1. Click to edit Master title style 1 World Investment Forum 2012 Better Facilitation for Investment 20 April 2012

2. Click to edit Master title style 2 2 About OCO Global  Clients include IPIs across the world as well as private sector clients.  OCO’s services to companies are focused on LOCATION ADVISORY and international market assessments.  OCO’s services to IPIs include: –Consulting Strategy; benchmarking; organization development; marketing / propositions; client training –Outsource Solutions Trade & investment support and lead generation –Analytics Business intelligence, research, insight, and profiling; in-house software solutions (CRM, Websites, pipeline development)  Economic development consultancy incorporated in 2001, 35 staff in 4 international offices.

3. Click to edit Master title style 3 3 Customer and supplier activity Due diligence: ‘show stoppers’ ‘forward planning’ Government incentives and support Site and property availability Speed of implementation Synergy with existing operations Track record in the sector Labor and skills availability Where to invest? Financial analysis: impact on the bottom line First-mover advantages Alignment with corporate strategy Competence (R&D) availability The Investors Point of View

4. Click to edit Master title style 4 4 Project Design Agreement on key drivers, project objectives Identify candidate locations Long List of Locations Analyse threshold criteria at macro-level Geographic units, scale Interim reporting Short List of Locations Validate desk sources with primary research Analysis at local levels: connectivity, state aid etc Report on recommended cities for visits Validation Visits Validate research through “on the ground” presentations Final Reporting ACTIONS TOOLS Discussion on strategic context and business drivers STAGE 1 STAGE 2 STAGE 3 STAGE 4 Desk research on location benchmarks Various data sources Location expertise Network of contacts with recruiters, IPIs, current companies, real estate advisors Primary research from recruitment consultants, investment promotion intermediaries Apply weightings, cost / quality score where necessary Corporate Location Methodology An IPI Role at Every Stage

5. Click to edit Master title style 5 5 Corporate Decision Process 1. Project Design 2. Long List of Locations -Understand the types of projects you’re competing for -Identify key location factors: quality and cost - Identify, and collect data on benchmark locations - Proposition & website marketing - Get on the short list! 3. Short List of Locations - Investor facilitation – support, research, information provision 4. Validation Visits Proactive Investment Promotion:  Align message and information to corporate location process  Go from reactive approach to proactive approach  Ensure that information given to investor is aligned to actual requirements  Listen to the investor Aligning to the Corporate Process -Site visits, more information provision -Then implementation and aftercare! The IPI Role

6. Click to edit Master title style 6 6 A Company’s Key Location Drivers LABOR Salaries, On-costs, Attrition, Severage Costs, Benefits, Recruitment PROPERTY Rents, Acquisition, Fit-Out, Taxes UTILITIES Electricity, Gas, Water, Telephony, Broadband STATE AID / GRANTSCORPORATE TAX LABOR SKILLS Qualifications, Availability, Universities, Experience, Languages CONNECTIVITY Road and Rail Networks, No. of Flights, Proximity to Airports INFRASTRUCTURE Regulation, Patents, Government Support LABOR FLEXIBILITY Max Hours, Leave, Overtime, Unions ATTRACTIVENESS Visitor Profile, Amenities, Quality of Life RISK Security, Political, Economic COST QUALITY LOCATION FACTORS

7. Click to edit Master title style 7 7 The Changing Face of FDI Source: fDi Markets and OCO Global

8. Click to edit Master title style 8 8 Making the Decision Medium cost, medium quality location options Ideal location Low cost, low quality location option High cost, high quality location option Uncompetitive location options

9. Click to edit Master title style 9 9 Optimizing Your Facilitation Where Do IPIs Sometimes Fall Down?  Responsiveness. An IPI that does not: –Initially respond to emails / telephone call –Show enthusiasm for a project ……..has little chance of repairing the damage  On occasions, information provision can: –Lack detail –Not be relevant to the project / not address the questions asked –Not be specific enough, giving general data that the company could find themselves –Not be well consolidated, so it is easy to digest for the company or consultant –Not be provided in a timely manner –Not do enough do showcase the location – IPIs are sales people!  But lets not forget many IPI provide high levels of service!

10. Click to edit Master title style 10 Optimizing Your Facilitation How Can You Improve?  Remember, your role is not complete by providing information – that is where it starts and its then time to pursue that lead  Do more research before you get inquiries – know everything there is to know about your location, particularly in your target sectors  Differentiate your presentation – make it slick but don’t overcomplicate – credibility is key  Differentiate the content – benchmarking your location in a good light against competitors is a powerful message Above all, LISTEN to the investor, UNDERSTAND their needs, and TAILOR your facilitation services specifically for that inquiry

11. Click to edit Master title style 11 Optimizing Your Facilitation Practical Steps to Make Those Improvements  Have dedicated research specialists within your organization, so detailed, up-to-date information is continuously available  Put yourself in the guise of the private sector and think like investor – your services should be giving the solutions not tying them down in bureaucracy  Be flexible, learn from your mistakes. Ask companies and consultants about your facilitation  Talk to your existing business base – learn from them and get them involved  Don’t be afraid do ask other organizations for input – but maintain ownership as the key client contact