Collaborating Locally to Compete Globally 2019 Annual Report Table of Contents Shareholder Representatives 3 letter from the Shareholder Chair 4 Charting the Course 5 Focus 6 priority 1: Act as a Catalyst for Foreign Direct Investment and Trade 7 Foreign Direct Investment Action Plan 8 Site Selector Strategy 9 partner Network 10 polykar Investment in the Metropolitan Region – A Case Study in Success John Stewart Brian Holden Ray Ralph 12 priority 2 – Increase Awareness and Improve Perceptions Mayor Councillor Mayor 13 Young, Educated, Growing, Connected City of Beaumont Town of Bon Accord Town of Devon 13 Raising Awareness of the Edmonton Metropolitan Region and Our Priority Sectors Letter from the 14 priority 3 – Leverage Partnerships to Enhance Success 17 priority 4 – Strive for Organizational Excellence 17 Financials Shareholder Chair 18 our Board of Directors 18 our Staff Collaborating Locally Bon Accord to Compete Globally STURGEON COUNTY Gale Katchur Gibbons Two years ago, the political and business leaders of Don Iveson Amber Harris Mayor Morinville Mayor Councillor our region came together with a shared belief that, by City of Fort City of Edmonton Town of Gibbons working together, we would see economic growth and Saskatchewan success. By combining the best assets from each of St. Albert Fort our communities, we would create a compelling value Saskatchewan proposition and, by telling our collective story together, Spruce Grove it would be loud enough for the world to hear.

Stony Plain It is in this spirit that the 15 municipalities founded Edmonton STRATHCONA PARKLAND COUNTY Edmonton Global. COUNTY Nicole Bob Young Tanni Doblanko Boutestein Mayor Mayor The purpose of Edmonton Global is to radically Councillor City of Leduc Leduc County transform and grow the economy of the Edmonton Town of Morinville Beaumont Metropolitan Region. We do this through attracting Devon Leduc foreign direct investment, enticing international companies to locate here, and supporting local LEDUC COUNTY companies in doing business in the global economy.

The global economy is going through a major transformation driving demands in agri-business, energy, manufacturing, health, and technology. Rod Shaigec Stuart Houston Cathy Heron Mayor Mayor Mayor The Edmonton Metropolitan Region is well-positioned Parkland County City of Spruce Grove City of St. Albert to meet those demands, but only if we work together. Join us in building the future Edmonton Metropolitan MILLION Region – what it looks like is up to all of us. FIFTH 1.43 PEOPLE $105B GDP Sincerely, MOST PROSPEROUS (30% OF ALBERTA’S GDP) REGION IN Stuart Houston 725,000 JOBS Chair, Edmonton Global Shareholders Mayor, City of Spruce Grove William Choy Rod Frank Alanna Hnatiw Mayor Mayor Mayor Town of Stony Plain Strathcona County Sturgeon County

2019 ANNUAL REPORT // 3 Charting the Course Focus

The Edmonton Metropolitan Region has a compelling and unique value proposition that is not only nationally A successful foreign direct investment attraction and trade strategy starts with focus. Edmonton Global used distinctive – it’s globally relevant. We don’t want to be the next Silicon Valley, Singapore, or London. We want a data-driven approach to identify sectors where the Edmonton Metropolitan Region has a clear competitive to build on what’s uniquely us: an incredible quality of life, a welcoming and diverse community, core sector advantage and then benchmarked our competitiveness against other regions globally. Edmonton Global’s strengths and globally recognized expertise in artificial intelligence and machine learning, combined with our strategy targets investment and trade opportunities based on our region’s core strengths in energy and clean unparalleled access to global markets enabled by our region’s integrated supply chain. After all, why try to be technology, health and life sciences, manufacturing and advanced manufacturing, and food and agriculture. someone else when what’s happening here can be the envy of the world? The Edmonton Metropolitan Region isn’t at the centre of things – it’s closer. One of our biggest strengths is our Edmonton Global set out to do things differently, to learn from the best examples of economic integrated supply chain, linking air, rail, and road networks under our Inland Port. Port Alberta capitalizes on our development around the world, to use data and market intelligence, and to chart a unique strengths in transportation, logistics and global connectedness through attributes of our Inland Port’s Foreign course that is compelling to others. Trade Zone. When opportunities in these sectors are connected to our region’s global strengths in technology and artificial The result: the creation of the Edmonton Metropolitan Region’s first comprehensive economic development intelligence – we can compete to win. strategy: The Edmonton Global Strategic Plan 2018-2023.

