Team NEO Buckingham, Doolittle & Burroughs Presentation November 5, 2012

The NEO “System”: Metro and Regional EDOs

Enhance NEO’s competitive advantage  Build collaboration  Optimize funding for key economic development efforts  Attract new businesses  Leverage state economic development programs The “New” Team NEO Economic Development Hub for NEO Regional Economic Development Strategy and Funding Protocols Business Attraction & Regional Marketing Reg’l Business Dev JobsOhio Linkage Build EDO Collaboration Functions Purpose

4 Partners/Funders: The Greater Team

--Marketing-Business Attraction --Business Growth. Competitiveness --Tech Commercialization, Start-ups --Infrastructure Loans and Grants --Close the Deal” Funds --Marketing-Business Attraction --Business Growth. Competitiveness --Tech Commercialization, Start-ups --Infrastructure Loans and Grants --Close the Deal” Funds 1.Innovation & Investment (Third Frontier, Edison Institutes, etc.) 2.Small & Minority Business and Export Assistance Office 3.Tax Credits, Servicing and Workforce Development Office 4.Urban and Site Development Office 5.Housing and Partnerships Office 6.Energy Office 7.Community Services Office 8.Governor’s Office of Appalachia 1.Innovation & Investment (Third Frontier, Edison Institutes, etc.) 2.Small & Minority Business and Export Assistance Office 3.Tax Credits, Servicing and Workforce Development Office 4.Urban and Site Development Office 5.Housing and Partnerships Office 6.Energy Office 7.Community Services Office 8.Governor’s Office of Appalachia Outsource Loan Servicing (possible 2012) JobsOhio Regional Network Tourism Ohio (2012) Ohio Business Development Coalition Contract for Economic Development

JobsOhio Network

35-40% of Ohio’s Key Demographics Strengths & Challenges 37% of Population and Employment 37% of Gross Regional Product 40% of Business Establishments 39% of Jobs Lost % of Ohio’s Minorities 51% of Competitive 3rd Frontier Awards ’08-’10 Generally 2X Central Ohio, 3X Smaller Regions We Know NEO Must Perform for Ohio to Win.

JobsOhio Expectations of Regional Partners Facilitate regional strategy Grow and expand companies in region Attract new companies to the region Advance technology commercialization Stimulate entrepreneurship Establish metrics and reporting system ---Implemented via our Regional Network

Regional Network Partners Ashland County Economic Development Ashtabula Growth Partnership Columbiana County Port Authority Erie Economic Development Corporation Greater Akron Chamber Greater Cleveland Partnership Geauga Growth Partnership Huron County Economic Development Center Lake County Economic Development Center Medina County Economic Development Corporation Portage Development Board Richland Development Corporation Stark Development Board Tuscarawas County Community Improvement Corp. Team Lorain County Wayne Economic Development Council Youngstown-Warren Regional Chamber

Regional Business Development: Helping YOUR Clients Grow in NEOhio !

Team NEO Regional Business Development 1.Serves as JobsOhio sales force, initial client service agent for new capital investment/job creation projects 2.Coordinates region-wide retention and expansion program 3.Regional project managers trained and certified to advise companies on all State of Ohio and JobsOhio program 4.Connect every company in NEOhio to ALL regional assets

Common State Tools Used through Regional Business Development - Tax Credits Job Creation Tax Credit –Grants Workforce Guarantee Incumbent Worker Voucher Program (new program through DSA, not JobsOhio) 629 Infrastructure Clean Ohio –Low Interest Financing 166 Loan Program Ohio Enterprise Bond Fund R&D Loan Fund (with associated tax credit) Innovation Ohio Loan Fund

General Guidelines for Project Parameters Requesting State Financial Assistance JobsOhio Targeted Industries: Advanced Manufacturing, Aerospace & Aviation, Automotive, BioHealth, Financial Services, Energy, Polymers & Chemicals, Food Processing What is the real need? Will the project be unable to move forward without support? $1,000,000 +/- ROI in Year 1 Special note regarding pre-revenue companies, retail & developer led projects 13

Current Project Activity

Current Project Activity Lead Source

Regional Wins 37 Projects in 3rd Quarter104 Projects Year to Date

JobsOhio Network YTD: Jobs Created & Associated Payroll New Payroll NEO -36% of Ohio Total New Jobs NEO - 36% of Ohio Total

Business Attraction: How we SELL!

