Quick overview about e-secure transaction projects in Normandy, France

1. E-transactions project:
Normandy
June 2009

2. E-TRANSACTIONS PROJECT: NORMANDY
1. EXECUTIVE SUMMARY
NORMANDIE DEVELOPPEMENT is specialised in welcoming and helping businesses to set up in Normandy. In addition to our technical
support available at every stage of your project, we mobilise public and private networks of partners for a rapid and successful implementation of
your project in Normandy.
You are willing to open a R&D center. Please find herunder 5 excellent reasons to invest in Normandy:
■ TES Transactions cluster (e-transactions cluster)
■ E-banking platform at ENSICAEN (unique in the world),
■ The GREYC laboratory specialized in computer science, computer security, image processing, electronics, automation... (100 researchers)
■ TES cluster and ENSICAEN partners: 7 Banks, Transport companies, Mobile operators, Cards manufacturing, ELLITT Laboratory,
■ Excellent existing infrastructures.
We are at your disposal for any additional information and remain,
Yours faithfully,
Mr Sylvain DORRIERE
Project Manager
JUNE 2009 2

3. E-TRANSACTIONS PROJECT: NORMANDY
2. PRESENTATION OF
NORMANDIE DEVELOPPEMENT
JUNE 2009 3

4. E-TRANSACTIONS PROJECT: NORMANDY
2. NORMANDIE DEVELOPPEMENT
Who we are
- An association gathering Norman services and industry leaders (160 members)
- Through our own prospection abroad, our main objective is to attract international investment in Normandy, to promote the territory of Normandy,
and to support your international development
- We welcome and help businesses to set up in Normandy: technical support, mobilization of public and private networks of partners for a rapid
and successful implementation of your project in Normandy.
Our missions: Our organisation:
- Enhance Normandy’s territorial business offer, with a focus on - 19 people on call for your needs with following sectorial
international development organization:
- Provide support to economic development, especially major . Agribusiness, Health
corporate projects
. Propulsion, Motorization, Transport
- Answer partnership demands: interface between investors and
Norman companies . Secured Electronic transactions, Innovating projects
- Animation ot the Association . Logistics, oils and chemicals.
- Coordination of the various actors to answer the industrial request
and to promote Normandy abroad
- Deploying actions for regional planning and development.
Our services: Our financing sources (public and private):
- Introduction to research and technology expertises - French government, Regions, local Authorities
- Assistance for grants and financial incentives - The 160 members (Norman services and industry leaders)
- Advice on availability and costs of sites and premises of our Association.
- Introduction to other business professionals: lawyers, accountants, banks…
- Identify, prospect and get new international mobile investments to Normandy
- International economic intelligence: analysis, studies, networking,
anticipation to be pro active.
JUNE 2009 4

5. E-TRANSACTIONS PROJECT: NORMANDY
Normandy Développement at the center of economic partners network
Local Devpt Agencies
Competitive clusters
AFII - UbiFrance
Investment Promotion
Prospecting President of Normandy
Settlements Business
Watch Intelligence
Deal flow Director
Communication
Partnership
Administration
Accounting
JUNE 2009 5

6. E-TRANSACTIONS PROJECT: NORMANDY
Economic partners network
International partners
■ Euratlantic: thirteen regions in France, Portugal and Spain have joined forces to market their territory on an international level
■ Gate2Growth: the pan-European Gateway to Business and Innovation
National and regional partners
To fulfil its missions, Normandie Développement has signed charters and conventions with several national and regional partners, including:
The French Government: The local authorities:
■ DIACT (ex. DATAR) ■ Both Normandy Regional Councils (Haute-Normandie & Basse-Normandie)
■ AFII (The French Government Agency for International Investment) ■ Normandy General Councils
■ Préfecture de Région Haute-Normandie
■ Préfecture de Région Basse-Normandie
Norman economic development agencies:
■ Seine Maritime Expansion ■ Comité d’Expansion Agroalimentaire
■ ADEAR (Rouen Développement) ■ SYNERGIA
■ Le Havre Développement ■ SHEMA
■ Eure Expansion ■ Basse-Normandie Regional Chamber of Commerce and Industry
■ Calvados Stratégie ■ Haute-Normandie Regional Chamber of Commerce and Industry
■ Orne Développement ■ Normandy’s Regional Chamber of Agriculture
JUNE 2009 6

