The Ontario investment advantage 2013

North America’s number one location Ontario is North America’s number one location for producing vehicles and parts Expansions to Lexus & Toyota assembly plants in 2013 New capital expenditure in Ontario’s auto industry exceeded $2 billion in 2011 Ontario’s auto production continues to grow 2012 Manufacturing costs in Ontario are lower than in the U.S., UK, France, Italy, Germany, Netherlands and Japan Fast and easy access to the United States auto market through NAFTA 2

Two hours flying time to major U.S. cities The Ontario Automotive Communities Alliance Cities

The Ontario Automotive Communities Alliance cities Our Alliance includes some of the largest automotive manufacturing locations in North America 4 Welcome to the Ontario Automotive Communities Alliance

Ontario’s auto industry is on a roll The Conference Board of Canada says auto sector profits in 2011 hit $1 billion – a 10-fold increase in one year The Ontario auto parts industry posted an 80% increase in profits in 2010 Ontario increased its share of the total North American production to 17.3%, an all-time high Ontario continues to benefit from the trade agreements that allow 84% of all vehicles made in Canada to be exported to the giant U.S. market 5 Welcome to the Ontario Automotive Communities Alliance

Made in OACA 6 Welcome to the Ontario Automotive Communities Alliance OEM assembly plantsProducts manufactured in OACA region General Motors Chevrolet Camaro & Equinox, Buick Regal, Cadillac XTS, GMC Terrain Toyota Corolla, Matrix, Rav4 (including some fully electric models) Chrysler Dodge Grand Caravan, Chrysler Town & Country, Volkswagen Routan, Lancia Voyager LexusRX 350 FordEngine assembly plants General Dynamics Land SystemsLight armoured vehicles for military use Oshkosh TrucksSpecialty construction trucks Hino TrucksLight commercial trucks

Solid Infrastructure for auto industry OEMs and parts companies Superior road, rail, air services Top telecomm links Reliable hydro supply Source: Statistics Canada 7 Welcome to the Ontario Automotive Communities Alliance Infrastructure support for business

Ontario is Canada’s largest provincial economy Canada’s exports and imports of merchandise total 58.9% of GDP – making it one of the world’s most open economies Canada has higher accumulated Foreign Direct Investment (FDI) than Brazil, Mexico, and Russia 8 Welcome to the Ontario Automotive Communities Alliance

Canada’s stellar economic base makes it a G7 leader World’s soundest banking system Ranked best place in the world to create a new business Lowest payroll taxes in G7 Lowest taxes on new business investment in G7 Soundness of banks world rank *Standing among 139 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report, ** Standing among 500 world banks based on total assets and long-term credit ratings. Source: Global Finance Magazine, September Welcome to the Ontario Automotive Communities Alliance

Green and intelligent auto research for Ontario’s auto corridor R&D support for auto industry shift to “greener” cars New battery technologies Next generation of bio-fuels Renewable and recyclable plastic parts On-board computer systems Electrochemistry and nano-materials Voice recognition and location-based services Improved energy efficiencies with light-weight materials Welcome to the Ontario Automotive Communities Alliance

Consider Ontario’s R&D advantages Lowest R&D costs in the G7, 12.9% lower than the U.S. 150 schools and labs working on auto research with 127,000 directly employed by the Ontario auto industry Centre for Engineering Innovation – University of Windsor Auto Centre of Excellence – Oshawa Institute of Technology International Composites Research Center – Western University in partnership with Fraunhofer Institute McMaster University Automotive Research Center (MARC) - new $26 million facility to develop hybrid technologies 11 Welcome to the Ontario Automotive Communities Alliance

Education in OACA 12 Welcome to the Ontario Automotive Communities Alliance Universities, Colleges and Research Institutes University of Ontario Institute of Technology Durham College University of Waterloo (WatCAR) Laurier University Conestoga College Western University (Fraunhofer Project Center for Composites Research) Fanshawe College McMaster University (McMaster Automotive Research Center) University of Windsor (Auto21) St. Clair College National Research Council of Canada

Measures to help manufacturers Canadian tariffs on all manufacturing inputs and machines will be zero by 2015 Workforce training programs Competitive business costs Federal and Provincial incentive programs for auto manufacturing R&D tax incentives 13 Welcome to the Ontario Automotive Communities Alliance

Ontario is Canada’s “business province” with a strong entrepreneurial culture It takes only one procedure and five days to register a company In 2012, the federal corporate income tax was 15% – half the U.S. tax rate. For a company earning $100 million in profit, total taxes in Canada will be over 30% less than the U.S. Number of entrepreneurs as a percentage of the working population Source: Statistics Netherlands Welcome to the Ontario Automotive Communities Alliance

Ontario offers excellent location and attitude for doing global business Ontario Automotive Communities Alliance members are two hours or less by road from the U.S. border Recent multi-billion dollar investments in port, rail, road and air transportation One in five Canadians has a mother tongue other than English or French Asian and European languages spoken extensively Canadians have a global mind-set 15 Welcome to the Ontario Automotive Communities Alliance

Ontario residents share in Canada’s excellent quality of life Highest quality of life among G7 countries Clean air, water and land Cultural diversity within a tolerant society Many recreation options Publicly-funded healthcare Commitment to rule of law and a strong justice system Quality of life index Source: IMD, * Rank among 58 economies considered in the World Competitiveness Yearbook Welcome to the Ontario Automotive Communities Alliance

Ontario’s auto industry attracts many of the world’s best companies Detroit 3 – GM, Ford, Chrysler assembly plants Honda, Toyota, Hino Truck Assembly operations International suppliers from Germany, Japan, Korea etc. Successful Canadian suppliers like Magna International, Linamar, Woodbridge Group More than 400 parts companies 17 Welcome to the Ontario Automotive Communities Alliance

Recent Investments 18 Welcome to the Ontario Automotive Communities Alliance $100 million expansion of Lexus assembly plant – Cambridge Increased capacity to 104,000 units/year Production of hybrid version of RX 450h vehicle $68 million investment in GM assembly plant – Oshawa Production of next generation Impala vehicle 43.5% increase in output at Toyota plant – Woodstock Production increased to 178,000 units by adding 2 nd shift OACA has largest producing Toyota plant in North America

Ready to join Ontario’s auto industry? We’re North America’s largest automotive jurisdiction for many good reasons Learn more at Our job is to make your job easier! –Site selection information and assistance –Assistance with business start up in Ontario, Canada –Applications for government incentive programs 19 Welcome to the Ontario Automotive Communities Alliance

2013 The Ontario investment advantage