Edmonton Global’s Priorities 2018-2023 Focus Sectors

Act as a catalyst Increase awareness and for foreign direct improve perceptions 1investment and trade 2 Manufacturing Health & Food & Energy & Clean & Advanced Life Sciences Agriculture Technology Manufacturing Strive for Leverage partnerships Organizational to enhance success Technology & INNOVATION 3 4 Excellence

4 // COLLABORATING LOCALLY TO COMPETE GLOBALLY 2019 ANNUAL REPORT // 5 Priority 1 – Act as a catalyst for Foreign Direct Investment Action Plan foreign direct investment and trade Based on research, market intelligence, and consultation with partners, Edmonton Global developed the Edmonton Metropolitan Region’s first ever Foreign Direct Investment (FDI) Action Plan in August 2019. Implementation began immediately throughout the Fall and Winter of 2019 and Edmonton Global hosted OBJECTIVE: To pursue FDI and Trade opportunities in focus several foreign investors and international site selectors with the support of partner organizations, sectors and markets where growth potential exists for municipalities, and businesses. the Edmonton Metropolitan Region

Firm level Existing foreign Site Selector Partner prospecting Global Competitiveness investors Strategy Network Focused targeting on Strengthen awareness Develop data driven Build strong and trusted 1 international companies Competition for investment is fierce. To better and relationships with relationships with these relationships with Canada’s BENCHMARKING THE EDMONTON whose interests align and understand the Edmonton Metropolitan Region’s International companies key intermediaries working and Alberta’s international METRO REGION GLOBALLY have the potential to unlock competitive position globally, Edmonton Global within the region who have on behalf of international offices and staff working CONFERENCE BOARD OF CANADA additional opportunity a likelihood of additional companies looking to to increase investment commissioned the Conference Board of Canada within a sector’s investment. expand internationally. into Canada. to compare our region with 21 other jurisdictions value chain. Economy Competitiveness Social 19th / 22 12th / 22 5th / 22 across the world in three categories: economy, competitiveness, and social.

D C A The results showed we have some work to GRADE GRADE GRADE do, especially in the areas of economy and 2019 Inbound and Outbound Investment Attraction Activity competitiveness.

Going Global, A Guide to Competing in a Globalized Economy

In the global race for investment, the Edmonton Metropolitan Region is ICELAND NETHERLANDS being outpaced by lesser competitors because successive governments in Canada and Alberta have inherited 20th century policies, institutions SEATTLE UNITED KINGDOM JAPAN and systems trying to compete in a 21st century global economy. Our governments need to be open to new thinking and new ways of doing CALIFORNIA CHARLESTON SOUTH KOREA things. We cannot afford complacency in this new economic era. CHINA MEXICO

Edmonton Global worked closely with over 150 organizations across the INDIA HONG KONG region, including businesses, non-profit associations, and post-secondary

institutions, to develop research-driven solutions to our competitiveness SINGAPORE challenges. The outcome was a document called Going Global, a guide to

competing in a globalized economy, which provides 20 recommendations BRAZIL across four themes that, when implemented, will help all Canadian communities and businesses compete to win in today’s global economy.

INBOUND OUTBOUND INVESTOR PROSPECTING engaged with over 150 regional businesses and organizationS TRIPS TRIPS 9 12

6 // COLLABORATING LOCALLY TO COMPETE GLOBALLY 2019 ANNUAL REPORT // 7 Site Selector Strategy Partner Network

Site Selectors work directly with firms around the world looking to Building collaborative relationships with Canada’s and Alberta’s offices around the world are central to activating expand into new markets. While many of the world’s largest firms this network of partners. They are often the first point of access for companies around the world looking to have in-house expertise to help guide expansion plans, it is estimated expand. We know from experience that these teams can be powerful extensions of a community’s outreach. that between 25 and 30 percent of international expansions work directly In 2019, we worked closely with them to ensure they have the resources and knowledge to put the Edmonton with a site selector. This represents tens of billions of dollars in investment 25-30% Metropolitan Region in front of the world’s investors. of international expansions work each year. Raising the profile of the Edmonton Metropolitan Region among directly with a site selector international Site Selectors will continue to be a major focus in 2020 and beyond.

