Attracting investment on the Côte d Azur in 2013

Attracting investment on the Côte d Azur in 2013 30 YEARS SUPPORTING CORPORATE LOCATIONS

Team Côte d Azur - 2013 Report Joining forces to tackle international competition In 2013, Team Côte d Azur, the Tourism and Convention Office, the Stations du Mercantour and the economic development teams of the Métropole Nice Côte d Azur decided to embark on joint prospecting in Russia and the United States. In a context of increasingly fierce international competition, we chose to join forces and pool our means in order to ensure our initiative was coherent and effective. We need to confirm this approach in 2014. Christian Estrosi, Mayor of Nice and Member of Parliament, President of the Métropole Nice Côte d Azur. Fighting for growth and employment Through its ability to promote the many benefits of our region and attract the world s most dynamic companies, Team Côte d Azur is a crucial tool for economic development on the Côte d Azur. Each investment generated by Team Côte d Azur s efforts is a further step towards winning our fight for growth and employment in the Alpes-Maritimes area. Éric Ciotti, Member of Parliament, President of the Alpes-Maritimes Departmental Council. Partners that strengthen the corporate location process Team Côte d Azur engages and combines the energy of its three partners: the Alpes-Maritimes Departmental Council, the Métropole Nice Côte d Azur and the Nice Côte d Azur Chamber of Commerce and Industry. The ecosystem we are developing gives foreign companies access to all the advantages they need for their future development in the Alpes-Maritimes region. This new structure and increased involvement from our companies will intensify set-up activity - an essential dynamic in attracting fresh talent and expanding skills. Bernard Kleynhoff, President of the Nice Côte d Azur Chamber of Commerce and Industry.

EDITORIAL Jean-Pierre Mascarelli President of Team Côte d Azur This year our investment promotion agency is celebrating 30 years serving the development of our region, and is doing so with healthy records. Our teams have generated and supported over a thousand direct investments representing almost 20,000 jobs. Over the last 30 years, we have experienced both prosperous (in the early 2000s) and difficult times (after the 2007 crisis), but the Côte d Azur has continued to demonstrate an appeal beyond its natural assets, thanks to an ecosystem that favours innovative, high added value businesses. A regional development strategy likely to attract global leaders in IT, life sciences and cleantech branches cannot be deployed without an astute and concerted vision. In that respect, I want to emphasize the significance of the involvement of the newly-established Métropole Nice Côte d Azur in the governance of Team Côte d Azur in 2012 a turning point for us. The Eco-Vallée of the Métropole Nice Côte d Azur s offers a new area of expansion across an emerging sector, utilising clean technologies. This continues to complement the mature IT sector, where Sophia Antipolis has established itself as a centre of excellence for several decades. The Texas Instruments revitalisation plan has been a symbolic illustration of the Sophia Antipolis ecosystem s ability to transform a site restructuring into an opportunity for new entrants. It has enabled several leading companies to base themselves in Sophia Antipolis while allowing large corporations to strengthen their existing teams more quickly. I salute the remarkable work our agency has carried out in this regard, along with its partners. In 2013, Team Côte d Azur has supported 29 corporate locations and achieved its best result in terms of jobs since 2006, with 632 positions planned over 3 years across the Alpes-Maritimes. We have never had so many prestigious companies and technology leaders set up in the same year. This record highlights the valuable work of our territorial agency, while as a whole has suffered a relative decline in inward investments. I would like to thank the business decision-makers for the confidence they have shown once again in our regional dynamic that focuses, more than ever, on innovation. I am also delighted to welcome business leaders into the governance of the agency through the Advisory Board of Team Côte d Azur which, I am sure, will help the agency better anticipate and respond to their expectations. Let s work together and further increase our effectiveness in shaping the economic future of the Côte d Azur, always strengthening its appeal to investors. 1983 Creation of Côte d Azur Développement 1994 Voted best European economic development agency by Corporate Location 2005 Team Côte d Azur takes over from Côte d Azur Développement 2012 The Métropole Nice Côte d Azur joins Team Côte d Azur s board Jean-Pierre Mascarelli, President de Team Côte d Azur 2

