A Global Financial Centre

Calgary: 2014

There’s an energy in Calgary that

exhilarates, invigorates & motivates. It’s a place of big skies and big ideas. There is opportunity here — to start a business, start a new life or start an adventure. And everyone is welcome to be part of the energy.

Home to over a million residents, Calgary is Canada’s third most populous city and fifth most populous metropolitan area. In fact, the region attracted more than 45,000 new migrants in 2013. Ranked as the fifth most livable city in the world, Calgary has the second most-educated population in Canada with approximately 70 per cent of the population holding a post-secondary certificate, diploma or degree. Calgary also exhibits the highest labour force productivity in the country and residents enjoy the highest personal income per capita of Canada’s metropolitan areas.

Calgary’s position as a global energy centre, the education levels of the population and the high rate of business start-ups combined with endless business opportunities, helped Calgary rank second in the Top 10 North American Cities of the Future (FDI Magazine 2013)

The Calgary region attracted over

45,000 new migrants in 2013, more than half of which which were new immigrants to Canada.

Calgary; a safe and secure destination for foreign investment The energy companies headquartered in Calgary are fortunate to operate in Canada’s fiscally and politically stable environment. It’s easy to conduct business in Calgary due to a well-connected business community. Royalties are competitive and the provincial government is committed to ensuring they remain so into the future. Regulatory burdens are minimized as the regulatory system is precedent based, largely rules driven, fair and consistent, and provides all parties with the right to be heard or have their concerns addressed.

5th Calgary ranked the

most livable city in the world the past five years (Economist Intelligence Unit, 2010-2014)

Personal income per capita, 2013

Calga

ry

$54,577

Edm

onto

n $48,426

Ottaw

a $44,972

Toro

nto

$41,898

Vanc

ouve

r $41,166

Mont

real $37,6

45

(Conference Board of Canada)

Calgary has the highest rate of labour force participation and employment, and has the lowest unemployment rates in Canada. The average annual participation rate for the past five years (2009-2013) is 75 per cent and unemployment in September 2014 was 4.6 per cent.

Calgary posted the second highest GDP growth and highest employment growth in Canada over the past 10 years and is one of the top performing economies in North America. The Calgary region posted GDP growth of 3.7 per cent in 2013, while generating 24,200 jobs, 11 per cent of the national total.

At 25 per cent, Alberta’s combined federal and provincial corporate tax rate is lower than the Canadian average at 27 per cent and significantly lower than the average American combined federal and state rate at 39 per cent. (Government of Alberta)

Total employment growth Canadian Metropolitan Areas 2004-2013

Calga

ry 27.8

%

Edm

onto

n 27.4

%

Ottaw

a 16.1%

Toro

nto

15.3

%

Vanc

ouve

r 14.4%

Mont

real 12.0

%

(Statistics Canada)

Calgary boasts the highest number of corporate head offices and has the highest number of small businesses per capita in the country.

Canada has the lowest corporate tax rate in the G8

Strength of Calgary’s financial services sector While oil and gas is the driving force behind Calgary’s buoyant economy, the growing financial services sector has, in its own right, become internationally recognized and is a major contributor to the city’s economy.International energy companies increasingly look to Calgary not just for capital investments or mergers and acquisitions, but also for advice on structuring complex deals. This has resulted in the financial services sector in Calgary handling, on average, 12 per cent of global energy deal volume over the last five years. At the same time, Alberta’s energy sector accounted for only 4.7 per cent of global production.

In March 2014, Calgary ranked 22 out of 77 global financial centres on the Global Financial Centre Index.

Global energy deal flow Total Announced Market Share (%) Total Announced Market Share (%)

Deal Volume World Deal Deal Number World Deal2008-2013 (US$MM) Volume NumberCalgary 264,809.95 12.0% 1330 9.3%World 2,214,072.72 100.0% 14297 100.0%

The deals handled by Calgary’s financial services sector serves to secure funding for the largest share of capital expenditures in Canada. The capital needed to finance the energy sector and the revenue it generates cannot be overstated – no other sector in Canada requires the capital infusion that the energy sector does. The Conference Board of Canada estimates $364 billion will be spent in the next 25 years on oil sands production, maintenance, pipelines and upgraders.

The volume of transactions conducted in Calgary is expanding and now extends well beyond the energy industry. As a result, there is a certain sophistication and knowledge that operates within the financial services sector. From 2008 to 2013, Calgary accounted for 25 per cent of total deal volume in Canada (across all sectors), second only to Toronto.

