1. The Ontario Technology Corridor advantage for ICT and Digital Media March 2013 www.ontariotechcorridor.ca

2. 2 Welcome to the Ontario Technology Corridor If you are part of an Information and Communications Technology (ICT) or Digital Media company seeking to expand or relocate, you need to consider Ontario, home to Canada’s largest ICT cluster and North America’s gateway to innovation. Ontario offers: Why the Ontario Technology Corridor? A deep talent base Excellent growth opportunities A low-risk business environment Generous targeted tax credits A strategic geographic location

3. 3 Welcome to the Ontario Technology Corridor The Ontario Technology Corridor generates 48% of Canada’s ICT revenues 270,000 work in Ontario’s 18,000 ICT companies This includes 2,600 who work in Ontario’s 96 video game development companies Ontario is the Canadian province with the largest number of video game companies Ontario’s video game industry is growing at 21% – the fastest pace in the country Ontario leads the charge for Canada’s claim as one of the top three countries in the worldwide gaming industry

4. 4 A two-hour flight from many major U.S. cities

5. 5 Welcome to the Ontario Technology Corridor Zoom in on the Ontario Technology Corridor

6. Top 10 reasons to invest in Ontario 1. Stable, highly talented, motivated workforce 2. Access to entire North American market (NAFTA) 3. Openness to diversity and multiculturalism 4. Economic engine of Canada 5. World class research institutions 6. Innovation leadership 7. Low risk business environment 8. Superior infrastructure 9. Business incentives 10. Quality of life 6 Welcome to the Ontario Technology Corridor

7. Ontario offers one of the World’s most educated populations 7 Welcome to the Ontario Technology Corridor % Population Age 25-64 with Tertiary Level Education Also, according to the Swiss-based International Institute for Management Development, Canada has the highest number of qualified engineers in the G7.

8. Ontario has 44 world class universities and colleges – Canada’s largest talent pool University of Waterloo Wilfred Laurier University University of Toronto Ryerson University York University Brock University University of Western Ontario (Western) University of Ontario Institute of Technology Ontario College of Art & Design University Carleton University University of Ottawa Conestoga College Centennial College George Brown College Humber College Seneca College Sheridan College Niagara College Fanshawe College Durham College Algonquin College La Cité collégiale Stratford Institute 8 Welcome to the Ontario Technology Corridor Ontario’s internationally respected education system includes over 400 registered private career colleges, 20 public universities and 24 colleges. Among these are:

9. Ontario is rapidly expanding digital media related programs 9 Welcome to the Ontario Technology Corridor Program type College Animation Gaming Graphic design Film Computer software Computer engineering University Computer science and engineering GRAND TOTAL (2012) Number of programs 33 22 37 12 66 58 308 536 (In 2008 the total number of programs was 174)

10. Ontario – the innovation society! 10 Welcome to the Ontario Technology Corridor Toronto: Ryerson University’s Digital Media Zone in its first two years fostered 45 companies and 438 jobs Ottawa: Algonquin College in cooperation with Carleton University offers Interactive Multimedia and Design (IMD), a 4 year degree program Waterloo Region: Communitech HUB, the provincially funded ($26 million) Ontario Centre of Excellence for Digital Media London: Digital Interactive & Gaming (DIG London), an annual conference for Ontario’s gaming network

11. The Ontario Technology Corridor is the economic engine of Canada Key Sectors include: software development and services, telecommunications equipment, digital media, video gaming, microelectronics Ontario generates generates 37% of the national GDP and is home to almost 50% of all employees in high tech, financial services and other knowledge-intensive industries In 2013, Canada is expected to have the fastest economic growth among G7 countries 11 Welcome to the Ontario Technology Corridor

12. Ontario is home to the world’s best Greater Toronto Area: Ubisoft, Cisco Systems, IBM, Arc Productions, Semtech, Polar Mobile, 360 Incentives Ottawa: Fuel Industries Inc., Magmic Inc., bitHeads Inc., which includes HeadGames and Playbrains Inc. Waterloo Region: Blackberry, Open Text Corp., Google Inc., SAP Canada Inc., Electronic Arts Inc. (EA) London: Digital Extremes Ltd., Big Blue Bubble Inc., Antic Entertainment Inc. 12 Welcome to the Ontario Technology Corridor

13. Canada – a sound choice for new investment and trade Foreign Direct Investment (FDI) into Canada has more than doubled in the past decade In 2013 the combined federal- provincial general corporate income tax rate averages 26% – 13% less than average U.S. rate Canada is an aggressive trading nation – a growing list of recent trade agreements represent the most ambitious trade expansion plan in Canadian history 13 Welcome to the Ontario Technology Corridor

14. Canada has a low-risk business and regulatory environment Canada also has: World’s soundest banking system (5 years in a row) Lowest taxes on new business investment in the G7 Average business costs are significantly lower than in any other G7 country – 14.9% lower than U.S. average And: It takes only one procedure and five days to register a new company in Canada UK-based Reputation Institute ranks Canada #1, two years in a row 14 Welcome to the Ontario Technology Corridor

