THE ROAD TO SUCCESS Invest Toronto 2013 Annual Report 3 Message from the President “Frankly, we were a bit overwhelmed, being Table 5 Invest Toronto’s Business a U.S. firm trying to open a Toronto office. of Investment Lifecycle 27 The End of a Long Road Invest Toronto was incredible in bringing Contents 36 Collaborating for Success 38 Invest Toronto’s Partners all the right people to us. 42 Invest Toronto Board of Directors and Staff From legal and financial services to real estate and employee recruitment support, Invest Toronto 44 Invest Toronto Financial coordinated everything. It was like a business start-up concierge service. I tell anyone that will Statements listen how lucky Toronto is to have a service and great people like this. We’re proud to say our office is open, we’re fully incorporated, and we’re well on our way to growing in Toronto.”
DAN GLIATTA, MANAGING DIRECTOR, THE CARGO AGENCY INC.
1 2 Invest Toronto 2013 Annual Report Message from the President
MESSAGE FROM THE PRESIDENT
Invest Toronto works hard to provide But what makes Toronto such a Throughout the process, we work Why should you expand your it easier for foreign innovators to a comprehensive concierge service to magnet for corporate powerhouses closely with our shareholder, the City business to Toronto? The answer set up their companies in Canada. businesses looking to expand into and entrepreneurial ventures? Why of Toronto, in addition to our partners is simple. Toronto is the number In addition, the federal government Toronto, Canada’s economic heartland. do businesses choose to expand in the provincial and federal one city in the world in which people of Canada, along with the Ontario 2013 was an exciting year for into the North American market governments, and other agencies would like to live and work (The government, have announced the Invest Toronto, as we welcomed new through Toronto? And what makes such as the Greater Toronto Marketing Reputation Institute, 2013). launch of the Northleaf Venture investments into the City of Toronto them choose Toronto over New York, Alliance, and the Toronto Financial It has had the soundest banking Catalyst Fund, a new “fund of funds” and celebrated the city’s many San Francisco, Boston, or Chicago? Services Alliance, to provide system in the world for six consecutive with a target of $300 million that achievements. In 2013, Toronto was These are the questions global customized client services in order years (World Economic Forum, will invest in early and mid-stage recognized by The Financial Times, business leaders grapple with as to make the experience of establishing 2008 - 2013) and the second most technology companies. We know receiving eight fDi American Cities they make a decision to invest in a business in Toronto an easy and business friendly environment in Toronto is the best place for business of the Future 2013/14 awards at a new market. They ask themselves, positive one. the Americas (fDi American Cities today, and in the future. We know an awards ceremony in Philadelphia where is the best place to expand my of the Future, 2013/14). how to help businesses succeed in in October. Invest Toronto was business? How do I choose a location? In 2013, Invest Toronto worked to Toronto. We have our finger on the also acknowledged as the What is the business culture like? perfect our Business Investment Canada’s workforce is the most pulse of this thriving, vibrant city, Toronto is one of the foremost Canadian Economic Development What are the costs of doing business? Lifecycle and continued to build highly educated in the world and we can connect businesses to the cities in the world in which Organization that most effectively And how do I find the right talent on our relationships with our (Organization for Economic opportunity it holds. As the largest people seek to work and live. markets our metropolitan region and resources to make my business clients and partners. We recognize Co-operation and Development, city in Canada and the fourth largest The international business by the Development Counsellors a success? the importance of the Business 2013), and Toronto’s skilled talent in North America, Toronto truly is a community sees potential International (DCI) in December. Investment Lifecycle and the value is the most diverse in the country city of the future, and that future is in in Toronto, and is seizing DCI agrees that one of the best This is where the Invest Toronto Invest Toronto offers to our clients (Statistics Canada, 2013). Toronto our hands. Invest to succeed. opportunities to be part of this methods to engage international team comes in. The answers to all of at each stage of the process. As we is a flourishing hub for start-ups, Invest Toronto. investors is through business-to- these questions are found on our reflect on 2013 and work to build rivaling Silicon Valley for its talent growing, vibrant metropolis business (B2B) meetings. Invest website, in our marketing materials, new relationships in 2014, we will in the technology realm. The City of in the heart of North America. Toronto promotes Toronto to and in the customized information continue to refine this process in Toronto values its entrepreneurs by international businesses primarily packages that we prepare for our order to provide the best customer providing a supportive tax and through in-market B2B meetings clients. We answer these questions service to our international regulatory environment, and fostering during our investment missions to every day, and work one-on-one with clients. It is a process that our team start-up communities through strategic markets. This year, Invest each company that expresses an is committed to, as we assist with incubators and accelerators such as Toronto conducted three missions interest in expanding their business making very difficult decisions, and the Toronto Business Development to China, and one mission each to into Toronto. This process can take a work hard to make the daunting Centre, the Digital Media Zone at Renato Discenza India and Europe to promote couple of months, or a couple of task of establishing a business in Ryerson University, and the MaRS President and CEO awareness of Toronto as an ideal years, as each of our clients is a foreign country a little easier. We Discovery District. The Canadian investment destination for both small unique and has specific needs. This take care of the “how.” Our great government also launched the businesses and large corporations. process is what we refer to as our city itself takes care of the “why.” Start-Up Visa in April 2013 to make Business Investment Lifecycle.
3 4 Invest Toronto 2013 Annual Report
INVEST
TORONTO’S PROSPECT BUSINESS CLOSE INVESTMENT LIFECYCLE
The road to success for Invest and can make a decision to invest general economic conditions of both Toronto is driven by our Business in Toronto and move forward with the their home and international Investment Lifecycle. We work process within a year. However, markets. When the global economy directly with foreign businesses that companies from countries such as is unstable, foreign companies have an interest in expanding into China or India may take several are less likely to venture into a new the North American market and years to make their ultimate decision market. According to the United encourage them to consider Toronto to invest in Toronto. These clients Nations, in 2013, global Foreign QUALIFY as their access point. In order to may wish to meet with officials from Direct Investment (FDI) flows to PROPOSE assist companies from the moment Invest Toronto, the City of Toronto, developed countries remained at they make a decision to expand, to the Province of Ontario, or the a historically low share of global the moment that they open doors Government of Canada several total FDI flows (39 per cent) for the to their new headquarters, subsidiary, times in order to build a business second consecutive year. They manufacturing centre, or office relationship based on trust and increased by 12 per cent to US$576 in Toronto, we follow a Business respect before pursuing a Toronto billion, but only to 44 per cent of Investment Lifecycle that can last location. With companies such their peak value in 2007. FDI to the from several months to several as these, the Business Investment European Union (EU) increased, years. The duration of the Business Lifecycle can take up to several while flows to the United States Investment Lifecycle varies years as the Investment Services team continued their decline. Despite according to each client, the nature meets with them in-market, invites this global trend, FDI inflows to of their business, and the business them to visit Toronto to learn more Canada increased by 49 per cent culture from their home country. about the city’s value proposition in 2013 across a broad range of Services team highlights to our Securing a new foreign investment quality and timely service to our For instance, a company from the first-hand, and works through each industries, and this can be attributed international clients. In large part, is an involved process that clients that is specific to their needs. United States or Europe that is looking stage of the Business Investment to Canada’s economic strength this was due to the strength of the begins with the identification of We work to effectively tell Toronto’s to expand into Canada might move Lifecycle in greater detail as the and stability during the recession. Canadian financial services sector, prospective clients through business story and help shape a through the process rather quickly, company becomes familiar with headquartered in Toronto, and the research and concentrated lead client’s investment decision. having a similar business culture and the Toronto business environment. Fortunately, Toronto was better able diversity of the city’s economy. As a generation activities. Whether economy to ours. Some companies to weather the impacts of the result, Toronto was successful in the Business Investment Lifecycle There are four stages to the Business from cities in New Zealand or An additional factor facing a foreign economic downturn and recession attracting FDI into the city in 2013 takes months or years to complete, Investment Lifecycle: Australia find quite a few similarities investor’s decision to expand their than most cities around the world, despite the downturn in FDI in our Investment Services team is there Prospect, Qualify, Propose, and Close. between their market and Toronto’s, business to Toronto involves the and this is a fact that our Investment most other developed countries. every step of the way providing
5 6 Invest Toronto 2013 Annual Report
BUSINESS INVESTMENT LIFECYCLE STAGE 1
PROSPECT Invest Toronto pursues and engages global businesses that have expressed an interest in expanding their operations into North America.
During the Prospect Stage of the that enter the Prospect Stage through Business Investment Lifecycle, a combination of our own research, Invest Toronto actively markets our partners at the City of Toronto, the Toronto to global businesses, Province of Ontario and Government focusing on companies that have of Canada (including in-market posts), expressed a broad interest in lead generators, past client referrals, expanding their operations into our network of private sector partners, Toronto or North America. In contacts via the Invest Toronto website, addition, Invest Toronto targets and in-market networking events. businesses that may not have expressed an explicit interest Clients that have entered the in North America, but which Prospect Stage are provided with should consider Toronto as an information about Toronto’s investment destination given business value proposition, sector- the close alignment between specific profiles, and a detailed a company’s global business understanding of the services and interests and Toronto’s distinct targeted value that Invest Toronto value propositions. Invest can provide. Toronto learns about companies
7 8 Invest Toronto 2013 Annual Report Business Investment Lifecycle Prospect
Invest Toronto participates Invest Toronto with representatives from the China Construction Bank Invest Toronto visits a manufacturer in China Invest Toronto with our in-market representative in China, Tractus Asia in a conference in China
In-market Missions In 2013, Invest Toronto Invest Toronto’s outbound missions to In 2013, Invest Toronto conducted conducted six overseas strategic markets are important at missions to China, India, and Europe. missions to key markets to every stage of the Business Investment Our provincial and federal partners, generate new investment Lifecycle, but are particularly the Province of Ontario and the prospects. Through our helpful during the Prospect Stage when Government of Canada, are critical China in-market missions, Invest Toronto is seeking out new to our efforts, as they have the opportunities. Our in-market missions presence and resources in market The importance of building and between people doing business. Chinese investors’ consideration, we gain a more in-depth provide an opportunity to hold to be able to obtain a better maintaining ties with Chinese business With a population of 1.4 billion Invest Toronto works hard to build understanding of the B2B meetings with foreign business understanding of the markets and leaders is crucial to establishing and a GDP of US$8.23 trillion, China on our key partnerships. Along opportunities and unique leaders, government representatives, business trends in countries across partnerships with Chinese companies. is expected to replace the United with our in-market representative, attributes of each target and interested investors in their home the globe. When the Invest Toronto That is why Invest Toronto has States as the world’s biggest economy Tractus Asia, Invest Toronto has market. Our missions also countries to identify companies team conducts B2B meetings prioritized the Chinese market, and in just eight years, according to the been working diligently to cultivate allow us to build important that are interested in expanding into overseas, we invite the provincial and has made multiple return trips to Standard Chartered Bank (2013). In these strategic relationships, relationships and to the North American market. We federal trade commissioners to join different regions in China each year 2012, Foreign Direct Investment (FDI) build trust, and continue to support increase awareness of discuss Toronto’s value proposition, us. Their knowledge of the local since our inaugural start in 2010. outflow from China reached our Chinese clients by maintaining Toronto’s global standing. learn more about a company’s market is a valuable resource, which Relationship-building is a fundamental US$62.4 billion, representing regular contact and a solid presence specificneeds, and determine the allows them to both identify new practice in Chinese business culture a 45 per cent increase over 2011. in the Chinese market. Invest type of information they would investment prospects, and conduct commonly known as “Guanxi,” and In order to capture these investment Toronto has been to China a total require to make an informed decision in-market follow up. Chinese business leaders value this opportunities and ensure that of seven times, returning three about an investment in Toronto. effort to develop personal connections Toronto remains at the forefront for times in 2013 alone.
