FACTBOOK - Paris EUROPLACE
Transcript of FACTBOOK - Paris EUROPLACE
FACTBOOKParis International Financial Center
June 4th, 2018
2
I. PARIS AT THE HEART OF EUROPE
• Europe’s No. 1 business region
• At the heart of Europe
• The highest GDP in Europe
• A market of 500 million European consumers
• Europe’s highest
concentration • of Fortune 500 corporation
Paris, the Largest European business hub
PARIS, THE ONLY « GLOBAL CITY » AT THE HEART OF EUROPE
Outstanding transport connections
• 3 international airports : 93 million passengers.
Paris-CDG : the 2nd busiest in Europe in terms of cargo traffic with 4 runways
• 7 TGV high-speed train stations : 19 million passengers
• 2nd European waterway platform, 3 ports along
the Seine – Paris, Rouen and Le Havre making up the 5th European port complex
• At less than 4 hours from the main European cities
• Paris-Brussels : 1h20
Paris-London : 2h15Paris-Amsterdam : 3h18
Paris-Frankfurt : 3h50
• Strategic geographical position at the
very heart of Europe - 200 million
people live within 48 hours of Paris byroad
Reach 500 Mio. Consumers within 3 hours thanks to…
PARIS, THE ONLY « GLOBAL CITY » AT THE HEART OF EUROPE
Successful services hub• 892,000 businesses in the Paris Region
• Paris region No.1 in Europe and No.3 worldwide for hosting the world’s Top 500 corporate headquarters (29)
• 13,000 foreign branches employing600,000 persons
Finance & Energy• La Défense: Europe’s leading
business district and is the 3rd largest office market in the world
• Société Générale, Total, GDF Suez, Areva, Allianz, KPMG, Technip, Axa, HSBC, EDF, IBM
Leisure & Tourism• Marne-la-Vallée: Growth based
on business and leisure tourism• EuroDisney, Pierre & VacancesBiotech & Healthcare
• Biotech Valley: Home to 35,000 students and 8,500 researchers
• Genopole, Pfizer, Sanofi, Inst. G. Roussy
Creative & Digital
Industries• Paris, Saint-Denis, Issy: Mix of
startups and digital powerhouses
• France Télévisions, Bouygues, Microsoft, Galeries Lafayette
Engineering, ICT, Mobility• Paris-Saclay: A world-renowned
center of scientific research• Danone, Thalès, Safran, Nokia, HP
European industrial cluster• 1st European region by number of
employees in the fields of aeronautics and pharmaceuticals, and 3rd in the electronic and optic components sector
• The 29th least expensive city worldwide to establish a factory (vs London 36th)
Paris, the European Tech Companies Leader
PARIS, THE ONLY « GLOBAL CITY » AT THE HEART OF EUROPE
• The Paris Region hosts a booming number of successful
startups thanks to our Innovation Clusters, a large numbersof Incubators, of VC’s and Open Data Programs
• Over 130,000 square meters of space for start-up
incubators have been created in recent years. By 2020,
an additional 100,000 square meters will be made
available, including the Station F - Halle Freyssinet, thelargest incubator in the world hosting 1,000 start-ups
• 1/3 of the start-ups exhibiting at the 2017 Las Vegas CESwere French, notably from Paris Region
• 1st region in Europe regarding the number of startups ofThe Technology Fast 500 EMEA
• France is 1st in Europe for tech investment in terms ofvolume and value of deals in Q3 2016
BlaBlaCar, a successful French start up has raised $160 Million from Insight, Valuing Ride
Paris Region, the #1 digital region in Europe
PARIS, THE ONLY « GLOBAL CITY » AT THE HEART OF EUROPE
• Paris came 7th in a recent European ranking of business costs, ahead of Berlin (8th), Frankfurt (9th) and London
(10th), according to KPMG’s comparative cost analysis in over 100 cities
• Competitive universities (Paris-Saclay, PSL, Paris-Sorbonne) and laboratories (Genopole, Nuclear Energy
Agency…)
• An unrivaled Research Tax Credit & local authorities supporting experimentations (up to 45% of experimentation
costs covered with a cap of 170k€)
0 500 1 000 1 500 2 000
P a r i s
L o n d o n
A m s te r da m
F r a n k f u r t
S t o c k h o lm
0,0 % 0,5 % 1,0 % 1,5 % 2,0 % 2,5 % 3,0 %
P a r i s
L o n d o n
A m s te r da m
F r a n k f u r t
S t o c k h o lm
0 200 400 600
P a r i s
L o n d o n
A m s te r da m
F r a n k f u r t
S t o c k h o lm
Part of the workforce
dedicated to R&D
R&D spending per
inhabitant (euros)
