London | Defence Cluster

ACTIVITY UPDATE-2013

LONDON ECONOMIC DEVELOPMENT CORPORATION (LEDC)

Come for Business. Stay for Life.www.ledc.com519 661 4545 | info@ledc.com

The London Economic Development Corporation

What is the LEDC?

The London Economic Development Corporation (LEDC) is the primary economic development agency in London, Canada. Established in 1998 as an independent organization, LEDC is a partnership between the City of London and the business community. The LEDC is improving the economic well-being of Londoners by assisting with the growth and expansion of local businesses and the attraction of new businesses to London.

What does the LEDC do?

The LEDC provides economic development services including:

» Attracting new business and foreign direct investment to London » Retaining existing business and assisting with local expansions » Advocating for improving the business environment in London » Providing workforce development leadership to connect businesses with education institutes and

employment sector agencies » Marketing and promoting London for business opportunities in global markets » Establishing business support partnerships throughout the community » Assisting the City of London in the development of strategic plans, including the industrial lands strategy

What does success look like?

SINCE INCEPTION, $7+ MILLION

IN ANNUAL PROPERTY TAX REVENUE

SINCE INCEPTION,$1.2+ BILLION

IN NEW INVESTMENT

SINCE INCEPTION, 9500+ JOBS

CREATED

Testimonial: Kongsberg Protech Systems

“We are excited by the welcome we have received, and the support we have received from the Ministry of Economic Department and Trade in Ontario and London Economic Development Corporation. We are looking forward to expanding our business in Canada, which is an important market for us, and we strongly believe this new venture is the right move for our company. Canada offers very competitive conditions for development and production internationally, and London offers a highly skilled and competent workforce.”

Mr. Egil Haugsdal, President Kongsberg Protech Systems, Norway

Activity Update | 3

Who is the LEDC?

The LEDC Team

The LEDC employs experienced professionals who provide information, advice and assistance at every stage of business planning and investment.

Board of Directors

The LEDC is led by a strong board of accomplished business and community leaders.

Mr. Gerald Slemko Chair, Chelsey Corporation

Dr. John Capone Vice-President Research, Western University

Mr. James Crich President, Auburn Developments Inc.

Mr. Marvin DeVries President, Trojan Technologies

Ms. Shantal Feltham President, Stiris Research Inc.

Mr. Joe Fontana Mayor, City of London

Mr. Keith Gibbons President, McCormick Canada Co.

Mr. Blair Poetschke Director, Ontario Ministry of Economic Development, Trade and Employment

Dr. Howard Rundle President Emeritus, Fanshawe College

Mr. Michael Schmalz President, Digital Extremes

Mr. Brian Semkowski Principal, Southwest Sun

Dr. Anne Snowdon Richard Ivey School of Business

Mr. Howard Thompson Senior Vice-President Western Ontario Region, TD Bank Group

Mr. Marty Thrasher President, FMT Consulting

Kapil LakhotiaInterim General

Manager

Jack AdamsManager, Business

Growth & Retention

Robert CollinsDirector, Workforce

Development

Ashley ConynghamDirector, Marketing & Communications

Bhavika DalalBookkeeper

Larry MackinnonDirector, Business

Development

Lia LudaesAdministrative

Assistant

Heather PilotDirector, Business

Development

Lee SmithsonDirector, Business

Development

Shobhita SharmaCommunications & Social Media

Coordinator

Katie WilhelmMarketing & Design

Coordinator

4 | The London Economic Development Corporation

London | Strategic LocationLondon | Strategic LocationNew Investment & Business Expansions

Each year, the LEDC assists local business to grow in

London as well as submit hundreds of proposals to

potential investors around the world. Through LEDC

efforts in 2013, over $110 million was invested in London from new foreign direct investment and existing business expansions. The LEDC team works

closely with existing London companies and possible

investors to provide a wide range of services, including:

» Assistance with site selection, relocation and expansion

» Assistance accessing funding and grants

» Development of new export markets

» Assistance with market research

» Provide training and networking resources

» Provide potential business alliances

» Facilitate regulatory approvals at all levels of government

» Facilitate talent development through partnerships with education providers as well as employment sector agencies.