9 10 Invest Toronto 2013 Annual Report Business Investment Lifecycle Prospect
MEETINGS IN CHINA BY SECTOR
FINANCIAL SERVICES, 27.50% FOOD AND BEVERAGE, 5% “A series of seminars to engage Indian Small GREEN/CLEANTECH, 15% MINING, 5% and Medium Sized Enterprises (SMEs) interested INFORMATION AND COMMUNICATIONS AUTOMOTIVE, 2.5% in expanding operations into North America via TECHNOLOGY, 12.5% HOSPITALITY, 2.5% Toronto, Ontario are scheduled to take place on MANUFACTURING, 12.5% LIFE SCIENCES, 2.5% May 6 & 7 in Ahmedabad and Pune, respectively. BUSINESS/PROFESSIONAL Organized jointly by the Ontario International SERVICES, 5% REAL ESTATE, 2.5% Marketing Centre in India and Invest Toronto, FASHION AND APPAREL, 5% TRANSPORTATION, 2.5% the seminars will guide Indian SMEs to set up operations in Toronto, access facilities and incentives, and also establish networks that will enable them to capitalize on global business opportunities from Toronto.”
NEWS TRACK INDIA, APRIL 24, 2013
As part of a Consider Canada City first partnership with the federal Alliance (CCCA) delegation, Invest government through the ICCI program, Toronto travelled to China in April and we are pleased to have had the 2013 visiting the cities of Shenzhen opportunity to expand our outreach to and Beijing, as well as the Hong Kong new Chinese companies with the Special Administrative Region. The help of this initiative. CCCA is a coalition of 12 investment attraction/economic development Toronto now has the largest Chinese agencies from Canada’s largest cities population in all of Canada, according India that work together to promote to Statistics Canada (2013). There Canada as an ideal destination are over 600,000 people of Chinese In order to ensure Invest Toronto growing economies in the world for global trade and investment. ethnic origin living in the Toronto maintains a regular presence in and an important economic partner MEETINGS IN INDIA Invest Toronto took advantage area, and of those, nearly 440,000 India, we conducted a return mission for Canada. Inbound Foreign Direct of our time in-market, scheduling speak a Chinese dialect. Mandarin in May 2013, visiting the cities of Investment from India to Canada an additional week of meetings is the second most spoken language Ahmedabad, Pune, and Mumbai, and reached US$4.4 billion in 2011, COMPANIES with new prospects identified by in the Toronto region. holding B2B meetings with both new and this number is expected to grow IN our in-market representative and existing clients. For this mission, as the two countries build deeper 80 ATTENDANCE and paying visits to existing clients Invest Toronto partnered with the economic ties. Canada and India to offer our continued support Ontario International Marketing Centre have longstanding bilateral B2B for their expansion initiatives. MEETINGS IN CHINA (OIMC) in Mumbai to co-host relations, built upon shared traditions MEETINGS The Invest Toronto team also visited investment seminars in Ahmedabad of democracy, pluralism, and strong 8 the cities of Beijing, Guangdong, and Pune. An additional investment interpersonal connections. In addition, Shenzhen, Guangzhou, Foshan, and B2B seminar was held in Mumbai, which Canada and India launched free trade SEMINARS Dongguan in June and October MEETINGS was co-hosted by the Ontario talks in 2010, and are working toward 2013. Invest Toronto had applied 41 government, the Bombay Stock a signed comprehensive agreement 3 for and received funding from the Exchange, and Invest Toronto. which could triple bilateral trade to Invest Canada – Community Initiatives US$15 billion by 2015. VISIT VISITS (ICCI) funding program for our With a population of 1.2 billion and 1 lead generation initiatives in China 3 GDP of US$4.735 trillion, India for 2013. This was Invest Toronto’s continues to be one of the fastest
11 12 Invest Toronto 2013 Annual Report Met faceperum faccus aperum que
fDi American Cities of the Future
The fDi American Cities of the Future Awards 2013/14 were presented to Invest Toronto at the 2013 International Economic Development Council Annual Conference in Philadelphia, Pennsylvania on October 7, 2013.
fDi Magazine, a division of the Financial Times Ltd., is the largest Foreign Direct Investment (FDI) centre of excellence globally, specializing in all areas relating to FDI and investment promotion. Invest Toronto staff at a B2B match-making session in Amsterdam
Invest Toronto Ranks as the Best Economic Development Organization in Canada
In their study entitled “Best Canadian EDOs” (December 2013), the DCI Development Counsellors International (DCI) ranked Invest Toronto first @AboutDCI among Economic Development Organizations in Canada that most effectively Europe market their Metro Regions. The same survey prioritized one-on-one @Invest_Toronto is considered Recognizing the massive opportunity tariffs for Canadian goods entering at the Global Business Leaders Series meetings as the top marketing tactic to elevate the profile of a city or region. “best in class” for marketing of the Comprehensive Economic the EU market, providing us in Milan, discussing Canada’s Invest Toronto’s primary method of connecting with clients and potential their region to C-level executives and Trade Agreement (CETA) between preferential access not enjoyed by economy and business environment. leads is through B2B meetings with executives that are looking to expand Canada and the European Union our competitors in other countries, + location advisors. into the North American market through Toronto. These meetings are (EU) signed in October 2013 by the which still face tariffs. http://ow.ly/rn1cF conducted either in-market during our outbound investment missions, or in Toronto as we welcome delegations from all over the world. Government of Canada, Invest NUMBER OF MEETINGS 28 Nov 13 Toronto joined a delegation with the The EU mission focused on IN EUROPE Consider Canada City Alliance investment seminars and match- (CCCA) on an EU investment mission making sessions between European CANADIAN ECONOMIC DEVELOPMENT ORGANIZATIONS THAT MOST EFFECTIVELY MARKET THEIR METRO REGIONS to Madrid, Amsterdam, and Milan companies, significant private B2B in November 2013. CETA is Canada’s investors, and investment attraction/ MEETINGS INVEST TORONTO, 55.80% most ambitious trade initiative since economic development executives 42 NAFTA. Once the agreement comes from Canada’s major cities. The ECONOMIC DEVELOPMENT WINNIPEG, 32.70% into force, Canada will be one of Canadian investment seminars SEMINARS VANCOUVER ECONOMIC COMMISSION, 30.80% the only countries with guaranteed detailed major growth opportunities preferential access to more than in infrastructure innovation and 3 MONTREAL INTERNATIONAL, 28.80% 800 million consumers in the world’s services, advanced manufacturing, CALGARY ECONOMIC DEVELOPMENT, 26.90% two largest economies, the European and sustainable technology. In VISIT GREATER HALIFAX PARTNERSHIP, 25.00% Union (EU), and the United States addition, Invest Toronto President and 1 and Mexico. CETA will eliminate CEO Renato Discenza was a panelist CANADA’S TECHNOLOGY TRIANGLE, 21.20%
13 14 Invest Toronto 2013 Annual Report
BUSINESS INVESTMENT LIFECYCLE STAGE 2
Invest in Ontario QUALIFY @InvestOntario RT @InvestTO_News: The EIU has named The Investment Services team #Toronto as one of the works to better understand the top 5 most liveable cities in the world! client’s needs and goals to http://ow.ly/rilCz
advance an investment in Toronto. 09:03 pm - 29 Nov 13
Companies that enter the Qualify networks and analyses) that are our team encourages the client Stage are those that have progressed available through us, which can to visit Toronto to gain a better through the Prospect Stage, or enable the company to optimize understanding of the business have been referred to Invest Toronto its search for a global expansion environment and local opportunities. through one of our partners. opportunity. In addition, the Invest Toronto These companies have expressed an team maintains close contact with interest in learning more specifics The length of the Qualify Stage can the client throughout the Qualify about Toronto, and are now actively vary significantly depending on a Stage via regular phone calls, emails engaged with our Investment number of factors. For example, the that contain news and articles of Services team. During the Qualify client may not have an immediate interest, reports, updated business Stage, the Investment Services investment plan in the current year, indicators and analysis, face- Advisors work to better understand but as long as the Invest Toronto to-face meetings where possible, the company’s needs and goals, team knows that an expansion into webinars, seminars, video investment parameters, propensity Toronto is a possible eventual conferencing, and social media. and ability to make an investment, outcome, the company will remain timelines, and the client’s investment in the Qualify Stage. During these decision-making process. The extended periods, keeping the client Qualify Stage is an opportunity for engaged and interested is a key role the Invest Toronto team and the for the Investment Services team. client to align mutual expectations, We believe that Toronto must remain and for our team to showcase top-of-mind in order for us to the process and specific resources effectively contend in a globally (tools, public and private sector competitive environment. As such,
15 16 Invest Toronto 2013 Annual Report Success Story
DEV IT Success Story
