INVEST TO SUCCEED. INVEST TORONTO.

INVEST TO SUCCEED. INVEST TORONTO.

Invest Toronto is your connection to the global business opportunities found in Toronto. Invest Toronto is responsible for attracting foreign direct investment into the City of Toronto. We offer one-on-one consultations to businesses and site selectors making global business investment decisions. Our Services: Complimentary concierge service for businesses Answer all questions and enquiries on investment opportunities in Toronto Facilitate introductions with sector experts and all three levels of government Provide guidance on site location and selection Facilitate business-to-business linkages Provide industry and economic benchmarking analysis Connect clients to qualified professional service individuals Invest Toronto was instrumental in assisting Banco Monex in its initial stages of setting up a Canadian business. Not only did they point us in the right direction for all our set up requirements, they did so in a professional and personable manner. It was a pleasure to deal with people who have the knowledge and passion to assist international businesses in setting up new operations in Toronto. - John Curran, CEO, Monex Canada Inc.

Toronto: A Prime Location with Proximity to the U.S. Toronto businesses have access to a North American market of 533 million consumers with a combined GDP of USD $18.6 trillion The Canada-European Trade Agreement will provide access to an additional market of 500 million consumers and a USD $17 trillion economy 120 million people live within a 500 mile radius of Toronto New York, Chicago, Boston & Washington are all within a 90 minute flight from Toronto 3

The Toronto Region at a Glance Toronto: 4 th largest city in North America Factor City Region Population 2.8 Million 6 Million Labour Force Number of Businesses Office Space (ft 2 ) Retail Space (ft 2 ) Industrial Space (ft 2 ) 1.7 Million 3.4 Million 92,500 203,800 121 Million 78 Million 252 Million 174 Million 175 Million 771 Million Source: City of Toronto Economic Indicators, 2015 4

A City of Economic & Social Opportunity Toronto s Global Standing PwC s Cities of Opportunity In the Top 5 global capitals of finance, commerce and culture (PwC, Cities of Opportunity, 2014) In the Top 5 for quality of intellectual capital and innovation (PwC, Cities of Opportunity, 2014) London New York Singapore Toronto San Francisco 1,235 1,230 1,215 1,211 1,290 In the Top 5 for ease of doing business (PwC, Cities of Opportunity, 2014) 2 nd in health, safety and security of residents and visitors (PwC, Cities of Opportunity, 2014) 2 nd globally for transportation and infrastructure (PwC Cities of Opportunity, 2014) Paris Stockholm Hong Kong Sydney Chicago 1,196 1,191 1,156 1,153 1,133 Source: PwC, Cities of Opportunity, 2014 5

Toronto: 4 th Largest City in North America Toronto makes Forbes Top 10 list of the World s Most Influential Cities Forbes, 2014 THE TOP 10 LARGEST CITIES IN NORTH AMERICA Toronto ranks in the Top 10 most appealing cities to live and work Boston Consulting Group, Decoding Global Talent, 2014 1. Mexico City 2. New York City 3. Los Angeles 4. Toronto 5. Chicago Toronto ranks in the Top 5 cities around the world with the most job opportunities PwC, Cities of Opportunity, 2014 6. Houston 7. Havana 8. Montreal 9. Guadalajara 10. Puebla

A Powerful & Diversified Presence of Global Leaders 7

International Companies Choose Toronto UbiSoft Chose Toronto Ubisoft is a world renowned leader in digital entertainment. Ubisoft chose Toronto when deciding where to locate their new studio to create AAA games such as Splinter Cell. This studio was a major investment, creating over 800 jobs. Ubisoft s decision was based on 4 key criteria: Access to talent from the high quality universities and colleges in the area Strong presence of the film industry Access to a multicultural workforce Great business environment and government support Cisco Chose Toronto For Cisco, Toronto had the right blend of competitive business costs, world class talent, and a strategic location to support their new 108,000 square foot innovation centre on Queen s Quay in downtown Toronto. This is part of their $4 Billion, 1,700 job commitment to Ontario and the Toronto region. Cisco chose Toronto for its: Highly educated workforce Strategic location and time zone Urban lifestyle to attract the right talent Superior tax environment for business