Number of patents per
100,000 habitants
Paris Region, the place to foster Innovation
PARIS, THE ONLY « GLOBAL CITY » AT THE HEART OF EUROPE
An unrivaled Research Tax Credit & Local Authorities supporting Experimentations
30% Tax Break Up to 45% ofof R&D expenses
up to €100 millionsExperimentation costs
covered with a cap of 170k€
Paris Region, the place to foster innovation
PARIS, THE ONLY « GLOBAL CITY » AT THE HEART OF EUROPE
Europe’s largest current urban renewal
project, the construction of the Grand
Paris Express metro• 200 km (130 miles) of new lines
• 68 new stations
• €28 billion of total investment in the project,
• with €23 billion exclusively for the Grand Paris Express
Other infrastructures investment• 100% fiber-optic broadband coverage by 2020
• Renovation of Paris North Station / Gare du Nord
• Express train (20 min) between Paris and CDG airport by 2023
Grand Paris, an exceptional development program
PARIS, THE ONLY « GLOBAL CITY » AT THE HEART OF EUROPE
Paris region No.1 in Europe and No.3 worldwide
for hosting the world’s Top 500 corporate headquarters
» 13,000 establishments
» 27% of foreign investment
» established in the country
» 600,000 jobs
Meet your clients in Paris Region
PARIS, THE ONLY « GLOBAL CITY » AT THE HEART OF EUROPE
11
II. PARIS FINANCIAL CENTER,
A BUSINESS FRIENDLY ENVIRONMENT
A BUSINESS FRIENDLY ENVIRONMENT
1. Attracting Financial Institutions and activities◆ Reducing the corporation tax from 33.33% currently to 28%.
◆ Establishing a one-stop administrative contact point for foreign firms seeking a foothold in
France.
2. Welcoming Foreign Executives and their Employees◆ Improving the impatriate tax regime through the lengthening of benefit from 5 to 8 years and the
exemption from payroll tax compensation paid to impatriates;
◆ Developing international secondary schools.
3. Enhancing infrastructures and international links◆ Rolling-out the Charles de Gaulle Express train.
◆ Accelerating the development of the Grand Paris Express, the Eole urban line and all of the
Grand Paris projects, while modernising the existing network.
4. Developing Fintechs and incubators◆ Support FINANCE INNOVATION, the Paris financial services cluster.
◆ Set up new incubators and growth accelerators dedicated to the financial sector.
◆ Support Paris EUROPLACE innovation promoting French fintechs abroad.
5. Intensifying international promotion of the Greater Paris and the Paris financial
marketplace◆ Task force to identify the needs of International financial players.
◆ Strategy featuring public bodies and private players to promote Paris.
Page 12
Brexit: Recent Measures taken by the French Government
Page 13
France UK Germany Ireland Luxembourg Netherlands
Income
tax
Source: OECD, PWC
Worldwide Tax
Summaries, Agefi.fr
1 The wealth tax designates periodic and non-periodic taxes on the use, ownership or transfer of assets. This includes taxes on real
estate assets and on net assets, taxes on transfers resulting from death, inheritance and donations, and taxes on securities ad real
estate transactions.
2. 2013 datas
Without
impatriate
scheme
With
impatriate
scheme
Effective
tax rate for
individuals
earning
€300k/year
Impatriate
scheme
(8 years)
For high earners, France offers the lowest effective tax rate
A BUSINESS FRIENDLY ENVIRONMENT
46%43%44%
38%40%
38%
24%
◆ Development support
accelerated for startups
◆ Innovation support
◆ Support for investment:
investment projects for
the future
◆ Reform of the markets
◆ of goods & services
◆ Reform of the labor
market
◆ Lower taxes
◆ & social charges
◆ Tax support for investors
◆ Tax4Business - Dedicated
tax regimes
◆ Welcome package for
foreign executives and
employees
◆ French Tech Ticket
◆ Specific education system
– international sections
An attractive locationA welcoming
environment for foreign
investors
With reforms to
support investment
◆ Highly developed
infrastructure
◆ Highly qualified workforce
◆ Lower business creation
◆ & operating costs
◆ A lot of investment
projects & opportunities
◆ An economy for startups
◆ & innovation
◆ Paris major financial
center
◆ A recognized quality of life
Page 14
A BUSINESS FRIENDLY ENVIRONMENT
France is one of the most attractive European Countries
15
Source: OECD
OECD Better Life Index 2017
France Germany Italy United Kingdom
Housing 6,9 7,1 5,4 6,4
Income 4,7 5,0 4,1 5,0
Jobs 6,8 8,2 5,3 8,0
Community 5,6 7,2 6,7 7,7
Education 5,8 7,5 4,5 6,2
Environment 6,0 7,2 3,8 6,8
Civic engagement 5,5 5,1 4,3 6,4
Health 7,9 7,3 7,7 7,8
Life satisfaction 5,9 7,9 4,1 6,9
Safety 8,2 8,8 7,0 9,0
Work-life balance 8,9 8,3 7,5 6,2
A BUSINESS FRIENDLY ENVIRONMENT
April 2018
Total wealth of households and long term savings in 2017
16
Total households wealth provides extensive investment opportunities
Source: Banque de France
STRONG FINANCIAL ASSETS FOR A LONG TERM
FINANCIAL MARKETS DEVELOPMENTS
Others saving products
(equity, bonds, saving
plans,…) ; 21%
Life insurance;
69%
Housing savings
scheme banks accounts ;
10%
Long term savings of households€2 780bn
Liquidity; 11%Contractual savings; 3%
Securities; 11%
Insurance; 15%
Real Estate; 60%
Total wealth of households€12 470bn
April 2018
French households’ outstanding financial wealth reaches 4473 billion euros in Q3 2017
17
Source: Banque de France
April 2018
23%
1%
26%
6%
44%
Structure of household outstanding investments(billion euros)
Currency and deposits
Debt securities
Equity
Investment Funds
Life insurance (saving accounts)
STRONG FINANCIAL ASSETS FOR A LONG TERM
FINANCIAL MARKETS DEVELOPMENTS
The low French households indebtedness rate provides a wide range of opportunities
18
Source : Banque de France
April 2018
0
10
20
30
40
50
60
70
80
90
100
UK Eurozone France Germany Italy
Household indebtedness rate(% of GDP, 2017Q3)
STRONG FINANCIAL ASSETS FOR A LONG TERM
FINANCIAL MARKETS DEVELOPMENTS
French households savings rate, ranked 2nd in Europe, ensures a large and stable funding
source
19
Source: Eurostat, Banque de France
Gross Households saving rate is defined as
gross savings divided by gross disposable
income.