Dev Information Technology Pvt. Ltd. To assist with DEV IT’s decision- with their co-founders in Ahmedabad (DEV IT) is an IT solution and making process, Invest Toronto during a return investment mission to services partner based in Ahmedabad, prepared a comprehensive India. During the meeting, DEV IT India. They provide integrated information package including a outlined their reasons for investing information technology solutions list of co-location data centres in in the GTA: from their headquarters in Toronto, utility rates in a number of 1. The positive trade and investment Ahmedabad and branch offices Greater Toronto Area municipalities, relationship between India and in Goa, Maharashtra, Rajasthan, a description of the process for Canada; the United States, and most recently intra-company employee transfers 2. An opportunity to diversify from in the Greater Toronto Area (GTA). through a Canadian work permit, the U.S. market; Invest Toronto first connected with hiring incentives for small-medium 3. Canada’s friendliness toward DEV IT in May 2011 during an enterprise IT companies, and office small-medium enterprises; and PHOTO: DEV IT in-market mission to India. Invest real estate rates. At DEV IT’s request, Jaimin Shah, Co-Founder and Managing Director, DEV IT Toronto met representatives of Invest Toronto also provided an 4. Opportunities for IT improvement DEV IT at an information seminar information package including a list initiatives in the Canadian held in Ahmedabad, which was of chemical companies in Ontario, marketplace. “The decision was obvious when we decided to expand our hosted by Invest Toronto, Fasken and contact information for Greater In addition, the investment services Martineau Dumoulin LLP, Toronto Area municipal economic team is providing support to Mr. geographical territory. The Toronto region is one of the largest IT PricewaterhouseCoopers LLP (PwC), development officers. Jaimin Shah, Co-Founder & Managing sectors in North America and has the strongest IT infrastructure and the Federation of Indian Director of DEV IT, in his capacity as in the country. Toronto provides market access to millions of Chambers of Commerce and Industry, After exploring business opportunities the Chairperson of the Indo Canadian consumers in Canada, the United States, and Mexico, thus paving where they informed us that they in Toronto, and as a result of the Business Chamber (ICBC) – Gujarat the way for opportunities in the IT segment in the North American were looking to better service their connections facilitated by Invest Chapter. Mr. Shah was appointed as market space.” Canadian clients by opening an Toronto staff, DEV IT decided to Chairperson of the ICBC – Gujarat office in Toronto. InvestToronto met open an office in Mississauga in Chapter in mid-2013, and reached JAIMIN SHAH, CO-FOUNDER & MANAGING DIRECTOR, DEV IT with DEV IT again in June 2011 December 2012. Invest Toronto out to Invest Toronto for assistance when they travelled to Toronto introduced the company to the with organizing an Indian business to attend the International Indian Economic Development Team in delegation that will be visiting Canada Film Academy (IIFA) Global Business Mississauga. in mid-2014. In preparation for their Forum. Following these meetings, visit, Invest Toronto connected DEV IT we continued to keep in touch with Our team maintained contact with with representatives of the Ontario the DEV IT team. DEV IT, and in May 2013, met government.
17 18 Invest Toronto 2013 Annual Report
BUSINESS INVESTMENT LIFECYCLE STAGE 3
PROPOSE The Investment Services team provides customized research and analysis based on specific client needs to encourage an investment decision.
Once a company progresses into expertise of our public and private The Invest Toronto team takes this the Propose Stage, it has a specific, sector partners, especially the opportunity to maintain and grow the qualified investment opportunity, Sector Specialists at the City of relationship with the client, based and Toronto is under consideration. Toronto, to provide a targeted, on hard work, exemplary customer B2B level of service to our clients. service, respect, and trust. The more At this stage, the Investment Services We pride ourselves on providing comfortable a company feels team provides the company with service to our clients that meets a with the value-added service that customized services – including high standard of excellence. we provide and the partnership client-specific benchmarking This not only eases the investment they have built with the Invest Toronto reports, economic and demographic decision, but also reinforces the team, the more likely they are to analyses, business planning City of Toronto’s commitment to view Toronto as the ideal location support, and custom research, among supporting new business investment. for their next global business other services – and introduces opportunity. them to key private and public sector This stage can take some time partners that can both provide as companies gain a detailed expertise and help the client “hit understanding of the regulatory the ground running.” The Invest and operational environments, as Toronto team uses tools such as well as the multiple levels of market KPMG’s Competitive Alternatives, opportunities. In addition, the fDi Benchmark, and Innovation client will typically evaluate multiple Atlas, along with the domain- locations, which also takes time.
19 20 Invest Toronto 2013 Annual Report Success Story
VEND Success Story
Based in Auckland, New Zealand, Vend first heard about Invest Toronto with the Vend team to offer support Vend provides cloud-based, point- through a former Invest Toronto with any expansion initiatives, of-sale (POS) software to retailers client, Foster Moore, and our close respond to any questions they may that allows their clients to process relationship with Foster Moore have,and to assist with accessing sales, track inventory, and manage resulted in a positive referral of our contacts within the Toronto start-up customers easily and efficiently. Using services to Vend. The Vend team and wider business communities. the world’s first HTML5retail reached out to Invest Toronto in June
POS system, retailers can access 2013 for information related to For Vend, choosing to locate an office PHOTO: VEND the software on any device or hiring talent, salary costs, real estate, in Toronto was an easy decision. The Vaughan Rowsell, Vend Founder and CEO platform, including tablets, laptops, and finding professional service culture in Toronto is similar to Vend’s PCs, or even POS hardware they providers in Toronto. Invest Toronto Auckland and Melbourne offices in already own, both online and offline. provided Vend with a comprehensive terms of a great location, and great “Invest Toronto are a great bunch of people. They gave us a Since they opened in Auckland information package, and worked people. Not only are the people in wonderful personal welcome, advice, and support. We feel like in 2010, Vend has opened offices in closely with them throughout the Toronto friendly, but they are talented Toronto is home already, and a lot of that is thanks to them. Melbourne and San Francisco. To process of selecting a location and and educated, which makes it easy provide superior support to retailers, establishing an office in Toronto. to find the employees they need for The connections and doors they opened for us in the tech and and to better service their client the company to grow and prosper IT software community are invaluable. We love being part of base in the Western Hemisphere, By August 2013, Vend’s Toronto in Toronto. such a vibrant and active community. There are exciting, positive, Vend opened their new global officewas up and running and educated, and lovely people in Toronto to work with and employ. support office in downtown Toronto the Invest Toronto team visited We love it here!” in 2013. From Toronto, Vend will their new location that month VAUGHAN ROWSELL, VEND FOUNDER AND CEO provide support to retailers in the to see the many improvements region that use the Vend service, they made to the office space. and create a launch pad to grow their Vend’s Canadian team is already client base in North America, talking about expansion in the Europe, and beyond. The Toronto Toronto area, including a potential office will create more than 70 development centre. Invest Toronto jobs over the next two years. continues to maintain regular contact
21 22
Invest Toronto 2013 Annual Report
BUSINESS INVESTMENT LIFECYCLE STAGE 4
CLOSE When an opportunity is closed, Invest Toronto assists clients in opening up their new business in Toronto.
An opportunity is considered to be team can support the set-up process Clients can determine that another closed when a business makes a by facilitating introductions to the jurisdiction is right for their business final decision about their investment City of Toronto’s Business Retention for any reason, and at any stage in plans. This means that there are & Expansion (BR&E) team, or the Business Investment Lifecycle. several types of Closes. The ideal the Economic Development group Other times, a client could determine situation for our team is when a from the selected municipality, that it is not the ideal time to expand company we have been working with as well as introducing additional their business, and does not pursue over the course of the Business service providers such as their plan to expand into a new Investment Lifecycle decides to lawyers, accountants, and real estate market. These companies, as well as initiate an investment in Toronto professionals to assist with the companies that did not qualify in or in the Greater Toronto Area (GTA). process of establishing the client’s earlier stages, are considered to be An investment in the City of business and operations in Toronto. a “Close – Not Qualified.” As with Toronto is beneficial to the entire In addition, Invest Toronto connects “Close – Lost” opportunities, this Greater Toronto Area, and vice these companies with the other can occur at any stage of the versa, as this new investment creates relevant municipal, provincial, and Business Investment Lifecycle. valuable jobs and brings in new federal partners that can help capital for the region. An investment facilitate their expansion process. in Toronto or the Greater Toronto Sometimes, clients decide to Area would be considered a “Close locate their business in another city – Won” or “Close – Won GTA.” At or country, and this would be this point, the Investment Services considered a “Close – Lost.”
