THE INFORMATION AND COMMUNICATIONS TECHNOLOGIES CLUSTER OF GREATER MONTREAL

Table of Contents

Section 1

Profile of the Greater Montreal ICT Industry……… p.3

Section 2

Presenting TechnoMontréal …………………………. p.25

2

3

Profile of Greater Montreal ICTs

A collaboration of TechnoMontréal and Montréal International[updated January 15, 2014]

ICT Profile

ICT Employment

4*according to the Ministry of Finance and the Economy’s new definition, integrating 11 NAICS codes

92,377 jobs in the metro region,* more than 8% of Greater Montreal jobs 73% of ICT jobs in the province of Quebec

0

20000

40000

60000

80000

100000

120000

140000

2010 2011 2012

Montréal reste du Qc

ICT ProfileICT JOB GROWTH (%) TOP 20 OF THE LARGEST METROPOLITAN REGIONS OF NORTH AMERICA, 200 8-2012

5

Despite the global economic downturn in recent years, Greater Montreal ranks third among the 20 largest North American metro regions in ICT job growth.

San Fran

cisco; 1

4,3

% Seattle; 3,0

%

Mo

ntréal; 2

,5%

Atlan

ta; 2,4

%

Ph

oen

ix; 0,8

%

Wash

ingto

n; -0

,9%

Wash

ingto

n D

C

Dallas; -3

,0%

New

York; -3

,1%

Toro

nto

; -3,5

%

Ph

iladelp

hia; -4

,0%

Riversid

e; -5,6

%

Ch

icago; -5

,8%

Ho

usto

n; -5

,9%

St. Lou

is; -6,8

%

Miam

i; -7,7

%

Min

neap

olis; -7

,8%

Detro

it; -8,7

%

Los A

ngeles; -1

0,6

%

San D

iego; -1

5,2

%

ICT Profile

ICT Job Distribution

6

IT services represent half of ICT jobs and more than 75% of ICT companies in the region. This subsector includes software developers, computer services and multimedia. It is one of the most stable and promising sectors of the industry.

ICT jobs in Greater Montreal by subsector, 2012

6%

53%

33%

8%

ICT jobs in Greater Montreal by subsector, 2012

ICT companies in Greater Montreal by subsector, 2012

6%

53%

33%

8%Manufacturing

IT services

Telecom services

Wholesalers andrepairers

ICT Profile

Real GDP of ICTs Real GDP of ICTs ($B of 2007), province of Quebec and Greater Montreal, 2002-2012

7

The Greater Montreal ICT sector’s GDP has seen a growth of over 25% since 2002 to reach close to $10B in 2012, making it over 70% of the GDP of ICTs in all of Quebec.

0

2

4

6

8

10

12

14

16

2002e 2003e 2004e 2005e 2006e 2007 2008 2009 2010 2011 2012

Province of Quebec Greater Montreal (estimate)

ICT Profile

GDP Growth Index for Greater MontrealICT sector versus the overall economy, 2002-2012

8

The ICT industry is the economic growth engine of the Montreal region: its GDP has grown twice as fast as the overall economy in the last 10 years!

100

105

110

115

120

125

130

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Overall economy ICT sector

Operating Revenues by ICT Subsector ($B)Greater Montreal, 2006-2011

ICT Profile

9

Operating revenues for ICT companies rose by more than 20% since 2006, exceeding $21B in 2011.

16,0 % 11,4 % 8,6 % 5,8 % 6,7 % 5,8 %

23,0 % 27,5 % 29,7 % 30,1 % 30,8 % 30,8 %

37,8 % 37,9 % 36,8 % 40,1 % 40,1 % 41,6 %

21,8 %23,5 % 25,4 % 24,5 %

21,7 % 20,7 %

-

5

10

15

20

25

2006 2007 2008 2009 2010 2011

Wholesalers and repairers

Telecom services

IT services

Manufacturing

ICT Profile

Industrial R&D Spending ($M)Greater Montreal ICT sector, 1997-2010

10

In 2010, close to 85% of industrial R&D spending for ICT in Quebec occurred in the Greater Montreal region. This represents approximately $750M, close to double the level reached in 1997.

