The International Development of the French Economy Foreign Investment

Investments

2017

The international development of the French economy Foreign investment

2017 4-5 FOREWORD

6-7 2017 SUMMARY 1 Introduction

10 INTERNATIONAL CONTEXT Contents 2 3 Foreign Investment investment attractiveness in France of France’s regions in 2017 in 2017

22 56 PROJECTS REGIONAL ANALYSIS AND JOBS 66 THE CONTRIBUTION 26 OF FOREIGN SUBSIDIARIES SOURCE TO FRANCE’S REGIONAL ECONOMIES COUNTRIES

31 BUSINESS ACTIVITIES

39 BUSINESS SECTORS

44 4 Appendices INVESTMENT TYPES 78 48 JOB-CREATING PHYSICAL INVESTMENT SELECTION CRITERIA FINANCIAL INVESTMENTS 82 BUSINESS FRANCE 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

FOREWORD

The way France is seen abroad has improved no end in Innovation is another of France’s main draws as a recent times. business destination. International media coverage of the election of France’s More than eight in 10 (85%) foreign business leaders say President in May 2017 helped to shape an image of France that pro-innovation government policy has made France as a country resisting the extremes of right and left, and a more attractive location for their companies, and the eager to face a future of reforms led by a trusted new 125 investment decisions involving R&D, engineering and generation of politicians. design in 2017 bear out this trend. Today, foreign investors are hailing our country as a Investments such as these included those by American sound business destination, with a fascinatingly creative firmZenDesk, a global leader in customer service software economy. More than half of foreign decision-makers1 development, which decided to double its R&D personnel (54%) believe that France has become a more compelling in Montpellier by recruiting a further 50 engineers. proposition in recent years, while 84% (up 10%pts) now Meanwhile, German group Sartorius, which specializes in consider France to be an attractive business location. producing consumables for the pharmaceutical industry, decided to significantly increase R&D capacity by hiring The evidence itself could not be clearer: France’s 200 new employees, including 80 at its facility near attractiveness is growing constantly. Marseille. In 2017, an average of 25 new investment decisions were The spectacular rise in funding startups through venture with France receiving recorded every week, 1,298 job- and growth capital is also making France one of the creating foreign investments, up 16% from 1,117 in 2016. world’s leading startup nations. In the most recent EY Together, these investments created or maintained 33,489 Venture Capital survey, France was ranked second in jobs. Europe for fundraising, both in terms of the number of When asked about the criteria making France attractive deals and the sums raised, which exceeded a record €2.5 to investment, chief executives of multinational businesses billion in 2017 (up 16.2%). Another report, “Tech Funding established in France pointed, among other things, Trends in France” by CB Insights, highlighted the sound to France’s industrial base (84%). In the light of such health of fundraising in France, with 743 funding deals recognition, France continues to attract investment to confirmed in 2017 totaling US$3.2 billion (up 49%). The ‘strategic’ activities, and has now been Europe’s leading three largest fundraising rounds in France in 2017 – Actility destination for foreign investment in industry for more (€75 million), ManoMano (€60 million) and Vestiaire than 15 years. Collective (€58 million) – are all in their own way symbols of French entrepreneurial momentum and success. In 2017, investments in production / manufacturing operations were up 23% year-on-year, accounting for While more French startups are going global than ever 26% of all foreign investments in France and 48% of jobs before, increasing numbers of their foreign counterparts thereby generated. are heading to France to build their business. NanoRaven, a Brazilian startup and 2017 French Tech Ticket winner Examples include General Electric (United States), that designs and builds communication systems for which decided to invest €120 million to establish a new nanosatellites, set up in Montpellier, close to the city’s wind turbine blade production facility in Cherbourg University Space Center, the only French higher education (Normandy), creating more than 500 jobs; Toyota, establishment to offer the European Space Agency’s “Fly which announced a new €300 million investment at its Your Satellite” program. Meanwhile, Mexican FinTech Toyota Motor Manufacturing France vehicle production startup ZaveApp, another 2017 French Tech Ticket winner, facility in Onnaing, near Valenciennes (Hauts de offering virtual piggy bank services for smartphones, France region); and Dutch firm Plukon, which acquired decided to establish itself in France and join the Station F ailing French group Duc’s poultry slaughter and meat incubator in Paris. processing sites in the Bretagne (Brittany), Occitanie and Ile de France (Paris) regions. This €20 million This report sheds light on the twin aspects determining investment to modernize production facilities saved the international development of the French economy, nearly 800 jobs. highlighting the gains to be made by businesses

1 Kantar France/Business France survey, 2017.

- 5 - FOREWORD

PASCAL CAGNI CHRISTOPHE LECOURTIER Chairman of the Board, Business France, CEO, Business France and Ambassador for International Investment through the interplay between foreign investment and taxation and labor market regulations have already international trade. We can already see that companies provided a further lift to the numbers of investment that invest more often in France are also among those that decisions being recorded. export the most. Moreover, as outside observers regularly remind us, No fewer than 85% of foreign businesses established in promoting France’s business image, “La French Tech”, and France see exporting as a decisive part of their strategy. entrepreneurship are all plus points for decision-makers in On such example is Ahlstrom-Munksjö, the world-leading the business world. The results for 2017 show that France Finnish manufacturer of fiber-based materials, which is attracted investment from businesses of all sizes, sectors set to invest €7 million to build a fourth production line and nationalities. to make baking paper for the American market at its Saint-Séverin site (Nouvelle Aquitaine region). Another In this context, our agency’s work has never been more is Ateliers d’Emboutissage de Faulquemont, a French crucial: for successful investment projects also require subsidiary of the German Allgaier Group, based in the contacts you can trust, providing support and guidance to Moselle area of the Grand Est region and specializing in investors on the ground to see their plans come to fruition. automotive brake parts as well as structural and gearbox components, which exports more than 90% of its output. This is the role of Business France, which is responsible for helping foreign investors prosper in the country, assisting All in all, 2017 confirmed France’s attractiveness and them at every step of the way, and laying the groundwork status as a preferred destination for foreign investment for a record year in 2017. We are delighted that our in Europe. The momentum created following the colleagues continued to play their part alongside their French Presidential election in May 2017 should not be regional partners to help secure 677 foreign investment underestimated: reforms undertaken to reform corporate decisions in France in 2017.

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2017 SUMMARY

Foreign investment in France 1,298 16% investment INCREASE IN decisions INVESTMENTS IN 2017

CREATING OR MAINTAINING 33,489 JOBS

PROJECTS JOBS NUMBER OF PROJECTS 25 AND JOBS investment BY INVESTMENT TYPE decisions PER WEEK 651 CREATION 12,639 551 EXPANSION 12,855 96 TAKEOVER 7,995

FRANCE SITE CREATIONS IS AN ATTRACTIVE FOREIGN LED THE WAY: INVESTMENT DESTINATION France BURGEONING FOR now seen as the ATTRACTIVENESS TO BUSINESS pts 50% 84% 2nd +10% OF DECISIONS IN A YEAR OF DECISION- MOST ATTRACTIVE WERE INVESTMENTS MAKERS* COUNTRY IN EUROPE *Kantar Public/Business France survey after Germany* AT NEW SITES

- 7 - 2017 SUMMARY

SOURCE OF STRATEGIC INVESTMENTS INVESTMENT PROJECTS

TOP 3 source BUSINESS 54 countries ACTIVITIES IN 2017

UP FROM 47 360 IN 2014 343 PROJECTS PROJECTS DECISION-MAKING 251 MANUFACTURING CENTERS PROJECTS

BUSINESS EUROPE

SERVICES NORTH NORTH

MANUFACTURING R&D, ENGINEERING: AMERICA ASIA 26% of the investments recorded in the Annual +9% Report were in production/ INCREASE IN 58% 23% 13% manufacturing… R&D/ENGINEERING generating 48% of all jobs INVESTMENTS

+23% 10% of 18% UNITED STATES INCREASE IN INVESTMENTS investments 16% GERMANY +44 % INCREASE IN JOBS GENERATED 7% ITALY

7% UNITED KINGDOM Headquarters GLOBAL/EUROPEAN HQs 5% JAPAN

SHARP INCREASES IN INVESTMENT DECISIONS FROM THE UNITED STATES (+26%) 29IN 2017 AND SWITZERLAND (+37 %)

- 8 - 1 Introduction

10 INTERNATIONAL CONTEXT 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

INTERNATIONALCROISSANCE CONTEXTMONDIALE

The aim of this report is to analyze trends in job-creating French growth forecasts remain buoyant in 2018-2019, foreign investment in France, providing key information at an annual average of around 1.7%. The government’s on inward investment and talking points about the business reforms – including lowering corporate taxation country’s attractiveness to business. In addition to and reforming the labor market – combined with restored decision-makers hailing France’s structural advantages business confidence, are expected to provide a further over other countries, renewed growth throughout lift to investment and employment. In November 2017, the global economy is improving the French business business confidence rose to its highest level since 2007. climate. This conducive context for companies to pursue their international development by tapping into growing markets is boosting France’s investment attractiveness, which is now entering a new phase. Fig. 1 BUSINESS CONFIDENCE INDEX (2017) Chap1.1 Graph1. CroissanceLong-term économique average mondiale = 100

GLOBAL GROWTH 120 ON THE RISE

110 Global economic growth gathered pace in 2017: the most recent estimations by the OECD suggested a 3.6% increase in global GDP for the year, compared 100 with 3.1% in 2016. Among developed economies, growth was strongest in the euro zone, which stood out with figures of 2.4% in 2017 – higher than in 90 the United States (2.1%) – followed by a forecasted 2.1% in 2018. Countries in northern Europe, France

(1.8%), Spain, Portugal and Italy all delivered good 80 performances.

The upturn seen in emerging economies was driven 70 in part by China, where infrastructure investments underpinned growth. However, as in developed countries, excessive corporate and household debts 60 cast doubt on the sustainability of the recovery. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

France’s GDP is thought to have risen 1.8% in 2017, and Graph2. Attractivité de la France Source: OECD is forecast to rise by the same amount again in 2018.1 100

90 20 28 27 1 In February 2018, the French National Institute for Statistics and Economic Studies80 (INSEE) estimated that the French economy had grown by 2% in 2017. 70 26 60 33 35 50

- 11 - 30 54 20 39 38

0 2014 2016 2017

Graph6. Évolution régionale des flux d'IDE (2016-2017)

US$ billion

-164

-144 1,814 8 -11 0 11 4

1,518

-33% -27% -17% -1% 2% 3% 11%

2016 North Europe Transition Africa Developing Latin Other developed 2017 America economies Asia and America and countries Oceania the Caribbean

Graph7. Flux d'IDE entrants : top 10 des pays d'accueil (2017)

United States 311 China 144 Hong Kong 85 Netherlands 68 Ireland 66 Australia 60 Brazil 60 Singapore 58 France 50 India 45 0 50 100 150 200 250 300 350 1 . INTRODUCTION

Global economic growth in 2017 coincided with a 4.8% increase in trade flows, which continued on their Graph1. Croissance économique mondiale rise since the first half of 2016. The main explanationsChap1.1 METHODOLOGY advanced for this by the OECD were economic recovery in the euro zone – where relatively high trade volumes 120 KANTAR PUBLIC SURVEY ON FRANCE’S accounted for one-quarter of global growth – along with ATTRACTIVENESS TO BUSINESS greater trade in electronic goods in Asia, and increased business investment involving more imported goods. 110 In November and December 2017, Kantar Public conducted a survey of foreign executives. The aim French exports were buoyant in 2017, rising 3% in real was to identify how France is perceived in terms of terms. However, export growth has remained volatile 100 economic attractiveness and to gain an insight into since 2012, as it is driven by a relatively small number how investment location decisions are made. of sectors, such as transport. 90 The survey was conducted by telephone and polled 753 foreign companies, including 602 opinion leaders (sounding board), in the United States, China, India, FRANCE’S BURGEONING 80 ATTRACTIVENESS United Kingdom, Germany and the United Arab Emirates, along with 151 foreign company directors in France (mirror). 2017 was a good year for France’s attractiveness 70 to business, with 54% of foreign executives surveyed by Kantar Public (cf. inset hereafter) declaring the France had become a better business destination in 60 the last two years. The increase of 16 percentage points 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 from 2016 was the largest seen in the last five years. Fig. 2 HOW DO YOU THINK FRANCE’S ATTRACTIVENESS TO Graph2. Attractivité BUSINESS de la France HAS CHANGED IN THE LAST TWO YEARS?

Other business observers are reaching similar conclusions. 100

France’s image has improved substantially from a year 90 20 earlier. Another survey conducted in December 2017 28 27 80 by Ipsos revealed that 60% of foreign business leaders 70 thought that France was an attractive country for 26 businesses. Brice Teinturier, Executive Director at Ipsos, 60 33 35 was quick to call the near doubling of this figure from 50 2016 “astounding”. 40

International media coverage of the election of France’s 30 54 President in May 2017 also helped to shape an image 20 39 38 of France as a country resisting the extremes of right 10 and left, and eager to face a future of reforms led by 0 a trusted new generation of politicians. 2014 2016 2017

Improved Got worse Not changed

Graph6.Source: Évolution Kantar régionale Public/Business des flux d'IDE (2016-2017) France survey, 2017

US$ billion

-164

-144 1,814 8 -11 0 11 4

1,518

-33% -27% -17% -1% 2% 3% 11% - 12 - 2016 North Europe Transition Africa Developing Latin Other developed 2017 America economies Asia and America and countries Oceania the Caribbean

Graph7. Flux d'IDE entrants : top 10 des pays d'accueil (2017)

United States 311 China 144 Hong Kong 85 Netherlands 68 Ireland 66 Australia 60 Brazil 60 Singapore 58 France 50 India 45 0 50 100 150 200 250 300 350 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

France’s relative attractiveness was also up sharply Fig. 3 THE IMPACT OF BREXIT ON COMPANY LOCATION (+10% pts). France (33%) is now seen as the second STRATEGIES IN EUROPE most attractive country in Europe after Germany (45%), ahead of the United Kingdom (29%). One-third of Opinion leaders abroad business decision-makers put France as their number one destination in Europe for foreign investment, up 10 percentage points from 2016.

Brexit has led to a ‘wait-and-see’ attitude being adopted by foreign investors, particularly those from emerging 38% economies that had until now overwhelmingly chosen the United Kingdom as a European export hub. The United Kingdom’s investment attractiveness has therefore declined accordingly. 62%

BREXIT: AN OPPORTUNITY FOR FRANCE Foreign company directors in France The United Kingdom’s withdrawal from the European Union will undoubtedly have an impact on the location strategies of firms in Europe. As the exact nature of the UK’s withdrawal is still pending, deciding where to base personal and production is a key challenge for businesses. Aside from the possible loss of the European ‘passporting rights’ in the banking and financial sectors, manufacturers based in Britain will 45% also have to rethink their value chains to avoid not only 55% restricting their access to the European Single Market but also raising their transport costs.

When surveyed by Kantar Public, 62% of foreign groups and 45% of foreign companies set up in France were planning to review their location strategy in the United Kingdom in favor of another European country.

Brexit will have no impact on the location strategies of businesses from While Germany may be seen by 46% of respondents your country in the UK, and their presence will continue as before. as Europe’s leading beneficiary of Brexit, the gap Brexit will lead to businesses from your country reviewing their location with France (41%) has narrowed sharply from 2016. strategy in the UK in favor of another European country.

Source: Kantar Public/Business France survey, 2017 Seventy percent of business leaders believe that Brexit represents a real opportunity for France, with French banks (62%) and large companies (61%) expected to be among the greatest beneficiaries as things stand.

- 13 - 1 . INTRODUCTION

Fig. 4 EUROPE’S MOST ATTRACTIVE COUNTRIES

QUESTION: Which European country or countries strike you as the most promising investment locations for foreign businesses? (Two responses possible)

SWEDEN DENMARK

IRELAND NETHERLANDS

45% Germany UNITED KINGDOM GERMANY

33% France

29% United Kingdom

9% Austria FRANCE AUSTRIA SWEDEN 8% Ireland DENMARK

Netherlands ITALY 7% Sweden Spain

Denmark IRELAND NETHERLANDS 6% Italy

UNITED KINGDOM GERMANY

SPAIN

FRANCE AUSTRIA

ITALY

Source: Kantar Public/Business France survey, 2017

SPAIN

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Fig. 5 COUNTRIES IN WHICH BUSINESSES ARE MOST LIKELY TO RE-INVEST

QUESTION: In which European countries will businesses prioritize investing, in your view?

SWEDEN

46% Germany IRELAND NETHERLANDS

41% France POLAND

11% Netherlands GERMANY BELGIUM

9% Ireland SUÈDE

8% Sweden AUSTRIA FRANCE

Italy 7% Austria

IRLANDE ITALY Belgium PAYS-BAS 6% Spain POLOGNE

5% Poland ALLEMAGNE BELGIQUE

SPAIN AUTRICHE FRANCE

ITALIE

Source: Kantar Public/Business France survey, 2017 ESPAGNE

- 15 - 1 . INTRODUCTION

Multiple key strengths of a changing France

FRANCE RANKED FIRST FOR FRENCH VENTURE CAPITAL FRANCE HOSTS MAJOR ‘SOFT POWER’ AMONG THE GROWING RAPIDLY INTERNATIONAL SPORTING EVENTS EVERY YEAR WORLD’S LEADING NATIONS France was ranked second in IN 2017 Europe for the number and value The list in 2018 includes golf’s This report by PR firm Portland of venture capital deals in 2017. Ryder Cup, along with the Communications examined the According to the most recent EY Formula 1 French Grand Prix, influence held by countries in Venture Capital in France survey, the Gay Games, and the six key areas – government, sums invested in venture capital in Women’s European Handball culture, education, engagement, France reached an all-time peak Championship, before the enterprise, and digital – and of €2.5 billion in 2017. Women’s Football World Cup highlighted a number of France’s in 2019, the Rugby World Cup in strengths, including having a 2023, and the Paris Olympics in vast diplomatic network, and EUROPEAN BANKING 2024. belonging to more multilateral AUTHORITY TO LEAVE and international organizations LONDON POST-BREXIT FOR Paris was officially awarded than any other country in the PARIS IN 2019 the 2024 summer Olympic and world. Eight cities had applied to host Paralympic Games on September the European banking regulator, 13, 2017 at a ceremony in Peru. FRANCE’S GLOBAL including Luxembourg, Brussels, It will be the third occasion the INFLUENCE ALSO Warsaw and Vienna. Paris is French capital has hosted the DETERMINED BY BUSINESS already home to the European games after 1900 and 1924. PERFORMANCES Securities and Markets Authority, This time, 15,000 athletes and one of the two other European 20,000 journalists are expected According to the 2017 Fortune financial supervisory bodies. to attend. Global 500, there were 29 French firms among the world’s 500 largest companies. For the eighth PARIS’ 12 MILLION+ year in a row in 2017, France came INHABITANTS MAKE IT top in the Deloitte Technology EUROPE’S LARGEST Fast 500 EMEA, with 97 of the URBAN AREA AND A TRULY 500 fastest-growing technology GLOBAL CITY companies in Europe, the Middle Home to more than 940,000 East and Africa. The top 10 French businesses and 650,000 companies in the standings were: students, it is also the leading Ubitransports, Adikteev, Adomik, host city for trade shows, the Actility, Interactiv Group, Delair, euro zone’s largest financial Quantmetry, BeAM, Voip Télécom center, and Europe’s leading and Biosynex. hotspot for R&D, boasting internationally renowned educational institutions, such as HEC and ESSEC, which both feature in the top five of the Financial Times’ Masters in Management rankings.

- 16 - Chap1.1 Graph1. Croissance économique mondiale Chap1.1 Graph1. Croissance économique mondiale

120 120

110 110

100 100

201790 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE 90

80 80

70 70 FOREIGN DIRECT INVESTMENT: SHARP Cross-border mergers and acquisitions fell by 23% in 2017 to US$666 billion following a 30% reduction in developed INCREASE60 IN INFLOWS TO FRANCE 602002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 countries to US$553 billion, and in spite of a large increase 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 in M&A activity in developing economies, which rose 44% Graph2.According Attractivité de tola France UNCTAD preliminary estimates, global to US$100 billion. foreignGraph2. Attractivité direct de la France investment (FDI) flows fell 13% in 2017, 100to US$1.52 trillion.2 100 90 20 28 27 Developed90 countries were the hardest hit, with a 20steep 80 28 27 JOB-CREATING FOREIGN decline80 of 27%, but they nevertheless remained the 70 INVESTMENT IN EUROPE 26 primary70 targets for FDI, attracting 53% of global FDI (US$81060 billion). Despite a steep fall in inflows to26 North 60 33 35 According to data from fDi Markets, the number of America50 (-33%), the United States remained the world’s 33 35 job-creating foreign investment decisions worldwide largest50 recipient of FDI (US$311 billion). 40 declined 7% in 2017. 40 30 While the EU posted a steep decline of 27% in54 FDI 30 54 With 27% of job-creating foreign investment, Western inflows,20 France39 saw an increase38 of around 77%, 20 39 38 Europe was the second largest investment market, just to10 US$50 billion, making it one of the top 10 FDI host 10 after North America (28%) and ahead of Asia (20%), Latin economies0 in 2017. 3 2014 2016 2017 America (7%), Africa (4%) and the Middle East (4%). 0 2014 2016 2017 According to data from the Business France Europe Graph6. Évolution régionale des flux d'IDE (2016-2017) Observatory, there were 3,751 job-creating foreign Graph6. Évolution régionale des flux d'IDE (2016-2017) Fig. 6 REGIONAL CONTRIBUTION TO CHANGES IN GLOBAL investments in Europe, an 11% increase from 2016. FDI FLOWS (2016-2017) US$ billion

US$ billion The three leading host countries – United Kingdom, -164 France and Germany – accounted for nearly half of all job- -164 creating foreign investment in Europe. France attracted -144 19% of investment projects in the European market. 1,814 -144 8 -11 0 11 4 1,814 8 -11 0 11 4 1,518 Intra-European investment flows accounted for more 1,518 than half of all foreign investment (53%), while American -33% -27% -17% -1% 2% 3% 11% -33% -27% -17% -1% 2% 3% 11% companies, the area’s biggest foreign investors, were 2016 North Europe Transition Africa Developing Latin Other developed 2017 responsible for 25% of total investment. 2016 AmericaNorth Europe economies Africa AsiaDeveloping and AmericaLatin and Othercountries developed 2017 Transition Oceania the Caribbean America economies Asia and America and countries Oceania the Caribbean Foreign investment in Europe was mainly focused on IT Developing economies Developed countries World services and software (17%), consulting and engineering Percent change (11%), financial services (9%), and the automotive Source: UNCTAD, initial estimates based on quarterly data, January 2018 industry (7%).

Graph7. Flux d'IDE entrants : top 10 des pays d'accueil (2017) Foreign companies prioritized investment in business Graph7. Flux d'IDE entrants : top 10 des pays d'accueil (2017) Fig. 7 FDI INFLOWS: TOP 10 RECIPIENTS (2017) services (27%) and production/manufacturing activities United States 311 (26%). UnitedChina States 144 311 China 144 Hong Kong 85 More than 2,800 foreign companies invested in Europe Hong Kong 85 Netherlands 68 in 2017. Their presence was also remarkable for its great NetherlandsIreland 68 66 diversity: the 10 leading companies accounted for only AustraliaIreland 66 60 four percent of all investment projects over the year. AustraliaBrazil 6060 SingaporeBrazil 5860 SingaporeFrance 50 58 IndiaFrance 45 50 India0 45 50 100 150 200 250 300 350 0 50 100 150 200 250 300 350

Source: UNCTAD, initial estimates based on quarterly data, January 2018

2 Provisional data based on estimates by UNCTAD, cf. Global Investment Trends Monitor, no. 28, January 2018 3 Estimates are based on fDi Markets data for 2017. Data extracted in February 2018.

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Fig. 8 BREAKDOWN OF JOB-CREATING FOREIGN INVESTMENT PROJECTS IN EUROPE (2017)

FINLAND NORWAY 1% 1%

SWEDEN 1%

1% 1%

DENMARK LITHUANIA 16% IRELAND NETHERLANDS POLAND 5% 5% UNITED KINGDOM GERMANY 5% BELGIUM

2% 13% CZECH 2% 1% REPUBLIC 1% LUXEMBOURG SLOVAKIA

FRANCE AUSTRIA HUNGARY SWITZERLAND 1% ROMANIA 19 % 2% 2% 3%

ITALY

4% BULGARIA

SPAIN 1%

2% 8% PORTUGAL

Source: Business France Europe Observatory

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TOP 10 INVESTORS IN EUROPE

SOURCE NUMBER OF MAIN GLOBAL EMPLOYEES PARENT COMPANY COUNTRY MAIN SECTOR PROJECTS RECIPIENTS TURNOVER (US$BN) WORLDWIDE

AMAZON.COM United States Wholesale and retail 31 France, Spain 128.3 341,400

LIDL Germany Wholesale and retail 31 France, Spain 38.3 130,782

DEUTSCHE POST DHL Germany Transport, storage 15 France, Austria 57.3 508,036 GROUP

VOLKSWAGEN Germany Automotive industry 15 France, Spain 217.3 626,715

ACTION NEDERLAND Netherlands Wholesale and retail 15 France 2.7 35,000

CGI GROUP, INC. Canada Software and IT services 12 France 7.6 71,000

HUAWEI TECHNOLOGIES China Telecoms 12 Spain, Portugal 71 180,000

Industrial conglomerate, GE (GENERAL ELECTRIC) United States services 11 France, Germany 106 295,000

CONTINENTAL AG Germany Automotive industry 10 Romania, Portugal 40.5 220,137

ROBERT BOSCH GMBH Germany Wholesale and retail 10 France, Spain 73.1 389,281

Source: Business France Europe Observatory

Statistical disparities surrounding foreign investment in France Ever since the second half of the 1980s ushered in an era of increasingly rapid globalization in the world economy, foreign direct investment has been at the heart of global industrial restructuring and one of the most dynamic components in international trade.

FOREIGN DIRECT INVESTMENT

According to the benchmark definition of foreign direct investment provided by the OECD, in line with the IMF’s Balance of Payments Manual: FDI flows comprise a wide variety of transactions. In addition to share capital transactions and reinvested “Direct investment is a category of cross-border earnings, direct investment encompasses all short- investment made by a resident in one economy and long-term deposits, advances and loan transactions (‘the direct investor’) with the objective of establishing between affiliated companies. The end purpose of some a lasting interest in an enterprise (‘the direct investment of these financial flows is identical to that of share capital enterprise’) that is resident in an economy other than transactions: this is the case, for example, when a parent that of the direct investor. The motivation of the direct company makes out a loan to a non-resident subsidiary investor is a strategic long-term relationship with the direct to cover an expansion in output capacity. However, other investment enterprise to ensure a significant degree financial flows arise from fiscal considerations, involving of influence by the direct investor in the management the establishment by multinational firms of holding of the direct investment enterprise. The ‘lasting interest’ companies and treasury centers in a number of European is evidenced when the direct investor owns at least 10% countries for tax purposes. As such, globalization and of the voting power of the direct investment enterprise…” the growing international footprint of companies have contributed to a surge in short-term transactions and the heightened volatility of foreign direct investment flows.

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UNCTAD collects and aggregates FDI flow data provided SOURCE NUMBER OF MAIN GLOBAL EMPLOYEES by central banks without differentiating between the various PARENT COMPANY COUNTRY MAIN SECTOR PROJECTS RECIPIENTS TURNOVER (US$BN) WORLDWIDE components of these flows. Accordingly, no distinction is AMAZON.COM United States Wholesale and retail 31 France, Spain 128.3 341,400 made between tax avoidance by businesses (intra-group loans) and new investment sites (share capital transactions LIDL Germany Wholesale and retail 31 France, Spain 38.3 130,782 in the strict sense of the term). Furthermore, the financial DEUTSCHE POST DHL flows arising from internal loans made by multinational Germany Transport, storage 15 France, Austria 57.3 508,036 GROUP firms (intra-group loans) frequently comprise any number VOLKSWAGEN Germany Automotive industry 15 France, Spain 217.3 626,715 of transactions in both directions, inward and outward, which offset each other during the course of the year. ACTION NEDERLAND Netherlands Wholesale and retail 15 France 2.7 35,000 The major fluctuations in intra-group loans render FDI flows extremely volatile. CGI GROUP, INC. Canada Software and IT services 12 France 7.6 71,000 annual corporate profit declarations provided to HUAWEI TECHNOLOGIES China Telecoms 12 Spain, Portugal 71 180,000 To estimate FDI flows, both the IMF and the OECD now recommend using the “extended directional principle” the French tax authorities and from annual social security Industrial conglomerate, data containing payroll information) with data obtained GE (GENERAL ELECTRIC) United States services 11 France, Germany 106 295,000 methodology, which provides a more realistic economic picture of these transactions. It involves adjusting for intra- from a sample of companies surveyed by questionnaire CONTINENTAL AG Germany Automotive industry 10 Romania, Portugal 40.5 220,137 group loans so as to obtain a single annual net figure for each to produce structural business statistics. These databases contain data on foreign-owned resident company ROBERT BOSCH GMBH Germany Wholesale and retail 10 France, Spain 73.1 389,281 multinational group, instead of recording each and every transaction, which are often offset by one another, throughout employment, turnover, investment in tangible assets the year. The Banque de France is one of the few central banks and foreign trade. to apply the extended directional principle, thereby limiting the impact that intra-group loans between subsidiaries have on FDI flows. For this reason alone, any form of international PHYSICAL JOB-CREATING comparison would be inappropriate at the current time. INVESTMENT

The need to assess the role and impact of direct investment, DATA CONCERNING CROSS-BORDER not only in financial terms but also on employment, MERGERS AND ACQUISITIONS has highlighted the prerequisite nature of accompanying data on the microeconomic activity of multinational firms. These statistics are mainly compiled by private consulting By analyzing individual company data, the diversity of firms (e.g. Thomson Reuters, Zephyr), indicating businesses in the French economy can be more readily the number of companies which have been acquired understood. by foreign firms and the financial sums involved. Since 1993, Business France and France’s regional economic development bodies have worked together in partnership DATA CONCERNING THE PRESENCE to record all job-creating foreign investment decisions in France (cf. Appendix). The Annual Report on Foreign OF FOREIGN BUSINESSES IN FRANCE Investment in France analyzes foreign investments and their contribution to the French economy, listing confirmed The French National Institute for Statistics and Economic projects and detailing the number of jobs that each Studies (INSEE) draws on the “Financial Links Between one generates. It provides detailed statistical analysis Companies Survey” (“LiFi”) conducted among businesses by business sector, business activity, investment type, in France to compile its statistics on the economic activity source country, and host region. Data concerning of foreign subsidiaries in the country. A threshold of 50% the amounts involved in specific investment projects are not of the voting rights or capital stock is set to establish always made available by companies, and so form no part whether or not a business is foreign-owned. ESANE of the analysis. statistics combine administrative data (obtained from Business France also conducts an observatory of job- creating foreign investment across Europe, as do private organizations such as fDi Markets and EY. This involves recording all confirmed investment decisions that have been announced as such in the press. These databases provide detailed statistics by business sector, business activity, investment type, source country and host region.

- 20 - 2 Foreign investment in France in 2017

22 PROJECTS AND JOBS

26 SOURCE COUNTRIES

31 BUSINESS ACTIVITIES

39 BUSINESS SECTORS

44 INVESTMENT TYPES

48 FINANCIAL INVESTMENTS 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

PROJECTS AND JOBS Rising number of new inward investment decisions in 2017

Amid a gradual recovery in global growth, France Recent perceptions of France’s attractiveness to business confirmed its status as an attractive location for have shown a distinct improvement, as the country foreign investment decisions in 2017, attracting increasingly appears to be a destination of choice for 1,298 new investment projects – up 16% from 2016 – investors. More than eight in 10 chief executives (84%) that created 33,489 jobs. believe that France is an attractive foreign investment destination, up 10 percentage points from 2016. These buoyant levels of inward investment come at a time of renewed confidence among decision-makers.

AVERAGE PROJECT SIZE VARIES BY NATURE Fig. 9 DO YOU AGREE THAT FRANCE IS AN ATTRACTIVE DESTINATION FOR FOREIGN INVESTMENT? OF OPERATIONS

The average number of jobs created or maintained 14% per project nationwide was 25, a similar level to those seen in recent years. 2% Strongly agree Investments in production/manufacturing operations Tend to agree 44% were very job-intensive: confirmed investments such Tend to disagree as these created 47 jobs on average, compared with Strongly disagree 40 in 2016. The average number of jobs per project 40% for operations like these in the automotive industry (52), aerospace equipment (also 52), machinery and mechanical equipment (41), and metals/metalworking (65) sectors was markedly higher than the nationwide average (25). Source: Kantar Public/Business France survey, 2017

- 23 - 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

Fig. 10 FOREIGN INVESTMENT PROJECTS IN FRANCE (2007-2017) 1,400 Wider criteria RECORDING PHYSICAL 1,298 INVESTMENTS FROM 1,400 Wider criteria 1,200 1,298 THE FIRST JOB CREATED 1,117 The Business France Annual Report examines all 1,200 1,014 foreign investment projects that create or maintain 1,000 962 1,117 jobs in France, and details the number of jobs 1,014 that each project generates. It provides detailed 1,000 962 statistical analysis by business sector, business 800 Average number of projects activity, investment type, source country and host (2007-2017): 729 region. Until 2013, and in contrast with practices 800 at other investment promotion agencies in Europe, 600 Average number of projects (2007-2017): 729 or at private consulting firms, only projects creating at least 10 jobs were recorded in the 600 400 Annual Report, except for: / First-time investments in Europe by non- 624 641 639 782 698 693 685 740 734 814 968 400 European investors. 200 / Projects in high value-added sectors (R&D, 624 641 639 782 698 693 685 740 734 814 968 design, engineering, headquarters, and business 200 consulting). 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 With a view to providing a clearer picture of Source: Business France, Annual Reports the competitive environment and the realities 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 of job-creating foreign investment, Business 35,000 France decided from 2015 onwards to adopt Fig. 11 JOBS GENERATED BY FOREIGN INVESTMENT33,682 Wider criteria 33,489 IN FRANCE (2007-2017) wider criteria, counting all investment decisions 35,000 30,108 in France from the very first job created. 33,682 Wider criteria 30,000 Average number of jobs 33,489 (2007-2017): 30,092 26,535 30,108 30,000 Average number of jobs (2007-2017): 30,092 25,000 26,535

Fig. 12 BREAKDOWN OF JOBS CREATED OR MAINTAINED 25,000 PER PROJECT (2017) 20,000 1% 3% 20,000 15,000 7% 1% Less than 10 15,000 35% 10 to 19 10,000 20 to 49 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153 20% 50 to 99 10,000 5,000 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153 100 to 199

200 to 399

5,000 400 and over 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 34%

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Business France, Annual Reports Source: Business France, Annual Report Unknown

Unknown

Large corporates - 24 -

Large corporates

SMEs

Mid-size companies

% Mid-size companies0 10 20 30 40 50 60

% 0 10 20 30 40 50 60

% % 90 16

% % 80 14 90 16 70 12 80 14 60 10 70 12 50 60 8 10 40 50 6 30 8 40 4 20 6 30 2 10 4 20 0 0 2 10

Construction, Machinery and Glass, ceramics, Pharmaceuticals Media, publishing Energy, recycling, 0 0 Chemicals, plastics other concessions Transport, storage railway equipment Perfumes, cosmetics Automotive industry Aerospace, naval and building materials and biotechnologies Metals, metalworking Consumer electronics Electronic components and business services minerals, wood, paper mechanical equipment diagnostics and devices Consulting, engineering Software and IT services clothing and accessories Textiles, industrial textiles, Medical/surgical equipment, Agri-food, agriculture, fishing Furnishings, household goods

Construction, Machinery and Electrical/electronic/IT equipment Glass, ceramics, Pharmaceuticals Media, publishing Energy, recycling, Chemicals, plastics other concessions Transport, storage railway equipment Perfumes, cosmetics Automotive industry Aerospace, naval and building materials and biotechnologies Metals, metalworking Consumer electronics Electronic components and business services minerals, wood, paper mechanical equipment diagnostics and devices Consulting, engineering Software and IT services clothing and accessories % Textiles, industrial textiles, % Medical/surgical equipment, Agri-food, agriculture, fishing Furnishings, household goods 25 60 Electrical/electronic/IT equipment

% % 5060 25 25 %

15 20 % 4050 25 % 15 % 15 20 % 10 % 3040 10 15 % 5 % 10 % 30 10 20 0 % 5 % 5

2010 0 % 5

100 0

0 0

Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics Consumer electronics Metals, metalworking Electronic components Education and training Software and IT services

Agri-food, agriculture, fishing Construction, building materials Electrical/electronic/IT equipment Chemicals, plastics Transport, storage Telecoms, internet service providers Automotive industry Perfumes, cosmetics Energy, recycling, other concessions Pharmaceuticals and biotechnologies Consumer electronics Metals, metalworking Electronic components Machinery and mechanical equipment Education and training Glass, ceramics, minerals, wood, paper Software and IT services Aerospace, naval and railway equipment Financial services, banking and insurance

Consulting, engineering and business services Agri-food, agriculture, fishing Construction, building materials Textiles, industrial textiles, clothing and accessories Electrical/electronic/ITMedical/surgical equipment, equipment diagnostics and devices Telecoms, internet service providers Energy, recycling, other concessions Pharmaceuticals and biotechnologies “Unattractive” sub-totalMachinery and mechanical equipment % “Attractive” sub-total Glass, ceramics, minerals, wood, paper Aerospace, naval and railway equipment Proximity to markets and Financial services, banking and insurance 14 1 12 50 37 86 other companyConsulting, engineering operations and business services Textiles, industrial textiles, clothing and accessories Medical/surgical equipment, diagnostics and devices Potential for research partnerships“Unattractive” sub-total % “Attractive” sub-total with French academia 18 2 17 49 33 82 Proximity to markets and 14 1 12 50 37 86 otherQuality company of R&D operationspersonnel 19 2 17 45 36 81 Potential for research partnerships 18 2 17 49 33 82 Proximity to Frenchwith innovation French academi clustersa 19 2 17 48 33 81 Quality of R&D personnel 19 2 17 45 36 81 Access to finance 20 2 18 50 29 80 Proximity to French innovation clusters 19 2 17 48 33 81 Amount of state aid for R&D 22 3 20 47 31 78 Access to finance 20 2 18 50 29 80 Cost of R&D operations 25 3 22 48 28 75 Amount of state aid for R&D 22 3 20 47 31 78 Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms Cost of R&D operations 25 3 22 48 28 75

Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms

High value-added industry

High value-added industryservices

LowHigh value-added value-added industry services

Low value-added industryservices % 0 5 10 15 20 25 30 35 40 Low value-added services % 0 5 10 15 20 25 30 35 40

250 Growth in jobs (%)

200 Machinery Sectors experiencing job and project growth 200 Machinery Sectors experiencing job and project growth 150 Cosmetics/perfumes 150 Automotive Cosmetics/perfumes Metals Chemicals/plastics 100 Automotive

Metals Chemicals/plastics 100

50 Consulting Electrical/IT eqpt. Software/IT services Glass/ceramics 50 Consulting Electrical/IT eqpt. Financial services Software/IT services Growth in projects (%) Agri-foodGlass/ceramics -50 0 50 100 150 200 Financial services Pharmaceuticals Energy/recycling Furnishings Hospitality Growth in projects (%) Construction Consumer Aerospace/naval/rail Transport/ Agri-food -50 storage0 50 100 150 electronics 200 Telecoms/ISPs Pharmaceuticals Energy/recycling Furnishings Hospitality Construction Consumer Aerospace/naval/rail Transport/ Wholesale/retail Medical eqpt. storage-50 electronics Media/publishing Telecoms/ISPs Textiles Wholesale/retail Medical eqpt. -50 Media/publishing Other services Electronic components Textiles Sectors experiencing project growth -100 Other services Electronic components Sectors experiencing project growth -100

-150

3,500

3,000 3,500 2,500 63% 3,000 69% 2,000 65% 2,500 1,500 79% 63% 69% 2,000 65% 1,000 81% 1,500 79% 37% 500 31% 35% 1,000 19%81% 21% 0 2013 2014 2015 201637% 2017 500 31% 35% 19% 21% 0 180 2013 2014 2015 2016 2017 160

140180

120160 55% 100140 53%

12080 50% 55% 10060 56% 53%

4080 66% 45% 47% 50% 50% 2060 44%56% 34% 0 40 66% 45% 2013 2014 201547% 2016 2017 50% 20 44% 34% 1,2000 2013 2014 2015 2016 2017 61

1,200 61 1,000 50

78 1,000 50

800 78

800 989

600

681 989 783

600 61 681 400 783

61 40 233 400 126 200 40 233 0 5 000 126 198 202 179 200 166 130 0 5 000 0 2013 2014198 2022015 2016 2017179 166 130 0 70 2013 2014 2015 2016 2017

70 5 15.7 60

5 12.7 15.7 60 50 12.7 3.8 17.7 50 40 3.8 17.7 8 40 20.5 30 7.18 47.8 20.5 30 20 7.1 47.8 5 36.4

20 23.2 5.5 23 10 5 36.4 23.2 5.59.3 23 10 0 2013 2014 2015 2016 2017 9.3 0 2013 2014 2015 2016 2017

United States 392

United Kingdom 342 United States 392 Germany 31 United Kingdom 342 Netherlands 19 Germany 31 Luxembourg 19 Netherlands 19 Canada 18 Luxembourg 19 Belgium 15 Canada 18 Italy 11 Belgium 15 Spain 11 Italy 11 11 Switzerland Spain 11 Norway 8 11 Switzerland Japan 7 Norway 8 Ireland 7 Japan 7 Denmark 5 7 Ireland 40 Other Denmark 5 0 50 100 150 200 250 300 350 400 450

40 Other United States 0 50 100 150 200 250 300 350 400 24,236 450

United Kingdom 16,640 United States 24,236 Germany 13,076 United Kingdom 16,640 Netherlands 3,180 Germany 13,076 Belgium 2,845 Netherlands 3,180 Canada 2,262 Belgium 2,845 Spain 1,780 Canada 2,262 Italy 814 Spain 1,780 Indonesia 582 Italy 814 China 412 Indonesia 582 Switzerland 382 China 412 Luxembourg 367 Switzerland 382 New Zealand 133 Luxembourg 367 257 Other New Zealand 133 0 5,000 10,000 15,000 20,000 25,000 257 Other

0 5,000 10,000 15,000 20,000 25,000 1,400 Wider criteria 1,298

1,200 1,117

1,014 1,000 962

800 Average number of projects (2007-2017): 729

600

400

624 641 639 782 698 693 685 740 734 814 968 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE 200

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

35,000 33,682 Wider criteria 33,489

30,108 30,000 Average number of jobs (2007-2017): 30,092 26,535

25,000 GROWING CONTRIBUTION They chose France OF LARGE CORPORATES 20,000TO EMPLOYMENT

A breakdown of projects by parent company size 15,000in 2017 reveals that large corporates (more than 5,000 CONSULTING, ENGINEERING AND BUSINESS SERVICES employees) were responsible for 40% of all projects, mid-size companies (250 to 5,000 employees) for 29%, ENGINEERING FIRM LEAD TECH SRL INVESTS 10,000and SMEs (fewer than 250 employees) also for 29%. IN OCCITANIE 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153 The contribution made by large corporates to employment Lead Tech SRL specializes in software development and technical product support services for the aerospace, 5,000once again accounted for a clear majority (58%) of all jobs generated by foreign investment in France last year. naval, rail and defense industries. After showing a keen interest in the French aerospace and rail industries’ growth potential, the Italian company opened its first 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 French subsidiary in 2017 in Tarn, south-western France (Occitanie region). Fig. 13 BREAKDOWN OF PROJECTS BY PARENT COMPANY SIZE (2017) Over the next three years, it will recruit around thirty employees who will be responsible for commercial and Unknown engineering operations, including integrated logistics support, technical publications, prototyping, software development and managing industrial automation systems. Lead Tech is already a member of the Aerospace Large Valley innovation cluster and hopes to work with them corporates on R&D.

SMEs

SOFTWARE AND IT SERVICES NAVER, THE ‘KOREAN GOOGLE’, Mid-size ACQUIRES RESEARCH CENTER NEAR GRENOBLE companies

% In 2017, IT software and services specialist Naver decided to 0 10 20 30 40 50 60 expand in France. The “Korean Google”, with more than 30 million users, acquired the American firm Xerox’s research SMEs: 0 to 249 employees center, in Meylan, near Grenoble (Auvergne-Rhône-Alpes Mid-size companies: 250 to 5,000 employees Large corporates: More than 5,000 employees region), where it will now open its first European R&D center.

Jobs Projects Naver also established a new subsidiary at the Station F Source: Business France, Annual Report % % incubator in Paris, creating 35 jobs. 90 16

80 14

70 12

60 10 50 8 40 6 - 25 - 30 4 20

2 10

0 0

Electrical/electronic/IT equipment

% % 60 25

50 25 %

15 20 % 40 15 %

10 % 30 10

5 %

20 0 % 5

0 0

Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics Consumer electronics Metals, metalworking Electronic components Education and training Software and IT services

Consulting, engineering and business services Textiles, industrial textiles, clothing and accessories Medical/surgical equipment, diagnostics and devices “Unattractive” sub-total % “Attractive” sub-total Proximity to markets and other company operations 14 1 12 50 37 86 Potential for research partnerships with French academia 18 2 17 49 33 82 Quality of R&D personnel 19 2 17 45 36 81

Proximity to French innovation clusters 19 2 17 48 33 81

Access to finance 20 2 18 50 29 80

Amount of state aid for R&D 22 3 20 47 31 78

Cost of R&D operations 25 3 22 48 28 75

Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms

High value-added industry

High value-added services

Low value-added industry

Low value-added services % 0 5 10 15 20 25 30 35 40

250 Growth in jobs (%)

200 Machinery Sectors experiencing job and project growth

150 Cosmetics/perfumes

Automotive

Metals Chemicals/plastics 100

50 Consulting Electrical/IT eqpt. Software/IT services Glass/ceramics Financial services Growth in projects (%) Agri-food -50 0 50 100 150 200 Pharmaceuticals Energy/recycling Furnishings Hospitality Construction Consumer Aerospace/naval/rail Transport/ storage electronics Telecoms/ISPs

Wholesale/retail Medical eqpt. Media/publishing -50 Textiles

Other services Electronic components Sectors experiencing project growth -100

-150

3,500

3,000

2,500 63% 69% 2,000 65%

1,500 79%

1,000 81% 37% 500 31% 35% 19% 21% 0 2013 2014 2015 2016 2017

180

160

140

120 55% 100 53%

80 50% 60 56%

40 66% 45% 47% 50% 20 44% 34% 0 2013 2014 2015 2016 2017

1,200 61

1,000 50

800

989

600

681 783

61 400

40 233

126 200

0 5 000 198 202 179 166 130 0 2013 2014 2015 2016 2017

5 15.7 60

12.7

3.8 17.7

8 20.5 30 7.1 47.8

20 5 36.4 23.2 5.5 23 10

9.3 0 2013 2014 2015 2016 2017

United States 392

United Kingdom 342

Germany 31

Netherlands 19

Luxembourg 19

Canada 18

Belgium 15

Italy 11

Spain 11

11 Switzerland

Norway 8

Japan 7

Ireland 7

Denmark 5

40 Other 0 50 100 150 200 250 300 350 400 450

United States 24,236

United Kingdom 16,640

Germany 13,076

Netherlands 3,180

Belgium 2,845

Canada 2,262

Spain 1,780

Italy 814

Indonesia 582

China 412

Switzerland 382

Luxembourg 367

New Zealand 133

257 Other

0 5,000 10,000 15,000 20,000 25,000 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

SOFTWARE AND IT SERVICES SOFTWARE AND IT SERVICES ZENDESK DOUBLES ITS R&D WORKFORCE FUJITSU OPENS ARTIFICIAL INTELLIGENCE IN MONTPELLIER CENTER OF EXCELLENCE IN PARIS

Founded in 2007, Zendesk is a global leader in customer Business France has provided support to the Japanese service software development with more than 2,000 technology giant since June 2016 in its discussions with employees worldwide. French public-sector artificial intelligence (AI) research bodies, various leading companies on the French stock After taking over the French startup “We are Cloud”, market (CAC 40), specialist investment funds and incubators. the Montpellier-based designer behind BIME Analytics software, Zendesk decided in 2017 to relocate to a larger An updated roadmap has now led to an investment of site in the southern French city and to recruit 50 R&D €50 million and a new AI center of excellence within the engineers. École Polytechnique’s Drahi-X Novation incubator, as well as a joint research program with the French Institute The company also decided to open a base at the Station F for Research in Computer Science and Automation incubator in Paris, where it will provide support to around (INRIA), and a data-sharing development project with 50 startups. startup Scality.

PHARMACEUTICALS AND BIOTECHNOLOGIES BOEHRINGER INGELHEIM ACQUIRES MERIAL

After acquiring Merial in early 2017, this German pharmaceutical group invested €70 million in new headquarters for its animal health business in France, creating 125 jobs to fulfil support functions previously provided by former shareholder Sanofi.

- 26 - 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

SOURCE COUNTRIES European businesses lead the way among investors

Foreign investments were received from 54 different countries in 2017, with European investments continuing They chose France to hold the upper hand: 58% of job-creating foreign investments in France originated in other European countries, followed by North America (23%) and Asia (13%).

MACHINERY AND MECHANICAL EQUIPMENT LEADING SOURCE COUNTRIES AGCO TO CREATE 100 JOBS IN BEAUVAIS AND ANOTHER 100 IN ENNERY The leading source countries of businesses investing in France in 2017 were the United States (18%), Germany AGCO Corporation is a US farm equipment manufacturing (16%), Italy (7%), the United Kingdom (7%), and Japan (5%). and distribution company, founded in 1990, and with operations in France since 1994, when it acquired Massey Many countries posted higher project numbers Ferguson. The Beauvais production facility (Hauts de than the previous year, with the largest increases France region) is the main production site for Massey in investment decisions involving companies from Ferguson tractors, while the company has had a spare the United States (+26%), Switzerland (+40%), Canada parts distribution center in Ennery (Ile de France / Paris (+37%), the Netherlands (+47%) and Sweden (+76%). region) since 1995 for its tractor brands Massey Ferguson, Among emerging economies, India recorded Fendt, Challenger, Valtra and GSI. ACGO has also been the biggest rise (+73%). experiencing strong growth in its sales to the EMEA market.

AGCO initially sought the help of Business France and its Fig. 14 BREAKDOWN OF PROJECTS BY SOURCE REGION (2017) regional partner for support with plans to expand another spare parts site in north-eastern France. Their previous 6% partner, Moselle Développement, had proposed a site to AGCO that Michelin wanted to shut down. The company 13% will now enjoy 100,000 sq. m. of space at Ennery, instead Europe of only 30,000 sq. m. in Moselle, and will recruit around a North America hundred people, bringing the total number of employees at the Ennery site to 300. Asia 58% 23% Other AGCO also announced in 2017 that it has acquired an eight-hectare site in Beauvais, previously owned by its neighbor Froneri France (formerly Nestlé), as part of an overhaul of its distribution system. Dubbed “Beauvais 3”, this project will create 100 new jobs while also increasing Source: Business France, Annual Report storage capacity, thus reducing the need for external service providers.

- 27 - 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

AUTOMOTIVE INDUSTRY SOFTWARE AND IT SERVICES CGI GROUP TO CREATE MORE VOLVO AB EXPANDS IN AUVERGNE-RHONE-ALPES THAN 1,000 JOBS IN FRANCE Commercial vehicle-maker Renault Trucks, part of the Founded in 1976, CGI is one of the world’s leading Swedish Volvo Group, announced several expansions in independent IT and business process services firms. CGI 2017 at production sites in France, creating more than is also Canada’s leading investor in France, with 11,000 160 jobs in the Auvergne-Rhône-Alpes region, including employees and consultants across the country and a 50 people in Bourg-en-Bresse and 117 in Vénissieux. further 1,000 hires announced in 2017.

In September the same year, it also chose Lyon, in preference to Stuttgart (Germany) and the US west coast, as the location for a global center of excellence for supply chain digitization. SOFTWARE AND IT SERVICES CGI recently created its own programming school (U’DEV) PROCSEA ESTABLISHES FIRST ONLINE in France, focusing on digital and IT development, in SEAFOOD MARKETPLACE IN RENNES partnership with the IPI and EPSI Schools of Computer Science. Financed entirely by CGI, the work-study training Swiss startup Procsea, which established itself in Rennes program will give the 180 students registered on the (Bretagne/Brittany region) in May 2016, created an online course the skills they need to find a permanent position fish market for maritime professionals in 2017. within a digital company. This B2B platform connects restaurant owners and Business France and its regional partners have been wholesalers who buy fish in bulk during auctions at France’s supporting the company with its expansion by helping many fishing ports. Renaud Enjalbert, Procsea’s founder, with various enquiries, from tax issues to HR or training, explains: “Each wholesaler is carefully selected before and putting them in touch with the relevant authorities. being added to the list. We feature a wide range of fish, and ask traders to only sell the very best. This is essential when the target markets are gourmet restaurants and five-star hotels, for whom we’ve created bespoke quality standards. It is up to them to decide what they want and how much they’re willing to pay.”

SOFTWARE AND IT SERVICES Procsea’s business model is also based on service provision, IBM OPENS A EUROPEAN R&D CENTER which includes dealing with customs formalities, billing ON CYBER SECURITY IN LILLE in foreign currencies, chasing outstanding invoices, logistics, and business loan protection. Procsea applies a Global leader in IT services and business solutions IBM commission of between 5 and 12% to each transaction, opened a Security Operations Center in 2017 at its new with the rate depending on the destination country and campus in Lille’s Euratechnologies cluster. the level of service provided.

Inaugurated in December, the center will create between In late 2016, a fundraising campaign helped Procsea to 80 and 100 new jobs over the next three years. launch a new version of its platform and to expand its team. In 2017, the 10-strong Rennes team joined the Village by CA Ille-et-Vilaine startup accelerator, which will provide a supportive environment to foster Procsea’s development for up to one year.

- 28 - 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

LEADING SOURCE COUNTRIES FOR FOREIGN INVESTMENT IN FRANCE (2017)

PROJECTS JOBS PROJECTS JOBS

COUNTRY 2016 2017 2016 2017 SHARE CHANGE SHARE CHANGE

United States 182 230 6,802 7,047 18% 26% 21% 4%

Germany 191 208 4,737 5,789 16% 9% 17% 22%

Italy 141 96 3,228 1,504 7% -32% 4% -53%

United Kingdom 85 89 3,713 2,527 7% 5% 8% -32%

Japan 67 65 1,490 1,926 5% -3% 6% 29%

Belgium 53 62 743 1,827 5% 17% 5% 146%

Switzerland 43 59 1,028 1,503 5% 37% 4% 46%

Canada 43 56 608 1,616 4% 30% 5% 166%

China 51 65 1,370 2,234 5% 27% 7% 63% including Hong Kong 4 11 47 299 1% 175% 1% 536%

Netherlands 36 53 800 1,497 4% 47% 4% 87%

Spain 45 45 715 811 3% 0% 2% 13%

Sweden 25 44 500 825 3% 76% 2% 65%

Austria 17 20 310 508 2% 18% 2% 64%

India 11 19 171 284 1% 73% 1% 66%

Ireland 11 17 372 279 1% 55% 1% -25%

Luxembourg 8 17 66 510 1% 113% 2% 673%

Denmark 18 15 550 224 1% -17% 1% -59%

Brazil 3 14 34 79 1% 367% 0% 132%

Finland 5 10 165 284 1% 100% 1% 72%

Portugal 1 8 6 118 1% 700% 0% 1,867%

Singapore 2 8 57 122 1% 300% 0% 114%

Australia 2 7 103 62 1% 250% 0% -40%

Mexico 3 7 39 47 1% 133% 0% 21%

Turkey 4 7 38 78 1% 75% 0% 105%

Morocco 6 6 220 44 0% 0% 0% -80%

Poland 1 6 2 186 0% 500% 1% 9,200%

Russia 8 6 108 35 0% -25% 0% -68%

Other 55 59 2,133 1,523 5% 7% 5% -29%

Total 1,117 1,298 30,108 33,489 100% 16% 100% 11%

Source: Business France, Annual Report

- 29 - 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

American investments in France rose sharply in 2017, up 26% from the previous year. The United States was They chose France the leading source country for investment in France and the chief provider of jobs, with 230 investment decisions, equating to 18% of all job-creating foreign investment recorded and 21% of jobs generated. American firms stood out for their commitment SOFTWARE AND IT SERVICES to research and development: with 33 investment INNOVATIVE STARTUP ZIFY SETS UP projects, the United States accounted for more than IN PARIS one-quarter of all inward R&D investments and 31% of jobs generated in this area, as well as 49% of jobs generated by foreign logistics investments. Zify’s flagship product is a dynamic, artificial intelligence- based mobile application for short- and medium-distance German investments in France remained buoyant, urban travel. It aims to help people save on travel costs, rising 9% from 2016, with 208 projects equating to thereby reducing congestion and making cities more 16% of foreign investments and 17% of jobs generated. sustainable. Zify also helps businesses reduce costs and German firms were among the main contributors encourages them to become better citizens along with to production/manufacturing operations, providing their employees. 16% of all foreign investment decisions and 20% of jobs generated in this area, along with logistics (24% Zify has been supported by Business France and its of foreign investments and 28% of jobs). partner Paris&Co throughout the setup process. The Indian startup received help in obtaining French residence Italy remained the third biggest foreign investor permits, joining the French Tech Ticket program (Zify in France in 2017, despite a 32% fall in project numbers was one of the winners in season 2), meeting with the from 2016. With 96 investment decisions, Italy authorities to help set up the company, establishing accounted for 7% of projects and 4% of jobs business contacts and fundraising. generated. Italian firms mainly invested in production/ manufacturing operations (28% of Italian investments in France during the year).

The United Kingdom remained France’s fourth largest foreign investor in 2017, as British investments TEXTILES, CLOTHING remained steady at 89 projects, providing 8% of all jobs ASICS TO OPEN SOUTHERN EUROPE generated by foreign investment. British investors were DISTRIBUTION CENTER IN OCCITANIE particularly active with retail outlets, accounting for 14% of all projects in this area. Leading investments involved After a review forming part of its strategic development names such as Action France, Lush France and Primark, plan following sustained growth, ASICS Europe recently all drawn to France by strong domestic demand. decided to streamline its logistics in Europe.

Japan was the leading Asian investor in France The result of its deliberations included an €11 million with in 2017, and fifth among all source countries investment in a new distribution center at a site near 65 investment decisions. Nearly two-thirds of all Montpellier-Méditerranée airport in Mauguio (Occitanie Japanese investments involved setting up decision- region), which beat off competition from Barcelona. making centers (32%) and production/manufacturing operations (32%). The Japanese firm and world’s fourth largest sports equipment maker expects to maintain 55 jobs at the new Inward investments from China, India and Brazil – site and create 50 new ones. the world’s leading emerging economies – were buoyant in 2017, with 93 investment decisions making up 7% of all inward investment in France.

- 30 - 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

AGRI-FOOD WHOLESALE AND RETAIL US INDUSTRIAL BAKERY EAST BALT NEW AMAZON DISTRIBUTION CENTER INVESTS IN PARIS REGION IN PROVENCE-ALPES-CÔTE D’AZUR

The American company confirmed plans to invest €30 The American e-commerce giant chose the area around million in a bread roll production facility for the Burger Bouc-Bel-Air, between Aix-en-Provence and Marseille, King franchise in Brétigny, Ile de France (Paris region), as the location for its fifth distribution center in France. creating 60 new jobs. The village’s close proximity to major highways means that Amazon will be able to roll out its faster “last mile” delivery service. The Bouc-Bel-Air site is due to become a hub that will serve the area between Montpellier and Nice.

AEROSPACE, NAVAL AND RAILWAY EQUIPMENT NANNI INDUSTRIES INVESTS IN R&D IN NOUVELLE AQUITAINE

Based in La Teste de Buch in Nouvelle Aquitaine, Nanni AUTOMOTIVE INDUSTRY Industries specializes in making marine diesel engines and BYD OPENS FIRST PRODUCTION generators. It employs around 60 people in its French FACILITY IN HAUTS DE FRANCE design office and production facility, and is a subsidiary of Italian firm Nanni Trading SRL, which has revenues of €20 Chinese firm and global leader in electric buses and million, and a network of 90 exclusive importers around batteries BYD (Build Your Dreams) chose Allonne, just the globe. outside Beauvais, in 2017 as the location for its new electric bus assembly facility. The site chosen is the It is one of the top three in the global market for inboard first greenfield manufacturing investment by a Chinese diesel engines and made R&D investments in France once company in the region, a rare event in both France and again in 2017 when it launched a program to create new Europe, as Chinese investors tend to acquire existing products. The company has been awarded a grant from manufacturing locations. the regional government and plans to create around fifteen new jobs. BYD also has plans to create an R&D and design center at the site. The initial investment phase will amount to €10 million, creating 100 jobs.

- 31 - 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

BUSINESS ACTIVITIES France’s increasing attractiveness to investors seen in large number of new investment decisions in strategic activities

The operations of companies can be broken down in France as an investment location. Most first-time into a variety of business activities: production/ investments in Europe were made by firms manufacturing, R&D, business services, consumer from the United States, China, Canada and Japan. services, logistics and distribution, retail outlets, decision-making centers and headquarters. The number of investment decisions involving global and European headquarters based in France declined slightly to 29 in 2017. American firms were responsible for one-third of all projects involving INCREASE IN NEW global headquarters, while those involving French DECISION-MAKING CENTERS headquarters rose to 37. IN 2017

Various entities within multinational corporations play a role in decision-making processes, including They chose France the company’s registered office, strategic and operational divisions, and R&D centers. Accordingly, decision- making is becoming increasingly fragmented, leading to the disappearance of single-site pyramidal decision- making structures. As companies become global, they have to create regional decision-making centers, ELECTRICAL/ELECTRONIC/IT EQUIPMENT as a result of which the power to make decisions is H3 DYNAMICS SETS UP EUROPEAN dispersed across large distances. HEADQUARTERS IN PARIS

A large increase (+28%) in foreign investments The Singapore-based group H3 Dynamics, comprising three involving decision-making centers was seen in 2017, entities (HES Energy Systems, HAS Awareness Systems and HUS with first-time investments in France or Europe rising Unmanned Systems), specializes in safety and maintenance by 36% and 92%, respectively, from the previous year. telerobotics, as well as hydrogen fuel cell systems. The upward trend in these investments – comprising all services or commercial activities designed to secure a In 2017, H3 Dynamics set up its European headquarters and foothold and establish a business to serve the French an R&D center in Paris to develop a data analysis platform, or European market – reflects growing confidence creating 35 jobs, including around twenty in R&D.

- 32 - 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

SOFTWARE AND IT SERVICES SOFTWARE AND IT SERVICES ‘TEXT AS A SERVICE’ STARTUP INSTAPLY SENTIO SPORTS ANALYTICS OPENS FIRST CHOOSES FRANCE EUROPEAN BASE IN AUVERGNE-RHÔNE-ALPES

California startup Instaply specializes in developing Sentio Sports Analytics is the first foreign startup to have cloud-based “text as a service” applications and customer taken part in the French Tech Ticket program through relationship management messaging solutions, enabling the Tarmac incubator in Grenoble. It has successfully brands and stores to engage with customers in real time developed real-time tracking technology for sports by SMS. players and teams, without them needing to wear sensors.

Founded in San Francisco in 2012, this fast-growing After a successful test season with the Turkish football startup decided in 2017 to set up a new European league, and a number of Italian teams, Sentio is considering decision-making center in Paris (Ile de France region) as recruiting up to ten people in France to roll out its cutting- well as an office in Lille (Hauts de France region), creating edge technology across European football leagues and around fifteen jobs. other sports, such as rugby and handball, as well as to investigate new business models.

BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY (2017)

PROJECTS JOBS PROJECTS JOBS

BUSINESS ACTIVITIES 2016 2017 2016 2017 SHARE CHANGE SHARE CHANGE

Decision-making centers 266 360 2,936 4,165 28% 35% 12% 42%

First-time investments in Europe 48 92 288 735 7% 92% 2% 155%

First-time investments in France 148 202 1,248 2,374 16% 36% 7% 90%

Global / European headquarters 36 29 468 345 2% -19% 1% -26%

French headquarters 34 37 932 711 3% 9% 2% -24%

Logistics 72 62 3,863 3,082 5% -14% 9% -20%

Retail outlets 114 126 3,459 1,839 10% 11% 5% -47%

Production / Manufacturing 280 343 11,271 16,213 26% 23% 48% 44%

R&D, engineering, design 115 125 2,612 2,282 10% 9% 7% -13%

R&D 72 83 1,001 1,461 6% 15% 4% 46%

Engineering 43 42 1,611 821 3% -2% 2% -49%

Business services 210 251 4,139 4,893 19% 20% 15% 18%

Consumer services 60 31 1,828 1,015 2% -48% 3% -44%

Total 1,117 1,298 30,108 33,489 100% 16% 100% 11%

- 33 - 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

METHODOLOGY ELECTRICAL/ELECTRONIC/IT EQUIPMENT ION SCIENCE ESTABLISHES FIRST FRENCH OFFICE DECISION-MAKING CENTERS IN PROVENCE-ALPES-CÔTE D’AZUR At multinational firms with numerous sites in Europe, the activities carried on by decision-making centers UK industrial gas detector manufacturer Ion Science is to open its first subsidiary in France. Ion Science France can include acting as: will be its third in Europe and its fourth in the world, all / A Global or European Headquarters, covering supported by a global network of distributors. This new perhaps not only Europe, but also northern Africa investment will help underpin the company’s position and the Middle East. in the French petrochemical, biochemical, oil and gas industries. / A French Headquarters, responsible for coordinating all a foreign company’s operations Duncan Johns, Managing Director of Ion Science, in France. explains: “With increasing numbers of customers in Headquarters can be defined as internal structures Europe, opening an office in France has always been an with a leader and team responsible for making important strategic step for us. As we always sell through distributors, we’re confident that the new office will strategic decisions that have a bearing on all or part enable us to provide a better service and gain greater of the company, particularly regarding investment market share.” 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 SOFTWARE AND IT SERVICES secure a foothold and establish a business to serve MIABOX OPENS FIRST EUROPEAN SUBSIDIARY the French or European market; the structures IN BRITTANY are generally smaller in size and are designed for operations of this scope to be run from France. Ivorian startup Miabox has developed a video on demand (VOD) platform and live streaming TV service specializing Activities such as those described above create in African and South American content. value – directly or indirectly – and are vital to the regions in which they are based. Firstly, headquarters It was therefore keen to set up a European-based require a highly qualified workforce, and can employ subsidiary to boost sales and establish better links with target audiences, telecommunications operators anywhere from a few hundred to a few thousand and audiovisual production groups. The startup was people in major corporations, depending on the also looking to conduct R&D and raise funds for its business sector and scope for decision-making. international expansion. Secondly, where a company decides to locate its headquarters makes it more likely that other After shortlisting both France and the Netherlands, operations, such as research laboratories, will follow. Miabox ultimately chose the French city of Rennes in It therefore becomes important for regions to remain Bretagne (Brittany) due to its tailor-made ecosystem, competitive should they wish to attract, consolidate including the Media & Networks innovation cluster, the IMT Atlantique digital technology school, as well as and retain economic activity. numerous large firms and SMEs specializing in connected TV. The investment is expected to create 27 jobs.

- 34 - 1,400 Wider criteria 1,298

1,200 1,117

1,014 1,000 962

800 Average number of projects (2007-2017): 729

600

400

624 641 639 782 698 693 685 740 734 814 968 200

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

35,000 33,682 Wider criteria 33,489

30,108 30,000 Average number of jobs (2007-2017): 30,092 26,535

25,000

20,000

15,000

10,000 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153

5,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Unknown

2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE Large corporates

SMEs

Mid-size companies

% 0 10 20 30 40 50 60

RENEWED GROWTH Fig. 15 BREAKDOWN BY SECTOR OF MANUFACTURING INVESTMENT PROJECTS IN FRANCE (2017) IN FOREIGN MANUFACTURING % % INVESTMENTS 90 16

The number of investment decisions made in 80 14 production/manufacturing operations rose 23% 70 in 2017 to 343, amounting to 26% of all foreign 12 investments in France. The importance of such 60 10 projects can be seen by the fact that these activities 50 were also the leading contributor to employment 8 in 2017, with 16,213 jobs, or 48% of all jobs generated 40 by foreign investment. The number of jobs generated 6 by production/manufacturing investments grew 30 4 sharply (+44%), which was reflected in a rise in 20 the average project size (47 jobs per investment 2 decision). 10

0 0 Confirmed production/manufacturing investments

mostly involved expanding existing production Construction, Machinery and Glass, ceramics, Pharmaceuticals Media, publishing Energy, recycling, Chemicals, plastics other concessions Transport, storage railway equipment Perfumes, cosmetics Automotive industry Aerospace, naval and building materials and biotechnologies facilities in France (72%) and new sites (9%). Metals, metalworking Consumer electronics Electronic components and business services minerals, wood, paper mechanical equipment diagnostics and devices Consulting, engineering Software and IT services clothing and accessories Textiles, industrial textiles, Medical/surgical equipment, Agri-food, agriculture, fishing Furnishings, household goods Investments confirmed by German, American, Italian Electrical/electronic/IT equipment and Belgian companies amounted to nearly half %Share of manufacturing projects Share of sector in all manufacturing % of all foreign production/manufacturing investments 60 by sector in France (left axis) projects in France (right axis)25 in France. Germany was France’s leading inward investor Source: Business France, Annual Report in this area, with 56 investment decisions, accounting 50 25 % for 16% of all production/manufacturing investments 15 and 20% of the jobs they generated. The United States 20 % was the next leading contributor, responsible for 16% 40 15 % of investment decisions and the same proportion Half of all production/manufacturing investments were 10 % of jobs generated. 30concentrated in the automotive industry (15% of 10all such investments), agri-food (13%), chemicals/plastics 5 % More than half of all investments in the metals (83%), (11%), machinery and mechanical equipment (10%) and glass/ceramics (82%), automotive (72%), chemicals/ 20metals (10%) sectors. In jobs terms, the automotive 0 % plastics (71%), agri-food (61%) and aerospace/naval/ industry, machinery and mechanical equipment and5 railway equipment (53%) sectors involved production/ 10metals sectors accounted for 52% of jobs generated by manufacturing operations. investments of this type.

