BROCHURE GLOBAL CITIES 2014

GLOBAL CITIES INVESTMENT MONITOR 2014 NEW RANKINGS, TRENDS AND CRITERIA

Greater Paris Investment Agency


GLOBAL CITIES INVESTMENT MONITOR 2014 THE GREATER PARIS INVESTMENT AGENCY AND KPMG2 3

GLOBAL CITIES INVESTMENT MONITOR 2014 THE GREATER PARIS INVESTMENT AGENCY AND KPMG


WHY THIS MONITOR?

THE GREATER PARIS INVESTMENT AGENCY

The Greater Paris Investment Agency was established as a non-profit organization more than twenty years ago by the Paris Chamber of Commerce and Industry. With over a hundred major French and international firms, our membership guarantees our independence. Our missions include promoting Greater Paris abroad and lobbying political and economic decision-makers.

The Greater Paris Investment also specializes in benchmark studies and surveys designed to compare present and future attractiveness, and assess the real and perceived image of Greater Paris. It is a major player in the Grand Paris project.

The Monitor was designed to provide international decision-makers with arguments on which to base their future investments. The Greater Paris Investment Agency presents the studys results during road shows in countries such as Brazil, the United States, Japan, Korea, the Gulf Countries, Russia, India, China and Turkey.

The Monitor is also a reliable tool for local, national, and international policymakers. It has also helped the Greater Paris Investment Agency to attract new investors, foster the development of innovative clusters and structure the Grand Paris project.





KEY POINTS

The Monitor observed that international Greenfields investments have declined in 2013, as they have done mostly over the last 5 years. This is an alarming trend as they are the ones creating added value, jobs and growth.

Global Cities act more than ever as anchors: they attract each year a growing share of international Greenfield investments. 2013 makes no exception and the competition is more open than ever.

1. Paris and, more globally, Europe, are back at the forefront of the competition. Paris is the only top global city to make an exceptional gain (+3 ranks).

2. Paris benefits from an excellent image in all world regions, and is now also in third position globally for business attractiveness according to our annual worldwide survey conducted with over 500 top international investors. The Grand Paris project meets strong interest with international investors.

3. New York is the only top Global City with Paris to attract more investments in 2013 than in 2012. The success of mature global cities is no accident. Investors focus on essential macro criteria to select locations: political stability, infrastructure, market size... Economic growth and costs (labor or taxes) come in second position.

4. On the contrary, major Asian Global Cities, like Shanghai and Hong Kong (respectively 2nd and 3rd) do not seem to enjoy an image matching their current attractiveness.

5. Europe is once more the first source and destination of international Greenfield investments, far ahead of America and Asia. Besides, the global market share of Europe grows more strongly than those of all the other regions.




4GLOBAL CITIES INVESTMENT MONITOR 2014 THE GREATER PARIS INVESTMENT AGENCY AND KPMG

METHODOLOGYA SCIENTIFIC APPROACH BASED ON A REPRESENTATIVE SAMPLE

North America

Canada .......................... 20United States ................ 90Total ............................ 110

Middle East

Kuwait .......................... 10Qatar ............................. 10Saudi Arabia ................. 10UAE ............................... 20Total .............................. 50

Europe

France ........................... 35Germany ....................... 35Italy ............................... 20Netherlands .................. 10Spain ............................. 10Sweden ......................... 11Switzerland .................. 20UK ................................. 50Ireland .......................... 10Total . ........................... 201

Asia

Japan ............................ 40South Korea .................. 10Total .............................. 50

BRIC

Brazil ............................ 15China............................. 25Hong Kong .................... 20India .............................. 20Russia ........................... 20Total ............................ 100

PERCEPTIONS

A poll conducted by

opinionwayThe innovative research compagny

Representative sample of 511 companies with international business settlements

22 countries

3 criteria: - Headquarter location - Industry - Turnover

Phone interviews with global business leaders (CEO, managing director, administrative and financial manager, sales manager, head of international investment)