0

100

200

300

400

500

600

700

800

900

ICT Profile

Funds Allocated to University Research ($B)Top 5 metropolitan regions of Canada, 2005-2010

11

Greater Montreal tops the list in terms of funds dedicated to university research, pulling significantly ahead of the other large Canadian metropolitan regions. Since 2005, the total funds allocated to university research has surpassed $6B.

0

1

2

3

4

5

6

7

Montréal Toronto Vancouver Ottawa Calgary

ICT Profile

Total Operating Costs of an ICT Company*Top 20 largest North American metropolitan regions, 2013

12

According to KPMG (2013), Greater Montreal ranks 1st among the largest North American metropolitan regions in terms of total operating costs in ICT. The parameters used account for workforce, energy and office space.

0

20

40

60

80

100

120

140

* Average of five subsectors (Montreal = 100)

ICT Profile

Cost-Benefit (%) of Greater Montreal Compared to the average of the 19 other largest North American metropolitan regions, 2013

13

Companies whose main activities are web content creation, electronic systems testing, software development, telecom equipment and component assembly have the most pronounced cost-benefit in Greater Montreal compared to the average of the 19 other North American metropolitan regions.

Source: KPMG, 2013 (Exchange rate: CAN$1 = US$0.9805)

0% 5% 10% 15% 20% 25%

Component assembly

Telecom equipment

Software development

Electronic systems testing

Web content creation

ICT Profile

Index of Total Taxation for Companies in the Digital Sector*Top 20 largest North American metropolitan regions, 2012

14

According to KPMG (2012), Greater Montreal companies that work in the digital sector can benefit from taxes that are up to four times less than the average of North American metropolitan areas, ranking the region 2nd in North America.

* Average of US metropolitan regions = 100

0

20

40

60

80

100

120

ICT Profile

Index of Total Taxation for Companies in R&D*Top 20 largest North American metropolitan regions, 2012

15

Greater Montreal has one of the world’s most competitive tax loads. Companies in the region specializing in R&D can benefit from taxes up to fives times less than the average of North American metropolitan areas, ranking the region 1st in North America.

* Average of US metropolitan regions = 100

0

20

40

60

80

100

120

ICT Profile

Subsidiaries of foreign ICT companies, by employment, Greater Montreal

Top 20 largest North American metropolitan regions, 2012

16Source : Montréal International et TechnoMontréal

Company Employment ActivitiesCountry of

Origin

Ubisoft 2,000-2,999 Video game development and publishing France

Ericsson Canada 1,000-1,999 Telephone and wireless telecommunications services Sweden

Esterline CMC Electronics 1,000-1,999 ICT manufacturer for the aerospace and defense markets United States

IBM Canada 1,000-1,999 IT services United States

Fujitsu Canada 500-749 IT services Japan

Morgan Stanley Canada 500-749 Software for the financial sector United States

Eidos (Square Enix) 500-749 Video game development and publishing Japan

CSC 500-749 IT services United States

SAP Labs Canada 250-499 Software for improving company management Germany

Epicor Software 250-499 IT services United States

Warner Bros. Games 250-499 Video game development and publishing United States

Gameloft 250-499 Video game development and publishing France

Accenture 250-499 IT services Ireland

Autodesk 250-499 2D and 3D modelling software United States

Insight Canada 250-499 Distributor of computer products and software United States

Nuance Communications 250-499 Software for digital imaging solutions and speech recognition United States

PC Mall Canada 250-499 Distributor of computer products and software United States

Dassault Systèmes Canada 250-499 3D software for various sectors France

Tyco Electronics Canada 250-499 Manufacturer of fibre optics and electronic components Switzerland

Xerox Canada 250-499 Distributor of office, printing and graphic arts products United States

VMC Game Labs 250-499 Postproduction services for the video game industry United States

ADP 250-499 Telecommunications services – hosting and data processing United States

Tata Communications 250-499 Cable telecommunication services, specialized in emerging markets India

Alstom 250-499 ICT manufacturer for the transportation sector France

Covidien 250-499 ICT manufacturer for the medical sector United States

Nokia 250-499 ICT manufacturer for the telecommunications sector Finland

ICT Profile

Top 10 ICT companies investing the most in R&D in Canada, with a presence in Greater Montreal, 2011

17Source: RE$EARCH Infosource, “Canada’s Top 100 Corporate R&D Spenders 2012”