0 0

Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics Consumer electronics Metals, metalworking Electronic components Education and training Software and IT services

Consulting, engineering and business services Textiles, industrial textiles, clothing and accessories Medical/surgical equipment, diagnostics and devices “Unattractive” sub-total % “Attractive” sub-total Proximity to markets and other company operations 14 1 12 50 37 86 Potential for research partnerships - 35 - with French academia 18 2 17 49 33 82 Quality of R&D personnel 19 2 17 45 36 81

Proximity to French innovation clusters 19 2 17 48 33 81

Access to finance 20 2 18 50 29 80

Amount of state aid for R&D 22 3 20 47 31 78

Cost of R&D operations 25 3 22 48 28 75

Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms

High value-added industry

High value-added services

Low value-added industry

Low value-added services % 0 5 10 15 20 25 30 35 40

250 Growth in jobs (%)

200 Machinery Sectors experiencing job and project growth

150 Cosmetics/perfumes

Automotive

Metals Chemicals/plastics 100

Wholesale/retail Medical eqpt. Media/publishing -50 Textiles

Other services Electronic components Sectors experiencing project growth -100

-150

3,500

3,000

2,500 63% 69% 2,000 65%

1,500 79%

1,000 81% 37% 500 31% 35% 19% 21% 0 2013 2014 2015 2016 2017

180

160

140

120 55% 100 53%

80 50% 60 56%

40 66% 45% 47% 50% 20 44% 34% 0 2013 2014 2015 2016 2017

1,200 61

1,000 50

800

989

600

681 783

61 400

40 233

126 200

0 5 000 198 202 179 166 130 0 2013 2014 2015 2016 2017

5 15.7 60

12.7

3.8 17.7

8 20.5 30 7.1 47.8

20 5 36.4 23.2 5.5 23 10

9.3 0 2013 2014 2015 2016 2017

United States 392

United Kingdom 342

Germany 31

Netherlands 19

Luxembourg 19

Canada 18

Belgium 15

Italy 11

Spain 11

11 Switzerland

Norway 8

Japan 7

Ireland 7

Denmark 5

40 Other 0 50 100 150 200 250 300 350 400 450

United States 24,236

United Kingdom 16,640

Germany 13,076

Netherlands 3,180

Belgium 2,845

Canada 2,262

Spain 1,780

Italy 814

Indonesia 582

China 412

Switzerland 382

Luxembourg 367

New Zealand 133

257 Other

0 5,000 10,000 15,000 20,000 25,000 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

They chose France

TRANSPORT, STORAGE METALS, METALWORKING EKOL LOGISTIQUES OPENS TWO NEW DISTRIBUTION CUKI COFRESCO OPENS NEW PRODUCTION CENTERS IN 2017 FACILITY IN AUVERGNE-RHÔNE-ALPES

Turkish carrier Ekol currently operates a weekly sea Cuki Cofresco is the Italian leader in food packaging, with freight service, with capacity for 185 semi-trailers and 400 employees and revenues of €200 million. containers, between Izmir, in Turkey, and the southern French port of Sète. The company now plans to introduce a Following its purchase of Ecopla (the last manufacturer of second service, to arrive in France every Sunday, following aluminum trays in France, which went into administration the launch of a vessel with capacity for 200 semi-trailers. in 2016), the Italian group decided to open a French subsidiary in the Auvergne-Rhône-Alpes region to run a In Sète, Ekol has already expanded its distribution center manufacturing business. from 6,500 sq. m. to 10,000 sq. m., and now plans to grow there by employing a further 80 people by the end By choosing the town of Grésivaudan in the French Alps of 2018, including 30 French drivers. With this expansion as the location for the new site, it preserved over two in mind, Ekol opened two further distribution centers in decades of expertise developed by former workers at November 2017, each measuring 2,000 sq. m., in Feyzin, Ecopla. near Lyon (Auvergne-Rhône-Alpes region), and Villeparisis (Ile de France / Paris region). There are currently 14 jobs This major industrial project will see €15 million invested spread over the two sites, with an additional 10 positions and 44 new jobs created over the next three years. The to be created by the end of 2018. Ekol has also acquired French government has been able to support the Italian 25 tractor units registered in France and plans to purchase company’s investment in France by granting them a another 25 by the end of the year. €2 million business development loan, to be repaid once Cuki France has become well established.

AUTOMOTIVE INDUSTRY TOYOTA ANNOUNCES €300 MILLION INVESTMENT TRANSPORT, STORAGE IN HAUTS DE FRANCE P&O PORTS DROPS ANCHOR IN SÈTE TO BOOST CONTAINER ACTIVITY Toyota Motor Corporation announced a new €300 million investment at its Toyota Motor Manufacturing This subsidiary of DP World won the call for project France (TMMF) vehicle production facility in Onnaing, proposals to increase container activity at the commercial near Valenciennes, in northern France. Over the coming port of Sète, in southern France, following the completion months, the site will be gradually upgraded to house new of a new 470m-long wharf in October 2016. equipment, technology and systems in preparation for the introduction of the Toyota New Global Architecture (TNGA) The partnership between P&O Ports and the Port of Sète platform. Toyota initially intends to offer permanent was officially signed on July 11, 2017, and it is hoped contracts to 300 temporary staff to start preparatory that an estimated investment of some €30-40 million will work, with the possibility of 400 new permanent positions generate around fifty new jobs over three years. being created once the site has reached its output target of 300,000 vehicles per year.

- 36 - 1,400 Wider criteria 1,298

1,200 1,117

1,014 1,000 962

800 Average number of projects (2007-2017): 729

600

400

624 641 639 782 698 693 685 740 734 814 968 200

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

35,000 33,682 Wider criteria 33,489

30,108 30,000 Average number of jobs (2007-2017): 30,092 26,535

25,000

20,000

15,000

10,000 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153

5,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Unknown

Large corporates

SMEs

2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

Mid-size companies

% 0 10 20 30 40 50 60

% % highly qualified jobs that generate high value added 90 16 and are generally more stable than manufacturing jobs. 80 14 AUTOMOTIVE INDUSTRY R&D, engineering and design accounted for 10% 70 AUTOMOTIVE SUPPLIER MAGNA INVESTS IN ITS of all foreign investment decisions in 2017, generating 12 FRENCH PRODUCTION FACILITIES seven60 percent of all jobs created in France by foreign investors. Investments in R&D operations involved 10 setting50 up new R&D and engineering centers (47%) Magna International is a world-class Canadian automotive 8 supplier. Present in 29 countries across North America, or expanding40 existing operations (51%). Europe, Asia, South America and Africa, with 317 industrial 6 operations and 99 centers specializing in engineering, The 30United States (26%), Italy (12%), Canada (9%) and Germany (8%) were together responsible for 4 sales and product development, Magna is the world’s 20 largest supplier of integrated automotive equipment. more than half of all foreign R&D, engineering 2 and design10 investments in France in 2017.

The company works with 78 other businesses in the 0 0 automotive sector, including Renault, Peugeot and

Citroën, and employs a total of 163,000 people, including Construction, Machinery and Glass, ceramics, Pharmaceuticals Media, publishing Energy, recycling, Chemicals, plastics other concessions Transport, storage railway equipment Perfumes, cosmetics Automotive industry Aerospace, naval and building materials and biotechnologies 55,000 in Europe. Metals, metalworking BREAKDOWN BY SECTOR OF R&D INVESTMENT Consumer electronics Electronic components and business services minerals, wood, paper mechanical equipment Fig. 16 diagnostics and devices Consulting, engineering Software and IT services clothing and accessories PROJECTS IN FRANCE (2017) Textiles, industrial textiles, Medical/surgical equipment, Agri-food, agriculture, fishing Furnishings, household goods Magna employs 925 people in France across six sites, Electrical/electronic/IT equipment including three production facilities in the Grand Est % % region, and two centers specializing in engineering, sales 60 25 and product development in Bourgogne-Franche-Comté.

50 25 % In 2017, Magna announced plans to hire nearly a hundred 15 people: 30 at its production facility in Henriville, 15 in 20 % 40 Hambach, and around fifty at its engineering center in 15 % Étupes (all in eastern France). 10 % 30 10

5 %

20 0 % 5

10 R&D PROJECTS REMAIN BUOYANT IN 2017 0 0

Innovation is recognized by business decision-makers

Chemicals, plastics Transport, storage to be a driving force behind France’s attractiveness Automotive industry Perfumes, cosmetics Consumer electronics Metals, metalworking Electronic components Education and training as an investment location, as is the thriving “La French Software and IT services Agri-food, agriculture, fishing Construction, building materials Tech” ecosystem. Electrical/electronic/IT equipment Telecoms, internet service providers Energy, recycling, other concessions Pharmaceuticals and biotechnologies Machinery and mechanical equipment Glass, ceramics, minerals, wood, paper Aerospace, naval and railway equipment Financial services, banking and insurance

Consulting, engineering and business services The number of foreign investment projects in R&D, Textiles, industrial textiles, clothing and accessories Medical/surgical equipment, diagnostics and devices “Unattractive” sub-total % “Attractive” sub-total engineering and design activities boosted this Share of R&D projects Share of sector in all R&D Proximity to markets and entrepreneurial momentum in 2017, with 125 investment by sector inother France company (left operations axis) 14 1 12projects 50in France (right37 axis) 86 decisions (up 9% from 2016), including 83 in R&D alone. Potential for research partnerships with French academia 18 2 17 49 33 82 Beyond their impact on growth, R&D operations supply Source: Business France, Annual Report Quality of R&D personnel 19 2 17 45 36 81

Proximity to French innovation clusters 19 2 17 48 33 81

Access to finance 20 2 18 50 29 80

Amount of state aid for R&D 22 3 20 47 31 78

Cost of R&D operations 25 3 22 48 28 75

- 37 - Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms

High value-added industry

High value-added services

Low value-added industry

Low value-added services % 0 5 10 15 20 25 30 35 40

250 Growth in jobs (%)

200 Machinery Sectors experiencing job and project growth

150 Cosmetics/perfumes

Automotive

Metals Chemicals/plastics 100

Wholesale/retail Medical eqpt. Media/publishing -50 Textiles

Other services Electronic components Sectors experiencing project growth -100

-150

3,500

3,000

2,500 63% 69% 2,000 65%

1,500 79%

1,000 81% 37% 500 31% 35% 19% 21% 0 2013 2014 2015 2016 2017

180

160

140

120 55% 100 53%

80 50% 60 56%

40 66% 45% 47% 50% 20 44% 34% 0 2013 2014 2015 2016 2017

1,200 61

1,000 50

800

989

600

681 783

61 400

40 233

126 200

0 5 000 198 202 179 166 130 0 2013 2014 2015 2016 2017

5 15.7 60

12.7

3.8 17.7

8 20.5 30 7.1 47.8

20 5 36.4 23.2 5.5 23 10

9.3 0 2013 2014 2015 2016 2017

United States 392

United Kingdom 342

Germany 31

Netherlands 19

Luxembourg 19

Canada 18

Belgium 15

Italy 11

Spain 11

11 Switzerland

Norway 8

Japan 7

Ireland 7

Denmark 5

40 Other 0 50 100 150 200 250 300 350 400 450

United States 24,236

United Kingdom 16,640

Germany 13,076

Netherlands 3,180

Belgium 2,845

Canada 2,262

Spain 1,780

Italy 814

Indonesia 582

China 412

Switzerland 382

Luxembourg 367

New Zealand 133

257 Other

0 5,000 10,000 15,000 20,000 25,000 1,400 Wider criteria 1,298

1,200 1,117

1,014 1,000 962

800 Average number of projects (2007-2017): 729

600

400

624 641 639 782 698 693 685 740 734 814 968 200

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

35,000 33,682 Wider criteria 33,489

30,108 30,000 Average number of jobs (2007-2017): 30,092 26,535

25,000

20,000

15,000

10,000 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153

5,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Unknown

Large corporates

SMEs

Mid-size companies

% 0 10 20 30 40 50 60

2 . FOREIGN INVESTMENT IN FRANCE IN 2017

% % 90 16

80 14

70 12

60 10 50 8 40 6 30 In 2017, two sectors together accounted for more 4 than one-third of all foreign investments in R&D, 20 FRANCE: engineering and design: software and IT services (22%), 2 10 AN INNOVATIVE ECONOMY and consulting, engineering and business services (12%). A large proportion of inward investments in Innovation and R&D in France are regularly cited by 0 0 the French pharmaceuticals/biotechnologies and foreign business executives. Eighty-one percent of electronic components sectors were R&D projects, decision-makersConstruction, whoMachinery responded and to a recent survey Glass, ceramics, Pharmaceuticals Media, publishing Energy, recycling, Chemicals, plastics other concessions Transport, storage railway equipment Perfumes, cosmetics Automotive industry Aerospace, naval and building materials which amounted to 34% and 22%, respectively, of all and biotechnologies Metals, seemetalworking them as competitive advantages for France,Consumer electronics Electronic components and business services minerals, wood, paper mechanical equipment diagnostics and devices Consulting, engineering Software and IT services clothing and accessories Textiles, industrial textiles, Medical/surgical equipment, investments in these sectors. up five percentage points in a year. Furnishings, household goods Agri-food, agriculture, fishing

Electrical/electronic/IT equipment France is also deemed to be particularly attractive %when judged on human capital criteria, with its % 60 well qualified R&D personnel (81%) and research 25 partnerships with academia (82%) being looked on favorably by foreign decision-makers. 50 25 % France’s ecosystem is also acknowledged to be 15 innovation-friendly (78%). Among the innovation They chose France 20 % 40 support on offer, France’s research tax credit serves as a strong incentive encouraging companies 15 % to conduct R&D in the country. Eighty-six percent 10 % 30 of foreign executives cite it as a reason for setting up10 R&D operations in France. 5 % PHARMACEUTICALS AND BIOTECHNOLOGIES 20 More than eight in 10 (85%) foreign business leaders say 0 % that pro-innovation government policy has made France SARTORIUS STEDIM EXPANDS R&D OPERATIONS 5 a more attractive location for their company. Innovation NEAR MARSEILLE 10 support – such as France’s research tax credit, talent passports, and the French Tech Ticket – are all better German firm Sartorius Stedim Biotech, specializing known than last year, with substantial gains among 0 in producing single-use biopharmaceutical bags and the German, British and Emirati business communities.0 containers, committed itself in 2017 to a new €23 million R&D program in Aubagne, just outside Marseille. FRANCE’S ATTRACTIVENESS Fig. 17 Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics FOR R&D INVESTMENTS Consumer electronics Metals, metalworking Electronic components Education and training Software and IT services The challenges for this investment include replacing QUESTION: Agri-food, agriculture, fishing stainless steel with guaranteed sterile bags that meet Construction, building materials Electrical/electronic/IT equipment Telecoms, internet service providers Energy, recycling, other concessions PharmaceuticalsFor and biotechnologies each of the following criteria, is France in your view very Machinery and mechanical equipment strict customer specifications while also serving as smart Glass, ceramics, minerals, wood, paper Aerospace, naval and railway equipment or fairly attractive, or very or fairlyFinancial services, bankingunattractive, and insurance devices, as well as predicting changing customer needs. Consulting, engineering and business services for R&D investments? Textiles, industrial textiles, clothing and accessories Medical/surgical equipment, diagnostics and devices “Unattractive” sub-total % “Attractive” sub-total Meanwhile, Sartorius Stedim is to increase production Proximity to markets and capacity at its French site by building 2,500 sq. m. of 14 1 12 50 37 86 other company operations clean rooms. Potential for research partnerships with French academia 18 2 17 49 33 82 Quality of R&D personnel 19 2 17 45 36 81 The company’s distribution network is also being expanded through a €10 million investment, while a Proximity to French innovation clusters 19 2 17 48 33 81 recruitment campaign for 200 new positions will bring the Access to finance 20 2 18 50 29 80 headcount to nearly 900 by the end of 2018. Proof, if any Amount of state aid for R&D 22 3 20 47 31 78 further were needed, that Sartorius’ French subsidiary is

Cost of R&D operations 25 3 22 48 28 75 a driving force behind its expanding product portfolio.

Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms

Very unattractive Fairly unattractive Fairly attractive Very attractive

Source: Kantar Public/Business France survey

High value-added industry

High value-added services

Low value-added industry - 38 -

Low value-added services % 0 5 10 15 20 25 30 35 40

250 Growth in jobs (%)

200 Machinery Sectors experiencing job and project growth

150 Cosmetics/perfumes

Automotive

Metals Chemicals/plastics 100

Wholesale/retail Medical eqpt. Media/publishing -50 Textiles

Other services Electronic components Sectors experiencing project growth -100

-150

3,500

3,000

2,500 63% 69% 2,000 65%

1,500 79%

1,000 81% 37% 500 31% 35% 19% 21% 0 2013 2014 2015 2016 2017

180

160

140

120 55% 100 53%

80 50% 60 56%

40 66% 45% 47% 50% 20 44% 34% 0 2013 2014 2015 2016 2017

1,200 61

1,000 50

800

989

600

681 783

61 400

40 233

126 200

0 5 000 198 202 179 166 130 0 2013 2014 2015 2016 2017

5 15.7 60

12.7

3.8 17.7

8 20.5 30 7.1 47.8

20 5 36.4 23.2 5.5 23 10

9.3 0 2013 2014 2015 2016 2017

United States 392

United Kingdom 342

Germany 31

Netherlands 19

Luxembourg 19

Canada 18

Belgium 15

Italy 11

Spain 11

11 Switzerland

Norway 8

Japan 7

Ireland 7

Denmark 5

40 Other 0 50 100 150 200 250 300 350 400 450

United States 24,236

United Kingdom 16,640

Germany 13,076

Netherlands 3,180

Belgium 2,845

Canada 2,262

Spain 1,780

Italy 814

Indonesia 582

China 412

Switzerland 382

Luxembourg 367

New Zealand 133

257 Other

0 5,000 10,000 15,000 20,000 25,000 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

SOFTWARE AND IT SERVICES SOFTWARE AND IT SERVICES SYMPHONY COMMUNICATION SERVICES, UPSKILLS SETS UP GLOBAL R&D CENTER A ‘UNICORN’ COMES TO SOPHIA ANTIPOLIS IN PARIS REGION

Founded in 2014 in Silicon Valley, Symphony is a secure Singapore-based Upskills provides expertise in software cloud-based instant-messaging and content sharing solutions for the investment banking and financial platform. The company has more than 300,000 users institutions sector in Asia-Pacific, the Middle East and worldwide, most of whom are financial professionals. Europe.

Now a ‘unicorn’ worth more than US$1 billion, Symphony After opening subsidiaries in Asia, Upskills decided to decided in 2017 to set up its first European R&D center in reshuffle its operations and open a global R&D center in France, while maintaining its headquarters and most of the Sophia Antipolis technology park, near Nice, creating the consultancy side of the business in Asia. a hundred new jobs for highly qualified engineers in cloud technologies. Their investment in France is expected to create around thirty jobs, mainly in R&D.

SOFTWARE AND IT SERVICES TRUCKNET OPENS FIRST EUROPEAN BASE IN PARIS REGION

Israeli firm Trucknet has confirmed its taste for innovation by developing a system for sharing data and streamlining the transport of goods. Their cloud platform is aimed squarely at transport professionals, enabling them to share floor space, thereby improving profitability and reducing environmental impacts.

Following Trucknet’s participation in the 2015 United Nations Climate Change Conference, this leading logistics company decided to open its first European base in France in 2017.

- 39 - 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

BUSINESS SECTOR ANALYSIS Foreign investors in France operate in a variety of sectors

There were 746 investment decisions in The source of investments in France in 2017 varied the manufacturing sector in 2017, accounting by business sector. While American investments were for 57% of all inward investment projects. particularly prevalent in the software/IT services sector Service-sector companies were responsible (35% of all foreign investment decisions in this area) for 552 investment decisions (43%). as well as the electrical/electronic/IT equipment sector (20%), German firms stood out for making a third The leading sectors of companies investing in France of all foreign investments in the automotive industry, in 2017 were software and IT services (14%), consulting, wholesale/retail, and energy sectors. Italian companies engineering and business services (9%), wholesale meanwhile made a key contribution in metals/ and retail (8%), machinery and mechanical equipment metalworking and aerospace/naval/railway equipment, (7%), agri-food (6%), and the automotive industry (6%). accounting for a quarter of all foreign investments in these sectors.

They chose France

SOFTWARE AND IT SERVICES SOFTWARE AND IT SERVICES COMARCH SAS SETS UP BUSINESS MINDMAZE INVESTS IN HAUTS DE FRANCE IN FRENCH BRAIN POWER

Polish software publisher Comarch SAS, which also This Swiss ‘unicorn’ valued at US$1 billion, founded in specializes in high value-added IT services and solutions 2012, specializes in developing virtual reality software to for the retail trade, invested €8.3 million in 2017 in help with the neurological rehabilitation of stroke victims. Lezennes, northern France, to build a data center to serve The startup established itself in France in 2017, and has its customers in Western Europe. The investment led to an R&D center in Paris, where a dozen researchers have the recruitment of 10 people in 2017, with a further thirty been working on how to interpret brain signals. jobs set to be created by the end of 2019.

- 40 - 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR (2017)

PROJECTS JOBS PROJECTS JOBS

BUSINESS SECTOR 2016 2017 2016 2017 SHARE CHANGE SHARE CHANGE

Machinery and mechanical equipment 64 87 1,198 3,602 7% 36% 11% 201%

Agri-food, agriculture and fishing 73 76 1,845 2,407 6% 4% 7% 30%

Automotive industry 50 72 1,791 3,766 6% 44% 11% 110%

Textiles, industrial textiles, clothing and accessories 68 60 2,816 1,024 5% -12% 3% -64%

Electrical/electronic/IT equipment 44 56 524 752 4% 27% 2% 44%

Chemicals, plastics 37 55 727 1,502 4% 49% 4% 107%

Energy, recycling, other concessions 52 53 806 733 4% 2% 2% -9%

Metals, metalworking 30 42 1,314 2,729 3% 40% 8% 108%

Glass, ceramics, minerals, wood, paper 32 38 710 995 3% 19% 3% 40%

Construction, building materials 27 36 527 470 3% 33% 1% -11%

Aerospace, naval and railway equipment 37 34 2,550 1,769 3% -8% 5% -31%

Medical/surgical equipment, diagnostics and devices 22 32 724 452 2% 45% 1% -38%

Furnishings, household goods 19 30 509 361 2% 58% 1% -29%

Pharmaceuticals and biotechnologies 30 27 917 783 2% -10% 2% -15%

Perfumes, cosmetics 20 25 111 273 2% 25% 1% 146%

Consumer electronics 5 14 290 265 1% 180% 1% -9%

Electronic components 12 5 310 55 0.4% -58% 0.2% -82%

Manufacturing sub-total 622 742 17,699 21,938 57% 19% 66% 24%

Software and IT services 136 184 2,360 3,275 14% 35% 10% 39%

Consulting, engineering and business services 106 120 1,790 2,516 9% 13% 8% 41%

Wholesale and retail 98 100 4,123 2,602 8% 2% 8% -37%

Transport, storage 54 52 1,441 1,182 4% -4% 4% -18%

Financial services, banking and insurance 21 33 398 545 3% 57% 2% 37%

Other services 28 30 636 283 2% 7% 1% -56%

Hospitality, tourism and restaurants 36 18 1,187 821 1% -50% 2% -31%

Education and training - 9 - 89 1% - 0.3% -

Telecoms, internet service providers 8 6 384 209 0.5% -25% 1% -46%

Media, publishing 8 4 120 29 0.3% -50% 0.1% -76%

Services sub-total 495 556 12,439 11,551 43% 13% 34% -7%

Total 1,117 1,298 30,108 33,489 100% 16% 100% 11%

- 41 - 1,400 Wider criteria 1,298

1,200 1,117

1,014 1,000 962

800 Average number of projects (2007-2017): 729

600

400

624 641 639 782 698 693 685 740 734 814 968 200

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

35,000 33,682 Wider criteria 33,489

30,108 30,000 Average number of jobs (2007-2017): 30,092 26,535

25,000

20,000

15,000

10,000 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153

5,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Unknown

Large corporates

SMEs

Mid-size companies

% 0 10 20 30 40 50 60

% % 90 16

80 14

70 12

60 10 50 8 40 6 30 4 20

2 10

0 0

Electrical/electronic/IT equipment

% % 60 25

50 25 %

15 20 % 40 15 %

10 % 30 10

5 %

20 0 % 5

0 0

Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics Consumer electronics Metals, metalworking Electronic components Education and training Software and IT services

Proximity to French innovation clusters 19 2 17 48 33 81

Access to finance 20 2 18 50 29 80

Amount of state aid for R&D 22 3 20 47 31 78

Cost of R&D operations 25 3 22 48 28 75

Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms

High value-added industry 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

High value-added services

Low value-added industry

Low value-added services % 0 5 10 15 20 25 30 35 40

There was also significant growth in foreign investment cosmetics, chemicals/plastics, automotive, software decisions and jobs generated by companies in the and IT services, financial services/banking/insurance, machinery and mechanical equipment, perfumes and and electrical/electronic/IT equipment sectors.

Fig. 18 TRENDS IN PROJECT AND JOB NUMBERS (2016-17)

250 Growth in jobs (%)

200 Machinery Sectors experiencing job and project growth

150 Cosmetics/perfumes

Automotive

Metals Chemicals/plastics 100

Wholesale/retail Medical eqpt. Media/publishing -50 Textiles

Other services Electronic components Sectors experiencing project growth -100

-150

Key: In comparison with 2016, a 36% increase in investment decisions in the machinery and mechanical equipment sector led to a 200% increase in jobs generated.

Source: Business France, Annual Report

3,500 - 42 - 3,000

2,500 63% 69% 2,000 65%

1,500 79%

1,000 81% 37% 500 31% 35% 19% 21% 0 2013 2014 2015 2016 2017

180

160

140

120 55% 100 53%

80 50% 60 56%

40 66% 45% 47% 50% 20 44% 34% 0 2013 2014 2015 2016 2017

1,200 61

1,000 50

800

989

600

681 783

61 400

40 233

126 200

0 5 000 198 202 179 166 130 0 2013 2014 2015 2016 2017

5 15.7 60

12.7

3.8 17.7

8 20.5 30 7.1 47.8

20 5 36.4 23.2 5.5 23 10

9.3 0 2013 2014 2015 2016 2017

United States 392

United Kingdom 342

Germany 31

Netherlands 19

Luxembourg 19

Canada 18

Belgium 15

Italy 11

Spain 11

11 Switzerland

Norway 8

Japan 7

Ireland 7

Denmark 5

40 Other 0 50 100 150 200 250 300 350 400 450

United States 24,236

United Kingdom 16,640

Germany 13,076

Netherlands 3,180

Belgium 2,845

Canada 2,262

Spain 1,780

Italy 814

Indonesia 582

China 412

Switzerland 382

Luxembourg 367

New Zealand 133

257 Other

0 5,000 10,000 15,000 20,000 25,000 1,400 Wider criteria 1,298

1,200 1,117

1,014 1,000 962

800 Average number of projects (2007-2017): 729

600

400

624 641 639 782 698 693 685 740 734 814 968 200

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

35,000 33,682 Wider criteria 33,489

30,108 30,000 Average number of jobs (2007-2017): 30,092 26,535

25,000

20,000

15,000

10,000 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153

5,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Unknown

Large corporates

SMEs

Mid-size companies

% 0 10 20 30 40 50 60

% % 90 16

80 14

70 12

60 10 50 8 40 6 30 4 20

2 10

0 0

Electrical/electronic/IT equipment

% % 60 25

50 25 %

15 20 % 40 15 %

10 % 201730 RE PORT - BUSINESS FRANCE FOREIGN 10INVESTMENT IN FRANCE 5 %

20 0 % 5

0 0 MOST INVESTMENT The number of projects in priority segments rose 27% in 2017 to 427 investment decisions, equating

PROJECTS STILL Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics Consumer electronics to one-third of all foreign investments confirmed Metals, metalworking Electronic components Education and training IN TECHNOLOGY-RICHSoftware and IT services SECTORS in France during the year, and a similar proportion Agri-food, agriculture, fishing Construction, building materials Electrical/electronic/IT equipment of all jobs generated. Telecoms, internet service providers Energy, recycling, other concessions Pharmaceuticals and biotechnologies Machinery and mechanical equipment Technology-rich manufacturing sectors (suchGlass, ceramics, minerals,as wood, paper Aerospace, naval and railway equipment Financial services, banking and insurance pharmaceuticalsConsulting, engineeringand and business services biotechnologies, electronic Textiles, industrial textiles, clothing and accessories The digital economy, agri-food/nutrition, logistics/ Medical/surgical equipment, diagnostics and devices components and equipment,“Unattractive” sub-total energy, %chemicals,“Attractive” sub-total e-commerce, health/wellbeing, and energy efficiency/ or aerospace/naval/railwayProximity to markets and equipment) and knowledge- other company operations 14 1 12 50 37 86 sustainable energy segments were predominant, intensive Potentialservices for research (such partnerships as consulting and engineering, 18 2 17 49 33 82 accounting for 86% of all investments in priority or software andwith FrenchIT services) academia accounted for 54% of all segments and 84% of all associated jobs. investments Qualityin France of R&D personnel in 2017,19 2 with17 high45 value-added36 81 servicesProximity making to French innovation up 26%clusters of19 investments,2 17 48 and 33high 81 German businesses dominated the logistics/ value-added manufacturing 28%. These sectors were e-commerce and energy efficiency/sustainable Access to finance 20 2 18 50 29 80 also responsible for 57% of all jobs generated by energy segments, where they were responsible for inward investmentAmount of state aid in for France.R&D 22 3 20 47 31 78 one-quarter and 37% of all investments, respectively, Cost of R&D operations 25 3 22 48 28 75 while American firms stood out in the health/wellbeing (31%) and digital economy (30%) segments. Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms Fig. 19 BREAKDOWN OF PROJECTS Also of note was the investment attractiveness of BY TECHNOLOGY INTENSITY (2017) Ile de France (Paris region) in the digital economy segment (55%) and the Occitanie region in agri-food/ nutrition (21%). High value-added industry

High value-added services They chose France

Low value-added industry

Low value-added services % 0 5 10 15 20 25 30 35 40 EUROPEAN BANKING AUTHORITY Jobs Projects TO MOVE ACROSS THE CHANNEL AFTER BREXIT

Key: In 2017, high value-added industry accounted for 28% of foreign investment Following the United Kingdom’s decision to withdraw from projects and 38% of jobs generated. the European Union, the European Banking Authority, Source: Business France, Annual Report currently based in London, was required to make plans to move to another EU country, creating 189 jobs.

A task force comprising Business France, Paris Region Economic Development Agency, Paris City Hall, Europlace GREATER PROJECT NUMBERS and FBF, supervised by the French Treasury, was formed IN PRIORITY SEGMENTS 250 Growth in jobs (%) to put forward Paris’ case as the new host city. On November 20, 2017 the European Commission confirmed Business France’s ‘priority segments’ are mainly it had chosen the French capital. in technological fields (in line with the interests of France’s innovation clusters), but also respond Seventy percent of business leaders surveyed by Kantar 200 to regional development objectives (agri-food) Machinery Public for Business France believe that Brexit represents Sectors experiencing job and business opportunities (tourism). The list of a real opportunity for France,and project growth with French banks (62%) priority segments is updated every year, in conjunction and large companies (61%) expected to be among the with France’s regions following discussions between greatest beneficiaries as things stand. In the wake of this Business France, government ministers150 and decision, France has seen a sharp rise (+57%) in foreign the Businesses Directorate (DGE). Cosmetics/perfumes investment in the financial services and insurance sectors.

Automotive

Metals Chemicals/plastics 100

- 43 -

Wholesale/retail Medical eqpt. Media/publishing -50 Textiles

Other services Electronic components Sectors experiencing project growth -100

-150

3,500

3,000

2,500 63% 69% 2,000 65%

1,500 79%

1,000 81% 37% 500 31% 35% 19% 21% 0 2013 2014 2015 2016 2017

180

160

140

120 55% 100 53%

80 50% 60 56%

40 66% 45% 47% 50% 20 44% 34% 0 2013 2014 2015 2016 2017

1,200 61

1,000 50

800

989

600

681 783

61 400

40 233

126 200

0 5 000 198 202 179 166 130 0 2013 2014 2015 2016 2017

5 15.7 60

12.7

3.8 17.7

8 20.5 30 7.1 47.8

20 5 36.4 23.2 5.5 23 10

9.3 0 2013 2014 2015 2016 2017

United States 392

United Kingdom 342

Germany 31

Netherlands 19

Luxembourg 19

Canada 18

Belgium 15

Italy 11

Spain 11

11 Switzerland

Norway 8

Japan 7

Ireland 7

Denmark 5

40 Other 0 50 100 150 200 250 300 350 400 450

United States 24,236

United Kingdom 16,640

Germany 13,076

Netherlands 3,180

Belgium 2,845

Canada 2,262

Spain 1,780

Italy 814

Indonesia 582

China 412

Switzerland 382

Luxembourg 367

New Zealand 133

257 Other

0 5,000 10,000 15,000 20,000 25,000 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

BREAKDOWN OF PROJECTS BY PRIORITY SEGMENT (2017)

PROJECTS JOBS CHANGE

PRIORITY SEGMENTS 2016 2017 2016 2017 PROJECTS JOBS

Digital economy 64 96 961 1,762 50% 83%

Agri-food and nutrition 74 75 1,521 2,327 1% 53%

Logistics and e-commerce 78 74 3,724 1,788 -5% -52%

Health and wellbeing 48 72 1,569 1,387 50% -12%

Energy efficiency, sustainable energy 49 52 871 1,948 6% 124%

Smart devices, equipment, industries and services 21 52 337 997 148% 196%

FinTech and financial services 17 32 194 500 88% 158%

Tourism, culture and leisure 27 32 959 881 19% -8%

Community transport and infrastructure 9 14 1,369 807 56% -41%

Education and training (including e-learning) 9 11 87 114 22% 31%

New personal vehicles 6 10 189 177 67% -6%

New resources, materials and bioeconomy 10 3 173 40 -70% -77%

Total 348 427 11,954 12,728 23% 0%

SOFTWARE AND IT SERVICES SOFTWARE AND IT SERVICES NORMANDY’S ELECTRONIC PAYMENTS CLUSTER TOGOLESE STARTUP JOINS FRENCH ATTRACTS SENEGALESE STARTUP YEWOU FINTECH INDUSTRY

Yewou is a FinTech startup, based in Senegal, western Semoa, or “Service Mobile for Africa”, is a Togolese startup Africa, and Rwanda, eastern Africa, led by two talented that has designed a payment solution adapted to the Senegalese individuals. Their mobile application and web- needs of Sub-Saharan Africa, where bank services are based intermediation service specializes in transfers and not commonplace, making it difficult for the diaspora in other financial transactions for diasporas to send money Europe and North America to send money home. Semoa back to their home countries in Africa, particularly the recently launched the concept in Togo, and is now looking Maghreb, as well as South America and Asia. The startup’s to develop its ideas by conducting R&D in France with the plans involved setting up an R&D center and a European Images & Networks and E-Secure Transactions innovation sales office within an incubator or accelerator, and clusters. engaging in fundraising. Business France’s Investment Division helped the founder After shortlisting France, the United Kingdom, Luxembourg obtain a residence permit, enabling him to manage the and the United States, the startup founders ultimately startup in Nantes, where he is currently based after chose Caen, in Normandy, and its E-Secure Transactions completing his studies there. This investment project is division, specializing in automated payment systems, in expected to create 13 jobs over three years, half of them a move that will create around twenty jobs over the next in R&D, with the startup also recently receiving an award three years. from the Finance Innovation cluster.

- 44 - 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

INVESTMENT TYPES Buoyant numbers of new sites confirm France’s attractiveness as an investment location

Several different types of foreign investment projects have in the country as an investment location. There was can be distinguished in our analysis: creations a 22% rise in the number of expansion projects confirmed of new sites (‘greenfield investment’), expansions in 2017, with 551 investment decisions, or 42% of the to existing sites, buyouts, takeovers of ailing sites, new total. This investment type was also responsible for 38% partnerships, or expansions following takeovers. In this of jobs generated by foreign investment. report, Business France only records investment projects which create jobs, or which enable jobs under threat Expansion projects in 2017 mostly involved production/ at an ailing company to be maintained (see Appendix: manufacturing operations (72%). Job-creating physical investment selection criteria).

SITE CREATIONS HOLD Fig. 20 BREAKDOWN OF PROJECTS UPPER HAND BY INVESTMENT TYPE (2017)

In 2017, the number of decisions to invest at new sites in France grew 14% to 651, accounting for 50% of all 3% investment projects and 37% of all jobs generated. Site 4% creations most frequently involved decision-making 1% centers, as 82% of them were first-time investments Creation in France or Europe. Expansion 42% 50% Jobs generated by new sites accounted for 38% Takeover of all jobs generated by foreign investment. Expansion following buyout Expansion following takeover INCREASE IN EXPANSION PROJECTS IN 2017

Expansion projects are a sign of the confidence that foreign-owned subsidiaries already set up in France Source: Business France, Annual Report

- 45 - 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

BREAKDOWN OF PROJECTS BY INVESTMENT TYPE (2016-17)

PROJECTS JOBS PROJECTS JOBS

INVESTMENT TYPE 2016 2017 2016 2017 SHARE CHANGE SHARE CHANGE

Creation 569 651 11,520 12,639 50% 14% 38% 10%

Expansion 452 551 12,391 12,855 42% 22% 38% 4%

Expansion following buyout 37 33 669 844 3% -11% 3% 26%

Takeover 49 56 4,898 6,846 4% 14% 20% 40%

Expansion following takeover 10 7 360 305 1% -30% 1% -52%

Total 1,117 1,298 30,108 33,489 100% 16% 100% 11%

They chose France

CONSULTING, ENGINEERING AND BUSINESS SERVICES AUTOMOTIVE INDUSTRY THE BIOTECH QUALITY GROUP MAKES FIRST-TIME CUMMINS EXPANDS ITS MANUFACTURING INVESTMENT IN PARIS REGION OPERATIONS IN BRITTANY

Founded in 2011 in Brussels, Belgium, the Biotech Quality Indiana-based automotive parts supplier Cummins, Inc. Group (BQG) is a consulting firm focusing on improving designs, makes and distributes diesel and natural gas performance in the biopharmaceutical and medical device engines, as well as related products such as filters and industries. By anticipating specific issues arising from turbochargers. It has annual revenues coming to nearly changing regulations, the firm can provide permanent €20 billion and employs more than 50,000 people around solutions to quality and production compliance issues. BQG the world. is particularly renowned for its breakthrough methods, developed by its R&D center with the support of the In 2017, it moved a production line from Turkey to Brussels Institute for Research and Innovation (Innoviris). its Quimper site in Bretagne (Brittany) in a €7 million investment, creating a further 21 jobs. Considered a pioneer in its field, BQG develops innovative methods that harmonize performance and regulatory compliance, with the team supporting several companies throughout the entire life cycle of a particular drug or TAKEOVERS OF medical device. AILING SITES After reaching the final of the EY Promising Company of the Year 2016 in Belgium, the firm announced in 2017 that Takeovers of ailing sites by foreign investors enable it would be opening a subsidiary in France, consolidating economic activities under threat to be maintained. its position across French-speaking Europe. The Paris- These investments contribute to the regeneration of based French subsidiary, which currently has around struggling regions and to safeguarding jobs. In 2016, fifteen employees, has also been receiving support from they saved more than 6,800 jobs, or 20% of all jobs Business France. generated by foreign investment decisions in France.

- 46 - 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

They chose France

PERFUMES, COSMETICS AUTOMOTIVE INDUSTRY ECOWIPES ACQUIRES GRAND EST-BASED FLEX-N-GATE ANNOUNCES HYDRA COSMETICS TAKEOVER OF AUTOMOTIVE EXTERIORS EUROPE Polish toilet and home-care product manufacturer EcoWipes EWS acquired the Grand Est-based company In January 2017, American firm Flex-N-Gate, the 10th Hydra Cosmetics, resulting in 47 jobs being maintained. largest automotive parts supplier in the United States, It now plans to invest to upgrade the facility, with a view acquired Automotive Exteriors Europe (AEE), whose to increasing production capacity. 800 employees specialize in making bumpers, tailgates and front/rear vehicle components, especially for PSA Peugeot-Citroën.

The new management plans to diversify the business and its customer portfolio, despite having profited from the success of Peugeot’s 3008 SUV. CHEMICALS, PLASTICS INDORAMA VENTURES TO TRANSFORM In March 2017, AEE announced it was hiring 70 new personnel PRODUCTION FACILITY IN GRAND EST to meet its workload, with a further 120 new roles to be filled between July 2017 and June 2018 at its manufacturing sites In 2017, Indorama Ventures, the largest producer in the Grand Est region, Bourgogne-Franche-Comté, Ile de of petrochemicals in Thailand, acquired Durafiber France (Paris region) and Hauts de France. At the end of Technologies (Grand Est region), which specializes in 2017, AEE had more than 1,000 permanent and temporary durable technical textiles for industrial applications, tire employees, including 350 in R&D. reinforcement and specialty products. The acquisition of Durafiber Technologies will modernize the plant and underpin the group’s strategy to seek growth opportunities in high value-added products. All 224 jobs were maintained and an immediate €20 million investment to transform the plant to make it ‘Industry 4.0 ready’ was also announced. ELECTRICAL/ELECTRONIC/IT EQUIPMENT NIDEC CORPORATION ACQUIRES AND INVESTS IN LEROY-SOMER

Having acquired French company Leroy-Somer (Ile de France / Paris region) in 2016, the Japanese Nidec Corporation, MACHINERY AND MECHANICAL EQUIPMENT one of the world’s leading manufacturers of electric JOBS UNDER THREAT SAVED BY ATLAS motors, entered into a partnership in December 2017 with TAKEOVER IN HAUTS DE FRANCE Groupe PSA, forming a joint venture involving R&D and the production/marketing of electric vehicle motors. Based in Ganderkesee, in Germany’s Lower Saxony region, Atlas GmbH specializes in making construction The agreement covers an investment of €220 million split machinery. In 2017, the company decided to acquire TIM, equally between the two groups. The first step will be a manufacturer of cabins for heavy equipment (excavators, to develop these new components, while the new R&D trucks, forklifts, etc.) based in Quaëdypre (Hauts de France center will open in 2019 in the PSA Powertrain Center of region) threatened by insolvency proceedings. This decision Excellence in Carrières-sous-Poissy (also Paris region), led to 446 out of 480 jobs being maintained. employing 50 people.

- 47 - 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

BREAKDOWN OF INVESTMENT TYPE BY BUSINESS ACTIVITY (2017)

NUMBER SHARE

PROJECTS JOBS PROJECTS JOBS

CREATION 651 12,639 50% 38%

Decision-making centers 320 3,417 49% 27%

Logistics 30 2,164 5% 17%

Retail outlets 110 1,629 17% 13%

Production / Manufacturing 30 2,382 5% 19%

R&D, engineering, design 59 1,191 9% 9%

Business services 83 1,345 13% 11%

Consumer services 19 511 3% 4%

EXPANSION 551 12,855 42% 38%

Decision-making centers 17 276 3% 2%

Logistics 31 869 6% 7%

Retail outlets 16 210 3% 2%

Production / Manufacturing 246 6,440 45% 50%

R&D, engineering, design 64 1,061 12% 8%

Business services 165 3,495 30% 27%

Consumer services 12 504 2% 4%

EXPANSION FOLLOWING BUYOUT 33 844 3% 3%

Decision-making centers 15 145 45% 17%

Production / Manufacturing 14 649 42% 77%

R&D, engineering, design 2 30 6% 4%

Business services 2 20 6% 2%

TAKEOVER 56 6,846 4% 20%

Decision-making centers 5 203 9% 3%

Production / Manufacturing 50 6,610 89% 97%

Business services 1 33 2% 0%

EXPANSION FOLLOWING TAKEOVER 7 305 1% 1%

Decision-making centers 3 124 43% 41%

Logistics 1 49 14% 16%

Production / Manufacturing 3 132 43% 43%

Total 1,298 33,489 100% 100%

Source: Business France, Annual Report

- 48 - 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

FINANCIAL INVESTMENTS Facility upgrades and safeguarding investments, technology and commercial partnerships

Our data collection procedure identifies a variety of and German (19%) firms, while more than three- different ways in which foreign-owned subsidiaries quarters of these investments involved production/ establish themselves in France, reflecting the diverse manufacturing operations. international development strategies of multinational firms. The most common financial investments recorded in 2017 were mergers and acquisitions, facility upgrades and safeguarding investments, along with technology, commercial and industrial partnerships. They chose France

FACILITY UPGRADES AND SAFEGUARDING INVESTMENTS ENERGY, RECYCLING Facility upgrades and safeguarding investments involve FIBRE EXCELLENCE, THE FRENCH SUBSIDIARY replacing obsolete equipment with new production OF INDONESIAN SINAR MAS GROUP, CONFIRMS technology to increase output capacity or improve MAJOR SAFEGUARDING INVESTMENT the company’s productivity. These investments also preserve the business sites of foreign subsidiaries This subsidiary of a leading Indonesian conglomerate – and save jobs that might otherwise ultimately have and a major investor in France since it acquired two pulp been lost. In 2017, a total of 90 facility upgrades or mills along with an energy subsidiary and wood supplier safeguarding investments were recorded by Business in 2010 – confirmed substantial investment of €10-12 France and its regional partners. million in 2017 to build a 25MW biomass cogeneration unit along with a pilot biorefining facility at its Saint Facility upgrades or safeguarding investments recorded Gaudens site in the Occitanie region (south-western in France were mainly carried out by American (22%) France), safeguarding the futures of 300 employees.

- 49 - 1,400 Wider criteria 1,400 1,298 Wider criteria 1,298

1,200 1,200 1,117 1,117 1,014 1,000 1,014 962 1,000 962

800 800 Average number of projects (2007-2017): 729 Average number of projects (2007-2017): 729 600 600

400 400 624 641 639 782 698 693 685 740 734 814 968 200 624 641 639 782 698 693 685 740 734 814 968 200

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

35,000 33,682 Wider criteria 33,489 35,000 33,682 Wider criteria 33,489 30,108 30,000 Average number of jobs 30,108 (2007-2017): 30,092 30,000 Average number of jobs 26,535 (2007-2017): 30,092 26,535

25,000 25,000

20,000 20,000

15,000 15,000

10,000 10,000 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153

5,000 5,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Unknown Unknown

Large corporates Large corporates

SMEs SMEs

Mid-size companies Mid-size companies % 0 10 20 30 40 50 %60 0 10 20 30 40 50 60

% % 90 % %16 90 16 80 14 80 14 70 12 70 12 60 10 60 50 10 8 50 40 8 40 6 30 6 30 4 20 4 20 2 10 2 10 0 0 0 0

Construction, Machinery and Glass, ceramics, Pharmaceuticals Media, publishing Energy, recycling, Chemicals, plastics other concessions Transport, storage railway equipment Perfumes, cosmetics Automotive industry Aerospace, naval and building materials and biotechnologies Metals, metalworking Construction, Consumer electronics Electronic components Machinery and and business services Glass, minerals,ceramics, wood, paper mechanical equipment diagnostics and devices Pharmaceuticals Consulting, engineering Software and IT services clothing and accessories Media, publishing Energy, recycling, Chemicals, plastics other concessions Textiles, industrial textiles, Transport, storage railway equipment Medical/surgical equipment, Perfumes, cosmetics Automotive industry Aerospace, naval and building materials and biotechnologies Metals, metalworking Agri-food, agriculture, fishing Furnishings, household goods Consumer electronics Electronic components and business services minerals, wood, paper mechanical equipment diagnostics and devices Consulting, engineering Software and IT services clothing and accessories Electrical/electronic/IT equipment Textiles, industrial textiles, Medical/surgical equipment, Agri-food, agriculture, fishing Furnishings, household goods % Electrical/electronic/IT equipment % 60% % 25 60 25

50 25 %

50 15 25 % 20 % 15 40 20 % 15 % 40 15 % 10 % 30 10 10 % 30 10 5 % 5 % 20 0 % 20 5 0 %

10 5 10

0 0 0 0

Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics Consumer electronics Metals, metalworking Electronic components Education and training Software and IT services Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics Consumer electronics Metals, metalworking Electronic components Education and training Agri-food, agriculture, fishing Software and IT services Construction, building materials Electrical/electronic/IT equipment Telecoms, internet service providers Energy, recycling, other concessions Pharmaceuticals and biotechnologies Agri-food, agriculture, fishing Machinery and mechanical equipment Construction, building materials Glass, ceramics, minerals, wood, paper Aerospace, naval andElectrical/electronic/IT railway equipment equipment Financial services, banking and insurance Telecoms, internet service providers Energy, recycling, other concessions Pharmaceuticals and biotechnologies Machinery and mechanical equipment Consulting, engineering and business services Glass, ceramics, minerals, wood, paper Aerospace, naval and railway equipment Textiles, industrial textiles, clothingFinancial and accessoriesservices, banking and insurance Medical/surgical equipment, diagnostics and devices

Consulting, engineering and business services“Unattractive” sub-total % “Attractive” sub-total Textiles, industrial textiles, clothing and accessories Medical/surgical equipment, diagnostics and devices Proximity to markets“Unattractive” and sub-total % “Attractive” sub-total other company operations 14 1 12 50 37 86 Proximity to markets and Potentialother for researchcompany partnerships operations 14 1 12 50 37 86 with French academia 18 2 17 49 33 82 Potential for research partnerships 18 2 17 49 33 82 Qualitywith Frenchof R&D academi personnela 19 2 17 45 36 81 Quality of R&D personnel 19 2 17 45 36 81 Proximity to French innovation clusters 19 2 17 48 33 81 Proximity to French innovation clusters 19 2 17 48 33 81 Access to finance 20 2 18 50 29 80 Access to finance 20 2 18 50 29 80 Amount of state aid for R&D 22 3 20 47 31 78 Amount of state aid for R&D 22 3 20 47 31 78 Cost of R&D operations 25 3 22 48 28 75 Cost of R&D operations 25 3 22 48 28 75 Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms

High value-added industry High value-added industry

High value-added services High value-added services

Low value-added industry Low value-added industry

Low value-added services % Low value-added services 0 5 10 15 20 25 30 35 40 % 0 5 10 15 20 25 30 35 40

250 Growth in jobs (%) 250 Growth in jobs (%)

200 Machinery 200 Sectors experiencing job Machinery Sectorsand project experiencing growth job and project growth

150 150 Cosmetics/perfumes Cosmetics/perfumes Automotive Automotive Metals Chemicals/plastics 100 Metals Chemicals/plastics 100

50 Consulting Electrical/IT eqpt. 50 Software/IT services 2 . FOREIGN INVESTMENT INConsulting FRANCE Electrical/ITIN 2017 eqpt. Glass/ceramics Software/IT services Glass/ceramics Financial services Growth in projects (%) Agri-food Financial services 0 Growth in projects (%) -50 Agri-food 50 100 150 200 Pharmaceuticals Energy/recycling Furnishings Hospitality-50 0 50 100 150 200 Pharmaceuticals Construction Consumer Aerospace/naval/rail Transport/ Energy/recycling Furnishings Hospitality storage electronics Construction Consumer Telecoms/ISPsAerospace/naval/rail Transport/ storage electronics Telecoms/ISPs Wholesale/retail Medical eqpt. -50 Media/publishing Wholesale/retail Medical eqpt. Textiles Media/publishing -50 Textiles Other services Electronic components The total value of deals concluded rose 62%Other to services €154 Electronic components Sectors experiencing project growth billion, according to Bureau van Dijk’s Zephyr-100 database,1 Sectors experiencing project growth while global cross-border M&A activity-100 fell by around METALS, METALWORKING 23%. In all, there were approximately 2,800 domestic and foreign transactions recorded in 2017. ARCONIC UPGRADES FRENCH PRODUCTION FACILITIES -150 -150 This American company is investing €22 million over three years to upgrade two of its large production facilities Fig. 21 NUMBER AND VALUE OF M&A TRANSACTIONS in Dives sur Mer, Normandie (500 employees), and Saint IN FRANCE (2013-2017) Cosme en Vairais, Pays de la Loire (713 employees). Arconic was formerly known as Alcoa, and specializes in producing basic metals for the aerospace and automobile Number of M&A transactions industries, with major European and international clients including Airbus, Boeing, GE/Safran, Embraer, Dassault 3,500 3,500 and Airbus Helicopters. 3,000 3,000 2,500 63% 2,500 69% 2,000 63% 65% TECHNOLOGY 69% 2,000 65% PARTNERSHIPS 1,500 79% 1,500 79% 1,000 81% Technology or research partnerships offer another way 1,000 81% 37% 500 31% 35% for companies to expand their international reach. In 2017, 21% 37% 500 19% 31% 35% a dozen of these partnerships received support from 0 19%2013 21%2014 2015 2016 2017 Business France and its regional partners (economic 0 2013 2014 2015 2016 2017 development agencies) in France. Most technology Value of M&A transactions partnerships were in R&D and engineering activities. 180 180160

160140

COMMERCIAL 140120 55% PARTNERSHIPS 120100 53% 55% 10080 53% 50% 80 Ten commercial partnerships were recorded in the last 60 56% 50% 60 56% year, involving companies pooling their workforces, 40 66% 45% 47% 50% resources and partners to increase commercial activity. 4020 66% 45% 44% 47% These partnerships were in a variety of sectors and mainly 34% 50% 200 44% 34%2013 2014 2015 2016 2017 involved business services. 0 2013 2014 2015 2016 2017 1,200 Transactions with French Transactions with foreign 1,200 61 MERGERS investors investors 61 AND ACQUISITIONS Source: Bureau van Dijk, Zephyr database; Business France calculations 1,000 50 1,000 A positive economic outlook in Europe and relief at 78 50 the result of the French presidential election led foreign 78 companies to be increasingly active in the French 1 Data on cross-border M&A transactions in France extracted from 800 mergers and acquisitions (M&A) market in 2017. Bureau van Dijk’s Zephyr database on February 2, 2018. Data for 2017800 remain provisional and may be revised in the first half of 2018.

989

600 989

600 681 783 681 783 61 400 61 - 50 - 400 40 233 40 233 126 200 126 200 0 5 000

0 5 000 198 202 179 166 130 198 202 179 166 0 130 2013 2014 2015 2016 2017 0 2013 2014 2015 2016 2017

70 70

5 15.7 60 5 15.7 60 12.7

50 12.7 50 3.8 17.7 3.8 17.7 40 40 8 20.5 8 30 20.5 30 7.1 47.8 7.1 47.8 20 20 5 36.4 5 23.2 36.4 5.5 23 10 23.2 5.5 23 10 9.3 0 9.3 2013 2014 2015 2016 2017 0 2013 2014 2015 2016 2017

United States 392 United States 392 United Kingdom 342 United Kingdom 342 Germany 31 Germany 31 Netherlands 19 Netherlands 19 Luxembourg 19 Luxembourg 19 Canada 18 Canada 18 Belgium 15 Belgium 15 Italy 11 Italy 11 Spain 11 11 Spain 11 Switzerland 11 Switzerland Norway 8 Norway 8 Japan 7 Japan 7 Ireland 7 Ireland 7 Denmark 5 Denmark 5 40 Other

40 Other 0 50 100 150 200 250 300 350 400 450 0 50 100 150 200 250 300 350 400 450 United States 24,236 United States United Kingdom 16,640 24,236 United Kingdom 16,640 Germany 13,076 Germany 13,076 Netherlands 3,180 Netherlands 3,180 Belgium 2,845 Belgium 2,845 Canada 2,262 Canada 2,262 Spain 1,780 Spain 1,780 Italy 814 Italy 814 Indonesia 582 Indonesia 582 China 412 China 412 Switzerland 382 Switzerland 382 Luxembourg 367 Luxembourg 367 New Zealand 133 New Zealand 133 257 Other 257 Other 0 5,000 10,000 15,000 20,000 25,000 0 5,000 10,000 15,000 20,000 25,000 1,400 Wider criteria 1,298

1,200 1,117

1,014 1,000 962

800 Average number of projects (2007-2017): 729

600

400

624 641 639 782 698 693 685 740 734 814 968 200

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1,400 Wider criteria 1,298 35,000 33,682 Wider criteria 33,489

1,200 30,108 1,117 30,000 Average number of jobs (2007-2017): 30,092 26,535 1,014 1,000 962 25,000

800 Average number of projects 20,000 (2007-2017): 729

600 15,000

400 10,000 624 641 639 782 698 693 685 740 734 814 968 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153 200 5,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

35,000 33,682 Wider criteria 33,489

30,108 Unknown 30,000 Average number of jobs (2007-2017): 30,092 26,535

25,000 Large corporates

20,000

SMEs 15,000

10,000 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153 Mid-size companies

% 5,000 0 10 20 30 40 50 60

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

% % 90 16 Unknown

80 14

70 12

60 Large 10 corporates 50 8 40 6 30 SMEs 4 20

2 10

0 0 Mid-size companies

Electrical/electronic/IT equipment

% % 60 25

50 25 % % % 15 90 16 20 % 40 15 % 80 14

10 % 70 12 30 10

60 5 % 10 20 0 % 50 8 5 40 10 6 30 4 20 0 0

2 10

0 0 Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics Consumer electronics Metals, metalworking Electronic components Education and training Software and IT services

Agri-food, agriculture, fishing Construction, Machinery and Construction, building materials Glass, ceramics, Pharmaceuticals Electrical/electronic/IT equipment Media, publishing Energy, recycling, Chemicals, plastics other concessions Transport, storage railway equipment Telecoms, internet service providers Energy, recycling, other concessions Perfumes, cosmetics Automotive industry Aerospace, naval and building materials and biotechnologies Pharmaceuticals and biotechnologies Metals, metalworking Consumer electronics Machinery and mechanical equipment Electronic components and business services Glass, ceramics, minerals, wood, paper minerals, wood, paper mechanical equipment diagnostics and devices Consulting, engineering Software and IT services clothing and accessories Aerospace, naval and railway equipment Financial services, banking and insurance Textiles, industrial textiles, Medical/surgical equipment, Agri-food, agriculture, fishing Furnishings, household goods Consulting, engineering and business services Electrical/electronic/IT equipment Textiles, industrial textiles, clothing and accessories Medical/surgical equipment, diagnostics and devices “Unattractive” sub-total % “Attractive” sub-total % % Proximity to markets and 14 1 12 50 37 86 60 25 other company operations Potential for research partnerships with French academia 18 2 17 49 33 82

50 Quality of R&D personnel 19 2 17 45 36 8125 %

15 Proximity to French innovation clusters 19 2 17 48 33 81 20 % 40 Access to finance 20 2 18 50 29 80 15 % Amount of state aid for R&D 22 3 20 47 31 78 10 % 30 10 Cost of R&D operations 25 3 22 48 28 75 5 % Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms 20 0 % 5

High value-added industry 0 0

High value-added services

Proximity to French innovation clusters 19 2 17 48 33 81

Access to finance 20 2 18 50 29 80

Amount of state aid for R&D 22 3 20 47 31 78

Cost of R&D operations 25 3 22 48 28 75

Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms 250 Growth in jobs (%)

200 High value-added industry Machinery Sectors experiencing job and project growth High value-added services

Low value-added industry 150 Cosmetics/perfumes

Low value-added services % Automotive 0 5 10 15 20 25 30 35 40 Metals Chemicals/plastics 100

50 Consulting Electrical/IT eqpt. Software/IT services Glass/ceramics Financial services Growth in projects (%) Agri-food -50 0 50 100 150 200 Pharmaceuticals Energy/recycling Furnishings 250 Growth in jobs (%) Hospitality Construction Consumer Aerospace/naval/rail Transport/ storage electronics Telecoms/ISPs

Wholesale/retail Medical eqpt. Media/publishing -50 200 Textiles Machinery Sectors experiencing job and project growth Other services Electronic components Sectors experiencing project growth -100 150 Cosmetics/perfumes

Automotive -150 Metals Chemicals/plastics 100

50 Consulting Electrical/IT eqpt. Software/IT services Glass/ceramics Financial3,500 services Growth in projects (%) Agri-food 3,000 -50 0 50 100 150 200 Pharmaceuticals Energy/recycling 2,500Furnishings Hospitality Construction 63% Consumer Aerospace/naval/rail Transport/ 69% storage 2,000 65% electronics Telecoms/ISPs 1,500 79% Wholesale/retail Medical eqpt. -50 Media/publishing 1,000 81% Textiles 37% 500 31% 35% Other services 21% Electronic components 19% 0 2013 2014 Sectors2015 experiencing project2016 growth 2017 -100

180

160

140

-150 120 55% 100 53%

80 50% 60 56%

40 66% 45% 47% 50% 20 44% 34% 0 2013 2014 2015 2016 2017 3,500 1,200 3,000 61 2,500 63% 69% 2,000 65% 1,000 50

1,500 79% 78

2017 1,000RE PORT81% - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE 37% 800 500 31% 35% 19% 21% 0 2013 2014 2015 2016 2017 989 600

180 681 783 160 61 140 400 120 55% 233 100 53% 40

80 126 50% 200 60 56% Fig. 22 NUMBER AND VALUE OF FOREIGN INVESTOR0 TRANSACTIONS5 000 40 66% IN 45%FRANCE (2013-2017) 198 202 179 47% 166 50% 130 20 44% 34% 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Transactions € billion

1,200 70 61

5 15.7 60 1,000 50

78 12.7 50 800 3.8 17.7

40 989

600 8 20.5 681 783 30 61 7.1 47.8 400 20 40 233 5 36.4

126 23.2 200 5.5 23 10 0 5 000 198 202 179 166 130 9.3 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Acquisitions Minority interest Other transactions 70

Source: Bureau van Dijk, Zephyr database; Business France calculations 5 15.7 60

Foreign investors strike more12.7 than one-third The cumulative value of these deals increased sharply, up 47% on 2016. The estimated total for 2017 was of French50 M&A deals in 2017 €70 billion, compared with €47.4 billion in 2016. The percentage of foreign M&A deals has increased 3.8 17.7 steadily since 2013, which seems to confirm positive Brisk growth in M&A transactions foreign40 investor sentiment towards the French economy. According to data from the Zephyr database, mergers The number and value of acquisitions concluded by 8 foreign investors rose quickly in 2017. Although minority and acquisitions completed by foreign investors20.5 accounted30 for 17% of all deals in France in 2013, but more stakes continued to make up the bulk of transactions, the proportion of acquisitions increased from 11% of all than one-third of transactions7.1 (35%)47.8 and nearly half of all M&A value in 2017. cross-border transactions carried out in 2016 to 18% in 2017. Of the 1,012 foreign M&A deals listed in 2017, 20 179 were acquisitions, worth an estimated €36 billion. After rising 23%5 to 1,180 in 2016, the number of foreign36.4 investor deals in France23.2 declined 14% in 2017 to 1,012. 5.5 23 10

9.3 0 2013 2014 2015 2016 2017

- 51 -

United States 392

United Kingdom 342

Germany 31

Netherlands 19

Luxembourg 19

Canada 18

Belgium 15

Italy 11

Spain 11

11 Switzerland

Norway 8

Japan 7

Ireland 7

Denmark 5

40 Other 0 50 100 150 200 250 300 350 400 450

United States 392 United States 24,236 United Kingdom 342 United Kingdom 16,640 Germany 31 Germany 13,076 Netherlands 19 Netherlands 3,180 Luxembourg 19

Belgium 2,845 Canada 18

2,262 Belgium 15 Canada

Italy 11 Spain 1,780

Spain 11 Italy 814

11 Switzerland Indonesia 582

Norway 8 China 412

Japan 7 Switzerland 382

Ireland 7 Luxembourg 367 Denmark 5 133 New Zealand 40 Other 257 0 50 100 150 200 250 300 350 400 450 Other 0 5,000 10,000 15,000 20,000 25,000 United States 24,236

United Kingdom 16,640

Germany 13,076

Netherlands 3,180

Belgium 2,845

Canada 2,262

Spain 1,780

Italy 814

Indonesia 582

China 412

Switzerland 382

Luxembourg 367

New Zealand 133

257 Other

0 5,000 10,000 15,000 20,000 25,000 1,400 Wider criteria 1,298

1,200 1,117

1,014 1,000 962

800 Average number of projects (2007-2017): 729

600

400

624 641 639 782 698 693 685 740 734 814 968 200

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

35,000 1,400 33,682 Wider criteria Wider criteria 33,489 1,298 30,108 Average number of jobs 1,200 30,000 (2007-2017): 30,092 1,117 26,535

1,014 1,000 962 25,000

800 20,000 Average number of projects (2007-2017): 729

600 15,000

400 10,000 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153

624 641 639 782 698 693 685 740 734 814 968 200 5,000

0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

35,000 33,682 Wider criteria 33,489 Unknown 30,108 30,000 Average number of jobs (2007-2017): 30,092 26,535

Large 25,000 corporates

20,000 SMEs

15,000

Mid-size 10,000 companies 34,517 31,932 29,889 31,815 27,958 25,908 29,631 25,478 32,770 28,965 32,153 % 0 10 20 30 40 50 60 5,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

% % 90 16

Unknown 80 14

70 12

60 10 Large 50 corporates 8 40 6 30 4 SMEs 20

2 10

0 0

Mid-size Construction, Machinery and Glass, ceramics, Pharmaceuticals Media, publishing Energy, recycling, companies Chemicals, plastics other concessions Transport, storage railway equipment Perfumes, cosmetics Automotive industry Aerospace, naval and building materials and biotechnologies Metals, metalworking Consumer electronics Electronic components and business services minerals, wood, paper mechanical equipment diagnostics and devices Consulting, engineering Software and IT services clothing and accessories Textiles, industrial textiles, Medical/surgical equipment, % Agri-food, agriculture, fishing Furnishings, household goods 0 10 20 30 40 50 60 Electrical/electronic/IT equipment % % 60 25

50 25 %

15 % % 20 % 16 40 90 15 %

80 14 10 % 30 10

70 12 5 %

60 20 0 % 10 5 50 8 10 40 6 30 0 0 4 20

2 10 Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics Consumer electronics Metals, metalworking Electronic components Education and training Software and IT services 0 0

Agri-food, agriculture, fishing Construction, building materials Electrical/electronic/IT equipment Telecoms, internet service providers Energy, recycling, other concessions Pharmaceuticals and biotechnologies Machinery and mechanical equipment Glass, ceramics, minerals, wood, paper Construction, Machinery and Glass, ceramics, Aerospace, naval and railway equipment Pharmaceuticals Financial services, banking and insurance Media, publishing Energy, recycling, Chemicals, plastics other concessions Transport, storage railway equipment Perfumes, cosmetics Automotive industry Aerospace, naval and building materials and biotechnologies Metals, metalworking Consumer electronics Electronic components and business services Consulting, engineering and business services minerals, wood, paper mechanical equipment diagnostics and devices Consulting, engineering Software and IT services clothing and accessories Textiles, industrial textiles, clothing and accessories Textiles, industrial textiles, Medical/surgical equipment, diagnostics and devices Medical/surgical equipment, Agri-food, agriculture, fishing Furnishings, household goods “Unattractive” sub-total % “Attractive” sub-total Electrical/electronic/IT equipment Proximity to markets and other company operations 14 1 12 50 37 86 % % Potential for research partnerships 60 25 with French academia 18 2 17 49 33 82 Quality of R&D personnel 19 2 17 45 36 81

50 Proximity to French innovation clusters 19 2 17 48 33 25 % 81 15 Access to finance 20 2 18 50 29 20 % 80

40 Amount of state aid for R&D 22 78 3 20 47 31 15 % Cost of R&D operations 25 3 22 48 28 75 10 % 30 10 Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms 5 %

20 0 % 5

10 High value-added industry

0 0 High value-added services

Low value-added industry Chemicals, plastics Transport, storage Automotive industry Perfumes, cosmetics Consumer electronics Metals, metalworking Electronic components Education and training Software and IT services

Agri-food, agriculture, fishing Construction, building materials Low value-added services Electrical/electronic/IT equipment Telecoms, internet service providers Energy, recycling, other concessions Pharmaceuticals and biotechnologies % Machinery and mechanical equipment Glass, ceramics, minerals, wood, paper Aerospace, naval and railway equipment Financial services, banking and insurance 0 5 10 15 20 25 30 35 40

Proximity to French innovation clusters 19 2 17 48 33 81

Access to finance 20 2 18 50 29 80

Amount of state aid for R&D 22 3 20 47 31 78

Cost of R&D operations 25 3 22 48 28 75 250 Growth in jobs (%) Investment opportunities 25 3 22 44 32 75 through acquisitions of French firms

200 Machinery Sectors experiencing job High value-added industry and project growth

High value-added services 150

Low value-added industry Cosmetics/perfumes

Automotive Low value-added services % Metals Chemicals/plastics 0 5 10 15 20 25 30 35 40 100

50 Consulting Electrical/IT eqpt. Software/IT services Glass/ceramics Financial services Growth in projects (%) Agri-food -50 0 50 100 150 200 Pharmaceuticals Energy/recycling Furnishings Hospitality Construction Consumer Growth in jobs (%) Aerospace/naval/rail Transport/ 250 storage electronics Telecoms/ISPs

Wholesale/retail Medical eqpt. Media/publishing -50 Textiles 200 Machinery Other services Electronic components Sectors experiencing job and project growth Sectors experiencing project growth -100

150 Cosmetics/perfumes

Automotive -150

Metals Chemicals/plastics 100

50 Consulting Electrical/IT eqpt. Software/IT services 3,500 Glass/ceramics Financial services3,000 Growth in projects (%) Agri-food 2,500 -50 0 50 100 63% 150 200 Pharmaceuticals Energy/recycling Furnishings 69% Hospitality Construction 2,000 65% Transport/ Consumer Aerospace/naval/rail electronics storage 79% Telecoms/ISPs 1,500

Wholesale/retail Medical eqpt. 1,000 81% -50 Media/publishing 37% Textiles 500 31% 35% 19% 21% 0 Other services 2013 2014 2015 2016 2017 Electronic components Sectors experiencing project growth -100 180

160

140

120 55% -150 100 53%

80 50% 60 56%

40 66% 45% 47% 50% 20 44% 34% 0 2013 2014 2015 2016 2017

3,500 1,200 61 3,000

2,500 63% 1,000 69% 50 2,000 65% 78 1,500 79%

1,000 81% 800 37% 500 31% 35% 19% 21% 989 0 2013 2014 2015 2016 2017 600

681 783 180 61 160 400 140 40 233 120 55%

100 53% 126 200 80 50% 0 5 000 60 56% 198 202 179 166 130 40 66% 45% 47% 50% 0 20 44% 2013 2014 2015 2016 2017 34% 0 2013 2014 2015 2016 2017 70 1,200 61 5 15.7 60

1,000 50 12.7

78 50

3.8 17.7 800 40

989 8 20.5 600 30 681 783 7.1 47.8 61 400 20 5 36.4 40 233 23.2 5.5 23 126 10 200

0 5 000 9.3 198 202 179 166 130 0 2013 2014 2015 2016 2017 0 2013 2014 2015 2016 2017

5 15.7 60

12.7

3.8 17.7

8 20.5 30 7.1 47.8

20 5 36.4 23.2 5.5 23 10

9.3 0 2013 2014 2015 2016 2017

United States 392

United Kingdom 342

Germany 31

Netherlands 19

Luxembourg 19

18 Canada 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

Belgium 15

Italy 11

Spain 11

11 Switzerland

Norway 8

Japan 7

Ireland 7

Denmark 5 NUMBER AND VALUE OF M&A TRANSACTIONS IN FRANCE Fig. 23 BY SOURCE COUNTRY (2016-17) 40 Other 0 50 100 150 200 250 300 350 400 450 Transactions € billion

392 United States United States 24,236 16,640 United Kingdom 342 United Kingdom

13,076 Germany 31 Germany

Netherlands 19 Netherlands 3,180

19 Luxembourg Belgium 2,845

18 Canada Canada 2,262

Belgium 15 Spain 1,780

Italy 11 Italy 814 Spain 11 Indonesia 582 11 Switzerland China 412 Norway 8 Switzerland 382 Japan 7 Luxembourg 367 Ireland 7

New Zealand 133 Denmark 5 257 40 Other Other 0 50 100 150 200 250 300 350 400 450 0 5,000 10,000 15,000 20,000 25,000

United States 2017 2016 24,236 Source: Bureau van Dijk, Zephyr database; Business France calculations United Kingdom 16,640

Germany 13,076 million users worldwide, most of them teenagers. This Three-quartersNetherlands 3,180 of M&A deals in France struck by US and UK firms acquisition is ranked among the 10 highest sums paid 2,845 for a French startup, along with SeLoger.com, Kelkoo, In 2017,Belgium the Americans and the British were by far the Neolane, Meetic and Dailymotion. Zenly will continue largestCanada investors2,262 in French companies, accounting for 78% of foreign M&A deals and 61% of the associated to be run independently, and will keep on all of its team, who are mostly based in France. value.Spain Their behavior1,780 was in line with the trend: fewer transactions but sharply rising values (up 70% for the 814 UnitedItaly States and up 150% for the United Kingdom.) Analysis of deal sources by value reveals the volatile nature of M&A data, which depend heavily on a few Indonesia 582 One example of an American-led merger-acquisition in major transactions. Germany, which accounted for 2017 Chinawas412 Snapchat’s US$300 million purchase of fast- only 3% of M&A deals, closed this year’s biggest deal growing French startup Zenly, which launched a real- with German group Boehringer Ingelheim’s €11.4 billion timeSwitzerland location-sharing382 app in 2016, with more than four purchase of Merial, Sanofi’s animal health business.

