The Annual Report 2020 Foreign Investment in France

Annual Report

2020

Foreign investment in France

2020 Contents

6 2 FOREWORD France, 8 a resilient economy EDITORIAL

10 20 2020 SUMMARY INVESTORS TRUST FRANCE AS A PLACE TO SET UP BUSINESS

31 NUMEROUS PARTNERSHIPS AND FACILITY UPGRADES STRENGTHEN FRANCE’S ECONOMY

1 34 HOW BUSINESS FRANCE RESPONDED International context TO BUSINESSES' NEEDS

4 4 The contribution of foreign subsidiaries to the French economy 3 Regional attractiveness in 2020 5 38 Source country FOREIGN INVESTMENTS MADE THROUGHOUT FRANCE’S REGIONS overviews

46 FRANCE’S INCREASING ATTRACTIVENESS IN ACTIVITIES WITH HIGH VALUE ADDED

58 PROJECTS IN A VARIETY OF SECTORS

64 ATTRACTIVENESS DIFFERENTIATED 6 BY REGIONAL SPECIALIZATIONS Appendices

5 RAPPORT 2020 - BUSINESS FRANCE INVESTISSEMENTS INTERNATIONAUX EN FRANCE

"Our goal ultimately remains the same: to make France the most attractive country in Europe."

Bruno Le Maire Franck Riester Minister for the Economy and Finance Minister Delegate reporting to the Minister for Europe and Foreign Affairs, with responsibility for Foreign Trade and Economic Attractiveness

6 PREFACE

The 2020 Annual Report on Foreign with today’s world of work. With two This plan, which invests in strategic Investment in France was eagerly major reforms in particular, the PACTE sectors and associated skills, was rolled awaited. Firstly, as in 2019 France had Act of 2019, relating to business growth out quickly, with €11 billion having been become Europe’s leading country in and transformation, and the ASAP Act pledged at the end of 2020. We are terms of attractiveness; and secondly, as of 2020, relating to the acceleration and accelerating its implementation in 2021, the Covid-19 crisis had generated an simplification of public action, we have with the aim of drawing on an additional unprecedented decline in investment made life even easier for businesses, by €40 billion in funds. flows worldwide. reducing their administrative requirements. As of March 1, €26 billion has been used The results are now in and they are since last September. The twenty largest reassuring. This is the second-best Developing your business in France has investment projects selected to benefit performance France has recorded in 10 never been easier. We have initiated from the industrial regions’ acceleration years in terms of job creation, with the unprecedented tax cuts. For businesses, fund are led by foreign businesses, 1,215 foreign investment projects which will have seen their corporate tax together representing more than €500 recorded having created or maintained rate fall from 33% to 25% between 2017 million of investment. Furthermore, the 35,000 jobs throughout the country. and 2022. To free up household National Investment Program to These results reflect France’s robustness purchasing power, by lowering income promote technological innovation has and how the country has remained a tax by €10 billion and by completely been judged attractive by 88% of foreign winning choice for foreign businesses, eliminating residence tax by 2022. And, business executives. “Relaunch France” having weathered the storm better than finally, to free up investment: this is the has doubled its capacity, with €11 billion most of its partners, both in Europe and meaning behind the reforms on tax on set to be invested over 2021-2022. around the world. high incomes. We continue to invest heavily in our infrastructure, in the This Annual Report is also marked by the International investments were already economy of tomorrow and in the skills size and share of projects of European making a considerable contribution to required for it to flourish. origin, which equates to nearly two- France’s prosperity and they will play a thirds of the total. Beyond geographical decisive role in the country’s successful It is also a sign that our emergency and proximity, this demonstrates the recovery. The 16,600 foreign businesses stimulus measures are going in the right strength of the internal market for established in France account for 2.3 direction. From the start of the pandemic, businesses, but also the will of the EU million jobs, more than 20% of the we have drawn on more than 20% of our member states to actively build the economy’s revenues, more than 14% of national wealth, or €500 billion, to strategic and industrial autonomy that business investment and nearly one- support businesses and protect we need, by creating more European third of exports. Importantly, foreign employment, by deploying one of the and more integrated value chains. businesses that set up in France also do largest economic safety nets in Europe. so to conquer international markets. With our “Relaunch France” plan, we are These results reinforce the priorities further accelerating transformations to identified by the President of the We see this as a sign that three years of make France even more competitive, Republic, which we have been reforms have strengthened the develop skills and ecosystems in future implementing since 2017. This fundamental elements that are now sectors, such as hydrogen or quantum momentum will be maintained, and the enabling our economy to withstand the technology, aiming to be less carbon- reforms already begun will be crisis. Praised by investors, the reforms intensive and even more attractive to accelerated, to support the carried out by the government under the foreign businesses. As such, we are competitiveness, innovation and revival leadership of President Emmanuel investing an additional €100 billion to of the French economy and build Macron have enabled France to face emerge stronger from this crisis. employment and skills. Our goal current and future economic and ultimately remains the same: to make technological challenges. One particularly noteworthy change is France the most attractive the unprecedented and lasting reduction We have created a more flexible and in production taxes, which began on secure social environment, more in line January 1, 2021 of €10 billion per year.

7 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

"In 2020, it was all about being resilient. In 2021, it’s all about the recovery."

Pascal Cagni Christophe Lecourtier Chairman of the Board, Business CEO, Business France France, and Ambassador for International Investment

8 FOREWORD

Several months of lockdown in France 4%. As for the number of projects in R&D, attractiveness of the Ile de France/Paris and around the world, the closure of although decreasing, it remains at a high region and France’s other main cities has many borders for long periods during level, with 146 projects, a figure higher not harmed other regions: given their 2020, and the sudden fall of nearly 40% than those registered in 2018 (129) and respective economic weight, Occitanie, in foreign direct investment globally: 2017 (125). Bourgogne-Franche-Comté and Grand everything indicated that the number of Est welcomed a higher number of job-creating foreign investment projects Finally, strategic sectors are making clear projects than the Paris region. in France was going to collapse. progress. Healthcare projects recorded an increase of 40%. The majority are This Annual Report, positive in more However, this was not the case: Business expansions of production facilities, such ways than one, should make us feel France and France’s regions identified as Recipharm, the Swedish producer of optimistic. It is the fruit of France’s 1,215 projects in 2020, more than 23 per messenger RNA vaccines (Centre-Val de structural key strengths and the buoyant week. Their decrease in number, -17%, Loire), and Fresenius, the German reforms carried out by the government. must be put into perspective for two specialist in the treatment of renal failure, Furthermore, it reflects the great reasons: firstly, 2019 was an exceptional based near Lyon (Auvergne-Rhône- confidence that France inspires in year, with an 11% rise compared with Alpes), which both created a hundred foreign investors, which has been further 2018, which was itself a very good year. jobs. strengthened by the exceptional Secondly, this figure is in line with the initiatives to support and revive the average (1,233 projects) of the previous Renewable energy attracted 13% more economy taken over the past year. five years. In addition, the score in terms projects and the number of jobs of jobs created or maintained by these generated has almost doubled. The Finally, as Pierre Corneille wrote, “the projects – 34,567 – is higher than the American firm Clarios is investing in the manner of giving is worth more than the average for 2015-2019 (33,424) and is Lorraine area of the Grand Est region to gift”. Our attractiveness will also benefit 14% higher than in 2018. manufacture batteries, the Irish producer from the ongoing improvement in of photovoltaic energy Amarenco is welcoming investors: with a shared If we then look at these projects in more expanding in Lagrave (Occitanie) and desire, the key players of Team France detail, several satisfactory elements Canadian company Boralex is continuing Invest, and the team behind France’s emerge. to build wind power plants in Montélimar attractiveness, bringing together (Auvergne-Rhône-Alpes). Business France, the regions, the One quarter of the projects aimed to prefectures, Bpifrance and the Banque establish or expand a production facility, The ecological transition is indeed a key des Territoires, are stepping up their representing more than 37% of jobs part of France’s attractiveness, as seen efforts in order to optimize prospecting created or maintained, or nearly 13,000. by 89% of the leaders of foreign and support projects. In 2020, it was all The German company Siemens stands businesses. However, we should about being resilient. In 2021, it’s all about out, with the recruitment of 850 people remember that certain sectors are the recovery. to accelerate its development in electric suffering severely from the pandemic, in mobility, automation and energy storage. particular the hospitality/catering and Such attractiveness supports France’s aerospace industries, where the number industrial redevelopment strategy. of projects has fallen by half, as well as in Furthermore, 80% of foreign executives transport and storage. consider French industry to be attractive, according to the 2020 Kantar survey on There are now 60 source countries for France’s attractiveness. projects, with some of them growing sharply: Ireland (+50% of projects), the In addition, several key sectors cushioned Netherlands (+43%), Spain (+9%) and the shock, such as logistics, where Denmark (+7%). Lastly, with regard to investments held up, and business the geographical distribution of these services, which recorded a drop of only projects, we are pleased to note that the

9 BUSINESS FRANCE-ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

2020 SUMMARY

Foreign investment in France FRANCE, A RESILIENT ECONOMY 1 ,215 INVESTMENT DECISIONS

CREATING 56% OR MAINTAINING 34,567 OF PROJECTS ARE JOBS SUPPORTED BY BUSINESS FRANCE

-17% FALL IN INVESTMENT DECISIONS SINCE 2019, VERSUS -19% IN EUROPE AND -33% WORLDWIDE 23 INVESTMENT 2020 WAS THE SECOND DECISIONS PER BEST YEAR IN 10 YEARS FOR INVESTMENT WEEK

-13% FALL IN EMPLOYMENT VERSUS 2019 BUT UP +14% ON 2018

PROJECTS JOBS NUMBER OF PROJECTS AND JOBS 52% BY INVESTMENT TYPE OF DECISIONS WERE INVESTMENTS AT NEW SITES 637 CREATION 11,698 504 EXPANSION 18,111 74 TAKEOVER 4,758

85% OF FOREIGN SUBSIDIARIES IN 90% FRANCE BELIEVE THAT THE COUNTRY OF BUSINESS LEADERS IS AN ATTRACTIVE FOREIGN ARE PLEASED WITH THEIR INVESTMENT DESTINATION INVESTMENT IN FRANCE Business France/Kantar survey Business France/Kantar survey

10 2020 SUMMARY

THE HEALTHCARE AND ENERGY MANUFACTURING REMAINS TOP FOR INVESTMENTS SECTORS ARE EXTREMELY ATTRACTIVE

Medical expertise is TOP 3 perceived as a specific BUSINESS ACTIVITIES strength of FRANCE in comparison with its European neighbors 308 Business France/Kantar survey PROJECTS 274 PROJECTS 163 MANUFACTURING DECISION PROJECTS +40% MAKING RETAIL IN INVESTMENTS CENTERS OUTLETS IN HEALTHCARE

MANUFACTURING R&D, ENGINEERING France’s aims for the ecological transition has boosted its attractiveness Business France/Kantar survey +13% in investments in the energy sector 1/4 of investments were in manufacturing 12% TOP 5 INVESTING COUNTRIES activities OF INVESTMENTS WERE IN R&D/ENGINEERING ACTIVITIES 17% UNITED STATES

37% 16.5% GERMANY OF TOTAL EMPLOYMENT 10% UNITED KINGDOM

8% ITALY EUROPE, THE LEADING SOURCE 7% NETHERLANDS OF INVESTMENT

DYNAMIC COUNTRIES 64% DURING THE CRISIS EUROPE +33% NETHERLANDS

IRELAND 20% +50% NORTH AMERICA +62% IN INVESTMENTS +9% SPAIN 10% IN MODERNIZATION ASIA +7% DENMARK

11 1 International context BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

INTERNATIONAL CONTEXT

THE COVID-19 PANDEMIC WEIGHS HEAVILY the benefit of certain regions during the pandemic. ON ECONOMIES AND SOCIETIES Emerging countries are the main recipient countries of FDI flows, hosting 70% of the total amount. China became the The Covid-19 crisis has had an unprecedented impact on main host country for FDI inflows with US$163 billion, all world economies, with global GDP shrinking by -3.5%1 in followed by the United States with US$134 billion. Within 2020. Although the discovery of a vaccine may lead to an Europe and in relative terms, FDI flows have declined exit from this crisis, the resumption of the pandemic in drastically in the United Kingdom, Italy, Russia and several economies and the containment measures are Germany. once again slowing the global economic recovery and are likely to induce further production cuts in the short term. DESPITE A CERTAIN WAIT-AND-SEE APPROACH, THERE IS RENEWED In this context of uncertainty, the global economy is CONFIDENCE IN FRANCE nevertheless expected to grow by 5.5% in 2021 and 4.2% in 2022. The forecasts for 2021 have been revised upwards Despite the effects of the Covid-19 crisis, foreign businesses by 0.3 percentage points compared with the previous established in France are not currently considering curbing estimates, reflecting expectations of increased vaccine- their activities in France: for more than half of them (60%), related activity later in the year and additional political projects in France were maintained or expanded and only support in a few large economies. 6% abandoned them. On the other hand, in a sign of the ambivalence between the desire for continuity and a wait-and-see attitude, more than one-third of foreign At the height of the health crisis in April 2020, more than business executives established in France (34%) report that half of business leaders, interviewed by EY on the trends projects have been postponed. that would accelerate the most over the next three years as a result of the Covid-19 crisis, answered: a reversal of globalization. These responses reflect the uncertainty and aversion to the risks brought about by the Covid-19 90% of senior executives of foreign businesses pandemic. Has the crisis impacted the establishment strategies of multinational firms and their investment established in France draw a positive projects? conclusion of their investment in France

Foreign investment plans have declined in almost every country in the world following the Covid-19 pandemic, The health crisis has led to a strong feeling of uncertainty. with a drop of -33% globally. North America is the region However, there is renewed confidence in France, with 90% of the world where foreign investment projects declined of senior executives of foreign businesses established in the least (-7%). France has therefore cushioned the shock France draw a positive conclusion of their investment in and shown resilience, with a recorded drop in foreign France. Moreover, 48% of them consider that they are investment of -17%, compared with -39% in Western expanding further in France, while 42% think that their Europe. growth has been stable and only 10% believe that it is decreasing.

« Exceptionnel » : The -33% drop in project numbers is close to that Finally, France’s attractiveness remains at a high level: 85% observed in 2020 for global foreign direct investment of senior executives abroad consider it to be attractive, or c’est le mot qui vient d’emblée flows of around -42% according to UNCTAD. We have also two points less than in 2019. seen a redistribution of foreign direct investment flows to à l’esprit pour cette édition 2019 du Bilan des investissements étrangers en France. 1 World Economic Outlook Updates, IMF, January 2021

14 1 . INTERNATIONAL CONTEXT

MOST OF THE MEASURES RELEVANCE OF MEASURES IN THE “RELAUNCH FRANCE” PLAN ARE DEEMED TO BE RELEVANT TO SUPPORT FDI 1 2

Supportive macroeconomic policies, as well as structural Lowering taxes National measures to preserve confidence and reduce uncertainties on production investment until the widespread deployment of an effective vaccine, program have been adopted by many governments. These measures aim to support employment and strengthen the economy’s buoyancy by promoting the reallocation of resources to the 81% 84% most efficient sectors. relevant relevant The French government has announced a ¤100 billion “Relaunch France” economic stimulus plan, which is considered to be among the most ambitious in Europe.

Among the main measures, the reduction of ¤10 billion in Source: Business France/Kantar survey on France's attractiveness, 2020 production taxes, subsidies for the hiring and the purchase or rental of vehicles, and the increase in public investment, as well as additional funding assigned to training, will largely The “National Investment Program” of ¤11 billion by 2022 support the recovery over the next two years. The renewal (84%) to support innovation and investment in of emergency measures and the already programmed cuts technologies of the future, and the reduction of production in housing tax and corporate tax, as well as the increase in taxes (81%), are the two most relevant measures in the eyes health sector budgets, will also help to partially mitigate the of the executives of foreign businesses established in negative impact of the crisis on household income and France: beyond the tax question it is important, in their corporate profit margins. eyes, to prepare the future of the French economy.

The French authorities have also extended emergency measures to promote hard-hit sectors and businesses to reduce their costs (temporary tax exemptions and the payment of a large fraction of salaries under short-time work schemes) and to facilitate their financing (thanks to METHODOLOGY the State guarantee of their loans and to a system of BUSINESS FRANCE/KANTAR SURVEY ON long-term equity loans intended to provide businesses with quasi-equity). At the same time, in most sectors, the FRANCE’S ATTRACTIVENESS TO BUSINESS capping of coverage by short-time work schemes and the In November 2020, Kantar Public conducted a survey additional funds allocated to training will encourage the for Business France of foreign executives who had redeployment of resources. chosen to set up in France or not. The aim was to identify how France is perceived in terms of economic The short and long-term measures of the stimulus plan are attractiveness and to gain an insight into how well received and their anticipated impact on businesses, investment location decisions are made. but also on the attractiveness of the country as a whole, is largely positive. Emergency economic support measures The survey was conducted by telephone and polled (guaranteed loans, short-time working, postponement of 902 foreign businesses, including 705 opinion leaders tax and social security deadlines) are viewed very positively in the United States, China, India, United Kingdom, by 80% of managers in their ability to support business Germany, Italy and Switzerland, along with 197 senior activity during this crisis. executives from foreign businesses in France.

15 En % 6

-2

-4

-6

-8

BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE -10 Figure 2. Evolution du nombre de créations d'entreprises En centaine de milliers -12

900 as Italy Spain France ys-B a P Germany 800

700

600

500 Figure Indice de la production industrielle 400

300 110

105 200 100 100 95 0 T1 T3 T1 T3 T1 T3 T3 T1 T1 T3 T3 T3 T1 T1 T3 T1 T1 T3 T1 T3 T3 T1 T1 T3 T1 T3 T3 T1 90 T1 T3 T1 T3 T3 T1 T1 T1 T3 - - - - - 2 - 5 1 - 1 - 2 5 19 - 13 - 12 - 10 - 10 - 11 - 11 - 1 2 09 - 07 - 07 - 08 - 08 - 09 - 17-T3 18 - 18 - 19 - 16 - 1 7 15 - 15 - 16 - 14 - 14 - HIGHER GROWTH RESUMPTION13 - THAN by around 1.5 percentage points in 2021, compared with a 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2006 - 2006 - 2 0 2 0 2 0 2 0 2 0 20 0 20 0 20 0 20 0 20 0 2003 - 2003 - 2004 - 2004 - 20 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 IN OTHER EURO ZONE COUNTRIES 85 scenario without a stimulus plan.

80 The OECD has published its growth forecasts for 2021 and In the Banque de France’s main scenario, the rebound in 2022, with global GDP growth due to be 5.6% this year, up 75activity in 2021 in France should be supported not only by one percentage point from the OECD Economic Outlook in that of household consumption but also by that of public December 2020. 70demand. On the one hand, public sector activity should 65return to normal, after being severely reduced during the For 2021, France's forecast is good, with the strongest first lockdown. On the other hand, public investment growth in Europe, and one of the strongest performances 60should rebound markedly, notably under the effect of the

among the countries compared of 5.9%, ahead of the stimulus2019 plan.2019 May - 2019 July - 2019 June -2019 May - 2020 April - July - 2020 June - 2020 April - 2020

United Kingdom (5.1%) and Germany (3%). March - March - 2020 August - 2019 August - 2020 October - 2019 January - 2019 October - 2020 January - 2020 February - 2019 February - 2020 December - 2019 December - 2020 November - 2019 November - 2020 September - 2019 The stimulus plan’s measures aimed at householdsSeptember - 2020 and These forecasts are in line with those of other economic businesses, in the form of subsidies or transfers, are set to France United Kingdom Germany organizations: the French Ministry for the Economy, Finance and the Recovery predicts 8% growth, the Banque de France “at least 5%” and the European Commission En Md$ FiguFig.re 1. Flux 1 d’IDE ECONOMIC entrants : top 10 desGROWTH pays d’accueil, FORECASTS 2018 et 2019 (milliards de dollars US) Chap1.1 5.5%. India The latest estimates from the Treasury Directorate (DGT) predict a decline in GDP of 10% in 2020, then a rebound of China 8% in 2021. In 2021, GDP will be 2.7% below its 2019 level. United States Beyond their assessment of the depth of the crisis (2020) and the strength of the rebound (2021), the most recent Turkey forecasts for France all place 2021 GDP between two and four points below its level in 2019. These latest estimates France were able to include: Spain

• The relatively sharp rebound in activity during summer United Kingdom 2020 in France. Indonesia

• The deterioration, in France and among our partners, of Canada the health situation since the end of the summer, which could slow down consumption and activity at the end of Argentina 2020 and which should gradually return to normal during 2021. Germany 0 2 4 6 8 10 12 14 % • The economic stimulus plan announced on September 3, 2021 2022 some measures of which (hiring bonus, for example) are Source: OECD Economic Outlook, 2021. already in place and which should raise the level of GDP

16 En % 6

0 1 . INTERNATIONAL CONTEXT

-2

-4

-6

-8

-10 Figure 2. Evolution du nombre de créations d'entreprises En centaine de milliers -12

900 as Italy Spain France ys-B a P Germany 800

700

600

500 help strengthen the rebound in private investment in 2021. Figure Indice INDEX de la production OF INDUSTRIALindustrielle PRODUCTION 400 Fig. 2 The cut in taxes on production should strengthen 300corporate margins, with, very gradually, effects on activity. 110 Conversely, a sustainable inventory reduction movement 105 200on the part of businesses would weigh on the recovery of GDP, in particular in 2021. 100 100 The recovery in activity should continue in 2022, with 95 0 growth still sustained, at 5%, mainly carried by the return T1 T3 T1 T3 T1 T3 T1 T3 T1 T3 T3 T1 T3 T1 T3 T1 T1 T3 T1 T3 T1 T3 T1 T3 T1 T1 T3 T3 90 T1 T3 T1 T3 T3 T1 T1 T1 T3 - - - - - 2 - 2 5 5 1 - 1 - 07 - 07 - 08 - 08 - 09 - 09 - 10 - 10 - 11 - 11 - 1 2 12 - 13 - 19 - 13 - 14 - 14 - 15 - 15 - 16 - 16 - 1 7 17-T3 18 - 18 - 19 - 20 0 2006 - 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 20 0 2003 - 2003 - 2004 - 2004 - 20 0 20 0 2006 - 20 0 20 0 to normal of private consumption, with2 0 the2 0 2 0 2 0 lifting2 0 2 0 2 0 2 0 2 0 of2 0 2 0 2 0 restrictive measures. The stimulus plan is expected to 85 continue to support private and public investment in 2022, 80 with activity set to return to its pre-crisis level in mid-2022. 75 The latest forecasts from the European Commission 70 establish that French economic activity is expected to grow by 5.5% in 2021. France is expected to rebound more 65 strongly than most other countries in the euro zone. 60

In addition, we can observe from May 2020 that industrial 2019 2019 May - 2019 July - 2019 June -2019 May - 2020 April - July - 2020 June - 2020 April - 2020 March - production rebounded significantly in Europe, and more March - 2020 August - 2019 August - 2020 October - 2019 January - 2019 October - 2020 January - 2020 February - 2019 February - 2020 December - 2019 December - 2020 November - 2019 November - 2020 September - 2019 particularly in France. The decline in production observed September - 2020 in all sectors was more moderate in capital goods (-5.2%), France United Kingdom Germany agri-food industries (-2.1%) and mining, energy, water (-1.9%). Source: Eurostat, 2021 En Md$ Figure 1. Flux d’IDE entrants : top 10 des pays d’accueil, 2018 et 2019 (milliards de dollars US) Chap1.1 The business climate is recovering and after a general fall in investment in 2020, business leaders in the India manufacturing industry surveyed by INSEE in January China 2021 predict a strong rebound in their investment, with a 10% increase in revenues. The recovery in investment is United States expected to be very dynamic in the manufacture of capital goods. Turkey

France All of these elements lead us to be optimistic. France appears to be rather well placed in its capacity to emerge Spain from the Covid-19 crisis and to bounce back. United Kingdom

Indonesia

Canada

Argentina

Germany

0 2 4 6 8 10 12 14 % 2021 2022

17 2 France, a resilient economy

20 INVESTORS TRUST FRANCE

31 FINANCIAL INVESTMENTS

34 HOW BUSINESS FRANCE RESPONDED TO BUSINESSES' NEEDS BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

INVESTORS TRUST FRANCE AS A PLACE TO SET UP BUSINESS

In a context of a sharp decline in investments, where location, with 90% of the executives of foreign uncertainty weighs heavily on the global economy, businesses set up in France drawing a positive France has shown resilience. The crisis interrupted the impression of their investment in France. Moreover, 48% positive momentum of 2019 but has not challenged of them believe that their presence in France has tended to the attractiveness of France for investment. expand, 42% of them that it has stayed the same, versus only 10% who believe it has diminished. FRANCE ATTRACTED 1,215 NEW FOREIGN These buoyant levels of inward investment come at a time INVESTMENT DECISIONS IN 2020 of renewed confidence among economic decision-makers. According to the Kantar-Business France survey, nearly France attracted 1,215 new foreign investment decisions in nine in 10 chief executives (85%) believe that France is an 2020, a smaller decrease than that felt worldwide (-33%). attractive foreign investment destination. Jobs created or maintained by foreign subsidiary investments were also down by 13% since last year. The shock was nevertheless softer on the creation of employment, as with 34,567 jobs, 2020 was the second best year in the last decade. With the health crisis, the uncertainty is palpable, however, there is renewed confidence in France as an investment RECORDING PHYSICAL INVESTMENTS FROM Chap 2 Figure 1. Evolution des projets et emplois associés Figure 8. Contribution par pays à l’évolution des emplois CHANGE IN PROJECT AND JOB NUMBERS (2014-2020) THE FIRST JOB CREATED Fig. 1 The Business France Annual Report examines all En % 1,800 45,000 foreign12 investment projects that create or maintain jobs in France and details the number 39,542 1,600 40,000 of jobs that each project generates. It provides

detailed10 statistical analysis by business sector, 34,567 business activity, investment type, source 1,400 33,682 33,474 35,000 country and host region. 30,108 30,302 8 1,200 30,000 Until 2014, and in contrast with practices at other 26,535 investment promotion agencies in Europe, or at private consulting firms, only projects creating 1,000 25,000 at 6least 10 jobs were recorded in the Annual Report. This size criteria did not apply to first- 800 20,000 time investments in Europe and to projects in high4 value-added sectors (R&D, design, 600 15,000 engineering, headquarters, and business consulting). 1,014 962 1,117 1,297 1,323 1,468 1,215 2 400 10,000 With a view to providing a clearer picture of the competitive environment and the realities of 200 5,000 job-creating foreign investment, Business 0 France decided from 2014 onwards to count all g as

quie Inde Italie investment decisions in FranceChine from theSuède very unisie ur ts-Unis Irlande ys-B T Canada 0 0 T a Espagne Portugal embour P aume-Uni Éta Danemark Singapour y Allemagne 2014 2015 2016 2017 2018 2019 2020 orée du Sud first o job created. Lux C R Projects Jobs (right axis)

Source: Business France, Annual Reports Figure 2 Figure 9. Contribution par fonction à la hausse des projets

Point de vente

% Production / Réalisation

8% 14% Logistique 2% Total R&D, ingénierie, design

positive Services aux particuliers 90% Centre de décision 76% Services aux entreprises

En % -3 -2 -1 0 1 2 3 4 5 6 7 8 Figure 3

Figure 10. Contribution par fonction à la hausse des emplois %

13% Point de vente 2% Production / Réalisation 45% Total attractive Services aux entreprises 41% 85% Centre de décision

R&D, ingénierie, design

Logistique

Figure 4. Répartition des projets selon les emplois créés ou maintenus en 2020 Services aux particuliers

En % 0 2 4 6 8 10 12% 1% 33% Size of projects Less than 10 20% 10 to 19 Figure 5. Composition sectorielle des emplois dans la production en France 20 to 49 50 to 249 % % 250 and over 20 100

33% 16 80

12 60 Figure 5

Répartition des projets par type d'investissement 8 40 Expansion following takeover Expansion following buyout 1% 2% 4 20

0 0

Takeover 3% Creation Agri-food equipment equipment Expansion and devices Metalworking

Aerospace/naval/railway

Figure 11. Composition sectorielle des projets de production en France

En % En % 25 100

20 80 Figure 6. Répartition des projets en fonction de la taille de la société mère en 2020

15 60

Large corporates 10 40

SMEs 5 20

Mid-size companies 0 0

Micro- enterprises Machines et Automobiles Équipements électroniques Ameublement Aéronautiques, BTP, matériaux Médicaments et % de construction Agroalimentaire Chimie, plasturgie Verre, céramique, Énergie, recyclage

Textile, habillement 0 10 20 30 40 50 60 70 navals et ferroviaires Parfums, cosmétiques médico-chirurgicaux minéraux, bois, papier Équipements électriques, équipements mécaniques Composants électroniques Métaux, travail des métaux biotechnologies appliquées

Figure 12. Composition sectorielle des emplois dans la production en France

Figure 7. Répartition des projets par région d’origine en 2020

2% Attractivité de la France pour les investissements en R&D Africa Middle East 1% 3% Other Sous-total « Pas attractive » En % Sous-total « Attractive » Asia Proximité des marchés et des autres activités de l'entreprise 14 1 13 44 42 86 10% Qualité des personnels de R&D 14 1 14 50 36 86

Proximité de clusters français 15 2 14 50 35 85 North 20% Europe America Possibilités de collaboration avec des équipes 64% de recherche académiques françaises 18 1 17 44 38 82

Niveau des aides publiques de la R&D 20 3 17 47 34 81

Accès au financement 20 3 18 52 28 80

Coût des activités de R&D 22 2 20 46 33 78

Opportunités d'investissement par acquisition d'entreprises françaises 22 5 18 47 31 78

Création Creation

Principales contributions par secteur à l'évolution des emplois

Extension Expansion Pharmaceuticals and biotechnologies Medical equipment and devices Energy and recycling Reprise Takeover Telecoms, internet service providers Consulting and business services Electronic components Expansion following Glass, ceramics, minerals, wood, paper Rachat-extension buyout Media, publishing Machinery and mechanical equipment Perfumes, cosmetics Expansion following Agri-food Reprise-extension takeover Metalworking % Electrical/IT equipment 0 10 20 30 40 50 60 Financial services and insurance Sport and leisure Textiles and accessories Wholesale and retail Chemicals, plastics Transport, storage Hospitality, tourism and restaurants IT services Aerospace, naval and railway equipment % -5 -4 -3 -2 -1 0 1 2 3 Chap 2 Figure 1. Evolution des projets et emplois associés Figure 8. Contribution par pays à l’évolution des emplois

En % 1,800 45,000 12

39,542 1,600 40,000

10 34,567 1,400 33,682 33,474 35,000

30,108 30,302 8 1,200 30,000 26,535

1,000 25,000 6

800 20,000

4 600 15,000

1,014 962 1,117 1,297 1,323 1,468 1,215 2 400 10,000

200 5,000 0

g as

Figure 2 Figure 9. Contribution par fonction à la hausse des projets

Point de vente

% Production / Réalisation

8% 14% Logistique 2% Total R&D, ingénierie, design

positive Services aux particuliers 90% Centre de décision 76% Services aux entreprises

En % -3 -2 -1 0 1 2 3 4 5 6 7 8 Figure 3

Figure 10. Contribution par fonction à la hausse des emplois %

13% Point de vente 2% Production / Réalisation 45% Total attractive Services aux entreprises 41% 85% Centre de décision

R&D, ingénierie, design

Logistique

Figure 4. Répartition des projets selon les emplois créés ou maintenus en 2020 Services aux particuliers

En % 0 2 4 6 8 10 12% 1% 33% Size of projects Less than 10 20% 10 to 19 Figure 5. Composition sectorielle des emplois dans la production en France Chap 2 Figure 1. Evolution des projets et emplois associés 20 to 49 Figure 8. Contribution par pays à l’évolution des emplois 50 to 249 % % 250 and over 20 100 En % 1,800 45,000 12

33% 39,542 16 80 1,600 40,000

10 34,567 12 60 1,400 33,682 33,474 35,000 Figure 5 30,108 30,302 Répartition des projets par type d'investissement 8 1,200 30,000 8 40 26,535 Expansion following takeover Expansion following buyout 1,000 1% 25,000 2% 4 6 20

800 20,000

0 4 0 600 Takeover 15,000 Chap 2 Figure 1. Evolution des projets et emplois associés Figure3% 8. Contribution par pays à l’évolutionCreation des emplois Agri-food equipment equipment Expansion and devices 1,014 962 1,117 1,297 1,323 1,468 1,215 Metalworking Glass, ceramics, 52% Pharmaceuticals 2 service providers 41% Chemicals, plastics Telecoms, internet 400 10,000 Medical equipment Textiles/accessories Automotive industry and biotechnologies Energy and recycling Consumer electronics Building, construction Electronic components En % Machinery/mechanical minerals, wood, paper 1,800 45,000 Aerospace/naval/railway 12 200 5,000 Figure 11. Composition sectorielle des projets de production en France 39,542 0 1,600 40,000 g En % as En % quie Inde Italie Chine ur Suède unisie 10 ts-Unis Irlande ys-B T Canada 0 0 T a Espagne Portugal embour P aume-Uni Éta Danemark Singapour 25 y Allemagne 100 34,567 2014 2015 2016 2017 2018 2019 2020 orée du Sud o Lux C 1,400 33,682 33,474 35,000 R

30,108 30,302 8 20 80 1,200 30,000 Figure 2 Figure 9. Contribution par fonction à la hausse des projets 26,535 Figure 6. Répartition des projets en fonction de la taille de la société mère en 2020

1,000 25,000 6 15 60

Point de vente Large 800 20,000 corporates % 10 40 4 Production / Réalisation 600 15,000 SMEs 8% 14% 5 Logistique 20 1,014 962 1,117 1,297 1,323 1,468 1,215 2 400 10,000 2% Mid-size companies R&D, ingénierie, design Total 0 0 200 5,000 2 . FRANCE, A RESILIENT ECONOMY 0 Micro- positive Services aux particuliers g enterprises as Machines et quie Inde Italie Automobiles Chine Équipements ur Suède unisie ts-Unis Irlande ys-B T Canada électroniques Ameublement 0 0 T 90% a Aéronautiques, BTP, matériaux Médicaments et Espagne Portugal de construction Agroalimentaire embour P aume-Uni Éta Danemark % Singapour Verre, céramique, y Allemagne Chimie, plasturgie Énergie, recyclage 2014 2015 2016 2017 2018 2019 2020 orée du Sud o Lux C R Centre de décision Textile, habillement 0 10 20 30 40 50 60 70 navals et ferroviaires Parfums, cosmétiques médico-chirurgicaux minéraux, bois, papier Équipements électriques, équipements mécaniques Composants électroniques Métaux, travail des métaux 76% biotechnologies appliquées Services aux entreprises Figure 2 Figure 9. Contribution par fonction à la hausse des projets Figure 12. Composition sectorielle des emplois dans la production en France En % -3 -2 -1 0 1 2 3 4 5 6 7 8 WHAT OVERALL OPINION WOULD YOU SAY Figure 7.Figu Répartitionre 3 WOULD des projets par YOU région d’origineSAY THAT en 2020 FRANCE IS AN ATTRACTIVE Fig. 2 THAT DIRECTORS FROM YOUR GROUP HOLD ABOUT Fig. 3 DESTINATION FOR FOREIGN INVESTMENT? THEIR INVESTMENT IN FRANCE? Point de vente 2% Attractivité de la France pour les investissements en R&D Africa 1% Figure 10. Contribution par fonction à la hausse des emplois % Middle% East 3% Other Production / Réalisation Sous-total « Pas attractive » En % Sous-total « Attractive » Asia Proximité des marchés 8% 14 1 13 44 42 86 14% 13% et des autresPoint activités de vente de l'entreprise 10%Logistique 2% 2% Qualité des personnels de R&D 14 1 14 50 36 86 Production / Réalisation R&D, ingénierie, design 45% Total Total Proximité de clusters français 15 2 14 50 35 85 North 20% attractiveEurope America Services aux entreprises positive Services aux particuliers Possibilités de collaboration avec des équipes 64% 85% de recherche académiques françaises 18 1 17 44 38 82 90% 41% Very positive Yes, completely agree Centre de décision Centre de décision Niveau des aides publiques de la R&D 20 3 17 47 34 81 Mostly positive Yes, fairly so 76% R&D, ingénierie, design Mostly negative Services aux entreprises Not really Accès au financement 20 3 18 52 28 80 Very negative Not at all En % CoûtLogistique des activités de R&D 22 2 20 46 33 78 -3 -2 -1 0 1 2 3 4 5 6 7 8 Figure 3 Figure 4. Répartition des projets selon les emplois créés ou maintenus en 2020 Opportunités d'investissement Source: Business France/Kantar survey on France’s attractiveness, 2020 Source: Business France/Kantar survey on France’s attractiveness, 2020 22 5 18 47 31 78 parServices acquisition aux d'entreprisesparticuliers françaises

Figure 10. Contribution par fonction à la hausse des emplois % En % 0 2 4 6 8 10 12%

13% Point de vente 1% INVESTMENTS MOSTLY INVOLVE 33% Size of projects 2% BREAKDOWN OF PROJECTS ANDLess JOBS than 10 CREATIONS Fig.20% 4 Total ProductionBY INVESTMENT / Réalisation TYPE (2020) 10 to 19 Figure 5. Composition sectorielle des emplois dans la production en France 45% 20 to 49 The crisis did not affect investment attractivetype, with decisions 50 to 249 % % Création CreationServices aux entreprises involving new creations in France remaining in the 250 and over 20 100 majority,41% with 52% of all investment.85% One-third of Principales contributions par secteur à l'évolution des emplois manufacturing projects involved new decision-making Centre de décision Extension Expansion centers. While creations overall were down by 17%, they 33% Pharmaceuticals16 and biotechnologies 80 Medical equipment and devices were 32% up in manufacturing activities. R&D, ingénierie, design Energy and recycling Expansions are a sign of the renewed confidence thatReprise Takeover Telecoms, internet service providers 12 60 foreign-owned subsidiaries already set up in France have Consulting and business services Figure 5 Logistique in the country as an investment location. Expansion Electronic components Expansion following Glass, ceramics, minerals, wood, paper Figure 4. Répartition des projets selon les emplois créés ou maintenus en 2020 Rachat-extension Répartition des projets par type d'investissement projects are the leading provider of employment, buyout Media, publishing Services aux particuliers 8 40 accounting for 50% of all jobs generated by foreign Machinery and mechanical equipment Expansion following takeover Perfumes, cosmetics investors in France. Half of jobs generated by expansions Expansion followingExpansion buyout following En % Reprise-extension 1% Agri-food result from the development of industrial sites already set takeover 0 2 4 6 8 10 12% 2% 4 Metalworking 20 up in France. % Electrical/IT equipment 1% 0 10 20 30 40 50 60 Financial services and insurance 33% Size of projects Sport and leisure Less than 10 Jobs Projects 0 Textiles and accessories 0 20% 10 to 19 Figure 5. Composition sectorielle des emplois dans la production en France Wholesale and retail 20 to 49 Source: BusinessTakeover France, Annual Report 2020 Chemicals, plastics 3% Creation Agri-food equipment equipment 50 to 249 Expansion% % Transport, storage and devices Metalworking

Glass, ceramics, 52% Hospitality, tourism and restaurants Pharmaceuticals 250 and over service providers 41%20 100 Chemicals, plastics Telecoms, internet Medical equipment Textiles/accessories Automotive industry IT services and biotechnologies Energy and recycling Consumer electronics Building, construction Electronic components BREAKDOWN OF PROJECTS BY INVESTMENT TYPE (2019-20) Machinery/mechanical minerals, wood, paper Aerospace, naval and railwayAerospace/naval/railway equipment % PROJECTS JOBS -5 -4 -3 -2 -1 0 1 2 3 33% 16 80 Figure 11. Composition sectorielle des projets de production en France 2020 2019 CHANGE SHARE 2020 2019 CHANGE SHARE En % En % Creation 637 768 -17% 52% 11,698 15,347 -24% 34% 25 100 Expansion 504 610 -17% 41% 12 17,416 18,755 -7% 50% 60 Figure 5 Expansion following buyout 30 37 -19% 2% 508 521 -2% 1% Répartition des projets par type d'investissement Takeover 37 38 -3% 3% 8 4,217 3,392 24% 12% 40 20 80 Expansion following takeoverExpansion following takeover7 15 -53% Figure1% 6. Répartition des proj728ets en fonction de la taille1,527 de la société mère-52% en 2020 2% Expansion following buyout Total 1% 1,215 1,468 -17% 100% 34,567 39,542 -13% 100% 2% 4 20 15 60 Source: Business France, Annual Report 2019 and 2020 Large corporates 0 0 10 40 21 Takeover SMEs 3% Creation Agri-food equipment equipment Expansion and devices 5 20 Metalworking

Glass, ceramics, 52% Pharmaceuticals service providers 41% Chemicals, plastics Telecoms, internet Medical equipment Textiles/accessories Automotive industry and biotechnologies Energy and recycling Consumer electronics Building, construction Electronic components Mid-size Machinery/mechanical minerals, wood, paper companies Aerospace/naval/railway 0 0 Figure 11. Composition sectorielle des projets de production en France Micro- enterprises En % En % Machines et Automobiles Équipements électroniques Ameublement Aéronautiques, BTP, matériaux Médicaments et % de construction Agroalimentaire 25 100 Chimie, plasturgie Verre, céramique, Énergie, recyclage

20 80 Figure 12. Composition sectorielle des emplois dans la production en France Figure 6. Répartition des projets en fonction de la taille de la société mère en 2020

Figure 7. Répartition15 des projets par région d’origine en 2020 60

Large 2% Attractivité de la France pour les investissements en R&D corporates 1% Africa Middle East10 40 3% Other Sous-total « Pas attractive » En % Sous-total « Attractive » Asia SMEs Proximité des marchés et des autres activités de l'entreprise 14 1 13 44 42 86 5 10% 20 Qualité des personnels de R&D 14 1 14 50 36 86 Mid-size companies 0 0 Proximité de clusters français 15 2 14 50 35 85 North 20% Europe Micro- America Possibilités de collaboration avec des équipes enterprises 64% 18 1 17 44 38 82 Machines et de recherche académiques françaises Automobiles Équipements électroniques Ameublement Aéronautiques, BTP, matériaux Médicaments et % de construction Agroalimentaire Chimie, plasturgie Verre, céramique, Énergie, recyclage

Textile, habillement 0 10 20 30 40 50 60 70 navals et ferroviaires Parfums, cosmétiques médico-chirurgicaux Niveau des aides publiques de la R&D 20 3 17 47 34 81 minéraux, bois, papier Équipements électriques, équipements mécaniques Composants électroniques Métaux, travail des métaux biotechnologies appliquées Accès au financement 20 3 18 52 28 80 Figure 12. Composition sectorielle des emplois dans la production en France Coût des activités de R&D 22 2 20 46 33 78

Figure 7. Répartition des projets par région d’origine en 2020 Opportunités d'investissement par acquisition d'entreprises françaises 22 5 18 47 31 78 2% Attractivité de la France pour les investissements en R&D Africa Middle East 1% 3% Other Sous-total « Pas attractive » En % Sous-total « Attractive » Asia Proximité des marchés et des autres activités de l'entreprise 14 1 13 44 42 86 10% Qualité des personnels de R&D 14 1 14 50 36 86

Proximité de clusters français 15 2 14 50 35 85 North 20% Europe America Création Creation Possibilités de collaboration avec des équipes 64% 18 1 17 44 38 82 de recherche académiques françaises Principales contributions par secteur à l'évolution des emplois

Extension ExpansionNiveau des aides publiques de la R&D 20 3 17 47 34 81 Pharmaceuticals and biotechnologies Medical equipment and devices Accès au financement 20 3 18 52 28 80 Energy and recycling Reprise Takeover Telecoms, internet service providers Consulting and business services Coût des activités de R&D 22 2 20 46 33 78 Electronic components Expansion following Glass, ceramics, minerals, wood, paper Rachat-extension Opportunités d'investissement parbuyout acquisition d'entreprises françaises 22 5 18 47 31 78 Media, publishing Machinery and mechanical equipment Perfumes, cosmetics Expansion following Agri-food Reprise-extension takeover Metalworking % Electrical/IT equipment 0 10 20 30 40 50 60 Financial services and insurance Sport and leisure Textiles and accessories Wholesale and retail Chemicals, plastics Transport, storage Création Creation Hospitality, tourism and restaurants IT services Principales contributions par secteur à l'évolution des emplois Aerospace, naval and railway equipment % Extension Expansion -5 -4 -3 -2 -1 0 1 2 3 Pharmaceuticals and biotechnologies Medical equipment and devices Energy and recycling Reprise Takeover Telecoms, internet service providers Consulting and business services Electronic components Expansion following Glass, ceramics, minerals, wood, paper Rachat-extension buyout Media, publishing Machinery and mechanical equipment Perfumes, cosmetics Expansion following Agri-food Reprise-extension takeover Metalworking % Electrical/IT equipment 0 10 20 30 40 50 60 Financial services and insurance Sport and leisure Textiles and accessories Wholesale and retail Chemicals, plastics Transport, storage Hospitality, tourism and restaurants IT services Aerospace, naval and railway equipment % -5 -4 -3 -2 -1 0 1 2 3 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

THE MEASURES OF THE STIMULUS PLAN strengthening the equity capital of VSEs, SMEs and DEEMED TO BE RELEVANT TO SUPPORT mid-size companies through two major measures: FRANCE’S INVESTMENT AND firstly, the creation of the “Relaunch France” label, to promote investment vehicles supporting the ATTRACTIVENESS strengthening of the capital of businesses established in France; and secondly, the public The French government’s unprecedented ¤100 billion guarantee for the granting of ¤20 billion in recovery plan over a two-year period revolves around participatory loans by banking networks to three main axes: ecology, the main aim of this plan, to businesses with a model that is viable in the medium support the transition to a more carbon-free and term, but weakened by the crisis. sustainable economy; competitiveness, to give businesses the most favorable conditions to expand • Cohesion: the third part of the plan, amounting to their activities and thus preserve employment; and ¤36 billion, will be devoted to the preservation and cohesion, to support youth employment and guarantee development of skills, as well as to social and solidarity between generations, regions and all French regional cohesion. It will aim to safeguard people. employment and skills through the deployment of long-term partial activity, accompanied by a training • Ecology: the first part of the recovery plan will draw plan to stimulate hiring, in particular of young on ¤30 billion to finance the ecological transition in people, through the deployment of the “One young all its forms. It will be based on the implementation person, one solution”, and to strengthen vocational of energy renovation measures for buildings, the training. It will also allow for a massive investment decarbonization of industrial sites, the development plan in health, through the implementation of the of infrastructure and green mobility, and increased investment measures of the “Ségur de la santé” support for green energies and technologies, as well consultation. In addition, the recovery plan will as measures to promote biodiversity, the agricultural strengthen both social cohesion (support for the transition and the fight against land artificialization. purchasing power of households in extreme poverty) and regional help (digital inclusion, recovery plan of • Competitiveness: the second part of the recovery the Banque des Territoires, revitalization of plan will devote ¤34 billion to strengthening the businesses in urban areas, support for local competitiveness of businesses, in particular to authorities). develop the industrial productive base in innovative sectors, to gain autonomy for our sensitive supplies All of these measures will increase growth by 1.5 points (support for the relocation of strategic sectors) and from 2021, in particular by supporting the purchasing thus to consolidate French and European economic power of households and deploying ambitious public power. In this regard, the recovery plan includes investments, but will also prepare for growth in the next measures for a massive and lasting reduction in decade, by accelerating the transformations of our production taxes (i.e. ¤20 billion over two years), for economy towards a more competitive, more innovative and more prosperous model.

