Socio-economic profile of the province

Socio-economic profile of the province 08 Torino and its province...2 1 Territory, population and environment...4 2 Economy and business...8 3 Employment and education...12 4 Tourism and quality of life...16 1

XXXXXXXXXXX Torino and its province The province of Torino ranks fourth in Italy by number of companies and it is the second exporter in the country just after Milan. Its territory provides an important contribution to the national wealth: in 2007 the GPD in the province was the same of a country like Croatia. Its main contributors are the constantly growing service sector as well as its traditional and deeply rooted manufacturing industry. Despite the global recession, Torino is very likely to recover itself and to build its future on high innovative sectors like aerospace technology, biotechnologies and renewable energy sources, as well as through a re-launching of its traditional strength points, i.e. automotive and mechanical industries. Torino can also boast an excellent graduate and post graduate educational offer and a growing tourism industry. The implementation of the high-speed railway line will bring the city closer to most European capital cities and will help to generate new growth opportunities. TORINO AND ITS PROVINCE TORINO REPORT CARD* Torino Piedmont Italy Torino in the italian standings Recorded business 234.409 468.750 6.123.272 4 of which women s business 54.632 111.336 1.426.029 4 Exports million of euro 17.924 36.964 358.633 2 Imports million of euro 14.965 28.829 368.080 3 Unemployment rate 4,7% 4,2% 6,1% 55 of which women 5,3% 5,2% 7,9% 37 men 4,2% 3,5% 4,9% 56 Resident population 2.277.686 4.401.266 59.619.290 4 Investments million of euro 53.868 99.878 1.500.679 3 Deposits million of euro 32.851 56.665 749.400 3 GDP per inhabitant in euro 28.908 28.249 25.921 27 * Data related to 2007 2 3

Territory, population and environment TERRITORY, POPULATION AND ENVIRONMENT Chart 1 Population residing in the province Chart 2 of Torino by sex and age Foreign residents in the province of Torino by Country of origin The province of Torino is one of the largest in Italy with an area of 6.829 square kilometres. More than half is covered by mountains, while the other half is taken up by hills and plains equally. With 315 municipalities, it ranks first in Italy by number of towns belonging to one single capital of province. At the end of 2007, the resident population in the province reached 2.277.686 inhabitants, 52% of which women, accounting for about 4% of the Italian population. In the city of Torino only, there are 908.263 inhabitants (40% upon the whole Province) but the past few years have seen a sizing down of the urban population, accompanied by a corresponding demographic growth in the municipalities surrounding the metropolitan area. This is mostly due to a growing birth rate and to a significant increasing presence of foreigners who reached 164.592 units in 2007 (7,2% of the population). Romania is the main country of origin of foreign citizens. Romanians amount for more than half among the foreign residents in the province, followed by Morocco, Albania and Peru. Births were 20.153 in 2007 (+1,6% compared with 2006) with a 16% contribution of the foreign resident population. Despite the growing birth rate, there are almost two senior citizens for every young person: a clearly visible sign of a population who is getting older with an average age noticeably higher than the national. The province of Torino is particularly aware of environmental protection. Its commitment waste disposal and recycling with almost 47% (equal 547.939 t/a in 2007) separate collection of rubbish makes it one of few territories exceeding the limit set by the Ronchi Decree. In the past five years, the tons of collected rubbish have almost tripled. In 2007 passenger traffic at Torino-Caselle airport was higher than the previous year (7,6%): passengers reached 3.5 million with a rise of both national and international flights, showing more and more attraction to the Torino airfield. Men Women >= 90 14.631 From 80 to 89 70.805 From 70 to 79 127.923 From 60 to 69 150.420 From 50 to 59 157.070 From 40 to 49 176.452 From 30 to 39 176.937 From 20 to 29 112.618 From 10 to 19 91.678 From 0 to 9 96.385 Source: BDDE. 31/12/2007 data 4.185 41.704 Total population residing on 31/12/2007: 2.277.686 100.487 113.745 97.652 102.381 138.588 150.425 176.898 180.887 Foreign residents in the province of Torino on 31/12/2007: 164.592 7,2% on the whole resident population 18,3% Other nationalities 30.130 1,7% Philippines 2.748 1,7% Nigeria 2.807 2,0% Egypt 3.242 2,3% Moldova 3.808 3,5% China 5.829 44,7% Romania 73.557 4,6% Peru 7.500 5,9% Albania 9.713 18,5% Morocco 23.895 Source: BDDE- Demographic Data Base of the Piedmont Region - 2007 4 5