Luxembourg 367

New Zealand 133

257 Other

0 5,000 10,000 15,000 20,000 25,000 - 52 - 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

Already a global leader in the pet, hog and horse million investment plan has got underway in the Lyon segments of the industry, the new entity is also suburb of Saint-Priest, while the new headquarters for performing well in the poultry and cattle segments, and Boehringer Ingelheim’s animal health business in France has now set its sights on becoming the world’s number were officially opened last October in the Lyon-Gerland one in the animal health market. Biodistrict.

After hiring 125 people to provide support services, The transactions involved a variety of industries, from Boehringer Ingelheim now has 1,750 employees at the services to manufacturing. In manufacturing, the Lyon-Portes-des-Alpes, Lentilly, Gerland and Saint- machinery/equipment, metals, chemicals and transport Vulbas sites, making the Lyon area (Auvergne-Rhône- industries were the main targets for foreign investment. Alpes region) its main hub in France. A major €70

Fig. 24 BREAKDOWN OF M&A TRANSACTIONS IN FRANCE BY SECTOR (2017)

1 % 2 %

Primary industries 3 % 4 % Agri-food 2 % Hospitality, restaurants 6 % Telecoms 34 % Transport Publishing 6 % Chemicals, plastics Other Retail

Metals 9 % Machinery, equipment, furnishings Other services

9 %

16 % 11 %

Source: Bureau van Dijk, Zephyr database; Business France calculations

- 53 - 2 . FOREIGN INVESTMENT IN FRANCE IN 2017

THE FRENCH MERGERS AND ACQUISITIONS MARKET

The French M&A market encompasses various However, changes in the total value of M&A categories of financial transactions in which all transactions should be treated with caution for or part of the equity of a company domiciled in two reasons: firstly, the lack of available data for France is transferred to another company, be it a significant proportion of the transactions recorded French or foreign. Companies frequently grow in France (27% in 2017, 20% in 2016), and secondly, inorganically like this in an effort to maximize foreign exchange effects, including the depreciation their capacity to take advantage of market upturns. of the euro against a number of foreign currencies.

METHODOLOGY

MERGERS AND ACQUISITIONS

Bureau van Dijk’s Zephyr database tracks M&A deals but also equity acquisitions by minority shareholders who throughout the world. Updated daily, it contains information simply wish to invest in a company, without acquiring a on different types of transactions, including acquisitions, controlling interest. Thus, the purchase of a two percent equity initial public offerings (IPOs), partial interest acquisitions and stake in a company by an investor who already holds a 49% venture capital investments. stake in the same company will be counted as an acquisition. On the other hand, the purchase of a two percent equity stake The Zephyr team is based in the United Kingdom and by an investor who previously held a 10% stake will be counted Singapore and works in 30 languages from a variety of as a minority interest acquisition. sources, including press articles, company press releases, IPO announcements and websites. The shareholder structures The methodology used to establish the statistics on cross- and financial profiles of the deal parties (sellers, targets and border mergers and acquisitions differs from that used by buyers) are an integral part of Zephyr and are taken largely central banks to assess the amount of foreign investment from the Orbis database. in a country. By convention, foreign direct investment (FDI) is considered to occur when a company holds at least 10% of A distinction should be made between minority interest and the equity or voting rights of a firm based in another country. full acquisitions: The statistics on mergers and acquisitions Unlike FDI figures, cross-border M&A statistics usually include encompass not only acquisitions – which entail a transfer all acquisitions of equity in a company by a non-resident control of the targeted company, with the investor holding company, with no minimum stake threshold. over 50% of the equity in that company after the transaction –

- 54 - 3 Investment attractiveness of France’s regions in 2017

56 REGIONAL ANALYSIS 66 THE CONTRIBUTION OF FOREIGN SUBSIDIARIES TO FRANCE’S REGIONAL ECONOMIES 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

REGIONAL ANALYSIS Foreign investments made throughout France’s regions

The diversity of France’s regions, coupled with Ile de France (Paris region), Auvergne-Rhône-Alpes, their high-quality infrastructure and workforces, Occitanie, and Provence-Alpes-Côte-d’Azur also stood are powerful drivers of their attractiveness to out for receiving 28%, 19%, 12%, and 10%, respectively, investors. The investment decisions confirmed in 2017 of all R&D projects nationwide. generated employment in practically every one. Investments in production sites rose sharply in Auvergne- At the same time, the geographical breakdown of Rhône-Alpes (+27%), Bourgogne-Franche-Comté (+40%), projects reflects the attractions of major cities and Grand Est (+38%) and Occitanie (+38%), while there were the fact that the presence of foreign companies two new particularly job-rich manufacturing facilities in frequently draws new foreign investment to the same Normandie. Moreover, investments in R&D operations were area. Amid the competition in Europe to attract foreign particularly buoyant in Auvergne-Rhône-Alpes (+100%), investment, the thriving economies of France’s regions Bourgogne-Franche-Comté (+33%), Bretagne/Brittany and cities are often a decisive factor. (+25%) and Hauts de France (+50%).

By project numbers, Ile de France (Paris region), Auvergne-Rhône-Alpes, Occitanie and Grand Est REGIONAL BREAKDOWN OF JOBS together attracted more than half of all investment decisions. The leading regions by jobs created or CREATED OR MAINTAINED maintained were Ile de France (Paris region) (23% PER 1,000 EMPLOYED (2017) of all jobs nationwide), Hauts de France (15%), RATIO PER Auvergne-Rhône-Alpes (13%), Occitanie (10%) REGION 1,000 JOBS and Grand Est (also 10%). Auvergne-Rhône-Alpes 1.3 Bourgogne-Franche-Comté 1.3 To gauge the extent to which foreign subsidiaries have contributed to jobs and economic activity in France’s Bretagne (Brittany) 0.6 regions, the number of jobs created from new foreign Centre-Val de Loire 0.6 investments can be measured as a proportion of those Grand Est 1.6 in paid employment. According to this indicator, the Hauts-de-France 2.3 Hauts de France, Normandie, Grand Est, Pays de la Loire, Auvergne-Rhône-Alpes, Occitanie and Bourgogne- Île-de-France (Paris region) 1.2 Franche-Comté regions all exceeded the national Normandie 1.7 average in 2017 of 1.2 jobs created by foreign companies Nouvelle-Aquitaine 0.7 per 1,000 people employed. Occitanie 1.5

The breakdown of projects by business activity and region Pays de la Loire 1.0 highlights that Auvergne-Rhône-Alpes, Grand Est, Hauts Provence-Alpes-Côte d’Azur 0.7 de France and Occitanie were attractive destinations Overseas territories 0.3 for production/manufacturing operations in 2017, while Mainland France 1.2 45% of all jobs generated by foreign investment in logistics activities were in Ile de France (Paris region). Source: Business France calculations

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Fig. 25 REGIONAL BREAKDOWN OF JOBS CREATED OR MAINTAINED (2017)

Number of jobs created or maintained by region

7,000-7,700

3,700-4,600

1,300-2,600

Less than 1,000

Jobs per 1,000 employed

0<0.3

0.6<1

1.3<1.7

Source: Business France, Annual Report

REGIONAL BREAKDOWN OF PROJECTS

AND JOBS BY BUSINESS ACTIVITY (2017)

LOGISTICS PRODUCTION / MANUFACTURING R&D, ENGINEERING

REGION PROJECTS JOBS PROJECTS JOBS PROJECTS JOBS

Auvergne-Rhône-Alpes 8% 7% 12% 12% 19% 16% Bourgogne-Franche-Comté 6% 4% 10% 7% 3% 2% Bretagne (Brittany) 2% 0,3% 3% 3% 4% 7% Centre-Val de Loire 5% 3% 3% 2% 4% 2% Grand Est 11% 17% 17% 13% 3% 2% Hauts-de-France 6% 6% 13% 20% 5% 12% Île-de-France (Paris region) 21% 45% 5% 8% 28% 20% Normandie 3% 0,4% 3% 10% 1% 0.1% Nouvelle-Aquitaine 5% 1% 8% 5% 6% 3% Occitanie 15% 9% 17% 13% 12% 13% Pays de la Loire 5% 4% 6% 6% 5% 4% Provence-Alpes-Côte d’Azur 13% 4% 2% 2% 10% 19% Overseas territories - - 0.3% 0.2% - - Total 100% 100% 100% 100% 100% 100%

Source: Business France, Annual Report

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Fig. 26 REGIONAL BUSINESS ACTIVITY ATTRACTIVENESS INDEX (2017)

R&D, engineering

Retail outlets

Production / Manufacturing

Business services

Logistics

Decision-making centers

Key: The map indicates the business activities for which each region of France enjoys high investment attractiveness (highest relative index score). Source: Business France

The regional business activity attractiveness index takes (24%); and in pharmaceuticals and biotechnologies into account the different sizes of France’s regions and of Ile de France (Paris region) (37%), Grand Est (15%) highlights the investment attractiveness of the Auvergne- and Auvergne-Rhône-Alpes (19%). Rhône-Alpes, Bretagne (Brittany), Provence-Alpes-Côte d’Azur and Centre-Val de Loire regions for research and development activities; the Bourgogne-Franche- Comté, Bretagne (Brittany), Grand Est, Hauts de France, Occitanie and Pays de la Loire regions for production/ METHODOLOGY manufacturing operations; and Ile de France (Paris region) for decision-making centers and retail outlets. REGIONAL BUSINESS ACTIVITY ATTRACTIVENESS INDEX The breakdown of projects by technology rich industrial sector highlights the investment attractiveness in the This index identifies the business activities for which chemicals sector of Auvergne-Rhône-Alpes (attracting each of France’s regions enjoy high investment 16% of all projects in this sector in France), Ile de attractiveness, enabling us to determine whether a France (Paris region) (13%) and Occitanie (13%); in the region has a higher index score for a specific business automotive industry of Grand Est (22%), Auvergne- activity. The index is calculated by weighing the share Rhône-Alpes (18%) and Ile de France (Paris region) of a business activity in a single region against the (17%); in software and IT services sector of Ile de share of the same business activity in all projects France (Paris region) (attracting nearly two-thirds of all nationwide. projects in this sector in France); in aerospace/railway equipment of Occitanie (38%) and Pays de la Loire

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REGIONAL BREAKDOWN OF PROJECTS IN SELECTED HIGH VALUE-ADDED INDUSTRIAL SECTORS (2017)

Electrical/ Medical/ Machinery and Pharmaceuticals Chemicals, Automotive Software and Aerospace REGION electronic surgical mechanical and plastics industry IT services equipment equipment equipment equipment biotechnologies

Auvergne-Rhône-Alpes 16% 18% 9% 6% 12% 18% 6% 19%

Bourgogne-Franche-Comté 11% 10% 5% 6% - 7% 3% -

Bretagne (Brittany) 2% 3% 4% 9% 2% 1% - -

Centre-Val de Loire 4% 1% - 9% - 3% - 7%

Grand Est 11% 22% 14% 3% 2% 23% - 15%

Hauts-de-France 9% 10% 4% 6% 4% 8% - 4%

Île-de-France (Paris region) 13% 17% 39% 28% 63% 6% 12% 37%

Normandie 2% 3% 2% - 1% 5% - -

Nouvelle-Aquitaine 7% 3% - 6% 4% 10% 15% 4%

Occitanie 13% 10% 9% 19% 6% 7% 38% 7%

Pays de la Loire 9% 3% 4% - 1% 10% 24% -

Provence-Alpes-Côte d’Azur 4% 1% 11% 6% 5% 1% 3% 7%

100% 100% 100% 100% 100% 100% 100% 100%

Source: Business France, Annual Report

REGIONAL BREAKDOWN OF JOBS IN SELECTED HIGH VALUE-ADDED INDUSTRIAL SECTORS (2017)

Auvergne-Rhône-Alpes 10% 25% 14% 17% 15% 13% 8% 22%

Bourgogne-Franche-Comté 5% 6% 8% 1% - 2% 1% -

Bretagne (Brittany) 1% 1% 2% 9% 2% - - -

Centre-Val de Loire 6% 1% - 6% - 2% - 1%

Grand Est 24% 17% 14% - 1% 8% - 21%

Hauts-de-France 8% 21% 2% 10% 10% 26% - 6%

Île-de-France (Paris region) 19% 6% 45% 29% 49% 1% 4% 19%

Normandie 1% 4% 1% - 1% 37% - -

Nouvelle-Aquitaine 6% 1% - 8% 6% 5% 11% 3%

Occitanie 7% 15% 3% 8% 6% 2% 40% 3%

Pays de la Loire 9% 2% 3% - 2% 4% 24% -

Provence-Alpes-Côte d’Azur 5% 1% 7% 13% 9% - 1% 26%

100% 100% 100% 100% 100% 100% 100% 100%

Source: Business France, Annual Report

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SPOTLIGHT REGIONAL SUCCESS STORIES

AEF: A modest firm from Moselle ideal location for the new operation. The area had changed serving the world’s luxury car market rapidly since the closure of its mine, and its new industrial park was not too far away from the parent company in Hailing from the Moselle area of the Grand Est region, Stuttgart. Ateliers d’Emboutissage de Faulquemont (AEF) is a “There were 15 employees initially, and the site made parts subsidiary of the Allgaier Group, a family company founded for a braking system that was assembled in the Paris region,” in 1906 in a small cutting and punching-tool workshop near recalls Jean-Luc Schneider, Managing Director since 2008. the German city of Stuttgart. Faulquemont is the group’s sole French production facility and boasts renowned expertise: “Our core businesses are Today, Allgaier is an internationally renowned group punching and assembly in all their forms. We also carry operating across the globe in two separate sectors. Its out electrophoretic painting, a chemical process that automotive division develops and manufactures punching gives parts an extremely smooth surface finish,” explains tools, punched parts and complex systems such as fuel Mr. Schneider. tanks, while its process technology division offers a full range of washing, drying, cooling, sieving and sorting The firm caters primarily for the automotive industry, systems. making brake parts, as well as structural, gearbox and sunroof components, along with brake disc guards. It By acquiring and setting up various subsidiaries, the firm also supplies parts for some of BMW’s electric vehicles. has succeeded in establishing a strong presence in the “We work with all the major German car makers,” says world’s leading industrialized nations. Every day, some Mr. Schneider, citing Volkswagen, Audi, BMW, Daimler and 1,700 employees put all their knowledge and experience Porsche. “99.8% of our output is exported. We are currently into meeting their customers’ requirements. seeking to generate business with French brands,” he adds.

A new name after 40 years in Moselle AEF has now been renamed Allgaier France, adopting its German parent company’s identity, and recently signed a seven-year, €100 million deal with Daimler to supply 99.8% structural parts for vehicle shells. of our output is The site currently employs around 200 people, including a few temporary workers. But Mr. Schneider firmly intends exported. We are to increase the firm’s workforce as its sales grow: “Over the next two years, our turnover is set to rise from €29 million currently seeking to €34 million, €39 million and eventually €43 million,” he to generate business says with cautious optimism. Moreover, Allgaier France invests around €2 million in its production facilities each with French brands year. Innovation for long-term success The company has resolved to keep investing over the An automotive base in Faulquemont coming years, especially in areas that will significantly In 1977, the company’s owner, Professor Dieter Hundt, boost innovation capacity, with clear aims to ensure that decided to move some of its production to France to production at Faulquemont remains at the forefront of improve order fulfilment for its main customer, which was technology. based in Paris at the time. Faulquemont appeared to be an

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Allgaier France consequently acquired robotic units recently to make structural parts and battery brackets as part of a brand-new project. More projects are now With this state-of- underway, including initiatives focusing on energy efficiency, the industry of the future and production area the-art facility, optimization. A small workshop extension is also in the pipeline. we can speed up product development and enhance the site’s Hill-Rom’s world-class facility in Brittany The Hill-Rom Group specializes in medical equipment and overall operating technology, with a presence in Bretagne (Brittany) since system. 1991, when it acquired the Pluvigner site, which used to make medical beds and hospital furniture. Over the years, the plant has diversified into manufacturing therapeutic surfaces and distributing surgical consumables. French innovation center spearheading Growth through “Wellbeing and Performance” international development In 2013, the plant ran into serious difficulties due to a The site’s transformation was supported by significant loss of competitiveness and performance, causing it to investments, including €2 million in 2017. On top of new reassess its business structure and take a different path. machines that will increase production line automation, This transformation process, backed by every employee, including a painting robot and two laser cutters for metal was centered on a shared objective: customer satisfaction. bars, the test laboratory has seen its capacity double, It also became a human journey, revolving around one while a prototyping laboratory, created as part of a new key question: how can the production facility improve its innovation center, was inaugurated in mid-2017 by Loïg performance without negatively impacting the welfare Chesnais-Girard, President of the Regional Council. Around of employees? The question led to the creation of the forty employees develop and test new products in the unit, “Wellbeing and Performance” approach, which now an important endeavor given that tomorrow’s beds will defines the site. feature more and more technology, such as integrated First of all, Hill-Rom took on the issue of safety, resulting patient weighing systems, vital-sign management, and in zero accidents being recorded in 2017. It then moved treatment optimization. on to quality, automatically improving productivity and According to Marc Capdeville, Executive Director of the maintaining a continuous cycle of improvement. New Pluvigner site, this innovation center is a crucial part of processes have reduced stock and saved space, enabling the business: “With this state-of-the-art facility, we can new tasks to be performed that were previously carried speed up product development and enhance the site’s out abroad. overall operating system. The innovation center will In addition to production, staff at Pluvigner manage primarily serve Pluvigner, while also supporting sites in logistics, sales, purchasing, samples, spare parts, R&D other parts of the world.” According to Loïg Chesnais- and financial transactions. Consequently, half of the Girard, it comes as recognition for his region’s “innovation tasks performed at the site support the Hill-Rom Group’s capacity and investment attractiveness. It is also the result business worldwide, the aim being to make Pluvigner a of collaboration between the company and the local global center of operational excellence. authorities.”

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We intend to grow In just four years, Pluvigner has gone from being a struggling site to leading operational excellence on further in 2018, behalf of a multinational. At the end of January 2018, this with a view to impressive turnaround was acknowledged by the Medef employers’ federation, the French Quality Association providing customer (AFQP) and the French government’s Business Directorate (DGE), which awarded the Hill-Rom site in Pluvigner the training support nationwide Operational Excellence prize for 2018 in the mid-size company category. and conducting R&D projects

Bertrandt gets closer to its customers in Toulouse The company’s main customers include European car Bertrandt is the world’s second largest automotive manufacturers and equipment suppliers, as well as major engineering company, offering development solutions players in the aerospace and rail sectors. for the automotive and aerospace industries. Based in The Toulouse site’s workforce has doubled each year since Germany, and headquartered in Ehningen, near Stuttgart, 2014, and now employs 85 people, including engineers, it boasts a presence in Europe, China and the United States, technicians and administrative personnel. The site is its 53 sites employing 13,000 people and generating sales aiming to expand in every segment of the mobility market of €990 million in 2016. The firm’s main French entity is and values its proximity to its clients, which include located in Vélizy-Villacoublay (Paris region). Continental, NXP, Hella, Siemens and Airbus, as well as their subcontractors. Since 2014, the Toulouse site, in south-west France, has grown around its engine and testing operations, electronics “Our aim is to offer our clients quality and technical and support services focused on quality, production and sophistication. We already have two premises in Toulouse project management, with a workforce that has continued and intend to grow further in 2018, with a view to providing to double every year. customer training support and conducting R&D projects,” says the site manager. End-to-end support and development Bertrandt is also a member of the Automotech cluster set up As an engineering partner to the ‘mobility industries’, the by the regional economic development agency. According group’s various business lines are driven by the desire to the firm, Automotech has enabled the emergence of a to develop the best possible solution for every client. Its network within the region and the collective development services cover each stage of the manufacturing process of Toulouse’s automotive sector. It has also fostered and every project phase: design, research, development, a number of fruitful partnerships. Bertrandt recently mock-ups, tool building and vehicle construction, as well exhibited its products and services at the Toulouse motor as production planning, launch and follow-up. show, and in March 2018 the Toulouse-based entity will In addition, the various development stages are validated also be attending the myjob@futurauto fair showcasing with simulations, prototyping and testing. Specific expertise, the automotive industry in the Occitanie region. and in-depth project and process management experience make Bertrandt a valuable partner when it comes to effectively managing the development process from start to finish.

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Poly-Imprim’ goes upmarket in Nouvelle Aquitaine

Poly-Imprim’ is a firm that specializes in printing adhesive bottle labels. Based in the town of Touvérac, in the Nouvelle Aquitaine region, the firm was taken over by Italian group Eurostampa in 2015. Since then, Poly-Imprim’ has seen its sales grow and its workforce almost double in size to around forty people in 2017. The expansion planned to install new production facilities will increase the plant’s surface area from 1,500 to 2,700 sq. m. in 2018. The investments made at the Touvérac site will come to a This is a superb total of €5 million (€2 million has already been invested opportunity to position and €3 million has been set aside for 2017-2020), enabling Poly-Imprim’ to continue to grow and generate revenues the company in a of €7 million in 2018, when around fifty people will be employed at the site. The Nouvelle Aquitaine Regional rapidly growing market, Council has assisted the company with its investments by with a strong emphasis providing various subsidies. Eurostampa operates in the particularly niche market on technology. of making labels for high-end glass bottles (cognac, champagne and wine) and has five production sites around the world, employing 650 people and generating €140 in annual sales. The Italian group was keen to invest in France to be closer to potential customers, eventually choosing logistics solutions to optimize in-company transport using the Nouvelle Aquitaine-based company for the quality of Automated Guided Vehicles (AGVs). Its European base its products. in Mulhouse, in the heart of an innovative industry 4.0 ecosystem, brings it closer to its clients in the automotive sector (PSA and Faurecia in particular) and the agri-food industry. ASTI’s CEO, Verónica Pascual, believes “this is a ASTI Technologies Group sets up first superb opportunity to position the company in a rapidly European subsidiary in Mulhouse growing market, with a strong emphasis on technology.” ASTI received strong backing from the Alsace Attractiveness ASTI Technologies Group, a Spanish industry 4.0 company Agency (AAA), which supported the firm throughout its with 150 employees, chose to set up its first European dealings with partners in the region, the Grand Est Regional subsidiary in Mulhouse, in the Grand Est region. This was Council and the Mulhouse Intermunicipal Council, as well very much a strategic decision by the firm, which has been as Business France Madrid, which initially met with the operating in France since 2010, generating sales of over company. €10 million in the country in 2016, making up 40% of its overall turnover. ASTI plans to create 50 jobs in the wider Mulhouse area Based in Burgos, in Spain’s Castile and León region, ASTI over the next three years, and the company is already is an engineering company that specializes in the study, involved in a number of R&D projects with partners in design, manufacture and maintenance of automated industry and academia.

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Mercedes opens an ‘Advanced Its French subsidiary is based in Saint-Amand-Montrond, Design Center’ near Nice in the Centre-Val de Loire region, and has enjoyed steady growth for several years now. As part of its organic growth Mercedes is set to open an “Advanced Design Center” plan, Cizeta Medicali is continuing to invest to increase its at the Sophia Antipolis technology park to underpin its presence in the French market in line with its requirements universal design network. Boasting specialist skills, the and those of its clients, which are among the sector’s network identifies international trends and enhances leading manufacturers. Twenty new jobs, many of which automotive design with new ideas from various continents have already been filled, will boost the site’s current and cultures. workforce of more than 70. The Advanced Design Center will be a new home for The company is firmly committed to product and service designers in France. With a surface area of more than innovation, as demonstrated by the recent launch of an 3,000 sq. m., the building will offer enough space for innovative internationally patented splint, after four years around 50 designers. “Thanks to its fully glazed design, the of in-house development. The device, which can halve entire building will be bathed in soft Mediterranean light, the time it takes to walk again after a sprain, is receiving offering ideal working conditions for designers,” points support from Business France to boost sales in overseas out Mercedes. markets. The firm also achieves service innovation, offering Every one of Mercedes-Benz’s key design disciplines will be training applications for smartphones aimed at users and represented at the site: traditional exteriors and interiors, practitioners (pharmacists and orthopedists). digital design, as well as UI and UX, which are rapidly growing in importance at a time when driverless vehicles and human-machine communication are becoming increasingly prevalent. The network identifies international Cizeta Medicali’s new site committed trends and enhances to product and service innovation automotive design Cizeta Medicali is an Italian firm specializing in the design and production of innovative devices for medical compression with new ideas from applications (socks, bandages, knee supports, compresses and support stockings). various continents and cultures.

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Kobaltblau chooses France to fast-track its growth across Europe Young French talent Kobaltblau is a pan-European information system strategy consulting firm that specializes in switching IS departments is now more European to the Agile model, setting up cloud solutions and defining master plans. than ever and that The company employs 45 consultants who combine will be crucial for us, expertise in the organization and governance of IT services with advanced tech skills, with a view to driving digital given that our projects transformation in companies. Kobaltblau’s consultants are both strategically and operationally minded, which take place in multiple sees them implement innovative methods such as Scrum, countries. Agile, Lean Startup and Design Thinking to ensure that their customers enjoy a successful transformation. A hyper-connected region brimming with talent Founded in Germany two years ago, and already present in the Swiss and Austrian markets, Kobaltblau identified Ile German prowess de France (Paris region) as a springboard for its growth in The business has grown to be very popular in Germany: Europe. Frédéric Cuny, one of the German company’s co- “We banked on trends that set us apart from major firms, founders and the Executive Director for France, explains and went from a handful of consultants to 45 in the space why setting up operations in Ile de France was a crucial of just a year! Our core areas are cloud computing and strategic choice to underpin Kobaltblau’s competitiveness. organizational agility, but we also focus on developing “Paris and Ile de France are right at the heart of Europe. prototypes. The recent shift towards agility has marked a No other region is better connected to other European profound change in how consulting is performed: colossal countries and financial centers. Our clients are major projects are being replaced by more manageable mobile groups and mid-size companies who all have headquarters units and setup concepts that are more visual and more in the area. What’s more, the region boasts world-renowned fun.” higher education and research establishments brimming The firm’s background in Germany adds credibility to with the talent and skills we need to remain at the forefront this implementation project: “Our customers buy into of innovation.” our core belief that innovation arises from thoroughness Kobaltblau intends to recruit a dozen more consultants and perseverance. What’s more, data protection laws in 2018: “Young French talent is now more European than in Germany are extremely strict. So when it comes to ever and that will be crucial for us, given that our projects implementing cloud solutions, the manufacturers we work take place in multiple countries.” for in France have every confidence in us.”

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THE CONTRIBUTION OF FOREIGN SUBSIDIARIES TO FRANCE’S REGIONAL ECONOMIES Foreign firms have a positive impact on value creation and employment in France

As foreign multinationals benefit from expertise within Fig. 27 CONTRIBUTION OF FOREIGN-OWNED BUSINESSES their parent companies, synergies between subsidiaries,Chap3 Graph1. TO THE FRENCH ECONOMY global economies of scale, and differences in factor % prices, they are more efficient and productive than Revenues 21.3 domestic companies.

Value added 16.5 OVERVIEW OF FOREIGN-OWNED BUSINESSES Investment 12.7 Foreign multinationals are set up throughout France and contribute to economic growth in the regions that Employees 11.2 host them. According to the French National Institute for Statistics and Economic Studies (INSEE), there are a total of 28,100 foreign-owned legal entities in France.1,2 Businesses 1 While these companies are set up nationwide, there is nevertheless a high concentration around major cities; 0 5 10 15 20 consequently, Ile de France (Paris region) and Rhône- Alpes are home to more than half of these firms. Source: INSEE; Business France calculations

1 Cf. INSEE Focus, issue 109. 2 A legal entity may be governed by public or private law, and may either be: A corporate entity, whose existence is recognized by law separately from the individuals or institutions that may own or are members of it; A private individual, carrying on an independent business, which must be declared to all the authorities (Commercial Court Registry, Social Security Authorities, Tax Authorities, etc.). The legal entity’s existence arises from choices made by its owners or founders (for organizational, legalUnited or States tax purposes). A legal entity is the main unit recorded in France under the SIRENE business registration system. Germany United Kingdom Netherlands Switzerland Belgium Luxembourg Sweden - 67 - Italy Spain Japan Denmark Ireland Canada Hong Kong Austria South Africa Finland China Portugal 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

% 50

0 Industry Wholesale/retail, Business Information, Transport, Accommodation, Construction Other motor vehicle services communication storage food services repair

En % 80

Métallurgie

non métalliques Industrie chimique

Industrie automobile Activités informatiques du papier et imprimerie Composants électroniques Travail du bois, industries Industrie pharmaceutique Fab. d'équipts électriques Fab. des textiles, industries Fab. d'autres pdts minéraux Fab. de produits métalliques

Construction navale, ferroviaireÉdition, audiovisuel et diffusion Agriculture, sylviculture et pêche Autres industries manufacturières de l'habillement, cuir et chaussures Activités scientifiques et techniques Fab. d'équipts d'irradiation médicale Prod. & distrib. eau, gestion déchets Fab. de denrées alimentaires, boissons Fab. de machines et équipts n.c. ailleurs

En %

Métallurgie

Autres activités Autres industries Industrie chimique

Industrie automobile Fab. pdts métalliquesCaoutchouc, plastique Activités informatiques du papier et imprimerie Fab. d'équipts électriques Composants électroniques Industrie pharmaceutique Travail du bois, industries Équipts d'irradiation médic. Fab. de machines et équipts Instrum. et appar. de mesure

Activités financières et d'assurance Fab. denrées alimentaires, boissons Fab. textiles, industries habillement

Fab. d'autres pdts minéraux non métalliques

Activités spécialisées, scientifiques et techniques Chap3 Graph1. % Revenues 21.3

Value added 16.5

3 . INVESTMENTInvestment ATTRACTIVENESS OF12.7 FRANCE’S REGIONS IN 2017

Employees 11.2

Businesses 1

0 5 10 15 20 Chap3 Graph1. % Revenues 21.3

Value added 16.5

At the end of 2015, foreign firms in France accounted In 2015,United States foreign multinationals had 1.8 million employees for only one percent of all businesses in France, but in France.Germany Most of these foreign-owned businesses Investment 3 12.7 generated 21% of all revenues in the French economy, wereUnited Kingdomfrom fellow European countries, which accounted had 11% of all employees in France, and generated 30% for Netherlands79% of legal entities and 80% of jobs. The leading of all export revenues. contributorsSwitzerland to employment were the United States Employees 11.2 (312,587Belgium jobs), Germany (311,993), the United Kingdom While two-thirds of all jobs with French multinationals in (183,184),Luxembourg the Netherlands (165,657), Switzerland France are at large corporates, half of all jobs with foreign (140,051),Sweden Belgium (134,168), and Luxembourg (107,184). Businesses 1 multinationals in France are at mid-size companies. Italy ForeignSpain multinationals have a significant presence 0 5 10 15 20 in FrenchJapan industry, which accounts for 37.6% of jobs at foreign-ownedDenmark businesses, ahead of the wholesale/ retail Irelandtrade (30%). Together, they generate revenues Fig. 28 BREAKDOWN BY SOURCE COUNTRY OF JOBS of €265Canada billion and value added of €57 billion in industry, AT FOREIGN-OWNED BUSINESSES IN FRANCE whichHong Kongcontributes 34.4% of all revenues earned by foreign-ownedAustria businesses in France. South Africa United States Finland Germany China United Kingdom Portugal 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Netherlands Fig. 29 BREAKDOWN BY SECTOR OF JOBS AND REVENUES Switzerland AT FOREIGN-OWNED BUSINESSES IN FRANCE Belgium % 50 Luxembourg Sweden Italy 40 Spain Japan Denmark 30 Ireland Canada

Hong Kong 20 Austria South Africa Finland 10 China Portugal 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 0 Industry Wholesale/retail, Business Information, Transport, Accommodation, Construction Other motor vehicle services communication storage food services Key: 312,600 jobs in France are at businesses controlled by American repair multinationals.% 50 Jobs Revenues

Source: INSEE Source: INSEE; Business France calculations

3 Revenues are defined as total post-tax revenues generated by businesses from third parties in the ordinary course of business. En % They30 correspond to the sum total of all sales of goods, manufactured products, services and secondary products. 80

70 20

10 - 68 - 50

0 40 Industry Wholesale/retail, Business Information, Transport, Accommodation, Construction Other motor vehicle services communication storage food services repair 30

0 En % 80 Métallurgie

non métalliques Industrie chimique

Industrie automobile 70 Activités informatiques du papier et imprimerie Composants électroniques Travail du bois, industries Industrie pharmaceutique Fab. d'équipts électriques Fab. des textiles, industries Fab. d'autres pdts minéraux Fab. de produits métalliques

Construction navale, ferroviaireÉdition, audiovisuel et diffusion Agriculture, sylviculture et pêche 60 Autres industries manufacturières de l'habillement, cuir et chaussures Activités scientifiques et techniques Fab. d'équipts d'irradiation médicale Prod. & distrib. eau, gestion déchets Fab. de denrées alimentaires, boissons Fab. de machines et équipts n.c. ailleurs

Métallurgie

non métalliques En % Industrie chimique

En % 10 80

0 70

Métallurgie

Autres activités 60 Autres industries Industrie chimique

Activités financières et d'assurance Fab. denrées alimentaires, boissons Fab. textiles, industries habillement

40 Fab. d'autres pdts minéraux non métalliques Activités spécialisées, scientifiques et techniques

Métallurgie

Autres activités Autres industries Industrie chimique

Activités financières et d'assurance Fab. denrées alimentaires, boissons Fab. textiles, industries habillement

Fab. d'autres pdts minéraux non métalliques

Activités spécialisées, scientifiques et techniques Chap3 Graph1. En %

Chiffre d’affaires 21,3

Valeur ajoutée 16,5

Investissement 12,7

Nombre de personnes 11,2 employées

Nombre d’entreprises 1

0 5 10 15 20

États-Unis Allemagne Grande-Bretagne Pays-Bas Suisse 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE Belgique Luxembourg Suède Italie Espagne Japon Danemark FOREIGNIrlande SUBSIDIARIES ACTIVELY Foreign businesses in France employ Canada over one-quarter of all researchers CONTRIBUTINGHong-Kong TO R&D Autriche At the last count, there were 32,779 researchers (full-time equivalent) working for companies controlled by foreign AfriqueIn 2015, du Sud 21% of all business enterprise R&D expenditure (BERD)Finlande in France was made by businesses controlled multinationals, amounting to 20% of all researchers at all by foreignChine multinationals, amounting to a total businesses in France. of €6.5Portugal billion. 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 The share of researchers employed by foreign-owned Three sectors accounted for 39% of overall expenditure subsidiaries reflects how R&D operations are organized En %by foreign-owned businesses: electronic components in different sectors: 73% of researchers at businesses 50 (€1.2 billion, amounting to 17% of foreign BERD in the electronic components sector in France work for expenditure), the automotive industry (€805 million, 12%) foreign subsidiaries (6,108 researchers), as do 59% of and the pharmaceutical industry (€622 million, 10%). researchers in the medical irradiation equipment sector, 40 52% in the basic metals industry, 43% in the manufacture The contribution to R&D expenditure from foreign- of machinery and equipment, 34% in the manufacture of food and beverages, and 30% in the chemical industry. 30 owned subsidiaries was particularly evident in sectors such as: electronic components (76% of total BERD expenditure); manufacture of medical irradiation CONTRIBUTION TO 20 equipment (61%); manufacture of basic metals (58%); REGIONAL WEALTH manufacture of machinery and equipment (50%); manufacture of food and beverages (37%); Foreign-owned multinationals generated 35% of all 10 and manufacture of textiles and clothing (36%). revenues in the Alsace region, 25% in Ile de France (Paris region), 24% in Picardie, 21% in Haute-Normandie, Three-quarters of foreign R&D investment 0 and 20% in Rhône-Alpes and Lorraine. isIndustrie EuropeanCommerce, Services aux Information et Transports et Hébergement et Construction Autres réparation entreprises communication entreposage restauration Europeand'automobile businesses generated three-quarters of all The contribution made by foreign businesses varies foreign R&D investment in France. Switzerland (€1.2 by sector. In the manufacturing industry, foreign-owned billion) and Germany (€897 million) were the main subsidiaries were predominant in the Alsace region European contributors to business enterprise R&D (54%), while more than one-third of regional revenues expenditure in France, while the United States (€1.3 in this sector were generated by foreign-owned billion) made 19% of all R&D investments by foreign multinationals in Lorraine (45%), Haute-Normandie businesses in the country. (37%), Nord-Pas de Calais (40%), and Rhône-Alpes (34%).

Fig. 30 CONTRIBUTION OF FOREIGN-OWNED SUBSIDIARIES TO R&D EXPENDITURE IN FRANCE BY SECTOR (TOP 20) % 80

Basic metals Ships/boats, Metal products Food, beverages Textiles, clothing,leather, footwear Chemical industry mineral products Other non-metallic IT, computer services Automotive industry Electrical equipment Electronic components Other manufacturing Machinery, equipment Wood, paper, printing technical occupations Professional, scientific, Pharmaceutical industry Publishing, broadcasting Water supply, remediation Agriculture, forestry, fishing Medical irradiation equipment rail locomotives/rolling stock

Source: French Ministry for Higher Education, Research and Innovation

% - 69 - 80

Basic metals Other services Metal products Food, beverages watches/clocks Chemical industry mineral products Other non-metallic Automotive industry Electrical equipment IT, computer services Electronic components Other manufacturing Machinery, equipment Wood, paper, printing technical occupations Professional, scientific, Pharmaceutical industry

Rubber and plastic products Financial services, insurance Medical irradiation equipment Measuring, testing, navig. inst.;

Textiles, clothing, leather, footwear Chap3 Graph1. En %

Chiffre d’affaires 21,3

Valeur ajoutée 16,5

Investissement 12,7

Nombre de personnes 11,2 employées

Nombre d’entreprises 1

0 5 10 15 20

États-Unis Allemagne Grande-Bretagne Pays-Bas Suisse Belgique Luxembourg Suède Italie Espagne Japon Danemark Irlande Canada Hong-Kong Autriche Afrique du Sud Finlande Chine Portugal 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000

En % 50

40 3 . INVESTMENT ATTRACTIVENESS OF FRANCE’S REGIONS IN 2017

10 BREAKDOWN BY SOURCE COUNTRY OF BUSINESS ENTERPRISE R&D EXPENDITURE AND RESEARCHERS IN FRANCE

0 Industrie Commerce, Services aux Information et Transports et Hébergement et Construction Autres BERD (€ MILLION) RESEARCHERS (FULL-TIME EQUIVALENT) réparation entreprises communication entreposage restauration Europeand'automobile Union (EU-28) including: 3,559 18,057

Austria 47 251

Belgium 335 1,504

Denmark 121 712

Finland 35 167

Germany 897 4,488

Italy 106 503

Luxembourg 422 2,108

Netherlands 638 3,259

Spain% 94 544 80 Sweden 311 1,338 70 United Kingdom 441 2,514 60 Norway 11 45 50 Switzerland 1,240 5,906 40 Europe sub-total 4,827 24,137 30 United States 1,277 6,305 20 Canada 12 94 10 Japan 199 1,070 0 Rest of world 216 1,173

SUB-TOTAL (FOREIGN SUBSIDIARIES) 6,531 32,779 Basic metals Ships/boats, Metal products Food, beverages Textiles, clothing,leather, footwear Chemical industry mineral products TOTAL (ALL BUSINESSES) 31,756 Other non-metallic 165,845 IT, computer services Automotive industry Electrical equipment Electronic components Other manufacturing Machinery, equipment Wood, paper, printing technical occupations Professional, scientific, Pharmaceutical industry Publishing, broadcasting Water supply, remediation Agriculture, forestry, fishing Source: FrenchMedical irradiation equipment Ministry for Higher Education, Research and Innovation rail locomotives/rolling stock

Fig. 31 PROPORTION OF RESEARCHERS WORKING AT FOREIGN SUBSIDIARIES BY SECTOR (TOP 20) % 80

Rubber and plastic products Financial services, insurance Medical irradiation equipment Measuring, testing, navig. inst.;

Textiles, clothing, leather, footwear Source: French Ministry for Higher Education, Research and Innovation

- 70 - 18%

24% 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT21% IN FRANCE

2% 12% 20% 25% 18%

6% 35%

10% 24% 15% 21% 15% 15%

2% 12% 20% 18% 25%

6% Fig. 32 CONTRIBUTION6% OF FOREIGN-OWNED BUSINESSES TO REGIONAL REVENUES (ALL SECTORS)35% 5% 5% 24% 10% 21% 15% 20% 15% 15% 2% 12% 20% 25% 18% 8% 6% 6% 35% 8% 11% 5% 10% 5% 15% 15% 20% 24% 15% 21% 12%

2% 3% 12% 20% 8% 25% 6% 6% 11% 5% 8% 5% 35% 20% 10% 15% 15% 12% 15%

3% 8%

8% 11% 6% 5% 2% 3% 6% 5% 5% 12% 20% 3%

8% 5% 2% 3% 6% 8% 11%

12%

3% 5% 2% 3% 6%

Source: INSEE; Business France calculations

5% 2% 3% 6%

- 71 - 40%

30% 3 .39% INVESTMENT ATTRACTIVENESS OF FRANCE’S REGIONS IN 2017

7% 17% 45% 29% 40%

13% 54%

10% 30% 36% 39% 28% 33%

7% 17% 45% 40% 29%

13% Fig. 33 CONTRIBUTION16% OF FOREIGN-OWNED BUSINESSES TO REGIONAL REVENUES (MANUFACTURING SECTOR)54% 6% 11% 30% 10% 39% 36% 34% 28% 33% 7% 17% 45% 29% 40% 19% 13% 16% 54% 12% 33% 6% 10% 11% 36% 28% 34% 30% 33% 39% 27%

7% 2% 17% 45% 19% 29% 16% 13% 33% 6% 12% 11% 54% 34% 10% 36% 28% 27% 33%

2% 19%

12% 33% 10% 16% 11% 6% 11% 27% 34% 2%

19% 10% 11% 12% 33%

27%

10% 11%

Source: INSEE; Business France calculations

10% 11%

- 72 - 13%

12% 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT11% IN FRANCE

3% 10% 14% 17% 13%

5% 26%

9% 12% 10% 11% 10% 11%

3% 10% 14% 13% 17%

5% Fig. 34 CONTRIBUTION5% OF FOREIGN-OWNED BUSINESSES TO REGIONAL EMPLOYMENT (ALL SECTORS)26% 4% 7% 12% 9% 11% 10% 13% 10% 11% 3% 10% 14% 17% 13% 5% 5% 5% 26% 6% 7% 4% 9% 7% 10% 10% 13% 12% 11% 11% 5%

3% 1% 10% 14% 5% 17% 5% 5% 7% 4% 6% 7% 26% 13% 9% 10% 10% 5% 11%

1% 5%

6% 7% 2% 5% 2% 3% 3% 4% 7% 5% 13% 1%

5% 2% 2% 3% 3% 6% 7%

1% 2% 2% 3% 3%

Source: INSEE; Business France calculations

2% 2% 3% 3%

- 73 - 27%

25% 3 .28% INVESTMENT ATTRACTIVENESS OF FRANCE’S REGIONS IN 2017

8% 20% 34% 21% 27%

13% 44%

16% 25% 25% 28% 20% 25%

8% 20% 34% 27% 21%

13% Fig. 35 CONTRIBUTION13% OF FOREIGN-OWNED BUSINESSES TO REGIONAL EMPLOYMENT (MANUFACTURING SECTOR)44% 8% 9% 25% 16% 28% 25% 26% 20% 25% 8% 20% 34% 21% 27% 14% 13% 13% 44% 11% 16% 8% 16% 9% 25% 20% 26% 25% 25% 28% 17%

8% 1% 20% 34% 14% 21% 13% 13% 16% 8% 11% 9% 44% 26% 16% 25% 20% 17% 25%

1% 14%

11% 16% 7% 13% 3% 8% 9% 17% 26% 1%

14% 7% 3% 11% 16%

17%

1% 7% 3%

Source: INSEE; Business France calculations

7% 3%

- 74 - 2017 RE PORT - BUSINESS FRANCE FOREIGN INVESTMENT IN FRANCE

METHODOLOGY

The findings in this chapter are based upon European Union inward foreign affiliates statistics (FATS), while estimations come from two sources: the French National Institute for Statistics and Economic Studies (INSEE) Annual Business Statistics Program (ESANE), which provides structural business statistics obtained from administrative and survey data; and INSEE’s Financial Links Between Enterprises Survey (LiFi), which identifies groups of companies operating in France and establishes their size and nationality.

To measure the contribution made by foreign subsidiaries to the French economy region-by- region, we use INSEE data on foreign-owned resident company employment and revenues for the year 2014 (latest year available).

- 75 - 3 . INVESTMENT ATTRACTIVENESS OF FRANCE’S REGIONS IN 2017

A MAJOR CONTRIBUTION The contribution of foreign-owned companies is TO EMPLOYMENT particularly significant in manufacturing, where 21% of all jobs in the sector are provided by these companies. Their contribution is higher than the national average in Although foreign-owned businesses account for only Alsace (44%), Lorraine (34%), Haute-Normandie (28%), one percent of all businesses in France, they play Nord-Pas de Calais (27%), Rhône-Alpes (26%), and a critical role in French regional development. For Picardie (25%). example, they account for one-quarter of all jobs in the Alsace region (26%), 17% in Ile de France (Paris region), 14% in Lorraine, and 13% in the Rhône-Alpes and Nord- Pas de Calais regions.

The open nature of the French economy More than 30,000 French businesses have / Generate 21% of all revenues in France established themselves in foreign countries, / Carry out 13% of investments by businesses while 28,000 foreign companies have French operations in which they have made job-creating 44.5% of the equity of companies listed on the investments. CAC 40 is owned by foreign investors. (Banque de France, September 2017) France is a preferred location for inward investment, ranking ninth in the world for FDI Foreign subsidiaries in France account for 21% flows (UNCTAD, 2018), after the United States, of all business enterprise R&D expenditure China (including Hong Kong), the Netherlands, (BERD) in France. (French Ministries for Primary Ireland, Australia, Brazil, and Singapore. & Secondary Education / Higher Education, Research and Innovation, 2017) The French economy is very open to foreign investment. Twenty-nine of the world’s top 500 companies are French, while 29 are German and 24 are Data from the French National Institute for British. (Fortune Global 500, 2017) Statistics and Economic Studies (INSEE) states that foreign subsidiaries: / Provide jobs for 11% of the workforce in France

- 76 - 4 Appendices

78 JOB-CREATING PHYSICAL INVESTMENT SELECTION CRITERIA 82 BUSINESS FRANCE 2017 RE PORT - BUSINESS FRANCE 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.

COMPANY NATIONALITY Accordingly, and in line with European Union guidelines, 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.

- 79 - 4 . APPENDICES

For certain firms, this entity may not necessarily PROJECT correspond to the head of the group or parent company. Under this definition, the nationality of the firm’s leading COMPLETION RATE shareholders has no bearing on that which is assigned to the firm as a whole. Reports and rankings published by investment promotion agencies provide a list of investment decisions (or public The initial analysis is refined by the notion of control over announcements for some consultants). Business France the activities of the firm’s subsidiaries. The statistical conducted a retrospective study in 2010 of projects criterion chosen for data collection is majority control in the 2007 Annual Report to analyze the impact (ownership of more than 50% of the firm’s shares with of challenging economic conditions on the project voting rights). It is assumed that share ownership of more completion rate. In the study sample (320 projects), than 50% confers genuine control over the firm, even almost 90% of the decisions recorded in 2007 had been though in certain cases control may be exercised with executed. The completion rate for takeovers of ailing less than this amount. companies was 98%.

Concurrently, the study showed that the distinction of being foreign did not protect companies investing JOB NUMBERS in France against the risks inherent in starting a business and the economic climate. As such, 20% of the investment The Annual Report is based on the publicly announced projects reported in 2007 experienced problems, number of jobs to be created or maintained over and in some cases ceased trading altogether. the next three years, which is the approximate time frame that companies use when planning investments. DISPARITIES BETWEEN THE DATA PUBLISHED BY BUSINESS FRANCE, DATA GATHERING FDI MARKETS AND EY AND VALIDATION The way in which information is recorded in the Annual Three methods are used to select the projects Report makes it a uniquely reliable database offering in the Annual Report: unrivalled coverage of recorded investments compared / An analysis of the competitive environment by with publications by private consulting firms, such as consulting observatories of globally mobile investment IBM/PLI, fDi Markets and EY. that track public announcements of job-creating foreign investments in France and Europe. Differences in scope and calculation methods – such as / Projects detected by Business France, primarily through the exclusion of retail outlets, the hotel sector, takeovers its network of international offices. of ailing sites and expansions following takeovers – offer a partial explanation of the significant disparities Data collected by France’s regional economic / observed between these different data sets. development agencies for their areas through contact with economic stakeholders and foreign investors. However, beyond such methodological differences, most disparities arise from the fact that numerous investment Based on these sources, the Annual Report is compiled projects receive no coverage by way of a press article using a cross-validation process of each identified project or press release. These projects therefore remain between Business France, France’s regional economic undetected by the business intelligence tools used by development agencies and other regional partners. private consulting firms. However, Business France has access to this information through data shared by its overseas offices and partners in France’s regions.

- 80 - 2017 RE PORT - BUSINESS FRANCE 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 Studies INSEE (NAF 700, revision 2), but which has RECORDED IN THE 2017 been adapted to the specificities of the international ANNUAL REPORT investment market.

/ Creations1: 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 by the company. or distributing. These classifications evolve over time 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 - Financial difficulties with the tax and social security / Commerce and retail collection authorities. / Construction, building materials - Short-term risk of site closure (i.e. no successor). / Consulting, engineering and business services / Consumer electronics / Expansions following takeovers: Jobs created or / Education and training maintained by an expansion following the takeover / Electrical, electronic, IT equipment by a foreign investor of an ailing company resident / Electronic components in France. / Energy, recycling, other concessions / Expansions following buyouts: Jobs created / Financial services, banking and insurance following the takeover by a foreign investor of / Furnishings, household goods a company resident in France with no financial / Glass, ceramics, minerals, wood, paper difficulties. The only jobs counted in the Annual / Hotels, tourism and restaurants Report are those arising from the expansion. / Machinery and mechanical equipment / Media, publishing / Facility upgrades / safeguarding investments: / Medical/surgical equipment and devices Industrial projects that increase or preserve / Metals, metalworking production capacity at a site and save jobs that / Other services might otherwise ultimately have been lost. / 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. / Software and IT services 2 Takeovers of ailing sites may result in regroupings or site / Telecoms, internet service providers transfers. The Annual Report records the jobs maintained / Textiles, industrial textiles, clothing and accessories by these transfers. / Transport, storage Project business activity In order to operate effectively, companies rely on various types of business activity. CLASSIFICATIONS USED IN THE ANNUAL REPORT Aside from production/manufacturing are tertiary activities such as business services and consumer services, logistics, retail outlets, headquarters, decision- The classifications used are designed making centers, and R&D, engineering and design. to reflect the characteristics of the A specific index is used in the report to categorize international investment market projects by the business activity they fulfill.

- 81 - 4 . APPENDICES

PROJECT BUSINESS ACTIVITY

1 R&D, ENGINEERING, DESIGN 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 PRODUCTION / 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, 6 BUSINESS SERVICES 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.

THE FOLLOWING PRODUCING ARE NOT INCLUDED IN THE ANNUAL REPORT THE ANNUAL REPORT: Sources / Business France offices / Temporary or seasonal jobs. / Regional economic development agencies / Jobs transferred to another location when a / France Observatory company relocates within France as a result of reorganizing, regrouping or restructuring its Cross-validation of data business activities. Data processed: / Diplomatic missions, unless they are internationally mobile (an international organization’s registered / Verification that project meets the Report’s office, for example). criteria / Additional information for some projects

Annual Report Regional economic development agencies and Business France validate projects

- 82 - 2017 RE PORT - BUSINESS FRANCE 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 nature of the French economy. of the French economy, advancing and promoting Our agency operates where it business throughout France, and by French companies abroad. counts, pulling out all the stops

It is a key player in fostering competitiveness, growth and for businesses to grow employment in France, offering clear and efficient access and succeed, both in France to all corporate development stakeholders and services for all companies, irrespective of their size, sector and and abroad.” nationality.

From exports to investments through to multinational partnerships, from identifying contacts and making 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 businesses set up in France – mid-size companies Thanks to its extensive network and dynamic team of and SMEs in particular – and their exports to foreign 1,500 professionals, both in France and in 70 countries markets. Business France is involved throughout the world, / Promoting and facilitating foreign investment in not only in getting projects off the ground but also in France. following up and ensuring their long-term success. / Promoting France’s companies, business image and nationwide attractiveness as an investment location. With specialisms in different areas of expertise and 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.

- 83 - 4 . APPENDICES

OUR COMMITMENT We can provide advice in line with your project’s strategic, sector-based and human specificities. Being able to count on the people supporting and Business France is ready to be your partner of choice, an guiding you on the ground to bring your plans to interface for all the data you need to deliver your project. fruition is key to the success of any project. This is the From the moment you first make contact, you can ask role played by Business France, whose personnel will do Business France to serve as your single port of call. all they can to help make your ideas reality. Calling upon Business France Business France provides end-to-end support and can gives you access to: stand by you every step of the way, offering legal and tax advice, help with administrative formalities, and guidance / The number-one provider of customized services for in choosing a market or investment location. French and foreign businesses, supporting them and Business France and its partners have a wide array of the success of their international projects from start to resources at their disposal. We can provide you with a finish. dedicated team to harness all the necessary expertise / Objective and detailed market analysis, macroeconomic and solutions to build your international projects stage analysis, benchmarks, observatories, maps, etc. We by stage and oversee their development in the long term. provide you with all the tools you need to make the best choice. Standing firmly by your side, Business France’s / Support and expertise from a partner network of comprehensive network, spanning 70 of the world’s international development experts and a fully-fledged largest countries, can get to the heart of your community of stakeholders, including chambers of requirements. You can also depend on a focused commerce in France and abroad, Bpifrance, Coface personal contact among the personnel who staff and France’s foreign trade advisors (CCEF), as well as Business France’s 92 offices worldwide. banks, auditing firms, expert consultants, transport companies, lawyers, etc. OUR PRIORITY OUR VALUES: Simplifying and fast-tracking project delivery / Proximity Business France offers a holistic approach to your / Efficiency international business project, from decision-making and market analysis to successful completion. / Pride

Export overviews The export overviews were written with assistance from the French Treasury Directorate (DG Trésor), which advises on and oversees French economic policy under the authority of the Minister for the Economy and Finance. It also promotes French policy in Europe and throughout the world.

The Treasury Directorate lends its expertise in matters relating to forecasting and consulting, regulation, international negotiations, developmental aid, export assistance and foreign investment. It oversees the French government’s accounts and debt management through the French Treasury Agency (Agence France Trésor – AFT) and monitors government shareholder interests through the Government Shareholding Agency (Agence des participations de l’État – APE).

For further information, please visit: www.economie.gouv.fr

- 84 - Publication Director: Christophe Lecourtier (CEO) Chief Editor: Sylvie Montout (Chief Economist) Contributors: Yasmine Galloul, Yann Letessier, Romain Guillard (Economists) Translation: David Williams, Peter Stewart (English Language Editors) Editorial coordination: Mélanie Cornière (Editorial Project Manager); Priscille Troyan-Gulli (Brand & Image Team Leader) Design and layout: Hopscotch – March 2018

Printed in France by IPP Imprimeur 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 64 countries throughout the world, who work with a network of public- and private-sector partners.

CONNECT – FAST-TRACK – SUCCEED

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 Exports

2017

The international development of the French economy Exports

2017 1 Introduction

8 GLOBAL TRADE 2 French exports Contents

14 4-5 2017 SUMMARY 3 4 France’s place French in the world exporters

24 44 GLOBAL VALUE CHAINS OVERVIEW OF FRENCH AND VALUE ADDED EXPORTERS

28 48 FRANCE’S EXPORT FRENCH STARTUPS PERFORMANCES GOING GLOBAL

32 SECTOR-SPECIFIC SPECIALIZATION

35 FRANCE: A GATEWAY TO EUROPEAN AND AFRICAN MARKETS 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

2017 SUMMARY

French exports

French goods TOP 5 EXPORTS (2017) EXPORT DESTINATIONS

€473 15% GERMANY BILLION* 7.7% SPAIN

FRENCH GOODS 7.6% ITALY EXPORTS UP 4.5% 7.3% UNITED STATES IN 2017 7% BELGIUM *Source: French Customs Authorities. Estimated FOB/FOB gross data, including military hardware

TOP 4 GOODS EXPORT SECTORS

CHEMICALS, AEROSPACE 12% PERFUMES AND COSMETICS 12% INDUSTRIAL AND AUTOMOTIVE 10% AGRICULTURAL MACHINERY 10%

BUOYANT EXPORT MARKETS IN 2017

MARKETS DRIVING FRENCH EXPORTS IN EUROPE MARKETS DRIVING FRENCH EXPORTS IN ASIA

+11% POLAND +18% CHINA +8.6% ITALY +37% INDIA +7% SPAIN SOUTH +29% KOREA +6.9% BELGIUM

- 5 - 2017 SUMMARY

Breakdown POSITIVE OF EXPORT VALUE BY COMPANY SIZE OUTLOOK: € 13% SMEs 52% LARGE 84% CORPORATES 35% of decision-makers expect MID-SIZE their export revenues to rise COMPANIES over the next three years

FRANCE: FRANCE SEEN THE WORLD’S AS AN EXPORT HUB

TH TO AFRICA SME 4 EXPORTS UP by 81% of businesses

OTHER EUROPEAN COUNTRIES LARGEST EXPORTER 3.9% OF SERVICES by 90% of businesses

EXPORTS BY FOREIGN COMPANIES IN FRANCE TOP 5 SOURCE COUNTRIES OF FOREIGN-OWNED EXPORTERS 40 % FRENCH GOODS EXPORTS GENERATED BY FOREIGN-OWNED BUSINESSES

29% UNITED STATES € 14% GERMANY 12,000+ 25% FOREIGN-OWNED OF FOREIGN SUBSIDIARIES € SUBSIDIARY 8% LUXEMBOURG EXPORT GOODS FROM € REVENUES IN FRANCE: 10% FRANCE 8% SWITZERLAND OF ALL FRENCH GENERATED EXPORTERS IN OVERSEAS MARKETS 8% NETHERLANDS

- 6 - 1 Introduction

8 GLOBAL TRADE 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

GLOBAL TRADE

The aim of this report is to provide insight into the products, driven by aviation and pharmaceuticals. international development of the French economy, Since 2002, these two sectors have seen the largest looking not only at foreign investment, but also at increases in their share of national exports, rising exports by businesses established in France. 4.5 and 1.3 percentage points, respectively.

Today, the strategic behavior of firms in a global France is also a global leader in a number of its sectors marketplace no longer boils down to a binary choice of excellence. Consequently, French exports are most between exporting and making investments abroad. concentrated in high value-added sectors, such as The large increase in intra-group trade between parent transport equipment (23.2% of total export value), companies and foreign subsidiaries since the 1980s is capital goods (19%), the chemicals industry (12.2%), symptomatic of a more complex strategic relationship. and food/beverages (10.2%).

The globalization of value chains has intensified cross- border investment and cross-border trading in parts GLOBAL GROWTH and components, intermediate goods and finished products. In this trading structure, goods produced ON THE RISE in one economy and exported to a different end market involve inputs from other economies, which According to the latest estimates from the OECD, in turn source inputs from yet other economies. global economic growth in 2017 coincided with a 4.8% The growth of trade is due mainly to this back-and-forth real increase in trade flows, which continued on their of intermediate goods, which cross borders several rise since the first half of 2016. times before the finished products and services are sold to end consumers. The main explanations advanced for this were economic recovery in Europe – where trade volumes are relatively The economic turmoil over the past decade has affected high – along with a sharply increasing trade in electronic the sector-specific composition of French exports, goods in Asia, as well as a switch in the composition of with a rising share of high-tech exports. French exports demand towards higher business investment involving today are concentrated in mid-range and high-end more imported goods.

- 9 - 1 . INTRODUCTION

Fig. 1 CONTRIBUTIONS TO WORLD TRADE widespread sluggish growth would also dampen GROWTH (2013-2019) global trade. 5 % Businesses’ openness to opportunities in foreign markets is a source of economic recovery and success, 4 promising5 % higher growth, greater investment and more jobs in economies throughout the world.

3 Many4 studies, including a report in January 2010 by Lionel Fontagné and Farid Toubal at the French Economic Analysis Council (CAE), “Investissement 2 direct3 étranger et performances des entreprises” [“Foreign direct investment and corporate performance”], have shown that “companies located 1 in France2 that belong to foreign groups are more efficient than companies belonging to French groups, and the latter are more efficient than independent 0 companies:1 they create more jobs, export more, import 2013 2014 2015 2016 2017 2018 2019 more and are more profitable.”

China Commodity producers North America 0 Asia Euro zone Rest of the world World 2013 2014 2015 2016 2017 2018 2019

Source: OECD, Economic Outlook 2.5 Fig. 2 GLOBAL TRADE INTENSITY (2002-2019)

2 2.5 Recent OECD research has nevertheless highlighted a slowdown in global trade over the last five years. The1.5 main factors in this declining trade intensity have 2 been the introduction of post-crisis protectionist measures seeking to reduce free trade and contract global1 value chains, during which time major longstanding 1.5 trade agreements, such as NAFTA and the United Kingdom’s economic relationship with the rest of 0.5the European Union, have been put up for renegotiation. 1

Global economic growth gathered pace in 2017, rising0 3.6% compared with 3.1% in 2016. Among 0.5 2002-2007 2013 2014 2015 2016 2017 2018 2019 developed economies, the euro zone stood out with figures of 2.4% in 2017 – higher than in the United 0 States (2.1%) – followed by a forecasted 2.1% in 2018. 2002-2007 2013 2014 2015 2016 2017 2018 2019

Foreign companies Countries in northern Europe, France (1.8%)1, Spain, Trade growth to GDP growth ratio Portugal and Italy all delivered good performances. Average 1970-2015 Average 1987-2007 However, the arrival of strong, sustainable growth Foreign companies isFrench uncertain, companies and in the longer term, the risk is that Source: OECD, Economic Outlook

1 The latest estimates from the French National Institute for Statistics and EconomicFrench companies Studies (INSEE) indicate growth of 2% in France in 2017. Exporters

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

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

Africa

North America

North America Central and South-East Asia

Central and South-East Asia

Middle East

Latin America

Oceania

% 0 20 40 60 80 100 Oceania

% 0 20 40 60 80 100 5 %

2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES 4

0 2013 2014 2015 2016 2017 2018 2019

THE STRATEGIC ROLE OF METHODOLOGY 2.5EXPORTING FOR COMPANIES BASED IN FRANCE

FRANCE, AS SEEN FROM 2 ABROAD – EXPORT SECTION On the whole, exporters established in France believe OF THE KANTAR PUBLIC/BUSINESS that exporting is a major part of their company’s development strategy. The vast majority have an FRANCE SURVEY 1.5 international outlook, seeing their exports as an unmissable growth opportunity, and remain very Business France commissioned Kantar Public to carry confident1 of achieving international success. No fewer out a survey to gain insight into the factors identified than 85% of exporters surveyed by Kantar Public by companies as facilitating and hindering exports. for Business France in November 2017 saw exporting From November 21 to December 6, 2017, the institute 0.5as a decisive part of their strategy. surveyed 326 senior executives of firms that export from France, including 126 foreign-owned companies 0 (foreign companies account for one-third of French 2002-2007 2013 2014 2015 2016 2017 2018 2019 exports) and 200 French-owned concerns. Fig. 3 HOW IMPORTANT IS EXPORTING IN YOUR COMPANY’S STRATEGY IN FRANCE? The study provides an overview of exporting companies established in France: What proportion Foreign companies of their revenues do they make in foreign markets? How important are exports to their strategy? Which areas of the world are they targeting? French companies

It also identifies France’s strengths and weaknesses Exporters when it comes to exports. % 0 10 20 30 40 50 60 70 80 90 100

Don't know Not at all important Not very important Europe Important Very important

Source: Kantar Public/Business France survey

Africa Furthermore, the outlook looks rosy, as 89% of decision- makers surveyed expect their company’s revenues to rise over the next three years. North America While Europe (95%) remains a preferred export market, Africa (59%) stands out as a choice export

destinationCentral and for exporters in France. South-East Asia

Middle East

Latin America - 11 -

Oceania

% 0 20 40 60 80 100 5 %

0 2013 2014 2015 2016 2017 2018 2019

2.5

1.5

1 1 . INTRODUCTION

0.5

0 2002-2007 2013 2014 2015 2016 2017 2018 2019

Foreign companies

French companies

Exporters WHICH AREAS OF THE WORLD DO YOU EXPORT Fig. 4 % FRANCE’S EXPORT TO0 FROM10 FRANCE?20 30 40 50 60 70 80 90 100 PERFORMANCES

Europe Globalization in recent years has been notable for the rapid integration of leading emerging economies, such as China, India, Brazil and Singapore. This phase

Africa has resulted in lower global market shares for developed countries. The share in global export value of goods exported by European Union countries fell from 42% in 1994 to 34% in 2016, while China advanced from North 3% to 14%. America In this context, France’s global export market share crept down until 2012 before levelling out at just Central and South-East Asia above 3%. France’s share of global goods exports in 2016 was 3.2%. This stabilization can also be seen in the export volume data, confirming that the levelling out did indeed arise from an improvement in France’s Middle East competitiveness over recent years, rather than from exchange rate effects.

A similar pattern can be discerned for all of France’s Latin America European neighbors except Germany, whose global market share started to recover in 2013 but remains some way below its pre-crisis level. By way of comparison, Germany and the United Kingdom Oceania accounted for 8.4% and 2.6%, respectively, of global goods exports in 2016. % 0 20 40 60 80 100 French goods exports increased 4.5% in 2017, Exporters French companies Foreign companies in the biggest rise since 2011. Service exports also grew Source: Kantar Public/Business France survey in 2017, rising by 3.8%.

There were various reasons for these increases, driven in particular by the automotive industry, metals, The breakdown of export destinations for companies chemicals, and food/beverages. in France is becoming more diverse. Two-thirds of companies in France (three-quarters of French France’s key strengths identified in surveys were companies and 56% of foreign-owned companies) the quality of products and services in France (cited stated their intentions to export to new destinations by more than 90% of respondents), France’s reputation, during the coming three years, especially China the stability of the euro, effective nationwide logistics and Russia. and transport infrastructure.

- 12 - 2 French exports 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

FRENCH EXPORTS French goods exports grew 4.5% in 2017, the largest rise since 2011

Having fallen slightly in 2016 (-0.6%), French goods sales rise in 2017, with the notable exceptions exports enjoyed substantial growth in 2017, swelling by of aerospace and agricultural products. The sectors 4.5% to €473 billion.1 Imports, however, rose at a faster rate that made the largest contributions to boosting (+6.8%), totaling €535 billion, not least due to a significant exports were the automotive industry, basic metals/ hike in the country’s energy costs (+€7.5 billion). metal products, chemicals, and food/beverages.

