INVEST TO SUCCEED. INVEST TORONTO.

Economic Development Committee Update

January 26,2012

Agenda

•Shareholder Direction and Mandate

•Clients and Outcomes

•Thinking About Return

•November China Investment Mission

City of Toronto Shareholder Direction

Overview of the Corporation

As a corporation (but not an agent) of the city the activities of Invest are dictated by

a shareholder direction from the city. This document specifically lists the activities

of the corporation and directs the board to ensure Invest is carrying out these

activities.

•designing and carrying out marketing and investment activities,

including but not limited to branding and advertising for business

investment;

•coordinating initiatives with other public sector agencies and

businesses;

•organizing and participating in strategic trade missions in accordance

with strategies developed cooperatively with the City;

•providing marketing advice to Build Toronto, and when appropriate

•referring investors to Build Toronto, the City, or other relevant City

agencies, boards, commissions and corporations.

Board Direction

Strategic Planning Committee The SPC put together a set of guidelines to direct management’s activities. Below is the set of statements that guides our work:

•Invest Toronto’s overarching goal is to enhance the economic competitiveness of Toronto. Our

mission statement, as defined by the Strategic Planning Committee, is to:

•Win business investment into Toronto and securing corporation expansions and re-locations by

driving the marketing and positioning of Toronto in global corporate investment markets and selling

the benefits of a Toronto location;

•Foster effective business and institutional partnerships within Toronto, to enhance the success of

businesses, sectors, and investors that are present in our city;

•Provide decision-makers with intelligence and expertise on Toronto's global opportunities, sectors,

and niches, and coordinating the positioning of Toronto for the long term;

•Identify opportunities to advance Toronto’s presence in associated global markets and leading local

teams to pursue and secure opportunities; and

•Improve the local and regional effectiveness of global economic promotion of Toronto through building a shared ‘Toronto Story and Toronto Reputation’, and through efficient co-ordination and

collaboration.

INVEST TORONTO SERVICES

Invest Toronto is the City of Toronto’s arms length sales and marketing

corporation that presents the global business opportunities found in Toronto. As

the company responsible for attracting inbound foreign direct investment into the

City of Toronto, we offer one-on-one consultations to organizations and site

selectors making global business investment decisions.

Our Services:

• Complimentary concierge service for businesses

• Answer all questions and enquires on investment in Toronto

• Facilitate interactions with sector experts and all three levels of government

• Provide guidance on site location and selection

• Facilitate business-to-business linkages

• Provide industry and economic benchmarking analysis

• Connect clients to qualified professional service individuals

Invest Toronto Organizational Chart

President & CEO Renato Discenza

Chief Financial Officer

Winston Young

Shared CFO

Vice President

Sales & Marketing

Vacant

Executive Vice President

Operations

Terrie O’Leary

Director

Investment Services

Zvi Lifshiz

Investment Services

Kevin Samra

Investment Services

Eldad Gerb

Investment Services Vacant

Global Markets & Investment Services

Faraz Tareen

Office Manager

Melec Abdulazis

Senior Client Exec

Vacant

Vice President

Public Affairs Nikki Holland

Communications / Marketing Manager

Vacant

Global Markets & Operations

Frances Forrester

E-Business Analyst

Ronnie Sanders

Design & Website Coordinator

Vacant

Executive Assistant

President & CEO

Silvia Pellitteri

The Toronto value proposition is refined through a formal sales cycle

Value

Time,

Information &

Effort per

Client

Marketing

Toronto

Globally

• Outbound Trips

• Web / Social

Media / Mobile

• Ambassador

Program

Relationship

Development

• Client meetings

• CRM Tracking

• Initial Back

round research

• GTMA, MEDT ,

DFAIT & partner

leads

Research &

Analysis

• Financials

• Labour

Requirements

• Real Estate

• Market demand

Partners

• Legal

• Accounting

• Human

Resources

• Permits

• City, Province,

Feds and

partner

agencies

Prospect Qualify Propose Close

7

Since February 2010: 398 Clients

9

Time,

Information &

Effort per

Client

Marketing

Toronto Globally

• Outbound Trips

• Web / Social

Media / Mobile

• Ambassador

Program

Relationship

Development

• Client meetings

• CRM Tracking

• Initial Back

round research

• GTMA, MEDT ,

DFAIT & partner

leads

Research &

Analysis

• Financials

• Labour

Requirements

• Real Estate

• Market demand

Partners

• Legal

• Accounting

• Human

Resources

• Permits

• City, Province,

Feds and

partner

agencies

Prospect Qualify Propose Close

46 103 46 21 won

21 lost 161 Not qualified

21 won

opportunities

represent a

range of

549 to1221

positions

How Invest is Selling Toronto Abroad: To YE 2011

• Over 250 direct, senior level B2B meetings at

company HQ. These are proactive outreach and

does not include leads that come in through other

channels

• As part of our overall strategy we have and will continue to conduct

targeted B2B meetings in overseas markets. These meetings allow

Invest Toronto to engage directly with foreign companies who are

interested in opening or expanding their business into North America.

Invest also meets with local influential business organizations as well as

the Canadian federal and provincial representatives in markets to

establish positive working relationships for future investment

opportunities in Toronto.

• Each trip is preceded by months of lead preparation to ensure success.

Invest Toronto staff members meet with the Federal and Provincial

officials in Toronto to discuss the best time and location and opportunities

for international travel, they communicate with the OIMC and DFAIT

offices abroad to ensure that coordination of opportunities and potential

meetings are leveraged and they open dialogue with key Toronto

business stakeholders to gain insightful information and contacts.

B2B Meetings

49 India

34 Israel

18 Germany

16 Brazil

19 France

12 UK

12 Chile

5 Spain

5 UAE

12 Italy

68 China

Distribution

of

Clients

Logistics 1%

Conglomerate 2%

Retail 2%

Engineering 2% Fashion & Design

3%

Energy 4%

Food and Beverage

4%

RE & Construction

5%

Other 5%

Entertainment & Hospitality

5%

Business Services

6%

Life Sciences 7%

Financial Services

8%

Manufacturing 15%

Green Energy & Clean-Tech

15%

ICT 18%

Country of Origin for Investors

Thinking About Return: Direct Impact of Jobs

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

GD

P f

rom

Sa

lary

Annual GDP Growth

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Avg Annual Comp

Year Employees Added

1 100

2 200

3 300

4 400

5 500

6 500

7 500

8 500

9 500

10 500

Thinking About Return: Facilities

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

1 2 3 4 5 6 7 8 9 10

Incre

men

tal A

nn

ual

Tax in

$

Year

Direct Property Tax for Jobs Added From previous Scenario

Thinking About Return

Quantitative Qualitative

Primary

Secondary

Tax Assessment

GDP from Payroll

GDP Spend from Corporate Spend

(non-Payroll)

Growth of existing Businesses

Retention Enhancement from

“Global Brand”

Brand Premium for Opportunities

Citizen Satisfaction

Corporate Satisfaction

Becoming part of

Global Supply Chain

China: An Important Market for Toronto:

Over half a Trillion dollars looking for a home

China Investment Mission Nov 2011

•39 B2B meetings (distribution see chart)

•5 Government

meetings (not included in

chart)

Opportunities to leverage Invest Toronto

The capacity that Invest has been building up over the last few months can be leveraged by the city, if the right

alignment is put in place. In addition to working with attracting companies directly Invest can be a crucial tool to:

•Create executive ambassador program to align city and business community and

formally “induct” Toronto business in selling city

•“Top 100” HQ call and proposal program

•Market and help sell specific development opportunities at Build, Waterfront, and

other Toronto city controlled locations

•Attract infrastructure investors for subways, transit, civic and other key city projects

•Create a “Study Toronto” capacity to lure students to study in Toronto

•NGO and Global organization attractions (i.e. similar to IATA, WHO etc)

•UHNW (Ultra High Net Worth) Attraction program for individuals and family

foundations

•Help “productize” specific Toronto initiatives to foreign investors

Conclusion

• Toronto has a great value proposition but requires significant, consistent and

unrelenting efforts on communicating the value

• Competition for investment is very fierce

• Multiple stakeholders and lead generators need to be managed as channels

to Toronto’s benefit

• We need to tie together city-building projects with investor interest and

“productize” investments and create “offers”.. A real opportunity to bring in

capital

• We need to target markets that are looking for partners in their global growth..

Not just go where the GDP is today but also where the GDP is growing fastest

• Momentum is everything in branding and awareness: it impacts international

and domestic (base of companies already here) investment decisions

20

CONTACT

Invest Toronto

001 416 981 3888

investmentservices@investtoronto.ca

www.twitter.com/invest_toronto

www.investtoronto.wordpress.com