“The Edmonton Metropolitan Region offers real and sustainable opportunities for Dutch agri-food companies to invest. Economic Developers Association of Especially in sub sectors like vegetable Canada (EDAC) National Conference protein and hemp processing. The visit Three site selectors attended the Economic Developers of the Edmonton Global vice-president Association of Canada (EDAC) national conference and to the Netherlands contributed without were taken on an exclusive tour of the region. The 2019 doubt to the awareness of Dutch annual conference was held in Edmonton thanks to companies as was demonstrated advocacy efforts of municipal economic development during several company visits and officers from the region. management meetings.” – Mr. Anton Graumans, CEO of Agrix @KLGerritsGlobal - An incredible gathering of people working to make things happen on plant protein between Canada and the Netherlands. Thank you to the Consulate General of the Netherlands in for making it happen! Canadian FDI Forum

In 2019, the Canadian Foreign Direct Investment (FDI) Forum was hosted in Edmonton and attracted nine “Your region is extremely well-represented, national and international site selectors. Similar to the both by the enthusiastic and diligent work EDAC national conference, this event took place thanks of [the] team at Edmonton Global, but to the leadership of municipal economic development also by the innovative work being done at officers from the region. the University of Alberta, TEC Edmonton, and the associated institutions. We were NAIT’s Productivity and Innovation Centre (PIC) is scalable for commercializing projects and specialized equipment that enables impressed also by the capabilities of companies to trial solutions at scale prior to implementing in the field. Edmonton International Airport.” – Potential Edmonton Metropolitan Region Investor “I had no idea all of this was happening in

@KLGerritsGlobal of @EdmontonGlobal meeting Japanese the Edmonton Region. I’m very glad I came.” investors Osaka to pitch #FDI into Edmonton at the Canada Investment & Innovation Forum in Osaka. #CanadainJapan @ConsiderCanada – International Site Selector based in Atlanta @TCS_SDC @CanEmbJapan

(photo from Tawil Sagaf, @TawilSagaf)

8 // COLLABORATING LOCALLY TO COMPETE GLOBALLY 2019 ANNUAL REPORT // 9 Polykar Investment in the Edmonton Metropolitan Region – A Case Study in Success

With the help and support of Edmonton Global, Polykar, a leading Canadian manufacturer of flexible packaging including polyethylene film, certified compostable bags, garbage bags, and food and industrial grade liners, made a final investment decision to construct a new state-of-the-art plant in the Edmonton Metropolitan Region.

This second facility will add significant production capacity (30 million pounds) to all of Polykar’s product lines and expand the company’s 40 reach and expertise to serve the retail, FULL-TIME PERMANENT commercial and institutional sectors $20initial inveMstment • 60,000 ft2 building – will be the first • A significant amount of capital and across Western . ($10M facility and construction, $10M equipment) JOBS Building in the newly developed operations expenditures including Remington Discovery Park in Feedstock is expected to stay within South Edmonton the province

• Majority of construction labour • A state-of-the-art production facility, “This potential $20 million “The development and current assets within the region, Sourced locally with significant automation total investment will not like those in Sturgeon County’s portion of Alberta’s only create dozens of Industrial Heartland are proof that the strength of our • Collaboration with NAIT and other • Majority of the workforce will include jobs during and after primary plastics and chemical manufacturing continue technical schools on process and Highly-skilled workers including construction, but also to drive growth. As a proud partner of Edmonton Global, productivity efficiencies Robotics engineers keep more of the value we welcome Polykar and look forward to supporting, added of local polyethylene and helping them thrive in the region.” production in Alberta.” - Alanna Hnatiw, Mayor, Sturgeon County - Tanya Fir, Minister of “This is an important milestone for Economic Development, Polykar and we look to the future with Trade and Tourism confidence as we continue to develop innovative and sustainable products. We are excited to finalize the plans “Polykar will be a strong addition to the Edmonton Metropolitan for our new manufacturing facility Region’s manufacturing sector. This investment highlights the in Edmonton in the coming months and bring ourselves closer to our wealth of opportunity that exists here for companies looking to valued suppliers and customers access talent and reach global markets. Our region is home to in Western Canada.” the entire advanced materials and plastics value chain.” – Amir Karim, President & CEO, Polykar – Don Iveson, Mayor, City of Edmonton

10 // COLLABORATING LOCALLY TO COMPETE GLOBALLY 2019 ANNUAL REPORT // 11 Priority 2 – Increase awareness Young, Educated, Growing, Connected and improve perceptions The modern Edmonton Metropolitan region is Young, Educated, and Growing. And our northern location? It’s a significant competitive advantage.