France’s strong goods export performance came The automotive industry’s exports increased for primarily in four sectors, which together accounted the fourth consecutive year, up 9.2% from 2016 to reach for nearly two-thirds of French exports: transport a ten-year high.2 The basic metals and metal products equipment (23.2% of exports by value), capital goods sector also saw its foreign sales grow (+12.5%), (19%), chemicals (12.2%) and food/beverages (10.2%). particularly to the European Union (+€3 billion). Service exports also climbed 3.8% in 2017. Though still The food/beverages industry, too, saw vigorous growth not back to the €8.9 billion it posted in 2015, France’s in its exports (+6%), attributable in part to the buoyant services trade surplus increased to €5.4 billion in 2017, drinks sector in the United States and China. a rise largely attributable to sizeable growth in the transport and travel sector (+7.5%). The excellent performance of the perfumes and cosmetics sector is also worthy of note, its exports rising 11% in 2017 and generating a trade surplus of €10.6 billion. The recent improvement in the FRENCH GOODS EXPORTS competitiveness of French production facilities may BUOYANT IN MOST SECTORS have been one factor in the strong performance of French manufacturing exports. The sources of France’s improved export performance are varied. Most sectors saw the value of their foreign

1 FOB, including military equipment. 2 The export figures given in the rest of this chapter will be FOB, excluding military equipment.

- 15 - 2 . FRENCH EXPORTS

Fig. 5 BREAKDOWN BY SECTOR OF FRENCH GOODS EXPORTS (2017)

4.3% 3% 23.2% 3.8% 1.9% Textiles, clothing, Transport equipment leather and footwear 4.1% Rubber, plastic, Capital goods mineral products Water, energy 5.2% Chemical industry

Agriculture, forestry, fishing Food, beverages 19% Wood, paper products 6.4% Basic metals, metal products

Miscellaneous Pharmaceuticals 6.8%

10.2% 12.2%

Source: French Customs Authorities, FOB exports excluding military equipment; Business France calculations.

VALUE OF AEROSPACE Fig. 6 CONTRIBUTION OF SECTORS TO FRENCH EXPORT GROWTH (2017) AND AGRICULTURAL EXPORTS 0.9 Automotive industry FALLS IN 2017 0.8 Basic metals, metal products 0.7 Chemicals Sales of aerospace equipment declined by 3.9% in 2017, 0.6 Food, beverages reducing the sector’s trade surplus by €1 billion. However, 0.5 Mining, quarrying, water, energy this dip can be explained to a large extent by the decision 0.4 Coke, refined petroleum products to phase out coordinated Franco-German manufacturing 0.3 Perfumes, cosmetics of Airbus aircraft, with the reorganized production 0.3 Industrial/agricultural machinery process resulting in lower exports of semi-finished 0.2 Textiles, clothing, leather and footwear products to Germany. 0.2 Electrical equipment 0.2 IT, electronic, optical products Airbus posted record commercial aircraft delivery figures 0.2 Rubber, plastic, mineral products in 2017, with an order book securing production for 0.1 Pharmaceuticals 10 years at current levels, underlining the sector’s rude 0.05 Wood health. Germany aside, French aerospace exports rose -0.02 Other manufacturing 8.5% over the course of the year. -0.1 Agricultural products -0.2 Other transport equipment Exports of agricultural products also contracted in 2017, -0.5 % pts Aerospace albeit at a much slower pace than in 2016. In the first half -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 of 2017, they bore the consequences of the poor harvests Key: The sum of all contributions equals total growth in French exports across all sectors. For example, the food/beverages industry accounted for 0.6 percentage in summer 2016, before recovering in the second half of points of total growth in French exports (4.5%). 14.8% Germany the year (+7.5% compared with the first six months) due Source: French Customs Authorities, FOB exports excluding military equipment; to more clement weather. Business France calculations Spain 7.7%

Italy 7.6%

United States 7.3%

6.9% - 16 - Belgium

6.7% United Kingdom

4.1% China

Netherlands 3.7%

3.4% Switzerland

2% Poland

Singapore 1,.5%

1.4% Turkey

1.4% Japan

1.4% Hong Kong

1.2% Russia

1.2% India

1.1% South Korea

1.1% Algeria

1.1% Sweden

Portugal 1% % 0 2 4 6 8 10 12 14 16

12% Aerospace

10.4% Automotive

8.9% Chemicals

Industrial/agricultural 8.2% machinery

Basic metals, 6.8% metal products

Food, beverages 6.7%

IT, electronic, 6.5% optical products

6.4% Pharmaceuticals

Textiles, clothing, 5.2% leather and footwear

4.3% Electrical equipment

Rubber, plastic, 4.1% mineral products

3.4% Beverages

Perfumes, cosmetics 3.3%

3.0% Agricultural products

Mining, quarrying, 2 % water, energy

1.9% Wood

Coke, refined 1.8% petroleum products

Other transport 0.7% equipment

Other 4.3% manufacturing % 0 2 4 6 8 10 12 14 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

SECTOR TRENDS IN EUROPEAN UNION FRENCH GOODS EXPORTS (2016-17) AND ASIA: THE TWO MAIN € BILLION REGIONS DRIVING FRENCH EXPORT GROWTH

SECTOR 2016 2017 ANNUAL GROWTH French exports to the vast majority of world regions are on the increase. The European Union and Asia were the two biggest contributors to the rise in French Transport equipment 106.2 107.2 0.9% exports in 2017, accounting for 1.9 and 1.8 percentage points, respectively, of the 4.5% growth in foreign Aerospace 57.9 55.6 -3.9% market sales.

The European Union remained far and away the Automotive 44.2 48.2 9.2% leading market for French goods exports in 2017, with 60% of all French exports going to EU countries. Capital goods 84.9 87.8 3.4% After a flat 2016, French exports to the EU perked up again in 2017, posting growth of 3.1%.

Chemical industry 51.8 56.4 8.9% France’s goods exports to the Asia-Pacific region, its second largest market (+14%), and to new EU Member Perfumes and cosmetics 13.8 15.4 10.9% States (+11%) were particularly buoyant. The double- digit growth in French exports to Asia-Pacific can be explained by bullish demand in the aerospace sector Food, beverages 44.5 47.2 6.0% from a number of Asian countries, with orders from China, India and South Korea up €1.6 billion, €1.4 billion Basic metals, metal products 27.9 31.4 12.5% and €740 million, respectively.

Pharmaceuticals 29.3 29.5 0.9% BORDERING COUNTRIES Textiles, clothing, 23.1 24.2 4.7% CONSTITUTE FRANCE’S leather and footwear BIGGEST EXPORT MARKETS

Miscellaneous 19.8 19.8 -0.2% Germany, Spain and Italy were the largest markets for French exports in 2017, with Germany remaining Rubber, plastic, mineral products 18.3 19 3.8% the leading destination, despite a 4% fall in value from the previous year. This decline can be attributed Water, energy 14.1 17.8 26.0% to lower exports of semi-finished aerospace products to Germany (-37%) following the phasing out of coordinated Franco-German production, causing Agriculture, forestry, fishing 14.3 13.9 -2.9% the aerospace sector’s share in the total value of exports to Germany to dwindle from 22 to 14% in the space Wood, paper products 8.4 8.7 2.6% of a year.

Source: French Customs Authorities, FOB exports excluding military equipment; Business France calculations

- 17 - 2 . FRENCH EXPORTS

Fig. 7 BREAKDOWN BY DESTINATION REGION OF FRENCH GOODS EXPORTS (2017)

0.6%

Northern Africa 2.2% European Union 1.9% Sub-Saharan and 3.1% Asia-Pacific Southern Africa North America Central and 3.3% South America 59% Non-EU Europe Other 7.1% Middle East

8.8%

13.9%

Source: French Customs Authorities, FOB exports excluding military equipment; Business France calculations

TRENDS IN FRENCH GOODS EXPORTS BY DESTINATION REGION (2016-17)

2016 2017 COMPOUND ANNUAL GROWTH ANNUAL GROWTH (2008-2017)

TOTAL 442.7 462.8 4.5% 1.3%

European Union 264.6 272.9 3.1% 0.3%

Euro zone 205.4 211.8 3.1% 0.2%

New Member States 25.2 28 11% 2.7%

Non-EU Europe 31.8 33 3.6% 1.5%

Africa 25.5 24.5 -4.2% -0.3%

North Africa 14.3 14.5 1.1% -0.2%

Sub-Saharan and Southern Africa 11.2 10.0 -10.9% -0.5%

Americas 48.3 49.2 1.8% 2.9%

North America 39.4 40.5 2.9% 3.8%

Central and South America 8.9 8.6 -3.2% -0.3%

Middle East 14.1 15.4 8.9% 1.8%

Asia-Pacific 56.3 64.1 14% 5.9%

Source: French Customs Authorities, FOB exports excluding military equipment; Business France calculations

- 18 - 0.9 Automotive industry 0.8 Basic metals, metal products 0.7 Chemicals 0.6 Food, beverages 0.5 Mining, quarrying, water, energy 0.4 Coke, refined petroleum products 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES 0.3 Perfumes, cosmetics 0.3 Industrial/agricultural machinery 0.2 Textiles, clothing, leather and footwear 0.2 Electrical equipment 0.2 IT, electronic, optical products 0.2 Rubber, plastic, mineral products 0.1 Pharmaceuticals 0.05 Wood -0.02 Other manufacturing -0.1 Agricultural products -0.2 Other transport equipment -0.5 % pts Aerospace -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 Fig. 8 BREAKDOWN BY DESTINATION COUNTRY Reduced aerospace sales were, however, partially OF FRENCH EXPORTS (2016-17) offset by the very strong performance of other sectors, 14.8% particularly the automotive and metal industries, both Germany of which saw their sales to Germany grow by nearly €1 billion. Aerospace aside, French exports to Germany Spain 7.7% rose 5.3% in 2017.

Italy 7.6% Sales to Spain (+6.9%) and Italy (+8.6%) were particularly buoyant, with the latter relegating 7.3% United States the United States to France’s fourth largest export market. 6.9% Belgium

6.7% RISING SHARE OF HIGH VALUE-ADDED United Kingdom SECTORS IN FRENCH EXPORTS SINCE 2002 4.1% China The sector-specific composition of French exports Netherlands 3.7% has changed considerably over the last fifteen years, as France has moved more and more towards mid- 3.4% Switzerland range and high-end products.

2% Since 2002, aerospace and pharmaceuticals have Poland been the two sectors where overseas sales have increased the most, with their share of national exports Singapore 1,.5% rising by 4.5 and 1.3 percentage points, respectively.

1.4% Both these sectors have the advantage of being less Turkey sensitive than others to competition and price.

1.4% Driven by growing global demand for airliners, overseas Japan aerospace industry sales have more than doubled since 2002. 1.4% Hong Kong Conversely, there has been an erosion in exports 1.2% Russia from low-tech sectors, where the emergence of new, more competitive players in this segment of the value 1.2% India chain has intensified competition. For example, the automotive and capital goods industries have seen 1.1% South Korea a 4% decline in their share in French exports since 2002. However, the automotive industry has been 1.1% Algeria regaining ground more recently, with its share in France’s exports growing by 1.4 percentage points 1.1% Sweden since 2013 on the back of rising overseas sales in the last four years.

Portugal 1% % Meanwhile, more traditional industries have been 0 2 4 6 8 10 12 14 16 performing well, with the food products (+1.5%pts),

Share of French exports (2017) perfumes/cosmetics (+0.8%pts), and clothing/leather Share of French exports (2016) (+0.3%pts) sectors all accounting for an increasingly large share of French exports since 2002. Source: French Customs Authorities, FOB exports excluding military equipment; Business France calculations 12% Aerospace

10.4% Automotive

8.9% Chemicals

Industrial/agricultural 8.2% - 19 - machinery

Basic metals, 6.8% metal products

Food, beverages 6.7%

IT, electronic, 6.5% optical products

6.4% Pharmaceuticals

Textiles, clothing, 5.2% leather and footwear

4.3% Electrical equipment

Rubber, plastic, 4.1% mineral products

3.4% Beverages

Perfumes, cosmetics 3.3%

3.0% Agricultural products

Mining, quarrying, 2 % water, energy

1.9% Wood

Coke, refined 1.8% petroleum products

Other transport 0.7% equipment

Other 4.3% manufacturing % 0 2 4 6 8 10 12 14 0.9 Automotive industry 0.8 Basic metals, metal products 0.7 Chemicals 0.6 Food, beverages 0.5 Mining, quarrying, water, energy 0.4 Coke, refined petroleum products 0.3 Perfumes, cosmetics 0.3 Industrial/agricultural machinery 0.2 Textiles, clothing, leather and footwear 0.2 Electrical equipment 0.2 IT, electronic, optical products 0.2 Rubber, plastic, mineral products 0.1 Pharmaceuticals 0.05 Wood -0.02 Other manufacturing -0.1 Agricultural products -0.2 Other transport equipment -0.5 % pts Aerospace -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1

14.8% Germany

Spain 7.7%

Italy 7.6%

United States 7.3%

6.9% Belgium

6.7% United Kingdom

4.1% China

Netherlands 3.7%

3.4% Switzerland

2% Poland

Singapore 1,.5%

1.4% Turkey

1.4% Japan

1.4% Hong Kong

1.2% Russia 2 . FRENCH EXPORTS 1.2% India

1.1% South Korea

1.1% Algeria

1.1% Sweden

Portugal 1% % 0 2 4 6 8 10 12 14 16

Fig. 9 SECTOR TRENDS IN FRENCH GOODS EXPORTS (2002-2017) EXPORTING REGIONAL EXPERTISE 12% Aerospace French exports originate from companies and industries 10.4% Automotive located throughout France, but the revenues they generate are not evenly distributed across its regions. 8.9% Chemicals In 2017, two-thirds of French export sales came from five of France’s 13 regions: Ile de France (Paris region) Industrial/agricultural 8.2% (19%), Grand Est (13.5%), Auvergne-Rhône-Alpes machinery (12.8%), Occitanie (12.4%) and Hauts de France (10.3%). Basic metals, 6.8% metal products Some regions clearly specialize in specific sectors: nearly three-quarters of exports from Occitanie Food, beverages 6.7% (south-west France) in 2017 were from the aerospace

IT, electronic, 6.5% industry, and more than one-third of Brittany’s exports optical products were in the food sector, while Provence-Alpes-Côte d’Azur, Auvergne-Rhône-Alpes, Centre-Val de Loire 6.4% Pharmaceuticals and Normandie can all be seen to specialize in chemical and pharmaceutical exports. Textiles, clothing, 5.2% leather and footwear There is also a very strong regional specialization 4.3% Electrical equipment for certain sectors. For example, 71% of automotive industry exports in 2017 were produced by four Rubber, plastic, 4.1% regions in north-eastern France: Bourgogne-Franche- mineral products Comté, Grand Est, Hauts de France and Ile de France 3.4% Beverages (Paris region). Another example is the perfumes and cosmetics sector, where nearly 80% of exports Perfumes, cosmetics 3.3% in 2017 were produced in only four regions: Auvergne- Rhône-Alpes, Centre-Val de Loire, Hauts de France

3.0% and Ile de France (Paris region). Agricultural products

Mining, quarrying, 2 % water, energy

1.9% Wood

Coke, refined 1.8% petroleum products

Other transport 0.7% equipment

Other 4.3% manufacturing % 0 2 4 6 8 10 12 14

2017 2002

Source: French Customs Authorities, FOB exports excluding military equipment; Business France calculations

Key: Pharmaceuticals accounted for 6.4% of French exports in 2017, compared with 5.1% in 2002.

- 20 - 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

Fig. 10 REGIONAL BREAKDOWN OF FRENCH EXPORTS (2017)

10.6%

HAUTS-DE-FRANCE 7.2% NORMANDIE ILE DE FRANCE (PARIS REGION) 13.5% GRAND EST 19.4% BRETAGNE 2.4% (BRITTANY) PAYS DE LA LOIRE

4.1% 4.2% BOURGOGNE- 4.4% CENTRE-VAL DE LOIRE FRANCHE-COMTÉ

NOUVELLE-AQUITAINE AUVERGNE-RHÔNE-ALPES 13% 5.1%

4.7%

11.3% PROVENCE-ALPES -CÔTE D’AZUR

OCCITANIE

0.03%

CORSE (CORSICA)

Source: French Customs Authorities, FOB exports excluding military equipment; Business France calculations.

Key: Pays de la Loire accounted for 4.1% of French exports in 2017.

- 21 - 2 . FRENCH EXPORTS

Fig. 11 LEADING EXPORT INDUSTRIES OF FRANCE’S REGIONS - EXPORT SHARE (% OF REGIONAL TOTAL) OF THE TWO LARGEST EXPORT INDUSTRIES (2017)

BASIC METALS, METAL PRODUCTS 14%

AUTOMOTIVE

PHARMACEUTICALS 13.4% CHEMICALS AUTOMOTIVE FOOD, 14.4% BEVERAGES 17.7% 15.6% AUTOMOTIVE INDUSTRIAL/AGRICULTURAL MACHINERY 36.5% 14.4% IT, ELECTRONIC, 14.2% OPTICAL PRODUCTS AUTOMOTIVE 12.4%

12.2% INDUSTRIAL/AGRICULTURAL PHARMACEUTICALS MACHINERY 20.9% AUTOMOTIVE 17.3% 12.7% INDUSTRIAL/AGRICULTURAL PERFUMES, COSMETICS 25.4% MACHINERY FOOD, BEVERAGES 14.8 % 15.8%

Leading export industry by region BEVERAGES CHEMICALS 19.8% 13.6% INDUSTRIAL/AGRICULTURAL Secondary export industry by region MACHINERY

AEROSPACE 13.2% 9.3% 10.8% BASIC METALS, METAL PRODUCTS AGRICULTURAL PRODUCTS

AEROSPACE 4.7% 23.9%

72.6% CHEMICALS

AGRICULTURAL PRODUCTS 25.5%

17.2% BASIC METALS, METAL PRODUCTS

Source: French Customs Authorities, FOB exports excluding military equipment; Business France calculations.

Key: In 2017, pharmaceuticals accounted for 20.9% of exports from the Centre-Val de Loire region, while perfumes/cosmetics accounted for 14.8%.

- 22 - 3 France’s place in the world

24 GLOBAL VALUE CHAINS AND VALUE ADDED 28 FRANCE’S EXPORT PERFORMANCES 32 SECTOR-SPECIFIC SPECIALIZATION 35 FRANCE: A GATEWAY TO EUROPEAN AND AFRICAN MARKETS 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

GLOBAL VALUE CHAINS AND VALUE ADDED Increasingly fragmented production processes have led to greater cross-border trade and investment

Between 1990 and 2016, international trade grew GLOBAL VALUE CHAINS much faster than global output, despite the eruption PROVIDE TRADE OPPORTUNITIES of the 2008 financial crisis and subsequent slowdown. The value of exports grew 357% during this time, FOR SMEs while output rose by only 232%. The expected primary effects of the fragmentation of value This sustained increase in trade can be traced back chains include higher economic growth and productivity: to the globalization of production chains during recent each country can specialize in the production stage in decades. Lower transport costs, advances which it enjoys a comparative advantage, i.e. where it is in telecommunications, and continued reductions most competitive. The positive externalities of globalization in trade and investment barriers have all made it easier also stem from greater international competition and to fragment the production process. access to knowledge and technology, better distribution Today, company operations, from product design and and use of resources arising from increased specialization, component manufacture to assembly and marketing, and economies of scale. have spread across the world, creating global value chains (GVCs). Participation in GVCs leads to improved productivity for businesses. In the first instance, this involves GVCs provide a new model of how countries and optimizing their production processes by importing companies participate in globalization, encompassing higher quality or less costly intermediate goods. trade in intermediate goods, along with the capital Numerous empirical studies have also shown that flows, expertise and services required to coordinate companies that decide to export experience higher dispersed manufacturing facilities. productivity growth than those that do not.

- 25 - 3 . FRANCE’S PLACE IN THE WORLD

Fig. 12 GROWTH IN GLOBAL TRADE FLOWS (1990-2016) in GVCs. For example, foreign-owned SMEs in France accounted for only 7% of SME exporters in 2017, 1, 000 Base 100 = 1990 but generated 26% of all exports by companies their 900 size. Estimates indicate that foreign-owned SMEs 800 have more links to GVCs than domestic SMEs. 700 They import more inputs for use in production, which 600 in turn means greater upstream participation in GVCs.

500 In the automotive industry, for example, direct and indirect exports account for more than 40% of all sales 400 by foreign-owned SMEs, compared with around 10% 300 for domestic SMEs. 200

100

0 FRANCE JUST AS INVOLVED 1990 1995 2000 2005 2010 2016 IN GLOBAL VALUE CHAINS Exports GDP Investments AS ITS EUROPEAN COMPETITORS Source: IMF; Business France calculations % 40 We can measure the involvement of different countries 35 within global value chains by analyzing trade in terms 30 These findings suggest that businesses may get to see of value added, which entails subtracting import content 25 production gains via the learning-by-exporting method. from the gross value of exported goods. Through 20 A 2015 study carried out by Baldwin and Yan found this approach, we can determine a country’s actual 15 that Canadian manufacturers joining GVCs enjoyed 1contribution, 000 to trade, excluding support provided by 10 otherBase 100 countries = 1990 forming part of the production chains. productivity growth in their first year that was 5% 900 higher5 than companies not participating in any global 0 800 valueBelgium chain, Netherlandswith continuedSpain productivityFrance Italy improvementsGermany United Kingdom The OECD/WTO ‘Trade in Value Added’ initiative provides over subsequent years. The survey also revealed that indicators700 to estimate the import content of a country’s companies that ceased to play a role in GVCs saw exports600 and determine the extent of its GVC involvement. their productivity decrease. 500 The400 share of foreign value-added content in gross French The fragmentation of the production process and goods and services exports rose from 17% in 1995 to 26% 300 the rise of new information and telecommunications in 2014. This trend was seen in all European countries, technology have created new opportunities for highlighting200 the increasingly dominant role of global value relatively modest companies by providing various chains100 in international trade. entry points to global markets through the supply 0 1990 1995 2000 2005 2010 2016 of componentsOther transport or equipmentservices. With the emergence47.2 of global value chains, SMEs can reap the benefits of their Motor vehicles, trailers/semi-trailers 39.7 Fig. 13 FOREIGN VALUE-ADDED SHARE responsiveness Textiles,and clothing, flexibility by specializing in making OF GROSS EXPORTS leather goods and footwear 33.3 % specific intermediate goods for the international market. 40 Chemicals 33.1 In addition, they can play an important role in local value 35 Base metals 31.6 chains by supplying intermediate goods to exporters, 30 thus indirectly contributingElectronic equipment to larger companies’31.2 exports. 25 Rubber and plastic products 31 20 1 A recent study by Computer,Rafael Cezar found a positive 15 correlationelectronic between and optical products involvement in GVCs30.1 and exports Machinery and equipment, 10 across all Frenchnot elsewhere sectors, classified with average29.8 exports per 5 company in theFabricated sector metal products most involved27.7 in GVCs being 0 Belgium Netherlands Spain France Italy Germany United Kingdom 5.9 timesOther higher non-metallic mineralthan products those in the 24.3least involved sector.

Food, beverages and tobacco 23.6 2014 1995 Foreign direct investment plays an important role in Wood and cork products 23.4 Source: OECD (data for 1995 are from the Trade in Value-Added (TiVA) the extent to which companies of any size participate% database; data for 2014 are TiVA nowcast estimates) 0 10 20 30 40 50

1 R.% Cezar, Exporting Firms in France: a comparison with the European Union, Banque de France, no. 212, July - August 2017, pages 29-38. 9

8.4 8

Germany 7 Other transport equipment 47.2 - 26 - Motor vehicles, trailers/semi-trailers 39.7 6 Textiles, clothing, leather goods and footwear 33.3 5 Chemicals 33.1

Base metals 31.6 4 Electronic equipment 31.2 France 3.2 3.6 3 Netherlands 2.6 Rubber and plastic products 31 Belgium 2.9 Computer, electronic and optical products 30.1 2.5 Italy 2 United Kingdom Machinery and equipment, not elsewhere classified 29.8 1.8 Spain Fabricated metal products 27.7 1 Other non-metallic mineral products 24.3

0 Food, beverages and tobacco 23.6 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 Wood and cork products 23.4 % 0 10 20 30 40 50 % 9

8.4 8 % 20 Germany 7

18 6

16 5

14 4

12 France 3.2 3.6 3 Netherlands 2.6 Belgium 2.9 10 Italy 2 2.5 United Kingdom 1.8 8 Spain 1

6 0 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 4.1 4 3.6 4.0 3.2

2 1.6 1.3

0 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa % 20

Saudi Arabia 4.0 Brazil 3.5 16 Spain 12.5 Hong Kong 1.0 14 India 1.4 Italy 8.7 Morocco 13.1 12 Mexico 1.1 Poland 4.3 10 Portugal 7.6 Czech Republic 3.3 8 Russia 3.1 Singapore 2.5 Switzerland 6.6 6 Turkey 4.4 Germany 4.1 7.7 4 3.6 4.0 Austria 2.7 3.2 Belgium 9.6 United Arab Emirates 1.9 2 1.6 1.3 United States 1.7 Japan 1.2 0 Romania 5.6 World Europe North America Middle East Sub-Saharan Emerging Asia Algeria 11.7 and North Africa Africa China 1.3 South Korea 1.1 Hungary 3.7 Netherlands 3.5 United Kingdom 5.4 Saudi Arabia 4.0 Sweden 4.3 Brazil 3.5 Tunisia 19.6 % Spain 12.5 0 5 10 15 20 Hong Kong 1.0 India 1.4 Italy 8.7 Morocco 13.1 Mexico 1.1 Base 100 = 2010 112 Poland 4.3 Portugal 7.6 Czech Republic 3.3 110 Russia 3.1 Singapore 2.5 Switzerland 6.6 108 Turkey 4.4 Germany 7.7 Austria 2.7 106 Belgium 9.6 United Arab Emirates 1.9 United States 104 1.7 Japan 1.2 Romania 5.6 102 Algeria 11.7 China 1.3 South Korea 1.1 100 Hungary 3.7 Netherlands 3.5 United Kingdom 5.4 98 Sweden 4.3 Tunisia 19.6 % 0 5 10 15 20 96 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28

130 Base 100 = 2010 Base 100 = 2010 125 112

120 110 115

110 108

105 106

100 104 95

90 102

85 100 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 98 Aerospace industry 16 96 Beverages, spirits and vinegar 15.8 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28

Essential oils, perfumes, cosmetics 13.5 130 Base 100 = 2010 Dairy products, eggs, honey 9.8 125 Leather goods, handbags 9.3 120 Cereals 6.6 France in the world’s top five exporters 115 Miscellaneous chemical products 6.4 110 Pharmaceutical products 6

Paper, paperboard 4 105

Iron and steel 3.9 100

Rubber 3.8 95 Plastics 3.7 90 Vehicles, bicycles, and parts 3.4 85 Boilers, machinery, parts 3.1 80 Organic chemicals 3 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Optical, photo, 2.9 medical/surgical instruments Aerospace industry 16 Articles of iron or steel 2.8 Beverages, spirits and vinegar 15.8 Apparel articles, accessories 2.7 Essential oils, perfumes, cosmetics 13.5 Electric machinery, 1.8 TV/audio equipment Dairy products, eggs, honey 9.8 Natural pearls, precious stones/metals 1.2 Leather goods, handbags 9.3 3.2%: France’s overall global export market share Mineral fuel, 0.9 oil, wax, bitumen % 0 2 4 6 8 10 12 14 16 Cereals 6.6 France in the world’s top five exporters

Miscellaneous chemical products 6.4

Pharmaceutical products 6

Paper, paperboard 4 Aerospace industry Iron and steel 3.9

Beverages, spirits and vinegar Rubber 3.8

Plastics 3.7 Essential oils, perfumes, cosmetics Vehicles, bicycles, and parts 3.4 Dairy products, eggs, honey Boilers, machinery, parts 3.1

Leather goods, handbags Organic chemicals 3

Optical, photo, 2.9 medical/surgical instruments Cereals Articles of iron or steel 2.8

Miscellaneous chemical products Apparel articles, accessories 2.7 Electric machinery, Pharmaceutical products TV/audio equipment 1.8 Natural pearls, precious stones/metals 1.2 Paper, paperboard 3.2%: France’s overall global export market share Mineral fuel, 0.9 oil, wax, bitumen % 0 2 4 6 8 10 12 14 16 Iron and steel

Rubber

Plastics Aerospace industry

Vehicles, bicycles, and parts Beverages, spirits and vinegar

Boilers, machinery, parts Essential oils, perfumes, cosmetics

Organic chemicals Dairy products, eggs, honey

0 1 2 3 4 5 6 Leather goods, handbags

Cereals

Aerospace 17.4 Miscellaneous chemical products Beverages 12.3 Perfumes, cosmetics, 10.6 cleaning products Pharmaceutical products Pharmaceuticals 3.3

Chemicals (except basic chemicals) 2.8 Paper, paperboard 2.7 Dairy products Iron and steel Electronic components and boards 2.2 1.3 Measuring, testing, navigation Rubber instruments; watches/clocks 1.1 Animal food Plastics Manufacture of ships/boats 1.1 € billion -2 0 2 6 10 14 18 200 Vehicles, bicycles, and parts

Index France = 100 Boilers, machinery, parts 180 183

Organic chemicals

160 166 0 1 2 3 4 5 6

140

Aerospace 17.4 120 Beverages 12.3 Perfumes, cosmetics, 10.6 cleaning products 100 100 Pharmaceuticals 3.3 96 92 Chemicals (except basic chemicals) 2.8 80 2.7 77 Dairy products 72 Electronic components and boards 2.2 60 Measuring, testing, navigation 1.3 56 instruments; watches/clocks 1.1 49 48 Animal food 40 44 43 Manufacture of ships/boats 1.1 € billion -2 0 2 6 10 14 18 20 200

1 Index France = 100 0 180 183 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland Kingdom 90 % 160 166

140 80

5 120 3 9 2 70 5 8 100 5 5 100 96 2 10 92 3 1 2 8 3 3 80 6 12 60 2 4 1 77 72 2 2 11 5 6 16 60 6 4 56 12 4 26 49 48 50 6 15 3 6 1 40 8 44 43

4 12 7 5 9 7 12 20 40 1 6 4 0 9 9 4 18 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland 9 Kingdom 20 27 10 9 90 % 30 6 13 6 7 6 6 9 80 20 9 6 8 7 6 6 5 31 3 9 2 70 5 8 10 17 16 21 17 16 17 18 19 8 5 5 2 10 3 1 2 3 8 3 8 6 12 60 2 4 1 0 2 2 11 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden 6 16 Kingdom 5 6 4 12 4 26 100 % 50 6 15 3 6 1 5 8 90 4 12 7 5 9 80 7 12 37 47 40 70 70 6 4 60 9 9 9 4 18 50 20 27 10 9 30 6 40 13 6 7 30 58 6 53 7 6 20 9 9 20 6 8 6 7 10 23 6 31 0 Large corporates Mid-size companies SMEs and micro-enterprises 8 10 17 16 21 17 16 17 18 19

100 %

90 8 26 80 34 0 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden 70 54 Kingdom

60 26 100 % 5 50 90

40 80 37 47 30 70 66 48 70 46 20 60

10 50

0 40 Large corporates Mid-size companies SMEs and micro-enterprises 30 58 53 7 20

10 23

0 Large corporates Mid-size companies SMEs and micro-enterprises

100 %

90 26 80 34

70 54

60 26 50

30 66 48 46 20

0 Large corporates Mid-size companies SMEs and micro-enterprises 1, 000 Base 100 = 1990 900

800

700

600

500

400

300

200

100

0 1990 1995 2000 2005 2010 2016

% 40 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES 35 30 25 20 15 10 5 0 Belgium Netherlands Spain France Italy Germany United Kingdom

FOREIGN VALUE ADDED Fig. 14 BREAKDOWN BY SECTOR OF FOREIGN CONTENT IN GROSS FRENCH EXPORTS (2014) IN FRENCH EXPORTS

As might be expected, the share of foreign value-added Other transport equipment 47.2 content in French manufacturing exports (35.3%) is higher Motor vehicles, trailers/semi-trailers 39.7 than in the services sector (11.2%), although significant Textiles, clothing, leather goods and footwear 33.3 variations can be seen between different industries. In Chemicals 33.1 2014, according to OECD estimates, foreign value added was particularly high in a number of French sectors. These Base metals 31.6 included other transport equipment (47%), comprising Electronic equipment 31.2 among others the rail and aerospace industries; motor Rubber and plastic products 31 vehicles and trailers (40%); and textiles and clothing (33%). Computer, electronic and optical products 30.1 Machinery and equipment, Importantly, the sector in which France enjoys its highest not elsewhere classified 29.8 global market share, the aerospace industry, was also Fabricated metal products 27.7 the one whose output contained the most foreign value Other non-metallic mineral products 24.3 added, showing that greater international participation can Food, beverages and tobacco 23.6 be a key advantage for firms in the French exports market. Wood and cork products 23.4 % Analysis of value-added trade also sheds new light on the 0 10 20 30 40 50 geographical breakdown of French exports, as the value- % 9 added data shows that France is less dependent on the Source: OECD estimates European export market than data for gross exports would 8.4 8 suggest. Euro zone countries make up 51% of France’s gross exports, but only 43% of its value-added exports.2 Germany 7

Furthermore, the shares of French exports sold to North 6 America and Asia both increase if we measure them in DIFFERENT TRADING value-added terms. While Germany, France’s largest trading 5 PATTERNS WITH DIFFERENT partner, received 14% of gross French exports in 2011 and PARTNERS the United States 8%, these shares change to 12% and 10%, 4 respectively, when measured in value added. This can be France 3.2 3.6 4 put down to France’s greater participation in regional value 3A recent report by the French Customs AuthoritiesNetherlands 2.6 chains and the accordingly higher foreign content of French highlightedBelgium that France conducts nearly2.9 half of all Italy exports to Europe. 2trade with adjacent2.5 countries, and that the automotiveUnited Kingdom industry and intermediate1.8 goods both play an important Spain Bilateral trade balances calculated from value-added data 1role in cross-border trade. The report revealed that also differ from those obtained by conventional analysis. French exports to bordering countries comprised a When measured in this way, France’s goods and services 0larger share of intermediate goods (14.7%, versus 10.7% trade deficits with China and Germany are 25% and 20% to2012 non-bordering 2016 2012 2016 2012 countries), 2016 2012 automotive 2016 2012 2016 industry2012 2016 2012sales 2016 lower, respectively, with imports from Germany down by (12.5%, versus 6.8%), and food/beverages. Conversely, as much as one third.3 The explanation for these disparities aviation (9.2%, versus 16.5% to non-bordering countries), lies in the use of intermediate goods produced by other machinery, IT products, and pharmaceuticals accounted foreign countries in the manufacture of goods subsequently for a higher proportion of French exports to more exported from both countries. distant countries.

% 2 R. Cezar, France’s trade integration measured in value added, Banque de France,20 no. 205, May-June 2016, pages 25-34. 3 F. Berthaud, French trade in value added, Treasury Directorate General, Trésor-Economics no. 207, October 2017. 4 Études et Éclairages, No. 71, January 2017. 18

- 27 -14

4.1 4 3.6 4.0 3.2

2 1.6 1.3

0 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa

Saudi Arabia 4.0 Brazil 3.5 Spain 12.5 Hong Kong 1.0 India 1.4 Italy 8.7 Morocco 13.1 Mexico 1.1 Poland 4.3 Portugal 7.6 Czech Republic 3.3 Russia 3.1 Singapore 2.5 Switzerland 6.6 Turkey 4.4 Germany 7.7 Austria 2.7 Belgium 9.6 United Arab Emirates 1.9 United States 1.7 Japan 1.2 Romania 5.6 Algeria 11.7 China 1.3 South Korea 1.1 Hungary 3.7 Netherlands 3.5 United Kingdom 5.4 Sweden 4.3 Tunisia 19.6 % 0 5 10 15 20

Base 100 = 2010 112

110

108

106

104

102

100

96 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28

130 Base 100 = 2010 125

120

115

110

105

100

80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Aerospace industry 16

Beverages, spirits and vinegar 15.8

Essential oils, perfumes, cosmetics 13.5

Dairy products, eggs, honey 9.8

Leather goods, handbags 9.3

Cereals 6.6 France in the world’s top five exporters

Miscellaneous chemical products 6.4

Pharmaceutical products 6

Paper, paperboard 4

Iron and steel 3.9

Rubber 3.8

Plastics 3.7

Vehicles, bicycles, and parts 3.4

Boilers, machinery, parts 3.1

Organic chemicals 3

Optical, photo, 2.9 medical/surgical instruments Articles of iron or steel 2.8

Apparel articles, accessories 2.7 Electric machinery, TV/audio equipment 1.8 Natural pearls, precious stones/metals 1.2 3.2%: France’s overall global export market share Mineral fuel, 0.9 oil, wax, bitumen % 0 2 4 6 8 10 12 14 16

Aerospace industry

Beverages, spirits and vinegar

Essential oils, perfumes, cosmetics

Dairy products, eggs, honey

Leather goods, handbags

Cereals

Miscellaneous chemical products

Pharmaceutical products

Paper, paperboard

Iron and steel

Rubber

Plastics

Vehicles, bicycles, and parts

Boilers, machinery, parts

Organic chemicals

0 1 2 3 4 5 6

Aerospace 17.4 Beverages 12.3 Perfumes, cosmetics, 10.6 cleaning products Pharmaceuticals 3.3

Index France = 100 180 183

160 166

140

120

100 100 96 92 80 77 72 60 56 49 48 40 44 43

20 1

0 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland Kingdom 90 %

5 3 9 2 70 5 8 5 5 2 10 3 1 2 3 8 3 6 12 60 2 4 1 2 2 11 5 6 16 6 4 12 4 26 50 6 15 3 6 1 8

4 12 7 5 9 7 12 40 6 4 9 9 9 4 18 20 27 10 9 30 6 13 6 7 6 6 9 20 9 6 8 7 6 6 31

8 10 17 16 21 17 16 17 18 19

0 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Kingdom

100 % 5 90

80 37 47 70 70 60

30 58 53 7 20

10 23

0 Large corporates Mid-size companies SMEs and micro-enterprises

100 %

90 26 80 34

70 54

60 26 50

30 66 48 46 20

0 Large corporates Mid-size companies SMEs and micro-enterprises 3 . FRANCE’S PLACE IN THE WORLD

This situation arises in part from the structure of global production: the aviation industry remains concentrated in developed countries, which have higher levels of METHODOLOGY technological expertise. For example, 17% of aerospace exports go to Asia and the Middle East, compared with MEASURING TRADE IN VALUE ADDED only 9% to neighboring countries, most of which only arises from Germany’s role in the Airbus international The trade figures presented in this chapter are production chain. However, in the automotive industry, obtained from data for gross exports. Calculating waves of outsourcing have shifted parts of the production trade in this way does not consider the international process to leading emerging markets, with the result that vehicles produced in France are exported primarily to its fragmentation of production processes, presenting neighbors. only the gross value of transactions between partner countries without enabling us to determine how The predominance of intra-industry trade among much of the value of the traded good comes from adjacent nations offers another partial explanation for the exporting country. the importance of intermediate goods in French trade with bordering countries. Intra-industry trade comprises However, consumer goods exported from Germany either trade in products within the same industry, or France will contain a proportion of value added but involves different stages of production (vertical imported from other countries, generated by the integration) or trade in end products within the same production of intermediate goods used to make the industry (horizontal integration). exported good. For a more balanced view of the trade The report found a greater propensity towards intra- sector, we should think in terms of value added. industry trade with bordering countries (87%) than with non-bordering countries (71%), except in the case of the The Trade in Value Added (TiVA) database is a joint automotive industry, where outsourcing to Eastern Europe OECD-WTO initiative, with the aim of providing better and Northern Africa has encouraged intra-sector trade tracking of global production networks and supply with these countries. chains. The database contains a range of indicators measuring the value-added content of cross-border The similarities in commodity composition in France’s trade flows and final demand that are derived from trade (imports and exports) with adjacent countries, particularly Germany, Spain and the United Kingdom, the 2016 version of the OECD’s Inter-Country Input- reflect the importance of intra-industry trade. For other Output (ICIO) Database. highly developed countries, the estimates point to horizontal trade, i.e. in identical products. This is especially The ICIO is constructed from various national and true in the pharmaceutical sector for Germany, Spain, Italy international data sources, all compiled and weighted, and Belgium. France’s reputation for producing luxury subject to their limitations, based on official (2008 items can be seen to have an impact on the trade in leather SNA) National Accounts by economic activity and goods with Italy and jewelry with Switzerland, while main National Accounts aggregates. trade in motor vehicles between France and the United Kingdom is another illustration of horizontal integration. However, the data produced are predicated on a wide range of assumptions, and so any conclusions that may be drawn should be treated with caution.

- 28 - 1, 000 Base 100 = 1990 900

800

700

600

500

400

300

200

100

0 1990 1995 2000 2005 2010 2016 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

% 40 35 30 25 20 15 10 5 0 Belgium Netherlands Spain France Italy Germany United Kingdom

FRANCE’S EXPORT PERFORMANCES

Other transport equipment 47.2 Motor vehicles, trailers/semi-trailers 39.7 Textiles, clothing, Despite slowing worldleather goods and footwear trade,33.3 Chemicals 33.1

Base metals 31.6 France has retained its globalElectronic equipment export31.2 Rubber and plastic products 31 Computer, market share sinceelectronic and optical 2012 products 30.1 Machinery and equipment, not elsewhere classified 29.8 Fabricated metal products 27.7

Other non-metallic mineral products 24.3

Food, beverages and tobacco 23.6

Wood and cork products 23.4 Globalization has entailed the rapid integration Fig. 15 TRENDS IN GLOBAL EXPORT MARKET SHARE % of modern emerging economies into world markets, FOR LEADING EUROPEAN0 10 EXPORTERS20 30 (2012-2016)40 50 resulting in lower global market shares from % 9 the beginning of the 1990s onwards for developed countries. The revenue share in global exports of goods 8.4 8 exported by European Union countries fell from 42% Germany in 1994 to 34% in 2016, while China advanced from 7 3% to 14%.

6 In this context, France’s share of global trade crept down until 2012 before levelling out just above 3%. 5 France had a 3.2% global market share of goods exports in 2016. This stabilization can also be seen 4 in the export volume data, confirming that this is France 3.2 3.6 the result of a definite improvement over recent years 3 Netherlands 2.6 in France’s competitiveness, rather than simply more Belgium 2.9 Italy favorable exchange rates. 2 2.5 United Kingdom 1.8 Spain A similar pattern can be discerned for all of France’s 1 European neighbors except Germany, whose global market share started to recover in 2013 but 0 remains some way below its pre-crisis level. By way 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 of comparison, Germany and the United Kingdom Source: IMF, DOTS database; Business France calculations accounted for 8.4% and 2.6%, respectively, of global Key: French exports accounted for 3.2% of global goods exports in 2016, the goods exports in 2016. Netherlands 3.6%, and Germany 8.4%.

% 20

18 - 29 - 16

4.1 4 3.6 4.0 3.2

2 1.6 1.3

0 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa

Base 100 = 2010 112

110

108

106

104

102

100

96 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28

130 Base 100 = 2010 125

120

115

110

105

100

80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Aerospace industry 16

Beverages, spirits and vinegar 15.8

Essential oils, perfumes, cosmetics 13.5

Dairy products, eggs, honey 9.8

Leather goods, handbags 9.3

Cereals 6.6 France in the world’s top five exporters

Miscellaneous chemical products 6.4

Pharmaceutical products 6

Paper, paperboard 4

Iron and steel 3.9

Rubber 3.8

Plastics 3.7

Vehicles, bicycles, and parts 3.4

Boilers, machinery, parts 3.1

Organic chemicals 3

Optical, photo, 2.9 medical/surgical instruments Articles of iron or steel 2.8

Aerospace industry

Beverages, spirits and vinegar

Essential oils, perfumes, cosmetics

Dairy products, eggs, honey

Leather goods, handbags

Cereals

Miscellaneous chemical products

Pharmaceutical products

Paper, paperboard

Iron and steel

Rubber

Plastics

Vehicles, bicycles, and parts

Boilers, machinery, parts

Organic chemicals

0 1 2 3 4 5 6

Aerospace 17.4 Beverages 12.3 Perfumes, cosmetics, 10.6 cleaning products Pharmaceuticals 3.3

Index France = 100 180 183

160 166

140

120

100 100 96 92 80 77 72 60 56 49 48 40 44 43

20 1

0 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland Kingdom 90 %

5 3 9 2 70 5 8 5 5 2 10 3 1 2 3 8 3 6 12 60 2 4 1 2 2 11 5 6 16 6 4 12 4 26 50 6 15 3 6 1 8

4 12 7 5 9 7 12 40 6 4 9 9 9 4 18 20 27 10 9 30 6 13 6 7 6 6 9 20 9 6 8 7 6 6 31

8 10 17 16 21 17 16 17 18 19

0 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Kingdom

100 % 5 90

80 37 47 70 70 60

30 58 53 7 20

10 23

0 Large corporates Mid-size companies SMEs and micro-enterprises

100 %

90 26 80 34

70 54

60 26 50

30 66 48 46 20

0 Large corporates Mid-size companies SMEs and micro-enterprises 1, 000 Base 100 = 1990 900

800

700

600

500

400

300

200

100

0 1990 1995 2000 2005 2010 2016

% 40 35 30 25 20 15 10 5 0 Belgium Netherlands Spain France Italy Germany United Kingdom

1, 000 Base 100 = 1990 900

800

700

600 Other transport equipment 47.2 500 Motor vehicles, trailers/semi-trailers 39.7 400 Textiles, clothing, leather goods and footwear 33.3 300 Chemicals 33.1 200 Base metals 31.6 100 Electronic equipment 31.2 0 Rubber and plastic products 31 1990 1995 2000 2005 2010 2016 Computer, electronic and optical products 30.1 Machinery and equipment, not elsewhere classified 29.8 % 40 Fabricated metal products 27.7 35 Other non-metallic mineral products 24.3

30 Food, beverages and tobacco 23.6 25 Wood and cork products 23.4 20 % 0 10 20 30 40 50 15 % 10 9 5 8.4 0 8 Belgium Netherlands Spain France Italy Germany United Kingdom Germany 7

France 3.2 3.6 3 Netherlands 2.6 Other transport equipment 47.2 Belgium 2.9 Italy Motor vehicles, trailers/semi-trailers 39.7 2 2.5 United Kingdom Textiles, clothing, leather goods and footwear 33.3 1.8 Spain 1 Chemicals 33.1

Base metals 31.6 0 Electronic equipment 31.2 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016

Rubber and plastic products 31 Computer, 3 . FRANCE’S PLACE IN THE WORLD electronic and optical products 30.1 Machinery and equipment, not elsewhere classified 29.8 Fabricated metal products 27.7

Other non-metallic mineral products 24.3 % 20 Food, beverages and tobacco 23.6

Wood and cork products 23.4 % 18 0 10 20 30 40 50 % 16 9

8.4 14 France’s8 export performances also vary significantly France’s market share relative to its European competitors

in differentGermany markets. In 2016, France had 3.6% of is12 at its highest in Africa, where it is the leading European the7 global market in Europe, 1.6% in North America, supplier, even though French exports to the continent have and 1.3% in Asia’s emerging markets. A breakdown fallen10 7% since 2010 and French market share has declined by6 export market confirms that French goods enjoy from 8% to 6.3%. larger market share in bordering countries than in 8 more5 distant Asian and American markets. As such, This performance can be explained primarily by the France’s market share in 2016 with its border partners historic6 trade relationship between France and northern was4 12.5% in Spain, 9.6% in Belgium, 8.7% in Italy, 7.7% Africa. France’s market share in 2016 was particularly high 3.6 4.1 4.0 in Germany, and 6.6% in Switzerland.France 3.2 3.6 in4 Algeria (11.7%), Morocco (13.1%), and Tunisia (19.6%), 3 Netherlands 2.6 3.2 Belgium 2.9 whereas in Sub-Saharan Africa, it was only 4%. These figures reflect the importanceItaly of cross-border 2 1.6 2 2.5 United Kingdom 1.3 trade in intermediate goods between neighboring 1.8 countries – a growingSpain trend driven by increasingly 0 1 World Europe North America Middle East Sub-Saharan Emerging Asia fragmented production chains – as well as the fact and North Africa Africa

that0 it remains less costly to trade with neighbors, especially2012 2016 2012 within 2016 2012a free 2016 trade2012 area,2016 2012 despite 2016 2012 falling 2016 2012 2016 Fig. 17 FRANCE’S MARKET SHARE IN ITS LARGEST GOODS international transport costs. EXPORT MARKETS (2016) Saudi Arabia 4.0 Brazil 3.5 Spain 12.5 Hong Kong 1.0 Fig. 16 GOODS EXPORT MARKET SHARES BY WORLD India 1.4 % REGION FOR LEADING EUROPEAN EXPORTERS (2016) Italy 8.7 20 Morocco 13.1 Mexico 1.1 Poland 18 4.3 Portugal 7.6 Czech Republic 3.3 16 Russia 3.1 Singapore 2.5 14 Switzerland 6.6 Turkey 4.4 Germany 7.7 12 Austria 2.7 Belgium 9.6 10 United Arab Emirates 1.9 United States 1.7 Japan 1.2 8 Romania 5.6 Algeria 11.7 6 China 1.3 South Korea 1.1 4.1 Hungary 3.7 4 3.6 4.0 3.2 Netherlands 3.5 United Kingdom 5.4 1.6 2 Sweden 4.3 1.3 Tunisia 19.6 % 0 0 5 10 15 20 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa Rising Stable Failing

Germany Netherlands France Italy Source: IMF, DOTS database; Business France calculations United Kingdom Belgium Spain Base 100 = 2010 Key:112 Percentages indicate France’s market share in its 30 largest export markets. Source: IMF, DOTS database; Business France calculations Countries where France’s market share has grown (+0.1 percentage points or more Saudi Arabia 4.0 from 2015 to 2016) are in red; countries where market share has fallen are in dark Key: France accounted for 4% of global exports to Sub-Saharan Africa, Germany blue. Countries where market share has changed less than 0.1 percentage points are Brazil 3.5 4.7%, and the United Kingdom 2.4%. considered110 “stable”, and are in light blue. Spain 12.5 Hong Kong 1.0 India 1.4 108 Italy 8.7 Morocco 13.1 106 Mexico 1.1 Poland 4.3 Portugal 7.6 104 Czech Republic 3.3 - 30 - Russia 3.1 Singapore 2.5 102 Switzerland 6.6 Turkey 4.4 Germany 7.7 100 Austria 2.7 Belgium 9.6 United Arab Emirates 1.9 98 United States 1.7 Japan 1.2 96 Romania 5.6 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28 Algeria 11.7 China 1.3 130 South Korea 1.1 Base 100 = 2010 Hungary 3.7 125 Netherlands 3.5 United Kingdom 5.4 120 Sweden 4.3 Tunisia 19.6 % 115 0 5 10 15 20 110

105

Base 100 = 2010 112 100

95 110 90

108 85

106 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

104 Aerospace industry 16

Beverages, spirits and vinegar 15.8 102 Essential oils, perfumes, cosmetics 13.5

Dairy products, eggs, honey 9.8 100 Leather goods, handbags 9.3

98 Cereals 6.6 France in the world’s top five exporters

Miscellaneous chemical products 6.4 96 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28 Pharmaceutical products 6

130 Paper, paperboard 4 Base 100 = 2010

125 Iron and steel 3.9

120 Rubber 3.8

Plastics 3.7 115 Vehicles, bicycles, and parts 3.4 110 Boilers, machinery, parts 3.1 105 Organic chemicals 3 100 Optical, photo, 2.9 medical/surgical instruments 95 Articles of iron or steel 2.8

90 Apparel articles, accessories 2.7 Electric machinery, 85 TV/audio equipment 1.8 Natural pearls, 1.2 80 precious stones/metals 3.2%: France’s overall global export market share 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Mineral fuel, 0.9 oil, wax, bitumen % 0 2 4 6 8 10 12 14 16 Aerospace industry 16

Beverages, spirits and vinegar 15.8

Essential oils, perfumes, cosmetics 13.5

Dairy products, eggs, honey 9.8 Aerospace industry

Leather goods, handbags 9.3 Beverages, spirits and vinegar

Cereals 6.6 France in the world’s top five exporters Essential oils, perfumes, cosmetics Miscellaneous chemical products 6.4

Pharmaceutical products 6 Dairy products, eggs, honey

Paper, paperboard 4 Leather goods, handbags Iron and steel 3.9 Cereals Rubber 3.8

Plastics 3.7 Miscellaneous chemical products

Vehicles, bicycles, and parts 3.4 Pharmaceutical products Boilers, machinery, parts 3.1

Organic chemicals 3 Paper, paperboard

Optical, photo, 2.9 medical/surgical instruments Iron and steel Articles of iron or steel 2.8 Rubber Apparel articles, accessories 2.7 Electric machinery, TV/audio equipment 1.8 Plastics Natural pearls, precious stones/metals 1.2 3.2%: France’s overall global export market share Vehicles, bicycles, and parts Mineral fuel, 0.9 oil, wax, bitumen % 0 2 4 6 8 10 12 14 16 Boilers, machinery, parts

Organic chemicals

0 1 2 3 4 5 6 Aerospace industry

Beverages, spirits and vinegar Aerospace 17.4 Essential oils, perfumes, cosmetics Beverages 12.3 Perfumes, cosmetics, 10.6 Dairy products, eggs, honey cleaning products Pharmaceuticals 3.3

Leather goods, handbags Chemicals (except basic chemicals) 2.8 2.7 Dairy products Cereals Electronic components and boards 2.2 Measuring, testing, navigation 1.3 Miscellaneous chemical products instruments; watches/clocks 1.1 Animal food Pharmaceutical products Manufacture of ships/boats 1.1 € billion -2 0 2 6 10 14 18 Paper, paperboard 200

Index France = 100 Iron and steel 180 183

Rubber 160 166 Plastics

140 Vehicles, bicycles, and parts

Boilers, machinery, parts 120

Organic chemicals 100 100 96 0 1 2 3 4 5 6 92 80 77 72 Aerospace 17.4 60 Beverages 12.3 56 49 48 Perfumes, cosmetics, 10.6 40 44 cleaning products 43 Pharmaceuticals 3.3

Chemicals (except basic chemicals) 2.8 20 2.7 1 Dairy products Electronic components and boards 2.2 0 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland Measuring, testing, navigation 1.3 Kingdom instruments; watches/clocks 90 % 1.1 Animal food Manufacture of ships/boats 1.1 € billion -2 0 2 6 10 14 18 200 80

Index France = 100 5 180 183 3 9 2 70 5 8 160 166 5 5 2 10 3 1 2 3 8 3 6 12 140 60 2 4 1 2 2 11 5 6 16 120 6 4 12 4 26 50 6 15 3 6 1 8 100 100 96 4 92 12 7 5 9 7 12 80 40 77 6 72 4 9 60 9 9 4 18 20 27 56 10 9 30 6 49 48 40 44 13 43 6 7 6 6 20 9 20 9 6 8 7 1 6 6 0 31 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland Kingdom 8 90 % 10 17 16 21 17 16 17 18 19

80 0 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden 5 Kingdom 3 9 2 100 % 70 5 5 8 5 5 90 2 10 3 1 2 80 8 37 3 3 47 6 12 60 2 70 70 4 1 2 2 11 60 5 6 16 6 4 50 12 4 26 50 6 15 3 6 1 40 8 30 58 4 53 12 7 5 9 7 7 12 20 40 6 10 23 4 9 0 9 9 4 18 Large corporates Mid-size companies SMEs and micro-enterprises 20 27 10 9 30 6 13 100 % 6 7 6 90 6 26 9 80 34 20 9 6 8 7 6 6 70 54 31 60 26 8 10 17 16 21 17 16 17 18 19 50

8 30 66 48 46 0 20 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Kingdom 10

100 % 0 5 Large corporates Mid-size companies SMEs and micro-enterprises 90

80 37 47 70 70 60

30 58 53 7 20

10 23

0 Large corporates Mid-size companies SMEs and micro-enterprises

100 %

90 26 80 34

70 54

60 26 50

30 66 48 46 20

0 Large corporates Mid-size companies SMEs and micro-enterprises 1, 000 Base 100 = 1990 900

800

700

600

500

400

300

200

100

0 1990 1995 2000 2005 2010 2016

% 40 35 30 25 20 15 10 5 0 Belgium Netherlands Spain France Italy Germany United Kingdom

Other transport equipment 47.2 Motor vehicles, trailers/semi-trailers 39.7 Textiles, clothing, leather goods and footwear 33.3 Chemicals 33.1

Base metals 31.6

Electronic equipment 31.2

Rubber and plastic products 31 Computer, electronic and optical products 30.1 Machinery and equipment, not elsewhere classified 29.8 Fabricated metal products 27.7

Other non-metallic mineral products 24.3

Food, beverages and tobacco 23.6

Wood and cork products 23.4 % 0 10 20 30 40 50 % 9

8.4 8

Germany 7

France 3.2 3.6 3 Netherlands 2.6 Belgium 2.9 Italy 2 2.5 United Kingdom 1.8 Spain 1

0 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016

% 20

4.1 4 3.6 4.0 3.2

2 1.6 1.3

0 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa

Base 100 = 2010 112

110

2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES 108

106

104

102

100

96 In 2016, France maintained its position in most of its primary Fig.Germany 18 TRENDSBelgium INSpain COSTFrance COMPETITIVENESSItaly Netherlands United (2004-2016) Kingdom EU-28 export markets, with increases in market share in European 130 countries, including Spain, Italy, Portugal and Poland, as well Base 100 = 2010 as in major developing countries such as Brazil, Mexico 125 and India. 120

France was the world’s fourth largest exporter of services 115 in 2016 after the United States, the United Kingdom and Germany, despite experiencing a difficult year in the 110 tourism industry. Importantly, French exports accounted 105 for nearly 5% of global services exports. 100

A MORE COMPETITIVE FRENCH 95 ECONOMY SINCE 2014 90

85 France’s cost competitiveness vis-à-vis other OECD members has improved considerably since 2014, rising 3.6% 80 from the first quarter of 2014 to the third quarter of 2017, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 France Italy Germany United Kingdom while the euro zone saw a more modest rise (2.8%). Aerospace industry 16 Spain Euro Zone (16 countries) Beverages, spirits and vinegar 15.8 One explanation for this increase is the competitiveness Source: OECD and employment tax credit (CICE), which has enabled Key: IncreasesEssential oils, perfumes, in the cosmetics indices represent declining cost competitiveness. 13.5 businesses to claim social security contribution exemptions Dairy products, eggs, honey 9.8 since its introduction in 2013. This initiative may have slowed the rise of labor costs in France and improved France’s cost Leather goods, handbags 9.3 competitiveness compared with its international rivals. These gains in costCereals competitiveness6.6 haveFrance alsoin the world’s top five exporters As such, between 2012 and 2016, average hourly labor costs enabled French companies to improve their price Miscellaneous chemical products grew less sharply in France (+3.8%) than the euro zone competitiveness. For example, between6.4 2010 and 2016, average (+5.3%). France wasPharmaceutical the products country with the6 least growth in its producer price index (PPI)6 compared with its main Paper, paperboard 4 Unit labor costs, corresponding to wage costs per unit European competitors. The value of this index declined of value added produced, have been rising less quickly by 3.7% in FranceIron and steel between3.9 the third quarter of 2012 in France than in many other European countries, and the third quarterRubber of3.8 2017, including a fall of 4.4% including Germany and the United Kingdom. This is due in the manufacturing sector. to high productivity gains in France between 2012 and Plastics 3.7 2016, particularly in the manufacturing sector, attenuating This trendVehicles, can bicycles, also and parts be seen3.4 in the non-domestic market, still further the modest increase in labor costs: France where France is one of a handful of European countries Boilers, machinery, parts 3.1 experienced higher labor productivity growth5 than its to have experienced the smallest variation in its PPI, neighbors between 2012 and 2016, with value added which has risenOrganic chemicals by only 33.3% in France since 2010, per hour worked increasing by 3.9%, compared with 3.4% compared withOptical, photo, 6% in Germany2.9 and 4.8% throughout in Germany and 3.3% in the euro zone. the Europeanmedical/surgical instruments Union. Articles of iron or steel 2.8

5 Value added per hour worked. Apparel articles, accessories 2.7 6 The producer price indices measure changes in ex-factory product prices. Electric machinery, TV/audio equipment 1.8 Natural pearls, precious stones/metals 1.2 3.2%: France’s overall global export market share Mineral fuel, 0.9 oil, wax, bitumen % 0 2 4 6 8 10 12 14 16

- 31 -

Aerospace industry

Beverages, spirits and vinegar

Essential oils, perfumes, cosmetics

Dairy products, eggs, honey

Leather goods, handbags

Cereals

Miscellaneous chemical products

Pharmaceutical products

Paper, paperboard

Iron and steel

Rubber

Plastics

Vehicles, bicycles, and parts

Boilers, machinery, parts

Organic chemicals

0 1 2 3 4 5 6

Aerospace 17.4 Beverages 12.3 Perfumes, cosmetics, 10.6 cleaning products Pharmaceuticals 3.3

Index France = 100 180 183

160 166

140

120

100 100 96 92 80 77 72 60 56 49 48 40 44 43

20 1

0 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland Kingdom 90 %

5 3 9 2 70 5 8 5 5 2 10 3 1 2 3 8 3 6 12 60 2 4 1 2 2 11 5 6 16 6 4 12 4 26 50 6 15 3 6 1 8

4 12 7 5 9 7 12 40 6 4 9 9 9 4 18 20 27 10 9 30 6 13 6 7 6 6 9 20 9 6 8 7 6 6 31

8 10 17 16 21 17 16 17 18 19

0 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Kingdom

100 % 5 90

80 37 47 70 70 60

30 58 53 7 20

10 23

0 Large corporates Mid-size companies SMEs and micro-enterprises

100 %

90 26 80 34

70 54

60 26 50

30 66 48 46 20

0 Large corporates Mid-size companies SMEs and micro-enterprises 1, 000 Base 100 = 1990 900

800

700

600

500

400

300

200

100

0 1990 1995 2000 2005 2010 2016

% 40 35 30 25 20 15 10 5 0 Belgium Netherlands Spain France Italy Germany United Kingdom

Other transport equipment 47.2 Motor vehicles, trailers/semi-trailers 39.7 Textiles, clothing, leather goods and footwear 33.3 Chemicals 33.1

Base metals 31.6

Electronic equipment 31.2

Rubber and plastic products 31 Computer, electronic and optical products 30.1 Machinery and equipment, not elsewhere classified 29.8 Fabricated metal products 27.7

Other non-metallic mineral products 24.3

Food, beverages and tobacco 23.6

Wood and cork products 23.4 % 0 10 20 30 40 50 % 9

8.4 8

Germany 7

France 3.2 3.6 3 Netherlands 2.6 Belgium 2.9 Italy 2 2.5 United Kingdom 1.8 Spain 1

0 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016

% 20

4.1 4 3.6 4.0 3.2

2 1.6 1.3

0 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa

Saudi Arabia 4.0 Brazil 3.5 Spain 12.5 Hong Kong 1.0 India 1.4 Italy 8.7 Morocco 13.1 Mexico 1.1 Poland 4.3 Portugal 7.6 Czech Republic 3.3 Russia 3.1 Singapore 2.5 Switzerland 6.6 Turkey 4.4 3 . FRANCE’S PLACE IN THE WORLD Germany 7.7 Austria 2.7 Belgium 9.6 United Arab Emirates 1.9 United States 1.7 Japan 1.2 Romania 5.6 Algeria 11.7 China 1.3 South Korea 1.1 Hungary 3.7 Netherlands 3.5 United Kingdom 5.4 Sweden 4.3 Tunisia 19.6 % 0 5 10 15 20

Fig. 19 PRODUCER PRICE INDICES (2017)

Base 100 = 2010 112 METHODOLOGY

110 An economy’s competitiveness is its ability to compete in international markets. Competitiveness is made 108 up of three components: cost competitiveness, price competitiveness and non-price competitiveness. 106 / Cost competitiveness refers to all necessary production costs and measures the relationship 104 between unit labor costs in France (costs of labor adjusted for productivity) and those of its 102 competitors. Costs are measured across the economy for both high- and low-export sectors. 100 / Price competitiveness is defined as a country’s 98 ability to offer goods of similar quality to its competitors at lower prices. France’s export price 96 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28 competitiveness is measured as the ratio between the export price of foreign goods and services and 130 Total PPI Manufacturing PPI Non-domesticBase 100 = 2010 market manufacturing PPI the export price of French goods and services. A 125 country’s price competitiveness will depend on its Source: OECD; Eurostat cost competitiveness, as well as the profit margins 120 of domestic companies and external factors such 115 as the exchange rate. France’s growing cost competitiveness has also helped 110 restore the profit shares of French companies, which / Non-price competitiveness is a country’s ability to deteriorated105 sharply following the global financial crisis. sell its goods even if they are more expensive than The profit share7 for non-financial corporations increased those of its competitors. This competitiveness from100 29.9% in 2013 to 31.9% in 2016. This improvement depends, among other things, on the quality of the

can95 also be seen in the manufacturing industry, which, goods sold, as well as product innovation. with a profit share of 36.9%, is back to what it was in 2003. 90 The increase in profit shares consequently contributed 85 to a rise in investment by French companies. After stalling between80 2011 and 2013, the business investment rate grew rapidly2005 from2006 2014,2007 reaching2008 2009 23.3%2010 in2011 2016,2012 back2013 to2014 what2015 2016 it was in 2008. This investment trend, resulting in more Aerospace industry 16 upmarket French products, may lead in the long run to an improvementBeverages, spirits and in vinegar France’s non-price competitiveness.15.8

Essential oils, perfumes, cosmetics 13.5 7 Gross operating surplus / value added. Dairy products, eggs, honey 9.8

Leather goods, handbags 9.3

Cereals 6.6 France in the world’s top five exporters

Miscellaneous chemical products 6.4

Pharmaceutical products 6

Paper, paperboard 4 - 32 - Iron and steel 3.9

Rubber 3.8

Plastics 3.7

Vehicles, bicycles, and parts 3.4

Boilers, machinery, parts 3.1

Organic chemicals 3

Optical, photo, 2.9 medical/surgical instruments Articles of iron or steel 2.8

Aerospace industry

Beverages, spirits and vinegar

Essential oils, perfumes, cosmetics

Dairy products, eggs, honey

Leather goods, handbags

Cereals

Miscellaneous chemical products

Pharmaceutical products

Paper, paperboard

Iron and steel

Rubber

Plastics

Vehicles, bicycles, and parts

Boilers, machinery, parts

Organic chemicals

0 1 2 3 4 5 6

Aerospace 17.4 Beverages 12.3 Perfumes, cosmetics, 10.6 cleaning products Pharmaceuticals 3.3

Index France = 100 180 183

160 166

140

120

100 100 96 92 80 77 72 60 56 49 48 40 44 43

20 1

0 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland Kingdom 90 %

5 3 9 2 70 5 8 5 5 2 10 3 1 2 3 8 3 6 12 60 2 4 1 2 2 11 5 6 16 6 4 12 4 26 50 6 15 3 6 1 8

4 12 7 5 9 7 12 40 6 4 9 9 9 4 18 20 27 10 9 30 6 13 6 7 6 6 9 20 9 6 8 7 6 6 31

8 10 17 16 21 17 16 17 18 19

0 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Kingdom

100 % 5 90

80 37 47 70 70 60

30 58 53 7 20

10 23

0 Large corporates Mid-size companies SMEs and micro-enterprises

100 %

90 26 80 34

70 54

60 26 50

30 66 48 46 20

0 Large corporates Mid-size companies SMEs and micro-enterprises 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

SECTOR-SPECIFIC SPECIALIZATION France is a global leader in various sectors of excellence

GLOBAL EXPORT French products from the country’s traditional areas of expertise also performed very well. France was the world’s MARKET SHARE leading exporter of beverages, making up 28% of global wine exports. With regard to food other than beverages, French exports accounted for 3.2% of global exports France was the world’s third largest exporter of cereals in 2016, making France the world’s seventh largest and the fourth largest exporter of dairy products. exporter. However, this percentage is markedly higher in sectors where France is very competitive internationally. France also stood out in sectors representing smaller portions of international trade such as watches and clocks, where French expertise in cutting-edge and high-tech sectors France was fourth with 5.2% of global exports, and glassware, is acknowledged internationally. France was the second where it was also fourth, with 4.8% of global exports. largest aerospace exporter in 2016, accounting for 16% of global exports, and the leading exporter of perfumes Despite a declining number of sectors in which France and cosmetics, with a global export share of 13.8%. is among the world’s leading five exporters, France Other sectors standing out internationally included remained a leading exporter in 25 sectors in 2017, the chemical and pharmaceutical industries. compared with 34 in 2002.

- 33 - 1, 000 Base 100 = 1990 900

800

700

600

500

400

300

200

100

0 1990 1995 2000 2005 2010 2016

% 40 35 30 25 20 15 10 5 0 Belgium Netherlands Spain France Italy Germany United Kingdom

Other transport equipment 47.2 Motor vehicles, trailers/semi-trailers 39.7 Textiles, clothing, leather goods and footwear 33.3 Chemicals 33.1

Base metals 31.6

Electronic equipment 31.2

Rubber and plastic products 31 Computer, electronic and optical products 30.1 Machinery and equipment, not elsewhere classified 29.8 Fabricated metal products 27.7

Other non-metallic mineral products 24.3

Food, beverages and tobacco 23.6

Wood and cork products 23.4 % 0 10 20 30 40 50 % 9

8.4 8

Germany 7

France 3.2 3.6 3 Netherlands 2.6 Belgium 2.9 Italy 2 2.5 United Kingdom 1.8 Spain 1

0 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016

% 20

4.1 4 3.6 4.0 3.2

2 1.6 1.3

0 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa

Base 100 = 2010 112

110

108

106

104

102

100

96 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28

130 Base 100 = 2010 125 3 . FRANCE’S PLACE IN THE WORLD

120

115

110

105

100

80 FRENCH GLOBAL EXPORT MARKET SHARE Fig.2005 202006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 BY PRODUCT (2016) SPECIALIZATION INDICES Aerospace industry 16

Beverages, spirits and vinegar 15.8 Revealed comparative advantages (RCAs)8 indicate

Essential oils, perfumes, cosmetics 13.5 the degree of specialization in a country’s exports. Aerospace and beverages account for a proportion Dairy products, eggs, honey 9.8 of French exports that is five times larger than their Leather goods, handbags 9.3 proportion of global exports. Very high values can also be seen in numerous other sectors, including perfumes Cereals 6.6 France in the world’s top five exporters and cosmetics, dairy products and pharmaceuticals, Miscellaneous chemical products 6.4 highlighting just how internationally competitive France

Pharmaceutical products 6 is in these areas.