7. E-TRANSACTIONS PROJECT: NORMANDY
3. FRANCE BRIEF OVERVIEW
JUNE 2009 7

8. E-TRANSACTIONS PROJECT: NORMANDY
3. FRANCE BRIEF OVERVIEW
3.1. GDP 2007 (estimates - in billion dollars)
GDP 2007
(estimates - in billion dollars)
4 000
2
9.
25
3 500
3,
9
5.
3 000 GDP 2006
75
2
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2,
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2,
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Source: International Monetary Fund, World Economic Outlook Database, October
2007
JUNE 2009 8

9. E-TRANSACTIONS PROJECT: NORMANDY
3.2. TOP 15 INVESTMENT DESTINATIONS AMONG EUROPEAN COUNTRIES
(number of projects 2006)
TOP 15 investment destinations among European countries
(number of projects 2006)
800
686
700
600 565
500
400
286
300 212 185
200 152 140 136 113 113
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Source: Ernst & Young - European Attractiveness Survey - 2007
! 3rd worldwide destination for FDI with $81 billion in
2006, after only the United States and United Kingdom
JUNE 2009 9

10. E-TRANSACTIONS PROJECT: NORMANDY
3.3. LABOR PRODUCTIVITY
Labor productivity - GDP per hour worked
39 37.99
37 35.63
35.08
35 34.47 34.14
32.82
33
30.9
31 30.44 30.42
29.49
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Source: International Labor Organization - September 2007 Un
JUNE 2009 10

11. E-TRANSACTIONS PROJECT: NORMANDY
3.4. EMPLOYMENT COSTS: FOR AN EXECUTIVE
Compared employment costs for an executive (in $/year)
220000
190,081
200000
170,093 13,984
180000 168,014
160000 14,481
140000
46,465
120000
100000
176,097
80000
155,612
60000 121,549
40000 Employer contributions
20000 Total remuneration
0
France Germany United Kingdom
Data source: Mercer Human Resources Consulting, April 2007
JUNE 2009 11

12. E-TRANSACTIONS PROJECT: NORMANDY
3.5. EMPLOYMENT COSTS: LABOR COSTS COMPARISON
WELFARE
WAGES AND SALARIES COMPULSORY STATUTORY BENEFITS TOTAL LABOR COSTS
Average Average
per employee Rank % of total cost Rank % of total cost Rank per employee Rank
($ US) ($ US)
United States 55 821 $ 3 10 % 3 26 % 5 75 411 $ 1
Canada 60 006 $ 5 8% 1 20 % 2 76 738 $ 2
Australia 58 480 $ 4 13 % 6 22 % 4 78 903 $ 3
FRANCE 51 984 $ 1 43 % 9 20 % 1 84 826 $ 4
Italy 54 362 $ 2 32 % 8 28 % 6 87 119 $ 5
United Kingdom 62 988 $ 6 12 % 6 30 % 7 89 699 $ 6
Japan 68 247 $ 8 9% 2 31 % 8 95 600 $ 7
The Netherlands 66 934 $ 7 12 % 4 33 % 9 97 040 $ 8
Germany 79 064 $ 9 15% 7 21 % 3 107 518 $ 9
Source : KPMG, Competitive Alternatives, 2008
é France ranks 4th globally and benefits from lower costs than the other listed countries.
JUNE 2009 12

13. E-TRANSACTIONS PROJECT: NORMANDY
3.6. HIGHLY EDUCATED POPULATION
Science graduates 2005 - higher education
(Per 100,000 employed 25-to-34-year-olds)
3500
3,022
2,917
3000
2500 2,283
2000 1,746 1,656
1500 1,401 1,401 1,375 1,302
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Source: OECD 2007
JUNE 2009 13

