SPAIN – CANADA CHAMBER OF COMMERCE

Mr. Elie Farah, Eng., Vice President, Investment, Montréal International

March 26, 2009

GREATER MONTRÉAL

• 82 municipalities

• Territory of 1 600 sq. mi.

• Population of over 3.7 million inhabitants; nearly half

of the population of Québec

• GDP of $123 billion; nearly half of Québec’s GDP

MONTRÉAL METROPOLITAN COMMUNITY

• 11 institutions of higher learning

• 168,000 university students, including 17,000 foreign students

• Ranks 1st in North America for the number of university students per inhabitant

• Ranks 1st in Canada for university research funding

• Ranks 1st in Canada for the number of research centres and university researchers

• Ranks 1st in Canada for the number of patents held

GREATER MONTRÉALA leader of the knowledge economy

• At the crossroads of North America and Europe

• A United Nations city, through the presence of the International Civil Aviation Organization (ICAO), a specialized agency of the United Nations (UN)

• 70 international organizations are locatedin Montréal

• Ranks 2nd for international conferences andmeetings in North America, after New York

• A highly qualified workforce, and the mostbilingual and trilingual city in North America(some 80 languages spoken)

GREATER MONTRÉALAn international city

ICAO

GREATER MONTRÉALA gateway to world markets with key infrastructures

• Two international airports - Passengers: Pierre-Elliott Trudeau (12 million passengers. Rate of satisfaction: 97%) - Cargo: Montréal-Mirabel

• The Port of Montréal - The shortest route between Europe and the heart of North America - Over 25 million tons of cargo handled each year

• Two major railway companies - A connection to all regions of Canada and the U.S.

Greater Montréal is a leader in the new economy. It excels in the high tech and innovation sectors, namely in the areas of:

• Information and Communications Technology (ICT)• Life Sciences• Aerospace

These three clusters combined represent 11% of private-sector jobs in Greater Montréal.

GREATER MONTRÉALA high tech leader

Montréal International

Mission

To contribute to Greater Montréal’s economic developmentand to enhance its international status.

Mandates

1. Attract foreign investment

2. Increase the presence of international organizations

3. Facilitate the relocation of strategic foreign workers

4. Support the development of competitive clusters

5. Stimulate the development of innovation

MONTRÉAL INTERNATIONAL

Public-Private Partnership

• 110 member companies and institutions

• The Government of Canada

• The Government of Québec

• The Communauté métropolitaine de Montréal (82 municipalities)

• The City of Montréal

OUR MEMBERS AND PARTNERS

Our Board of Directors consists of 30 members: 20 from the private sector and 10 from the public sector

Committees

• Executive Committee

• Management and Human Resources Committee

• Verification and Finance Committee

• Investment Greater Montréal Committee

• FODIM Advisory Committee

Pierre BrunetChairman of the Board

OUR BOARD OF DIRECTORS

• Territories: USA, Europe, Areas of China, India and the Persian Gulf

• Approaches: Sectoral and geographical

• Networks: Business, finance and government

• Partnerships: Cities, Local development corporations

OUR MANDATES1. Attract foreign investment

Investissement Grand Montréal Organigramme IGM 2009

30 janvier 2009

Anik Lévesque

Chargée de projets

Élie FarahVice-président IGM

Suzanne Savoie

Directeur

dév. des affaires Est

Marie-Claude Harvey

Directeur

dév. des affaires Centre

Dave MurphyVice-président OI

Technologies environnementales, Nouveaux matériaux / Nanotechnologies

Allemagne, Autriche, Suisse

Aérospatiale, TIC,

Cinéma, Bois et papiers,

Biens de consommation

Élie Farah p.i.

Directeur

dév. des affaires

Sciences de la vie

André HubertAdjoint au vice-président(+ Partenaires et Filiales)

Chine

Dave Murphy

Directeur

dév. des affaires Chine

Gene Nicholas Osidacz

Directeur

dév. des affaires

Pays Anglophones

Pierre Brouillard

Directeur

dév. des affaires

Aérospatiale

Ginette Audet

Directeur de projets

Ronan Caillo

Directeur

dév. des affaires

Pays Francophones

Johan Eile

Directeur

dév. des affaires

T.I.C.

Alexandre Lagarde

Directeur de projets

Sciences de la vie, Agroalimentaire, Textile (mode)

Claire Yu

Chargée de projets

Énergie, Chimie, Plasturgie

Immobilier, Construction,

Tourisme et loisirs

Pierre Cléroux

Directeur, dév des affaires

Inde et Golfe Persique

Dave Murphy

Directeur

dév. des affaires Chine

Pierre Brouillard

Directeur

dév. des affaires

Aérospatiale

Ginette Audet

Directeur de projets

Louise Thiboutot

Directeur

dév. des affaires Ouest

Johan Eile

Directeur

dév. des affaires

T.I.C.

