1. Ireland, the perfect place for any business.Q2 2013 Key Marketplace Messages
2. Why Ireland: Companies are attracted to Ireland for a variety of reasons: Talent Our predominantly young work force is capable, adaptable, mobile and committed to achievement. The median population age is 35, the lowest in the EU. Track Record Over 1000 multinational companies have already chosen Ireland as their strategic European base. Taxation Ireland’s Corporation Tax Rate is 12.5%. Technology Signiﬁcant State Investment in R&D helps ensure Ireland stays at the forefront of technological innovation. Education Education – Ireland leads in the skills race with a higher percentage of 3rd Level Graduates than UK, US and OECD averages. An EIU Benchmarking Competitiveness Report ranks Dublin as the best city in the world for human capital. European Market Companies located in Ireland beneﬁt from barrier-free access to over 500 million consumers in Europe. Europe is still one of the largest markets in the world c 22% of global GDP. English Speaking English is the universal spoken language. The country is a highly developed multi-cultural community and a leading member of the Eurozone. Foreign Direct Investors experience and enjoy a distinctly pro-business environment. Positive attitudes prevail - all the way from the general public, through the media, right up to the most senior levels of Government.
3. Ireland one of the best places in the world to do business; - The Irish economy grew for the second consecutive year in 2012, with GDP increasing by 0.9%. - A signiﬁcant improvement in Ireland’s cost environment is underpinning the return to growth. Costs have come down across the economy, including: property, business services and labour costs. - Companies continue to choose Ireland as one of the best countries in the world to do business. - IDA Ireland client companies recorded their third year of employment growth in 2012 with total employment rising to 152,785. - Trade is the key to our growing economy. The strong export performance over the last two years has led to a current account surplus re-emerging following 10 years of a current account deﬁcit. - The PMI’s (Purchasing Managers Index) signalled growth in both manufacturing and services in 2012. - Ireland is in strong recovery mode and expects to exit its IMF/ EU lending programme this year. - Ireland has a business & government culture receptive to companies looking to internationalise or expand their existing geographical footprint. - Key strengths remain - corporate tax rate 12.5%, young educated workforce, best productivity performance in the EU, strong export performance, critical mass of companies.
4. Competitiveness - Signiﬁcant Improvement in Ireland’s Cost Environment Irish competitiveness has improved signiﬁcantly from the peak in 2007/2008. Business costs including energy, private rents, oﬃce rents, services, construction and labour have all become more competitive. Prime oﬃce rents down 52%, Unit labour costs down 12%. Internal devaluation has occurred - real HCI’s signalling costs back to 2002/2003 levels HCIs 116.00 Prime oﬃce rents down 115.00 114.00Prime headline oﬃce 113.00 rents Dublin (€/m2) 112.00 700 111.00 110.00 109.00 600 108.00 107.00 500 106.00 105.00 400 104.00 103.00 300 102.00 101.00 200 100.00 2008 2009 2010 2011 2012 2013 Jan ’02 Jan ’03 Jan ’04 Jan ’05 Jan ’06 Jan ’07 Jan ’08 Jan ’09 Jan ’10 Jan ’11 Jan ’12 Jan ’13 Prime oﬃce rents are back to €307 per m2 in Q1 2013, from €673 per m2 in Q1 2008 (CBRE). Construction tender prices are stabilising and are now about 30% below peak levels, on a par with prices in 1998. Source: CBRE 2013 Source: Eurostat 2013
5. Ireland is one of only three countries in the Index EU 27 = 0 One of the Most Productive EU where nominal labour costs have fallen. Country Economies in the World Competitiveness increase driven by strong Luxembourg 69.7 Labour productivity per person employed (compared to EU 27) Norway 60.1 productivity growth and weak prices. United States 43.5 Ireland 42 Labour Costs Falling Belgium 27.4 Irish hourly labour costs fell below the Euro area in 2011 Austria 16.3 Country Switzerland 16 Greece France 15.5 Ireland Sweden 15.1 Lithuania Netherlands 11.5 Latvia Denmark 10.7 Estonia Italy 9.7 Portugal Finland 9.6 Spain Euro Area 8.5Netherlands Spain 8.5 Cyprus Germany 6.5 Germany UK 4.2 EA 17 EU 27 0 Italy Japan -5 Malta Iceland -7.1 EU 27 Malta -7.2Luxembourg Cyprus -9.8 Austria Greece -9.9 Slovenia Slovenia -18.2 UK Slovakia -19.7 Denmark Portugal -24.7 Belgium Croatia -24.7 France Czech Republic -25.9 Hungary Turkey -27.5 Slovakia Hungary -29.2 Romania Poland -31.2 Poland Estonia -32.4 Czech Rep Lithuania -35.2 Norway Latvia -37.3 Bulgaria Romania -48.9 Irish productivity is almost c40 points above the EU27 baseline. Sweden Change in Labour Costs 2009-2011 (%) Bulgaria -56.5 -10% -5% 0% 5% 10% 15% 20% 25% Source: Eurostat 2013 Source: Eurostat 2013