OBJECTIVE: To develop a regional brand for economic development On June 20, 2019, a new regional narrative was launched to the world. It included a cohesive and compelling story about the and tell the story of the Edmonton Metropolitan Region in Edmonton Metropolitan Region, its industries and economic assets, as well as a spotlight on the region’s talent, innovation, Canada and around the world and quality of life. Edmonton Global’s new website includes regional datasets, tax and demographic data sets, and investor- focused information on our priority sectors.

At Edmonton Global, we believe that when our region shares stories of opportunity, we are worthy of the world’s attention. It’s about collaborating locally to compete globally. Crafting a regional narrative and harmonizing our voices were critical first 2steps in 2019.

Crafting and Launching a Regional Narrative

In early 2019, Edmonton Global worked with an international company with expertise in economic development, site selection, global marketing, and media to help develop deeper understanding of the region’s journey to increased prosperity. A survey was conducted with a group of international site selectors asking a number of questions about their perceptions of the Edmonton Metropolitan Region.

Eighty-two percent of respondents had never considered the Edmonton Metropolitan Region in a site selection process – not Raising Awareness of the Edmonton once. Those who had some awareness of our region, most associated us with “remote, cold, and oil & gas.” Metropolitan Region and Our Priority Sectors These are people who spend their careers working directly EdmontonGlobal.ca HAVE YOU EVER CONSIDERED with companies on finding the best places in the world to THE EDMONTON locate their next investment. During the launch of the regional narrative, edmontonglobal.ca METROPOLITAN REGION? went live to showcase detailed information on focus sectors, SITE SELECTOR SURVEY In researching existing awareness of our region, we’ve emerging industries, and data on the region in six languages. learned that the misconceptions of “cold, remote, and disconnected” aren’t only held by people outside of Canada. Many business and government leaders across Canada INCREASE IN WEBSITE YES NO also have very limited knowledge about the Edmonton TRAFFIC BETWEEN JUNE 18% 82% Metropolitan Region. 61% AND DECEMBER 2019 Edmonton Global set out to change this with the creation of a new brand for Edmonton Global, a unified regional narrative,

Site selectors (an effective proxy for investment decision makers and platforms to showcase the region’s value proposition to around the world) international audiences. Social Media Monthly Global Briefing

Activating Edmonton Global on social media platforms is an Through a partnership with local digital publisher, Taproot, a important part of building awareness and providing efficient monthly Global Briefing specifically targeting the international Collaboration, Focus, and Innovation – Building the Brand of Edmonton Global channels for the messages to be spread around the world. investment community, site selectors, and both Canada’s and Alberta’s The purpose of Edmonton Global is to radically transform and international trade grow the economy of the Edmonton Metropolitan Region. This staff is curated purpose statement is the core of our brand and represents and distributed the investment interests of the Edmonton Metropolitan each month. This Region. It serves to inspire involvement and motivate action. highlights the 148% 274% economic activity Our mandate is clear – we exist to radically transform INCREASE IN TWITTER INCREASE IN LINKEDIN across our region and grow the economy of the Edmonton Metropolitan Region by attracting foreign direct investment and supporting local FOLLOWERS BETWEEN FOLLOWERS BETWEEN with a focus on our companies trade and export with the world. JAN – DEC 2019 JAN – DEC 2019 sector strategy.

12 // COLLABORATING LOCALLY TO COMPETE GLOBALLY 2019 ANNUAL REPORT // 13 In partnership with Edmonton International Airport (EIA) and the Province of Alberta’s Ministry of Economic Priority 3 – Leverage partnerships Development, Trade, and Tourism, Edmonton Global participated in an investor focused trip to Asia in the Fall of 2019. Two Inbound investor visits have since been confirmed later 2020 as a direct result of this trip to Asia and to enhance success many others have occurred, with others in consideration for later 2020.

