ANNUAL REPORT STRATEGIC PLAN

2014 2015 ANNUAL REPORT STRATEGIC PLAN

The new Ohio. It s where transformation happens. Each year, more and more businesses succeed here. And their success means jobs. Ohioans are charging forward, leading the way as the workforce of the future. Businesses choose Ohio because it s a place they can grow. A place to build a legacy.

JOBSOHIO TABLE OF CONTENTS LEADERSHIP MESSAGES 1 Letter from Chairman and 1 President & Chief Investment Officer Governor s Letter 7 PERFORMANCE SUMMARY 8 Economic Overview 10 JobsOhio Results 14 Project Pipeline 17 Foreign Direct Investment 18 STRATEGIES 20 Biohealth 22 Information Technology 28 Advanced Manufacturing 30 Shale Energy & Petrochemicals 34 Workforce 36 Revitalization 38 REGIONAL NETWORK PARTNERS 40 Appalachian Partnership 42 Columbus 2020 43 Dayton Development Coalition 44 REDI Cincinnati 45 Regional Growth Partnership 46 Team NEO 47 JobsOhio is a private, non-profit corporation designed to drive job creation and new capital investment in Ohio through business attraction, retention, and expansion efforts. FINANCIALS 48 Liquor Enterprise Performance 51 JobsOhio Financials 52 JobsOhio Beverage System Financials 54 GOVERNANCE 56 Governance Update 58 Board of Directors 59

A MESSAGE FROM OUR LEADERSHIP Ohio s economy is improving. The state s unemployment rate at the end of 2014 stood at 4.8 percent, its lowest level since 2001 and well below the national unemployment rate. JobsOhio experienced significant growth in 2014. The company posted a strong increase in performance results over 2013, invested in its operations and added key positions to the JobsOhio team. Even with this growth, the financial position of JobsOhio remained strong. We also worked with business leaders and advisors to complete the strategic plans for our targeted industries, positioning JobsOhio and its partners to capitalize on opportunities across the state. In the midst of this activity, we remained true to the core mission of JobsOhio to drive job creation and new capital investment in Ohio through business attraction, retention, and expansion. We delivered on this mission with a relentless focus on our clients, the companies that are growing jobs and investing in Ohio, while leveraging the competitive advantages of the JobsOhio model. As we implemented this model, JobsOhio invested resources and initiated programs to expand our client base and to be a more effective partner with companies during their growth and expansion efforts. Some of these initiatives will create benefits over the long run, and our ability to take a longer-term perspective to economic development better aligns us with our clients strategic plans. Through our industry strategies and development programs, we must continue to innovate and develop capacities to keep pace with our clients needs. Looking more broadly, Ohio s economy is improving. The state s unemployment rate at the end of 2014 stood at 4.8 percent, its lowest level since 2001 and well below the national unemployment rate. Ohio incomes are improving relative to the rest of the nation, with wage growth exceeding the U.S. rate since the beginning of 2011. In addition to labor market improvement, Ohio s gross state product has grown faster than the national gross domestic product since January 2011, and its share of the U.S. GDP has increased during the last four years. Ohio is once again on solid ground, and the outlook for long-term growth remains positive. INCREASED RESULTS In 2014, JobsOhio assisted 276 companies that committed to creating 21,377 new jobs, retaining 52,140 jobs, and adding $6.1 billion of new capital investment in the state. Our 2014 metrics represented 20 percent growth in job creation and more than 70 percent growth in new capital investment over 2013. Results continued to reflect a diverse industry base throughout the state. Industries such as Advanced Manufacturing, Information Technology, Food Processing, Automotive, and Energy posted strong results. Also, the companies JobsOhio assisted represent a mix of large corporations, middle market companies and small businesses across the state. Middle market companies and small businesses together comprised more than two-thirds of job creation, retention, and new capital investment. JobsOhio achieved this strong growth in a competitive environment. Part of our performance and success is shown through our clients who continue to work with us as they grow their businesses in Ohio. For example, ThyssenKrupp, a high-tech automotive supplier, has completed three projects with JobsOhio as the company continues to gain market share and create new product lines. Another example is zulily, an online retailer JobsOhio and Columbus 2020 attracted to Ohio three years ago. The company has completed two additional expansions following its rapid growth since its 2013 IPO. These are just two of many companies 1

A LETTER FROM OUR CHAIRMAN AND PRESIDENT & CHIEF INVESTMENT OFFICER that have completed multiple expansion projects with JobsOhio. When clients continue to turn to JobsOhio with projects, it s proof our business model is working. The story of Fuyao in Ohio illustrates this very well. JobsOhio started 2014 with the attraction of Fuyao, a China-based glass manufacturing company, and its first North American automotive glass operation. This project brings 800 new jobs and $230 million of new capital investment to Moraine at the former shuttered General Motors plant. In early 2015, Fuyao announced the expansion of this facility to include the company s after-market glass production, adding another 750 jobs and $130 million capital investment. Combined, the Fuyao projects in Ohio are bringing $360 million in total investment and 1,550 new jobs, ranking it the fifth largest project in the U.S. by a China-based company. The attraction of Fuyao shows how our focus on developing strong relationships with clients is working. This project also shows how JobsOhio is expanding our international outreach. Foreign direct investment efforts represent an increasingly important part of our project activity and client generation; already, we are seeing additional opportunities with other China-based companies. Our 2014 metrics represented 20 percent growth in job creation and more than 70 percent growth in new capital investment over 2013. Ohio, the rest of the country, and international players are taking notice of the growth in the state. The American Economic Development Institute (AEDI) ranked JobsOhio among the top 10 economic development institutions in the U.S. for 2014, placing JobsOhio seventh in its rankings. AEDI recognized our unique model and creative approach, particularly its dedicated funding source and One Firm, One State collaboration with statewide partners. In addition, Site Selection magazine ranked Ohio in the top 5 of its 2014 Top State Business Climate Rankings. Combining the capabilities of JobsOhio with the state s business 2 assets, Ohio has become more attractive to companies and executives looking to invest and grow. They recognize the financial stability in Ohio, its common sense regulatory environment, and strong workforce, all of which gives them greater certainty around issues affecting their businesses. GROWING OPERATIONS In addition to the project wins and job creation results, JobsOhio invested time and resources in 2014 to strengthen the JobsOhio platform with a long-term view toward continued growth and sustained performance. From an operations perspective, our accomplishments included: Addition of domestic and international sales teams, and a research team to expand our lead-generation capabilities and project resources Launch of the JobsOhio Revitalization Program, including the creation of program guidelines and policies. To date, we have 31 revitalization projects with more than $31 million of program funding committed Monthly reporting on executed agreements with companies that receive JobsOhio grant or loan assistance, illustrating our transparency by keeping the public informed on how we use our funds Overhaul of the JobsOhio real estate site database and selection tool with enhanced regional access and more comprehensive information Building of better client data management systems through a stronger Salesforce platform Streamlining processes and procedures related to our loan and grant programs, including agreements, disbursements, and fund management Another key enhancement to project management involves increased due diligence of companies receiving JobsOhio assistance. Each time JobsOhio provides a loan or grant to a company, we evaluate the project with our improved financial models to ensure a disciplined use of funds with acceptable returns. This is another way we are ensuring the long-term success and sustainability of JobsOhio.

STRONG FINANCIAL PERFORMANCE In 2014, our financial position improved through the growth of the liquor enterprise. The revenue of the JobsOhio Beverage System (JOBS) increased 5.6 percent, consistent with its long-term trend of modest growth. Combined with stable profit margins of 31.1 percent, liquor enterprise profits and cash flow increased over the prior year. In September, Moody s upgraded the JOBS Liquor Franchise bonds to Aa3 from A2 and revised the outlook to stable. In August, JOBS made its first deferred payment to the state, totaling $14 million for fiscal year 2014, representing additional consideration paid to the state for its sale of the liquor enterprise to JOBS. Combining the capabilities of JobsOhio with the state s business assets, Ohio has become more attractive to companies and executives looking to invest and grow. Financial growth at JobsOhio and JOBS resulted in greater liquid assets, providing opportunities to invest in improvements to the operations of both companies. Our JOBS team continued to identify business initiatives to improve the liquor enterprise, including the modernization of the Division of Liquor Control s technology systems. In February 2015, this upgrade of IT hardware and software was completed, including the implementation of new equipment in all liquor agency stores. This $18 million investment by JOBS will significantly enhance our ability to manage liquor inventory and analyze sales data, resulting in greater customer satisfaction and more efficient operations throughout the state. At JobsOhio, operating expenses increased last year from the build-out of our economic development platform. This spending results in greater efficiencies and better programs to enhance our client relationships and benefit companies in Ohio. In addition to operational enhancements, the stronger JobsOhio balance sheet provides increased long-term funding capacity to attract companies that grow jobs and invest capital in Ohio. Our financial capacity and funding flexibility provide us with an advantage over other states when competing for development projects, but this competition often includes overly aggressive offers from other states. Even with our capital advantage, we will maintain a disciplined use of funds and continue to cultivate strong client relationships when attracting companies to Ohio and investing in its long-term economic future. Once again, an independent national accounting firm completed its fiscal year-end financial audit, providing unqualified opinions on the financial statements for JobsOhio and JOBS. STRATEGIC FOCUS In last year s annual report, we discussed launching specific initiatives to enhance efforts around job creation and business expansion over the next few years. In 2014, these initiatives had strong engagement from private and public-sector leaders, including CEOs, university presidents, and other key stakeholders. Their involvement helped identify opportunities and how to capitalize on them with our development partners. One of these initiatives resulted in JobsOhio announcing its plan to launch a customized workforce training initiative. The need for workforce assistance is growing as the skill sets required at companies evolve. Our clients often share the challenges they face finding workers with the right skills. We are creating a workforce development team at JobsOhio, which will collaborate with the Governor s Office of Workforce Transformation as well as community colleges, technical schools, and other institutions. This customized initiative will be tied directly to the projects that we execute with companies, allowing JobsOhio to compete more effectively with workforce programs provided by other states. We believe this new initiative will bring additional value to our clients and make Ohio an even better place for these companies to grow. 3

A LETTER FROM OUR CHAIRMAN AND PRESIDENT & CHIEF INVESTMENT OFFICER Another initiative to enhance job creation and expansion involved the JobsOhio targeted industries. Last year, our annual report described several game changers identified by McKinsey & Co. that are expected to drive economic growth in the U.S. The report also discussed how Ohio s industry diversification has positioned the state to capitalize on each of these game-changing opportunities. To that end, JobsOhio has fine-tuned its sector focus on specific strategies that will drive job growth and investment. Our managing directors completed strategic plans for each of these target industries and are beginning to execute these strategies this year. We believe the new workforce initiative will bring additional value to our clients and make Ohio an even better place for these companies to grow. Information Technology is another industry that remains a key focus for JobsOhio. Data analytics is just one of the IT sectors growing in Ohio, through the attraction of companies building data centers and using Big Data applications. We have seen significant investments in Big Data and cybersecurity through efforts like the Columbus Collaboratory, an initiative of seven of central Ohio s largest companies from various industries American Electric Power, Cardinal Health, Huntington Bank, Limited Brands, Nationwide Insurance, Ohio Health, and Battelle. This industry diversification, combined with a talented workforce and low cost of living, make Ohio an attractive area for IT. The state s emphasis on providing the necessary IT infrastructure has accelerated the industry s development. Assets like OARnet and its 100 Gigabit per second network and the Ohio Supercomputer Center provide nationally renowned resources to help institutions and companies drive R&D and innovation. For example, Shale Energy remains a priority sector for JobsOhio, given the activity and investment in the state over the last several years. Still in its early stages, Utica Shale continues to benefit companies that supply the products needed to build out oil and gas infrastructure. In the long run, shale provides relatively low energy and feedstock costs, making Ohio an attractive location for energy-intensive manufacturing companies using natural gas. However, the economic changes over the last few months have affected the energy landscape. With natural gas prices and oil prices declining significantly in the last 12 months, there is reason to be cautious about economic growth linked to Utica Shale development. Since Utica is a strong wet gas play, it provides operators multiple revenue streams that may soften the adverse impact on 2015 drilling activity in Ohio versus states with mostly oil-producing shale. We have seen some early signs of adverse impact on equipment suppliers based in Ohio; however, over the next few years, we still expect that Utica Shale will provide positive growth opportunities especially in midstream and downstream industries. From this activity and investment, Ohio is seeing more startups specializing in Big Data and other IT sectors. This has resulted in a growing, vibrant early-stage environment across the state in areas like Northeast Ohio with the internationally-recognized Youngstown Business Incubator; Southeast Ohio with Ohio University s Center for Entrepreneurship; and Southwest Ohio with CincyTech and Cintrifuse. These regional efforts, combined with state programs like Ohio Third Frontier that helps startups gain traction at pre-seed and seed stages, will continue to drive innovation and attract talent to Ohio. Recognizing the importance of early-stage companies to economic growth, JobsOhio looks for ways to supplement these efforts and assist these companies to enhance their prospects for growth and success. We highlight Shale Energy and IT along with several other targeted industries and strategic initiatives later in this annual report. 4

