Fund Administration Centre A cost/quality comparison (Based on information from the Financial Times fDi Benchmark tool – April 2012)

Competitiveness of Scottish Central Belt Value for Money Overall Attractiveness Quality of the Location Annual Operating Costs Quality Competitiveness General Business Environment Labour Availability and Quality Presence of an Industrial Cluster Infrastructure and Accessibility Living Environment Contents

 The following analysis is based on fDi Benchmark, an online location benchmarking tool provided by the Financial Times (FT)  fDi Benchmark compared the Scottish Central Belt with the leading locations globally for a Fund Administration Centre based on an analysis of over 55 quality factors and 10 cost factors  A key emphasis was placed on: - Presence of industrial cluster - Labour availability and quality - Infrastructure and accessibility  Other factors including the general business environment and living environment were also assessed Benchmarking Study

Project Profile Overview Cost FactorUsage Amount Property Total Occupancy cost (in town office rent)4,000 m² Telecoms National Call2,400,000 Mins Intl Call to US (International Call)11,500 Mins Intl Call to France11,500 Mins Intl Call to Germany11,500 Mins Intl Call to Italy11,500 Mins Intl Call to Sweden11,500 Mins Intl Call to China11,500 Mins Intl Call to Singapore11,500 Mins Intl Call to India11,500 Mins Intl Call to Brazil11,500 Mins Intl Call to Mexico11,500 Mins Weighting Model OverviewWeight Presence of an Industrial Cluster35 Labour Availability and Quality30 Infrastructure and Accessibility15 Living Environment10 General Business Environment10 Employee TypeProfile Head count General Management Business Unit Manager2 Project Manager12 Finance Financial Analyst120 Head of Finance and Administration1 Junior Accountant33 Senior Accountant5 Administration Facilities/Office Services Specialist22 Secretary5

fDi Benchmark Matrix The fDi Benchmark Matrix shows the trade off between cost and quality across the 4 selected locations for the Fund Administration Centre profile. The average cost and quality score is 100 for the selected locations. Source: fDi Intelligence, from the Financial Times Ltd The ‘ideal’ quadrant is the top left (high quality/lower operating costs)

fDi Benchmark Matrix The matrix is based on the weighting and cost model for the Fund Administration Centre profile. The weighting model identifies the key location criteria for the project and the cost model shows the primary cost inputs for the operation. The cost and quality scores are calculated using real data on all the location requirements and cost inputs. The results indicate the different location solutions for the investor as follows:  the Scottish Central Belt offers higher quality at lower cost than the average of all the selected locations  Frankfurt offers higher quality but at higher cost  Birmingham offers lower cost, but at lower quality The Operating Cost value is in GBP - United Kingdom Pound LocationQualitative Score Operating Cost Index Operating Cost Value Birmingham ,751,883 Dublin ,734,253 Frankfurt ,995,803 Scottish Central Belt ,158,279 Source: fDi Intelligence, from the Financial Times Ltd

Location Attractiveness Index The location attractiveness index shows the overall attractiveness of the 4 selected locations for the Fund Administration Centre profile. The ratio of quality to cost is 50:50 Source: fDi Intelligence, from the Financial Times Ltd

Cost Quality Competitiveness The cost quality competitiveness uses the results of the fDi Benchmark Matrix to show the value for money of each location option. The graph shows that:  The top location offering the highest quality for a given level of cost is the Scottish Central Belt  the Scottish Central Belt also offers an above average level of quality and good value for money as its relative quality is higher than its relative cost Source: fDi Intelligence, from the Financial Times Ltd

Cost Competitiveness The annual operating cost calculation for Fund Administration Centre is based on the following primary input costs: Labour Cost, Property and Telecoms  The average cost across the selected locations for Fund Administration Centre is GBP 11,410,053  The greatest cost saving between the selected locations is GBP 5,837,524 per annum  The values in the chart below are in GBP - United Kingdom Pound Source: fDi Intelligence, from the Financial Times Ltd

Cost Competitiveness LocationLabour CostPropertyTelecoms Birmingham7,409,9501,752,348589,584 Dublin9,802,1431,434,723497,386 Frankfurt12,769,9081,559,906665,987 Scottish Central Belt6,918,0031,650,690589,584 The location with the lowest operating costs is the Scottish Central Belt In terms of the individual cost factors, the location with the lowest costs is:  Labour Cost: the Scottish Central Belt  Property: Dublin  Telecoms: Dublin The values in the table below are in GBP - United Kingdom Pound Source: fDi Intelligence, from the Financial Times Ltd