Toronto: Strong and Resilient Economy Soundest banking system in the world - 8 years in a row (World Economic Forum, 2008-2015) During the financial crisis, no Canadian bank or insurer failed and none required bailouts Since mid-2009, Canada has posted the fastest employment growth in the G-7, recouping all of the jobs lost during the recession Canada s credit rating reaffirmed at AAA by Standard & Poor s and Moody s Investors Service, making Canada the only G7 country with a stable top credit rating from both companies (Standard & Poor s and Moody s Investor Service, 2014) Financial Services Employment by Segment in Toronto Segment % of Total Employment Employment Banking/ 143,090 deposit-taking 57% Insurance 50,220 20% Securities/ Investment 55,150 22% Services Other 2,950 1% TOTAL 251,410 Source: Statistics Canada Labour Force Survey, 2014 As one of the world s top ten international financial centres and the second largest in North America, Toronto s success is due in large part to the strength, resiliency and continued growth of its financial industry, which serves as the economic anchor for our excellent talent base, enviable quality of life, and highly competitive business environment. - Janet Ecker, President & CEO, Toronto Financial Services Alliance 9

Toronto: First RMB Trading Hub in the Americas Leveraging Toronto s strengths as the country s financial hub, Toronto was chosen as the first Renminbi (RMB) offshore trading centre in the Americas in November 2014. Our well-developed financial infrastructure, capital markets and risk management expertise, strong economic relationship with China, and the largest and growing Chinese population in Canada, positioned Toronto as the ideal location for an RMB trading hub. This agreement will facilitate increased trade and investment between the two countries, strengthen Ontario s and Canada s broader economic relationship with China, and further reduce business costs. Toronto s Chinatown www.maryelizabetharmstrong.ca 10

2014 GDP in $ Billions Toronto: The Economic Engine of Canada 700 600 $304 Billion Economy In 2014, Toronto s economy grew at its fastest pace in four years and is predicted to expand again by 3.1 per cent in 2015 500 293 400 300 Series2 Toronto Region Series1 Provincial 200 100 0 304 312 301 202 Ontario Quebec Alberta British Columbia Source: Metropolitan Outlook: Spring 2015, The Conference Board of Canada 112 Man./Sask. 33 Nova Scotia 11

A Diversified Regional Economy Share of GDP (%) by major industry grouping Personal Services, 2% Education, 6% Health Care, 7% Public Administration, 6% Business Services, 13% Primary & Utilities, 2% Construction, 4% Manufacturing, 8% Real Estate, Rental & Leasing, 14% Wholesale, 5% Retail, 4% Transportation & Warehousing, 3% Financial Services, 18% Information, Culture, Entertainment & Hospitality, 9% 12 Source: City of Toronto (Estimates as of 04/2015)

USD$ Toronto Has It All: Low Operating Costs 10 Year Average Annual Operating Costs 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Taxes Facility Lease Utilities Transportation Labour 0 Source: KPMG Competitive Alternatives Model, 2014 13

Toronto Has it All: Competitive Business Taxes With the combined income tax rate of 26.5%, our competitive taxes are approximately 13 percentage points lower than the U.S. average The general Federal/Ontario corporate tax rate of 26.5% is below the level of most G-7 countries The Federal/Ontario corporate tax rate on manufacturing and processing is 25% The Federal/Ontario small business tax rate is 15.5% Ontario Texas Florida North Carolina New York California Competitive Corporate Income Tax Rates Ontario vs. Selected U.S. States, 2014 26.5% 35.7% 38.6% 38.9% 39.6% 40.7% Rates are the combined federal corporate income tax (CIT) rates for 2014 based on information and legislation available Source: Ontario Ministry of Finance, 2014 14

Toronto Has It All: Universal Health Care Universal Public Health Care Means Competitive Labour Costs Ontario employers enjoy health costs that are half that of their counterparts in the United States. All citizens and permanent residents in Ontario have access to our universal health care system under the Ontario Health Insurance Plan, which covers the full cost of doctor examinations, medical testing, emergency care, and hospital care. Labour Costs Comparison, Per Employee Country United Kingdom 82,930 Average Per Employee (USD$) Canada 89,038 Italy 92,287 France 93,450 Japan 94,067 United States 102,249 Germany 104,440 Source: KPMG Competitive Alternatives, 2014 www.maryelizabetharmstrong.ca 15

The Most Generous R&D Tax Credits in the G7 Canada & Ontario combined have one of the most generous R&D tax incentive programs in the world 15.8% R&D cost advantage relative to the U.S. (KPMG Competitive Alternatives, 2014) Available to qualified businesses of any size, and applies to a range of eligible costs that is broader than the U.S. Tax credits can be carried back for 3 years and forward for 20 years, and there is no cap on the program Each year, the SR&ED program provides over $4 billion in investment tax credits to over 18,000 claimants (Government of Canada, 2015) SR&ED Small and medium-sized non-manufacturers 2014: public, private or foreign-owned R&D Expenditures at eligible Ontario research institutes R&D Expenditures Gross expenditure $100.00 $100.00 Ontario-10% OITC ($10.00) ($10.00) Ontario - 20% OBRI Tax Credit ($20.00) Ontario - 4.5% ORDTC ($4.05) ($3.15) Federal investment tax credit - 15% ($12.89) ($10.03) Tax deduction (Combined Federal of 15% and Provincial of 11.5% = 26.5%) ($19.36) ($15.06) After-tax cost of $100 expenditure $53.70 $41.76 16