Team Côte d Azur - 2013 Report Team Côte d Azur 2013 Results 29 investment decisions from 13 countries 632 jobs forecast over the next 3 years Attracting Investment to the Côte d Azur In 2013, Team Côte d Azur generated and/or supported 29 corporate location decisions across the Alpes-Maritimes region, without taking into account several site extensions from companies that had previously located to the region. In addition to the slight progress in new set ups (29 compared with 28 in 2013), there has been a marked success regarding the number of jobs forecast: 632 direct, high added value jobs projected over 3 years that is Team Côte d Azur s best result since 2006. Nine strategic corporate locations, including one in cleantech and eight in the IT sector, each account for over 30 jobs; the prize goes to Samsung with 110 jobs. French corporate locations are slightly up (13 compared with 12 in 2012). A steady number of foreign direct investments (16) meet the geographical targets defined at the beginning of the year. While European countries primarily the United Kingdom and Italy are still the source of most foreign investments, almost all the BRICS (excluding South Africa) are also represented, confirming the increasing interest in the Côte d Azur from emerging and fast-growing economies, including Korea, Israel, Colombia and even the United Arab Emirates. Only the United States lagged behind this year, with just one new corporate location project. 2013 was marked by a surge in IT investments, which represented 59% of new corporate locations and 81% of all the jobs generated with Samsung, Huawei, NXP, Magneti Marelli, Qualcomm, Freescale, Matis Group... All areas of microelectronics, software and engineering services contributed to this significant result, driven by the increase in R&D centres (51% of investment decisions and 67% of jobs). Cleantech (6 decisions), B-to-B services (4 decisions) and health (2 decisions) complete a range of investments that confirm the Côte d Azur s successful specialisation in high added value sectors. Several companies chose the Côte d Azur for setting up a French and/or European decision centre and this in each of the targeted sectors: Link2Concept and Triadss for IT, Biomanda for health, Odyseco for cleantech and Nayak Aircraft for services. Support services provided by Team Côte d Azur to these projects involved mobilising the ecosystem (86% of corporate locations), assisting investors to apply for grants (62%), searching for a site (52%), and relocating staff (31%). Converted projects mostly from its network (55%), missions and events (28%), the web (10%) and the Invest in Agency (7%).

NUMBER OF INVESTMENTS ATTRACTED IN THE PAST 7 YEARS 30 30 27 28 30 31 30 29 NUMBER OF DIRECT JOBS FORECAST 557 600 20 400 10 200 625 525 621 544 632 434 0 0 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 NUMBER OF JOBS BY SECTOR INVESTMENT PROJECTS BY SECTOR Services Health 14% 7% IT Cleantech 7% 21% 7% 7% 45% 30% 20% Middle East North America 3% 40% 24% NUMBER OF JOBS BY PROJECT TYPE B-to-B services 5% s 51% SOURCE OF CONVERTED PROJECTS B-to-B services Decision-making centres 6% 9% Commercial offices s 18% 67% TYPE OF SUPPORT REQUESTS Applications for incentive schemes Invest in 7% Others (South Korea, Colombia) Europe 14% Commercial offices 81% 14% PROJECT TYPE Decision-making centres IT 12% BRICS North America 24% Cleantech 7% 14% Europe 2% Other (South Korea, Colombia) BRICS 3% Health 5% NUMBER OF JOBS BY GEOGRAPHICAL ORIGIN GEOGRAPHIC ORIGIN OF INVESTMENT DECISIONS Middle East Services 62% 52% Search for a site Missions & events 28% 86% Mobilisation of the ecosystem Assistance with personal mobility 31% Networks 55% Web 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% 4

