WHY INVEST IN TUSCANY Florence June 2010 ACCESSIBILITY

WHY INVEST IN TUSCANY Florence, June 2010

ACCESSIBILITY & INFRASTRUCTURES KEY FACTS

TUSCANY IN BRIEF § § § • Population: 3. 7 million inhabitants (6, 2% of Italy) Area: 22. 994 Km² q Capital: Florence. Other main cities: Livorno, Pisa, Lucca, Siena Renowned for: q fashion and fine arts (“made in Italy”) q tourism (historic sites, cities, nature) q quality of life Economy: € 106. 073 million (6. 7% Italian GDP) q 70. 4% services, 27. 5% industry, 2. 1% agriculture q Labour market: 1. 7 million people q Unemployment rate: 6. 3%, much lower than the Italian and European averages Manufacturing tradition: q More than 365, 000 companies, q 12 clusters (industrial districts): fashion-design, marble, wood, furniture, paper, boat building, automotive. . . International investment: q 335 foreign companies, more than 35, 000 jobs Source: Italian Bureau of Statistics

Why invest here 1. ONE OF THE MOST POLITICALLY STABLE REGIONS in Italy 2. A WELL MANAGED REGION providing excellent services to citizens and expatriates 3. TALENTS encouraged by a high-level training offer, with diversified and internationally renowned Universities 4. COMPETITIVE COSTS lower than the Italian and European averages for labour , Real Estate and facility (gas, water, etc) 5. OUTSTANDING SCIENTIFIC AND TECHNOLOGICAL SKILLS AND RESOURCES attracting worldwide references for R&D, particularly in the Life Sciences, Information Technology, Chemicals… 6. MADE IN TUSCANY: A UNIQUE AND VIBRANT INDUSTRY world renowned, built on an long and traditional knowhow and with a strong local anchorage 7. THE TUSCAN WAY OF LIFE

ACCESSIBILITY & INFRASTRUCTURES

TUSCANY: A STRATEGIC PLATFORM Tuscany is a natural entry platform to Italy and a gateway to Euro. Mediterranean markets More than 10% of European GDP and 75% of Italian GDP accessible within a 400 km radius around Tuscany Source: www. johomaps. com

ACCESSIBILITY § Direct flights from Japan to Italy (13 hrs): ü Osaka-Rome ü Tokyo-Rome § Other flights linking Tokyo and Osaka with Florence through Frankfurt, Paris, Amsterdam, Helsinki, Copenhagen. § Excellent links among Milan, Rome and Florence: ü By airplane: q Rome-Florence (1 hr) ü By train: q 30 daily links Florence-Rome (1 hr 40) q 15 daily links Florence-Milan (1 hr 35) ü By car (A 1 Highway): q Florence-Milan (3 hrs 15) q Florence-Rome (2 hrs 50)

A PERFORMING TRANSPORT NETWORK Excellent transport infrastructure and a integrated multimodal network § 3 key highways ensure good transport links to the whole of Italy: § 2 key highways North/South - 1 highway East-West § 2 main international airports in Pisa and Florence for passengers and freight, with several daily flights to European and Italian major cities § 2 commercial ports in Livorno (ranked: # 7 th Italian port, 6 th for container traffic, and serving all the major ports world-wide), and Piombino, with immediate proximity to the other major Italian ports § An excellent High Speed Rail network ensuring: q 10 daily links Florence-Turin (2 hr 45) q 10 daily links Florence-Venice (2 hrs 40)

ITALY: A STRONG AND COMPETITIVE ECONOMY

ONE OF THE WORLD’S LEADING ECONOMIES 2, 500 Italy is the 4 th largest European country Source: Eurostat (2009) 500 s Ot he r ia str Au en ed m nd Sw la Po iu Be lg nd s n er la ai th ly Ita Sp Ne ite d Ki ng Fr a nc e do m 0 Un population accounting for 12. 6% of the EU 27, with 59 million people, amongst the highest economic growth within EU 27 1, 000 an y § The 4 th European country in 1, 500 m Europe (3 rd within the Eurozone), accounting for 13% of EU 27 GDP 2, 000 Ge r § Italy is the 4 th largest economy in GDP (bn€, 2009)

ONE OF THE WORLD’S LEADING ECONOMIES 3. 0 Real GDP Growth Rate estimates selected EU Countries (2011) 2. 0 1. 0 ce Gr ee l rtu ga Po ai n Sp ly Ita re a a ro Eu pa n Ja e nc Fr a ia str Au Ge r m an y 0. 0 -1. 0 § Italy’s GDP is estimated to grow in 2011 by 1. 4%, thus reflecting the average of the Euro area