The Toronto Stock Exchange: A Global Leader 1 st In Mining and Oil & Gas 62% of the equity capital raised globally for mining 1 st In Exchange-Traded Funds (ETFs) Originator of the world s first ETF 1 st In Clean Technology 1 st in the world by number of listed renewable energy & clean technology companies 2 nd In Listings 2 nd in the world by number of listed companies Great Entry Exchange Unique feeder system facilitates graduation from junior market (TSXV) to senior market (TSX) 2 nd In Technology 2 nd in North America by number of technology companies 17

1 st G20 Nation to Become a Tariff Free Zone The Government of Canada has eliminated all tariffs on manufacturing inputs, machinery and equipment. Canada is the first country in the G20 to do so. Source: Government of Canada 18

Toronto s World-Class Talent: Ready to Work Toronto s stable labour force with low turnover rates places it in the Top 3 cities in the world for recruiting, employing and relocating employees (Aon Hewitt, 2013) 4 Universities and 4 Colleges with 260,000 full-time students annually Educated workforce 65% of Ontarians have completed postsecondary education, more than any other OECD country (Invest in Ontario, 2014) Canada s workforce is the most highly educated among members of the OECD (Invest in Canada, 2015) Toronto is a leading choice for international students Ontario College of Art and Design University in Downtown Toronto We love the culture in Toronto. It is really similar to our Auckland and Melbourne offices in terms of location, neighbours, and people. There are exciting, positive, educated, and lovely people to work with and employ. We love it here! - Vaughan Rowsell, Vend Founder and CEO 19

Toronto s Diversified Labour Force % Foreign-Born Population 40.0% 34.4% 30.8% 22.6% 18.7% 51% Toronto s foreign-born population is by far the largest in all urban centres in Canada, making it the country s most diverse and multicultural city. (Statistics Canada, 2013) 8.6% 17.7% 17.3% 16.3% 13.5% With a strong economy, magnificent scenery and an excellent social security system, Canada is a dream expat destination. (HSBC Expat Explorer Survey, 2014) Source: Statistics Canada, 2013. National Household Survey Profile, 2011 Source: US Census Bureau, 2007-2011 American Community Survey Our richly multicultural society, comprised of people from all over the world, can help you build and maintain ties in global markets. - Invest in Ontario, 2015 20

Canada: The Best Country for Business Canada ranked in the Top 10 in Forbes Most Reliable Countries for Business, 2015 report Canada ranked 2 nd out of 157 countries in Bloomberg s Review of The Best Countries for Business, 2014 Best Countries for Business Bloomberg, 2014 Rank Country 1 Hong Kong 2 Canada 3 United States 4 Singapore 5 Australia (tied) Canada is the No. 1 country in the world to do business - John Chambers, Chairman and CEO, Cisco Systems 5 Germany (tied) 7 United Kingdom 8 Netherlands 9 Spain 10 Sweden 21

Doing Business in Canada is Easy I moved to Toronto almost 25 years ago because I thought it was a great place to establish a head office. In addition to being a vital transportation hub, it provides the location, people and infrastructure to make any venture viable. - Robert J. Deluce, President and CEO, Porter Airlines Inc. Soundness of banks (1) Number of procedures to establish a business (2) Environmental laws support business competitiveness (3) Low business cost of crime (3) Red tape (4) Toronto lowest risk city in the world to recruit, employ and redeploy workers (5) Financial market sophistication (6) Country credit rating (1) Availability of financial services (1) 1 st 1 2 nd 2 nd 2 nd 3 rd 3 rd 3 rd 5 th 1) World Economic Forum, The Global Competitiveness Report, 2014-15 2) World Bank, Doing Business 2015 3) KPMG, Competitive Alternatives, 2014 4) Forbes Magazine, Best Countries for Business, 2014 5) Aon Hewitt People Risk Index 2013 6) World Economic Forum, The Financial Development Report, 2012 22