23 24 Invest Toronto 2013 Annual Report Success Story
INFRASOFTTECH Success Story
InfrasoftTech is a specialist software International Marketing Centre in plan for Canada. In October 2013, solutions provider for global financial Mumbai. At that time, InfrasoftTech they narrowed the scope of their plan enterprises based in Mumbai, India. informed Invest Toronto of their to focus solely on Ontario. When InfrasoftTech CEO and Executives meeting with Invest Toronto staff in Toronto InfrasoftTech provides wide plans to set up a presence in Toronto they met our Investment Services productized offerings, framework to cater to the financial services team in November 2013 in Toronto, based solutions, and specialized industry. they had fleshed out a plan to open “We were approached by Invest Toronto nearly five years ago to services in the domains of commercial a knowledge centre in Ontario, help us set up our business in Canada. Invest Toronto worked banking, microfinance, wealth After our initial meeting with and selected a location in downtown with us over the first three years when we were contemplating management, and capital markets. InfrasoftTech in India, Invest Toronto for their operations. They our set up in Canada and provided us valuable assistance They serve over 300 customers in Toronto kept in touch with their offer a variety of services through and advice on establishing our entity in Toronto. They organized multiple markets, including India, representatives in Mumbai on a their new subsidiary, InfrasoftTech meetings with consultants, the Toronto Financial Services the United States, the United regular basis. At their request, Canada Limited. Kingdom, Jersey, the United Arab the Invest Toronto team connected Alliance, and other agencies that provided valuable information Emirates, Bahrain, Singapore, InfrasoftTech with a Business InfrasoftTech outlines the main on the market in and around Toronto in the areas of our Malaysia, and most recently, Immigration specialist from the reasons for setting up their business strengths. They also helped us obtain permits for key personnel, Toronto, Canada. Ministry of Economic Development, in Toronto as follows: which helped us scale operations in Canada. What I really Trade and Employment (MEDTE), admire about Invest Toronto and the Ontario Government Invest Toronto was first introduced to in addition to a variety of service 1. The large presence of banking agencies is that they continue to provide us guidance InfrasoftTech in 2009 by the Ontario providers to assist with acquiring and financial services companies whenever we require assistance, even two years after our initial International Marketing Centre a company in Toronto. Invest in and around Toronto; entry into Canada, which demonstrates their commitment (OIMC) in London, England. At that Toronto followed up with the Mumbai 2. IT modernization initiatives and spirit of partnership with businesses that they attract time, our President and CEO, team at InfrasoftTech during a return in pension funds; to invest in Ontario.” Renato Discenza, and Vice-President mission to India in 2012, when 3. Access to a multi-cultural of Public Affairs, Nikki Holland, Invest Toronto hosted a dinner for RAJESH MIRJANKAR, CEO, INFRASOFTTECH workforce and to Toronto’s reputable met with InfrasoftTech’s CEO for existing Indian clients to reconnect educational institutions to tap Europe, who later became the and discuss their expansion plans. world class talent; and President and CEO of InfrasoftTech. Over the course of 2012 and After that initial meeting, Invest 2013, Invest Toronto continued 4. Support from Invest Toronto and Toronto continued to keep in touch to keep in touch with Infrasoft- the Ontario government team in with InfrasoftTech. Invest Toronto Tech directly, as well as through our providing legal and professional reconnected with InfrasoftTech partners at the Province of Ontario. assistance for setting up operations in early 2010, and again in and obtaining permits for key December 2010 during our first By July 2013, InfrasoftTech began personnel. mission to India led by the Ontario working on their updated business
25 26 Invest Toronto 2013 Annual Report
27 SOURCE OF NEW FDI OPPORTUNITIES FDI OPPORTUNITIES, 2013 GENERATED BY COUNTRY, 2013 THE END 40 28 53 DFATD
8 5 3 EUROPE 11 5 OF A 22 IN-MARKET REP. INTERNATIONAL BUSINESS INTERNATIONAL MEETINGS 1 45 13 11 GTMA 1 26 10 CHINA 6
LONG ROAD MEDTE 4 USA CITY DEPARTMENT WEBSITE
CLIENT CONTACTED US CLIENT CONTACTED 22 1 INVEST STAFF - OUTREACH INVEST STAFF
PARTNER ORGANIZATION PARTNER 7 OTHER TRADE SHOW/CONFERENCE ADVERTISING SERVICE PROVIDER SERVICE 8 INDIA 1 AFRICA/MID. EAST UK CANADA SOUTH AMERICA NEW ZEALAND JAPAN
When businesses embark on their Toronto and the Toronto region. The Invest Toronto Business expansion journey, they start down Investments in Toronto and Investment Lifecycle as of a long road that begins with exploring the Greater Toronto Area in 2013 December 31, 2013 opportunities, and ends with a facilitated the creation of: 49 successful expansion into a new FDI OPPORTUNITIES market. Invest Toronto has • 100 immediate jobs, with an additional 236 jobs projected GENERATED BY SECTOR, 2013 travelled this road many times with by the end of 2014 TECHNOLOGY companies that range from small to These FDI opportunities represented large sized entities from a plethora • CAD$10,050,000* contributed 18 economic sectors. Technology, to GDP, projected to be life sciences, and financialservices of different countries, cultures, CAD$23,718,000 by the 15 continue to be among the top sectors. and business sectors, each having 19 end of 2014 10 unique expansion goals and 9 6 (This GDP number will have a multiplier 12 12 6 timelines. No matter where the client effect on the Toronto region’s economy 8 comes from or what stage they are and will continue to increase with new PROSPECT STAGE 4 at in their expansion efforts, Invest successful investments in future years) 3 MANUFACTURING 3 3
BUSINESS SERVICES 7 Toronto is there to assist every step 6 5 2 LIFE SCIENCES Working with the Economic & CONSTRUCTION FINANCIAL SERVICES of the way. After we have journeyed GREEN/ CLEANTECH ENTERTAINMENT
Cultural Research Division at OTHER FOOD AND BEVERAGE FASHION AND APPAREL FASHION MEDIA
down the long road to success, ENERGY
the City of Toronto, this is the first CLIENTS TRANSPORTATION REAL ESTATE CONGLOMERATE ENGINEERING at the end lies the launch of a new year that Invest Toronto has EDUCATION business venture with opportunity quantified the FDI investments QUALIFY STAGE for expansion, prosperity, and we facilitated into Toronto. All longevity in their Toronto location. figures, immediate and projected, are based on client estimates The Invest Toronto team facilitated with two Greater Toronto Area CLIENTS With the help of our partners, the where we identified 40 opportunities 23 new investments in the Greater clients’ job numbers coming from FDI Invest Toronto team works to service during that mission. After the Toronto Area (GTA) in 2013. These our regional partners. PROPOSE STAGE investments in both Toronto and the all our clients. In 2013, the Invest European Union, the top three Greater Toronto Area are critical Opportunities Toronto team engaged with 179 new countries for FDI opportunities to the continued development of the FDI opportunities, which represent were China, India, and the United Of the 733 FDI regional economy, as they create new potential investments in Toronto States. This is a reflection of valuable jobs, and bring in new capital CLIENTS opportunities and the Greater Toronto Area. Invest Toronto’s return missions that further enhances and benefits since 2010, These FDI opportunities came from to those countries to build on *Based on estimates provided by the City of Toronto CLOSE - WON the entire region. Invest Toronto was (2013), $3/square foot and $100,500/employee 179 were added 23 countries. The European Union relationships and foster solid ties (This number is an average of GDP in current dollars proud to be the lead, and/or to work for all industries) in 2013. was a lead source of FDI opportunities with business leaders, as well cooperatively with other government *These GDP numbers are based on immediate and in 2013 as a result of the business as stronger relationships with the short term hiring but do not include future projected mission to the European Union with in-market offices of our provincial and partner agencies on securing growth and expansion, which will further enhance each of these new investments in and benefit the region CLIENTS the Consider Canada City Alliance, and federal government partners.
27 28 Invest Toronto 2013 Annual Report Success Story
CHINA LONGYUAN POWER GROUP Success Story
PHOTO: CHINA LONGYUAN POWER GROUP Canada’s Ambassador to China and Invest Toronto Vice President of Public Affairs participating in the official signing ceremony
China Longyuan Power Group (CLYPG) is the CLYPG had developed plans for an power market. This deal was also process culminated in the awarding largest producer of wind power in Asia. CLYPG ambitious 100,000 KW wind power the first time a State-owned power of a project construction permit is mainly engaged in designing, developing, project in Ontario, and worked to generation enterprise invested in an to Longyuan Renewables Canada by managing, and operating wind power plants, obtain the necessary approvals to overseas renewable energy project. the Ontario Power Authority on as well as selling the electricity generated by move forward with their venture. July 8, 2013, permitting construction “We had a very positive experience working with its plants to consumers in China. The company Once the plans for their Ontario wind At the same time, CLYPG held an to commence in August 2013. Invest Toronto. As a new participant in the Toronto decided to expand its operations into the North power project were underway, official signing ceremony in China This historic project is expected to be market, it was great to rely on them for advice American market, and was connected to CLYPG decided to establish their for its new Canadian subsidiary, and complete in 2014, and will supply and support, and their team was very professional, Invest Toronto by our in-market representative, North American headquarters in as a gesture of its solid partnership clean electric power to over 30,000 customer-focused, and effective. With Invest Tractus Asia, in February 2011 during a Toronto. Invest Toronto was in regular with Invest Toronto, invited Invest Ontario households. Longyuan Toronto’s help, we were able to open our Canadian business investment mission to Beijing. CLYPG contact with CLYPG’s Toronto Toronto’s Vice-President of Public Renewables Canada continues to look subsidiary office in downtown Toronto, and we visited Toronto in March 2011, and met with team, assisting with the site selection Affairs to bring greetings at the event for additional opportunities from are confident that our new wind project will be Invest Toronto to continue the discussion about process and accompanying them in Beijing alongside the Canadian their North American headquarters what the city has to offer, and the opportunities to various business meetings. In May Ambassador. in Toronto. in service on schedule. Thanks so much.” the region holds for renewable energy ventures. 2011, CLYPG officially established WU HAO, PRESIDENT, LONGYUAN RENEWABLES CANADA The Investment Services team organized a its Canadian subsidiary, Longyuan Over the course of 2012 and early roundtable for CLYPG’s visit that included legal Renewables Canada, and opened an 2013, Longyuan Renewables and commercial real estate partners who office in Toronto’s financial district. Canada worked with a local public could help with the process of establishing an On July 13, 2011, CLYPG signed an relations firm, law firms, consulting office in Toronto. In addition, the Invest Equity Acquisition Agreement on firms, and China’s Embassy in Toronto team worked with our partners to develop Canadian Wind Power Projects with Canada, as well as with the Ontario materials for CLYPG that detailed potential Canada Melanchthon Electric Power government to obtain all of the business structures, tax implications, and Company Ltd in Beijing, marking necessary approvals for their wind employee standards. their first foray into the global wind power project to move forward. This
29 30 Invest Toronto 2013 Annual Report The End of a Long Road
12 9 1 18 15 21 16 8 7 2 13 4 5 20
10
11 3 8 19 14 23