PARTNERSHIPS AND ACCOMPLISHMENTS The contributions and support from our partners were essential to the achievements of JobsOhio. Starting with our regional network, we continue to strengthen the collaboration among the six regional organizations that, together with JobsOhio, have established an effective statewide platform that will help execute the JobsOhio strategic plan. Last year, two of these six entities underwent reorganizations that should strengthen their regional economic development capabilities; we look for them to increase their performance in 2015. In this year s annual report, we highlight the activities of each of these six partners and their valuable roles in the JobsOhio model. We also recognize the importance of our local partners in counties, cities, and townships. In many of our projects, companies praised the teamwork at the local, regional, interests of JobsOhio stakeholders. People have been taking notice; over the last two years, we have delivered for our clients by helping make Ohio more attractive to companies looking to invest and grow while adhering to strong ethical standards. LOOKING AHEAD In 2015, JobsOhio will continue to leverage resources, including our strong team of associates. Compared to a year ago, JobsOhio has twice as many people executing our mission and serving our clients, leading to greater results and improved performance. JobsOhio has maintained a focus on metrics, including the project wins mentioned earlier as well as the prospects coming from our industry strategies. Building our pipeline of potential projects takes on even greater importance as we compete with other states. We ended 2014 with a healthy pipeline, but we need to grow it. We have Starting with our regional network, we continue to strengthen the collaboration among the six regional organizations that, together with JobsOhio, have established an effective statewide platform that will help execute the JobsOhio strategic plan. and state levels. As we have grown, local development entities have asked for stronger relationships with JobsOhio. With our regional network, we are constantly looking to enhance the interaction and involvement of all development participants in our projects. In 2015, we will increase these efforts, starting with a regional tour to visit our local partners across the state. We are proud of what JobsOhio has accomplished to date and look forward to continuing our efforts to help Ohio grow and prosper. These accomplishments have all come with a constant focus on transparency, accountability, and compliance. In addition to the annual financial audit previously mentioned, JobsOhio completed its annual compliance and control review with its independent accounting firm and the Ohio Auditor of State. Combined with other practices like the Independent Review Panel that assesses project activity, JobsOhio maintains its emphasis on Corporate Governance to provide a framework for fulfilling its mission and balancing the charged the JobsOhio team, including our six regional partners, with expanding outreach and increasing the pipeline to drive the long-term success of Ohio. JobsOhio will also pursue more opportunities to leverage and promote the valuable assets of the state, particularly through the efforts of our Marketing team. In the third quarter of last year, JobsOhio launched a series of advertisements focused on game changers to drive awareness of Ohio to growing companies. In 2015, JobsOhio will continue to implement its Marketing plan to build the Ohio brand for business. The Marketing team has developed a focused strategy with targeted messaging to job creators and will prioritize activities that reflect retention, expansion, and attraction efforts by leveraging the JobsOhio industry strategies. Like other activities, marketing a more consistent and impactful message will require greater collaboration with our regional partners. Together we will coordinate the state and regional plans. 5

A LETTER FROM OUR CHAIRMAN AND PRESIDENT & CHIEF INVESTMENT OFFICER OUR PEOPLE The success of JobsOhio has been the result of a talented, hardworking, and mission-focused team. We are fortunate to have this group of dedicated associates who are key to defining the character and culture of JobsOhio today and in the future. We continue to spend considerable time and effort in recruiting each position to ensure that every new associate builds on the positive culture of JobsOhio. We thank Steve Davis and Gordon Gee for their service on the JobsOhio Board of Directors. Both were members of the Board since the inception of JobsOhio and were active in the startup of JobsOhio and the development of its Corporate Governance principles. We appreciate their contributions to JobsOhio and wish them well. We welcome John Bishop, Steve Perry, and Barbara Snyder to the JobsOhio Board. We are excited about the addition of these talented directors and look forward to benefitting from their experience and leadership. Finally, we want to express our gratitude to our clients for their business, the JobsOhio Board of Directors for its governance and strategic guidance, the associates at JobsOhio for their commitment, and our statewide partners for their support. We have charged the JobsOhio team, including our six regional partners, with expanding outreach and increasing the pipeline to drive the long-term success of Ohio. JobsOhio experienced great growth last year as we continued to demonstrate the advantages and capabilities of a private, non-profit company driving economic development and job creation. While we still have much more work in front of us, we are excited about the prospects for Ohio. James C. Boland Board Chairman John F. Minor, Jr. President & Chief Investment Officer 6

A MESSAGE FROM THE GOVERNOR Ohio continues to transform and become the place where job creators want to be, and JobsOhio plays a huge role in that work. In less than four years, JobsOhio has distinguished itself as an economic development organization that is not duplicated anywhere in the U.S. Its commitment to fostering a jobs-friendly climate has been critical to helping Ohioans make their state the place where new businesses look first and existing businesses grow. Not only does Ohio have a strong business-friendly environment, our workforce is unlike any other and it s only getting better. When businesses employ Ohioans, they are employing hardworking people with strong Midwest values. JOHN R. KASICH Governor, State of Ohio General Electric is building its U.S. Global Operations Center in Cincinnati, which is expected to create 1,400 jobs over the next five years the biggest job announcement in Ohio in the last decade. Fuyao Glass America Inc., a subsidiary of Fuyao Group, the largest exporter of automotive glass in China, will build its first North American automotive glass manufacturing facility in the Dayton region, adding more than 1,500 new jobs. This marks the largest Chinese investment ever in Ohio. Alliance Data, one of the nation s leading providers of branded credit card programs, plans to expand and consolidate its Columbus operations at a new office campus where it will add 700 new jobs. Adena Health System will occupy 100 percent of the historic Carlisle building in Chillicothe, which is undergoing a $7 million renovation after sitting vacant since 2003 due to arson damage. It is the first project to benefit from the JobsOhio Revitalization Program. Lubrizol Advanced Materials Inc. plans to expand its Brecksville facility to attract the workforce talent required for the company s future growth. The expansion is expected to create 73 new jobs and $25 million in capital investment. McLane, one of the nation s leading wholesale suppliers to grocery retailers and restaurants, has committed to create 425 jobs and invest $119 million at a new distribution facility in Findlay, Ohio. Successes like these build an environment where all Ohioans can begin to reap long-term benefits of our state s continued renaissance and it s all due to teamwork. The collaboration between JobsOhio and its regional partners made possible projects that created 21,377 jobs and $6.1 billion in capital investment in 2014. Our work together is making the difference, and the word is getting out. JobsOhio was recognized by the American Economic Development Institute (AEDI) as a top 10 economic development organization for 2014. The AEDI highlighted the distinctive approach JobsOhio utilizes, which sets the organization apart from other states. Not only is our work getting the state back on track, we are setting the pace for America to follow. Ohio is brimming with vitality, and the teamwork that made Ohio so successful this past year is what will take us into the future. I ve never felt more optimistic about where Ohio is going. Come be a part of it. John R. Kasich Governor, State of Ohio 7

New Jobs Retained Jobs Capital Investment In the last few years, we have created a model for economic development that is clearly working in Ohio. - John Minor, President & CIO, JobsOhio 8

PERFORMANCE SUMMARY HIGHLIGHTS FROM 2014 21,377 NEW JOBS 52,140 RETAINED JOBS $6.1 Billion CAPITAL INVESTMENT 9

PERFORMANCE SUMMARY OHIO ECONOMIC OVERVIEW The Ohio economy continued on a strong growth trend in 2014. Private sector job and wage growth outpaced the geographic region over the past four years. Gross State Product (GSP) also outpaced the region and the U.S. Employment in the Ohio private sector increased by over 285,000 jobs from January 2011 to December 2014. Over the last four years, and in 2014 specifically, manufacturing, professional and business services, and natural resources and mining industries led overall employment growth in a diverse state economy. Additionally, rapid growth in Ohio s data processing sector is fueling growth in a variety of research applications including biotech and marketing analytics. The state budget surplus, high credit rating, pro-business tax climate and increasing exports continue to support economic growth. Additionally, the Federal Reserve Bank of Cleveland reported in January 2015 that manufacturing demand, freight volume, the commercial building project pipeline, and demand for business credit all increased in the last six weeks of 2014. Among all major sectors, manufacturing is leading Ohio s economic recovery. Within this broad group of industries, automotive manufacturing is playing a key role. Ohio s auto manufacturing employment reached its highest level since the third quarter of 2008. The industry has regained nearly all of the jobs lost during the recession, with payrolls at levels last achieved right before the restructuring of the national auto industry. Moody s Analytics EMPLOYMENT CHANGE TOTAL AND PRIVATE SECTOR 5.3% 4.7% TOTAL EMPLOYMENT OHIO 6.7% Four Years Ended Dec. 2014 Source: U.S. Bureau of Labor Statistics, CES PRIVATE SECTOR EMPLOYMENT REGIONAL STATES IL, IN, KY, MI, PA, WV Three Years Ended Dec. 2013 Source: U.S. Bureau of Economic Analysis 6.0% STATE/NATIONAL GDP CHANGE PRIVATE SECTOR 9.3% OHIO 7.1% 5.5% PRIVATE SECTOR REGIONAL STATES IL, IN, KY, MI, PA, WV WAGE CHANGE PRIVATE SECTOR 6.4% 7.3% 6.4% U.S. PRIVATE SECTOR 10 Data represents the most recent available information. OHIO REGIONAL STATES IL, IN, KY, MI, PA, WV Three Years Ended June 2014 Source: U.S. Bureau of Labor Statistics, QCEW U.S.

