2019 TABLE OF CONTENTS Message from the Chair of the Board of Directors 2 Arnold Drung Message from the President & CEO 3 Tony LaMantia Vision, Mission, Values 4 2019 Business Plan 4 Annual Highlights 5 Foreign Direct Investment 7 Local Business Retention and Expansion 11 Investment Marketing and Awareness 12 Strategic Plan 14 2019 Financial Statements 15 Board of Directors 17 MESSAGE FROM THE CHAIR OF THE BOARD OF DIRECTORS As a founding Board significant. Despite this uncertainty, I am confident member and now our community and our country will continue to as the Chair of the flourish. Problem solving is unique to our culture Waterloo Region and character and, as new challenges arise, we are Economic Development in an excellent position to meet them. Corporation, I am The information contained in this Annual Report very proud of what provides a snapshot of the reasons Waterloo EDC our community, has become so integral to our community’s answer the Waterloo EDC to this uncertainty. From investment attraction to organization and our championing local businesses, this organization is Board has achieved over delivering on its promise. the last four years. I would like to thank the members of our Board What is often missed Arnold Drung whose terms have ended this year: Mike Kirkup is that Waterloo EDC Chair, Board of Directors and our former Chair Gerry Remers. These doesn’t just contribute individuals have made incredible contributions to investment attraction or local business – including, in Gerry’s case, providing inspired expansion, but helps make a tangible social impact leadership during Waterloo EDC’s formative years that touches on government programming, – and I wish them both the best as they continue talent attraction, transit issues and more. This to make an impact in Waterloo Region. I would organization continues to punch well above its also like to welcome our new Board members – weight. David Petras and Lukas von Arx – who will add new Since 2016, this organization has landed over 45 perspectives and expertise in the years ahead. investments with an estimated value of more than At the end of my first year as the Chair of the $845 million, resulting in more than 3,000 new Waterloo EDC Board of Directors, I am very proud jobs for our region. With continued support from of the momentum that this organization continues our senior orders of government, we expect to to build in service of our community. As we move maintain this strong investment pace. into a new year, I look forward to continuing to As we look forward to 2020 and beyond, we see work with this excellent Board and talented team increasing global volatility. Brexit, an American to deliver results that make Waterloo a better election, and ongoing trade disruptions will likely place to live and work. continue to provide uncertainty for businesses around the globe. At the time of writing, we are engaged in helping to lead a community response Arnold Drung to COVID-19 and its impact on 2020 will be Chair, Board of Directors, Waterloo EDC WATERLOO EDC 2019 ANNUAL REPORT 2 MESSAGE FROM THE PRESIDENT & CEO As our fourth year an ongoing funding agreement with our provincial comes to a close, partners, which will ensure we deliver on ever-more- Waterloo EDC can ambitious objectives as we seek to continue our best- proudly highlight in-class performance. a number of In short, it was another busy and fruitful year for accomplishments – Waterloo EDC. new investments, new funding and new jobs Then again, it was a big year for Waterloo Region and people – that will writ large. Apart from our own wins, the community help our community also welcomed significant expansion news from ATS Tony LaMantia grow and prosper for Automation, we heard that Toyota’s local plants will President & CEO, Waterloo EDC years to come. begin to produce two new Lexus products in the coming years and, just as the year ended, Deloitte In total, our team closed announced that Canada’s three fastest-growing tech 15 deals in 2019 valued at more than $200.7 million. companies were from our community. We ended the New investment in our community came from foreign year with the news that the Healthcare of Ontario investments and local expansions alike, as well as Pension Plan (HOOPP), through their iPort Properties from across industries, including manufacturing, brand, will develop 300 acres of industrial park land automotive and technology. We’ve helped companies in Cambridge, which will provide an exciting new already located in our community expand, like option for FDI and expansions alike. Indeed, while we Clearpath Robotics, SAP and Unitron, while can’t take credit for all of this good news, I think it’s welcoming new entrants like Insticator, Z Modular and important to recognize one of the most impressive Enlighted. economic performances in Canada. We’re achieving A continuing focus throughout 2019 was the addition great things, together. of new opportunities to our investment