Happy St. Patrick s day and welcome to the 18th edition of PwC s newsletter on foreign direct investment ( FDI ) in Ireland.

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1 Investing in Ireland Issue 18 March 2014 Happy St. Patrick s day and welcome to the 18th edition of PwC s newsletter on foreign direct investment ( FDI ) in Ireland. Forbes recently named Ireland as the best place in the world to do business. This edition summarizes key aspects of Irelands FDI offering which support this position. This edition also highlights Irelands advantages as an R&D location, trade and educational links with China and some recent FDI announcements across a variety of sectors. Remember to visit our FDI website for more updates and detailed information ( pwc.ie/fdi). Also available here is our recent New grounds for growth? publication. Should any of the topics covered in this newsletter be of particular interest to you, please do not hesitate to contact myself, any member of our team, or your usual PwC Ireland contact. If any of your colleagues would like to be included on our mailing list, please let us know. Liam Diamond liam.f.diamond@ie.pwc.com

2 Recent FDI announcements Aditi Technologies, the Cloud first technology services company, is to create 40 jobs with the establishment of its new centre in Dublin Alexion Pharmaceuticals, Inc, a leading pharmaceuticals firm, has announced the acquisition of a vialling facility in Athlone which is to create 40 new jobs Aon, a leading provider of services in Risk Management, Insurance, HR and Retirement Solutions, is to make an additional investment in its Dublin based Aon Centre for Innovation and Analytics (ACIA) with the creation of 30 highly skilled roles Arts Alliance Media (AAM), a leading provider of digital cinema services, is to establish a Software Development Operation in Cork, creating 20 jobs over a two year period Aspen Pharma, a leading global generic pharmaceutical company, is to create 42 new jobs at its European operations centre in Dublin Axway, a market leader in the governance of data flow, has announced the expansion of its R&D Centre of Excellence in Dublin with the creation of 15 software engineering jobs and the potential for growth in future years BioMarin Manufacturing Ireland has officially launched construction operations at its plant in Cork. The plant is set to manufacture products to treat rare genetic orphan diseases and should result in the creation of 40 positions as well as 65 construction jobs CapSpire, a global consulting and solutions company in the energy industry, is to create 20 jobs with the opening of its first international office in Dublin Charles River, provider of investment management solutions, has opened a new Managed Services office in Dublin Cook Medical, a leading producer of medical devices, opened its new Innovation Centre in Limerick in November, seeing the recruitment of 100 staff and representing an investment of 10m DePuy Ireland, one of the DePuy Synthes Companies of Johnson and Johnson, is to invest in upwards of $36 million in an R&D programme in Cork, creating 38 highly skilled roles Deutsche Bank announces the creation of 700 new jobs in Dublin. The bank, which has been in Ireland since 1991, is to expand operations at its regional hub in Eastpoint Global Reviews, a world leading online research company, is to open its European headquarters in Cork with the creation of 30 jobs over the next two years

3 HedgeServ, a global hedge fund administrator, has announced the expansion of its Dublin based Irish operation into Cork, creating over 50 positions. The company intends to employ over 200 people over several years at their state of the art facility HP, the leading global technology firm, announced the construction of its new office building in Galway. The office will be dedicated to software research and development, cloud technology and business services with the potential for up to 700 staff IBM has announced a new multilingual software services operations centre in Dublin with the creation of 40 roles StartingDot, the internet domain name registry business, is to create 10 jobs at its new finance and operations centre in Dublin Synowledge, an Indian company which specialises in the provision of drug safety and regulatory affairs services for the pharma, bio-tech and medical device sectors, is to create 35 jobs as its new international headquarters in Dublin Tyco, the multinational fire and security company, is to open a business services centre in Cork, with the potential for 500 jobs Indeed, the world leading jobs search service, is to expand its Dublin based EMEA headquarters, adding 100 new jobs Jazz Pharmaceuticals, a leading pharma company, has announced the construction of its manufacturing and development facility in Monksland, Roscommon Liberty Mutual Insurance Group is to create 150 new technology jobs over the next two years in an expansion of its IT operations in Dublin Microsoft has announced the recruitment of 95 people in Dublin across a variety of roles in technology and business enterprise. Separately, Microsoft s Cloud Services Growth drives a second expansion of its EMEA datacentre in Dublin to meet growing demand across Europe, the Middle East and Africa - with the investment of 170m and the creation of 380 building jobs followed by 20 new roles Ireland has a highly educated work force and a strong biopharma industry while the Irish Government has an unparalleled commitment to education and training for pharmaceutical manufacturing, quality assurance, quality control and supply logistics. Daniel P. Van Plew, Senior VP & GM of Industrial Operations and Product Supply, Regeneron NeoMed Inc, a leading manufacturer of devices for neonatal and paediatric patients, is to create 22 jobs with the creation of its international HQ in Dublin NewRelic, a software analytics company, is to open its international office in Dublin with the creation of 50 positions Regeneron Pharmaceuticals, Inc. plans to establish a world class biopharmaceutical production facility in Limerick, investing $300m and creating 300 highly skilled jobs by 2016 SEKO MedTec Solutions, an operating company of Sutherland Global Logistics (SGL), is to create 30 jobs in Galway There is a world class software engineering population in Ireland and we want to recruit from this talent pool. Dublin in particular is globally acknowledged as a hub of engineering excellence and we will be looking to recruit senior engineering staff for our R&D Centre. Laurent Bride, Executive Vice President of Research & Development, Axway

