Press Release 03 Jan 2014 • Employment In IDA Client Firms Now Stands At 161,112 - Highest Level On Record • IDA Reports 18% Rise In First Time Investors To Ireland • Agency Embarks On Property Plan & Seeks New Forms Of FDI(January 3rd, 2014) - IDA Ireland, the Irish Government agency responsible for attracting foreign direct investment, has reported the creation of 13,367 new jobs by client companies during 2013. When job losses are taken into account, the net increase in employment was 7,071, the highest level of job creation in over a decade. Total employment at IDA client companies now stands at 161,112 people, the highest level in the history of IDA Ireland. The job performance took place against a particularly challenging European economic environment, but leaves IDA firmly on track to fulfill and exceed targets set under its Horizon 2020 strategy (http://bit.ly/1c7eQLR). Targetting of specific growth sectors and business models, increased competitiveness and an improved international reputation were the main factors that contributed to the strong 2013 results, IDA said today. The number of investments was especially strong in 2013, with 164 projects won for Ireland. Of these, 78 came from companies investing in Ireland for the first time (a rise of 18% on the previous year), with 59 expansions and 27 Research, Development & Innovation (RD&I) projects. Among the leading investments secured during the year were Deutsche Bank, Twitter, EMC, eBay, Salesforce, Novartis, Vistakon, Facebook, Zurich, Symantec, De Puy, Yahoo, Sanofi and Indeed.com. First time investments were secured from corporations across the portfolio including from Qualcomm, Airbnb, Tripadvisor, Regeneron, Huawei, FireEye, Grifols, Alexion and Acorn Direct Marketing. There was also a strong presence of emerging fast growth companies in the investment wins in 2013, including Squarespace, Mongo DB, Culture Translate, AdRoll, Storage Craft, Qualtrics, Zendesk, Quantcast and Etsy. The IDA set a goal in its Horizon 2020 strategy to attract these type of fast growth companies. There were job gains across all sectors IDA is focused on, but particularly in digital media/content, ICT, international financial services, life sciences and business services. Commenting on the 2013 performance, the Minister for Jobs, Enterprise & Innovation, Richard Bruton TD said: “Foreign direct investment plays a key part in the Action Plan for Jobs, and in 2013 we set ambitious targets for 6000 net new jobs and 132 investments by multinational companies. Today’s results show that 2013 was another record year for multinational companies, with targets exceeded and an increase of over 7000 jobs. This is the third year in a row that jobs growth has exceeded previous records, and huge credit is owed to IDA Ireland and Barry O’Leary on repeatedly exceeding targets and delivering these records in the face of increasing international competition. “Multinational companies have played a major role in the 3% employment growth we have seen across the economy in the past year. Every 10 jobs created in multinational companies lead to approximately 7 jobs being created elsewhere in the economy in supply and service businesses. There are now two main challenges – to continue and accelerate the growth in multinational companies here, and to maximise the positive impact of these companies on the rest of the Irish economy. With hard work from my Department and commitment across Government we have protected the IDA in successive budgets. The joint IDA/Enterprise Ireland management team is working hard on providing increased opportunities for Irish companies from multinationals and Connect Ireland is providing ways of accessing new companies previously beyond the reach of IDA. “I am determined that through strong implementation of the Action Plan for Jobs we can build on this stellar performance by multinational companies and ensure that they contribute even more to jobs growth across the economy”. Commenting on the 2013 figures, the Chief Executive of the IDA, Mr Barry O’Leary said: “This is IDA’s fourth consecutive year of job growth and it is very gratifying to see the cumulative increases over that period, which come to over 50,000 gross jobs. IDA is delivering on its plans, as publicly outlined in its strategy, and that delivery has taken place against a very challenging external environment. It was particularly pleasing to see such a high representation of European companies – Deutsche Bank, Sanofi, Zurich and Novartis- in the 2013 project wins.” “IDA Ireland would like to thank key stakeholders, including the Minister for Jobs, Enterprise & Innovation (DJEI) and his department officials, An Taoiseach, several other Ministers, our sister agencies and Ireland’s embassy network for their assistance during the year.”Corporation Tax: Ireland’s value proposition consists of a number of key strategic areas, including corporation tax. There was significant discussion at a global level in 2013 about corporation tax practices and several international initiatives in this area are underway, from the OECD and its Base Erosion and Profit Shifting (BEPS) process, the EU Commission, and the US Congress. While the international community, including Ireland, participates in these initiatives, tax will remain a source of competitive advantage between competing FDI offerings. We believe there will be over time, a stronger relationship between real economic substance and corporate tax regimes, which should ensure Ireland continues to win the maximum amount of international investments.Pharma: As referenced in previous IDA statements, globally the pharmaceutical industry is continuing to experience a challenging period, due to overcapacity, patent expiry, clinical trial failures and the fallout from mergers and acquisitions. However, it is important to balance these challenges by considering the significant opportunities in the sector, as new drugs come on the market and fresh capital investments are made. Ireland for instance currently