Company NameR&D Spending in

Canada (in $M)

Intensity of R&D

(% of revenue)Industries

Rank in

Canada

BCE 569.1 2.9 Telecommunications services 3

IBM Canada 500 N/D Software and IT services 5

Ericsson Canada 323 30.6 Telecommunications equipment 8

Alcatel-Lucent 237 N/D Telecommunications equipment 10

TELUS 183 1.8 Telecommunications services 12

Open Text 144.4 14.1 Software and IT services 16

CAE 117 7.2 Software – aerospace sector 19

Rogers Communications 109 0.9 Telecommunications services 21

Groupe CGI 86 2.0 Software and IT services 29

PMC Sierra 85 63.7 Manufacturing – semiconductors 30

ICT Profile

Ranking of companies in IT services, by employment, Greater Montreal 2013

18Source: Montréal International and TechnoMontréal

Company Employment Country of Origin

CGI 7,000 + Canada

IBM 1,000-1,999 United States

ACCEO Solutions 750-999 Canada

Fujitsu 500-749 Japan

CSC 500-749 United States

Groupe Conseil OSI 500-749 Canada

Accenture 250-499 Ireland

Cofomo 250-499 Canada

Epicor Software 250-499 United States

Iron Mountain 250-499 United States

Telus Santé 250-499 Canada

ICT Profile

Ranking of video game companies, by employment, Greater Montreal 2013

19Source: Montréal International and TechnoMontréal

Company Employment Activities Country of Origin

Ubisoft 2,000-2,999 Video game development and publishing France

Eidos (Square Enix) 500-749 Video game development and publishing Japan

Behaviour 250-499 Video game development and publishing Canada

Warner Bros. Games 250-499 Video game development and publishing United States

Gameloft 250-499 Video game development and publishing France

VMC Game Labs 250-499 Postproduction services for the video game industry United States

Funcom 100-249 Video game development and publishing Norway

Ludia 100-249 Video game development and publishing UK

Electronic Arts 100-249 Video game development and publishing United States

Babel Media 100-249 Postproduction services for the video game industry UK

SAVA Transmédia 100-249 Video game development and publishing Canada

ICT Profile

Ranking of multimedia companies (excluding video games), by employment, Greater Montreal 2013

20Source: Montréal International and TechnoMontréal

Company Employment Activities Country of Origin

Pages Jaunes 1,000-1,999 Multimedia publications Canada

Canoë 250-499 Multimedia publications Canada

Sid Lee 250-499 Interactive marketing services Canada

Beyond the Rack 100-249 E-commerce Canada

Ciné Groupe Toontek 100-249 Animation studio Canada

Nurun 100-249 Digital services Canada

Framestore 100-249 Animation and visual effects studio UK

Google 50-99 Search portal United States

Sono Vidéo 50-99 Multimedia solutions Canada

Tonik Groupimage 50-99 Digital services Canada

Toutenkartoon 50-99 Digital services France

Vortex Solution 50-99 Web solutions Canada

ICT Profile

Ranking of telecommunications companies, by employment, Greater Montreal 2013

21Source: Montréal International and TechnoMontréal

Company Employment ActivitiesCountry of

Origin

Bell 5,000 + Telephone, wireless telecommunications, high speed internet and digital television

services

Canada

Telus 3,000-4,999 Telephone, wireless telecommunications, internet and digital television services Canada

Vidéotron 3,000-4,999 Telephone, wireless telecommunications, high speed internet and digital television

services, and multimedia development

Canada

Cogeco 1,000-1,999 Telephone, high speed internet and digital television services Canada

Ericsson Canada 1,000-1,999 Telephone and wireless telecommunications services Sweden

ADP 250-499 Hosting and data processing United

States

Allstream 250-499 Telecommunications services based on IP technology, only for businesses Canada

Rogers

Communications

250-499 Telephone, wireless telecommunications and high speed internet services Canada

Shaw Direct 250-499 Digital television services Canada

Tata Communications 250-499 Cable telecommunications services, specialized in emerging markets India