PERFORMANCE SUMMARY TARGETED INDUSTRIES JobsOhio focuses on nine targeted industries: Advanced Manufacturing, Aerospace & Aviation, Automotive, Biohealth, Financial Services, Food Processing, Information Technology, Logistics & Distribution, and Shale Energy & Petrochemicals. Recently, these industries contributed to the state s GSP at a faster rate than regional states and the nation as a whole. These industries are also growing at a faster rate than the rest of the private sector within the state. They reflect Ohio s competitive advantage and generally pay salaries above the average for other private sector jobs. STATE/NATIONAL GDP CHANGE PRIVATE SECTOR 14.7% 6.9% 8.8% Recent employment growth in JobsOhio targeted industries was led by Automotive, Energy, and Information Technology. GSP growth was led by Energy, Aerospace and Aviation, and Biohealth. Since GSP growth supports job growth, this bodes well for job creation in these industries, as well as the sectors in the supply chains that support them. OHIO JOBSOHIO INDUSTRIES REGIONAL STATES IL, IN, KY, MI, PA, WV Three Years Ended Dec. 2013 Source: Moody s Analytics (economy.com) Analysis by Cleveland State University, Center for Economic Development U.S. EMPLOYMENT CHANGE IN OHIO PRIVATE SECTOR AVERAGE ANNUAL SALARY IN OHIO PRIVATE SECTOR INDUSTRIES 2014 7.6% $75,019 5.1% $36,702 JOBSOHIO INDUSTRIES OTHER INDUSTRIES JOBSOHIO INDUSTRIES OTHER INDUSTRIES Three Years Ended March 2014 Source: U.S. Bureau of Labor Statistics, QCEW Analysis by Cleveland State University, Center for Economic Development Source: U.S. Bureau of Labor Statistics, QCEW Analysis by Cleveland State University, Center for Economic Development Data represents the most recent available information. 11

PERFORMANCE SUMMARY OHIO EMPLOYMENT BREAKDOWN Other Sectors* One of Ohio s greatest economic strengths is the diversity of its industries. The JobsOhio targeted industries account for nearly one-fourth of Ohio s employment. Government Educational Services Other Manufacturing 4.1% 8.5% 4.1% 32.5% OHIO EMPLOYMENT 5.5 MILLION JOBS 23.5% 10.9% 16.3% Retail Trade Healthcare & Social Assistance NO. OF JOBS 250K JOBSOHIO INDUSTRY FOCUS 1.3 MILLION JOBS 200K 16.7% 150K 12.3% 13.3% 14.3% 100K 50K 3.1% 4.6% 5.3% 6.7% 7.3% 7.8% 8.6% 0 Aerospace & Aviation Back Office Food Processing Biohealth Shale Energy & Petrochemicals *Other Sectors: Agriculture, Construction, Entertainment, Food Service, Forestry, Real Estate, and Recreation Sources: U.S. Bureau of Labor Statistics QCEW and LAUS Analysis by Cleveland State University, Center for Economic Development Data represents the most recent available information. Information Technology Automotive Logistics & Distribution Financial Services Headquarters & Consulting Advanced Manufacturing 12

PERFORMANCE SUMMARY OHIO GROSS STATE PRODUCT BREAKDOWN Other Sectors* Healthcare & Social Assistance Retail Trade 8.5% 5.9% 34.5% OHIO GSP $565 BILLION 35.4% 11.3% 3.5% Other Manufacturing Government.9% Educational Services The JobsOhio targeted industries account for over one-third of the state s gross product. GSP BILLIONS $40 $30 JOBSOHIO INDUSTRY FOCUS $ 200 BILLION TOTAL GSP 19.3% 17.5% 15.2% $20 11.5% $10 2.2% 3.8% 5.0% 5.7% 6.0% 6.2% 7.5% 0 Back Office Aerospace & Aviation Automotive Logistics Headquarters Food & Distribution & Consulting Processing Information Technology Biohealth Shale Energy & Petrochemicals Advanced Manufacturing Financial Services *Other Sectors: Agriculture, Construction, Entertainment, Food Service, Forestry, Real Estate, and Recreation Sources: Moody s Analytics (economy.com) Analysis by Cleveland State University, Center for Economic Development Data represents the most recent available information. 13

PERFORMANCE SUMMARY JOBSOHIO 2014 RESULTS JobsOhio worked with its state and regional partners and assisted companies that committed to create or retain 73,517 jobs. The 21,377 new jobs represented nearly a 20 percent increase over 2013. The companies will make $6.1 billion in new capital investments. This was a 72 percent increase over 2013. JOBSOHIO METRICS 2013 2014 Total Number of Projects 264 286 New Jobs 17,857 21,377 New Jobs Payroll $739 Million $939 Million Retained Jobs 70,449 52,140 Retained Jobs Payroll $4.3 Billion $2.9 Billion Total Jobs 88,306 73,517 Total Jobs Payroll $5.1 Billion $3.8 Billion Capital Investments by Companies $3.6 Billion $6.1 Billion Percent of Projects: Investment Break-Even in Year One 84% 84% 14

PERFORMANCE SUMMARY JOBSOHIO 2014 PROJECTS Of the 21,377 new job commitments last year, 73 percent came from existing Ohio companies while 27 percent came from attraction projects. At the same time, 77 percent ($4.7 billion) of the total $6.1 billion in capital investment came from existing businesses within the state. These results support the importance of maintaining strong relationships with our existing companies while aggresively working to attract new business and jobs to the state. INDUSTRIES JOBS CREATED JOBS RETAINED CAPITAL INVESTMENT Advanced Manufacturing 4,149 10,765 $679 Million Logistics & Distribution 3,474 6,570 $321 Million Automotive 2,944 9,839 $819 Million Food Processing 2,070 7,517 $542 Million Shale Energy & Petrochemicals 2,017 6,549 $3.2 Billion Information Technology 1,514 1,801 $116 Million Financial Services 1,230 2,658 $42 Million Biohealth 673 2,056 $51 Million Aerospace & Aviation 298 1,017 $177 Million Other 1 3,008 3,368 $211 Million 1 Represents Headquarters, Back Office, and Research & Development 15

PERFORMANCE SUMMARY JOBSOHIO 2014 PERFORMANCE BY COMPANY SIZE We continue to succeed at helping businesses grow jobs and capital investment within the state by working with companies of various sizes in our industry sectors. Large corporations have an established presence in our key industries. Middle market companies are creating the majority of the jobs and capital investment. Small businesses are innovators and will drive future job growth. 15% 44 PROJECTS 2014 PROJECTS 2014 JOBS 54% 153 PROJECTS 31% 89 PROJECTS 30% 6,468 JOBS 5 11, Over half of our projects focused on middle market companies who drove more than 50 percent of the jobs created and capital investment. Nearly 85 percent of our projects focused on small business and middle market companies. This accounted for almost 70 percent of the jobs and capital investment created in 2014. 15% 44 PROJECTS 286 TOTAL PROJECTS 21,377 TO 2014 PROJECTS 2014 JOBS CREATED 54% 153 PROJECTS 31% 89 PROJECTS 30% 54% 16% 6,468 JOBS 3,360 JOBS 11,549 JOBS 2014 C INVES LARGE CORPO Revenue MIDDLE Revenue $1 Billion - 30% $1.9 BILLION SMALL B Revenue < $ LARGE CORPORATION 286 TOTAL PROJECTS 21,377 TOTAL JOBS $6.1 B Revenue > $1 Billion TOTAL IN 5% 44 OJECTS MIDDLE MARKET Revenue $1 Billion - $10 Million 2014 PROJECTS 2014 JOBS CREATED 54% 153 PROJECTS SMALL BUSINESS 31% Revenue 30% < $10 Million 89 PROJECTS 6,468 JOBS 3,360 JOBS 54% 11,549 JOBS 16% LARGE CORPORATION Revenue > $1 Billion 2014 CAPITAL INVESTMENT MIDDLE MARKET Revenue $1 Billion - $10 Million 30% 18% SMALL BUSINESS Revenue < $10 Million $1.9 BILLION $1.1 BILLION 52% $3.1 BILLION 286 TOTAL PROJECTS 21,377 TOTAL JOBS $6.1 BILLION 16 TOTAL INVESTMENT LARGE CORPORATION

PERFORMANCE SUMMARY JOBSOHIO PROJECT PIPELINE The pipeline represents the potential deals that JobsOhio and its state and regional partners are working on to drive job creation and grow capital investment in Ohio. This allows us to analyze data, view trends, and develop strategies. ACTIVE PROJECTS BY STAGE 1 23,624 JOBS - NEW 13,659 - RETAINED 9,965 $5.9 Billion Capital Investment 10,982 JOBS - NEW 3,841 - RETAINED 7,141 $3.3 Billion Capital Investment 24,048 JOBS - NEW 9,709 - RETAINED 14,339 $7.0 Billion Capital Investment 21,445 JOBS - NEW 4,975 - RETAINED 16,470 $3.0 Billion Capital Investment Data as of December 31, 2014 1 Potential results if all projects are realized. 244 LEADS 137 NEGOTIATIONS 72 OFFERS 78 APPLICATIONS BENEFITS OF THE SALES FUNNEL JobsOhio and the JobsOhio Network have been operational for just over three years. Our mission is to increase the number of jobs and drive capital investment, both of which have process cycles that can often take several years to complete. Each of the companies with which we engage follows a similar path. Whether it is a project for new operations or expansion of existing ones, the process begins with identification of the business need, followed by site selection, negotiations, final approvals, and then announcement. Because of this long cycle, the sales funnel is vital in converting the leads and negotiations of today into the jobs of tomorrow. An improving economy, positive results from our outreach, and collaboration as a statewide team have been key factors in maintaining a healthy project pipeline. Economic development requires significant cooperation and communication between local governments, regions, and JobsOhio. The results are a direct outcome of all parts of the state working together to make Ohio a favored location for business. Ohio s competitiveness has never been stronger, providing greater prospects to win jobs for the state. 17

FOREIGN DIRECT INVESTMENT EXPANDING OUR REACH Foreign Direct Investment (FDI) plays a significant role in Ohio s economy with more than 3,400 international establishments supporting more than 200,000 jobs. According to the U.S. Department of Commerce, Ohio ranks 8th in the U.S. for American employment by international firms. Building on Ohio s global reputation for manufacturing strength, JobsOhio focuses considerable effort on extending opportunities for FDI investment. Eighteen percent of our new capital investment projects last year were from companies headquartered outside the United States. JobsOhio kicked off international attraction efforts in 2014 with significant momentum. On January 10, 2014, Fuyao Chairman Cao Dewang announced the company s first North American auto glass manufacturing facility would be in Moraine, Ohio. Fuyao s initial commitment to create 800 new jobs and invest $230 million in the former GM plant was indicative of the strategic efforts to attract and grow international investment in Ohio. As a direct result of this successful partnership, China joined Germany and Japan as a top target market in 2015. JobsOhio engaged with in-market resources in Germany, China, and Japan to expedite project pipeline growth and broaden the reach of JobsOhio. This proactive sales strategy increased bandwidth for relationship building with parent companies and subsidiaries, a cornerstone of our attraction, retention, and expansion strategy. JobsOhio continues to seek ways to support the success of companies in Ohio. In each of these target markets and around the world, Ohio s manufacturing expertise continues to play a role in attracting international investment. Borgers Ohio, Inc., a German automotive parts supplier and subsidiary of Borgers AG, announced a new plant in Norwalk, Ohio, that will employ at least 230 people. Ohio s recognized strength in skilled manufacturing particularly in automotive and high value-added products is helping to generate a growing global awareness for the state and increasing prospects for future international investments. In addition to manufacturing, international companies are attracted to Ohio for its access to competitivelypriced energy, strong supply chain, concentration of skilled workforce, and strategic location that provides ready access to the North American market. COMPANY SELECTED FDI PROJECTS IN 2014 NEW JOBS Faurecia North America 270 $19.8 million CAPITAL INVESTMENT INDUSTRY COUNTRY Advanced Manufacturing France Stanley Electric U.S. 150 $81.3 million Automotive Japan Cosmax, Inc. 135 $16.5 million Klarna Inc. 82 $0.3 million Polymers & Chemicals Information Technology South Korea Sweden Norwalk is a great location regarding logistics as it relates to our Midwest customers, and the labor force is exceptional and highly motivated. We also feel that there is a great emotional fit between the people in Norwalk and the values and characteristics of our family business. Werner Borgers President and CEO of Borgers AG HDI Landing Gear USA, Inc. 65 $17.1 million Aerospace & Aviation Canada 18