FRENCH ECONOMY : STRONG ASSETS FOR A LONG TERM
FINANCIAL MARKETS DEVELOPMENTS
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Germany France Italy UE UK
Household saving rate(% of gross revenue, 2017Q1)
April 2018
2009 2010 2011 2015 2016
0,44
0,42
0,44
0,47
0,45
Foreign Investors: 47% of French Listed Companies
Source: AFT, Banque de France, dec.2015
Page 20
◆ 10 French companies of the CAC 40, on
a total of 35, have foreign majority
shareholders.
◆ The capital of the French companies of
the CAC 40 held by non resident
represents 44,5 % of their total capital.
◆ The net purchases of French actions of
the CAC 40 by non residents in 2016 in
the sector "oil, gases and materials"
represents 4.3 billion euros.
◆ The net sales of French actions of the
CAC 40 by non residents in 2016 in the
sector of the industries represent 3.7
billion euros.
In All, Paris is The Most Attractive Financial Center in Continental Europe
A BUSINESS FRIENDLY ENVIRONMENT FOR INTERNATIONAL
INVESTORS
◆ Paris is n°1 in Europe in terms of
◆ foreign banks and financial institutions
(500 established foreign banks and
financial institutions)
French government bonds held by
foreign investors, %
0
10
20
30
40
50
60
70
80
Q2 2
001
Q4 2
001
Q2 2
002
Q4 2
002
Q2 2
003
Q4 2
003
Q2 2
004
Q4 2
004
Q2 2
005
Q4 2
005
Q2 2
006
Q4 2
006
Q2 2
007
Q4 2
007
Q2 2
008
Q4 2
008
Q2 2
009
Q4 2
009
Q2 2
010
Q4 2
010
Q2 2
011
Q4 2
011
Q2 2
012
Q4 2
012
Q2 2
013
Q4 2
013
Q2 2
014
Q4 2
014
Q2 2
015
Q4 2
015
Q2 2
016
Q4 2
016
Q2 2
017
In All, Paris is The Most Attractive Financial Center in Continental Europe
55.5%
A BUSINESS FRIENDLY ENVIRONMENT FOR INTERNATIONAL
INVESTORS
22
III. PARIS, A HIGHLY EDUCATED
AND INNOVATIVE CITY
The French education system is very efficient and higly supported by public authorities
23
Source: Ministère de l’Enseignement Supérieur et de la Recherche
/ Finance Innovation
University2016 - 2017
Bachelor's degree 994 000
Masters degree 571 000
Doctorate 58 300
Total 1 623 500
French financial
degree :
- 222 Master
degrees
- 23 Doctoral
schools
Public Budget 2018 : 13,4
billion euros for higher
education
2,7 billion euros for student life
A TALENT DRIVEN ECONOMY
April 2018
2 French Business Schools in the European Top 5
24
Source : FT European Business Schools ranking
A TALENT DRIVEN ECONOMY
Rank 2017 Business School Country
1 London Business School UK
2 HEC Paris France
3 IE Business School Spain
4 University of St Gallen Switzerland
5 Insead France
6 SDA Bocconi Italy
7 Iese Business School Spain
8 Esade Business School Spain
9 Rotterdam School of Management, Erasmus University Netherlands
10 IMD Switzerland
April 2018
In 2014, 29 billion euros for higher education, multiplied by 2.6 since 1980
25Source: Ministère de l’Enseignement Supérieur et de la Recherche
Domestic education expenditure accounts for expenditure on the national
territory, by all economic agents, central and local administrations, corporates
and households, for education activities.
0
5
10
15
20
25
30
2008 2009 2010 2011 2012 2013 2014
Domestic education expenditure in higher education
(billions euros)
A TALENT DRIVEN ECONOMY
April 2018
France benefits from the highest level of qualification in Europe.
26
Source: Eurostat
A TALENT DRIVEN ECONOMY
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
45,0
50,0
55,0
France Germany Italy United Kingdom EU
Population (25 to 34 years old) with a higher education level(%, 2017)
April 2018
French research is worldwide recognized
27
Source: International Mathematical Union (IMU)
1413
9
6
32
1 1 1 1 1 1 1 1 1 1 1 1 1 1
0
2
4
6
8
10
12
14
16
Field medals by countries
A TALENT DRIVEN ECONOMY
April 2018
France plays a leading role in innovation and research.
28
Source: Ministère de l’Enseignement Supérieur et de la
Recherche / OMPI / Eurostat
277 000 researchers in
France in 2015
50,1 billion euros of total
domestic expenditures in
R&D in 2016
64% for corporates
8,3 billion euros of public
expenditures for R&D in
2013 (forecast)
- 2nd world rank for Fields
Medals
- 4th world rank for Nobel
prizes in science
A TALENT DRIVEN ECONOMY
April 2018
France strengthens its efforts in applied research and development.