ICT Profile

Ranking of ICT wholesalers and repairers, by employment, Greater Montreal 2013

22Source: Montréal International and TechnoMontréal

Company Employment ActivitiesCountry of

Origin

Future Electronics 1,000-1,999 Distributor of semiconductors and passive, interconnect and electromechanical

components

Canada

Insight Canada 250-499 Distributor of IT products and software United

States

PC Mall Canada 250-499 Distributor of IT products and software United

States

Xerox 250-499 Distributor of office, printing and graphic arts products United

States

Canon 100-249 Distributor of cameras and optical equipment Japan

Hartco 100-249 Distributor of IT products, services and solutions Canada

In summary…

ICTs are a pillar of the Montreal economy

In the last ten years, ICTs have seen a GDP growth twice as fast as the overall economy

92,377 jobs in the metro region (73% of Quebec)

Ranked 3rd in North America for ICT job growth

A GDP of $10B in 2012, more than 70% the GDP of Quebec ICTs

Operating revenues for ICT companies is in constant growth ($21B in 2011)

23

Montreal is the capital of ICT innovation

85% of spending in industrial R&D for ICT in Quebec occurred in Greater Montreal

Ranked first in Canada, in terms of funds dedicated to university research

Montreal’s competitive advantages help it become the digital capital of the world

Ranked first in North America in terms of operating costs

Ranked 2nd in terms of taxation for ICT companies

Ranked 1st in terms of taxation for R&D companies

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In summary…

25

Presenting TechnoMontréalThe Information and Communications

Technologies Cluster of Greater Montreal

TechnoMontréal

Mission

TechnoMontréal is the Information and Communications Technologies (ICT) Cluster of Greater Montreal. Founded in 2007, this non-profit organization brings together and supports players in the ICT sector around common goals. Through concerted actions, the Cluster aims to accelerate and optimize the competitiveness, growth and reach of this industry that provides 92,000 jobs in the metropolitan region.

TechnoMontréal assembles actors within the private, institutional and public sectors. Together, they significantly contribute to the economic and social vitality of the Montreal region, as well as to the development of creativity and state-of-the-art technologies.

26

TechnoMontréal

Partners

TechnoMontréal is proud to be able to count on partners recognized for their implication in developing the ICT industry of Greater Montreal. The financial support of TechnoMontréal’s partners, from the public, private and institutional sectors, greatly contribute to the success of the Cluster and to its influence on the local and international levels.

27

TechnoMontréal

TechnoMontréal’s Four Major Working Groups

Innovation Working Group: aims to encourage innovation in Greater Montreal through the implementation of key projects, like Montreal Digital Metropolis (MDM) whose goal is to propel the metro region into the ranks of smart cities.

Talent Working Group: aims to respond to the needs of the industry’s workforce and to rectify the disparity between job supply and demand.

International Visibility Working Group: aims to ensure the international influence of the industry through the development of business corridors with local and international players.

Industry Development Working Group: aims to support and encourage the growth of all industry players.

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TechnoMontréal

TechnoMontréal’s ICT Partners Roundtable

The implementation of the ICT Partners Roundtable stems from the need to coordinate the community milieu, a major player within a very fragmented industry.

Since 2012, the Roundtable’s work has facilitated various projects like standardizing statistical information, coordinating messages delivered by the industry regarding public consultations and developing joint communications projects.

29

TechnoMontréal

Members of TechnoMontréal’s Board of Directors (2013-2014)

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Sabin Boily ÉTSPierre Boucher ERICSSONMichel Boutin INFIDEMMichel. O Côté CGIStéphane Couture BELLNicolas Darveau-Garneau GOOGLEMartin Buteau U. de SherbrookePhilippe Turp UBISOFTMélanie Dunn Cossette DigitalRobert Desbiens R3D CONSEILSMarc Dubé IBMDidier Gombert OBJECTIF LUNEDiane Hastie MFEJean-Claude Ouellet CISCODiane L’Écuyer INDUSTRIE CANADA

Alain Lavoie IROSOFTGilles Létourneau ACCEOLouis Veilleux SOLOGLOBEJean-Sébastien Cournoyer Real VentureJean-François Nadeau MC GILLDaniel Blanche CRIMYves Pelletier ALITHYAAndré Petitclerc IQHossein Samimi E-TRONICSGilles Savard POLYTECHNIQUEJacques St-Laurent MONTRÉAL INTERNATIONALRose-Marie Tasseroul MAMROTRoch Tremblay RCMMPierre-Yves Martel Telus