15. Ontario offers highly favourable tax treatments for R&D In Ontario a broader range of costs qualify for deductions than in many jurisdictions When tax credits are factored in, $100 in R&D expenditures can be reduced to an after-tax cost of $57 or $39 for small businesses Canada enjoys the lowest costs in the G7 for R&D intensive sectors, with up to a 10.7% advantage over the U.S. Five of the world’s biggest ICT firms conduct R&D in Ontario: GE, Siemens, Intel, Cisco and IBM 15 Welcome to the Ontario Technology Corridor

16. Ontario’s digital media incentives and targeted tax credits include: Ontario Innovation Tax Credit Ontario Research & Development Tax Credit Ontario Computer Animation & Special Effects Tax Credit Ontario Interactive Digital Media Tax Credit OMDC Interactive Digital Media Fund OMDC Ontario Sound Recording Tax Credit More information at www.ontariotechcorridor.cawww.ontariotechcorridor.ca 16 Welcome to the Ontario Technology Corridor

17. Examples: Ontario digital media incentives SUPPORT PROGRAMS/ INCENTIVES CRITERIAHOW MUCH Ontario Computer Animation & Special Effects Tax Credit Computer animation and special effects activities in film or TV production 20% refundable tax credit for eligible labour expenditures Ontario Interactive Digital Media Tax Credit Labour, marketing and distribution expenditures for the creation of interactive digital media products 40% of eligible labour, marketing and distribution expenditures OMDC Interactive Digital Media Fund Labour expenditures and eligible marketing and distribution expenses claimed with respect to interactive digital media products A non-refundable contribution of up to $150,000 to a maximum of 50% of the project budget to create a market-ready interactive digital media content product OMDC Ontario Sound Recording Tax Credit Eligible production and marketing costs incurred by a qualifying corporation with respect to an eligible Canadian sound recording 20% refundable tax credit for eligible sound recording company for production and marketing costs with respect to an eligible Canadian sound recording 17 Welcome to the Ontario Technology Corridor

18. Ontario’s NAFTA advantage What this means for your company: 460 million people in North America’s $17.9 trillion market Either preferential (reduced) or eliminated tariff rates for North American goods traded between Canada, the U.S. and Mexico Protection of investment and intellectual property (IP) laws and regulations are enforced equally among all trading partners Skilled ICT suppliers 18 Welcome to the Ontario Technology Corridor

19. Ontario’s NAFTA advantage Welcome to the Ontario Technology Corridor 19 What this means for your company: New market opportunities New partnerships New customers New investors New links in supply and production chains New choices for consumers Economic growth High standards of living

20. Excellent infrastructure of international airports Toronto Pearson Toronto Billy Bishop City Ottawa Macdonald-Cartier Region of Waterloo London St. Catharines/Niagara District Hamilton John Munro 20 Welcome to the Ontario Technology Corridor

21. Ontario – international destination, world class convention facilities Ottawa Convention Centre – 192,000 square feet of usable space, a bold, modern design University of Waterloo Conference Centre Metro Toronto Convention Centre and The International Centre, adjacent to the airport London Convention Centre – tiered 300 seat theatre 21 Welcome to the Ontario Technology Corridor

22. Well developed highway, rail, and shipping 22 Welcome to the Ontario Technology Corridor Largest and busiest freeway network in Canada Efficient 400-series highways and municipal expressways Ports connect major manufacturing, processing, transportation services and logistics expertise

23. Established mass transit system 23 Welcome to the Ontario Technology Corridor GO Transit interregional public transit system carries 50 million/passengers/year The Corridor, a VIA Rail passenger train service area The Toronto Transit Commission’s (TTC) subway system, linked with buses, hybrid buses and streetcars carries ~ 1.6 million riders/day

24. Highly integrated telecommunications network 24 Welcome to the Ontario Technology Corridor One of the most extensive and integrated telecommunication networks in North America The largest “free calling” area in North America 100% Digital Telecom Infrastructure High speed data services Internet connectivity E-business services

25. Ontario has one of the busiest Canada-U.S. borders 25 Welcome to the Ontario Technology Corridor 2 nd busiest point of entry between Canada and the U.S., the world’s largest trading relationship Four efficient bridges for U.S. border crossings The Welland Canal offers direct shipping access from the Atlantic Ocean

26. Openness to diversity and multiculturalism 26 Welcome to the Ontario Technology Corridor

27. Excellent culture and sports facilities 27 Welcome to the Ontario Technology Corridor

28. Very high quality of life 28 Welcome to the Ontario Technology Corridor

29. Safe, stable, and well governed 29 Welcome to the Ontario Technology Corridor Canada is a constitutional monarchy Canada has a three-tiered system with Federal, Provincial, and Municipal levels of government Municipal governments are under provincial jurisdiction and governed by an elected mayor and council

30. Ontario cities and towns offer a superior lifestyle Canada has the most liveable destinations in the world! Economist Intelligence Unit (EIU) Low crime Highly stable Highly developed infrastructure 30 Welcome to the Ontario Technology Corridor

31. The Ontario Technology Corridor advantage for Digital Media and ICT March 2013 www.ontariotechcorridor.ca