WHY INVEST IN MILAN INVEST IN LOMBARDY VALUING THE EXCELLENCE Listed within the top 10 cities for investment project in Western Europe in the period 2003 - 2014 and mentioned as one of the preferred destination for investing in the real estate sector*, Milan is an excellent business environment and a dynamic city. A city that attracts business value: the Milan Metropolitan area accounts for nearly one third of all foreign-invested firms in Italy, more than 30% of their employees and 34% of their turnover. A strong specialization in the service sector: the Universal Exposition Milan Expo Milano 2015 has confirmed the role of the city as a capital of business and finance, and a magnet in attracting flows of tourism from the world. A hub for talent: with its 8 universities and 2 international schools, Milan area stands out for the quality of its human capital and education system at all levels. Milan area can be An international city: Milan hosts over 100 consulates and foreign considered the commercial oces and is in a central position in northern Italy. The city has cornerstone of the national economy, with three international airports and primary transport infrastructures. more than 40% of the total firms of Lombardy *Source: ICE-Agenzia on FDI Intelligence, Financial Times Ltd based in the city and its province. p. 1 WHY INVEST IN MILAN Sectoral Expertise Technology In the Milan area it is possible to find a high Milan area hosts seven advanced research percentage of companies specialized in oering centres, among Life Sciences and highly unique products and services, Biotechnology, that are specialised in various particularly in five key sectors: ICT & Media, Life sectors and acknowledged as an excellence Science & Biotechnology, Creative Industry, within the European research landscape. Financial & Consultancy Services, Retail & More than 340 organizations in the area of Commerce. Milan are part of at least one technological cluster. Human Capital Location Cost Milan stands out for the quality of its human Milan is the capital of the real estate in Italy capital and education system. Milan is home to especially regarding investments and recent eight universities, with more than 10% of the developments in the existing buildings. In the Italian university population. Globally Milan area, cost for oce rent varies from from renowned academic institutions and 50 €/sqm up to to 150 €/sqm. distinguished fashion & design institutes are based here. p. 2 Sectors’ portfolio SECTORAL EXPERTISE composition Milan area is the main MAIN FACTS & FIGURES financial, commercial and industrial center in Italy, Companies by sector continuously attracting investments and new business. Milan is a dynamic and creative environment for new venture development. It is known nationally as the Italian economic Sector Milan (%) capital city, and is very attractive even compared to many other European financial areas. Services 144,020 49% Trading 73,356 25% The value chain in this area is made of both traditional manufacturing companies as well as advanced service Construction 40,129 14% ventures. Manufacturing 29,698 10% Milan area Lombardy Italy Agriculture 3,562 1% Companies 292,708 815,830 5,154,119 Utilities 1,548 1% Total 292,708 100% Milan area counts for 35.8% of total active companies in Services count for 49% of total Lombardy, and its GDP is 10% of total Italian GDP. active companies in Milan area Source: Promos, U. Studi Camera di Commercio Milano, based on data “Infocamere”. Data updated on third Trimester, 2015 p. 3 Active workforce SECTORAL EXPERTISE operating by sector Service sector employs MAIN FACTS & FIGURES 54% of total active Employment and added value workforce in Milan area. Sector Milan (%) Milan has a dynamic job market with a significantly lower unemployment rate (8.4%) compared to the national (12.7%) Services 989,312 54% and Eurozone (11.6%) average. The city has the highest employment in financial and business Manufacturing 335,538 18% services as a percentage of total employment. Construction 98,400 5% Water and sewers 10,542 <1% Electricity and gas 7,324 <1% Milan area Lombardy Italy Agriculture 7,054 <1% Workforce 1,822,808 3,576,883 22,497,000 Mining 587 <1% Other 373 20% Milan area counts for 8% of total active workforce in Italy Total 1,822,808 100% Milan area counts for 51% of Source: Promos, U. Studi Camera di Commercio Milano, based on data “Infocamere”. Data total total workforce active in updated on second Trimester, 2015 Lombardy p. 4 KEY SECTORS IN MILAN FINANCIAL & CONSULTANCY SERVICES ICT & MEDIA RETAIL & COMMERCE CREATIVE INDUSTRY (FASHION & DESIGN) LIFE SCIENCE & BIOTECHNOLOGY p. 5 SECTORAL EXPERTISE ICT & MEDIA Lombardy has a long One of the most Nowaday, Milan ranks as the best tradition in the ICT "cabled" cities in (%) and Media industry. Europe, Milan has an Italian city for the Milan area is the advanced Internet quality of ICT point of reference network ensuring clusters. of the Italian ICT eective information industry. flow within and Moreover, the main between