1. Multimedia Design Report 2012 A cost/quality comparison (Based on information from the Financial Times fDi Benchmark tool.)

2. Competitiveness of Scotland 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 Multi Media design 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. Project Profile Overview Weighting Model OverviewWeight Presence of an Industrial Cluster35 Labour Availability and Quality30 General Business Environment15 Infrastructure and Accessibility10 Living Environment10 Employee TypeProfile Head count General Management Business Unit Manager1 Project Manager2 Finance Accountant1 Marketing Marketing Executive3 Marketing Manager1 Product Marketing Assistant3 Product Marketing Executive2 Sales Sales Analyst2 Sales Executive4 Senior Sales Executive2 Senior Sales Manager1 Information Technology Senior Designer2 Senior Programmer2 Senior Web Developer2 Software Programmer2 Systems Designer2 Web Developer6 Website Development Manager1 Administration Secretary1

5. fDi Benchmark Matrix The fDi Benchmark Matrix shows the trade off between cost and quality across the 8 selected locations for the Multi-Media Design Centre (NEW) profile. The average cost and quality score is 100 for the selected locations. Source: fDi Intelligence, from the Financial Times Ltd The ‘ideal’ quadrant is the top left (high quality/lower operating costs)

6. fDi Benchmark Matrix The matrix is based on the weighting and cost model for the Multi-Media Design Centre (NEW) 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:  Los Angeles and Paris offer higher quality at lower cost than the average of all the selected locations.  London, New York City, and Tokyo offer higher quality but at higher cost  Berlin and the Scottish Central Belt offer lower cost, but at lower quality The Operating Cost value is in GBP - United Kingdom Pound Source: fDi Intelligence, from the Financial Times Ltd LocationQualitative Score Operating Cost Index Operating Cost Value Berlin76.486.42,907,905 London109.8108.43,646,403 Los Angeles (CA)104.587.82,955,095 New York City118.2111.43,746,450 Paris108.499.63,349,941 Scottish Central Belt83.761.42,064,224 Sydney67.2104.93,529,763 Tokyo131.8140.14,713,610

7. Location Attractiveness Index The location attractiveness index shows the overall attractiveness of the 8 selected locations for the Multi-Media Design Centre (NEW) 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 Los Angeles  Los Angeles and Paris offer an above average level of quality and good value for money as there 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 Multi-Media Design Centre (NEW) is based on the following primary input costs: Labour Cost The average cost across the selected locations for Multi-Media Design Centre (NEW) is GBP 3,364,173 The greatest cost saving between the selected locations is GBP 2,649,384 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 The locations with the lowest operating costs are the Scottish Central Belt and Berlin In terms of the individual cost factors, the locations with the lowest costs are:  Labour Cost: the Scottish Central Belt and London  Property: Berlin and Los Angeles (CA) The values in the table below are in GBP - United Kingdom Pound Source: fDi Intelligence, from the Financial Times Ltd LocationLabour CostProperty Berlin2,707,621200,283 London2,380,5891,265,813 Los Angeles (CA)2,764,746190,347 New York City3,353,853392,597 Paris2,788,247561,693 Scottish Central Belt1,734,086330,138 Sydney3,109,592420,170 Tokyo3,667,3151,046,293

11. Quality Competitiveness The quality competitiveness assessment is based on the weight model for the Multi-Media Design Centre (NEW) 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 Tokyo and NYC Source: fDi Intelligence, from the Financial Times Ltd

12. Quality Competitiveness In terms of the individual quality factors, the locations with the highest scores are:  General Business Environment: London and the Scottish Central Belt  Labour Availability and Quality: Tokyo and New York City  Presence of an Industrial Cluster: Tokyo and Paris  Infrastructure and Accessibility: London and Paris  Living Environment: the Scottish Central Belt and Los Angeles Source: fDi Intelligence, from the Financial Times Ltd Location General Business Environment Labour Availability and Quality Presence of an Industrial Cluster Infrastructure and Accessibility Living Environment Berlin11182611 London183140129 Los Angeles (CA)173631911 New York City17463510 Paris112254129 Scottish Central Belt182324812 Sydney15259711 Tokyo123961118

13. General Business Environment The quality competitiveness breakdown for General Business Environment for the Multi-Media Design Centre (NEW) profile is shown below The locations with the highest overall scores for General Business Environment are London and the Scottish Central Belt Source: fDi Intelligence, from the Financial Times Ltd