has eight pharma projects underway, and in 2013 two brand new investments from Grifols and Regeneron were won. A significant number of other projects are also in play as we enter the first quarter of 2014 and IDA is confident of winning a significant portion of these. Property: Property is another part of Ireland’s value proposition and the IDA’s property portfolio has given Ireland a strategic advantage in winning investment projects over many years and IDA aims to maintain that advantage in the future. A major part of this is that IDA itself will consider building additional manufacturing capacity in certain locations in future, where the private sector is unable to provide the capacity. IDA is also actively working with other stakeholders, including NAMA, on making sure there is sufficient high-spec office space in the Dublin area in particular to service large scale projects, many of them requiring 100,000 square feet of space. Considering the scale of build involved and associated lead-in times, construction on this additional space needs to begin sooner rather than later. Regions: Horizon 2020 set an ambitious regional economic development target of 50% of investments in regions outside Dublin and Cork and this has proven to be a challenge. The result for 2013 is below target at 30%, but ahead of the outcome of 25% in 2012. There are many complex factors influencing investor location decision making: increasing preference of investors globally for cities of scale with 1 milion plus population, significant challenges from lower cost locations in the UK and Eastern Europe and attractive regional aid.High quality investments were won in many regional locations. For example in Limerick there were investments announced from Regeneron, Cook, Vistakon, ACI, Worldwide Technical Services and EtQ. In Cork there were projects wins from Huawei, Fireeye, EMC and Qualcomm and in Waterford there were investments announced from Nypro and Sanofi. There was also eBay and National Pen in Dundalk and Overstock in Sligo, amongst others. IDA’s regional footprint will also be increasing in 2014 with the organisation now assuming responsibility for companies in the Shannon Free Zone, which currently has aproximately 55 companies with over 5,000 employees. (Today’s 2013 results take no account of either the company or employee numbers from Shannon). New Property Initiatives:IDA Ireland intends to start building new property capacity in regional locations. IDA is to embark on a programme of building in select regional locations in order to enhance its regional offering and create fresh opportunities for FDI. IDA has identified a number of specific locations where the private sector is unable currently to develop property solutions. In order to boost regional development and win new business, IDA plans to build new advanced manufacturing facilities in Waterford and Athlone, and office space in Letterkenny. The organisation is also reviewing the available property stock in Galway and Limerick. IDA’s regional strategy rests on several pillars, one of which is availability of high-specification property solutions, even in instances where the private sector is not currently providing a solution. Location audit work done by IDA has identified the areas for new building activity and IDA will continue to assess the requirements in other regions on an ongoing basis. New Forms of FDI: IDA Ireland can announce today it is examining future opportunities to bring new forms of Foreign Direct Investment (FDI) into Ireland, in order to expand Ireland’s current FDI offering. The agency has established a cross-divisional group to do this work as part of a strategy to grow through diversification. The group, which draws on professional expertise within IDA and relevant stakeholder inputs, has looked at a range of potential areas of opportunity in foreign direct investment with the potential to assist job creation in the years ahead. IDA’s strategy Horizon 2020 committed the organisation to winning new forms of FDI, and IDA is now seeking to ensure it captures any available opportunities beyond its current core sectors which are: information and communication technology (ICT), consumer content and business services (CCBS), pharmaceuticals, medical devices, financial services, emerging business, engineering, manufacturing & clean tech. Outlook: Commenting on the outlook for 2014, Mr O’Leary said: ``Ireland enters 2014 in a far stronger position than in recent years and that will bolster the country’s brand image, spurring additional interest from investors. Only recently the IBM ‘Global Location Trends’ Report put Ireland first in the world for inward investment by quality and value, and first in Europe and second in the world for the number of investment jobs per capita. This is testament to how strong Ireland offering is. The majority of IDA client companies come to Ireland to service the Europe market, and that market is currently showing slow growth prospects. However IDA continues to deliver on its strategy and 2013 was no exception. The organisation goes into the coming year aware of the competitive threats and economic challenges, but is confident it can deliver another year of strong investments for Ireland. There is a strong pipeline for conversion over the next six months. The continuing focus on competitiveness is key to attracting further FDI. The most innovative and sophisticated companies in the world continue to invest and reinvest in Ireland and I am confident they will do so again in 2014. These will be my final set of results as Chief Executive of IDA as I intend to pursue other opportunities outside the organisation as soon as my successor is in place. I wish to thank everyone, inside and outside the organisation, for their kind support during my time in the most fulfilling and stimulating of roles. The last few years have been difficult and demanding and I would like to pay tribute to the IDA team for their relentless commitment to IDA and Ireland throughout this time’’.