Last year, JobsOhio and its Regional Network partners worked with 48 companies from 14 countries that committed to create 3,585 new jobs, retain 9,750 jobs, and make $1.3 billion in new capital investments. Ohio has a strong heritage of partnering with foreign companies to produce the world s best products, contributing to Ohio s adaptive and supportive business environment. In 2015 we will see a continuation of strategic planning that was started last year. JobsOhio and its Regional Network partners will build on the international successes of 2014 by continuing to pursue investment projects in our targeted markets and industry sectors. RESULTS IN ACTION Fuyao Glass Industry Group Co., Ltd. JobsOhio began working with Fuyao Glass Industry Group Co. Ltd, one of the world s largest automotive glass manufacturers, in April of 2013. Kristi Tanner, a JobsOhio Managing Director, traveled to Kaluga, Russia to attend the opening ceremony of Fuyao s newest automotive glass manufacturing plant. She then visited the company s headquarters in Fuzhou, China to meet with company officials. On January 10, 2014, the company committed to bringing 800 jobs with a capital investment of $230 million to Moraine. This is the largest Chinese automotive industry investment ever made since records have been kept (Financial Times, LTD). WHY DO INTERNATIONAL COMPANIES CHOOSE OHIO? Diverse FDI heritage (42 countries have operations in Ohio) Ohio representatives with foreign language skills and cultural knowledge Diverse array of regions with vibrant cities and strong business heritage World class capabilities and institutions from manufacturing to healthcare Skilled and committed workforce Nearly one year later to the day, Chairman Cao, Governor John Kasich, Consul General Zhang Quiye for the People s Republic of China in New York, and JobsOhio President and CIO John Minor gathered to announce Fuyao s commitment of another 750 new jobs and an additional $130 million in capital investments at the Moraine site. We appreciate Ohio s strategic location, workforce, and pro-business environment in making this decision to open our North American facility. We are making such an investment in Moraine to better service our important OEM customers in the United States and North America. Cao Dewang Chairman, Fuyao Glass Industry Group Co., Ltd. 19

Big Data Manufacturing Biohealth Energy 20

STRATEGIES OHIO S PRODUCTIVITY CONTINUES TO SOAR A Game-Changing Year From Energy and Manufacturing to Big Data and Biohealth, in 2014, JobsOhio continued to attract new businesses and expand existing businesses, prioritizing fast-growing subsectors. The following Results in Action sections highlight some of our biggest wins and demonstrate the job and capital investments businesses want to make in Ohio. Taking Ohio Further Into the Future JobsOhio will continue to play a transformative role in helping Ohio businesses succeed. Our 2015 industry sector strategies take advantage of the strong diversity of the businesses Ohio can support. Our mission to accelerate job growth and increase capital investment echoes throughout all of our programs and is aimed at businesses of all sizes. We will also focus on strengthening our workforce development programs, providing the skilled workers businesses need for today s jobs as well as the jobs of the future. 21

BIOHEALTH THE TIME FOR HEALTHCARE INNOVATION IS NOW BIOHEALTH IS A GLOBAL GAME CHANGER Converging trends of continued global and U.S. population growth, the aging of societies, and life expectancy gains are creating imminent demand for healthcare products and services that will remain strong. JobsOhio is positioned to extend Ohio s role across the U.S. healthcare value chain, developing the environment to anchor healthcare products and services companies of the future. Average Life Expectancy as of 2012 95 Average Life Expectancy Projected to 2050 Japan 83.10 Years Old 90 United Kingdom 81.50 Years Old 85 United States of America 78.74 Years Old 80 United States of America 85.12 Years Old United Kingdom 89.16 Years Old 75 70 Japan 94.12 Years Old 65 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 GROWTH + AGING = GREATER SPENDING ON HEALTHCARE POPULATION CHANGE WORLDWIDE +2.1B U.S. +80M AGE HC $* AGE U.S. 0-18 $4,300 0-18 +19% 19-40 $10,000 19-64 +19% 40-64 $18,000 65+ +100% 65+ $40,000 U.S. healthcare has grown at 9% CAGR for 50+ years Sources: U.S. Census Bureau, CMS, Internal Research 2000-2030 Projections * 2014 U.S. per capita national health expenditures OHIO IS LEADING THE WAY Research expertise, intellectual talent, and innovation are the backbone of the booming Biohealth industry. Ohio is home to preeminent corporations and research institutions advancing world health. The Cleveland Clinic, the single largest non-retail employer in Ohio, has been recognized by U.S. News and World Report as the world s top hospital in various specialties for over 25 years. Case Western Reserve, The Ohio State University, University of Cincinnati, and Cincinnati Children s are among the top research centers in the country. Ohio is also home to leading global companies across the healthcare value chain, which include pharmaceutical and medical products; manufacturing and distribution; healthcare payers; research and development; and testing laboratories. 22 TOP BIOHEALTH COMPANIES IN OHIO PRODUCTS AND SERVICES CARE PROVIDERS

RESULTS IN ACTION Assurex Health Assurex Health, a personalized medicine company providing treatment decision support to healthcare providers, chose Ohio to build an expanded headquarters and clinical laboratory to meet the demands of its growing business. One of the company s innovations is a genetic test, derived from a simple saliva swab, that uses cutting-edge technology to analyze a patient s profile. This information enables clinicians to target medications that are most likely to work for individual patients. Assurex Health selected Ohio for its expansion project because of the access to top talent, its strong partnership with Cincinnati Children s Hospital Medical Center and regional universities, affordable lifestyle, and the partnership between JobsOhio, Mason, and the State of Ohio. The company committed to creating 150 new jobs, more than doubling the size of the company in Mason. We love the entrepreneurial and venture-backed ecosystem in the region and are committed to growing the Biohealth corridor in Ohio. Virginia C. Drosos President and Chief Executive Officer, Assurex Health 23

SURPASSING NATIONAL JOB CREATION TRENDS IN BIOHEALTH Ohio s Biohealth sector experienced 18 percent jobs growth compared to the national average of 10 percent from 2004 to 2014. Additionally, Ohio has continued to capture a larger percent of U.S. and regional Biohealth employment share in recent years. Ohio Share of U.S. 3.33% 3.09% 16.37% 14.33% 2004 2014 2004 2014 Ohio Share of Region R PA MORE OPPORTUNITIES. MORE GROWTH. Building on our agricultural and industrial innovations history, Ohio is uniquely positioned to win in Biohealth. Our mission is to create more research commercialization and intellectual property opportunities and grow and attract young Biohealth innovators. JobsOhio will work with groups like the Global Healthcare Innovations Alliance, Ohio Third Frontier, and the Ohio Governor s Office, to attract and invest in growing Biohealth companies that will become future healthcare leaders. We will also focus on business retention and expansion through supply chain development. JobsOhio will collaborate with multiple cities and institutions in Ohio to create a pool of common resources, working together to become nationally renowned. CURRENT PLAYERS INVESTING IN OHIO INNOVATION STATE LEVEL SUPPORT REGIONAL SUPPORT ACCELERATORS Since 2005 ~$500M of Ohio Third Frontier funds supported Biohealth related research and technologies via platform investments and regional accelerators. Platform Investments Global Cardiovascular Innovation Center Harrington Project OSU Neurological Institute 24

Dr. George Picha, Founder of AMT, created the first button feeding device for patients who require tube feeding. RESULTS IN ACTION Applied Medical Technology Since 1985, Applied Medical Technology, Inc. (AMT) has taken pride in creating and manufacturing innovative medical devices in Ohio. The company s founder, Dr. George Picha, co-invented the first button feeding device, which offers a lower profile and increased comfort for patients who require tube feeding. Driven by market demand for its current devices and innovation of new products, AMT identified a need for an additional campus to accommodate its strong and consistent growth. Passionate about Northeast Ohio, AMT chose to build its new development and manufacturing campus near its current Brecksville, Ohio, location. In addition to manufacturing products in Ohio, AMT takes pride in using Ohio-based suppliers and hiring local talent. The expansion will create approximately 150 jobs over the next three years. JobsOhio is here for Ohio and its industries, and our team could not have been happier with their guidance and support. Dr. George Picha Founder, Applied Medical Technology, Inc. APPLIED MEDICAL TECHNOLOGY, INC. 25

FUELING THE NEXT BREAKTHROUGH COMPANIES THE CRITICAL ROLE OF EARLY-STAGE FIRMS When it comes to innovations that change the world, fast-growing, early-stage firms are making an impact. They ve been responsible for cost-cutting technology and lifesaving opportunities in healthcare. They ve contributed the latest technical innovations for consumers and businesses. And they re essential to driving economic growth. In Ohio, these breakthrough companies are significant net job creators across the state, attracting investment from private equity, angel investors, and venture capitalists. SEIZING THE OPPORTUNITY JobsOhio identified opportunities to support the growth of early-stage firms through existing JobsOhio funding programs and awareness building, thus promoting economic development in our communities. Helping early-stage firms succeed is critical to developing a best-in-class entrepreneurial ecosystem, which is why JobsOhio provides support for many companies that are located in Ohio and have a strong record of job creation, primarily in the Biohealth and IT industries. The goal is to help Ohio s early-stage firms attract more investment to the state fueling the next generation of entrepreneurs the innovators who will create jobs and attract the talented workforce of the future. JobsOhio may also help early-stage firms access accounting, strategy, and human resources guidance to help them focus on their core strengths. And most importantly, we help connect firms with contacts at Ohio s larger corporations where they can get additional support and guidance. 26

SPOTLIGHT ON BREAKTHROUGH COMPANIES MAKING A DIFFERENCE UPDOX Providing Customer Relationship Management (CRM) for healthcare, Dublin- Ohio-based Updox is the industry leading Physician Connectivity Platform committed to changing the way healthcare is delivered. The company expects to grow from 29 employees in 2014 to nearly 50 in 2015. ONSHIFT Based in Cleveland, OnShift is the only company to provide web-based staff scheduling software that is focused entirely on the long-term care and senior living industry. The company grew from two employees in 2009 to 82 in 2014. ENABLE INJECTIONS Enable Injections is pioneering a new class of at home self-injection technology for biologic and other drugs. The company, which is located in Franklin, anticipates creating hundreds of new jobs over the next few years. AHALOGY This Cincinnati-based company utilizes proprietary software to make Pinterest marketing as effortless as possible for brands. Ahalogy is the largest publisher on Pinterest, with more than 40 million visits per month and the tenth largest mobile website. BLUE WATER SATELLITE This Toledo technology firm analyzes satellite imagery to monitor land and water resources. Use of the company s technology has resulted in a tenfold increase in sales since the company began in 2009. 27

INFORMATION TECHNOLOGY BIG DATA IS GETTING BIGGER - AND OHIO IS READY Ohio is becoming the Big Data hub of the Midwest. Affordable, abundant energy and real estate, stable physical environment, and talented workforce are turning Ohio into a highly-attractive location for Big Data companies. Many of the customers of Big Data firms are already in Ohio financial services, consumer retail, food processing, healthcare, and manufacturing and are all impacted by opportunities to perform data analytics. Technology advancements have allowed Ohio to become the low-cost alternative to Silicon Valley. WHY HERE AND NOWHERE ELSE Competitive Tax Structure for Data Centers Ohio has a best-in-class tax exemption program that has attracted some of the top data centers in the U.S. Projects with an investment of at least $100 million in the first three years are eligible for a sales tax exemption on data center equipment. Home to Major Big Data Players Battelle, IBM Client Center for Advanced Analytics, and Teradata are just some of the companies that have contributed to the creation of the infrastructure needed to support Big Data in Ohio, providing a competitive advantage to companies operating in the state. Institutional Support for Tech Startups Ohio has unique institutional support for technologybased startups. Ohio s Third Frontier program provides funding and mentorship primarily for technology-related startups. Entrepreneurial Signature Programs provide additional funding and mentorship, and have helped multiple Ohio tech startups achieve significant growth. 28 Renowned Research Institutions Ohio is home to world-class public and private research institutions: The Ohio State University, Case Western Reserve University, University of Cincinnati, and the University of Akron are all among the top teaching and research facilities in the U.S. Ohio s Unique Technological Assets Ohio offers advanced Information Technology and digital infrastructure to companies via access to two valuable technology assets: the Ohio Supercomputer Center (OSC) and the Ohio Academic Resources Network (OARnet). OSC is open to private companies in need of access to high-performance computational resources and expertise for modeling and simulation and is used by some of Ohio s top companies. OARnet provides 2,240 miles of 100 gigabit per second statewide broadband access - speeds nearly 3,000 times faster than the national average. OARnet is also available to eligible private businesses for research affiliated with the higher education communities and access to OSC. Businesses can work with JobsOhio to gain access. PRIORITIZE FAST-GROWING SUBSECTORS JobsOhio will focus on further building Ohio s reputation as the Data Hub of the Midwest by attracting more data centers, cyber security firms, and IT consulting firms. Our data centers can help attract spinoff technology firms including data analytics companies. INVEST IN TALENT A technologically-skilled workforce is critical to taking advantage of Big Data and tech growth. To further develop our workforce, we will continue to attract top IT firms that create a pool of educated resources. JobsOhio will promote Ohio s entrepreneurial ecosystem, which will attract top tech talent to our fast-growing startups, and we will work with Ohio s top universities to promote that talent. The Ohio State University is one of the few top public universities to offer undergraduate and graduate degrees in Big Data.