pipeline, Finally, as I write this message, the COVID-19 which began the year at just over $1 billion and pandemic has swept the world, putting much of topped $1.9 billion, with $13.4 million in the “forecast” our business-as-usual investment attraction on stage at year end, representing robust growth. hold. We have taken a central role in mobilizing These achievements are the result of our team’s focus Waterloo Region’s response to COVID-19 and the on generating qualified leads from referrals, inbound unprecedented business challenges it represents and outbound missions, and the continued growth of through the creation of the Business and Economic our investment marketing and awareness campaigns. Support Team of Waterloo (BESTWR), which I Chair. In 2019, our team led 23 outbound missions, While this has forced everyone in our organization to including a mayor’s mission to California, acted adapt quickly to a new normal, it provides our team as guide for 69 inbound missions from businesses with an urgent opportunity to deliver value to our looking to invest in our community and launched an municipal, federal and provincial partners and, most all-new inbound marketing strategy that immediately importantly, to our community both now and in the delivered tangible, quantifiable results. future. At an operational level, we finalized a funding Let’s get to work! agreement with the federal government’s Federal Economic Development Agency for Southern Tony LaMantia Ontario’s Regional Diversification Fund in 2019, President & CEO, Waterloo EDC adding approximately $600,000 to our annual budget, which is already helping to boost our efforts. Going into 2020, we will continue to work hard to establish 3 WATERLOO EDC 2019 ANNUAL REPORT VISION MISSION VALUES To be locally To build a world- Collaborative, rooted, leading legacy professional, internationally of sustainable honest, competitive economic accountable, and globally development, results-focused. renowned. prosperity and diversity for Waterloo Region. 2019 BUSINESS PLAN: THREE STRATEGIC PILLARS 1 2 3 Foreign Direct Local Business Investment Investment Retention and Marketing and Expansion Awareness WATERLOO EDC 2019 ANNUAL REPORT 4 ANNUAL HIGHLIGHTS We are pleased to report that 2019 was another successful year for Waterloo EDC. Here is a summary of our key highlights and significant wins: INVESTMENT CLOSED DEALS IN 2019 15 closed deals WINS BY MUNICIPALITY Investment deals of Closed Deals (15) Investment Value ($) $200.7 million 7% 0.3% 19.4% 523 new jobs created from closed deals 33% Breakdown of deals by sector: 83% automotive/ 60% 80.3% advanced manufacturing 17% information Kitchener Waterloo Townships and communications technology 6 local expansion investments 9 foreign direct investments Companies that closed deals in 2019 5 WATERLOO EDC 2019 ANNUAL REPORT INVESTMENT SALES PIPELINE 66 potential dealsin our $14,339,293 | 1% pipeline (at the end of 2019) INVESTMENT BY STAGE with an estimated value of $1.9 billion 4 opportunities in ‘Forecast’ Forecast stage with an estimated value Upside of $13.4 million Pipeline $1,718,072,592 | 89% $198,454,389 | 10% 69 inbound and Countries visited: 23 outbound missions • A:US California (x4), Boston (x4), New York (x4), Detroit (x2) • Germany (x3) Waterloo EDC advocacy involvement: • United Kingdom (x2) • Japan • Collision Conference in Toronto • France • Waterloo Region Advocacy Day at • The Netherlands Queen’s Park • Ontario Government pre-budget consultation • Connect the Corridor Coalition Attended and participated in • Future of Work & Learning approximately 124 events Coalition partnership Twitter followers increased by 8.4% LinkedIn followers increased by 107.2% WATERLOO EDC 2019 ANNUAL REPORT 6 FOREIGN DIRECT INVESTMENT This was another banner year for foreign direct investment at Waterloo EDC. In total, the organization closed 15 deals in 2019 valued at more than $200 million. The majority of this new investment was from foreign companies, either landing in Waterloo Region for the first time or expanding existing operations. Of the total, approximately half – $111.8 million – was greenfield investment, otherwise known as companies that are entirely new to Waterloo Region. THREE INVESTMENT HIGHLIGHTS While the details of many of the investments are In mid-2019, software giant SAP announced that still confidential, three companies – SAP, Sonova and it would add 30-40 new positions at its Waterloo PerkinElmer – publicly celebrated local expansions and location, increasing their total employment in the new offices. community to approximately 260 people. The company also has plans to add an additional 50 jobs In early 2019, the University of Waterloo and its tech over the next two or three years, and will continue to incubator – Velocity – announced that global life focus on database technologies and Internet-of-Things science company PerkinElmer had decided to locate applications. its Canadian demonstration lab in Waterloo.