A presentation made at CEPYME Madrid, 29 November 2011

A presentation made at CEPYME

Madrid, 29 November 2011

North America? Let us walk you in!Quebec: Your dedicated partner to penetrate the North American market

Presentation made at CEPYME Madrid, 29 November 2011

by Dany LaRochelle

CANADA

QUÉBEC

UNITED STATES

MEXICO

Vancouver

Mexico

Atlanta

QuébecMontréal

Detroit

ChicagoWashington

New York

Boston

1000 km

2000 km

3000 km

4000 km

Quebec : a short intro

No.1 Canadian Province in terms of territory, No. 2 in terms of population

8 million inhabitants1 667 441 km2 (3 times Spain)GDP of CAN$315 billionGDP per capita of CAN$40 141 An economy the size of Switzerland’sCanada-USA-Mexico N.A. Free Trade

Agreement: 450 million consumers150 million consumers within 1000 km

from Montréal A Federal StateA Parliamentary Democracy


by Dany LaRochelle

Canada : An important trade partner for the USASource : Trade in Goods in 2008, U.S. Census Bureau

= ? $

≈ $97 billion$?

In your opinion, Canada’s exports to the US represents roughly…?

a)

≈ $58 billion$?

b)

c)

d)

≈ $45 billion?

≈ $11 billion?


by Dany LaRochelle

≈ US$340 billionCanada’s exports to the US represents… e) All of the above…and much much more!

≈ US$368 billion

≈ US$338 billion

Canada : An important trade partner for the USASource : Trade in Goods in 2008, U.S. Census Bureau


by Dany LaRochelle

Quebec : ExportsSource : Statistics Canada, 2009

What is Quebec’s main export?

a)

b)

c)

d)

Paper, cardboard, wood?

Aluminium?

Aircrafts?

Agrifood?


by Dany LaRochelle

Answer: c) Aircrafts and parts

Quebec : ExportsSource : Statistics Canada, 2009


by Dany LaRochelle

Quebec Aerospace Industry

Canadian Aerospace ExportsCanadian Aerospace R&DEmployeesAnnual RevenuesAerospace Metropolis in the World: MontrealAerospace Industry in the World: Québec

75%

70%

42 k

$12 G

No. 2

No. 5


by Dany LaRochelle


by Dany LaRochelle

A diversified economy : world-renowned successes


by Dany LaRochelle

Quebec : Leading Destination of European InvestmentSource : Statistics Canada, February 2010

Foreign Capital Investment by Province in Canadian Dollars 2006-2009

Europe USA Other

Quebec 39% 59% 2%

Rest of Canada 22% 71% 7%

Historically, Quebec has always had a larger share of its foreign investment coming from Europe than any other Canadian Province.


by Dany LaRochelle

A Clear Competitive Edge on Corporate Taxation Source : Grant Thornton, 2011

Manufacturing Industries: Corporate Tax Rates – 2011

Effective Tax Rate

Federal Province/State City TOTAL

Quebec 16.50% 11.90% - 28.40%

Virginia 29.94% 5.64% - 35.58%

New York 26.39% 7.10% 10.05% 43.54% (36.69%)

Texas 31.50% 1.00% - 32.50%

North Carolina 29.65% 6.90% - 36.55%

California 29.03% 8.84% - 37.87%

New Jersey 28.70% 9.00% - 37.70%

Massachusetts 28.96% 8.25% - 37.21%

Pennsylvannia 26.61% 9.09% 6.45% 42.15% (38.66%)

Michigan 29.60% 6.05% 1.00% 36.65% (35.97%)


by Dany LaRochelle

2007 2008 2011 2012 2013 2014 2015 2016

16.50% 15.00%19.50%21.12%

11.90% 11.90%11.40%9.90%

28.40%26.90%

30.90%32.02%

◄ Canada

◄ Quebec

◄ TOTAL (Canada + Quebec)

2009

19.00%

11.90%

30.90% 29.90%

11.90%

18.00%

2010

And, Quebec taxes are still going on the way down…



by Dany LaRochelle

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

10% 10% 10% 10% 10% 10% 10%10%

Significant tax credits on the purchase of manufacturing equipment and machinery (refundable = subsidy)

The 10% rate applies to companies having a paid-in capital of less than $250 million. Otherwise, the rate stands between 5% and 10%. In some designated regions of Quebec, rates of 20%, 30% or 40% apply.



by Dany LaRochelle

State Corporation founded in 1998: a unique modelQuebec Governement Business Bank, in charge of:

State loans, guarantees, subsidies, financial and tax incentives, equity and quasi equity investment, foreign direct investment set-up assistance and incentive packaging.