TERRITORY, POPULATION AND ENVIRONMENT TERRITORY, POPULATION AND ENVIRONMENT Chart 3 Provincial surface area by altitude Table 1 Airport movement at Torino-Caselle Chart 4 Separate rubbish collection Chart 5 (% on the whole) Nr of power plants from renewable sources* 29% Flatland (< 300 m) 1.975,3 sqkm Passengers Goods (t) Mail (t) National International flights flights 2007 3.509.253 11.801 1.866 239 267 2006 3.260.974 11.227 1.771 235 261 2005 3.148.807 12.287 1.507 228 239 2004 3.141.888 14.776 1.218 239 243 2003 2.804.655 17.013 1.331 205 229 2002 2.787.091 15.047 1.302 194 238 2001 2.820.762 14.986 2.233 240 249 Separate rubbish collection in 2007 in the province of Torino: 547.939 t/y Torino province Piedmont 17,9 18,3 20,3 21,5 21,9 24,5 25,2 28,1 31,2 32,9 36,3 37,2 41,2 40,8 46,5 45,3 Torino Piedmont North-West 29 66 79 208 182 443 planned running Italy 789 1.200 46% Mountain (> 900 m) 3.114,1 sqkm 25% Hills 1.739,4 sqkm 2000 2001 2002 2003 2004 2005 2006 2007 0 200 400 Note *: by renewable energy sources (art. 2 Decree 387/03) we refer to non fossil energy sources (wind, solar, geothermal, wave motion, sea motion energy, hydraulic energy, biomass, waste dump gas, biogas, residual purification process gas). 600 800 1000 1200 Source: Piedmont Region Source: Sagat Source: Region of Piedmont - 2000-2007 data Source: GSE (Electricity Service) - 30/06/2007 data 6 7

Economy and business ECONOMY AND BUSINESSES Table 2 Registration trends by sector in the province of Torino Chart 6 Number of European patents published by EPO (European Patent Office) Nr of pro-capita patents per million inhabitants* At the end of 2007 the number of companies recorded in the province of Torino reached the number of 234.409. In the past few decades the production grew significantly in the service sector, without falling in the detriment of its traditional manufacturing industry supported by new hi-tech sectors. Torino economic system stands therefore out thanks to information and communication technologies, tooling and mechanics, automotive and aerospace industries, biotechnologies, wine and food, hydrogen and other renewable energy sources production. Service companies (trade, business and consumer services) amount at 60% of all the companies of the province. Trade ranks first (almost 27% of all recorded sectors) followed by the service industry (24%). In the past few years, with the contribution of the Olympic Games, there was a significant increase in the number of construction companies and in tourism. Despite a slowing down in the world economy, the process of internationalization in the province of Torino has carried on. Means of transport remain the foremost among the exports (40% upon the whole) with particular prevalence of automotive components that recently outnumbered the exports of vehicles. Motor vehicles industry is closely followed by mechanical machinery and equipments (21%) and by electrical and electronic equipments (10%). France remains the main commercial partner of Torino area, but the sales to countries that recently joined the European Union like Romania and Poland are growing. In the rest of the world, the USA is the main destination of goods from Torino. Innovation has always been the hallmark of the province of Torino: innovation capability can also be measured through different indicators, including the number of registered patents. In 2007 5.400 new patents have been registered in the province of Torino amounting for 80% on the regional whole and for 8% of applications nationwide entered. * The total amount includes unclassified companies. Source: InfoCamere, Movimprese - 2007 data Recorded Registered Terminated % Stock variation Agriculture and fishing 14.631 400 674-1,61 Industry 27.829 1.266 1.691-0,22 Building 35.818 4.236 3.085 4,92 Trade 62.245 4.645 5.364 0,67 Tourism 11.271 710 907 3,71 Services to business 55.438 3.015 3.441 1,62 Services to consumers 11.626 636 722 1,49 Total (*) 234.409 19.524 16.795 1,19 Torino Piedmont Italy 113,43 85,46 57,19 121,67 91,04 58,16 2002 2003 2004 2005 2006 * Average annual resident population based on ISTAT survey (average at the beginning and end of the period) Source: Unioncamere Patent Observatory and EPO data 126,36 91,48 66,08 155,51 105,39 65,16 149,37 107,31 68,81 8 9

