1. The Ontario Technology Corridor advantage for digital media and ICT August 2012 www.ontariotechcorridor.ca

2. 2 Welcome to the Ontario Technology Corridor If yours is an Information Communications Technology (ICT) or digital media company seeking to expand or relocate into the North American market, you need to consider Ontario, Canada. The Ontario Technology Corridor is North America’s gateway to innovation, offering:Ontario Technology Corridor A deep talent base Excellent growth opportunities A low-risk business environment Generous targeted tax credits A strategic geographic location Why the Ontario Technology Corridor?

3. 3 A two-hour flight from many major U.S. cities

4. 4 Welcome to the Ontario Technology Corridor Zoom in on the Ontario Technology Corridor

5. Greater Toronto Area and Ottawa Region Population:6.1 million Companies:3,362 Workforce:148,000 Population:1.3 million Companies:1,922 Workforce:75,000 5 Welcome to the Ontario Technology Corridor

6. Waterloo Region and City of London Population:550,000 Companies:880 Workforce:30,000 Population:450,000 Companies:350 Workforce:8,000 6 Welcome to the Ontario Technology Corridor

7. Niagara Region Population:442,908 Companies:470 Workforce:3,500 7 Welcome to the Ontario Technology Corridor

8. Top 10 reasons to invest in Ontario 1. Stable, highly talented, motivated workforce 2. Access to the North American market (NAFTA) 3. Openness to diversity and multiculturalism 4. Economic engine of Canada 5. World class research institutions 6. Innovation leadership 7. Low risk business environment 8. Superior infrastructure 9. Business incentives 10. Quality of life 8 Welcome to the Ontario Technology Corridor

9. Ontario offers one of the World’s most educated populations 9 Welcome to the Ontario Technology Corridor % Population Age 25-64 with Tertiary Level Education

10. Ontario has 44 world class universities and colleges – Canada’s largest talent pool University of Waterloo Wilfred Laurier University University of Toronto Ryerson University York University Brock University University of Western Ontario (Western) University of Ontario Institute of Technology Ontario College of Art & Design University Carleton University University of Ottawa Conestoga College Centennial College George Brown College Humber College Seneca College Sheridan College Niagara College Fanshawe College Durham College Algonquin College La Cité collégiale Stratford Institute 10 Welcome to the Ontario Technology Corridor Ontario’s internationally respected education system includes over 400 registered private career colleges, 20 public universities and 24 colleges. Among these are:

11. Ontario digital media related programs 11 Welcome to the Ontario Technology Corridor

12. Ontario – the innovation society! Gnomeo & Juliet created by Toronto-based Starz animation is the largest animated feature ever produced in Canada. Ottawa: Algonquin College in cooperation with Carleton University offers Interactive Multimedia and Design (IMD), a 4 year degree program Toronto: Ryerson University’s Digital Media Zone in its first two years fostered 45 companies and 438 jobs Waterloo Region: Communitech HUB, the provincially funded ($26 million) Ontario Centre of Excellence for Digital Media 12 Welcome to the Ontario Technology Corridor

13. The Ontario Technology Corridor is the economic engine of Canada The OTC represents 92% of the Province’s ICT industry Key Sectors include: software development and services, telecom equipment, digital media, microelectronics Ontario has about 1,000 interactive digital media companies that employ 16,000 people and create $1.5 billion in revenue Ontario's entertainment and creative industries support 300,000 jobs and contribute $12.2 billion to the province’s GDP 13 Welcome to the Ontario Technology Corridor

14. Home to 6,400 ICT companies Greater Toronto Area: Ubisoft, Tecmo Koei Canada Inc., Capcom Interactive Canada Inc., Zynga Inc., Arkadium Inc. Ottawa: Fuel Industries Inc., Magmic Inc., bitHeads Inc., which includes HeadGames and Playbrains Inc. Waterloo Region: Research in Motion Ltd. (Blackberry), Open Text Corp., Google Inc., SAP Canada Inc., Electronic Arts Inc. Niagara: Keyframe Digital Productions Inc., morro images Inc., nGen (Interactive Media Generator) London: Digital Extremes Ltd., Big Blue Bubble Inc., Antic Entertainment Inc. 14 Welcome to the Ontario Technology Corridor

15. Canada – a sound choice for new investment and trade Foreign Direct Investment (FDI) into Canada has more than doubled in the past decade By 2012 the federal corporate income tax falls from 18% to 15% – the lowest in the G7 By 2015 tariffs on all manufacturing inputs reduced to zero, creating a national Free Trade Zone Most of Canada’s population of 33.7 million people live within 200 kilometers of the United States 15 Welcome to the Ontario Technology Corridor

16. Canada has a low-risk business and regulatory environment Canada also has: World’s soundest banking system Lowest taxes on new business investment in the G7 Low Inflation and low interest rates And: It takes only one procedure and five days to register a new company in Canada Forbes Magazine ranked Canada #1 for business in a study ranking 134 countries (October 2011 report) 16 Welcome to the Ontario Technology Corridor

17. Ontario offers highly favourable tax treatments for R&D In Ontario a broader range of costs qualify for deductions than in many jurisdictions When tax credits are factored in, $100 in R&D expenditures can be reduced to about $57 or $39 for small businesses Five of the world’s ten biggest ICT firms conduct R&D in Ontario: GE, Siemens, Intel, Cisco and IBM 17 Welcome to the Ontario Technology Corridor

