Invest in Lombardy Business opportunity toward Expo2015

WHY LOMBARDY

3 Milan will be hosting EXPO 2015: “Feeding the planet, energy for life” (May 1 st - October 31 st ) Significant expected flow of visitors (around 21 millions, of which 73% Italians and 27% foreigners) EXPO 2015 is going to create a linked industry accounting for about 200,000 new jobs The event will generate a total turnover of € 25 billion Opportunity for companies to: Showcase leadership, innovations and solutions in a global forum Attract the attention of institutions, governments and consumers Build future strategic alliances and business opportunities Test the Italian economic system WHY ITALY: EXPO 2015

4 LOMBARDY  GDP: almost 25% of Italy’s total GDP  higher than Norway, Greece, Austria, Denmark, Finland, Ireland and Portugal  Lombardy’s per capita nominal GDP +23% of the average per capita European GDP  One of the four European economic engines  One of the top ten World Economic Centers (According to Standard & Poor’s)  Over 60% of FDI coming to Italy (92 of the top 100 multinational companies in Italy)  Milan, the European city with the highest density of multinational companies ITALY  GDP: (€) billion  the fourth GDP in Europe; 2,78% of global GDP  Almost 4 million companies  The 9th largest economy in the world  61 million people, with a GDP per head of approx US $  At the center of 3 key markets of about 800 million relatively high income consumers (European Union + Southern Mediterranean Countries + Balkan Countries) WHY LOMBARDY: EXCELLENCIES, NOT AVERAGE

5 WHY LOMBARDY: A PERFECT MIX OF QUALITY AND COSTS Cost/quality matrix in wood manufacturing Source: fDI Benchmark 2014

6 WHY LOMBARDY: HIGH TECHNOLOGY MANUFACTURING… 6 Number of employees in high tech manufacturing sector ‘000, data 2013 High qualified human resources (e.g. engineers, skilled workers, etc.) have competitive salaries compared to other EU Countries Source: Eurostat

7 …WITH LOW COSTS 7 Annual gross salary for skilled workers 2013 Source: Tower Watson

8 ITALIAN AND LOMBARDY INCENTIVES FOR GREENFIELD ACQUISITION OF NEW MACHINERY: financial aid at subsidized rate for machinery acquisition in industrial sector Maximum loan 2 million (euro) Either National and Lombardy founds are available HIRING HUMAN RESOURCES: tax credit for hiring young (30% of the salary for 18 months) and woman personnel (50% of the salary for 18 months) COMPETITIVENESS COMMITMENT WITH LOMBARDY REGION: Help step by step of the istitutions to private companies: “One stop office” - a single decision-making center for all matters Quick and concrete answer: answers within 1 month Taylor made support Profitable direct collaborations with local Institutions Access to highly specialized skills and R&D infrastructure INNOVATIVE START-UP: Flexible working contract for hiring skilled personnel Tax credit for hiring for skilled personnel (35% of the annual salary) Easy access to financial credit (max 2,5 Milion of Euro) at subsidized and government warranties Accelerate procedures for the setting up and registration of the newco

9 WHY ITALY: THE EXCELLENCE OF SMEs IS LOOKING FOR NEW INVESTMENTS Source: Based on Istat data 2011 An additional unit of capital invested in a foreign branch makes in Lombardy 16 percent more in terms of gross margin then the European average An additional unit of capital invested in a foreign branch in Lombardy makes 19 percent more in terms of turnover then the European average Number of companies per size and sector

10 M&A OPPORTUNITIES WITHIN ITALIAN INDUSTRIES Main sectors: manufacturing, machinery, automotive, fashion, engineering, health care High skilled SME characterized by Made in Italy quality and expertise in niche sectors Companies turnovers range from 1,5 mln euro to 140 mln euro 30 M&A & Real estate opportunities  Opportunities M&A Sectors: TEXTILES, FASHION and ACCESSORIES, automotive, ELECTRONIC DEVICES, machinery Target companies size: from 1 to 130 mln euro  Opportunities in Real Estate RESIDENTIAL, TOURISTIC and COMMERCIAL Real Estate Yield: from 3.5% to 7%

11 REAL ESTATE INVESTMENT OPPORTUNITIES Invest in Lombardy promotes opportunities in the following REAL ESTATE structures:  Hotel in Milan and renewed tourist location in the Lombardy territory Yield from 4% to 6%  Residence apartments Yield from 5% to 6%  Fashion stores in Milan Yield from 5,5%  Logistic platform Yield from 8%  Multi Real Estate properties for office, retail or commercial users Yield from 5% to 7%

INVEST IN LOMBARDY

13 INVEST IN LOMBARDY IN A SNAPSHOT  > meeting with foreign companies  > 300 foreign investors supported by IIL  44 finalized investments  122 € Investments generated throughout the territory for every euro invested by public institutions 25 PRIVATE PARTNERS 15 PUBLIC PARTNERS OUR SERVICESOUR STAKEHOLDERS OUR RESULTS (LAST 2 YEARS)

14 PARTNER PROGRAM

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16 Life Sciences, Bioeconomy & Biotechnology Pharmaceutical and medical devices Manufacturing & Construction Mechanical & Mechatronics ICT Energy & renewable energies Enviroment and agricolture Agrofood, Food and Beverage  Land in Lombardy is a service from Invest in Lombardy geared to the needs of foreign investors looking to relocate their offices and/or expand their business activities in Lombardy  We offer you a FREE DESK for up to 3 months in one of the 6 Lombardy’s excellence centres - cutting edge structures specialized in a wide range of industries Education and training Tourism Get down to business in no time with our program! LAND IN LOMBARDY: how does it work?

BUSINESS

18 LESS THAN 90 DAYS TO EXPO Milano!

19 EXPO BUSINESS MATCHING Expo Business Matching is the online platform which has been designed to promote and facilitate the development of cooperation and partnership with potential counterparts for all business operators visiting Expo Milan The portal serves as a platform for interaction with the International Business community and enables all foreign and overseas operators to establish new business relations. foreign operators EXPO BUSINESS Matching Web portal Italy and the rest of the world suppliers manifacturers buyers investors manifacturers buyers suppliers distributors

20 EXPO BUSINESS MATCHING 3 easy steps: Register, Match, Meet! 01. REGISTER Complete the company profile, detail info about product and service Define search target and what are you looking for Inform about your availability during the 6 months 02. MATCH Data is collated and elaborated according to different predefined criteria Automatically receive a list of potential partners to meet Confirm the interest and connect with the right one 03. MEET Obtain an agenda of business meetings Get maximum relational, operational and logistical support Receive meeting report

21 With a view to the largest international event, EXPO 2015, companies all around the world are trying to find new opportunities for their business and investments EXPO BUSINESS CLUB are exclusive clubs in some international cities that will involve top Italian and foreign managers develop networking opportunities between Italian and the international business world promote actions of “lead nurturing” of the contacts developed by INVEST IN LOMBARDY

22 4 CLUBS

23 WHY BE PART?

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