22 Chap 2 Figure 1. Evolution des projets et emplois associés Figure 8. Contribution par pays à l’évolution des emplois

En % 1,800 45,000 12

39,542 1,600 40,000

10 34,567 1,400 33,682 33,474 35,000

30,108 30,302 8 1,200 30,000 26,535

1,000 25,000 6

800 20,000

4 600 15,000

1,014 962 1,117 1,297 1,323 1,468 1,215 2 400 10,000

200 5,000 0

g as

Figure 2 Figure 9. Contribution par fonction à la hausse des projets

Point de vente

% Production / Réalisation

8% 14% Logistique 2% Total R&D, ingénierie, design

positive Services aux particuliers 90% Centre de décision 76% Services aux entreprises

En % 2 . FRANCE, A RESILIENT ECONOMY -3 -2 -1 0 1 2 3 4 5 6 7 8 Figure 3

Figure 10. Contribution par fonction à la hausse des emplois %

13% Point de vente 2% Production / Réalisation 45% Total attractive Services aux entreprises 41% 85% Centre de décision

R&D, ingénierie, design

Most of the stimulus package measures are considered Logistique relevant to support foreign direct investment (FDI). The BREAKDOWN OF PROJECTS BY JOBS CREATED Fig. 5 OR MAINTAINED (2020) “National Investment Program” of ¤11 million by 2022 Figure 4. Répartition des projets selon les emplois créés ou maintenus en 2020 (84%) to support innovation and investment in Services aux particuliers technologies of the future and the reduction of En % production taxes (81%) are the two most relevant 0 2 4 6 8 10 measures in the eyes of the foreign business executives 12% in France. Instead of focusing on the question of tax, 1% Less than 10 they believe it is important to prepare the future of the 33% Size of projects Less than 1010 to 19 French economy. 20% 10 to 19 20 to 49 Figure 5. Composition sectorielle des emplois dans la production en France 20 to 49 AVERAGE PROJECT SIZE VARIES 50 to 249 50 to 249 % % 250 and over 20 100 BY NATURE OF OPERATIONS 250 and over

In 2020, each investment project nationwide created or maintained 28 jobs on average, higher than in the period 33% 16 80 between 2014 and 2019.

Average employment numbers vary enormously 12 60 between different business activities and sectors, with Source:Figure 5 Business France, Annual Report 2020 the largest average number of jobs being in business Répartition des projets par type d'investissement services (47), industry (42) and logistics (39). In 8 40 manufacturing, the average size of projects was 80 jobs Expansion following takeover Expansion following buyout 1% for the automotive industry, 139 jobs for the aerospace, 2% naval and railway equipment, 69 jobs for consulting, 4 20 engineering and business services, and 54 jobs for software and IT services. 0 0 In 2020, the number of investment projects creating Takeover 100 jobs or more accounted for 6% of all projects 3% Creation Agri-food equipment equipment Expansion and devices Metalworking (74 projects), versus only 4% in 2018. Two-thirds of Glass, ceramics, 52% Pharmaceuticals service providers 41% Chemicals, plastics Telecoms, internet Medical equipment Textiles/accessories Automotive industry and biotechnologies Energy and recycling Consumer electronics investment projects created at least 20 jobs. Building, construction Electronic components Machinery/mechanical minerals, wood, paper

Aerospace/naval/railway

Figure 11. Composition sectorielle des projets de production en France

En % En % 25 100

20 80 Figure 6. Répartition des projets en fonction de la taille de la société mère en 2020

15 60

Large corporates 10 40

SMEs 5 20

Mid-size companies 0 0

Micro- enterprises Machines et Automobiles Équipements électroniques Ameublement Aéronautiques, BTP, matériaux Médicaments et de construction Agroalimentaire %23 Verre, céramique, Chimie, plasturgie Énergie, recyclage

Figure 12. Composition sectorielle des emplois dans la production en France

Figure 7. Répartition des projets par région d’origine en 2020

Proximité de clusters français 15 2 14 50 35 85 North 20% Europe America Possibilités de collaboration avec des équipes 64% de recherche académiques françaises 18 1 17 44 38 82

Niveau des aides publiques de la R&D 20 3 17 47 34 81

Accès au financement 20 3 18 52 28 80

Coût des activités de R&D 22 2 20 46 33 78

Opportunités d'investissement par acquisition d'entreprises françaises 22 5 18 47 31 78

Création Creation

Principales contributions par secteur à l'évolution des emplois

En % 1,800 45,000 12

39,542 1,600 40,000

10 34,567 1,400 33,682 33,474 35,000

30,108 30,302 8 1,200 30,000 26,535

1,000 25,000 6

800 20,000

4 600 15,000

1,014 962 1,117 1,297 1,323 1,468 1,215 2 400 10,000

200 5,000 0

g as

quie Inde Italie Chine ur Suède unisie ts-Unis Irlande ys-B T Canada 0 0 T a Espagne Portugal embour P aume-Uni Éta Danemark Singapour y Allemagne 2014 2015 2016 2017 2018 2019 2020 orée du Sud o Lux C Chap 2 Figure 1. Evolution des projets et emplois associés Figure 8. Contribution par pays à l’évolution des emplois R

Figure 2 En % 1,800 45,000 Figure 9. Contribution par fonction à la hausse des projets 12

39,542 1,600 40,000

10 Point de vente 34,567 1,400 33,682 33,474 35,000 % Production / Réalisation 30,108 30,302 8 1,200 30,000 8% 14% Logistique 26,535 2% 1,000 25,000 6 Total R&D, ingénierie, design 800 20,000 positive Services aux particuliers 4 90% 600 15,000 Centre de décision

1,014 962 1,117 1,297 1,323 1,468 1,215 76% 2 400 10,000 Services aux entreprises

En % 200 5,000 0 -3 -2 -1 0 1 2 3 4 5 6 7 8 Figure 3

g as

quie Inde Italie Chine ur Suède unisie ts-Unis Irlande ys-B T Canada 0 0 T a Espagne Portugal embour P aume-Uni Éta Danemark Singapour y Allemagne 2014 2015 2016 2017 2018 2019 2020 orée du Sud o Lux C Figure 10. Contribution par fonction à la hausse des emplois % R

Figure 2 13% Point de vente Figure 9. Contribution par fonction à la hausse des projets 2% Production / Réalisation 45% Total Point de vente attractive Services aux entreprises % 41% 85% Production / Réalisation Centre de décision 8% 14% Logistique 2% R&D, ingénierie, design

R&D, ingénierie, design Total Logistique

positive Figure 4. ServicesRépartition aux particuliers des projets selon les emplois créés ou maintenus en 2020 90% Services aux particuliers Centre de décision En % 0 2 4 6 8 10 76% 12% Services aux entreprises 1% 33% Size of projects En % Less than 10 20% -3 -2 -1 0 1 2 3 4 5 6 7 8 Figure 3 10 to 19 Figure 5. Composition sectorielle des emplois dans la production en France 20 to 49 50 to 249 % % Figure 10. Contribution par fonction à la hausse des emplois 250 and over 20 100 %

13% Point de vente33% 16 80 2% Production / Réalisation 45% Total 12 60 attractive Figure 5 Services aux entreprises Répartition des projets par type d'investissement 41% 85% 8 40 Centre de décision Expansion following takeover Expansion following buyout 1% 2% 4 20 R&D, ingénierie, design

BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE Logistique 0 0

Figure 4. Répartition des projets selon les emplois créés ou maintenus en 2020 Takeover Services aux particuliers3% Creation Agri-food equipment equipment Expansion and devices Metalworking

Glass, ceramics, 52% Pharmaceuticals service providers 41% Chemicals, plastics Telecoms, internet En % Medical equipment Textiles/accessories Automotive industry and biotechnologies Energy and recycling Consumer electronics Building, construction Electronic components 0 2 4 6 8 10 Machinery/mechanical minerals, wood, paper 12% Aerospace/naval/railway 1% Figure 11. Composition sectorielle des projets de production en France 33% Size of projects Less than 10 En % En % 20% 10 to 19 Figure 5. Composition sectorielle des emplois dans la production en France 25 100 20 to 49 50 to 249 % % 250 and over 20 100 20 80 Figure 6. Répartition des projets en fonction de la taille de la société mère en 2020 33% 16 80 15 60

GROWING CONTRIBUTION OF LARGE SIXTY-FOURLarge PERCENT OF INVESTORS corporates 12 60 CORPORATES TO EMPLOYMENT ARE EUROPEAN 10 40 Figure 5

EveryRépartition category des projets par typeof d'investissementbusiness has been affected by the ForeignSMEs investments were received from 60 different 8 40 crisis and have adopted a wait-and-see policy by countries in 2020, with European investments continuing to 5 20 Expansion following takeover Expansion followingreducing buyout their investment decisions in France. hold the upper hand: 64% of job-creating foreign 1% Mid-size 2% investments in France originated in other European In 2020, large corporates (more than 5,000 employees) companies 4 20 countries, followed by North America (20%) and Asia (10%). 0 0 were responsible for 45% of all projects, mid-size companies (250 to 5,000 employees) for 25%, SMEs Micro- enterprises 0 0 Machines et Automobiles (fewer than 250 employees) for 27% and micro- Équipements électroniques Ameublement Aéronautiques, BTP, matériaux Médicaments et % de construction Agroalimentaire enterprisesTakeover for 3%. Chimie, plasturgie Verre, céramique, Énergie, recyclage Textile, habillement 0 10 20 30 40 50 60 70 navals et ferroviaires Parfums, cosmétiques médico-chirurgicaux Agri-food minéraux, bois, papier 3% Creation Équipements électriques, equipment equipment équipements mécaniques Composants électroniques Expansion and devices Métaux, travail des métaux Confidence in the recovery plan has enabled businesses Metalworking biotechnologies appliquées Glass, ceramics, 52% Pharmaceuticals service providers 41% Chemicals, plastics Telecoms, internet Medical equipment Textiles/accessories to maintain the jobs they announced. Large corporates, Automotive industry and biotechnologies Energy and recycling Consumer electronics Building, construction Electronic components Machinery/mechanical minerals, wood, paper responsible for 67% of jobs created, have seen their share Aerospace/naval/railway Figure 12. Composition sectorielle des emplois dans la production en France BREAKDOWN OF PROJECTS BY SOURCE REGION (2020) grow by five percentage points since 2019. Fig. 7 Figure 11. Composition sectorielle des projets de production en France Figure 7. Répartition des projets par région d’origine en 2020 En % En % 2% Attractivité de la France pour les investissements en R&D 25 Africa 100 Middle East 1% 3% Other Sous-total « Pas attractive » En % Sous-total « Attractive » Asia Proximité des marchés 20 80 et des autres activités de l'entreprise 14 1 13 44 42 86 BREAKDOWN OF PROJECTS BY PARENT Fig.Figure 6. Répartition6 COMPANY des projets enSIZE fonction (2020) de la taille de la société mère en 2020 10% Qualité des personnels de R&D 14 1 14 50 36 86 15 60

Proximité de clusters français 15 2 14 50 35 85 Large North 20% Europe corporates America 10 Possibilités de collaboration avec des équipes 64% 40 de recherche académiques françaises 18 1 17 44 38 82

SMEs Niveau des aides publiques de la R&D 20 3 17 47 34 81 5 20 Accès au financement 20 3 18 52 28 80 Mid-size companies 0 0 Coût des activités de R&D 22 2 20 46 33 78

Micro- Opportunités d'investissement enterprises par acquisition d'entreprises françaises 22 5 18 47 31 78 Machines et Automobiles Équipements électroniques Ameublement Aéronautiques, BTP, matériaux Médicaments et % de construction Agroalimentaire Chimie, plasturgie Verre, céramique, Énergie, recyclage

Textile, habillement 0 10 20 30 40 50 60 70 navals et ferroviaires Parfums, cosmétiques médico-chirurgicaux minéraux, bois, papier Équipements électriques, Source: Business France,équipements Annual mécaniques Report 2020 Composants électroniques Métaux, travail des métaux Jobs Projects biotechnologies appliquées

Figure 12. Composition sectorielle des emplois dans la production en France Source: Business France, Annual Report 2020 Figure 7. Répartition des projets par région d’origine en 2020

2% Attractivité de la France pour les investissements en R&D Africa Création Creation Middle East 1% 3% Other Sous-total « Pas attractive » En % Sous-total « Attractive » Principales contributions par secteur à l'évolution des emplois Asia Proximité des marchés Extension Expansion 14 1 13 44 42 86 et des autres activités de l'entreprise Pharmaceuticals and biotechnologies 10% Medical equipment and devices Qualité des personnels de R&D 14 1 14 50 36 86 Energy and recycling Reprise Takeover Telecoms, internet service providers Consulting and business services Proximité de clusters français 15 85 2 14 50 35 Electronic components North 20% Europe America Expansion following Glass, ceramics, minerals, wood, paper Rachat-extension Possibilitésbuyout de collaboration avec des équipes 24 64% de recherche académiques françaises 18 1 17 44 38 82 Media, publishing Machinery and mechanical equipment Perfumes, cosmetics Niveau des aides publiques de la R&D 20 3 17 47 34 81 Expansion following Agri-food Reprise-extension takeover Metalworking Accès au financement 20 3 18 52 28 80% Electrical/IT equipment 0 10 20 30 40 50 60 Financial services and insurance Sport and leisure Coût des activités de R&D 22 2 20 46 33 78 Textiles and accessories Wholesale and retail Opportunités d'investissement Chemicals, plastics par acquisition d'entreprises françaises 22 5 18 47 31 78 Transport, storage Hospitality, tourism and restaurants IT services Aerospace, naval and railway equipment % -5 -4 -3 -2 -1 0 1 2 3

Création Creation

Principales contributions par secteur à l'évolution des emplois

LEADING SOURCE COUNTRIES FOR FOREIGN INVESTMENT IN FRANCE (2020)

PROJECTS JOBS

COUNTRY 2020 2019 CHANGE SHARE 2020 2019 CHANGE SHARE

United States 204 238 -34 16.8% 8,286 7,886 400 24%

Germany 201 228 -27 16.5% 3,938 4,946 -1,008 11.4%

United Kingdom 120 173 -53 9.9% 5,459 5,927 -468 15.8%

Italy 94 118 -24 7.7% 1,139 2,199 -1,060 3.3%

Netherlands 84 63 27 6.9% 1,173 1,590 -417 3.4%

Belgium 54 74 -20 4.4% 1,437 1,058 379 4.2%

China 53 65 -12 4.4% 1,697 1,364 333 4.9% including Hong-Kong 8 7 1 0.7% 216 62 154 0.6%

Spain 49 45 4 4.0% 1,189 1,717 -528 3.4%

Switzerland 46 76 -30 3.8% 2,390 2,290 100 6.9%

Japan 42 57 -15 3.5% 1,244 952 292 3.6%

Canada 35 51 -16 2.9% 1,648 1,584 64 4.8%

Denmark 30 28 2 2.5% 480 698 -218 1.4%

Sweden 30 35 -5 2.5% 658 775 -117 1.9%

Ireland 15 10 5 1.2% 457 376 81 1.3%

Austria 13 20 -7 1.1% 112 289 -177 0.3%

Turkey 12 10 2 1.0% 174 318 -144 0.5%

Luxembourg 11 23 -12 0.9% 141 759 -618 0.4%

Singapore 9 8 1 0.7% 130 83 47 0.4%

India 9 18 -9 0.7% 496 357 139 1.4%

Tunisia 8 7 1 0.7% 194 157 37 0.6%

Norway 7 9 -2 0.6% 188 131 57 0.5%

Morocco 6 7 -1 0.5% 40 113 -73 0.1%

South Korea 5 8 -3 0.4% 147 245 -98 0.4%

Brazil 4 8 -4 0.3% 23 54 -31 0.1%

Chile 4 3 1 0.3% 44 38 6 0.1%

Ivory Coast 4 3 1 0.3% 86 20 66 0.2%

Finland 4 10 -6 0.3% 79 315 -236 0.2%

Greece 4 0 4 0.3% 45 0 45 0.1%

Portugal 4 6 -2 0.3% 31 357 -326 0.1%

Taiwan 4 4 0 0.3% 41 55 -14 0.1%

Other 50 53 -3 4.1% 1,401 2,889 -1,488 4.1%

Total 1,215 1,468 -253 100% 34,567 39,542 -4,975 100%

Source: Business France, Annual Report 2020

25 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

AMERICAN INVESTMENT IN FRANCE 2020, according to the Business France-Kantar survey on REMAINED BUOYANT IN 2020 France’s attractiveness. With 120 projects, British investments fell in France by around 31%, where they were The United States continued to be the leading source responsible for 10% of all projects and 16% of all jobs country for investment in France and the chief provider of generated. British businesses were particularly active with jobs. With 204 projects recorded, the United States were retail outlets, accounting for 30% of all investments and responsible for 17% of all job-creating foreign investment 50% of all jobs generated in this business activity. They recorded in France and one-quarter of jobs generated. were led mainly by the roll-out of Action France brands, a American firms stood out for their commitment to subsidiary of 3i Group, launched in 2018. research and development, accounting for one-quarter of Despite the health crisis, Italian investment in all inward R&D investments and 30% of jobs generated in manufacturing and R&D activities held up in 2020, with this area. Italy being the third largest investor in industrial activities Germany remained the second largest investing country in after Germany and the United States, accounting for 10% France in 2020, with subsidiaries of German businesses of investments in this business activity. Italian investments responsible for 16.5% of all investments (201 projects). in R&D activities doubled and Italian businesses were Germany was the leading investor in manufacturing responsible for 13% of foreign investment in R&D. activities and was responsible for more than 20% of The buoyancy of investment from Dutch businesses logistics projects. German businesses were responsible for (+33%, +21 projects) resulted from a growth in production nearly one-third of foreign investment in retail outlets, site expansions, particularly in the agri-food sector and where they provided 17% of jobs. Major installations from the roll-out of Basic Fit gym chain across the whole involved brands such as Lidl, Maxi Zoo and Aldi, attracted country. by domestic demand in the French market. Finally, other investing countries remained vibrant during Between the health crisis and the uncertainty surrounding the crisis, from Spain (+9%, up four projects) to Denmark the process of leaving the European Union, the great (+7%, up two projects) and Ireland (+50%, up five majority of British businesses have shown a wait-and-see projects). policy, with a fall in investments in Europe of around 35% in

They chose France

MEDTECH CONSULTING AND BUSINESS SERVICES M E DT R O N I C, UNITED STATES P O L L , IVORY COAST

Medtronic, one of the global leaders in medical technologies, Poll enters the international opinion research market with renewed its commitment to France in 2020 through a the Poll Data brand, a multinational big data platform for number of major investments, such as the expansion of its the expression, study and analysis of public opinion launched production facility in Trévoux (Auvergne-Rhône-Alpes initially across 45 countries. Poll consists of two growth region) for €3.5 million, the acquisition of Medicrea, a levers based on the entertainment and neo-banking sectors pioneering business in the use of artificial intelligence in (Poll Jeux, Poll Finances) and several other brands, such as spinal surgery (€139 million), and a technological partnership Poll Education, Poll Music, Poll Conso. This project will create with Deepsen, which specializes in R&D linked to digital at least forty jobs over three years, including ten in R&D and therapeutic solutions. around a hundred within five years.

26 2 . FRANCE, A RESILIENT ECONOMY

MEDICAL DEVICES RAILWAY EQUIPMENT BECTON DICKINSON, UNITED STATES S I E M E N S, GERMANY

Manufacturer and global distributor of medical technologies, For the past few years, the German group has been US-based Becton Dickinson announced in 2020 an working to advance in future sectors, such as electric investment of US$176 million in its Pont-de-Claix site in Isère mobility, smart buildings, automation and energy storage. (Auvergne-Rhône-Alpes region). This site acts as a reference Its French subsidiary recruited 850 people in 2020, center for the production of pre-fillable syringes (over one including 450 on permanent contracts, particularly at its million a day) and hosts the global R&D center for this sites in the Ile de France/Paris region. These include Saint- business unit. Becton Dickinson also plans to strengthen its Denis, the location of its French headquarters (117 new presence in the region with the recruitment of 90 employees. hires); Vélizy, home to a center of expertise for the development of automatic extinguishing and fire detection systems in the aerospace, rail and construction sectors (34 recruitments); and Châtillon, location of automatic metro systems as well as R&D for this sector (80 new hires). Siemens also recruited 74 people at its Toulouse base in Occitanie. New hires ranged from people with two years of experience in higher education to engineers in the fields of energy efficiency, software, cybersecurity, embedded systems and big data. AGRI-FOOD P L U KO N , NETHERLANDS

DUC, which has 815 employees in France and is a major player in the poultry sector in France, became part of the Dutch group Plukon in 2017 and has since undergone restructuring. Since September 2019, the business has shown positive net results. The increase in capital and the investments made are therefore bearing fruit and enabling DUC to expand its activities: in 2020, the business’s main site, located in the Bourgogne-Franche-Comté region, saw its workforce increase by 12. DUC also made investments to increase production capacity, thereby preparing the future AGRI-FOOD of the site. BARILLA, ITALY

The Barilla group has been present in France for more than 50 years. It has nearly 2,000 employees and achieved revenues of €600 million in France in 2019. The group has five production sites, as well as several logistics hubs in the region. In July 2020, Barilla announced an exceptional investment plan of around €30 million for 2020-2022, SOFTWARE including €26.4 million dedicated to the creation of a new SCHIBSTED, NORWAY Harry’s “100% mie” (crust-free) bread in Pays de la Loire. The group also completed the expansion of the production Norwegian online classifieds group Adevinta, a spin-off of of organic sweet products in Hauts de France, as well as the media firm Schibsted and owner of Leboncoin Group, has expansion of the storage capacity (+2,000 sq. m.) of the opened a new office in Paris (Ile de France region). These new plant based in Centre-Val de Loire. It should be noted that premises will enable the group to continue its growth, with the Barilla group makes annual investments amounting to the creation of 100 jobs. This investment should help €12 million to modernize industrial equipment at Barilla strengthen the position of the classifieds site, which is France. In all, the Barilla group has invested €200 million in already among the 10 most visited in France. France over the past 10 years.

27 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

IT SERVICES LOGISTICS C G I , CANADA DEUTSCHE POST DHL GROUP, GERMANY

Founded in 1976, CGI is one of the largest independent As part of the modernization of its French network and in providers of information technology (IT) and business response to the unprecedented growth of electronic process management services in the world. The leading commerce, the global leader in postal and logistics services Canadian investor in France (12,000 employees and has decided to invest €170 million in its new hub at Paris consultants in France), CGI has announced that it hired 2,800 Charles de Gaulle airport. This installation, which will come people in France in 2020. Despite the crisis, the most into service in October 2021, will have a capacity of 38,000 European of digital service companies in the Americas has packages per hour and will accommodate between 500 and continued its plans for external growth, notably with the 600 employees (around 50 new recruitments), who will work takeover of the Breton company Meti, the hiring of young in a 34,000 sq. m building. talent, in particular from its Developer School in France U'DEV. Entirely funded by CGI via professional training contracts, this training gives its 200 students the opportunity to eventually join a digital company, on a work-study basis, with a permanent position. NAVAL EQUIPMENT HANSEYACHTS, GERMANY

Privilège Marine, manufacturer of high-end catamarans, located in Sables d’Olonne (Pays de la Loire), has benefited from the support of a powerful industrial shareholder since 2017: the German group HanseYachts. The site of the Privilège shipyard in Les Sables d’Olonne, which hosted the launch of several new catamarans, benefited the manufacturer, which recruited 55 employees in 2020 and is already expecting to employ around forty people AEROSPACE in the first half of 2021. Furthermore, it aims to hire 250 COLLINS AEROSPACE (RAYTHEON TECHNOLOGIES employees by the end of 2022, compared with its current CORPORATION) , UNITED STATES workforce of 165.

A major player in French aerospace with 4,000 employees in France, including 700 engineers spread over 18 sites, Collins Aerospace has commissioned the Hélices Center of Excellence in Figeac (Occitanie), comprising a new 2,300 sq. m. building for the development, testing and qualification WHOLESALE AND RETAIL of new technologies, as well as for the manufacture of P U R E E L E CT R I C LT D . , UNITED KINGDOM composite blades. This €32 million investment could generate around 100 hires by 2023. This initiative earned Pure Electric Ltd. is a British business specializing in the Collins the Choose France “Competitiveness & Innovation” sale of electric scooters and bicycles. After opening the award in December 2020. firm’s first stores in the United Kingdom in 2020, Pure Electric wanted to position itself in parallel across Europe, including in France, which according to the firm offers significant opportunities in terms of new mobility. At the end of 2020, the business opened its first store in France in Paris, marking the start of an aggressive expansion in France, starting with around 10 points of sale over three years in the Paris/Ile de France region. The project will create more than 85 jobs over three years, including eight related to the sales office in France.

28 2 . FRANCE, A RESILIENT ECONOMY

BREXIT IMPACTS MULTINATIONAL mainly concern the financial services sector. FIRMS’ ENTRY STRATEGIES The financial services sector has grown significantly in recent years due to the risk of losing the European The agreement on the United Kingdom’s exit from the passport. Some of the most important projects include European Union paves the way for a period of large British businesses, such as Barclays or HSBC (but negotiations that prolongs uncertainties for investors whose announced transfer of 1,000 jobs has been and businesses. As a direct consequence, many senior suspended) or the move to Paris in 2019 of the executives (64%) are reviewing their establishment European Banking Authority headquarters (150 jobs). strategy in favor of another European country. This Other thriving sectors are the software and IT services strategy aims to guarantee a presence in the single sector, for example the expansion in France of SCC- European market and thus benefit from the free Rigby Group, which in 2019 strengthened its presence in movement of goods and services within Europe. the IT infrastructure support center in Valenciennes, Germany (49%) and France (44%) appear very clearly Hauts de France (100 additional jobs) or the to be the main beneficiaries of a possible change in Computacenter group (opening of a new service center strategy in the context of Brexit. in Perpignan (Occitanie), 150 jobs).

While the link between the boom in British investments France has also shown its attractiveness for production in recent years and Brexit seems clear, British projects. The last few years have seen an increase in businesses, and in particular large groups, remain very British industrial investments in France, with numerous discreet and reluctant to communicate on the “Brexit” takeovers of ailing sites by British investors. Examples motivations of their international development include the investment, at the start of 2020, in the Astra strategy. Brexit is also often one factor among many in Zeneca group at its Dunkirk plant (Hauts de France; 100 corporate investment arbitrations. jobs created), or the takeover of the Smart site in Hambach (Grand Est) by the Ineos Automotive group, Within Europe, over the period 2018-2020, so-called the automotive branch of Ineos, the United Kingdom’s “Brexit” investments came mainly from the United leading petrochemical manufacturer, to manufacture States (40%) and the United Kingdom (29%). The its 4x4 Grenadier all-terrain vehicle. activities affected by these establishment strategies mainly relate to banking and financial services, which represent almost half (43%) of Brexit-related DUBLIN, LUXEMBOURG, investments, followed by consulting and business FRANKFURT AND PARIS THE MAIN services, which accounts for 16% of projects (source: BENEFICIARIES OF THE TRANSFER Business France, Europe Observatory). OF FINANCIAL SERVICES ACTIVITIES FRANCE BENEFITS FROM BREXIT According to the latest data from EY’s “Financial In France, the impact of Brexit on the establishment Services Brexit Tracker” study, 43% of financial services strategy of firms has been confirmed: around forty businesses have moved or plan to move some investment projects listed in the 2019 and 2020 Annual operations from the United Kingdom to Europe, which is Report are linked to Brexit. The investments made expected to boost the number of job transfers linked to come mainly from the United States, the United Brexit to nearly 7,600. Since the referendum, 24 Kingdom, Japan and Canada. Forty-eight percent of financial services firms (10 banks, nine insurance the so-called Brexit projects in France correspond to companies and five wealth and asset managers) have relocations of part of the activities or workforce from publicly declared that they will transfer nearly £1.3 London, while 52% relate to the reinforcement of sites trillion in British assets to the European Union. already present in France. The relocation projects

29 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

Fig. 8 BREXIT: EUROPEAN COUNTRIES TO WHICH BUSINESSES ARE MOST LIKELY TO RETURN

Among the beneficiary countries of a change in business setup strategy arising from Brexit, Germany and France set themselves apart very clearly as alternative priorities, confirming the important attractiveness of these two countries on a European scale.

DNM

ND NND MNY M

Source: Business France/Kantar survey on France’s attractiveness, 2020

Dublin, Luxembourg, Frankfurt and Paris are the main Luxembourg is the second most popular destination beneficiaries of the transfer of financial services and has attracted 29 businesses in total, while activities. Dublin remains the most popular destination Frankfurt attracted 23 firms. Twenty businesses say for staff relocations and new European platforms or they are considering or have confirmed the relocation offices, with 36 financial services firms stating that they of their operations and/or their staff to Paris, of which are considering or have confirmed relocation of their 14 are universal banks, investment banks or brokerage operations and/or staff from the United Kingdom. firms.

30 2 . FRANCE, A RESILIENT ECONOMY

NUMEROUS PARTNERSHIPS AND FACILITY UPGRADES STRENGTHEN FRANCE’S ECONOMY

Our data collection procedure identifies a variety of different ways in which foreign-owned subsidiaries establish themselves in France, reflecting the diverse international development strategies of multinational Faced with the sudden shutdown of the entire firms. The most common financial investments recorded automotive industry due to the health crisis, in 2020 were mergers and acquisitions, facility upgrades 32 businesses in the Bourgogne-Franche-Comté and safeguarding investments, along with technology, region have already been able to benefit from the commercial and industrial partnerships. recovery plan. This is a leading sector for the Bourgogne-Franche-Comté region, since it has FACILITY UPGRADES AND SAFEGUARDING 40,000 employees (excluding temporary workers), or nearly one-third of regional industrial INVESTMENTS employment.

Facility upgrades and safeguarding investments involve As such, no fewer than six subsidiaries of foreign replacing obsolete equipment with new production groups have invested, benefiting from the support technology to increase output capacity or improve fund, whether for facility upgrades or safeguarding business productivity. These investments also preserve investments: the business sites of foreign subsidiaries and save jobs that might otherwise ultimately have been lost. • FPT Powertrain Technologies France (CNH Industrial, United Kingdom): One project aimed at increasing the productive capacity of gas In 2020, a total of nearly 100 facility upgrades were engines on the site, which is today the only one recorded by Business France and its regional partners. to produce the entire heavy range of the group. Up 62% from 2019, these investments mostly concerned manufacturing sites (83%) in the automotive industry • Fruehauf (Wielton, Poland): One project aimed (19%), agri-food industry (18%) and the machinery/ at sustaining assembly line activity by welding mechanical equipment sector (12%). the side members, which are the main strength parts for semi-trailers, by modernizing their production tool. These investments cover flows of an amount superior to ¤960 million and aim to modernize production lines to diversify activity and conquer new markets, to improve the productivity of sites, to intensify production activity in response to growing demand, to acquire a new vat

31 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

COMMERCIAL PARTNERSHIPS

• Schrader (Pacific Industrial, Japan): Three Ten commercial partnerships were recorded in the last projects for the acquisition of several machines year, involving businesses pooling their workforces, to reduce production costs, remain competitive resources and partners to increase commercial activity. and maintain valve manufacturing at the These partnerships were in a variety of sectors and Pontarlier site (Bourgogne-Franche-Comté). mainly involved business services and manufacturing activities. • SJM Eurostat (Do Yee International, Singapore): One project aimed at improving the productivity and competitiveness of the site for the modernization of production tools, the establishment of a logistics platform and digitization of all parts of the business.

• SMRC (Motherson, India): One project aimed at accelerating the modernization and digital transformation of the Rougegoutte site (Bourgogne-Franche-Comté) in order to increase site performance and improve customer SOFTWARE AND IT SERVICES service. INSIGHT ENTREPRISES, UNITED STATES

• Streit Mécanique (Mei Ta Industrial Co Ltd., In 2020, the integrator Insight Enterprises acquired the Taiwan): One project aimed at transforming French consulting and services company vNext, a market production lines to diversify the activity, gain in leader in digital consulting and cloud services. With this efficiency and conquer new markets (electric acquisition, Insight has strengthened its presence in Europe motors, fuel cells). and its ability to provide consulting services in order to better support digital transformation initiatives in the French market.

room for wine, to invest in new soldering lines, to improve the environmental impact, to adapt to new regulations, to develop robotization and to improve the general operation of the site. AUTOMOTIVE INDUSTRY CLARIOS SARREGUEMINES, IRELAND TECHNOLOGY PARTNERSHIPS Clarios Sarreguemines, a subsidiary of the American business Technology or research partnerships offer another way Clarios, is investing in its battery manufacturing site in the for businesses to expand their international reach. In Grand Est region. More than 90% of Clarios batteries can be 2020, around twenty of these partnerships received recycled through an efficient recycling process and are sold support from Business France and its regional partners in several European countries. The €3.7 million investment in France. Most technology partnerships were in R&D in the Lorraine site is helping to modernize the production and engineering activities. process towards greater automation and ergonomics.

32 2 . FRANCE, A RESILIENT ECONOMY

They chose France

AUTOMOTIVE INDUSTRY ELECTRONIC COMPONENTS I N E O S, UNITED KINGDOM STMICROELECTRONICS, SWITZERLAND

Ineos Automotive, the automotive arm of Ineos, the United Founded in 1987 from the merger of the Italian SGS Kingdom’s leading petrochemical manufacturer, has Microelectronics and the French Thomson Semiconducteurs, confirmed the acquisition of the German site Daimler, located STMicroelectronics is a world leader in the manufacture and in Hambach in the Grand Est region to manufacture its 4x4 marketing of electronic chips (semiconductors). The group Grenadier all-terrain vehicle. Ineos will continue to generated sales of €8.41 billion in 2020 and employs 46,000 manufacture the Smart EQ ForTwo and certain Mercedes- people worldwide, including more than 10,000 people in Benz components at the site, thereby preserving a total of France. While it has successfully refocused in recent years 1,300 jobs in the region. The group will start producing the on components for electric mobility and connected devices, Grenadier at the end of 2021 with a commercial launch the arrival of 5G opens up gigantic market prospects. In scheduled for 2022. 2020, the group acquired the French businesses Exagan, Be Spoon and Somos Semiconductor, and also created several hundred jobs in France.

ENERGY AND RECYCLING PREMIER TECH, CANADA

In order to accelerate its growth in France, the Canadian AGRI-FOOD firm, which designs and manufactures eco-responsible and CASA TARRADELLAS, SPAIN sustainable solutions for the treatment and recovery of water, recently established itself in Yonne (Bourgogne- Spanish firm Casa Terradellas, the parent company of the Franche-Comté), with the acquisition of the business Herta brand, invested at its site in Illkirch-Graffenstaden EPARCO. It also acquired the businesses Aqua Assainissement (Grand Est region), specializing in the production of meat SAS and AMI Assainissement SAS, as well as the acquisition products. Thanks to its €25 million investment announced of the assets of Neve Environnement, all located in Saône- in 2020, the group is to modernize the site, build extra et-Loire (Bourgogne-Franche-Comté). In addition to capacity and expand the quality laboratory. securing more than twenty jobs, these acquisitions will allow Premier Tech to diversify its commercial offering and further its development on the French market.

33 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

HOW BUSINESS FRANCE RESPONDED TO BUSINESSES’ NEEDS

TEAM FRANCE INVEST: THE ALLIANCE OF BUSINESS FRANCE AND THE REGIONAL KEY PLAYERS IN ECONOMIC DEVELOPMENT DEVELOPMENT AGENCIES ARE SETTING UP AND ATTRACTIVENESS MEANS OF COMMUNICATION AND STRENGTHENING COORDINATION TOOLS Team France Invest brings together all the key players in WITH: attractiveness, building on the foundations already established by Business France and the Regional Development Agencies, the latter acting as Correspondent • The Presidents of the regions and their services. Lead Partners in the region. Team France Invest works • The economic services of the embassies through the seamlessly and efficiently to enhance public action to agreement between Business France and the French promote international investors. Treasury Directorate (DG Trésor). • Regional prefects and all decentralized state services: General Secretariat for Regional Affairs, Diplomatic Team France Invest was officially and publicly launched on Advisors for Regional Prefects, Unique Investment February 26, 2021 by Jacqueline Gourault, Minister for Advisors, Commissioners for Restructuring and the Regional Cohesion and Relations with Local Authorities, Prevention of Business Difficulties, the Strategic Franck Riester, Minister Delegate for Foreign Trade and Information and Business Security Service, Regional Economic Attractiveness and Agnès Pannier-Runacher, Direction for Food, Agriculture and Forestry. Minister Delegate for Industry. • The central services of the Ministry for the Economy, Finance and Recovery, Ministry for Europe and Foreign TEAM FRANCE INVEST IS A COLLECTIVE AND Affairs, Ministry for Regional Cohesion and Relations COLLABORATIVE WORKING METHOD WITH with Local Authorities, Ministry for Agriculture and the THE FOLLOWING KEY PRINCIPLES: Ministry for the Ecological Transition. • Key state operators, in particular the National Agency • Importance of working seamlessly and efficiently. for Regional Cohesion, as well as the Banque des • Co-construction of actions based on the specific needs Territoires and Bpifrance. of the regions. • A concern to assess the systems put in place. Ultimately, Team France Invest’s partnership aims to better detect and support foreign job-creating investment projects and value added across France’s regions.

A shared roadmap and dedicated tools ANTICIPATE the needs of regions FAST-TRACK by supporting FOSTER exchanges between and investors already present in new investors partners France Implementation of actions to Promotion of regions on the Collection and feedback of promote turnkey industrial sites choosefrance.fr website information on business needs Connecting growing French Carrying out coordinated Mapping foreign investments in businesses with foreign investors communication actions, relying on regions Provision of key information sheets the “Choose France” label abroad Following 200 priority accounts by presenting the regions’ strengths in Extensive information on regional Business France and Correspondent strategic sectors and regional assets in infrastructure, equipment Lead Partners in the region recovery plans and structuring real estate Support for takeovers of ailing firms

34 2 . FRANCE, A RESILIENT ECONOMY

A TEAM DEDICATED TO SUPPORTING BUSINESSES CONNECT Business France informs investors about the existing BUSINESS FRANCE AT THE HEART OF opportunities in all sectors, as well as the state aid from ATTRACTIVENESS which they can benefit. Industry and regulatory experts can Ninety-four co-prospecting and communication events also direct them to customized solutions. Since 2017, were organized around the world with the French regions Business France has helped nearly 4,500 talented to promote the French regions’ key strengths to investors individuals and their families settle in France. Furthermore, and influencers. Eighty operations to promote French there have been over 1.5 million visitors to the “Welcome to attractiveness were organized around the world by France” site since 2017. Seventy-eight turnkey industrial Business France teams. In 2020, more than 5,500 sites as of December 31, 2020, free from administrative international investors carried out prospecting. Business obstacles and immediately available to investors. France, present in 55 countries, presented 1,212 regional offers proposed by regional development agencies in FAST-TRACK response to investment projects detected by Business On average, 23 investment decisions were recorded each France via the COSPE “marketplace” platform administered week in France last year. Business France was responsible by Business France. In 2020, 1,560 foreign investment for 56% of international investment projects in France. projects were identified by Business France and sent across France’s regions.

COURTING PROSPECTIVE INVESTORS COSPE (TREASURY DIRECTORATE (DG TRÉSOR) Business France’s Project Steering Committee (COSPE – Comité d’orientation et de suivi des projets For 2020, 59 projects were detected by the French étrangers) is the body within Business France in charge Treasury Directorate’s Economic Services network and of qualifying FDI projects identified by the Business distributed across the regions via the platform France network abroad. It then distributes them across managed by Business France. the regions (to the regional economic development agencies) and finally does the quality control of the There were only two fewer projects than the previous follow-up of these projects until their completion. year, despite the strong impact of the Covid-19 crisis on foreign investments. These 59 projects have the The COSPE is also the guarantor of equity between the potential of creating at least 1,386 jobs and regions. Each Lead Partner in the region appoints one maintaining 4,811 jobs, which gives a ratio of 105 jobs or more COSPE correspondent(s) duly authorized to created or maintained per project (98 in 2019). participate in the weekly session of the Committee and to coordinate the subregional partners. More specifically, 55% of the projects identified concerned investors located in Europe, 19% in Asia, 14% The COSPE therefore allows a fair and fluid distribution in North America, and the rest in Africa and the Middle of projects to the regions by matching regional offers East. A total of 44% were manufacturing and R&D adapted to the needs of foreign investors. projects, 29% were headquarters and decision-making center projects, and the rest were logistics and distribution projects. Furthermore, 60% of the projects concerned the industrial sector (in particular energy, Drafting of project Detection of a project healthcare and construction), and 40% were service specifications for by a Business France projects (in particular financial/banking services and correspondent lead account manager software/IT services). partners in the region

Among the projects detected by the French Treasury Directorate is that of a Swiss mask manufacturer which decided to invest in a production facility for surgical masks and FFP2 masks in Ploufragan (Brittany region), eventually creating 120 jobs, and a three-year Submission of setup production target of 300 million masks per year. The offers prepared by the Location group has already invested more than €15 million in correspondent lead decision the acquisition and rehabilitation of the site, with partner in the region €30 million set to be invested in total, with the creation of an R&D center, which will support overall production.