From 2nd January to 22nd March 2014

BUSINESS ACTIVITY

Services IT Heavy industry Consumer goods

pays dorigine des entreprises

chires daaires (en euros)

secteurs dactivit

22%21%

25%32%

Less than 500 millions Between 500 millions and 5 billions More than 5 billions Did Not Answer

REVENUE (in euros)



secteurs dactivit

47%

21%30%

2%

COMPANIES BY COUNTRY OF ORIGIN

America Greater Europe BRIC Asia Gulf countries



secteurs dactivit

50%

36%

3%5%

POSITION OF THE INTERVIEWEE

CEO6%

Human Resources M

anager

3%

Development Manag

er22%

Marketing/Commun

ication Manager

29%

35%Financial M

anager

Others5%

6%




METHODOLOGYAN OBJECTIVE FOCUS ON THE LATEST INVESTMENTS

The annual period begins with the fourth quarter:

2013

REALITY

To enable verification of our sources, the Monitor allows four months to elapse from the recording of investments in the fDi Markets. Thus, the period reviewed starts with the 4th quarter of the previous year.

Tokyo

SydneySo Paolo

Moscow

Montreal

San Francisco

Hong Kong

Shanghai

Mumbai

Warsaw

Dsseldorf

Frankfurt

Amsterdam

London

Toronto

Istanbul

BangaloreAbu Dhabi

New Delhi

Dublin

Seoul Beijing

Paris Madrid

New York

25 Global Cities

- Top destinations in terms of international Greenfield investments

- Excluding City States

- The most open economies, not necessarily the top GDPs.

International Greenfield Investments

The Monitor measures the number of published international Greenfield investments collected by the fDi Markets data.

International Greenfield investments occur when a company launches new activities in a Global City. They build up its economic potential and create jobs. Purely financial investments, like real estate transactions, privatizations or alliances are not included. Joint ventures are included only when they result in job creation.

Barcelona

4th quarter 2012

1st quarter 2013

2nd quarter 2013

3rd quarter 2013



25 Global Cities

The Top Global Cities for the International Greenfield Investment list has been updated to take account of the significant rebalances experienced by the global economy.

= Stay in Top 25- Leave Top 25+ New in Top 25

San Francisco

New York

So Paolo

Mumbai

Hong Kong

Seoul

Shanghai

Tokyo

Bangalore

New Delhi

Sydney

Mexico

=

=

=

=

Beijing=

=

=

=

+

++

=

-

Montreal

Toronto+ -

Frankfurt

London

Istanbul

MoscowAmsterdam

DsseldorfWarsaw

Stockholm

Brussels

BerlinDublin

Paris =

Barcelona=Madrid

=

=

=

+

+

+=

-

-

-

=

=

METHODOLOGYAN UPDATED, RIGOROUS OVERVIEW OF 2013 INVESTMENTS

Abu Dhabi+

Database:

fDi markets Financial Times, January 2003

132,000 international investment projects

64,000 businesses all over the world

10,000 information sources: newspapers, magazines, associations, websites

PERCEPTION BENCHMARKSGLOBAL CITIES INVESTMENT MONITOR 2014

Chrysler Building(318m)

New York

Grande Arche(111m)Paris

World Financial Center(492m)

Shanghai


METHODOLOGY

Burj al Arab(321m)Dubai




GLOBAL IMAGE PARIS, THIRD WORLDWIDE

New York

49%

Los Angeles

Chicago

Shanghai

Singapore

ParisBerlin

41%

London

Tokyo

Hong Kong

London Shanghai

7%

New York Los Angeles

7%

Chicago

6%

Tokyo

9%

Hong Kong

11%

Paris

30%

Berlin

12%

6%

7%

12%

30%

7%

8%

9%

11%

41%49%

Singapore

8%

CITIES GLOBAL IMAGEAccording to you, which 3 cities or major world capitals have the best overall image?