OBJECTIVE: To align with economic development, institutional and business partners to enable economic development opportunities.

In order to radically transform the economy of the It is only through leveraging the will, support, and active 3Edmonton Metropolitan Region, the region needed involvement of the business community, schools and to radically transform its approach to economic post-secondary institutions, professional and community development, which starts with collaboration. organizations, and political and government partners that Our success is interconnected, and it will require Edmonton Global will succeed in its mandate. MOU signing with Canadian Chamber Partner meetings with Hong Kong AI Hong Kong Investment Roundtable the strength of many hands and the harmonization Pearl River Delta (CanCham PRD) of voices to drive the kind of transformational growth Edmonton Global worked in 2019 to activate these our region seeks. partnerships across the region and around the world. CANCHAM Memorandum HKAI MOU Hong Kong

of Understanding (MOU) Through an MOU signed by Hong Investment Roundtable Signing an MOU between Edmonton Kong AI (HKAI) and the Alberta Edmonton Global gave a Economic Development Network Global and Canadian Chamber Machine Intelligence Institute presentation to 30 investors Pearl River Delta (CanCham (AMII) in early 2019, this trip from Hong Kong and across The Economic Development Network is made up PRD) represents a step forward further increased collaboration Asia focused on the current of economic development officers representing all for greater involvement and between research and industry in economic climate and investment Edmonton Metropolitan Region member municipalities opportunity for Edmonton Artificial Intelligence (AI) across opportunities in the Edmonton and other economic development agencies and Metropolitan Region and both locations. The MOU enables Metropolitan Region. The group’s organizations who share the core belief that we can expansion of commerce expansion of companies in Hong discussion of the Edmonton collaborate locally to compete globally. and trade into new markets. Kong looking to partner with AMII Metropolitan Region focused on: and grow in Alberta and provides In 2019, we collaboratively focused on: The CanCham PRD implements opportunities for Alberta AI • Talent a model for business expansion companies to gain access to • Continual growth and investment that is more inclusive for Chinese capital in Asia markets. • Sectors for investment: Generating the companies and will provide greater agriculture, tech, AI, research principles that networks for both Canadian HKAI Lab is a non-profit platform and development Training and awareness guide involvement, companies looking to expand for bringing together academics, • Regional value proposition (immigration laws, Peer mentoring/ and protocols that into the Pearl River Delta, as well scientists, and entrepreneurs • Opportunities for partnership industry value best practice sharing provide a framework as Chinese companies looking in AI who are passionate about • Visiting the Edmonton propositions, FDI, for collaboration, lead- to expand into the Edmonton innovation and creating a Metropolitan Region community insights, etc.) sharing, and moving Metropolitan Region. better future. forward together This event was hosted by 1 2 3 Mr. Jeff Nankivell – Consul General of Canada in Hong Kong and Invest Alberta.

14 // COLLABORATING LOCALLY TO COMPETE GLOBALLY 2019 ANNUAL REPORT // 15 Building a Foundation for Collaboration Priority 4 – Strive for Edmonton Global has successfully instituted bilateral protocols with Health City and Alberta’s Industrial Heartland Association (AIHA), and the model pioneered here is being adopted by others across Canada led by Invest in organizational excellence Canada and Consider Canada Cities Alliance (CCCA). OBJECTIVE: To establish Edmonton Global as a top-performing Edmonton Global’s CEO, Malcolm Bruce, was appointed the 2020 Board Chair of CCCA in 2019 in part due to Edmonton Global’s leadership on implementing protocols across the Edmonton Metropolitan Region and the regional economic development corporation and an employer desire that this could also be applied throughout CCCA. of choice.

Edmonton Global’s human resource and financial responsibility are paramount to the success of the organization and its ability to deliver its regional mandate. To solidify Edmonton Global’s future and ensure efficient operations 4and long-term professional growth, a team of industry professionals with diverse expertise was formed in 2019. Provincial and federal funding was also secured, and a system of performance measurement and improvement REGIONAL INTERNATIONAL was developed and implemented based on global best practices. 2 PARTNER 2 PARTNER PROTOCOLS SIGNED PROTOCOLS SIGNED Financials Health City & AIHA Statement of Financial Position 2019 2018