Team NEO Value to Attraction Clients One Stop –Single point of contact for Cleveland Plus Region –Project Dissemination & Management No Fee Site Selection Services –Shepherd clients through NEO Econ Dev “Maze” –Provide information, insights and contacts Workforce, Supply chain, Logistics, Utilities, Real Estate Government: Taxes, Incentives Intro to business community and support organizations Confidential & Customized –Make the business case for Cleveland Plus –Focused on client needs…….confidentially 19

20 Generate Impressions NEO Economic Development System Executes Regionwide Close Deal # qualified leads # short list $Payroll Metrics Qualify Leads Qualify NEO Negotiate Deal Increasing Local Role

Lead Generation Channels: Focus Site Selectors In Region Referrals State of OH Cardiovas- cular Medical Devices Minority Business International Energy Core Ind.

Within 500 Miles: –44% of US. Households –43% of US. Population –45% of US. Effective Buying Income –46% of US. Earnings –49% of US. Manufacturing Employment –56% of Fortune 500 US. Headquarters Close to Major US and Canadian Markets

Large Talent Pool 25+ Colleges/Universities 210,000 students 30,000 post-secondary degrees and certificate awarded annually 1.1 million students within 150 mile radius

Estimates on the Scope of the Utica Play Source: ODNR

Recent Industrial Investments in Utica Shale V&M Star – Youngstown $650 Million + U.S. Steel, Lorain $240 Million Timken, Canton $225 Million Chesapeake Energy, M3 Midstream, & EV Energy Partners, Columbiana County $900 million Halliburton – Muskingum County $150 million and 300 jobs 25 MarkWest – Harrison & Monroe Counties $500 million and 700+ construction jobs Exterran – Columbiana County $13 million and about 100 jobs Baker Hughes – Stark County $64 million and 700 jobs Select Energy Services – Carroll County $10 million and 185 jobs $2.75 BILLION and Counting – NOT Including Lease and Royalty Payments, Operations, etc.

Team NEO: Creating new jobs NOW 26 Since 2007, Team NEO has helped to attract: 63 new companies 5,900 new jobs $214M + direct annual payroll $396M+ regional annual payroll benefit

TEAM Wins – Starting 2007 A Much Better Way Accord Affymetrix AIM Pharmakon AlSher Titania Ambaflex Anderson-DuBose Ardent Products Corporation BioForum Applied Knowledge Center Boneng Transmissions Co., Ltd. Clear Catheter Clovervale Farms CollectCorp Doppstadt MDG Medical Inc. Medline MGW NI Medical PCC Airfoils Perio Corp/ Barbasol LLC Project Glenda Project Blend Philips Healthcare Proxy Biomedical QED Quadax RTS Companies Regulatory and Quality Solutions Röchling Explorys Gamma Star Genae GCA Services Green Processing Companies Group Travel Planet Hatton Design of London Health and Safety Institute Ice Cure IPCS JMC Steel Group M2M Imaging MAT Holdings Rosetta Sabin Robbins SP Data Steel Warehouse Suturenetics, Inc. TeleTech ValueCare Pharmacy ViewRay VXI Washita Valley Enterprise

NEOhio Economy: Better than We Think!

8 Qtrs of YoY Growth, Slowing? 29

Recovering, but Slowly 30

NEO Unemployment Lower than US 31

Jobs Tracking with the US….this time 32

Our Economic History & Outlook

NEO GRP: Lost Decade, Growth to Resume

NEO GRP Future: +21%, Balanced Growth

Pass The Plus Be the Plus: Know the Facts; Be Positive Sell the Plus: Think of Businesses you know who should be in the Cleveland Plus Region Pass the Plus: Receive Newsletter + spread good news to employees; use info to recruit Partner: –Support CLE+ –Collaborate with Team NEO on lead generation and lead execution