REGIONAL IMAGE PARIS, WELL PERCEIVED EVERYWHERE

REGIONAL IMAGEAccording to you, which 3 cities or major world capitals have the best overall image?

LondonNew York

Paris

Los Angeles

Chicago

AMERICA

ShanghaiLondon

Tokyo

Singapore

BRIC

TokyoNew York

ASIA

New YorkLondon

Paris

EUROPE

Berlin

Paris

Singapore

GULF COUNTRIES

New York

Riyadh

Paris

Dubai

Hong Kong

New York

London

London

Paris

New entries in the Top 5




PERCEIVED ATTRACTIVENESSPARIS JUMPS UP 4 SPOTS TO 3rd RANK

New York

26

Singapore

10

Dubai5

Shanghai

9

CITIES GLOBAL ATTRACTIVENESSAccording to you, which 3 major world capitals are currently the most attractive locations for setting up a business generally (either your business or other businesses)?

TOP 10

London .............................................27%New York .........................................26%Paris .................................................11%Singapore .......................................10%Shanghai ...........................................9%Hong Kong ........................................8%Berlin ................................................. 7%Beijing ................................................6%San Francisco ................................. 6%Dubai ................................................. 5%

11-24

Los Angeles ..................................... 5%So Paolo .......................................... 5%Toronto .............................................. 4%Munich ............................................... 4%Moscow .............................................. 4% Barcelona ......................................... 4%Istanbul ............................................. 4%Chicago .............................................. 3%Mumbai ............................................. 3%Tokyo ................................................. 4%

Frankfurt .......................................... 3% Zurich ...............................................13% Houston ............................................. 3%Dublin ................................................. 3%

Berlin

7

London

27

Paris

11

Beijing6

San Francisco

6

Hong Kong

8




THE CONTINENTS ATTRACTIVENESS

INVESTMENT PROJECTS OVER THE NEXT 3 YEARS

EUROPE

Russia included

ASIAIndia and Chin

a included

AFRICA & MIDDLE EAST

AMERICASBrazil include

d

12%13% 4%5%

13%10%

11%

19%

BRIC

13%10%

2013 2014

2013 2014

20132014

2013 2014

2013 2014




INVESTMENT CRITERIA A RENEWED INTEREST FOR INFRASTRUCTURE AND R&D

According to you, which of the following investment criteria are the most important when choosing your location?

WORKFORCE ANDCOST CRITERIA

Accessibility

of skilled HR

Living costs,

salaries and tax levels

84%

78%

Availability and

cost of real estate

71%

Quality of life

Quality of innovation

and research

QUALITY OF LIFE AND RESEARCH

62%54%

81%

POLITICAL AND ECONOMIC CONTEXT

89%

Political stability

and legal security

82%

Market accessibility

and size

Econom

ic growth

Infrastructure

86%

Quality of education

70%




WESTERN CITIES, LEADERS AGAIN

PERCEPTION OF ATTRACTIVENESS BY INVESTMENT CRITERION

1 2 3 4 5

Political stability and legal security London New York Zurich Toronto Paris

Infrastructure New York London Paris San Francisco Frankfurt

Availability of skilled HR New York London Zurich Paris Shanghai

Market accessibility and size New York Shanghai London Beijing Zurich

Economic growth Shanghai New York Beijing London So Paolo

Living costs, salaries and tax levels London New York New Delhi Berlin Singapore

Availability and cost of real estate New York Toronto New Delhi Shanghai Barcelona

Quality of education New York London Boston Paris San Francisco

Quality of research and innovation New York San Francisco London Tokyo Berlin

Quality of life New York Paris London San Francisco Barcelona

Total New York London Paris Shanghai San Francisco

PARIS 3rd WORLDWIDE

Greater Paris Investment AgencyGreater Paris Investment Agency


LE GRAND PARISINVESTOR EXPECTATIONS

Le Grand Paris, is the largest economic development project in Europe, with the French government investing over 30 billion. 200 kilometers of automatic metro lines will be needed to connect the main economic and innovation hubs as well as the international airports. The aim of this project is to double Greater Paris GDP by 2030.