35 3 Regional attractiveness in 2020

38 FOREIGN INVESTMENTS MADE THROUGHOUT FRANCE’S REGIONS 46 FRANCE’S INCREASING ATTRACTIVENESS IN ACTIVITIES WITH HIGH VALUE ADDED 58 PROJECTS IN A VARIETY OF SECTORS 64 ATTRACTIVENESS DIFFERENTIATED BY REGIONAL SPECIALIZATIONS BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

FOREIGN INVESTMENTS MADE THROUGHOUT FRANCE’S REGIONS

Chap 3 Figure 1. Filiales étrangères en Europe. Top 20 des pays d'accueil Figure 16. CORRELATION ENTRE L’INVESTISSEMENT ET LA TAILLE ECONOMIQUE DU MARCHE CORRELATION BETWEEN INVESTMENT AND ECONOMIC The diversity of France’s regions, coupled with their Fig. 1 MARKET SIZE

30,000 high-quality infrastructure and workforces, are powerful drivers of their attractiveness to investors. The investment € million decisions confirmed in 2020 were made throughout the 800,000 nation’s regions and generated employment in practically 700,000 y = 2051,8x - 16487 25,000 every one. R² = 0.9114 600,000

THE CONTRIBUTION OF CITIES TO 500,000 20,000 FRANCE’S ATTRACTIVENESS 400,000 Regional GDP 300,000 The geographical breakdown of projects at the same time 15,000 reflects the attractions of major cities and the fact that the 200,000 presence of foreign businesses frequently draws new 100,000 foreign investment to the same area. Amid the competition in Europe to attract foreign investment, the thriving 0 10,000 0 50 100 150 200 250 300 350 400 450 economies of France’s regions and cities are often a Number of investment projects decisive factor. Source: Business France, Annual Report 2020; 5,000 By project numbers, Ile de France (Paris region), Auvergne- INSEE; Business France calculations Rhône-Alpes, Hauts de France, Occitanie, Grand Est and Figure 18. INDICE D’ATTRACTIVITé DES RéGIONS EN 2019 Bourgogne-Franche-Comté together attracted three-

0 quarters of all investment decisions. The process whereby The economic size of each region is a key determinant economic activity and investment projects tend to be Provence-Alpes-Côtefor the choice d'Azur of location for foreign investment.

Italy Spain France Latvia Austria Poland Croatia focused in cities is Swedennot one unique to France.Norway Similarly, the economy is a key factor for a city’s success. As Romania Hungary Bulgaria Slovenia Portugal Germany Denmark Pays de la Loire Netherlands Luxembourg such, the number of investment projects in each region is Czech Republic United Kingdom* correlatedOccitanie to regional GDP. A strong relationship (albeit less strong) also exists between the number of jobs created and regionalNouvelle-Aquitaine GDP. Figure 2. Emplois dans les filiales étrangères - Top 20 Normandie

Île-de-France (Parsi region) 4,000,000 Hauts-de-France

3,500,000 Grand Est

Dom-Tom 3,000,000 Centre-Val de Loire

Bretagne (Brittany) 2,500,000

Bourgogne-Franche-Comté 2,000,000 38 Auvergne-Rhône-Alpes

0 0.5 1 1.5 2 2.5 1,500,000

1,000,000 Figure 24. CORRéLATION ENTRE ATTRACTIVITé SECTORIELLE eT SPéCIALISATION RéGIONALE

500,000

Specialization of investment projects 0 e 3 anc Italy r Spain F Poland Austria Ireland omania Sweden Norway Finland Slovakia Belgium Bulgaria Germany R Hungary Portugal Denmark

Netherlands

Czech Republic United Kingdom* 2.5 Figure 3. contribution des entreprises sous controle étranger (En %)

Revenues 20.6

1.5 Staff costs 17.5

Value added 17 1

Investment 14.4 0.5

Employees 12.8

0 Businesses 0.6 0 0.5 1 1.5 2 2.5 3 3.5 % Specialization of employment 0 5 10 15 20 25

Figure 4. répartition des entreprises sous controle étranger par pays d’origine

600,000

500,000

400,000

300,000

200,000

100,000

Italy Japan Spain Israel China, Finland Belgium Sweden Denmark Portugal Romania Hungary Germany* Switzerland Netherlands Luxembourg United States* United Kingdom

excluding Hong Kong

Figure 5. Répartition de l'emploi sectoriel par type de contrôle des entreprises

Foreign multinational firms

French multinational firms

Other French businesses

% 0 10 20 30 40 50 60 70 80 90 100

Figure 7. contribution des filiales etrangeres aux dépenses de r&d par secteur (Top 10)

Figure 8. Part des chercheurs salariés de filiales etrangères par branche d'activité économique (top 10)

% % 70 70 60 60 50 50 40 40 30

20 30

10 20

0 10

industries Manufacture

Manufacture of Other activities Manufacture of of basic metals paper, printing machinery n.e.c. Chemicals industry

Other manufacturing Manufacture of food, Manufacture of wood, irradiation equipment Manufacture of computers, peripherals Manufacture of medical beverages and tobacco paper, printing equipment n.e.c. Chemicals industry communication equipment beverages, tobacco Manufacture of food, Electronic components, cards, Manufacture of wood, irradiation equipment computers, peripheralsManufacture of medical Pharmaceutical industry

Manufacture of machinery, Manufacture of basic metals communication equipment

Electronic components, cards, Other manufacturing industries

Sur chacun des critères suivants, la France est-elle selon vous tout à fait, plutôt, plutôt pas ou pas du tout attractive pour les investissements de R&D?

Total Total Unattractive Attractive Quality of R&D personnel 8 4 1 7 63 25 88 Proximity to markets and other business operations 19 22 17 68 11 79

Proximity to French innovation clusters 26 3 2 24 63 8 72 Potential for research partnerships with French academia 26 5 4 22 55 15 70 Investment opportunities through acquisitions of French firms 30 4 3 27 58 9 67

Amount of state aid for R&D 28 5 3 26 48 19 67

Access to finance 36 4 2 34 51 9 60

Cost of R&D operations 39 4 4 35 51 7 58

Estimez-vous que les industries françaises sont performantes sur les points suivants ? Total Total Doesn't perform well Performs well Quality of employees 15 1 2 13 71 13 85

Automatization of production tools 23 1 1 22 65 11 76

Quality of management 29 1 3 26 62 8 70

Move upmarket of products 29 2 1 28 60 9 69

Digitization of industrial processes 33 2 4 29 61 4 65

Digitization of information processing 34 1 4 30 60 5 65

Promotion of French expertise 40 1 3 38 48 12 59

Partnerships with innovative startups 40 4 6 34 54 3 57 Digitization of relationships with subcontractors 51 2 5 47 45 2 47 3 . REGIONAL ATTRACTIVENESS IN 2020

The economic attractiveness of urban areas can also be other French regions. If we measure the attractiveness explained by a combination of various factors: human of different regions versus their economic size, capital, connectivity, mobility, training and care, and estimations highlight that Bourgogne-Franche-Comté, quality of life. Ultimately, the regions with the highest Hauts de France, Grand Est, Auvergne-Rhône-Alpes and results are those which have created the necessary Occitanie regions welcomed a much higher number of conditions to welcome new people and thus foster foreign investment projects than their economic size business development. (proportion of national GDP) would suggest. Regions like Pays de la Loire have an attractiveness The attractiveness of the Ile de France/Paris region and corresponding to their economic size. France’s other major cities are not to the detriment of

Fig. 2 REGIONAL ATTRACTIVENESS INDEX (2020)

Number of projects/GDP

<0.5 to 0.7

0.8 to 1

1 to 2

> 2

Key: Grand Est has an attractiveness index equal to 1.2, which means that the share of foreign investment received by this region is greater than its economic weight.

Source: Business France, Annual Report 2020

METHODOLOGY REGIONAL ATTRACTIVENESS INDEX

This consists of identifying either the attractiveness or the potential attractiveness of a French region by taking into account its economic weight. The regional attractiveness index is determined by the share of projects received by this region, related to the share of this region in France’s national GDP.

An index score greater than one means that the region is more attractive than its economic size for foreign investors. Conversely, an index score of less than one means that the region is not as attractive as its weight in the French economy.

39 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

REGIONAL BREAKDOWN OF JOBS REGIONAL BREAKDOWN OF JOBS CREATED OR MAINTAINED PER 1,000 EMPLOYED The leading host regions by jobs created or maintained (2020) were Ile de France (Paris region) (28% of all jobs nationwide), Hauts de France (14%), Auvergne-Rhône- JOBS GENERATED BY RATIO PER Alpes (12%) and Grand Est (also 12%). FOREIGN INVESTMENT 1,000 JOBS To gauge the extent to which foreign subsidiaries have contributed to jobs and economic activity in France’s Auvergne-Rhône-Alpes 4,237 1.2 regions, the number of jobs created or maintained by new Bourgogne-Franche-Comté 1,459 1.3 foreign investments can be measured as a proportion of regional employment. As such, the ratio of jobs created in Bretagne (Brittany) 613 0.4 2020 by foreign investments per 1,000 people employed in the region was higher than the nationwide average of 1.3 for Centre-Val de Loire 385 0.4

Hauts de France (2.1), Grand Est (2), Ile de France (Paris Grand Est 4,175 2.0 region) (1.5), Pays de la Loire (1.4), Bourgogne-Franche- Comté (1.3) and Normandie (1.3). Hauts de France 4,746 2.1

Ile de France (Paris region) 9,619 1.5

Normandie 1,705 1.3

Nouvelle Aquitaine 1,175 0.5

Occitanie 2,400 1.0

Pays de la Loire 2,202 1.4

Provence-Alpes-Côte d'Azur 1,851 0.9

Mainland France 34,567 1.3

Source: Business France calculations

40 3 . REGIONAL ATTRACTIVENESS IN 2020

Fig. 3 REGIONAL BREAKDOWN OF JOBS CREATED OR MAINTAINED (2020)

Jobs generated by foreign investors

6,000-10,000

2,600-6,000

1,300-2,600

Less than 1,300

Ratio per 1,000 jobs 0.4 - 0.9

1 - 1.9

Over 2

Source: Business France, Annual Report 2020

41 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

They chose France

METALWORKING HEALTHCARE LE CAILLEBOTIS DIAMOND, GERMANY GSK, UNITED KINGDOM

The French subsidiary of the German group Lichtgitter, Le The GSK pharmaceutical laboratory, which employs Caillebotis Diamond has been the leading French 3,600 people in France, is the leading foreign manufacturer of pressed metal gratings for 80 years. international laboratory in terms of its industrial size, Cramped in its historic production facility in Lisieux logistics and number of employees, reflecting an (Normandie), the business has moved its 130 employees to ongoing commitment to France. After investing €90 a new site after having invested around €10 million in a million in 2019 in its three production sites and its more spacious and modern facility. This project enables it clinical research activities, GSK continued to expand in to have five to six times the storage space and to optimize France. In 2020, the Saint-Amand-les-Eaux site in Hauts flows. Building on steadily growing activity over the past de France recruited 47 employees on permanent three years (+40%), the firm has already recruited 27 contracts. Thanks to a policy of sustained investment people to strengthen its teams. Within two years, the in equipment and human resources, the Saint-Amand business is planning a second investment of €10 million for site adheres to the highest quality and safety standards, new production equipment, leading to the hiring of 25 to which are essential when it comes to producing vaccines 30 employees. A great example of a Normandie-based for the implementation and rollout of national company that is on the rise. immunization programs around the world. Specializing in the production of vaccines in an aseptic environment, this site has a global reach, with 95% of its production exported to 125 countries.

SOFTWARE AND IT SERVICES VECTICE, UNITED STATES

Franco-American startup Vectice has succeeded in raising HOUSEHOLD GOODS US$3 million in the first three months following its creation. E V D E M A , TURKEY It joined the Loire ecosystem burgeoning in digital technology, particularly in artificial intelligence and data The business is a Turkish manufacturer and importer/ management. In Nantes, where multiple coworking offers distributor of household goods (decoration and kitchen are based, the business has set up its R&D center at the furniture). It opened a retail outlet in Saint-Priest heart of the Nantes digital community, aiming to recruit 20 (Auvergne-Rhône-Alpes), creating 25 jobs, as part of a new talents in three years. more ambitious project to open a chain of stores, some of which would be fully owned, which would generate 60 additional jobs in France in 2021-2022.

CONSULTING AND BUSINESS SERVICES W E V I O O, TUNISIE

Wevioo is a Tunisian mid-size company specializing in digital transformation, in particular for the technological, industrial and financial sectors. It has continued to strengthen its Issy- les-Moulineaux office (Paris/Ile de France region) by creating more than 35 jobs to reach more than fifty.

42 3 . REGIONAL ATTRACTIVENESS IN 2020

INVESTMENT ARE MADE PRIMARILY IN proportion of investment projects in 2014-2020 (19% of MODEST-SIZED TOWNS projects), 41% of investments were made in towns with fewer than 20,000 inhabitants and 70% in towns with As the French National Institute for Statistics and fewer than 200,000 inhabitants. Economic Studies (INSEE) points out, the majority of major European agglomerations boast stronger Entrepreneurial attractiveness can also be seen within demographic growth than their country as a whole. In major regional cities: Greater Paris (24%), Greater Lyon France, contrary to what is observed in the rest of (5%), Marseille/Aix en Provence (3%), Toulouse (3%) and Europe, population growth is stronger in outer suburbs the Lille conurbation (3%) attracted 35% of projects in than within urban centers. This densification of 2020. peripherical areas is a singular tendency of French cities. Nevertheless, investment decisions are not just Foreign investments are made principally in modest- concentrated in major cities; 41% of them in 2020 were to sized towns. Although Paris attracted a significant be found in towns with fewer than 200,000 inhabitants.

BREAKDOWN OF PROJECTS BY TOWN AND CITY SIZE (2014-2020)

2020 2014 - 2020 SIZE OF TOWNS AND CITIES PROJECTS JOBS PROJECTS JOBS < 20,000 inhabitants 42% 42% 41% 47% 20,000 to 100,000 inhabitants 23% 28% 22% 25% 100,000 to 200,000 inhabitants 7% 10% 7% 6% 200,000 to 300,000 inhabitants 4% 2% 3% 3% 300,000 to 400,000 inhabitants 2% 1% 1% 1% 400,000 to 500,000 inhabitants 2% 2% 2% 3% > 500,000 inhabitants 21% 14% 24% 14%

Source: Business France, Annual Reports 2014-2020

BREAKDOWN OF PROJECTS BY AGGLOMERATION SIZE (2014-2020)

2020 2014 - 2020 SIZE OF AGGLOMERATIONS PROJECTS JOBS PROJECTS JOBS < 50,000 inhabitants 16% 11% 17% 16% 50,000 to 200,000 inhabitants 25% 31% 23% 30% 200,000 to 500,000 inhabitants 14% 14% 15% 16% 500,000 to 1,000,000 inhabitants 10% 9% 8% 9% > 1,000,000 inhabitants 35% 34% 37% 29%

Source: Business France, Annual Reports 2014-2020

43 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

MARIE-GUITE DUFAY, CAROLE DELGA, PRESIDENT OF PRESIDENT OF BOURGOGNE-FRANCHE-COMTÉ OCCITANIE AND THE AD’OCC AGENCY

In the spring of 2020, the Bourgogne-Franche-Comté During the Covid-19 crisis, I am proud that the Occitanie region worked to put in place emergency measures to region has been pro-active, supporting job-creating support the local economy and preserve jobs. Then, a regional businesses, foreign investors and job creators. series of stimulus measures to support the industrial Our regional recovery plan, “Green New Deal”, includes base were approved. We believe it is essential to stay an investment component for re-industrialization and the course to be ready to face the major changes of our relocation. We have therefore launched “RelOCC”, a time, sources of innovation and economic development. call for industrial projects in Occitanie, the aim of which It is with this aim in mind that we have developed our is to promote and finance these projects through the investment acceleration plan, one of the pillars of new Regional Agency for Strategic Investments (ARIS). which is our commitment to the ecological transition Industrial firms’ development projects are ours too; we by supporting innovation and the development of a will stand by to offer any help they may need. hydrogen sector.

ALEXANDRE WAHL, DIRECTOR OF THE NORMANDIE ECONOMIC DEVELOPMENT AGENCY NORMANDIE

Since 2016, 189 investment projects from foreign- owned businesses have been hosted in Normandie, with 94 having been supported by AD Normandie (innovation, export, development, equity) amounting to €22 million, creating and maintaining 6,301 jobs. A one-stop shop for regional aid, AD NORMANDIE supports each business throughout its project by providing the following: Free, confidential and personalized advice relating to business setup, expansion and acquisition projects by a single bilingual contact person. Financial aid solutions and a response in fewer than 60 days. Acquisition of equity stakes in businesses via Normandie Participations, a regional co-investment fund. A network of public and private regional partners (local development agencies, developers, business sectors, etc.) For further information, www.adnormandie.fr

44 3 . REGIONAL ATTRACTIVENESS IN 2020

RENAUD MUSELIER, LUC DOUBLET, PRESIDENT OF CHAIRMAN OF NORD FRANCE INVEST AND CHAIRMAN SUD PROVENCE-ALPES-CÔTE D’AZUR OF THE SUPERVISORY BOARD OF DOUBLET SA HAUTS DE FRANCE France is facing a huge crisis, with unprecedented damage to the economy and the Provence-Alpes-Côte As part of the regional recovery plan, the Hauts de d’Azur region. To deal with this, we have put in place a France region has put in place an ambitious €1.3 billion €1 billion recovery plan structured around five major plan to promote the set up and resumption of economic projects and made up of 18 measures to support our activity. Four major axes for businesses have been businesses. The region supported them throughout the identified, including: crisis, so as not to leave anyone by the wayside. With Protecting and supporting regional businesses. this plan, the region is positioning itself as a European model of sustainable and resilient economic develop- Encouraging industrialization in Hauts de France ment, supporting the growth of businesses and regions. through a pro-active prospecting plan and welcoming new businesses. Supporting business transformation, innovation and digitization. Focusing on the economy of tomorrow: supporting businesses in economic and ecological transitions (the Hauts de France region has been shortlisted to pilot a “New Green Deal”). VINCENT BOST, DIRECTOR OF THE NOUVELLE AQUITAINE DEVELOPMENT AND INNOVATION AGENCY NOUVELLE AQUITAINE

The Nouvelle Aquitaine Development and Innovation Agency (NADIA) promotes the economic development of the Nouvelle Aquitaine region, in particular through the levers of innovation and attractiveness. For example, actions carried out in 2020 to promote international attractiveness include: National call for “turnkey site” projects: NADIA coordinates with all stakeholders (State, Region) on an awareness campaign with regional EPCIs. Launch of major key projects alongside the Nouvelle Aquitaine region: NADIA has contributed to the structuring of the Ferrocampus project in Saintes. This future regional campus, dedicated to the rail industry, will make Saintes a unique center of expertise in Europe, attractive for new investments. Regeneration of the former Ford industrial site in Gironde: NADIA is carrying out an endogenous and exogenous economic development mission with partners in the region. As part of its partnership with Business France: NADIA coordinates the processing of regional set up projects.

45 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

FRANCE’S INCREASING ATTRACTIVENESS IN ACTIVITIES WITH HIGH VALUE ADDED

FOREIGN BUSINESSES PREFER The operations of businesses can be broken down into a variety of business activities: manufacturing, R&D, business MANUFACTURING OPERATIONS services, consumer services, logistics and distribution, retail In 2020, foreign investors preferred manufacturing outlets, decision-making centers and headquarters. operations (25% of all investments) and decision-making centers (23%), as well as retail outlets (13%) and business services (13%).

BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY (2020)

PROJECTS JOBS PROJECTS JOBS

2020 2019 2020 2019 Share Change Share Change

Manufacturing 308 380 12,875 13,814 25% -19% 37% -7%

Decision-making centers 274 362 3,976 5,219 23% -24% 12% -24%

First-time investments in Europe 39 57 391 471 3% -32% 1% -17%

First-time investments in France 127 193 1,365 2,755 10% -34% 4% -50%

Global / European headquarters 43 37 485 434 4% 16% 1% 12%

French headquarters 65 76 1,735 1,559 5% -14% 5% 11%

Retail outlets 163 200 3,438 4,378 13% -19% 10% -21%

R&D, engineering 146 157 2,708 3,775 12% -7% 8% -28%

R&D 69 98 1,240 2,542 6% -30% 4% -51%

Engineering 77 59 1,468 1,233 6% 31% 4% 19%

Business services 159 186 7,429 6,043 13% -15% 21% 23%

Consumer services 93 112 1,313 2,995 8% -17% 4% -56%

Logistics 72 71 2,828 3,318 6% 1% 8% -15%

Total 1,215 1,468 34,567 39,542 100% -17% 100% -13%

Source: Business France, Annual Report 2020

46 3 . REGIONAL ATTRACTIVENESS IN 2020

Various entities within multinational corporations play a investments in France or Europe. Numerous foreign role in decision-making processes, including the groups have expanded or set up their headquarters in company’s registered office, strategic and operational France, such as the Canadian subsidiary Premier Tech, divisions, and R&D centers. With advancing globalization, which chose France as the location for its European decision-making is becoming increasingly fragmented, headquarters for Water and Environment, as well as leading to the disappearance of single-site pyramidal Producers and Consumers, and the American subsidiary decision-making structures. As businesses become Innit, which set up its European headquarters in Paris. global, they have to create regional decision-making centers, as a result of which the power to make decisions The number of investment decisions involving global and is dispersed across large distances. European headquarters based in France (43) increased by 16% in 2020. American and Japanese firms were In 2020, projects involving decision-making centers responsible for 19% and 12%, respectively, of all projects accounted for 23% of investments. Nearly two-thirds of involving global headquarters in France. these investments corresponded to first-time

METHODOLOGY DECISION-MAKING CENTERS

At multinational firms with numerous sites in Europe, the activities carried on by decision-making centers can include acting as:

• A Global or European Headquarters, covering perhaps not only Europe, but also northern Africa and the Middle East.

• A French Headquarters, responsible for coordinating all a foreign firm’s operations in France.

Headquarters can be defined as internal structures with a leader and team responsible for making strategic decisions that have a bearing on all or part of the company, particularly regarding investment and jobs.

Business France also includes first-time investments in France or Europe under the decision-making center category. These investments comprise all services or commercial activities designed to secure a foothold and establish a business to serve the French or European market. The structures are generally smaller in size and are designed for operations of this scope to be run from France.

Activities such as those described above create value – directly or indirectly – and are vital to the regions in which they are based.

Firstly, headquarters require a highly qualified workforce, and can employ anywhere from a few hundred to a few thousand people. Secondly, where a business decides to locate its headquarters makes it more likely that other operations, such as research laboratories, will follow. It therefore becomes important for regions to remain competitive should they wish to attract, consolidate and retain economic activity.

47 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

They chose France

AGRI-FOOD CONSULTING, ENGINEERING S E A B E X , TUNISIA LYCOM CONSULTING, MOROCCO

The Tunisian startup Seabex, specializing in solutions for The Moroccan startup Lycom Consulting, specializing in precision agriculture, has set up its decision-making SaaS solutions for HR management in terms of employee center in Orléans (Centre-Val de Loire) to benefit from engagement and talent retention, has set up its European the local AgTech ecosystem to develop R&D activities, office, BTPW Europe, in Rouen (Normandie) to recruit an raise funds and also boost international development R&D team (artificial intelligence and big data themes), with its first subsidiary in Tunisia. This project will create facilitate its international development (particularly on around 15 jobs over three years. the African continent but also on the European and American markets) and raise funds. This project will create ten jobs over three years.

WHOLESALE AND RETAIL LIDL, GERMANY AGRI-FOOD TIANLONG, CHINA The leading German investor in France in terms of number of employees, Lidl is investing €70 million to relocate its Specializing in R&D in the agricultural sector, Tianlong regional management and create a new logistics platform Agriculture established its European headquarters in in Lacq (Nouvelle Aquitaine region). The 25-hectare 2019 in Tarascon (Provence-Alpes-Côte d’Azur region), facility, which will be built on a brownfield site, will be where it is continuing its expansion. Tianlong confirmed operational in 2023 and will create 150 new jobs. its choice by taking over two other businesses in the area in 2020: Deltapack, a manufacturer of recycled technical papers intended for the food and industrial sectors and Lvanto, specializing in the international logistics of perishable products. Tianlong Agriculture also created TT Seed Science in Tarascon in January 2020, which develops and supplies new types of rice to producers, HEALTHCARE mainly in France. In total, Tianlong has 29 employees in FRESENIUS, GERMANY France.

The global leader in products and services for the treatment of renal failure, the German business Fresenius is investing in its Arbresle site, near Lyon (Auvergne-Rhône-Alpes region) so as to strengthen its production facilities. This investment will create 100 new jobs on the third largest industrial site in the world for the group.

48 3 . REGIONAL ATTRACTIVENESS IN 2020

THE BUSINESS ACTIVITY ATTRACTIVENESS INDEX REVEALS REGIONAL SPECIFICITIES METHODOLOGY The business activity attractiveness index for 2020 REGIONAL BUSINESS ACTIVITY underlines the attractiveness of the Auvergne-Rhône- Alpes, Bourgogne-Franche-Comté, Pays de la Loire, ATTRACTIVENESS SPECIALIZATION INDEX Centre-Val de Loire, Grand Est, Hauts de France and This consists of identifying the business activities Normandie regions for manufacturing activities. In terms for which French regions have high attractiveness of flows, it is the logistics business activity that generally compared with their weight in attracting foreign takes over once goods have been produced. The regions investments to France. of Hauts de France, Grand Est, Normandie and Centre-Val de Loire are particularly attractive for logistics activities. We check if a region benefits from greater The presence of Sophia Antipolis, the largest technology attractiveness for specific activities. park in France and Europe, as well as the associated ecosystem, explains the Provence-Alpes-Côte d’Azur The attractiveness index by business activity is region’s strong attractiveness for setting up and determined by the share of projects received by each developing new R&D centers. The economic might of Ile region, related to the share of this same business de France (Paris region) explains its strong attractiveness activity in all France's projects. for hosting decision-making centers.

Fig. 4 REGIONAL BUSINESS ACTIVITY ATTRACTIVENESS SPECIALIZATION INDEX

R&D, engineering

Logistics

Retail outlets

Decision-making centers

Manufacturing

Consumer services

Business services

Source: Business France, Annual Report 2020

BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

They chose France

SOFTWARE AND IT SERVICES AUTOMOTIVE INDUSTRY S H O W PA D, BELGIUM VOLKSWAGEN, GERMANY

Showpad is a Belgian software publisher that has The Scania Group, which is a subsidiary of Volkswagen, developed a digital platform for sales and marketing announced in December 2020 that its Swedish truck teams, allowing presentations and sales arguments to be assembly site in Södertälje would eventually focus on the personalized and made more interactive during client assembly of electric trucks, offering the Angers site (Pays meetings. The rapidly growing business recently opened de la Loire region) the opportunity to recover most of the offices in Chicago, Munich and the Netherlands. With trucks previously assembled in Sweden. This announcement revenues of €25 million and more than 1,000 customers offers the Angers site good prospects for the future, an representing 100,000 users, Showpad decided to open increase in production volume and new impetus in terms an office in Paris in 2019 to serve the French market, of recruitments. Building on the confidence of the Group, where it already has around forty customers and the Angers company will rethink its day-to-day generates revenues of €1.2 million. This office will employ organization by reorganizing itself into two teams in the 25 people within three years. second half of 2021. To achieve this, Scania Production Angers is planning to hire around 250 new employees.

SOFTWARE AND IT SERVICES IT SERVICES COMPUTACENTER, UNITED KINGDOM HCL TECHNOLOGIES, INDIA

The British group Computacenter, leader in IT This Indian leader in IT services, such as outsourcing and infrastructure services and solutions, strengthened its software integration, has decided to significantly presence in Occitanie in 2019, with the opening of a new increase its presence in France and in particular at its service center in Perpignan. The Perpignan site enables Saint-Priest site (Auvergne-Rhône-Alpes), where the Computacenter to respond to the start of production of group has already recruited around a hundred IT its new contracts, in support of the Montpellier site, engineers for the year 2020. HCL wishes to continue to which is reaching saturation point. Large accounts, like expand in the region and hopes to double its workforce Airbus, outsource all or part of the IT support for internal in the Lyon region by recruiting 250 additional employees users to Computacenter, with 150 jobs planned by the over the next three years. end of 2020 and 300 for the longer term. After starting operations at the end of 2019, there were already more than 50 recruitments at the end of February 2020.

50 Chap 2 Figure 1. Evolution des projets et emplois associés Figure 8. Contribution par pays à l’évolution des emplois

En % 1,800 45,000 12

39,542 1,600 40,000

10 34,567 1,400 33,682 33,474 35,000

30,108 30,302 8 1,200 30,000 26,535

1,000 25,000 6

800 20,000

4 600 15,000

1,014 962 1,117 1,297 1,323 1,468 1,215 2 400 10,000

200 5,000 0

g as

Figure 2 Figure 9. Contribution par fonction à la hausse des projets

Point de vente

% Production / Réalisation

8% 14% Logistique 2% Total R&D, ingénierie, design

positive Services aux particuliers 90% Centre de décision 76% Services aux entreprises

En % -3 -2 -1 0 1 2 3 4 5 6 7 8 Figure 3

Figure 10. Contribution par fonction à la hausse des emplois %

13% Point de vente 2% Production / Réalisation 45% Total attractive Services aux entreprises 41% 85% Centre de décision

R&D, ingénierie, design 3 . REGIONAL ATTRACTIVENESS IN 2020

Logistique

Figure 4. Répartition des projets selon les emplois créés ou maintenus en 2020 Services aux particuliers

En % 0 2 4 6 8 10 12% MANUFACTURING ACTIVITIES 1% Fig. 5 BREAKDOWN BY TOP 15 SECTORS OF JOBS ARE THE LEADING33% Size of projects IN MANUFACTURING IN FRANCE (2020) CONTRIBUTORS TO EMPLOYMENTLess than 10 20% 10 to 19 Figure 5. Composition sectorielle des emplois dans la production en France 20 to 49 Manufacturing activities account50 to 249for an important stake % % in terms of employment, being250 the and over leading contributor, 20 100 with 12,875 jobs, or 37% of total employment.

Manufacturing33% investments involved expanding existing 16 80 facilities in 68% of cases, while a further 21% involved new sites. As such, in 2020 there were 208 expansions of industrial sites and 66 new industrial plants created. It 12 60 Figure should5 be noted that the number of new manufacturing sites created was up 32% in 2020 and by an annual Répartition des projets par type d'investissement average of 30% since 2017. Jobs generated by new 8 40 manufacturingExpansion sites following increased takeover by 63% in 2020. Expansion following buyout 1% 2%Nearly two-thirds of foreign investments in 4 20 manufacturing were made by businesses from Germany, the United States, Italy, Spain, Switzerland and the United Kingdom. 0 0

GermanyTakeover was France’s leading inward investor in 3% Creation Agri-food equipment equipment Expansion and devices industrial activities: with 54 projects, it was responsible Metalworking

Glass, ceramics, 52% Pharmaceuticals service providers 41% Chemicals, plastics Telecoms, internet for 18% of investments and 12% of jobs they generated, as Medical equipment Textiles/accessories Automotive industry and biotechnologies Energy and recycling Consumer electronics Building, construction Electronic components Machinery/mechanical minerals, wood, paper

German investment rose 13% from 2019. The United Aerospace/naval/railway

States was the next leading contributor, with 48 projects Share of manufacturing jobs by sector in France (left axis) that accounted for 16% of investment decisions and 13% Figure 11. Composition sectorielle des projets de production en France Share of jobs from this sector in manufacturing (right axis) of jobs. Also of note was the sharp increase in Spanish En % En % (+43%) and Dutch (+50%) investments, which most often Key: 18% of jobs in manufacturing were made by businesses in the automotive involved setting up new manufacturing sites in France. industry;25 90% of jobs created in this sector were made in manufacturing. 100

Source: Business France, Annual Report 2020 20 80 Figure 6. Répartition des projets en fonction de la taille de la société mère en 2020

15 60 SEEKING A MORE Large creation and the attractiveness of production sites has corporates COMPETITIVE INDUSTRY improved. However, France continues to attract fewer sites10 than its key elements and natural resources can 40 accommodate. SMEs Among the factors supporting the industrial trend are 5 20 the competitiveness reforms (taxation, social issues, All the corrective measures taken by the French

Mid-size regulation and simplification) being carried out in government, such as the CICE, the responsibility pact, companies France. The rise in French hourly labor costs has slowed transforming the CICE into reduced social security 0 0 significantly since 2013 relative to the euro zone, thanks contributions, the choice to bring the level of corporate Micro- to the introduction of the competitiveness and tax closer to what it is in the main comparable countries enterprises employment (CICE) tax credit and the responsibility and the recent measures announced as part of the Machines et Automobiles Équipements électroniques Ameublement Aéronautiques, BTP, matériaux Médicaments et pact. Between the fourth quarter of 2012 and the second% stimulus plan towardsde construction aAgroalimentaire reduction in production taxes Chimie, plasturgie Verre, céramique, Énergie, recyclage

Textile, habillement 0 quarter10 of 2020,20 the30 increase40 in labor50 costs60 in France70 was (reductionnavals et ferroviaires of production taxes, halving of theParfums, cosmétiques businessmédico-chirurgicaux minéraux, bois, papier Équipements électriques, équipements mécaniques Composants électroniques Métaux, travail des métaux below the average increase for the euro zone as a whole, value-added contribution (CVAE) and ofbiotechnologies the appliquées property coming in at 9.8% in France, compared with 14.4% for the tax, and reducing from 3% to 2% of the value-added of euro zone. Figurethe 12. capping Composition sectorielle rate of des theemplois local dans la production economic en France contribution) all help to create a fiscal environment more favorable to As a result of tax reforms and tax cuts decided by the industrial investment. The ambition is to allow Figure 7. Répartition des projets par région d’origine en 2020 French government in recent years, the hourly cost of businesses to generate additional margins, to increase labor in France’s2% manufacturing industry (€38.70) was Attractivitétheir investments de la France pour les investissements and their en R&Dinnovation efforts, thereby 1% Africa Middle East lower than in Germany (€41.80) in the fourth quarter of enabling them to strengthen their non-price 3% Other 2019. France’s performance in terms of industrial job competitiveness.Sous-total « Pas attractive » En % Sous-total « Attractive » Asia Proximité des marchés et des autres activités de l'entreprise 14 1 13 44 42 86 10% Qualité des personnels de R&D 14 1 14 50 36 86

Proximité de clusters français 15 2 14 50 35 85 51 North 20% Europe America Possibilités de collaboration avec des équipes 64% de recherche académiques françaises 18 1 17 44 38 82

Niveau des aides publiques de la R&D 20 3 17 47 34 81

Accès au financement 20 3 18 52 28 80

Coût des activités de R&D 22 2 20 46 33 78

Opportunités d'investissement par acquisition d'entreprises françaises 22 5 18 47 31 78

Création Creation

Principales contributions par secteur à l'évolution des emplois

Extension Expansion Pharmaceuticals and biotechnologies Medical equipment and devices Energy and recycling Reprise Takeover Telecoms, internet service providers Consulting and business services Electronic components Expansion following Glass, ceramics, minerals, wood, paper Rachat-extension buyout Media, publishing Machinery and mechanical equipment Perfumes, cosmetics Expansion following Agri-food Reprise-extension takeover Metalworking % Electrical/IT equipment 0 10 20 30 40 50 60 Financial services and insurance Sport and leisure Textiles and accessories Wholesale and retail Chemicals, plastics Transport, storage Hospitality, tourism and restaurants IT services Aerospace, naval and railway equipment % -5 -4 -3 -2 -1 0 1 2 3 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

INDUSTRIAL ACTIVITIES ARE PRESENT that 71% of industrial investments were located in THROUGHOUT FRANCE agglomerations with fewer than 200,000 inhabitants, versus 41% for all investments. Grand Est, Auvergne-Rhône-Alpes, Hauts de France, Bourgogne-Franche-Comté and Occitanie were among It is clear that France has recently reinforced its the leading French regions for foreign investment on industrial strategy through the National Industry industrial sites in 2014-2020. Manufacturing Council and its 18 industrial sectors, with highlights investments held up or increased in Auvergne-Rhône- including fast-track support for 4,000 SMEs by Alpes (+16%), Grand Est (stable) and Provence-Alpes- Bpifrance, digital investment, learning and international Côte d’Azur (+15%). support under the “La French Fab” banner. What’s more, at a meeting with the National Industry Council New sites and expanded manufacturing facilities were on November 22, 2018, the Prime Minister launched the mainly located in towns with fewer than 20,000 “Regions of Industry” program, benefiting 146 regions, inhabitants, welcoming 68% of industrial investments. which receive more than ¤1.3 billion. In 2020, 57% of industrial investment projects and 68% of associated The geographical breakdown of manufacturing jobs were located in regions of industry. activities stands out from that of all projects. An analysis of investments by town and city size reveals

BREAKDOWN OF INDUSTRIAL ACTIVITIES BY TOWN AND CITY SIZE (2014-2020)

2020 2014 - 2020 SIZE OF TOWNS AND CITIES PROJECTS JOBS PROJECTS JOBS < 20,000 inhabitants 68% 67% 73% 70% 20,000 to 100,000 inhabitants 19% 23% 17% 20% 100,000 to 200,000 inhabitants 7% 4% 5% 4% 200,000 to 300,000 inhabitants 1% 1% 1% 1% 300,000 to 400,000 inhabitants 1% 2% 0.3% 0.3% 400,000 to 500,000 inhabitants 1% 2% 1% 3% > 500,000 inhabitants 3% 1% 2% 1%

Source: Business France, Annual Reports 2014-2020

BREAKDOWN OF PROJECTS BY AGGLOMERATION SIZE (2014-2020)

PRODUCTION TOTAL SIZE OF AGGLOMERATIONS PROJECTS JOBS PROJECTS JOBS < 50,000 inhabitants 32% 20% 16% 11% 50,000 to 200,000 inhabitants 39% 52% 25% 31% 200,000 to 500,000 inhabitants 14% 12% 14% 14% 500,000 to 1,000,000 inhabitants 6% 7% 10% 9% > 1,000,000 inhabitants 9% 9% 35% 34%

Source: Business France, Annual Reports 2014-2020

52 3 . REGIONAL ATTRACTIVENESS IN 2020

Fig. 6 GEOGRAPHICAL BREAKDOWN OF INDUSTRIAL ACTIVITIES (2014-2020)

Breakdown of manufacturing projects (2014-2020)

< 5%

5% to 10%

10% to 15%

> 15%

Business France, Annual Reports 2014-2020

53 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

RELAUNCH FRANCE: AN AMBITIOUS PLAN TO TRANSFORM THE ECONOMY AND STRENGTHEN FRENCH COMPETITIVENESS

Relaunch France aims to set up new industrial activities Foreign investors are participating in the revival and (€2 billion to attract industrial projects in strategic areas modernization of the productive apparatus and and sectors) and support the decarbonization of industry technological innovation. The first 20 investment projects (modernization, digitization and greening of industrial selected to benefit from the industrial regions activities). acceleration fund are led by foreign businesses – €512 million of investment generated, particularly in RELAUNCH FRANCE: A REGIONAL REVIVAL strategic sectors. FOR FOREIGN BUSINESSES TO BENEFIT FROM RELAUNCH FRANCE: A EUROPEAN AMBITION The recovery plan was rolled out without delay from the end of 2020 and will be strengthened in 2021. In all, A total of €40 billion in European funding (Next €11 billion was allocated in 2020, of which €9 billion was Generation European Union Plan) following the historic paid out). In 2021, an additional €40 billion will be invested. agreement signed in July 2020, with clear guidelines set by the EU for a harmonized recovery: ecological We have already seen positive news relating to the transition, green energies and technologies, digital industrial investment component, with nearly 920 development, increased industrial capacities, investment projects already supported, representing adaptation of education systems, etc. €3.7 billion in investments (businesses) and €838 million in state aid (as of December 31, 2020). These include: An industrial revival at European level: launch of Important Projects of Common European Interest • 253 projects supported in industrial areas (69% in (IPCEIs) to support and finance structuring and areas considered fragile), ultimately resulting in the modernization projects in strategic future sectors creation of more than 5,000 jobs. (hydrogen, healthcare, etc.).

• Sixty-five (re)localization projects in strategic sectors (healthcare, critical inputs for industry, electronics, agri-food, telecommunications), with the eventual creation of 3,000 industrial jobs and the preservation of 7,000 jobs.