1. ALSTOM TRANSPORT 17 4. THE CARGO AGENCY (GTA) 6. COACH IT (GTA) 6 “Having a dedicated office List of Close – Transportation – France Business Services – United States Information and Communications in Toronto has exceeded Won FDI Alstom Transport is a Paris-based 3. AVICAST (GTA) Based in the United States, The Technology – Brazil Datto’s expectations. We’ve supplier of rail products including Aerospace – China Cargo Agency provides marketing Coach IT provides IT consulting been fortunate enough to Opportunities locomotives, passenger stock, and Created by a joint venture between services for large brands that market services to a broad range of industries establish some great partner turnkey rail systems. From their new China’s AVIC International Zhuhai and advertise to the millions of and sectors. They currently have relationships, and as a 22 office in Toronto, Alstom provides small businesses that exist today. two offices in Brazil and one in Spain, for 2013 and Canada-based Agaro Ltd., result enjoy a growing demand signaling systems and infrastructure AVICAST is a new platform to bridge They have set up a subsidiary and have now successfully for Datto’s solutions. maintenance to Toronto and Ontario- the aerospace industries of China company and office in the Greater expanded into the Canadian market based clients. and Canada. Based in the Greater Toronto Area to better serve and through their new office in the Establishing our dedicated Toronto Area, the joint venture grow their Canadian client-base. Greater Toronto Area, in Mississauga. cloud operations in 2012 2. APEX SYSTEMS comes amid growing demand for Invest Toronto was pleased to work and sales and operations office Information and Communications Chinese civil aircraft manufacturing 5. CIGNITI with the Greater Toronto Marketing in 2013 have proven to be Technology – United States capabilities and recognition Information and Communications Alliance in servicing Coach IT. excellent decisions. We sincerely Apex Systems provides a scalable of Canada’s advanced world-class Technology – United States thank the Government of continuum of services that includes aerospace technology and expertise. Cigniti is an independent software 7. DATTO Canada and Invest Toronto IT staffing solutions to address testing services company that was Information and Communications for all their guidance and introduced to Invest Toronto by the critical gaps in current workforce, Technology – United States support in making our expansion Greater Toronto Marketing Alliance. workforce management strategies, This United States-based ICT possible.” and deliverable-based solutions From their newly incorporated Toronto company was referred to Invest designed to drive better business office, they sell their software testing Toronto by the trade commissioner NAJAF RAZA, VP, INTERNATIONAL performance. With over 47,000 technology to clients in the financial in the Canadian Consulate in OPERATIONS DATTO technical professionals placed and services, healthcare, and ICT sectors. New York City. Datto is embarking 1,000 consulting services projects on a global expansion plan, which delivered since 2010, Apex Systems “Thank you, Invest Toronto, for includes a new mixed use office/ is a top IT services firm. Apex Sys- “Working with Invest Toronto all the help. I couldn’t have warehouse in Toronto. Datto tems has 60 offices in the United has been an excellent had a ‘smooth sailing’ opening provides hardware-based on-site States, and has decided to make and off-site backup, disaster experience. Their knowledge, of our operations in Toronto Toronto their first international recovery, and business continuity insights, and connections without you.” office, incorporatingtheir business services to its growing Canadian in 2013. Invest Toronto partnered in the market place have been SANJAY JUPUDI, PRESIDENT – client-base. AMERICAS, CIGNITI INC. with the Department of Foreign so valuable as we expand Affairs, Trade and Development to to the Greater Toronto Area.” assist Apex Systems with their BRENT KAITZ, MANAGING DIRECTOR Canadian expansion. – TORONTO, APEX SYSTEMS 31 32 Invest Toronto 2013 Annual Report The End of a Long Road
8. DEV IT (GTA) Toronto, Invest Toronto assisted Information and Communications in the expansion of this San Technology – India Francisco-based service company. DEV IT is a dedicated turnkey solutions provider in the field 14. INFRASOFTTECH of Information Technology. Based Information and Communications in India, the company opened a Technology – India Canadian location in the Greater InfrasoftTech is a global India-based Toronto Area, using its Mississauga company offering software products, office as a base to service its growing solutions, and services to clients in number of clients in the region. the banking, financial services, insurance, and eGovernance sectors. “It has been an overall fantastic InfrasoftTech opened an office in experience working with Invest Toronto to serve the city’s growing Toronto. Due to their guidance financial services sector. and support, we decided to start up our overseas operations 15. JAHIA SOLUTIONS GROUP SA in Canada. The support we Information and Communications received was commendable. Technology – Switzerland From their new Toronto office, Jahia Invest Toronto continues to Solutions Group offers research and be a valued partner to DEV IT.” development, customer support, JAIMIN SHAH, CO-FOUNDER & and sales support to their growing MANAGING DIRECTOR, DEV IT client base in North America. A
PHOTO: CISCO CANADA PHOTO: TOURISM TORONTO Toronto location was the ideal choice, Nitin Kawale, President of Cisco Canada in 9. FORCARE offering access to the city’s growing downtown Toronto, December 13, 2013 Life Sciences – Netherlands staff at the Ontario International Canada establishing a base information and communications Referred to Invest Toronto by the Marketing Centre in Mumbai, Gateway in Toronto. We hope our technology sector. Greater Toronto Marketing Alliance Technolabs is a global technology relationship with Invest Toronto and the Canadian Embassy in services, product engineering and will continue to flourish 16. MOOVIX the Netherlands, Forcare provides outsourcing company with in the coming months now Entertainment – Canada software products and services for approximately 1,400 people serving that we have successfully Moovix Media Inc. is a media and its clients in the healthcare sector, clients in more than 30 countries. content production company partnered with Sloane Capital with a focus on interoperability With an office in Burlington, Ontario, made up of a group of passionate Corp., who are also based between healthcare IT systems. Gateway Group is expanding illustrators, animators, designers, Invest Toronto would like to recognize and congratulate Cisco and the The client’s growing customer their Ontario presence with a project within the Toronto district.” directors, producers, and writers. Province of Ontario for their commitment to the City of Toronto. On base in North America has led manager located in the Greater CHRIS ALMOND, OPERATIONS They recently incorporated in December 13, 2013, Cisco Canada committed to investing up to $4 billion them to establish a presence Toronto Area. DIRECTOR, LUCAS JAMES Ontario, and are currently operating out in Ontario over the next decade with the help of the provincial in Toronto, their first branch office (KNOWN IN CANADA AS GROUP FIRST) of locations in Toronto and Oakville. government to make the province one of its global R&D hubs for its next outside of Europe. 12. GROUP FIRST generation technologies. This IT investment is the largest in the Real Estate Development and 13. HOMEJOY 17. PROJECT-1 history of Ontario’s technology sector. Cisco chose Canada for this 10. FUZHOU HENGJUE Investment – United Kingdom Information and Communications Business Services – Brazil investment for its potential for venture capital funding, and they GARMENTS (MAPLE TRACE INC.) Known as one of the United Technology – United States Project-1 aims to bridge the gap chose Toronto for the importance of a downtown presence in attracting Fashion and Apparel – China Kingdom’s leading property Homejoy is a leading online platform between start-ups and corporate firms talent. This investment will create 1,700 jobs in a new innovation Fuzhou Hengjue is a Chinese-based development specialists, Group to book home services – starting looking to foster innovation. They centre, which will be part of a 108,000 square foot Cisco Canada head manufacturer of performance and First sells real estate investment with home cleaning. Their unique offer investment, mentoring, advising, office on Queen’s Quay in downtown Toronto. winter apparel. Recognizing Toronto’s opportunities in England to Canadian online platform matches customers and networking services in Brazil vibrant fashion and apparel industry investors from their new Toronto with a screened, background-checked and the South American market. From and broad consumer base, Fuzhou sales office with the help of partner and certified professional cleaner. their new Toronto location, Project-1 “We’re expanding our footprint in downtown Toronto. Hengjue entered the Toronto market Sloane Cap Corp., based in Toronto. Now available in over 30 cities across is now busy building commercialization The space we’re taking in Toronto is going to allow under the name “Maple Trace Inc.” the United States and Canada, bridges between Ontario and Brazil. for those kinds of engineers who want to live and work “Thanks for all your work in Homejoy chose Toronto as their first Project-1 invested in its first Ontario in the city, and take the subway…that’s the new 11. GATEWAY TECHNOLABS (GTA) the collection of information on international market. Working success story, Toronto’s Readyportal workforce. They want to live in an urban lifestyle.” Information and Communications Exempt Market Investment side by side with the Information from Debut Logic Inc., which is a “click- Technology – India legislation, which has been and Communications Technology and-play” social collaboration NITIN KAWALE, PRESIDENT OF CISCO CANADA, 2013 Introduced to Invest Toronto by the instrumental in Group First Sector Specialist at the City of and enterprise content management
33 34 Invest Toronto 2013 Annual Report Collaborating for Success
COLLABORATING FOR SUCCESS
PHOTO: WWW.MARYELIZABETHARMSTRONG.CA
system platform. Invest Toronto standards, business ethics and a Toronto provided information Throughout the Business As a dedicated concierge service, last three years with the City of was introduced to Project-1 by the committed workforce, they have about federal hiring programs and Investment Lifecycle, Invest we offer ongoing, valuable support Toronto, Build Toronto, and the Information and Communications now opened an office in Toronto to facilitated key introductions, such Toronto works with our that is both timely and reliable. In Toronto Port Lands Company. This Technology trade commissioner in service their growing client base as our colleagues at the Business shareholder, the City of Toronto, addition, we remain in contact with event provides the business the Canadian Consulate in Sao Paolo in the Southern Ontario region. Invest Retention and Expansion Division at and our full range of public and clients after they have successfully community with the opportunity and the Greater Toronto Marketing Toronto was introduced to Riya by the City of Toronto, to help them private sector partners to identify, landed in Toronto by connecting to connect with the Mayor, City Alliance. the Department of Foreign Affairs, explore avenues for new talent and them with the Business Retention and Councillors, senior officials at the engage, and bring business Trade and Development (DFATD). future growth. Expansion Division at the City of City of Toronto, and the three 18. PSIDEO investment to Toronto. Toronto, and simply by checking in corporations. Information and Communications 20. SMARTOONZ 22. VEND regularly, offering our assistance with Technology – Switzerland Entertainment – Israel Information and Communications any of the client’s business needs, This year, Invest Toronto extended PSideo is a global IT provider, ready Smartoonz® is an international Technology – New Zealand and inviting them to attend business invitations to this annual event to assist clients in the domains of content and media company Referred by a former Invest Toronto networking events. We also maintain to over 700 clients, contacts, and infrastructure, software development, that produces smart, entertaining client, Vend is a cloud-based point a current events listing on the service providers. At the 2013 hosting, and managed services. products for kids. Smartoonz’ of sale provider that can be operated Invest Toronto website that clients Signature Sites event, the City Headquartered in Europe, Psideo successful shows are distributed from any device or platform with a can access for regular updates on launched the 2014 Signature opened their Asian office in 2009. worldwide in more than 50 web-browser. The software technology upcoming business events in Toronto. Sites Collection, which showcases Ready to access the North American countries. The company has company has opened a global market, and understanding the recently launched an office support office in Toronto to better The City of Toronto importance of being in the same in Toronto for New Digital Media service its customers in North The Sector Specialists within the City time zone as their customers, and TV Productions. America and Europe. of Toronto’s Economic Development they have chosen to set up an office and Culture Division provide valuable in Toronto. 