In your opinion, can this project strengthen Paris position as:

50%

33%

9%3%

45%

35%

11%

3%

41%

36%

15%

3%

46%

24%

18%

4%

a city which ismore attractive

to foreign investors

a world capitalof luxury and quality of life

a smart city: more intelligent and

high-tech

a green city: more eco-friendly

83% 80% 77%

70%

Yes, definitely

Yes, most likely

No, not really

No, not at all

% Yes

% Dont know 12% 14% 18% 22%


Transamerica Pyramid(260m)

San Francisco

Federation Tower (506m)Moscow

Phare Tower(297m) Paris

REALITY BENCHMARKSGLOBAL CITIES INVESTMENT MONITOR 2014


Shard Tower(305m)London




EUROPE, THE LEADING DESTINATION OF INTERNATIONAL INVESTMENTS

ORIGINS OF INTERNATIONAL GREENFIELD INVESTMENTS BY WORLD REGION

Europe

North America

South America

BRIC (Brazil, Russia,

India, China)

Asia

Middle East

North

America13%

14% 62%

5%4%

-3 pts

Europe43%- 5 pts

+2 pts38% 11%

2%

Asia12%- 6 pts

58% 24%

2%

+16 pts

+1 pt

+7 pts

13% 56%+1 pt

-9 pts26%

SouthAmerica

4%

+3 pts

1%1%

6%

3%

+ 5 pts

Source: Greater Paris Investment Agency, KPMG,

fDI Markets Financial Times Ltd

-12 pts




EUROPE, THE MAIN INVESTOR IN GLOBAL CITIES

ORIGINS OF INTERNATIONAL GREENFIELD INVESTMENTS, IN SELECTED CITIES

Europe

North America

Asia

Others

Middle East

PARIS - FOCUS ON ASIA

So Paolo

New York

Paris

Shangai

Mumbai

Sao paulo

London

New York

26%56%

5%

12%

1%

London

New York

Paris

Shangai

Mumbai

Sao paulo

London

New York

49%

11% 4%

3%

33%

New York

Paris

Shangai

Mumbai

Sao paulo

London

New York

62%28%

1%

8%

New York

Paris

Shangai

Mumbai

Sao paulo

London

New York

Mumbai

46%9%

7%

38%

New York

Paris

Shangai

Mumbai

Sao paulo

London

New York

4%

72%

3%4% New Y

ork

147%

New York

Paris

Shangai

Mumbai

Sao paulo

London

New York

Shanghai

30%

13%

54%

1%2%

New York

Paris

Shangai

Mumbai

Sao paulo

London

New York

38%

China12%

Singapore

Paris17%

1%

Japan37%13%

South Korea Source:

Greater Paris Investment Agency, KPMG, fDI Markets Financial Times Ltd




EUROPE, THE MOST ATTRACTIVE CONTINENT IN THE WORLD

DESTINATIONS OF INTERNATIONAL GREENFIELD INVESTMENTS BY WORLD REGION

Global change: -11%

14%

26%

6%

6%11%

-10%

-9%

-18%

2%-13%

+14% -23%

Oceania

North America

South America &

the Caribbean

Asia35%

-9%

Europe

Middle East

Africa

Source: Greater Paris Investment Agency, KPMG, fDI Markets Financial Times Ltd




MAJOR GLOBAL CITIESTHE LARGEST INVESTMENT RECIPIENTS

GLOBAL CITIES SHARE OF NATIONAL INCOMING INVESTMENTS

> 40%

30% to 40%

< 20%

20% to 30%

Paris

San Francisco

New York

So Paolo

6% 11%

Toronto 23%

44%

Mumbai

11%

Hong Kong22%

Seoul

54%

Shanghai25%

Tokyo57%

Frankfurt

BarcelonaMadrid

London

Istanbul

MoscowAmsterdam

47%30%18%

50%10%

Dsseldorf16%49%38%

47%

Warsaw14%

Bangalore12%

New Delhi

6%

Abu Dhabi 12%

Sydney41%

Beijing13%

Dublin 54%





NEW TRENDS SOME SURPRISES

NUMBER OF INVESTMENTS

London

Shanghai

215Moscow

116

Hong Kong

189New York

162

305

So Paolo

151

Paris

119

Sydney

124

Beijing

115

Barcelona

106

Source: Greater Paris Investment

Agency, KPMG, fDI Markets Financial Times Ltd

London

New

York

So Paolo

Sydney

Paris

Moscow

Beijing

Barcelona

San Francisco

Dsseldorf

Dublin

Tokyo

Amsterdam

Shanghai

Hong Ko

ng

119 116 124

115 10693 87 82 79 70

151162

189215

305

Madrid

65

Bangalore

Istanbul

Mum

bai

Toronto

61 58 56 54

2012 ranking 1 3 2 5 4 8 10 7 6 12 9 13 15 22 25 16 14 26 11 17

2013 ranking 1 2 3 4 5 6 7 8 1918 2017161514131211109




NUMBER OF INVESTMENTS IN STRATEGIC FUNCTIONS

STRATEGIC FUNCTIONSBALANCED INVESTMENTS WORLDWIDE

San Francisco

Shanghai

New York

So Paolo

Sydney

Hong Kong

Dsseldorf

ParisLondon

166

Dublin


London Shanghai

94New York

76San Francisco

64Sydney

69Hong Kong

62So Paolo

61Paris

60Dsseldorf

57Dublin

52

94

76

69

64

62

61

5760

166

52

166



FOCUS ON PARIS INVESTMENTS BY SECTOR


TOP 10 SECTORS

2% Food industry

2% Financial services

30% Software & IT servi

ces

26% Textile & fashion

13% Business services

8% Consumer products

7% Communications

3% Equipment, goods &

machinery

3% Industrial services

2% Electronic componen

ts

CCTV Tower(234m)Beijing

Cocoon Tower(204m) Tokyo

Al Hamra Tower(412m)

Kuwait City

Hermitage Tower(320m) Paris

2009/2013 REPORTREAL TOP GLOBAL CITIES





NUMBER OF INVESTMENTS

THE GLOBAL RANKINGFOR THE LAST FIVE YEARS, 2009 TO 2013


fDI Markets Financial Times LtdTOP 10

Paris

New

York

San Francisco

Mum

bai

Dsseldorf

Bangalore

Dublin

Madrid

Amsterdam

Tokyo

Frankfurt

Abu Dhabi

London

1705

Shanghai

1340

Hong Ko

ng

1142

So Paolo

823

Moscow

753 721 647 602

Beijing

550

Barcelona

518 480 471 469 460 451 428 424 401 329 312

Sydney

Hong Kong

So Paolo

London

1705

Shanghai

1340

1142

Beijing

550

823

Moscow

129753

Paris

721

New York

647

602

518

Barcelona

Sydney




A GLOBAL DECLINEEXCEPT FOR PARIS


fDI Markets Financial Times Ltd

CHANGES IN THE TOP 5 CITIES, 2009 TO 2013NUMBER OF INVESTMENTS

2009 2010 2011 2012 2013

0

50

100

150

200

250

300

350

400

450

61

126

195 223

151

108

194

146 129

116

191

170 150

108

119

225239

239

189

231242

290

309

233

215

351389

308

270

305




The Global Cities Investment Monitor is a unique worldwide survey conducted exclusively by the Greater Paris Investment Agency in partnership with KPMG. It ranks the attractiveness of Global Cities competing at worldwide level.

Although there is no strict definition for a Global Cities, they are all characterized by a dynamic and stimulating environment where financial and business innovation meets top decision-makers. Global Cities are focal points with global impact. They are closely linked to each other, while competing to define the best economic, urban and political standards.