Quality Competitiveness The quality competitiveness assessment is based on the weight model for the Fund Administration Centre profile which assesses each location across the following location factors: General Business Environment, Labour Availability and Quality, Presence of an Industrial Cluster, Infrastructure and Accessibility and Living Environment. The average score for the selected locations is 100. The location with the highest quality score is the Scottish Central Belt Source: fDi Intelligence, from the Financial Times Ltd

Quality Competitiveness Location General Business Environment Labour Availability and Quality Presence of an Industrial Cluster Infrastructure and Accessibility Living Environment Birmingham Dublin Frankfurt Scottish Central Belt In terms of the individual quality factors, the location with the highest score is:  General Business Environment: Birmingham  Labour Availability and Quality: the Scottish Central Belt  Presence of an Industrial Cluster: Frankfurt  Infrastructure and Accessibility: Frankfurt  Living Environment: Frankfurt Source: fDi Intelligence, from the Financial Times Ltd

General Business Environment The quality competitiveness breakdown for General Business Environment for the Fund Administration Centre profile is shown below The location with the highest overall score for General Business Environment is Birmingham Source: fDi Intelligence, from the Financial Times Ltd

General Business Environment Location Economic growth and stability Operating risk Taxation and incentives Regulatory environment Birmingham Dublin Frankfurt Scottish Central Belt In terms of the individual quality criteria within General Business Environment, the location with the highest score is:  Economic growth and stability: Frankfurt  Operating risk: Birmingham  Taxation and incentives: Dublin  Regulatory environment: Dublin Source: fDi Intelligence, from the Financial Times Ltd

Labour Availability and Quality The quality competitiveness breakdown for Labour Availability and Quality for the Fund Administration Centre profile is shown below The location with the highest overall score for Labour Availability and Quality is the Scottish Central Belt Source: fDi Intelligence, from the Financial Times Ltd

Labour Availability and Quality Location Overall size of labour market Tightness and competition for labour Experienced industry-specific staff Flexibility of labour regulations Birmingham Dublin Frankfurt Scottish Central Belt In terms of the individual quality criteria within Labour Availability and Quality, the location with the highest score is:  Overall size of labour market: Birmingham  Tightness and competition for labour: Birmingham  Experienced industry-specific staff: the Scottish Central Belt  Flexibility of labour regulations: the Scottish Central Belt Source: fDi Intelligence, from the Financial Times Ltd

Presence of an Industrial Cluster 17 The quality competitiveness breakdown for Presence of an Industrial Cluster for the Fund Administration Centre profile is shown below The location with the highest overall score for Presence of an Industrial Cluster is Frankfurt Source: fDi Intelligence, from the Financial Times Ltd

Presence of an Industrial Cluster Location Size of industryTrack record Birmingham Dublin Frankfurt Scottish Central Belt In terms of the individual quality criteria within Presence of an Industrial Cluster, the location with the highest score is:  Size of industry: the Scottish Central Belt  Track record: Dublin Source: fDi Intelligence, from the Financial Times Ltd

Infrastructure and Accessibility The quality competitiveness breakdown for Infrastructure and Accessibility for the Fund Administration Centre profile is shown below The location with the highest overall score for Infrastructure and Accessibility is Frankfurt Source: fDi Intelligence, from the Financial Times Ltd

Infrastructure and Accessibility Location Access to major overseas markets Quality of utilities Quality of ICT infrastructure Birmingham Dublin Frankfurt Scottish Central Belt In terms of the individual quality criteria within Infrastructure and Accessibility, the location with the highest score is:  Access to major overseas markets: Frankfurt  Quality of utilities: Frankfurt  Quality of ICT infrastructure: Birmingham Source: fDi Intelligence, from the Financial Times Ltd

Living Environment The quality competitiveness breakdown for Living Environment for the Fund Administration Centre profile is shown below The location with the highest overall score for Living Environment is the Scottish Central Belt Source: fDi Intelligence, from the Financial Times Ltd

Living Environment Location Cost of living Attractiveness for international staff Birmingham Dublin Frankfurt Scottish Central Belt In terms of the individual quality criteria within Living Environment, the location with the highest score is:  Cost of living: the Scottish Central Belt  Attractiveness for international staff: Frankfurt Source: fDi Intelligence, from the Financial Times Ltd

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