HIGH PRODUCTIVITY GDP/inhabitant (US$/hr) 60 50 40 30 20 10 ga CCz ehcec ry h k R Re epp Po la nd ni a un H ov e 7 ai n Sl Sp -2 EU la nd er en Sw itz ed ly Sw Ita K U an y m er G Fr an ce 0 Source: Conference Board (2008) Italy’s productivity is higher than European average § Italy is above the European average for overall indicators in terms of quality of the workforce and labour productivity § Italian performance much higher than the EU-27 average q Higher than Sweden and Switzerland, and higher by 20% to Spain’s average

HIGH PRODUCTIVITY Source: OECD (2008) Italy’s productivity is even higher than other OECD countries § Italian performance much higher than the OECD average q Higher than Japan and United States

COMPETITIVE COSTS Difficulty to fire (rating 0 to 100) 80 80 70 70 60 60 50 50 40 40 30 30 20 n Be ds Sw lgiu itz m er la n Po d la nd Ita ly K la U he r et m G er N an Au y st ri Fr a an c Po e la nd Sp Sl ain ov N et en he ia rla nd s ly m Ita er G la U Ire er itz nd 0 K 0 la Be nd lg iu m 10 an Au y st ria Sp ai Ire n la Sl nd ov en i Fr a an ce 20 10 Sw Firing costs (index) 90 Source: World Bank – « Doing Business » (2007) A flexible labour market § Italy is in the low European average for flexibility of recruitment and dismissal rules § Firing costs are among the lowest in Europe § A contractual diversity suited to the needs of companies’ flexibility

COMPETITIVE COSTS Italy’s labour costs are among the lowest in Western Europe § Italian labour costs are among the lowest in Western Europe, with a lower growth in salary increase q q among the lower costs per hour in Western Europe for operatives and medium skilled workers, and also for managing functions (Logistics and Manufacturing) Industry labour cost per hour (US$/hr, 2006) 45 40 35 30 25 20 15 10 5 ai n ly Source: US Department of Labour (2008) Sp Ita la nd U K Ire Sw lgiu itz m er N et land he rla Ar nds ea E ur Sw o ed en Fr an ce ria st Be Au m an y 0 er Italy presents low costs within Western Europe for logistics activities for both skilled and highly skilled resources G §

COMPETITIVE COSTS 140 R&D labour costs 120 100 80 Manager R&D Senior R&D 60 40 20 Source: Apec – Hewitt (2007) 0 Belgium Switzerland Germany France UK Spain Italy’s labour costs for R&D are among the lowest in Western Europe § R&D labour costs are lower - for both Managing and Senior functions - than in other major Western European countries

COMPETITIVE COSTS Gas industrial prices (€/GJ, 2007) 14 Water prices ($US cts/m 3) 250 12 10 200 8 150 6 100 4 2 50 ly ai n Sp la N et he r Ita nd s ce an Fr iu m lg Be m er G K an y lg U m iu 0 Be ai n Sp ce an Fr ly 7 -2 Ita la he r EU nd s K U et N G er m an y 0 Utility prices in the European average § Electricity & gas: deregulated markets offer opportunities for lower prices § The cost of gas for industrial use in Italy is below the European average, and much lower than in Germany (32% less), or the UK (15% less) § The cost of water is less than those of other major European countries: Germany, United Kingdom, France, Benelux. .

TUSCANY’S COMPETITIVE ADVANTAGES

TUSCANY: A STRONG ECONOMY Tuscany • A population of over 3. 7 million (6, 2% of Italy), comparable to Ireland or Finland greater than various European or American States • A modern and vibrant economy with a Tuscan regional GDP over € 106 bln, larger than the Hungary, Bulgaria or Croatia Source: Italian Bureau of Statistics; Eurostat (2009) • A regional GDP contributing to 6. 7% of Italian GDP and to 7% of Italian export sales

MADE IN TUSCANY: A UNIQUE AND VIBRANT INDUSTRY • Dynamism and diversification of the economy is underpinned by small, medium and multinational companies working in sectors linked to research or high quality and high value added manufacturing Tuscany has a sound and diversified economic base with strengths in many sectors including: – Advanced Manufacturing, including: • Paper • Chemicals • Pharmaceuticals and medical devices • Electronics • Transport Industries (boatbuilding, light vehicles, rail…) • Food processing – Emerging science-based sectors, including: • Software, Telecom • Biotechnology – Logistics & Transportation – Energy, including Renewable Energy – Fashion & Design – Real Estate and Tourism