14. E-TRANSACTIONS PROJECT: NORMANDY
3.7. BUSINESS CREATION: REGISTRATION
Easily register a new business
Duration (days) Num ber of procedures
50 14
Number of procedures
45 12
40
Duration (days)
35 10
30 8
25
20 6
15 4
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Source: Doing Business in 2008 report (IFC, World Bank Group, Sept-2007)
JUNE 2009 14

15. E-TRANSACTIONS PROJECT: NORMANDY
4. BENCHMARK
FRANCE-GERMANY-UNITED KINGDOM
JUNE 2009 15

16. E-TRANSACTIONS PROJECT: NORMANDY
4. BENCHMARK
FRANCE-GERMANY-UNITED KINGDOM
4.1. THREE LARGE MARKETS
GLOBAL MARKET GDP
FRANCE 5th global market with 63.75 M. people $ 41,680 / resident
GERMANY 3rd global market with 82.22 M. people $ 41,530 / resident
UNITED KINGDOM 6th global market with 61.18 M. people $ 47,940 / resident
JUNE 2009 16

17. E-TRANSACTIONS PROJECT: NORMANDY
4.2. BETTER CONDITIONS TO SET UP A BUSINESS
FRANCE GERMANY UNITED KINGDOM
Overall business set-up cost Ranked 5th Ranked 10th Ranked 6th
(Index Unites States = 100) 103.5 116.8 107.1
KPMG Competitive Alternatives, 2008
JUNE 2009 17

18. E-TRANSACTIONS PROJECT: NORMANDY
4.3. FAVORABLE COMPARATIVE COSTS
FRANCE GERMANY UNITED KINGDOM
Taxes paid by companies on value-added wealth created
DIUS Value Added Scoreboard 2007 8% 6% 12 %
Total dowtown offices costs, including rent and taxes (in $) 1,429 716 2,954
Schofield & Partners, Geneva/Jones Lang LaSalle, EMEA Research, August 2007)
Average price per minute for a mobile phone call in Europe 0.18 0.34 0.23
(VAT excluded)
Paris-Ile de France Capitale Economique, Benchmark, Attractivité de l’Ile de France en
Europe, Nov. 2007)
Comment:
é The prices for a mobile phone call is almost 50% lower in France than in Germany and 20 % lower than in the United Kingdom.
JUNE 2009 18

19. E-TRANSACTIONS PROJECT: NORMANDY
4.4. A HIGHLY QUALIFIED, PRODUCTIVE AND COMPETITIVE LABOR FORCE
FRANCE GERMANY UNITED KINGDOM
Science and Technology graduates 22.5 9.7 18.4
per 1,000 people, aged 20 to 29
Eurostat 2008
Usual working time Eurostat 2008 41 41.7 43
Actual number of hours worked per week by managers (full time 48 49.7 44.2
Eurostat 2008
Productivity (GDP / person employed / hour) ILO 2007 € 35.08 € 29.49 € 30.42
Work days lost due to strikes 3.70 1.01 10.06
per 1,000 people - 2004 to 2006 average) ILO:IMD 2008
Employment costs for an executive (in $/year) 168,014 170,093 190,091
Mercer Human Resources Consulting, April 2007
Wages level (New York = 100) (UBS, Prices and earnings, 2008) 81 (Paris) 104.8 (Frankfurt) 102.2 (London)
Ministry of Labour 76 (Normandy)
Example: annual salary (gross) in a biopharm company
- Production Manager € 90,400 € 104,900 € 72,900
- Technician € 45,400 € 57,800 € 34,300
- Secretary € 36,200 € 46,000 € 24,800
OCO Access, Watson Wyatt 2008
Comments:
- The percentage of Science and Technology graduates in France is twice as high as in Germany and 20 % higher than in the United Kingdom.
- Hourly productivity in France is much higher than in Germany and in the United Kingdom.
- the usual work week for the active population in France is 41 hours (and not 35) and the actual number of hours worked by managers in France
is almost 10% higher than in the United Kingdom (48 h vs 44,2 h).
JUNE 2009 19