4 R&D Multi-national companies across all sectors are facing increasing pressure to innovate. In response to this increased demand, Ireland has positioned itself as a leading location for Research and Development (R&D) activities. Approx. 50% of all new foreign investment is from existing multinationals, who continue to grow their presence in Ireland, and a key area of expansion remains R&D. Support for commercial research projects in Ireland is clear. As well as Irelands attractive 25% R&D tax credit regime, financial and other support is available from IDA Ireland, Enterprise Ireland (EI), Science Foundation Ireland (SFI) and Sustainable Energy Authority Ireland (SEAI). Why Ireland for R&D? Ireland offers an ideal social, commercial and educational environment in which to carry out leading edge R&D. 25% R&D tax credit (refundable) and Government grants 12.5% tax rate applies to trading income generated by R&D activities Stable political environment and a respected regulatory regime Transparent and robust legislation around patents and IP Global business environment with an extensive double tax treaty network High-skilled, multi-lingual and knowledge based economy Ireland 1 st in the world for investment in Pharma IBM Global Location Trends report 2012 Ireland - best place to do business Forbes has declared Ireland to be the number one place to do business globally. Ireland ranked highly across the board in Forbes eighth annual report on the Best Countries for Business. It is also the only nation to rank among the top 15% of countries across all metrics. Ireland ranks particularly highly for low tax burden, investor protection and personal freedom. The soaring Irish stock market has played a key role in Ireland s return to form, its performance ranking first among the top 30 countries. Business confidence and plans for growth are on the increase among CFOs, with 43% confident about the outlook for the economy compared to just 11% last year. Costs are also less of a challenge compared to PwC 2013 CFO Pulse Survey

5 Ireland leads the way in 2013! 1st in the World for best place to do business 1 1st in the World for attitudes towards globalisation 2 1st in the World for investment incentives 2 1st in the World for flexibility and adaptability of workforce 2 1st in the World for inward investment by quality and value 3 1st in the World for human capital Dublin city 4 1st in Europe for protecting investors 5 1st in Europe for paying taxes 5 1st in Europe for attaining third level education 6 1st in Europe for number of investment jobs per capita 3 High praise for Ireland Ireland was one of only eighteen countries to receive the top rating of compliant in a recent compliance ranking published by the Global Forum. The report considers 50 countries on the practical implementation of their tax information exchange standard. The Global Forum brings together 121 countries and jurisdictions for wide-ranging discussions on tax transparency and exchange of information. The report confirms that the Irish system for the exchange of tax information meets the highest international standards. 1st in Western Europe for best to invest 7 1 Forbes - The Best Countries for Business IMD World Competitiveness Yearbook IBM Global Location Trends Report Economist Intelligence Unit Ltd, Benchmarking Global City Competitiveness The world bank - Doing Business Eurostat EU Labour force survey Site Selection 2013 Paying taxes 2014 Ireland remains first in Europe for ease of paying taxes, compared with 189 economies worldwide. This is the second year running that Ireland tops the list, according to Paying Taxes 2014, the eighth edition of this joint report between PwC, the World Bank and IFC. The report considers all operational tax heads and contributions that a medium sized company must pay, along with the compliance costs. The report also highlights the following: total tax rate for Ireland is 25.7% compared to an EU average of 41.1% total time spent complying with regulations in Ireland is 80hrs compared to 218hrs for Germany total labour taxes for Ireland is 12.1% compared to an EU average of 26.5%