Some Investment Highlights:

» Amphenol Borisch

» Brose

» Columbia Sportswear

» CoorsTek/AMTI

» CS Tube

» Dr. Oetker

» KL Products

» Statesman Advanced Medical Centre

Expansion Highlights:

» Centennial Windows

» HCL Logistics

» Ortech

» Alliance iCommunications

Activities to Date

Year Investment Jobs

2013 $110 mil. 1700

2012 $160 mil. 1600

2011 $311 mil. 750

85HOSTED 85

ATTRACTION VISITS, 2013

25PARTICIPATED IN 25 GOVERNMENT SITE SELECTION TOURS,

2013

25CONDUCTED 25 INTERNATIONAL

PROMOTION MISSIONS, 2013

1700FACILITATED THE

CREATION OF 1700 NEW JOBS,

2013

$110$110 MILLION

IN INVESTMENT, 2013

million

Activity Update | 5

London | Defence ClusterNew Investment & Business Expansions

500COMPANIES LEDC

WORKED WITH, 2013

60ACTIVE EXPANSION

FILES, 2013

LEDC assisted over 30 companies in accessing more than $6 million in funding from programs including CME-Smart, Industrial Research Assistance Program (IRAP),

Southwestern Ontario Development Fund (SWODF) and more.

North American Firsts

Transform Automotive (USA) First Canadian automotive parts facility

Dr. Oetker (Germany)First North American frozen pizza manufacturing plant and one of the largest food companies in Europe

Natra (Spain)First North American chocolate processing plant

Fraunhofer Project Center (Germany) First North American R&D facility to develop new composite materials

Brose (Germany) First Canadian automotive parts plant that employs over 800 people

Hanwha (Korea)First Canadian building products manufacturing facility

Arvin Sango (Japan/USA)First Canadian automotive parts facility to supply parts to Toyota

IN ACCESIBLE GRANT AND SUBSIDY

APPLICATIONS, 2013

$6million

Testimonial: London Chamber of Commerce

“In the midst of difficult economic times for the city, the London Chamber of Commerce feels that it is important to recognize the success stories of new business that have been attracted to London and new jobs that have been created by companies already here. This work goes well beyond just the great companies that have chosen to locate in London as a result of the LEDC’s efforts, i.e. The Cakery, Dr. Oetker, Hanwha, and many more. Indeed, many of London’s recent and future opportunities can be tied directly to the involvement and hard work of the London Economic Development Corporation.”

Mr. Gerry Macartney, President London Chamber of Commerce

6 | The London Economic Development Corporation

Workforce Development

A skilled, dynamic and accessible workforce is a key contributor to our economy and its future. The workforce development portfolio actively supports the attraction, growth and retention activities of the LEDC team. This includes working with community partners, employer groups and funding sources to:

» Develop and share local labour market information

» Match post-secondary students to local enterprise

» Attract and utilize skilled immigrants

» Develop transition-to-work initiatives to ensure supply of trained workers to meet employer needs

grow your future in London

•Affordable cost of living

•Vibrant arts and entertainment scene

• Short commute times and great work life balance

• Largest free Wi-Fi network in Canada

•Career opportunities with innovative global companies

•Hub of creative and cultural activity

•Variety of programs for sports and recreation

/LondonEDC @LondonEDC

www.LEDC.com

40BUSINESS

ATTRACTION & FOREIGN DIRECT

INVESTMENT SUPPORT

200LOCAL

EMPLOYER CONSULTATIONS

7WORKFORCE

PROJECTS

JOB SEEKER REFERRALS

50CAREER

CONSULTATIONS

Leaders in Workforce Development

200

Activity Update | 7

Workforce Development

» Labour Market Information Development: Website, www.WorkTrends.ca is a community-based data consortium to support the coordinated collection and dissemination of local economic data, business conditions and labour market information.

» Post Secondary Student Retention: The annual Student 2 Business Career Networking Conference (www.S2B.ca) and the BizInc (www.BizInc.ca) entrepreneur development initiative work to launch young careers in our community.

» Global Talent Attraction and Retention: The LEDC supports London’s welcoming efforts through support of the London Middlesex Immigrant Employment Council, its individual and group mentorship programs and the Job Match Network initiative (www.lmiec.ca).

» Employer and Jobseeker Support Activities: The LEDC has provided more than 200 individual company consultations and over 200 jobseeker consultations on workforce matters, as well as maintained two employment programs www.HireOneLondon.ca and www.LondonTechJobs.ca. The most viewed section of the LEDC website is the Business Directory, it has become a key resource to companies and jobseekers.