Team Côte d Azur - 2013 Report They chose the Côte d Azur The Sophia Antipolis science park and its powerful ecosystem provide real value to the development of mobile technologies and innovative solutions. Sophia Antipolis has a large pool of talents, experts, and many highly-qualified engineers Moussa Belkhiter - SAMSUNG Research Center After the acquisition of a British CSR facility, the Korean leader opened its R&D centre in Sophia Antipolis in 2013 and increased the workforce from 40 to over 100 engineers working on mobile technologies. François Conesa SOLADIS Team Côte d Azur was key to our decision to locate in Sophia Antipolis, helping us to understand the region, prepare our set-up, assess the relevance of our offer and develop our communication as well as access a network of valuable partners. François Conesa - SOLADIS The Lyon-based company Soladis set up a unit of bio-statisticians and statisticians in Sophia Antipolis serving the fields of health, fine chemistry and new technologies. Europe can be best conquered through, as military history has taught us, and our analysis confirmed. We chose the Côte d Azur after assessing the geopolitical, logistical and strategic benefits of this location, following a commitment to technology and innovative uses. Also, the quality of life in the South of is something quite special, and this matters as does the wonderful climate. Paulo Moura - JOIN A Brazilian group specialising in strategic and financial consultancy, JOIN established its European headquarters in Sophia Antipolis in late 2013. Antonio Barona B. VERTECH GROUP Moussa Belkhiter SAMSUNG Paulo Moura JOIN The ecosystem we have discovered at the Business Innovation Center in the Eco-Vallée is absolutely consistent with our expectations of international consultants and researchers on the environment and sustainable development. An atmosphere full of opportunities and challenges, where we can increase our business relationships thanks to an excellent location, a solid reputation, a successful technological environment and the total support of institutions. The decision to locate here is a major milestone for our organisation, reliant on and supported by Team Côte d Azur. J. Antonio Barona B. - VERTECH GROUP A Colombian-owned start-up specialising in engineering consultancy in high tech environmentally sustainable solutions, Vertech chose Nice as the location for its R&D centre. The closure of the Texas Instruments R&D site has given opportunity for many companies to benefit from a pool of talents and engineering skills, highly sought after in the fields of microelectronics and telecommunications. Thanks to Team Côte d Azur s responsiveness, we have been able to contact numerous property developers, select premises and rapidly establish our new business activity Julien Carre - FREESCALE SEMICONDUCTORS A global leader in embedded solutions and semi-conductors, Freescale chose Cagnes-sur-Mer as the location for an R&D centre and technical support. Julien Carre FREESCALE

Company Business activity Country of Origin Information technologies Investment decisions secured by Team Côte d Azur Mobile solutions, migration, synchronization and messaging solutions. Innovative softwares and services for the travel industry and airline companies. Data encryption software solutions for the financial and government markets (e-passport). IT services in automotive engineering and telecommunications. Design and manufacture of embedded semiconductors. Networks and telecommunications solutions. Image processing for integrated circuits. Advanced mobile financial services platform focused on emerging countries. Hosted storage solution in Netcenter, Datacenter, IP networks and managed services. Design services in modelling, design, engineering, concept cars, project and supply chain management. Advanced systems, modules and electronic software for the automotive industry. United Arab Emirates United Kingdom Italy United States China Israel Italy Function Commercial office and and B-to-B services Commercial office and B-to-B services Decision-making centre Engineering and consultancy in technologies for industrial plants. Commercial office and Software and Hardware solutions for mobile audio markets. Netherlands Microelectronics: development of CAD tools for integrated circuits. World leader in mobile telephony. CAD for mobile microprocessors. South Korea Health Cleantech Outsourced HR (recruitment, training, consultancy payroll processing) and IT services. India Decision-making centre and Social media: analytics, big data/data mining & social TV. United Kingdom Innovative software solutions for connected TV (satellite/cable/dtt/iptv). Next-Gen Bioinformatics dedicated to biodiversity studies and microbial detection. Bio-statisticians and statisticians for R&D, industrialisation and marketing services. Decision-making and Commercial office Engineering, studies and technical assistance for industrial stakeholders. B-to-B services Time-critical and taylor made transport for passengers and goods. Commercial office Design and manufacture of automated industrial systems. Commercial office Innovative lighting solutions with light-emitting diode (LEDs) for professionals. Commercial office Engineering in the renewable energies and energy efficiency sectors. Decision-making centre Engineering consultancy for sustainable environmental solutions. Colombia B-to-B services Property and investment consultancy. Russia Commercial office Strategic and financial consultancy. Brazil Commercial office Industrial property consultancy. United Kingdom Commercial office Maintenance and operations services for airline companies. Italy Decision-making centre 7