OUTSTANDING SCIENTIFIC AND TECHNOLOGICAL SKILLS AND RESOURCES Strong competencies in scientific fields A world renowned education system, with 3 Universities (Florence, Pisa and Siena), along with 5 Higher Education Institutes (i. e. Scuola Normale Superiore of Pisa, Scuola Superiore Sant’Anna of Pisa, IMT of Lucca) and many foreign universities (i. e. European University Institute of Florence). More than 21, 000 graduates per year with strong competencies in scientific fields: Engineering, ICT, Technology, Electronics, Medicine, Pharmaceutical and Chemistry A 1. 6 million workforce, with over 30% of labour force is employed in science & technology sectors

UNIVERSITIES IN TUSCANY AND CENTRES OF EXCELLENCE University of Pisa (50, 000 students) • Teaching/research staff: 1, 900 • Faculty of Engineering ü 31 degree courses, 9 specialization courses ü 10, 000 students ü Engineering graduates (2008): 1, 426 University of Florence (63. 000 students ) • Teaching/Research staff : 2, 200 • Faculty of Engineering ü 26 degree courses, 21 specialization courses ü 5, 538 students üEngineering graduates (2008): 836 Sant’Anna School of Advanced Studies, Pisa - Valdera Hub Scuola Normale Superiore, Pisa 11 Labs and Research Centres University of Siena (19, 000 students) • Faculty of Engineering ü 7 degree courses, 11 specialization courses ü Engineering graduates (2008): 189

HIGHER EDUCATION INSTITUTES

SOME FOREIGN UNIVERSITIES IN TUSCANY

• TECHNOLOGICAL, RESEARCH & SCIENTIFIC CENTERS National Research Council Institutes Polo Sant’Anna Valdera

TUSCANY: R&D Research, Design & Development Third largest concentration of universities in Italy € 542 million - academic research investment – 11% of overall Italian spending More than 10, 600 people dedicated to Research in Tuscany, Intensive production of scientific publications, ranking 18 th among European Urban Regions in the number of scientific publications in proportion of the population First-class research facilities dedicated to the development of innovation and technology transfer, science and technology parks and incubators in three main areas: Life Sciences, ICT and Chemistry-Physics Strong University networks and their efficient cooperating model with industries proved by 27 spin offs registered between 2001 and 2007

THE TUSCAN WAY OF LIFE Why live here • One of the most prestigious brand for manufacturing, culture and tourism • A preserved environment and a low level of pollution • A high level of safety for people and goods • An attractive cost of living • A temperate climate • A good offer for expatriates with 2 international schools, more than 50 foreign universities, and many international cultural associations

THE TUSCAN WAY OF LIFE Ranking • Tuscany ranks second in Italy for sustainable development Source: Eurostat; University of Pisa Region Score 1 Trentino Alto Adige 62 2 Toscana 57 3 Abruzzo 54 4 Valle d’Aosta 54 5 Piemonte 53 6 Lombardia 52 7 Lazio 52 8 Umbria 51 9 Emilia Romagna 50 10 Liguria 50 11 Veneto 50 12 Marche 49 13 Friuli Venezia Giulia 48 14 Campania 48 15 Basilicata 47 16 Calabria 46 17 Molise 46 18 Sardegna 45 19 Puglia 41 20 Sicilia 38

HUMAN RESOURCES IN TUSCANY ITALY (FLORENCE) Source: Eurostat (NACE DK 29; 10/10 or more employees business) • Highly competitive human resource costs

COMPETITIVE COSTS Industry - Gross salary Tuscany = 100 140. 0 120. 0 100. 0 80. 0 60. 0 40. 0 20. 0 Source: CNEL ag na (a iu ve lira Ve ge ne ) zi a G iu lia Ve ne to Tu sc an y M ar ch e e Fr Ita ly om R ilia Em o. A lto A di g a st 'A o d tin Tr en Va lle ed m on t ia Pi ba rd ria gu Lo m Li La zi o 0. 0 Tuscany’s labour costs among the lowest in Western Europe and Italy § Employment costs in Tuscany are below the Italian average for industry (in the strict sense - excluding construction) § Labour costs in Tuscany are lower than those of the 12 regions of Central and Northern Italy

COMPETITIVE COSTS Services - Gross salary Tuscany = 100 112 110 108 106 104 102 100 98 96 94 Source: CNEL o ne t a Ve an e To sc ch M ar on t ed m na Pi ag Em ilia R om ria gu Li ge ) iu (a G Ita ly a zi Ve ne liiu ve ra lia o La zi ia rd ba Lo m Fr Tr en tin o. A lto A di ge 92 Tuscany’s labour costs among the lowest in Western Europe and Italy § Employment costs in Tuscany are below the Italian average for services § and lower than those of the 12 regions of Central and Northern Italy