Competition among Global Cities is more open than ever before. For most of the twentieth century, Paris, London and New York formed the leading triad. Berlin was sidelined in the course of the two world wars. Moscow stood in the Soviet Bloc apart from economic competition. Tokyo was probably the first strong challenger.

Even in a more open, competitive environment very few cities can hope to rank among the top global ones. As the Monitor shows, investors perceptions as well as actual investments tend to focus on a handful of cities and concentrate there.

For more than twenty years, the Greater Paris Investment Agency has conducted studies to compare and rank European cities. The Global Cities Investment Monitor is the first annual global benchmark study. It fully acknowledges the changing global hierarchy.

What can Paris, a long standing Global City, expect from the Monitor? The study has shown that Paris enjoys an attractive, remarkable image and is also well-positioned in terms of actual investments, even more so than its image suggests.

The Monitor is a key tool helping the Greater Paris Investment Agency to advocate and support world-class investments in infrastructure, architecture, and clusters in Greater Paris, to make it one of the twenty-first centurys leading business capitals.

GLOBAL CITIESA COMPETITION MORE OPEN THAN EVER




ABB, Accor, Aroports de Paris, Altran Technologies, Bal du Moulin Rouge,BNP Paribas, Cailliau Dedouit & Associs, Caisse des Dpts, CEA, Chambre de commerce et dindustrie de Paris Ile-de-France, Chambre des Notaires de Paris, Chambre Fnaim du Grand Paris, Cisco, Colas S.A., Colony Capital, Comexposium,Crdit Agricole CIB (Calyon), Defacto, EDF, Epadesa, ERDF, Ernst & Young,Fdration Rgionale des travaux publics Ile-de-France, Fidal International,Foncire des Rgions, France Amriques, Galeries Lafayette, GDF-Suez, Gecina, Gnrale Continentale Investissements, Gide Loyrette Nouel, Groupe G7, HCL Technologies, Hermitage, Hinduja Group, IBM, Icade, KPMG, La Poste,Marne-la-Valle Epamarne/Epafrance, MEDEF Ile-de-France, Orange,Port Autonome de Paris, RATP, Regus, Siemens, SNCF, Tata Communications,Tata Consultancy Services, Total, Unibail-Rodamco, Veolia, Vinci Construction,Viparis, Wipro, Xerox

OUR MEMBERS: GLOBAL & MAJOR COMPANIES

THE GREATER PARIS INVESTMENT AGENCY

ISBN 2-914687-10-9 EAN 9782914687102 IC

ONOGRAPHIE Fotolia XDR (*So

urce: La

Profession comptab

le 2010)

Greater Paris Investment Agency is a non-profit organization founded over twenty years ago by the Paris Chamber of Commerce and Industry to attract new international investors in Greater Paris and to bolster its attractiveness.

It is comprised of more than one hundred major French and multinational companies; they guarantee total independence and provide support in fulfilling the Associations main missions.

As Greater Paris, business ambassador, our Agency is a key partner and advisor linking government decision-makers and our prestigious business partners network.

It is a major player in the Grand Paris project.

Chiara CorazzaManaging Director


www.greater-paris-investment-agency.com


KPMG in France KPMG is the leading Audit and Advisory services provider in France, employing 8,300 professionals located in 238 offices. In 2013, KPMG S.A.s revenue stood at d894 million. KPMG serves major international companies, SMEs and family groups, in all industry areas.

KPMG is a member firm of KPMG International Cooperative, a global network of professional firms providing Audit, Tax and Advisory services with a presence in 155 countries across the world. KPMG employs 155,000 professionals and generates $23.04 billion in sales.

The network is structured around three regions: the Americas, Asia-Pacific, and EMEA (Europe Middle East Africa).

Jay NirsimlooManaging Director KPMG

www.kpmg.fr

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BROCHURE GLOBAL CITIES 2014