29
Source: INPI
A TALENT DRIVEN ECONOMY
April 2018
0
5
10
15
20
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
thousands
Intellectual property Number of patent deposits
Patents by SMEs
A wide range of professionals and specialized service providers
A STRONG POOL OF FINANCIAL SKILLS
18%
2%
11%
58%
6%5%
Breakdown of third-party AM playersSource : AFG
Direct staff
Internalproviders
Externalproviders
Distribution/Sales
Custody/Auditors
Brokers
85 000
8%
33%
12%4%7%
13%
23%
Direct employement by main functions in Manco'sSource : AFG Management -
Corporate finance
Front office
Middle office -Reporting
Back office
Compliance - Audit
Sales - Marketing
IT - HR - Other
15%
26%
60%
Inf. High school + 2 years High school between 2 and 4years
Over Master degree
Education level of Manco's direct employed staffSource: AFG
29% 28%30%
13%
Inf. 5 years Between 5 and 9years
Between 10 and 19years
Over 20 years
Cumulated experience of portfolio managersSource: AFG
A high level degree of educated and skilled people
A STRONG POOL OF FINANCIAL SKILLS
Financial sector provides a significant contribution of nearly €90bn to the total value added in France
32Source: INSEE
THE IMPORTANCE OF FINANCIAL SERVICES
INDUSTRY FOR THE FRENCH ECONOMY
Value added by activityFocus on mainly market services
(2016)
Trade
Information and communication
Financial and insuranceactivities
Real estate activities
Science and technology
Other services
April 2018
Finance industry provides more than 1 million jobs
33Source: Paris Europlace
Direct employment in finance industry
Finance
Banking 483 680
Investment banks 48 250
Insurance 160 000
Financial auxiliaries 160 000
Asset Management 15 000
Private equity 3 000
Support
Lawyers, IT specialists, consultants 203 000
Total (financial sector employment in France) 1 022 680
THE IMPORTANCE OF FINANCIAL SERVICES
INDUSTRY FOR THE FRENCH ECONOMY
Financial services employment in the major European financial centers
34Source: OECD / Eurostat
THE IMPORTANCE OF FINANCIAL SERVICES
INDUSTRY FOR THE FRENCH ECONOMY
150
65
48,5 4838
Paris FRANKFURT AMSTERDAM LUXEMBOURG DUBLIN
35
IV. VIBRANT FINANCIAL CITY
The Paris Financial Market Place Business is driven by some decisive assets
36
The presence of large French and multinational corporations: ✓ Paris, the 1st business center in Europe, with the presence of large international companies.
✓ Paris, in the 3rd worldwide position in terms of presence of international corporates.
A Vibrant capital markets✓ Deep and sound equity Markets : €2500 bn market capitalization, €2600 bn value of equity trading.
✓ Best Access to the Euro-denominated debt market :
➢European leader for commercial paper (€520 bn)
➢A Liquid Government Securities Market (€1500 bn)
➢Paris is the leading euro-denominated corporate bond market, with nearly 30% of European
issues and over 40% of outstanding.
➢Paris is also the European leader in the high-yield market, with 20% of issues.
✓ A growing project financing contributor : France recorded 5300 deals, compared to 1800 for UK and
600 for Germany (2010-2012) .
A Strong Investors Pool: ✓More than €3000 bn of assets under management.
✓ Second largest Investment funds industry in the world, with €1500 bn of assets.
✓ A European leader in Fintech and Digital economy financing.
The Paris Financial Market Place Business is driven by some decisive assets
37
Four French banks in the top 20 within the Eurozone. ✓Equity derivatives (26% market share in Europe).
✓Structured financing (25% market share in Europe).
✓Asset management (four French firms among the top 20 management leaders
worldwide).
✓Post-trading services (three French firms among the top 10 world leaders in custody
services).
France boasts the n°1 insurance market in the EU
A worldwide recognized regulation, based on regular dialog between
professionals and regulators.
Lastly, the Paris Financial Market is fully open to global investors, ✓More than 45% of the CAC 40.
✓Paris is the second largest center in Europe when it comes to welcoming foreign banks.
Source: Fortune Global 500, 2016
Page 38
SECTOR COMPANY
AEROSPATIAL & DEFENCE AirBus
APPAREL Christian Dior
FINANCIALS AXA / BNP Paribas / Crédit Agricole
/ Société Générale / Groupe BPCE / CNP
Assurances
CHEMICALS Air Liquide
ENGINEERING & CONSTRUCTIONS Vinci / Bouygues
ENERGY EDF / ENGIE / Veolia / Total
MATERIALS Saint Gobain
HOUSEHOLDS PRODUCTS L’Oreal
FOOD & DRUG STORE Carrefour / Finatis / Groupe Auchan
FOOD, BEVERAGES & TOBACCO Danone
TELECOMMUNICATIONS Orange
TRANSPORTATION La Poste / SNCF / Air-France
MOTORS VEHICLES AND PARTS Renault, Peugeot
TECHNOLOGY Schneider Electric
HEALTH CARE Sanofi
REAL ESTATE INVESTMENTS TRUSTS Unibail-Rodamco
◆ 31 French Companies are Among 500 World Leaders in their respective Industries, compared to 29 for Germany and 24 for Britain.