54 Chap 3 Figure 1. Filiales étrangères en Europe. Top 20 des pays d'accueil Figure 16. CORRELATION ENTRE L’INVESTISSEMENT ET LA TAILLE ECONOMIQUE DU MARCHE

30,000 € million 800,000

700,000 y = 2051,8x - 16487 25,000 R² = 0.9114 600,000

500,000 20,000 400,000 Regional GDP 300,000

15,000 200,000

100,000

0 10,000 0 50 100 150 200 250 300 350 400 450 Number of investment projects

5,000 Figure 18. INDICE D’ATTRACTIVITé DES RéGIONS EN 2019

0 Provence-Alpes-Côte d'Azur

Italy Spain France Latvia Austria Poland Croatia Sweden Norway Romania Hungary Bulgaria Slovenia Portugal Germany Denmark Pays de la Loire Netherlands Luxembourg Czech Republic United Kingdom* Occitanie

Nouvelle-Aquitaine Figure 2. Emplois dans les filiales étrangères - Top 20 Normandie

Île-de-France (Parsi region) 4,000,000 Hauts-de-France

3,500,000 Grand Est

Dom-Tom 3,000,000 Centre-Val de Loire

Bretagne (Brittany) 2,500,000

Bourgogne-Franche-Comté

2,000,000 Auvergne-Rhône-Alpes

0 0.5 1 1.5 2 2.5 1,500,000

1,000,000 Figure 24. CORRéLATION ENTRE ATTRACTIVITé SECTORIELLE eT SPéCIALISATION RéGIONALE

500,000

Specialization of investment projects 0 e 3 anc Italy r Spain F Poland Austria Ireland omania Sweden Norway Finland Slovakia Belgium Bulgaria Germany R Hungary Portugal Denmark

Netherlands

Czech Republic United Kingdom* 2.5 Figure 3. contribution des entreprises sous controle étranger (En %)

Revenues 20.6

1.5 Staff costs 17.5

Value added 17 1

Investment 14.4 0.5

Employees 12.8

0 Businesses 0.6 0 0.5 1 1.5 2 2.5 3 3.5 % Specialization of employment 0 5 10 15 20 25

Figure 4. répartition des entreprises sous controle étranger par pays d’origine

600,000

500,000

400,000

300,000

200,000

100,000

Italy Japan Spain Israel China, Finland Belgium Sweden Denmark Portugal Romania Hungary Germany* Switzerland Netherlands Luxembourg United States* United Kingdom

excluding Hong Kong

Figure 5. Répartition de l'emploi sectoriel par type de contrôle des entreprises

Foreign multinational firms

French multinational firms

Other French businesses 3 . REGIONAL ATTRACTIVENESS IN 2020 % 0 10 20 30 40 50 60 70 80 90 100

Figure 7. contribution des filiales etrangeres aux dépenses de r&d par secteur (Top 10)

Figure 8. Part des chercheurs salariés de filiales etrangères par branche d'activité économique (top 10)

% % 70 70 60 60 50 50 40 40 30 20 30 FURNISHINGS, HOUSEHOLD GOODS BUILDING MATERIALS 20 EMCO FRANCE, GERMANY 10 V E L U X , DENMARK 0 10 The European leader in entrance mat and overflow grilles The Danish group VELUX, the global leader in the roof 0

has relocated part of its German production to the Jura window market, has invested €3 millionindustries in the creation Manufacture

Manufacture of Other activities Manufacture of (Bourgogne-Franche-Comté region). In 2016, Emco of new production activities,of basic metals dedicated topaper, printing flexible solar- machinery n.e.c. Chemicals industry France was awarded the “Made in Jura Association” powered roller shutters. The MarnayOther manufacturing site (Bourgogne-Manufacture of food, Manufacture of wood, irradiation equipment Manufacture of computers, peripherals Manufacture of medical beverages and tobacco paper, printing equipment n.e.c. Chemicals industry certification. Very conscious of the “Deutsche Qualität” Franche-Comté), chosen for this new activity, ledcommunication to equipment the beverages, tobacco Manufacture of food, Electronic components, cards, Manufacture of wood, irradiation equipment label, the group is keen to manufacture a tailor-made creation of 32 jobs in 2020. In addition, the VELUX Group computers, peripheralsManufacture of medical Pharmaceutical industry Manufacture of machinery, Manufacture of basic metals communication equipment

Electronic components, cards, product that can be defined as “the haute couture of home has invested €6 million in its roof window manufacturing Other manufacturing industries furnishings”, requiring a skilled workforce. The German site in Feuquières-en-Vimeu (Hauts de France) to create group has chosen to invest €1.2 million in Dampierre a new paint line (€4 million) and in robotics (€2 million). (Bourgogne-Franche-Comté region) to expand its This contributed to the creation of 20 jobs at the site in production activity. This will create a center of expertise 2020.Sur chacun des critères suivants, la France est-elle selon vous tout à fait, plutôt, plutôt pas ou pas du tout attractive pour les investissements de R&D? facilitating access to certain international markets. Total Total Supported by the region through the France stimulus plan, Unattractive Attractive the investment should generate 15 jobs, the local business Quality of R&D personnel 8 4 1 7 63 25 88 having convinced its shareholder to transfer expertise Proximity to markets and other business operations 19 22 17 68 11 79 from Germany to France. Proximity to French innovation clusters 26 3 2 24 63 8 72 Potential for research partnerships with French academia 26 5 4 22 55 15 70 InvestmentFRENCH opportunities INDUSTRY IS ATTRACTIVE through acquisitions of French firms 30 4 3 27 58 9 67 For 80% of foreign executives, French industry is Amountattractive of state aid for R&D (Business28 France/Kantar5 3 26 48 Attractiveness19 67

Accessof to financeFrance survey). More36 4 2 than34 two-thirds51 of9 company 60 directors laud the quality of the workforce and MACHINERY AND MECHANICAL EQUIPMENT Cost ofmanagement, R&D operations the automatization39 4 4 35 of51 production7 tools 58 A G C O, UNITED STATES and the move upmarket of products. Estimez-vous que les industries françaises sont performantes sur les points suivants ? AGCO, American designer, manufacturer and distributor Total Total Doesn't perform well Performs well of machinery and solutions for agriculture, announced Quality of employees 15 1 2 13 71 13 85 the expansion of its Beauvais (Hauts de France) site and the creation of 200 new jobs, thanks to the acquisition Automatization of production tools 23 1 1 22 65 11 76 of the former neighboring site Froneri, which covers Quality of management 29 1 3 26 62 8 70 nearly 39 acres. Once the renovation of the site is completed, AGCO’s activity will be increased to a total Move upmarket of products 29 2 1 28 60 9 69 area of 133 acres and will employ more than 2,500 Digitization of industrial processes 33 2 4 29 61 4 65 people. The new site will allow the full design, validation and production of new models to be carried out and will Digitization of information processing 34 1 4 30 60 5 65 increase production volumes to 18,000 tractors per year. Promotion of French expertise 40 1 3 38 48 12 59 At the same time, AGCO will invest €40 million to improve the quality of the site and accelerate R&D and innovation. Partnerships with innovative startups 40 4 6 34 54 3 57 This expansion will be accompanied by the integration Digitization of relationships 2 5 47 45 2 of new activities: a tractor customization workshop, with subcontractors 51 47 additive manufacturing, in-house production of hydraulic tubes and gearbox reconditioning. Don't know Doesn't perform well at all Doesn't perform well Performs well Performs very well

Source: Business France - Kantar Attractiveness of France survey

55 Chap 3 Figure 1. Filiales étrangères en Europe. Top 20 des pays d'accueil Figure 16. CORRELATION ENTRE L’INVESTISSEMENT ET LA TAILLE ECONOMIQUE DU MARCHE

30,000 € million 800,000

700,000 y = 2051,8x - 16487 25,000 R² = 0.9114 600,000

500,000 20,000 400,000 Regional GDP 300,000

15,000 200,000

100,000

0 10,000 0 50 100 150 200 250 300 350 400 450 Number of investment projects

5,000 Figure 18. INDICE D’ATTRACTIVITé DES RéGIONS EN 2019

0 Provence-Alpes-Côte d'Azur

Nouvelle-Aquitaine Figure 2. Emplois dans les filiales étrangères - Top 20 Normandie

Île-de-France (Parsi region) 4,000,000 Hauts-de-France

3,500,000 Grand Est

Dom-Tom 3,000,000 Centre-Val de Loire

Bretagne (Brittany) 2,500,000

Bourgogne-Franche-Comté

2,000,000 Auvergne-Rhône-Alpes

0 0.5 1 1.5 2 2.5 1,500,000

1,000,000 Figure 24. CORRéLATION ENTRE ATTRACTIVITé SECTORIELLE eT SPéCIALISATION RéGIONALE

500,000

Specialization of investment projects 0 e 3 anc Italy r Spain F Poland Austria Ireland omania Sweden Norway Finland Slovakia Belgium Bulgaria Germany R Hungary Portugal Denmark

Netherlands

Czech Republic United Kingdom* 2.5 Figure 3. contribution des entreprises sous controle étranger (En %)

Revenues 20.6

1.5 Staff costs 17.5

Value added 17 1

Investment 14.4 0.5

Employees 12.8

0 Businesses 0.6 0 0.5 1 1.5 2 2.5 3 3.5 % Specialization of employment 0 5 10 15 20 25

Figure 4. répartition des entreprises sous controle étranger par pays d’origine

600,000

500,000

400,000

300,000

200,000

100,000

Italy Japan Spain Israel China, Finland Belgium Sweden Denmark Portugal Romania Hungary Germany* Switzerland Netherlands Luxembourg United States* United Kingdom

excluding Hong Kong

Figure 5. Répartition de l'emploi sectoriel par type de contrôle des entreprises

Foreign multinational firms BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

French multinational firms

Other French businesses INNOVATION PRAISED BY FOREIGN These investments were carried out above all by digital % INVESTORS businesses (18% of investment0 projects)10 and20 healthcare30 40 50 60 70 80 90 100 businesses (18%). In 2020, 146 investments were recorded in R&D and Figure 7. contribution des filiales etrangeres aux dépenses de r&d par secteur (Top 10) engineering, accounting for 12% of all investment The United States was the leading investor in R&D decisions. These investments spurred on businesses: activities in France in 2020, responsible for one-quarter Figure 8. Part des chercheurs salariés de filiales etrangères par branche d'activité économique (top 10) beyond their impact on growth, R&D operations supply of these investments, followed by Germany (16%), with a % highly qualified jobs that generate high value added and rise in investment decisions of 44%. It should be noted % are generally more stable than manufacturing jobs. that Siemens70 carried out many expansions of R&D 70 centers in fields60 as varied as medical research, rail and 60 These activities were responsible for 8% of jobs energy. 50 generated in France by international investment, with 50 investments in R&D activities translating into the setting 40 40 up of new research or engineering centers (38%) and 30 expanded existing activities (56%). 20 30

10 20 FRANCE:0 AN INNOVATIVE ECONOMY 10

France’s attractiveness in the field of innovation has 0 BREAKDOWN BY TOP 15 SECTORS OF JOBS IN R&D Fig. 7 been confirmed by the results of our survey on France’s IN FRANCE (2020) industries Figure 13. Composition sectorielle des emplois de R&D en France Figure 17 TRANSACTIONS FINANCIERESManufacture DES INVESTISSEURS ETRANGERS EN FRANCE

economic image with foreignManufacture of businesses setOther activities upManufacture ofor of basic metals paper, printing machinery n.e.c. otherwise in France. Chemicals industry Other manufacturing Manufacture of food, Manufacture of wood, irradiation equipment Manufacture of En nombre d’opérationscomputers, peripherals Manufacture of medical beverages and tobacco paper, printing equipment n.e.c. % Chemicals industry communication equipment beverages, tobacco Innovation is recognized as a driving force behind Manufacture of food, Electronic components, cards, Manufacture of wood, 1 800 irradiation equipment 35 France’s attractiveness as an investment location: computers, peripheralsManufacture of medical Pharmaceutical industry Manufacture of machinery, Manufacture of basic metals communication equipment

Electronic components, cards, the quality of R&D personnel, the proximity to French Other manufacturing industries 30 innovation clusters and the potential for research partnerships1 500 with French academia are all structural 25 advantages of the French economy, which supports the trendSur chacun for R&D des critèresinvestments suivants, in la France. France est-elle selon vous tout à fait, plutôt, plutôt pas ou pas du tout attractive pour les investissements de R&D? 20 Total Total 1 200 Unattractive Attractive 15 Quality of R&D personnel 8 4 1 7 63 25 88 Proximity to markets and other business operations 19 22 17 68 11 79 10 900 Proximity to French innovation clusters 26 3 2 24 63 8 72 1 378 5 Potential for research partnerships with French academia 26 5 4 22 55 15 701 242 Investment opportunities 0 through acquisitions600 of French firms 30 4 3 27945 58 9 67 775 Amount of state aid for R&D 65028 5 3 26 48 19 67

IT services Agri-food

Équipements and devices Metalworking Consulting and Machinery and Access to finance 36 4 2 34 51 9 60 Pharmaceuticals Chimie, plasturgie business services Transport, storage service providers Telecoms, internet 300 railway equipmentMedical equipment médico-chirurgicaux and biotechnologies Energy and recycling Automotive industry 199 Aerospace, naval and Parfums, cosmétiques Building, construction Electronic components Electrical/IT equipment mechanical equipment Cost of R&D operations 39 4 4 35 51 7 58

190 215 145 201 203 147 Figure Share14. Composition of R&D sectorielle jobs bydes projetssector de R&Din France en France Don't know Very unattractive 0 Estimez-vous que les industries françaises sont performantes sur les points suivants ? En %Share of jobs from this sector in R&D En % Total Total Fairly unattractive2014 2015Doesn't performFairly well attractive2016 2017 Very2018 attractivePerforms well2019 60 40 Key: 31% of jobs in R&D were made by businesses in the IT services sector; Quality of employees 15 1 2 13 71 13 85 25% of jobs created in this sector were made in R&D. En valeur (Md¤) 35 Source:Automatization Business of production France tools - Kantar23 Attractiveness1 1 22 of France65 survey 11 76 Source:50 Business France, Annual Report 2020 80 30 Quality of management 29 1 3 26 62 8 70

40 Move upmarket of products 29 2 1 28 60 9 69 25

Digitization of industrial processes 33 2 4 29 61 4 65 30 20 Digitization of60 information processing 34 1 4 30 60 5 65 15 14 20 Promotion of French expertise 40 1 3 38 21 48 12 59 10 56 Partnerships with innovative startups 40 4 6 34 54 3 57 10 5 Digitization of relationships with subcontractors 51 2 5 47 45 2 33 47 40 38 0 0 20

Équipements Automobiles mécaniques électroniques et ferroviaires Médicaments et informatiques 5 Chimie, plasturgie Énergie, recyclage Conseil, ingénierie

médico-chirurgicaux Aéronautiques, navals Logiciels et prestations 20 Équipements électriques, Machines et équipements

biotechnologies appliquées

23 50 26 45 26 22

Figure 15. Répartition des projets par type d'investissment en 2019 0

2014 2015 2016 2017 2018 2019

3 % 3 % Figure 18 Pays d'origine des transactions financières en France (2018-2019) 1 %

En nombre d’opérations

42 % 52 % États-Unis 596

Royaume-Uni 577

Suisse

Allemagne

Luxembourg

Norvège

Belgique

Pays-Bas

Figure 16. NOMBRE ET VALEUR DES TRANSACTIONS FINANCIERES EN FRANCE Canada

En nombre d’opérations En % Suède 60 40 Italie

Hong Kong 35 50 Japon 30 Espagne 40 25 Singapour

30 20 Autres pays

0 100 200 300 400 500 600 700 800 15 20 10 En valeur (Md¤)

10 35,0 5 États-Unis

Royaume-Uni 6,5 0 0 Suisse 3,7

Allemagne 2,5

Équipements Automobiles mécaniques électroniques et ferroviaires Médicaments et informatiques Espagne Chimie, plasturgie Énergie, recyclage Conseil, ingénierie

médico-chirurgicaux Aéronautiques, navals Logiciels et prestations Équipements électriques, Machines et équipements Pays-Bas

biotechnologies appliquées Canada

Luxembourg

Japon

Figure 16. NOMBRE ET VALEUR DES TRANSACTIONS FINANCIERES EN FRANCE Danemark Irlande En nombre d’opérations Belgique 5 000 Norvège

Italie 4 000 135 Chine 73 Autres pays 3 000 277 175 332 0 5 10 15 20 25 30 35

2 000 284 Figure 19. Répartition sectorielle des transactions financières en France en 2019 1 029 1 766 2 274 2 038 3 017 2 933 1 % 1 000 2 % 807 825 604 831 897 648 2 %2 % 0 2 % 16 % 2014 2015 2016 2017 2018 2019 2 % 3 % 1 % En valeur (Md¤) 3 % 180 4 % 14 % 150 19 4 % 8 6 120 5 % 24 53

90 73 5 % 12 11 % 38 96

60 18 5 % 43 5 % 17 7 % 7 % 30 38 62 37 86 59 31

2014 2015 2016 2017 2018 2019 Sous-total « Pas attractive » En % Sous-total « Attractive »

Automatisation de l'outil de production 14 2 13 50 36 86

Digitalisation des process industriels 15 1 13 53 33 85

Qualité des salariés 15 2 13 47 38 85

Montée en gamme des produits 15 2 13 44 40 84

Qualité du management 16 1 15 44 40 84

Promotion des savoir-faire français 18 2 17 43 39 82

Partenariats avec des startups innovantes 20 1 18 44 36 80 3 . REGIONAL ATTRACTIVENESS IN 2020

The location of innovation activities follows a different segments on the same site. Due to the resulting logic to industrial activities, with it being largely synergies, businesses tend to co-locate their production determined by factors such as market access, units and innovation centers within the same region. agglomeration forces and reserves of qualified workforce. This translates into many public and private research These co-localization effects have an influence on where laboratories setting up in major cities, with 51% of R&D R&D centers and engineering units are set up: one-third investments in 2020 being located in cities with more of R&D and engineering projects are located in industrial than 500,000 inhabitants. regions. A recent study by France Stratégie using Business France data has demonstrated that the Multinational firms are one of the leading drivers of probability of setting up an innovation center is 74% if the globalization, notably by their location choices, which firm already has a production site in the region. have expanded over national borders in the last few decades. The geographical fragmentation of the value chain has been accompanied by locating several

BREAKDOWN OF R&D INVESTMENTS BY AGGLOMERATION SIZE (2014-2020)

2020 2014 - 2020 SIZE OF AGGLOMERATIONS PROJECTS JOBS PROJECTS JOBS < 50,000 inhabitants 11% 6% 11% 7% 50,000 to 200,000 inhabitants 18% 13% 18% 20% 200,000 to 500,000 inhabitants 21% 19% 19% 19% 500,000 to 1,000,000 inhabitants 15% 17% 14% 16% > 1,000,000 inhabitants 36% 45% 37% 38%

Source: Business France, Annual Reports 2014-2020

BIOTECHNOLOGIES IT SERVICES CATALENT, UNITED STATES E R I C S S O N , SWEDEN

The world’s leading provider of advanced drug delivery, The Ericsson group has announced the opening of its first development and manufacturing technologies, biologics, R&D center in France, in Massy (Ile de France/Paris cell therapies, genetics and consumer health products, region), within the Paris-Saclay innovation cluster. This US-based Catalent announced an investment of R&D center, dedicated to 5G software and security, aims €27 million in 2020 to transform its Limoges site in to accelerate 5G dynamics in Europe and will be able to Nouvelle Aquitaine. Catalent is modernizing its site in accommodate up to 300 researchers and engineers. order to create a European center of excellence and plans to strengthen its presence in the region with the recruitment of 80 employees by 2025. The site is working on biological formulations for clinical trials.

57 Chap 2 Figure 1. Evolution des projets et emplois associés Figure 8. Contribution par pays à l’évolution des emplois

En % 1,800 45,000 12

39,542 1,600 40,000

10 34,567 1,400 33,682 33,474 35,000

30,108 30,302 8 1,200 30,000 26,535

1,000 25,000 6

800 20,000

4 600 15,000

1,014 962 1,117 1,297 1,323 1,468 1,215 2 400 10,000

200 5,000 0

g as

Figure 2 Figure 9. Contribution par fonction à la hausse des projets

Point de vente

% Production / Réalisation

8% 14% Logistique 2% Total R&D, ingénierie, design

positive Services aux particuliers 90% Centre de décision 76% Services aux entreprises

En % -3 -2 -1 0 1 2 3 4 5 6 7 8 Figure 3

Figure 10. Contribution par fonction à la hausse des emplois %

13% Point de vente 2% Production / Réalisation 45% Total attractive Services aux entreprises 41% 85% Centre de décision

R&D, ingénierie, design

Logistique

Figure 4. Répartition des projets selon les emplois créés ou maintenus en 2020 Services aux particuliers

En % 0 2 4 6 8 10 12% 1% 33% Size of projects Less than 10 20% 10 to 19 Figure 5. Composition sectorielle des emplois dans la production en France 20 to 49 50 to 249 % % 250 and over 20 100

33% 16 80

12 60 Figure 5

Répartition des projets par type d'investissement 8 40 Expansion following takeover Expansion following buyout 1% 2% 4 20

0 0

Takeover 3% Creation Agri-food equipment equipment Expansion and devices Metalworking

Aerospace/naval/railway

Figure 11. Composition sectorielle des projets de production en France

En % En % 25 100

20 80 Figure 6. Répartition des projets en fonction de la taille de la société mère en 2020

15 60

Large corporates 10 40

SMEs 5 20

Mid-size companies 0 0

Micro- enterprises Machines et Automobiles Équipements électroniques Ameublement Aéronautiques, BTP, matériaux Médicaments et % de construction Agroalimentaire BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT INChimie, FRANCE plasturgie Verre, céramique, Énergie, recyclage

Figure 12. Composition sectorielle des emplois dans la production en France

Figure 7. Répartition des projets par région d’origine en 2020

Proximité de clusters français 15 2 14 50 35 85 North 20% Europe America Possibilités de collaboration avec des équipes PROJECTS64% IN A VARIETY18 1 17 44 38 82 de recherche académiques françaises

OF SECTORSNiveau des aides publiques de la R&D 20 3 17 47 34 81

Accès au financement 20 3 18 52 28 80

Coût des activités de R&D 22 2 20 46 33 78

Opportunités d'investissement par acquisition d'entreprises françaises 22 5 18 47 31 78

Création ThereCreation were 649 investment decisions in the manufacturing Fig. 8 MAIN CONTRIBUTIONS BY SECTOR TO CHANGES IN sector in 2020, accounting for 53% of all inward investment EMPLOYMENT Principales contributions par secteur à l'évolution des emplois projects. Service-sector companies were responsible for Extension 47%Expansion of projects, with 566 investment decisions. Pharmaceuticals and biotechnologies Medical equipment and devices Energy and recycling Reprise Takeover Telecoms, internet service providers INDUSTRIAL SECTORS PROVED MORE Consulting and business services RESILIENT TO THE CRISIS Electronic components Expansion following Glass, ceramics, minerals, wood, paper Rachat-extension In 2020,buyout the leading sectors for investment were Media, publishing wholesale and retail (12%), software and IT services (11%), Machinery and mechanical equipment Perfumes, cosmetics Expansionconsulting/engineering following and business services (8%), Agri-food Reprise-extension takeover healthcare (8%), energy/recycling (5%), machinery and Metalworking mechanical equipment (5%), as well as agri-food (5%).% Electrical/IT equipment 0 10 20 30 40 50 60 Financial services and insurance Sport and leisure The sectors that contributed the most to the growth in Textiles and accessories jobs were healthcare, energy/recycling, telecoms, Wholesale and retail consulting/engineering and business services, as well as Chemicals, plastics electronic components. Transport, storage Hospitality, tourism and restaurants IT services Among the most affected sectors since the beginning of Aerospace, naval and railway equipment % the health crisis were machinery/mechanical equipment -5 -4 -3 -2 -1 0 1 2 3 (-36%), aerospace (-56%), software and IT services (-26%), transport/storage (-38%) and hospitality and restaurants (-57%). Source: Business France, Annual Report 2020

58 3 . REGIONAL ATTRACTIVENESS IN 2020

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR (2020)

PROJECTS JOBS

BUSINESS SECTOR 2020 2019 SHARE CHANGE 2020 2019 SHARE CHANGE

Energy and recycling 62 55 5% 13% 1,474 885 4% 67%

Machinery and mechanical equipment 61 95 5% -36% 1,847 1,784 5% 4%

Agri-food 57 73 5% -22% 1,014 1,146 3% -12%

Automotive industry 52 54 4% -4% 2,536 2,594 7% -2%

Pharmaceuticals and biotechnologies 51 28 4% 82% 1,494 501 4% 198%

Medical equipment and devices 50 44 4% 14% 1,423 726 4% 96%

Textiles and accessories 50 75 4% -33% 1,299 1,843 4% -30%

Electrical/IT equipment 50 50 4% 0% 729 1,053 2% -31%

Building, construction 46 40 4% 15% 842 920 2% -8%

Chemicals, plastics 42 60 3% -30% 808 1,395 2% -42%

Household goods 33 28 3% 18% 625 619 2% 1%

Glass, ceramics, minerals, wood, paper 27 34 2% -21% 1,004 809 3% 24%

Metalworking 23 29 2% -21% 1,243 1,498 4% -17%

Aerospace, naval and railway equipment 14 32 1% -56% 1,387 3,167 4% -56%

Electronic components 14 19 1% -26% 506 269 1% 88%

Perfumes, cosmetics 12 18 1% -33% 180 296 1% -39%

Consumer electronics 5 13 0.4% -62% 279 230 1% 21%

Manufacturing sub-total 649 747 53% -13% 18,690 19,735 54% -5%

Wholesale and retail 148 154 12% -4% 3,895 4,458 11% -13%

IT services 138 186 11% -26% 3,347 4,984 10% -33%

Consulting and business services 100 117 8% -15% 4,467 4,207 13% 6%

Transport, storage 54 87 4% -38% 1,409 2,149 4% -34%

Financial services and insurance 42 43 3% -2% 927 1,283 3% -28%

Sport and leisure 31 34 3% -9% 245 616 1% -60%

Hospitality, tourism and restaurants 19 44 2% -57% 502 1,557 1% -68%

Other services 12 22 1% -45% 165 162 0.5% 2%

Media, publishing 8 10 1% -20% 289 132 1% 119%

Telecoms, internet service providers 6 6 0.5% 0% 530 115 2% 361%

Education and training 5 9 0.4% -44% 67 57 0.2% 18%

Real estate 3 9 0.3% -67% 34 87 0.1% -61%

Services sub-total 566 721 47% -21% 15,877 19,807 46% -20%

Total 1,215 1,468 100% -17% 34,567 39,542 100% -13%

Source: Business France, Annual Report 2020

59 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

MEDICAL EXPERTISE IS PERCEIVED AS ONE OF FRANCE’S KEY STRENGTHS COMPARED WITH ITS EUROPEAN NEIGHBORS HEALTHCARE PROCTER & GAMBLE, UNITED STATES In the context of the current health crisis, economic decision-makers have highlighted that medical expertise is perceived as one of France’s key strengths compared This large American group is a global leader in the with its European neighbors. Investments in the manufacture of hygiene, health, well-being and healthcare sector covering the “pharmaceuticals and maintenance products, with an extensive presence in biotechnologies” and “medical/surgical equipment” France and Europe and a portfolio of high value-added sectors increased by 40%. The jobs generated by these brands. With a team of 2,000 employees, P&G continues investments were multiplied by 2.3. to grow in France by strengthening its sales forces and support functions at its headquarters in Asnières-sur- This growth is mainly due to an increase in expansion Seine (Ile de France/Paris region), which recruited 100 investments in existing production sites. The Swiss employees in 2020. At the same time, P&G succeeded in biotech Regen Lab, which specializes in gene therapy, is maintaining 300 jobs at its production site in Blois strengthening its presence in Ile de France/Paris region, (Centre-Val de Loire) by investing €10 million. The group where 69 people will be hired by 2022. The Danish also invested €160 million over the 2019-2021 period to pharmaceutical company LEO Pharma has announced an modernize and increase the production capacity of investment of ¤39 million at its site in Vernouillet (Centre- Val de Loire) for the production of syringes, which will single-dose detergents produced at its Amiens site (Hauts create 80 jobs. The Swedish group Recipharm is de France). These investments have been accompanied increasing its production capacity for the construction of by the recruitment of around 100 employees in Amiens a vial production facility and a line for pre-filled syringes, over the past three years. for a total estimated amount of ¤60 million and the creation of 100 jobs.

Almost two-thirds of investments in the health sector are located in Ile de France/Paris region, Auvergne-Rhône- Alpes, Grand Est and Nouvelle Aquitaine. PHARMACEUTICALS CORDENPHARMA, LUXEMBOURG

This Luxembourg-based group is investing in a global center of excellence for fine pharmaceuticals and chemicals at its Chenôve site in Bourgogne-Franche- Comté. The aim is to be able to continuously produce, in a cost and quality competitive manner, certain pharmaceutical intermediates and active ingredients. These two cost and quality elements contribute to the opening in or relocation to France of production from other continents. This investment of €2 million will allow CordenPharma to access calls for tenders that are currently inaccessible.

HEALTHCARE R E G E N L A B , SWITZERLAND

Created in 2003, this Swiss biotech specializes in the development of new cell therapies. The firm currently has 130 employees and has chosen Les Ulis in the Ile de France/Paris region to strengthen its production activities. Staff recruitment is underway, with 69 people set to be hired by 2022.

60 3 . REGIONAL ATTRACTIVENESS IN 2020

MAKING FRANCE THE MOST INNOVATIVE AND SOVEREIGN EUROPEAN NATION FOR HEALTHCARE

The healthcare industry is one of the most innovative This French approach is also in-keeping with European sectors, with significant investments in R&D. France, which practice, as illustrated by the announcement at the end of already has a strong export industry, must seek January of the launch of a call for expressions of interest international competition to attract investment, funding within the framework of the future Healthcare important and talent in the healthcare sector. The pandemic has project of common European interest, which will aim to underscored the crucial issue of national sovereignty in develop and modernize the European Union’s industrial healthcare matters and the manufacture of healthcare capacities in healthcare. Moreover, this will be one of the products. It has also revealed to everyone the extent of priorities of the French Presidency of the Council of the EU current scientific and medical progress, the challenges of in 2022. innovation in healthcare, prevention and diagnosis. We have identified more than462 foreign investment It is in light of the current circumstances that the projects over the past seven years in the medical device, President of the Republic has set an ambitious target for pharmaceutical and biotechnology sectors. Their the Strategic Council of Healthcare Industries (CSIS) 2021: numbers are growing: from around 50 in 2014, they rose to to make France a leading nation in terms of industry and 75 in 2018 and now number around 100. France’s innovation in healthcare. attractiveness in the healthcare sector is doing well. To establish a genuine and ambitious “healthcare- In terms of prospecting and offers received, we have innovation 2030” detailed strategy, five priorities have identified: been laid out: • An increase in healthcare projects of +31% in 2020 • Ensuring excellent interdisciplinary basic research, versus 2019. capable of fueling continuous innovation, but also • Strong growth in expansion projects (+93%). ensuring continuity from basic research to clinical research.. • Doubling of production projects. • Fostering innovation: France is home to many new • A total of 37 projects identified by Business France and innovative new companies. Establishment of its Project Steering Committee (COSPE) in 2020 are mechanisms to secure these healthcare innovations, directly related to the Covid-19 crisis. improve access to funding and promote the development of venture capital. • Improving market access for innovative products in order to make them available earlier to patients and strengthening the integration of these innovations into the care pathway. • Supporting the industrialization of products in the extension of the relocation targets of production sites pursued within the framework of “Relaunch France”, to have sufficient pharmaceutical production capacities and to allow innovations to be developed and produced in France. • Developing and bringing out the initial and lifelong training necessary to have the skills to achieve the proposed goals.

61 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

HEALTHCARE NOVO NORDISK, DENMARK

Novo Nordisk has chosen its site in Chartres (Centre-Val de Loire region) as the precursor of the Circular for Zero program, which comprises making the group a carbon THE ECOLOGICAL TRANSITION: A LEVER neutral business. Novo Nordisk invested €164 million FOR FRANCE’S ATTRACTIVENESS between 2016-2020 to expand the site, create a biomass plant and sign a contract with a green electricity supplier, For 89% of investors abroad, the ecological transition is a thereby reducing its CO2 emissions by 8,500 tonnes per key part of France’s attractiveness. year for this site alone. Thanks to this program, the firm won the “Choose France” award on December 10, 2020 The first part of the recovery plan will draw on ¤30 billion in the “Ecological Transition” category. to finance the ecological transition in all its forms. It will be based on the implementation of energy renovation measures for buildings, the decarbonization of industrial sites, the development of green infrastructure and mobility, but also green energies and technologies, as well as measures to promote biodiversity, the agricultural transition and the fight against land artificialization. ENERGY The government’s ambition to make the ecological BORALEX, CANADA transition one of the levers of economic recovery seems to be bearing fruit. In fact, creation and expansion Boralex develops, builds and operates renewable energy projects in the energy and recycling sector increased by production sites in Canada, France, the United Kingdom 13% to reach 62 projects. This translates into an almost doubling of associated jobs. and the United States. As the leading independent player in onshore wind power in France, the firm commissioned Among the main job-creating projects is the Dutch four new wind power sites in France in 2020. This brings startup Nowos, which is opening a battery repair and Boralex’s installed capacity in France to 1,037.7 MW and reconditioning factory in Amplepuis (Auvergne-Rhône- positions the business as the leading independent Alpes), resulting in the hiring of 25 people by the end of producer of onshore wind power in France. Several new 2021 and a hundred over three years. openings have been announced for 2021, allowing Boralex to take one more step towards its strategic Investments in the energy and recycling sector account objective of 2,800 MW by 2023. for 47% of production activities and 16% of R&D activities, while 61% of these investments are in new establishments. Germany, the leading investor in the energy and recycling sector, accounts for one-quarter of investments in this sector. Auvergne-Rhône-Alpes (19%), Hauts de France (15%) and Occitanie (13%) are the main host regions in this sector. ENERGY/RECYCLING N O W O S, NETHERLANDS

Nowos is a Dutch startup that has been active since 2019. It offers a repair and reconditioning service to extend the lifespan of lithium-ion batteries for use with electric gyropods, bicycles and scooters. Driven by immediate success, the new startup very quickly took steps to set up a new office and a factory in France. In November 2020, the project developed further, with the opening of a site in Amplepuis, in Auvergne-Rhône-Alpes. They hope to hire 25 people by the end of 2021 and around 100 over three years.

62 3 . REGIONAL ATTRACTIVENESS IN 2020

63 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

ATTRACTIVENESS DIFFERENTIATED BY REGIONAL SPECIALIZATIONS

The sector-specific index of employment in France’s regions highlights the differences in investment attractiveness of: • Centre-Val de Loire, Grand Est, Provence-Alpes-Côte d’Azur and Nouvelle Aquitaine in the healthcare sector. • Bretagne (Brittany), Occitanie, Normandie and Hauts de France in agri-food. • Normandie, Grand Est, Bourgogne-Franche-Comté, Centre-Val de Loire, Hauts de France in chemicals and plastics. • Ile de France (Paris region) and Pays de la Loire in consulting, engineering and business services. • Grand Est, Bourgogne-Franche-Comté, Hauts de France and Auvergne-Rhône-Alpes in the automotive industry. • Overseas territories, Bretagne (Brittany), Pays de la Loire, Occitanie and Normandie in energy and recycling. • Pays de la Loire, Grand Est, Centre-Val de Loire, Bourgogne-Franche-Comté and Auvergne-Rhône-Alpes in machinery and mechanical equipment. • Occitanie, Pays de la Loire, Centre-Val de Loire in aerospace, naval and railway equipment. • Ile de France (Paris region) in software and IT services.

64 3 . REGIONAL ATTRACTIVENESS IN 2020

Fig. 9 BREAKDOWN OF SECTOR-BASED ATTRACTIVENESS OF REGIONS (2014-2020)

AGRI-FOOD CHEMICALS, PLASTICS CONSULTING AND BUSINESS SERVICES

AUTOMOTIVE INDUSTRY ENERGY AND RECYCLING MACHINERY AND MECHANICAL EQUIPMENT

65 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

AEROSPACE, NAVAL AND RAILWAY EQUIPMENT IT SERVICES HEALTHCARE

BREAKDOWN OF MANUFACTURING PROJECTS (2014-2020) The location of foreign investment projects depends on the regional characteristics of employment areas and their < 0.9 sector-based specialization. Using sector-specific characteristics of employment areas, 0.9 - 1.1 the specialization index helps us highlight the specialization of the workforce in the Auvergne-Rhône- 1.1 - 1.5 Alpes, Centre-Val de Loire and Normandie regions in the pharmaceutical industry; the Occitanie and Bourgogne- 1.5 - 1.9 Franche-Comté regions in the transport equipment industry; the Bretagne (Brittany), Pays de la Loire and > 1.9 Nouvelle Aquitaine regions in the agri-food industry; the Grand Est region in the machinery and mechanical Source: Business France, Annual Report 2020 equipment sector.

66 Chap 3 Figure 1. Filiales étrangères en Europe. Top 20 des pays d'accueil Figure 16. CORRELATION ENTRE L’INVESTISSEMENT ET LA TAILLE ECONOMIQUE DU MARCHE

30,000 € million 800,000

700,000 y = 2051,8x - 16487 25,000 R² = 0.9114 600,000

500,000 20,000 400,000 Regional GDP 300,000

15,000 200,000

100,000

0 10,000 0 50 100 150 200 250 300 350 400 450 Number of investment projects

5,000 Figure 18. INDICE D’ATTRACTIVITé DES RéGIONS EN 2019

0 Provence-Alpes-Côte d'Azur

Nouvelle-Aquitaine Figure 2. Emplois dans les filiales étrangères - Top 20 Normandie 3 . REGIONAL ATTRACTIVENESS IN 2020

Île-de-France (Parsi region) 4,000,000 Hauts-de-France

3,500,000 Grand Est

Dom-Tom 3,000,000 Centre-Val de Loire

Bretagne (Brittany) 2,500,000

Bourgogne-Franche-Comté

2,000,000 Auvergne-Rhône-Alpes

0 0.5 1 1.5 2 2.5 1,500,000

1,000,000 Figure 24. CORRéLATIONCORRELATION ENTRE ATTRACTIVITé BETWEEN SECTORIELLE eT SECTOR-BASED SPéCIALISATION RéGIONALE METHODOLOGY Fig.10 ATTRACTIVENESS AND REGIONAL SPECIALIZATION 500,000 SECTOR-SPECIFIC INDEX OF EMPLOYMENT IN FRANCE’S REGIONS Specialization of investment projects 0

e The sector-specific index of employment in France’s 3 anc Italy r Spain F Poland Austria Ireland omania Sweden Norway Finland Slovakia Belgium Bulgaria Germany regionsR estimatesHungary the specializationPortugal Denmark of France’s

Netherlands

Czech Republic United Kingdom* regions in a given sector, based on employment in the sector of each region as defined by INSEE in 2016. 2.5 Figure 3. contribution des entreprises sous controle étranger (En %) The sector-specific index is the result of the

relationship between the proportion of sector-based 2

Revenues employment in a given region and the20.6 proportion in this sector nationwide. If the index is higher than one, 1.5 Staff costs the share of regional employment17.5 in the sector is superior to the share of employment in the sector in the nationwide total. Value added 17 1 This index allows us to identify business sectors in Investment which each region specializes14.4 in terms of salaried 0.5 employment. Employees 12.8

0 Businesses 0.6 0 0.5 1 1.5 2 2.5 3 3.5 % Specialization of employment 0 5 10 15 20 25 We looked to verify the hypothesis according to which the sector-based attractiveness of different regions reflects Source: Business France calculations their different characteristics and specializations. The Figure 4. répartition figuredes entreprises opposite sous controle presents étranger par pays the d’origine existing correlation between sector-based attractiveness of regions, or the location An examination by sector reveals that location strategy is choices of multinational firms, and their specialization in strongly correlated for all sectors considered, except for terms of employment area. the transport/storage, financial services and textile 600,000 industry sectors. The setting up of banking and financial The results show a positive relationship between these establishments in particular leads to a strong polarization two variables: the choice of location of businesses and the of activities in Ile de France (Paris region). 500,000 sector-based attractiveness of regions is a fair reflection of the regional specialization of jobs.

400,000

300,000

200,000

100,000

0 67

Italy Japan Spain Israel China, Finland Belgium Sweden Denmark Portugal Romania Hungary Germany* Switzerland Netherlands Luxembourg United States* United Kingdom

excluding Hong Kong

Figure 5. Répartition de l'emploi sectoriel par type de contrôle des entreprises

Foreign multinational firms

French multinational firms

Other French businesses

% 0 10 20 30 40 50 60 70 80 90 100

Figure 7. contribution des filiales etrangeres aux dépenses de r&d par secteur (Top 10)

Figure 8. Part des chercheurs salariés de filiales etrangères par branche d'activité économique (top 10)

% % 70 70 60 60 50 50 40 40 30

20 30

10 20

0 10

industries Manufacture

Manufacture of Other activities Manufacture of of basic metals paper, printing machinery n.e.c. Chemicals industry

Manufacture of machinery, Manufacture of basic metals communication equipment

Electronic components, cards, Other manufacturing industries

Sur chacun des critères suivants, la France est-elle selon vous tout à fait, plutôt, plutôt pas ou pas du tout attractive pour les investissements de R&D?

Total Total Unattractive Attractive Quality of R&D personnel 8 4 1 7 63 25 88 Proximity to markets and other business operations 19 22 17 68 11 79

Amount of state aid for R&D 28 5 3 26 48 19 67

Access to finance 36 4 2 34 51 9 60

Cost of R&D operations 39 4 4 35 51 7 58

Estimez-vous que les industries françaises sont performantes sur les points suivants ? Total Total Doesn't perform well Performs well Quality of employees 15 1 2 13 71 13 85

Automatization of production tools 23 1 1 22 65 11 76

Quality of management 29 1 3 26 62 8 70

Move upmarket of products 29 2 1 28 60 9 69

Digitization of industrial processes 33 2 4 29 61 4 65

Digitization of information processing 34 1 4 30 60 5 65

Promotion of French expertise 40 1 3 38 48 12 59

Partnerships with innovative startups 40 4 6 34 54 3 57 Digitization of relationships with subcontractors 51 2 5 47 45 2 47 4 The contribution of foreign subsidiaries to the French economy BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

FOREIGN FIRMS PRESENT IN FRANCE HAVE A POSITIVE IMPACT ON VALUE CREATION AND EMPLOYMENT

Chap 3 Figure 1. Filiales étrangères en Europe. Top 20 des pays d'accueil Figure 16. CORRELATION ENTRE L’INVESTISSEMENT ET LA TAILLE ECONOMIQUE DU MARCHE As foreign multinationals benefit from expertise within Fig. 1 TOP 20 HOST COUNTRIES OF FOREIGN SUBSIDIARIES their parent companies, synergies between subsidiaries, IN EUROPE (2018) global economies of scale, and differences in factor 30,000 prices, they are more efficient and productive than € million domestic companies. 800,000 700,000 y = 2051,8x - 16487 According to the latest available estimates from 25,000 R² = 0.9114 Eurostat, France was the fifth leading host country in 600,000

Europe of subsidiaries belonging to foreign groups in 500,000 2018, with more than 15,859 subsidiaries recorded, after 20,000 Romania (27,716), Germany (26,828), the United 400,000 Regional GDP Kingdom (24,097) and the Czech Republic (17,423). 300,000

Foreign multinational firms set up in France employ 15,000 200,000 2,228,023 people. France is the third-leading European country for job creation by foreign subsidiaries after the 100,000 United Kingdom (3,728,859) and Germany (3,696,960). 0 10,000 0 50 100 150 200 250 300 350 400 450 OVERVIEW OF FOREIGN-OWNED Number of investment projects BUSINESSES 5,000 Foreign multinationals are set up throughout France and Figure 18. INDICE D’ATTRACTIVITé DES RéGIONS EN 2019 contribute to economic growth in the regions that host them. 0 Provence-Alpes-Côte d'Azur

Italy Spain France Latvia At the end of 2018, foreign firms in France accounted for Austria Poland Croatia Sweden Norway Romania Hungary Bulgaria Slovenia Portugal Germany Denmark Pays de la Loire Netherlands less than one percent of all businesses in France but Luxembourg Czech Republic 1 United Kingdom* generated 21% of all revenues in the French economy, Occitanie had 13% of all the workforce in France, and generated Source: Eurostat, 2021 30% of all export revenues. * Data for 2017 Nouvelle-Aquitaine Figure 2. Emplois dans les filiales étrangères - Top 20 Normandie

Île-de-France (Parsi region) 4,000,000 1 Revenues are defined as total post-tax revenues generated by businesses from third parties in the ordinary course of business. They correspond to Hauts-de-France the sum total of all sales of goods, manufactured products, services and secondary products. 3,500,000 Grand Est

Dom-Tom 70 3,000,000 Centre-Val de Loire

Bretagne (Brittany) 2,500,000

Bourgogne-Franche-Comté

2,000,000 Auvergne-Rhône-Alpes

0 0.5 1 1.5 2 2.5 1,500,000

1,000,000 Figure 24. CORRéLATION ENTRE ATTRACTIVITé SECTORIELLE eT SPéCIALISATION RéGIONALE

500,000

Specialization of investment projects 0 e 3 anc Italy r Spain F Poland Austria Ireland omania Sweden Norway Finland Slovakia Belgium Bulgaria Germany R Hungary Portugal Denmark

Netherlands

Czech Republic United Kingdom* 2.5 Figure 3. contribution des entreprises sous controle étranger (En %)

Revenues 20.6

1.5 Staff costs 17.5

Value added 17 1

Investment 14.4 0.5

Employees 12.8

0 Businesses 0.6 0 0.5 1 1.5 2 2.5 3 3.5 % Specialization of employment 0 5 10 15 20 25

Figure 4. répartition des entreprises sous controle étranger par pays d’origine

600,000

500,000

400,000

300,000

200,000

100,000

Italy Japan Spain Israel China, Finland Belgium Sweden Denmark Portugal Romania Hungary Germany* Switzerland Netherlands Luxembourg United States* United Kingdom

excluding Hong Kong

Figure 5. Répartition de l'emploi sectoriel par type de contrôle des entreprises

Foreign multinational firms

French multinational firms

Other French businesses

% 0 10 20 30 40 50 60 70 80 90 100

Figure 7. contribution des filiales etrangeres aux dépenses de r&d par secteur (Top 10)

Figure 8. Part des chercheurs salariés de filiales etrangères par branche d'activité économique (top 10)

% % 70 70 60 60 50 50 40 40 30

20 30

10 20

0 10

industries Manufacture

Manufacture of Other activities Manufacture of of basic metals paper, printing machinery n.e.c. Chemicals industry

Manufacture of machinery, Manufacture of basic metals communication equipment

Electronic components, cards, Other manufacturing industries

Sur chacun des critères suivants, la France est-elle selon vous tout à fait, plutôt, plutôt pas ou pas du tout attractive pour les investissements de R&D?