And with Calgary housing the largest concentration of head offices per capita, the access to key decision makers offers Calgary a unique competitive advantage that cannot be beat by many other cities.

Capital Investment in Alberta2010-2014 ($Billions)

(Statistics Canada)

36.7

22.3

8.913.5

46.7

22.6

8.312.5

54.2

25.8

7.514.9

55.3

31.78

16.2

57.1

32.37.7

16.7

2010 2011 2012 2013 2014

120

100

80

40

20

0

Housing InstitutionsNon-Energy Oil and Gas

(Bloomberg)

Calgary has one of the most educated populations in Canada with the second highest level of educational attainment of people aged 25 – 64 within the major Canadian cities. (2011 National Household Survey) This results in a highly skilled labour pool for the financial services sector.

While the Calgary financial services sector provides six per cent of total employment, it generates 15 per cent or

$16.74 billion of the cities total GDP. (Calgary Regional Partnership). This reinforces the significance of the sector to the Calgary economy.

Employment by sub-sector, Calgary Metropolitan Area 2013Lending services 12,100Security and commodity exchange services 7,300Insurance carriers and providers 9,900

Number of companies by sub-sector, City of Calgary June 2014Lending services 914Security and commodity exchange services 5528Insurance carriers and providers 804

Canada provides a fiscally and politically stable environment for Calgary’s robust financial services sector. The Economist Intelligence Unit rates Canada as the #1 place to do business in the G7. (Industry Canada)

Canada ranks in the top five in a number of indices in the World Economic Forum’s Global Competitiveness Index (2013-2014)

1st soundness of banks

1st number of procedures to start a business

4th strength of investor protection

1st inflation, annual % change

Financial success draws financial leaders. Calgary is home to major Canadian financial institutions, investment firms and asset management and private equity firms. The Bank of Montreal, CIBC, Royal Bank of Canada, Scotiabank and TD Canada Trust all have a significant presence in Calgary. Canadian investment firms with offices in Calgary include Acumen Capital, Canaccord Capital, FirstEnergy Capital and Peters & Co.

In addition to Canada’s financial leaders, a growing number of international banks now have a presence in Calgary.

Global banks with operations in Calgary include Bank of America, Barclays Bank, BNP Paribas, Deutsche Bank and HSBC. More recently the Bank of China, Industrial Commercial Bank of China, Mizuho Bank and United Overseas Bank have also opened offices in Calgary.

Calgary has also attracted a number of investment, asset management and private equity firms, crucial to securing capital for large projects. Canadian based investment and asset management firms with offices in Calgary include Alberta Investment Management Corporation, ARC Financial, Fidelity Investments, Jarislowsky Fraser, Matco Financial and Mawer Investment Management. Global institutions in Calgary include, Morgan Stanley and Goldman Sachs. KKR, a leading global investment firm, expanded to Calgary in 2014, reinforcing Calgary’s position as a global financial centre.

17

of the top 20 global investment banks have a presence in Calgary. (Bloomberg Markets Magazine, April 2014)

Calgary Economic Development is a conduit, connector, catalyst and story teller. We are opportunity-makers, helping to spark and fuel Calgary’s growth.

• centrally located in downtown Calgary on Stephen Avenue Walk

• landing pad for foreign companies• launching pad for local companies

• Temporary business desk space available• Meeting facilities • Networking and events

Our job is to connect people with resources that can help them grow their careers or businesses, thrive in new locations or markets, and feel at home in our community. We offer a wealth of information to help everyone succeed and we tirelessly promote Calgary, in Canada and around the world. We’re exhilarated about our role in shaping and sharing Calgary’s story and we’re proud to be part of the energy.

A business resource your organization should know about:

Global Business Centre:

Calgary Economic Development 731 1st Street SE Calgary Alberta Canada T2G 2G9

ph: 403 221 7831fax: 403 221 7828toll free: 1 888 222 5855

calgaryeconomicdevelopment.com

calgaryeconomic

Calgary Economic Development

@calgaryeconomic

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Action Calgary

Gold

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Action Calgary is a corporate partnership program that engages Calgary business leaders to influence the movement of our economy.

The thought leadership and generous financial support from this group of visionary Calgarians supports Calgary Economic Development in delivering award-winning initiatives and programs, drive economic and individual prosperity, and better compete on the global stage.