ECONOMY AND BUSINESSES ECONOMY AND BUSINESSES Chart 7 Value added breakdown in the province Chart 8 Import-export of main products Chart 9 The top ten destination countries of Torino in the province of Torino of Torino exports 2006 V.A. in the province of Torino: 56.799 million euro 7.127 Chart 10 Investments and deposits in the province of Torino Torino Piedmont Italy 0,6 1,5 2,1 23,6 24,4 20,5 Agriculture Manufacturing industry 4,6 5,1 Building sector Services Source: processed by Istituto Guglielmo Tagliacarne based on ISTAT data Year 2006 6,1 71,2 69,0 71,4 Total import = 14.965 mln. euro Total export = 17.924 mln. euro Trade balance = +2.959 mln. euro Export Import 36 92 66 45 73 129 231 148 272 170 422 380 453 360 592 257 636 861 869 358 Wooden products Oil products Leather products Construction materials Other manufactured products Textile and clothing Food and beverages Printing and publishing Chemical products Rubber and plastic materials Source: ISTAT-Provisional data 2007-million euro 1.517 2.060 1.854 2.188 3.707 1.754 5.541 Metal products Electric and electronic machinery Mechanical equipment Means of transport Brazil Belgium Switzerland Turkey United States United Kingdom Poland Spain Germany France 2,5% 2,5% 3,0% 4,9% 4,9% 5,5% 6,8% 8,6% 14,5% 15,2% 500 439 442 536 1000 877 875 993 1.214 1500 1.542 Source: ISTAT - Provisional data for 2007 expressed in million euro and as % weight on total values 2000 2500 3000 2.604 2.725 60.000 50.000 40.000 30.000 20.000 10.000 49.915 22.944 2001 2002 2003 2004 2005 2006 2007 Source: Banca d'italia - Data in millions of euro Investments 1,19 Deposits 53.868 204.664 50.083 47.452 50.836 48.731 46.942 141.156 27.330 30.565 23.328 25.205 33.985 32.851 10 11

Employment and education EMPLOYMENT AND EDUCATION Table 3 Employment indicators Chart 11 Women-owned companies by sector in the province of Torino Employed in thousands Employment level age 15-64 Employed in thousands Total nr of women-owned companies in the province of Torino at the end of 2007: 54.632, +1,5% compared to the end of 2006 Occupational analysis by economic sector in the province of Torino confirms the tertiary sector growth in the economic system that started in the Eighties. Labour market data related to 2007 highlight a growing trend both in supply and in demand of work, pointing out an improved occupational scenario, despite the high turnover. The rate of active population aged between 15 and 64 reached 67,2% in 2007. Labour structure analysis by sector shows that the number of people employed in services (about 50% of the population employed in all the Province), grows more than that in the industry. The decline of population employed in agriculture goes on relentlessly. Foreign entrepreneurs in the province of Torino provide an increasing contribution to the productive infrastructure of the region. At the end of 2007 there were 24.970 foreigners-owned companies, (almost 14% more than the previous year, then more than double compared to 2000). The largest national group is the Romanian (19% upon the whole), that outnumbered the Moroccan business community in 2007. (+1,5% compared to 2006). The province of Torino is also recognized as a centre of excellence in training: in 2007 the graduates form Torino University and Torino Politecnico (Torino Technological University) were 15.369. The highest number of graduates was registered at the Engineering, Economics and Politics Colleges. With regard to the attendance at First and Second Level Masters, 1.763 students were enrolled during the Academic Year 2006/2007, with a 30% increase compared with the previous year. There is a growing number of foreign students in both Primary and Secondary education, with 24.726 units: the most significant presence of foreign pupils is registered in Primary school (37% upon the whole). Men 541 72,1% Women 416 56,0% Total 957 64,0% Unemployed in thousands Unemployment level age 15-64 Men 24 4,2% Women 23 5,3% Total 47 4,7% Agriculture 10 Industry 334 Services 613 Total 957 Work Activity force in level age thousands 15-64 564 75,3% 440 59,1% 1.004 67,2% Source: ISTAT data processed by ORML 2007 avarages 6,2% Tourism 3.410 6,7% Unlimited 10,4% partnership Services to 3.677 consumers 5.659 32,4% Trade 17.696 Source: InfoCamere - 2007 data 7,8% Agriculture 4.243 3,4% Building sector 1.862 9,1% Industry 4.972 24% Services to business 13.113 12 13