+400 associates, assets : +$9 billion, guarantees : +$2 billion11 offices abroad : Paris, Atlanta, Beijing, Chicago, Londres, Munich

Los Angeles, Mumbai, New York, Stockholm, TokyoComprehensive and centralised services to accompany foreign industrial set-ups as well as a continuous subsidiary aftercare service, providing:

Project financing Financial and tax incentive packaging Possible capital financing A wide business network Intelligence on and introduction to local clients, partners and suppliers Market intelligence and comparative cost simulation Site selection Selection of the best service providers for banking, legal, accounting, real estate, norms, sanitary certification, construction, custom-made equipment, recruitment, relocation, and much more…

Head Office: 600, rue de la Gauchetière Ouest

Montréal

Invest Quebec : In a few words


by Dany LaRochelle

1998-2008 : A Ten-Year Overview

Financing operations >12 500

Financing (total) CAN$9.5 billion

Value of projects (total) CAN$48.2 billion

New jobs created 160,000

Yearly average 1,000 projectsCAN$1 billion16,000 new jobs

Cost/benefit ratio 1:3.41

New foreign direct invesment

433 projectsCAN$8.9 billion35,000 new jobs

CCM Montréal

Invest Quebec: A key financial partner


by Dany LaRochelle

2009-2010 : A record year

Financing operations 2,032

Financing (total) CAN$1.6 billion

Value of the projects (total) CAN$6.1 billion

New jobs created 14,967

Cost/benefit ratio 1:5,24

New foreign investment 80 projects$964 million2,712 new jobs

World Trade Center Montréal

Invest Quebec: A key financial partner


by Dany LaRochelle

Invest Quebec: Equity Partner for Growth

Sales / Penetration Rate

Risk Capital

Growth Capital IQ

Pre-Start-Up Start-Up Growth ExpansionMaturity/Consolidation

Time

TECHNOLOGICAL RISK

COMMERCIAL RISK

OPERATIONAL RISK


by Dany LaRochelle

Capital Investment

Reasonable return on equity

Debt

Mezzanine (with or without guarantee)

• Participative

• Convertible

Subordinated (with or without guarantee)

• No share of income

Senior (with or without guarantee)

Competitive interest rate in line with competition and risk marketHeadquarters:

600, rue de la Gauchetière Ouest Montréal

Invest Quebec: Equity Partner for Growth


by Dany LaRochelle

Investissement Québec : Capital de Croissance

IQ minimum participation Stocks Mezzanine debtSubordinated debtSenior debt

Maximum share 49 %

Investment horizon Stocks : 5 to 8 yearsDebt : 3 to 7 years

$5 M

$10 M$


by Dany LaRochelle

Contactez-nous : Bureau de Paris


by Dany LaRochelle

1.2 million km²$80 billion over 25 years20 000 jobs/yearPlan Nord Fund: $1,62 billionInvest Quebec: $500 million

Mining : $8 billion $ in 2011-2016Forest ResourcesEnergyNordic Biofood and BiopharmTourism

Infrastructure: Transportation, Telecoms

Le Plan Nord


by Dany LaRochelle

Contactez-nous

Dany LaRochelleDirecteurDéveloppement des Affaires - EuropeInvestissement Québec66, rue Pergolèse75116 ParisFRANCETéléphone : +33 1 40 67 85 24Portable : +33 6 11 18 31 86Facsimilé : +33 1 40 67 85 91E-mail : [email protected] : www.investquebec.com

Marchés couverts : France, Benelux, Italie, Espagne, Portugal

A presentation made at CEPYME Madrid, 29 November 2011

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