Paris, the 1st business center in Europe, with the presence of large international companies
Sources: see Annex Page 39
The overall index elaborated
by Paris EUROPLACE ranks
the Continental Europe main
Financial Centers according
to various sub-indexes
between 0 and 1. An index
close to zero for a financial
center represents a low
attractiveness of the
considered dimension. A
high index indicates a
favorable position.
Indicators confirm the pole
position of the Paris financial
center as a complete and
diversified European financial
center, offering a wide range
of financial services in all
banking & financial markets :
- Equity markets,
- Euro-denominated bond
markets,
- Derivatives markets,
- Asset management and
private equity,
- Banking activities,
- Green finance center,
- Digital finance and
FinTechs.
European Financial Centers Index : Paris, n°1 in the Eurozone and n°1 in Europe
PARIS FRANKFURT AMSTERDAM MADRID BRUSSELS LUXEMBOURG DUBLIN
RANKS 1 2 3 4 5 6 7
INDEX 0,84 0,58 0,25 0,21 0,13 0,08 0,05
1. EQUITY MARKETS 0,75 0,38 0,09 0,48 0,05 0,36 0,05
Equity market capitalisation (USD, dec 2017) 1,00 0,64 0,13 0,25 0,06 0,02 0,04
Number of listed companies (dec 2017) 0,32 0,16 0,04 1,00 0,02 0,05 0,02
Share of foreign listed companies (déc 2017) 0,93 0,35 0,11 0,19 0,06 1,00 0,08
2. BOND MARKETS 0,98 0,69 0,44 0,34 0,15 0,20 0,16
Financial issues (USD, outstanding 3Q2017) 0,94 0,91 1,00 0,45 0,13 0,56 0,40
Non financial issues (USD, stock 3Q2017) 1,00 0,30 0,13 0,06 0,10 0,04 0,02
Government (USD, stock 3Q2017) 1,00 0,85 0,17 0,51 0,21 0,00 0,07
3. COMMODITIES MARKETS 0,67 0,17 0,67 0,00 0,67 0,00 0,00
Number of contracts traded (Mn of contracts, 2017) 1,00 0,10 1,00 0,00 1,00 0,00 0,00
Value of contracts traded (Mn USD, 2017) 1,00 0,40 1,00 0,00 1,00 0,00 0,00
4. OTC INTEREST RATE AND FOREX MARKETS 1,00 0,43 0,31 0,11 0,00 0,10 0,00
Trading on Forex derivative markets (USD, 2016) 1,00 0,64 0,47 0,18 0,00 0,20 0,00
Trading on interest rate derivatve markets (USD, 2016) 1,00 0,22 0,16 0,04 0,00 0,00 0,00
5. REGULATED DERIVATIVES MARKETS 0,16 1,00 0,16 0,07 0,16 0,00 0,00
Stock Options and Futures (number of contracts, USD, 2017) 0,26 1,00 0,26 0,12 0,26 0,00 0,00
Stock Index Options and Futrues (number of contracts, USD, 2017) 0,07 1,00 0,07 0,02 0,07 0,00 0,00
6. BANKING ACTIVITY 0,99 0,60 0,21 0,36 0,07 0,05 0,03
Number of banks on the Continental Europe Top 10 1,00 0,20 0,20 0,40 0,00 0,00 0,00
balance sheet size of financial and monetary institutions (Tr, EUR, mars
2017) 1,00 0,22 0,13 0,32 0,00 0,00 0,00
Resident Deposits (€bn, 2017) 0,96 1,00 0,25 0,39 0,14 0,09 0,06
Loans to households and resident companies (€bn, 2017) 1,00 0,99 0,28 0,34 0,12 0,09 0,06
7. INSURANCE PREMIUM (EUR, 2016) 1,00 0,68 0,10 0,23 0,11 0,01 0,07
8. PRIVATE EQUITY ACTIVITY 1,00 0,53 0,14 0,07 0,03 0,01 0,01
Invested amounts ( in € bn, 2017) 1,00 0,42 0,12 0,07 0,00 0,00 0,00
Nunber of SMEs funded (2017) 1,00 0,63 0,17 0,06 0,05 0,01 0,03
9. ASSETS UNDER MANAGEMENT ACTIVITY (EUR, 2015) 1,00 0,50 0,33 0,07 0,05 0,03 0,02
10. JOBS IN FINANCIAL AND INSURANCE SECTOR (Main City) 1,00 0,42 0,19 0,14 0,08 0,17 0,08
11. SIZE AND DYNAMISM OF THE ECONOMY 0,70 1,00 0,23 0,36 0,14 0,04 0,11
GDP per capita (PPA) (€, 2017) 0,39 0,46 0,48 0,33 0,44 1,00 0,66
GDP (€bn, 2017) 0,70 1,00 0,22 0,36 0,13 0,02 0,09
GDP average growth (2010-2017) 0,19 0,32 0,20 0,11 0,21 0,49 1,00
12. RESEARCH AND TRAINING 0,89 0,53 0,14 0,30 0,02 0,00 0,10
R&D spending 0,66 1,00 0,16 0,16 0,05 0,01 0,05
Number of Field medals 1,00 0,10 0,00 0,00 0,00 0,00 0,00
Number of MBA on the Global Top 100 FT ranking (2016) 1,00 0,50 0,25 0,75 0,00 0,00 0,25
VIBRANT CAPITAL MARKETS THE EUROZONE EQUITY LARGEST STOCK MARKET
Total Market Capitalisation€8,5 billion of total market capitalisation
EUROPE STOCK MARKETS
Others; 6%
Deutsche Börse; 23%
Nasdaq OMX; 16%
BME Spanish;
9% EURONEXT
46%
MARKET
CAPITALISATION(€bn, dec. 2016)
Others; 3%
Deutsche Börse; 29%
Nasdaq OMX; 16%
BME Spanish;
15%EURONEXT
38%
EQUITY TRADING(€bn, dec. 2016)
Source: WFSE, dec. 2017
Page 40
◆ Paris is an access to the largest Eurozone stock exchange, in terms of market capitalization, equity trading, and number of listedcompanies.