Total Total Unattractive Attractive Quality of R&D personnel 8 4 1 7 63 25 88 Proximity to markets and other business operations 19 22 17 68 11 79

Amount of state aid for R&D 28 5 3 26 48 19 67

Access to finance 36 4 2 34 51 9 60

Cost of R&D operations 39 4 4 35 51 7 58

Estimez-vous que les industries françaises sont performantes sur les points suivants ? Total Total Doesn't perform well Performs well Quality of employees 15 1 2 13 71 13 85

Automatization of production tools 23 1 1 22 65 11 76

Quality of management 29 1 3 26 62 8 70

Move upmarket of products 29 2 1 28 60 9 69

Digitization of industrial processes 33 2 4 29 61 4 65

Digitization of information processing 34 1 4 30 60 5 65

Promotion of French expertise 40 1 3 38 48 12 59

Partnerships with innovative startups 40 4 6 34 54 3 57 Digitization of relationships with subcontractors 51 2 5 47 45 2 47 Chap 3 Figure 1. Filiales étrangères en Europe. Top 20 des pays d'accueil Figure 16. CORRELATION ENTRE L’INVESTISSEMENT ET LA TAILLE ECONOMIQUE DU MARCHE

30,000 € million 800,000

Chap 3 Figure 1. Filiales étrangères 700,000en Europe. Top 20 des pays d'accueil Figure 16. CORRELATION ENTRE L’INVESTISSEMENT ET LA TAILLE ECONOMIQUE DU MARCHE y = 2051,8x - 16487 25,000 R² = 0.9114 600,000 30,000 500,000 € million 20,000 800,000 400,000

Regional GDP 700,000 y = 2051,8x - 16487 25,000 300,000 R² = 0.9114 600,000 15,000 200,000 500,000 100,000 20,000 400,000

0 Regional GDP 10,000 0 50 100 150 200 250 300 350 400 450 300,000 Number of investment projects 15,000 200,000

5,000 4. THE CONTRIBUTION OF FOREIGN SUBSIDIARIES TO THE FRENCH ECONOMY 100,000

Figure 18. INDICE D’ATTRACTIVITé DES RéGIONS EN 2019 0 10,000 0 50 100 150 200 250 300 350 400 450 Number of investment projects 0 Provence-Alpes-Côte d'Azur

Italy Spain France Latvia Austria Poland Croatia Sweden Norway Romania Hungary Bulgaria Slovenia Portugal Germany Denmark 5,000 Pays de la Loire Netherlands Luxembourg Czech Republic Figure 18. INDICE D’ATTRACTIVITé DES RéGIONS EN 2019 United Kingdom* Occitanie

0 Nouvelle-Aquitaine Fig. 2 TOP 20 COUNTRIES FOR JOBS Provence-Alpes-Côte d'Azur Figure 2. Emplois dans les filiales étrangères - Top 20 Italy Spain Latvia AT FOREIGN SUBSIDIARIES (2018) France Normandie Austria Poland Croatia Sweden Norway Romania Hungary Bulgaria Slovenia Portugal Germany Denmark Pays de la Loire Netherlands Luxembourg Czech Republic United Kingdom*Île-de-France (Parsi region) Occitanie 4,000,000 Hauts-de-France Nouvelle-Aquitaine 3,500,000 Figure 2. EmploisMETHODOLOGY dans les filiales étrangèGrandres Est - Top 20 Normandie The findingsDom-Tom in this chapter are based upon European Île-de-France (Parsi region) 3,000,000 4,000,000 Union inwardCentre-Val de foreign Loire affiliates statistics (FATS), while Hauts-de-France estimations come from two sources: the French Bretagne (Brittany) 2,500,000 3,500,000 National Institute for Statistics and Economic Studies Grand Est Bourgogne-Franche-Comté (INSEE) Annual Business Statistics Program (ESANE), Dom-Tom 2,000,000 3,000,000 whichAuvergne-Rhône-Alpes provides structural business statistics obtained Centre-Val de Loire from administrative and survey data; and INSEE’s 0 0.5 1 1.5 2 2.5 1,500,000 Bretagne (Brittany) 2,500,000 Financial Links Between Enterprises Survey (LiFi),

which identifies groups of companies operating in Bourgogne-Franche-Comté 1,000,000 2,000,000 France and establishes their size and nationality. Figure 24. CORRéLATION ENTRE ATTRACTIVITé SECTORIELLE eT SPéCIALISATION RéGIONALE Auvergne-Rhône-Alpes

500,000 0 0.5 1 1.5 2 2.5 1,500,000

Specialization of investment projects 0 1,000,000 e 3 anc Italy r Spain Figure 24. CORRéLATION ENTRE ATTRACTIVITé SECTORIELLE eT SPéCIALISATION RéGIONALE F Poland Austria Ireland omania Sweden Norway Finland Slovakia Belgium Bulgaria Germany R Hungary Portugal Denmark

Netherlands

Czech Republic 500,000 United Kingdom* 2.5 Specialization of investment projects Source:Figure 3. co Eurostat,ntribution des 2021 entreprises sous controle étranger (En %) 0 * Data for 2017 e 3 anc Italy r Spain F Poland Austria Ireland omania Sweden Norway Finland Slovakia Belgium Bulgaria Germany 2 R Hungary Portugal Denmark

Netherlands Revenues Czech Republic 20.6 United Kingdom* 2.5 Fig. 3 CONTRIBUTION OF FOREIGN-OWNED Figure 3. contribution des 1.5BUSINESSES entreprises sous con tTOrole étTHEranger FRENCH(En %) ECONOMY (2018) (%) The establishmentStaff costs in France of foreign-owned17.5 multinationals corresponds in most cases to mid-size companies, which account for 45% of employment at 2 Value added 17 1 foreign-owned businesses. Manufacturing industry Revenues 20.6 accounts for the most jobs for foreign-owned firms with 37%, Investmentahead of the wholesale/retail trade14.4 with 30%. 1.5 Staff costs 0.5 17.5 In 2018, foreign multinationals employed 2.2 million Employees 12.8 people as employees and self-employed staff in France. Value added 17 1 Most of these foreign-owned businesses were from fellow 0 EuropeanBusinesses countries,0.6 which accounted for more than 0 0.5 1 1.5 2 2.5 3 3.5 Investment 14.4 % Specialization of employment two-thirds of jobs. American multinationals were the 0.5 leading source0 of employment,5 10 with 532,80015 jobs,20 25 followed by Germany (324,400), Switzerland (277,000), Employees 12.8 the Netherlands (193,000) and the United Kingdom 0 (182,300). Figure 4. répartition des entreprises sous controle étranger par pays d’origine Businesses 0.6 0 0.5 1 1.5 2 2.5 3 3.5 % Specialization of employment 0 5 10 15 20 25

600,000

Source: Eurostat, 2021 Figure 4. répartition des entreprises sous controle étranger par pays d’origine

500,000

600,000

400,000

500,000

300,000 71

400,000

200,000

300,000

100,000

200,000

Italy Japan Spain Israel China, Finland Belgium Sweden Denmark Portugal Romania Hungary 100,000 Germany* Switzerland Netherlands Luxembourg United States* United Kingdom

excluding Hong Kong

0 Figure 5. Répartition de l'emploi sectoriel par type de contrôle des entreprises Italy Japan Spain Israel China, Finland Belgium Sweden Denmark Portugal Romania Hungary Germany* Switzerland Netherlands Luxembourg United States* United Kingdom

Foreign excluding Hong Kong multinational firms Figure 5. Répartition de l'emploi sectoriel par type de contrôle des entreprises

Foreign French multinational multinational firms firms

French Other multinational French firms businesses

% 0 10 20 30 40 50 60 70 80 90 100

Other Figure 7. contribution des filiales etrangeres aux dépenses de r&d par secteur (Top 10) French businesses Figure 8. Part des chercheurs salariés de filiales etrangères par branche d'activité économique (top 10) % 0 10 20 30 40 50 60 70 80 90 100 % % 70 70 Figure 7. contribution des filiales etrangeres aux dépenses de r&d par secteur (Top 10) 60 60 50 Figure 8. Part des chercheurs salariés de filiales etrangères par branche d'activité économique (top 10) 50 40 % 40 % 30 70 70 20 30 60 60 10 20 50 50 0 40 10 40 30 0 30 industries 20 Manufacture

Manufacture of Other activities Manufacture of of basic metals paper, printing machinery n.e.c. 20 Chemicals industry 10

Other manufacturing Manufacture of food, Manufacture of wood, irradiation equipment Manufacture of computers, peripherals Manufacture of medical beverages and tobacco 0 paper, printing equipment n.e.c. 10 Chemicals industry communication equipment beverages, tobacco Manufacture of food, Electronic components, cards, Manufacture of wood, irradiation equipment computers, peripheralsManufacture of medical Pharmaceutical industry 0 Manufacture of machinery, Manufacture of basic metals communication equipment

Electronic components, cards, Other manufacturing industries industries Manufacture

Manufacture of Other activities Manufacture of of basic metals paper, printing machinery n.e.c. Chemicals industry

Other manufacturing Manufacture of food, Manufacture of wood, irradiation equipment Manufacture of computers, peripherals Manufacture of medical beverages and tobacco paper, printing equipment n.e.c. Chemicals industry communication equipment beverages, tobacco Manufacture of food, Electronic components, cards, Manufacture of wood, Sur chacun des critères suivants, la France est-elle selon vous tout à fait, plutôt, plutôt pas ou pas du tout attractive pour les investissements de R&D? irradiation equipment computers, peripheralsManufacture of medical Pharmaceutical industry

Manufacture of machinery, Manufacture of basic metals communication equipment

Electronic components, cards, Total Total Other manufacturing industries Unattractive Attractive Quality of R&D personnel 8 4 1 7 63 25 88 Proximity to markets and 19 22 17 68 11 79 other business operations Sur chacun des critères suivants, la France est-elle selon vous tout à fait, plutôt, plutôt pas ou pas du tout attractive pour les investissements de R&D? Proximity to French innovation clusters 26 3 2 24 63 8 72 Total Total Potential for research partnerships Unattractive Attractive with French academia 26 5 4 22 55 15 70 Quality of R&D personnel 8 4 1 7 63 25 88 Investment opportunities through acquisitions of French firms 30 4 3 27 58 9 67 Proximity to markets and other business operations 19 22 17 68 11 79 Amount of state aid for R&D 28 5 3 26 48 19 67 Proximity to French innovation clusters 26 3 2 24 63 8 72 Access to finance 36 4 2 34 51 9 60 Potential for research partnerships with French academia 26 5 4 22 55 15 70 Cost of R&D operations 39 4 4 35 51 7 58 Investment opportunities through acquisitions of French firms 30 4 3 27 58 9 67

Amount of state aid for R&D 28 5 3 Estimez-vous26 48 que les19 industries67 françaises sont performantes sur les points suivants ?

Total Total Access to finance 36 4 2 34 51 9 60 Doesn't perform well Performs well Quality of employees 15 1 2 13 71 13 85 Cost of R&D operations 39 4 4 35 51 7 58

Automatization of production tools 23 1 1 22 65 11 76 Estimez-vous que les industries françaises sont performantes sur les points suivants ? Quality of management 29 1 3 26 62 8 70 Total Total Doesn't perform well Performs well Move upmarket of products 29 2 1 28 60 9 69 Quality of employees 15 1 2 13 71 13 85 Digitization of industrial processes 33 2 4 29 61 4 65 Automatization of production tools 23 1 1 22 65 11 76 Digitization of information processing 34 1 4 30 60 5 65 Quality of management 29 1 3 26 62 8 70 Promotion of French expertise 40 1 3 38 48 12 59 Move upmarket of products 29 2 1 28 60 9 69 Partnerships with innovative startups 40 4 6 34 54 3 57 Digitization of industrial processes 33 2 4 29 61 4 65 Digitization of relationships with subcontractors 51 2 5 47 45 2 47 Digitization of information processing 34 1 4 30 60 5 65

Promotion of French expertise 40 1 3 38 48 12 59

30,000 € million 800,000

700,000 y = 2051,8x - 16487 25,000 R² = 0.9114 600,000

500,000 20,000 400,000 Regional GDP 300,000

15,000 200,000

100,000

0 10,000 0 50 100 150 200 250 300 350 400 450 Number of investment projects

5,000 Figure 18. INDICE D’ATTRACTIVITé DES RéGIONS EN 2019

0 Provence-Alpes-Côte d'Azur

Nouvelle-Aquitaine Figure 2. Emplois dans les filiales étrangères - Top 20 Normandie

Île-de-France (Parsi region) 4,000,000 Hauts-de-France

3,500,000 Grand Est

Dom-Tom 3,000,000 Centre-Val de Loire

Bretagne (Brittany) 2,500,000

Bourgogne-Franche-Comté

2,000,000 Auvergne-Rhône-Alpes

0 0.5 1 1.5 2 2.5 1,500,000

1,000,000 Figure 24. CORRéLATION ENTRE ATTRACTIVITé SECTORIELLE eT SPéCIALISATION RéGIONALE

500,000

Specialization of investment projects 0 e 3 anc Italy r Spain F Poland Austria Ireland omania Sweden Norway Finland Slovakia Belgium Bulgaria Germany R Hungary Portugal Denmark

Netherlands

Czech Republic United Kingdom* 2.5 Figure 3. contribution des entreprises sous controle étranger (En %)

Revenues 20.6

1.5 Staff costs 17.5

Value added 17 1 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

Investment 14.4 0.5

Employees 12.8

0 Businesses 0.6 0 0.5 1 1.5 2 2.5 3 3.5 % Specialization of employment 0 5 10 15 20 25

BREAKDOWN BY SOURCE COUNTRY OF JOBS The relative importance of foreign-owned businesses is Fig. 4 AT FOREIGN-OWNED BUSINESSES IN FRANCE (2018) Figure 4. répartition des entreprises sous controle étranger par pays d’origine most noticeable in the manufacturing industry, where they are responsible for one-quarter (23%) of the sector’s value added and one-third of employment.

600,000 The manufacturing industry accounts for 32% of jobs under foreign ownership in France, versus 26% of jobs of French multinational firms and 12% of jobs of other French businesses. 500,000 With 24% of jobs, the business services sector is the second largest sector.

400,000

FOREIGN SUBSIDIARIES ACTIVELY

300,000 CONTRIBUTING TO R&D In 2018, business enterprise R&D expenditure (BERD) by businesses controlled by foreign multinationals in 200,000 France was up 3% to a total of ¤7.7 billion, amounting to 23% of all BERD in France.

Three sectors accounted for more than one-third of 100,000 overall expenditure by foreign-owned businesses: electronic components (¤1.1 billion, amounting to 14% of foreign BERD expenditure), the automotive industry (¤934 million, 12%) and the software and IT services 0 sector (¤635 million, 8%).

Italy Japan Spain Israel China, Finland Belgium Sweden Denmark Portugal Romania Hungary Germany* The contribution to R&D expenditure from foreign- Switzerland Netherlands Luxembourg United States* United Kingdom owned subsidiaries was particularly evident in sectors such as electronic components (69% of total BERD excluding Hong Kong expenditure), manufacture of medical irradiation *Data for 2017 equipment (62%), manufacture of basic metals (60%) FiguSource:re 5. Répartition Eurostat, de l'emploi2021 sectoriel par type de contrôle des entreprises Key: 532,756 jobs in France were at businesses and manufacture of machinery and equipment (50%). controlled by American multinationals.

Foreign multinational firms

French multinational firms

Other French businesses

% 0 10 20 30 40 50 60 70 80 90 100

Figure 7. contribution des filiales etrangeres aux dépenses de r&d par secteur (Top 10)

Figure 8. Part des chercheurs salariés de filiales etrangères par branche d'activité économique (top 10) 72

% % 70 70 60 60 50 50 40 40 30

20 30

10 20

0 10

industries Manufacture

Manufacture of Other activities Manufacture of of basic metals paper, printing machinery n.e.c. Chemicals industry

Manufacture of machinery, Manufacture of basic metals communication equipment

Electronic components, cards, Other manufacturing industries

Sur chacun des critères suivants, la France est-elle selon vous tout à fait, plutôt, plutôt pas ou pas du tout attractive pour les investissements de R&D?

Total Total Unattractive Attractive Quality of R&D personnel 8 4 1 7 63 25 88 Proximity to markets and other business operations 19 22 17 68 11 79

Amount of state aid for R&D 28 5 3 26 48 19 67

Access to finance 36 4 2 34 51 9 60

Cost of R&D operations 39 4 4 35 51 7 58

Estimez-vous que les industries françaises sont performantes sur les points suivants ? Total Total Doesn't perform well Performs well Quality of employees 15 1 2 13 71 13 85

Automatization of production tools 23 1 1 22 65 11 76

Quality of management 29 1 3 26 62 8 70

Move upmarket of products 29 2 1 28 60 9 69

Digitization of industrial processes 33 2 4 29 61 4 65

Digitization of information processing 34 1 4 30 60 5 65

Promotion of French expertise 40 1 3 38 48 12 59

30,000 € million 800,000

700,000 y = 2051,8x - 16487 25,000 R² = 0.9114 600,000

500,000 Chap 3 20,000Figure 1. Filiales étrangères en Europe. Top 20 des pays d'accueil Figure 16. CORRELATION ENTRE L’INVESTISSEMENT ET LA TAILLE ECONOMIQUE DU MARCHE 400,000 Regional GDP Chap 3 Figure 1. Filiales étrangères en Europe. Top 20 des pays d'accueil 300,000Figure 16. CORRELATION ENTRE L’INVESTISSEMENT ET LA TAILLE ECONOMIQUE DU MARCHE 30,000 million 15,000 200,000 € 30,000 800,000 100,000 € million 700,000 800,000 y = 2051,8x - 16487 25,000 0 R² = 0.9114 10,000 600,0000 700,000 50 100 150 200 250 300 350 400 450 y = 2051,8x - 16487 25,000 Number of investment projects R² = 0.9114 500,000600,000 20,000 400,000500,000 5,000 Regional GDP 20,000 Figure 18. INDICE300,000400,000 D’ATTRACTIVITé DES RéGIONS EN 2019 Regional GDP 15,000 200,000300,000 0 Provence-Alpes-Côte d'Azur 15,000 100,000200,000 Italy Spain France Latvia Austria Poland Croatia Sweden Norway Romania Hungary Bulgaria Slovenia Portugal Germany Denmark Pays100,000 de0 la Loire Netherlands Luxembourg 10,000 Czech Republic 0 50 100 150 200 250 300 350 400 450 United Kingdom* Occitanie0 Number of investment projects 10,000 0 50 100 150 200 250 300 350 400 450 Nouvelle-Aquitaine Number of investment projects 5,000 Figure 2. Emplois dans les filiales étrangères - Top 20 Figure 18. NormandieINDICE D’ATTRACTIVITé DES RéGIONS EN 2019 5,000 Île-de-FranceFigu (Parsire 18. region) INDICE D’ATTRACTIVITé DES RéGIONS EN 2019 4,000,0000 Provence-Alpes-CôteHauts-de-France d'Azur

Italy Spain France Latvia 0 Austria Poland Croatia Sweden Norway Romania Hungary Bulgaria Slovenia Portugal 3,500,000 Germany Denmark Provence-Alpes-CôteGrandPays de Est la Loire d'Azur Netherlands Luxembourg Czech Republic Italy Spain France Latvia United Kingdom* Austria Poland Croatia Sweden Norway Romania Hungary Bulgaria Slovenia Portugal Germany Denmark Dom-TomPaysOccitanie de la Loire Netherlands Luxembourg Czech Republic 3,000,000 United Kingdom* Centre-ValNouvelle-Aquitaine de Loire Occitanie

Figure 2. Emplois dans les filiales étrangères - Top 20 Bretagne (Brittany) 2,500,000 Nouvelle-AquitaineNormandie Figure 2. Emplois dans les filiales étrangères - Top 20 Bourgogne-Franche-ComtéÎle-de-France (Parsi region)Normandie 2,000,0004,000,000 Auvergne-Rhône-AlpesÎle-de-FranceHauts-de-France (Parsi region) 4,000,000 Hauts-de-FranceGrand0 Est 0.5 1 1.5 2 2.5 1,500,0003,500,000

3,500,000 Dom-TomGrand Est 3,000,000 1,000,000 Centre-Val de Dom-TomLoire 3,000,000 Figure 24. CORRéLATION ENTRE ATTRACTIVITé SECTORIELLE eT SPéCIALISATION RéGIONALE BretagneCentre-Val (Brittany) de Loire 500,0002,500,000 Bourgogne-Franche-ComtéBretagne (Brittany) 2,500,000 2,000,000 Specialization of investment projects 0 Auvergne-Rhône-AlpesBourgogne-Franche-Comté e 3 2,000,000 anc Italy r Spain F Poland Austria Ireland Finland Auvergne-Rhône-Alpes 0.5 omania Sweden Norway 0 1 1.5 2 2.5 Slovakia Belgium Bulgaria 1,500,000 Germany R Hungary Portugal Denmark Netherlands

Czech Republic United Kingdom* 0 0.5 1 1.5 2 2.5 1,500,000 2.5 1,000,000 Figure 3. contribution des entreprises sous controle étranger (En %) Figure 24. CORRéLATION ENTRE ATTRACTIVITé SECTORIELLE eT SPéCIALISATION RéGIONALE 1,000,000 500,000 2 Figure 24. CORRéLATION ENTRE ATTRACTIVITé SECTORIELLE eT SPéCIALISATION RéGIONALE

Revenues500,000 20.6 Specialization of investment projects 0

e 1.5 3 Specialization of investment projects Staff costs anc Italy r Spain 17.5 F 0 Poland Austria Ireland omania Sweden Norway Finland Slovakia Belgium Bulgaria Germany R Hungary Portugal Denmark e Netherlands 3 anc Italy Czech Republic r Spain F United Kingdom* Poland Austria Ireland omania Sweden Norway Finland Slovakia Belgium Bulgaria Value added Germany R Hungary Portugal17 Denmark 1 Netherlands 2.5 Czech Republic United Kingdom* Figure 3. contribution des entreprises sous controle étranger (En %) 2.5 Investment 14.4 Figure 3. contribution des entreprises sous controle étranger (En %) 0.5 2

Revenues 20.6 Employees 12.8 2

Revenues 0 20.6 1.5 Staff costs Businesses 0.6 17.5 0 0.5 1 1.5 2 2.5 3 3.5 % 1.5 Specialization of employment Staff0 costs 5 10 15 20 17.5 25 Value added 17 1

Value added 17 1 Investment 14.4 Figure 4. répartition des entreprises sous controle étranger par pays d’origine 0.5 Investment 14.4 Employees 12.8 0.5

600,000 Employees 12.8 0 Businesses 0.6 0 0.5 1 1.5 2 2.5 3 3.5 % 0 Specialization of employment Businesses0 0.6 5 10 15 20 25 0 0.5 1 1.5 2 2.5 3 3.5 500,000 % Specialization of employment 0 5 10 15 20 25

Figure 4. répartition des entreprises sous controle étranger par pays d’origine 400,000 Figure 4. répartition des entreprises sous controle étranger par pays d’origine

600,000 300,000 600,000

500,000 200,000 500,000 4. THE CONTRIBUTION OF FOREIGN SUBSIDIARIES TO THE FRENCH ECONOMY 400,000 100,000 400,000

300,000 0 300,000 Italy Japan Spain Israel China, Finland Belgium Sweden Denmark Portugal Romania Hungary Germany* Switzerland Netherlands Luxembourg 200,000United States* United Kingdom

200,000 excluding Hong Kong

Figure 5.100,000 Répartition de l'emploi sectoriel par type de contrôle des entreprises Fig. 5 BREAKDOWN OF SECTOR-BASED EMPLOYMENT BY METHOD OF GOVERNANCE OF BUSINESSES (2017) (%) 100,000

0 Foreign multinational

Italy firms Spain Israel 0 Japan China, Finland Belgium Sweden Denmark Portugal Romania Hungary Germany* Switzerland Netherlands Luxembourg United States* Italy United Kingdom Japan Spain Israel China, Finland Belgium Sweden Denmark Portugal Romania Hungary Germany* Switzerland Netherlands Luxembourg excluding Hong Kong United States* United Kingdom

Figure 5. Répartition Frenchde l'emploi sectoriel par type de contrôle des entreprises excluding Hong Kong multinational firms Figure 5. Répartition de l'emploi sectoriel par type de contrôle des entreprises

Foreign multinational firmsForeign Othermultinational French firms businesses

% French0 10 20 30 40 50 60 70 80 90 100 multinational firms Industry French Wholesale/retail Business services Information, communication Transport, storage Figure 7. contributionmultinational des filiales etrangeres aux dépenses de r&d par secteur (Top 10) Accommodation,firms food services Construction Other Figure 8. Part des chercheurs salariés de filiales etrangères par branche d'activité économique (top 10) NB: Industry brings together here the sectors B to E, and not manufacturing industry (sector C) alone. Others brings together the sectors L, M and S95. Interim % employees are divided into interim companies, in the business services sector. Key: In 2017,Other industry employed 32.3% of the workforce of businesses controlled by foreign% multinationals. French 70 Field: France, commercial sector businesses (non-agricultural, non-financial); workforce employed, including non-salaried employees and intermediaries. businesses 70 Source: INSEE,Other Esane, Lifi 2017 60 French businesses 60 % 50 0 10 20 30 40 50 60 70 80 90 100 50 40 % 0 10 20 30 40 40 50 60 70 80 90 100 30 Figure 7. contribution des filiales etrangeres aux dépenses de r&d par secteur (Top 10) 30 20 FiguFig.re 7. c6ontribution CONTRIBUTION des filiales etrangeres OF aux dépensesFOREIGN-OWNED de r&d par secteur (Top SUBSIDIARIES 10) Figure 8Fig.. Part des 7 che PROPORTIONrcheurs salariés de filiales OF etrangè RESEARCHERSres par branche d'activité WORKING économique (top 10) TO R&D SPENDING BY SECTOR (TOP 10) (2018) AT FOREIGN SUBSIDIARIES BY SECTOR (TOP 10) (2018) 10 20 % Figure 8. Part des chercheurs salariés de filiales etrangères par branche d'activité économique (top 10) 0 10 % 70 % 70 0 % 60 70 60 70 industries 50 Manufacture Manufacture of Other activities Manufacture of 60 of basic metals paper, printing machinery n.e.c. 50 60 Chemicals industry

40 Other manufacturing Manufacture of food, Manufacture of wood, 50 irradiation equipment Manufacture of computers, peripherals Manufacture of medical beverages and tobacco 40 paper, printing 50 equipment n.e.c. Chemicals industry 30 communication equipment beverages, tobacco Manufacture of food, Electronic components, cards,40 Manufacture of wood, irradiation equipment 30computers,40 peripheralsManufacture of medical Pharmaceutical industry 20 Manufacture of machinery, 30 Manufacture of basic metals communication equipment Electronic components, cards, 10 20 Other manufacturing industries 20 30 0 10 10 20

0 0 10 Sur chacun des critères suivants, la France est-elle selon vous tout à fait, plutôt, plutôt pas ou pas du tout attractive pour les investissements de R&D?

industries Manufacture 0

Manufacture of Other activities Manufacture of of basic metals paper, printing Total machinery n.e.c. Total Chemicals industry Unattractive industries Attractive Manufacture Other manufacturing Manufacture of food, Manufacture of wood, irradiation equipment Manufacture of computers, peripherals Manufacture of medical Manufacture of Other activities Manufacture of beverages and tobacco paper, printing of basic metals paper, printing Quality of R&D personnel 8 4 1 7 63 25 88 equipment n.e.c. machinery n.e.c. Chemicals industry Chemicals industry communication equipment beverages, tobacco Manufacture of food, Electronic components, cards, Other manufacturing Manufacture of food, Manufacture of wood, Manufacture of wood, irradiation equipment Proximity to markets and irradiation equipment computers, peripheralsManufacture of medical Manufacture of Pharmaceutical industry computers, peripherals Manufacture of medical beverages and tobacco paper, printing 19 22 17 68 11 79 equipment n.e.c. Manufacture of machinery, Chemicals industry other business operations Manufacture of basic metals communication equipment communication equipment beverages, tobacco Electronic components, cards, Manufacture of food, Electronic components, cards, Manufacture of wood, irradiation equipment Other manufacturing industries 26 3 2 24 63 8 72 computers, peripheralsManufacture of medical Pharmaceutical industry Proximity to French innovation clusters Manufacture of machinery, Manufacture of basic metals communication equipment

Electronic components, cards, Potential for research partnerships Other manufacturing industries with French academia 26 5 4 22 55 15 70 Source: French Ministry for Higher Education, Research and Innovation Source: French Ministry for Higher Education, Research and Innovation Investment opportunities through acquisitionsSur chacun of French(2021) firms des critères30 suivants,4 3 27 la France58 est-elle9 selon vous67 tout à fait, plutôt, plutôt pas(2021) ou pas du tout attractive pour les investissements de R&D?

Amount of stateSur aid for chacun R&D des critères28 Total 5 suivants,3 26 la France48 est-elle19 selon vous67 Total tout à fait, plutôt, plutôt pas ou pas du tout attractive pour les investissements de R&D? Unattractive Attractive AccessQuality to finance of R&D personnel 36 84 2Total 34 4 1 7 51 63 9 25 60 88 Total Unattractive Attractive Proximity to markets and Cost ofother R&DQuality businessoperations of operationsR&D personnel 39 194 4 8 35 22 17 4 1 7 51 68 763 11 2558 79 88 73 Proximity to markets and Proximityother tobusiness French operationsinnovation clusters 26 19 3 2 2422 17 63 68 8 11 72 79 Estimez-vous que les industries françaises sont performantes sur les points suivants ? Potential for research partnerships with ProximityFrench academia to French innovation clustersTotal 26 26 5 4 3 222 24 55 63 15 8 Total 70 72 Doesn't perform well Performs well InvestmentPotential opportunities for research partnerships Qualitythrough of employeeswith acquisitions French academia of French firms 15 30 26 4 3 2715 24 13 22 587155 9 1513 85 67 70 Investment opportunities AutomatizationAmountthrough of of state production acquisitions aid for R&Dtools of French firms23 28 30 5 13 1 4223 2627 48 6558 19 11 9 76 67 67

QualityAccess of managementAmount to finance of state aid for R&D 29 36 284 21 3 534326 26 51 6248 9 819 70 60 67

Move upmarketCost Accessof R&D of tooperations products finance 29 39 364 42 14 2 352834 5160 51 7 99 69 58 60

DigitizationCost of industrial of R&D operations processes 33 39 2 44 4 29 35 61 51 4 7 65 58 Estimez-vous que les industries françaises sont performantes sur les points suivants ? Digitization of information processing 34 Total 1 4 30 60 5 65 Total Doesn't perform well Performs well Estimez-vous que les industries françaises sont performantes sur les points suivants ? PromotionQuality of ofFrench employees expertise 40 15Total1 3 38 1 2 13 48 7112 1359 85 Total Doesn't perform well Performs well PartnershipsAutomatizationQuality with innovativeof employees of production startups tools 40 23 4156 34 1 1 22 1 2 13 54 65 3 71 11 57 13 76 85 Digitization of relationships with subcontractorsQualityAutomatization of management of production tools 51 2295 23 47 1 3 1261 22 45 622 65 8 1147 70 76

MoveQuality upmarket of management of products 29 29 2 1 1 3 28 26 60 62 9 8 69 70

DigitizationMove upmarket of industrial of products processes 33 29 2 4 2291 28 61 60 4 9 65 69

DigitizationDigitization of information of industrial processing processes 34 33 1 4 2 4 30 29 60 61 5 4 65 65

PromotionDigitization of French of information expertise processing 40 34 1 3 1 438 30 48 60 12 5 59 65

PartnershipsPromotion with of innovativeFrench expertise startups 40 40 4 6 1 3 34 38 54 48 3 12 57 59 Digitization of relationships with Partnershipssubcontractors with innovative startups 51 402 5 4 647 34 45 54 2 3 47 57 Digitization of relationships with subcontractors 51 2 5 47 45 2 47 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

OVER TWO-THIRDS OF FOREIGN R&D BREAKDOWN BY SOURCE COUNTRY INVESTMENT IS EUROPEAN OF BUSINESS ENTERPRISE R&D EXPENDITURE AND RESEARCHERS European businesses have carried out 68% of all foreign IN FRANCE R&D investment in France. Germany (¤1.4 billion) and Switzerland (¤1.3 billion) were the main European contributors to business enterprise R&D expenditure in BERD (€M) RESEARCHERS France. European Union (EU-27) 3,989 22,890 American businesses are the main investors in R&D including: activities: R&D expenditure by American businesses Austria 33 289 increased 6% to reach ¤1.7 billion. In 2018, the United States was responsible for nearly one-quarter of all R&D Belgium 351 2,001 investments made by foreign businesses in the country. Denmark 39 197

Finland 323 2,508 FOREIGN BUSINESSES IN FRANCE EMPLOY Germany 1,376 6,283 NEARLY ONE-QUARTER OF ALL Italy 110 523

RESEARCHERS Luxembourg 253 1,214

Netherlands 598 4,248 At the last count, there were 42,050 researchers (full- time equivalent) working for companies controlled by Spain 112 759 foreign multinationals, amounting to 22% of all Sweden 315 1,628 researchers at all businesses in France. The number of United Kingdom 380 2,587 researchers at subsidiaries of foreign groups increased by 5%. Norway 14 60 Switzerland 1,260 5,947 The share of researchers employed by foreign-owned subsidiaries reflects how R&D operations are organized in Total Europe, excluding France 5,263 28,896 different sectors: 65% of researchers at businesses in the Canada 59 344 electronic components sector in France work for foreign subsidiaries (5,996 researchers), as do 62% of Japan 321 1,740 researchers in the medical irradiation equipment sector United States 1,709 9,407 (423 researchers), 58% in the basic metals industry, and Rest of world 338 1,662 47% in the manufacture of machinery and equipment. TOTAL (FOREIGN SUBSIDIARIES) 7,691 42,050

The subsidiaries of multinationals have the advantage of TOTAL BUSINESSES 33,947 188,817 belonging to a global group and enjoy not only the knowledge transferred by their parent companies and Source: French Ministry for Higher Education, Research and Innovation exchanges between subsidiaries, but also differences in (2021) production factor costs, economies of scale at a global level and outsourcing.

Empirical studies have shown that multinational subsidiaries are more productive, more innovative and more competitive. Setting up foreign subsidiaries in France is part of globalization and helps integrate France in the global economy.

74 4. THE CONTRIBUTION OF FOREIGN SUBSIDIARIES TO THE FRENCH ECONOMY

THE OPEN NATURE OF THE FRENCH ECONOMY

More than 40,000 French businesses have established themselves in foreign countries, while more than 16,000 foreign companies have French operations in which they have made job-creating investments. The French economy is very open to foreign investment. Data from the French National Institute for Statistics and Economic Studies (INSEE) states that foreign subsidiaries: • Provide jobs for 13% of the workforce in France • Generate 21% of all revenues in France • Carry out 14% of investments by businesses • Generate 30% of exports 40.8% of the equity of companies listed on the CAC 40 is owned by foreign investors. (Banque de France, October 2020) French subsidiaries of foreign businesses employ more than 40,000 researchers and spend €7.7 billion on their internal R&D activity. Together, they account for 23% of all business enterprise R&D expenditure (BERD) in France. (French Ministry for Higher Education, Research and Innovation, 2021) Thirty-one of the world’s top 500 companies are French, while 27 are German and 22 are British. (Fortune Global 500, 2020)

75 5 Source country overviews BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

ASEAN+OCEANIA Eighteen new investment decisions were recorded in France from ASEAN member countries and Oceania1 in 2020, creating 253 jobs, up 33%.

TOP 3 BUSINESS ACTIVITIES: 18 PROJECTS Decision-making centers +20% PROJECTS (8 projects), IN 2020 Manufacturing (4), +33% creating or maintaining IN 2020 Business services (3) JOBS IN 2020 253 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Second largest 13 CREATION 229 recipient of 5 EXPANSION 24 investments from ASEAN+Oceania

KEY FIGURES THEY CHOSE FRANCE IN 2020 BREAKDOWN BY SOURCE COUNTRY Jinpao: Jinpao is an industrial Merci Marcel: The Merci Marcel group specializing in fine sheet group specializes in catering, Source Projects Jobs metal activities, boiler-making, with six establishments in country surface treatments and the Singapore meeting great Singapore 9 130 assembly of semi-finished success in the city-state. Merci €4.7 BILLION products. To accelerate its Marcel is a multi-destination Thailand 2 43 FDI stock in France development, the group has café-restaurant-bar catering Australia 3 60 Source: Banque de France2 chosen to establish itself at concept based on modern the heart of the French supply French cuisine in beautiful New Zealand 2 10 chain. After buying out ADB places, with varied designs Vietnam 2 10 and Lutec in 2019, Jinpao taking an eco-responsible completed the acquisition approach and which can Total 18 253 of Spem Aéro, a surface involve a concept store. The 700+ treatment unit in Bagnères- group has decided to expand businesses in France de-Bigorre (Occitanie region). in France by recruiting around Source: Orbis The group plans between €2 sixty people in the city of and €3 million of additional Bordeaux initially and then in investment over the next Paris by 2022. three to four years and aims to recruit around ten employees.

80,000+ EMPLOYEES Source: Orbis

1 ASEAN member countries: Burma, Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam. Oceania: Australia and New Zealand. 2 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €8 billion.

78 5. SOURCE COUNTRY OVERVIEWS

ASEAN+OCEANIA BUSINESSES IN FRANCE

There are around 700 subsidiaries More than 40% of projects and 40% of 10% of jobs from ASEAN+Oceania of businesses from ASEAN member jobs created in 2020 involved decision- investments. countries or Oceania established in making centers, and more than 20% France, where they employ more than manufacturing. Ile de France (Paris region) was 80,000 people. the leading regional recipient of Sector-wise, chemicals/plastics and IT investments from ASEAN+Oceania Eighteen new investments from services were the main recipients of in 2020 (33% of projects), ahead ASEAN member countries or Oceania investments from ASEAN+Oceania in of Auvergne-Rhône-Alpes (28%), were confirmed in France in 2020, up 2020, with three investments in each Bourgogne-Franche-Comté (11%) and 20%, creating 253 jobs, up 33%. of these sectors creating 17% and Grand Est (11%).

FRANCE’S POSITION IN EUROPE3 CHANGE IN PROJECTS AND JOBS

25 450 In 2020, France received nearly 422 20 350 one-quarter of investments from 15 20 250 253 250 ASEAN+Oceania in Europe (24% of 217 18 190 18 investments), making it the second 10 15 150 leading European recipient of 5 10 50 investment from ASEAN+Oceania, 0 0 after the United Kingdom (33% of 2016 2017 2018 2019 2020 projects) but ahead of Germany (12%). Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 8 109 44% 43%

Manufacturing 4 58 22% 23% Ile de France (6 projects) Auvergne-Rhône-Alpes (5 projects) R&D, engineering 3 34 17% 13% Grand Est (2 projects) Business services 3 52 17% 21%

Total 18 253 100% 100%

TOP 5 ASEAN+OCEANIA BUSINESSES BY EMPLOYMENT IN FRANCE Workforce Business in France RAMSAY HEALTH CARE LTD. TOP 5 BUSINESS SECTORS (Australia) 28,000 Healthcare, clinics and hospitals BY PROJECTS

DORCHESTER COLLECTION Number Share (Brunei) 900 - 1,000 Business sector Hospitality, tourism and restaurants Projects Jobs Projects Jobs

THAI UNION GROUP Chemicals, plastics 3 42 17% 17% (Thailand) + 800 Agri-food IT services 3 26 17% 10%

CAPITALAND LTD. (Singapore) 600 - 700 Textiles and accessories 2 4 11% 2% Other services Hospitality, tourism 1 50 6% 20% PTT GLOBAL CHEMICAL and restaurants (Thailand) 550 Chemicals, plastics Energy and recycling 1 36 6% 14%

Source: Orbis, Bureau Van Dijk

3 Business France, Europe Observatory Source: Annual Report 2020, Business France

79 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

AUSTRIA Thirteen Austrian investment projects were recorded in France in 2020, creating or maintaining more than 110 jobs. A significant number of financial projects (buyouts and safeguarding investments) completes these results, confirming that Austrian investment in France remained high in 2020.

ONE-QUARTER OF TOP 3 BUSINESS ACTIVITIES: 13 PROJECTS JOBS CREATED WERE ELECTRICAL/IT EQUIPMENT: IN MANUFACTURING Retail outlets (4 projects) #1 INVESTMENT SECTOR FOR IN 2020 ACTIVITIES Manufacturing (4) AUSTRIAN BUSINESSES creating or maintaining Decision-making centers (3) 112 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE 5 CREATION 56 #2 host country 7 EXPANSION 50 in Europe for 1 TAKEOVER 6 Austrian investments

KEY FIGURES THEY CHOSE FRANCE IN 2020

XXXLutz KG: Founded in 1945, Montana Holding GmbH: GoStudent GmbH: GoStudent the Austrian family business Montana is an investment is an Austrian startup created XXXLutz is one of the largest company specializing in the in 2016 specializing in online furniture retailers in the world, takeover and turnaround tutoring and connecting with revenues of €5.1 billion in of aircraft equipment students of all levels with €1.9 BILLION 2019. Since 2016, WM Holding manufacturers, particularly in teachers and tutors. Keen to FDI stock in France GmbH, the investment fund the fields of casting, mechanics become a major player in this Source: Banque de France1 belonging to XXXLutz, has and boiler-making. In early sector in France, GoStudent been cooperating with the 2020, the group acquired the has just opened an office in American investment fund French companies Alsenam Lyon (Auvergne-Rhône-Alpes CD&R, with whom it owns (140 employees), specializing region) and plans to recruit 20 the BUT stores. In October in fine sheet metal work and employees over the next three 2020, WM Holding acquired complex welded assemblies, years. 250+ the Conforama chain (9,000 and AEMI (80 employees), businesses in France employees and 162 stores), which specializes in precision Source: Orbis thus becoming the leader in machining of light alloys. The the French furniture market, two companies are based with a total of 460 stores, in Mérignac, in the Nouvelle nearly 15,000 employees and Aquitaine region. a 19% market share in France.

11,000+ EMPLOYEES Source: Orbis

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €1.4 billion.

80 5. SOURCE COUNTRY OVERVIEWS

AUSTRIAN BUSINESSES IN FRANCE

There are around 250 subsidiaries of 26 jobs). Decision-making centers Austrian investments were most often Austrian businesses established in accounted for the most jobs (three located in Auvergne-Rhône-Alpes France, where they employ more than projects; 40 jobs). (four projects; 41 jobs), Bourgogne- 11,000 people. Franche-Comté (four projects; 26 jobs) Eight out of 13 Austrian investments and Ile de France (Paris region) (three Thirteen new investments from Austria were concentrated in three sectors: projects; 26 jobs). were recorded in France in 2020, electrical/IT equipment (three projects; creating or maintaining 112 jobs. 25 jobs), machinery/mechanical equipment (two projects; 20 jobs) and Austrian businesses invested primarily energy/recycling (two projects; nine in retail outlets (four projects; 27 jobs) jobs). and in manufacturing (four projects;

FRANCE’S POSITION IN EUROPE2 BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY In 2020, France remained the second largest recipient of Austrian job- Number Share creating investment in Europe (29% Business activity Projects Jobs Projects Jobs of projects), after Germany (38%) but ahead of Poland (7%). Decision-making centers 3 40 23% 36% Retail outlets 4 27 31% 24%

Manufacturing 4 26 31% 23%

Business services 1 10 8% 9%

Consumer services 1 9 8% 8%

TOP 3 HOST Total 13 112 100% 100% REGIONS

TOP 5 BUSINESS SECTORS Auvergne-Rhône-Alpes (4 projects) BY PROJECTS Bourgogne-Franche-Comté (4 projects) Ile de France (3 projects) Number Share Business sector Projects Jobs Projects Jobs

Electrical/IT equipment 3 25 23% 22% TOP 5 AUSTRIAN BUSINESSES Machinery and mechanical BY EMPLOYMENT IN FRANCE equipment 2 20 15% 18%

Energy and recycling 2 9 15% 8%

Workforce Business Education and training 1 20 8% 18% in France IT services 1 10 8% 9% XXXLUTZ (WM holding) 15,000 Wholesale and retail

EGGER GROUP 900 Glass, ceramics, minerals, wood, paper

MAYR-MELNHOF KARTON AG 800 Glass, ceramics, minerals, wood, paper

WIENERBERGER AG 800 Building, construction

FIBA (BWT) 800 Household goods

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

81 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

BELGIUM Belgium had 54 investment projects in France in 2020, creating or maintaining more than 1,400 jobs, an annual rise of 36%.