Team Côte d Azur - 2013 Report Team Côte d azur In Action Abroad Missions Brazil (Sao Paulo), Cosmetics - perfumes United States (California / Silicon Valley), IT (microelectronics) Russia (Moscou), all sectors United States (San Francisco, San Diego), all sectors Israel, IT International events Mobile World Congress (Barcelona), IT (Software / media entertainment) Siggraph (Los Angeles), IT (Software / media entertainment) Israel Innovation days (Tel Aviv, Jerusalem), IT (Software / media entertainment) Ecobuild (London), Cleantech Global Cleantech (Washington), Cleantech Smart city (Barcelona), Cleantech Bio (Chicago), Health and life sciences EuroMedtech (Dusseldorf), Health and life sciences BIOCOM (San Diego), Health and life sciences Joint missions Team Côte d Azur, the Métropole Nice Côte d Azur and Nice Tourism Office have conducted joint promotional campaigns in Russia, Brazil, Israel, California and Japan, thus pooling their resources and increasing the impact on priority target markets. 2 nd International Foreign Investors Forum in Moscow Invest in French Metropolises In Events Paris Air Show (Villepinte), Aeronautics and space Smart Grid Forum (Paris), Cleantech Pollutec (Paris), Cleantech ITER Business Forum (Toulon), Cleantech SIMI (Paris), Property Team Côte d Azur and the investment promotion agencies of the seven major French metropolises have launched a circle of influence and collaboration entitled «Invest in French Metropolises». Its objective is to strengthen the position of the metropolises in the national attractiveness on the European and international scenes. Invest in French Metropolises Foundation, 18 June 2013

IN Côte d Azur Events Innovative City Convention (Nice), Cleantech Telemanagement Forum (Nice), IT MIPIM (Cannes), Property Business Property Team Côte d Azur has worked closely with the Eco-Vallée Urban Development Agency and the teams of the Métropole Nice Côte d Azur to identify international sovereign wealth funds and investment companies likely to become involved with the major structural development projects of the Eco- Vallée National Interest Operation (Grand Arénas, Meridia, Exhibition Centre, etc.), particularly around two key events, the MIPIM in Cannes and the SIMI in Paris. Monitoring key accounts The Advisory Board In 2013, Team Côte d Azur has assisted local key accounts such as EDF or Schneider in their strategic development and/ or restructuring plans. The agency has also supported 2 major corporate operations, working closely with the services of the Métropole Nice Côte d Azur: - IBM: assistance with relocating IBM in the Alpes-Maritimes. - Texas Instruments: active participation in the revitalisation committee following the closure of the American group s primary facility in Villeneuve-Loubet. The company will continue to operate on the Technopolis site in Cagnes-sur- Mer. Texas Instruments employees have been recruited by 7 of the companies supported by Team Côte d Azur in 2013 (Freescale, Magneti Marelli, Samsung, Huawei, Qualcomm, Wyplay, NXP). The availability of qualified staff has also been a trigger for several of these corporate locations. Amadeus, Maxim, Nvidia and Intel have also taken on teams. By late 2013, 80% of the 510 employees that had been laid off have found a redeployment solution, 72% of them in Sophia Antipolis. An Advisory Board was established within the Board of Team Côte d Azur in June 2013. This body was set up by Eric Ciotti, Member of Parliament, President of the Alpes-Maritimes Departmental Council and Christian Estrosi, Member of Parliament, Mayor of Nice, Member of Parliament and President of the Métropole Nice Côte d Azur. Made of some twelve individuals chosen for their scientific and managerial skills as well as representatives of Team Côte d Azur s Board and management, it is chaired by Claude Giafferri, President of Amadeus. Advisory Board meeting 7 November 2013. Arnaud Montebourg, Minister of Industrial Renewal, on a visit to Sophia Antipolis 15 July 2013. It is vital that our institutions involved in economic development work hand in hand with the companies based on the Côte d Azur, to provide optimum business conditions (to both new entrants or established companies). I am delighted to chair the Advisory Board and address the issues affecting the perception and attractiveness of the Côte d Azur, as well as help Team Côte d Azur anticipate the needs of companies in terms of skills, corporate real estate and infrastructure. Claude Giafferri, President of Amadeus, Chairman of the Advisory Board of Team Côte d Azur 9