21. THREE POINT TURN 23. XERCES TECHNOLOGIES sector expertise and insights. Information and Communications Information and Communications In addition, the City’s Business 19. RIYA Technology – Canada Technology – India Retention and Expansion team Travel – India Three Point Turn is a software Xerces Technologies, a leading helps businesses navigate municipal With 30 years’ experience in the development company that graduated games and mobile apps publisher programs and processes (such as travel industry and over 55 locations from the Toronto Business based in India, now offers game zoning, planning, and permits), and in India, ten in the United States, Development Centre (the City’s development, co-joint development provides consultation services. and two in Canada, Riya Travel is Business Incubator) in 2013. and product development services recognized as one of India’s leading They were referred to Invest Toronto from their Toronto office. Working with the City’s Economic travel organizations. Anchored by by the incubator to assist with the Development and Culture Division, their high customer service expansion of their business. Invest Invest Toronto has co-hosted an annual Signature Sites event for the
35 36 Invest Toronto 2013 Annual Report Collaborating for Success
properties in Toronto that are build on relationships, and update available for lease, sale, investment, the in-market teams on Invest Invest or redevelopment. The Collection Toronto’s efforts and future plans also provides information about the for investment missions abroad. Toronto’s City of Toronto’s Imagination, Partners Manufacturing, Innovation, and The Federal Government Technology (IMIT) property tax The Government of Canada, through incentive, which was enhanced the Department of Foreign Affairs, this year by City Council. The Trade and Development (DFATD), IMIT incentive can help reduce is a critical partner in our overseas OUR PUBLIC SECTOR/ OUR PRIVATE SECTOR costs by providing financial investment missions. Invest in Canada, NOT-FOR-PROFIT PARTNERS PARTNERS support for commercial or industrial a division of DFATD, assists with City of Toronto Ontario Centres of Excellence Accounting Firms developments. Through the identifying businesses in strategic IMIT program, qualified applicants markets and in various locations Build Toronto Ontario Media Development Banks/Financial Intermediaries Corporation (OMDC) constructing a new building or around the world, and connecting Canada China Business Council Chambers of Commerce renovating an existing building them with the Invest Toronto team (CCBC) Ontario Ministry of Agriculture and Food (OMAF) Consulting Firms for employment uses in targeted to pursue their interest in expanding Canadian Venture Capital sectors may be eligible for a grant into the North American market via Human Resource Consultants PHOTO: WWW.MARYELIZABETHARMSTRONG.CA Association Ontario Ministry of Citizenship equal to a portion of the property’s Toronto. Invest in Canada is business- and Immigration (MCI) China Council for the Promotion Incubators and Accelerators municipal taxes. Sixty per cent – focused, and conducts vast amounts of International Trade (CCPIT) Ontario Ministry of Economic Industry Associations or 70 per cent in designated of research in order to compile Development, Trade and CivicAction Forum Employment Areas – of the resulting valuable information that they in In addition, Invest Toronto Employment (MEDTE) Law Firms increase in municipal property turn share with their provincial accompanies the GTMA on their Consider Canada City Alliance Ontario Ministry of Research Marketing & Communications Firms (CCCA) tax created by the new development and regional partners. The Federal annual mission to Brazil to promote and Innovation (MRI) Property Developers is granted back by the City to Government is also working Toronto’s vibrant technology sector Department of Foreign Affairs, Pan/Parapan American Games Real Estate Firms the property owner over the course strategically with the Consider and connect with Brazilian companies Trade and Development (DFATD) Toronto 2015 of 10 years. Canada Cities Alliance (CCCA), and industry associations in the Site Selectors Enterprise Toronto Toronto and Region Conservation of which Toronto is a member. lead up to the 2015 Pan Am Games. Foreign Embassies and Consulates Authority (TRCA) TMX Group The Provincial Government Leveraging our presence in market Venture Capitalists The Invest Toronto team works closely by working with the provincial and Invest Toronto also works closely with Greater Toronto Airport Authority/ Toronto Business Development Toronto Port Authority Centre with the Investment and Industry federal governments allows Invest the Toronto Financial Services Division at the provincial Ministry of Toronto to expand our reach in global Alliance (TFSA), a unique, public- Greater Toronto Marketing Alliance Toronto Community Foundation (GTMA) EDUCATIONAL Economic Development, Trade and markets. They are our most important private partnership dedicated to Toronto Employment Social Services INSTITUTIONS Employment (MEDTE), who provide international partners. growing the Toronto region’s financial Infrastructure Ontario (IO) (TESS) an invaluable service in our efforts services cluster and building it as Invest in Canada Toronto Financial Services Centennial College to attract new investment to the City Agency Partners a “top ten” global financialservices Alliance (TFSA) Invest in Ontario George Brown College of Toronto. In addition, the Invest Invest Toronto is a member of the centre. Invest Toronto works closely Toronto Port Lands Company (TPLC) Toronto team works closely with Invest Greater Toronto Marketing Alliance with the TFSA to share information, MaRS Discovery District Humber College Toronto Region Board of Trade in Ontario, another arm of the (GTMA), a public-private partnership research, and data that best captures MaRS Innovation Ontario College of Art and Design Ministry, whose Ontario International that serves as the key point of the details about the financial Toronto Transit Commission (TTC) (OCAD) University Metrolinx Marketing Centres (OIMC’s) in contact for businesses exploring services sector that companies are Tourism Toronto Ryerson University strategic locations across the globe opportunities in the Greater looking for when making a decision Music Canada University Health Network (UHN) Seneca College provide essential information, Toronto Area (GTA). to expand into a new market. National Angel Capital insight, and contacts in key markets. Organization (NACO) Waterfront Toronto Sheridan College The OIMC’s also organize in-market The partnership brings together Finally, Invest Toronto and the City of OneEleven University of Toronto seminars where Invest Toronto can the 29 municipalities and regions Toronto have a shared membership York University participate and communicate in the Greater Toronto Area, the in the Canada China Business Council, Toronto’s unique value proposition governments of Ontario and Canada, a valuable partner who provides first-hand to global business leaders. several not-for-profit organizations, guidance to Invest Toronto when In December 2013, the Invest Toronto and a cross section of private sector travelling in-market, helping to team met with the Senior Economic corporations. Invest Toronto identify opportunities and to assist Officers from the ten OIMC’s located works closely with the GTMA, holding with servicing clients from China. in eight countries worldwide. It monthly meetings together to share was a great opportunity to connect, leads and discuss opportunities.
37 38 Invest Toronto 2013 Annual Report Success Story
SMARTOONZ Success Story
Smartoonz® is an international The Invest Toronto team connected The Invest Toronto team also reached content and media company that Smartoonz with a representative out to the National Angel Capital produces smart, entertaining of the Ontario Media Development Organization (NACO) to determine products for kids, both for traditional Corporation (OMDC), an agency which angel groups have an and new media. Founded in Israel of the Government of Ontario that interest in animation. in 2006, Smartoonz currently has a provides innovative programs, Research and Development studio services, and funding for the film In the fall of 2013, Invest Toronto in Tel Aviv. In September 2012, they and television, book and magazine introduced Smartoonz to a were introduced to Invest Toronto publishing, and interactive digital representative from the Toronto by a former member of the trade team media and music industries. The Animation Arts Festival at the Israeli consulate in Toronto, Ontario Media Development International (TAAFI). The meeting PHOTO: SMARTOONZ and they expressed an interest in Corporation supplied information was arranged and held at the Yuval Levy, CEO, Smartoonz Ltd. establishing an office in Toronto. about the Ontario Interactive Invest Toronto offices, where the Digital Media Tax Credit (OIDMTC), discussion focused on how TAAFI When Smartoonz first connected a refundable tax credit based on can assist Smartoonz with their with the Invest Toronto team, they eligible Ontario labour expenditures, efforts to develop merchandising informed us that they were seeking and eligible marketing and products, digital products, support for the continued growth “Toronto is a great city for kids’ support to move the production of distribution expenses claimed and additional animated brands and expansion of their business, content developers and producers. the second season of their popular by a qualifying corporation from Toronto. including new and innovative It offers a lot of opportunities children’s animated series, Monkey with respect to interactive digital products that are currently being for creating and growing. The See, Monkey Do to Toronto, as well media products. With the support of Invest Toronto developed. Most recently, Invest professional team at Invest as to develop new content and brands and the various government Toronto connected Smartoonz with Toronto helped us to identify these a Sector Specialist at the City of in the Toronto office. Over the next Invest Toronto also encouraged the and industry contacts that the team opportunities and seize them! year, additional projects were company to attend X-Summit, provided, Smartoonz’ CEO and Toronto to discuss upcoming projects. They were there for any question discussed, such as the development a digital media conference produced Director of Content and Programming This is an example of how Invest concerning establishing a of strategic digital media products, by Interactive Ontario. X-Summit moved to Toronto as of September Toronto supports and engages clients merchandizing of the flagship provides an ideal platform to connect 2013. Animation work is currently who have already established a Toronto office and finding strategic brand, as well as specialty projects with angel investors in Toronto. In underway in Ontario, with co- presence in Toronto to assist with their partners for our new exciting that focus on solutions to core addition, Invest Toronto connected production conducted in partnership growth and expansion, and to help projects.” them to become a significant player issues surrounding children’s health Smartoonz with lawyers to assist with with TVO. Invest Toronto is in regular YUVAL LEVY, CEO, SMARTOONZ LTD. and quality of life. project and financial development. contact with Smartoonz and offers in the Toronto market.
