1. Bio Pharma Manufacturing in the Scottish Central Belt A cost/quality comparison (Based on information from the Financial Times fDi Benchmark tool – June 2011.)

2. Competitiveness of Scottish Central Belt Value for Money Overall Attractiveness Quality of the Location Annual Operating Costs Quality Competitiveness General Business Environment Labour Availability and Quality Presence of an Industrial Cluster Infrastructure and Accessibility Living Environment Contents

3.  The following analysis is based on fDi Benchmark, an online location benchmarking tool provided by the Financial Times (FT)  fDi Benchmark compared the Scottish Central Belt with the leading locations globally for BioPharma manufacturing based on an analysis of over 55 quality factors and 10 cost factors  A key emphasis was placed on: - Presence of industrial cluster - General business environment - Labour availability and quality - Infrastructure and accessibility  Other factors including the living environment were also assessed Benchmarking Study

4. fDi Benchmark Matrix The fDi Benchmark Matrix shows the trade off between cost and quality across the 6 selected locations for the Bio Pharma Manufacturing in the Scottish Central Belt * profile. The average cost and quality score is 100 for the selected locations. The ‘ideal’ quadrant is the top left (high quality/lower operating costs) Source: fDi Intelligence, from the Financial Times Ltd

5. Project Profile Overview Employee TypeProfile Head count Manufacturing Head of Manufacturing1 Production Manager2 Production Operative (Highly Skilled)20 Production Operative (Skilled)50 Production Operative (Unskilled)12 Quality Control Manager2 Quality Control Specialist4 R&D / Engineering Head of Research and Development5 Laboratory Specialist35 Laboratory Technician8 R&D Team Leader6 Scientist30 Administration Facilities/Office Services Specialist1 Secretary4 Weighting Model OverviewWeight Presence of an Industrial Cluster20 General Business Environment35 Labour Availability and Quality30 Infrastructure and Accessibility10 Living Environment5

6. fDi Benchmark Matrix  The matrix is based on the weighting and cost model for the Bio Pharma Manufacturing in the Scottish Central Belt * profile. The weighting model identifies the key location criteria for the project and the cost model shows the primary cost inputs for the operation. The cost and quality scores are calculated using real data on all the location requirements and cost inputs.  The results indicate the different location solutions for the investor as follows: the Scottish Central Belt offers higher quality at lower cost than the average of all the selected locations Berlin offers higher quality but at higher cost Cork and Manchester offer lower cost, but at lower quality The Operating Cost value is in GBP - United Kingdom Pound LocationQualitative Score Operating Cost Index Operating Cost Value Berlin147.1106.524,903,907 Cambridge90.6106.724,951,290 Cork79.090.621,176,728 Manchester85.699.623,285,341 Scottish Central Belt108.693.521,860,371 Stockholm89.2103.024,081,557 Source: fDi Intelligence, from the Financial Times Ltd

7. Location Attractiveness Index The location attractiveness index shows the overall attractiveness of the 6 selected locations for the Bio Pharma Manufacturing in the Scottish Central Belt * profile. The ratio of quality to cost is 50:50 Source: fDi Intelligence, from the Financial Times Ltd

8. Cost Quality Competitiveness The cost quality competitiveness uses the results of the fDi Benchmark Matrix to show the value for money of each location option. The graph shows that:  The top locations offering the highest quality for a given level of cost are the Scottish Central Belt and Berlin  the Scottish Central Belt and Berlin offer an above average level of quality and good value for money as their relative quality is higher than their relative cost. Source: fDi Intelligence, from the Financial Times Ltd

9. Cost Competitiveness The annual operating cost calculation for Bio Pharma Manufacturing in the Scottish Central Belt * is based on the following primary input costs: Labour Cost, Property and Utilities The average cost across the selected locations for Bio Pharma Manufacturing in the Scottish Central Belt * is GBP 23,376,531 The greatest cost saving between the selected locations is GBP 3,774,562 per annum The values in the chart below are in GBP - United Kingdom Pound Source: fDi Intelligence, from the Financial Times Ltd

10. Cost Competitiveness LocationLabour CostPropertyUtilities Berlin17,292,1381,912,0855,699,683 Cambridge11,391,6514,557,0409,002,597 Cork12,917,9921,695,9026,562,832 Manchester11,178,7903,103,9539,002,597 Scottish Central Belt10,008,0552,849,7179,002,597 Stockholm15,957,1583,497,7364,626,662 The locations with the lowest operating costs are the Scottish Central Belt and Manchester In terms of the individual cost factors, the locations with the lowest costs are:  Labour Cost: the Scottish Central Belt and Manchester  Property: Berlin and Cork  Utilities: Stockholm and Berlin The values in the table below are in GBP - United Kingdom Pound Source: fDi Intelligence, from the Financial Times Ltd

11. Quality Competitiveness The quality competitiveness assessment is based on the weight model for the Bio Pharma Manufacturing in the Scottish Central Belt * profile which assesses each location across the following location factors: General Business Environment, Labour Availability and Quality, Presence of an Industrial Cluster, Infrastructure and Accessibility and Living Environment. The average score for the selected locations is 100. The locations with the highest quality scores are Berlin and the Scottish Central Belt Source: fDi Intelligence, from the Financial Times Ltd

12. Quality Competitiveness Location General Business Environment Labour Availability and Quality Presence of an Industrial Cluster Infrastructure and Accessibility Living Environment Berlin326136125 Cambridge331426125 Cork34171675 Manchester38239105 Scottish Central Belt36402085 Stockholm362513105 In terms of the individual quality factors, the locations with the highest scores are:  General Business Environment: Manchester and Stockholm  Labour Availability and Quality: the Scottish Central Belt and Berlin  Presence of an Industrial Cluster: Berlin and Cambridge  Infrastructure and Accessibility: Berlin and Cambridge  Living Environment: Berlin and the Scottish Central Belt Source: fDi Intelligence, from the Financial Times Ltd