Deep and sound equity Markets : €3600 bn market capitalization, €2600 bn value of equity trading
France; 45%
Germany; 14%
Italy; 10%
Netherlands; 6% Others; 25%
France in 3nd position worldwide for International Corporate bonds issuance
France Leads EuropeanInternational Corporate Bond Markets
(% total outstanding)
Source: BIS and AFME, 3Q17
Source: BIS, 3Q16
Countries Amount Outstanding
($, bn)
United State 6 088
China 2 755
France 724
Japan 723
United Kingdom 526
Others 2 455
TOTAL 13 271
Page 41
◆ With a 45% market share,
◆ Paris ranks 1st in Continental Europe in
corporate bonds.
Paris, the Largest Euro-denominated Bond Markets in Europe
42
Source: Banque de France
Bonds play a major role in the financing of NFCs in France
-10
0
10
20
30
40
50
60
AT BE DE FI FR IT LU NL PT
NFC bonds net flows (bn €)
2012
2013
2014
2015
2016
2017
April 2018
Page 43
◆ The Paris OTC derivative market
is growing rapidly supported by the
global strength of the French banks.
France Germany Netherlands Luxembourg SPAIN
181
116
85
37 33
F r a n c e G e r m a n y N e t h e r l a n d s S p a i n L u x e m b o u r g
141
3122
60
OTC Forex Market Turnover (in €bn/day)
OTC Interest rate Market Turnover (in €bn/day)
FRANCE
FRANCE
Paris ranks 1st in Continental Europe for forex and interest rate derivatives and 3rd in the world
Five French Banks in Continental Europe Top 10 Largest Banks
◆ 5 French banks in Continental Europe top 10 banks representing a total assets of €6.3tn.
Source: Balancesheet, end 2017
THE BANKING INDUSTRY
Rank Bank Country Total Assets (€billions)
1 BNP Paribas France 1,960
2 Crédit Agricole France 1,550
3 Deutsche Bank Germany 1,475
4 Banco Santander SA Spain 1,444
5 Société Générale France 1,275
6 Groupe BPCE France 1,259
7 ING Groep NV Netherlands 846
8 Unicredit SpA Italy 836
9 Banco Bilbao Vizcaya Argntina SA Spain 690
10 Crédit Mutuel Group France 710
Page 44
Paris is the European largest banking center in Europe
45
Loan flows to non-financial corporations (million euros)
Source : Banque de France
Bank financing to corporates is one of the most dynamic among European major countries
April 2018
-30000
-20000
-10000
0
10000
20000
30000
France Germany Italy United Kingdom
585 670 748 923
1025
1114
1185
1125
1277
1403
1381
1516
1577
1822
1904
1971
2066888
10161050
1164
1329
1544
1594
1384
1523
1514
1387
1509
1543
1599
1689
1799
1929
1473
16861798
2087
2354
26582779
2509
28002917
2768
3025
31203421
3593 3770 3995
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
French domiciled funds
Mandates (inc. Foreign funds)
Source: EFAMA/ AFG/ CSSF, end 2015
France Asset Management Industry (€ billion)
◆ The Paris asset management industry
is based on decisive assets, with
more 630 asset management companies,
among them 4 asset managers are in the
top 25 global ranking and 3 global
custodians in the top 10 global ranking
France ; 27%
Germany; 15%
Italy; 8%
Netherlands; 9%
Switzerland; 11%
Others; 30%
Source: EFAMA/ AFG/ CSSF, end 2015
France in the European Asset Management Industry
€15,000 bn of asset under management in Europe
ASSET MANAGEMENT INDUSTRY
Paris, the largest asset management pool in Europe
A WELL-DIVERSIFIED SUPPLY OF INVESTMENT FUNDS
Paris, the largest asset management pool in Europe
Equity
18,4%
Balanced
18,1%
Formula-
based 1,3%
Bonds
14,6%
Money
Market
17,8%
Alternative
0,4%
Real Estate
7,2%
Venture
Capital
3,5%
Employee
saving
schemes
6,8%
Securitizatio
n Vehicles
11,9%
French domicilied funds(1,929 €bn at end 2017)
United Kingdom
36%
France 18%
Germany9%
Switzerland7%
Netherlands6%
Italy5%Others
19%
Market share in the European asset management industry
€21,500 billion at end December 2015 (Source : EFAMA)
FRANCE, A PLACE WITH COMPETITIVE GLOBAL PLAYERS
Nationality of the headquarterNumber of
companies
France 4
United Kingdom 2
Germany 2
Switzerland 1
Netherlands 1
Nationalities of the 10 largest European
asset managment companies
Source: Willis Towers Watson - at end 2015
Paris, the largest asset management pool in Europe
TOTAL
FranceEuro-zone (excl.
