0 © 2013, Investment Consulting Associates Real estate is a strategic asset. Each and every new location decision carries cost, workforce, and other implications. We provide our clients with the insight needed to quickly build solutions which are flexible enough to evolve with the company’s changing needs. ABOUT US SERVICES CRE Strategies Location Strategies Supply Chain Optimization Incentive Maximization Implementation Support TECHNOLOGIES LocationSelector.com ICAincentives.com Europe - Asia Caribbean and Latin America United States and North America A New Generation in Strategy Consulting

1 © 2013, Investment Consulting Associates INCENTIVES AS A MAJOR FACTOR?? A New Generation in Strategy Consulting The front page of the Sunday, December 2, 2012, edition of The New York Times featured an analysis of US incentive deals based upon Investment Consulting Associates (ICA)’s online incentive tracking tool and database, ICAincentives.com. While examining incentive trends across the 50 states, the article “As Companies Seek Tax Deals, Governments Pay High Price” notes that many state programs do not identify specific corporate beneficiaries, nor do they measure explicit return on investment. New York Times Analysis on Incentive Trends

2 © 2013, Investment Consulting Associates ROLE OF INCENTIVES  Investment Incentives are part of a broader strategy that encourages overall economic development in your targeted sectors. They are given: – Because there supposed to be benefits from giving them – Because a country or city believes that it must offer incentives to compete with rival countries for FDI – Because potential investors “expect” to be provided with some form of incentive. A New Generation in Strategy Consulting By observing the incentives given by governments to corporates, priority sectors can be identified and competition for investments intensified

3 © 2013, Investment Consulting Associates GLOBALIZATION RESULTING IN RE-SHORING?  Competitive and low risk investment climate, with relatively stable wage inflation, increased productivity levels and a skilled labor pool in North America compared to rapid rising labor costs and seemingly overheating economies in South East Asia are shifting the global landscape of FDI  The increased productivity in combination with the strong competitive environment plays a big role in the current “reshoring” movement  A Reuters/MFG.com survey among US companies: – 15% have repatriated production back into the US in the past 2 years – 40% of North American manufacturers with off-shored production are investigating bringing that work back within the next year. A New Generation in Strategy Consulting

4 © 2013, Investment Consulting Associates  Developing markets are becoming developed  Emerging consumer markets creating “hot spots” for demand and market impacts as a consequence  Transportation and energy becoming highly relevant to the sourcing and production of goods  Direct access and cultural awareness also resulting in some pressure to re-regionalize A New Generation in Strategy Consulting WORLD IS NOT EXACTLY FLAT…

5 © 2013, Investment Consulting Associates  National borders becoming increasingly irrelevant  Need to compete as others do A New Generation in Strategy Consulting …BUT NEITHER IS IT BACK TO THE WAY IT WAS