18. Ontario’s digital media incentives and targeted tax credits include: Ontario Business Research Institute Tax Credit (OBRITC) Ontario Innovation Tax Credit Ontario Research & Development Tax Credit Ontario Computer Animation & Special Effects Tax Credit Ontario Interactive Digital Media Tax Credit OMDC Interactive Digital Media Fund OMDC Ontario Sound Recording Tax Credit More information More information at www.ontariotechcorridor.ca 18 Welcome to the Ontario Technology Corridor

19. Ontario targeted incentives at a glance SUPPORT PROGRAMS/ INCENTIVES CRITERIAHOW MUCH Ontario Business Research Institute Tax Credit (OBRITC) Must incur qualified expenditures in respect of scientific research and experimental development (SR&ED) under an eligible contract with an eligible research institute (ERI) 20% refundable tax credit for SR&ED expenditures incurred in Ontario under an eligible contract with an ERI. The maximum amount a corporation can claim is $4 million Ontario Innovation Tax Credit Must carry on eligible SR&ED in Ontario 10% refundable tax credit for qualifying. Can be combined with OBRITC (above) for a total of 30% Ontario Research and Development Tax Credit Must carry on eligible SR&ED in Ontario A Canadian-controlled private corporation (CCPC) can earn an investment tax credit (ITC) of 35% up to first $3 million of qualified expenditures for SR&ED and 20% for any excess amount 19 Welcome to the Ontario Technology Corridor

20. Digital media incentives in Ontario SUPPORT PROGRAMS/ INCENTIVES CRITERIAHOW MUCH Ontario Computer Animation & Special Effects Tax Credit Computer animation and special effects activities in film or TV production 20% refundable tax credit for eligible labour expenditures Ontario Interactive Digital Media Tax Credit Labour, marketing and distribution expenditures for the creation of interactive digital media products 40% of eligible labour, marketing and distribution expenditures OMDC Interactive Digital Media Fund Labour expenditures and eligible marketing and distribution expenses claimed with respect to interactive digital media products A non-refundable contribution of up to $150,000 to a maximum of 50% of the project budget to create a market-ready interactive digital media content product OMDC Ontario Sound Recording Tax Credit Eligible production and marketing costs incurred by a qualifying corporation with respect to an eligible Canadian sound recording 20% refundable tax credit for eligible sound recording company for production and marketing costs with respect to an eligible Canadian sound recording 20 Welcome to the Ontario Technology Corridor

21. Ontario’s NAFTA advantage What this means for your company: 450 million people in North America’s $17 trillion market Either preferential (reduced) or eliminated tariff rates for North American goods traded between Canada, the U.S. and Mexico Protection of investment and intellectual property (IP) laws and regulations are enforced equally among all trading partners Skilled ICT suppliers 21 Welcome to the Ontario Technology Corridor

22. Ontario’s NAFTA advantage Welcome to the Ontario Technology Corridor 22 What this means for your company: New market opportunities New partnerships New customers New investors New links in supply and production chains New choices for consumers Economic growth High standards of living

23. Excellent infrastructure of international airports Toronto Pearson Toronto Billy Bishop City Ottawa Macdonald-Cartier Region of Waterloo London St. Catharines/Niagara District Hamilton John Munro 23 Welcome to the Ontario Technology Corridor

24. Ontario – international destination, world class convention facilities Ottawa Convention Centre – 192,000 square feet of usable space, a bold, modern design University of Waterloo Conference Centre Scotiabank Convention Centre, located just 1640 feet from the Horseshoe Falls, Niagara Metro Toronto Convention Centre and The International Centre, adjacent to the airport London Convention Centre – tiered 300 seat theatre 24 Welcome to the Ontario Technology Corridor

25. Well developed highway, rail, and shipping 25 Welcome to the Ontario Technology Corridor Largest and busiest freeway network in Canada Efficient 400-series highways and municipal expressways Ports connect major manufacturing, processing, transportation services and logistics expertise

26. Established mass transit system 26 Welcome to the Ontario Technology Corridor GO Transit interregional public transit system carries 50 million/passengers/year The Corridor, a VIA Rail passenger train service area The Toronto Transit Commission’s (TTC) subway system, linked with buses, hybrid buses and streetcars carries ~ 1.6 million riders/day

27. Highly integrated telecommunications network 27 Welcome to the Ontario Technology Corridor One of the most extensive and integrated telecommunication networks in North America The largest “free calling” area in North America 100% Digital Telecom Infrastructure High speed data services Internet connectivity E-business services

28. Niagara is one of the busiest Canada-U.S. borders 28 Welcome to the Ontario Technology Corridor 2 nd busiest point of entry between Canada and the U.S., the world’s largest trading relationship Four efficient bridges for U.S. border crossings The Welland Canal offers direct shipping access from the Atlantic Ocean

29. Openness to diversity and multiculturalism 29 Welcome to the Ontario Technology Corridor

30. Excellent culture and sports facilities 30 Welcome to the Ontario Technology Corridor

31. Source: Mercer Human Resource Consulting, 2009 Index: New York City = 100 Very high quality of life 31 Welcome to the Ontario Technology Corridor

32. Safe, stable, and well governed 32 Welcome to the Ontario Technology Corridor Canada is a constitutional monarchy Canada has a three-tiered system with Federal, Provincial, and Municipal levels of government Municipal governments are under provincial jurisdiction and governed by an elected mayor and council

33. Ontario cities and towns offer a superior lifestyle Canada has the most liveable destinations in the world! Economist Intelligence Unit (EIU) Low crime Highly stable Highly developed infrastructure 33 Welcome to the Ontario Technology Corridor

34. The Ontario Technology Corridor advantage for digital media and ICT August 2012 www.ontariotechcorridor.ca