6 Focus on science Pharma The pharma sector has benefited greatly from the increasing focus on R&D noted on page 4 of this edition. Key areas of development in Pharma have been Supply Chain Management and creating global service centres. The biotechnology sector in Ireland is thriving also, seeing substantial growth in the past decade. Biotech Dedicated hubs for Biotech are also being established. One such site is to be located in Oranmore, Galway, just 5 minutes from Galway airport and 75 minutes from Shannon International Airport. Another such site is to be located in Mullagharlin, Dundalk. Med tech Ireland continues to lead the way in Medtech. The Centre for Cell Manufacturing Ireland (CCMI) at NUI Galway has received a licence from the Irish Medicines Board to manufacture culture-expanded stem cells for human use. CCMI was developed by the Regenerative Medicine Institute (REMEDI) in NUI Galway which opened in January. The centre positions Ireland as a global player in the regenerative medicine field and is a significant development for the Medtech sector as a whole. China update Well established trade and cultural links between China and Ireland have resulted in significant opportunities for growth. Three Chinese aviation operations have located their European headquarters in Ireland in the past 18 months, the most recent of which being Bank of Communications Financial Leasing (JY Aviation). The company is expected to manage 21 aircraft from Ireland and joins two other Chinese leasing companies with existing operations in Ireland: ICBC Leasing and CDB Leasing. The Chinese aviation market has seen strong growth, tripling in size over the past 10 years. Over the next 20 years, it is expected that Chinese airlines will need almost 6,000 new airplanes, valued at $780bn. A new international university is to be founded in the Shandong Province of China. UCD Yantai is a joint venture between the China Agricultural University (CAU) and University College Dublin (UCD). China has committed to invest 300m in the project and provide a 300 acre campus. This joint venture is to serve as a platform for research and innovation between Ireland and China.

7 Asset Management A Brave new world Key findings of the recent PwC asset management report include: Irish funds industry has potential to grow to 3.5 trillion and yield up to 10,000 new jobs by 2020 Global assets under management will exceed US$100 trillion by 2020 Key drivers are an ageing population in need of increased pension savings and the rising middle classes, particularly in emerging markets Changing market and investor needs will produce a positive environment with significant opportunities for asset managers through 2020 and beyond Ireland for enterprise The Wall Street Journal has declared Ireland to be Europe s most entrepreneurial country. The ranking is based on Dow Jones Venture Source data and considers venture capital raised by technology companies in Europe since Ireland attracted four times the venture capital funding per capita as the European average. Would you like to know more? Should any of the topics covered in the newsletter be of particular interest to you, please do not hesitate to contact any member of the FDI team, or your usual PwC Ireland contact. If any of your colleagues would like to be included on our mailing list, please let us know. Please click on our website ie/fdi for additional information. Various topics of interest for foreign investors can be found in the publications link in the tax section, including: New grounds for growth? Why Ireland? Tax Facts Global CEO Survey PwC launched its Global CEO Survey in January Over 1,300 global CEOs in 68 countries were surveyed and key findings included: 44% of CEOs see improvement in the global economy, compared to 18% last year Confidence in revenue growth is also up from 36% last year to 39% this year Finance Act 2013 Previous editions of Investing in Ireland World Wide Tax Summary Tax treaty update Ireland has signed comprehensive double taxation agreements with 70 countries, 68 of which are in effect, and with further intended negotiations in New agreements have been signed with Ukraine and Thailand and the legal procedures to bring these agreements into force are now being followed. The new agreements with Kuwait, Uzbekistan, Egypt and Qatar are now effective also. Ireland has completed the ratification procedures to bring the protocol to the existing agreement with Malaysia into force. Ratification will also completed by Malaysia to bring the protocol into force. A protocol to the existing agreement with Switzerland is now in force and effective from 1 January Negotiations to Protocols to the existing agreements with Belgium and Luxembourg are awaiting signature. Negotiations with Azerbaijan, Jordan and Tunisia are at various stages while negotiations continue for the revision of the existing agreements with Pakistan and with the Netherlands.

8 Contacts Jean Delaney jean.delaney@ie.pwc.com Liam Diamond liam.f.diamond@ie.pwc.com Enda Faughnan enda.faughnan@ie.pwc.com Denis Harrington denis.harrington@ie.pwc.com Andy O Callaghan andy.ocallaghan@ie.pwc.com Mary Honohan mary.honohan@ie.pwc.com Susan Kilty susan.kilty@ie.pwc.com Ronan MacNioclais ronan.macnioclais@ie.pwc.com Joe Tynan joe.tynan@ie.pwc.com James McNally james.mcnally@ie.pwc.com Terry O Driscoll terry.odriscoll@ie.pwc.com John O Leary john.oleary@ie.pwc.com Feargal O Rourke feargal.orourke@ie.pwc.com Yvonne Thompson yvonne.thompson@ie.pwc.com Garrett Cronin garrett.cronin@ie.pwc.com This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors PricewaterhouseCoopers. All rights reserved. PwC refers to the Irish member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details