39 40 Invest Toronto 2013 Annual Report
In 2013, Toronto continued to build on its reputation as a strategically- What is located global city with a strong and stable economy, and a cost competitive jurisdiction with a highly skilled and educated talent pool, which enjoys INVEST the world an outstanding quality of life. The Invest Toronto team highlights Toronto’s saying successes to the world, but we also like to refer to world-renowned research and publications to tell the story for us. We take statistics and rankings TORONTO about from respected third-party organizations and leverage them to help move clients ahead in the Business Investment Lifecycle. Toronto is a competitive, Toronto? cosmopolitan city that will provide a strong return on investment – and the global business community is taking note.
“Toronto ranks “Toronto 4th most 3rd overall for liveable city in the world” American Cities ECONOMIST INTELLIGENCE UNIT, of the Future AUGUST 28, 2013 2013/14 and “Soundest 2nd overall in banking system North American in the world 6 “Toronto in Top 10 most Cities of the years in a row” competitive cities of the future” 2013 BOARD OF DIRECTORS 2013 MANAGEMENT & STAFF Future 2013/14” WORLD ECONOMIC FDI AMERICAN FORUM, MOODY’S, JUNE 25, 2013 Mayor Rob Ford Renato Discenza Jonathan Chu CITIES OF THE SEPTEMBER 4, 2013 Chair President & CEO Investment Services & FUTURE, Global Markets Advisor APRIL 8, 2013 Ann Buller Winston Young Vice-chair Chief Financial Officer Silvia Pellitteri “Toronto named (Shared Services with Toronto Executive Assistant to Allan Broadbent one of 2013’s top Port Lands Company) the President & CEO Director five ‘Best Places Terrie O’Leary Melec Abdulazis “Toronto rated 3rd out of 138 Craig Brown “Toronto is the to Go’” Executive Vice President, Office Manager cities as a great place to hire” Director fastest growing CONDÉ NAST Operations AON HEWITT’S 2013 PEOPLE RISK economy in TRAVELER MAGAZINE, Councillor Shelley Carroll Nikki Holland INDEX, MARCH 25, 2013 APRIL 30, 2013 Canada two years Director Vice President, Public Affairs in a row” Councillor Vincent Crisanti Zvi Lifshiz CIBC, JANUARY 3, Director Director, Investment Services 2013 Aleem Kanji Julia Sakas “Toronto named Director Communications & ‘Youthful City of Corrado Paina Marketing Manager the Year,’ edging “Toronto named 2nd most Director Niloo Boroun out Berlin and “Toronto Pearson and reputable city in the world” Hari Panday Investment Services Coordinator New York” Billy Bishop Airports ranked REPUTATION INSTITUTE, Director Sarah Hussaini YOUTHFULCITIES, among world’s best” OCTOBER 17, 2013 Investment Services Advisor NOVEMBER 25, 2013 Geoffrey Reeves SKYTRAX WORLD AIRPORT AWARDS, Director Giovanni Gonzalez APRIL 16, 2013 Councillor Michael Thompson Investment Services & Director Global Markets Advisor Mike Williams Shane Lee Director Investment Services & Global Markets Advisor
41 42 Invest Toronto 2013 Annual Report Financial Statements
INVEST TORONTO FINANCIAL STATEMENTS PHOTO: MARYELIZABETHARMSTRONG.CA
43 44 Invest Toronto 2013 Annual Report Financial Statements
Independant INVEST TORONTO INC. STATEMENT OF FINANCIAL POSITION Auditor’s Report AS AT DECEMBER 31, 2013
To the Members of the Board of Note December 31, 2013 December 31, 2012 Directors of Invest Toronto Inc. $ $ Financial assets Cash 9 240,613 222,562 Restricted investments 3 50,078 50,078 Amounts receivable 188,806 223,239
479,497 495,879
Liabilities Accounts payable and accrued liabilities 339,005 295,079 Due to related parties 4b 174,514 143,958 Deferred contributions 4c 125,000 125,000
638,519 564,037
Share capital Authorized and issued 1 common share 1 1 We have audited the accompanying generally accepted auditing standards. management, as well as evaluating 638,520 564,038 financial statements of Invest Those standards require that we the overall presentation of the Toronto Inc., which comprise the comply with ethical requirements financial statements. Net debt (159,023) (68,159) statements of financial position and plan and perform the audit to as at December 31, 2013 and the obtain reasonable assurance about We believe that the audit evidence Non-financial assets/(liabilities) statements of operations, changes whether the financial statements we have obtained is sufficient and Tangible capital assets 5 88,875 156,623 in net debt and cash flows for the are free from material misstatement. appropriate to provide a basis for our Deferred capital contributions 6 (88,875) (156,623) year then ended, and the related audit opinion. Prepaid expenses 159,023 68,159 notes, which comprise a summary of An audit involves performing significant accounting policies procedures to obtain audit evidence Opinion 159,023 68,159 and other explanatory information. about the amounts and disclosures In our opinion, the financial in the financial statements. The statements present fairly, in all Management’s responsibility procedures selected depend on material respects, the financial Accumulated surplus - - for the financial statements the auditor’s judgment, including position of Invest Toronto Inc. as at Management is responsible for the the assessment of the risks of December 31, 2013 and the results The accompanying notes are an integral part of these financial statements. preparation and fair presentation material misstatement of the financial of its operations, re-measurement of these financial statements in statements, whether due to gains and losses, changes in net accordance with Canadian public fraud or error. In making those risk debt and its cash flows for the year sector accounting standards, assessments, the auditor considers then ended in accordance with Approved on Behalf of the Board and for such internal control as internal control relevant to the entity’s Canadian public sector accounting management determines is preparation and fair presentation of standards. necessary to enable the preparation the financial statements in order to of financial statements that are design audit procedures that are free from material misstatement, appropriate in the circumstances, whether due to fraud or error. but not for the purpose of expressing an opinion on the effectiveness of Director Director Auditor’s responsibility the entity’s internal control. An audit Our responsibility is to express an also includes evaluating the Chartered Professional Accountants, opinion on these financial statements appropriateness of accounting policies Licensed Public Accountants based on our audit. We conducted our used and the reasonableness of Toronto, Ontario audit in accordance with Canadian accounting estimates made by May 22, 2014
45 46 Invest Toronto 2013 Annual Report Financial Statements
INVEST TORONTO INC. INVEST TORONTO INC. STATEMENT OF OPERATIONS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2013 FOR THE YEAR ENDED DECEMBER 31, 2013
Note Budget 2013 2012 2013 2012 (Note 12) $ $ $ $ $ Operating transactions Revenues Operating surplus/loss - - Operating grant from TPLC 4a 2,616,000 2,518,400 2,458,660 Amortization of tangible capital assets 71,344 89,481 Amortization of deferred capital contributions 6 - 71,344 89,481 Amortization of deferred capital contribution (71,344) (89,481) ICCI Contribution 7 - 49,892 - Straight-line rent adjustment (1,497) (1,497) Other income - 4,229 8,975 (1,497) (1,497)
Total revenue 2,616,000 2,643,865 2,557,116 Change in non-cash working capital balances Accrual of interest on restricted investments - 38 Expenses 4b Amounts receivable 34,433 (26,956) Salaries and benefits 1,688,100 1,665,302 1,590,204 Prepaid expenses (90,864) 25,216 Professional fees and project costs 137,750 123,109 109,742 Accounts payable and accrued liabilities 45,423 (34,703) Office expenses 211,000 209,080 226,321 Due to related parties 30,556 (925,643) Promotion and marketing 175,000 175,941 156,994 19,548 (962,048) Office rent 279,000 263,892 269,115 Cash provided by (applied to) operating transactions 18,051 (963,545) Meetings, seminars and conventions 125,150 135,197 115,259 Amortization of tangible capital assets - 71,344 89,481 Financing transactions Deferred capital contributions received for tangible 3,596 15,925 Total expenses 2,616,000 2,643,865 2,557,116 capital assets Cash provided by financing transactions 3,596 15,925
Operating surplus/loss - - - Capital transactions Acquisition of tangible capital assets (3,596) (15,925) Cash applied to capital transactions (3,596) (15,925) INVEST TORONTO INC. STATEMENT OF CHANGES IN NET DEBT Increase (decrease) in cash during the year 18,051 (963,545) FOR THE YEAR ENDED DECEMBER 31, 2013 Cash at beginning of year 222,562 1,186,107 Cash at end of year 240,613 222,562 Budget 2013 2012 (Note 12) The accompanying notes are an integral part of these financial statements. $ $
Operating surplus/loss - - - Decrease in Deferred capital contribution - (67,748) (73,556) Acquisition of tangible capital assets (9,000) (3,596) (15,925) Amortization of tangible capital assets - 71,344 89,481 (9,000) - -
Acquisition of prepaid expenses - (159,023) (68,159) Use of prepaid expenses - 68,159 93,375 - (90,864) 25,216
(Increase) decrease in net debt (9,000) (90,864) 25,216 Net debt at beginning of year (68,159) (68,159) (93,375) Net debt at end of year (77,159) (159,023) (68,159)
The accompanying notes are an integral part of these financial statements.