Team Côte d Azur - 2013 Report Team Côte d Azur Staff Members the interest of investors and demonstrate to them that the Côte d Azur has much to offer. One year after he took office at the head of Team Côte d Azur, Jacques Lesieur takes stock of a year marked by joint and sustained efforts to attract investors. How would you describe 2013 from an investor s perspective? The perception of has suffered this year from certain national announcements in relation to national taxation, which have certainly harmed the attractiveness of the country, as shown by the fall in the flow of inward investment reported by UNCTAD at the start of this year. In the context of increased competition between regions, our agency has had to strengthen its arguments to counter these perceptions which, when explained, can be partially removed. The region is still highly attractive for our type of investors because of the R&D Tax Credit (Crédit Impôt Recherche), but we have to fight more than ever to attract In such context, obtaining almost 30 corporate location decisions for 632 jobs is a real satisfaction and a genuine success. Among the results obtained this year by Team Côte d Azur, which are those that you think are most symbolic, or of which you are most proud? I must certainly include the work carried out along with our partners to support the Texas Instruments revitalisation plan. Major companies like Huawei and Samsung, Magnetti Marelli and several others were persuaded to set up a base on the Côte d Azur in order to take advantage of the qualified staff that was made available. This year we have achieved an excellent record of 17 investment decisions, almost all for R&D or technical support centres in the IT sector. This success is undoubtedly related to this specific situation, yet it could not have been achieved without the long-term work carried out by our teams and their networks. Moreover, investment decisions in the cleantech and health sectors, as well as first successes in the Eco-Vallée illustrate a coherent and balanced growth, benefiting various promising sectors and exceptional territories. I am proud of each of these investment decisions, as they are the result of improved team work between the economic development actors. In 2013, a shift took place when the Métropole Nice Côte d Azur entered into the fold of Team Côte d Azur principals

INTERVIEW Jacques Lesieur CEO, Team Côte d Azur «Always fighting harder to achieve the results the Côte d Azur deserves.» and joint projects were organised. We subsequently became more effective in highlighting the attractiveness of the Côte d Azur and in turning projects into investment decisions. What have been the highlights of the year in terms of prospecting investors? I can talk about two extremely effective missions that have been organised jointly with the Nice Tourism Office and the Métropole Nice Côte d Azur: one in Russia, the other in California. A comprehensive presentation of the Côte d Azur enabled us to capitalise on an international reputation which is primarily based on tourism and technology in order to support our arguments about the economic strategy which is now developing. This is an approach that we are looking to repeat with other partners and in new destinations. At an institutional level, which developments do you consider vital for further developing the region s attractiveness? Our work priorities are deployed on 4 levels: Locally: to develop a successful collaboration with our constituents and our partners, in particular the Métropole Nice Côte d Azur area, the Alpes-Maritimes Departmental Council, the Nice Côte d Azur Chamber of Commerce, Sophia Antipolis Urban Community (CASA), as well as Cannes, Grasse and Menton, to name just a few. Nationally: to further formalise the new collaboration among 7 metropolises within the " Invest in French Metropolises" initiative, and plan more joint actions. Internationally: to speed up the implementation of joint missions targeting new geographical areas in Asia and new sectors in the United States. Finally, towards the business leaders: to better anticipate the needs of companies, finetune our regional arguments and strengthen the attractiveness of the Côte d Azur. They have become significant members of our agency through the establishment of the Advisory Board, chaired by Amadeus. I would like to congratulate Team Côte d Azur staff members for the quality of their commitment and capacity to rethink working methods, focus more effectively on our targets, and achieve productive results. One year after you took office, what lessons have you learned about the art of prospecting for new investors in a region such as the Côte d Azur? More than ever, I am convinced of the unique character of the Côte d Azur and its exceptional assets. Over and above its natural beauty and appeal, the Côte d Azur boasts the distinct advantage of enjoying two leading forces on an economic level. Sophia Antipolis and the Eco-Vallée respectively represent a long-established hub and an upand-coming hub for the future. What new directions would you like to encourage after this assessment? 2014 will be difficult because the regions are engaged in increased competition in a context of global economic rebalancing which is not conducive to new and quick corporate location decisions. Our team will redouble its efforts to achieve more results on our sectoral and geographical target markets. We will also look to attract not only R&D centres but also innovative usages. In addition to attracting new French and foreign companies to the Côte d Azur, Team Côte d Azur will intensify its work with the key accounts already based in the area, in order to better anticipate their needs and facilitate extensions, in partnership with the Nice Côte d Azur Chamber of Commerce and Industry, and the agglomeration communities. The new tool of the Advisory Board, the pooling of a shared CRM tool, and the reflection dedicated to regional marketing will help us in this task. 11

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