13. General Business Environment The quality competitiveness breakdown for General Business Environment for the Bio Pharma Manufacturing in the Scottish Central Belt * profile is shown below The locations with the highest overall scores for General Business Environment are Manchester and Stockholm Source: fDi Intelligence, from the Financial Times Ltd

14. General Business Environment Location Economic growth and stability Operating risk Taxation and incentives Access to finance Regulatory environment Berlin 11.074.135.593.467.65 Cambridge 3.708.727.193.5410.34 Cork 3.985.6710.012.4111.75 Manchester 8.638.727.193.5410.34 Scottish Central Belt 6.178.727.193.5410.34 Stockholm 8.456.044.844.5112.59 In terms of the individual quality criteria within General Business Environment, the locations with the highest scores are: Economic growth and stability: Manchester and Berlin Operating risk: Manchester and the Scottish Central Belt Taxation and incentives: Cork and the Scottish Central Belt Access to finance: Stockholm and the Scottish Central Belt Regulatory environment: Stockholm and Cork Source: fDi Intelligence, from the Financial Times Ltd

15. Labour Availability and Quality The quality competitiveness breakdown for Labour Availability and Quality for the Bio Pharma Manufacturing in the Scottish Central Belt * profile is shown below The locations with the highest overall scores for Labour Availability and Quality are the Scottish Central Belt and Berlin Source: fDi Intelligence, from the Financial Times Ltd

16. Labour Availability and Quality Location Overall size of labour market Tightness and competition for labour Experience d industry- specific staff Non- experience d staff Flexibility of labour regulations Berlin 14.334.2335.893.703.00 Cambridge 1.681.431.264.445.30 Cork 1.384.052.194.824.96 Manchester 6.963.392.954.445.30 Scottish Central Belt 6.902.8020.224.445.30 Stockholm 4.762.099.485.173.13 In terms of the individual quality criteria within Labour Availability and Quality, the locations with the highest scores are: Overall size of labour market: Manchester and Berlin Tightness and competition for labour: Berlin and Cork Experienced industry-specific staff: Berlin and the Scottish Central Belt Non-experienced staff: Stockholm and Cork Flexibility of labour regulations: the Scottish Central Belt and Manchester Source: fDi Intelligence, from the Financial Times Ltd

17. Presence of an Industrial Cluster The quality competitiveness breakdown for Presence of an Industrial Cluster for the Bio Pharma Manufacturing in the Scottish Central Belt * profile is shown below The locations with the highest overall scores for Presence of an Industrial Cluster are Berlin and Cambridge Source: fDi Intelligence, from the Financial Times Ltd

18. Presence of an Industrial Cluster Location Industry Specialisation Size of industry Track record Research and Development Capabilities Export competitiveness Berlin 25.304.571.841.563.19 Cambridge 4.026.002.240.9812.97 Cork 3.684.570.170.927.03 Manchester 3.051.140.400.983.28 Scottish Central Belt 7.798.860.560.981.30 Stockholm 4.154.860.790.572.22 In terms of the individual quality criteria within Presence of an Industrial Cluster, the locations with the highest scores are: Size of industry: Berlin and the Scottish Central Belt Track record: the Scottish Central Belt and Cambridge Research and Development Capabilities: Cambridge and Berlin Export competitiveness: Berlin and Cambridge Industry Specialization: Cambridge and Cork Source: fDi Intelligence, from the Financial Times Ltd

19. Infrastructure and Accessibility The quality competitiveness breakdown for Infrastructure and Accessibility for the Bio Pharma Manufacturing in the Scottish Central Belt * profile is shown below The locations with the highest overall scores for Infrastructure and Accessibility are Berlin and Cambridge Source: fDi Intelligence, from the Financial Times Ltd

20. Infrastructure and Accessibility Location Access to major overseas markets Quality of local infrastructure Quality of utilities Quality of ICT infrastructure Berlin 7.243.381.270.50 Cambridge 7.852.690.960.41 Cork 3.941.570.910.34 Manchester 6.252.690.960.45 Scottish Central Belt 4.432.690.960.34 Stockholm 6.291.970.950.96 In terms of the individual quality criteria within Infrastructure and Accessibility, the locations with the highest scores are: Access to major overseas markets: Cambridge and Berlin Quality of local infrastructure: Berlin and the Scottish Central Belt Quality of utilities: Berlin and the Scottish Central Belt Quality of ICT infrastructure: Stockholm and Berlin Source: fDi Intelligence, from the Financial Times Ltd

21. Living Environment The quality competitiveness breakdown for Living Environment for the Bio Pharma Manufacturing in the Scottish Central Belt * profile is shown below The locations with the highest overall scores for Living Environment are Berlin and Stockholm Source: fDi Intelligence, from the Financial Times Ltd

22. Living Environment Location Cost of living Attractiveness for international staff Berlin 2.342.86 Cambridge 2.322.52 Cork 2.562.11 Manchester 2.722.16 Scottish Central Belt 2.812.22 Stockholm 2.243.13 In terms of the individual quality criteria within Living Environment, the locations with the highest scores are: Cost of living: the Scottish Central Belt and Manchester Attractiveness for international staff: Berlin and Stockholm Source: fDi Intelligence, from the Financial Times Ltd

23. To realise the potential, please contact: Scottish Development International 150 Broomielaw, Atlantic Quay Glasgow G2 8LU Scotland, UK T +44 141 228 2828 F +44 141 228 2089 www.sdi.co.uk Worldwide offices in: Americas, Europe, Middle East, Africa and Asia Pacific