Assets Current Assets $ 663,705 $ 507,555 Capital Assets $ 151,046 $ 192,181 Total Assets $ 814,751 $ 699,736 Government Partnerships Liabilities investor Current Liabilities $ 91,504 $ 275,318 As a member of Consider Canada City Alliance (CCCA), Total Liabilities $ 91,504 $ 275,318 visits Edmonton Global is part of a pan-national collaboration Share Capital and Net Assets hosted in between 13 of Canada’s largest municipal regions to Share Capital 150 150 build a sustainable and globally competitive national Net Assets $ 723,096 $ 424,268 11 economy built upon the collective strength of each $ 723,246 $ 424,418 collaboration member’s ecosystem. The CCCA works with national with regional and international networks of partners to make Canada Total Liabilities, Share Capital and Net Assets $ 814,751 $ 699,736 the preferred location for foreign investment and trade. partners Through this collaboration, Edmonton Global was invited to participate in international investor-focused Summary Statement of Operations 2019 2018 missions to Japan and South America. Annual Shareholder Contributions $ 2,000,000 $ 1,000,000 The Province of Alberta and the Government of Other Revenue (Government, Regional Partnerships) $ 2,694,716 $ 3,073,160 Alberta continue to be valued partners for the $ 4,694,716 $ 4,073,160 Edmonton Metropolitan Region and for Edmonton Operating & Program Expenses $ 4,394,984 $ 3,637,655 Global. Their continued financial support, especially Excess of revenue over expenses before other items $ 299,732 $ 435,505 in the foundational years, has been instrumental to Foreign exchange loss ($ 904) - its success. Excess of revenue over expenses $ 298,828 $ 435,505

Net assets, beginning of year, as restated $ 424,268 $ (11,237)

Net assets, end of year $ 723,096 $ 424,268

16 // COLLABORATING LOCALLY TO COMPETE GLOBALLY 2019 ANNUAL REPORT // 17 Our Board of Directors “Every business in every sector across this region, whether Traci Bednard Stanford Blade in real estate, legal, banking, John Day Darren Rawson Board Member Board Member construction, manufacturing Board Chair Vice Chair of the Board Vice President Digital and Dean of the Faculty of Owner / General Manager - President of Corporate Communications Agricultural, Life and or even post-secondary, all have John Day Developments Draw Consulting Ltd. for Edmonton Environmental Sciences one thing in common: our success International Airport (University of Alberta) is interconnected. We need to be the architects of the kind of economic future we want for our community and stop waiting for someone else to take the lead. It’s time that government, non- profits, and businesses put Sheldon Hudson Cory Janssen Bernie Kollman Elan MacDonald Board Member Board Member Board Member Board Member our collective weight behind a Founder of Galt Capital, a Senior Vice President, President of Forum Chair of MacKay private investment firm, and National Client Development common goal for the benefit of Al-Terra Engineering CEO Forums CEO of AltaML at Global Public Affairs us all. Edmonton Global is the vehicle – each of us are the fuel.”

- John Day, Chair, Board of Directors, Edmonton Global The purpose of Edmonton Global

Jeffrey is to radically transform and Jason Edy Wong Sundquist Board Member Randhawa Gail Chair of Finance & Associate Dean, Chair of Governance Stepanik-Keber Audit Committee International Alberta School grow the economy of the Edmonton & HR Committee Board Member Chief Executive Officer at of Business Marketing, Founder and President of Business Advisor EDC Environmental Group Business Economics, and Randhawa Consulting Ltd. of Companies Law (University of Alberta) Metropolitan Region. Our Staff “By combining our strengths, leveraging partnerships and increasing our global competitiveness, we will usher in a new era of economic prosperity for the Edmonton Metropolitan Region for generations to come.” Lynette Karra-Lee - Malcolm Bruce, CEO, Malcolm Bruce Tremblay Gerrits Amanda Borman Edmonton Global CEO Vice President, Vice President, Office Manager Strategy & Innovation Trade & Investment

Alyssa Amanpreet Chris McLeod Tomas Nilsson Brent Jensen Perry Eddy Tintinaglia Bhatti Director, Marketing Director, Research & Senior Manager, Manager, Business & Communications Market Intelligence Business Development Development Manager, Strategic Business Development Initiatives Associate

18 // COLLABORATING LOCALLY TO COMPETE GLOBALLY edmontonglobal.ca