» EmployerOne Survey: For the past year, a collaboration of workforce, economic, education and business groups have come together to develop

a way to obtain reliable local labour information while respecting

the employer’s confidentiality and limited time. Annually, The EmployerOne Survey allows employers a chance to communicate

their combined workforce needs to stakeholders, colleges,

universities, school boards and employment service providers, who

can provide solutions.

Workforce Projects Include:

8 | The London Economic Development Corporation

London | Strategic LocationCollaborations & Partnerships

Partnered for Success

LEDC creates significant direct and indirect economic

activity in the city of London through collaboration with many partners throughout the community to

ensure effective service delivery to client companies.

Our partners such as the City of London, TechAlliance,

Small Business Centre, London International Airport,

BizInc, Stiller Centre and the London Chamber of Commerce work with LEDC to serve clients in their

unique segments. Successful partnerships like these

result in economic prosperity in London.

BizInc

BizInc is an initiative mandated to seek-out, support and promote student entrepreneurs. Located at Western University and Fanshawe College, BizInc is a student incubator helping turn business ideas into workable realities. The LEDC helped facilitate the BizInc enterprise from concept to pilot status, through obtaining Communities in Transition funding from

the Ministry of Economic Development, Trade and Employment and contributing financially to operations. LEDC actively participates on the advisory committee, stewardship of funding, promotion and support of activities on campuses and in the community.

Regional Collaborations Include:

» Canada’s London

» Southwest Economic Alliance

» Ontario Automotive Communities Alliance

» Ontario Food Cluster

» Ontario Technology Corridor

Activity Update | 9

London | Defence ClusterStrategic Assets

Fraunhofer Project Centre at Western University

Fraunhofer Project Centre (FPC) is a partnership between Western University and Germany’s renowned Fraunhofer Institute, focusing

on applied research in the fields of developing composite materials,

methods and manufacturing technologies. Fraunhofer’s role is to assist

companies in identifying suitable light weight alternatives to steel,

and then develop a process to mass produce those new materials.

FPC accelerates the adoption of advanced lightweight composite

technologies (carbon and long fibre) by facilitating research trials on

an industrial scale. Companies conducting collaborative research at

this one of a kind North American facility own the intellectual property.

As the auto sector focuses on weight reduction and lightweight

materials, Fraunhofer is getting worldwide recognition resulting in greater interest in London as a destination for related investment.

For more information: www.Eng.UWO.ca/Fraunhofer

Dieffenbacher hydraulic high-speed press with a maximum press force of 25,000 kN (2,500 tons)

Testimonial: Brose

“Our decision to construct a facility in London was based on a very competitive business environment, and the strong support we have received from the London Economic Development Corporation.”

Mr. Michael Stoscek, President Brose Fahrzeugtelle, GmbH

International Water Centre of Excellence

The International Water Centre of Excellence (IWCE) sets London apart from other

jurisdictions. Water is an extremely important resource around the world. The treatment of clean

drinking water and wastewater management continue to be a priority. The IWCE is a globally unique site for water treatment technology development, commercialization, validation and testing. It allows for full-scale development/testing of new technologies related to wastewater

treatment, nutrient recovery and energy production from municipal waste. IWCE aims to shorten

the time to market for new technologies and provide the critical link between the private and

public sectors.

10 | The London Economic Development Corporation

London | Strategic Location

London’s location along the NAFTA (North American Free Trade Agreement) superhighway continues to be an important consideration

for investment attraction and local business growth. The 400-series

highways carry $1.5 billion in trade every day and provide London

access to more than 150 million consumers within a one-day drive.

Located half-way between Detroit and Toronto, London has

unparalleled market access through close proximity to three Canada-US border crossings — Detroit, MI, Port Huron, MI and Buffalo, NY.

London offers fully serviced, shovel-ready lands. These city owned, master planned lands are located in

Innovation Park at Veterans Memorial Parkway and the 401/402 Gateway. Innovation Park has already attracted multinational companies including Dr. Oetker and Hanwha.

The London International Airport is a hub for general aviation services in Southwestern Ontario. The airport

provides access to a cargo terminal with 24-hour Canada Customs and air cargo services. The Air Cargo Terminal

continues to be successful and has achieved 70% occupancy with 70 employees in the transportation sector.