RESULTS IN ACTION MCKINSEY & COMPANY CITES BIG DATA AS ONE OF THE EMERGING GAME CHANGERS OF THE 21ST CENTURY. GET THE WHOLE STORY AT JOBS-OHIO.COM/GAMECHANGERS. BIG DATA KNOWS WHAT WILL HAPPEN IN THE FUTURE. THAT S WHY IT S MOVING TO OH1O. IBM. dunnhumbyusa. Teradata. JPMorgan Chase. The list of best-in-class data-driven companies thriving in Ohio is growing by the day. Hmmm. What do they know that you don t? THE FUTURE IS HAPPENING IN OHIO. GET THERE FIRST. 24852_6 JOBigData_ChiefEx_Ad_8x10_75_CR.indd 1 12/4/14 9:55 AM Our Big Data advertising drives job growth in Ohio. Alliance Data Alliance Data, one of the nation s leading providers of branded credit card programs, selected Columbus, Ohio, for its new multi-facility expansion project. The company, which was named one of the World s Most Admired Companies by Fortune magazine in 2014, has experienced tremendous growth, resulting in a need for larger office space. Alliance Data will consolidate several satellite offices in the area. The company credits the support offered by the City of Columbus, JobsOhio, and Columbus 2020 as reasons for deciding to grow in Ohio. Construction of the new campus is expected to be completed by 2018, creating 700 new jobs over the next three years. Our business has thrived here in Central Ohio, and we are pleased to continue to call Ohio our home. Melisa Miller President, Alliance Data 29

ADVANCED MANUFACTURING OHIO: THE BREEDING GROUND FOR ADVANCED MANUFACTURING UNMATCHED LEGACY Ohio has a deep heritage in manufacturing and innovation in the aerospace, automotive, plastics, and machinery industry sectors. Over 15,600 manufacturing businesses are located in Ohio, including iconic, innovative companies like GE Aviation, UTC Aerospace Systems, Parker Hannifin, and American Honda Motor Company. Ohio is also home to Wright-Patterson Air Force Research Laboratory, NASA Glenn Research Center, Battelle Laboratory, and numerous colleges and universities engaged in advanced research. Ohio has been a leader in manufacturing innovation since the beginning of the industrial revolution. THE NEW FACE OF MANUFACTURING The digital world is transforming manufacturing. Intelligent software and advanced sensors are creating connectivity across supply chains in new and exciting ways. The future of clean, high-tech, knowledge-based manufacturing is here, and the Internet of things is quickly emerging. New technologies, materials, and manufacturing processes are leading a resurgence in Ohio manufacturing, and there are a nexus of companies and organizations developing these game changing technologies. The state is home to three National Network for Manufacturing Innovation (NNMI) Institutes. One, America Makes, is headquartered in Youngstown and is focused on 3D printing/additive manufacturing. In addition, there are two consortium partnerships, American Lightweight Metals and Advanced Composites Manufacturing, leading the development of new materials and advanced manufacturing. Together, with Ohio businesses, these institutes are advancing these game-changing technologies and creating business ecosystems that are putting Ohio manufacturing back on the map. CULTIVATING TOMORROW S TALENT To be successful, businesses need an advanced workforce with the electrical, mechanical, and computer knowhow to thrive in the new, high tech, manufacturing environment. And Ohio is already one step ahead. The Board of Education and Board of Regents have been working to align curriculum and programs to in-demand occupations. The entire educational system is focused on developing closer ties with business to create excitement about knowledge-based manufacturing and increase the experiential learning in our classrooms. These educational programs focus on new entries into the labor market as well as the nearly 6 million Ohioans already working, including more than 670,000 highly-skilled manufacturing employees. In addition, our technical and vocational schools offer certificates and awards for advanced skills training. JobsOhio, in conjunction with the Governor s Office of Workforce Transformation, will continue to spearhead collaboration between industry and academia to develop a network that matches educational offerings with workforce needs. Ohio has 16 colleges and universities that offer two and four year degrees in many technical disciplines. In 2013, Ohio schools graduated over 10,000 engineering students. 30

RESULTS IN ACTION Whirlpool Ohio s skilled workforce was the key driver in Whirlpool Corporation s decision to expand its KitchenAid plant in Greenville. The leading global manufacturer and marketer of major home appliances considered other global locations for the large scale expansion, which will retain 802 jobs and create 400 new jobs in a new 460,000 square-foot facility. Production at the current Greenville facility has doubled in the last five years in part due to the introduction of products into new international markets. Whirlpool employs more than 10,000 employees in Ohio, which is home to five of nine of the company s manufacturing plants. Whirlpool has the only major small appliance plant in the U.S. MCKINSEY & COMPANY CITES KNOWLEDGE-INTENSIVE MANUFACTURING AS ONE OF THE EMERGING GAME CHANGERS OF THE 21ST CENTURY. GET THE WHOLE STORY AT JOBS-OHIO.COM/GAMECHANGERS OHIO IS EASY TO FIND. JUST LOOK FOR THE MOST ADVANCED MANUFACTURING IN THE WORLD. With the broad shoulders of an enduring legacy of manufacturing to stand on, Ohio is the epicenter of the additive manufacturing revolution. We have galvanized the efforts of industry, universities, thought leaders With several global options for this project, our decision to expand our Greenville, Ohio facility is another way Whirlpool continues to demonstrate our commitment to American manufacturing. and government, an alignment that is producing breakthrough after manufacturing breakthrough. From prototype to production, Ohio is leading the way. The race is on. And the first one to the future wins. THE FUTURE IS HAPPENING IN OHIO. GET THERE FIRST. 25101_1 JO_3D_Chief-Exec_8x10-75_CR.indd 1 12/1/14 11:28 AM Our Advanced Manufacturing advertisement pays homage to the legacy Ohio has in manufacturing. Jeff Fettig CEO, Whirlpool 31

ADVANCED MANUFACTURING AUTOMOTIVE AND AEROSPACE AUTOMOTIVE POWERHOUSE Ohio is an automotive powerhouse, producing nearly 1.6 million light vehicles in 2014, the second most in the U.S., with almost 13.5 percent of overall production. The original equipment manufacturers (OEMs) producing in Ohio include Fiat Chrysler, Ford, General Motors, and Honda, making nine different models during 2014 in six assembly plants. These OEMs planned on investing over $841 million in their facilities across the state in 2014. Ohio has over 600 establishments directly involved in the automotive industry, employing over 100,000 people at an average annual salary of $62,226. Ohio has every aspect of the automotive industry represented and made in Ohio from body, interiors, and tires to engines and transmissions. Access to supply chain is second to none, perfectly situated between assembly plants in the North, South, and Canada. Ohio also has an abundant supply of raw materials for the industry, including steel, aluminum, paints, coatings, and plastics and rubber products. FOCUSED ON THE NEXT GENERATION Continued investments by both OEMs and suppliers are expected as automakers plan to increase production and add new models, over 100 before 2018, to meet growing market demand. U.S. automotive sales reached 16.4 million in 2014, the fifth straight year of increasing sales, and are expected to top 17 million in 2015. Ohio s strategy for continued growth in the auto industry goes beyond the usual retention, expansion, and attraction efforts by adding a layer of strategic focus on companies that are involved in the next generation of the automobile. Ohio has unique strengths and assets for companies exploring powertrain alternatives, lightweighting, autonomous, connectivity, and telematics. JobsOhio will focus on making sure the next generation of the automobile holds the made in Ohio stamp of quality. 32 RESULTS IN ACTION Honda of America Manufacturing Honda has had a huge presence in Ohio, so when the company sought a location to build a state-ofthe art training center and a space to highlight the company s innovative history in North America, Ohio rose to the top. The new $35 million, 160,000 square-foot Honda Heritage Center in Marysville will create 66 jobs and house a museum, Technical Development Center, and office space for Honda North America. The Technical Development Center, supported by JobsOhio, focuses on advancing the skills of Honda engineers, equipment service technicians, and production associates involved in auto production. It features five dedicated classrooms and includes robotic manufacturing cells designed to give technicians more hands-on experience. The museum highlights products and milestones in the history of Honda in North America, including the role of Honda s operations in Ohio. It also showcases new Honda technologies, such as a replica of the humanoid robot ASIMO and the HondaJet. The new center offers a historic view of the global company s growth as well as a vision for the future of manufacturing. As we introduce more sophisticated technologies in our products and in our plants, we are working to ensure that our associates are equipped with the skills required for the manufacturing demands of the future. We view this investment in Honda people as critical to our future success. Tom Shoupe Chief Operating Officer and Executive Vice President, Honda of America Manufacturing, Inc.

THE EXCITING FUTURE OF AEROSPACE Ohio, the birthplace of aviation, has a deep history of aerospace innovation and is home to many key component and system suppliers, including GE Aviation, Parker Hannifin, and UTC Aerospace Systems. Ohio is currently the number one supplier to Airbus and Boeing, and with record backlogs in the civil aviation market, is poised for continued growth. Advanced technologies being developed right here in Ohio are evolving the way aircraft components and systems will be manufactured in the future. New lightweight composite materials and 3D printing/additive manufacturing are two of the game changers where Ohio is leading the way. HOME TO INSTITUTIONS FOCUSED ON NEW TECHNOLOGY More than $9 billion is invested in Ohio for aerospace R&D and testing each year. In 2014, GE Aviation announced its new Additive Manufacturing Research Center in Ohio and a plan to use an additive fuel nozzle in its new Leap engine. EWI, a renowned innovation company, is developing new lightweight metals and associated manufacturing and joining processes, and University of Dayton Research Institute is at the forefront of carbon-based composites both examples of institutions focused on lighter, more fuel efficient aircraft. Other important elements of Ohio s aerospace innovation ecosystem include: Wright-Patterson Air Force Research Laboratory with its five technology directorates: sensors, space vehicles, human effectiveness, directed energy, and materials and manufacturing; NASA Glenn Research Center, which is focused on propulsion, materials, energy storage, and communication; Battelle Laboratory; and the Ohio Unmanned Aerial Systems Center. 1 ST Largest U.S. Supplier State to Boeing and Airbus Source: Manufacturer s Data 1 ST in Glass and Glass Product Manufacturing Source: U.S. Bureau of Economic Analysis 1 ST in Electrical Equipment, Appliance, and Component Manufacturing Source: U.S. Bureau of Economic Analysis 2 ND in Tier 1 Automotive Suppliers Source: Center for Automotive Research SPACE IS OUR BUSINESS JobsOhio plans to expand relationships with aerospace OEMs, including Airbus and Boeing, and grow the supplier network in the state. Together with NASA Glenn Research Center and the SpaceOhio team, we plan to grow space businesses. We are also focused on attracting new business to the state that will benefit from the innovation infrastructures here in Ohio. In executing this strategy, we will collaborate with our key aerospace organizations, including the Ohio Aerospace & Aviation Council, the Ohio Aerospace Institute, and the new legislative committees focused on federal military jobs and aerospace strategy. JobsOhio also plans to keep Ohio at the forefront of the exciting drone industry. The Ohio Center for Unmanned Aircraft Systems Research, the UAS Conference, and our rapidly expanding fly zones are key attraction assets that we will leverage in growing Ohio s presence for this emerging industry. 33

