1. NABE – Foreign Direct Investment a regional perspective Sieb Hoogstra, OCO Global 16 September 2009

2. 2 Agenda 1.Introduction 2.Global FDI 3.USA regional FDI 4.How to respond?

3. 3 Introduction Some facts Per year approximately 10,000- 15,000 FDI projects A very competitive market Attracting FDI has many advantages – Higher paid jobs – Direct + indirect jobs – Cluster building and even outward FDI has positive effects...........

4. 4 Global FDI OCO Global

5. 5 Global FDI - Destinations Asia and Western Europe are large receivers of FDI North America attracts 8% of FDI, but is source of 25% of FDI

6. 6 Global FDI - Destinations Over the last decade services have become more important in FDI Upcoming sectors such as Renewable Energy, Pharma/Biotech

7. 7 Global FDI – Top destination cities 2008 Source : A New Investment Paradigm - OCO Global 2009

8. 8 USA regional FDI OCO Global

9. 9 Introduction Structural reasons to invest in USA : – Market (size of NA market, purchasing power, …) – Competitiveness (productivity, flexibility of labor market, world class universities & R&D, capability to attract international talent, …) – Innovation (technology/organization/commercial, …) Which make USA a must be location Economic reasons to invest in USA : – Globalization (technology and no expansion on home markets) – Conversion rates (US as low cost location)

10. 10 Introduction Challenges: Economic crisis – Uncertainty about markets, financing,... – Protectionism Opportunities: Improved image USA USA taking lead on upcoming sectors USA first out of the recession....

11. 11 Source : fDi Markets TM – OCO Global Top 10 destination states global FDI (2003-Q22009)

12. 12 Source : fDi Markets TM – OCO Global Top 10 destination states by world region (2003-Q22009)

13. 13 Source : fDi Markets TM – OCO Global High growth inward FDI to the USA 2003 - 2008 Sector No of Projects 2003 No of Projects 2008 Percentage Increase Top 3 States for Sector (Number of Projects 2003-2008) Real Estate2231050California (11), Texas (10), New York (9) Alternative/Renewable energy4451025Texas (14), California (11), Illinois (9) Communications1442200California (42), Texas (24), New York(23) Industrial Machinery, Equipment & Tools2161190North Carolina (24), Georgia (23), California (20) Financial Services2881189New York (78), California (57), Texas (28) Transportation819138Texas (14), Florida (9), Illinois (7) Business Services2047135New York (66), California (31), Illinois (23) Software & IT services51103102California (127), New York (75), Texas (44) Textiles285079New York (83), California (41), Florida (18) Electronic Components173076California (19), Michigan (14), Texas (11)

14. 14 Source : fDi Markets TM – OCO Global Top 10 source states global FDI (2003-Q22009)

15. 15 Source : fDi Markets TM – OCO Global High growth outward FDI from the USA 2003 -2008 Sector No of Projects 2003 No of Projects 2008 Percentage Increase Top 3 States for Sector (Number of Projects 2003- 2008) Alternative/Renewable energy643616California (38), New York (20), Virginia (9) Real Estate31151387Colorado (78), California (69), New York (53) Biotechnology1444214California (67), Massachusetts (35), New Jersey (19) Transportation3385158Tennessee (72), Georgia (62), California (50) Machinery, Equipment & Tools49126157Texas (84), Connecticut (76), Illinois (63) Textiles43105144California (105), North Carolina (70), New York (63) Aerospace2025125Illinois (35), Connecticut (25), North Carolina (13) Beverages2249123Georgia (92), New York (41), California (15) Communications76169122California (298), New Jersey (81), Illinois (69) Financial Services113249120New York (548), California (95), Illinois (68)

16. 16 How to respond? OCO Global

17. 17 Introduction Responses to the crisis by companies: – Postponement of expansion projects – Spreading risk – Risk averse market entry – More research and decision time – Tough negotiations

18. 18 Introduction How to address the challenges? – Aftercare – More targeted positioning – Pro-active company approach – Enhance service offer – Improve investment environment

19. 19 THANK YOU

20. 20 Points of Contact Sieb Hoogstra Director T: +32 (0) 2 554 1251 E: sieb.hoogstra@ocoglobal.com OCO Global (Head office) 6 Citylink Business Park, Durham St, Belfast, BT12 4HB, Northern Ireland OCO Global 146 Fleet Street, London EC4A 2BU, UK OCO Global 45 Broadway 21st Floor, 10008 New York, USA OCO Global Avenue Louise 283/18, 1050 Brussels, Belgium OCO Software 10 West Beach – Cobh, Cork, Republic of Ireland OCO Global 65 Rue dAnjou, 75008 Paris, France