France A.T. Kearney Foreign Direct Investment Confidence Index (FDICI)

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Rodney Dean
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1 France 20 A.T. Kearney Foreign Direct Investment Confidence Index (FDICI)

2 20 A.T. Kearney FDI Confidence Index Rankings US China Canada Germany UK Japan Australia France India Singapore Switzerland Brazil Spain Netherlands Taiwan Italy South Korea Mexico Belgium Denmark Thailand Sweden Ireland Austria Norway Maintained ranking Moved up Moved down Note: Values are calculated on a 0 to scale, with being the highest level of confidence in a market as a future destination for FDI Source: 20 A.T. Kearney Foreign Direct Investment Confidence Index,2,0,,,,6,60,60,,4,,,,0,4,4,4,44,42,42,42,40,, 2,02 2

Singapore Switzerland Brazil Spain Netherlands Taiwan Italy South Korea Mexico Belgium Denmark Thailand Sweden Ireland Austria Norway

3 France is ranked highly across the board, with particularly strong interest from European investors and the Services sector Rank by region Rank by sector 4 (+) (+) (+) (-) (-) (-0) 2 Americas Europe Asia 2 Industry Services IT ) United States; 2) Germany; ) UK; ) China Note: Ranks higher than 2 are not reported. Source: 20 A.T. Kearney Foreign Direct Investment Confidence Index

Americas Europe Asia 2 Industry Services IT ) United States; 2) Germany; ) UK; ) China Note:

4 Respondent demographics by industry (N=04) Industry Count Percent Notes Mega-industry Primary goods 26 % Oil & gas, mining, agriculture, etc. Aerospace and defense % Infrastructure and construction 4 % Telecommunications and utilities 4% Heavy industry 44 % Chemicals, primary goods refining/ manufacturing, electronics manufacturing, automobile manufacturing, etc. Industry (%) Light industry % Consumer goods manufacturing, etc. Transportation 2 % Healthcare and pharmaceuticals 40 % Wholesale and retail % Financial services 6 % Non-financial services 40 % Banking, investment funds, insurance, real estate, etc. Consulting, legal, accounting, logistics, hospitality, data processing, etc. Services (4%) Information technology % Hardware, software, services, etc. IT (%) Other 4% Conglomerates, etc. N/A 4

automobile manufacturing, etc. Industry (%) Light industry % Consumer goods manufacturing, etc.

5 France has risen in the top ten rankings in recent years, holding its th place ranking in 20 France s historical position in the FDI Confidence Index Rank Note: Ranks higher than 2 are not reported. Source: 20 A.T. Kearney Foreign Direct Investment Confidence Index

Index Rank 20 20 20 0 20 20 200 2 24 20 0 6 4 2 Note: Ranks higher than 2

6 France attracts a similar level of FDI inflows as do its European neighbors FDI inflows to France and its peers Millions of US dollars France United States United Kingdom Germany Italy Spain Note: 20 is the latest available comparative data, as UNCTAD estimates for 20 FDI inflows include only limited country-level data Sources: UN Conference on Trade and Development, A.T. Kearney analysis 6

Kingdom Germany Italy Spain Note: 20 is the latest available comparative data, as UNCTAD estimates for 20 FDI

7 Investors remain optimistic about the economic outlook in Europe How view on regional economies has changed compared to a year ago 60% 2% 0% 4% 4% 40% 4% 42% 6% % % 2% % 0% 20% % % % 20% % 0% 0% Americas Asia Pacific Europe & Eurasia Middle East & North Africa More optimistic About the same More pessimistic Sub-Saharan Africa Source: 20 A.T. Kearney Foreign Direct Investment Confidence Index

Americas Asia Pacific Europe & Eurasia Middle East & North Africa More optimistic About the same

8 Investors are split on the outlook for France s economy compared to their outlook last year Change in country economic outlooks compared to a year ago Percent US Canada Germany UK Australia Sweden Japan Singapore Switzerland India Austria Taiwan Denmark Ireland Belgium South Korea Netherlands Norway France Thailand Spain Mexico Italy Brazil China More pessimistic More optimistic More pessimistic : More optimistic : 2 Source: 20 A.T. Kearney Foreign Direct Investment Confidence Index

Ireland Belgium South Korea Netherlands Norway France Thailand Spain Mexico Italy Brazil China 2 2 20 2 2 2 2 24 24 2 2 2 2 2 42

9 EU markets would lose some of their attractiveness to investors if the UK exits the union FDI intentions for the European Union Percent 0% 40% 4% Scenarios.% GDP growth Brexit % 0% % 20% 20% % % % % 0% + % % 0% Significant increase Moderate increase No change Moderate decrease Significant decrease Source: 20 A.T. Kearney Foreign Direct Investment Confidence Index

% GDP growth Brexit % 0% + 2 + 4 2% 20% 20% % % % % 0% + % % 0% Significant increase Moderate

10 France s new foreign investment agency Business France is designed to improve the most important factors to investors Most important factors for where to invest Percent Domestic market size Cost of labor Regulatory transparency and lack of corruption General security environment Efficiency of legal and regulatory processes Technological and innovation capabilities Tax rates and ease of tax payment Talent/skill level of labor pool Ease of moving capital into and out of country Availability of financial capital in domestic market Government incentives for investors Research and development (R&D) capabilities Regional/bilateral trade agreements Strength of investor and property rights Availability of raw materials and other inputs Availability of land/real estate Quality of transportation infrastructure Quality of electricity infrastructure Quality of telecommunications infrastructure % % % % 6% 6% % % % % % % % % % % % % % 0% % 0% % 20% Market assets & Infrastructure factors The most important factors relate to the size of the market, labor costs, and the regulatory environment Governance & Regulatory factors Source: 20 A.T. Kearney Foreign Direct Investment Confidence Index 0

payment Talent/skill level of labor pool Ease of moving capital into and out of country Availability of financial capital in domestic market Government incentives for investors Research and

11 A.T. Kearney is a leading global management consulting firm with offices in more than 40 countries. Since 6, we have been trusted advisors to the world's foremost organizations. A.T. Kearney is a partner-owned firm, committed to helping clients achieve immediate impact and growing advantage on their most missioncritical issues. For more information, visit Americas Atlanta Bogotá Calgary Chicago Dallas Detroit Houston Mexico City New York Palo Alto San Francisco São Paulo Toronto Washington, D.C. Asia Pacific Bangkok Beijing Hong Kong Jakarta Kuala Lumpur Melbourne Mumbai New Delhi Seoul Shanghai Singapore Sydney Taipei Tokyo Europe Amsterdam Berlin Brussels Bucharest Budapest Copenhagen Düsseldorf Frankfurt Helsinki Istanbul Kiev Lisbon Ljubljana London Madrid Milan Moscow Munich Oslo Paris Prague Rome Stockholm Stuttgart Vienna Warsaw Zurich Middle East and Africa Abu Dhabi Doha Dubai Johannesburg Manama Riyadh

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