TOP 3 BUSINESS ACTIVITIES: Decision-making centers (16 54 PROJECTS 36% RISE IN JOBS projects) 1 IN 5 JOBS CREATED IN 2020 CREATED Manufacturing (14) WERE IN THE CONSULTING AND creating or maintaining Business services (10) BUSINESS SERVICES SECTOR. 1,437 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE 19 CREATION 487 #1 European 32 EXPANSION 701 recipient 3 TAKEOVER 249 of Belgian investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

Labocreation: This cosmetic Galapagos: Specialized in Franson: This Flemish family- laboratory from the Belgian the development of drugs to owned SME, specializing in the city of Mons bet on France fight against inflammatory production and distribution in 2020 by acquiring the diseases, this biotech of high-end bovine feed, cosmetics activity of the company has been present undertook a feasibility study €53.7 BILLION French company Bailly- in France since 2005 thanks in 2018 for the construction of FDI stock in France Creat, its production facility to the takeover of the French a production facility in France 7th place in Bondoufle (Ile de France/ company ProSkelia, working so as to optimize transport Source: Banque de France1 Paris region) as well as its 18 on bone diseases. France costs and be closer to its many employees. Labocreation is Galapagos’s leading French customers. The project was the first manufacturer investment country after is based in Vierzon (Centre- to obtain the Cosmos Belgium, as it devotes 25% of Val de Loire region) and will Label in Belgium, which is its overall investments to it. ultimately lead to the creation a new European standard In 2020, the group placed a of nearly 20 jobs. 1,900+ and common requirement strong emphasis on France by businesses in France for organic and natural recruiting around fifty people Source: Eurostat cosmetics. The Belgian at its R&D site in Romainville (Ile company now intends to de France/Paris region) and further expand this site and 50 at its newly created sales benefit from the expertise of subsidiary in the La Défense French cosmetologists and business district, bringing its schools by promoting the workforce in France to 258 130,000+ “Made in France” label. employees. EMPLOYEES Source: Eurostat

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €42.2 billion.

82 5. SOURCE COUNTRY OVERVIEWS

BELGIAN BUSINESSES IN FRANCE

There are nearly 2,000 subsidiaries centers (30% of projects; 31% of jobs), of projects and 7% of jobs, while the of Belgian businesses established in manufacturing operations (26% of wholesale/retail sector accounted for France, where they employ 130,000 projects; 16% of jobs) and business 9% of projects and 10% of jobs. people. services (19% of projects; 25% of jobs). The majority of Belgian investments Fifty-four new investments from The leading sector in 2020 for Belgian were in three regions: Ile de France Belgium were recorded in France in investment was consulting and (Paris region) (26% of projects; 26% of 2020, creating or maintaining 1,437 jobs, business services (17% of projects; jobs), Hauts de France (22% of projects; an annual rise of 36%. 21% of jobs), where Belgian firms also 15% of jobs), and Grand Est (11% of accounted for 9% of all foreign projects projects; 15% of jobs). Belgian investments in 2020 were in this sector in France. The IT services made primarily in decision-making sector meanwhile corresponded to 13%

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS In 2020, France remained the leading European recipient of job-creating 80 2,000 1,827 investment from Belgium, attracting 74 60 65 1,437 1,500 53% of Belgian projects in Europe, 53 62 1,090 1,058 54 40 1,000 ahead of the United Kingdom (12%), 743 Spain (5%) and the Netherlands (5%). 20 500 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 16 440 30% 31%

Logistics 6 267 11% 19% Ile de France (14 projects) Retail outlets 1 30 2% 2% Hauts de France (12 projects) Grand Est (6 projects) Manufacturing 14 223 26% 16%

R&D, engineering 4 69 7% 5%

Business services 10 365 19% 25% TOP 5 BELGIAN BUSINESSES BY Consumer services 3 43 6% 3% EMPLOYMENT IN FRANCE Total 54 1,437 100% 100%

Workforce Business in France

GROUPE LOUIS DELHAIZE TOP 5 BUSINESS SECTORS Wholesale and retail 18,000 BY PROJECTS Agri-food Number Share ECONOCOM Business sector 6,000 - 7,000 IT services Projects Jobs Projects Jobs Consulting and business services 9 308 17% 21% SOLVAY SA 3,700 Wholesale and retail IT services 7 97 13% 7%

D’IETEREN NV/SA (CARGLASS) Wholesale and retail 5 141 9% 10% 3,000 Automotive industry Agri-food 5 56 9% 4% SAFINCO (VANDEMOORTELE) 1,000 - 1,200 Agri-food Building, construction 4 39 7% 3%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

83 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

CANADA Thirty-five Canadian investment projects were recorded in France in 2020, creating or maintaining 1,648 jobs, up 4% from 2019. Canada is the second largest investor and the second largest source of employment in the IT services sector.

TOP 3 BUSINESS ACTIVITIES: #2 35 PROJECTS +4% IN JOBS Manufacturing (14 projects) investor and #1 supplier of ASSOCIATED WITH Decision-making centers (10) jobs in the aerospace, naval and railway equipment sector IN 2020 CANADIAN INVESTMENT Business services (9) creating or maintaining 1,648 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE 14 CREATION 224 Leading 18 EXPANSION 1,282 European 3 TAKEOVER 142 recipient of Canadian investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

Moka (Montréal, Québec): France thanks to the country’s headquarters of its Water & Founded in 2017 in Montreal, longstanding relationship Environment and Producers & Moka is a startup specializing with Quebec, and so decided Consumers business groups. in mobile applications that it was essential to launch into enable the general public, Europe, starting with France. €6.9 BILLION especially young people, to FDI stock in France save and invest in a simple, Premier Tech (Rivière-du- 13th place automatic and responsible Loup, Québec): Premier Tech Source: Banque de France1 way. Moka is Canada’s employs 4,600 people across most popular savings and 27 countries and works in investment app, which has the fields of horticulture and already acquired over half agriculture, non-collective a million users. Moka was sanitation and rainwater also included in KPMG’s 2019 recovery, manufacturing 200+ Fintech Top 100, which lists industrial packaging businesses in France the most innovative FinTechs equipment and factory Source: Orbis around the world. After connectivity. It is one of the US$14 million in investments top seven Canadian investors from the National Bank of in France and has a very Canada and Desjardins important external growth Capital, two of Canada’s strategy. In 2020, the investor leading banking players, acquired five companies in 28,000+ Moka decided to focus on the France, saving nearly 80 jobs, EMPLOYEES European market. Moka has and has chosen France as Source: Orbis always had strong links with the location of the European

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €13.2 billion.

84 5. SOURCE COUNTRY OVERVIEWS

CANADIAN BUSINESSES IN FRANCE

There are more than 200 subsidiaries jobs (37%) were provided in business leading provider of employment. The of Canadian businesses established in services. “1000 plan” led by Bombardier and France, where they employ more than the takeover of SII by Magellan, which 28,000 people. In 2020, there were 35 Sector-wise, IT services (31%) and generated more than 500 jobs, explain new investments from Canada in consulting/business services (14%) this result. France, creating or maintaining 1,648 welcomed nearly half (46%) of jobs, up 4% from 2019. Canadian investments and more than Ile de France (Paris region) (31%) 40% of associated jobs. Around one- was the main recipient of Canadian Canadian investments were mostly third of jobs (31%) were in the aerospace, investments, followed by Auvergne- in manufacturing activities (40% of naval and railway equipment sector, Rhône-Alpes (14%), Hauts de France projects) and decision-making centers with Canada being the second largest and Pays de la Loire (both 11%). (29%), while more than one-third of investor in this sector in France and the

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS

In 2020, France was the second leading 60 1,800 1,648 European recipient of job-creating 1,616 1,544 1,584 50 1,500 investment from Canada, attracting 40 56 51 23% of Canadian projects in Europe, 43 48 1,200 after the United Kingdom (25%) but 30 35 900 608 ahead of Germany (4%). 20 600 10 300 0 0 TOP 3 HOST 2016 2017 2018 2019 2020 Projects Jobs REGIONS

BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY Ile de France (11 projects) Auvergne-Rhône-Alpes (5 projects) Number Share Hauts de France (4 projects) Business activity Projects Jobs Projects Jobs

Decision-making centers 10 9 29% 6%

TOP 7 CANADIAN BUSINESSES Manufacturing 14 923 40% 56%

BY EMPLOYMENT IN FRANCE R&D, engineering 1 20 3% 1%

Business services 9 603 26% 37% Workforce Business in France Consumer services 1 3 3% 0,2%

Total 35 1 ,648 100% 100% CGI – IT services 12,000+

ONTARIO TEACHERS PENSION PLAN – 5,900+ Financial services and insurance TOP 5 BUSINESS SECTORS POWER CORP – DESMARAIS 4,500 – 5,000 Financial services and insurance BY PROJECTS

Number Share Business sector BOMBARDIER INC. – Aerospace, naval 1,500 and railway equipment Projects Jobs Projects Jobs IT services 11 495 31% 30% MCCAIN FOODS – Agri-food 1,100 Consulting and business services 5 199 14% 12%

Medical equipment and devices 3 183 9% 11% LINAMAR – Metalworking 1,000 Glass, ceramics, minerals, wood, paper 3 124 9% 8%

LALLEMAND – Agri-food 1,000 Energy and recycling 3 14 9% 1%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

85 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

CENTRAL/EASTERN EUROPE & RUSSIA

There were 11 investment projects from CEE countries and Russia in France in 2020, creating or maintaining 323 jobs.1

66% OF JOBS TOP 3 BUSINESS ACTIVITIES: 11 PROJECTS CREATED OR ILE DE FRANCE MAINTAINED IN Decision-making centers (5 #1 HOST REGION FOR IN 2020 projects), Manufacturing (3), INVESTMENTS FROM CEE creating or maintaining MANUFACTURING Business services (1) COUNTRIES AND RUSSIA 323 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: DECISION-MAKING CENTERS: 8 CREATION 80 #1 business activity for 1 EXPANSION 50 investments 2 TAKEOVER 193 from the area

KEY FIGURES THEY CHOSE FRANCE IN 2020 BREAKDOWN BY SOURCE COUNTRY Chemet: This investment Šark: The Slovenian business from Poland was validated Šark specializes in organizing Source following the decision of surfing adventures, most of country Projects Jobs the Paris Commercial which take place in Spain. In Court in early 2020. The 2020, it opened its first surfing Estonia 2 50 €1.3 BILLION French manufacturer of gas camp in Montalivet, in Nouvelle FDI stock in France cylinders GLI (Gaz Liquefiés Aquitaine. The seaside resort Lithuania 2 25 2 Source: Banque de France Industrie), which has factories is 700m from the Atlantic in Bischwiller (Grand Est) and Ocean and roughly the same Czech Republic 2 15 Civray (Nouvelle Aquitaine), distance from the town of as well as a network of 14 Montalivet, which is full of Poland 1 180 GLI service points and tank local markets, bars, surfing depots throughout France, shops and restaurants. This Russia 1 23 300+ was acquired by its Polish project, which was supported businesses in France competitor, the Chemet group, by the region, also led to the Slovenia 1 15 Source: Orbis for €3.15 million. This takeover recruitment of 15 dedicated will save 180 jobs in Bischwiller employees and surfing Hungary 1 10 (as well as 320 jobs in Civray in instructors. the near future) and illustrates Bulgaria 1 5 the interest of Polish investors in France in large takeover Total 11 323 projects. 6,000+ EMPLOYEES Source: Orbis

1 Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia. 2 FDI stock in France (immediate investor) as of December 31, 2019, data available for Bulgaria, Czech Republic, Hungary, Poland, Romania, Russia and Slovakia. FDI stock by ultimate investor as of December 31, 2018 was €1 billion.

86 5. SOURCE COUNTRY OVERVIEWS

CENTRAL/EASTERN EUROPEAN AND RUSSIAN BUSINESSES IN FRANCE

There are around 300 subsidiaries of activity of decision-making centers, mechanical equipment, IT services and Central/Eastern European and Russian while three affect manufacturing. The building/construction all recording two businesses established in France, takeover of Gaz Liquéfiés Industrie projects. where they employ 6,000 people. by the Polish group Chemet, which maintained 180 jobs in Alsace (Grand Businesses with projects from this area Eleven new investments were recorded Est region), explains the major share of were mainly located in Ile de France in France from CEE countries and manufacturing jobs (66%) among jobs (Paris region) (four projects) as well as Russia in 2020, creating or maintaining created or maintained by the area. Grand Est (two projects) and Provence- 323 jobs. Alpes-Côte d’Azur (two projects). Investments from CEE countries and Among the 11 projects recorded Russia in 2020 concerned various in 2020, five concern the business business sectors, with machinery/

FRANCE’S POSITION IN EUROPE3 CHANGE IN PROJECTS AND JOBS

Romania is the leading European 16 700 recipient of job-creating investment 640 12 525 from Central and Eastern European 15 8 15 350 countries and Russia, attracting 16% 261 323 of their projects in Europe, ahead of 4 9 10 11 175 110 113 Germany (12%) and the United Kingdom 0 0 (12%). France received 5% of projects. 2016 2017 2018 2019 2020 Projects Jobs

TOP 3 HOST BREAKDOWN OF PROJECTS REGIONS BY BUSINESS ACTIVITY

Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 5 60 45% 19%

Ile de France (4 projects) Retail outlets 1 5 9% 2% Grand Est (2 projects) Provence-Alpes-Côte d’Azur (2 projects) Manufacturing 3 213 27% 66% R&D, engineering 1 5 9% 2%

Business services 1 40 9% 12%

TOP 5 CENTRAL/EASTERN EUROPEAN Total 11 323 100% 100% AND RUSSIAN BUSINESSES BY EMPLOYMENT IN FRANCE Workforce Business in France TOP 5 BUSINESS SECTORS RZHD – CHEMINS DE FER RUSSE (GEFCO) - Russia 3,000 BY PROJECTS Transport, storage Number Share CZECH MEDIA INVEST – Czech Republic Business sector 1,000 - 1,500 Media, publishing Projects Jobs Projects Jobs Machinery and mechanical equipment 2 190 18% 59% CHEMET GROUP - Poland 1,100 Machinery and mechanical equipment IT services 2 45 18% 14%

WIELTON - Poland Building, construction 2 33 18% 10% 400 Chemicals, plastics Transport, storage 1 20 9% 6% PLASTIWELL - Poland 400 Hospitality, tourism and restau- Chemicals, plastics rants 1 15 9% 5%

Source: Orbis, Bureau Van Dijk

3 Business France, Europe Observatory Source: Annual Report 2020, Business France

87 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

CHINA China1 remained the leading Asian investor in France in 2020, with 53 projects recorded, creating or maintaining nearly 1,700 jobs, up 24% from 2019.

TOP 3 BUSINESS ACTIVITIES: 53 PROJECTS 24% RISE IN JOBS Decision-making centers (17 NEARLY 60% projects), manufacturing (15), OF JOBS IN MANUFACTURING IN 2020 CREATED ACTIVITIES creating or maintaining R&D, engineering (8) 1,697 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: CHINA 33 CREATION 867 Leading 17 EXPANSION 459 Asian investor 3 TAKEOVER 371 in France

KEY FIGURES THEY CHOSE FRANCE IN 2020

Wencan: Founded in 1998, distribution networks and intends to invest €300 million listed on the Shanghai the complementarity of their over five years (2019–2023) in Stock Exchange in 2018 and technologies. France, as announced during ranked among the leaders the second edition of the in high-pressure casting for Microport: Founded in 1998 in “Choose France” summit in €8.5 BILLION the automotive industry, the Shanghai, MicroPort invested January 2019 in Versailles. FDI stock in France Wencan group completed €45 million in 2019 and 2020, 11th place the acquisition of the recruiting 45 people in two Fosun: A subsidiary of the Source: Banque de France2 French business Le Bélier years within its subsidiary Fosun group, Yuyuan acquired on December 10, 2020. The MicroPort CRM, based in a 55% stake in the French total investment amount is Ile de France/Paris region. jewelry brand Djula in March estimated at €240 million. This development project, 2020. The Chinese firm plans to Based in the Nouvelle Aquitaine led by the world number five invest €26 million to accelerate region, Le Bélier specializes in for medical devices in the the development of the brand 900+ low-pressure casting, mainly management of cardiac in China and internationally. businesses in France for the automotive industry. arrhythmias, will enable it to Founded in 1994 in Paris, Djula Source: Orbis Employing 3,505 people intensify its new R&D projects now has nine boutiques in Paris, worldwide, including 230 in Clamart, headquarters of Cannes, New York, Los Angeles people across the Gironde MicroPort CRM since April and Doha, “shops in shops” département, Le Bélier works 2018 and a global center of within Parisian department for both automakers and excellence for development stores and has more than 80 equipment suppliers. This and manufacture of cardiac retail outlets worldwide. 50,000+ acquisition will allow the pacemakers and implantable EMPLOYEES two companies to access defibrillators. The group has Source: Orbis new markets thanks to their also confirmed that it still

1 Including Hong Kong special administrative region. 2 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 for China and Hong Kong was €13.2 billion.

88 5. SOURCE COUNTRY OVERVIEWS

CHINESE BUSINESSES IN FRANCE

There are over 900 subsidiaries of of jobs) and manufacturing operations by foreign investment in this sector, and Chinese businesses established in in terms of jobs (28% of projects; 59% IT services (9% of projects; 4% of jobs). France, where they employ more than of jobs). China also stood out in R&D 50,000 people. and engineering activities, accounting Two French regions received the for more than 10% of jobs generated by majority of investment projects from Fifty-three new investments from foreign investment in this field. China: Ile de France (Paris region) (42% China were recorded in France in 2020, of projects; 33% of jobs) and Auvergne- creating or maintaining nearly 1,700 China distinguished itself for the great Rhône-Alpes (15% of projects; 10% of jobs, a 24% rise in a year. diversity of sectors in which it invested jobs). in France. The two leading sectors Chinese businesses invested primarily were transport/storage (9% of projects; in decision-making centers in terms of 10% of jobs), where China was also project numbers (32% of projects; 12% responsible for 12% of jobs generated

FRANCE’S POSITION IN EUROPE3 CHANGE IN PROJECTS AND JOBS In 2020, France was the leading 75 2,500 European location of job-creating 2,234 investment from China, receiving 26% 60 2,000 65 1,697 45 57 of Chinese investments in Europe, 1,370 65 1,500 1,078 1,364 ahead of Germany (17%) and the 30 51 53 1,000 United Kingdom (13%). 15 500 0 0 2016 2017 2018 2019 2020 Projects Jobs

TOP 3 HOST BREAKDOWN OF PROJECTS REGIONS BY BUSINESS ACTIVITY Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 17 201 32% 12%

Ile de France (22 projects) Logistics 5 95 9% 6% Auvergne-Rhône-Alpes (8 projects) Retail outlets 3 26 6% 2% Occitanie (7 projects) Manufacturing 15 999 28% 59%

R&D, engineering 8 321 15% 19%

TOP 5 CHINESE BUSINESSES Business services 4 45 8% 3%

BY EMPLOYMENT IN FRANCE Consumer services 1 10 2% 1%

Total 53 1,697 100% 100% Workforce in Business France TOP 5 BUSINESS SECTORS FOSUN (Club Med) (China) 10,000 - 15,000 Hospitality, tourism and restaurants BY PROJECTS

Number Share JINING RUYI FASHION DEVELOPMENT Business sector CO (SMCP) (China) 5,000 - 10,000 Projects Jobs Projects Jobs Textiles and accessories Transport, storage 5 165 9% 10% JINJIANG INTERNATIONAL (LOUVRE HOTELS GROUP) (China) 5,000 - 10,000 Hospitality, tourism and restaurants IT services 5 76 9% 4%

CHEMCHINA (China) Automotive industry 4 131 8% 8% 3,000 - 5,000 Chemicals, plastics Agri-food 3 155 6% 9% CK HUTCHISON HOLDINGS (MARIONNAUD) (Hong Kong) 3,000 - 4,000 Electrical/IT equipment 3 55 6% 3% Wholesale and retail

Source: Orbis, Bureau Van Dijk

3 Business France, Europe Observatory Source: Annual Report 2020, Business France

89 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

DENMARK Thirty Danish investment decisions were recorded in France in 2020, creating 480 jobs.

TOP 3 BUSINESS ACTIVITIES: 27% 30 PROJECTS 39% OF JOBS IN Retail outlets (16 projects); OF PROJECTS IN THE MEDICAL IN 2020 MANUFACTURING Manufacturing (6), EQUIPMENT AND DEVICES creating or maintaining R&D, engineering (4) SECTOR 480 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Leading 16 CREATION 194 European 14 EXPANSION 286 recipient of Danish investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

Novo Nordisk: Novo Nordisk Leo Pharma: This VELUX: The Danish Group, has chosen its site in Chartres pharmaceutical laboratory which is the global leader in the (Centre-Val de Loire region) has announced that it is roof window and equipment as the precursor of the investing €39 million in its market, has invested Circular for Zero program, site in Vernouillet (Centre- €3 million in new production €7 BILLION which consists of making Val de Loire region). This activities for flexible solar- FDI stock in France the group a carbon neutral investment aims to complete powered roller shutters. 12th place company. Novo Nordisk thus the establishment of a filling Marnay, in Bourgogne- Source: Banque de France1 invested €164 million between line, to finance a high-speed, Franche-Comté region, was 2016-2020 to expand the site, single syringe candling chosen as the location for create a biomass plant and machine and to adapt the this new activity, which led to sign a contract with a green packaging methods to the 32 jobs being created in 2020. electricity supplier, thereby new syringe format. It will be In addition, the VELUX Group

reducing its CO2 emissions accompanied by the creation has invested €6 million in its 400+ by 8,500 tonnes per year for of 80 jobs in production, roof window manufacturing businesses in France this site alone. Thanks to this quality and logistics and site in Feuquières-en-Vimeu Source: Eurostat program, the company won will increase the production (Hauts de France region) to the “Choose France” award of low-molecular-weight create a new paint line (€4 on December 10, 2020 in heparin by 50%. The site million) and one in robotics the “Ecological Transition” should go from 320 employees (€2 million), contributing to category. on permanent contracts in the creation of 20 jobs at the 2019 to 400 by 2023. At the site in 2020. 40,000+ same time, the laboratory EMPLOYEES has announced that it wants Source: Eurostat to halve its carbon emissions by 2030. 1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €5.0 billion.

90 5. SOURCE COUNTRY OVERVIEWS

DANISH BUSINESSES IN FRANCE

There are around 400 subsidiaries (53%) was in retail outlets, and 40% of Denmark was responsible for 16% of of Danish businesses established in jobs, while the expansion in France of foreign investment recorded in the France, where they employ nearly the daily reduced price product chain latter sector. 40,000 people. Normal A/S explains the importance of this business activity. Elsewhere, Ile de France (Paris region) was Thirty Danish investment decisions 20% of Danish projects and 39% of the leading recipient of Danish were recorded in France in 2020, the jobs created were in manufacturing. investment, welcoming 37% of largest number ever recorded by the projects, ahead of Bourgogne- Business France Europe Observatory, The leading business sectors for Franche-Comté (17%) and Hauts de creating 480 jobs. Danish investment were wholesale/ France (17%). retail (37% of projects) and medical More than half of Danish investment equipment and devices (27%).

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS

In 2020, France was the leading 35 700 European recipients of job-creating 698 30 600 investment from Denmark, attracting 550 25 500 16% of Danish projects in Europe, 28 480 followed by the United Kingdom (14%). 20 30 400 15 18 300 224 214 10 200 5 15 16 100 0 0 TOP 3 HOST 2016 2017 2018 2019 2020 Projects Jobs REGIONS BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY

Number Share Ile de France (11 projects) Business activity Bourgogne-Franche-Comté (5 projects) Projects Jobs Projects Jobs Hauts de France (5 projects) Retail outlets 16 194 53% 40%

Manufacturing 6 187 20% 39%

R&D, engineering 4 33 13% 7%

Business services 3 46 10% 10% TOP 5 DANISH BUSINESSES BY EMPLOYMENT IN FRANCE Logistics 1 20 3% 4% Total 30 480 100% 100%

Workforce Business in France TOP 5 BUSINESS SECTORS ISS WORLD SERVICES 22,000 Other services BY PROJECTS

Number Share NOVO NORDISK Business sector 1 ,600 Pharmaceuticals and biotechnologies Projects Jobs Projects Jobs

Wholesale and retail 11 170 37% 35% DEMANT 1,300 Medical equipment and devices Medical equipment and devices 8 79 27% 16%

Machinery and mechanical CARLSBERG 2 62 7% 13% 1,200 equipment Agri-food Building, construction 2 52 7% 11% DSV GROUP 1,100 Transport, storage Household goods 2 18 7% 4%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

91 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

GERMANY Germany remained the second largest investing country in France in 2020, with 17% of foreign investment projects in France, helping to create or maintain nearly 4,000 jobs.

30% OF TOP 3 BUSINESS PROJECTS IN ACTIVITIES: 201 PROJECTS Manufacturing (54 projects), THE AUTOMOTIVE GERMANY IN 2020 Retail outlets (50), LEADING INVESTOR IN creating or maintaining INDUSTRY. Business services (25) MANUFACTURING ACTIVITIES 3,938 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Leading 93 CREATION 1,333 European 107 EXPANSION 2,478 recipient 1 TAKEOVER 127 of German investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

Siemens: For the past few Dräger: Based in Lübeck, Lidl: The leading German years, the German group has Germany, the Drägerwerk investor in France by been working to advance in Group is a family business employee numbers, Lidl future sectors, such as electric specializing in medical and is investing €70 million mobility, smart buildings, safety equipment, with more to relocate its regional €73.9 BILLION automation and energy than 14,000 employees management, creating a new FDI stock in France storage. Its French subsidiary worldwide. The group has set logistics platform in Lacq, in 5th place recruited 850 people in 2020, up a production site in Obernai the Nouvelle Aquitaine region. Source: Banque de France2 including 450 on permanent (Grand Est region) to make The 25-hectare site will be built contracts, particularly at FFP2 and FFP3 protective on industrial wasteland and its sites in the Ile de France/ masks in response to the will be operational by 2023, Paris region, including Saint- Covid-19 crisis. This factory, creating 150 new jobs. Denis, Vélizy-Villacoublay and which aims to manufacture Châtillon, as well as in Toulouse 100 million masks annually, 2,300+ (Occitanie region). New hires has already created more than businesses in France ranged from people with two 100 jobs, with the investment Source: Eurostat years of experience in higher amounting to more than education to engineers in the €20 million. fields of energy efficiency, software, cybersecurity, embedded systems and big data. 320,000+ EMPLOYEES Source: Eurostat

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €79.4 billion.

92 5. SOURCE COUNTRY OVERVIEWS

GERMAN BUSINESSES IN FRANCE

There are more than 2,300 subsidiaries investor in manufacturing operations out in the automotive industry and of German businesses established in and was responsible for more than 20% medical/surgical equipment sectors, France, where they employ more than of logistics projects. This country was with 30% of projects and 28% of jobs 320,000 people. important for R&D, with one job in five nationwide, respectively. generated in R&D coming from German A total of 201 German investments were businesses. The main regions for attracting recorded in France in 2020, creating or German investments were Grand Est maintaining 3,938 jobs. Sector-wise, wholesale/retail was (16% of projects; 15% of jobs), Auvergne- the leading recipient of German Rhône-Alpes (14% of projects; 13% of German investments in France were investments (26% of projects), marked jobs) and Ile de France (Paris region) made primarily in manufacturing by the expansion of the Lidl Group (13% of projects and jobs). operations (27% of projects), nationwide. German investments were accounting for nearly 40% of all jobs also made in machinery/mechanical generated, and in retail outlets (25% equipment (9% of projects) and energy/ of projects). Germany was the leading recycling (8%). Germany also stood

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS In 2020, France remained the leading

European recipient of job-creating 300 6,000 investment from Germany, attracting 4,737 5,789 4,946 225 4,500 31% of German projects in Europe, 3,618 3,938 228 followed by Spain (11%), the United 150 3,000 191 Kingdom (10%) and Poland (8%). 75 208 180 201 1,500 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 23 397 11% 10%

Logistics 16 560 8% 14% Grand Est (32 projects) Retail outlets 50 579 25% 15% Auvergne-Rhône-Alpes (29 projects) Ile de France (26 projects) Manufacturing 54 1,521 27% 39%

R&D, engineering 23 433 11% 11%

Business services 25 219 12% 6%

TOP 5 GERMAN BUSINESSES BY Consumer services 10 229 5% 6% EMPLOYMENT IN FRANCE Total 201 3,938 100% 100%

Workforce Business in France TOP 5 BUSINESS SECTORS SCHWARZ BETEILIGUNGS GMBH (LIDL) 30,000 Wholesale and retail BY PROJECTS

ALDI NORD Number Share 16,000 Business sector Wholesale and retail Projects Jobs Projects Jobs

Wholesale and retail 53 853 26% 22% ALLIANZ SE 9,000 Financial services and insurance Machinery and mechanical equipment 18 471 9% 12% ROBERT BOSCH GMBH Automotive industry, electrical 7,300 Energy and recycling 16 262 8% 7% equipment Automotive industry 15 413 7% 10% SIEMENS AG 7,000 Electrical/IT equipment Electrical/IT equipment 13 206 6% 5%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

93 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

INDIA Nine Indian investment projects were recorded in France in 2020, creating nearly 500 jobs, up 39% from 2019.

TOP 3 BUSINESS ACTIVITIES: 9 PROJECTS Decision-making centers (3 R&D, ENGINEERING, +39% JOBS projects), Manufacturing (2), THE #1 BUSINESS ACTIVITY IN 2020 Consumer services (2) creating or maintaining CREATED IN 2020 FOR JOB CREATION 496 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE The #4 5 CREATION 93 recipient 4 EXPANSION 403 of Indian investments

KEY FIGURES THEY CHOSE FRANCE IN 2020

HCL Technologies Ltd.: Indian and in creating a standardized Aix-en-Provence (Provence- multinational HCL, a leader in consumer experience in the Alpes-Côte d’Azur region) and IT services such as outsourcing South Asian food market, employs a few dozen people. and software integration, Mixe.Store already operates Tata Communications and has decided to significantly in 12 European countries. The Oasis will now jointly develop €174 MILLION increase its presence in business plans to integrate innovative products to FDI stock in France France, especially at its Saint- new product categories (Made shape the mobility and IoT of Source: Banque de France1 Priest site (Auvergne-Rhône- in France, Mediterranean, etc.) tomorrow. Alpes region), where the group and to develop in new markets, recruited around a hundred IT such as Australia and the Aurobindo Pharma: This engineers in 2020. HCL hopes United States. The firm has business, which specializes in to double its workforce in the already invested €40,000 and the production and marketing Lyon region and to recruit a plans to invest an additional of generic products, is further 250 employees over the €300,000, eventually strengthening its presence in 200+ next three years. recruiting around ten people. Lyon (Auvergne-Rhône-Alpes businesses in France region) via the Arrow France Source: Orbis Mixe.Store: Operational in Ile Tata Group: At the end of 2020, laboratory. It has invested de France (Paris region) since Tata Sons’ telecoms subsidiary, €22 million in its logistics November 2020, Mixe.Store was Tata Communications, packaging and palletizing site created by an Indian citizen acquired a 58.1% stake in the at the Plaine de l’Ain industrial and HEC alumnus and has French eSIM specialist, Oasis, park and has recruited 100 rapidly grown to establish itself created by Olivier Leroux, people. The group has shown 6,000+ as the leading e-commerce which develops online software solidarity by providing France EMPLOYEES platform in Europe for to remotely reprogram SIM with etomidate injections to Source: Orbis groceries and cooking cards. This business is based help with the Covid-19 crisis. products from south-east Asia. in Saint-Germain-en-Laye (Ile A pioneer in price alignment de France/Paris region) and

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €300 million.

94 5. SOURCE COUNTRY OVERVIEWS

INDIAN BUSINESSES IN FRANCE

There are around 200 subsidiaries Auvergne-Rhône-Alpes and in Ile de and hospitality sectors were each of Indian businesses established in France (Paris region) were responsible responsible for two projects. France, where they employ more than for 340 of these jobs (70%) and all jobs 6,000 people. recorded in engineering and business Location-wise, Indian businesses services. The leading business activity invested primarily in Ile de France Nine investment decisions from India for Indian investment by project (Paris region) and Auvergne-Rhône- were recorded in France in 2020, numbers however was decision- Alpes (both three projects), with the creating 496 jobs, 39% more than in making centers (three projects). remaining projects split between 2019. Provence-Alpes-Côte d’Azur (two Among Indian investments in 2020, projects) and Nouvelle Aquitaine (one Investments made by HCL three were in IT services, while the project). Technologies Ltd. on its sites in pharmaceuticals/biotechnologies

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS In the last two years, the leading European recipient of job-creating 20 600 19 496 investment from India was the United 15 450 17 357 Kingdom, attracting 27% of all Indian 10 284 18 300 171 investment in Europe, followed by 9 150 5 11 141 Germany (20%) and the Netherlands 0 0 (9%), while France, in fourth place, 2016 2017 2018 2019 2020 received 7%. Projects Jobs

TOP 3 HOST REGIONS BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY

Number Share Business activity Auvergne-Rhône-Alpes (3 projects) Projects Jobs Projects Jobs Ile de France (3 projects) Provence-Alpes-Côte d’Azur (2 projects) Decision-making centers 3 50 33% 10%

Manufacturing 2 63 22% 13%

R&D, engineering 1 290 11% 58%

TOP 5 INDIAN BUSINESSES Business services 1 50 11% 10% BY EMPLOYMENT IN FRANCE Consumer services 2 43 22% 9%

Total 9 496 100% 100% Workforce Business in France

TATA GROUP (TATA SONS, TATA CONSULTANCY SERVICES) 3,230 IT services / Metalworking BREAKDOWN OF PROJECTS SAMVARDHANA MOTHERSON GROUP 2,000 BY BUSINESS SECTOR (SMC, SMRC) - Automotive industry Number Share Business sector Projects Jobs Projects Jobs CENTUM ELECTRONICS LTD. 575 Electrical/IT equipment IT services 3 365 33% 74%

Pharmaceuticals and biotechnologies 2 63 22% 13% UPL LTD. 570 Chemicals, plastics Hospitality, tourism and restaurants 2 43 22% 9%

Consumer electronics 1 15 11% 3% MAHINDRA & MAHINDRA LTD. 500 Automotive industry Wholesale and retail 1 10 11% 2%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

95 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

IRELAND With investment decisions in France rising by 50% and jobs created by 20%, Ireland recorded sharp growth in its investments in 2020.

TOP 3 BUSINESS +50% IN ACTIVITIES: 15 PROJECTS INVESTMENT Business services (6 projects), IN 2020 Manufacturing (4), +20% IN JOBS creating or maintaining PROJECTS Consumer services (2) CREATED 457 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Joint #1 7 CREATION 113 recipient of 8 EXPANSION 344 Irish investment with the United Kingdom

KEY FIGURES THEY CHOSE FRANCE IN 2020

Accenture: A major player in Amarenco: This independent Ryanair: One of Europe’s consulting and technology producer of photovoltaic leading airlines, Irish-based worldwide, Accenture energy based in Ireland Ryanair now carries more supports its clients in their acquired the Carré group in than 142 million passengers technological and human 2016, which became Amarenco per year on nearly 2,400 €2.2 BILLION transformation. The business France. Amarenco has decided daily flights, connecting FDI stock in France is part of the Fortune to strengthen its presence in 1,800 destinations across 37 19th place Global 500 and has 514,000 France with the recruitment countries. Ryanair arrived in Source: Banque de France1 employees in 120 countries. of around 40 people at the France in 2018, with a desire to France, a priority country Lagrave site (Occitanie establish a lasting presence in for the group, employs more region), as well as through the the country and to double its than 7,000 people. In 2020, acquisition of Synergetik, a traffic in France over the next despite a complex health and business based in Montélimar three to four years. After its first economic situation, Accenture (Auvergne-Rhône-Alpes three bases in France opened, 150+ continued its investments region) specializing in the in Marseille and Bordeaux in businesses in France in France, by recruiting energy transition of France’s 2018 and in Toulouse in 2019, Source: Eurostat nearly 1,000 new employees regions. The group, which now Ryanair decided to open and integrating four other has more than 140 people a fourth base in Beauvais, businesses, OpusLine, across the country, wishes to despite the challenges of the Gekko, Sentelis and Azéo, to continue to expand in France, current health crisis. Ryanair strengthen its expertise in with additional hires in the then operated two aircraft at the fields of healthcare, cloud coming years. its new base, thereby saving 35,000+ computing and artificial jobs and ultimately creating EMPLOYEES intelligence data. 60 roles. Source: Orbis

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €5.6 billion.

96 5. SOURCE COUNTRY OVERVIEWS

IRISH BUSINESSES IN FRANCE

There are more than 150 subsidiaries of jobs), most of which came from the The Auvergne-Rhône-Alpes region Irish businesses established in France, expansion of the consulting and was the most popular region for Irish where they employ around 35,000 strategy firm Accenture plc, followed investors in 2020, attracting one-third people. by manufacturing (27% of projects). of all projects, followed by Hauts de France (20% of projects) and Ile de Fifteen new investments from Ireland One-third of Irish investments in France (Paris region) (13%). were recorded in France in 2020, France in 2020 concerned consulting creating 457 jobs. and business services, with more than half (54%) of jobs created belonging to The leading business activity served this sector. The transport/storage and by these investments was business energy/recycling sectors were placed services (40% of projects; 58% of joint second, each with 13% of projects.

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS

In 2020, France and the United Kingdom 18 600 were the leading European recipients of 15 500 job-creating investment from Ireland, 457 12 17 400 attracting 31% of Irish projects in 372 376 9 13 15 300 Europe, ahead of Germany (10%). 279 11 6 10 200 188 3 100 0 0 2016 2017 2018 2019 2020 Projects Jobs

TOP 3 HOST REGIONS BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY

Number Share Business activity Projects Jobs Projects Jobs

Auvergne-Rhône-Alpes (5 projects) Decision-making centers 2 17 13% 4% Hauts de France (3 projects) Logistics 1 3 7% 1% Ile de France (2 projects) Manufacturing 4 87 27% 19%

Business services 6 265 40% 58%

TOP 5 IRISH BUSINESSES Consumer services 2 85 13% 19%

BY EMPLOYMENT IN FRANCE Total 15 457 100% 100%

Workforce Business in France TOP 5 BUSINESS SECTORS ACCENTURE PLC 7,000 Consulting and business services BY PROJECTS

Number Share SMURFIT KAPPA GROUP Business sector 5,500 Glass, ceramics, minerals, wood, paper Projects Jobs Projects Jobs Consulting and business services 5 247 33% 54% CRH PLC 3,000 - 3,500 Building, construction Transport, storage 2 63 13% 14%

KINGSPAN GROUP PLC Energy and recycling 2 52 13% 11% 1,000 Building, construction Agri-food 1 40 7% 9% ICON PLC. 450 Pharmaceuticals and biotechnologies Building, construction 1 25 7% 5%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

97 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

ISRAEL Three Israeli investment projects were recorded in France in 2020, creating 30 jobs.

TOP 2 BUSINESS 3 PROJECTS ONE IN TWO JOBS ACTIVITIES: 2 IN 3 PROJECTS IN 2020 CREATED IN THE TEXTILES AND Decision-making centers (2), WERE EUROPEAN FIRST-TIME creating or maintaining ACCESSORIES SECTOR Manufacturing (1) INVESTMENTS 30 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE #3 leading 2 CREATION 15 European 1 EXPANSION 15 recipient of Israeli investments

KEY FIGURES THEY CHOSE FRANCE

Syrengy: Syrengy is a company Sony Semiconductor Pontifax: Launched 15 years at the forefront of innovation Israel Ltd. (formerly Altair ago, the Israeli venture in the field of medical injection Semiconductor Ltd.): This capital investment fund devices. It specializes in the Israeli company, which is specializes in life sciences design, development and owned by the Sony group, is and currently handles nearly €949 MILLION manufacture of connected one of the main suppliers of US$750 million. Already FDI stock in France electronic syringes, which cellular Internet of Things (IoT) present in France, where it Source: Banque de France1 remove the undesirable post- chips and has positioned itself has invested in several French injection effects of fillers as a leader in the manufacture companies, Pontifax took part in aesthetic medicine and of long-term evolution (LTE) in a fundraising round table facilitate injection and its chipsets, particularly for the in 2019 for the Lyon-based control by the doctor. This IoT universe. This allows the business Alizé Pharma 3. medical device may also business to be a fundamental This €3 million investment be used in other medical entry point to the gigantic confirms Pontifax’s desire to 50+ disciplines. The new startup market for connected devices seek out other investment businesses in France has chosen to set up its and connectivity, in areas such opportunities in France in this Source: Eurostat European headquarters in the as smart home, smart city, sector. Provence-Alpes-Côte d’Azur automobile, infrastructure, etc. region, within the Marseille The opening of an R&D center Innovation incubator. in the Ile de France/Paris region, which relies on a dozen engineers, further strengthens 3,400+ Sony’s presence in France. EMPLOYEES Source: Eurostat

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €1.1 billion.

98 5. SOURCE COUNTRY OVERVIEWS

ISRAELI BUSINESSES IN FRANCE

There are around fifty subsidiaries Israeli investment decisions were split readapting its production of underwear of Israeli businesses established in between decision-making centers (two to produce protection masks, and plans France, where they employ nearly projects; 15 jobs) and manufacturing to recruit around fifteen employees. 3,400 people. (one project; 15 jobs). Israeli investment targeted three Three investments were recorded from These investments were in the textiles/ regions, Occitanie (50% of jobs), Israel in France in 2020, creating 30 accessories, consulting/business followed by Ile de France (Paris region) jobs. services and pharmaceuticals/ (33%) and Provence-Alpes-Côte-d’Azur. biotechnologies sectors. The firm Eminence, held by the Delta Galil group, stood out during the health crisis by

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS In 2020, France was the third leading 12 180 European recipient of job-creating 174 investment from Israel, attracting 13% 10 150 of Israeli projects in Europe, in line with 8 11 120 the United Kingdom and Spain, and 6 90 after the Netherlands and Germany. 4 5 60 31 40 2 4 30 30 4 26 3 0 0 2016 2017 2018 2019 2020 Projects Jobs

TOP 3 HOST REGIONS

BREAKDOWN OF PROJECTS

Occitanie (1 project) BY BUSINESS ACTIVITY Ile de France (1 project) Provence-Alpes-Côte d’Azur(1 project) Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 2 15 67% 50%

Manufacturing 1 15 33% 50% TOP 5 ISRAELI BUSINESSES BY EMPLOYMENT IN FRANCE Total 3 30 100% 100%

Workforce Business in France

TEVA PHARMACEUTICAL INDUSTRIES LTD. 500 - 1,000 Pharmaceuticals and biotechnologies

DELTA GALIL 400 - 500 BREAKDOWN OF PROJECTS Textiles and accessories BY BUSINESS SECTOR

ALROV PROPERTIES & LODGINGS LTD. 400 - 500 Number Share Hospitality, tourism and restaurants Business sector Projects Jobs Projects Jobs

MAABAROT (ALGAIA) Textiles and accessories 1 15 33% 50% 100 - 150 Agri-food Consulting and business services 1 10 33% 33% PLASAN (AMEFO) 100 - 150 Chemicals, plastics Medical equipment and devices 1 5 33% 17%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

99 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

ITALY Italy was once again the fourth leading investor in France in 2020, with 94 new investment projects, creating or maintaining 1,139 jobs, and Italian firms responsible for 12% of R&D projects in France.

TOP 3 BUSINESS ACTIVITIES: #1 INVESTOR 94 PROJECTS 12% OF PROJECTS Manufacturing (30 projects), AND SOURCE OF EMPLOYMENT IN 2020 recorded in R&D/engineering Decision-making centers IN THE BUILDING AND creating or maintaining were Italian (21), R&D, engineering (18) CONSTRUCTION SECTOR 1,139 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE 40 CREATION 433 Leading 51 EXPANSION 567 European 3 TAKEOVER 139 recipient of Italian investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

Barilla: The Barilla group has noted that the Barilla group publishing, printing, writing been operating in France makes annual investments and photographic editing. for more than 50 years. It amounting to €12 million The Vosges plant which was has nearly 2,000 employees to modernize industrial the subject of this operation and achieved revenues equipment at Barilla France. has been awarded the Living €25.5 BILLION of €600 million in France In total, the Barilla group Heritage Company (EPV) label. FDI stock in France (2019). The group has five has invested €200 million in Thanks to this acquisition, Fila 8th place production sites, as well as France over the past 10 years. has strengthened its portfolio Source: Banque de France1 several logistics hubs in the of brands and products with regions. In July 2020, Barilla Fila: Fila is one of the global a complementary range that announced an exceptional leaders in the fine arts sector offers it new opportunities for investment plan of around and has been operating in growth. €30 million for 2020-2022, France since 1999. In 2016, including €26.4 million for Fila finalized the takeover of 1,700+ the creation of a new Harry’s the ailing French business businesses in France “100% mie” (crust-free bread) Canson and then continued Source: Eurostat in the Pays de la Loire region. its expansion in France with The group also completed the acquisition in 2020 of the the expansion of organic French company Arches for sweet products production €43.6 million. Since the 15th in Hauts de France, as well as century, the company has the expansion to the storage been making premium fine art 63,000+ capacity (+2,000 sq. m.) of paper, recognized worldwide EMPLOYEES the plant based in Centre-Val and used mainly for watercolor Source: Eurostat de Loire. Finally, it should be painting, oil painting, art

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €27.2 billion..