Strategic Assets

401/402 Gateway Development

Fanshawe College downtown campus for the Centre for Digital and Performance Arts is now home to 400 bright, talented students. It is

already providing new opportunities for students from Southwestern

Ontario and beyond who wish to study digital and media arts, theatre

performance, production and costume design. The Howard W Rundle

building houses 50,000 square feet of learning and service space. With the support from industry partners, the Mobile Testing Lab

provides access to new technology platforms. This lab is poised to

further develop the digital interactive media cluster in London.

Digital Media Centre

Testimonial: London International Airport

“The London International Airport has developed a strong relationship with the LEDC. The LEDC has helped open doors internationally by making introductions and assisting in building relationships with new strategic partners. The LEDC has played an important role in the success of the Air Cargo Terminal as well as the local collaboration with Fanshawe College.”

Mr. Mike Seabrook, President London International Airport

Activity Update | 11

London | Defence ClusterMarketing & Communications

What We Do

The marketing and communications portfolio advises and supports two main audiences

— the local or internal economy and the external economy, both national and international.

Primary to the portfolio is executing a strong communications strategy that helps to generate

business leads as well as support existing businesses.

MARKETING CAMPAIGN OF THE YEAR “HIRE ONE” 2013, EDCO

#1BEST USE OF MARKETING UTILIZING DIGITAL MEDIA

“TODAY + TONIGHT” 2013, EDCO

#1#1LIEUTENANT

GOVERNOR’S AWARD FOR MARKETING

EXCELLENCE - 2 CONSECUTIVE YEARS

2013, EDCO

5LONDON RANKED

TOP 5, BEST LARGE CITIES IN CANADA 2013,

MONEYSENSE MAGAZINE

top10

LONDON RANKED TOP 10 BEST FDI STRATEGY 2013, FDI MAGAZINE

top

LONDON RANKED #2 MID-SIZED CITY OF

THE FUTURE 2013, FDI MAGAZINE

10LONDON RANKED

TOP 10, BEST BUSINESS FRIENDLINESS

2013, FDI MAGAZINE

top

#2

AAALONDON HAS RECEIVED

MOODY’S AAA CREDIT RATING FOR OVER

37 CONSECUTIVE YEARS

Moody’s

Recent Honours and Awards

“A comprehensive campaign...good concept with live tracking.”

EDCO, 2013

“authentic sound track, relevant, and a very natural example of equity & diversity.”

EDCO, 2013

MORE THAN 5,200 HITS11,256 MINUTES

WATCHED AND 80+ COUNTRIES REACHED, INCLUDING GERMANY

IN 2013

MORE THAN 3,800 FOLLOWS IN 2013

TRANSLATING INTO MORE THAN

6 MILLION IMPRESSIONS IN Q4 ALONE

Marketing & Communications

5000!

50+

How We Do What We Do

221,000

PARTNERSHIPS & COLLABORATIONS

E-NEWSLETTER

“Perspective London” insert in Globe and Mail distributed to 221,000 subscribers

Sent to over 5,000 business recipients around the world!

129,000+ unique visitors to 24 LEDC websites.

Launched a NEW LEDC WEBSITE with multi lingual capabilities in spring 2013

actively SUPPORT over 50 Partnership Initiatives!

129,000+WEBSITES

Social Media

180+ TRADITIONAL MEDIA HITS!

6 SIGNATURE EVENTSStudent 2 Business Conference

Record Attendance in 2013

S2B ‘11 ‘12 ‘13

450

350

25048%

42% increase in Twitter followers

48% increase in Facebook fans

unique visitors

42%

24!