France)
OECD (excl.
Euro zone)
Rest of the
world %
Securities 41% 41% 17% 2% 100%
Source: Banque de France and AFG estimates * Not including cash, structured products, derivatives…
Breakdown of securities* held by asset managers in France (mandates and funds)
(At end December 2015)
Bonds, Monetary
instruments, equities
Géographical origins of the issuer
French AM, an essential funding source for French and Euro-zone economies
TOTAL
States and
Public sector
Financial
institutions Corporates Other %
Securities 34% 30% 34% 2% 100%
Source : Banque de France and AFG estimates * Not including cash, structured products, derivatives…
Assets managers' portfolios: securities* allocation by category of issuer
(At end December 2015)
Bonds, Monetary
instruments, equities
Category of issuers
SUEDE
CHINE
BRESIL
USA
$ 2.5$ 2.6
$ 7.5
$ 2.7
$ 13.2
HIGHLIGHTS OF THE PARIS GREEN & SUSTAINABLE FINANCE INITIATIVE REPORT
FRANCE,A PIONEER IN THE GREEN BONDSINTERNATIONAL MARKET
1.9$ BN
13.2$ BN
2013
2017
x7
TOP 5 COUNTRIES ISSUERS OF GREEN, SOCIAL & SUTAINABILITY BONDSOn 1st June 2017 in billions of US dollars Source: Bloomberg
EVOLUTION OF THE FRENCH MARKET OFGREEN, SOCIAL & SUSTAINABILITY BONDSSource: Bloomberg
France:
€148 bn invested byFrance Investmembers in 1 600companies everyyear on average forthe last 20 years
France:
4.000 private equity professionals
€150 bn under management (end 2017)
France:
€14.3 bn invested in 2017
Europe:
€730 bn invested by InvestEurope members in morethan 5 500 companies everyyear on average since 2000
€53,4 bn invested in 2016
United Kingdom:
€15.2 bn invested in 2016
Germany:
€5.1 bn invested in 2016
PRIVATE EQUITY
The French private equity, a leading industry in Europe
Sources: France Invest, Invest Europe
* Data available for 2016
PRIVATE EQUITY
The French private equity, a leading industry in Europe
Sources: France Invest, Invest Europe, NVCA, AIC
Number of private equity-backed companies (2017)
Europe* France Germany* United Kingdom*
6 164
2 142
1 103577
PRIVATE EQUITY
The French private equity industry mostly finances growth projects
Sources: France Invest, Grant Thornton
Venture Growth Buy-out Turnaround
39%
44%
16%
1%
Weight of number of companies invested by segment (2017)
PRIVATE EQUITY
The French private equity industry shows a strong overall performance
Sources: France Invest, Grant Thornton
Amount invested (€ bn)
201720162012 2013 2014 2015
Number of private equity-backed companies
€14,3 bn 2 142
€6,1 bn €6,5 bn
€8,7 bn
€10,7 bn
€12,4 bn
1 548 1 5601 648 1 645
1 893
201720162012 2013 2014 2015
As they prove profitable, banks and insurance companies play a key role for corporates’
financing
55Source: Banque de France, FFA
French Insurance Market(Premiums, in € billion)
120135 131
73
75 76
2015 2016 2017Non Life Insurance
Life Insurance
193207
210
INSURANCE MARKET
56
French insurance companies benefits are moving steadily upwards
Source : FFA
120108 106 112 118 124
14
15 1516
1718
35
36 3737
4039
2012 2013 2014 2015 2016 2017
Life Insurance Accident and health insurance Property and casuality insurance
INSURANCE MARKET
59% of French insurers investments are dedicated to Euro area corporates
57
Source : FFA - GEMA
Insurers long term corporate financing(2017)
A MAJOR ROLE OF THE FRENCH INSURANCE COMPANIES
€2 433 bnInvested in the
French economy
in 2017
61% Corporate
Assets
4%Real Estate
18%Equities
39%Bonds
€1 437 bn
€70 bnIn SME’s
+€33 bnIn corporate
assets compared
to 2016
The trend of insurance investments in French corporates is steadily upwards
58Source: FFA
€ 1 363 bnInvested in
companies
+€14bn/ 2016
A MAJOR ROLE OF THE FRENCH INSURANCE COMPANIES
44%
56% 61%
30%
3%6%
Corporate assets
State's Bonds
Money MarketOther
Foreign
French
Source: FFA
Insurance companies investments in the French economy in 2016
1 676
bn€Of outstanding
life insurance
+3%
633Bn€
others
(damage provisions,
shareholders equity &
Valuation of assets)
2 433
bn€Of insurers
investments
+6%
59
A MAJOR ROLE OF THE FRENCH INSURANCE COMPANIES
60
Insurance MarketTurnover, in € billion
French insurance leads the EU
INSURANCE MARKET
European reinsurance playersTurnover, in € billion
61
FRENCH INSURANCE STRONGLY INTERNATIONALIZED
Turnover realized in 2016 : €115 bn wich represents 31% of the total turnover
17%North America
6%Latine America
2%Africa and Middle East
50%In EU
(except France) 12%Europe (except EU) 13%
Asia
Turnover distribution in Europe
1. Italy €18.4 bn
2. Germany €12.3 bn3. United Kingdom €6.5 bn
Source : FFA (decembre 2017)
The quality of French supervision ensures a safe environment
62Source: Banque de France
European
Securities and
Markets Authority
(ESMA) Paris
Banque de France (BDF) /
Prudential Supervision and
Resolution Authority (ACPR)
OPEN AND SECURED MARKETS
European
Banking
Authority
(EBA) Paris
Financial Markets
Authority (AMF)
Single
Supervisory
Mechanism
(SSM)
◆ Against the backdrop of the Single
Supervisory Mechanism and the European
System of Financial Supervision, the
quality of French supervision ensures a
safe environment
Eurosystem payment system Target2 ensures safety and efficiency
63
Banks
Ancillary system
cash transfersettlement
Source: Banque de France
OPEN AND SECURED MARKETS
64
A EUROPEAN LEADER IN FINTECH AND DIGITAL ECONOMY
FINANCING
Page 64 SOURCE: Fintech working
group
Access to
talent pool
MarketAccess to
capital
FinTech
firms
Regulation and
infrastructures
• Paris boasts excellent expertise (44% of 25-34 years old were university-educated in 2013 vs.
