use of, as individual company, as partner of a
research institute or in collaboration with other companies, universities, etc…
2.Funding: financing innovative projects of companies, research centres, organizations
and individuals through assignments set by the Flemish Government.
INCENTIVE between 25% and 70%
of your project
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34. Financial expertise and innovation
Belgium
has a very long tradition of
international trade :
Origin of Stock Exchange
Bruges 14th century (1309)
000505
35. 2012 FDI inflows (UNCTAD) in billions of dollars
Ranking
1. United States 226,9
2. China 123,9
3. Belgium 89,1
4. Hong Kong 83,1
5. Brazil 66,7
6. Singapore 64,0
7. United Kingdom 53,9
8. British Virgin Islands 53,7
9. Russia 52,9
10. Australia 41,9
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37. Tax advantages: unique system
-Notional Intrest Deduction
-Ruling
-No withholding taxes on dividends
38. 1. Notional Interest Deduction
ForeignCo Bank Loan
Capital injection 200
Interests received : 10
BelCo N.I.D. : -6 (200 x 3%)
Income : 4
Corp. tax = 4 X 33,99% = 1,35
Effective tax rate : 13,5%
Interest 10 Loan 200
39. Dividend withholding tax exemption
Parent company
(treaty partner of
Belgium)
• No WHT • 10% shareholding
• No LOB • 12 months
Belgian Subsidiary
40. 40
Belgium
Effective (Average) Corporate Tax Rate (ECTR) 2009*
*(based on asset and source of finance)
Especially in Belgium, the ECTR is considerably below statutory tax rates (-9,3%)
Sources : Report 2009, made by ZEW (Centre for European Economic Research) for the EU Commission
Project : Taxud/2008/CC/099, Mannheim and Oxford, October 2009
42. The effective corporate
tax rate in Belgium is
one of the lowest in
the EU! This is
confirmed by the
Institute of
International and
European Affairs!
000501
43. R&D practical example
Example
Manufacturing company with a R&D division:
Share capital: 100 000 (of which 20 000 = contributed patent value)
Return on equity: 12%
Net profit: 12 000
(of which 3 000 = patent income ; 9 000 = product revenue)
To deduct
Invest. ded. on patents: 15,5% x 20 000 = 3 100
Patent Income Ded.: 80% x 3 000 = 2 400
N.I.D. 3% x 100 000 = 3 000
Taxable basis: 3 500
Corporate Tax: (3 500 x 33,99%) = 1 190
Effective tax rate: 9%