Sciences de la vie, Agroalimentaire, Textile (mode)

Claire Yu

Chargée de projets

Timothy Flaherty

Chargé de projets

Transport / Logistique, Centres d’appel, Finance

Europe

Véronique BourgaultSecrétaire de direction

Sectoriel

Khady Diallo FallSecrétaire de direction

États-Unis Inde et Golfe Persique

• Attraction:Promotion,candidacy & bids

• Integration:Staff, fit-up, location assistance, networking

OUR MANDATES2. Increase the presence of international organizations

• Development: Strategic advice, financial support

• Expansion : Strategic intervention

• Advice on hiring

• Help in obtaining official documents

• Support for spouses

OUR MANDATES3. Facilitate the relocation of foreign workers

• Support their implementation

• Participate in their development

• Initiate joint projects and missions

• Provide specialized services

OUR MANDATES4. Support the development of competitive clusters

• Strategic watch

• Mobilization of key players

• Development and marketing of the Montréal region’s innovation potential

• Support the vitality of innovation in the region

OUR MANDATES5. Stimulate the development of innovation

October 6 and 7, 2008

1 550 subsidiaries of foreign companies

About 80% of all foreign subsidiaries in Quebec

Annual expenditures of over 19 B$ in Québec

About 15% of Greater Montreal GDP

They employ over 133 000 persons

75% of all employment by foreign subsidiaries in Quebec 7% of total employment in Greater Montreal

11% of all private sector jobs in Greater Montreal

Sources : Montréal International and the Institut de la statistique du Québec

FDI IN GREATER MONTRÉAL

Based on Statistics Canada data, companies under foreign control, when compared with enterprises under local control:

Have generally a higher productivity;

Offer higher remuneration to their employees;

are more innovative;

are more prone to invest in R&D;

are more likely to invest in state-of-the art technologies.

FOREIGN INVESTMENT PAYS

Source : Statistics Canada, november 2007

30% of the employment in the three main competition clusters are created by subsidiaries of foreign companies

In Life Sciences, 11 of the top 12 employers are subsidiaries of foreign companies

In 2007-2008, 2/3 of the investment projects valued at more than 10M$ were announced or realised by subsidiaries of foreign companies

Recent examples :

Aerspace: Pratt & Whitney, Bell Helicopter, RTI Claro, LISI Aéronautique, Thales, Sonaca NMF, Rolls-Royce, Turbomeca, AAA Canada, etc.

Gaming : Ubisoft, Electronic Arts, Eidos, VMC Game Labs, Cyanide, Javaground, Eyetronics, etc.

Life Sciences: Sandoz, Boehringer Ingelheim,Sanofi-Aventis, Pfizer, Roche Diagnostics, Schering-Plough, etc.

FDI IN GREATER MONTRÉAL

2005 GREATER MONTRÉAL CLUSTER STRATEGY

•21.3% decrease during the 1988-2008 period

•Manufacturing sector has been struggling these last few years mainly because of the rise of BRIC and the Canadian dollar

THE DECLINE OF THE MANUFACTURING SECTOR

Source: Statistics Canada

Employment in the manufacturing sector (000s)Greater Montréal

1988-2008

-10%-8%-6%-4%-2%0%2%4%6%8%

10%

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

0

100

200

300

400

Variation % Volume

•39.6% increase during the 1988-2008 period

•Services sector gained more than 120,000 jobs during the last five years (2004-2008 : +8.6%)

•Represents more than 80% of Greater Montréal’s total employment

THE RISE OF THE SERVICES SECTOR

Source: Statistics Canada

Employment in the services sector (000s) Greater Montréal

1988-2008

-4%

-2%

0%

2%

4%

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

Variation % Volume

THE CONTRIBUTION OF THE HIGH TECH SECTORS

Employment in selected sectors – Greater MontréalAccording to North American Industry Classification (NAICS) codes

From a traditional to a knowledge-based economy, driven by technology, creativity and innovation…

Source: Statistics Canada

Sectors 1988 2008 1988-2008 %

Computer Systems Design and Related Services 4 300 46 100 972,1%

Motion Picture and Video Industries 3 500 13 400 282,9%

Professionnal, Scientific and Technical Consulting Services 71 000 174 600 145,9%

Pharmaceutical and Medicine Manufacturing 8 600 13 200 53,5%

Aerospace Product and Parts Manufacturing 21 000 26 100 24,3%

Telecommunications 22 200 25 000 12,6%

Total 130 600 298 400 128,5%

AN OVERALL REMARKABLE PERFORMANCE OF THE LABOR MARKET

A global drop in the unemployment rate

Source: Statistics Canada

A DECADE OF

ECONOMIC REVIVAL

HIGH TECH BUBBLE - WORLD ECONOMIC DOWNTURN

THE NEED FOR C

HANGE

IN THE RIGHT DIRECTION…

ECONOMIC RECESSION

5%

8%

11%

14%

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

UnemploymentGreater Montréal, 1988-2008

THE RECIPE FOR SUCCESS

• Science

• Scientists

• Infrastructure

• Financing

• Fiscal Incentives

The 5 Pillars

Thank you !

Élie Farah, Eng.Vice PresidentInvestment Greater Montreal

Tel : (514) 987- 8191Fax: (514) 499-9547E-mail: elie.farah@montrealinternational.com

380 Saint-Antoine St. WestSuite 8000

Montréal, Québec

H2Y 3X7www.montrealinternational.com