30% in Germany)
• Paris hosts a dynamic ecosystem (the largest incubator in the world is set to open in La Halle
Freyssinet in 2017, with over 1,000 start-ups)
• Market demand and depth:
– Use of French online
banking services in
2014 (58%) is higher
than in Germany (49%)
and equivalent to the
UK (57%)
– Some Fintechs have
already demonstrated
the appeal of the French
market (e.g. Younited
Credit)
• Regulatory environment and infrastructures:
– The AMF's AGiLITY program provides bilingual coaches and a two-week ticket for companies already approved outside
France
– Approval to operate in Paris is a major growth driver for Fintechs in the EU, as demonstrated by Younited Credit
– France offers a highly innovation-supportive environment (e.g. the Research Tax Credit, a 30% tax deduction on R&D
expenses)
– Paris offices are, on average, twice as cheap as in London, with double the space
• Access to capital :
– Investments in Fintechs
experienced strong
growth between 2014
and 2015 (+ 102%), led
by the top 10 French VC
funds
– Moreover, the presence
of strategic buyers offer
output options to
Fintechs based in
France (e.g., Arkea,
Banque Populaire)
Paris, the European Leader in High-Tech and Fintech Startups
65
Paris offers a Dynamic FinTech ecosystem
A EUROPEAN LEADER IN FINTECH AND DIGITAL ECONOMY
FINANCING
66
PARIS FINANCIAL CENTER HIGH TECH FINANCING ORIENTED
32
15
4 3 3 2 1 1 1 1
0
5
10
15
20
25
30
35
Fund raised in millions by French Tech companies
French Tech start up financing
67
V. STRONG AND RESILIENT ECONOMY
France is the 2nd largest economy within the Eurozone
68
Source: Eurostat
FRANCE A STRONG AND RESILIENT ECONOMY
France Euro zone
Population (2017) 67,1 million 341,0 million
Inflation rate
(2017)
+1,2 % +1,5 %
Gross Domestic
Product
(2017 billion euros)
2 287,6 11 165,5
GDP per capita
(2017, euros)
34 100 32 700
Number of
corporates (2015)
3 492 052 18 463 349
Fertility rate (2016) 1,92 1,58
R&D expenditures
(% of GDP, 2016)
2,2 % 2,1 %
FDI
(% of GDP, 2015)
1,6% 3,0 %
April 2018
Labour productivity in France is increasing and is the highest among major European
countries.
69
Source: OECD, Eurostat, Insee
FRANCE A STRONG AND RESILIENT ECONOMY
0
10
20
30
40
50
60
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Gross Domestic Product / Total hours worked
France Germany Italy United Kingdom
April 2018
French Economy is attractive for FDI in Europe
70
Source: OECD
FRANCE A STRONG AND RESILIENT ECONOMY
April 2018
0
10 000
20 000
30 000
40 000
50 000
2012 2013 2014 2015 2016 2017
Foreign direct investment in France(billions euros)
Source: Banque de France
Inward Foreign Direct Investment (FDI) flows divided by gross domestic
product (GDP)
0
1
2
3
4
5
6
7
8
France Germany ItalyUnited Kingdom EU
Foreign direct investment intensity(2015-2016 Mean, % of GDP)
Attractive Energy prices for corporates, thanks to a good production control and an effective distribution network
71
Source: Eurostat
Price of energy(all taxes included)
FRANCE A STRONG AND RESILIENT ECONOMY
0,00
0,05
0,10
0,15
0,20
0,25
Electricity(euros/Kwh)
France Germany
Italy United Kingdom
EU
0
4
8
12
16
20
Gas(euros / gigajoule)
France Germany
Italy United Kingdom
EU
April 2018
Information technology has grown considerably for the last few years in France
72
Source : OECD
OECD Fixed (wired) broadband subscriptions per 100 inhabitants, by technology, June 2017
FRANCE A STRONG AND RESILIENT ECONOMY
0
10
20
30
40
50
France Germany United Kingdom Italy
Total
0
10
20
30
40
France Germany United Kingdom
Italy
DSL
0
1
2
3
4
5
France Germany United Kingdom
Italy
Fibre
0
2
4
6
8
10
France Germany United Kingdom
Italy
Cable
April 2018
www.paris-europlace.com
@ europlace
Paris EUROPLACE