EMPLOYMENT AND EDUCATION EMPLOYMENT AND EDUCATION Chart 12 Foreign entrepreneurs in the province Chart 13 Foreign students enrollments by school type Chart 14 Bachelor and Master degrees Table 4 Torino by nationality and geographical area in the province of obtained at Torino University Torino. School year 2006/2007 and Technological University 17,1% Other countries 4.281 7,1% Rest of Africa 1.770 8,2% Central-Latin America 2.051 3,2% Switzerland 805 3,2% Tunisia 806 19% Romania 4.734 3,3% Nigeria 825 3,4% Egypt 838 3,7% Albania 913 Source InfoCamere, StockView Database - 2007 Data 16% Morocco 3.948 6,9% France 1.728 5,1% China 1.273 4% Germany 998 School year total 2006/2007: 24.726 +15,5% compared to 2005/2006 Oceania America Africa Asia Europe 6 1.157 848 Secondary School 2 nd 440 2.290 2 698 1.276 Secondary School 1 st 465 3.101 3 864 Primary School Source: Educational Observatory of Piedmont 2.466 634 5.168 0 432 1.738 271 Nursery School 2.159 Bachelor and Master degrees in 2007: 15.369 of which 7.274 men and 8.095 women Men Women 89 93 222 272 310 Medicine and veterinary Biotechnological sciences Pharmacy Agrarian studies 602 641 681 906 926 960 1.025 1.089 1.260 1.305 Motor sciences Psychology Interfaculty Foreign languages and literature Law Mathematics, physics and natural sciences Education Architecture Medicine and surgery Arts and philosophy Political sciences Economics Engineering Source: Ministry for University Education and Scientific Research 2007 data 1.708 3.280 Iscritti Enrolled Men 66 337 166 444 A.A. A.Y. Women 30 463 80 177 2006/2007 Iscritti Total 96 800 246 621 Iscritti Men 9 49 41 32 of which Iscritti foreigners Women 4 62 22 18 Iscritti Total 13 111 63 50 Iscritti Men 21 184 82 264 Graduates Iscritti Women 9 246 18 92 2006 Iscritti Total 30 430 100 356 Iscritti Men 3 26 35 12 of which Iscritti foreigners Women 0 42 7 10 Iscritti Total 3 68 42 22 Source: Miur Post-degree educational offer Torino University and Technological University 1 st level Master degree 2 nd level Master degree Athenaeum Technological University Technological University (Torino) University University 14 15