20. E-TRANSACTIONS PROJECT: NORMANDY
4.5. DYNAMIC AND HIGHLY ENCOURAGED R&D
FRANCE GERMANY UNITED KINGDOM
Gross domestic expenditure on R&D (% of GDP in 2005) 2.1238 2.4833 1.7637
Eurostat 2008
Number of international patents (in 2007) 6,370 18,134 5,553
World Intellectual Property Office
Number of patents per 10,000 people (in 2006) 565.90 559.28 792.08
IMD 2008
Research Tax Credit
Le Guide du CIR 2008
$ 5 million 0 $ 0.75 million
Example: A company whose expanses reached € 10 million in
2008 will benefit in its first year from a research tax credit of:
Comments:
- France offers the best Research Tax credit in Europe in the OECD.
- France is ahead of the United Kingdom for the number of issued patents.
JUNE 2009 20

21. E-TRANSACTIONS PROJECT: NORMANDY
5. NORMANDY INDUSTRIAL
STRENGTH: GENERAL OVERVIEW
JUNE 2009 21

22. E-TRANSACTIONS PROJECT: NORMANDY
5. NORMANDY INDUSTRIAL STRENGTH: GENERAL OVERVIEW
An internationally renowned French and European Region !
SWEDEN
DENMARK
■ 3.2 million inhabitants,
IRELAND
■ 6 competitiveness clusters: Logistics, Automotive, Cosmetics,
UNITED KINGDOM
Secure Electronic Transactions, Horse industry, Foodstuffs of the future ER
ERLAN
NETHERLANDS P
GERMANY
■ Number one French port complex on the Channel seaboard, only 2 hours from Paris, B
BELGIUM
CZECH REPUBLI
NORMANDY
■ 3 major employment areas: Rouen (725,000 inhab.), Le Havre (360,000 inhab.)
and Caen-Bayeux (485,000 inhab.), AUSTRIA
FRANCE SWITZERLAND
■ A qualified workforce from operator to engineer, SLOVENIA
■ A wide and diversified range of training courses, 217 miles
ITALY
The French market
63 million consumers
■ World renowned tourist landmarks such as the Mont-Saint-Michel, Deauville, Honfleur,
Bayeux, the Allied Landing beaches, abbeys, and more...
621 miles
SPAIN 250 million consumers
PORTUGAL
932 miles
380 million consumers
200 km
Source : AFII
2 hours from the largest consumer region in Europe
JUNE 2009 22

23. E-TRANSACTIONS PROJECT: NORMANDY
5.1. Normandy: potential market of 200 million consumers
GDP per region - year 2006 (1)
GDP GDP GDP
per inhab. per employee
(in million euros) (euros) (euros)
Haute-Normandie 46,853 25,834 66,712
Basse-Normandie 34,064 23,491 59,952
(1) provisional data
Unemployment
2007 2008 (estimates) 2008 (estimates)
4TH QUARTER 1ST QUARTER 2ND QUARTER
Haute-Normandie 7.9 % 7.6 % 7.8 %
Basse-Normandie 6.8 % 6.5 % 6.6 %
Source: INSEE (French Institute for Statistics & Economic Studies)
Gross value added per region and per sector - year 2006 (in million euros)
AGRICULTURE INDUSTRY SERVICES TOTAL GROSS
FORESTRY VALUE ADDED
FISHING
Haute-Normandie 754 9,154 20,146 41,795
Basse Normandie 1,138 5,252 13,993 30,386
JUNE 2009 23