47 48 Invest Toronto 2013 Annual Report Financial Statements
INVEST TORONTO INC. INVEST TORONTO INC. NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2013 DECEMBER 31, 2013
1. Nature of operations A liability recognized in this manner is reduced and Office occupancy costs and deferred lease escalations At the end of the five-year term ended December 31, an equivalent amount of revenue is recognized as The Corporation has entered into an operating lease to 2013, the agreement was automatically renewed for Invest Toronto Inc. (the Corporation) was incorporated on the liability is settled. occupy its current head office premises. Rent expense is a one-year period, for a grant amount agreed to by the November 13, 2008 under the Business Corporations recorded in office occupancy costs on a straight-line Board of Directors of both Corporations. The total Act (Ontario) pursuant to S.148 of City of Toronto Act, Transfers used for the purchase of tangible capital assets basis over the term of the lease. Differences between the value of the grant provided by TPLC as at December 2006 and Ontario Regulation 609/06, City Services are deferred and amortized into revenues at a rate straight-line rent expense and the payments, as stipulated 31, 2013 is $2,521,996 (December 31, 2012 – Corporations. corresponding to the amortization rate of the related asset. under the lease agreement, referred to as lease escalations, $2,474,585). Of this balance, $2,518,400 (December are included in accounts payable and accrued liabilities. 31, 2012 – $2,458,660) has been used to fund The City of Toronto owns the one issued common share Financial instruments operations and the remaining $3,596 (December 31, of the Corporation. The mandate of the Corporation is to The following table presents the classification of Use of estimates 2012 – $15,925) has been used to fund capital engage in promotional activities and services to encourage financial instruments: The preparation of financial statements in accordance additions. economic development to and in the City of Toronto and with PSAS requires management to make estimates and all ancillary and collateral matters relating thereto. The Assets/Liabilities Measurement assumptions that affect the reported amounts of assets b) Of the total balance of $174,514 (December 31, Corporation has been classified as an other governmental Cash fair value and liabilities, the disclosure of contingent assets and 2012 – $143,958) due to related parties is an amount organization. Restricted investments amortized cost liabilities at the date of the financial statements and of $174,514 (December 31, 2012 – $48,416) to Due to/from related party amortized cost the reported amounts of revenue and expenses during be reimbursed by the Corporation to TPLC for funds As a municipal corporation under Section 149(1) of Amounts receivable amortized cost the reporting period. Estimates are based on the advanced for operations. There is no set term of the Income Tax Act (Canada), the Corporation is exempt Accounts payable and amortized cost information available at the date of preparation and repayment for these amounts and no interest is being from income taxes. accrued liabilities reviewed annually to reflect new information as it is charged by TPLC. The Corporation has agreed with Restricted investments available. Measurement uncertainty exists in the financial TPLC to share certain administrative, accounting and 2. Summary of significant accounting policies Restricted investments are investments set aside as statements primarily related to impairment in accounts other corporate services on a cost allocation basis. Basis of accounting security for use of a credit facility. receivable and tangible capital assets. Actual results During the year, the Corporation has paid to TPLC These financial statements have been prepared by could differ from those estimates. $112,150 (December 31, 2012 – $111,870) as management in accordance with Canadian Public Sector Tangible capital assets shared services costs. Tangible capital assets are recorded at cost less Accounting Standards (PSAS). The significant accounting 3. Restricted investments policies are as summarized below. accumulated amortization. Amortization is provided on The Corporation had agreed with Build Toronto Inc., a straight-line basis over the estimated useful lives Restricted investments include a guaranteed investment an affiliated company owned by the City of Toronto, to Share capital of the assets as follows: certificate of $50,000, which has been set aside as a share certain administrative, accounting and other The Corporation’s one issued common share is recognized security for a revolving credit card facility. This investment corporate services on a cost allocation basis until as debt and presented separately in the statement of Furniture and fixtures 5 years certificate has an annual yield of 0.8% (December 31, 2012. In the total balance of due to related parties financial position. Computer equipment 3 years 2012 – 0.8%), and a maturity date of October 21, 2014, $0 (December 31, 2012 – $95,542) is owing to Leasehold improvements straight-line over the term of the lease with a provision for redemption after 30 days of acquisition. Build Toronto Inc. for corporate services used. During Revenue recognition Website straight-line basis over the estimated The revolving credit card facility has a $50,000 limit, the year ended December 31, 2012, the Corporation useful life of the website, which is Revenue is reported on the accrual basis of accounting. estimated to be 3 years. and $12,995 (December 31, 2012 – $4,680) has been has paid $18,271 as shared services costs to Build The accrual basis of accounting recognizes revenue as it drawn on it as at December 31, 2013 which is included Toronto Inc. The transactions for shared corporate becomes measurable and collection is reasonably assured. Impairment of tangible capital assets in accounts payable and accrued liabilities. services are measured at the exchange amount, The Corporation reviews the valuation of tangible capital which is the amount of consideration established and The Corporation receives transfers of funds from the assets whenever events or changes in circumstances 4. Related party transactions agreed to by the related parties. Government of Canada, the City of Toronto and the Toronto indicate the carrying value may not be recoverable. When a) The Corporation has received a grant from TPLC, an Port Lands Company (TPLC), which have certain indicators of impairment of tangible capital assets affiliated company owned by the City of Toronto, to c) Deferred contributions include $125,000 received stipulations associated with the use of the funds. These exist, a write down of the residual value is recognized in cover operating and capital expenditures incurred from Economic Development and Culture (EDC) transfers are recognized as revenue in the year in the statement of financial position. Write downs are during the year. This is pursuant to a Grant agreement department, a division of the City of Toronto to fund which these stipulations have been met, except to the not reversed. entered into by the two Corporations for a five year a study to be performed in 2014. extent that the transfers give rise to a liability. period starting in 2009, with a provision for an automatic renewal, for subsequent periods of one year each.
49 50 Invest Toronto 2013 Annual Report Financial Statements
INVEST TORONTO INC. INVEST TORONTO INC. NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2013 DECEMBER 31, 2013
5. Tangible capital assets 7. ICCI Contribution 9. Financial instruments
2013 The Corporation has received a contribution of $49,892 Fair value from the Government of Canada towards eligible The Corporation’s financialinstruments consist of cash, Cost Accumulated amortization Net expenditures incurred pursuant to the Invest Canada- restricted investments, amounts receivable, accounts Community Initiatives (ICCI) of the Global Commerce payable and accrued liabilities and due to/from related $ $ $ Support Program. parties. The carrying values approximate their fair values Computer equipment 57,435 54,768 2,667 due to their short-term maturity. Leasehold improvements 91,936 62,399 29,537 8. Employee benefits Furniture and fixtures 139,936 95,614 44,322 The Corporation makes contributions to the Ontario The Canadian Institute of Charted Accountants Public Website 91,180 78,831 12,349 Municipal Employees’ Retirement Fund (OMERS), Sector Accounting Handbook Section 3450 requires which is a multi-employer pension plan, on behalf of disclosure of a three-level hierarchy for fair value 380,487 291,612 88,875 some of its employees. The plan is a defined benefit measurements based on the transparency of inputs to plan, which specifies the amount of the retirement the valuation of a financial asset or a financial liabilityat benefit to be received by the employees based on the financial statement date. The three levels are 2012 the length of service and rates of pay. Employees and defined as follows: Cost Accumulated amortization Net employers contribute jointly to the plan. • Level 1 – Fair value is based on quoted market prices in active markets for identical financial assets or $ $ $ Since OMERS is a multi-employer pension plan, any pension plan surpluses or deficits are a joint financialliabilities. Computer equipment 55,128 52,968 2,160 responsibility of all Ontario municipalities and Leasehold improvements • Level 2 – Fair value is based on observable inputs 90,646 43,817 46,829 Furniture and fixtures their employees. As a result, the Corporation does other than Level 1 prices, such as quoted market 139,937 67,630 72,307 Website not recognize any share of the OMERS pension prices for similar (but not identical) financial assets 91,180 55,853 35,327 surplus or deficit. The Corporation’s current service or financial liabilities inmarkets that are not contributions to the OMERS pension plan in 2013, 376,891 220,268 156,623 active, and other inputs that are observable or can which were expensed, totalled $115,596 (December be corroborated by observable market data for 31, 2012 – $94,198) and are included in salaries sustainability over the full term of the financial assets and benefits expense. or financial liabilities.
6. Deferred capital contributions • Level 3 – Fair value is based on non-observable inputs that are supported by little or no market Deferred capital contributions consist of the following: activity and that are significant to the fair value 2013 2012 of the financial assets or financial liabilities.
$ $ As at December 31, 2013, cash of $240,613 (December 31, 2012 – $222,562) is classified as Level 1. Balance – Beginning of year 156,623 230,179 Contributions received from TPLC 3,596 15,925 Amortization (71,344) (89,481)
Balance – End of year 88,875 156,623
51 52 53 Invest Toronto 2013 Report Annual as follows: liquidity riskandcurrencyrisk,whicharedescribed range offinancialrisks.Theserisksincludecreditrisk, The Corporation’s operatingactivitiesexpose ittoa Risk management DECEMBER 31,2013 INVEST TORONTOINC. NOTES TOFINANCIALSTATEMENTS • • • other thanthe instru 31, 2013,theCorporationheldnofinancial denominated Virtually alloftheCorporation’s transactionsare within oneyear. 31, 2013,allobligationsoftheCorporationaredue meet commitmentsastheycomedue.AsatDecember Liquidity riskistheofbeingunabletosettleor Revenue Agency. $203,791) is 2013 subsequently toDecember31, received been has amounts receivable,$78,028(2012–$17,535) Corporation’s Canadian The cash the dateoffinancialstatements. at as exposure represents themaximumcreditrisk presented inthestatementof short-term investmentsandamountsreceivableas the Corporation.Thetotalcarryingvalueofcash, insolvency ofacounterpartyonitsobligationto financial lossoccurringasaresultofdefaultor Credit riskonfinancialinstrumentsistheof Currency risk Liquidity risk risk Credit ments and $109,631 (December 31,2012– deposit andGICsareheldbyaSchedule financial institution, which reduces the financial institution,whichreducesthe
that were denominated in currencies that weredenominatedincurrencies
exposure tocreditrisk.Ofthe inCanadiandollars.AsatDecember a GST/HST Canadian dollar.
refund duefromCanada financial position
1 The Corporationdoesnotearnsufficientrevenuesfrom 11. Economicdependence premises areasfollows: Future commitmentsforrentoftheCorporation’s 10. Commitments by theBoardofDirectorsCorporation. prepared predominantlyonacashbasisandapproved purposes, andhavebeenderivedfromtheestimates Budgeted figureshavebeenprovidedforcomparison 12. Budgetedfigures on TPLCtofunditsongoingoperations. As aresult,theCorporationiseconomicallydependent sources otherthanTPLCtofunditscurrentoperations. 2015 2014 201,065 114,894 86,171
$
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