Activity Update | 13

London | Defence ClusterEconomic Indicators

2010 2011 2012 2013Population 407.8 412.2 416.1 419.8Labour Force 268.1 267 271.0 267.7Employment 244.9 242.9 247.8 244.9Unemployment Rate 8.6 9.0 8.6 8.5Participation Rate (%) 65.7 64.8 65.1 63.8Employment Rate (%) 60.1 58.9 59.6 58.3

2010 2011 2012 2013

Total Employed 244.9 242.9 247.8 244.9

Goods-Producing Sector 48.9 48.5 48.9 49.3

Agriculture 3.2 2.1 2.5 3.1

Forestry, Fishing, Mining, Quarrying, Oil & Gas - - - -

Utilities - - 2.2 -

Construction 15.1 14.7 13.4 16.8

Manufacturing 29.1 30.2 30.1 27.7

Services-Producing Sector 196 194.4 198.9 195.6

Trade 35 34.7 35.9 40.3

Transportation & Warehousing 11.1 9.7 11.6 11.2

Finance, Insurance, Real Estate & Leasing 19 20.7 19 17.8

Professional, Scientific & Technical Services 13.2 14.9 17.1 15.0

Business, Building & Other Support Services 14.5 11.8 11.3 11.2

Educational Services 24 23.4 21.3 19.9

Health Care and Social Assistance 36.5 36 35.9 37.9

Information, Culture & Recreation 9.8 9 10.3 9.2

Accommodation & Food Services 15.7 14.1 15 16.6

Other Services 10.2 12.5 10.9 7.6

Public Administration 7 7.6 10.5 8.8

Chart 1 | Population and Employment (in 000’s)

Chart 2 | Employment London CMA (in 000’s)

Source: Statistics Canada, CANSIM Table 282-0110

Source: Statistics Canada, CANSIM Table 282-0112

14 | The London Economic Development Corporation

London | Strategic LocationEconomic Indicators

Detached Bungalow

Executive Detached 2-Storey

Luxury Condo.

Standard 2-Storey

Senior Executive

Standard Townhouse

Mississauga $490,000 $549,000 $391,000 $462,500 $758,400 $363,400 Brantford $223,000 $339,000 n/a $225,000 $362,000 $197,500 Ottawa $623,000 $634,000 $490,000 $545,000 $862,000 $354,000 London 2013 $256,200 $336,500 $274,100 $267,300 $483,400 $178,400

Chart 3 | Housing Prices

Source: Royal Lepage, Quarter 4, 2013

2010 2011 2012 2013Permits Value Permits Value Permits Value Permits Value

Residential 2930 $392.81 2390 $349.26 2459 $485.88 2472 $519.43Commercial 474 $166.65 474 $102.37 515 $125.99 468 $83.72Industrial 82 $36.37 94 $75.14 83 $33.18 91 $43.37Institutional 201 $145.17 163 $477.84 172 $129.23 189 $81.26Total 3687 $707.70 3121 $1,004.62 3229 $774.28 3220 $727.78

Chart 4 | Building Construction Activity (in $millions)

Source: City of London

2010 2011 2012 2013

Industrial 11.5% 10.4% 9.7% 9.2%

Office 13.6% 14.6% 14.5% 15.4%

2010 2011 2012 2013f

Real GDP at Basic Prices 19,998 20,096 20,203 20,437

% Change 2.3 0.5 0.5 1.2

Chart 5 | Vacancy Rates

Chart 5 | Gross Domestic Product (in $millions)

Source: CBRE Limited, Q4

f = forecastSource: The Conference Board of Canada

Activity Update | 15

London | Strategic LocationEconomic Sectors

Advanced Manufacturing

Life Sciences

IT/Digital Interactive

Educational & Financial Services

» Food and beverage processing » Automotive components » Defence suppliers

» Green technology

Some Key London Companies Include:3M Canada, Cargill, CoorsTek/AMTI,

General Dynamics Land Systems-Canada

» Medical devices » Imaging and diagnostics » R&D institutes

Some Key London Companies Include:Stiris Research Inc., Trudell Medical International, London Health Sciences Centre, St. Joseph’s Heath Care London

» Western University » Fanshawe College » Collège Boréal

Some Key London Companies Include:TD Canada Trust, Libro Credit Union,

London Life

» Digital media » Game development » Financial solutions software

» Data centres

Some Key London Companies Include:Digital Extremes, Big Blue Bubble, IBM, Cineplex Digital Solutions, Big Viking Games

One of London’s greatest strengths is the diversity of its business community. The LEDC

continues to aggressively pursue the sectors that have been the foundation of London’s

economy, including the automotive parts and food processing industries, and is also dedicated

to the growing areas of information technology and life sciences.

ACTIVITIES OF THE LEDCTHE LONDON ECONOMIC DEVELOPMENT CORPORATION

Come for Business. Stay for Life. www.ledc.com