COMPETITIVE COSTS Rental - Offices (€/sm/year, 2005) 400 100 Rental - Industrial facility (€/sm/year, 2005) 350 80 300 250 60 200 40 150 100 20 50 0 Milan Rome Florence 0 Rome Milan Florence Source : Gabetti (2006) Florence shows lower rental costs than Milan and Rome § Rental costs for offices in Florence are significantly lower than in Milan (20%), and Rome (15%) § Rental costs for industrial facilities in Florence are also notably lower than Milan (20%) and Rome (33%)

COMPETITIVE COSTS Rental – Offices (€/sqm/year) Source : Gabetti (2008) Florence shows lower rents than Milan and Rome § Rental costs for offices in Florence are 25% lower than Milan and 35% than Rome

FOREIGN COMPANIES

FOREIGN COMPANIES They believe in Tuscany 335 foreign companies, active in manufacturing and increasingly in R&D activities, accounting for more than 35, 000 jobs in the Region More than 30 new companies have located in Tuscany in the last five years, investing almost $3 billion into the region mostly in the knowledge based sectors of ICT and Biotechnology Driving global excellence from leading industries and blue chip companies operating in Tuscany including: Microsoft, Eli-Lilly, Sun-Microsystems, Novartis, Continental, Arcelor. Mittal, Saint-Gobain, Boehringer, Solvay, Tioxide, General Electric…

FOREIGN COMPANIES Foreign-owned Companies in Tuscany Foreign Investors # 260 Companies # 335 Employees # 35. 479 Turnover (mln €) 15. 170 Industry Utilities & Construction Firms Wholesalers Services Source: ICE-Reprint (2009)

FOREIGN COMPANIES No. Of Foreign companies per Tuscan provinces (2009) 140 131 120 100 80 60 42 40 32 30 20 20 19 18 17 17 9 to se os Gr na Sie a oi st Pi o at Pr zo ez ra ar -C sa as M Source: ICE-Reprint Ar ra a cc Lu sa Pi no or Liv Fir e nz e 0

Invest in Tuscany • Invest in Tuscany is the service of Toscana Promozione dedicated to assist foreign investors wishing to locate their business in Tuscany • We support inward investments in order to boost the economic and productive development of the region

Invest in Tuscany supports foreign companies willing to locate in Tuscany Our service is free of charge and strictly confidential What We Do § Promoting investment opportunities § Scouting and groundwork for potential investors § Establishing of leads § Assisting investors: ü Assessment ü Contacts ü Negotiation § After-care services

CONTACT US HEADQUARTER INTERNATIONAL OFFICES DESKS Florence (Italy) Via Vittorio Emanuele II, 62/64 50134 Firenze Tel. +39 055 46281 info@investintuscany. com Frankfurt (Germany) Friedrich-Ebert-Anlage 58 60325 Frankfurt am Main Tel. +49 69 27390237 Email: frankfurt@toscanapromozione. it Buenos Aires (Argentina) Marcelo T. de Alvear 1119 piso 2 C 1058 AAQ Buenos Aires Tel. +54 11 4816 5900 Email: buenosaires@toscanapromozione. it Moscow (Russian Federation) Romanov Pereulok n. 4 - 2 nd floor 125009 Moscow Tel. +7 495 641 1247 Email: moscow@toscanapromozione. it San Paolo (Brazil) Avenida Ipiranga, 344 - 16° andar - cj 161 - Edifício Itália 01046 -926 São Paulo Tel. +55 11 2189 -2737 Email: sanpaolo@toscanapromozione. it New York (USA) 55 East 59 th Street New York - N. Y. 10022 Tel. +1 212 8916616 Email: newyork@toscanapromozione. it Shanghai (China) Platinum Center Unit 2504 - Tacaing Road 200021 Shanghai Tel. +86 21 63869660 -1 Email: shanghai@toscanapromozione. it www. investintuscany. com Abu Dhabi (United Arab Emirates) Bin Arar Tower, Najda Street PO Box: 112358 Abu Dhabi Tel. +971 2 4952783 Email: abudhabi@toscanapromozione. it Mumbai (India) 502, Bengal Chemicals Compound Veer Savarkar Marg Prabhadevi, Mumbai 400025 Tel. +91 22 24368186 extn: 150 Email: mumbai@toscanapromozione. it 40 www. toscanapromozione. it