Toronto: A Great Place to Work and Live In 2015, the Economist Intelligence Unit s (EIU) Liveability Report ranks Toronto in the Top 5 Cities to live in the world, and the EIU Safe Cities Index named Toronto the best place in the world to live and the safest city in North America.* *The ranking is based on a number of factors, including safety, liveability, cost of living, environment, democracy and food security. Melbourne Vienna Vancouver Toronto Sydney Montreal Tokyo Frankfurt Berlin Copenhagen Munich Paris Chicago Boston Singapore San Francisco London New York Economist Intelligence Unit Liveability Report, 2015 87.2 86.6 88.7 88.7 91.1 90.5 92.6 92.3 94 93.5 94.8 94.7 94.7 96.1 Source: Economist Intelligence Unit, Liveability Report, 2015 97.5 97.4 97.3 97.2

Toronto: A Forward-Looking Smart City Toronto ranks in the Top 10 Smartest Cities in North America due to its continued commitment to smart densification with the ongoing transformation of its waterfront area (The Top 10 Smartest Cities in North America, Fast Company) Toronto named Intelligent Community of the Year by the Intelligent Community Forum at the New York Summit (June 2014), for creating inclusive economic opportunity and improving competitiveness through the use of broadband and IT in its Waterfront Community Toronto Waterfront www.maryelizabetharmstrong.ca 24

Toronto Connects you to Business Toronto s Business Opportunities Bulletin Board: A free online searchable listing of confidential prospects to help you expand into the Toronto market. Listings on the bulletin board are divided into six broad categories: 1. Companies for sale (M&A) 2. Companies seeking equity investment 3. Company buyers/investors 4. Excess capacity 5. Joint venture and licensing opportunities 6. New ventures For more information, please visit www.toronto.ca/business-opportunities 25

Incorporating a Business in Toronto Incorporation (Subsidiary) Federally 25% of a federal corporation s board of directors are required to be Canadian residents. Federal corporation requires greater disclosure and filing requirements. Federal corporations can headquarter in any Canadian province. Provincially To operate in Ontario, corporations must either be registered federally or provincially in Ontario. Professional corporations are only available at the provincial level. Ontario corporations require 25% of their directors to be Canadian residents. Branch office A branch is an extension of its non- Canadian parent corporation A subsidiary, a federally or provincially incorporated business, is a separate legal entity from its parent. The key distinction between a branch and a subsidiary is that a branch is not a separate legal entity; the non-canadian corporation is subject to liabilities incurred by the branch in Canada. Additionally, the benefits of incorporating federally or provincially do not apply to a branch office. 26

Business Visas/Immigration Temporary Intra-Company Transfer Permits international companies to temporarily transfer qualified employees to Canada Once the business is functional, the employee can apply for Permanent Residency as either a Skilled Worker/Professional or a Provincial Nominee, provided that they have worked in Canada for one year Foreign Worker Process A positive Labour Market Opinion (LMO) is generally required to hire a temporary foreign worker if an Intra-company Transfer was not obtained Permanent Provincial Nominee Program Ontario nominates individuals and their families for permanent resident status based on a pre-approved job offer in the province Skilled Workers and Professionals Applicants must have an offer of permanent, full-time employment Toronto is a welcoming city for immigrants to work and live Start-Up Visa Enables immigrant entrepreneurs to launch innovative businesses that will create jobs in Canada and compete globally An applicant must secure a minimum investment of $200,000 if the investment comes from a designated Canadian venture capital fund or a minimum investment of $75,000 if it comes from a designated Canadian angel investor group Toronto is home to over 100,000 new immigrants every year (Statistics Canada) 27

Toronto Meets Your Business Needs We launched our business here and it gave us the opportunity to take our idea, grow it and start to export it around the world. Now we re in over 100 countries and selling to over 50,000 customers worldwide. And it all started right here in Toronto. - Paul Rowan, Co-Founder of Umbra Market Access World Class Talent Quality of Life Competitiveness Global Standing NAFTA (North American Free Trade Agreement) and CETA (Canada- European Union Comprehensive Economic and Trade Agreement) combined provide open access to 1.03 billion consumers with a combined GDP of over USD $37 trillion Toronto is a city of unparalleled diversity and talent. Over 51% of Toronto s almost 3 million residents were born outside of Canada The Economist Intelligence Unit ranked Toronto as the best city in the world to live and the safest city in North America (Safe Cities Index, 2015) Toronto has lower business costs than the 31 largest cities in the United States (KPMG, Competitive Alternatives, 2014) Toronto was named the #1 most reputable city in the world out of 100 global cities (Reputation Institute, 2015)

CONTACT Invest Toronto 001 416 981 3888 info@investtoronto.ca www.twitter.com/invest_toronto www.investtoronto.ca