businesses. industry Milan area is an ICT associations pioneer, home to Milan is also (Assinform and around 1,200 renowned as a Assintel) are based industry companies multimedia and in Milan. including leading publishing capital European and the perfect High qualified multinationals who location for creative human resources have set up oces and technological (e.g. engineers, DO YOU KNOW? and research development in skilled workers, etc.) centres. these areas. have competitive Milan ranks as the best salaries compared Italian city for the to other EU quality of ICT clusters. Compared with other Countries. Italian cities (Rome, Turin, Naples and Florence), Milan oers the best cluster infrastructures, labour availability and quality. Source: fDi Benchmark, Financial Times Ltd p. 6 SECTORAL EXPERTISE LIFE SCIENCE & BIOTECHNOLOGY Milan area boasts some Among the excellence Research and innovation of the most advanced of the Italian research are very dynamic in this scientific (pure and centers there is the IEO field: 22% of Italian clinical) research - European Institute of patents are registered in centres in Europe, which Oncology, the Milan area. specialise in dierent internationally Furthermore, 26% of all areas. recognized for its Italian biotechnology excellence in cancer firms are based in the prevention, early city. This brings in a total diagnosis and eective of €3.4 billion (45% of treatment. the national and 70% of the regional industry turnover). Biotech Sector: quality overview Milan (Region) Labour availability & quality Compared with other international cities, Greater London Milan ranks first in the Industry cluster cost/competitiveness index, in the quality Barcelona (Region) General business environment overview and in the attractiveness index Paris (Region) (quality-cost score) Infrastructure & Accessibility Munich (Region) Source: fDi Benchmark, The Living Environment Financial Times Ltd. 0 50 100 150 p. 7 SECTORAL EXPERTISE CREATIVE INDUSTRY (FASHION & DESIGN) Milan is synonymous with Every year the city hosts fashion and design. thousands of industry events. Milan has shaped the history of The city is the undisputed capital design: the International of Italian and European fashion, Furniture Fair is the most home to the most important important event of its kind in fashion district in the world the world. With its exhibition alongside Paris and New York. area of 207,000 square meters, more than 2,300 exhibitors and 13,000 companies and 84,000 about 30% foreign designers, professionals in the fashion the event is a great forum of industry are based in Milan. It is ideas, creativity, innovation and the #1 city in Italy in terms of technology. employees. The Milan-based fashion DO YOU KNOW? industry brings in €70 billion and exports €3 billion of Milan alone goods alone (half of all concentrates more than Lombard exports). 15% of Italian creative companies. The Milan Metropolitan area Source: ISTAT data produces 61% of the Italian turnover for design and the fashion industry. p. 8 SECTORAL EXPERTISE FINANCIAL & CONSULTANCY SERVICES Milan is a financial The city is home to percentage of total centre and the Italian more than 170 banks employment), Milan is gateway to (49 non-Italian) and the ideal choice to international capital about 10,000 oer SMEs top class markets. financial service financial and companies consultancy services. The Italian Stock (employing 70,000 Exchange is based in people). Source: JLL Report “Why Milan. It manages 353 Invest in Milan” listed companies with With the highest €557 billion market employment in capitalization overall. financial and business It is also part of the services (as a London Stock Exchange. p. 9 SECTORAL EXPERTISE RETAIL & COMMERCE Milan is an important ambience, setting and with national leaders, centre for the service background. developing new (%) sector and a world synergies. shopping capital: Via Montenapoleone, every year, it attracts a the street famous for The Universal large number of high luxury shopping, is in Exposition Expo potential consumers. the top 10 destinations Milano 2015 has This is due to the with the highest rental confirmed the role of prominence of the value in the world; and the city as a capital of fashion industry, a long every year, Fiera business and finance, tradition of national Milano (leading and a magnet in and international trade exhibition Group in attracting flows of and the growing Italy) attracts 500,000 tourism, enhancing the number of shopping internationals visitors. vocation of centres in the area. Lombardy for The Expo 2015 eect international tourism Looking at the list of and visibility, with 34 mln. tourists the retail new combined with older visiting Lombardy DO YOU KNOW? openings in Milan, it is development (57% from foreign clear that the city is initiatives, have Countries). In 2015 H&M Duomo, Primark, creating a new retail enhanced the Victoria’s Secrets, Dudalina, scene, through a mix attractivity for Mango, just to name a few, between good deals, international retailers opened in Milan.