Paper, paperboard 4 Despite a high degree of specialization in specific Iron and steel 3.9 sectors, France’s exports remain highly diversified, as confirmed by a score close to 0 on the Herfindahl- Rubber 3.8 Hirschman index9 for all French business sectors (HS2) Plastics 3.7 that is broadly in line with those for France’s main

Vehicles, bicycles, and parts 3.4 competitors.

Boilers, machinery, parts 3.1 However, Germany’s index score is somewhat higher, Organic chemicals 3 as its exports are highly concentrated in the automotive industry and the machinery/mechanical equipment Optical, photo, 2.9 medical/surgical instruments sector, which together made up two-thirds of all Articles of iron or steel 2.8 German exports in 2016.

Apparel articles, accessories 2.7 Electric machinery, TV/audio equipment 1.8 GROWING TRADE Natural pearls, precious stones/metals 1.2 SURPLUSES 3.2%: France’s overall global export market share Mineral fuel, 0.9 oil, wax, bitumen % 0 2 4 6 8 10 12 14 16 We can also identify France’s principal export strengths 10 Source: UN Comtrade, HS 02 commodities nomenclature; Business France by analyzing its trade balance by sector. France’s main calculations. Graph of all sectors responsible for more than 1% of French exports trade surplus continues to be in aerospace (€17.4 billion in 2016, together amounting to 80% of all French exports in 2017, despite declining €1 billion from 2016). Key: In 2016, France accounted for 16% of global aerospace exports and 6.6% of global cereals exports. France was among the world’s five leading exporters for Aerospace industry both of these products.

Beverages, spirits and vinegar 8 Revealed comparative advantages are calculated sector by sector and are obtained by determining the ratio between a sector’s proportion of France’sEssential exportsoils, perfumes, andcosmetics the same sector’s proportion of global exports. For example, if a sector’s revealed comparative advantage is 2, it represents a proportion of French exports that is twice that of all exports worldwide. 9 The Herfindahl-HirschmanDairy products, eggs, honey index is a measure of market concentration. It is equal to the sum of the square of each sector’s market share (HS2) of all domestic exports. A value close to 0 indicates that exports are diversified, while a value close to 1 means that exports are concentrated in a limited number of sectors. 10 The tradeLeather balance goods, handbags is calculated by subtracting annual imports from annual exports. A positive balance indicates a trade surplus, while a negative balance indicates a deficit. Cereals

Miscellaneous chemical products

Pharmaceutical products

Paper, paperboard - 34 - Iron and steel

Rubber

Plastics

Vehicles, bicycles, and parts

Boilers, machinery, parts

Organic chemicals

0 1 2 3 4 5 6

Aerospace 17.4 Beverages 12.3 Perfumes, cosmetics, 10.6 cleaning products Pharmaceuticals 3.3

Index France = 100 180 183

160 166

140

120

100 100 96 92 80 77 72 60 56 49 48 40 44 43

20 1

0 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland Kingdom 90 %

5 3 9 2 70 5 8 5 5 2 10 3 1 2 3 8 3 6 12 60 2 4 1 2 2 11 5 6 16 6 4 12 4 26 50 6 15 3 6 1 8

4 12 7 5 9 7 12 40 6 4 9 9 9 4 18 20 27 10 9 30 6 13 6 7 6 6 9 20 9 6 8 7 6 6 31

8 10 17 16 21 17 16 17 18 19

0 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Kingdom

100 % 5 90

80 37 47 70 70 60

30 58 53 7 20

10 23

0 Large corporates Mid-size companies SMEs and micro-enterprises

100 %

90 26 80 34

70 54

60 26 50

30 66 48 46 20

0 Large corporates Mid-size companies SMEs and micro-enterprises 1, 000 Base 100 = 1990 900

800

700

600

500

400

300

200

100

0 1990 1995 2000 2005 2010 2016

% 40 35 30 1, 000 Base 100 = 1990 25 900 20 800 15

700 10 5 600 0 500 Belgium Netherlands Spain France Italy Germany United Kingdom

400

300

200

100

0 1990 1995 2000 2005 2010 2016

% 40 Other transport equipment 47.2 35 Motor vehicles, trailers/semi-trailers 39.7 30 Textiles, clothing, leather goods and footwear 33.3 25 Chemicals 33.1 20 Base metals 31.6 15 Electronic equipment 31.2 10 5 Rubber and plastic products 31 Computer, 0 30.1 Belgium Netherlands Spain France Italy Germany United Kingdom electronic and optical products Machinery and equipment, not elsewhere classified 29.8 Fabricated metal products 27.7

Other non-metallic mineral products 24.3

Food, beverages and tobacco 23.6

Wood and cork products 23.4 % 0 10 20 30 40 50 % 9

8.4 Other transport equipment 47.2 8 Motor vehicles, trailers/semi-trailers 39.7 Textiles, clothing, Germany leather goods and footwear 33.3 7 Chemicals 33.1 6 Base metals 31.6

Electronic equipment 31.2 5 Rubber and plastic products 31 Computer, 4 electronic and optical products 30.1 Machinery and equipment, not elsewhere classified 29.8 France 3.2 3.6 3 Netherlands 2.6 Fabricated metal products 27.7 Belgium 2.9 Italy Other non-metallic mineral products 24.3 2 2.5 United Kingdom

Food, beverages and tobacco 23.6 1.8 Spain 1 Wood and cork products 23.4 % 0 10 20 30 40 50 0 % 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 9

8.4 8

Germany 7

6 % 20

5 18

4 16 France 3.2 3.6 3 Netherlands 2.6 Belgium 2.9 14 Italy 2 2.5 United Kingdom 12 1.8 Spain 1 10

0 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 8

4.1 4 3.6 4.0 3.2

2 1.6 % 1.3 20 0 World Europe North America Middle East Sub-Saharan Emerging Asia 18 and North Africa Africa

14 Saudi Arabia 4.0 Brazil 3.5 12 Spain 12.5 Hong Kong 1.0 India 1.4 10 Italy 8.7 Morocco 13.1 8 Mexico 1.1 Poland 4.3 Portugal 7.6 6 Czech Republic 3.3 Russia 3.1 3.6 4.1 4.0 4 Singapore 2.5 3.2 Switzerland 6.6 2 1.6 Turkey 4.4 1.3 Germany 7.7 Austria 2.7 0 Belgium 9.6 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa United Arab Emirates 1.9 United States 1.7 Japan 1.2 Romania 5.6 Algeria 11.7 China 1.3 Saudi Arabia 4.0 South Korea 1.1 Brazil 3.5 Hungary 3.7 Spain 12.5 Netherlands 3.5 Hong Kong 1.0 United Kingdom 5.4 India 1.4 Sweden 4.3 Italy 8.7 Tunisia 19.6 Morocco 13.1 % 0 5 10 15 20 Mexico 1.1 Poland 4.3 Portugal 7.6 Czech Republic 3.3 Russia 3.1 Base 100 = 2010 Singapore 2.5 112 Switzerland 6.6 Turkey 4.4 110 Germany 7.7 Austria 2.7 Belgium 9.6 108 United Arab Emirates 1.9 United States 1.7 Japan 1.2 106 Romania 5.6 Algeria 11.7 China 1.3 104 South Korea 1.1 Hungary 3.7 Netherlands 3.5 102 United Kingdom 5.4 Sweden 4.3 100 Tunisia 19.6 % 0 5 10 15 20 98

96 Base 100 = 2010 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28 112 130 Base 100 = 2010 110 125

108 120

115 106 110

104 105

100 102

95 100 90

98 85

80 96 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28

Aerospace industry 16 130 Base 100 = 2010 Beverages, spirits and vinegar 15.8 125 Essential oils, perfumes, cosmetics 13.5 120 Dairy products, eggs, honey 9.8 115 Leather goods, handbags 9.3 110 Cereals 6.6 France in the world’s top five exporters

105 Miscellaneous chemical products 6.4

100 Pharmaceutical products 6

95 Paper, paperboard 4

Iron and steel 3.9 90 Rubber 3.8 85 Plastics 3.7 80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Vehicles, bicycles, and parts 3.4 Boilers, machinery, parts 3.1 Aerospace industry 16 Organic chemicals 3 Beverages, spirits and vinegar 15.8 Optical, photo, 2.9 Essential oils, perfumes, cosmetics 13.5 medical/surgical instruments Articles of iron or steel 2.8 Dairy products, eggs, honey 9.8 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES Apparel articles, accessories 2.7 Leather goods, handbags 9.3 Electric machinery, 1.8 Cereals 6.6 France in the world’s top five exporters TV/audio equipment Natural pearls, 1.2 Miscellaneous chemical products 6.4 precious stones/metals 3.2%: France’s overall global export market share Mineral fuel, 0.9 oil, wax, bitumen % Pharmaceutical products 6 0 2 4 6 8 10 12 14 16

Paper, paperboard 4

Iron and steel 3.9

Rubber 3.8 Aerospace industry Plastics 3.7

Vehicles, bicycles, and parts 3.4 Beverages, spirits and vinegar

TheBoilers, trade machinery, surplusparts 3.1for the beverage sector grew 7% year- Essential oils, perfumes, cosmetics on-year to €12.3 billion, while perfumes and cosmetics Organic chemicals 3 METHODOLOGY saw a very steep rise in international sales in 2017, Dairy products, eggs, honey Optical, photo, 2.9 resultingmedical/surgical instruments in a surplus increase of 13% to €10.6 billion. DIFFERENT ‘PRODUCT’ CLASSES Articles of iron or steel 2.8 Leather goods, handbags In most of these sectors, France has had a trade surplus In this report, a number of different product Apparel articles, accessories 2.7 for the last 15 years. The French measuring, testing, classificationCereals systems are presented depending on Electric machinery, navigationTV/audio equipment instruments1.8 and watches/clocks industry, which the data sources used. was runningNatural pearls, a deficit in 2002, now has a healthy trade 1.2 Miscellaneous chemical products surplusprecious stones/metals following sharp export growth in the sector. UN COMTRADE data is based on the internationally 3.2%: France’s overall global export market share Mineral fuel, 0.9 oil, wax, bitumen % used Pharmaceuticalharmonized products system (HS), which categorizes 0 2 4 6 8 10 12 14 16 commodities into 99 two-digit chapters (HS2). The systemPaper, paperboard was developed by the World Customs Fig. 21 FRANCE’S COMPARATIVE ADVANTAGES Organization and is governed by the International BY SECTOR (2016) ConventionIron and steelon the Harmonized Commodity

Aerospace industry Description and Coding System. Rubber French customs data is based on France’s aggregate Beverages, spirits and vinegar nomenclature,Plastics which organizes traded commodities

Essential oils, perfumes, cosmetics into seven levels of aggregation. This report refers primarilyVehicles, bicycles, to andtwo parts of these levels, a38 and a129, which Dairy products, eggs, honey break commodities down into 38 and 129 categories, Boilers, machinery, parts respectively. Leather goods, handbags Organic chemicals

Cereals 0 1 2 3 4 5 6

Miscellaneous chemical products Fig. 22 FRANCE’S LARGEST TRADE SURPLUSES (2017)

Pharmaceutical products Aerospace 17.4 Beverages 12.3 Paper, paperboard Perfumes, cosmetics, 10.6 cleaning products Iron and steel Pharmaceuticals 3.3

Chemicals (except basic chemicals) 2.8 Rubber 2.7 Dairy products Electronic components and boards 2.2 Plastics Measuring, testing, navigation 1.3 instruments; watches/clocks Vehicles, bicycles, and parts 1.1 Animal food Manufacture of ships/boats 1.1 € billion Boilers, machinery, parts -2 0 2 6 10 14 18

200 2017 2002 Organic chemicals Index France = 100 Source: French Customs Authorities, official nomenclature, CIF/FOB balances (€ billion); Business France calculations 0 1 2 3 4 5 6 180 183

Source: UN Comtrade; Business France calculations Key: France ran a trade surplus of €12.3 billion on beverage exports in 2017. 160 166

Aerospace 17.4 Beverages 12.3 140 Perfumes, cosmetics, 10.6 cleaning products Pharmaceuticals 3.3 120

Chemicals (except basic chemicals) 2.8 - 35 - 2.7 100 Dairy products 100 96 Electronic components and boards 2.2 92 Measuring, testing, navigation 1.3 80 instruments; watches/clocks 77 1.1 Animal food 72 Manufacture of ships/boats 1.1 € billion 60 -2 0 2 6 10 14 18 56 200 49 48 40 44 43 Index France = 100 180 183 20 1 160 166 0 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland Kingdom 140 90 %

120 80

100 5 100 96 92 3 9 2 80 70 5 8 77 5 5 72 2 10 60 3 1 2 3 8 3 6 56 12 60 2 49 4 1 48 2 2 11 40 44 43 5 6 16 6 4 12 4 20 26 50 6 15 3 6 1 8 1 4 0 12 7 5 9 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland 7 12 Kingdom 40 90 % 6 4 9 9 9 4 18 20 27 10 9 80 30 6 13 6 7 5 6 3 6 9 9 2 20 9 70 5 6 8 7 8 6 6 5 5 2 10 31 3 1 2 3 8 3 6 12 8 60 2 10 17 16 21 17 16 17 18 19 4 1 2 2 11 5 6 16 6 4 8 12 4 26 0 50 6 15 3 6 1 8 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Kingdom 4 12 7 5 9 7 12 100 % 5 40 6 90 4 9 80 9 9 4 18 37 20 27 47 10 9 70 70 30 6 13 60 6 7 6 50 6 9 9 40 20 6 8 6 7 6 30 58 31 53 7 20 8 10 17 16 21 17 16 17 18 19 10 23

0 Large corporates Mid-size companies SMEs and micro-enterprises 8

0 100 % Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Kingdom 90 26 100 % 80 34 5 90 70 54

80 60 37 26 47 70 70 50 60 40

50 30 66 48 46 40 20

30 58 10 53 7 20 0 Large corporates Mid-size companies SMEs and micro-enterprises 10 23

0 Large corporates Mid-size companies SMEs and micro-enterprises

100 %

90 26 80 34

70 54

60 26 50

30 66 48 46 20

0 Large corporates Mid-size companies SMEs and micro-enterprises 3 . FRANCE’S PLACE IN THE WORLD

FRANCE: A GATEWAY TO EUROPEAN AND AFRICAN MARKETS

While multinationals can have many reasons France’s location is a major factor in its attractiveness for establishing themselves in foreign countries, to foreign investors. Importantly, France shares borders access to new markets remains the primary motivation with the other four largest European markets – for international business expansion. Germany, Spain, Italy and the United Kingdom – and by setting up in France, a company has direct access In France as elsewhere, the foreign operations to more than 315 million consumers. of multinationals focus heavily on manufacturing. When a manufacturer chooses a country in which A recent Kantar Public survey of French and foreign to locate, it expects to serve not only the local market companies established in France underlined but also the surrounding markets, to which it will have the country’s role as an export hub, highlighting easy export access. This strategy explains why, the issue of market access as a crucial factor in a on average, French subsidiaries of foreign companies company’s decision to set up operations abroad. export more than domestic French companies. No fewer than 80% of executives surveyed declared that “better access to the markets” and “market size” FRANCE’S STRATEGIC would influence their choice of destination, while more than three in four stated that France’s location LOCATION MAKES IT is advantageous for exports. Similarly, a clear majority A NATURAL EXPORT HUB (69%) of foreign company directors in France believe that it is easy to export goods from the country. France’s strategic location makes it a natural export hub It is in a foreign company’s interest to set up in The survey results show that foreign business leaders a country where domestic demand is high and where in France see the country as an attractive export hub. it can enjoy easy access to neighboring countries. Eighty-eight percent of them believe that France In terms of proximity to EU-28 markets, France was can be an effective springboard into other European ranked third on this criterion in 2016, ahead of Germany markets, while 93% of them already export goods and the United Kingdom. to these countries.

- 36 - 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

Fig. 23 DO YOU BELIEVE THAT FRANCE CAN BE AN ATTRACTIVE HUB FOR EXPORTS TO... METHODOLOGY

FRENCH % EXPORTERS FOREIGN COMPANIES COMPANIES FRANCE, AS SEEN FROM ABROAD – EXPORT SECTION 90 91 88 Other European OF THE KANTAR PUBLIC/BUSINESS countries FRANCE SURVEY

81 80 83 Business France commissioned Kantar Public to carry Africa out a survey to gain insight into the factors identified by companies as facilitating and hindering exports. 64 66 60 From November 21 to December 6, 2017, the institute Americas surveyed 326 senior executives of firms that export from France, including 126 foreign-owned companies 54 60 44 (foreign companies account for one-third of French Asia exports) and 200 French-owned concerns.

Source: Kantar Public/Business France The study provides an overview of exporting companies established in France: What proportion of their revenues do they make in foreign markets? How important are exports to their strategy? Which The advantage of foreign market access is not confined areas of the world are they targeting? to Europe, given that 83% of the foreign companies surveyed view France as an attractive springboard It also identifies France’s strengths and weaknesses into African markets and 68% already export to at when it comes to exports. least one African nation. Foreign companies that export to Africa do so primarily to Morocco (72%), Tunisia (50%) and Algeria (43%), three countries with which France enjoys strong trade relations. Moreover, 17% of the foreign companies surveyed stated that they are keen to export to another African country in the next three years, thereby burnishing France’s image as an export hub. In part, this can be explained by simplified customs procedures: only two documents are required to export goods from France, compared with four in Germany and the UK. Furthermore, the World Bank states a time FRANCE’S STRONG to export of 10 days for France, which is comparable SHOWING IN INTERNATIONAL to Germany (9 days) and the UK (8 days). RANKINGS In addition, France is regularly commended for the France frequently stands out in international rankings quality of its infrastructure – ranking seventh under on issues related to export performance, for example this component in the WEF’s Global Competitiveness retaining top spot in the World Bank’s Doing Business Report, particularly for the performances of its road 2018 rankings for trading across borders, ahead of and rail networks – while Paris Charles de Gaulle excels Germany (39th) and the United Kingdom (28th). as Europe’s leading cargo airport.

- 37 - 1, 000 Base 100 = 1990 900

800

700

600

500

400

300

200

100

0 1990 1995 2000 2005 2010 2016

% 40 35 30 25 20 15 10 5 0 Belgium Netherlands Spain France Italy Germany United Kingdom

Other transport equipment 47.2 Motor vehicles, trailers/semi-trailers 39.7 Textiles, clothing, leather goods and footwear 33.3 Chemicals 33.1

Base metals 31.6

Electronic equipment 31.2

Rubber and plastic products 31 Computer, electronic and optical products 30.1 Machinery and equipment, not elsewhere classified 29.8 Fabricated metal products 27.7

Other non-metallic mineral products 24.3

Food, beverages and tobacco 23.6

Wood and cork products 23.4 % 0 10 20 30 40 50 % 9

8.4 8

Germany 7

France 3.2 3.6 3 Netherlands 2.6 Belgium 2.9 Italy 2 2.5 United Kingdom 1.8 Spain 1

0 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016

% 20

4.1 4 3.6 4.0 3.2

2 1.6 1.3

0 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa

Base 100 = 2010 112

110

108

106

104

102

100

96 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28

130 Base 100 = 2010 125

120

115

110

105

100

80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Aerospace industry 16

Beverages, spirits and vinegar 15.8

Essential oils, perfumes, cosmetics 13.5

Dairy products, eggs, honey 9.8

Leather goods, handbags 9.3

Cereals 6.6 France in the world’s top five exporters

Miscellaneous chemical products 6.4

Pharmaceutical products 6

Paper, paperboard 4

Iron and steel 3.9

Rubber 3.8

Plastics 3.7

Vehicles, bicycles, and parts 3.4

Boilers, machinery, parts 3.1

Organic chemicals 3

Optical, photo, 2.9 medical/surgical instruments Articles of iron or steel 2.8

Aerospace industry

Beverages, spirits and vinegar

Essential oils, perfumes, cosmetics

Dairy products, eggs, honey

Leather goods, handbags

Cereals

Miscellaneous chemical products

Pharmaceutical products

Paper, paperboard

Iron and steel

Rubber

Plastics

Vehicles, bicycles, and parts

Boilers, machinery, parts

Organic chemicals

0 1 2 3 4 5 6

3 . FRANCE’S PLACE IN THE WORLD

Aerospace 17.4 Beverages 12.3 Perfumes, cosmetics, 10.6 cleaning products Pharmaceuticals 3.3

Chemicals (except basic chemicals) 2.8 2.7 Dairy products Electronic components and boards 2.2 Measuring, testing, navigation 1.3 instruments; watches/clocks 1.1 Animal food Manufacture of ships/boats 1.1 € billion -2 0 2 6 10 14 18 More than 12,000 foreign-owned companies accounted 2Fig.00 24 ACCESS TO EU-28 MARKETS IN COMPARISON WITH FRANCE (2016) for around 10% of France-based exporters in 2016. Index France = 100 180 183 In 2015, exporting foreign subsidiaries in France included 1,328 American companies, 1,242 German

160 166 companies, 606 Swiss companies and 551 Italian companies. These companies’ export behaviors were driven by a variety of internationalization strategies. 140 Like French exporters as a whole, these companies 120 exported mainly to European markets. However, the subsidiaries’ source country was generally their largest export market. For example, in 2015, 31% of exports 100 100 by German-owned French subsidiaries were shipped 96 92 to Germany, 27% of exports by Spanish-owned French 80 subsidiaries to Spain, 26% of exports by Belgian-owned 77 72 French subsidiaries to Belgium, and 20% of exports by 60 Italian-owned French subsidiaries to Italy. 56 49 48 This pattern can be explained by the importance of 40 44 43 intra-group trading in Europe, particularly between neighboring countries, in the form of trade flows 20 between subsidiaries and their parent companies, or 1 between subsidiaries within the same group. It may reflect a form of vertical integration of production 0 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland chains, with firms producing intermediate or end Kingdom 90 % products, corresponding to different stages of Source: IMF, 2017; CEPII; Business France calculations production or distribution, in different countries.

Intra-group trading is less prevalent among the 80 exporting subsidiaries of non-European groups, such FOREIGN COMPANIES as American or Japanese subsidiaries, whose purpose ACCOUNT FOR5 3 in France is to serve the European market. As such, only 9 40% OF FRENCH GOODS 2 12% of exports of US-owned companies go to the United 70 5 8 States, and only 1.6% of exports of Japanese-owned EXPORTS 5 5 businesses are shipped to Japan. 2 10 3 1 2 Foreign-owned3 8 companies3 operating in France 6 12 contribute60 heavily to French2 exports. According to the 4 1 French National2 2 Institute for Statistics and Economic11 Studies5 (INSEE), foreign companies generated6 16 33% 6 4 of French goods and services12 export revenues in 2015. 4 26 50 6 15 3 6 1 8 The French Customs Authorities, which only track trade 4 in goods, estimate12 that 40%7 of goods exported5 from 9 France7 are done so by12 foreign-owned companies. This 40 figure stands at 46% for goods exported to 6 Germany 4 and Italy, and 49% for those heading to Belgium. 9 9 9 4 18 20 27 10 9 30 6 13 6 7 6 6 9 9 20 6 8 6 7 6 - 38 - 31

8 10 17 16 21 17 16 17 18 19

0 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Kingdom

100 % 5 90

80 37 47 70 70 60

30 58 53 7 20

10 23

0 Large corporates Mid-size companies SMEs and micro-enterprises

100 %

90 26 80 34

70 54

60 26 50

30 66 48 46 20

0 Large corporates Mid-size companies SMEs and micro-enterprises 1, 000 Base 100 = 1990 900

800

700

600

500

400

300

200

100

0 1990 1995 2000 2005 2010 2016

% 40 35 30 25 20 15 10 5 0 Belgium Netherlands Spain France Italy Germany United Kingdom

Other transport equipment 47.2 Motor vehicles, trailers/semi-trailers 39.7 Textiles, clothing, leather goods and footwear 33.3 Chemicals 33.1

Base metals 31.6

Electronic equipment 31.2

Rubber and plastic products 31 Computer, electronic and optical products 30.1 Machinery and equipment, not elsewhere classified 29.8 Fabricated metal products 27.7

Other non-metallic mineral products 24.3

Food, beverages and tobacco 23.6

Wood and cork products 23.4 % 0 10 20 30 40 50 % 9

8.4 8

Germany 7

France 3.2 3.6 3 Netherlands 2.6 Belgium 2.9 Italy 2 2.5 United Kingdom 1.8 Spain 1

0 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016

% 20

4.1 4 3.6 4.0 3.2

2 1.6 1.3

0 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa

Base 100 = 2010 112

110

108

106

104

102

100

96 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28

130 Base 100 = 2010 125

120

115

110

105

100

80 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Aerospace industry 16

Beverages, spirits and vinegar 15.8

Essential oils, perfumes, cosmetics 13.5

Dairy products, eggs, honey 9.8

Leather goods, handbags 9.3

Cereals 6.6 France in the world’s top five exporters

Miscellaneous chemical products 6.4

Pharmaceutical products 6

Paper, paperboard 4

Iron and steel 3.9

Rubber 3.8

Plastics 3.7

Vehicles, bicycles, and parts 3.4

Boilers, machinery, parts 3.1

Organic chemicals 3

Optical, photo, 2.9 medical/surgical instruments Articles of iron or steel 2.8

Aerospace industry

Beverages, spirits and vinegar

Essential oils, perfumes, cosmetics

Dairy products, eggs, honey

Leather goods, handbags

Cereals

Miscellaneous chemical products

Pharmaceutical products

Paper, paperboard

Iron and steel

Rubber

Plastics

Vehicles, bicycles, and parts

Boilers, machinery, parts

Organic chemicals

0 1 2 3 4 5 6

Aerospace 17.4 Beverages 12.3 Perfumes, cosmetics, 10.6 cleaning products Pharmaceuticals 3.3

Index France = 100 180 183

160 166

140

2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES 120

100 100 96 92 80 77 72 60 56 49 48 40 44 43

20 1 GOODS EXPORTS OF FOREIGN-OWNED Fig.0 25 DESTINATION OF FOREIGN SUBSIDIARY EXPORTS Belgium Netherlands BY PARENTFrance Germany COMPANYUnited Austria NATIONALITYIreland Poland Sweden (2015)Italy Spain Finland FRENCH SUBSIDIARIES BY PARENT Kingdom 90 % COMPANY NATIONALITY (2015)

AVERAGE EXPORT PERCENTAGE 80 NUMBER OF PARENT EXPORT OF EXPORTING EXPORTING COMPANY VALUE COMPANIES COMPANIES 5 NATIONALITY (€BN) (EXPORT IN FRANCE 3 REVENUES/ 9 REVENUES) 2 70 5 8 5 5 United States 1,328 45 26.8% 2 10 3 1 2 3 8 3 6 12 60 2 4 1 2 Germany 1,242 22.4 20.0% 2 11 5 6 16 6 4 12 4 26 50 6 15 3 6 1 Switzerland 606 20.7 29.5% 8

4 12 7 5 9 7 12 Italy 551 4.2 14.9% 40 6 4 9 9 4 18 United 9 498 12.4 20.8% 20 27 Kingdom 10 9 30 6 13 6 7 Belgium 482 3.9 27.6% 6 6 9 20 9 6 8 7 6 6 Japan 444 11.1 19.4% 31

8 10 17 16 21 17 16 17 18 19 Netherlands 360 5.5 32.9%

Spain 221 1.6 15.6% 0 Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Kingdom

Germany Spain Italy United Kingdom Sweden 202 5 20.0% 100 % 5 United States Belgium Switzerland Netherlands 90 Source: French Customs Authorities; Treasury Directorate calculations Source: French Customs Authorities; Treasury Directorate calculations 80 37 47 Key:70 German subsidiaries in France exported primarily to European markets, and Key: In 2015, 1,328 American subsidiaries in France exported part of their output. in particular to their source country. Germany received70 31% of the exports of Together, these exports amounted to €45 billion and accounted, on average, German60 subsidiaries in France in 2015. Similarly, Spain received 9% of exports by for 27% of total company revenues. German subsidiaries in France, Italy 7%, and the United Kingdom 6%. 50

30 58 53 7 20

10 23

0 - 39 - Large corporates Mid-size companies SMEs and micro-enterprises

100 %

90 26 80 34

70 54

60 26 50

30 66 48 46 20

0 Large corporates Mid-size companies SMEs and micro-enterprises 1, 000 Base 100 = 1990 900 1, 000 800 Base 100 = 1990 900700

600800

500700

400600

500300

400200

300100

2000 100 1990 1995 2000 2005 2010 2016

0 1990 1995 2000 2005 2010 2016 % 40 35 % 4030 2535 3020 2515 2010 155 100 Belgium Netherlands Spain France Italy Germany United Kingdom 5 0 Belgium Netherlands Spain France Italy Germany United Kingdom

Other transport equipment 47.2 Motor vehicles, trailers/semi-trailers 39.7 Other transportTextiles, equipment clothing, 47.2 leather goods and footwear 33.3 Motor vehicles, trailers/semi-trailers 39.7 Chemicals 33.1 Textiles, clothing, 33.3 leather goods andBase footwear metals 31.6 Chemicals 33.1 Electronic equipment 31.2 Base metals 31.6 Rubber and plastic products 31 Electronic equipmentComputer, 31.2 electronic and optical products 30.1 RubberMachinery and plastic and equipment, products 31 not elsewhere classified 29.8 Computer, electronicFabricated and optical metal products products 27.730.1 Machinery and equipment, 29.8 Other non-metallicnot elsewhere mineral classifiedproducts 24.3 Fabricated metal products 27.7 Food, beverages and tobacco 23.6 Other non-metallic mineral products 24.3 Wood and cork products 23.4 % Food, beverages and tobacco 23.6 0 10 20 30 40 50 % Wood and cork products 23.4 % 9 0 10 20 30 40 50 % 8.4 98

Germany 8.4 87

Germany 67

France 3.2 Netherlands 3.6 2.6 43 Belgium 2.9 France 3.2 Italy 2.5 3.6 United Kingdom 32 Netherlands 2.6 Belgium 2.9 1.8 Spain Italy 21 2.5 United Kingdom 1.8 Spain 01 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016

0 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016 2012 2016

% 20

% 2018

1618

1416

1412

1012

108

3.6 4.1 4.0 46 3.2

1.6 4.1 42 3.6 4.0 3.2 1.3

02 1.6 World Europe North America Middle East Sub-Saharan Emerging1.3 Asia and North Africa Africa 0 World Europe North America Middle East Sub-Saharan Emerging Asia and North Africa Africa

Saudi Arabia 4.0 Brazil 3.5 Spain 12.5 Saudi Arabia 4.0 Hong Kong 1.0 Brazil 3.5 India 1.4 Spain 12.5 Italy 8.7 Hong Kong 1.0 Morocco 13.1 India 1.4 Mexico 1.1 Italy 8.7 Poland 4.3 Morocco Portugal 7.6 13.1 Czech RepublicMexico 1.1 3.3 Poland 4.3 Russia 3.1 Portugal 7.6 Singapore 2.5 Czech Republic 3.3 Switzerland 6.6 Russia 3.1 Turkey 4.4 Singapore 2.5 Germany 7.7 Switzerland 6.6 Austria 2.7 Turkey 4.4 Belgium 9.6 Germany United Arab Emirates 1.9 7.7 Austria 2.7 United States 1.7 Belgium 9.6 Japan 1.2 United Arab Emirates 1.9 Romania 5.6 United States Algeria 1.7 11.7 Japan 1.2 China 1.3 Romania 5.6 South Korea 1.1 Algeria Hungary 3.7 11.7 China Netherlands 1.3 3.5 South Korea 1.1 United Kingdom 5.4 Hungary 3.7 Sweden 4.3 Netherlands 3.5 Tunisia 19.6 United Kingdom 5.4 % 0 5 10 15 20 Sweden 4.3 Tunisia 19.6 % 0 5 10 15 20

Base 100 = 2010 112

Base 100 = 2010 110112

108110

106108

104106

104102

100102

10098

9698 Germany Belgium Spain France Italy Netherlands United Kingdom EU-28

13096 BaseGermany 100 = 2010 Belgium Spain France Italy Netherlands United Kingdom EU-28 125 130 Base 100 = 2010 120 125

115 120

110 115

105 110

100 105

95 100

90 95

85 90

80 85 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

80 Aerospace industry 16 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Beverages, spirits and vinegar 15.8 Aerospace industry 16 Essential oils, perfumes, cosmetics 13.5 Beverages, spirits and vinegar 15.8 Dairy products, eggs, honey 9.8 Essential oils, perfumes, cosmetics 13.5 Leather goods, handbags 9.3 Dairy products, eggs, honey 9.8 Cereals 6.6 France in the world’s top five exporters Leather goods, handbags 9.3 Miscellaneous chemical products 6.4 Cereals 6.6 France in the world’s top five exporters Pharmaceutical products 6 Miscellaneous chemical products 6.4 Paper, paperboard 4 Pharmaceutical products 6 Iron and steel 3.9 Paper, paperboard 4 Rubber 3.8 Iron and steel 3.9 Plastics 3.7 Rubber 3.8 Vehicles, bicycles, and parts 3.4 Plastics 3.7 Boilers, machinery, parts 3.1 Vehicles, bicycles, and parts 3.4 Organic chemicals 3 Boilers, machinery, parts 3.1 Optical, photo, 2.9 medical/surgical instruments Organic chemicals 3 Articles of iron or steel 2.8 Optical, photo, 2.9 medical/surgical instruments Apparel articles, accessories 2.7 Articles of iron or steel 2.8 Electric machinery, TV/audio equipment 1.8 Apparel articles, accessories 2.7 Natural pearls, 1.2 preciousElectric stones/metals machinery, TV/audio equipment 1.8 3.2%: France’s overall global export market share Mineral fuel, 0.9 oil,Natural wax, bitumen pearls, % precious stones/metals 0 1.2 2 4 6 8 10 12 14 16 3.2%: France’s overall global export market share Mineral fuel, 0.9 oil, wax, bitumen % 0 2 4 6 8 10 12 14 16

Aerospace industry

Beverages, Aerospacespirits and industry vinegar

EssentialBeverages, oils, perfumes, spirits and cosmetics vinegar

EssentialDairy oils, products, perfumes, eggs, cosmetics honey

DairyLeather products, goods, eggs, handbags honey

Leather goods, handbagsCereals

Miscellaneous chemical productsCereals

MiscellaneousPharmaceutical chemical products

PharmaceuticalPaper, paperboard products

Paper,Iron paperboard and steel

Iron andRubber steel

PlasticsRubber

Vehicles, bicycles, andPlastics parts

Boilers, machinery, parts Vehicles, bicycles, and parts

Boilers,Organic machinery, chemicals parts

Organic chemicals0 1 2 3 4 5 6

0 1 2 3 4 5 6

Aerospace 17.4 Beverages 12.3 Perfumes, cosmetics,Aerospace 10.6 17.4 cleaning products Beverages 12.3 Pharmaceuticals 3.3 Perfumes, cosmetics, 10.6 Chemicals (exceptcleaning basic chemicals) products 2.8 3.3 Pharmaceuticals 2.7 Dairy products 2.8 ChemicalsElectronic (exceptcomponents basic andchemicals) boards 2.2 2.7 Measuring, testing,Dairy navigation products 1.3 instruments; watches/clocks 2.2 Electronic components and boards 1.1 Animal food Measuring, testing, navigation 1.3 1.1 billion instruments;Manufacture watches/clocks of ships/boats € -2 0 1.12 6 10 14 18 Animal food 200 Manufacture of ships/boats 1.1 € billion -2 0 2 6 10 14 18 Index France = 100 200 180 183 Index France = 100 180 183 160 166

160 166 140

140 120

120 100 100 96 92 100 80 100 96 92 77 72 80 60 77 72 56 49 60 48 40 44 43 56 49 48 40 20 44 43 1 20 0 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland 1 Kingdom 90 % 0 Belgium Netherlands France Germany United Austria Ireland Poland Sweden Italy Spain Finland Kingdom 90 %

5 80 3 9 2 70 5 8 3 5 5 9 2 10 2 70 5 3 1 2 3 8 3 8 6 12 5 5 60 2 42 101 3 1 2 3 2 82 3 11 6 5 12 6 16 60 4 2 6 4 12 1 2 2 11 4 26 16 50 65 15 3 6 1 6 4 8 3 . FRANCE’S12 PLACE IN THE WORLD 4 26 4 50 6 12 15 3 7 6 5 91 7 12 8 40 4 6 12 7 5 9 7 12 4 9 40 9 4 18 9 6 20 27 4 10 9 30 9 6 9 9 4 18 13 20 6 27 7 10 9 30 6 6 13 6 9 20 7 9 6 8 6 7 6 6 6 9 31 20 9 6 8 7 6 6 8 10 31 17 16 21 17 16 17 18 19

BREAKDOWN OF GOODS EXPORTERS FOREIGN SUBSIDIARIES Fig. 26 17 16 21 17 16 17 18 19 8 10 AND EXPORTS BY COMPANY CATEGORY 8 GENERATE MORE THAN AND OWNERSHIP TYPE (2017) 0 HALF OF MID-SIZE COMPANY Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden8 Exporting companies Kingdom EXPORT SALES 0 100 %Germany United States Italy Switzerland United Belgium Netherlands Japan Spain Sweden Provisional French Customs Authorities data for 2017 5 Kingdom indicates that the impact of foreign companies on 90 100 % French exports varied by company size, with mid-size 80 5 37 companies contributing the most. Although foreign 90 47 70 70 subsidiaries in France generated around one-third of 80 37 exports by large corporates and one-quarter of exports 60 47 70 70 by SMEs in 2017, they accounted for 54% of export sales 50 60 by mid-size companies. 40 50 30 58 Mid-size companies play a key role in exports by 40 53 7 foreign-owned companies in France, making up 18% 20 of foreign exporters, which is more than four times 30 58 10 53 237 higher than the proportion of mid-size companies 20 among exporters as a whole. Mid-size companies are 0 10 Large corporates Mid-size companies SMEs and micro-enterprises23 responsible for nearly 50% of foreign-owned export sales, whereas businesses of this size only account 0 100 % Large corporates Mid-size companies SMEs and micro-enterprises for 35% of all exports from France. Export value 90 100 % 26 However, in terms of numbers, foreign-owned 80 34 companies were most prevalent among large corporate 90 70 54 26 exporters (47% of exporting large corporates), 80 34 accounting for 37% of mid-size company exporters and 60 26 70 54 only 7% of SME exporters. Three-quarters of exporting 50 60 26 SMEs were independent companies that were not part 40 of a group. 50 30 66 48 40 46 In 2017, more foreign companies decided to grow 20 30 their European and African businesses from a base 10 66 48 46 in France. Investment decisions such as these may have 20 taken the form of establishing a first European sales 0 10 Large corporates Mid-size companies SMEs and micro-enterprises office in France, or a France-based EMEA headquarters 0 to manage the company’s expansion or operations in Large corporates Mid-size companies SMEs and micro-enterprises Europe and Africa. French-owned groups Foreign-owned groups These forms of foreign investment also reflect France’s Independent legal entities strategic location in Europe. For example, mirroring French exports in general, 5% and 6% of the goods Source: French Customs Authorities (provisional data) exported by Japanese and American companies from Key: In 2017, 54% of mid-size company export sales were generated by foreign-owned subsidiaries. These subsidiaries accounted for 37% of exporting France were exported to African markets. mid-size companies.

- 40 - 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

They chose France as an export base

AGRI-FOOD AUTOMOTIVE INDUSTRY FRANCE’S SECOND LARGEST BREWERY ALLGAIER EXPORTS FROM ITS IN CHAMPIGNEULLES GRAND EST PLANT

The Champigneulles brewery in the Meurthe-et-Moselle Ateliers d’Emboutissage de Faulquemont (AEF) is a département of the Grand Est region, a subsidiary of subsidiary of the German Allgaier Group. Specializing in German group TCB Beteiligungsgesellschaft, is the the manufacture of punching tools for the automotive second largest in France after Kronenbourg-Carlsbergs industry, it is the group’s only French production facility to in Obernai, with 3.6 million hectoliters of beer brewed be based in the Moselle area of the Grand Est region. The each year. Ninety percent of its output is exported firm caters primarily for the automotive industry, making to around twenty countries. Its extensive range also brake parts, as well as structural, gearbox and sunroof features a variety of packaging options. The brewery components, along with brake disc guards. It also supplies sells its beers in cans and glass bottles, but also parts for some of BMW’s electric vehicles. “We work with produces PET bottles for Spain, its number one market all the major German car makers,” says Mr. Schneider, ahead of Great Britain, Italy and Belgium. In 2017, the citing Volkswagen, Audi, BMW, Daimler and Porsche. company announced an expansion to the facility that “99.8% of our output is exported. We are currently seeking will create around thirty jobs. to generate business with French brands,” he adds.

AGRI-FOOD PHARMACEUTICALS AND BIOTECHNOLOGIES NEW HÄAGEN-DAZS MINI ICE LOLLY RANGE DUNKIRK, HOME TO CUTTING-EDGE INHALED TO CREATE JOBS IN HAUTS DE FRANCE REGION MEDICINE PRODUCTION

American group Häagen-Dazs, which has had a presence Anglo-Swedish company AstraZeneca opened its site in in the Hauts de France region for 25 years, regularly the Hauts de France region in 1991. The plant produces reinvests in its French sites. It recently confirmed that inhalers to treat asthma as well as chronic obstructive it would be developing a new range of mini ice lollies, pulmonary disease. A major €135 million reinvestment was which will be exported to 89 countries around the world. announced in 2017 to expand the site’s pharmaceutical Häagen-Dazs will invest around €14 million to develop production capacity, with a view to launching a new the new production line in Tilloy lès Mofflaines, which high value-added inhalation technology manufacturing will make more than 160 million ice lollies a year. The process. The Dunkirk plant is set to become a global expansion of the plant’s operations in the Pas de Calais benchmark for the production of inhaled medicines, with département will lead to the creation of 80 additional jobs. 90% of its output exported to the United States.

- 41 - 3 . FRANCE’S PLACE IN THE WORLD

METHODOLOGY

The contribution made by foreign subsidiaries to the French economy as a whole has been measured using INSEE data on foreign-owned resident company employment, revenues, investment in tangible assets and foreign trade for the year 2015 (latest year available). Data are taken from the INSEE Financial Links Between Enterprises Survey (LiFi) and Annual Business Statistics Program (ESANE).

Data published by the French Customs Authorities, which only tracks trade in goods, provides further information on foreign goods exporters, such as their number by nationality, export sales by market, and company size. The Customs Authorities’ annual report on foreign trade operators gives figures for all trade in declared goods with countries in and outside the European Union.

The company categories used are based on Article 51 of the French Economic Modernization Act (LME) of August 4, 2008, which distinguishes between micro-enterprises (companies with fewer than 10 employees), SMEs (fewer than 250 employees), mid- size companies (between 250 and 4,999 employees) and large corporates (at least 5,000 employees).

- 42 - 4 French exporters

44 OVERVIEW OF FRENCH EXPORTERS 48 FRENCH STARTUPS GOING GLOBAL 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

OVERVIEW OF FRENCH EXPORTERS

NUMBER OF REGULAR FRENCH EXPORTERS (2008-2017) Fig. 27 EXPORTERS UP AGAIN Baseline 100 = 2008 IN 2017 115 Regular: companies exporting in each of the last five years According to provisional data from the French 110 Customs Authorities, nearly 124,100 businesses Established: companies exporting for at least two years in a row exported from France in 2017, a similar figure to 2016. 105

Of these, 28,200 (23% of the total) were new entrants, Total exporting companies 1 among whom 65% were first-time exporters. 100

The percentage of new entrants to the export market 95 varied significantly based on company size: 33% were Companies micro-enterprises, 13% were SMEs, and fewer than 10% starting to export 90 were mid-size companies and large corporates.

The list of exporters changes significantly from year to 85 the next: every year, nearly one-quarter are first-time Companies exporters, while a similar number cease exporting. More 80 ceasing to export than 85% of incoming and outgoing companies have fewer than 20 employees. 75

However, the percentage of companies that remain on 70 the list for two or more years in a row has been creeping 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 up in recent times, from 73% to 77% in the last 10 years. Source: French Customs Authorities % 100 90 1 First-time exporters are companies that have not exported in the last five years. 80 70 60 50 95 40 52 30 - 45 - 20 35 10 4 0.4 13 0 Large corporates Mid-size companies SMEs and micro-enterprises

39.8 71.1 94.8 2017

Top 100 exporters

Top 1,000 exporters

Top 10,000 exporters

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

% 25

Transport equipment

Concentration of exporters

Chemicals, perfumes Share of export revenues of export Share

Food, beverages 10

Basic Machinery metals Diversification of exporters Pharmaceuticals

Electronic/ Textiles IT equipment 5 Electronic equipment

Rubber, plastic Petroleum products Wood, paper Agricultural products

Petroleum extraction, mining 0 % 0 2 4 6 8 10 12 14 16 18 20 Share of number of exporters

80,000

70,000

60,000

50,000 70,355

40,000

46,996 30,000

37,877 34,475 31,902 20,000

10,000 16,018

European Union Non-EU Europe Africa Americas Asia Middle East

743

513

191 270

143

615 1,517 1,304 2,134 3,185 2013 2014 2015 2016 2017 Baseline 100 = 2008 115 Regular: companies exporting in each of the last five years 110

Established: companies exporting for at least two years in a row 105

Total exporting companies 100

95 Companies starting to export 90

4 . FRENCH EXPORTERSCompanies 80 ceasing to export

70 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

% 100 90 80 70 Similarly, the proportion of regular exporters has risen 6The0 SME category also saw a clear improvement in 95 by four percentage points over the decade.2 5export0 sales, with export value up 3.9%, outpacing large These positive trends offer proof that increasing 4corporates,0 52 which saw a 3.7% increase. numbers of French businesses are taking advantage 30 of foreign market opportunities and are able to remain 2As0 in most advanced economies,35 a small number of 10 companies are responsible4 for the bulk of French goods in the export market. 0.4 13 0 sold overseas,Large corporates with France’sMid-size companies leadingSMEs 1,000and micro-enterprises exporters Baseline 100 = 2008 Large corporates 115 generating 71% of French exports. Regular: companies exporting alone accounted for more than half of export sales in 2017, MID-SIZE EXPORTING in each of the last five years despite representing only 0.4% of exporters in France. COMPANIES110 DOMINATE Established: companies exporting IN 2017 for at least two years in a row 105 The French export industry in 2017 was dominatedTotal by exporting companies Fig. 29 CONCENTRATION OF SMEs100 in company numbers (95%), and by large and mid- FRENCH EXPORTERS (2017) size companies in export value (87%). Mid-size companies 39.8 71.1 94.8 made95 up 4% of exporters in 2017, but accounted for 35% 2017 Companies of export sales. starting to export Top 100 exporters 90 Analysis of French exporters by company category reveals that mid-size companies proved the most Top 1,000 exporters 85 dynamic, with export value up by 6.2% in 2017, while Companies their number only edged up 0.6%. Top 10,000 exporters 80 ceasing to export

% 75 0 10 20 30 40 50 60 70 80 90 100

Fig. 28 BREAKDOWN OF FRENCH EXPORTERS Source: French Customs Authorities 70 AND EXPORT SALES BY COMPANY SIZE (2017) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

% 100 % 90 EXPORTER25 PROFILES 80 VARY BY SECTOR 70 AND MARKET Transport equipment 60 50 95 A breakdown of the number of exporters by export Concentration of exporters 40 52 product points to significant sector-specific differences. 30 20 20 35 Some sectors see a wide range of key export players 10 4 comprising a large number of companies that are only 0.4 13 0 Large corporates Mid-size companies SMEs and micro-enterprises responsible for a modest share of French exports. This is the case, for example, in the food/beverages, textiles and Number of French exporters Export sales machinery sectors, which each accounted for more than 9%15 of French exporters in 2017, but were responsible for Source: French Customs Authorities a much smaller share of French export sales.

2 Regular exporters are companies that have exported in each of the last five years, while established exporters haveChemicals, been exporting for at least two years in a row. perfumes Share of export revenues of export Share

Food, beverages 10

39.8 71.1 94.8 2017

Basic Machinery Top 100 exporters metals Diversification of exporters Pharmaceuticals

Top 1,000 exporters - 46 - Electronic/ Textiles IT equipment 5 Electronic equipment Top 10,000 exporters Rubber, plastic Petroleum % products Wood, paper Agricultural 0 10 20 30 40 50 60 70 80 90 100 products

Petroleum extraction, mining 0 % 0 2 4 6 8 10 12 14 16 18 20 Share of number of exporters

% 80,000 25

70,000

Transport equipment 60,000 Concentration of exporters

20 50,000 70,355

40,000

46,996 30,000 15 37,877 34,475 31,902 20,000

Chemicals, perfumes

Share of export revenues of export Share 10,000 16,018 Food, beverages 10

European Union Non-EU Europe Africa Americas Asia Middle East Basic Machinery metals Diversification of exporters Pharmaceuticals

Electronic/ Textiles IT equipment 5 Electronic equipment

Rubber, plastic 743 Petroleum products Wood, paper Agricultural products 513 Petroleum extraction, mining 0 % 0 2 4 6 8 10 12 191 14 16 18 20 Share of number of exporters 270

143 80,000 615 1,517 1,304 2,134 3,185 2013 2014 2015 2016 2017 70,000

60,000

50,000 70,355

40,000

46,996 30,000

37,877 34,475 31,902 20,000

10,000 16,018

European Union Non-EU Europe Africa Americas Asia Middle East

743

513

191 270

143

615 1,517 1,304 2,134 3,185 2013 2014 2015 2016 2017 Baseline 100 = 2008 115 Regular: companies exporting in each of the last five years 110

Established: companies exporting for at least two years in a row 105

Total exporting companies 100

95 Companies starting to export 90

Companies 80 ceasing to export

70 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

% 100 90 80 70 60 50 95 40 52 30

20 35 10 4 0.4 13 0 Large corporates Mid-size companies SMEs and micro-enterprises 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

39.8 71.1 94.8 2017

Top 100 exporters

Top 1,000 exporters

Conversely, other sectorsTop 10,000 made exporters up a high proportion Similarly, the number of exporters varies significantly of total export value. The pharmaceutical industry, for depending on destination markets and their accessibility. % example, accounted for 1% of French exporters in 2017, Consequently, there are a higher number of French 0 10 20 30 40 50 60 70 80 90 100 but 6.4% of French export sales. companies exporting to the European Union countries,

Fig. 30 CONCENTRATION OF EXPORTERS BY PRODUCT GROUP (2017) % 25

Transport equipment

Concentration of exporters

Chemicals, perfumes Share of export revenues of export Share

Food, beverages 10

Basic Machinery metals Diversification of exporters Pharmaceuticals

Electronic/ Textiles IT equipment 5 Electronic equipment

Rubber, plastic Petroleum products Wood, paper Agricultural products

Petroleum extraction, mining 0 % 0 2 4 6 8 10 12 14 16 18 20 Share of number of exporters

Source: French Customs Authorities; Business France calculations. 80,000 Key: The transport equipment sector accounts for only 7% of French exporters, but 23.2% of French export revenues. Conversely, the food/beverages sector accounts for 14% of exporters, but only 10% of export revenues. 70,000

60,000

50,000 70,355

40,000 - 47 -

46,996 30,000

37,877 34,475 31,902 20,000

10,000 16,018

European Union Non-EU Europe Africa Americas Asia Middle East

743

513

191 270

143

615 1,517 1,304 2,134 3,185 2013 2014 2015 2016 2017 Baseline 100 = 2008 115 Regular: companies exporting in each of the last five years 110

Established: companies exporting for at least two years in a row 105

Total exporting companies 100

95 Companies starting to export 90

Companies 80 ceasing to export

70 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

% 100 90 80 70 60 50 95 40 52 30

20 35 10 4 0.4 13 0 Large corporates Mid-size companies SMEs and micro-enterprises

39.8 71.1 94.8 2017

Top 100 exporters

Top 1,000 exporters

Top 10,000 exporters

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

% 25

4 . FRENCH EXPORTERS Transport equipment

Concentration of exporters

Chemicals, perfumes which revenues of export Share are closer to France and also belong to the same Food, beverages 10 economic area. FROM MICRO-ENTERPRISES

The largest number of French exporters tradeBasic with TO LARGEMachinery CORPORATES, adjacent countries, such as Belgium, Germany metalsand BUSINESSES BIGDiversification AND of exporters SMALL Spain. TherePharmaceuticals are also many French businesses that export to Africa, which despite accounting for Electronic/less Textiles IT equipment The decree of December 18, 2008 sets out four than 56% of French exports, is an export destination new company categories based on information for nearly 30% of companies. Electronic equipment such as employee numbers, company revenues Rubber, plastic Petroleum and the balance-sheet total. This information products Wood, paper Agricultural products helps assess the performance of commercial, financial and holding companies that play a Fig.31 NUMBERPetroleum extraction, OF FRENCH mining EXPORTERS % 0 BY DESTINATION REGION (2017) major economic role in terms of the revenues 0 2 4 6 8 10 12 14 16 18 20 Share of number ofthey exporters generate or the assets they hold, despite having very few employees. 80,000 The decree stipulates four different categories: 70,000 / Micro-enterprises: Companies with fewer than 10 employees, and annual revenues or a 60,000 balance-sheet total of €2 million or less.

50,000 / SMEs: Fewer than 250 employees, and annual 70,355 revenues of less than €50 million or a balance- sheet total not exceeding €43 million. 40,000 / Mid-size companies: Fewer than 5,000 46,996 employees, and annual revenues not exceeding 30,000 €1.5 billion or a balance-sheet total of €2 billion 37,877 34,475 31,902 or less. 20,000 / Large corporates: At least 5,000 employees, with revenues of more than €1.5 billion and a 10,000 16,018 balance-sheet total of more than €2 billion.

For the purposes of the decree, micro-enterprises European Union Non-EU Europe Africa Americas Asia Middle East are treated as a sub-category of SMEs.

Source: French Customs Authorities

743

513

191 270

143 615 1,517 1,304 2,134 3,185 - 48 - 2013 2014 2015 2016 2017 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

FRENCH STARTUPS GOING GLOBAL

French startups are increasingly catching the eyes customized support, including coaching, tailored advice of international investors and standing out as symbols and access to a network of professionals. An excellent of France’s innovation prowess, while more of their example is in Paris, which is home to Station F, the foreign counterparts are heading to France to build largest startup incubator in the world. The 34,000-sq. their businesses. m. venue opened in 2017 and can accommodate more than 1,000 startups.

RAPID France is among the simplest countries in which to INTERNATIONALIZATION found a company: only 3.5 days are required, compared with 4.5 days in the United Kingdom and 10.5 in Germany. What’s more, the costs of setting up Often defined as innovative newly formed companies a business are lower in France than in Germany, while with strong growth potential, startups generally cross France also boasts a very favorable tax system offering borders rapidly by exporting or operating abroad, reduced rates for SMEs. sometimes from the outset, expanding simultaneously at home and in foreign markets. A number of startups – There is also a wide range of support for innovative generally those operating in niche markets and high-tech companies. For example, startups working on R&D sectors – can even be said to be “born global”; scarcely projects may benefit from the innovative new company have they been established before they look abroad status, which comes with tax and social security with an eye to greater opportunities. exemptions and can be combined with France’s research tax credit. According to the EY 2017 survey Going global represents a significant investment for on the performance of digital startups in France, more these fledgling companies, which do not yet have than half of them have innovative new company status the financial resources needed to grow. Their success and are benefiting from France’s research tax credit. depends on their ability to raise capital and diversify their sources of funding. As such, access to a network of venture capital investors can be decisive for innovative STARTUP FUNDING startups in their initial stages of development.

Given their liquidity constraints and difficulty in FRANCE: A NATION qualifying for bank loans, startups can find it difficult to get off the ground. However, newly founded companies can OF STARTUPS obtain easy funding through schemes such as the seed capital loans introduced by Bpifrance, France’s public At the 2018 Las Vegas Consumer Electronics Show investment bank, in 2005, which is offered to innovative (CES), the largest of its kind in the world, 274 French small companies that have received government startups displayed their wares at Eureka Park, the innovation support. specific exhibit area for startups. France had the second largest national delegation, after the United States, New companies also need investors to fund their highlighting just how much the country has done to international operations. The most recent CB Insights/ foster the development of innovative new companies. La French Tech report on tech funding trends nationwide confirms an increase in the number and The many business incubators and accelerators value of funding deals with early-stage companies in throughout France can provide startups with France in 2017. According to the report, there were

- 49 - Baseline 100 = 2008 115 Regular: companies exporting in each of the last five years 110

Established: companies exporting for at least two years in a row 105

Total exporting companies 100

95 Companies starting to export 90

Companies 80 ceasing to export

70 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

% 100 90 80 70 60 50 95 40 52 30

20 35 10 4 0.4 13 0 Large corporates Mid-size companies SMEs and micro-enterprises

39.8 71.1 94.8 2017

Top 100 exporters

Top 1,000 exporters

Top 10,000 exporters

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

% 25

Transport equipment

Concentration of exporters

Chemicals, perfumes Share of export revenues of export Share

Food, beverages 10

Basic Machinery metals Diversification of exporters Pharmaceuticals

Electronic/ Textiles IT equipment 5 Electronic equipment

Rubber, plastic Petroleum products Wood, paper Agricultural products

Petroleum extraction, mining 0 % 0 2 4 6 8 10 12 14 16 18 20 Share of number of exporters

80,000 4 . FRENCH EXPORTERS

70,000

60,000

50,000 70,355

743 funding deals in 2017 (up 45% from 2016) totaling 40,000 US$3.2 billion (up 49%). France was ranked second Attractive startups for foreign in Europe for the number of funding deals, after the 46,996 venture capital firms 30,000United Kingdom (1,177 deals) but ahead of Germany (533 deals); and third in terms of the sums raised, after 37,877 the United Kingdom (€10.834,475 billion) and Germany 31,902 20,000(€4.7 billion).

Paris remains France’s leading city for fundraising, RETAILTECH 10,000with nearly half of all French deals in 201716,018 completed in MANOMANO the capital. However, thriving ecosystems are emerging in several other major cities, including Lyon (26 deals), Founded in 2013, this startup has developed on online European Union Non-EU Europe Africa Americas Asia Middle East Bordeaux (17 deals) and Nantes (14 deals). marketplace, focusing on gardening and DIY, operating in various European markets (Belgium, Spain, Italy, the United Kingdom and Germany). In 2016 and 2017, the firm raised more than €70 million from French and Fig.32 NUMBER AND VALUE OF VC FUNDING DEALS foreign investors, including General Atlantic, Piton IN FRANCE (2013-2017) Capital, Partech Ventures and Bpifrance Investissement. 743 The company plans to recruit nearly 200 people in Paris to help ramp up its international presence.

513

191 270 HEALTHTECH 143 DOCTOLIB 615 1,517 1,304 2,134 3,185 2013 2014 2015 2016 2017 Founded in 2013, Doctolib is a startup whose web service

Investments (US$ million) Deals allows users to contact health professionals and book medical appointments. In 2016, Doctolib also set up Source: CB Insights, La French Tech operations in Germany. By June 2018, Doctolib should also be available across the French capital’s public hospital system (Assistance Publique – Hôpitaux de Paris). In 2017, the startup conducted two fund-raising rounds, resulting French tech companies are attracting foreign investors in €60 million worth of finance being received from French in growing numbers. According to a report by Chausson Finance, there were 52 funding deals in France involving and foreign stakeholders such as Accel Partners, Bpifrance at least one foreign venture capital fund in 2017, and Eurazeo. The company is particularly keen to speed up a significant increase from 2016 (up 62%). its growth in the German market.

The United Kingdom and the United States were the main source countries for these investments, accounting for two-thirds of funds raised. The most active foreign VC investors in France were Accel Partners FOODTECH (United States), Index Ventures (United States), and FRICHTI Piton Capital (United Kingdom). This Paris-based startup specializes in the home delivery The growing interest of foreign funds in French of fresh produce and meals prepared in its kitchens, startups reflects not only the health of the French standing apart from its competitors by paying its couriers entrepreneurship ecosystem but also international a fixed salary and employing 300 people on permanent recognition of the high-quality innovations developed contracts. In 2017, just two years after its launch, it in France. Foreign investors are now sharing with raised €30 million from French and foreign investors, domestic investors in the growth of French companies. including Alven Capital, Felix Capital, Idinvest Partners and Verlinvest. Thanks to this backing, Frichti now hopes to grow its business internationally.

- 50 - 2017 REPORT - BUSINESS FRANCE EXPORT PERFORMANCES

FRANCE WELCOMES FOREIGN STARTUPS

SOFTWARE AND IT SERVICES France has launched numerous initiatives to consolidate and promote the French ecosystem to foreign startups. MINDMAZE

For example, the French Tech Ticket, introduced in 2015, This Swiss startup, valued at US$1 billion, specializes aims to attract international entrepreneurs to France in developing virtual-reality software to help with the by providing them with a welcome pack to help them neurological rehabilitation of stroke victims. It established start and grow their business in France. It offers winning itself in France in 2017, and has an R&D center in Paris, foreign applicants a grant for each founding member, where a dozen researchers have been working on how to as well as 12 months’ residency in a business incubator. interpret brain signals. Since June 2017, the French Tech Visa has also made it easier and quicker for foreign talent to obtain residence permits.

Following the second edition of the French Tech Ticket initiative, 70 foreign startups have established themselves in France. The winners come from 42 SOFTWARE AND IT SERVICES different countries and are now based in more than NANORAVEN 40 incubators in 13 cities across France. This Brazilian startup and 2017 French Tech Ticket winner designs and builds communication systems for nanosatellites. The company has opened a site in Montpellier in the Occitanie region, close to the city’s University Space Center, the only French higher education establishment to offer the European Space They set up in France Agency’s Fly Your Satellite! program. The startup now plans to create five jobs in the immediate future.

AGRI-FOOD ZABBAAN SOFTWARE AND IT SERVICES This Malian startup has developed a range of drinks CARFIT made from ingredients produced by sustainable fair- trade farms in Africa. To market its products across This Franco-Canadian startup has developed artificial Europe, the firm’s young CEO decided to set up an intelligence software that can identify a vehicle’s international sales subsidiary at Bond’innov in Bondy, maintenance needs by analyzing vibrations through a just outside Paris, which is set to recruit around 15 small unit fixed under the steering wheel. Carfit was one people within the next three years. The CEO is also of the winners of the second edition of the French Tech going to set up a small R&D center employing three Ticket and decided to set up in Lille’s Euratechnologies people in the city of Amiens, where she spent part of incubator (Hauts de France region), as well as at the her studies. Bpifrance Hub in Paris (Ile de France).

- 51 - 4 . FRENCH EXPORTERS

/ Introducing the French Tech Ticket, a bespoke support package to attract young entrepreneurs to France by providing a welcome pack (residence permit, individual grant, accommodation, and customized advice) to help SOFTWARE AND IT SERVICES them set up and expand their business. NOVADE SOLUTIONS

This Singapore-based tech startup specializes in digitalization for the construction and manufacturing sectors. It chose to set up its European headquarters BUSINESS FRANCE and R&D center in Aix-en-Provence, in the Provence- Alpes-Côte d’Azur region, where it will now create SERVICES FOR STARTUPS around 15 jobs. Within the scope of its programs to help companies do business in international markets, Business France offers startups a wide range of ‘LA FRENCH TECH’: services, depending on their level of maturity: CONNECTING A NETWORK OF / Assistance at international trade fairs as well as STARTUP ECOSYSTEMS setting up meetings with local businesses and stakeholders catering to startups’ needs.

Numerous government and state bodies underpin / Reconnaissance programs (e.g. French Tech support for startups in France, including the Ministry Tours) for mature startups that have one or for the Economy and Finance (Businesses Directorate, more foreign target markets in their sights. Treasury Directorate), the Ministry of Foreign Affairs and Business France now offers five tours, ranging International Development (Businesses and International from the exploration of ecosystems in Japan Economy Directorate), the National Investment Commission, and South Korea, to longer three-week the Caisse des Dépôts, Bpifrance and Business France. immersions in Canada. The program is now available in five countries: Russia, Japan/South Together, their pro-startup efforts are coordinated under Korea, India, Brazil and Canada. the banner of “La French Tech”, a public/private initiative and accreditation launched in late 2013 to encourage / Accelerator programs, like Impact in the United the creation of successful French startups and help States and Acceleratech in China. innovative entrepreneurs build their businesses. / The opportunity to take part in internationally The three strands of the French Tech international renowned programs such as MedStartUp, strategy are: stemming from a partnership between Business France and the Galien Foundation, that rewards / Building French Tech Hubs to group French innovative transatlantic alliances between entrepreneurs in foreign countries into ecosystems to startups in the pharmaceutical, biotech, accelerate the foreign development of French startups, medtech and healthcare industries. and promoting France as an attractive business location for entrepreneurs and local investors. In June Business France is also responsible for promoting 2015, 12 new French tech hubs were accredited in New the “La French Tech” brand throughout the York, Israel, Tokyo, San Francisco, Montreal, Cape Town, world by advocating France’s attractiveness as Hong Kong, Moscow, Barcelona, London, Abidjan and a startup destination. This operational role sees Seoul. Since then, a further 10 have been set up in Berlin, it provide support to startups and entrepreneurs Dubai, Los Angeles, Milan, Beijing, São Paolo, Shanghai, at global trade fairs (e.g. CES in Las Vegas) and Shenzhen, Taiwan and Vietnam. conferences (e.g. World Economic Forum in Davos), as well as assistance for foreign investors / Launching a €15 million French Tech international and journalists looking to learn more about promotion platform, to support various initiatives, France’s startup ecosystem. particularly by private-sector stakeholders, to highlight and showcase France’s innovation prowess.

- 52 - Publication Director: Christophe Lecourtier (CEO) Chief Editor: Sylvie Montout (Chief Economist) Contributor: Manuel Marcias (Economist) Translation: David Williams, Peter Stewart (English Language Editors) Editorial coordination: Mélanie Cornière (Editorial Project Manager); Priscille Troyan-Gulli (Brand & Image Team Leader) Design and layout: Hopscotch – March 2018

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 64 countries throughout the world, who work with a network of public- and private-sector partners.

CONNECT – FAST-TRACK – SUCCEED

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 INVEST SOUTH AFRICAN INVESTMENTS Despite the potential IN EUROPE of the South African In 2017, South African investments in Europe were made primarily in the United Kingdom economy, investments (32%), France (16%) and the Netherlands in France remain few (16%).2 in number. SELECTED INVESTMENT SOUTH PROJECTS IN 2017 AFRICA SOUTH AFRICAN COMPANIES BOS Brands: South Africa’s leading producer of rooibos-based iced tea decided IN FRANCE to open a sales and marketing office in Paris There are around twenty South African (Ile de France region), creating 11 jobs. As companies operating in France, where France represents the largest European FLOW they employ more than 12,000 people. market for consumption of iced tea, BOS Three South African investments have been Brands is planning to expand its business on recorded in France since 2016, creating or French soil. maintaining around twenty jobs. 2 Hall & Sons Group: This producer and projects In 2017, South African companies set up exporter of avocados already has a presence (Business France) two decision-making centers in France at the Rungis market outside Paris and has in Ile de France (Paris region). These now invested in the Provence-Alpes-Côte investments involved the agri-food sector d’Azur region, buying equipment and saving 14 and a communication agency. In 2016, a six jobs at the Logaram distribution center. jobs research center for thrombosis was set up The investment will enable the company to (Business France) in Normandy. cover the Mediterranean market from France.