14. General Business Environment In terms of the individual quality criteria within General Business Environment, the locations with the highest scores are: Economic growth and stability: Tokyo and New York City Operating risk: London and the Scottish Central Belt Taxation and incentives: London and the Scottish Central Belt Access to finance: New York City and Los Angeles (CA) Regulatory environment: Sydney and the Scottish Central Belt Source: fDi Intelligence, from the Financial Times Ltd Location Economic growth and stability Operating risk Taxation and incentives Access to finance Regulatory environment Berlin 0.272.823.892.082.38 London 0.926.885.242.243.11 Los Angeles (CA) 0.745.205.102.573.02 New York City 1.035.204.962.573.02 Paris 0.902.852.711.952.99 Scottish Central Belt 0.266.885.242.243.11 Sydney 0.313.615.062.294.04 Tokyo 1.572.543.802.052.34

15. Labour Availability and Quality The quality competitiveness breakdown for Labour Availability and Quality for the Multi-Media Design Centre (NEW) profile is shown below The locations with the highest overall scores for Labour Availability and Quality are Tokyo and New York City Source: fDi Intelligence, from the Financial Times Ltd

16. Labour Availability and Quality In terms of the individual quality criteria within Labour Availability and Quality, the locations with the highest scores are: Overall size of labour market: Tokyo and New York City Tightness and competition for labour: Los Angeles (CA) and Berlin Experienced industry-specific staff: Tokyo and New York City Non-experienced staff: New York City and Paris Flexibility of labour regulations: New York City and Los Angeles (CA) Source: fDi Intelligence, from the Financial Times Ltd Location Overall size of labour market Tightness and competition for labour Experienced industry-specific staff Non- experienced staff Flexibility of labour regulations Berlin 1.652.324.013.386.82 London 4.171.646.385.9412.86 Los Angeles (CA) 5.521.904.156.2518.61 New York City 7.191.5210.398.0918.61 Paris 3.671.473.896.855.96 Scottish Central Belt 0.791.532.644.8412.86 Sydney 1.390.845.906.679.86 Tokyo 11.620.7610.645.9710.41

17. Presence of an Industrial Cluster The quality competitiveness breakdown for Presence of an Industrial Cluster for the Multi-Media Design Centre (NEW) profile is shown below The locations with the highest overall scores for Presence of an Industrial Cluster are Tokyo and Paris Source: fDi Intelligence, from the Financial Times Ltd

18. Presence of an Industrial Cluster In terms of the individual quality criteria within Presence of an Industrial Cluster, the locations with the highest scores are: Size of industry: Tokyo and London Track record: London and NYC Research and Development Capabilities: Tokyo and New York City Export competitiveness: New York City and Los Angeles (CA) Industry Specialisation: Tokyo and Paris Source: fDi Intelligence, from the Financial Times Ltd Location Size of industry Track record Research and Development Capabilities Export competitiveness Industry Specialisation Berlin 1.951.642.2410.888.95 London 5.319.672.0910.2112.53 Los Angeles (CA) 1.842.436.1015.915.13 New York City 2.535.107.8115.914.00 Paris 4.054.144.607.4733.98 Scottish Central Belt 1.550.541.3010.2110.13 Sydney 0.642.211.273.821.16 Tokyo 10.132.2816.599.5922.12

19. Infrastructure and Accessibility The quality competitiveness breakdown for Infrastructure and Accessibility for the Multi-Media Design Centre (NEW) profile is shown below The locations with the highest overall scores for Infrastructure and Accessibility are London and Paris Source: fDi Intelligence, from the Financial Times Ltd

20. Infrastructure and Accessibility In terms of the individual quality criteria within Infrastructure and Accessibility, the locations with the highest scores are: Access to major overseas markets: London and Paris Quality of local infrastructure: Tokyo and New York City Quality of utilities: Berlin and Tokyo Quality of ICT infrastructure: Paris and Tokyo Source: fDi Intelligence, from the Financial Times Ltd Location Access to major overseas markets Quality of local infrastructure Quality of utilities Quality of ICT infrastructure Berlin 1.982.374.251.99 London 4.002.023.272.27 Los Angeles (CA) 1.103.063.291.56 New York City 1.853.063.292.01 Paris 3.202.573.512.97 Scottish Central Belt 1.092.023.271.42 Sydney 1.311.513.221.45 Tokyo 1.483.393.902.34

21. Living Environment The quality competitiveness breakdown for Living Environment for the Multi-Media Design Centre (NEW) profile is shown below The locations with the highest overall scores for Living Environment are the Scottish Central Belt and Los Angeles Source: fDi Intelligence, from the Financial Times Ltd

22. Living Environment 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 Los Angeles Attractiveness for international staff: London and Sydney Source: fDi Intelligence, from the Financial Times Ltd Location Cost of living Attractiveness for international staff Berlin 8.282.26 London 5.983.10 Los Angeles (CA) 8.902.15 New York City 7.332.69 Paris 6.392.25 Scottish Central Belt 9.941.84 Sydney 7.363.29 Tokyo 5.812.41

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