24. E-TRANSACTIONS PROJECT: NORMANDY
5.2. Normandy: workforce and salaries
An attractive place for your employees
For small, medium and large size companies, the recruitment of employees is facilitated by several positives factors:
1. Availability of fresh graduates from different disciplines: craft certificate, certificate of professional capacity, A-Level (professional),
advanced vocational diplomas and engineers.
2. Availability of skilled staff thanks to the industrial environment.
Another major competitive advantage: Normandy remains close to the Paris area. Furthermore the higher quality of life and better work conditions
make it easy to attract and retain staff from the Capital city in our Region.
Reasonable level of salaries
The salaries are below the Paris area level, but still remain attractive for employees due to:
- Cheaper and better housing facilities in Normandy
- The commuting time to work rarely exceeds 20 minutes in Normandy, whereas in Paris and suburbs it can reach over 2 hours.
Regional wages survey
Average net annual salaries (in euros) in 2005, by socio-economic category
BASSE- HAUTE- FRANCE
NORMANDIE NORMANDIE
Executives 40,790 42,004 45,327
Middle management 22,113 23,792 23,139
White collar workers 15,601 15,974 16,079
Skilled blue collar workers 16,280 17,630 16,900
Source: INSEE 2005
JUNE 2009 24

25. E-TRANSACTIONS PROJECT: NORMANDY
5.3. Normandy: building costs
BUILDING COST AND RENTING COST
INDUSTRIAL PLANT
Basic building 580 euros per sqm (m²) / duty free
Building + Air conditionning 760 euros per sqm (m²) / duty free
Building + Air conditionning + Sprinkler 790 euros per sqm (m²) / duty free
OFFICES
Basic building 290 euros per sqm (m²) / duty free
Building + Heating 380 euros per sqm (m²) / duty free
Building + Heating + Spinkler 410 euros per sqm (m²) / duty free
Environment (parking, road, green area) 46 euros per sqm (m²) / duty free
BUILDING (RENTING)
Renting new offices (town centre / average prices) 120 to 140 euros per sqm (m²) / duty free
Renting existing offices (town centre / average prices) 90 to 100 euros per sqm (m²) / duty free
Renting new offices (suburbs / average prices) 100 to 110 euros per sqm (m²) / duty free
Renting existing offices (suburbs / average prices) 90 to 100 euros per sqm (m²) / duty free
Source: local Authorities
JUNE 2009 25

26. E-TRANSACTIONS PROJECT: NORMANDY
ormandy:Normandy: industry in figures
5.4. Industry in figures
Figures as of 1st January 2005
res as of 1st January 2005 Haute Normandie Basse Normandie
Industry (number of establishments) (%) (%)
Region/France Region/France
Food-processing 1,892 2,6 2,145 2,9
Consumer goods 1,295 1,6 1,351 1,6
Clothing, leather 149 1,0 174 1,1
Publishing, printing, reproduction 496 1,5 463 1,4
Pharmaceuticals, perfumes, cleaning products 60 2,4 34 1,4
Household equipment 590 1,9 680 2,2
Automotive 89 3,3 87 3,2
Machinery & Equipment 1,305 2,6 977 2,0
Ship and boat building, aeronautics and rail 43 1,2 93 2,7
Mechanical equipment 907 3,0 629 2,1
Electronic and Electrical equipment 355 2,3 255 1,6
Intermediate goods 1,903 2,5 1,557 2,0
Mineral products 303 1,8 346 2,1
Textile 76 1,3 74 1,3
Wood and paper 240 1,8 286 2,2
Plastics, rubber, chemicals 311 3,4 183 2,0
Metal transformation and Metallurgy 844 3,2 595 2,3
Electronic and Electrical components 129 2,7 73 1,5
Total of Industry (except energy) 6,484 2,3 6,117 2,1
Construction 7,852 2,1 8,234 2,2
Total of Industry and Construction 14,336 2,2 14,351 2,2
Source: INSEE - Sirene File
Normandie Développement - March 2008 5
JUNE 2009 26

27. E-TRANSACTIONS PROJECT: NORMANDY
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From Caen to Paris 2h15 Paris-Orly 50 mn . Paris 1H50
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From Rouen to Paris 1h15 .Main European cities via Lyon . Paris 1h10
.International airports of Paris . CDG Airport
.Bordeaux, Nantes, Rennes . Lyon 3h50
From Le Havre to Paris 1h45 .London . Paris 2h00
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.International airports of Paris
.Bordeaux, Nantes, Rennes
From Cherbourg to Paris 3h30 .Cherbourg-Paris 1h00 Paris 3h00
JUNE 2009 27