TOP 5 SOUTH AFRICAN COMPANIES BY EMPLOYMENT IN FRANCE STOCK Parent company Workforce Main business sector in France

STEINHOFF INTERNATIONAL HOLDINGS Wholesale and retail More than 9,000-10,000 20 (CONFORAMA) Furnishings, household goods companies ASPEN HOLDINGS Pharmaceuticals and biotechnologies 800-900 in France (Orbis) Financial services BRAIT SE (NEW LOOK) 500 More than Textiles, clothing and accessories 12,000 IMPERIAL HOLDINGS LTD. Transport, storage 50-100 employees (Business France, Johannesburg) HANS MERENSKY HOLDINGS Glass, ceramics, minerals, wood, paper 20-100 €2.1 billion BREAKDOWN OF PROJECTS FDI stock in France1 (Banque de France) BY BUSINESS ACTIVITY 2016 2017 €1.8 Business activity Projects Jobs Projects Jobs Decision-making centers - - 2 14 billion First-time investments - - 2 14 French exports 43rd place R&D, engineering, design 1 10 - - (French Customs Authorities) R&D 1 10 - -

Total 1 10 2 14

1 FDI stock in France (ultimate investor) as of December 31, 2015. 10 2 companies Business France Europe Observatory. in the Forbes 2000 BREAKDOWN OF PROJECTS BY BUSINESS SECTOR 2016 2017

Business sector Projects Jobs Projects Jobs

Agri-food, agriculture, fishing - - 1 11

Other services - - 1 3

Pharmaceuticals and biotechnologies 1 10 - -

Total 1 10 2 14

Business France - 2017 Annual Report INVEST Germany was the second leading source Two regions stood out for attracting German of foreign investment investments: Grand Est (23% of all German in France in 2017, projects and 21% of jobs generated) and Ile de France (Paris region) (23% of projects accounting for 16% of and 12% of jobs). The former, adjacent to the French-German border, received more than GERMANY projects. The number one-third (36%) of its foreign investments of jobs created or from Germany. maintained rose by GERMAN INVESTMENTS 22%. IN EUROPE FLOW In 2017, France remained the leading European recipient of job-creating GERMAN COMPANIES investment from Germany, attracting 25% of German projects in Europe, followed by 208 IN FRANCE the United Kingdom (10%), Spain (8%) and projects 2 (Business France) There are over 4,500 German companies Poland (7%). operating in France, where they employ more than 310,000 people. SELECTED INVESTMENT 5,789 With 208 job-creating investments recorded PROJECTS IN 2017 jobs in France in 2017, the number of German (Business France) projects rose 9% from 2016, creating or MSG Krandienst: This family-run SME maintaining 5,789 jobs (up 22% year-on-year). provides transport and heavy lifting equipment Investments by German companies in for major construction projects. After carefully France were made primarily in production/ examining all its options, the company decided manufacturing operations (27%), accounting to set up a subsidiary in France, creating 20 for more than half of all jobs created by jobs in Alsace (Grand Est region). STOCK German investment during the year (55%); This global services company is in all, Germany accounted for 16% of foreign Arvato: a leading European provider of logistics investments in production/manufacturing solutions. As a result of an exclusive agreement More than operations in France in 2017 (and 20% of jobs on behalf of the Zalando group seeking a generated). 4,500 distribution solution for its products in the companies Sector-wise, three areas led the way – Paris region, Arvato decided to set up a wholesale/retail (17%), the automotive logistics center in Ile de France (Paris region), in France industry (12%), and machinery/mechanical (Eurostat) creating 150 jobs. equipment (11%) – and together they accounted for 60% of all jobs created or Josef Jenniges GmbH: This SME from More than maintained by German investment. German Wuppertal, specializing in the distribution of projects made up 33% of foreign investments fresh produce, decided to set up operations 310,000 in the automotive industry (and 37% of jobs in France with a 14,500-sq. m. logistics employees generated), 25% of projects and 39% of jobs in center in Etampes, south of Paris (Ile de (Eurostat) the machinery/mechanical equipment sector, France region), creating 64 jobs to deliver and 32% of projects and 30% of jobs in the its products throughout France seven days energy industry. a week. €60.5 billion FDI stock in France1 TOP 5 GERMAN COMPANIES 5th place BY EMPLOYMENT IN FRANCE (Banque de France) Parent company Workforce Main business sector in France €68.6 LIDL Wholesale and retail 20,000-25,000 billion FAMILIEN PORSCHE/PIECH Automotive industry 10,000-15,000 French exports 1st place ALLIANZ SE Financial services, banking and insurance 10,000-15,000 (French Customs Authorities) Transport, storage DEUTSCHE POST AG 10,000-15,000 Other services Consulting, engineering BERTELSMANN STIFTUNG and business services 10,000-15,000 51 Other services companies in the Forbes 2000 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €73.9 billion. 2 Business France Europe Observatory. Sartorius: This group headquartered BREAKDOWN OF PROJECTS in Göttingen specializes in producing consumables for the pharmaceutical BY BUSINESS ACTIVITY industry. Sartorius decided to significantly NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) increase R&D capacity at its impressively Business activity Projects Jobs Projects Jobs Projects Jobs large production facility near Aubagne, just Decision-making centers 35 389 17% 7% 10% 9% outside Marseille (Provence-Alpes-Côte d’Azur region) by hiring 200 new employees, First-time investments 30 288 14% 5% 10% 9% 80 of whom will work in research positions. Global / 1 2 0.5% 0.03% 3% 1% European headquarters

French headquarters 4 99 2% 2% 11% 14%

Logistics 15 855 7% 15% 24% 28%

Retail outlets 38 376 18% 6% 30% 20%

Production / Manufacturing 56 3,207 27% 55% 16% 20%

R&D, engineering, design 10 277 5% 5% 8% 12%

R&D 5 112 2% 2% 6% 8%

Business services 48 642 23% 11% 19% 13%

Consumer services 6 43 3% 1% 19% 4%

Total 208 5,789 100% 100% 16% 17%

* Share of German investments in the total number of investments in each business activity. Key: In 2017, 27% of German investments in France were in production/manufacturing; 16% of foreign investments in this area were made by German companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs Wholesale and retail 36 708 17% 12% 36% 27%

Automotive industry 24 1,384 12% 24% 33% 37%

Machinery and mechanical equipment 22 1,412 11% 24% 25% 39%

Energy, recycling, other concessions 17 223 8% 4% 32% 30%

Software and IT services 17 162 8% 3% 9% 5%

Consulting, engineering and business services 14 391 7% 7% 12% 16%

Transport, storage 9 186 4% 3% 17% 16%

Chemicals, plastics 9 122 4% 2% 16% 8%

Electrical/electronic/IT equipment 9 116 4% 2% 16% 15%

Textiles, industrial textiles, clothing and accessories 9 70 4% 1% 15% 7%

Construction, building materials 8 100 4% 2% 22% 2%

Metals, metalworking 5 251 2% 4% 12% 9%

Consumer electronics 5 35 2% 1% 36% 13%

Furnishings, household goods 4 88 2% 2% 13% 24%

Medical/surgical equipment, diagnostics and devices 4 51 2% 1% 13% 11%

Other services 4 35 2% 1% 13% 12%

Pharmaceuticals and biotechnologies 3 325 1% 6% 11% 42%

Aerospace, naval and railway equipment 2 45 1% 1% 6% 3%

Agri-food, agriculture, fishing 2 40 1% 1% 3% 2%

Glass, ceramics, minerals, wood, paper 2 30 1% 1% 5% 3%

Financial services, banking and insurance 1 10 0.5% 0.2% 3% 2%

Electronic components 1 3 0.5% 0.1% 20% 5%

Hospitality, tourism and restaurants 1 2 0.5% 0.03% 6% 0.2%

Total 208 5,789 100% 100% 16% 17%

* Share of German investments in the total number of investments in each business sector. Key: In 2017, 17% of German investments in France were in the wholesale/retail sector; 36% of foreign investments in this sector were made by German companies.

Business France - 2017 Annual Report INVEST Latin American2 investment in France was very buoyant in 2017, with 22 projects SELECTED INVESTMENT creating or maintaining PROJECTS IN 2017 ZaveApp: This Mexican FinTech startup LATIN 136 jobs (+53%). offers virtual piggy bank services for smartphones. Being named a French Tech AMERICA Ticket winner in 2017 enabled it to create LATIN AMERICAN COMPANIES a subsidiary in France. To continue its IN FRANCE expansion, ZaveApp has joined the Station F incubator in Paris (Ile de France region) FLOW There are around a hundred Latin American and intends to create 10 jobs over the next companies operating in France, where they three years. employ around 5,700 people. Sislor: This Brazilian engineering company Twenty-two new job-creating Latin American specializing in designing and developing 22 investments were recorded in 2017, creating technologies used in household waste projects or maintaining 136 jobs, with most projects (Business France) reverse logistics opened its first plant in coming from Brazil (14) and Mexico (7). Rouen (Normandy region), creating 10 jobs These investments were made predominantly initially. 136 in decision-making centers (64% of projects jobs and 70% of jobs generated), which included MJV: Brazilian consulting firm MJV (Business France) two new Global or European headquarters. specializes in business, technology and digital Sector-wise, they were mainly split between transformation for innovative solutions, and the software/IT services (18% of projects), originally supported its European customers consulting/engineering/business services from London. Post-Brexit, the company (18%), and perfumes/cosmetics (14%) decided to open an office in Paris (Ile de sectors, and were most often located in Ile France region) to reposition its operations, STOCK de France (Paris region) (36% of projects; transferring one position and now due to hire 58% of jobs). around ten new employees. LATIN AMERICAN Opuntia: This Mexican cosmetics company INVESTMENTS IN EUROPE produces prickly pears for cosmetology applications and other finished products 100 In 2017, Portugal and Spain were the leading (vinegar and juice). It created a subsidiary companies European recipients of Latin American in France to position itself upstream of the in France investments, attracting 30% and 27%, sector, creating three new jobs initially. The (Orbis) respectively, of Latin American projects in French facility packages seeds extracted Europe, while the United Kingdom received from fruits grown in Mexico. A second phase 11% and France 8%.3 of the project will involve R&D. 5,700 employees (Orbis) TOP 5 LATIN AMERICAN COMPANIES BY EMPLOYMENT IN FRANCE

€1.4 Parent company Main business sector Workforce billion in France FDI stock in France1 CEMEX (Mexico) Construction, building materials 2,000 (Banque de France)

VALE S.A. (Brazil) Metals, metalworking 1,400-1,500

€11.3 Construction, building materials SIGDO KOPPERS (Chile) Metals, metalworking 500-600 billion Transport, storage French exports (French Customs Authorities) NATURA COSMETICOS (Brazil) Perfumes, cosmetics 400

56 MEXICHEM (WAVIN) (Mexico) Chemicals, plastics 300-400 companies in the Forbes 2000 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €1.8 billion. 2 Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Ecuador, Guatemala, Guyana, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela. 3 Business France Europe Observatory. BREAKDOWN OF PROJECTS BY SOURCE COUNTRY NUMBER

Source country Projects Jobs

Brazil 14 79

Mexico 7 47

Colombia 1 10

Total 22 136

BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 14 95 64% 70% 4% 2%

First-time investments 12 80 55% 59% 4% 3%

Global / European headquarters 2 15 9% 11% 7% 4%

Logistics 1 12 5% 9% 2% 0,4%

Retail outlets 2 7 9% 5% 2% 0,4%

Production / Manufacturing 3 12 14% 9% 1% 0.1%

R&D, engineering, design 2 10 9% 7% 2% 0.4%

R&D 2 10 9% 7% 2% 1%

Total 22 136 100% 100% 2% 0.4%

* Share of Latin American investments in the total number of investments in each business activity. Key: In 2017, 64% of Latin American investments in France were in decision-making centers; 4% of foreign investments in this area were made by Latin American companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Software and IT services 4 25 18% 18% 2% 1%

Consulting, engineering and business services 4 23 18% 17% 3% 1%

Perfumes, cosmetics 3 19 14% 14% 12% 7%

Other services 3 9 14% 7% 10% 3%

Transport, storage 1 15 5% 11% 2% 1%

Energy, recycling, other concessions 1 10 5% 7% 2% 1%

Financial services, banking and insurance 1 10 5% 7% 3% 2%

Textiles, industrial textiles, clothing and accessories 1 8 5% 6% 2% 1%

Medical/surgical equipment, diagnostics and devices 1 5 5% 4% 3% 1%

Pharmaceuticals and biotechnologies 1 5 5% 4% 4% 1%

Construction, building materials 1 4 5% 3% 3% 1%

Agri-food, agriculture, fishing 1 3 5% 2% 1% 0.1%

Total 22 136 100% 100% 2% 0.4%

* Share of Latin American investments in the total number of investments in each business sector. Key: In 2017, 18% of Latin American investments in France were in the software/IT services sector; 2% of foreign investments in this sector were made by Latin American companies.

Business France - 2017 Annual Report INVEST Eight investment WEST/CENTRAL AFRICAN decisions were INVESTMENTS IN EUROPE Job-creating investments in Europe from recorded in France West/Central African countries in 2017 remained limited in number; however, France from West/Central was the leading recipient, ahead of the United African countries2 Kingdom. 3 WEST/ in 2017, creating or SELECTED INVESTMENT CENTRAL AFRICA maintaining 101 jobs. PROJECTS IN 2017 Semoa: Semoa (“Service Mobile for Africa”) is a Togolese startup that has designed a WEST/CENTRAL AFRICAN payment solution adapted to the needs of sub- FLOW COMPANIES IN FRANCE Saharan Africa. It is now planning to expand its R&D work in Nantes (Pays de la Loire region) to There are more than 70 West/Central African produce a hardware unit and software module companies operating in France, where they in a project that will create 13 jobs over three 8 employ around 500 people. Eight investment years, half of them in R&D. projects decisions were recorded in France from West/ (Business France) Central African countries in 2017, creating or Zabbaan: This Malian startup has developed maintaining 101 jobs. a range of drinks containing African-sourced organic ingredients. The company’s young These investments were mostly from Ivory CEO decided to set up an international sales 101 Coast (4 projects) and Mali (2 projects), and subsidiary in Paris (Ile de France region) which jobs mainly involved decision-making centers (Business France) is set to recruit around 15 people within the (6 projects; 85 jobs) and R&D operations (2 next three years. The CEO is also going to projects; 16 jobs). create a small R&D center employing three Sector-wise, investments were mostly made people in Amiens (Hauts de France). by companies in the software/IT services (4 projects; 67 jobs) and agri-food (2 projects; 18 Yewou: This Senegalese FinTech startup STOCK jobs) industries, and were primarily located in has developed a mobile application and web- Ile de France (Paris region) (4 projects; 38 jobs). based intermediation service specializing in More than 70 TOP 5 WEST/CENTRAL AFRICAN COMPANIES companies BY EMPLOYMENT IN FRANCE in France Parent company Workforce (Orbis) Main business sector in France More than ECOBANK INTERNATIONAL (Togo) Financial services, banking and insurance 80-100

500 SIFCA (SIPH) (Ivory Coast) Agri-food, agriculture 20-50 employees (Orbis) €531 MIABOX (Ivory Coast) Software and IT services 20-50 Software and IT services million YEWOU (Senegal) 20-50 FDI stock in France1 Financial services, banking and insurance (Banque de France) ZABBAAN (Mali) Agri-food, agriculture 10-20

1 €5.4 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €395 million. billion 2 Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Chad, Congo, DR Congo, Equatorial Guinea, French exports Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Niger, Nigeria, São Tome & Principe, Senegal, (French Customs Authorities) Sierra Leone, Togo. 3 Business France Europe Observatory. transfers and other financial transactions BREAKDOWN OF PROJECTS for the African diaspora. It chose to set up an R&D center and sales office in Caen BY SOURCE COUNTRY (Normandy region), creating around twenty NUMBER jobs over the next three years. Source country Projects Jobs

Miabox: This Ivorian startup has developed Ivory Coast 4 50 a VOD and live streaming TV service specializing in African and South American Mali 2 18 content. It decided to establish a European Senegal 1 20 subsidiary in Rennes (Bretagne/Brittany Togo 1 13 region), creating around thirty jobs. Total 8 101

BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 6 85 75% 84% 2% 2% First-time investments 6 85 75% 84% 2% 3% R&D, engineering, design 2 16 25% 16% 2% 1% R&D 2 16 25% 16% 2% 1%

Total 8 101 100% 100% 1% 0.3%

* Share of West/Central African investments in the total number of investments in each business activity. Key: In 2017, 84% of West/Central African investments in France were in decision-making centers; 2% of foreign investments in this area were made by West/Central African companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Software and IT services 4 67 50% 66% 2% 2% Agri-food, agriculture, fishing 2 18 25% 18% 3% 1% Financial services, banking and insurance 1 13 13% 13% 3% 2% Other services 1 3 13% 3% 3% 1%

Total 8 101 100% 100% 1% 0.3%

* Share of West/Central African investments in the total number of investments in each business sector. Key: In 2017, 50% of West/Central African investments in France were in the software/IT services sector; 2% of foreign investments in this sector were made by West/Central African companies.

Business France - 2017 Annual Report INVEST Thirteen investment decisions were

recorded in France ASEAN+NZ INVESTMENTS from ASEAN member IN EUROPE countries2 and In 2017, the United Kingdom was the leading European recipient of job-creating investment New Zealand in from ASEAN member countries and New ASEAN+NZ Zealand, attracting 27% of ASEAN+NZ projects 2017, creating or in Europe, followed by the Netherlands (18%) maintaining 360 jobs. and Ireland (14%).3

FLOW SELECTED INVESTMENT ASEAN+NZ COMPANIES PROJECTS IN 2017 IN FRANCE H3 Dynamics: This Singapore-based group specializes in telerobotics and hydrogen cells. There are around 150 companies from 13 H3 Dynamics decided to set up its European ASEAN member countries and New Zealand projects headquarters in Paris, together with an R&D (Business France) operating in France, where they employ more center to develop a data analysis platform, than 3,900 people. creating 35 jobs, including around twenty in Thirteen investments from Singapore, R&D. 360 Thailand and New Zealand were confirmed jobs in 2017, creating or maintaining 360 jobs. Upskills: Based in Singapore, Upskills (Business France) offers expert software consultancy services Investments from ASEAN member countries for the financial sector. In 2017, it decided to and New Zealand in 2017 involved decision- open a global R&D center in France, while making centers (7 projects), R&D activities maintaining its headquarters in Asia. The (3 projects) and production/manufacturing project is expected to create around thirty operations (2 projects and 67% of jobs jobs, mainly in R&D. STOCK generated). Sector-wise, investments were made Indorama Ventures: This leading Thai primarily in software/IT services (23%), with petrochemical leading producer acquired nearly two-thirds of jobs recorded being Durafiber Technologies, a producer of durable saved through a chemicals/plastics sector technical textiles for industrial applications and 150 project by Indorama (Thailand) in the Grand tire reinforcement. The acquisition of the site in companies Est region, while others were mostly located Longlaville (Grand Est region) saved 224 jobs in France in Ile de France (Paris region) (46%) and through an immediate €20 million investment (Orbis) Provence-Alpes-Côte d’Azur (23%). plan to make the plant Industry 4.0 ready.

TOP 5 ASEAN+NZ COMPANIES 3,900 BY EMPLOYMENT IN FRANCE employees (Orbis) Parent company Workforce Main business sector in France

DORCHESTER COLLECTION (BIA) Hospitality, tourism and restaurants 900-1,000 €3.9 (PLAZA ATHENEE) (Brunei)

billion CAPITALAND LTD. (CITADINES) Other services 600-700 FDI stock in France1 (Singapore) (Banque de France) PTT GLOBAL CHEMICAL (VENCOREX) Chemicals, plastics 600-700 (Thailand) €16.6 billion SINAR MAS GROUP (Indonesia) Glass, ceramics, minerals, wood, paper 600-700 French exports (French Customs Authorities) THAI UNION GROUP (Thailand) Agri-food, agriculture, fishing 600-700

63 1 FDI stock in France (immediate investor) as of December 31, 2016. companies FDI stock by ultimate investor as of December 31, 2015 was €6 billion. 2 ASEAN member countries: Burma, Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam. in the Forbes 2000 3 Business France Europe Observatory. Novade Solutions: This Singapore- BREAKDOWN OF PROJECTS based technology startup specializing in digitization for the building and construction BY SOURCE COUNTRY industry chose Aix-en-Provence (Provence- NUMBER Alpes-Côte d’Azur region) as the location for its European headquarters and R&D center, Source country Projects Jobs creating around fifteen jobs. Singapore 8 122

Thailand 4 236

New Zealand 1 2

Total 13 360

BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business activity Projects Jobs Projects Jobs Projects Jobs Decision-making centers 7 67 54% 19% 2% 2%

First-time investments 4 32 31% 9% 1% 1%

Global / European headquarters 3 35 23% 10% 10% 10%

Production / Manufacturing 2 241 15% 67% 1% 1%

R&D, engineering, design 3 50 23% 14% 2% 2%

R&D 3 50 23% 14% 4% 3%

Business services 1 2 8% 1% 0.4% 0.04%

Total 13 360 100% 100% 1% 1%

* Share of ASEAN+NZ investments in the total number of investments in each business activity. Key: In 2017, 54% of ASEAN+NZ investments in France were in decision-making centers; 2% of foreign investments in this area were made by ASEAN+NZ companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs Software and IT services 3 45 23% 13% 2% 1%

Electrical/electronic/IT equipment 2 35 15% 10% 4% 5%

Other services 2 25 15% 7% 7% 9%

Machinery and mechanical equipment 2 22 15% 6% 2% 1%

Chemicals, plastics 1 224 8% 62% 2% 15%

Agri-food, agriculture, fishing 1 5 8% 1% 1% 0.2%

Perfumes, cosmetics 1 2 8% 1% 4% 1%

Financial services, banking and insurance 1 2 8% 1% 3% 0.4%

Total 13 360 100% 100% 1% 1%

* Share of ASEAN+NZ investments in the total number of investments in each business sector. Key: In 2017, 23% ASEAN+NZ investments in France were in the software/IT services sector; 2% of foreign investments in this sector were made by ASEAN+NZ companies.

Business France - 2017 Annual Report INVEST Seven Australian investments were recorded in France in 2017, creating or

maintaining 62 jobs. SELECTED INVESTMENT AUSTRALIA PROJECTS IN 2017 AUSTRALIAN COMPANIES AdvanceTC Limited: This smartphone and IN FRANCE tablet designer and manufacturer decided to locate its first European decision-making There are around 300 Australian companies center in France. Based in Paris, the new operating in France, where they employ subsidiary, known as AdvanceTC Cilicon SAS, FLOW 40,000 people. will have a workforce of around 40 people and Seven Australian investments were recorded focus on industrial design development and in France in 2017, creating or maintaining 62 technological innovation. jobs. 7 Award Force: With offices already projects These investment decisions mainly involved established in Canada and the United (Business France) decision-making centers (4 projects) and Kingdom, this Australian company has R&D activities (2 projects), while sector- developed a SaaS solution for managing wise the electrical/electronic/IT equipment programs such as awards, competitions, 62 (2 projects) and software/IT services (2 challenges, calls for projects, etc. In 2017, it jobs projects) sectors both stood out. chose Lyon (Auvergne-Rhône-Alpes region) (Business France) Investments were made in several regions, as the location for its first French decision- particularly Occitanie (3 projects). making center, creating around ten jobs. Signature Orthopaedics: This Australian AUSTRALIAN INVESTMENTS company, which makes medical prostheses IN EUROPE for orthopedic and trauma surgery, decided STOCK to set up its first French office in Castres In 2017, the United Kingdom was the (Occitanie region). The new subsidiary will leading European recipient of job-creating have two employees. Already present in More than investment from Australia, attracting 39% the United States and Ireland, Signature of Australian projects in Europe, followed Orthopaedics now plans to expand its 300 by Ireland (14%), and France (11%).2 European business from France. companies in France (Orbis) TOP 5 AUSTRALIAN COMPANIES BY EMPLOYMENT IN FRANCE More than Parent company Workforce 30,000 Main business sector in France employees (Orbis) RAMSAY HEALTH CARE LTD. Other services 22,000

Glass, ceramics, minerals, wood, paper AMCOR LTD. 300-500 €1.1 Chemicals, plastics billion 1 FDI stock in France DOMINO’S PIZZA ENTERPRISES Hospitality, tourism and restaurants 200-500 24th place (Banque de France) BRAMBLES LTD. Transport, storage 200-500 €2.6 billion NUFARM Chemicals, plastics 100-300 French exports 1 FDI stock in France (immediate investor) as of December 31, 2016. 35th place FDI stock by ultimate investor as of December 31, 2015 was €3.7 billion. (French Customs Authorities) 2 Business France Europe Observatory. 39 companies in the Forbes 2000 BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business activity Projects Jobs Projects Jobs Projects Jobs Decision-making centers 4 53 57% 85% 1% 1%

First-time investments 4 53 57% 85% 1% 2%

R&D, engineering, design 2 4 29% 6% 2% 0.2%

R&D 2 4 29% 6% 2% 0.3%

Business services 1 5 14% 8% 0% 0.1%

Total 7 62 100% 100% 1% 0.2%

* Share of Australian investments in the total number of investments in each business activity. Key: In 2017, 57% of Australian investments in France were in decision-making centers; 1% of foreign investments in this area were made by Australian companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs Electrical/electronic/IT equipment 2 42 29% 68% 4% 6%

Software and IT services 2 12 29% 19% 1% 0.4%

Energy, recycling, other concessions 1 5 14% 8% 2% 1%

Medical/surgical equipment, diagnostics and devices 1 2 14% 3% 3% 0.4%

Machinery and mechanical equipment 1 1 14% 2% 1% 0.03%

Total 7 62 100% 100% 1% 0.2%

* Share of Australian investments in the total number of investments in each business sector. Key: In 2017, 29% of Australian investments in France were in the electrical/electronic/IT equipment sector; 4% of foreign investments in this sector were made by Australian companies.

Business France - 2017 Annual Report INVEST Twenty Austrian

investments were AUSTRIAN INVESTMENTS recorded in France IN EUROPE In 2017, Austrian investments in Europe in 2017, creating or mostly went to Germany (31%) and Hungary maintaining 508 jobs (14%). The Czech Republic and Poland each attracted 7%, while France received 6%, AUSTRIA (+64%). as did the United Kingdom, Slovenia and Romania.2

AUSTRIAN COMPANIES SELECTED INVESTMENT IN FRANCE PROJECTS IN 2017 FLOW There are around 250 Austrian companies Fritz Egger: This family-run group operating operating in France, where they employ in the timber industry makes and markets more than 11,100 people. wood-derivative products for furniture and Twenty investments from Austria were interior fittings. It has two production facilities 20 recorded in 2017, creating or maintaining in France, one in Rambervillers in the Vosges projects 508 jobs. (Business France) (Grand Est region) and the other in Rion- Austrian companies invested primarily in des-Landes (Aquitaine region). To maintain production/manufacturing (55% of projects; its position in France, it decided to increase 508 82% of jobs) and business services (25% of investment in its two plants and hire around jobs projects). fifty new employees. (Business France) Sector-wise, Austrian investments were AVL List: AVL List is the world’s leading concentrated in glass/ceramics/minerals/ producer of development and test solutions wood/paper (20% of projects; 61% of jobs), for the powertrain systems of internal machinery/mechanical equipment (20% of combustion, hybrid and electric engines, projects) and the automotive industry (20%). including test benches for batteries and These investments were most often located fuel cells. The group has recorded excellent STOCK in Ile de France (Paris region) (30% of growth in France over the last few years and projects), followed by Hauts de France (20% decided to increase its workforce in 2017, of projects; 50% of jobs) and Auvergne- creating around twenty jobs in the Paris Rhône-Alpes (20% of projects). region. 250 companies TOP 5 AUSTRIAN COMPANIES in France (Eurostat) BY EMPLOYMENT IN FRANCE Parent company Workforce More than Main business sector in France 11,100 BOREALIS AG Chemicals, plastics 900 employees (Eurostat)

WIENERBERGER AG Construction, building materials 800-900 €3.1 billion FRITZ EGGER GMBH & CO. Glass, ceramics, minerals, wood, paper 800-900 FDI stock in France1 18th place MAGNA EUROPE AG Automotive industry 700 (Banque de France) €3.9 ANDRITZ AG Machinery and mechanical equipment 600-700 billion 1 FDI stock in France (immediate investor) as of December 31, 2016. French exports FDI stock by ultimate investor as of December 31, 2015 was €1.7 billion. 2 Business France Europe Observatory. 25th place (French Customs Authorities) 8 companies in the Forbes 2000 Salzburger Aluminium: Salzburger BREAKDOWN OF PROJECTS Aluminium is the leading European producer of gas tanks for heavy goods vehicles. It also BY BUSINESS ACTIVITY develops and produces highly technical parts NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) using metal deformation technology. SAG France is located in L’Horme, near Saint- Business activity Projects Jobs Projects Jobs Projects Jobs Etienne (Auvergne-Rhône-Alpes region), Decision-making centers 2 31 10% 6% 1% 1% where its 14,000-sq. m. production facility makes aluminum, steel and stainless-steel First-time investments 2 31 10% 6% 1% 1% parts. Expanding this site will create around Production / Manufacturing 11 416 55% 82% 3% 3% ten new jobs. R&D, engineering, design 2 20 10% 4% 2% 1% R&D 2 20 10% 4% 2% 1% Business services 5 41 25% 8% 2% 1%

Total 20 508 100% 100% 2% 2%

* Share of Austrian investments in the total number of investments in each business activity. Key: In 2017, 55% of Austrian investments in France were in production/manufacturing; 3% of foreign investments in this area were made by Austrian companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Glass, ceramics, minerals, wood, paper 4 311 20% 61% 11% 31%

Machinery and mechanical equipment 4 46 20% 9% 5% 1%

Automotive industry 4 34 20% 7% 6% 1%

Construction, building materials 2 42 10% 8% 6% 9%

Energy, recycling, other concessions 2 20 10% 4% 4% 3%

Perfumes, cosmetics 1 25 5% 5% 4% 9%

Agri-food, agriculture, fishing 1 10 5% 2% 1% 0.4%

Aerospace, naval and railway equipment 1 10 5% 2% 3% 1%

Transport, storage 1 10 5% 2% 2% 1%

Total 20 508 100% 100% 2% 2%

* Share of Austrian investments in the total number of investments in each business sector. Key: In 2017, 20% of Austrian investments in France were in the glass/ceramics/minerals/wood/paper sector; 11% of foreign investments in this sector were made by Austrian companies.

Business France - 2017 Annual Report INVEST Belgium was the fourth

leading European BELGIAN INVESTMENTS investor in France in IN EUROPE 2017, accounting for 62 In 2017, France was the leading European recipient of job-creating investment from projects that created or Belgium, attracting 58% of Belgian projects in Europe, followed by Poland (9%), the United BELGIUM maintained 1,827 jobs Kingdom (9%) and Germany (7%).2 (+146%). SELECTED INVESTMENT PROJECTS IN 2017 BELGIAN COMPANIES Keyware: Belgian company Keyware is one FLOW IN FRANCE of the largest suppliers of electronic payment There are over 3,200 Belgian companies solutions, loyalty programs and identity operating in France, where they employ applications. After acquiring a 40% stake in around 134,000 people. French technology company Magellan SAS, 62 based in Lyon, it now owns the firm in its Sixty-two investments from Belgium were projects entirety and intends to expand the workforce. (Business France) recorded in 2017, creating or maintaining 1,827 jobs. Delmar: French company Betsinor, Belgian investments in 2017 were made specializing in producing cement-matrix 1,827 primarily in production/manufacturing structures, was acquired by Belgian group jobs operations (40% of projects; 71% of jobs), Delmar (Comines), which makes pre-cast (Business France) business services (24% of projects) and concrete structures. After Betsinor was put decision-making centers (19% of projects). into liquidation in early 2017, the company and 31 of its 55 employees were saved by this The leading sectors were consulting/ acquisition, with a diversification strategy to engineering/business services (16% of ensure the sustainability of the business. projects), agri-food (13%) and software/IT STOCK services (13%), while more than 800 jobs were The Biotech Quality Group: This Belgian generated in the metals sector (45% of all jobs consulting firm specializes in improving created or maintained by Belgian projects). performance in the biopharmaceutical More than Belgian firms mainly invested in Ile de France and medical devices industries. In 2017, (Paris region) (23% of projects; 51% of jobs), it announced that it would be opening a 3,200 Hauts de France (18% of projects) and Grand subsidiary in France, creating around twenty companies Est (13% of projects). jobs. in France (Eurostat) TOP 5 BELGIAN COMPANIES More than BY EMPLOYMENT IN FRANCE

134,000 Parent company Main business sector Workforce employees (Eurostat) in France Wholesale and retail GROUPE LOUIS DELHAIZE (CORA) 15,000-20,000 €54.3 Agri-food billion ECONOCOM Software and IT services 6,000-7,000 FDI stock in France1

6th place SOLVAY SA Wholesale and retail 6,000 (Banque de France) €32.1 D'IETEREN NV/SA (CARGLASS) Automotive industry 3,000

billion SAFINCO (VANDEMOORTELE) Agri-food 1,000-1,500 French exports 5th place (French Customs Authorities) 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €40.8 billion. 2 Business France Europe Observatory. 9 companies in the Forbes 2000 X-Fab Silicon Foundries: After being BREAKDOWN OF PROJECTS put into liquidation in August 2016, semiconductor manufacturer Altis (Corbeil- BY BUSINESS ACTIVITY Essonnes) was acquired by X-FAB, a NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) European semiconductor foundry. The Business activity Projects Jobs Projects Jobs Projects Jobs X-FAB project intends to safeguard the jobs of 800 employees over the next five years, Decision-making centers 12 173 19% 9% 3% 4% underpinned by a €100 million investment First-time investments 12 173 19% 9% 4% 6% program over the coming decade. Logistics 2 25 3% 1% 3% 1%

Retail outlets 3 85 5% 5% 2% 5%

Production / Manufacturing 25 1,304 40% 71% 7% 8%

R&D, engineering, design 4 27 6% 1% 3% 1%

R&D 1 2 2% 0.1% 1% 0.1%

Business services 15 203 24% 11% 6% 4%

Consumer services 1 10 2% 1% 3% 1%

Total 62 1,827 100% 100% 5% 5%

* Share of Belgian investments in the total number of investments in each business activity. Key: In 2017, 40% of Belgian investments in France were in production/manufacturing; 7% of foreign investments in this area were made by Belgian companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Consulting, engineering and business services 10 95 16% 5% 8% 4%

Agri-food, agriculture, fishing 8 144 13% 8% 11% 6%

Software and IT services 8 107 13% 6% 4% 3%

Chemicals, plastics 7 177 11% 10% 13% 12%

Construction, building materials 6 71 10% 4% 17% 15%

Metals, metalworking 3 814 5% 45% 7% 30%

Glass, ceramics, minerals, wood, paper 3 130 5% 7% 8% 13%

Machinery and mechanical equipment 3 41 5% 2% 3% 1%

Wholesale and retail 2 85 3% 5% 2% 3%

Transport, storage 2 23 3% 1% 4% 2%

Energy, recycling, other concessions 2 15 3% 1% 4% 2%

Financial services, banking and insurance 2 14 3% 1% 6% 3%

Hospitality, tourism and restaurants 1 62 2% 3% 6% 8%

Furnishings, household goods 1 15 2% 1% 3% 4%

Other services 1 10 2% 1% 3% 4%

Medical/surgical equipment, diagnostics and devices 1 10 2% 1% 3% 2%

Textiles, industrial textiles, clothing and accessories 1 10 2% 1% 2% 1%

Media, publishing 1 4 2% 0.2% 25% 14%

Total 62 1,827 100% 100% 5% 5%

* Share of Belgian investments in the total number of investments in each business sector. Key: In 2017, 16% of Belgian investments in France were in the consulting/engineering/business services sector; 8% of foreign investments in this sector were made by Belgian companies.

Business France - 2017 Annual Report INVEST Canadian investments in France were up 23% in 2017, taking in sectors including CANADIAN INVESTMENTS IN EUROPE the digital economy, In 2017, France was the leading European recipient of job-creating investment from CANADA consulting/engineering/ Canada, attracting 29% of Canadian projects business services, in Europe, ahead of the United Kingdom (25%) and Germany (12%).2 renewable energy, and industry. SELECTED INVESTMENT FLOW PROJECTS IN 2017 CGI (Montréal, Québec): This leading CANADIAN COMPANIES IT and business process services firm, and 56 IN FRANCE Canada’s leading investor in France, hired more than 1,000 people across the country projects There are around 200 Canadian firms (Business France) in 2017. It also chose Lyon (Auvergne- operating in France, where they employ Rhône-Alpes region) as the location for a more than 28,000 people. In 2017, there were global center of excellence for supply chain 56 investments from Canada, up 23% year- 1,616 digitization. jobs on-year, creating or maintaining 1,616 jobs. (Business France) Investments in business services accounted Enbridge (Calgary, Alberta): Enbridge for one-third of all Canadian projects in operates oil and gas pipelines and also France, while another 29% were in decision- produces wind energy. In 2017, it agreed to making centers, of which 75% were first-time a €191 million investment with EDF Énergies investments in the country. A further 20% Nouvelles to develop three wind farms were in R&D, and another 16% in production/ in Seine-Maritime, Loire-Atlantique and STOCK manufacturing. Calvados (Normandy region). A dedicated project management team will be based in Sector-wise, software and IT services and Paris’ La Défense business district. consulting/engineering/business services More than led the way, each accounting for 20% of Premier Tech (Rivière du Loup, Québec): Canadian projects in France, with a fairly Premier Tech specializes in on-site wastewater 200 even split in Canadian investment between treatment, products for the horticulture and companies the manufacturing and services sectors (52% agriculture industries, and food packaging in France and 48%, respectively). equipment, employing 4,100 people around (Orbis) Auvergne-Rhône-Alpes (23%) and Ile de the world, including 350 in France. In 2017, its France (Paris region) (21%) were the main Water/Environment division announced the More than recipients of Canadian investments, followed creation of 40 jobs in the Auvergne-Rhône- 28,000 by Occitanie and Grand Est (11% each). Alpes and Pays de la Loire regions. employees (Orbis) TOP 6 CANADIAN COMPANIES €3.8 BY EMPLOYMENT IN FRANCE Parent company Workforce billion Main business sector in France 1 FDI stock in France CGI Software and IT services 11,000 17th place (Banque de France) ONTARIO TEACHERS PENSION PLAN* Financial services 6,000

POWER CORP – DESMARAIS (SAGARD)* Financial services 2,000

€3.2 BOMBARDIER INC. Aerospace, naval and railway equipment 1,600 billion French exports LINAMAR CORPORATION Metals, metalworking 1,400 30th place MCCAIN FOODS GROUP INC. Agri-food, agriculture, fishing 1,100 (French Customs Authorities)

* Investment funds. 1 FDI stock in France (immediate investor) as of December 31, 2016. 58 FDI stock by ultimate investor as of December 31, 2015 was €5.6 billion. companies 2 Business France Europe Observatory. in the Forbes 2000 Colliers International (Toronto, BREAKDOWN OF PROJECTS Ontario): This commercial real estate services company has operated in major BY BUSINESS ACTIVITY cities across France since acquiring the NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) AOS group in 2014. It plans to set up a new Business activity Projects Jobs Projects Jobs Projects Jobs hub and boost sales in 2018, with 20 jobs to be created at its headquarters in Levallois- Decision-making centers 16 149 29% 9% 4% 4% Perret, Ile de France (Paris region). First-time investments 12 62 21% 4% 4% 2% Global / European 2 35 4% 2% 7% 10% headquarters

French headquarters 2 52 4% 3% 5% 7%

Production / Manufacturing 9 180 16% 11% 3% 1%

R&D, engineering, design 11 155 20% 10% 9% 7%

R&D 6 126 11% 8% 7% 9%

Business services 19 1,112 34% 69% 8% 23%

Consumer services 1 20 2% 1% 3% 2%

Total 56 1,616 100% 100% 4% 5%

* Share of Canadian investments in the total number of investments in each business activity. Key: In 2017, 29% of Canadian investments in France were in decision-making centers; 4% of foreign investments in this area were made by Canadian companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Software and IT services 11 788 20% 49% 6% 24%

Consulting, engineering and business services 11 376 20% 23% 9% 15%

Energy, recycling, other concessions 9 88 16% 5% 17% 12%

Agri-food, agriculture, fishing 5 70 9% 4% 7% 3%

Electrical/electronic/IT equipment 4 65 7% 4% 7% 9%

Automotive industry 3 98 5% 6% 4% 3%

Machinery and mechanical equipment 2 52 4% 3% 2% 1%

Medical/surgical equipment, diagnostics and devices 2 9 4% 1% 6% 2%

Pharmaceuticals and biotechnologies 2 6 4% 0% 7% 1%

Hospitality, tourism and restaurants 1 20 2% 1% 6% 2%

Glass, ceramics, minerals, wood, paper 1 12 2% 1% 3% 1%

Chemicals, plastics 1 10 2% 1% 2% 1%

Media, publishing 1 10 2% 1% 25% 34%

Other services 1 8 2% 0% 3% 3%

Financial services, banking and insurance 1 3 2% 0% 3% 1%

Transport, storage 1 1 2% 0% 2% 0.1%

Total 56 1,616 100% 100% 4% 5%

* Share of Canadian investments in the total number of investments in each business sector. Key: In 2017, 20% of Canadian investments in France were in the software/IT services sector; 6% of foreign investments in this sector were made by Canadian companies.

Business France - 2017 Annual Report INVEST China was the joint leading Asian investor in France in 2017, along with Japan. The number of CHINA Chinese investments rose sharply CHINESE INVESTMENTS (+27%), creating or IN EUROPE maintaining more than In 2017, the leading European recipients of FLOW job-creating investment from China and 2,200 jobs (+63%). Hong Kong were Germany (23% of projects), the United Kingdom (15%) and France (13%).3 * 65 (11) CHINESE COMPANIES projects IN FRANCE SELECTED INVESTMENT (Business France) There are over 600 companies from mainland PROJECTS IN 2017 China and Hong Kong operating in France, Chow Tai Fook Enterprises: The hotel 2,234 (299) where they employ more than 31,000 people. division of Hong Kong-based Chow Tai jobs Fook Enterprises, Rosewood Hotel Group, (Business France) Sixty-five investments from China and Hong Kong were recorded in 2017, creating reopened its luxurious Hôtel de Crillon, or maintaining 2,234 jobs. Eleven of these following a four-year renovation. The projects were from Hong Kong. reopening saw the group hire a further 200 people, bringing the total number of Chinese and Hong Kong companies invested employees at the hotel to 370. primarily in decision-making centers (49% of STOCK projects), including five Global or European BYD: The Shenzhen-based firm and global headquarters, and production/manufacturing leader in electric buses and batteries BYD operations (28%). Production/manufacturing (Build Your Dreams) chose Allonne, just More than projects alone created or maintained 1,472 outside Beauvais (Hauts de France region), jobs (66% of all jobs generated by Chinese as the location for its first electric bus 600 investments). assembly facility in western Europe. This companies investment is expected to create up to 400 in France The most popular sectors for Chinese investors jobs. . (Orbis) were the automotive industry (11% of projects; nearly 1,000 jobs) and textiles (9% of projects), JD.com: The Chinese e-commerce giant while more than half of Chinese investments opened offices in Paris to support the sale More than in France were made in Ile de France (Paris of French products on one of China’s leading region) (52%), followed by Auvergne-Rhône- e-commerce websites, creating around a 31,000 Alpes (12%). dozen jobs. employees (Orbis)

TOP 5 CHINESE AND HONG KONG COMPANIES €6 (3.2)1 billion BY EMPLOYMENT IN FRANCE 1 FDI stock in France Parent company Main business sector Workforce 12th place in France JINJIANG INTERNATIONAL (LOUVRE (Banque de France) Hospitality, tourism 5,000-10,000 HOTELS GROUP) (China)

CK HUTCHISON HOLDINGS (MARION- Wholesale and retail 3,500-4,000 €25.1 (6.3) NAUD) (Hong Kong) CHINA NATIONAL CHEMICAL CORP. Chemicals, plastics 2,000-2,500 billion (CHEMCHINA ; SYNGENTA) (China) French exports YANTAI TAIHAI (MANOIR INDUSTRIES) Metals, metalworking 1,000-2,000 7th place (China) (French Customs Authorities) Financial services, banking and insurance FOSUN INTERNATIONAL Hospitality, tourism 1,000-1,500 (CLUB MED) (Hong Kong) 263 (62) Pharmaceuticals and biotechnologies companies * Data relating to investments from Hong Kong appear in parentheses; 65 investment projects from China, in the Forbes 2000 including 11 from Hong Kong. 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €8.9 billion. 2 Business France Europe Observatory. MinYoun Group: This Chinese hotel BREAKDOWN OF PROJECTS and real estate group, founded in 2001 in Chengdu, south-west China, acquired an BY BUSINESS ACTIVITY approximately 20,800-sq. m. building in NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Bagnolet, Ile de France (Paris region). The Business activity Projects Jobs Projects Jobs Projects Jobs Chinese group’s €30 million investment will see the office block transformed into a four- Decision-making centers 32 (5) 410 49% 18% 9% 10% star hotel, creating around 50 jobs. First-time investments 20 (4) 231 31% 10% 7% 7%

Global / European headquarters 5 (1) 60 8% 3% 17% 17%

French headquarters 7 119 11% 5% 19% 17%

Logistics 1 10 2% 0.4% 2% 0.3%

Retail outlets 1 (1) 10 2% 0.4% 1% 1%

Production / Manufacturing 18 (2) 1,472 28% 66% 5% 9%

R&D, engineering, design 3 (1) 25 5% 1% 2% 1%

R&D 3 (1) 25 5% 1% 4% 2%

Business services 9 (1) 107 14% 5% 4% 2%

Consumer services 1 (1) 200 2% 9% 3% 20%

2,234 Total 65 (11) 100% 100% 5% 7% (299)

* Share of Chinese investments in the total number of investments in each business activity. Key: In 2017, 49% of Chinese investments in France were in decision-making centers; 9% of foreign investments in this area were made by Chinese companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Automotive industry 7 (1) 956 11% 43% 10% 25%

Textiles, industrial textiles, clothing and accessories 6 (2) 70 9% 3% 10% 7%

Chemicals, plastics 5 106 8% 5% 9% 7%

Software and IT services 5 (1) 70 8% 3% 3% 2%

Electrical/electronic/IT equipment 5 50 8% 2% 9% 7%

Consumer electronics 4 (1) 92 6% 4% 29% 35%

Wholesale and retail 4 15 6% 1% 4% 1%

Metals, metalworking 3 185 5% 8% 7% 7%

Aerospace, naval and railway equipment 3 169 5% 8% 9% 10%

Other services 3 45 5% 2% 10% 16%

Perfumes, cosmetics 3 33 5% 1% 12% 12%

Consulting, engineering and business services 3 (3) 26 5% 1% 3% 1%

Transport, storage 3 25 5% 1% 6% 2%

Hospitality, tourism and restaurants 2 (1) 250 3% 11% 11% 30%

Machinery and mechanical equipment 2 35 3% 2% 2% 1%

Financial services, banking and insurance 2 20 3% 1% 6% 4%

Agri-food, agriculture, fishing 1 50 2% 2% 1% 2%

Energy, recycling, other concessions 1 (1) 25 2% 1% 2% 3%

Medical/surgical equipment, diagnostics and devices 1 5 2% 0.2% 3% 1%

Education and training 1 4 2% 0.2% 11% 4%

Telecoms, internet service providers 1 (1) 3 2% 0.1% 17% 1%

Total 65 (11) 2,234 (299) 100% 100% 5% 7%

* Share of Chinese investments in the total number of investments in each business sector. Key: In 2017, 11% of Chinese investments in France were in the automotive industry; 10% of foreign investments in this sector were made by Chinese companies.

Business France - 2017 Annual Report INVEST There are over forty South Korean companies operating in France, where they SOUTH employ more than SELECTED INVESTMENT 4,800 people. PROJECTS IN 2017 KOREA Naver: IT software and services specialist Naver Corporation decided to expand SOUTH KOREAN COMPANIES in France, acquiring the American firm IN FRANCE Xerox’s research center, in Meylan, near Grenoble (Auvergne-Rhône-Alpes region). FLOW There are 45 South Korean companies Renamed Naver Labs Europe, the Korean operating in France, where they employ group’s innovation center will continue to around 4,800 people. employ the team of 80 researchers and administrative staff. Naver also launched Four investments from South Korea created its Space Green incubation program at the 4 63 jobs in France in 2017. They involved three Station F incubator in Paris, and with room for projects first-time investments in the country and a (Business France) 80 workstations, it has the largest premises business services project. along with Facebook. The Korean company Half of these South Korean investments were and its Japanese subsidiary Line have also 63 made in healthcare sectors, with the rest in stepped up their investment in France and jobs services sectors, while location-wise they Europe by increasing their stake in K-fund 1, a (Business France) were all in Ile de France (Paris region). fund managed by former French government minister Fleur Pellerin, to €200 million. SOUTH KOREAN INVESTMENTS HDX Corporation: This South Korean IN EUROPE company specializing in radiotherapy opened its first European subsidiary in STOCK In 2017, Germany was the leading European France in Arcueil, Ile de France (Paris region). recipient of job-creating investment from Complete with a showroom, the subsidiary South Korea, attracting 23% of all South aims to rapidly increase sales of medical Korean projects in Europe, ahead of France imaging systems and dental chairs across 2 45 and Poland (both 13%). France and Europe. companies in France TOP 5 SOUTH KOREAN COMPANIES (Orbis) BY EMPLOYMENT IN FRANCE Parent company Workforce More than Main business sector in France

Consumer electronics SAMSUNG ELECTRONICS CO., LTD. 400-500 4,800 Electrical/electronic/IT equipment employees (Orbis)

Machinery and mechanical equipment DOOSAN CORP. 200-300 €796 Construction, building materials Consumer electronics LG ELECTRONICS INC. 200-300 million Electrical/electronic/IT equipment FDI stock in France1 27th place (Banque de France) KIA MOTORS CORPORATION Automotive industry 200-300

€5.0 AMOREPACIFIC Perfumes, cosmetics 100-200

billion 1 FDI stock in France (immediate investor) as of December 31, 2016. French exports FDI stock by ultimate investor as of December 31, 2015 was €1.1 billion. 16th place 2 Business France Europe Observatory. (French Customs Authorities) 64 companies in the Forbes 2000 Cell Biotech: The South Korean biochemical BREAKDOWN OF PROJECTS company renowned for its probiotic products decided to open a French subsidiary in Paris. BY BUSINESS ACTIVITY The company aims to increase its business NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) with regional pharmacies and their main Business activity Projects Jobs Projects Jobs Projects Jobs distributors, as well as strengthen its position in the European market. Decision-making centers 3 28 75% 44% 1% 1% First-time investments 3 28 75% 44% 1% 1%

Business services 1 35 25% 56% 0.4% 1%

Total 4 63 100% 100% 0.3% 0.2%

* Share of South Korean investments in the total number of investments in each business activity. Key: In 2017, 75% of South Korean investments in France were in decision-making centers; 1% of foreign investments in this area were made by South Korean companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Consulting, engineering and business services 1 35 25% 56% 1% 1%

Software and IT services 1 20 25% 32% 1% 1%

Medical/surgical equipment, diagnostics and devices 1 5 25% 8% 3% 1%

Pharmaceuticals and biotechnologies 1 3 25% 5% 4% 0%

Total 4 63 100% 100% 0.3% 0.2%

* Share of South Korean investments in the total number of investments in each business sector. Key: In 2017, 25% of South Korean investments in France were in the consulting/engineering/business services sector; 1% of foreign investments in this sector were made by South Korean companies.

Business France - 2017 Annual Report INVEST Fifteen Danish investment decisions were recorded in France in 2017,

creating more than SELECTED INVESTMENT DENMARK 200 jobs. PROJECTS IN 2017 LM Wind Power: This Danish group confirmed that it was investing €120 million in DANISH COMPANIES a new blade production facility3 in Cherbourg, IN FRANCE Normandy. The plant will be built at a site developed by Ports Normands Associés There are over 350 Danish companies (PNA), the port authority for Cherbourg and FLOW operating in France, where they employ Caen-Ouistreham. The site is due to be open nearly 40,000 people. by June 2018, eventually creating 550 jobs. Fifteen Danish investment decisions were recorded in France in 2017, creating more DSV: These Danish transport and logistics 15 than 200 jobs. specialists opened their new 3,500-sq. m. projects head office and 8,000-sq. m warehouse at Danish companies invested primarily in (Business France) the port of Gennevilliers, in Ile de France retail outlets (27%) and decision-making (Paris region). This €20 million investment centers (20%), all of which were first-time will bring together the group’s new investments in France. 224 headquarters in France and a multimodal jobs One-third of these Danish investments were logistics platform, redeploying 200 existing (Business France) in the furnishings and household goods personnel. DSV, the world’s fifth largest sector, where they accounted for 17% of all logistics services operator, is consolidating foreign investments in 2017. its presence in France, where it already has Thirty-three percent of all Danish investments 175,000 sq. m. of warehouse space and in 2017 were located in Ile de France (Paris 900 employees. This latest investment is region), with a further 27% in Grand Est and expected to create 35 jobs within three years. STOCK 20% in Hauts de France. William Demant: Following the acquisition in 2013 of the French company Neurelec, a More than DANISH INVESTMENTS European specialist in cochlear implants and IN EUROPE neurostimulators to treat deafness, Danish 350 hearing aids manufacturer William Demant companies In 2017, the United Kingdom was the reported strong business growth in 2017. As in France leading European recipient of job-creating a result, the company recruited 50 people (Eurostat) investment from Denmark, attracting 23% and stepped up its production activities at of Danish projects in Europe, followed by the Vallauris site, part of the Sophia Antipolis France (13%), Poland (11%) and Germany business park near Nice (Provence-Alpes- More than (also 11%). 2 Côte d’Azur region). 40,000 employees (Eurostat) TOP 5 DANISH COMPANIES €5.6 BY EMPLOYMENT IN FRANCE Parent company Workforce billion Main business sector in France FDI stock in France1 14th place ISS WORLD SERVICES Other services 24,500 (Banque de France) NOVO NORDISK Pharmaceuticals and biotechnologies 1,450

€2.6 CARLSBERG Agri-food, agriculture, fishing 1,210 billion Medical/surgical equipment, French exports WILLIAM DEMANT 1,200 diagnostics and devices 34th place (French Customs Authorities) GRUNDFOS Machinery and mechanical equipment 915

12 1 FDI stock in France (immediate investor) as of December 31, 2016. companies FDI stock by ultimate investor as of December 31, 2015 was €4.5 billion. 2 Business France Europe Observatory in the Forbes 2000 3 Project confirmed before it was acquired by General Electric in April 2017. BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY TOTAL SHARE* (%) NUMBER NATIONAL SHARE (%)

Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 3 35 20% 16% 1% 1% First-time investments 3 35 20% 16% 1% 1% Logistics 2 39 13% 17% 3% 1% Retail outlets 4 24 27% 11% 3% 1% Production / Manufacturing 1 50 7% 22% 0.3% 0.3% Business services 5 76 33% 34% 2% 2%

Total 15 224 100% 100% 1% 1%

* Share of Danish investments in the total number of investments in each business activity. Key: In 2017, 13% of Danish investments in France were in logistics; 3% of foreign investments in this area were made by Danish companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Furnishings, household goods 5 28 33% 13% 17% 8%

Medical/surgical equipment, diagnostics and devices 2 65 13% 29% 6% 14%

Energy, recycling, other concessions 2 47 13% 21% 4% 6%

Consulting, engineering and business services 2 27 13% 12% 2% 1%

Other services 2 21 13% 9% 7% 7%

Transport, storage 1 35 7% 16% 2% 3%

Metals, metalworking 1 1 7% 0% 2% 0.04%

Total 15 224 100% 100% 1% 1%

* Share of Danish investments in the total number of investments in each business sector. Key: In 2017, 33% of Danish investments in France were in the furnishings and household goods sector; 17% of foreign investments in this sector were made by Danish companies.

Business France - 2017 Annual Report INVEST France was the leading European recipient of job- SPANISH INVESTMENTS IN EUROPE creating investment In 2017, France was the leading European from Spain in 2017. recipient of job-creating investment from Spain, attracting 27% of Spanish projects SPAIN in Europe, ahead of Portugal (21%) and the United Kingdom (19%).2 SPANISH COMPANIES IN FRANCE SELECTED INVESTMENT There are over 1,200 Spanish companies PROJECTS IN 2017 operating in France, where they employ FLOW around 55,000 people. Garnica: This Spanish manufacturer of Forty-five investments from Spain were plasterboard panels decided to increase recorded in 2017, creating or maintaining 811 production at its Samazan plant in the jobs. Nouvelle Aquitaine region to cater for a rise 45 Investments by Spanish companies were in orders. The firm plans to invest €12 million projects made primarily in production/manufacturing and recruit some 40 people in 2018 and 2019. (Business France) operations (31% of projects), decision-making This Spanish startup is a tech centers (24%), the vast majority of which were Ironhack: school specializing in digital skills such as first-time investments in France, and business computer programming and coding. The 811 services (20%). jobs company opened a campus in Paris in 2017, Sixteen percent of Spanish investments were (Business France) which is currently run by a team of five, but in the software/IT services sector, where they this is set to grow to ten in the near future. accounted for 4% of all foreign investments, while a further 11% of Spanish projects were in Hierros Añon: The Galician steel company the transport/storage sector. is investing €30 million to build a stainless- Ile de France (Paris region) (24%) and steel plant at the port of Bayonne, in the STOCK Occitanie (22%) were the leading regions Nouvelle Aquitaine region. An additional €17 chosen for Spanish projects, ahead of Nouvelle million has been earmarked to cover initial Aquitaine (18%), where the number of Spanish start-up requirements. A total of 140 jobs will More than investments doubled in 2017. be created over the next three years. 1,200 companies TOP 5 SPANISH COMPANIES in France (Eurostat) BY EMPLOYMENT IN FRANCE Parent company Workforce More than Main business sector in France Textiles, industrial textiles, clothing and INDITEX 7,500 55,000 accessories employees (Eurostat) PROSEGUR COMPANIA DE SEGURIDAD Other services 6,600 S.A. €15 billion GRUPO AMADEUS Software and IT services 4,000-5,000 FDI stock in France1 10th place ABERTIS INFRAESTRUCTURAS, S.A. Construction, building materials 3,000 (Banque de France)

Textiles, industrial textiles, clothing and MANGO 1,500 €35.5 accessories billion 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €10.4 billion. French exports 2 Business France Europe Observatory. 2nd place (French Customs Authorities) 23 companies in the Forbes 2000 Asti: This international engineering firm, BREAKDOWN OF PROJECTS which specializes in optimizing the in-house logistics of businesses (automated guided BY BUSINESS ACTIVITY vehicles, conveyors and manipulators), set NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) up operations in Mulhouse, in the Grand Est Business activity Projects Jobs Projects Jobs Projects Jobs region. The company, which is already firmly established in the local economy, plans to Decision-making centers 11 108 24% 13% 3% 3% create around a dozen jobs. First-time investments 9 90 20% 11% 3% 3%

French headquarters 2 18 4% 2% 5% 3%

Logistics 1 10 2% 1% 2% 0.3%

Retail outlets 3 40 7% 5% 2% 2%

Production / Manufacturing 14 396 31% 49% 4% 2%

R&D, engineering, design 3 52 7% 6% 2% 2%

Business services 9 104 20% 13% 4% 2%

Consumer services 4 101 9% 12% 13% 10%

Total 45 811 100% 100% 3% 2%

* Share of Spanish investments in the total number of investments in each business activity. Key: In 2017, 31% of Spanish investments in France were in production/manufacturing; 4% of foreign investments in this area were made by Spanish companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Software and IT services 7 94 16% 12% 4% 3%

Transport, storage 5 88 11% 11% 10% 7%

Metals, metalworking 3 182 7% 22% 7% 7%

Glass, ceramics, minerals, wood, paper 3 122 7% 15% 8% 12%

Agri-food, agriculture, fishing 3 41 7% 5% 4% 2%

Textiles, industrial textiles, clothing and accessories 3 40 7% 5% 5% 4%

Chemicals, plastics 3 12 7% 1% 5% 1%

Machinery and mechanical equipment 2 53 4% 7% 2% 1%

Energy, recycling, other concessions 2 22 4% 3% 4% 3%

Aerospace, naval and railway equipment 2 21 4% 3% 6% 1%

Consulting, engineering and business services 2 13 4% 2% 2% 1%

Education and training 2 11 4% 1% 22% 12%

Furnishings, household goods 2 6 4% 1% 7% 2%

Hospitality, tourism and restaurants 1 30 2% 4% 6% 4%

Telecoms, internet service providers 1 20 2% 2% 17% 10%

Automotive industry 1 16 2% 2% 1% 0.4%

Other services 1 15 2% 2% 3% 5%

Perfumes, cosmetics 1 15 2% 2% 4% 5%

Construction, building materials 1 10 2% 1% 3% 2%

Total 45 811 100% 100% 3% 2%

* Share of Spanish investments in the total number of investments in each business sector. Key: In 2017, 16% of Spanish investments in France were in the software/IT services sector; 4% of foreign investments in this sector were made by Spanish companies.

Business France - 2017 Annual Report INVEST The United States was the leading source of

job-creating foreign American projects were most often located in Ile de France (Paris region), which attracted investment in France 46% of all investments from the United States. in 2017, with 230 UNITED AMERICAN INVESTMENTS projects creating or STATES IN EUROPE maintaining 7,047 jobs. In 2017, France was the second largest European recipient of job-creating investment from the United States, attracting 16% of American projects in Europe, preceded by the AMERICAN COMPANIES FLOW United Kingdom (25%), but ahead of Germany IN FRANCE (13%).2 There are over 4,600 American companies operating in France, where they employ more 230 than 460,000 people. SELECTED INVESTMENT projects A total of 230 investments were recorded from PROJECTS IN 2017 (Business France) the United States in 2017, up 26% from the This New York-based tech firm designs previous year, creating or maintaining 7,047 Ipsoft: artificial intelligence-based automated and jobs, or 21% of all jobs generated by foreign cognitive technologies, including digital 7,047 investment in France. jobs virtual assistants for businesses. In April 2017, Investments by American firms were made (Business France) it announced that it was consolidating its primarily in decision-making centers (27%), position in Europe by creating offices in Paris the vast majority of which were first-time and Madrid. The Paris office will be primarily investments in France, and production/ in charge of business activities, as well as R&D, manufacturing operations (24%). A large and will generate around twenty jobs. number of American companies invested STOCK in logistics operations and R&D activities, Symphony: Founded in 2014 in Silicon Valley, accounting for 32% and 26%, respectively, of Symphony is a secure cloud-based instant- all foreign investment in these areas in France. messaging and content sharing platform. More than American businesses invested most of all in The company has more than 300,000 users the French software and IT services sector worldwide, most of whom are financial 4,600 (28%), where 35% of all foreign investment professionals. In 2017, Symphony decided to companies came from the United States, and made set up its first European R&D center in the in France standout contributions in healthcare sectors, Sophia Antipolis technology park near Nice (Orbis) accounting for 37% of foreign investment in (Provence-Alpes-Côte d’Azur region), creating pharmaceuticals and biotechnologies, and around a hundred new jobs for highly qualified 28% in medical/surgical equipment. engineers. More than 460,000 TOP 5 AMERICAN COMPANIES employees (Orbis) BY EMPLOYMENT IN FRANCE Parent company* Workforce €54.2 Main business sector in France Manufacturing GENERAL ELECTRIC COMPANY 15,000-20,000 billion and services conglomerate FDI stock in France1 UNITED TECHNOLOGIES CORPORATION Aerospace, naval and railway equipment 7th place 10,000-15,000 (UTC) Machinery and mechanical equipment (Banque de France)

XPO LOGISTICS LLC Transport, storage 10,000-15,000 €34.0 WALT DISNEY CO. Other services 10,000-15,000 billion MCDONALD'S CORPORATION Hospitality, tourism and restaurants 10,000-15,000 French exports * Excluding investment funds. 3rd place 1 FDI stock in France (immediate investor) as of December 31, 2016. (French Customs Authorities) FDI stock by ultimate investor as of December 31, 2015 was €119 billion. 2 Business France Europe Observatory. 565 companies in the Forbes 2000 East Balt: The American hamburger supplier BREAKDOWN OF PROJECTS for McDonald’s confirmed plans to invest €36 million in a third bread roll production facility BY BUSINESS ACTIVITY in France for the Burger King franchise. This NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) new facility will be built in Le Plessis-Pâté, in Ile Business activity de France (Paris region), and will regenerate Projects Jobs Projects Jobs Projects Jobs an industrial area currently undergoing Decision-making centers 63 718 27% 10% 18% 17% development, leading to 65 new jobs. The First-time investments 49 458 21% 6% 17% 15% Chicago-based East Balt group employs 2,100 people around the world, including 250 in Global / European headquarters 10 157 4% 2% 34% 46% France, and generates revenues of more than French headquarters 4 103 2% 1% 11% 14% 3 US$350 million. Logistics 20 1,767 9% 25% 32% 57% IBM: Global leader in IT services and business Retail outlets 7 158 3% 2% 6% 9% solutions IBM opened a European Security Production / Manufacturing 55 2,541 24% 36% 16% 16% Operations Center at its new campus in Lille’s Euratechnologies cluster (Hauts de France R&D, engineering, design 33 711 14% 10% 26% 31% region). Inaugurated in December, the center R&D 28 501 12% 7% 34% 34% will create between 80 and 100 new jobs over Business services 44 826 19% 12% 18% 17% the next three years. Consumer services 8 326 3% 5% 26% 32% 3 East Balt was acquired by the Mexican company Grupo Bimbo in July 2017. Total 230 7,047 100% 100% 18% 21%

* Share of American investments in the total number of investments in each business activity. Key: In 2017, 9% of American investments in France were in logistics; 32% of foreign investments in this area were made by American companies. BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Software and IT services 64 878 28% 12% 35% 27% Machinery and mechanical equipment 16 1,233 7% 17% 18% 34% Consulting, engineering and business services 15 351 7% 5% 13% 14% Wholesale and retail 12 1,275 5% 18% 12% 49% Automotive industry 11 405 5% 6% 15% 11% Agri-food, agriculture and fishing 11 329 5% 5% 14% 14% Electrical/electronic/IT equipment 11 130 5% 2% 20% 17% Pharmaceuticals and biotechnologies 10 297 4% 4% 37% 38% Chemicals, plastics 9 345 4% 5% 16% 23% Transport, storage 9 312 4% 4% 17% 26% Medical/surgical equipment, diagnostics and devices 9 206 4% 3% 28% 46% Aerospace, naval and railway equipment 7 205 3% 3% 21% 12% Glass, ceramics, minerals, wood, paper 7 68 3% 1% 18% 7% Hospitality, tourism and restaurants 6 340 3% 5% 33% 41% Financial services, banking and insurance 6 104 3% 1% 18% 19% Furnishings, household goods 5 52 2% 1% 17% 14% Textiles, industrial textiles, clothing and accessories 4 59 2% 1% 7% 6% Other services 4 33 2% 0% 13% 12% Metals, metalworking 3 156 1% 2% 7% 6% Consumer electronics 3 120 1% 2% 21% 45% Electronic components 3 44 1% 1% 60% 80% Perfumes, cosmetics 1 40 0% 1% 4% 15% Education and training 1 30 0% 0% 11% 34% Telecoms, internet service providers 1 20 0% 0% 17% 10% Media, publishing 1 10 0% 0% 25% 34% Construction, building materials 1 5 0% 0% 3% 1%

Total 230 7,047 100% 100% 18% 21%

* Share of American investments in the total number of investments in each business sector. Key: In 2017, 28% of American investments in France were in the software and IT services sector; 35% of foreign investments in this sector were made by American companies.

Business France - 2017 Annual Report INVEST Finnish investment FINNISH INVESTMENTS in France doubled IN EUROPE In 2017, France was the fourth leading in 2017. European recipient of job-creating investment from Finland, attracting 12% of Finnish projects in Europe, preceded by FINNISH COMPANIES Poland (19%), the United Kingdom (16%) and IN FRANCE Germany (14%).2 FINLAND There are over 100 Finnish companies operating in France, where they employ SELECTED INVESTMENT nearly 15,000 people. PROJECTS IN 2017 Ten investments from Finland were recorded in 2017, creating or maintaining 284 jobs. Ahlstrom-Munksjö: This global manufacturer of fiber-based materials is These investments mainly involved new FLOW set to invest €7 million in the construction decision-making centers (30%), and R&D, of a fourth production line to make baking engineering and design activities (also 30%), paper at its Saint-Séverin site in the Nouvelle while R&D projects accounted for more Aquitaine region. The investment will lead to than half (55%) of jobs created by Finnish 10 the creation of 28 jobs. projects investment. (Business France) Thirty percent of Finnish projects were M-Files: This publisher of software to in the textiles, industrial textiles, clothing improve the management of documents and accessories sector, while 51% of jobs and information within companies acquired 284 generated by Finnish investment were in Paris-based StreamDesign in 2017. M-Files is jobs the telecoms and internet service providers keen to ramp up its development in France, (Business France) sector. where it already has close to 150 clients, and Forty percent of Finnish projects were located now plans to recruit around twenty people in Ile de France (Paris region). over the next three years.

STOCK TOP 5 FINNISH COMPANIES BY EMPLOYMENT IN FRANCE Parent company Workforce More than Main business sector in France 100 companies NOKIA OYJ Consumer electronics 7,500-10,000 in France (Eurostat) KONE OYJ Machinery and mechanical equipment 3,000-3,500

Furnishings, household goods AMER SPORTS OYJ Textiles, industrial textiles, clothing 1,000-1,500 (WILSON, SALOMON, MAVIC) 15,000 and accessories employees (Eurostat) METSO Machinery and mechanical equipment 500-1,000

€13.8 KONECRANES Machinery and mechanical equipment 500-1,000 billion 1 FDI stock in France 1 FDI stock in France (immediate investor) as of December 31, 2016. 11th place FDI stock by ultimate investor as of December 31, 2015 was €1.6 billion. 2 (Banque de France) Business France Europe Observatory. €2.0 billion French exports 38th place (French Customs Authorities) 9 companies in the Forbes 2000 BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 3 40 30% 14% 1% 1%

First-time investments 2 20 20% 7% 1% 1%

French headquarters 1 20 10% 7% 3% 3%

Logistics 1 15 10% 5% 2% 0.5%

Retail outlets 1 6 10% 2% 1% 0.3%

Production / Manufacturing 1 28 10% 10% 0.3% 0.2%

R&D, engineering, design 3 185 30% 65% 2% 8%

R&D 2 155 20% 55% 2% 11%

Business services 1 10 10% 4% 0.4% 0.2%

Total 10 284 100% 100% 1% 1%

* Share of Finnish investments in the total number of investments in each business activity. Key: In 2017, 30% of Finnish investments in France were in decision-making centers; 1% of foreign investments in this area were made by Finnish companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Textiles, industrial textiles, clothing and accessories 3 46 30% 16% 5% 4%

Telecoms, internet service providers 1 145 10% 51% 17% 69%

Glass, ceramics, minerals, wood, paper 1 28 10% 10% 3% 3%

Software and IT services 1 20 10% 7% 1% 1%

Wholesale and retail 1 15 10% 5% 1% 1%

Furnishings, household goods 1 10 10% 4% 3% 3%

Energy, recycling, other concessions 1 10 10% 4% 2% 1%

Electrical/electronic/IT equipment 1 10 10% 4% 2% 1%

Total 10 284 100% 100% 1% 1%

* Share of Finnish investments in the total number of investments in each business sector. Key: In 2017, 30% of Finnish investments in France were in the textiles, industrial textiles, clothing and accessories sector; 5% of foreign investments in this sector were made by Finnish companies.