Tourism and quality of life TOURISM AND QUALITY OF LIFE Chart 15 Accomodation facilities by type Chart 16 and capacity Torino metropolitan museum system First 10 by attendance 534.655 526.811 529.911 508.376 Total attendance to Torino museums in 2007: 3,2 million +9,3% compared to 2006 Torino and its province benefit huge international visibility during the passed Olympic Games: the combination of major historical locations with modern infrastructures designed by the most famous architects worldwide, turned it into a tourist destination attracting both national and international visitors. This capability of attraction has grown significantly in the past few years: in 2007, Russia was the country with the highest number of tourists visiting Torino, followed by British, French and Spanish. In 2007, the year following the Olympic Games, tourist attraction in the Province of Torino remained pretty much the same. Despite the slight natural drop compared with 2006, Olympic Mountains (Susa Valley and Pinerolo area) remained an excellent tourist destination especially for winter sports, while Torino and its Metropolitan area have been greatly visited thanks to the wide cultural and museum offer in our Region: among the first ten museums in the Torino Metropolitan area, the Museum of Cinema rank first with almost 527.000 visitors, followed by the Egyptian Museum, while a growing number of visits is also recorded by Palazzo Madama and in the Venaria Royal Residence. But how are Torino people experiencing the growing presence of tourists in their city? The increased cost of living affecting the whole country had recoils on household spending patterns: in 2007 the average monthly spending charge amounted to 2.438 euro, with a slight increase compared with the previous year. In 13% was allotted to food while the remaining 87% was spent in non-food goods. Despite the current economic troubles, families in Torino are getting more and more in technology: more than one family out of 2 owns a control desk, a microwave oven, a dvd player and a digital camera. High-tech items like mp-3 players, navigators and hand-held computers are in the houses of almost one family out of four. 50.000 559 hotels (residential hotels included) +16 % compared to 2000 918 other types of accomodation facilities Non hotel facilities 1-2 stars 3 stars 4-5 stars Beds 440 255 174 35 459 244 182 32 513 244 183 40 562 244 188 2000 2001 2002 2003 2004 2005 2006 2007 42 66.000 Source: Piedmont Region, Regional Tourist Observatory -Year 2007 609 239 200 47 734 238 215 47 888 224 238 66 918 246 210 67 147.132 312.532 66.693 234.772 2006 2007 National Cinema Museum Egyptian Museum Palazzo Madama Royal Residence of Venaria Palazzo Bricherasio Foundation Racconigi Castle Antiquity Museum Royal Palace Rivoli Castle Modern Art Gallery GAM Source: Piedmont Region, Piedmont Cultural Observatory 114.943 229.305 190.380 183.074 45.358 167.110 141.248 128.857 103.896 108.806 133.476 91.549 16 17

TOURISM AND QUALITY OF LIFE TOURISM AND QUALITY OF LIFE Chart 17 Provenance of Foreign tourists arriving Chart 18 Arrivals of Italian and foreign tourists Chart 19 Breakdown on family spending in Torino Chart 20 Ownership of technological goods in the province of Torino in the province of Torino by Torino families Foreign arrivals: 273 thousand, 20% of all arrivals Total arrivals: 1 million 362 thousand 2,7% Brazil 7.335 2,8% Romania 7.669 3,5% Switzerland and Liechtenstein 9.483 3,6% Israel 9.817 4,3% Netherlands 11.660 25,2% Other countries 68.816 5,4% USA 14.769 7,1% Germany 19.408 12,6% United Kingdom 13% 34.416 Russia 35.474 8,8% Spain 23.965 Source: Piedmont Region, Regional Tourist Observatory - 2007 11% France 30.022 Total arrivals 2007: 1 million 364 thousand Total stays 2007: 3 million 922 thousand 715.094 Italian arrivals Foreign arrivals 322.976 713.289 336.758 801.659 360.265 795.710 2001 2002 2003 2004 2005 2006 2007 413.837 Source: Piedmont Region, Regional Tourist Observatory - Year 2007 1.022.957 561.657 1.018.337 426.919 1.089.296 272.834 Average total monthly spending in 2007: 2.438 euro of which 12,6% food and 87,4% non-food spending 7,8% Education, leisure time 12,6% and cultural Food and activities beverages 7,0% Furniture, domestic appliances, home services 34,9% Dwelling, fuels and energy spending 13,9% Transport and communications 18,9% Health and other services 4,9% Clothing and shoes Source: Observatory of Torino family spending, Torino Chamber of Commerce, Ascom, Confesercenti - Year 2007 19% 60,0% 18,5% 54,0% 6% 53,0% 24% 45,0% 25,0% 41% 35,5% 47% 21% 9,5% 15,5% 8,5% 10,5% 19,0% 3% 15% 18,0% 9,5% 5,5% 15,0% 3% 10% 13,0% 2% 8% 10,0% Microwave Dvd Computer Digital camera Adsl Playstation Terrestrial decoder Air conditioning Satellite decoder 2004 Increase in 2007 * Values are exclusively related to 2007 Source: Observatory on Torino family spending, Torino Chamber of Commerce, Ascom, Confesercenti - Year 2007 23,0% Home theatre Mp3* 12,0% 4,0% Navigator* Hand-held computer* 18 19