Affordable, abundant energy, right under your feet that s 25101_1_JO_Shale_Fortune_8_25x11_125_R_CR.indd 1 12/5/14 11:31 AM SHALE ENERGY & PETROCHEMICALS OHIO S ENERGY SECTOR IS GROWING, AND SHALE IS LEADING THE CHARGE THE ENERGY TO DRIVE PROSPERITY The Utica region is one of the fastest growing natural gas production areas. With more than 1,700 permitted wells and the potential to have over 17,000 over the next few decades, oil and gas have taken a larger role in the state s diverse energy portfolio. Ohio is home to two top-10 electric providers and four major refineries, and its strong business climate stems from a competitive tax structure and a streamlined, predictable regulatory system. The state is positioned to have competitively priced, reliable energy far into the future. GROWTH THROUGH PARTNERSHIPS JobsOhio is targeting partners that fit our strategy of sustained growth: Oil and gas supply chain manufacturers Expansion projects at chemical plants and large energy users and refineries Attraction of companies that are large natural gas users or convert natural gas liquids to polymer industry feedstocks Other initiatives focus on addressing gaps in the current supply chain THE SHALE GAS BOOM Ohio sits atop large portions of the Utica Shale formation, a large reserve the U.S. is only just beginning to tap. Experts believe that with its close proximity to the Marcellus Shale formation, Ohio and neighboring states could produce enough natural gas to meet the country s needs for years to come. THE PACE OF DEVELOPMENT IS INCREASING In 2014, activity focused on wet gas production. Over 1,300 wells were drilled since 2011, and by the end of 2014, over 700 new wells were in production. This activity generated $12 billion of midstream capital investment committed. THESE ARE JUST A FEW OF THE LEADING ENERGY CORPORATIONS WITH OPERATIONS IN OHIO DOWNSTREAM PETROCHEMICAL STRATEGY Global demand for petrochemicals exceeded global economic growth by nearly two times over the past 25 years, and Asia led this growth in demand. The cost of producing petrochemicals in Asia exceeds the cost to produce in the U.S., in large part due to shale gas. This is creating an opportunity for further growth in petrochemical production in the U.S. to meet the growing Asia market. Thanks to the Utica Shale, our competitive business climate, a strong workforce, and our strong polymer customer base, Ohio has a great opportunity to participate in the U.S. petrochemical production growth. Advertising that targets the leadership of energy-intensive industries with a profit-building message. NEED TREES? GO TO THE FOREST NEED SAND? GO TO THE DESERT GO TO OHIO. NEED ENERGY? MCKINSEY & COMPANY CITES SHALE ENERGY AS ONE OF THE EMERGING GAME CHANGERS OF THE 21ST CENTURY. GET THE WHOLE STORY AT JOBS-OHIO.COM/GAMECHANGERS 34 what you get when your business is in Ohio. The shale energy revolution has created an economic era that s powering profits for energy-intensive businesses. Discover how. THE FUTURE IS HAPPENING IN OHIO. GET THERE FIRST.

RESULTS IN ACTION SPECIALIZED TRAINING FOR CAREERS IN ENERGY Stark State College is becoming the regional hub for shale education. The college s industry-approved credentialing, credit-based stackable certificates, and degrees prepare students for various stages of employment in the oil and gas industry. The college s new 7,000 square-foot Well Site Training Center offers hands-on learning experiences like those encountered in the field or on oil rigs. The training center was designed to be leveraged in a projectbased learning environment where students can go from computer simulations to bench-scale simulations to construction and maintenance on full-scale processes in indoor or outdoor settings. Students who train at Stark State obtain the skills most in-demand by oil and gas companies as well as their suppliers and support systems. MarkWest Energy Partners, L.P. With approximately 1,300 Utica wells drilled and 700 in production, MarkWest needed to find a way to move Ohio condensate from the wells to the market. Key considerations included installation of a stabilizer to make it safe to transport Ohio condensate, tanks to store product, and facilities to load railcars. To meet this need, Ohio Condensate Company, L.L.C., a Joint Venture comprised of MarkWest Utica EMG Condensate, L.L.C. and Summit Midstream Partners Holdings, L.L.C. was formed. The company is constructing a large-scale condensate stabilization facility with associated logistics and storage terminal capabilities in Harrison County, Ohio, adding 45 jobs to the state. Ohio was selected for this project because of the oil and gas drilling and production activity related to Utica Shale. Condensate production is expected to continue to grow in Eastern Ohio, and the project provides substantial uplift potential for producers in the area. MarkWest has invested over $2 billion in midstream assets to service producers active in Ohio s Utica Shale. JobsOhio is keenly interested in the build out of infrastructure that supports the development of Ohio s oil and gas resources. We sincerely appreciate the organization s engagement in these endeavors. David Ledonne VP Operations, Utica and Appalachia 35

WORKFORCE DEVELOPING THE WORKFORCE OF THE FUTURE THE NEED FOR WORKERS The Information Age is quickly becoming the Talent Age where the states that offer the best workers will win. Securing a highly skilled workforce is one of the biggest challenges facing today s expanding companies. Emerging technologies are creating jobs that require new skills. From non-skilled to skilled trades, and professional jobs, employers are looking for workers to fill the jobs they have today and openings they will have in the coming years. WORKING TO SOLVE THE PROBLEM As business needs evolve, the traditional track from elementary to high school to college for many will no longer be the norm. Ohio high schools are already partnering with local manufacturers through co-op programs to develop high school graduates who are ready for high-paying manufacturing jobs, particularly in the additive manufacturing space. Businesses are no longer solely relying on four-year colleges and universities to supply the professionals they need to run their facilities. Many are developing their own training programs to keep up with their ever-changing skill requirements brought on by rapidly changing technologies. 36

Colleges and universities can no longer rely solely on tried and tested curriculum that was taught for decades. Once the core fundamentals are taught, class content needs to change on an annual basis to keep up with the changes in technology. Ohio higher education institutions like Case Western Reserve University and community colleges like Lorain Community College are bringing representatives from leading companies to help them develop curriculum and work-study programs to meet the needs of business. They are also focusing on developing programs to train people for the economic growth drivers. For example, Marietta College and Stark State College have programs in Shale Energy, and The Ohio State University offers undergraduate and graduate degrees in Big Data. The Ohio Government is also playing a key role. The Ohio Board of Regents makes sure our education system turns out trained workers. The Governor s Office of Workforce Transformation ensures business needs are being met by Ohio s workforce system. Finally, OhioMeansJobs.com matches the available talent pool to the open jobs within the state. CUSTOMIZED INITIATIVE Much more can still be done in the partnership area. Businesses and the educational community will continue to build relationships to develop curriculum that meets future needs. Non-traditional teaching techniques through the internet will be employed to help train workers for the jobs of tomorrow. JobsOhio will play a key role in making sure companies find the workers they need. Beginning in 2015, we will launch a Customized Workforce Training Initiative. Using the resources in the state s education system, non-traditional learning, and OhioMeansJobs.com, JobsOhio will work with companies expanding in the state or new employers coming to the state to ensure there is an adequate supply of workers to meet their needs. The initiative is designed for companies that are working with JobsOhio to identify the type of workers needed to fill the new roles. Once the number and types of workers are identified, JobsOhio will work with state and local agencies to create a pool of talent to fill the roles. JobsOhio will help recruit workers, conduct pre-employment screening, assess available skills and provide training in classrooms, labs or on-site to provide a viable workforce when the client company is ready to begin operations. This will guarantee that companies who commit to Ohio will have the workers they need. 37

FIRST JOBSOHIO REVITALIZATION PROGRAM PROJECT SUCCESS HISTORIC CHILLICOTHE LANDMARK TO REOPEN IN 2015 In the heart of downtown Chillicothe, the iconic Carlisle Building has sat vacant at the corner of Paint and Main Streets since 2003 as a result of extensive arson damage. The 35,100 square-foot building was built in 1885 and is a prime location for job creation and new capital investment. The Carlisle will not be vacant for much longer. Through a partnership including JobsOhio; Clevelandbased historic development firm, The Chesler Group, Inc. (TCG); and tenant and job creator Adena Health System, a $7 million project renovation is underway. The City of Chillicothe and the Chillicothe Ross Community Foundation were also essential partners in making this project possible. This project is the first to benefit from the JobsOhio Revitalization Program, which was designed to support the acceleration of redeveloping sites in Ohio. The program provided a combination loan and grant to bridge the project s financing gap of approximately $1.5 million caused by several factors, including stabilization work needed to fix structural defects in the Carlisle Building and the adjourning Howson Building, as well as asbestos removal and demolition work. Adena Health System already calls Chillicothe home and has signed a 15-year lease to occupy 100 percent of the building. The first floor will be dedicated to communityfocused business operations, and medical students and residents will occupy the upper floors. IDENTIFY OPPORTUNITIES JobsOhio will continue to utilize its Revitalization Program to identify and secure development opportunities through loans and grants for the hundreds of underdeveloped or underutilized real estate properties, including brownfield sites, throughout the state. The program will continue to focus on projects that can benefit local and state economies through job creation and capital investment. THE EVOLUTION OF THE CARLISLE February 2014: JobsOhio commits revitalization financing 38 January 2014: First meeting to discuss the revitalization project February 2014: Adena Health System signs 15-year lease

REVITALIZATION UPDATE JOBSOHIO REVITALIZATION PROGRAM TRACKS ELIGIBILITY Revitalization Loans and Grants Designed to support the acceleration of redeveloping sites in Ohio Priority placed on projects that support near term job creation opportunities for Ohioans Individual projects reviewed to determine type of support recommended Loans typically between $500,000-$5 million and between 20 percent and 75 percent of eligible costs Grants typically up to $1 million Eligible projects Abandoned or underutilized contiguous property where redevelopment is challenged by significant constraints Phase II Assessment Fund Designed to assist in the review of potential environmental risks on sites where redevelopment for job creation or retention is likely to occur Grant funding up to $200,000 per approved project, provided on a reimbursement basis Redevelopment of underutilized sites that will lead to eligible job creation Businesses, non-profits, and local governments (Cannot be the party that caused the contamination) Eligible applicants may have received previous CleanOhio assistance, but environmental clean-up is not required for the programs Ineligible projects Residential and multifamily Entertainment and retail Government Education Medical practices Spring 2015: Construction concludes & building targeted to reopen Spring 2014: TCG begins renovations 39

Experience Perspective Collaboration 40

REGIONAL PARTNERS ONE FIRM, ONE STATE The JobsOhio Regional Network, comprised of six economic development partners, is key to Ohio s success. Each region s unique strengths, perspective, and experience come together to strategically serve companies and create jobs. This collaborative effort is the cornerstone of the One Firm, One State approach: the Network works smarter because development partners work together. It is this teamwork that led to the creation of 21,377 new jobs, 52,140 retained jobs, and $6.1 billion in capital investment commitments in 2014. NEW JOBS RETAINED JOBS CAPITAL INVESTMENT 2,363 11,407 $1.0 billion NEW JOBS RETAINED JOBS CAPITAL INVESTMENT 3,794 11,865 $1.3 billion NEW JOBS RETAINED JOBS CAPITAL INVESTMENT 3,643 8,164 $663 million NEW JOBS RETAINED JOBS CAPITAL INVESTMENT 6,508 13,859 $808 million NEW JOBS RETAINED JOBS CAPITAL INVESTMENT 1,652 2,179 $2.2 billion NEW JOBS RETAINED JOBS CAPITAL INVESTMENT 3,417 4,666 $205 million 41