Business France - 2017 Annual Report INVEST Indian investments in France were buoyant in 2017, with 19 investment decisions recorded United Kingdom, attracting 35% of all Indian INDIA (+73%), creating projects in Europe, followed by France (19%) 2 or maintaining and the Netherlands (15%). 284 jobs (+66%). SELECTED INVESTMENT PROJECTS IN 2017 FLOW Infosys Technology: the Indian IT giant INDIAN COMPANIES announced plans to move its business forward IN FRANCE in France via a strategic partnership with CMA-CGM, the world’s third leading maritime There are over 150 Indian companies operating 19 transport company. Infosys will open a center in France, where they employ around 7,000 projects for development and innovation in Marseille (Business France) people. (Provence-Alpes-Côte d’Azur region), leading Nineteen investments from India were to 80 jobs and setting the standard for Marseille recorded in 2017, creating or maintaining as a hub of expertise. There are also plans to 284 284 jobs. open a training center at some point. jobs Indian projects often involved decision- (Business France) making centers (42% of projects), including United Phosphorus: Dutch company a Global/European headquarters, and Cerexagri is a subsidiary of India’s United production/manufacturing operations (32%). Phosphorus Ltd., and specializes in crop Investments were mainly made in the software protection products. In 2017, it decided to and IT services sector (26% of projects and invest €15 million in a second production 52% of jobs generated), and chemicals/ facility in Mourenx, in Nouvelle Aquitaine STOCK plastics industry (21% of projects; 23% of (south-west France), creating around a jobs), while location-wise, Indian companies dozen jobs. The company is also present in invested primarily in Ile de France (Paris Bassens, in the same region, and in Marseille, More than region) (26% of projects), Nouvelle Aquitaine in Provence-Alpes-Côte d’Azur. (16%), Bourgogne-Franche-Comté (16%) and Zify Tech Solutions: This innovative Indian 150 Hauts de France (16%). companies startup announced plans to set up in Paris, in France creating 10 jobs. Zify’s flagship product is a (Orbis) INDIAN INVESTMENTS dynamic, artificial intelligence-based mobile IN EUROPE application for short- and medium-distance urban travel. It aims to help people save on More than In 2017, the leading European recipient of travel costs, thereby reducing congestion and 7,000 job-creating investment from India was the making cities more sustainable. employees (Orbis) TOP 5 INDIAN COMPANIES €267 BY EMPLOYMENT IN FRANCE Parent company Workforce million Main business sector in France FDI stock in France1 Software and IT services (Banque de France) TATA GROUP (TATA SONS LTD.) 1,500 Metals, metalworking

€5.3 SINTEX INDUSTRIES LTD. Chemicals, plastics 1,000-1,500 billion MOTHERSON SUMI SYSTEMS French exports Automotive industry 400-500 (SMR AUTOMOTIVE SYSTEMS) 15th place (French Customs Authorities) CENTUM INDIA (ADETEL GROUP) Electrical/electronic/IT equipment 400-500 58 companies MAHINDRA & MAHINDRA LTD. Automotive industry 400-500 in the Forbes 2000 1 FDI stock in France (ultimate investor) as of December 31, 2015. 2 Business France Europe Observatory. BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 8 50 42% 18% 2% 1%

First-time investments 7 45 37% 16% 2% 1%

Global / European headquarters 1 5 5% 2% 3% 1%

Production / Manufacturing 6 82 32% 29% 2% 1%

R&D, engineering, design 2 100 11% 35% 2% 4%

R&D 1 20 5% 7% 1% 1%

Business services 3 52 16% 18% 1% 1%

Total 19 284 100% 100% 1% 1%

* Share of Indian investments in the total number of investments in each business activity. Key: In 2017, 42% of Indian investments in France were in decision-making centers; 2% of foreign investments in this area were made by Indian companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Software and IT services 5 148 26% 52% 3% 5%

Chemicals, plastics 4 65 21% 23% 7% 4%

Automotive industry 2 9 11% 3% 3% 0.2%

Textiles, industrial textiles, clothing and accessories 2 6 11% 2% 3% 1%

Pharmaceuticals and biotechnologies 1 20 5% 7% 4% 3%

Machinery and mechanical equipment 1 12 5% 4% 1% 0.3%

Electrical/electronic/IT equipment 1 10 5% 4% 2% 1%

Furnishings, household goods 1 5 5% 2% 3% 1%

Education and training 1 5 5% 2% 11% 6%

Metals, metalworking 1 4 5% 1% 2% 0.1%

Total 19 284 100% 100% 1% 1%

* Share of Indian investments in the total number of investments in each business sector. Key: In 2017, 26% of Indian investments in France were in the software/IT services sector; 3% of foreign investments in this sector were made by Indian companies.

Business France - 2017 Annual Report INVEST France was the second leading European recipient of Irish investment in 2017 after the IRELAND United Kingdom. SELECTED INVESTMENT IRISH COMPANIES PROJECTS IN 2017 IN FRANCE Abbey International Finance: In 2017, There are nearly 300 Irish companies this privately owned company acquired FLOW operating in France, where they employ more Sovam GSE, which manufactures ground than 20,000 people. support equipment for airports and is based in Châtillon-sur-Thouet, in the Deux-Sèvres Seventeen investments from Ireland were département (Nouvelle Aquitaine region). recorded in 2017, creating or maintaining 279 17 The investment secured 55 jobs at the site. projects jobs. (Business France) More than half of these investments involved Smurfit Kappa: This global manufacturer production/manufacturing operations (53%), of corrugated cardboard packaging while two sectors – consulting, engineering solutions is investing €2 million in its Lys- 279 and business services (24%) and glass, Lez-Lannoy plant near Lille (Hauts de France jobs region). It plans to modernize the site and (Business France) ceramics, minerals, wood, paper (also 24%) – accounted for nearly half of Irish projects. boost production capacity, notably by building a new cutting line. Smurfit Kappa The Occitanie region (29%) attracted recruited 20 people in Lys-Lez-Lannoy in nearly one-third of Irish investments in 2017. 2017 and is planning to create another 10 jobs in 2018. The site currently employs nearly 200 people. STOCK IRISH INVESTMENTS IN EUROPE Accenture: Avanade, a subsidiary of consulting giant Accenture specializes in In 2017, the United Kingdom was the digital transformation and the integration leading European recipient of job-creating of Microsoft software solutions. It recently 300 investment from Ireland, attracting 30% of consolidated its presence in the Auvergne- companies Irish projects in Europe, followed by France Rhône-Alpes region, recruiting 20 people in in France (18%) and Germany (15%).² Lyon and 10 in Clermont-Ferrand in 2017. (Eurostat) More than TOP 5 IRISH COMPANIES 20,000 BY EMPLOYMENT IN FRANCE employees (Eurostat) Parent company Workforce Main business sector in France

Consulting, engineering ACCENTURE PLC 6,000 €4.1 and business services billion FDI stock in France1 SMURFIT KAPPA GROUP Glass, ceramics, minerals, wood, paper 5,500 15th place (Banque de France) CRH PLC Construction, building materials 3,350

WILLIS TOWERS WATSON PLC Financial services, banking and insurance 2,000 €2.8 (GRAS SAVOYE) billion French exports INGERSOLL-RAND PLC Machinery and mechanical equipment 500-1,000 32nd place (French Customs Authorities) 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €6.6 billion. 20 2 Business France Europe Observatory. companies in the Forbes 2000 BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 3 43 18% 15% 1% 1%

First-time investments 2 23 12% 8% 1% 1%

French headquarters 1 20 6% 7% 3% 3%

Logistics 1 15 6% 5% 2% 0.5%

Production / Manufacturing 9 187 53% 67% 3% 1%

Business services 4 34 24% 12% 2% 1%

Total 17 279 100% 100% 1% 1%

* Share of Irish investments in the total number of investments in each business activity. Key: In 2017, 18% of Irish investments in France were in decision-making centers; 1% of foreign investments in this area were made by Irish companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Glass, ceramics, minerals, wood, paper 4 63 24% 23% 11% 6%

Consulting, engineering and business services 4 34 24% 12% 3% 1%

Construction, building materials 3 60 18% 22% 8% 13%

Aerospace, naval and railway equipment 1 55 6% 20% 3% 3%

Education and training 1 20 6% 7% 11% 22%

Telecoms, internet service providers 1 20 6% 7% 17% 10%

Energy, recycling, other concessions 1 19 6% 7% 2% 3%

Agri-food, agriculture, fishing 1 5 6% 2% 1% 0%

Wholesale and retail 1 3 6% 1% 1% 0.1%

Total 17 279 100% 100% 1% 1%

* Share of Irish investments in the total number of investments in each business sector. Key: In 2017, 24% of Irish investments in France were in the glass, ceramics, minerals, wood, paper sector; 11% of foreign investments in this sector were made by Irish companies.

Business France - 2017 Annual Report INVEST Four Israeli tech firms confirmed they were investing SELECTED INVESTMENT in France in 2017. PROJECTS IN 2017 Weebit: This Israeli startup opened an R&D ISRAEL ISRAELI COMPANIES center in Grenoble (Auvergne-Rhône-Alpes IN FRANCE region) as part of a technology partnership with the Laboratory of Electronics and There are nearly 50 Israeli companies Information Technologies (LETI). Weebit operating in France, where they employ more is developing innovative data storage than 1,700 people. technology to replace flash memory, and with the opening of its first European base Four investments from Israel were recorded FLOW has now secured a foothold on the continent, in 2017, creating around thirty jobs. where it hopes to keep growing its business. Israeli investment decisions included three first-time investments in France and an R&D Trucknet: This leading logistics company 4 project, with half of these projects in the has developed a system for sharing data projects electrical/electronic/IT equipment sector and streamlining the transport of goods. (Business France) and the other half in software/IT services. Following Trucknet’s participation in the 2015 Three of the four investments were made in United Nations Climate Change Conference, Ile de France (Paris region), and the other in it decided to open its first European base in 26 Auvergne-Rhône-Alpes. France in 2017, creating seven jobs. jobs (Business France) Global-E: This innovative company set ISRAELI INVESTMENTS up its European headquarters in Paris in IN EUROPE 2017. Global-e is developing a cross-border e-commerce platform that facilitates In 2017, Germany was the leading European international trade through an automated recipient of job-creating investment from solution supporting different languages, STOCK Israel, attracting 31% of Israeli projects in currencies, local taxes, delivery services, and Europe, followed by the United Kingdom more. It has already recruited five people and (24%), Spain (13%) and France (10%).2 plans to double its French personnel in 2018.

49 TOP 5 ISRAELI COMPANIES companies BY EMPLOYMENT IN FRANCE in France (Eurostat) Parent company Workforce Main business sector in France

TEVA PHARMACEUTICAL Pharmaceuticals and biotechnologies 1,000 More than INDUSTRIES LTD. 1,700 employees ALROV PROPERTIES & LODGINGS LTD. Hospitality, tourism and restaurants 150-200 (Eurostat)

Chemicals, plastics SASA HOLDING (BERARD; AMEFO) 150-200 €194 Machinery and mechanical equipment million FRUTAROM INDUSTRIES LTD. Agri-food 100-150 FDI stock in France1 48th place (Banque de France) VARONIS Software and IT services 100-150

1 FDI stock in France (immediate investor) as of December 31, 2016. €1.5 FDI stock by ultimate investor as of December 31, 2015 was €623 million. 2 billion Business France Europe Observatory. French exports 47th place (French Customs Authorities) 9 companies in the Forbes 2000 BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 3 25 75% 96% 1% 1%

First-time investments 3 25 75% 96% 1% 1%

R&D, engineering, design 1 1 25% 4% 1% 0%

R&D 1 1 25% 4% 1% 0.1%

Total 4 26 100% 100% 0.3% 0.1%

* Share of Israeli investments in the total number of investments in each business activity. Key: In 2017, 75% of Israeli investments in France were in decision-making centers; 1% of foreign investments in this area were made by Israeli companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Software and IT services 2 17 50% 65% 1% 1%

Electrical/electronic/IT equipment 2 9 50% 35% 4% 1%

Total 4 26 100% 100% 0.3% 0.1%

* Share of Israeli investments in the total number of investments in each business sector. Key: In 2017, 50% of Israeli investments in France were in the software and IT services sector; 1% of foreign investments in this sector were made by Israeli companies.

Business France - 2017 Annual Report INVEST Italian was the third leading investor in France in 2017, with nearly a hundred investments creating ITALY or maintaining more ITALIAN INVESTMENTS than 1,500 jobs. IN EUROPE In 2017, France was the leading European recipient of job-creating investment from ITALIAN COMPANIES Italy, attracting 50% of Italian projects in FLOW IN FRANCE Europe, followed by the United Kingdom (9%) and Poland (6%).2 There are around 1,700 Italian companies operating in France, where they employ 96 more than 67,000 people. SELECTED INVESTMENT projects A total of 96 investments from Italy were PROJECTS IN 2017 (Business France) recorded in 2017, creating or maintaining Cuki Cofresco: The Italian leader in 1,504 jobs. food packaging decided to open a French Italian investors in France focused on subsidiary in the Auvergne-Rhône-Alpes 1,504 production/manufacturing operations region to manufacture aluminum trays. This jobs (28% of all Italian projects), decision-making (Business France) major industrial project will see €15 million centers (24%) and business services (20%), invested and 44 new jobs created over the while there were also 15 R&D, engineering next three years. and design projects that accounted for 16% of Italian projects and 12% of all foreign Lavazza: After acquiring Carte Noire in 2016, investments in this area, the second biggest coffee roasting specialists Lavazza decided contribution by any country. in 2017 to invest €16 million in a redesign of STOCK their production facility in Lavérune, south- Sector-wise, Italian investments were western France (Occitanie region). Lavazza primarily made in agri-food (11% of Italian is also aiming to boost its French headcount projects), metals (10%) and machinery/ by creating around a dozen new jobs. mechanical equipment (also 10%), while 1,700 aerospace, naval and railway equipment (8%) Lead Tech: This engineering firm companies accounted for 387 jobs, or 26% of all jobs specializing in software development and generated in France by Italian investment in technical product support services opened in France 2017. (Eurostat) its first French subsidiary in 2017 in Tarn, Italian companies invested mainly in Ile de south-western France (Occitanie region). France (Paris region) (24% of projects), Over the next three years it will recruit Occitanie (15%) and Auvergne-Rhône-Alpes around thirty employees to be responsible 67,000 (also 15%), as well as Nouvelle Aquitaine (13%). for commercial and engineering operations. employees (Eurostat) TOP 5 ITALIAN COMPANIES BY EMPLOYMENT IN FRANCE

€18.7 Parent company Main business sector Workforce billion in France 1 FDI stock in France GENERALI ASSICURAZIONI S.P.A. Financial services, banking and insurance 7,500 8th place (Banque de France) FCA GROUP (FIAT CHRYSLER Automotive industry 7,000 AUTOMOBILES ; CNH INDUSTRIAL)* Machinery and mechanical equipment

€35.1 EDIZIONE HOLDING (AUTOGRILL) Consumer services 3,500 billion Civil engineering French exports SAIPEM SPA 2,400 3rd place Architecture and engineering (French Customs Authorities) BARILLA SPA Agri-food 1,500

27 * Italian-American group following the merger of Fiat SPA (Italy) and Chrysler Corporation (US), companies with a financial holding company in the Netherlands and a headquarters in the United Kingdom. 1 FDI stock in France (immediate investor) as of December 31, 2016. in the Forbes 2000 FDI stock by ultimate investor as of December 31, 2015 was €21.3 billion. 2 Business France Europe Observatory. Salini Impregilo: This leading company BREAKDOWN OF PROJECTS specializing in civil engineering and the construction of major infrastructure schemes BY BUSINESS ACTIVITY is looking forward to working on the Grand NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Paris project. In 2017, it opened a skills hub in Business activity Projects Jobs Projects Jobs Projects Jobs Paris’ La Défense business district focusing on underground rail services, creating 25 jobs. Decision-making centers 23 300 24% 20% 6% 7% First-time investments 15 176 16% 12% 5% 6%

French headquarters 8 124 8% 8% 22% 17%

Logistics 4 49 4% 3% 6% 2%

Retail outlets 6 36 6% 2% 5% 2%

Production / Manufacturing 27 680 28% 45% 8% 4%

R&D, engineering, design 15 103 16% 7% 12% 5%

R&D 6 26 6% 2% 7% 2%

Business services 19 224 20% 15% 8% 5%

Consumer services 2 112 2% 7% 6% 11%

Total 96 1,504 100% 100% 7% 4%

* Share of Italian investments in the total number of investments in each business activity. Key: In 2017, 28% of Italian investments in France were in production/manufacturing; 8% of foreign investments in this area were made by Italian companies.

BREAKDOWN OF PROJECT BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Agri-food, agriculture, fishing 11 146 11% 10% 14% 6%

Metals, metalworking 10 156 10% 10% 24% 6%

Machinery and mechanical equipment 10 91 10% 6% 11% 3%

Aerospace, naval and railway equipment 8 387 8% 26% 24% 22%

Medical/surgical equipment, diagnostics and devices 7 67 7% 4% 22% 15%

Consulting, engineering and business services 6 61 6% 4% 5% 2%

Textiles, industrial textiles, clothing and accessories 6 30 6% 2% 10% 3%

Glass, ceramics, minerals, wood, paper 5 62 5% 4% 13% 6%

Construction, building materials 5 48 5% 3% 14% 10%

Software and IT services 4 47 4% 3% 2% 1%

Chemicals, plastics 3 100 3% 7% 5% 7%

Furnishings, household goods 3 45 3% 3% 10% 12%

Energy, recycling, other concessions 3 37 3% 2% 6% 5%

Electrical/electronic/IT equipment 3 30 3% 2% 5% 4%

Perfumes, cosmetics 3 10 3% 1% 12% 4%

Pharmaceuticals and biotechnologies 2 20 2% 1% 7% 3%

Automotive industry 2 11 2% 1% 3% 0.3%

Financial services, banking and insurance 1 100 1% 7% 3% 18%

Wholesale and retail 1 20 1% 1% 1% 1%

Hospitality, tourism and restaurants 1 20 1% 1% 6% 2%

Other services 1 10 1% 1% 3% 4%

Transport, storage 1 6 1% 0.4% 2% 1%

Total 96 1,504 100% 100% 7% 4%

* Share of Italian investments in the total number of investments in each business sector. Key: In 2017, 11% of Italian investments in France were in the agri-food, agriculture and fishing sector; 14% of foreign investments in this sector were made by Italian companies.

Business France - 2017 Annual Report INVEST Japan was the joint leading Asian Japanese investments were most often located in Ile de France (Paris region) (29% of investor in France projects), while Grand Est (22%) saw a large in 2017, along with increase in investments recorded China. Japanese JAPANESE INVESTMENTS JAPAN companies have IN EUROPE In 2017, France was the joint leading European a long and varied recipient, along with Germany, of job- creating investment from Japan, attracting history in France, 19% of Japanese projects in Europe, ahead of the United Kingdom (11%) and Spain (8%). 2 FLOW particularly in design and manufacturing. SELECTED INVESTMENT PROJECTS IN 2017 65 JAPANESE COMPANIES Asics Corporation: The sports equipment projects maker decided to open a 38,000-sq. (Business France) IN FRANCE m. distribution center in Mauguio, near There are 490 Japanese companies Montpellier (Occitanie region). The €30 operating in France, where they employ million development will open for business 1,926 74,000 people. by the end of 2019 and is expected to employ jobs around a hundred people, with around fifty (Business France) Along with China, Japan was the joint fifth leading investor in France in 2017, with 65 jobs being transferred from the company’s investments creating or maintaining 1,926 jobs. site in Gallargues-le-Montueux (also Occitanie region). Japanese investments were made primarily in production/manufacturing operations (32%) Toyota Motor Corporation: Toyota and decision-making centers (32%), nearly announced a new €300 million investment STOCK all of which were first-time investments in at its Toyota Motor Manufacturing France France (28%). (TMMF) vehicle production facility in More than 70% of Japanese investments Onnaing, near Valenciennes (Hauts de in 2017 were manufacturing projects, with France region). Over the coming months, the 14% of Japanese projects in the machinery/ site will be gradually upgraded to house new 490 mechanical equipment sector, and 12% in the equipment and technology. Toyota initially companies automotive industry. Japanese firms also intends to offer permanent contracts to 300 in France1 accounted for 12% of all foreign investments temporary staff, with 400 new permanent (Business France, Tokyo) and more than one-quarter (26%) of all jobs positions being created once the site has thereby generated in the French textiles reached its output target of 300,000 industry. vehicles per year. 74,000 employees2 TOP 5 JAPANESE COMPANIES (Business France, Tokyo) BY EMPLOYMENT IN FRANCE Parent company Workforce €15.3 Main business sector in France billion TOYOTA MOTOR CORPORATION Automotive industry 4,000-4,500 FDI stock in France3 9th place Automotive industry (Banque de France) NTN CORPORATION 4,000-4,500 Machinery and mechanical equipment

€6.4 RICOH CO., LTD. Electrical/electronic/IT equipment 3,500-4,000

billion Textiles, industrial textiles, clothing FAST RETAILING CO., LTD. 3,500-4,000 French exports and accessories 13th place (French Customs Authorities) Machinery and mechanical equipment JTEKT CORPORATION 3,000-3,500 Automotive industry

229 1 Business France Tokyo office figures. companies 2 Business France Tokyo office figures. 3 FDI stock in France (immediate investor) as of December 31, 2016. in the Forbes 2000 FDI stock by ultimate investor as of December 31, 2015 was €18.2 billion. 4 Business France Europe Observatory. Saraya: This manufacturer of detergents, BREAKDOWN OF PROJECTS disinfectants and soaps for family and professional use acquired French cleaning BY BUSINESS ACTIVITY and hygiene products maker and distributor NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Avenir Detergence, based in Velaines (Grand Business activity Est region). The takeover led to 30 jobs being Projects Emplois Projects Emplois Projects Emplois maintained. Decision-making centers 21 87 32% 5% 6% 2% Nidec Corporation: Having acquired First-time investments 18 62 28% 3% 6% 2% French company Leroy-Somer in 2016, this Global / European headquarters 2 15 3% 1% 7% 4% leading electric motor manufacturer entered French headquarters 1 10 2% 1% 3% 1% into a partnership in 2017 with Groupe PSA, forming a joint venture involving R&D and Logistics 3 70 5% 4% 5% 2% the production/marketing of electric vehicle Retail outlets 5 215 8% 11% 4% 12% motors. This agreement covers an investment Production / Manufacturing 21 1,210 32% 63% 6% 7% of €220 million split equally between the two groups. A new R&D center will open in 2019 in R&D, engineering, design 7 215 11% 11% 6% 9% the PSA Powertrain Ce Center of Excellence R&D 5 180 8% 9% 6% 12% in Carrières-sous-Poissy (also Paris region). Business services 8 129 12% 7% 3% 3% In all, 100 jobs will be created. Total 65 1,926 100% 100% 5% 6%

* Share of Japanese investments in the total number of investments in each business activity. Key: In 2017, 32% of Japanese investments in France were in decision-making centers; 6% of foreign investments in this area were made by Japanese companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Emplois Projects Emplois Projects Emplois

Machinery and mechanical equipment 9 245 14% 13% 10% 7%

Automotive industry 8 444 12% 23% 11% 12%

Agri-food, agriculture, fishing 7 530 11% 28% 9% 22%

Textiles, industrial textiles, clothing and accessories 7 268 11% 14% 12% 26%

Software and IT services 7 66 11% 3% 4% 2%

Consulting, engineering and business services 6 100 9% 5% 5% 4%

Chemicals, plastics 3 90 5% 5% 5% 6%

Medical/surgical equipment, diagnostics and devices 3 27 5% 1% 9% 6%

Perfumes, cosmetics 3 18 5% 1% 12% 7%

Electrical/electronic/IT equipment 2 80 3% 4% 4% 11%

Transport, storage 2 15 3% 1% 4% 1%

Furnishings, household goods 2 5 3% 0% 7% 1%

Pharmaceuticals and biotechnologies 2 4 3% 0% 7% 1%

Wholesale and retail 1 16 2% 1% 1% 1%

Electronic components 1 8 2% 0% 20% 15%

Hospitality, tourism and restaurants 1 5 2% 0% 6% 1%

Media, publishing 1 5 2% 0% 25% 17%

Total 65 1,926 100% 100% 5% 6%

* Share of Japanese investments in the total number of investments in each business sector. Key: In 2017, 14% of Japanese investments in France were in the machinery and mechanical equipment sector; 10% of foreign investments in this sector were made by Japanese companies.

Business France - 2017 Annual Report INVEST Seventeen investment decisions were recorded in France from Luxembourg in 2017, creating or Luxembourg, receiving 50% of Luxembourg projects in Europe, ahead of Spain, the United LUXEMBOURG maintaining 510 jobs. Kingdom and Germany (all 9%).2

SELECTED INVESTMENT LUXEMBOURG COMPANIES PROJECTS IN 2017 IN FRANCE ITS4U: This Luxembourg-based consulting FLOW There are around a thousand Luxembourg firm specializes in information systems, companies operating in France, where technical expertise, solution integration they employ more than 50,000 people. (CRM, ECM, BPM, Middleware Red Hat) and Seventeen investments were recorded from project management. Having grown steadily 17 Luxembourg in 2017, creating or maintaining since it was founded in 2009, the company projects 510 jobs. opened an office in 2017 in Paris where it (Business France) Luxembourg projects in 2017 mainly involved plans to recruit 10 people over three years. production/manufacturing operations (47% Based in Luxembourg, of projects; 72% of jobs generated) and Vesalius Biocapital: this venture capital fund invests in European 510 decision-making centers (24% of projects), biotech startups and is opening a five-person jobs while the leading sector was the metals (Business France) subsidiary in the Paris suburb of Ivry-sur- industry, accounting for 35% of projects and Seine (Ile de France) to become part of 56% of jobs. France’s healthcare and biotech ecosystem. Three regions stood out for Luxembourg investors: Grand Est (24% of projects), Aperam: Specializing in stainless steel, Nouvelle-Aquitaine (24%) and Hauts de Aperam is expanding its business with plans STOCK France (24%). to invest €28 million at its manufacturing site in Gueugnon (Bourgogne-Franche-Comté LUXEMBOURG INVESTMENTS region). The purpose of the project is to IN EUROPE improve the firm’s industrial facilities so as More than to offer flatter and shinier stainless steels, 1,000 In 2017, France was the leading European particularly for use in trim parts. Around 25 companies recipient of job-creating investment from jobs are expected to be created. in France (Orbis) TOP 5 LUXEMBOURG COMPANIES More than BY EMPLOYMENT IN FRANCE Parent company Workforce 50,000 Main business sector in France employees (Orbis) ARCELORMITTAL Metals, metalworking 17,000

Telecoms, internet service providers ALTICE (SFR, NEXTRADIOTV, INTELCIA) 12,000-15,000 €135.8 Media, publishing Pharmaceuticals and biotechnologies billion 5,000-6,000 1 EUROFINS SCIENTIFIC Consulting, engineering and business FDI stock in France services 1st place (Banque de France) APERAM Metals, metalworking 1,000-2,000

INTERNATIONAL TECHNOLOGY Wholesale and retail 1,000-2,000 €2.2 SOLUTIONS (ITS) (FRANCE LOISIRS) billion French exports 1 FDI stock in France (immediate investor) as of December 31, 2016. 37th place FDI stock by ultimate investor as of December 31, 2015 was €28.9 billion. (French Customs Authorities) 2 Business France Europe Observatory. 5 companies in the Forbes 2000 BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 4 63 24% 12% 1% 2%

First-time investments 3 20 18% 4% 1% 1%

French headquarters 1 43 6% 8% 3% 6%

Retail outlets 1 30 6% 6% 1% 2%

Production / Manufacturing 8 368 47% 72% 2% 2%

R&D, engineering, design 2 18 12% 4% 2% 1%

R&D 1 17 6% 3% 1% 1%

Business services 2 31 12% 6% 1% 1%

Total 17 510 100% 100% 1% 2%

* Share of Luxembourg investments in the total number of investments in each business activity. Key: In 2017, 47% of Luxembourg investments in France were in production/manufacturing; 2% of foreign investments in this area were made by Luxembourg companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Metals, metalworking 6 288 35% 56% 14% 11%

Automotive industry 2 87 12% 17% 3% 2%

Machinery and mechanical equipment 2 60 12% 12% 2% 2%

Software and IT services 2 11 12% 2% 1% 0.3%

Consulting, engineering and business services 2 6 12% 1% 2% 0.2%

ENERGY, RECYCLING, OTHER CONCESSIONS 1 43 6% 8% 2% 6%

Perfumes, cosmetics 1 10 6% 2% 4% 4%

Financial services, banking and insurance 1 5 6% 1% 3% 1%

Total 17 510 100% 100% 1% 2%

* Share of Luxembourg investments in the total number of investments in each business sector. Key: In 2017, 35% of Luxembourg investments in France were in the metals/metalworking sector; 14% of foreign investments in this sector were made by Luxembourg companies.

Business France - 2017 Annual Report INVEST Thirteen investment MAGHREB INVESTMENTS decisions were IN EUROPE made in France in Job-creating investments in 2017 from Maghreb countries in Europe remained 2017 by companies limited in number; however, France was the 3 from Maghreb2 leading recipient. countries, creating or SELECTED INVESTMENT MAGHREB maintaining 185 jobs. PROJECTS IN 2017 COUNTRIES Riminder: This Mauritanian startup focuses on the use of artificial intelligence (or deep MAGHREB COMPANIES learning) in the recruitment sector, to serve jobseekers and recruiters alike. Thanks to its IN FRANCE FLOW cutting-edge technology, Riminder hopes to There are around 500 companies from create around forty jobs over the next three Maghreb countries operating in France, years, mostly in R&D. where they employ more than 5,700 people. Polysmart: Tunisian startup Polysmart 13 Thirteen Maghreb investments were recorded is an independent video game developer projects in 2017, creating or maintaining 185 jobs in that leads the market in the Middle East and (Business France) France. North Africa (MENA) region. The company Investments attracted to France in 2017 were was keen to establish a production base and from Maghreb investors based in Morocco recruit individuals with specific technical skills 185 (6 projects), Tunisia (5), Mauritania (1) and (R&D) ahead of the design and global launch jobs of a new game. It ultimately chose Lyon (Business France) Algeria (1). (Auvergne-Rhône-Alpes region), where it will These businesses invested primarily in be creating 32 jobs over three years. decision-making centers (62% of projects; 49% of jobs generated), business services Social Impulse: This Moroccan startup is (23%), and R&D activities (15%). a digital agency offering an online content Sector-wise, Maghreb investments were management system that incorporates STOCK mostly made in software/IT services (46% of organic search-engine optimization, projects; 71% of jobs generated), consulting, content and social media strategy. After an engineering and business services (15% of initial commercialization phase in Morocco, More than projects), and education/training (15%), Social Impulse was keen to establish itself in while in terms of location Ile de France (Paris Europe. The project is set to create around 500 region) led the way (46% of projects; 57% of twenty jobs in Strasbourg (Grand Est region) companies jobs generated). over the next three years. in France (Orbis) TOP 5 MAGHREB COMPANIES More than BY EMPLOYMENT IN FRANCE

5,700 Parent company Main business sector Workforce employees in France (Orbis) Agri-food Machinery and mechanical equipment CEVITAL (BRANDT, OXXO) (Algeria) 2,000 Automotive industry €1.2 Transport, storage

billion SCHIELE MAROC (SELHA) (Morocco) Electrical/electronic/IT equipment 1,000 FDI stock in France1

20th place Consulting, engineering and business GROUPE OUTSOURCIA (Morocco) 200-300 (Banque de France*) services

BMCE BANK (BMCE EUROSERVICES, Financial services, banking and insurance 200-300 €12.8 BBI, BOA) (Morocco) Furnishings, household goods

billion Construction, building materials SNI (OPTORG) (Morocco) 100-200 French exports Machinery and mechanical equipment (French Customs Authorities)

1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €1.4 billion. 2 Algeria, Libya, Mauritania, Morocco, Tunisia. 3 3 Business France Europe Observatory. companies in the Forbes 2000 Medinnov Biosciences: Specializing BREAKDOWN OF PROJECTS in new fertilizer irrigation technologies (measurement and hydro-agricultural BY SOURCE COUNTRY telemetry equipment), Medinnov Biosciences NUMBER recently set up operations in Marseille Source country (Provence-Alpes-Côte d’Azur region) where Projects Jobs it will create around ten jobs over a five-year Morocco 6 44 period. The project is rooted in the COP21 Tunisia 5 98 agreement. Mauitania 1 40 Algeria 1 3

Total 13 185

BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 8 90 62% 49% 2% 2%

First-time investments 7 87 54% 47% 2% 3%

French headquarters 1 3 8% 2% 3% 0.4%

R&D, engineering, design 2 60 15% 32% 2% 3%

R&D 2 60 15% 32% 2% 4%

Business services 3 35 23% 19% 1% 1%

Total 13 185 100% 100% 1% 1%

* Share of Maghreb investments in the total number of investments in each business activity. Key: In 2017, 62% of Maghreb investments in France were in decision-making centers; 2% of foreign investments in this area were made by Maghreb companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Software and IT services 6 132 46% 71% 3% 4%

Consulting, engineering and business services 2 36 15% 19% 2% 1%

Education and training 2 9 15% 5% 22% 10%

Construction, building materials 1 3 8% 2% 3% 1%

Perfumes, cosmetics 1 3 8% 2% 4% 1%

Wholesale and retail 1 2 8% 1% 1% 0.1%

Total 13 185 100% 100% 1% 1%

* Share of Maghreb investments in the total number of investments in each business sector. Key: In 2017, 46% of Maghreb investments in France were in the software/IT services sector; 3% of foreign investments in this sector were made by Maghreb companies.

Business France - 2017 Annual Report INVEST The 100+ Norwegian

companies operating the aerospace, naval and railway equipment sector, while geographically, 40% were made in France employ in Ile de France (Paris region). around 4,500 people NORWEGIAN INVESTMENTS in the country. IN EUROPE NORWAY In 2017, France was the third leading NORWEGIAN COMPANIES European recipient of Norwegian job- IN FRANCE creating investments in Europe (9%), preceded by the United Kingdom (22%) and There are more than 100 Norwegian Germany (22%).² companies operating in France, where they FLOW employ around 4,500 people. SELECTED INVESTMENT Five investments from Norway were PROJECTS IN 2017 recorded in 2017, creating 93 jobs in France. 5 These projects included two decision- Havyard Group ASA: After signing an projects making centers, two business services €8.5 million contract with STX France, (Business France) projects, and a production/manufacturing Norwegian group Havyard, which specializes facility. in naval construction and repairs, opened a site at the port of Saint-Nazaire, on the 93 Sixty-five percent of jobs created in France Atlantic coast (Pays de la Loire region). The jobs by Norwegian companies in 2017 were in project will lead to the creation of 60 jobs. (Business France)

TOP 5 NORWEGIAN COMPANIES BY EMPLOYMENT IN FRANCE Parent company Workforce STOCK Main business sector in France NORSK HYDRO ASA Metals, metalworking 2,000

More than MARINE HARVEST ASA Agri-food, agriculture, fishing 1,000

100 YARA INTERNATIONAL ASA Chemicals, plastics 700-800 companies in France NORSKE SKOGINDUSTRIER ASA Glass, ceramics, minerals, wood, paper 400-500 (Orbis) SCHIBSTED ASA (LeBonCoin.fr) Other services 300-400 More than 4,500 BREAKDOWN OF PROJECTS employees BY BUSINESS ACTIVITY (Orbis) NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business activity Projects Jobs Projects Jobs Projects Jobs €2.2 Decision-making centers 2 63 40% 68% 1% 2% billion First-time investments 2 63 40% 68% 1% 2% 1 FDI stock in France Production / Manufacturing 1 10 20% 11% 0.3% 0.1% 20th place Business services 2 20 40% 22% 1% 0.4% (Banque de France) Total 5 93 100% 100% 0.4% 0.3%

* Share of Norwegian investments in the total number of investments in each business activity. €1.6 Key: In 2017, 40% of Norwegian investments in France were in decision-making centers; billion 1% of foreign investments in this area were made by Norwegian companies. French exports 45th place (French Customs Authorities) 9 companies in the Forbes 2000 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €2.8 billion. 2 Business France Europe Observatory. BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Aerospace, naval and railway equipment 1 60 20% 65% 3% 3%

Education and training 1 10 20% 11% 11% 11%

Energy, recycling, other concessions 1 10 20% 11% 2% 1%

Metals, metalworking 1 10 20% 11% 2% 0.4%

Software and IT services 1 3 20% 3% 1% 0.1%

Total 5 93 100% 100% 0.4% 0.3%

* Share of Norwegian investments in the total number of investments in each business sector. Key: In 2017, 20% of Norwegian investments in France were in the aerospace, naval and railway equipment sector; 3% of foreign investments in this sector were made by Norwegian companies.

Business France - 2017 Annual Report INVEST There were more than 50 Dutch investments in France in 2017,

a rise of 47%. Dutch projects were recorded mainly in Ile NETHERLANDS These projects de France (Paris region) (30% of projects), followed by Occitanie (11%), while 34% of jobs created or created or maintained by Dutch investment were in the Bourgogne-Franche-Comté maintained nearly region. 1,500 jobs (+87%). FLOW DUTCH INVESTMENTS IN EUROPE DUTCH COMPANIES In 2017, France was the leading European 53 IN FRANCE recipient of job-creating investment from the projects There are more than 2,300 Dutch companies Netherlands, attracting 21% of Dutch projects (Business France) operating in France, where they employ in Europe, ahead of the United Kingdom (16%), more than 200,000 people. Germany (also 16%) and Spain (10%).2 1,497 Fifty-three Dutch investments were recorded in 2017, creating or maintaining 1,497 jobs. jobs SELECTED INVESTMENT (Business France) Investments by Dutch companies were made primarily in retail outlets (38% of projects) PROJECTS IN 2017 and production/manufacturing operations Plukon Food Group: Plukon recently (26%). The latter created or maintained took over French group Duc, whose head no fewer than 1,130 jobs (75% of all jobs office is located in Bourgogne (Burgundy). generated by Dutch investment in France), Duc, the fourth largest poultry company STOCK due mostly to Dutch firm Plukon’s acquisition in France, operated a number of poultry of French poultry producer Duc. slaughter and meat processing sites in the Dutch investments tended to be found in the Bretagne (Brittany), Occitanie and Ile de More than wholesale/retail sector (34% of projects), as France (Paris) regions, before running into 2,300 well as agri-food/agriculture/fishing (21% financial difficulties. The acquisition and €20 companies of projects; 60% of jobs generated). In the million investment program to modernize latter sector, Dutch projects accounted for these French production facilities enabled in France 38% of jobs created or maintained by foreign Europe’s leading supplier of poultry meat to (Eurostat) investment in France. save nearly 800 jobs. More than 200,000 TOP 5 SOUTH AFRICAN COMPANIES employees BY EMPLOYMENT IN FRANCE (Orbis) Parent company Workforce Main business sector in France

Consulting, engineering and business RANDSTAD HOLDING 11,000-12,000 €88.2 services billion FDI stock in France1 HEINEKEN Agri-food 4,000-4,500 2nd place (Banque de France) FACILICOM GROUP Other services 4,000

€16.9 UNILEVER Agri-food 2,000-3,000 billion French exports AKZO NOBEL Chemicals, plastics 1,000-2,000 8th place (French Customs Authorities) 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €44.9 billion. 23 2 Business France Europe Observatory. companies in the Forbes 2000 SendCloud: This Dutch startup has BREAKDOWN OF PROJECTS developed an innovative solution enabling e-commerce sites to optimize their delivery BY BUSINESS ACTIVITY services. It opened a French subsidiary in NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Paris in October 2017 with a view to building a Business activity continent-wide delivery network for vendors Projects Jobs Projects Jobs Projects Jobs to deliver orders more easily and cheaply Decision-making centers 6 77 11% 5% 2% 2% throughout Europe. SendCloud expects to First-time investments 6 77 11% 5% 2% 2% recruit around fifteen people in France. Logistics 5 50 9% 3% 8% 2%

Verwater: This company specializes in Retail outlets 20 146 38% 10% 16% 8% building and maintaining storage tanks and industrial piping. In addition to its French Production / Manufacturing 14 1,130 26% 75% 4% 7% base in Dunkirk, it recently opened another R&D, engineering, design 2 12 4% 1% 2% 1% site to cater better to its French clients in R&D 2 12 4% 1% 2% 1% Saint-Aubin, near Rouen (Normandy) where it has already created 15 jobs. Business services 6 82 11% 5% 2% 2% Total 53 1,497 100% 100% 4% 4%

* Share of Dutch investments in the total number of investments in each business activity. Key: In 2017, 26% of Dutch investments in France were in production/manufacturing; 4% of foreign investments in this area were made by Dutch companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projects Jobs Projects Jobs Projects Jobs

Wholesale and retail 18 125 34% 8% 18% 5%

Agri-food, agriculture, fishing 11 905 21% 60% 14% 38%

Transport, storage 5 50 9% 3% 10% 4%

Energy, recycling, other concessions 3 91 6% 6% 6% 12%

Consulting, engineering and business services 3 31 6% 2% 3% 1%

Software and IT services 2 35 4% 2% 1% 1%

Perfumes, cosmetics 2 26 4% 2% 8% 10%

Other services 2 25 4% 2% 7% 9%

Metals, metalworking 1 90 2% 6% 2% 3%

Machinery and mechanical equipment 1 80 2% 5% 1% 2%

Glass, ceramics, minerals, wood, paper 1 12 2% 1% 3% 1%

Hospitality, tourism and restaurants 1 10 2% 1% 6% 1%

Financial services, banking and insurance 1 10 2% 1% 3% 2%

Construction, building materials 1 5 2% 0.3% 3% 1%

Automotive industry 1 2 2% 0.1% 1% 0.1%

Total 53 1,497 100% 100% 4% 4%

* Share of Dutch investments in the total number of investments in each business sector. Key: In 2017, 34% of Dutch investments in France were in the wholesale and retail sector; 18% of foreign investments in this sector were made by Dutch companies.

Business France - 2017 Annual Report INVEST There were nine investments from CEE2 countries in France in 2017, creating or CENTRAL maintaining & EASTERN Central and Eastern European countries, EUROPE 226 jobs. attracting 19% of their projects in Europe, ahead of France (16%) and Slovakia (also 16%).3

CENTRAL AND EASTERN SELECTED INVESTMENT FLOW EUROPEAN COMPANIES PROJECTS IN 2017 IN FRANCE Eco Wipes EWS: This Polish manufacturer There are more than 90 Central and Eastern of toiletries and home care products European companies operating in France, 9 acquired the Grand Est-based company where they employ around 2,700 people. projects Hydra Cosmetics, saving 47 jobs. It now plans (Business France) Nine projects were recorded in France from to invest to upgrade the facility, with a view CEE countries in 2017, creating or maintaining to increasing production capacity. 226 jobs. 226 Production/manufacturing operations COMARCH SAS: Polish software publisher jobs and IT services provider Comarch SAS (Business France) accounted for 33% of investments and 66% of jobs generated by CEE investors, invested €8.3 million in Lezennes (Hauts while 78% of all projects were made in de France region) to build a data center manufacturing sectors. Chemicals/plastics to serve its customers in Western Europe. made up 22% of projects received and half The investment led to the recruitment of 10 (49%) of jobs generated. people in 2017, with a further 30 jobs set to be created by the end of 2019. STOCK More than one-third of these projects were located in the Grand Est region (33%). PLASTIWELL: In June 2017, this Polish plastics processing group specializing in injection molding, thermoforming More than CENTRAL AND EASTERN and thermocompression acquired a EUROPEAN INVESTMENTS French manufacturer of plastic technical 90 IN EUROPE components Sotira, based in Meslay-du- companies Maine (Pays de la Loire region). Plastiwell in France In 2017, Germany was the leading European already has eight factories in France and (Eurostat) recipient of job-creating investment from maintained 90 jobs through this investment.

More than TOP 5 SOUTH AFRICAN COMPANIES 2,700 BY EMPLOYMENT IN FRANCE employees (Eurostat) Parent company Workforce Main business sector in France €834 PLASTIWELL (Poland) Chemicals, plastics 450-500 million MR R. K. KARKOSIK – BORYSZEW (Poland) Chemicals, plastics 150-200 FDI stock in France1 (Banque de France) Medical/surgical equipment, diagnostics LINET SPOL. S.R.O. (Czech Republic) 100-120 and devices

€27.2 SYNTHOS SA (Poland) Chemicals, plastics 110 billion French exports COMARCH SA (Poland) Software and IT services 90 (French Customs Authorities)

1 FDI stock in France (immediate investor) as of December 31, 2016, excluding Poland. 2 Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia. 8 3 Business France Europe Observatory. companies in the Forbes 2000 BREAKDOWN OF PROJECTS BY SOURCE COUNTRY NUMBER

Source country Projets Jobs

Poland 6 186

Czech Republic 2 30

Slovenia 1 10

Total 9 226

BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business activity Projets Jobs Projets Jobs Projets Jobs

Decision-making centers 1 10 11% 4% 0.3% 0.2%

First-time investments 1 10 11% 4% 0.3% 0.3%

Production / Manufacturing 3 150 33% 66% 1% 1%

R&D, engineering, design 1 20 11% 9% 1% 1%

R&D 1 20 11% 9% 1% 1%

Business services 4 46 44% 20% 2% 1%

Total 9 226 100% 100% 1% 1%

* Share of Central and Eastern European investments in the total number of investments in each business activity. Key: In 2017, 33% of Central and Eastern European investments in France were in production/manufacturing; 1% of foreign investments in this area were made by Central and Eastern European companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Business sector Projets Jobs Projets Jobs Projets Jobs

Chemicals, plastics 2 110 22% 49% 4% 7%

Software and IT services 2 35 22% 15% 1% 1%

Perfumes, cosmetics 1 40 11% 18% 4% 15%

Electrical/electronic/IT equipment 1 20 11% 9% 2% 3%

Glass, ceramics, minerals, wood, paper 1 10 11% 4% 3% 1%

Pharmaceuticals and biotechnologies 1 10 11% 4% 4% 1%

Construction, building materials 1 1 11% 0.4% 3% 0.2%

Total 9 226 100% 100% 1% 1%

* Share of Central and Eastern European investments in the total number of investments in each business sector. Key: In 2017, 22% Central and Eastern European investments in France were in the chemicals/plastics sector; 4% of foreign investments in this sector were made by Central and Eastern European companies.

Business France - 2017 Annual Report INVEST Eight job-creating MIDDLE EAST INVESTMENTS investment decisions IN EUROPE In 2017, Spain was the largest European were made in France recipient of job-creating investment from Middle East countries, attracting 21% of their in 2017 by companies projects in Europe, followed by the United from countries in the Kingdom (18%), France (11%), and Germany, 3 2 the Netherlands and Portugal (all 11%). MIDDLE EAST Middle East , creating or maintaining 91 jobs. SELECTED INVESTMENT PROJECTS IN 2017 Dubai Port World: DP World subsidiary MIDDLE EAST COMPANIES P&O Ports announced a €30 million FLOW IN FRANCE investment in partnership with the commercial port of Sète, in southern There are around 300 companies from Middle France (Occitanie region) for the creation East countries operating in France, where of a container terminal, generating 30 jobs. they employ more than 24,000 people. 8 Other plans currently being considered projects Eight job-creating investment decisions for the port of Sète include running a (Business France) in France from Middle East countries were fruit terminal and expanding the marina recorded in 2017, creating or maintaining in partnership with a leading name in the nearly a hundred jobs. sector. 91 These investments came from Egypt jobs BCC Egypt: The Egyptian Best Cheese (Business France) (3 projects), the United Arab Emirates (3), Qatar (1) and Iran (1). Company (BCC) is expanding internationally through a franchise agreement. It is More than half (63%) of these projects currently opening its first European base in involved decision-making centers (all first- the form of a pizza dough and ingredients time investments), accounting for 49% of jobs production laboratory in the greater Lyon generated by Middle East investment. area (Auvergne-Rhône-Alpes region). This STOCK Investments by Middle East countries will be followed by the gradual opening were made in a total of seven sectors, with of between six and ten restaurants in the two projects in agri-food, while they were south of France, as part of the American More than mostly located in Auvergne-Rhône-Alpes pizza chain Papa John’s. The company’s (2 projects), Provence-Alpes-Côte d’Azur (2) investment is expected to create 30 jobs 300 and Ile de France (Paris region) (2). initially. companies in France (Orbis) TOP 5 MIDDLE EAST COMPANIES More than BY EMPLOYMENT IN FRANCE Parent company Workforce 24,000 Main business sector in France (Orbis) employees AL MANNAI CORPORATION Financial services, banking and insurance 9,000-10,000 (GFI INFORMATIQUE) (Qatar) Software and IT services

MERIT CORPORATION (J. SAADE) Transport, storage 4,000-5,000 €8.5 (CMA CGM) (Lebanon)

billion DIVINE INVESTMENTS (PRINTEMPS) Financial services, banking and insurance 1 3,000 FDI stock in France (Qatar) Wholesale and retail (Banque de France)

CONSTELLATION HOTELS (HYATT) (Qatar) Hospitality 1,000-1,500

KATARA HOSPITALITY (PENINSULA) €15.6 Hospitality 1,000-1,500 billion (Qatar) French exports 1 FDI stock in France (immediate investor) as of December 31, 2016. (French Customs Authorities) FDI stock by ultimate investor as of December 31, 2015 was €9.2 billion.. 2 Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates. 3 Business France Europe Observatory. 49 companies in the Forbes 2000 Zero.1: Based within the Dubai Silicon BREAKDOWN OF PROJECTS Oasis free trade area, this startup develops software and hardware solutions using BY SOURCE COUNTRY LiFi technology (wireless communication NUMBER using light to transmit data). In 2017, it won Source country the French Tech Dubai UAE Award for its Projects Jobs innovative solutions. Zero.1 is currently Egypt 3 37 setting up an R&D center at the Station F United Arab Emirates 3 34 incubator in Paris (Ile de France), and there are also plans to open a production facility. Qatar 1 15 Iran 1 5

Total 8 91

BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 5 45 63% 49% 1% 1%

First-time investments 5 45 63% 49% 2% 1%

Logistics 1 30 13% 33% 2% 1%

R&D, engineering, design 1 1 13% 1% 1% 0.04%

R&D 1 1 13% 1% 1% 0.1%

Business services 1 15 13% 16% 0.4% 0.3%

Total 8 91 100% 100% 1% 0.3%

* Share of Middle East investments in the total number of investments in each business activity. Key: In 2017, 63% of Middle East investments in France were in decision-making centers; 1% of foreign investments in this area were made by Middle East companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Agri-food, agriculture, fishing 2 35 25% 38% 3% 1%

Transport, storage 1 30 13% 33% 2% 3%

Financial services, banking and insurance 1 15 13% 16% 3% 3%

Energy, recycling, other concessions 1 5 13% 5% 2% 1%

Consulting, engineering and business services 1 3 13% 3% 1% 0.1%

Software and IT services 1 2 13% 2% 1% 0.1%

Telecoms, internet service providers 1 1 13% 1% 17% 0.5%

Total 8 91 100% 100% 1% 0.3%

* Share of Middle East investments in the total number of investments in each business sector. Key: In 2017, 25% of Middle East investments in France were in the agri-food sector; 3% of foreign investments in this sector were made by Middle East countries.

Business France - 2017 Annual Report INVEST Over 200 PORTUGUESE INVESTMENTS Portuguese IN EUROPE In 2017, Germany was the leading European companies operate recipient of job-creating investment from Portugal, attracting 40% of Portuguese in France, where projects in Europe.² they employ around PORTUGAL 5,600 people. SELECTED INVESTMENT PROJECTS IN 2017 Grupo Proef: This engineering firm, which PORTUGUESE COMPANIES builds electricity and telecommunications IN FRANCE networks, set up operations in Saint-Priest (Auvergne-Rhône-Alpes region). Already well FLOW There are over 200 Portuguese companies established in Ile de France (Paris region), the operating in France, where they employ company is now expanding in the south of more than 5,600 people. France, with plans to increase French revenues Eight Portuguese investments were recorded from €11 million to €40 million by 2020. The 8 in France in 2017, creating or maintaining 118 project will lead to the creation of 40 jobs. projects jobs. (Business France) Vigobloco: This Portuguese firm specializes Half of all Portuguese projects involved in producing prefabricated concrete production/manufacturing operations, structures. VGB France, its French subsidiary, 118 while sector-wise, 25% were in construction/ was founded in the Bourgogne-Franche- jobs building materials, with another 25% in glass, Comté region in 2015 and recently secured two (Business France) ceramics, minerals, wood and paper. contracts in France worth a total of €8 million Auvergne-Rhône-Alpes and Hauts de France in partnership with its parent company. VGB were the leading destinations for Portuguese France currently employs nearly forty people investments in 2017, each attracting a quarter in the country and plans to recruit and train of all projects. additional personnel over the next two years. STOCK TOP 5 PORTUGUESE COMPANIES More than BY EMPLOYMENT IN FRANCE

200 Parent company Main business sector Workforce companies in France in France (Eurostat) GRUPO VISABEIRA (CONSTRUCTEL) Telecoms, internet service providers 1,000-1,200

INAPA - INVESTIMENTOS, Wholesale and retail 200-300 More than PARTICIPAÇOES E GESTAO, S.A. 5,600 employees (Eurostat) SIMOLDES PLASTICOS Chemicals, plastics 200-250

FUNDO DE RESOLUÇÃO Financial services, banking and insurance 150-200 €1.2 (BANQUE ESPIRITO SANTO)

billion Agri-food, agriculture, fishing 1 AMORIM GROUP 150 FDI stock in France Glass, wood, paper 23rd place (Banque de France) 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €947 million. 2 €4.8 Business France Europe Observatory. billion French exports 19th place (French Customs Authorities) 5 companies in the Forbes 2000 BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 2 25 25% 21% 1% 1%

First-time investments 1 5 13% 4% 0.3% 0.2%

French headquarters 1 20 13% 17% 3% 3%

Production / Manufacturing 4 52 50% 44% 1% 0.3%

Business services 2 41 25% 35% 1% 1%

Total 8 118 100% 100% 1% 0.4%

* Share of Portuguese investments in the total number of investments in each business activity. Key: In 2017, 50% of Portuguese investments in France were in production/manufacturing; 1% of foreign investments in this area were made by Portuguese companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Glass, ceramics, minerals, wood, paper 2 40 25% 34% 5% 4%

Construction, building materials 2 3 25% 3% 6% 1%

Consulting, engineering and business services 1 40 13% 34% 1% 2%

Automotive industry 1 15 13% 13% 1% 0.4%

Energy, recycling, other concessions 1 15 13% 13% 2% 2%

Other services 1 5 13% 4% 3% 2%

Total 8 118 100% 100% 1% 0.4%

* Share of Portuguese investments in the total number of investments in each business sector. Key: In 2017, 25% of Portuguese investments in France were in the glass, ceramics, minerals, wood and paper sector. 5% of foreign investments in this sector were made by Portuguese companies.

Business France - 2017 Annual Report INVEST The United Kingdom was the fourth leading investor

in France in 2017, British companies mainly invested in Ile de accounting for France (Paris region) (37%), Auvergne-Rhône- UNITED Alpes (15%) and Occitanie (12%). KINGDOM 7% of investment projects and 8% BRITISH INVESTMENTS IN EUROPE of jobs created In 2017, France was the second leading or maintained. European recipient of British job-creating FLOW investment, attracting 16% of British projects in Europe, preceded by Germany (22%) but ahead of Spain and Ireland (both 9%).2 BRITISH COMPANIES 89 IN FRANCE projects SELECTED INVESTMENT (Business France) There are over 3,000 British companies PROJECTS IN 2017 operating in France, where they employ 180,000 people. Ebury Partners: This company specializing 2,527 Eighty-nine British investment decisions were in financial and transaction solutions for jobs recorded in 2017, creating or maintaining internationally growing SMEs set up a French (Business France) 2,527 jobs. subsidiary in Paris. Founded in 2009, the firm already has 180 employees, including 60 in British investments were made primarily in Spain, and plans to create 70 jobs in France decision-making centers (31% of projects), over the next three years. production/manufacturing operations (21%) and retail outlets (20%). British companies SETL: This British startup has developed were responsible for 14% of all projects STOCK private blockchain technology to secure data involving retail outlets, and 29% of all jobs transmission and transactions, enabling billions generated in this area. of payments and settlements to be made every Sector-wise, services made up the bulk of day. The company has 25 employees and plans More than investments (63% of projects in 2017), led by to recruit between 100 and 150 people across consulting, engineering and business services the world within the next two years, including 3,000 (18%), wholesale and retail (17%), and financial 25 in Paris, where it has announced that it will companies services, banking and insurance (11%). be opening a French subsidiary. in France (Eurostat) TOP 5 BRITISH COMPANIES More than BY EMPLOYMENT IN FRANCE

180,000 Parent company Main business sector Workforce employees (Eurostat) in France KINGFISHER PLC Wholesale and retail 18,000-20,000 (CASTORAMA) Furnishings, household goods

€77.7 Hospitality, tourism and restaurants COMPASS GROUP PLC Consulting, engineering and 14,000-15,000 billion business services FDI stock in France1 Financial services, banking and insurance 3rd place HSBC HOLDINGS PLC 8,500-9,000 (Banque de France) Other services

ASSOCIATED BRITISH FOODS PLC Textiles, industrial textiles, clothing 4,000 €31.0 (PRIMARK) and accessories Consulting, engineering RENTOKIL INITIAL 4,000 billion and business services French exports 6th place * Excluding investment funds (French Customs Authorities) 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €76.2 billion. 2 Business France Europe Observatory. 91 companies in the Forbes 2000 Croda International: Seferma, a subsidiary BREAKDOWN OF PROJECTS of Croda International specializing in active ingredients for the cosmetics sector, invested BY BUSINESS ACTIVITY €10 million at its site in Le Perray-en-Yvelines, NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) Ile de France (Paris region), where it plans to Business activity Projects Jobs Projects Jobs Projects Jobs create around twenty jobs. Decision-making centers 28 495 31% 20% 8% 12%

First-time investments 25 465 28% 18% 9% 15%

Global / 2 20 2% 1% 7% 6% European headquarters

French headquarters 1 10 1% 0% 3% 1%

Retail outlets 18 534 20% 21% 14% 29%

Production / Manufacturing 19 915 21% 36% 6% 6%

R&D, engineering, design 5 67 6% 3% 4% 3%

R&D 2 50 2% 2% 2% 3%

Business services 15 326 17% 13% 6% 7%

Consumer services 4 190 4% 8% 13% 19%

Total 89 2,527 100% 100% 7% 8%

* Share of British investments in the total number of investments in each business activity. Key: In 2017, 31% of British investments in France were in decision-making centers; 8% of foreign investments in this area were made by British companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Consulting, engineering and business services 16 270 18% 11% 13% 11%

Wholesale and retail 15 266 17% 11% 15% 10%

Financial services, banking and insurance 10 185 11% 7% 30% 34%

Software and IT services 8 280 9% 11% 4% 9%

Chemicals, plastics 6 101 7% 4% 11% 7%

Textiles, industrial textiles, clothing and accessories 4 256 4% 10% 7% 25%

Machinery and mechanical equipment 4 47 4% 2% 5% 1%

Metals, metalworking 3 580 3% 23% 7% 21%

Transport, storage 3 187 3% 7% 6% 16%

Perfumes, cosmetics 3 27 3% 1% 12% 10%

Electrical/electronic/IT equipment 3 11 3% 0% 5% 1%

Hospitality, tourism and restaurants 2 80 2% 3% 11% 10%

Furnishings, household goods 2 71 2% 3% 7% 20%

Pharmaceuticals and biotechnologies 2 70 2% 3% 7% 9%

Other services 2 35 2% 1% 7% 12%

Construction, building materials 1 24 1% 1% 3% 5%

Agri-food, agriculture, fishing 1 12 1% 0% 1% 0.5%

Automotive industry 1 10 1% 0% 1% 0.3%

Energy, recycling, other concessions 1 10 1% 0% 2% 1%

Aerospace, naval and railway equipment 1 3 1% 0% 3% 0.2%

Glass, ceramics, minerals, wood, paper 1 2 1% 0% 3% 0.2%

Total 89 2,527 100% 100% 7% 8%

* Share of British investments in the total number of investments in each business sector. Key: In 2017, 18% of British investments in France were in the consulting, engineering and business services sector; 13% of foreign investments in this sector were made by British companies.

Business France - 2017 Annual Report INVEST Five new Russian companies invested in France in 2017.

RUSSIAN COMPANIES SELECTED INVESTMENT IN FRANCE RUSSIA PROJECTS IN 2017 There are 80 Russian companies operating in France, where they employ more than 4,500 Zaba: This tech startup develops connected people. sensors for industry that collect information such as temperature, pressure and fluid Six investments from Russia were recorded consumption. In 2017, it decided to set up in 2017, creating 35 jobs, including five first- operations in Nice (Provence-Alpes-Côte time investments in France and a production/ FLOW d’Azur region) with an investment that will manufacturing project. generate around ten jobs over the next three Five of these six were in manufacturing years. sectors, while location-wise, Ile de France 6 (Paris region) and Provence-Alpes-Côte Ilgiz Fazulzyanov: Founded in 1992, projects d’Azur both attracted a third of all Russian luxury jeweler ILGIZ F specializes in working (Business France) investments, with the remainder being made with hot enamel to make art jewelry for in Auvergne-Rhône-Alpes and Nouvelle collectors. In 2017, the company decided Aquitaine. to set up a subsidiary in Paris, marking the 35 first phase of its international development jobs strategy. (Business France) RUSSIAN INVESTMENTS IN EUROPE Fijie: Founded in 1998, Fijie’s laboratories specialize in searching for innovative In 2017, France was the second leading solutions in the field of anti-aging and European recipient of job-creating projects cosmetic medicine. The company has now from Russia, attracting 20% of all Russian opened its first European subsidiary in Paris STOCK projects in Europe, preceded by Germany to market its products in Europe, creating (27%).3 five jobs.

80 TOP 5 RUSSIAN COMPANIES companies BY EMPLOYMENT IN FRANCE in France1 (Business France, Moscow) Parent company Workforce Main business sector in France

RZD - CHEMINS DE FER RUSSE (GEFCO) Transport, storage 3,500-4,000 More than 4,500 KASPERSKY LAB Software and IT services 50-100 employees (Orbis) MR T. GORYAYEV (SPIRIT FRANCE) Agri-food 50-100

€1.8 ICC (CHOCOLATERIE DE PROVENCE) Agri-food 50-100 billion 2 GAZPROM MARKETING FDI stock in France Financial services 20-50 21st place & TRADING FRANCE (Banque de France) 1 Business France Moscow office figures. 2 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €2.1 billion. €5.6 3 Business France Europe Observatory. billion French exports 14th place (French Customs Authorities) 27 companies in the Forbes 2000 BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 5 30 83% 86% 1% 1%

First-time investments 5 30 83% 86% 2% 1%

Production / Manufacturing 1 5 17% 14% 0.3% 0.03%

Total 6 35 100% 100% 0.5% 0.1%

* Share of Russian investments in the total number of investments in each business activity. Key: In 2017, 83% of Russian investments in France were in decision-making centers; 1% of foreign investments in this area were made by Russian companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Consulting, engineering and business services 1 10 17% 29% 1% 0.4%

Agri-food, agriculture, fishing 1 5 17% 14% 1% 0.2%

Furnishings, household goods 1 5 17% 14% 3% 1%

Electrical/electronic/IT equipment 1 5 17% 14% 2% 1%

Perfumes, cosmetics 1 5 17% 14% 4% 2%

Textiles, industrial textiles, clothing and accessories 1 5 17% 14% 2% 0.5%

Total 6 35 100% 100% 0.5% 0.1%

* Share of Russian investments in the total number of investments in each business sector. Key: In 2017, 17% of Russian investments in France were in the consulting, engineering and business services sector; 1% of foreign investments in this sector were made by Russian companies.

Business France - 2017 Annual Report INVEST Swedish investments in France were up more than 75% in 2017.

SWEDISH INVESTMENTS SWEDEN SWEDISH COMPANIES IN EUROPE IN FRANCE In 2017, France was the leading European There are over 470 Swedish companies recipient of job-creating investment from operating in France, where they employ Sweden, attracting 20% of Swedish projects around 95,000 people. in Europe, ahead of the United Kingdom (16%) and Poland (12%).3 FLOW Forty-four Swedish investments were recorded in 2017, up 76% year-on-year, creating or maintaining 825 jobs. SELECTED INVESTMENT More than a third of these Swedish projects PROJECTS IN 2017 44 involved retail outlets (36%), and over a projects quarter decision-making centers (25%, of Länsförsäkringar AB: Agria, a subsidiary (Business France) which 91% were first-time investments in of Swedish group Länsförsäkringar, is one France), with a further 20% in production/ of the world’s leading pet insurers, offering manufacturing operations. Swedish policies tailored to the needs of breeders 825 companies accounted for 13% of all foreign and owners of purebred dogs. In 2017, it jobs investment in retail outlets, and 8% of jobs established itself in Paris in partnership with (Business France) generated in this area. Société Centrale Canine with an investment Over half of Swedish investments were made that will create 50 jobs. in three sectors: software and IT services Investor AB: Owned by Swedish industrial (20% of projects), textiles and clothing giant Investor AB, Permobil is one of the (20%) and wholesale/retail (14%), while world’s leading manufacturers of electric STOCK 15% of all foreign investments in the textiles wheelchairs. After acquiring French sector were made by Swedish companies. company iCare JMB SAS in Ile de France Location-wise, 43% of Swedish investments (Paris region) in 2016, it decided to bring were made in Ile de France (Paris region), its workforce together under one roof near More than followed by Nouvelle Aquitaine (11%), Centre- Paris-Orly Airport. The move was finalized in 500 Val de Loire (9%) and Grand Est (also 9%). 2017, creating 40 jobs. companies in France (Orbis) TOP 5 SWEDISH COMPANIES BY EMPLOYMENT IN FRANCE Parent company Workforce 95,000 Main business sector in France employees1 Consulting, engineering SECURITAS AB 20,000 and business services €5.7 billion AB VOLVO Automotive industry 10,000-12,000 FDI stock in France2 13th place IKEA Furnishings, household goods 10,000 (Banque de France) Textiles, industrial textiles, 7,000 HENNES & MAURITZ AB clothing and accessories €5.0 Wholesale and retail NORDIC CAPITAL SVENSKA AKTIEBOLAG Other services 5,000-6,000 billion (Capio) French exports

18th place 1 Business France Stockholm office figures. (French Customs Authorities) 2 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €6.8 billion. 3 Business France Europe Observatory. 26 companies in the Forbes 2000 Hemverket AB: Estate agent Hemverket BREAKDOWN OF PROJECTS AB opened a subsidiary in Paris under the name Marton France SAS. The company has BY BUSINESS ACTIVITY adopted an innovative model that changes NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) the rules of the property market by adjusting Business activity Projects Jobs Projects Jobs Projects Jobs agency fees in line with the true value added provided to clients. The service was launched Decision-making centers 11 208 25% 25% 3% 5% in France in 2017 and the firm plans to recruit First-time investments 10 188 23% 23% 3% 6% 40 people over the next three years. French headquarters 1 20 2% 2% 3% 3%

Retail outlets 16 153 36% 19% 13% 8%

Production / Manufacturing 9 363 20% 44% 3% 2%

Business services 8 101 18% 12% 3% 2%

Total 44 825 100% 100% 3% 2%

* Share of Swedish investments in the total number of investments in each business activity. Key: In 2017, 25% of Swedish investments in France were in decision-making centers; 3% of foreign investments in this area were made by Swedish companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Software and IT services 9 138 20% 17% 5% 4%

Textiles, industrial textiles, clothing and accessories 9 83 20% 10% 15% 8%

Wholesale and retail 6 50 14% 6% 6% 2%

Automotive industry 4 273 9% 33% 6% 7%

Furnishings, household goods 3 31 7% 4% 10% 9%

Aerospace, naval and railway equipment 2 50 5% 6% 6% 3%

Machinery and mechanical equipment 2 35 5% 4% 2% 1%

Consumer electronics 2 18 5% 2% 14% 7%

Financial services, banking and insurance 1 50 2% 6% 3% 9%

Chemicals, plastics 1 30 2% 4% 2% 2%

Transport, storage 1 20 2% 2% 2% 2%

Glass, ceramics, minerals, wood, paper 1 20 2% 2% 3% 2%

Energy, recycling, other concessions 1 15 2% 2% 2% 2%

Metals, metalworking 1 10 2% 1% 2% 0%

Electrical/electronic/IT equipment 1 2 2% 0% 2% 0%

Total 44 825 100% 100% 3% 2%

* Share of Swedish investments in the total number of investments in each business sector. Key: In 2017, 20% of Swedish investments in France were in the software/IT services sector; 5% of foreign investments in this sector were made by Swedish companies.

Business France - 2017 Annual Report INVEST Fifty-nine Swiss investments were recorded in France SWISS INVESTMENTS in 2017, up 37% IN EUROPE In 2017, France was the leading European year-on-year, creating recipient of job-creating investment from Switzerland, attracting 34% of Swiss projects SWITZERLAND or maintaining in Europe, ahead of Germany (15%), the 1,503 jobs (+46%). United Kingdom (10%) and Spain (also 10%).2 SELECTED INVESTMENT SWISS COMPANIES PROJECTS IN 2017 FLOW IN FRANCE Mindmaze: This Swiss startup, founded There are nearly 1,900 Swiss companies in 2012, specializes in developing virtual operating in France, where they employ more reality software to help with the neurological 59 than 140,000 people. rehabilitation of stroke victims. Mindmaze established itself in France in 2017, and projects Fifty-nine Swiss investment decisions were has an R&D center in Paris, where a dozen (Business France) recorded in 2017, creating or maintaining 1,503 researchers have been working on how to jobs. interpret brain signals. 1,503 Swiss investors focused on production/ jobs manufacturing operations (36% of projects; Stäubli International AG: This Swiss (Business France) 35% of jobs generated), followed by business group designs, manufactures and markets services (24% of projects; 39% of jobs), R&D, looms, coupling systems, connectors and engineering and design (14%) and decision- industrial robots. Its Faverges site near Lake making centers (14%), the latter of which Annecy (Auvergne-Rhône-Alpes region) included a Global/European headquarters has more than 1,100 employees and was project. significantly expanded in 2017, creating 100 jobs. STOCK Sector-wise, Swiss companies invested mainly in consulting/engineering/business services Sophia Genetics: Founded in 2011, Sophia (27% of project; 39% of jobs), and electrical/ Genetics uses digital technology including electronic/IT equipment (12% of projects). Next-Generation DNA Sequencing (NGS) The leading recipients of Swiss investments to identify genetic disorders such as cancer 1,900 were Auvergne-Rhône-Alpes (22% of projects; and rare diseases. In 2017, it opened a base companies 34% of jobs generated), Occitanie (14%), in Nouvelle Aquitaine (south-west France) in France Bourgogne-Franche-Comté (14%) and Ile de to expand its R&D operations, creating jobs (Eurostat) France (Paris region) (12%). initially for around a dozen researchers.