6. Economy GDP Returned to Growth in 2011 Real GDP Annual % change 6% 4% 2% 0% -2% Cost of Living Improving Versus the Euroarea Irish and EU 27 inﬂation (annual rate of change %). -4%Annual rate of -6% change % -8% 6.0 2007 2008 2009 2010 2011 2012 2013 (f) 4.0 Economy expanded 0.9% in real terms in 2012, the second year of growth. We expect to see our third straight year of GDP growth in 2013. 2.0 Source: CSO/ Central Bank 2013 0.0 Exporting Sector Key to Recovery -2.0 Current Account Balance % GDP 6 -4.0 4 2007 2008 2009 2010 2011 2012 2013 2 Ireland Eurozone 0 Ireland’s cost of living continues to improve compared to Euro Area, prices in 2011 & 2012 increasing at a lower rate than the EU. -2 Source: Eurostat 2013 -4 -6 -8 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Trade is key to our growing economy. Exports are at a higher level than before the crisis. Source: CSO/IMF 2013
7. Ireland’s Corporate Tax RateCorporate tax rates have been one of the principal elements of the favourable enterprise environmentin Ireland for more than three decades. The Irish tax regime is open and transparent and complies fullywith OECD guidelines and EU competition law. Country Headline Corporation Ireland 12.5% Tax Rates % Hungary 19%- Rate - The Government policy in relation to the 12.5% rate Czech Republic 19% of corporation tax is clear.- Regime - This refers to the additional elements of Ireland’s Netherlands 25% broader Corporation Tax Strategy e.g. 25% R&D tax credit, Denmark 25% an intellectual property (IP) and attractive holding Sweden 22% company regime. Germany 30%- Reputation - Ireland oﬀers a transparent corporation tax UK 23% regime accompanied by a rapidly growing network of international tax treaties with full exchange of China 25% tax information. Spain 30% France 36.10% India 32.445% Japan 38% US 39.5% Brazil 34% Luxembourg 28.8% Switzerland 21% Source: Deloitte 2013
8. World leaders choose Ireland: Competition for inward investment has never been stronger, but Ireland’s national determination to make the country one of the best places in the world to do business is undiminished. On a global scale, Ireland scores extremely well in many of the key areas of importance to investors, helping drive FDI:- The IMD World Competitiveness Yearbook 2012 ranks Ireland 1st in the - In 2012 a Foreign Direct Investment Report from Foreign Direct world for availability of skilled labour, ﬂexibility and adaptability of Intelligence stated that Irish performance far outweighed the workforce and attitudes towards globalisation. The same report also average for Europe in 2011. ranks Ireland 2nd in the world for adaptability and eﬃciency of - Ireland ranks in the top 10 of easiest places in world to do business - companies and large corporations. Ireland ranked particularly well in regards starting a new business,- A study carried out by the Heritage Foundation has found that Ireland ease of getting credit, and protecting investors according to the has currently the freest economy in the euro-zone. World Bank Doing Business 2012 report.- The 2012 IBM Global Location Trends Report highlights that Ireland is - Out of 141 economies, Ireland ranks in the top 10 in the global ranked 1st in the world for inward investment by quality and value and innovation index 2012, scoring well for it’s business environment, 2nd in Europe for the number of inward investment jobs per capita. human capital, FDI inﬂows and market sophistication. Ireland is also top for R&D activities in the same report. - Ireland leads the skills race - in 2012, the highest proportions of- Irish businesses are feeling more optimistic about the economic outlook those aged 30 to 34 having completed tertiary education according than they were 12 months ago and have increased expectations of investing to Eurostat 2013. more in their businesses and hiring new staﬀ this year, according to the - Ireland is ranked in the 10 best educated countries in the world - Grant Thornton International Business Report 2013. 24/7 Wall St/ OECD Education at a Glance report. - Ireland comes in at 12th place in Bloombergs 50 most innovative countries, February 2013. - Ireland forecast to be third most ‘digitally engaged’ country by 2015. Ireland is anticipated “to climb the fastest up the rankings, from 11th place in 2012 to third [in the world] in 2015”.
9. ‘Investors see Ireland’s unique selling proposition as not a singlefactor, but the powerful combination of beneﬁts that Ireland oﬀers’.Economist Intelligence Unit 2012 ‘Ireland has been the greatest and most consistent source of good news over the past year’. Lorenzo Bin Smaghi former ECB Executive Board member 2013
10. Impact of FDI FDI into Ireland is not just stable it is vigorous. Last year was the best in a decade for net job creation from inward investment. Yahoo!, eBay, Facebook, FireEye, Huawei, Vistakon and Sanoﬁ are just some of the household names that were among the biggest inward investments so far in 2013. The importance of FDI to the Irish economy remains highly signiﬁcant. FDI accounts for;- €2.7 billion paid in corporation tax1- 152,785 direct employment2- IDA client companies exported €122.4 billion3- €7.3 billion in payroll4 1 Source: Forfás 2011 Annual Business Survey of Economic Impact and Revenue Commissioners 2 Source: 2012 Forfás Annual Employment Survey 3 Source: 2011 Forfás Annual Business Survey of Economic Impact 4 2011 Forfás Annual Business Survey of Economic Impact To learn more log on to idaireland.com +353 1 603 4000 email@example.com @IDAIRELAND www.linkedin.com/company/ida-ireland www.youtube.com/InvestIreland