REGIONAL NETWORK PARTNERS SOUTHEAST REGION In Southeast Ohio, an abundance of natural resources and a rich manufacturing heritage fuels this 28-county region s success. Ohio River access, shale and natural gas formations, and lumber for a growing woodworking industry provide for niche industries with specific needs. NEW JOBS RETAINED JOBS CAPITAL INVESTMENT 1,652 2,179 $2.2 billion Tri-State Beef, a subsidiary of South Korea-based DAEKYUNG Oil & Transportation, looked no further than Bidwell, Ohio, for its new beef slaughter, packaging, and advanced protein processing facility. The Appalachian Partnership for Economic Growth (APEG), JobsOhio, and local entities worked together to streamline the regulatory process and connect Tri-State Beef with agency partners. The company s decision to bring 224 new jobs to the area was also driven by Gallia County s strategic location and large pool of skilled workers. Rural King, a farm and home goods retail chain, announced its intention to bring 120 new jobs to Waverly, Ohio. Southeast Ohio s strategic location made it an ideal location for a new distribution center and store. Pike County also had an available and skilled workforce to fill the positions Rural King will bring, making this a perfect fit. COMPANY Kraft Foods Group, Inc. NEW 2014 HIGHLIGHTS JOBS RETAINED CAPITAL INVESTMENT INDUSTRY 300 372 $43.0 million Food Processing Tri-State Beef 224 8 $24.6 million Food Processing MarkWest 145 $650.0 million Energy Rural King 120 $12.9 million Logistics & Distribution 2015 GOALS & STRATEGIES Evaluate and market high-value sites along the Ohio River Help existing manufacturers retain and build jobs via the Ohio Manufacturing Extension Partnership (MEP) Develop and disseminate a database of Appalachian wood products supply chain information Strengthen the workforce through the UpSkill Your Workforce program Promote Utica Shale and midstream gas production development Logistically, we chose Waverly because we can touch a good portion of the United States. Alex Melvin CEO, Rural King 42

REGIONAL NETWORK PARTNERS CENTRAL REGION NEW JOBS RETAINED JOBS CAPITAL INVESTMENT The Columbus region is one of the most dynamic and diverse in the U.S., known not only as a major logistics hub but as the home of The Ohio State University, the state capital, a large concentration of 6,508 13,859 $808 million fashion designers and retail innovators, Honda of America s manufacturing operations, and a hotbed of entrepreneurs and high-growth companies. zulily, a rapidly growing online retailer that caters specifically to mothers, announced the addition of a call center in the Columbus region. The expansion includes 900 jobs, in addition to 500 new jobs that were previously added to its Obetz fulfillment center earlier in the year. The company has created nearly 2,000 jobs in Central Ohio since 2011. One of Europe s fastest-growing companies, Sweden-based Klarna, chose Columbus as the launch pad for its U.S. expansion because of the city s thriving retail and e-commerce activity as well as its skilled workforce. The retail payment services company has committed to create approximately 82 new jobs and invest in a new facility, IT infrastructure, and workforce training. COMPANY NEW 2014 HIGHLIGHTS JOBS RETAINED CAPITAL INVESTMENT INDUSTRY Gwynnie Bee 401 $0.8 million Logistics & Distribution Bocchi Laboratories 300 $20.0 million Manufacturing Pier 1 165 133 $5.4 million Logistics & Distribution CoverMyMeds 116 57 $1.1 million Information Technology Daifuku America Corporation 80 99 $3.0 million Manufacturing 2015 GOALS & STRATEGIES Use domestic business development missions to attract market leading companies Execute the Global Connect plan developed by JP Morgan Chase and Brookings to increase global trade and investment Optimize efforts in logistics, manufacturing, science & technology, agbiosciences, and business services to expand existing company opportunities Columbus is at the heart of U.S. e-commerce activity and is the perfect launch pad for our expansion. Brian Billingsley CEO, Klarna North America 43

REGIONAL NETWORK PARTNERS WEST REGION NEW JOBS RETAINED JOBS CAPITAL INVESTMENT The West region s diverse expertise in aerospace and defense, advanced manufacturing, information technology, and biosciences 3,643 8,164 $663 million puts it at a competitive advantage. Each of these industries is on pace with or growing faster than the national average in terms of employment, which serves to bolster the Dayton Development Coalition s (DDC) 50 percent increase in job commitments from 2013 to 2014. Ohio-based Procter & Gamble established a multi-category distribution center outside of Dayton in the city of Union. The project will provide jobs for at least 800 Ohioans. The company selected Dayton to improve supply chain efficiencies by putting product closer to retail and population centers as well as major transportation networks. JobsOhio, DDC, Montgomery County, and Union worked closely together to ensure that the required infrastructure was in place to support the 1.7 million square foot facility. Emerson Climate Technologies partnered with the University of Dayton on a $35 million innovation center established to advance research and education for the global heating, ventilation, air conditioning, and refrigeration (HVACR) industry. This world-class training hub will tackle industry challenges such as increasing energy efficiency, promoting sustainability, and improving system connectivity. This investment in innovation will help serve current and future companies in the region in the pursuit of industrial advancements. 2015 GOALS & STRATEGIES Identify business attraction opportunities that can utilize aviation assets Continue attracting companies in the unmanned aerial systems industry Continue developing and improving data-driven retention and expansion Attract additional investment from aircraft and engine manufacturers COMPANY Procter & Gamble Distributing LLC Fuyao Automotive North America Whirlpool Corporation NEW 2014 HIGHLIGHTS JOBS RETAINED CAPITAL INVESTMENT INDUSTRY 801 $8.9 million Logistics & Distribution 800 $230.0 million Automotive 400 802 $40.0 million Advanced Manufacturing This new distribution center is part of a North American supply chain transformation that innovates how we supply our customers. Dayton is ideally situated to leverage P&G s scale and respond to customers and our consumers in a way we have never done before. Yabbus Skoufalos P&G, Global Supply Chain Officer Speedway LLC 350 804 $9.1 million Energy Dole Fresh Vegetables, Inc. 138 611 $9.0 million Food Processing 44

REGIONAL NETWORK PARTNERS SOUTHWEST REGION NEW JOBS RETAINED JOBS CAPITAL INVESTMENT The Greater Cincinnati region, home to the Regional Economic Development Initiative (REDI) Cincinnati, is bustling with activity. It 3,417 4,666 $205 million boasts nine Fortune 500 companies, more than 450 foreign-owned firms, and great accessibility to customers and suppliers across the world. In 2014 General Electric committed to build its only U.S. Global Operations Center at The Banks one of the region s fastest-growing, mixed-use development sites, with residential units, office space, dining, leisure, and entertainment venues. The new center is expected to create at least 1,400 jobs. ThyssenKrupp Bilstein of America, Inc. creates high-end suspension parts for automobile companies including Tesla and Mercedes-Benz. The company, located in Hamilton, Ohio, is a great example of foreign direct investment from Germany. The company has been experiencing accelerated growth and announced a project to expand for the third time in just four years. COMPANY NEW 2014 HIGHLIGHTS JOBS RETAINED CAPITAL INVESTMENT General Electric 1,400 326 Other Ohio National Financial ThyssenKrupp Bilstein, Inc. INDUSTRY 270 933 $7.0 million Financial Services 214 381 $25.6 million Advanced Manufacturing AtriCure 30 174 $12.8 million Biohealth 2015 GOALS & STRATEGIES Create and promote authentic stories about REDI Cincinnati and Southwest Ohio via earned and owned media that targets key decision makers Expand lead generation efforts through an increase in domestic and international travel and participation in industry-related conferences Increase reliance on data research to develop stronger engagement strategies that target companies ready to act on projects and identify opportunities for partnership We wanted a place that was attractive, has amenities, is cost effective, and most importantly, a place where we could attract the talent we need to be world class. Joe Allen General Manager, General Electric, U.S. & Global Operations 45

REGIONAL NETWORK PARTNERS NORTHWEST REGION Northwest Ohio s economic growth stems from its industrial strength in manufacturing across a wide range of industries. With its proximity to Detroit, the region has earned the title Automotive Supply Capital of the World. Japanese automotive supplier Sekisui Plastics further bolstered that claim when it chose Northwest Ohio. The Regional Growth Partnership (RGP) worked with companies to create nearly 600 jobs in the automotive industry, with $115 million in capital investment. NEW JOBS RETAINED JOBS CAPITAL INVESTMENT 2,363 11,407 $1.0 billion The highlight in 2014 was the attraction of McLane Company, a grocery supply chain services provider, which invested $119 million to open a new distribution center in Findlay and hire 425 new employees. To continue cultivating opportunities like this one, the RGP is working with American Electric Power and the Austin Group to certify five food processing sites. Businesses in Northwest Ohio created 658 new jobs in food processing last year, including more than $154 million in capital investment. Marathon Petroleum Corporation, ranked 25th in the Fortune 500 and number 10 on the IndustryWeek list of 500 largest U.S. manufacturers, announced a major expansion of its corporate headquarters in Findlay. The company plans to invest $80 million and create at least 150 new jobs. Plans include a 120,000 square-foot office building, two parking decks, expanded meeting rooms, and a new multi-use office building. Marathon is also exploring the option of a hotel or mixed-use facility on the corporate campus that would be available for community use. COMPANY McLane Company Sauder Woodworking Faurecia Emissions Control International Paper Company NEW 2014 HIGHLIGHTS JOBS RETAINED CAPITAL INVESTMENT INDUSTRY 425 $119.0 million Food Processing 150 1,800 $13.4 million Advanced Manufacturing 150 105 $19.0 million Automotive 125 532 $73.0 million Advanced Manufacturing PCS Nitrogen Ohio 6 145 $190.0 million Polymers & Chemicals 2015 GOALS & STRATEGIES Foster relationships with companies and consultants that have the most potential for a job creation event or that already have a significant footprint in the region and are looking to expand Partner with local economic development organizations to prepare certified food and beverage sites for investment and development Support the commercialization process for tech-based business growth by connecting startups with potential services or funding opportunities Conduct two press trips to promote the region s core industry competencies and growth opportunities We re thrilled to locate our 22nd grocery distribution center in Findlay. The values and work ethic of the community fit perfectly with McLane. The state and local assistance was one of the reasons we chose Ohio. The businessfriendly environment was critical to our selection. Mike Youngblood President, McLane Grocery 46

REGIONAL NETWORK PARTNERS NORTHEAST REGION NEW JOBS RETAINED JOBS CAPITAL INVESTMENT Northeast Ohio powered through 2014, setting the region up for exciting opportunities in the years to come. The 18-county region hosts a growing pool of diverse industries such as biomedical and healthcare, shale, polymers, advanced manufacturing, flexible electronics, and information technology. 3,794 11,865 $1.3 billion Established over 120 years ago, Core-Mark distributes and markets consumer packaged goods to the convenience retail industry. The company chose Glenwillow, Ohio to build its new distribution center after considering four other states. Ohio s skilled workforce, business environment, access to markets, lease arrangements, and competitive incentives were key decision drivers. The expansion will create 150 jobs with a payroll of $6 million. Cleveland also had an exciting year. Not only did it win the bid for the 2016 Republican National Convention, the city invested more than $600 million in downtown projects (including the new convention center). It also transformed into a biomedical manufacturing and research hub with the renowned Cleveland Clinic at the center. COMPANY NEW 2014 HIGHLIGHTS JOBS RETAINED CAPITAL INVESTMENT INDUSTRY Borgers Ohio, Inc. 230 $19.0 million Automotive Applied Medical Technology, Inc. Core-Mark Midcontinent, Inc. Park Place Technologies, LLC Lubrizol Advanced Materials, Inc. 150 148 $16.0 million Biohealth 150 $10.5 million Other 111 139 $2.0 million Information Technology 73 525 $25.0 million Polymers & Chemicals 2015 GOALS & STRATEGIES Focus on the regional economic competitiveness strategy to drive job growth with emphasis on retention and expansion Leverage regional assets in biomedical to attract investment and build a comprehensive supply chain Capitalize on the Utica Shale opportunity to grow jobs in upstream, midstream, and downstream industries Strengthen value chains to support emerging market sectors such as flexible electronics and wearable/ embedded technologies Work with educational institutions, regional partnerships, state agencies, and JobsOhio to build a pool of available talent We chose Lordstown for our new plant because of its location to our market, exceptional workforce, and the comprehensive incentive package and assistance provided from the state and local levels. Armand Sanguigni President, Matalco Inc. 47