More than TOP 5 SWISS COMPANIES 140,000 BY EMPLOYMENT IN FRANCE employees (Eurostat) Parent company Workforce Main business sector in France

€69.9 NESTLÉ S.A. Agri-food, agriculture, fishing 15,000-20,000 billion 1 FDI stock in France STMICROELECTRONICS Electronic components 9,000-10,000 4th place (Banque de France) KÜHNE HOLDING AG Transport, storage 9,000-10,000

Consulting, engineering €15.7 ADECCO SA 5,000-6,000 billion and business services French exports 9th place LAFARGEHOLCIM LTD. Construction, building materials 4,000-5,000 (French Customs Authorities)

1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €76.6 billion. 46 2 Business France Europe Observatory. companies in the Forbes 2000 Adecco: The world’s leading provider of BREAKDOWN OF PROJECTS human resources solutions already has a strong presence in France with nearly 5,100 BY BUSINESS ACTIVITY employees. In 2017, the temp staffing giant NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%) decided to significantly increase its French Business activity headcount by creating more than 300 jobs Projects Jobs Projects Jobs Projects Jobs at its sites in Lyon (Auvergne-Rhône-Alpes Decision-making centers 8 83 14% 6% 2% 2% region), Toulouse (Occitanie), Bordeaux First-time investments 6 62 10% 4% 2% 2% (Nouvelle Aquitaine) and Caen (Normandy). Global / 1 1 2% 0.1% 3% 0.3% European headquarters

French headquarters 1 20 2% 1% 3% 3%

Logistics 3 126 5% 8% 5% 4%

Retail outlets 1 19 2% 1% 1% 1%

Production / Manufacturing 21 530 36% 35% 6% 3%

R&D, engineering, design 8 148 14% 10% 6% 6%

R&D 5 53 8% 4% 6% 4%

Business services 14 584 24% 39% 6% 12%

Consumer services 4 13 7% 1% 13% 1%

Total 59 1,503 100% 100% 5% 4%

* Share of Swiss investments in the total number of investments in each business activity. Key: In 2017, 36% of Swiss investments in France were in production/manufacturing; 6% of foreign investments in this area were made by Swiss companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Consulting, engineering and business services 16 588 27% 39% 13% 23%

Electrical/electronic/IT equipment 7 122 12% 8% 13% 16%

Software and IT services 5 55 8% 4% 3% 2%

Transport, storage 4 140 7% 9% 8% 12%

Textiles, industrial textiles, clothing and accessories 4 73 7% 5% 7% 7%

Agri-food, agriculture, fishing 4 33 7% 2% 5% 1%

Financial services, banking and insurance 3 4 5% 0% 9% 1%

Machinery and mechanical equipment 2 121 3% 8% 2% 3%

Aerospace, naval and railway equipment 2 95 3% 6% 6% 5%

Construction, building materials 2 90 3% 6% 6% 19%

Glass, ceramics, minerals, wood, paper 2 85 3% 6% 5% 9%

Pharmaceuticals and biotechnologies 2 23 3% 2% 7% 3%

Automotive industry 1 22 2% 1% 1% 1%

Energy, recycling, other concessions 1 20 2% 1% 2% 3%

Wholesale and retail 1 19 2% 1% 1% 1%

Chemicals, plastics 1 10 2% 1% 2% 1%

Metals, metalworking 1 2 2% 0.1% 2% 0.1%

Other services 1 1 2% 0.1% 3% 0.4%

Total 59 1,503 100% 100% 5% 4%

* Share of Swiss investments in the total number of investments in each business sector. Key: In 2017, 27% of Swiss investments in France were in the consulting, engineering and business services sector; 13% of foreign investments in this sector were made by Swiss companies.

Business France - 2017 Annual Report INVEST Three Taiwanese investments were recorded in France in 2017.

TAIWANESE COMPANIES TAIWAN IN FRANCE SELECTED INVESTMENT There are 50 Taiwanese companies operating PROJECTS IN 2017 in France, where they employ more than 1,100 Keitai International (Anicomic): people. Taiwanese firm Keitai has developed an Three new Taiwanese investments were application for anyone to create, publish and FLOW recorded in 2017, creating nearly a dozen jobs. share their own manga comics. In 2016, it All of these projects were in services sectors, took part in an accelerator program offered and involved two first-time investments in by The Bridge, La French Tech Culture’s France, as well as an R&D center. living lab in Avignon (Provence-Alpes-Côte d’Azur region). Subsequently, Keitai decided Taiwanese companies established themselves 3 to set up operations in Avignon in 2017 to projects in Ile de France (Paris region), Auvergne- reap the benefits of the useful contacts it (Business France) Rhône-Alpes and Provence-Alpes-Côte had established within the local business d’Azur in 2017. 11 community. jobs Thinkcloud: This firm specializes in (Business France) TAIWANESE INVESTMENTS developing a secure biometric selfie video IN EUROPE e-signature solution. In 2017, it opened its first European subsidiary in Paris. France is In 2017, Germany was the leading European the group’s leading foreign market, as well as recipient of job-creating investment from the country in which it won a gold medal at Taiwan, attracting 33% of Taiwanese projects the 2016 Lépine inventors’ contest. The firm in Europe, ahead of the Netherlands (25%) is currently in discussions with several major STOCK and France (17%).2 insurance groups and banks in France.

TOP 5 TAIWANESE COMPANIES 50 BY EMPLOYMENT IN FRANCE companies in France Parent company Main business sector Workforce (Orbis) in France Transport, storage EVERGREEN 200 Hospitality, tourism and restaurants ACER INC. Consumer electronics 100-150 1,100 TONGTAI MACHINE & TOOL CO., LTD. Machinery and mechanical equipment 100-150 (Orbis) employees ASUSTEK COMPUTER INC. Consumer electronics 100

MEI TA INDUSTRIAL CO., LTD. Machinery and mechanical equipment 50-100 €173 million BREAKDOWN OF PROJECTS FDI stock in France1 50th place BY BUSINESS ACTIVITY (Banque de France) NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business activity Projects Jobs Projects Jobs Projects Jobs €2.8 Decision-making centers 2 6 67% 55% 1% 0.1% billion First-time investments 2 6 67% 55% 1% 0.2% French exports R&D, engineering, design 1 5 33% 45% 1% 0.2% 33th place R&D 1 5 33% 45% 1% 0.3% (French Customs Authorities) Total 3 11 100% 100% 0.2% 0.03%

* Share of Taiwanese investments in the total number of investments in each business activity. 46 Key: In 2017, 67% of Taiwanese investments in France were in decision-making centers; companies 1% of foreign investments in this area were made by Taiwanese companies. in the Forbes 2000

1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €147 million. 2 Business France Europe Observatory. BREAKDOWN OF PROJECTS BY BUSINESS SECTOR NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Software and IT services 2 8 67% 73% 1% 0.2%

Wholesale and retail 1 3 33% 27% 1% 0.1%

Total 3 11 100% 100% 0.2% 0.03%

* Share of Taiwanese investments in the total number of investments in each business sector. Key: In 2017, 67% of Taiwanese investments in France were in the software/IT services sector; 1% of foreign investments in this sector were made by Taiwanese companies.

Business France - 2017 Annual Report INVEST Seven Turkish investments were recorded in France in 2017, creating SELECTED INVESTMENT 78 jobs. PROJECTS IN 2017 TURKEY Ekol Logistics: Turkish carrier Ekol currently operates a weekly sea freight TURKISH COMPANIES service between Izmir, in Turkey, and the IN FRANCE southern French port of Sète, with a second crossing in the pipeline. In Sète, Ekol has There are nearly a hundred Turkish already expanded its distribution center from companies operating in France, where they 6,500 to 10,000 sq. m. With this expansion in FLOW employ more than 1,500 people. mind, Ekol opened two further distribution Seven new Turkish investment decisions centers in November 2017, each measuring were recorded in 2017, creating 78 jobs. 2,000 sq. m., in Feyzin, near Lyon (Auvergne- 7 Rhône-Alpes region), and Villeparisis (Ile de These investments mainly involved France / Paris region). These investments projects setting up decision-making centers (43% (Business France) have created a total of 40 jobs to date, with of projects; 64% of jobs generated) and more hires planned. logistics operations (29% of projects), while 78 sector-wise, transport and storage stood out Sentio Sports Analytics: Sentio Sports jobs (43% of projects; 50% of jobs). Analytics is the first foreign startup to have taken part in the French Tech Ticket (Business France) Geographically, Turkish companies invested program through the Tarmac incubator in mainly in Ile de France (Paris region) and Grenoble (Auvergne-Rhône-Alpes region). Auvergne-Rhône-Alpes. It has successfully developed real-time

tracking technology for sports players and teams, without them needing to wear STOCK TURKISH INVESTMENTS sensors. After a successful test season with IN EUROPE the Turkish football league, and a number of Italian teams, Sentio is considering recruiting In 2017, Germany was the leading European up to ten people in France to roll out its recipient of job-creating investment from cutting-edge technology across European 100 Turkey, attracting 35% of Turkish projects football leagues and other sports, such as companies in Europe, ahead of France, the United rugby and handball, as well as to investigate Kingdom and Romania (all 10%).2 new business models. in France (Orbis) More than TOP 5 TURKISH COMPANIES 1,500 BY EMPLOYMENT IN FRANCE employees (Orbis) Parent company Workforce Main business sector in France

KÖKLER YATIRIM HOLDING Agri-food 400-500 €241 (UNITED BISCUITS)

ORHAN HOLDING A.S. million Automotive industry 300-400 FDI stock in France1 (NOBEL PLASTIQUES) 45th place (Banque de France) DOGUS HOLDING Shipyards 200 (MB 92)

ECZACIBASI Ceramics 135 €6.7 (VILLEROY & BOCH) billion ARÇELIK A.S.H French exports Furnishings, household goods 70 (BEKO FRANCE) 12th place (French Customs Authorities) 1 FDI stock in France (immediate investor) as of December 31, 2016. FDI stock by ultimate investor as of December 31, 2015 was €301 million. 10 2 Business France Europe Observatory. companies in the Forbes 2000 BREAKDOWN OF PROJECTS BY BUSINESS ACTIVITY NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business activity Projects Jobs Projects Jobs Projects Jobs

Decision-making centers 3 50 43% 64% 1% 1%

First-time investments 2 20 29% 26% 1% 1%

French headquarters 1 30 14% 38% 3% 4%

Logistics 2 9 29% 12% 3% 0.3%

Production / Manufacturing 1 15 14% 19% 0.3% 0.1%

Business services 1 4 14% 5% 0.4% 0.1%

Total 7 78 100% 100% 1% 0.2%

* Share of Turkish investments in the total number of investments in each business activity. Key: In 2017, 43% of Turkish investments in France were in decision-making centers; 1% of foreign investments in this area were made by Turkish companies.

BREAKDOWN OF PROJECTS BY BUSINESS SECTOR

NUMBER NATIONAL SHARE (%) TOTAL SHARE* (%)

Business sector Projects Jobs Projects Jobs Projects Jobs

Transport, storage 3 39 43% 50% 6% 3%

Electrical/electronic/IT equipment 1 15 14% 19% 2% 2%

Software and IT services 1 10 14% 13% 1% 0.3%

Machinery and mechanical equipment 1 10 14% 13% 1% 0.3%

Construction, building materials 1 4 14% 5% 3% 1%

Total 7 78 100% 100% 1% 0.2 %

* Share of Turkish investments in the total number of investments in each business sector. Key: In 2017, 43% of Turkish investments in France were in the transport/storage sector; 6% of foreign investments in this sector were made by Turkish companies.

Business France - 2017 Annual Report EXPORT

FRENCH EXPORTS TO BELGIUM In 2017, 46,560 establishments exported to Belgium from France. The value of their exports was €32.1 billion (6.9% of all FrenchExport exports). BELGIUM belgqiue Though Belgium enjoyed only moderate Fig. 1 FRENCH EXPORTS TO BELGIUM economic growth in 2017 (+1.7%), French (€ BILLION) exports to the Belgian market rose sharply 34 32.9 (+6.9%), having declined in the three 31.9 32.1 previous years. This increase made Belgium 32 31.2 31.2 30.3 30.4 30.1 France’s fifth largest trading partner in 2017, 29.3 FRENCH ahead of the United Kingdom. It was also the 30 EXPORTS (2017) country to which the most French companies 28 exported, receiving 11.8% of French exports 25.7 to European Union countries. 26 France accounted for 9.6% of global 24

exports to Belgium in 2016, comparable to 22 46,560 the previous year’s figure and much higher French than its share in global goods exports (3.2%). 20 establishments Provisional statistics from the Belgian 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 exported Foreign Trade Agency ranked France as Source: French Customs Authorities, gross figures, FOB, Export to Belgium Belgium’s third largest supplier in 2017, after excluding military equipment belgqiue the Netherlands and Germany.

34 BREAKDOWN BY SECTOR 32.9 €32.1 OF FRENCH EXPORTS31.9 32.1 % 32 31.2 31.2 30.3 30.4 20 billion TO BELGIUM 30.1 17.5% 29.3 +5.2%18 for transport equipment, +4.9% for 30 15.4% in French The three sectors accounting for the greatest food/beverages,16 and +8.7% for chemicals, 14 13.8% goods exports 28 perfumes and cosmetics.11.6% Only11.3% in the textiles 13.0% proportions of French exports to Belgium 12 25.7 10.5% 8.2% 11.9% 11.2% to Belgium were transport equipment (17.5%), food/ and10 clothing sector did exports fall slightly 26 8.9% 7.7% 7.7% (-0.6%).8 4.7% beverages (15.4%) and chemicals, perfumes 6.6% 7.9% 5.1% 6.2% 5.8% 6 24 5.2% 4.1% 4.6% 3,7% 3.7% and cosmetics (11.6%). 4 3.6% 3.0% 22Nearly all sectors benefited from France’s Belgium2 remained a major trading partner +6.9% improved export performance to Belgium. in0 2017, accounting for a significant share of 20 growth Sales 2008 of 2009 metal 2010 products 2011 2012 2013 were 2014 particularly 2015 2016 2017 French exports in the agricultural products buoyant (+18.3%). The main exporting (11.9%), mining, watercosmetics and energy (13%) and in French Miscellaneous Metal products leather goods Food, beverages sectors also saw a sharp upturn in their sales: petroleum products sectors (13.8%). Textiles, clothing, Petroleum products exports Transport equipment Chemicals, perfumes, Agricultural products

Pharmaceutical products Machinery and equipment Mining, water and energy Wood and paper products to Belgium Rubber and plastic products

Fig. 2 BREAKDOWN BY SECTOR OF FRENCH EXPORTS TO BELGIUM (2017) 6.9% % 20 of all French 18 17.5% exports 16 15.4% 14 13.8% 11.6% 11.3% 13.0% 12 10.5% 8.2% 11.9% 11.2% 10 8.9% 7.7% 7.7% 8 4.7% 6.6% 7.9% 5.1% 6.2% 5.8% 6 5.2% 4.1% 4.6% 3,7% 3.7% #5 4 3.6% 3.0% 2 customer 0 for French exports cosmetics Miscellaneous Metal products leather goods Food, beverages Textiles, clothing, Petroleum products Transport equipment Chemicals, perfumes, Agricultural products

Pharmaceutical products Machinery and equipment Mining, water and energy Wood and paper products Rubber and plastic products

Sector’s share of all French exports Belgium’s share of total French to Belgium exports in the sector

Source: French Customs Authorities, gross figures, FOB, excluding military equipment CONTRIBUTION OF BELGIAN MAIN EXPORT DESTINATIONS FRENCH SUBSIDIARIES IN FRANCE FOR BELGIAN SUBSIDIARIES IMPORTS (2017) TO THE FRENCH ECONOMY ESTABLISHED IN FRANCE In 2015, 482 Belgian subsidiaries in France (2015) exported part of their output. Together, €36.5 these exports amounted to €3.9 billion and DESTINATION SHARE accounted, on average, for 28% of total COUNTRY OF EXPORTS billion company revenues. These firms exported in Belgian primarily to their source country and to goods imports Germany. Belgium was the destination for Belgium 26% to France 26% of the exports of Belgian subsidiaries established in France. Germany 16% In 2015, according to the French National Institute for Statistics and Economic +5.8% Studies (INSEE), Belgian subsidiaries: growth Italy 6% / Employed 134,168 people, 7% of the in Belgian workforce of all foreign-owned companies imports in France. to France Spain 6% / Eccounted for 5% of the revenues of all foreign-owned companies in France. / Ggenerated 4% of the export revenues of United Kingdom 6% 6.7% all foreign-owned companies in France. of all French Source: French Customs Authorities; imports French Treasury Directorate calculations

#4 supplier TOP FIVE BELGIAN EXPORTERS of French IN FRANCE (2016) imports Share French subsidiary Economic activity of export Nationwide revenues rank

Manufacture of other inorganic RHODIA OPERATIONS 70%-90% 37 basic chemicals CONTRIBUTION OF BELGIAN SUBSIDIARIES PROMOD Manufacture of clothing <50% 364 IN FRANCE

SOLVAY SPECIALTY POLYMERS Manufacture of plastics >90% 390 482 FRANCE in primary forms Belgian UMICORE BUILDING PRODUCTS exporting Lead, zinc and tin production 50%-70% 408 companies FRANCE in France (2015) Manufacture of plastics POLYCHIM INDUSTRIE 70%-90% 413 in primary forms

28% Sources: French Customs Authorities ranking of exporting companies; Orbis average export Key: : In 2016, Rhodia Operations was the leading exporter among Belgian subsidiaries in France, and France’s 37th largest exporter overall. ratio of Belgian exporting companies in France (export revenues as a proportion of total revenues) (2015)

Business France - 2017 Annual Report EXPORT

FRENCH EXPORTS TO CHINA In 2017, 12,428 establishments exported to China from France. The value of theirExport exports was €18.8 billion (4.1% of all FrenchChine exports). Fig. 1 FRENCH EXPORTS TO CHINA (€ BILLION) CHINA After a six-year slowdown, Chinese growth 20 18.8 was on the rise again in 2017 (+6.9%). 18.0 18 Against this backdrop, French exports 16.2 16.0 15.1 to China bounced back strongly (+17.8%) 16 14.7 13.5 after a marked decline in 2016 (-10.9%), a 14 performance that took China back past 12 11.0 9.0 FRENCH the Netherlands into seventh position in 10 7.9 EXPORTS (2017) the list of France’s largest trading partners, 8 receiving 29.4% of French exports to Asia. 6 France accounted for 1.3% of global 4 exports to China in 2016, slightly down on 2 the previous year’s figure and much lower 0 12,428 than its share in global goods exports 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (3.2%). Provisional statistics ranked France French Source: French Customs Authorities, gross figures, FOB, establishments as China’s second largest European supplier excluding military equipment in 2017, after Germany. exported Export to China Chine BREAKDOWN BY SECTOR swelled by 30%. Food/beverages (+26.7%), OF FRENCH EXPORTS % 37.0% chemicals,35 perfumes and cosmetics 20 TO CHINA 18.8 €18.8 18.0 (+17.3%)30 and pharmaceuticals (+15.2%) also 18 French exports to China16.2 in 201716.0 were performed strongly. Only in the agricultural 15.1 25 16 billion concentrated in a limited14.7 number of sectors, products sector,19.0% which accounted for just 13.5 20 in French 14with three of them accounting for over 1.1% of French exports to China, did sales 15 12.5% goods exports 12two-thirds 11.0of French sales. The transport decline (-19.3%). 9.0 10.2% 10 10 to China equipment sector remained, by some Although exports to China in 2017 5.6%accounted 7.9 5 6.5% 5.0% 4.2% 3.6% 2.2% 1.9% 1.9% distance,8 the leading source of French 0.9% 0.8% 0.2% for only a small4.1 % proportion3.4% of French3.6% exports3.2% 2.1% 2.2% 1.8% 3.8% 0 1.9% 1.1% 0.5% exports6 to China, accounting for 37% of the in any one sector, the country has emerged total,4 followed by machinery and equipment as an extremely fruitful market for many of (19%)2 and food/beverages (12.5%). them. Since 2013, sales to cosmeticsChina have risen Miscellaneous +17.8% Metal products leather goods 0 Food, beverages Sales growth exceeded 10% in many sectors. 56.6% in the food/beverages sector, 88.4%Textiles, clothing, growth Petroleum products 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Transport equipment Agricultural products Boosted by substantial deliveries in the for perfumes and cosmetics,Chemicals, perfumes, and 54% for Pharmaceutical products in French Machinery and equipment Mining, water and energy Wood and paper products aerospace sector, transport equipment sales pharmaceuticals. Rubber and plastic products exports to China

Fig. 2 BREAKDOWN BY SECTOR OF FRENCH EXPORTS TO CHINA (2017) % 37.0% 4.1% 35 of all French 30 exports 25 19.0% 20 15 12.5% 10.2% 10 5.6% #7 5 6.5% 5.0% 4.2% 3.6% 2.2% 1.9% 1.9% 0.9% 0.8% 0.2% 4.1 % 3.4% 3.6% 3.2% 2.1% 2.2% 1.8% 3.8% customer 0 1.9% 1.1% 0.5% for French exports cosmetics Miscellaneous leather goods Metal products Food, beverages Textiles, clothing, Petroleum products Transport equipment Chemicals, perfumes, Agricultural products

Pharmaceutical products Machinery and equipment Mining, water and energy Wood and paper products Rubber and plastic products

Sector’s share of all French exports China’s share of total French exports to China in the sector

Source: French Customs Authorities, gross figures, FOB, excluding military equipment CONTRIBUTION OF CHINESE FRENCH SUBSIDIARIES IN FRANCE IMPORTS (2017) TO THE FRENCH ECONOMY It is estimated that 55 Chinese subsidiaries exported goods from France in 2015. €49 According to the French National Institute for Statistics and Economic Studies (INSEE), billion Chinese subsidiaries generated 1% of the in Chinese exports of all foreign-owned companies goods imports in France and employed 8,137 people, or to France 0.5% of the workforce of all foreign-owned companies in France. +6% growth in Chinese imports TOP FIVE CHINESE EXPORTERS to France IN FRANCE (2016)

Share French subsidiary Nationwide Economic activity of export rank 9% revenues of all French ADISSEO FRANCE S.A.S. Manufacture of organic basic chemicals >90% 70 imports Wholesale of electronic and TCT MOBILE EUROPE SAS telecommunications equipment >90% 149 and parts #2 BLUESTAR SILICONES FRANCE Manufacture of plastics in primary 70%-90% 233 supplier SAS forms of French imports SYNGENTA FRANCE SAS Seeds and plant health products 50%-70% 250

Manufacture of communication ALE INTERNATIONAL 50%-70% 264 equipment

Sources: French Customs Authorities ranking of exporting companies; Orbis Key: In 2016, Adisseo France SAS was the leading exporter among Chinese subsidiaries in France, and France’s 70th largest exporter overall.

Business France - 2017 Annual Report EXPORT

FRENCH EXPORTS TO GERMANY Export In 2017, 41,365 establishments exportedAllemand to Germany from France. The value of their Fig. 1 FRENCH EXPORTS TO GERMANY exports was €68.6 billion (14.8% of all (€ BILLION) French exports). GERMANY 75 Despite a rising German growth rate in 2017 71.8 71.0 71.5 71.5 70.3 70.6 (+2.2%), the value of French exports to 70 Germany fell by 4%, due to the phasing-out 66.0 68.6 of coordinated Franco-German production 65 of Airbus aircraft. The aerospace sector 63.9 FRENCH aside, French exports to Germany were 60 EXPORTS (2017) buoyant, climbing 5.3% in a year. Though Germany’s share in French exports fell 55.6 1.3 percentage points to 14.8%, the country 55 remained France’s foremost trading partner, receiving 25% of French exports to European 50 41,365 Union countries. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 French France accounted for 7.7% of global exports Source: French Customs Authorities, gross figures, FOB, to Germany in 2016, comparable to the excluding military equipment establishments Export exported previous year’s figure and much higher than Allemand to Germany its share in global goods exports (3.2%). Provisional figures from the German national statistics office ranked France as Germany’s The sharp fall in transport equipment exports third largest supplier in 2017, after China and (-20.2%)% was largely offset by the buoyant 75 35 71.8 71.5 71.5 performance of other French manufacturing the Netherlands. 71.0 28.8% 70.3 70.6 30sectors, taking advantage of high German €68.6 70 25growth. Exports of machinery and 66.0 68.6 20.5% 20.6% billion 20equipment grew 4%; chemicals, perfumes BREAKDOWN BY SECTOR 18.4% 17.8% 65 16.0% 17.2% in French 63.9 15and cosmetics by14.8% 6.4%, and metal products OF FRENCH EXPORTS 12.2% 12.9% 9.4% 10.6% 9.6% 9.5% 11.7% goods exports 10by 16.9%. Conversely, sales of French 7.2% 8.8% 60 TO GERMANY pharmaceuticals in Germany dwindled4.9% by 3.8% 3.4% 2.8% 2.4% 2.2% 1.7% to Germany 5 6.2 % The transport equipment sector remained, 15.3%. 0.8 % 55.6 0 by55 some distance, the leading source of Germany remained a major trading partner in French exports to Germany, accounting 2017, accounting for a significant proportion 50 cosmetics Miscellaneous for nearly 30% of the total, followed by of French exports of metalMetal products (20.6%), leather goods Food, beverages -4% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Textiles, clothing, Petroleum products machinery and equipment (20.5%) and transport equipment (18.4%) and rubber and Agricultural products growth Transport equipment Chemicals, perfumes, Pharmaceutical products chemicals, perfumes and cosmetics (12.2%). plastics (17.8%).Machinery and equipment Wood and paper products Mining, water and energy in French Rubber and plastic products exports to Germany Fig. 2 BREAKDOWN BY SECTOR OF FRENCH EXPORTS TO GERMANY (2017) % 35 28.8% 14.8% 30 of all French 25 20.5% 20.6% exports 20 18.4% 17.8% 16.0% 17.2% 15 14.8% 12.2% 12.9% 9.4% 10.6% 9.6% 9.5% 11.7% 10 7.2% 8.8% 4.9% 3.8% 3.4% 2.8% 2.4% 2.2% 1.7% 5 6.2 % 0.8 % #1 0 customer for French cosmetics Miscellaneous Metal products leather goods Food, beverages Textiles, clothing, exports Petroleum products Transport equipment Chemicals, perfumes, Agricultural products

Pharmaceutical products Machinery and equipment Wood and paper products Mining, water and energy Rubber and plastic products

Sector’s share of all French exports Germany’s share of total French to Germany exports in the sector

Source: French Customs Authorities, gross figures, FOB, excluding military equipment CONTRIBUTION OF GERMAN MAIN EXPORT DESTINATIONS FRENCH SUBSIDIARIES IN FRANCE FOR GERMAN SUBSIDIARIES IMPORTS (2017) TO THE FRENCH ECONOMY ESTABLISHED IN FRANCE In 2015, 1,242 German subsidiaries in France (2015) exported part of their output. Together, €85.8 these exports amounted to €22.4 billion and accounted, on average, for 20% of total DESTINATION SHARE COUNTRY OF EXPORTS billion company revenues. These firms exported in German primarily to European markets, and in goods imports particular to their source country, Germany, Germany 31% to France which received one-third of the exports of German subsidiaries established in France. Spain 9% In 2015, according to the French National Institute for Statistics and Economic Studies +0.1% (INSEE), German subsidiaries: growth Italy 7% / Employed 311,993 people, 17% of the in German workforce of all foreign-owned companies imports in France. to France United Kingdom 6% / Accounted for 17% of the revenues of all foreign-owned companies in France. / Generated 14% of the export revenues of all United States 5% 15.8% foreign-owned companies in France. of all French Source: French Customs Authorities; imports French Treasury Directorate calculations

#1 supplier TOP FIVE GERMAN EXPORTERS of French IN FRANCE (2016) imports Share French subsidiary Economic activity of export Nationwide revenues rank

Manufacture of pharmaceutical MILLIPORE (MERCK KGAA) 70%-90% 56 preparations CONTRIBUTION OF GERMAN Manufacture of pesticides BAYER S.A.S. 50%-70% 66 SUBSIDIARIES and other agrochemical products IN FRANCE

Manufacture of pharmaceutical MERIAL N/A 75 1,242 preparations German THYSSENKRUPP PRESTA FRANCE Manufacture of other parts exporting >90% 92 SAS and accessories for motor vehicles companies in France (2015) CONTINENTAL AUTOMOTIVE Manufacture of scientific and technical 70%-90% 98 FRANCE instruments

20% Sources: French Customs Authorities ranking of exporting companies; Orbis average export Key: In 2016, Millipore was the leading exporter among German subsidiaries in France, and France’s 56th largest exporter overall. ratio of German exporting companies in France (export revenues as a proportion of total revenues) (2015)

Business France - 2017 Annual Report EXPORT

FRENCH EXPORTS Export TO ITALY Italie Fig. 1 FRENCH EXPORTS TO ITALY In 2017, 35,094 establishments exported (€ BILLION) ITALY to Italy from France. The value of their exports was €35.1 billion (7.6% of all French 37 36.0 exports). 35.1 35 34.2 Against a backdrop of moderate Italian 32.3 growth (+1.4% in 2017), French exports to 33 31.6 32.1 32.0 Italy rose substantially (+8.6%). With a 7.6% 31.0 30.4 FRENCH share in French exports, Italy displaced 31 EXPORTS (2017) the United States as France’s third largest trading partner, receiving 12.9% of French 29 exports to European Union countries. 28.5 27 France accounted for 8.7% of global exports to Italy in 2016, up on the previous year’s 25 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 35,094 Export figure and much higher than its share in French Italie global goods exports (3.2%). Provisional Source: French Customs Authorities, gross figures, FOB, establishments Italian statistics ranked France as Italy’s excluding military equipment exported second largest supplier in 2017, after Germany. to Italy 37 36.0 BREAKDOWN BY SECTOR 35.1 35 OF FRENCH34.2 EXPORTS % 32.3 20perfumes and cosmetics enjoyed substantial 33 TO ITALY 32.0 18 18.2% 31.6 32.1 growth15.4% (+11.6%), while food/beverages €35.1 31.0 16 15.0% 30.4 14.1% 15.5% The31 three leading sectors for exports to Italy 14(+5.9%) and metal products (+9.1%) also billion were machinery and equipment (15.4% of 12thrived. 10.0% 8.6% 11.9% 10 10.1% in French the29 total), transport equipment (15%) and 9.6% 8.2% 5.9% Italy8 remained 8.8%a major trading partner in 8.3% chemicals,28.5 perfumes and cosmetics (14.1%). 7.4% 6.1% 7.1% 7.4% goods exports 2017,6 6.2% accounting for a significant proportion 4.8 % 27 4.5% 4.2% 4 4.9% to Italy The vast majority of sectors saw their sales of French exports of textiles, clothing and 2.5% 3.0% to Italy increase. Aerospace sales doubled leather2 goods (11.9%), agricultural products 0.7% 25 0 in 2017, 2008 2009generating 2010 2011 a 2012 12.6% 2013 rise 2014 in 2015 transport 2016 2017 (15.5%) and mining, water and energy equipment exports. Exports of chemicals, products (18.2%).

cosmetics

Miscellaneous +8.6% Metal products leather goods Food, beverages Textiles, clothing, Petroleum products growth Transport equipment Chemicals, perfumes, Agricultural products Pharmaceutical products Machinery and equipment Mining, water and energy Wood and paper products in French Rubber and plastic products exports Fig. 2 BREAKDOWN BY SECTOR OF FRENCH EXPORTS TO ITALY (2017) to Italy % 20 18 18.2% 16 15.4% 15.0% 14.1% 15.5% 14 12 7.6% 10.0% 8.6% 11.9% 10 10.1% of all French 9.6% 8.2% 5.9% 8 8.8% 8.3% 7.4% 6.1% 7.1% 7.4% 6 exports 6.2% 4.8 % 4.5% 4.2% 4 4.9% 2.5% 3.0% 2 0.7% 0

#3 cosmetics

Miscellaneous Metal products leather goods Food, beverages Textiles, clothing, Petroleum products customer Transport equipment Agricultural products Chemicals, perfumes,

Pharmaceutical products for French Machinery and equipment Mining, water and energy Wood and paper products Rubber and plastic products exports Sector’s share of all French exports Italy’s share of total French to Italy exports in the sector

Source: French Customs Authorities, gross figures, FOB, excluding military equipment CONTRIBUTION OF ITALIAN MAIN EXPORT DESTINATIONS FRENCH SUBSIDIARIES IN FRANCE FOR ITALIAN SUBSIDIARIES IMPORTS (2017) TO THE FRENCH ECONOMY ESTABLISHED IN FRANCE In 2015, 551 Italian subsidiaries in France (2015) exported part of their output. Together, €41.4 these exports amounted to €4.2 billion and accounted, on average, for 15% of total DESTINATION SHARE OF EXPORTS billion company revenues. Half of all these exports COUNTRY in Italian went to Italy (20%), Germany (16%) and the goods imports United Kingdom (15%). Italy 20% to France In 2015, according to the French National Institute for Statistics and Economic Studies Germany 16% (INSEE), Italian subsidiaries: +7.9% / Employed 67,621 people, 4% of the workforce growth of all foreign-owned companies in France. United Kingdom 15% in Italian / Accounted for 4% of the revenues of all imports foreign-owned companies in France. Belgium 8% to France / Generated 3% of the export revenues of all foreign-owned companies in France.

Spain 6% 7.6% of all French Source: French Customs Authorities; imports French Treasury Directorate calculations

#3 supplier TOP FIVE ITALIAN EXPORTERS of French IN FRANCE (2016) imports Share French subsidiary Economic activity of export Nationwide revenues rank

VERSALIS FRANCE S.A.S. Manufacture of plastics in primary form 70%-90% 144 CONTRIBUTION OF ITALIAN SUBSIDIARIES RIVA ACIER Wholesale of metals and metal ores <50% 158 IN FRANCE 551 TRANSGRAIN FRANCE Wholesale of grain N/A 235 Italian exporting TRÉFIMÉTAUX SAS Copper production N/A 385 companies in France (2015) LAMINÉS MARCHANDS Manufacture of scientific 50%-70% 432 EUROPÉENS (BELTRAME) and technical instruments

15% Sources: French Customs Authorities ranking of exporting companies; Orbis average export Key: In 2016, Versalis France SAS was the leading exporter among Italian subsidiaries in France, ratio of Italian and France’s 144th largest exporter overall. exporting companies in France (export revenues as a proportion of total revenues) (2015)

Business France - 2017 Annual Report EXPORT

FRENCH EXPORTS TO JAPAN In 2017, 11,411 establishments exported to Japan from France. The value of their exports was €6.4 billion (1.4% of all FrenchExport exports). Japon JAPAN Fig. 1 FRENCH EXPORTS TO JAPAN Japanese economic growth accelerated in (€ BILLION) 2017 (+1.6%, compared with +0.9% in 2016), with eight consecutive quarters of positive 8 7.4 growth constituting the country’s most 7,5 prolonged upturn for 30 years. Against this 6.9 7 6.8 backdrop, French exports to Japan rose for 6.5 6.4 FRENCH the first time in five years (+1.8%). With its 6,5 6.3 6.2 5.9 EXPORTS (2017) share in French exports remaining stable at 6 1.4%, Japan was France’s thirteenth largest 5.6 customer in 2017, receiving 9.9% of French 5,5 exports to Asia. 5 4.8 France accounted for 1.2% of global exports 4,5 11,411 to Japan in 2016, comparable to the previous French 4 year’s figure and lower than its share in global 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 establishments goods exports (3.2%). Provisional statistics Export Source: French Customs Authorities, gross figures, FOB, exported ranked France as Japan’s second largest excluding military equipment to Japan Japon European supplier in 2017, after Germany.

BREAKDOWN BY SECTOR 8 OF FRENCH EXPORTS7.4 up 15.1%, while machinery and equipment €6.4 7,5 exports% grew 11.3%. Food/beverages exports 20 TO JAPAN 6.9 6.8 7 climbed18 17.9% 3.8%, while pharmaceutical sales billion 6.5 17.2% 16.6% The leading sectors for French exports 6.4to rose16 7.2%. Transport equipment exports, in 6,5 6.3 6.2 in French 14 Japan in 20175.9 were food/beverages (17.9% of contrast, dwindled significantly12.6% (-9.7%)12.5% due goods exports the6 total), machinery and equipment (17.2%) to12 reduced aerospace sales. to Japan 5.6 10 9.3% 5,5and pharmaceuticals (16.6%). Though8 French exports to Japan were lower 5.5% 4.8 6 Most5 sectors were able to take advantage than they had been in 2013, some sectors 3,5% 4 3.6% 3.2% of improved export performance on the have2 2.4% seen their sales swell substantially2.4% 0.6% 0.6% 0.4% 0.2% 4,5 1.2% 0.7% 1.4% 1.7% 0.7% 1.1% Japanese market, with some even seeing over0 the period. Exports of food/beverages 0.4% 0.3% 0.3% 0.1% +1.8% their4 sales soar by more than 10%. Exports increased 8.7%, cosmetics and perfumes by 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 growth of chemicals, perfumes and cosmetics were 12.1%, and pharmaceuticals by 5.3%. cosmetics

Miscellaneous leather goods Metal products Food, beverages in French Textiles, clothing, Petroleum products Transport equipment Chemicals, perfumes, Agricultural products exports Pharmaceutical products Machinery and equipment Wood and paper products Mining, water and energy to Japan Rubber and plastic products Fig. 2 BREAKDOWN BY SECTOR OF FRENCH EXPORTS TO JAPAN (2017)

% 1.4% 20 17.9% 18 17.2% 16.6% of all French 16 exports 14 12.6% 12.5% 12 10 9.3% 8 6 5.5% 3,5% 4 3.6% 3.2% #13 2 2.4% 2.4% 0.6% 0.6% 0.4% 0.2% 1.2% 0.7% 1.4% 1.7% 0.7% 1.1% customer 0 0.4% 0.3% 0.3% 0.1% for French cosmetics

Miscellaneous leather goods Metal products exports Food, beverages Textiles, clothing, Petroleum products Transport equipment Chemicals, perfumes, Agricultural products

Pharmaceutical products Machinery and equipment Wood and paper products Mining, water and energy Rubber and plastic products

Sector’s share of all French exports Japan’s share of total French exports to Japan in the sector

Source: French Customs Authorities, gross figures, FOB, excluding military equipment CONTRIBUTION OF JAPANESE MAIN EXPORT DESTINATIONS FRENCH SUBSIDIARIES IN FRANCE FOR JAPANESE SUBSIDIARIES IMPORTS (2017) TO THE FRENCH ECONOMY ESTABLISHED IN FRANCE In 2015, more than 440 Japanese subsidiaries (2015) in France exported part of their output. €9.9 Together, these exports amounted to €11.1 billion and accounted, on average, for 19% DESTINATION SHARE COUNTRY OF EXPORTS billion of total company revenues. These firms in Japanese exported primarily to European markets, goods imports with Germany and Belgium leading the way. Germany 18% to France In 2015, according to the French National Institute for Statistics and Economic Studies Belgium 16% (INSEE), Japanese subsidiaries: +5.7% / Employed 47,424 people1, 3% of the growth workforce of all foreign-owned companies Spain 9% in Japanese in France. imports / Accounted for 4% of the revenues of all to France foreign-owned companies in France. Italy 9% / Generated 5% of the export revenues of all foreign-owned companies in France. Netherlands 8% 1.8% of all French 1 A survey by Business France’s Tokyo office reported that Source: French Customs Authorities; more than 74,000 people were employed by Japanese French Treasury Directorate calculations imports subsidiaries in France.

#11 supplier TOP FIVE JAPANESE EXPORTERS of French IN FRANCE (2016) imports Share French subsidiary Economic activity of export Nationwide revenues rank

TOYOTA MOTOR MANUFACTURING Manufacture of motor vehicles N/A 34 CONTRIBUTION FRANCE OF JAPANESE

SUBSIDIARIES Manufacture of bearings, gears, NTN-SNR ROULEMENTS N/A 74 IN FRANCE gearing and driving elements

BEAUTE PRESTIGE Manufacture of perfumes 70%-90% 213 444 INTERNATIONAL (SHISEIDO) and toilet preparations Japanese

exporting CONTINENTAL PHARMACEUTIQUE Wholesale of pharmaceutical goods >90% 221 companies (TOYOTA TSUSHO) in France (2015)

Manufacture of electric motors, MOTEURS LEROY SOMER 50%-70% 228 generators and transformers 19% Sources: French Customs Authorities ranking of exporting companies; Orbis average export Key: In 2016, Toyota Motor Manufacturing was the leading exporter among Japanese ratio of Japanese subsidiaries in France, and France’s 34th largest exporter overall. exporting companies in France (export revenues as a proportion of total revenues) (2015)

Business France - 2017 Annual Report EXPORT

FRENCH EXPORTS TO THE NETHERLANDS Export In 2017, 28,582 establishments exported to the Netherlands from France. The valuePays-Bas of NETHERLANDS their exports was €16.9 billion (3.7% of all Fig. 1 FRENCH EXPORT TO French exports). THE NETHERLANDS (€ BILLION) 19 With the Dutch economy enjoying significant 18.4 growth in 2017 (+3.1%), French exports to 18.0 18 17.6 17.5 17.5 the Netherlands rose sharply (+5.6%). The 17.1 16.9 Netherlands was France’s eighth largest 17 16.2 trading partner in 2017 (down from 7th in 16.0 FRENCH 16 2016), receiving 3.7% of its total exports EXPORTS (2017) 15 and 6.2% of its exports to European Union 13.9 countries. 14 France accounted for 3.5% of global exports 13 to the Netherlands in 2016, slightly down on 28,582 the previous year’s figure and higher than 12 French its share in global goods exports (3.2%). 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Export establishments Provisional Dutch statistics ranked France Source: French Customs Authorities, gross figures, FOB, exported Pays-Bas as the Netherlands’ sixth largest supplier in excluding military equipment 2017. to the Netherlands

19 BREAKDOWN 18.4 BY SECTOR 18.0 18 OF FRENCH EXPORTS17.6 17.5 17.5 % 17.1 €16.9 16.9 25 17 TO THE NETHERLANDS 16.2 exports21.2% rocketed 31.7%, while chemicals, 16.0 20 billion The16 leading sectors for exports to the perfumes and17.4% cosmetics (+10.8%), petroleum in French Netherlands were machinery and equipment, 15products (+30.9%)14.1% and15.6% metal products 15 goods exports which accounted13.9 for 21.2% of the total; (+10.4%) also saw their exports to the Dutch 10 chemicals,14 perfumes and cosmetics (17.4%); market boosted. 7.9% 7.4% 6.3% to the Netherlands 7.7% 2.7% 5.0% 4.7% 4,2% and food/beverages (14.1%). 5The Netherlands5.2% 5.1% was France’s leading global 4.2% 3.7% 5.3% 13 4.1% 4.0% 3.7% 1.2% Most sectors were able to benefit from the customer for petroleum products in 2017,2.7% 2.4% 2.6% 2.2% 0 1.2% rise12 in exports. Driven by surging automotive accounting for 15.6% of all French exports 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 +5.6% and aerospace sales, transport equipment in the sector. cosmetics

Miscellaneous growth Metal products leather goods Food, beverages Textiles, clothing, Petroleum products in French Chemicals, perfumes, Transport equipment Agricultural products Pharmaceutical products Machinery and equipment Wood and paper products Mining, water and energy exports Rubber and plastic products BREAKDOWN BY SECTOR OF FRENCH EXPORTS TO THE NETHERLANDS (2017) to the Netherlands Fig. 2

% 25 21.2% 20 3.7% 17.4% of all French 15 14.1% 15.6% exports 10 7.9% 7.4% 6.3% 7.7% 2.7% 5.0% 4.7% 4,2% 5 5.2% 5.1% 4.2% 3.7% 5.3% 4.1% 4.0% 3.7% 1.2% 2.7% 2.4% 2.6% 2.2% #8 0 1.2%

customer cosmetics Miscellaneous Metal products leather goods Food, beverages for French Textiles, clothing, Petroleum products Chemicals, perfumes, Transport equipment Agricultural products

Pharmaceutical products exports Wood and paper products Mining, water and energy Machinery and equipment Rubber and plastic products

Sector’s share of all French exports The Netherlands’s share of total to the Netherlands French exports in the sector

Source: French Customs Authorities, gross figures, FOB, excluding military equipment CONTRIBUTION OF DUTCH MAIN EXPORT DESTINATIONS FRENCH SUBSIDIARIES IN FRANCE FOR DUTCH SUBSIDIARIES IMPORTS (2017) TO THE FRENCH ECONOMY ESTABLISHED IN FRANCE In 2015, 360 Dutch subsidiaries in France (2015) exported part of their output. Together, €25.4 these exports amounted to €5.5 billion and accounted, on average, for 33% of total DESTINATION SHARE COUNTRY OF EXPORTS billion company revenues. From France, these firms in Dutch primarily exported to Italy and Germany. Ten goods imports percent of their foreign sales were exported Italy 18% to France to their source country, the Netherlands.

In 2015, according to the French National Germany 17% Institute for Statistics and Economic Studies +9.5% (INSEE), Dutch subsidiaries: growth / Employed 165,657 people, 6% of the Netherlands 10% workforce of all foreign-owned companies in Dutch in France. imports to France / Accounted for 7% of the revenues of all Spain 9% foreign-owned companies in France. / Generated 8% of the export revenues of all Belgium 6% 4.7% foreign-owned companies in France. of all French Source: French Customs Authorities; imports French Treasury Directorate calculations

#8 supplier TOP FIVE DUTCH EXPORTERS of French IN FRANCE (2016) imports Share French subsidiary Economic activity of export Nationwide revenues rank

CONSTELLIUM NEUF BRISACH Aluminum production N/A 57 CONTRIBUTION OF DUTCH Manufacture of other inorganic LYONDELL CHIMIE FRANCE 70%-90% 154 SUBSIDIARIES basic chemicals IN FRANCE

Wholesale of agricultural machinery, CNH INDUSTRIAL FRANCE <50% 163 360 equipment and supplies Dutch Manufacture of plastics in primary BASELL POLYOLEFINES FRANCE <50% 167 exporting forms companies in France (2015) PHILIPS FRANCE Manufacture of electrical equipment <50% 195

33% Sources: French Customs Authorities ranking of exporting companies; Orbis average export Key: In 2016, Constellium Neuf Brisach was the leading exporter among Dutch subsidiaries in France, and France’s 57th largest exporter overall. ratio of Dutch exporting companies in France (export revenues as a proportion of total revenues) (2015)

Business France - 2017 Annual Report EXPORT

FRENCH EXPORTS TO SPAIN Export espagne In 2017, 35,585 establishments exported Fig. 1 FRENCH EXPORTS TO SPAIN SPAIN to Spain from France. The value of their (€ BILLION) exports was €35.5 billion (7.7% of all French exports). 38 35.5 36 34.2 With the Spanish economy enjoying 33.2 significant growth in 2017 (+3.1%), French 34 32.6 32 exports to Spain rose sharply (+6.9%). 30.5 30.5 FRENCH 29.4 Spain remained France’s second largest 30 29.2 29.1 EXPORTS (2017) 27.1 trading partner in 2017, receiving 7.7% of all 28 French exports and 13% of French exports to 26 European Union countries. 24 France accounted for 12.5% of global exports to Spain in 2016, slightly up on the 22 35,585 Export previous year’s figure and much higher than 20 French 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 espagne its share in global goods exports (3.2%). establishments Provisional Spanish statistics ranked France Source: French Customs Authorities, gross figures, FOB, exported as Spain’s second largest supplier in 2017, excluding military equipment to Spain after38 Germany. 35.5 36 34.2 33.2 34 BREAKDOWN BY SECTOR32.6 32 OF FRENCH30.5 EXPORTS30.5 sales% declined slightly, most sectors saw their €35.5 29.2 29.4 29.1 30 TO SPAIN 30exports to the Spanish market rise, including 27.1 chemicals,23.2% perfumes and cosmetics (+14.4%),24.3% billion 28 25 The main exporting sectors in 2017 were food/beverages (+4%) and metal products in French 26 transport equipment, which accounted 20(+26%). goods exports 24 15.8% for 23.2% of all French exports to Spain, Spain15 remained a major trading partner for to Spain 22 11.2% 8.9% 8.9% 13.4% 12.5% machinery and equipment (15.8%) and France10 in 2017, receiving a significant share of 20 7.7% 10.1% 6.3% 8.3% 8.6% 3.0% chemicals, perfumes and cosmetics (11.2%). 6.4% 7.1% 6.7% 5.7% 5.2% 4.6% 4.8% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 its5 exports of agricultural products (13.4%), 3.0% 3.0% 5.3% Apart from the transport equipment and wood and paper products (12.5%) and 3.6% 1.1% 0 +6.9% machinery and equipment sectors, in which mining, water and energy products (24.3%). growth cosmetics Miscellaneous Metal products leather goods Food, beverages in French Textiles, clothing, Petroleum products Transport equipment Chemicals, perfumes, Agricultural products

Pharmaceutical products exports BREAKDOWN BY SECTOR OF FRENCH EXPORTS TO SPAINMachinery and(2017) equipment Mining, water and energy Wood and paper products Fig. 2 Rubber and plastic products to Spain % 30

25 23.2% 24.3%

20 7.7% 15.8% 15 of all French 11.2% 8.9% 8.9% 13.4% 12.5% 10 exports 10.1% 8.3% 8.6% 3.0% 7.7% 6.4% 7.1% 6.3% 5.7% 5 6.7% 5.2% 4.6% 3.0% 3.0% 5.3% 4.8% 3.6% 1.1% 0

#2 cosmetics

Miscellaneous Metal products leather goods Food, beverages Textiles, clothing, Petroleum products customer Transport equipment Chemicals, perfumes, Agricultural products

Pharmaceutical products for French Machinery and equipment Mining, water and energy Wood and paper products Rubber and plastic products exports Sector’s share of all French exports Spain’s share of total French exports to Spain in the sector

Source: French Customs Authorities, gross figures, FOB, excluding military equipment CONTRIBUTION OF SPANISH MAIN EXPORT DESTINATIONS FRENCH SUBSIDIARIES IN FRANCE FOR SPANISH SUBSIDIARIES IMPORTS (2017) TO THE FRENCH ECONOMY ESTABLISHED IN FRANCE In 2015, 221 Spanish subsidiaries in France (2015) exported part of their output. Together, €34.8 these exports amounted to €1.6 billion and accounted, on average, for 16% of total DESTINATION SHARE COUNTRY OF EXPORTS billion company revenues. These firms sold 27% in Spanish of their exports to their source country, goods imports Spain, 19% to Germany, and 11% to the United Spain 27% to France Kingdom.

In 2015, according to the French National Germany 19% Institute for Statistics and Economic Studies +7.3% (INSEE), Spanish subsidiaries: growth / Employed 56,577 people, 3% of the United Kingdom 11% workforce of all foreign-owned companies in Spanish in France. imports to France / Accounted for 3% of the revenues of all Italy 8% foreign-owned companies in France. / Generated 3% of the export revenues of all Belgium 5% 16.4% foreign-owned companies in France. of all French Source: French Customs Authorities; imports French Treasury Directorate calculations

#6 supplier TOP FIVE SPANISH EXPORTERS of French IN FRANCE (2016) imports Share French subsidiary Economic activity of export Nationwide revenues rank

Manufacture of other inorganic FERROPEM N/A 155 basic chemicals CONTRIBUTION OF SPANISH Manufacture of basic iron and steel SUBSIDIARIES CELSA FRANCE >90% 356 IN FRANCE and of ferro-alloys

Manufacture of electric lighting GRUPO ANTOLIN-BESANÇON 50%-70% 551 221 equipment Spanish Manufacture of bodies (coachwork) for exporting JEAN CHÉREAU SAS motor vehicles; manufacture of trailers <50% 758 companies and semi-trailers in France (2015) INTERFORUM Wholesale of other household goods <50% 773

16% Sources: French Customs Authorities ranking of exporting companies; Orbis average export Key: In 2016, FerroPem was the leading exporter among Spanish subsidiaries in France, and France’s 155th largest exporter overall. ratio of Spanish exporting companies in France (export revenues as a proportion of total revenues) (2015)

Business France - 2017 Annual Report EXPORT

FRENCH EXPORTS Export TO SWITZERLAND Suisse In 2017, 39,852 establishments exported to Fig. 1 FRENCH EXPORTS TO SWITZERLAND SWITZERLAND Switzerland from France. The value of their (€ BILLION) exports was €15.7 billion (3.4% of all French 17 exports). 15.7 16 Despite only moderate growth in the Swiss 15.3 15 economy, French exports to Switzerland 13.7 13.8 14 continued to thrive (+2.8%). Switzerland 13.2 13.1 12.9 remained France’s ninth largest trading 13 FRENCH 12.0 partner in 2017, receiving 3.4% of all French 12 11.4 exports EXPORTS (2017) 11 10.1 France accounted for 6.6% of global exports 10 to Switzerland in 2016, up on the previous 9 year’s figure and much higher than its share 8 39,852 in global goods exports (3.2%). Provisional 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 statistics ranked France as Switzerland’s fifth Source: French Customs Authorities, gross figures, FOB, French Export largest supplier in 2017, after Germany and excluding military equipment establishments Suisse the United States. exported to Switzerland BREAKDOWN BY SECTOR 17 OF FRENCH EXPORTS 15.7 % 21.5% 16 15.3 TO SWITZERLAND 20 15 16.9% Jewelry and musical instruments €15.7 Exports to Switzerland13.7 are notable13.8 for the 14 15.3% 13.2 15 predominance of the jewelry13.1 12.9 and musical exports14.9% of13.5% transport 12.8% equipment soared 13 billion 12.0 instruments sector, which accounted for 10by 21.1%. Pharmaceuticals9.0% (+37.6%) and in French 12 7.9% more than 11.415% of French sales to the Swiss metal products (+14.5%) also performed7.4% 6.7% 7.1% 5.6% goods exports market11 10.1in 2017. Transport equipment (13.5%) excellently,5 while sales4.8% of agricultural 4.2% 3.9% 3.3% 4.5% 1.8% 3.8% to Switzerland and10 machinery and equipment (12.8%) products fell 3.1%. 3.4% 3.6% 3.2% 2.4% 3.2% 2.0% 2.3% 2.2% 2.5% completed9 the top three. Switzerland0 was the leading customer for Most8 sectors saw their sales to the Swiss French exports in the jewelry and musical 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 market improve in 2017. Driven by the instruments sector in 2017, receivingcosmetics 14.9% Miscellaneous Metal products leather goods Food, beverages +2.8% shipbuilding and automotive industries, of the total. Textiles, clothing, Petroleum products Transport equipment Chemicals, perfumes, Agricultural products

growth Pharmaceutical products Machinery and equipment Mining, water and energy Wood and paper products in French Rubber and plastic products exports to Switzerland Fig. 2 BREAKDOWN BY SECTOR OF FRENCH EXPORTS TO SWITZERLAND (2017)

% 21.5% 20 16.9% Jewelry and musical instruments 15 15.3% 3.4% 14.9% 13.5% of all French 12.8% 10 9.0% exports 7.9% 7.4% 6.7% 7.1% 5.6% 5 4.8% 4.2% 3.9% 3.3% 4.5% 1.8% 3.4% 3.6% 3.2% 3.8% 2.4% 3.2% 2.0% 2.3% 2.2% 2.5% #9 0

cosmetics

Miscellaneous customer Metal products leather goods Food, beverages Textiles, clothing, Petroleum products for French Transport equipment Chemicals, perfumes, Agricultural products

Pharmaceutical products Machinery and equipment Mining, water and energy Wood and paper products exports Rubber and plastic products

Sector’s share of all French exports Switzerland’s share of total French to Switzerland exports in the sector

Source: French Customs Authorities, gross figures, FOB, excluding military equipment CONTRIBUTION OF SWISS MAIN EXPORT DESTINATIONS FRENCH SUBSIDIARIES IN FRANCE FOR SWISS SUBSIDIARIES IMPORTS (2017) TO THE FRENCH ECONOMY ESTABLISHED IN FRANCE In 2015, 606 Swiss subsidiaries in France (2015) exported part of their output. Together, €14.6 these exports amounted to €20.7 billion and accounted, on average, for 30% of total DESTINATION SHARE COUNTRY OF EXPORTS billion company revenues. Germany, Switzerland in Swiss and the United Kingdom were the main goods imports export destinations for these firms. Germany 21% to France In 2015, according to the French National Institute for Statistics and Economic Studies Switzerland 12% (INSEE), Swiss subsidiaries: +4.3% / Employed 140,051 people, 8% of the growth workforce of all foreign-owned companies United Kingdom 12% in Swiss in France. imports / Accounted for 8% of the revenues of all to France foreign-owned companies in France. Italy 10% / Generated 8% of the export revenues of all foreign-owned companies in France. Netherlands 9% 2.7% of all French Source: French Customs Authorities; imports French Treasury Directorate calculations

#9 supplier TOP FIVE SWISS EXPORTERS of French IN FRANCE (2016) imports Share French subsidiary Economic activity of export Nationwide revenues rank

SOCIETE D'AFFRETEMENT Chartering and transportation N/A 23 CONTRIBUTION ET DE TRANSIT organization OF SWISS CARTIER JOAILLERIE SUBSIDIARIES Manufacture of jewelry and related INTERNATIONAL SAS >90% 79 articles IN FRANCE (RICHEMOND S.A.)

Manufacture of basic iron and steel UGITECH 70%-90% 125 606 of ferro-alloys Swiss exporting Manufacture of machinery for textile, STAUBLI FAVERGES 70%-90% 129 companies apparel and leather production in France (2015)

NESTLE / NESPRESSO Processing of tea and coffee <50% 150 30% Sources: French Customs Authorities ranking of exporting companies; Orbis average export Key: In 2016, Société d’Affrètement et de Transit was the leading exporter among Swiss subsidiaries in France, ratio of Swiss and France’s 23rd largest exporter overall. exporting companies in France (export revenues as a proportion of total revenues) (2015)

Business France - 2017 Annual Report EXPORT

FRENCH EXPORTS TO THE UNITED KINGDOM In 2017, 31,192 establishments exported to the United Kingdom from France. The value of their exports was €31 billion (6.7% of all French exports). Export UK UNITED In the midst of the Brexit process and a slowdown in the British market, French Fig. 1 FRENCH EXPORTS TO THE UNITED KINGDOM (€ BILLION) KINGDOM exports to the United Kingdom declined slightly (-0.8%) and the United Kingdom’s 34 share in French exports dwindled to 32.0 31.7 32 31.2 31.0 6.7%. Having been France’s fourth largest 30.5 29.5 customer in 2014, the United Kingdom 30 29.3 ranked sixth in 2017, receiving 11.4% of French 27.9 FRENCH 28 exports to European Union countries. 26.3 EXPORTS (2017) 24.5 France accounted for 5.4% of global 26 exports to the United Kingdom in 2016, 24 slightly down on the 2015 figure, but still much higher than its share in global goods 22 31,192 exports (3.2%). According to provisional 20 French British statistics, France was the United 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Kingdom’s fifth largest supplier in 2017, after establishments Source: French Customs Authorities, gross figures, FOB, Germany, the United States, the Netherlands excluding military equipment exported to the and China. United Kingdom Export UK BREAKDOWN BY SECTOR

OF FRENCH EXPORTS % 20 €316 TO THE UNITED KINGDOM 18.0% 34 18(+2%), chemicals,16.9% perfumes and cosmetics 32.0 31.7 16 15.0% billion Four32 sectors accounted for nearly31.2 two-31.0 (+3.1%) and textiles and clothing (+12.6%), 30.5 14 13.4% in French goods thirds of French exports29.5 to the United 12the latter continuing its rude health from 30 29.3 exports to the Kingdom in 2017: transport equipment (18%), 102016, when sales9.9% had grown 9.3%.9.9% The 27.9 8 8.8% 8.8% machinery and equipment (16.9%), food/ value of pharmaceutical7.4% exports6.9% decreased6.4% 8.1% 7.7% United Kingdom 28 6 5.3% 4.8% 26.3 6.0% 4.9% 5.3% beverages24.5 (15%) and chemicals, perfumes markedly4 5.2% (-17.4%), relegating the sector to5.2% 5.0% 4.9% 26 2.4% and cosmetics (13.4%). ninth2 place in the list of largest exporters to 2.2% 2.2% 1.6% 0 Sales24 of transport equipment fell sharply the United Kingdom (down from 7th in 2016). (-11.2%) due to a significant reduction in The United Kingdom remained a key -0.8% 22 aerospace deliveries, though this decline was customer for businessescosmetics in the food/ Miscellaneous growth 20 leather goods Metal products Food, beverages partially offset by the buoyant performance beverages sector in 2017, accountingTextiles, clothing, for 10% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Petroleum products in French of other key sectors such as food/beverages of Transporttheir equipment foreign sales. Chemicals, perfumes, Agricultural products Pharmaceutical products Machinery and equipment Wood and paper products Mining, water and energy exports to the Rubber and plastic products United Kingdom

Fig. 2 BREAKDOWN BY SECTOR OF FRENCH EXPORTS TO THE UNITED KINGDOM (2017)

6.7% % 20 of all French 18.0% 18 16.9% exports 16 15.0% 14 13.4% 12 10 9.9% 9.9% 8 8.8% 8.8% 7.4% 6.9% 6.4% 8.1% 7.7% 6 5.3% 4.8% #6 6.0% 5.2% 4.9% 5.3% 4 5.2% 5.0% 4.9% 2.4% 2 2.2% 2.2% 1.6% customer 0 for French exports

cosmetics

Miscellaneous leather goods Metal products Food, beverages Textiles, clothing, Petroleum products Transport equipment Chemicals, perfumes, Agricultural products

Pharmaceutical products Machinery and equipment Wood and paper products Mining, water and energy Rubber and plastic products

Sector’s share of all French exports The United Kingdom’s share of total to the United Kingdom French exports in the sector

Source: French Customs Authorities, gross figures, FOB, excluding military equipment CONTRIBUTION OF BRITISH MAIN EXPORT DESTINATIONS FRENCH SUBSIDIARIES IN FRANCE FOR BRITISH SUBSIDIARIES IMPORTS (2017) TO THE FRENCH ECONOMY ESTABLISHED IN FRANCE In 2015, nearly 500 British subsidiaries (2015) in France exported part of their output. €26.8 Together, these exports amounted to €12.4 DESTINATION SHARE billion and accounted, on average, for 21% COUNTRY OF EXPORTS billion of total company revenues. From France, in British these firms exported mainly to Germany goods imports (17%) and Belgium (12%). Only nine percent Germany 17% to France of their exports went to their source country, the United Kingdom. Belgium 12% In 2015, according to the French National Institute for Statistics and Economic Studies +37.7% (INSEE), British subsidiaries: growth United Kingdom 9% / Employed 183,184 people, 10% of the in British workforce of all foreign-owned companies imports in France. to France1 Spain 8% / Accounted for 10% of the revenues of all foreign-owned companies in France. / Generated 6% of the export revenues of all United States 7% 5% foreign-owned companies in France. of all French Source: French Customs Authorities; imports French Treasury Directorate calculations

#7 supplier TOP FIVE BRITISH EXPORTERS of French IN FRANCE (2016) imports Share French subsidiary Economic activity of export Nationwide revenues rank

ASTRAZENECA DUNKERQUE Manufacture of pharmaceutical >90% 52 PRODUCTION preparations CONTRIBUTION OF BRITISH PETROINEOS MANUFACTURING Manufacture of refined 50%-70% 63 SUBSIDIARIES FRANCE SAS petroleum products IN FRANCE

Manufacture of engines and turbines, DELPHI FRANCE SAS 50%-70% 198 498 except vehicle engines British Wholesale of sanitary equipment GERFLOR 50%-70% 292 exporting and fitting out of housing materials companies in France (2015) GLENCORE AGRICULTURE Wholesale of grain, seeds and animal N/A 297 FRANCE SAS feeds

21% Sources: French Customs Authorities ranking of exporting companies; Orbis Key: In 2016, AstraZeneca Dunkerque Production was the leading exporter among British subsidiaries in France, average export and France’s 52nd largest exporter overall. ratio of British exporting companies in France (export revenues as a proportion of total revenues) (2015)

1 This substantial rise in French imports from the United Kingdom is the result of a change in the declared origin of turbojets, which had previously been considered to be of indeterminate origin.

Business France - 2017 Annual Report EXPORT

FRENCH EXPORTS TO THE UNITED STATES In 2017, 24,321 establishments exported to the United States from France. The value of their exports was €34 billion (7.3% of all UNITED French exports). Export French exports to the United StatesUSA benefited from the higher American growth Fig. 1 FRENCH EXPORTS STATES TO THE UNITED STATES (€ BILLION) rate in 2017 (+2.3%, compared with 1.5% in 2016), rising 4%. The United States’ share 35 34.0 32.6 32.7 in French exports remained stable at 7.3%. 33 After being overtaken by Italy, the country 31 FRENCH slipped from third to fourth place in the list 29 27.4 26.5 26.9 EXPORTS (2017) of France’s largest export markets, receiving 27 83.8% of all French exports to North America. 25 24.0 23.4 France accounted for 1.7% of global exports 23 22.1 to the United States in 2016, comparable 21 19.7 to the previous year’s figure and lower 19 24,321 than its share in global goods exports 17 French (3.2%). Provisional American statistics 15 establishments ranked France as the United States’ eighth 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 exported to Export largest supplier in 2017 and its third largest Source: French Customs Authorities, gross figures, FOB, the United States European supplier, after Germany and the excluding military equipment USA United Kingdom.

35 BREAKDOWN BY SECTOR 34.0 32.6 32.7 €34 33 OF FRENCH EXPORTS % 31 in exports caused by the delivery of the billion TO THE UNITED STATES 30 29 27.4 Harmony26.6% of the Seas cruise liner (worth €1.1 26.5 26.9 in French 27The three leading sectors for French exports billion)25 in 2016. Most other sectors, however, goods exports to 25to the24.0 United States23.4 in 2017 were transport took20 advantage18.4% of the American economic the United States 23equipment,22.1 which accounted for just over recovery to boost their sales. Exports of 15 12.4% 21one-quarter19.7 of the total, machinery and machinery and equipment grew11.1% 4.9%;8.9% food/ 10.3% 10.0% 10 8.4% 9.0% 4.9% 19equipment (18.4%) and food/beverages beverages, 9.8%;7.1% and chemicals,6.7% perfumes5.9% 6.8% 4.7% 3.2% 8.3% 5 5.1% 5.7% 5.2% 17(12.4%). and cosmetics, 11%. 2.1% 1.3% 0.4% 0.2% 0.9% 0.9% 15The decline in French transport equipment The0 United States are a key trading partner +4% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 growth exports to the United States (-6.4%) can be for companies in the pharmaceutical industry, products cosmetics

explained by the massive, one-off increase accounting for 10% of their foreign sales. Miscellaneous leather goods Metal products in French Food, beverages Textiles, clothing, Rubber and plastic Petroleum products exports to Transport equipment Chemicals, perfumes, Agricultural products Pharmaceutical products the United States Machinery and equipment Wood and paper products Mining, water and energy Fig. 2 BREAKDOWN BY SECTOR OF FRENCH EXPORTS TO THE UNITED STATES (2017)

% 7.3% 30 26.6% of all French 25 exports 20 18.4%

15 12.4% 11.1% 8.9% 10.3% 10.0% 10 8.4% 9.0% 4.9% 7.1% 6.7% 5.9% 6.8% 4.7% 3.2% 8.3% 5 5.1% 5.7% 5.2% #4 2.1% 1.3% 0.4% 0.2% 0.9% 0.9% customer 0

products for French cosmetics Miscellaneous leather goods Metal products Food, beverages Textiles, clothing, exports Rubber and plastic Petroleum products Transport equipment Chemicals, perfumes, Agricultural products

Pharmaceutical products Machinery and equipment Wood and paper products Mining, water and energy

Sector’s share of all French exports The United States’ share of total to the United States French exports in the sector

Source: French Customs Authorities, gross figures, FOB, excluding military equipment CONTRIBUTION OF AMERICAN MAIN EXPORT DESTINATIONS FRENCH SUBSIDIARIES IN FRANCE FOR AMERICAN SUBSIDIARIES IMPORTS (2017) TO THE FRENCH ECONOMY ESTABLISHED IN FRANCE In 2015, 1,328 American subsidiaries in France (2015) exported part of their output. Together, €35.1 these exports amounted to €45 billion and accounted, on average, for 27% of total DESTINATION SHARE COUNTRY OF EXPORTS billion company revenues. The firms’ main target in American was Germany, followed by their source goods imports country. Germany received 17% of the Germany 17% to France exports of American subsidiaries in France, while the United States received 12%. United States 12% In 2015, according to the French National Institute for Statistics and Economic Studies -2.6% (INSEE), American subsidiaries: growth United Kingdom 9% / Employed 312,587 people, 17% of the in American workforce of all foreign-owned companies imports in France. to France Italy 7% / Accounted for 25% of the revenues of all foreign-owned companies in France. / Generated 19% of the export revenues of all Belgium 6% 6.5% foreign-owned companies in France. of all French Source: French Customs Authorities; imports French Treasury Directorate calculations

#5 supplier TOP FIVE AMERICAN EXPORTERS of French IN FRANCE (2016) imports Share French subsidiary Economic activity of export Nationwide revenues rank

Manufacture of pharmaceutical LILLY FRANCE 70%-90% 15 preparations CONTRIBUTION

OF AMERICAN Manufacture of refined petroleum ESSO SOCIÉTÉ ANONYME FRANCE N/A 26 SUBSIDIARIES products IN FRANCE

LABORATOIRES MERCK SHARP Manufacture of pharmaceutical >90% 36 1,328 & DOHME-CHIBRET preparations American exporting GE MEDICAL SYSTEMS Manufacture of medical equipment 70%-90% 42 companies in France (2015) GE ENERGY PRODUCTS FRANCE Manufacture of engines and turbines, >90% 48 SNC except vehicle engines

Sources: French Customs Authorities ranking of exporting companies; Orbis 27% Key: In 2016, Lilly France was the leading exporter among American subsidiaries in France, average export and France’s 15th largest exporter overall. ratio of American exporting companies in France (export revenues as a proportion of total revenues) (2015)

Business France - 2017 Annual Report