100 5. SOURCE COUNTRY OVERVIEWS

ITALIAN BUSINESSES IN FRANCE

There are over 1,700 subsidiaries manufacturing operations (32%), construction were particularly of Italian businesses established in decision-making centers (22%) and dynamic, with Italy being responsible France, where they employ more than R&D/engineering (19%), which together for one-quarter of projects and jobs 63,000 people. made up more than 80% of jobs. Italy created in this sector nationwide. was responsible for 12% of projects A total of 94 new investments from recorded in R&D/engineering. Italian investments were mostly based Italy were recorded in France in in Ile de France (Paris region) (24% of 2020, as many as in 2018, creating or Italian businesses invested mostly in projects), Provence-Alpes-Côte d’Azur maintaining 1,139 jobs. building/construction (13%), textiles/ (16%) and Auvergne-Rhône-Alpes (12%). accessories (11%) and agri-food (9%) Italian investments were mostly in sectors. Investments in building/

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS

In 2020, France was the leading European recipient of job-creating 150 3,228 3,500 investment from Italy, attracting 40% 120 141 2,800 2,199 of Italian projects in Europe, followed by 90 2,100 Spain (15%) and Germany (15%). 1,504 1,502 94 60 118 1,400 1,139 30 96 94 700 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 21 297 22% 26%

Logistics 6 33 6% 3% Ile de France (23 projects) Provence-Alpes-Côte d’Azur (15 projects) Retail outlets 10 105 11% 9% Auvergne-Rhône-Alpes (11 projects) Manufacturing 30 514 32% 45%

R&D, engineering 18 122 19% 11%

Business services 8 63 9% 6%

Consumer services 1 5 1% 0,4%

TOP 5 ITALIAN BUSINESSES Total 94 1,139 100% 100% BY EMPLOYMENT IN FRANCE

Workforce Business TOP 6 BUSINESS SECTORS in France BY PROJECTS ASSICURAZIONI GENERALI 7,000 Number Share Financial services and insurance Business sector Projects Jobs Projects Jobs FCA GROUP (STELLANTIS) 7,000 Building, construction 12 200 13% 18% Automotive industry

Textiles and accessories 10 105 11% 9% PRYSMIAN S.P.A 3,000+ Electronic components Agri-food 8 110 9% 10%

EDIZIONE HOLDING (AUTOGRILL) Electrical/IT equipment 6 78 6% 7% 3,000 Hospitality, tourism and restaurants Household goods 6 50 6% 4% COMPAGNIE INDUSTRIALI RIUNITE S.P.A 2,000+ Automotive industry IT services 6 50 6% 4%

Source: Orbis, Bureau Van Dijk 2 Business France, Europe Observatory Source: Annual Report 2020, Business France

101 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

JAPAN Japan was responsible for 42 investment projects in France in 2020, creating or maintaining 1,244 jobs. The number of jobs generated by Japanese investments in France was up 31%.

+31% TOP 3 BUSINESS INCREASE IN JOBS ACTIVITIES: 42 PROJECTS Decision-making centers (13 1 JOB IN 2 IN 2020 CREATED OR projects), Manufacturing (10) WAS IN DECISION-MAKING creating or maintaining MAINTAINED R&D/engineering (9) CENTERS 1,244 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE 22 CREATION 313 #2 European 19 EXPANSION 431 recipient 1 TAKEOVER 500 of Japanese investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

Iris Ohyama: After opening Japanese firm had agreed pharmaceutical company its new factory in Lieusaint to donate 500,000 masks to customers, such as Sanofi (Ile de France/Paris region) healthcare professionals in Pasteur, who have “premium” in 2019, Iris Ohyama, which France. quality requirements for specializes in the production drawn glass tubes intended €12.7 BILLION of a wide variety of interior Nipro: Nipro, the Japanese to be used for vaccines. This FDI stock in France and everyday products for leader in disposable medical project, worth €45 million, will 10th place the general public, decided equipment (glass tubes, create 30 new jobs within two Source: Banque de France1 to set up a surgical mask injection needles, transfusion years. manufacturing line there, equipment, etc.) decided to which until now it produced expand its factory of glass only in China. This €8 million tubes for pharmaceutical use investment, decided on at the located in Aumale, Normandie height of the Covid-19 crisis in (Nipro Pharmapackaging 850+ April 2020, will be operational in France). This project will businesses in France the first quarter of 2021. Thirty comprise the construction Source: Orbis machines will be installed, of a new building, as well with a production capacity of as the installation and 40 million masks per month, commissioning of two new resulting in the creation of 70 furnaces for 2022 and 2024. jobs. Even before this project The firm has decided to launch was launched, and faced this major investment to meet 91,000+ with the shortage of medical the glass shortage that exists EMPLOYEES equipment seen at the start on the French and European Source: Orbis of the crisis in Europe, the markets and the needs of large

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €16.3 billion.

102 5. SOURCE COUNTRY OVERVIEWS

JAPANESE BUSINESSES IN FRANCE

There are over 850 subsidiaries of of Antalis by the Kokusai Pulp & Paper in the glass/ceramics/minerals/wood/ Japanese businesses established in group enabled several hundred jobs paper sector (leading provider of France, where they employ more than to be safeguarded explains this result. employment) and the household 91,000 people. Manufacturing received 24% of all goods sector (third largest investor and investments. second largest source of jobs). A total of 42 new investments from Japan were recorded in France in 2020, Japanese investments principally Japanese investments were most often creating or maintaining 1,244 jobs. targeted the financial services/ located in Ile de France (Paris region) insurance (14%), automotive industry (52% of projects), followed by Grand Est Japanese investments were mainly (10%), household goods (10%), (12%) and Auvergne-Rhône-Alpes (12%). made in decision-making centers pharmaceuticals/biotechnologies (31%), where Japan was responsible (10%) and electrical/IT equipment (10%) for 16% of all jobs created. The takeover sectors. Japan stood out particularly

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS In 2020, France was the second leading 80 2,000 European recipient of job-creating 1,926 investment from Japan, attracting 24% 60 1,490 65 1,500 1,195 57 1,244 of Japanese projects in Europe, after 40 67 952 1,000 Germany (25%) but ahead of the United 20 53 42 500 Kingdom (12%). 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 13 641 31% 52%

Logistics 3 38 7% 3% Ile de France (22 projects) Grand Est (5 projects) Retail outlets 3 80 7% 6% Auvergne-Rhône-Alpes (5 projects) Manufacturing 10 334 24% 27%

R&D, engineering 6 47 14% 4%

Business services 4 67 10% 5% TOP 5 JAPANESE BUSINESSES BY EMPLOYMENT IN FRANCE Consumer services 3 37 7% 3% Total 42 1 ,244 100% 100%

Workforce Business in France TOP 5 BUSINESS SECTORS TOYOTA MOTOR CORP. 4,000 - 4,500 Automotive industry BY PROJECTS

Number Share NTN CORP. Business sector 4,000 - 4,500 Automotive industry Projects Jobs Projects Jobs

Financial services and insurance 6 57 14% 5% FAST RETAILING CO. LTD. 3,500 - 4,000 Textiles and accessories Automotive industry 4 140 10% 11%

NIDEC CORP. Household goods 4 105 10% 8% 2,000 - 2,500 Machinery and mechanical equipment Pharmaceuticals and biotechnologies 4 82 10% 7% RICOH CO. LTD. 1,500 - 2,000 Electrical/IT equipment Electrical/IT equipment 4 74 10% 6%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

103 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

LATIN AMERICA In 2020, 11 new investment projects from Latin American businesses1 were recorded, creating 91 jobs in France.

TOP 3 BUSINESS 55% ACTIVITIES: ILE DE FRANCE 11 PROJECTS OF ALL JOBS CREATED Decision-making centers (7 WAS THE #1 DESTINATION IN 2020 WERE IN IT SERVICES projects), R&D, engineering (3), FOR LATIN AMERICAN creating or Manufacturing (1) INVESTMENT IN FRANCE maintaining 91 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Fourth largest 8 CREATION 67 recipient 3 EXPANSION 24 in Europe of Latin American investment

KEY FIGURES THEY CHOSE FRANCE IN 2020 BREAKDOWN BY SOURCE COUNTRY Terramar: The leading Chilean Bordeaux (Auvergne-Rhône- supplier of ingredients for Alpes and Nouvelle Aquitaine), Source Projects Jobs the production of food has the company wishes to country invested with the French support the digital transition Chile 4 44 group LDC in Mayenne (Pays on the French market and to €774 MILLION de la Loire region) to build and expand in Europe. Brazil 4 23 FDI stock in France operate a production facility Colombia 1 15 Source: Banque de France2 for processed animal proteins. SoftExpert: This innovative This investment will result in Brazilian company, which Argentina 1 5 the creation of more than 30 provides solutions and Mexico 1 4 direct jobs and a large value services for automation chain in Mayenne. and business management, Total 11 91 regulatory compliance and 200+ Q4Tech: An innovative corporate governance, businesses in France Argentinian company with 22 has opened a sales office Source: Orbis years of experience in mobile in Lyon (Auvergne-Rhône- business solutions, Q4Tech Alpes region) and hopes to is opening a sales office in create around twenty jobs for Paris, hiring developers and developers and salespeople salespeople. The business in the region within the next supplies customers across three years. more than 30 countries. 8,500+ Through its service offering EMPLOYEES and strong strategic alliances Source: Business France with partners in Lyon and

1 Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Ecuador, Guatemala, Guyana, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Salvador, Suriname, Uruguay, Venezuela. 2 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €3 billion.

104 5. SOURCE COUNTRY OVERVIEWS

LATIN AMERICAN BUSINESSES IN FRANCE

There are around 200 subsidiaries of engineering activities (27% of projects; They were most often located in Latin American businesses established 21% of jobs from Latin American Ile de France (Paris region) (five in France, where they employ 8,500 investment). projects), the leading French region people. for attracting Latin American The IT services sector welcomed the investment, and Bourgogne- Eleven new Latin American investments most projects from Latin America Franche-Comté (two projects). were recorded in France in 2020, (45% of projects; 55% of jobs), while the creating 91 jobs. chemicals/plastics and consulting/ business services received two Latin Around two-thirds of projects (64%) American projects each (18% of and jobs (70%) were made in decision- projects). making centers, followed by R&D and

FRANCE’S POSITION IN EUROPE3 CHANGE IN PROJECTS AND JOBS

In 2020, Spain was the leading 25 250

European recipient of Latin American 20 198 200 investments (44% of projects), 15 22 150 followed by Portugal (19%), the United 136 136 10 15 100 Kingdom (15%) and France (7%). 89 15 91 5 7 11 50 0 0 2016 2017 2018 2019 2020 Projects Jobs

TOP 3 HOST REGIONS BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY

Number Share Business activity Ile de France (5 projects) Projects Jobs Projects Jobs Bourgogne-Franche-Comté (2 projects) Decision-making centers 7 64 64% 70% Auvergne-Rhône-Alpes (1 project) Manufacturing 1 8 9% 9%

R&D, engineering 3 19 27% 21%

Total 11 91 100% 100% TOP 5 LATIN AMERICAN BUSINESSES BY EMPLOYMENT IN FRANCE Workforce Business in France BREAKDOWN OF PROJECTS CEMEX - Mexico 3,000 Building, construction BY BUSINESS SECTOR

SIGMA - Mexico Number Share Wholesale and retail 1,500 Business sector Agri-food Projects Jobs Projects Jobs IT services 5 50 45% 55% JBS S.A. (MOY PARK) - Brazil 700 Agri-food Chemicals, plastics 2 19 18% 21%

SIGDO KOPPERS - Chile Building, construction, 650 Consulting and business services 2 9 18% 10% Metalworking Agri-food 1 10 9% 11% BIMBO (East Balt) - Mexico 600 Agri-food Machinery and mechanical equipment 1 3 9% 3%

Source: Orbis, Bureau Van Dijk

3 Business France, Europe Observatory Source: Annual Report 2020, Business France

105 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

LUXEMBOURG Eleven investment decisions were recorded in France from Luxembourg in 2020, creating or maintaining 141 jobs.

TOP 3 BUSINESS NEARLY HALF OF ACTIVITIES: 11 PROJECTS JOBS CREATED IN Manufacturing (4 projects) IT SERVICES: #1 INVESTMENT R&D/engineering (3) SECTOR FOR LUXEMBOURG IN 2020 MANUFACTURING Decision-making centers (2) BUSINESSES creating or maintaining ACTIVITIES 141 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Leading European 6 CREATION 75 recipient of 5 EXPANSION 66 Luxembourg investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

ArcelorMittal: The steel giant United Caps: The Luxembourg- Openfield: Created in 2004, is beginning its shift towards based manufacturer of caps this information systems Industry 4.0 by creating has invested €12 million to management consulting two digital hubs in Moselle expand a new unit at its firm, specializing in digital (Grand Est region) on big production facility in Alençon transformation, IT project €151 BILLION data, maintenance 4.0 and (Normandie region), after management and data FDI stock in France quality, and in the Hauts de choosing the area, near the security, has 28 employees. 1st place France region in energy, the A28 and A88 motorways and They opened an office in Metz Source: Banque de France1 environment and security. many agri-food businesses. (Grand Est) to be able to best Work began in 2020 and should With revenues of €137 million, support French customer be completed in 2021. This the family business already requests and to promote digitization is an opportunity has a R&D center in the Jura business relations between for the two regions to connect (Bourgogne-Franche-Comté the two countries. The the ecosystem and accelerate region). The new 4,000 sq. m. French subsidiary hired new 1,300+ its digital transition. The two factory will be able to quickly employees in 2020. businesses in France units will have separate yet cover the manufacturing of Source: Orbis complementary positions all United Caps products, with and will operate in close 25 new employees in 2020 and interaction. more hires set to be added to the site in due course.

70,000+ EMPLOYEES Source: Orbis

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €71.2 billion.

106 5. SOURCE COUNTRY OVERVIEWS

LUXEMBOURG BUSINESSES IN FRANCE

There are more than 1,300 subsidiaries of Luxembourg businesses mainly invested services (two projects; 30 jobs) and Luxembourg businesses established in in manufacturing operations (four metalworking (two projects; 10 jobs). France, where they employ nearly 70,000 projects; 56 jobs) and R&D/engineering people. (three projects; 30 jobs). These investments were mostly located in Hauts de France (three projects; 29 Eleven investments were recorded from Three sectors grouped seven projects jobs), Grand Est (three projects; 35 jobs) Luxembourg in France in 2020, creating and 60% of jobs: IT services (three and Ile de France (Paris region) (two or maintaining 141 jobs. projects; 45 jobs), consulting/business projects; 25 jobs).

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS Between 2018 and 2020, France was the leading European recipient of job- 25 1,000 20 800 creating investment from Luxembourg, 759 receiving 47% of Luxembourg projects 15 600 510 23 15 in Europe, ahead of Germany (13%), the 10 17 400 United Kingdom (6%) and Italy (6%). 354 5 8 11 200 66 141 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 2 25 18% 18%

Manufacturing 4 56 36% 40% Hauts de France (3 projects) Grand Est (3 projects) R&D, engineering 3 30 27% 21% Ile de France (2 projects) Business services 1 10 9% 7%

Consumer services 1 20 9% 14%

TOP 5 LUXEMBOURG Total 11 141 100% 100% BUSINESSES BY EMPLOYMENT IN FRANCE Workforce Business in France TOP 5 BUSINESS SECTORS ARCELORMITTAL 16,000 Metalworking BY PROJECTS

Number Share SOLUTION 30 SE Business sector Telecoms, internet service providers 3,000 Projects Jobs Projects Jobs IT services IT services 3 45 27% 32% APERAM S.A. 2,600 Metalworking Consulting and business services 2 30 18% 21%

ARDAGH GROUP S.A. Metalworking 2 10 18% 7% Glass, ceramics, minerals, wood, paper 1,000 - 1,500 Metalworking Chemicals, plastics 1 25 9% 18% INTERNATIONAL TECHNOLOGY SOLUTIONS (ITS) (FRANCE LOISIRS) 1,000 - 1,500 Hospitality, tourism 1 20 9% 14% Wholesale and retail and restaurants

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

107 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

MIDDLE EAST Six new job-creating investment decisions were made in France in 2020 by businesses from countries in the Middle East, creating or maintaining 315 jobs, 50% more than in 2019.1

TOP 3 BUSINESS ACTIVITIES: #3 6 PROJECTS +50% OF JOBS Manufacturing (3 projects), CONTRIBUTOR TO JOBS IN IN 2020 CREATED IN 2020 Decision-making centers (2), THE PHARMACEUTICALS AND creating or maintaining R&D, engineering (1) BIOTECHNOLOGIES SECTOR 315 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Second 5 CREATION 100 leading European 1 EXPANSION 215 recipient of FOLLOWING investment from the TAKEOVER Middle East

KEY FIGURES THEY CHOSE FRANCE BREAKDOWN BY SOURCE COUNTRY Aramco: In partnership Agility: The Kuwaiti leader in with the IFP New Energies logistics, Agility is creating Source group, the Saudi company a 26,000 sq. m. multimodal country Projects Jobs Aramco is investing €2 million platform in Blotzheim (Grand in the creation of an R&D Est region). This €5 million Lebanon 3 230 €10.5 BILLION center to strengthen Saudi investment will create 10 jobs FDI stock in France Source: Banque de France2 technological capacities in the in 2020 in addition to the Bahrain 1 65 petroleum and petrochemical 20 roles that already exist. sectors. This €2 million This multimodal platform is United Arab Emirates 1 10 investment will create 10 jobs, strategically located, near with roles comprising mainly to Basel-Mulhouse Airport, Jordan 1 10 engineers and researchers. Weil-am-Rhein (Germany) and Mulhouse. It also offers Total 6 315 650+ transport services via businesses in France the Rhine to Antwerp and Source: Orbis Rotterdam.

36,000+ EMPLOYEES Source: Orbis

1 Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen. 2 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €13.0 billion.

108 5. SOURCE COUNTRY OVERVIEWS

MIDDLE EASTERN BUSINESSES IN FRANCE

There are around 650 subsidiaries of Among the six projects recorded by pharmaceuticals/biotechnologies Middle Eastern businesses established the area, half of them concerned amounted to 15% of jobs recorded in in France, where they employ 36,000 manufacturing, two were in decision- this sector in France, making Middle people. making centers and one was in R&D/ Eastern countries the third largest engineering. contributor to employment in this Six new job-creating investment sector in 2020. decisions in France from Middle The two leading sectors served by Eastern countries were recorded in investments from Middle Eastern Geographically, Middle Eastern 2020, creating or maintaining 315 jobs, countries were textiles/accessories investments were made in a number 50% more than in 2019 and a return to and IT services (two projects each). of regions, with Provence-Alpes-Côte- job levels seen in 2018. Jobs created or maintained in d’Azur (two projects) standing out.

FRANCE’S POSITION IN EUROPE3 CHANGE IN PROJECTS AND JOBS Since 2019, the United Kingdom was the largest European recipient of 12 450 job-creating investment from Middle 10 375 314 315 Eastern countries, attracting 30% of their 8 11 300 projects in Europe, followed by Germany 6 10 8 225 (12%), Spain (12%) and France (12%). 209 4 8 6 150 94 91 2 75 0 0 2016 2017 2018 2019 2020 Projects Jobs TOP 3 HOST REGIONS

BREAKDOWN OF PROJECTS Provence-Alpes-Côte d’Azur (2 projects) BY BUSINESS ACTIVITY Auvergne-Rhône-Alpes (1 project) Grand Est (1 project) Number Share Business activity Projects Jobs Projects Jobs TOP 5 MIDDLE EASTERN Decision-making centers 2 20 33% 6% BUSINESSES BY EMPLOYMENT IN FRANCE Manufacturing 3 290 50% 92% R&D, engineering 1 5 17% 2% Workforce Business in France Total 6 315 100% 100%

AL MANNAI CORPORATION (GFI INFORMATIQUE) - Qatar - Financial 20,000 services and insurance / IT services

MERIT CORPORATION (J. SAADE) (CMA CGM) - Lebanon 4,000 Transport, storage BREAKDOWN OF PROJECTS BY BUSINESS SECTOR DIVINE INVESTMENT (PRINTEMPS) Number Share Qatar - Financial services and 2,500 - 3,000 Business sector insurance / Wholesale and retail Projects Jobs Projects Jobs

Textiles and accessories 2 75 33% 24% KATARA HOSPITALITY (PENINSULA) Qatar 1,000 - 1,500 Hospitality, tourism and restaurants IT services 2 15 33% 5%

Pharmaceuticals 1 215 17% 68% CONSTELLATION HOTELS and biotechnologies Qatar 500 - 1,000 Hospitality, tourism and restaurants Agri-food 1 10 17% 3%

Source: Orbis, Bureau Van Dijk

3 Business France, Europe Observatory Source: Annual Report 2020, Business France

109 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

NETHERLANDS There were 84 Dutch investment projects in France in 2020, a rise on the previous year, creating or maintaining nearly 1,200 jobs.

TOP 3 BUSINESS ACTIVITIES: 84 PROJECTS +33% PROJECTS Consumer services (48 #1 COUNTRY projects), Manufacturing (15), INVESTING IN AGRI-FOOD IN 2020 IN 2020 Decision-making centers (6) IN FRANCE creating or maintaining 1,173 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Leading 65 CREATION 782 European 19 EXPANSION 391 recipient of Dutch investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

The Surgical Company Plukon: DUC, a major player Nowos: Active since 2019, the Group (TSC): Axess Vision in the poultry sector in Nowos startup offers a repair Technology, acquired by TSC France, became part of the and reconditioning service to in 2017, is based in Joué-lès- Dutch group Plukon in 2017 extend the lifespan of lithium- Tours (Centre-Val de Loire and has since undergone ion batteries for use with €104 BILLION region), employs 44 people restructuring. Since electric bicycles and scooters. FDI stock in France and innovates in the field September 2019, the company Driven by immediate success, 2nd place of single-use endoscopes. has shown positive net results. the new startup took steps Source: Banque de France1 Already showing strong The increase in capital and to set up a new office and a growth, the company has seen investments made are bearing factory in France. In November its sales volumes increase fruit, enabling DUC to expand. 2020, the project developed sharply since the start of the In 2020, the business’s main further, with the opening of a health crisis, recruiting 14 site, located in the Bourgogne- site in Amplepuis (Auvergne- new employees in 2020. Sixty Franche-Comté region, saw its Rhône-Alpes region). They 1,000+ percent of components are workforce increase by 12. DUC hope to hire 25 people by the businesses in France manufactured in France, with also made investments to end of 2021 and around 100 Source: Eurostat the device being assembled in increase production capacity, over three years. Touraine. The business relies thereby preparing the future heavily on its R&D department of the site. to ensure an optimum design for its endoscopes (camera, image optimization 190,000+ algorithms, etc.). EMPLOYEES Source: Eurostat

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €30 billion.

110 5. SOURCE COUNTRY OVERVIEWS

DUTCH BUSINESSES IN FRANCE

There are around 1,000 subsidiaries 40% of jobs), such as Dutch firm Basic food sector, where it is the leading of Dutch businesses established in Fit’s sport centers, which continued investing nation and is responsible France, where they employ more than to expand throughout France, as for 20% of jobs generated by foreign 190,000 people. well as in manufacturing operations, investment in this sector. particularly concerning employment There were 84 Dutch investments (18% of projects; 38% of jobs). Dutch projects were recorded mainly recorded in France in 2020, up from in Ile de France (Paris region) (18% of 2019, creating or maintaining 1,173 jobs. Dutch investments tended to be found projects; 18% of jobs) and Auvergne- in the sport and leisure sector (37% of Rhône-Alpes, the leading region for Investments by Dutch businesses projects; 21% of jobs) and wholesale/ employment (17% of projects and 27% in 2020 were made primarily in retail (17% of projects; 14% of jobs). The of jobs). consumer services (57% of projects; Netherlands stands out in the agri-

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS

In 2020, France remained the leading 120 1,800 1,590 European recipient of job-creating 1,497 1,431 90 1,173 1,350 investment from the Netherlands, 104 60 900 attracting 34% of Dutch projects in 800 84 53 63 Europe, ahead of Germany (15%), Spain 30 36 450 (12%) and the United Kingdom (10%). 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 6 70 7% 6%

Logistics 1 25 1% 2% Ile de France (15 projects) Auvergne-Rhône-Alpes (14 projects) Retail outlets 6 52 7% 4% Occitanie (10 projects) Manufacturing 15 441 18% 38%

R&D, engineering 5 83 6% 7%

TOP 5 DUTCH BUSINESSES BY Business services 3 31 4% 3% EMPLOYMENT IN FRANCE Consumer services 48 471 57% 40% Total 84 1,173 100% 100%

Workforce Business in France TOP 5 BUSINESS SECTORS RANDSTAD 9,600 Consulting and business services BY PROJECTS

Number Share HEINEKEN Business sector 4,000 Agri-food Projects Jobs Projects Jobs

Sport and leisure 31 245 37% 21% AKZO NOBEL 1,600 Chemicals, plastics Wholesale and retail 14 162 17% 14%

REFRESCO Agri-food 9 213 11% 18% 1,200 - 1,300 Agri-food Energy and recycling 5 170 6% 14% HENDRIX GENETICS 1,000 Agri-food Chemicals, plastics 3 105 4% 9%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

111 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

NORTHERN AFRICA Fifteen investment decisions were made in France in 2020 by businesses from Northern African1 countries, just as many as in 2019, creating or maintaining 241 jobs.

TOP 3 BUSINESS ACTIVITIES: 15 PROJECTS 15% OF JOBS 40% GENERATED Decision-making centers (6 IN 2020 projects), Retail outlets (4), OF PROJECTS WERE FIRST-TIME INVESTMENTS IN EUROPE creating or maintaining WERE IN R&D R&D/engineering (3) 241 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE:

11 CREATION 146 FRANCE Leading 1 EXPANSION 35 European recipient 3 TAKEOVER 60 of Northern African investments

KEY FIGURES THEY CHOSE FRANCE IN 2020

SmartWash: With several Lycom: The Moroccan It seeks to benefit from the local years of experience in startup Lycom Consulting, AgTech ecosystem to develop the Tunisian market, the specializing in SaaS solutions R&D activities, raise funds leader of this startup with a for HR management in terms and also boost international strong social impact, which of employee engagement development with its first €3.1 BILLION proposes to digitize the and talent retention, has set subsidiary in Tunisia. This FDI stock in France automatic washing market up its European office BTPW project will create around 15 Source: Banque de France2 by optimizing the impacts Europe in Rouen (Normandie jobs over three years. on the environment and on region) to recruit an R&D team job creation, has decided (artificial intelligence and big to establish SmartWash data themes), to facilitate its BREAKDOWN BY International in France. This international development SOURCE COUNTRY holding company aims to (particularly on the African 1,300+ cover the markets of French- continent, but also on the speaking Europe (France, European and American Source businesses in France country Projects Jobs Source: Orbis Belgium, Luxembourg and markets) and to raise funds. Switzerland) and Africa This project will create ten jobs Tunisia 8 194 (primarily Morocco, Senegal, over three years. Morocco 6 40 Ivory Coast and Cameroon), raise funds and develop Seabex: The Tunisian Algeria 1 7

R&D activities. As part of this startup Seabex, specializing Total 15 241 project, which has chosen the in solutions for precision 7,400+ Bond’Innov incubator, around agriculture, has set up its EMPLOYEES 40 jobs will be created in decision-making center in Source: Orbis France over three years. Orléans (Centre-Val de Loire).

1 Algeria, Egypt, Libya, Mauritania, Morocco, Tunisia. 2 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €3.2 billion.

112 5. SOURCE COUNTRY OVERVIEWS

NORTHERN AFRICAN BUSINESSES IN FRANCE

There are more than 1,300 subsidiaries and R&D/engineering (three projects). were recorded in IT services, resulting of Northern African businesses Of note was that all the investments in in 23% of all jobs. established in France, where they decision-making centers were first- employ around 7,400 people. time investments in Europe. In terms of location, Ile de France (Paris region) led the way, welcoming Fifteen Northern African job-creating Sector-wise, Northern African five projects from Northern African investments were recorded in France in investments were mostly made in businesses, followed by Hauts de 2020, creating or maintaining 241 jobs. wholesale/retail (five projects), with the France (three projects) and Grand Est takeover of the NAF brand by Turkish- (two projects). Investments from this area were Tunisian group SY International going mostly in decision-making centers (six some way to explain the importance of projects), retail outlets (four projects) this sector. In addition, three projects

FRANCE’S POSITION IN EUROPE3 CHANGE IN PROJECTS AND JOBS

In 2020, France was the leading

European recipient of job-creating 20 400 investment from the North African 359 15 300 countries, attracting 60% of North 298 283 16 222 18 241 African projects in Europe, ahead 10 15 200 of the United Kingdom (20%) and 5 16 15 100 Romania (20%). 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 6 66 40% 27%

Retail outlets 4 65 27% 27% Ile de France (5 projects) Hauts de France (3 projects) R&D, engineering 3 35 20% 15% Grand Est (2 projects) Business services 1 35 7% 15%

Consumer services 1 40 7% 17% TOP 5 NORTHERN AFRICAN Total 15 241 100% 100% BUSINESSES BY EMPLOYMENT IN FRANCE Workforce Business in France TOP 5 BUSINESS SECTORS AL MADA (ATTIJARIWAFA BANK, OPTORG), Morocco 2,000 - 2,500 BY PROJECTS Financial services and insurance Number Share CEVITAL (BRANDT, OXXO EVOLUTION, Business sector ISLA MONDIAL), Algeria 1,500 - 2,000 Projects Jobs Projects Jobs Chemicals, plastics Wholesale and retail 5 72 33% 30% BANQUE CHAABI DU MAROC, Morocco 200 - 400 Financial services and insurance IT services 3 55 20% 23%

BMCE BANK (BMCE EUROSERVICES, Transport, storage 1 40 7% 17% BBI, BOA), Morocco 200 - 300 Financial services and insurance Other services 1 39 7% 16% GROUPE OUTSOURCIA, Morocco 200 - 300 Consulting and business services Electrical/IT equipment 1 11 7% 5%

Source: Orbis, Bureau Van Dijk

3 Business France, Europe Observatory Source: Annual Report 2020, Business France

113 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

PORTUGAL Four new job-creating investment decisions were made by Portuguese businesses in France in 2020, creating 31 jobs.

TOP 3 BUSINESS ACTIVITIES: 4 PROJECTS THREE-QUARTERS 50% Decision-making centers (2 OF PROJECTS WERE IN THE IN 2020 OF PROJECTS projects), Manufacturing (1), TRANSPORT AND STORAGE creating or maintaining WERE NEW SITES Logistics (1) SECTOR 31 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Leading European 3 CREATION 21 recipient of 1 EXPANSION 10 Portuguese investment

KEY FIGURES THEY CHOSE FRANCE

Grupo Proef : Founded in 1984, Purever: In 2018, this this Portuguese company Portuguese company bought specializes in energy the French business Dagard, efficiency. After setting up in its main competitor in Europe, Ile de France (Paris region) specializing in modular walls €2.2 BILLION and Auvergne-Rhône-Alpes, for cold rooms, isothermal FDI stock in France Grupo Proef chose Occitanie enclosures and cleanroom 20th place in 2019 as the location for a envelopes for the health Source: Banque de France1 new subsidiary intended to and research sectors. The roll out a fiber optic network company plans to create an in the region. With the creation additional 100 jobs within of 30 jobs, this was Portugal’s three years, with 360 positions largest business creation in having already existed before 2019. the acquisition, and hopes 700+ to make France its export businesses in France platform to the international Source: Orbis market.

7,700+ EMPLOYEES Source: Orbis

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €2 billion.

114 5. SOURCE COUNTRY OVERVIEWS

PORTUGUESE BUSINESSES IN FRANCE

There are more than 700 subsidiaries Among these investments were (two projects), energy/recycling and of Portuguese businesses established two involving decision-making machinery/mechanical equipment in France, where they employ around centers, where two-thirds of jobs (one project each). 7,700 people. (20) were created. One investment in manufacturing created 10 jobs. Auvergne-Rhône-Alpes received two Four Portuguese investments were projects in 2020, with Hauts de France recorded in France in 2020, creating Portuguese investments took place in and Pays de la Loire receiving one 31 jobs. a variety of sectors, transport/storage each.

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS In 2020, France was the leading 10 375 357 European recipient of job-creating 8 300 investment from Portugal, attracting 266 6 8 225 26% of Portuguese projects in Europe 4 8 6 150 since 2019, ahead of Spain (21%), 118 Germany (11%) and Italy (11%). 2 4 75 31 0 1 6 0 2016 2017 2018 2019 2020 Projects Jobs

TOP 3 HOST REGIONS

BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY Auvergne-Rhône-Alpes (2 projects) Hauts de France (1 project) Pays de la Loire (1 project) Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 2 20 50% 65%

Logistics 1 1 25% 3%

Manufacturing 1 10 25% 32%

TOP 5 PORTUGUESE Total 4 31 100% 100% BUSINESSES BY EMPLOYMENT IN FRANCE Workforce Business in France

GRUPO VISABEIRA 2,000 - 2,500 Telecoms, internet service providers

PUREVER BREAKDOWN OF PROJECTS NEGÓCIOS E GESTÃO, SGPS, S.A. 500 - 550 Building, construction BY BUSINESS SECTOR INAPA - INVESTIMENTOS, PARTICIPAÇOES Number Share E GESTAO, S.A 350 Business sector Wholesale and retail Projects Jobs Projects Jobs

SIMOLDES PLASTICOS Transport, storage 2 11 50% 35% 250 Chemicals, plastics Energy and recycling 1 10 25% 32% L.T.T. LIZMONTAGENS THERMAL TECHNOLOGIES 200 Machinery and mechanical 1 10 25% 32% Building, construction equipment

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

115 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

SOUTH KOREA Five investment decisions by South Korean businesses in 2020 created 147 jobs.

TOP 3 BUSINESS 5 PROJECTS 7% OF JOBS ACTIVITIES: in the agri-food sector in Manufacturing (3 projects) THREE-QUARTERS IN 2020 France are of South-Korean R&D/engineering (1) OF JOBS CREATED IN creating or maintaining origin Logistics (1) MANUFACTURING 147 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE - #2 leading 1 CREATION 75 European recipient 4 EXPANSION 72 of South-Korean investment

KEY FIGURES THEY CHOSE FRANCE

SIAS Co. Ltd.: This large Samsung Ventures: The Celltrion Healthcare: After South Korean agri-food SME, venture capital investment opening a branch in 2018, specializing in the production arm of the Samsung group the leading South Korean of frozen meals and the has invested in French producer of biosimilars and manufacture of sauces and startup Aryballe Technologies. innovative medicines decided €1.7 BILLION seasonings, has decided to set Founded in 2014, the Grenoble- to create a sales and marketing FDI stock in France up a production site in Roye based startup is recognized for office in Paris to strengthen Source: Banque de France1 (Hauts de France). The CEO of its innovative aroma detection its operations and to develop the company is a Francophile process, thanks to its use its own sales network in the and decided to create its of artificial intelligence and French market. Already a European production facility machine learning. The startup leader in the infliximab market in France. This project, with successfully concluded its in Europe, Celltrion intends to an investment of €4.5 million latest fundraising with the expand its product portfolio 70+ and creating 75 new jobs over participation of Samsung with value-added and bio- businesses in France three years, will make SIAS Ventures and various innovative medicines, creating Source: Orbis the leading South Korean international investors, around ten jobs through this producer in France of ready- bringing the total raised by expansion. made Asian dishes and ethnic Aryballe Technologies to sauces. €17 million.

5,300+ EMPLOYEES Source: Business France

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €519 million.

116 5. SOURCE COUNTRY OVERVIEWS

SOUTH KOREAN BUSINESSES IN FRANCE

There are more than 70 subsidiaries of logistics (one project; three jobs). seasoning and frozen meals, which led South Korean businesses established to the creation of 75 jobs, explains this in France, where they employ more These investments were made in a result. than 5,300 people. number of different sectors: agri-food, energy/recycling, the automotive South Korean investment projects Five new investments from South Korea industry, machinery/mechanical targeted the Grand Est region (two created 147 jobs in France in 2020. equipment and textiles. It should projects), as well as Hauts de France, be noted that the agri-food sector Provence-Alpes-Côte d’Azur and South Korean projects were split accounted for more than half of South- Centre-Val de Loire (all one project between manufacturing activities Korean jobs. The opening in Roye (Hauts each). (three projects; 114 jobs), R&D/ de France region) of a manufacturing engineering (one project; 30 jobs) and site led by SIAS, specializing in making

FRANCE’S POSITION IN EUROPE3 CHANGE IN PROJECTS AND JOBS

France was the second leading 14 350 European recipient of job-creating 12 300 investment from South Korea in 13 2020, attracting 17% of South Korean 10 250 245 250 projects, after Hungary (23%) but equal 8 200 163 8 to Germany, the United Kingdom and 6 147 150 Poland (all 17%). 4 5 100 63 2 4 50 0 1 0 2016 2017 2018 2019 2020 Projects Jobs TOP 3 HOST REGIONS BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY

Number Share Grand Est (2 projects) Business activity Projects Jobs Projects Jobs Hauts de France (1 project) Provence-Alpes-Côte d’Azur (1 project) Logistics 1 3 20% 2%

Manufacturing 3 114 60% 78%

R&D, engineering 1 30 20% 20%

TOP 5 SOUTH KOREAN Total 5 147 100% 100% BUSINESSES BY EMPLOYMENT IN FRANCE Workforce Business in France BREAKDOWN OF PROJECTS SAMSUNG ELECTRONICS CO., LTD. 450 - 500 Consumer electronics BY BUSINESS SECTOR

Number Share HAHN & CO. AUTO HOLDINGS CO., LTD. Business sector 450 - 500 Automotive industry Projects Jobs Projects Jobs Agri-food 1 75 20% 51% DOOSAN CORP. 450 - 500 Machinery and mechanical equipment Energy and recycling 1 30 20% 20%

KC GREEN HOLDINGS CO., LTD. Automotive industry 1 24 20% 16% 350 - 400 Building, construction Machinery and mechanical equipment 1 15 20% 10% LG ELECTRONICS INC. 200 - 250 Consumer electronics Textiles and accessories 1 3 20% 2%

Source: Orbis, Bureau Van Dijk

3 Business France, Europe Observatory Source: Annual Report 2020, Business France

117 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

SPAIN Forty-nine Spanish investment decisions were recorded in France in 2020, creating or maintaining 1,189 jobs.

TOP 3 BUSINESS ACTIVITIES: ENERGY AND 49 PROJECTS 9% OF PROJECTS Manufacturing (20 projects), RECYCLING IN 2020 IN 2020 Decision-making centers (10), THE #1 SECTOR FOR SPANISH creating or maintaining Logistics (6) INVESTMENT 1,189 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE 29 CREATION 462 Leading 19 EXPANSION 686 European 1 TAKEOVER 41 recipient of Spanish investment

KEY FIGURES THEY CHOSE FRANCE

Cuideo: Founded in 2016 in Grupo Sifu: This “adapted” Casa Terradellas: Spanish Barcelona, this startup is a company specializes in firm Casa Terradellas, the marketplace that connects the provision of services parent company of the Herta carers with families. The promoting the socio- brand, invested at its site in firm generated revenues of professional inclusion of Illkirch-Graffenstaden (Grand €25 BILLION €3 million in 2020, has 70 its workers, 90% of whom Est region), specializing in the FDI stock in France employees and a portfolio are disabled. This socially production of meat products. 9th place of more than 70,000 carers. responsible project has Thanks to its €25 million Source: Banque de France1 Cuideo chose France as its created 200 jobs in the investment announced in first international destination Nouvelle Aquitaine region 2020, the group is to modernize and started operations in since its establishment in the the site, build extra capacity Paris in October. This project region in September 2018. The and expand the quality will create 30 direct jobs business plans to create up to laboratory. within three years and more 800 jobs across France within 850+ than 2,000 indirect jobs. three years. businesses in France The Covid-19 crisis and the Source: Eurostat ageing of the world population have highlighted the need to structure the Silver Economy sector, the presence of new players such as Cuideo thereby making it possible to 58,000+ promote the development of EMPLOYEES this sector of the future. Source: Eurostat

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €19 billion.

118 5. SOURCE COUNTRY OVERVIEWS

SPANISH BUSINESSES IN FRANCE

There are around 850 subsidiaries decision-making centers were the Ile de France (Paris region) was of Spanish businesses established second leading business activity, with the leading host region of Spanish in France, where they employ 58,000 20% of projects. investment in 2020, receiving 24% of people. projects, followed by Occitanie (12%) The energy/recycling sector was the in second place and Auvergne-Rhône- Forty-nine new investments from leading sector for Spanish investment, Alpes, Bretagne (Brittany) and Pays de Spain were recorded in France in 2020, with seven Spanish projects (14%) la Loire in joint third (10%). creating or maintaining 1,189 jobs. being recorded in 2020, versus only one in 2019. There then followed Investments by Spanish businesses machinery/mechanical equipment were made primarily in manufacturing and hospitality/tourism/restaurants, operations (41% of projects; 56% of which each received 8% of projects in jobs created or maintained), while 2020.

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS

In 2020, France was the leading 50 1,750 1,717 European recipient of job-creating 49 40 45 45 45 45 1,400 investment from Spain, attracting 31% 1,189 30 1,052 1,050 of Spanish projects in Europe, ahead 715 811 of Portugal (20%) and the United 20 700 Kingdom (12%). 10 350 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 10 136 20% 11%

Logistics 6 52 12% 4% Ile de France (12 projects) Retail outlets 1 12 2% 1% Occitanie (6 projects) Brittany (5 projects) Manufacturing 20 668 41% 56%

R&D, engineering 3 30 6% 3%

Business services 4 205 8% 17% TOP 5 SPANISH BUSINESSES BY EMPLOYMENT IN FRANCE Consumer services 5 86 10% 7% Total 49 1,189 100% 100%

Workforce Business in France TOP 5 BUSINESS SECTORS INDITEX 9,000 Textiles and accessories BY PROJECTS

Number Share AMADEUS Business sector 4,000 - 4,500 IT services Projects Jobs Projects Jobs Energy and recycling 7 104 14% 9% SAICA (SOCIEDAD ANONIMA INDUSTRIAS CELULOSA ARAGONESA) 2,000 - 2,500 Machinery and mechanical Glass, ceramics, minerals, wood, paper equipment 4 158 8% 13% Hospitality, tourism and PUNTA NA HOLDING (MANGO) 4 77 8% 6% 2,000 restaurants Textiles and accessories Chemicals, plastics 3 71 6% 6% GESTAMP - SOFEDIT 2,000 Automotive industry Transport, storage 3 40 6% 3%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

119 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

SUB-SAHARAN AFRICA Fourteen investment decisions were recorded in France from Sub-Saharan African countries1 in 2019, creating or maintaining 150 jobs. There was one further project than in 2019 and a 79% increase in jobs.