Commitment Assets Performance 48

FINANCIALS FINANCIAL SUMMARY JobsOhio is a non-profit corporation that promotes economic development in the state of Ohio. JobsOhio is the sole member of JobsOhio Beverage System (JOBS), also a non-profit corporation. The primary source of revenue for JobsOhio is grants from JOBS, which fund the economic development activities of JobsOhio. The sole source of revenue for JOBS is proceeds from the sale of spirituous liquor in the state of Ohio. On February 1, 2013, JOBS acquired an exclusive 25-year franchise for the liquor enterprise from the state; JOBS made a cash payment to the state and committed to supplemental payments based on the performance of the enterprise. JOBS operates the liquor enterprise through a contract with Ohio Department of Commerce and its Division of Liquor Control. A summary of the 2014 financials for JobsOhio and JOBS are presented on the following pages. 49

FINANCIALS JOBSOHIO FINANCIAL SUMMARY SUMMARY FINANCIAL STATEMENTS (UNAUDITED) In this report, we provide the statement of net position and statement of revenues, expenses, and changes in net position for JobsOhio and JOBS for the 12 months ended December 31, 2014. The financial activities for both entities are accounted for as an enterprise fund, reporting all financial activity, assets, and liabilities using the accrual basis of accounting in the same manner as with other private sector businesses. The statement of net position provides information about assets and liabilities and reflects the financial position for both entities. JobsOhio posted a strong net position at December 31, 2014 of $336 million consisting mainly of cash and cash-equivalent assets. Included in these cash assets are commitments that JobsOhio has already made through the extension of offers of loans and grants to businesses, for the purpose of job creation and retention. At December 31, 2014, JOBS posted a negative net position, which reflects the difference between the debt issued by JOBS and the book value of the acquired liquor franchise, and results from the grants of liquor profits from JOBS to JobsOhio. During the 25-year life of the franchise, the amortization of the franchise and the repayment of the bonds will result in the elimination of the negative net position at the end of 25 years, at which time the franchise reverts back to the state. The statement of revenues, expenses, and changes in net position reports the revenue activity and expense for the 12-month period. The majority of the JobsOhio revenue came from the grants that it received from JOBS. The JobsOhio operating expenses were $63 million for the 12-month period. Most of the expenses consisted of economic development programs (62 percent), and purchased services (14 percent). The remainder of the expenses were composed of salaries and benefits, professional services, insurance, marketing, and administrative expenses. 50

FINANCIALS LIQUOR ENTERPRISE PERFORMANCE The liquor enterprise experienced moderate growth from January 1 to December 31, 2014. For this 12-month period, total revenues increased to nearly $949 million, a 5.6 percent increase when compared to the same period for the prior year. This increase is primarily attributed to the 6.6 percent growth in the retail market, while the wholesale segment increased by 3.1 percent. American whiskey drove the majority of the growth and experienced an 8.8 percent increase in dollar sales in 2014. Jack Daniel s Tennessee Whiskey remained the state s number one selling item with a volume of 364,060 gallons and grew 2.6 percent in 2014. Ohio s growth in 2014 also signifies that consumers are spending more on spirits but not increasing consumption. This is widely known in the industry as positive price mix and aligns with the social responsibility message of the liquor enterprise. Operating income was $221 million and adjusted operating income was $295 million after adjustments for Amortization and Supplemental Payment expenses. Adjusted operating income represented 31.1 percent of sales. The growth in Ohio surpassed the growth of total control states in 2014. Ohio grew case volume by 3.4 percent; whereas, control states as a whole grew by 2.7 percent. Ohio also outpaced total control state dollar growth, 5.6 percent versus 5.1 percent respectively. 12 MONTHS ENDED 12/31/2013 12/31/2014 Change Revenues ($000) - Retail $634,600 $676,665 6.6% - Wholesale $263,619 $271,858 3.1% Total revenues $898,219 $948,523 5.6% Gallons sold - Retail 8,948,919 9,297,673 3.9% - Wholesale 3,303,406 3,350,466 1.4% Total gallons sold 12,252,325 12,648,139 3.2% 51

FINANCIALS JOBSOHIO FINANCIALS JobsOhio Statement of Net Position (Unaudited) December 31, 2014 (In thousands) ASSETS: Current assets: Cash and cash equivalents - unrestricted $ 261,904 Investments 101,974 Accounts receivable 177 Prepaid expenses 393 Due from JOBS 87 Total current assets 364,535 Long-term Assets: Cash and cash equivalents - restricted 4,798 Capital assets, net of depreciation 1,775 Loans 2,082 Total long-term assets 8,655 Total assets 373,190 LIABILITIES: Current liabilities: Accounts payable 730 Accrued liabilities 36,169 Total current liabilities 36,899 Total liabilities 36,899 NET POSITION: Net investment in capital assets 1,775 Restricted 4,798 Unrestricted 329,718 Total net position $ 336,291 52

FINANCIALS JOBSOHIO FINANCIALS JobsOhio Statement of Revenues, Expenses, and Changes in Net Position (Unaudited) Twelve months ended December 31, 2014 (In thousands) OPERATING REVENUES: Interest income - loans $ 69 Fees and other 734 Total operating revenues 803 OPERATING EXPENSES: Economic development programs 38,867 Economic development purchased services 8,979 Salaries and benefits 5,956 Professional services 4,315 Insurance 273 Administrative and support 2,127 Marketing 2,573 Total operating expenses 63,090 Operating income (loss) (62,287) NONOPERATING REVENUES: Grants 220,000 Investment income 145 Total nonoperating revenues 220,145 Change in net position 157,858 Net position, beginning of period 178,433 Net position, end of period $ 336,291 53

FINANCIALS JOBSOHIO BEVERAGE SYSTEM (JOBS) FINANCIALS JobsOhio Beverage System Statement of Net Position (Unaudited) December 31, 2014 (In thousands) ASSETS: Current assets: Cash and cash equivalents - unrestricted $ 80,055 Cash and cash equivalents - restricted 137,598 Inventory 55,728 Prepaid expenses 906 Accounts receivable 8 Total current assets 274,295 Long-term Assets: Intangible asset - liquor franchise, net of amortization 1,274,130 Total assets 1,548,425 LIABILITIES: Current liabilities: Accounts payable 13,587 Accrued liabilities 50,996 Special obligation bonds payable - current portion 42,955 Bond interest payable 29,970 Due to JobsOhio 87 Total current liabilities 137,595 Long-term liabilities: Special obligation bonds payable 1,521,911 Total liabilities 1,659,506 NET POSITION: Unrestricted (deficit) $ (111,081) 54

FINANCIALS JOBSOHIO BEVERAGE SYSTEM (JOBS) FINANCIALS JobsOhio Beverage System Statement of Revenues, Expenses, and Changes in Net Position (Unaudited) Twelve months ended December 31, 2014 (In thousands) OPERATING REVENUES: Net liquor sales $ 948,523 OPERATING EXPENSES: Cost of goods sold 545,288 Sales commissions 51,420 Liquor gallonage taxes 42,751 Amortization of intangible asset - liquor franchise 55,197 Service fees 12,671 Supplemental payment 18,933 JobsOhio management fees 631 Professional services 138 Insurance 323 Other 137 Total operating expenses 727,489 Operating income 221,034 NONOPERATING EXPENSES: JobsOhio grants 220,000 Bond interest, net 57,078 Other, net (16) Total nonoperating expenses 277,062 Change in net position (56,028) Net position (deficit), beginning of period (55,053) Net position (deficit), end of period $ (111,081) 55

Diligence Security Soundness 56

CORPORATE GOVERNANCE PROMOTING RESPONSIBILITY AND INTEGRITY At JobsOhio, our Board of Directors and employees are held to the highest level of integrity in all of our corporate affairs. Corporate Governance directs the actions of the JobsOhio Board of Directors and its employees, protecting against individuals acting in their own best interests and ensuring the security and soundness of the assets of JobsOhio. In fulfilling our unique mission as a private, nonprofit, statewide economic development corporation, we are diligent in complying with our statutory reporting requirements. We follow best management practices that support transparency and accountability well beyond those requirements. 57

CORPORATE GOVERNANCE COMPLIANCE AND CONTROL REVIEW In 2014, JobsOhio completed its first compliance and control review for the fiscal year ending June 30, 2013. The Ohio Auditor of State s Office and the independent auditing firm approved by the Auditor of State, established the compliance and control procedures that would be examined. The independent auditing firm then checked compliance with ethical standards, expense reimbursements, payroll, board operations, and other oversight matters and reported no significant findings related to compliance or controls. CONFLICTS OF INTEREST POLICIES AND PROCEDURES In 2014, JobsOhio hired a Director of Compliance who is responsible for managing the JobsOhio Conflicts of Interest and Standards of Conduct Policies, as well as developing and conducting annual ethical training and ensuring annual ethical conduct pledges are signed by all JobsOhio employees, officers, and Board members. JobsOhio is committed to the highest standards of ethics and integrity, and this is reflected in our policies and the many steps we take to ensure rigorous financial discipline and accountability. Our policies and procedures are continually refined as a result of company growth and changing business decisions. Several procedures have been implemented to identify and avoid or manage potential conflicts of interest long before any project actually reaches the Board or its committees for approval. INDEPENDENT REVIEW PANEL In 2013, the JobsOhio Board of Directors established an Independent Review Panel (IRP) to assist management in the review and evaluation of projects being considered for one or more grants or loans from JobsOhio and to ensure the accountability of those proposals prior to approval. The IRP is made up of individuals not affiliated with JobsOhio and who are qualified by experience or expertise in business, finance, investment management, corporate governance, ethics, economic development, or foundation grant processes. Panel members assess each proposal for adequacy of the JobsOhio review process regarding potential conflicts of interest. They evaluate every proposal for commitment to job creation, proposed payroll and investment metrics, and appropriateness and soundness. The results of their review, evaluation, and assessment are regularly reported to the President and Chief Investment Officer of the Corporation and the Investment Committee of the Board. TRANSPARENT AND ACCOUNTABLE As part of our public disclosure requirements and in support of our values of transparency and accountability, JobsOhio financial documents, Conflicts of Interest Policy, Standards of Conduct Policy, and monthly public reports of executed agreements are all published on the JobsOhio website. Through these and other efforts, the Board and management at JobsOhio remain focused on strong Corporate Governance and are committed to responsible business practices. 58

BOARD OF DIRECTORS The JobsOhio Board is composed of proven leaders from some of America s most successful organizations. Their broad experience in growing companies, fiscal responsibility, and corporate governance benefits JobsOhio at every level of operation. James C. Boland Board Chairman Retired Vice Chairman Ernst & Young Former President, CEO & Vice Chairman Cavaliers Operating Company John F. Minor, Jr. President & Chief Investment Officer JobsOhio C. Martin Harris, M.D. Chief Information Officer Cleveland Clinic Gary R. Heminger President & CEO Marathon Petroleum Corporation Lawrence J. Kidd Principal & CEO Reliable Staffing Services and RSS Professional, LLC Brad Lindner Chief Executive Officer United Dairy Farmers John J. Bishop Chairman of the Board The Motorists Insurance Group Stephen A. Perry Retired President & Executive Director Pro Football Hall of Fame Barbara R. Snyder President Case Western Reserve University 59

2014 2015 ANNUAL REPORT STRATEGIC PLAN Visit our website at jobs-ohio.com or call us at (614) 224-6446 to learn more. JobsOhio is a private non-profit corporation designed to drive job creation and economic development efforts in Ohio. Metrics in this report reflect job and capital investment commitments by companies. Data subject to adjustments based on final commitments. 41 S. High Street, Suite 1500 Columbus, OH 43215 contact@jobs-ohio.com 2015 JobsOhio. All rights reserved.