TOP 3 BUSINESS ACTIVITIES: 38% OF JOBS 14 PROJECTS +79% JOBS Decision-making centers (8 projects), CREATED IN THE CONSULTING IN 2020 GENERATED R&D, engineering (3), AND BUSINESS SERVICES creating or maintaining Manufacturing (1) SECTOR 150 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Leading 12 108 CREATION European 1 EXPANSION 4 recipient of 1 TAKEOVER 38 Sub-Saharan African investment

KEY FIGURES THEY CHOSE FRANCE IN 2020 BREAKDOWN BY SOURCE COUNTRY Ibriz: This Senegalese startup, CinetPay: This Fintech specializing in offering digital startup based in Abidjan, Source solutions based on the use of Côte d’Ivoire, has developed country Projects Jobs photovoltaic energy applied a secure, flexible and multi- to the agricultural sector, network payment platform, Ivory Coast 4 86 €4.8 BILLION has chosen to set up its integrating different means Senegal 3 17 FDI stock in France international hub in Rennes (mobile payment, bank cards) 2 Source: Banque de France (Bretagne/Brittany region) and already covering several South Africa 3 14 and R&D activities linked French-speaking African Mali 2 13 to the local ecosystem. The countries (Cameroon, Ivory Madagascar 1 15 aim is also to raise funds to Coast, Mali, Togo, Guinea, finance future growth and Democratic Republic of Congo, Mauritius 1 5

support strong anticipated Burkina Faso and Senegal). It Total 14 150 100+ development in Africa, with created a subsidiary in France businesses in France the support of structures as a digital springboard to Source: Orbis such as Bpifrance, the French accelerate growth in French- Development Agency (AFD) speaking Africa, to develop and Proparco. As part of this R&D activities (blockchain and project, the startup will create artificial intelligence) and also a dozen jobs over three years, to raise funds. Based in Bondy a third of which will be in R&D. (Ile de France/Paris region), the startup will integrate the 11,000+ Swave accelerator and create EMPLOYEES eight jobs over three years. Source: Orbis

1 Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Djibouti, DR Congo, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, São Tomé and Principe, Senegal, Seychelles, Somalia, Sierra Leone, South Africa, South Sudan, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia, Zimbabwe. 2 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €6.0 billion.

120 5. SOURCE COUNTRY OVERVIEWS

SUB-SAHARAN AFRICAN BUSINESSES IN FRANCE

There are more than 100 subsidiaries year, we recorded three investment recorded nearly forty jobs (25%) linked of Sub-Saharan African businesses decisions in R&D/engineering activities, to the takeover project of Stefany established in France, where they which generated 29 jobs. Emballages et Services by the Ivorian employ more than 11,000 people. business Plastica. Fourteen job-creating investment Sector-wise, investments from Sub- decisions were recorded in France Saharan African countries were mostly They were primarily located in Ile de from Sub-Saharan African countries in made in consulting/business services France (Paris region) (four projects), 2020, creating or maintaining 150 jobs (five projects), energy/recycling (two followed by Bourgogne-Franche- (+79% on 2019). projects) and transport/storage (two Comté, Bretagne (Brittany), Provence- projects) sectors, with these sectors Alpes-Côte d’Azur and Occitanie (two More than half of these investments responsible for more than half (53%) projects each). involved decision-making centers of jobs. Of particular note was the (57% of projects; 49% of jobs) and this chemicals/plastics sector, which

FRANCE’S POSITION IN EUROPE3 CHANGE IN PROJECTS AND JOBS

In 2020, France was the joint leading 18 250 recipient in Europe of foreign 215 16 200 investments from Sub-Saharan 12 150 150 African countries, welcoming 25% of 130 14 13 14 projects, equal to the United Kingdom 8 12 84 100 (25%) and ahead of the Netherlands 4 50

(17%). 0 2 15 0 2016 2017 2018 2019 2020

Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 8 73 57% 49%

Logistics 1 6 7% 4% Ile de France (4 projects) Bourgogne-Franche-Comté (2 projects) Manufacturing 1 38 7% 25% Brittany (2 projects) R&D, engineering 3 29 21% 19%

Consumer services 1 4 7% 3% TOP 5 SUB-SAHARAN AFRICAN Total 14 150 100% 100% BUSINESSES BY EMPLOYMENT IN FRANCE

Workforce Business in France ASPEN PHARMA HOLDINGS LIMITED TOP 5 BUSINESS SECTORS South Africa 500 - 1,000 BY PROJECTS Pharmaceuticals and biotechnologies

IBL LTD. Number Share Mauritius 100 - 250 Business sector Real estate Projects Jobs Projects Jobs

ECOBANK TRANSNATIONAL INC. Consulting and business services 5 57 36% 38% Togo 80 - 100 Financial services and insurance Energy and recycling 2 12 14% 8% CAREDAS / ROGERS GROUP Mauritius 70 - 160 Transport, storage 2 11 14% 7% Hospitality, tourism and restaurants Chemicals, plastics 1 38 7% 25% BGFIBANK Gabon 50 Financial services and insurance Media, publishing 1 15 7% 10%

Source: Orbis, Bureau Van Dijk

3 Business France, Europe Observatory Source: Annual Report 2020, Business France

121 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

SWEDEN Thirty new job-creating investment decisions were made in 2020 by Swedish businesses in France, creating or maintaining 658 jobs.

TOP 3 BUSINESS ACTIVITIES: PHARMACEUTICALS AND 30 PROJECTS Decision-making centers (12 BIOTECHNOLOGIES WAS IN 2020 39% OF JOBS IN projects), Manufacturing (9), THE LEADING SECTOR FOR creating or maintaining MANUFACTURING R&D, engineering (3) SWEDISH INVESTMENT 658 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Joint leading 12 CREATION 255 European recipient 18 403 EXPANSION of Swedish investment (with the United Kingdom)

KEY FIGURES THEY CHOSE FRANCE IN 2020

Future Closets: The eco- Recipharm: Recipharm Ericsson: The Ericsson group responsible startup Hack Your has signed a contract has opened its first R&D center Closet offers a rental service with Moderna for the in France, in Massy, within for second-hand and unsold pharmaceutical formulation the Paris-Saclay innovation clothing, delivered directly of their vaccine. It is a vaccine cluster (Ile de France/Paris €5.4 BILLION to consumers. Building on its against Covid-19, which is region). This R&D center, FDI stock in France Swedish success, the firm, based on innovative mRNA dedicated to 5G software and 14th place whose recent fundraising technology. At the same security, aims to accelerate Source: Banque de France1 has just generated more than time, the Swedish group has 5G dynamics in Europe and SEK 20 million, or around decided to build additional will be able to accommodate €2 million, recently created production capacities to up to 300 researchers and a subsidiary, Future Closets cope with recurring requests engineers. SAS, in Strasbourg (Grand for vaccines against viral Est region). This, in addition pandemics. This investment 460+ to opening the business relates to the construction businesses in France to the French market and of a new production facility, Source: Business France, Stockholm internationally, is due to create comprising a vial production 120 jobs by 2022. Its founder line and a pre-filled syringe sees the French market as a line worth around €60 million, test of its ability to penetrate resulting in around 100 jobs at other markets in the future. the site. 95,000+ EMPLOYEES Source: Business France, Stockholm

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €7.4 billion.

122 5. SOURCE COUNTRY OVERVIEWS

SWEDISH BUSINESSES IN FRANCE

There are around 460 subsidiaries projects and 30% of jobs, followed by leading sector for job creation from of Swedish businesses established manufacturing (30% of projects; 39% Sweden was the automotive industry, in France, where they employ 95,000 of jobs). The automotive industry and with 22% of jobs created. people. pharmaceuticals/biotechnologies accounted for two-thirds of projects Location-wise, the most Swedish Thirty job-creating investments were and 80% of jobs in manufacturing. investments were made in Ile de recorded by Swedish businesses in France (Paris region) (33% of projects), 2020, creating or maintaining 658 jobs. The leading recipient of Swedish with 13% in both Auvergne-Rhône- investments was the pharmaceuticals/ Alpes and Grand Est, and 10% in Hauts Decision-making centers were the biotechnologies sector, with five de France. first business activity served by these projects or 10% of all projects received investments, accounting for 40% of by France in this sector in 2020. The

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS

In 2020, France was the joint leading 50 850 825 775 European recipient, along with the 40 680 678 658 United Kingdom, of job-creating 44 30 500 510 investment from Sweden, attracting 19% 31 35 30 of Swedish projects in Europe, ahead of 20 340 Germany in third position (9%). 10 25 170 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 12 200 40% 30%

Retail outlets 2 60 7% 9%

Ile de France (10 projects) Manufacturing 9 258 30% 39% Auvergne-Rhône-Alpes (4 projects) Grand Est (4 projects) R&D, engineering 3 73 10% 11% Business services 3 30 10% 5%

Consumer services 1 37 3% 6%

TOP 5 SWEDISH BUSINESSES Total 30 658 100% 100% BY EMPLOYMENT IN FRANCE

Workforce Business TOP 6 BUSINESS SECTORS in France BY PROJECTS SECURITAS AB 17,000 Number Share Consulting and business services Business sector Projects Jobs Projects Jobs

AB VOLVO Pharmaceuticals 11,500 5 79 17% 12% Automotive industry and biotechnologies Automotive industry 4 143 13% 22% IKEA 9,500 Household goods Energy and recycling 2 57 7% 9%

HENNES & MAURITZ (H&M) Financial services and insurance 2 32 7% 5% Textiles and accessories 7,500 Wholesale and retail Machinery and mechanical equipment 2 15 7% 2% LOOMIS AB 4,000 Other services IT services 2 15 7% 2%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

123 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

SWITZERLAND Forty-six Swiss investments were recorded in France in 2020, creating or maintaining nearly 2,400 jobs, up 4% from 2019. A significant number of financial projects (business buyouts, safeguarding investments) complete the picture, confirming that Swiss investment in France remained high in 2020.

TOP 3 BUSINESS ACTIVITIES: SWITZERLAND 46 PROJECTS 4% RISE IN JOBS Manufacturing (18 projects), Business services (13), WAS RESPONSIBLE FOR IN 2020 CREATED R&D/engineering (8) 13% OF JOBS CREATED IN creating or maintaining HEALTHCARE SECTORS 2.390 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE 11 CREATION 719 Leading 33 EXPANSION 1,307 European 2 TAKEOVER 364 recipient of Swiss investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

M3 Group: The Swiss group Novartis: Novartis is Lonza: The Swiss group is one has invested in a 25,000 sq. launching Biome Paris, of the global leaders in the m. mask factory in Ploufragan its first digital innovation development, manufacture (Bretagne/Brittany region) in laboratory in Europe. Biome and marketing of chemicals, response to the Covid-19 crisis. Paris will enable Novartis to pharmaceuticals, €91.9 BILLION The firm intends to produce bring concrete solutions to biotechnology and specialty FDI stock in France around 250,000 masks per patients by working closely ingredients. It operates on 4th place year, but also a complete with players in the digital 53 production and R&D sites Source: Banque de France1 range of sanitary products, ecosystem, both in France and in 30 countries. Since June such as gowns, hygiene internationally. Partnerships 2017, and the acquisition caps and hydroalcoholic gel. with and cooperation of the American company On-site activities have already between businesses, ranging Capsugel, specializing in started and there are plans to from startups to mature biotechnologies and dosing hire around 110 people. businesses in the sector, solutions, Lonza has had 1,000+ will also enable Novartis’ a large production site in businesses in France employees to explore new Colmar (Grand Est region). Source: Orbis agile methods to accelerate This site, which employs 315 project development. people, will benefit from new investments to increase its encapsulation capacities. Some 35 additional jobs are expected to be created. 280,000+ EMPLOYEES Source: Orbis

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €82.3 billion.

124 5. SOURCE COUNTRY OVERVIEWS

SWISS BUSINESSES IN FRANCE

There are more than 1,000 subsidiaries generated by investment in this by investments by the Swiss group of Swiss businesses established in business activity. Business services STMicroelectronics, Switzerland France, where they employ nearly also accounted for a substantial share created 52% of all jobs in the electronic 280,000 people. of these investments (28% of projects; components sector. 28% of jobs). Forty-six Swiss investments were The leading recipients of Swiss recorded in France in 2020, creating Sector-wise, Swiss businesses invested investments were Ile de France (Paris or maintaining 2,390 jobs, up 4% from mainly in consulting/business services region) (24% of projects; 27% of jobs), 2019. (24% of projects; 28% of jobs), with Auvergne-Rhône-Alpes (17% of projects; Switzerland standing out in the 18% of jobs) and Pays de la Loire (11% of Swiss investors focused on healthcare sectors (18% of projects; projects; 17% of jobs). manufacturing operations (39% of 16% of jobs), where it was responsible projects; 52% of jobs), with Switzerland for 13% of all jobs generated by foreign being responsible for 10% of all jobs investment in this sector. Buoyed

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS In 2020, France remained the leading 80 4,000 European recipient of job-creating 3,359 investment from Switzerland, 60 76 3,000 72 2,290 2,390 attracting 31% of Swiss projects in 40 59 2,000 1,503 1,028 Europe, ahead of Germany (18%) and 20 46 1,000 Spain (11%). 43 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 5 35 11% 1%

Logistics 1 350 2% 15% Ile de France (11projects) Auvergne-Rhône-Alpes (8 projects) Manufacturing 18 1,231 39% 52% Pays de la Loire (5 projects) R&D, engineering 8 92 17% 4%

Business services 13 672 28% 28%

TOP 5 SWISS BUSINESSES Consumer services 1 10 2% 0,4% BY EMPLOYMENT IN FRANCE Total 46 2,390 100% 100%

Workforce Business in France TOP 5 BUSINESS SECTORS NESTLE S.A. 13,000 Agri-food BY PROJECTS

Number Share KÜHNE HOLDING AG Business sector 11,000 Transport, storage Projects Jobs Projects Jobs

Consulting and business services 11 662 24% 28% STMICROELECTRONICS 10,000 Electronic components Machinery and mechanical equipment 6 163 13% 7% Pharmaceuticals and biotech- EMIL FREY HOLDING AG 5 198 11% 8% 9,100 nologies Wholesale and retail Electronic components 3 264 7% 11% ADECCO SA 9,000 Consulting and business services Medical equipment and devices 3 189 7% 8%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

125 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

TAIWAN

Four Taiwanese investment projects were recorded in France in 2020, as many as in 2019, creating 41 jobs.

TOP 2 BUSINESS 49% OF JOBS CREATED 4 PROJECTS ACTIVITIES: 75% IN THE TRANSPORT/ Decision-making centers OF PROJECTS ARE FIRST-TIME IN 2020 STORAGE SECTOR (3 projects), INVESTMENTS OF TAIWANESE creating or maintaining Logistics (1) FIRMS IN FRANCE 41 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE Leading 4 CREATION 41 European 100% OF TAIWANESE PROJECTS recipient of ARE CREATIONS Taiwanese investment

KEY FIGURES THEY CHOSE FRANCE

ASE: ASE, the global leader into that of the USI group, as JPP Holding Company in semiconductor packaging well as its 6,000 employees Limited: This Taiwanese and encapsulation, has worldwide, including 800 machinery and tooling firm, strengthened its position in in France. Importantly, this looking to position itself as a areas outside Asia with the acquisition constitutes the key supplier in the aerospace €190 MILLION acquisition of the French first transaction of this type sector, created a subsidiary FDI stock in France group Asteelflash, specializing outside Asia for the Taiwanese in France and bought out Source: Banque de France1 in the subcontracting of group ASE, illustrating the for €3.5 million the company electronic products, for an desire for a presence in Jin Pao Europe, located amount of US$450 million. This Europe. in Bagnères-de-Bigorre buyout was made through the (Occitanie), specializing in Chinese subsidiary of ASE USI, Industrial Technology surface treatment. a business also specializing Investment Corporation: The 40+ in the subcontracting of Taiwanese quasi-sovereign businesses in France electronic products. Thanks fund belonging to the Source: Orbis to this merger, the group Taiwanese public research benefits from a global and development organization presence, with new market (ITRI) has invested in a segments and new clients, but Grenoble-based world- also provides its customers leading startup in the testing with complementary of magnetic memory (MRAM). technological capabilities. This fund is also looking for a 1,500+ The current management of French partner for the creation EMPLOYEES Asteelflash will be integrated of a cross-border fund. Source: Orbis

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €266 million.

126 5. SOURCE COUNTRY OVERVIEWS

TAIWANESE BUSINESSES IN FRANCE

There are more than 40 subsidiaries making centers (three projects; 21 jobs), These investments were located evenly of Taiwanese businesses established which in two-thirds of cases were first- in Provence-Alpes-Côte d’Azur, Hauts in France, where they employ nearly time investments in Europe. France de France, Auvergne-Rhône-Alpes and 1,500 people. welcomed one Taiwanese project in Ile de France (Paris region), which each logistics by the Yang Ming business, welcomed one Taiwanese investment Four new Taiwanese investment which provided around twenty jobs. project. projects were recorded in 2020, as many as in 2019, creating 41 jobs. There were Taiwanese projects in the transport/storage, household goods, Taiwanese investments corresponded glass/ceramics/minerals/wood/paper in the majority of cases to decision- and the IT services sectors.

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS In 2020, France was the leading recipient of Taiwanese investment in 8 80 Europe, receiving 57% of all projects, 7 70 ahead of the Netherlands (29%) and 64 6 60 Italy (14%). 55 5 7 50 41 4 40 3 4 4 4 30 2 3 20 13 TOP 3 HOST 1 11 10 0 0 REGIONS 2016 2017 2018 2019 2020 Projects Jobs

Provence-Alpes-Côte d’Azur (1 project) BREAKDOWN OF PROJECTS Hauts de France (1 project) BY BUSINESS ACTIVITY Auvergne-Rhône-Alpes (1 project) Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 3 21 75% 51%

TOP 5 TAIWANESE BUSINESSES Logistics 1 20 25% 49% BY EMPLOYMENT IN FRANCE Total 4 41 100% 100%

Workforce Business in France

MEI TA INDUSTRIAL CO., LTD. 1,000 Machinery and mechanical equipment BREAKDOWN OF PROJECTS ASTEELFLASH 800 BY BUSINESS SECTOR Electronic components Number Share TONGTAI MACHINE & TOOL CO., LTD. 100 - 150 Business sector Machinery and mechanical equipment Projects Jobs Projects Jobs

ACER INC. Transport, storage 1 20 25% 49% 100 -150 Consumer electronics Household goods 1 10 25% 24% ASUSTEK COMPUTER INC. 100 Consumer electronics Glass, ceramics, minerals, wood, paper 1 6 25% 15% JOHNSON HEALTH TECH COMPANY 50 -100 IT services 1 5 25% 12% Machinery and mechanical equipment

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

127 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

TURKEY

Twelve Turkish investments were recorded in France in 2020, two more than in 2019, creating or maintaining 174 jobs.

TOP 3 BUSINESS RISE IN THE NUMBER OF ACTIVITIES: 12 PROJECTS INVESTMENT PROJECTS Decision-making centers 58% OF PROJECTS (7 projects), INVOLVED FIRST-TIME IN 2020 IN 2020 R&D, engineering (2) INVESTMENTS IN FRANCE creating or maintaining Retail outlets (1) 174 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE 4th leading 12 CREATION 174 European 100% OF TURKISH PROJECTS recipient WERE CREATIONS of Turkish investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

Kleidco: This Turkish design/ Dogus: Doğuş is one of the Sampa: A global brand, Sampa architectural firm and leading Turkish conglomerates manufactures truck parts manufacturer of aluminum that operates globally and and is based in Turkey. The structures for buildings offers it is active in various sectors, firm chose to set up in Corbas, tailor-made solutions. Thanks including food and beverages. south of Lyon (Auvergne- €246 MILLION to its innovative offering, One of the global restaurant Rhône-Alpes region), to FDI stock in France particularly in terms of brands under the Doğuş become a sustainable part Source: Banque de France1 energy efficiency, the firm has group, which represents the of the ecosystem of spare established a market in France modern Peruvian cuisine parts distribution in France. and has decided to strengthen named Coya, has opened in It has already formed a team its presence there by creating Paris. This investment has of nine people and intends a sales and assembly office. It created 70 jobs. The Turkish to continue to grow with the recruited five people upon its conglomerate puts France hiring of ten more people. establishment and plans to among the great gastronomic Ultimately, the business wishes 440+ expand, with 10 additional jobs countries in the world and to expand its presence in the businesses in France in the coming months. intends to expand further French market and improve its Source: Orbis in other cities of France, logistics services. following, as always, the same spirit that has made its success in the world until today, by targeting high-class opportunities. 1,200+ EMPLOYEES Source: Orbis

1 FDI stock by (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €363 million.

128 5. SOURCE COUNTRY OVERVIEWS

TURKISH BUSINESSES IN FRANCE

There are more than 440 subsidiaries (58% of projects; 47% of jobs) and high-class restaurants belonging to the of Turkish businesses established in there were also two R&D/engineering Doğuş group, which was responsible for France, where they employ more than projects this year that generated eight 40% of employment. 1,200 people. jobs. Geographically, Turkish businesses Twelve new Turkish investments were More than half of Turkish investment invested mainly in Ile de France (Paris recorded in France in 2020, the highest (59%) was in the building/construction region) (two-thirds of projects and number in five years, creating or (25%), automotive industry (17%), and jobs), followed by Auvergne-Rhône- maintaining 174 jobs. the consulting/business services (17%) Alpes (17% of projects; 24% of jobs). sectors, which together accounted These investments mainly involved for one-third of jobs. Of note was the setting up decision-making centers opening in Paris of the Coya traditional

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS

In 2020, France was the fourth leading 15 350 European recipient of job-creating 318 12 280 investment from Turkey, attracting 12 8% of Turkish projects in Europe, after 9 210 10 174 Germany (17%) and equal with the 6 140 78 6 United Kingdom, Denmark and Spain 3 4 70 38 7 47 (all 8%). 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 7 81 58% 47%

Retail outlets 1 70 8% 40% Ile de France (8 projects) Auvergne-Rhône-Alpes (2 projects) Manufacturing 1 5 8% 3% Grand Est (1 project) R&D, engineering 2 8 17% 5%

Business services 1 10 8% 6%

TOP 5 TURKISH BUSINESSES Total 12 174 100% 100% BY EMPLOYMENT IN FRANCE

Workforce Business in France TOP 5 BUSINESS SECTORS YILDIZ HOLDING (UNITED BISCUITS) BY PROJECTS 250 - 300 Agri-food Number Share Business sector ORHAN HOLDING ANONIM SIRKETI Projects Jobs Projects Jobs 200 - 300 Automotive industry Building, construction 3 29 25% 17%

ECZACIBASI HOLDING ANONIM SIRKETI 100 - 150 Automotive industry 2 17 17% 10% Ceramics

Consulting and business services 2 13 17% 7% ÖZLER PLASTIK 100 - 150 Chemicals, plastics Hospitality, tourism and restaurants 1 70 8% 40% ARÇELIK A.S. 70 - 100 Consumer electronics Household goods 1 30 8% 17%

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

129 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

UNITED KINGDOM The United Kingdom was the third leading investor in France in 2020 and the second largest source of jobs, with 5,459 or 16% of jobs created or maintained by a foreign investor.

TOP 3 BUSINESS #1 CONTRIBUTOR ACTIVITIES: TO JOBS IN THE 120 PROJECTS #2 COUNTRY Retail outlets (48 projects), FOR JOBS CREATED OR Decision-making centers (28), AUTOMOTIVE IN 2020 MAINTAINED IN FRANCE Manufacturing (17) creating or maintaining INDUSTRY 5,459 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE 92 CREATION 2,700 Leading 22 EXPANSION 741 European 6 TAKEOVER 2,018 recipient of British investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

Ineos: Ineos Automotive, the SCC (Rigby Group): The Rigby professional reintegration automotive arm of Ineos, the Group is a diverse family program, as well as those with UK’s leading petrochemical conglomerate, specializing disabilities. manufacturer, has acquired in several areas, including the German site Daimler technology/IT solutions Graphcore: A British unicorn, €103 BILLION located in Hambach (Grand through its subsidiary SCC. specializing in the design of FDI stock in France Est region) to manufacture As the second largest country micro-processors dedicated 3rd place its 4x4 Grenadier all-terrain for IT services activity, to artificial intelligence Source: Banque de France1 vehicle. Ineos will continue to France has an important calculations, Graphcore manufacture the Smart EQ role in Rigby’s international decided in April 2020 to open ForTwo and certain Mercedes- development strategy. a subsidiary in Ile de France Benz components on site, After having increased its (Paris region). The firm intends thereby preserving 1,300 jobs presence in Valenciennes in to develop commercial and in the region. The group will 2019, the group continues to R&D activities in France, 1,800+ start to produce the Grenadier expand in France, opening thereby hoping to reach businesses in France in late 2021, with a commercial a new customer support around fifty employees within Source: Eurostat launch scheduled for 2022. center on the Recyclea site three years. in Montluçon (Auvergne- Rhône-Alpes region), which will accommodate up to 300 engineers and technicians supporting and monitoring 182,000+ IT infrastructures. The group EMPLOYEES is committed to a process Source: Eurostat of hiring staff as part of a

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €81 billion.

130 5. SOURCE COUNTRY OVERVIEWS

BRITISH BUSINESSES IN FRANCE

There are around 1,800 subsidiaries expansion of the Action group, owned while the automotive industry was the of British businesses established in by British investment fund 3i Group plc, leading recipient of jobs (25%). It is France, where they employ more than and Primark, owned by the AB Food worth noting that in 2020 the United 182,000 people. group, explains the importance of retail Kingdom was responsible for 19% of all outlets. In terms of jobs, manufacturing investment recorded in the financial There were 120 British investment came out on top, with 45% of jobs services and insurance sector in France. decisions in France recorded in 2020, created, with the takeover of the creating or maintaining 5,459 jobs. Hambach site by Ineos, and the 1,300 The leading region for British jobs that were maintained, explaining investments in France was Ile de France Among these investments, retail the extent of employment in this area. (Paris region) (31% of projects), ahead of outlets were the most numerous (40% Hauts de France (15%) and Auvergne- of projects) and were responsible for Wholesale/retail was the leading sector Rhône-Alpes (10%). 31% of all British jobs recorded. The for British investment (37% of projects),

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS In 2020, France was the leading 200 6,000 5,927 5,459 European recipient of British job- 160 4,800 3,713 creating investment, attracting 24% 120 173 3,600 of British projects in Europe, ahead of 2,527 80 2,448 120 2,400 Germany (12%) and Spain (12%). 40 85 89 118 1,200 0 0 2016 2017 2018 2019 2020 Projects Jobs

TOP 3 HOST BREAKDOWN OF PROJECTS REGIONS BY BUSINESS ACTIVITY

Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 28 275 23% 5% Ile de France (37 projects) Hauts de France (18 projects) Logistics 5 440 4% 8% Auvergne-Rhône-Alpes (12 projects) Retail outlets 48 1,710 40% 31%

Manufacturing 17 2,459 14% 45%

R&D, engineering 5 93 4% 2% * TOP 5 BRITISH BUSINESSES Business services 15 441 13% 8% BY EMPLOYMENT IN FRANCE Consumer services 2 41 2% 1%

Total 120 5,459 100% 100% Workforce Business in France

KINGFISHER PLC (CASTORAMA) Wholesale and retail 19,000+ TOP 5 BUSINESS SECTORS Household goods BY PROJECTS COMPASS GROUP PLC 15,000 - Hospitality, tourism and restaurants Number Share 16,000 Consulting and business services Business sector Projects Jobs Projects Jobs

HSBC HOLDINGS PLC 8,000+ Wholesale and retail 44 1,663 37% 30% Financial services and insurance Consulting and business services 9 73 8% 1% ASSOCIATED BRITISH FOODS PLC (Primark) 5,000 - 6,000 Textiles and accessories Financial services and insurance 8 77 7% 1%

DS SMITH PLC IT services 8 68 7% 1% 4,000 Glass, ceramics, minerals, wood, paper Textiles and accessories 7 545 6% 10% * Excluding investment funds

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

131 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

UNITED STATES The United States was the leading source of job-creating foreign investment in France in 2020, with 204 projects creating or maintaining 8,286 jobs (+5% on 2019). The United States remained the leading investor and source of employment in France.

TOP 3 BUSINESS ACTIVITIES: 204 PROJECTS #1 INVESTING Manufacturing (48 projects) IN 2020 COUNTRY AND SOURCE OF Decision-making centers (44) #1 Business services (37) creating or maintaining EMPLOYMENT IN FRANCE INVESTOR IN R&D 8,286 JOBS NUMBER OF PROJECTS AND JOBS BY INVESTMENT TYPE: FRANCE 79 CREATION 1,439 Second 112 EXPANSION 6,460 leading European 13 TAKEOVER 387 recipient for American investment

KEY FIGURES THEY CHOSE FRANCE IN 2020

Becton Dickinson (BD): Collins Aerospace: A major Scalefast: The California Manufacturer and global player in French aerospace business, founded in 2014, distributor of medical with 4,000 employees in develops a wide range of technology, Becton Dickinson the region, including 700 B2B e-commerce solutions announced in 2020 an engineers spread over 18 and services. Building on its €58.1 BILLION investment of US$176 million sites, Collins Aerospace has growth, particularly in Europe, FDI stock in France in its Pont-de-Claix site in commissioned the Hélices its managers wished to 6th place Isère (Auvergne-Rhône- Center of Excellence in Figeac strengthen their commercial Source: Banque de France1 Alpes region). This site acts (Occitanie), comprising a presence by establishing as a reference center for the new 2,300 sq. m. building for an e-commerce center of production of pre-fillable the development, testing expertise in Lyon (Auvergne- syringes (over one million a and qualification of new Rhône-Alpes region), with day) and hosts the global R&D technologies, as well as the recruitment of around center for this business unit. for the manufacture of fifty people within three 4,400+ Becton Dickinson also plans to composite blades. This years. Despite the current businesses in France strengthen its presence in the €32 million investment health crisis, Scalefast has Source: Orbis region, with the recruitment could generate around 100 set up in the offices in the of 90 employees following this hires by 2023. This initiative Confluence area of the announcement. earned Collins the Choose city and in particular has France “Competitiveness recruited a complete team of & Innovation” award in e-commerce experts. December 2020. 400,000+ EMPLOYEES Source: Orbis

1 FDI stock in France (immediate investor) as of December 31, 2019. FDI stock by ultimate investor as of December 31, 2018 was €140.9 billion.

132 5. SOURCE COUNTRY OVERVIEWS

AMERICAN BUSINESSES IN FRANCE

There are more than 4,400 (24% of projects), decision-making half of all jobs (49%). There were subsidiaries of American businesses centers (22%), business services also 25 projects in the healthcare established in France, where they (18%) and R&D/engineering (18%). Of sector generating nearly 600 jobs. employ nearly 400,000 people. note was that more than half (53%) of The United States was the leading jobs generated in France in business investing country and source of A total of 204 investments were services were of American origin. employment in this sector. recorded from the United States in France in 2020, creating or American investments took place Ile de France (Paris region) attracted maintaining 8,286 jobs, 5% more than in a wide array of sectors. Among nearly one-third of all investments in 2019. the most popular, the IT services from the United States, followed by (25% of projects) and the consulting Hauts de France (12%) and Auvergne- Investments by American firms were and business services (13%) sectors Rhône-Alpes (12%). made primarily in manufacturing together accounted for nearly

FRANCE’S POSITION IN EUROPE2 CHANGE IN PROJECTS AND JOBS

In 2020, France was the second leading 300 9,000 8,286 destination of job-creating investment 6,802 7,047 7,886 225 6,274 6,750 from the United States in Europe, 230 attracting 18% of American projects, 150 232 238 204 4,500 preceded by the United Kingdom (21%) 75 182 2,250 but ahead of Germany (13%). 0 0 2016 2017 2018 2019 2020 Projects Jobs

BREAKDOWN OF PROJECTS TOP 3 HOST BY BUSINESS ACTIVITY

REGIONS Number Share Business activity Projects Jobs Projects Jobs

Decision-making centers 44 429 22% 5%

Logistics 17 915 8% 11%

Ile de France (66 projects) Retail outlets 12 393 6% 5% Hauts de France (24 projects) Auvergne-Rhône-Alpes (24 projects) Manufacturing 48 1,679 24% 20%

R&D, engineering 37 807 18% 10%

Business services 37 3,923 18% 47%

Consumer services 9 140 4% 2% TOP 5 AMERICAN BUSINESSES BY EMPLOYMENT IN FRANCE Total 204 8,286 100% 100%

Workforce Business in France

WALT DISNEY CO. 16,000+ TOP 5 BUSINESS SECTORS Hospitality, tourism and restaurants BY PROJECTS GENERAL ELECTRIC CO. 15,000+ Machinery and mechanical equipment Number Share Business sector XPO LOGISTICS, INC. Projects Jobs Projects Jobs 12,000+ Transport, storage IT services 52 1,548 25% 19% MCDONALD’S CORP. 10,000 - Hospitality, tourism and restaurants 15,000 Consulting and business services 27 2,515 13% 30% FEDEX CORP. 9,000 Transport, storage Medical equipment and devices 15 376 7% 5% MANPOWER INC. 8,000 Consulting and business services Textiles and accessories 12 244 6% 3%

AMAZON.COM 7,000 Chemicals, plastics 11 301 5% 4% Transport, storage

Source: Orbis, Bureau Van Dijk

2 Business France, Europe Observatory Source: Annual Report 2020, Business France

133 6 Appendices

136 JOB-CREATING PHYSICAL INVESTMENT SELECTION CRITERIA 140 BUSINESS FRANCE BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

JOB-CREATING PHYSICAL INVESTMENT SELECTION CRITERIA The Annual Report on Foreign Investment in France is a way of analyzing foreign investment projects and their contribution to the French economy

Established in 1993 in partnership with France’s regional economic development agencies, the Annual Report provides a summary of all foreign investment projects creating sustainable employment in France, listing confirmed projects and detailing the number of jobs that each project generates. It provides detailed statistical analysis by business sector, business activity, investment type, source country by the notion of a company’s genuine registered and host region. Data concerning the amounts involved office under French law, which is established through in specific investment projects are not always made jurisprudence. This concept involves determining available by companies, and so form no part of the place where, inter alia, meetings of the company’s the analysis. management bodies are held, strategic decisions are taken, and key contracts are signed. Accordingly, and in line with European Union guidelines, COMPANY NATIONALITY the French National Institute for Statistics and Economic Studies (INSEE) considers that the controlling country Initial analysis of company nationality depends on of a multinational corporation is defined by the country the location of its registered office, which determines in which the entity possessing operational control is the jurisdiction that applies. This principle is refined established and where financial information concerning all of its subsidiaries is usually consolidated.

136 6 . APPENDICES

PROJECT For certain firms, this entity may not necessarily COMPLETION RATE correspond to the head of the group or parent company. Under this definition, the nationality of the firm’s leading Reports and rankings published by investment promotion shareholders has no bearing on that which is assigned agencies provide a list of investment decisions (or public to the firm as a whole. announcements for some consultants). Business France The initial analysis is refined by the notion of control over conducted a retrospective study in 2010 of projects the activities of the firm’s subsidiaries. The statistical in the 2007 Annual Report to analyze the impact criterion chosen for data collection is majority control of challenging economic conditions on the project (ownership of more than 50% of the firm’s shares with completion rate. In the study sample (320 projects), voting rights). It is assumed that share ownership of more almost 90% of the decisions recorded in 2007 had been than 50% confers genuine control over the firm, even executed. The completion rate for takeovers of ailing though in certain cases control may be exercised with companies was 98%. less than this amount. Concurrently, the study showed that the distinction of being foreign did not protect companies investing in France against the risks inherent in starting a business JOB NUMBERS and the economic climate. As such, 20% of the investment projects reported in 2007 experienced problems, and in some cases ceased trading altogether. The Annual Report is based on the publicly announced number of jobs to be created or maintained over the next three years, which is the approximate time DISPARITIES BETWEEN THE DATA frame that companies use when planning investments. PUBLISHED BY BUSINESS FRANCE, FDI MARKETS AND EY

DATA GATHERING The way in which information is recorded in the Annual AND VALIDATION Report makes it a uniquely reliable database offering unrivalled coverage of recorded investments compared Three methods are used to select the projects with publications by private consulting firms, such as in the Annual Report: IBM/PLI, fDi Markets and EY. / An analysis of the competitive environment by Differences in scope and calculation methods – such as consulting observatories of globally mobile investment the exclusion of retail outlets, the hotel sector, takeovers that track public announcements of job-creating of ailing sites and expansions following takeovers – foreign investments in France and Europe; offer a partial explanation of the significant disparities observed between these different data sets. / Projects detected by Business France, primarily through its network of international offices; However, beyond such methodological differences, most / Data collected by France’s regional economic disparities arise from the fact that numerous investment development agencies for their areas through contact projects receive no coverage by way of a press article with economic stakeholders and foreign investors.. or press release. These projects therefore remain undetected by the business intelligence tools used by Based on these sources, the Annual Report is compiled private consulting firms. However, Business France has using a cross-validation process of each identified project access to this information through data shared by between Business France, France’s regional economic its overseas offices and partners in France’s regions. development agencies and other regional partners.

137 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

The classification by business sector is based on a 26-item classification compatible with that used by INVESTMENT TYPES the French National Institute for Statistics and Economic RECORDED IN THE Studies INSEE (NAF 700, revision 2), but which has been adapted to the specificities of the international ANNUAL REPORT investment market.

/ Creations 1 Jobs created at a new site. Projects are categorized according to the type of goods or services that they contribute to designing, producing / Expansions Jobs created at a site already occupied or distributing. These classifications evolve over time by the company. to take new market trends into account. /Takeovers of ailing French companies2 Jobs maintained following the takeover by a foreign Classification by business sector investor of an ailing company resident in France. The company’s difficulties must be proven by either: / Aerospace, naval and railway equipment / Agri-food, agriculture and fishing - Ongoing bankruptcy or reorganization proceedings / Automotive industry brought before the Commercial Court; / Chemicals, plastics / Construction, building materials - Financial difficulties with the tax and social security / Consulting, engineering and business services collection authorities; / Consumer electronics / Education and training - Short-term risk of site closure (i.e. no successor). / Electrical, electronic, IT equipment / Electronic components / Expansions following takeovers: Jobs created or / Energy, recycling, other concessions maintained by an expansion following the takeover / Financial services, banking and insurance by a foreign investor of an ailing company resident / Furnishings, household goods in France. / Glass, ceramics, minerals, wood, paper / Hospitality, tourism and restaurants / Expansions following buyouts: Jobs created / Machinery and mechanical equipment following the takeover by a foreign investor of / Media, publishing a company resident in France with no financial / Medical/surgical equipment and devices difficulties. The only jobs counted in the Annual / Metals, metalworking Report are those arising from the expansion. / Other services / Perfumes, cosmetics 1 At regional level, site creations by any firm in any sector / Pharmaceuticals and biotechnologies are only counted if they do not involve net job destruction. / Real estate and business offices 2 Takeovers of ailing sites may result in regroupings or site / Software and IT services transfers. The Annual Report records the jobs maintained by these transfers. / Sporting, recreative activities and leisure / Telecoms, internet service providers / Textiles, industrial textiles, clothing and accessories / Transport, storage / Wholesale and retail

Project business activity In order to operate effectively, companies rely on various types of business activity. CLASSIFICATIONS USED Aside from manufacturing are tertiary IN THE ANNUAL REPORT activities such as business services and consumer services, logistics, retail outlets, headquarters, decision- making centers, and R&D/engineering. The classifications used are designed A specific index is used in the report to categorize to reflect the characteristics of the projects by the business activity they fulfill. international investment market

138 6 . APPENDICES

PROJECT BUSINESS ACTIVITY

1 R&D, ENGINEERING Site whose purpose is to advance scientific knowledge, perfect or apply new technologies or products.

2 DECISION-MAKING CENTERS First-time investments in France and French headquarters.

Global or European Headquarters. 3 HEADQUARTERS An autonomous site that is responsible for ensuring administrative support activities within the company (human resources, accounting, etc.).

Site which combines human resources, capital, goods and services to manufacture goods 4 MANUFACTURING or provide services.

5 LOGISTICS Site which contributes to the delivery and storage of goods.

Site whose purpose is to provide market services to businesses (consulting, marketing, BUSINESS SERVICES 6 banking services, data centers, etc.)

7 CONSUMER SERVICES Site whose main purpose is to sell products and services to consumers (hotels, banking services).

8 RETAIL OUTLETS All sites where goods are sold.

PRODUCING THE ANNUAL REPORT THE FOLLOWING Sources ARE NOT INCLUDED IN / Business France offices THE ANNUAL REPORT: / Regional economic development agencies / France Observatory / Temporary or seasonal jobs. Cross-validation of data / Jobs transferred to another location when a Data processed: company relocates within France as a result of / Verification that project meets the Report’s reorganizing, regrouping or restructuring its criteria business activities. / Additional information for some projects / Diplomatic missions, unless they are internationally Annual Report mobile (an international organization’s registered Regional economic development agencies office, for example). and Business France validate projects

139 BUSINESS FRANCE - ANNUAL REPORT 2020 FOREIGN INVESTMENT IN FRANCE

BUSINESS FRANCE Connect – Fast-Track – Succeed

" Founded to serve companies and the nation as a whole, Business France sends out a loud, clear message about the open Business France supports the international development of the French economy, advancing and promoting nature of the French economy. business throughout France, and by French companies abroad. Our agency operates where it It is a key player in fostering competitiveness, growth and counts, pulling out all the stops employment in France, offering clear and efficient access to all corporate development stakeholders and services for all companies, irrespective of their size, sector and for businesses to grow nationality. and succeed, both in France From exports to investments through to multinational partnerships, from identifying contacts and making and abroad.” connections to providing peace of mind, Business France supports French and multinational companies OUR MISSIONS throughout the lifetime of their projects, and is driven by an efficient, result-oriented working culture. / Supporting the international development of Thanks to its extensive network and dynamic team of businesses set up in France – mid-size companies 1,500 professionals, both in France and in 70 countries and SMEs in particular – and their exports to foreign throughout the world, Business France is involved markets. not only in getting projects off the ground but also in / Promoting and facilitating foreign investment in following up and ensuring their long-term success. France. / Promoting France’s companies, business image and With specialisms in different areas of expertise and nationwide attractiveness as an investment location. business sectors, Business France personnel are highly / Running, promoting and developing the VIE committed and passionate about their work, serving not international internship program, thereby enhancing only individual companies but France as a whole. the training received by young French professionals through international experience.

140 6 . APPENDICES

OUR COMMITMENT interface for all the data you need to deliver your project. From the moment you first make contact, you can ask Business France to serve as your single port of call. Being able to count on the people supporting and guiding you on the ground to bring your plans to fruition is key to the success of any project. This is the Calling upon Business France role played by Business France, whose personnel will do gives you access to: all they can to help make your ideas reality. / The number-one provider of customized services for French and foreign businesses, supporting them and Business France provides end-to-end support and can the success of their international projects from start to stand by you every step of the way, offering legal and tax finish. advice, help with administrative formalities, and guidance in choosing a market or investment location. / Objective and detailed market analysis, macroeconomic Business France and its partners have a wide array of analysis, benchmarks, observatories, maps, etc. We resources at their disposal. We can provide you with a provide you with all the tools you need to make the best dedicated team to harness all the necessary expertise choice. and solutions to build your international projects stage / Support and expertise from a partner network of by stage and oversee their development in the long term. international development experts and a fully-fledged Standing firmly by your side, Business France’s community of stakeholders, including chambers of comprehensive network, spanning 70 of the world’s commerce in France and abroad, Bpifrance, Coface largest countries, can get to the heart of your and France’s foreign trade advisors (CCEF), as well as requirements. You can also depend on a focused banks, auditing firms, expert consultants, transport personal contact among the personnel who staff companies, lawyers, etc. Business France’s 92 offices worldwide.

OUR PRIORITY

Simplifying and fast-tracking project delivery Business France offers a holistic approach to your international business project, from decision-making and market analysis to successful completion. We can provide advice in line with your project’s strategic, sector-based and human specificities. Business France is ready to be your partner of choice, an

141 Publication director: Christophe Lecourtier (CEO) Chief Editor: Sylvie Montout (Chief Economist) Contributors: Louise Cassagnes, Habib Karamoko, Manuel Marcias, (Economists) Translation : David Williams, Peter Stewart (English Language Editors) Design and layout: Guillaume du Rivau, Yoann Marcel – March 2021

Business France is the national agency supporting the international development of the French economy.

Responsible for fostering export growth by French businesses, as well as promoting and facilitating international investment in France.

It promotes France’s companies, business image and nationwide attractiveness as an investment location, and also runs the VIE international internship program.

Business France has 1,500 personnel, both in France and in 55 countries throughout the world, who work with a network of partners.

Since January 2019, as part of the reform of the state support system for exports, Business France has given private partners responsibility for supporting French SMEs and mid-size companies in the following markets: Belgium, Hungary, Morocco, Norway, the Philippines and Singapore.

For further information, please visit: www.businessfrance.fr

Business France 77, boulevard Saint-Jacques 75680 Paris Cedex 14 Tel.: +33 1 40 73 30 00