Message from the Board of Directors 2 Gerry Remers

Message from the President & CEO 3 Tony LaMantia

Vision, Mission, Values 4

2018 Business Plan 4

Annual Highlights 5

Foreign Direct Investment 7

LocalBusinessRetentionandExpansion 11

InvestmentMarketingandAwareness 12

Strategic Plan 14

2018 Financial Statements 15

Board of Directors 17

TABLE OF CONTENTS

W A T E R L O O E D C 2 0 1 8 A N N U A L R E P O R T 2

Reaching the end of WaterlooEDC’sfirstthree-year mandate leads me, as Chair of Waterloo EDC’s Board ofDirectors,toreflectontheworkdoneby our community-mindedcitizens,oureightmunicipalchiefadministrativeofficersand our elected leaders indefiningabroadand robust economic strategywaybackin2014-2015.

Thiscollaborativeprocesswasastellarexampleofhowaregionaleconomicdevelopmentstrategyshouldbecreated–withthesupportofmunicipalitiesandwithextensivebusinessandcommunityconsultation.

We set out to achieve a vision of “being locally rooted,internationallycompetitiveandgloballyrenowned.”Westructuredtheorganizationbased onaMemorandomofUnderstandingwithourmunicipalfundersthatensuredwecouldactintheinterestsoftheregionasawholeandyetstillbeaccountableandresponsive.

Thisapproachwasinnovative,andoverthelastthreeyearshasprovenveryeffective.Inthosethreeyears, Waterloo EDC has celebrated over 30 closed investmentdealswithanestimatedvalueof $645.8million,resultinginmorethan2,500new jobs for our region.

Waterloo EDC’s original mandate included three yearsoffunding–whichendedin2018.Iamhappytoreportthat–largelyduetotheexcellentworkthatWaterlooEDChasalreadycompleted–alleightofourmunicipalfundingpartnershaveextendedourmandateforanadditionalfiveyears.

Aswelooktomajoreconomicandpoliticalchallengesfacingtheworldtoday(tariffs,xenophobia,nationalismandpopulism),economicdevelopmentorganizationsneedtohighlightthebenefitsofglobalization.OurinnovationengineinWaterlooRegion needs access to global markets in order to thriveandthatiswhyWaterlooEDChastargetedseveralkeyinternationalregions.

TheinformationcontainedinthisAnnualReportgivesanoverviewofexactlywhyWaterlooEDC’smandatewasextended,howthosekeytargetmarketswereidentified,theimpactin-marketvisitshavehadonregionalinvestmentopportunitiesandwhyourBoardofDirectorsistrulyexcitedbywhattheorganizationwilldeliverwithitscurrentmomentum.

IwouldliketothankthemembersofourBoardwhosetermshaveendedthisyear-JaneBlack,ChrisDonnellyandBobCrow.TheseindividualshavemadeincrediblecontributionsduringWaterlooEDC’sfoundationalyearsandIwishthemallthebestintheirfutureendeavours.IwouldalsoliketowelcomeournewBoardmembers–KrystalDarling,EricaTennenbaumandJayShah–whowewillrelyuponfornewperspectivesandexpertiseintheyearsahead.

AttheendofJanuary2019,Iendedmytermasinaugural Chair of Waterloo EDC’s Board of Directors. IamveryproudofWaterlooEDC’snumerousaccomplishmentsovertheselastthreeyears,butI believe that change is necessary and good for all organizations.OurnewChair,ArnoldDrung,willprovidetheleadershipnecessarytocontinueourjourney of making this the best Region in Canada in whichtolive.He,withthesupportofanexcellentBoard,willcontinuetohelpguidethisimportantorganizationasitworkstobuildamoreprosperouscommunity for us all.

Gerry Remers Chair, Board of Directors, Waterloo EDC

MESSAGE FROM THE BOARD OF DIRECTORS

Gerry RemersChair, Board of Directors

3 W A T E R L O O E D C 2 0 1 8 A N N U A L R E P O R T

As our third year comes to a close, andweendourfirstmandate, Waterloo EDC canproudlyhighlightanumberofnewinvestmentsthatwillhelpourcommunitygrowandprosperforyears to come.

Toyota Motor Manufacturing Canada made the single largest investment in our region

in2018,promising450newjobs,1,000newco-operativeeducationplacements–seedingthefutureofourworkforce–andsuperchargingtheautomotivegiant’slocalresearchanddevelopmentefforts.

In total, our team closed 15 deals in 2018 valued atmorethan$320million.Newinvestmentinourcommunity came equally from foreign investments andlocalexpansionsthisyear.ThelatterincludessignificantnewoperationsinWaterlooRegionforautomotivegiantBorgWarneraswellasmulti-milliondollarexpansionsforlocaloperationslikeLEONIElocabandHuronDigitalPathology.Theexpansionsfocusedonmovingthesecompaniesupthevaluechain,furthersecuringtheirmarketpositionandourcommunity’scontinuedplaceintheirfuture.

Amajorfocusfor2018wasthedevelopmentofamorerobustinvestmentpipeline–apriorityforanysalesorganizationasyoungasWaterlooEDC.Iamproudtoannouncethatweincreasedourpipelineofpotentialinvestmentsfrom$156.4millionin2017tomore than $1 billion in 2018.

This achievement is the result of our team’s laser-like focusonourcorebusiness:generatingqualifiedleadsfrom referrals, inbound and outbound missions, and thecontinuedgrowthofourinvestmentmarketingandawarenessefforts.In2018,ourteamled17outboundmissions,participatedintwomayor’smissions,ledmorethan90inboundmissionsfrombusinesses looking to invest in our community, completedthecreationofafullsuiteofmarketingmaterials.Ourbrandnewinvestmentwebsite,whichlaunchedearlyin2018,wonninemajorawardsfromnationalandinternationalmarketingagencies.

Inshort,itwasabusyandfruitfulyearontheforeigndirect investment front.

Wealsomadeaconcertedefforttoadvocateonbehalfofourcommunity’sbusinesseswithfederalandprovincialgovernments,helpedsecuresubstantialnewgovernmentinvestmentinWaterlooRegion,andsponsoredopportunitiesforbusinessleaders to learn about scaling businesses, talent attractionandournewfreetradeagreementwith theUnitedStates(USMCA).

Atanoperationallevel,weareworkinghardtoestablishfundingagreementswithfederalandprovincialgovernmentstoleveragethemunicipalfunding,whichwillensurewedeliveronever-more-ambitiousobjectivesandhelpunleashthepotentialoftheToronto-WaterlooCorridor.In2018,wereceivedaStrategicSectorSupportGrantfromtheGovernmentofOntario,andearlyindicatorshavesignalledtheimpressivereturnoninvestmentwecanachievewithgreaterresources.

AsIconsiderallwehaveachievedthisyear,itisimportanttoreflectonakeyquestion:whydowedothis?Myansweristhatourworkhasanimportantsocialpurpose.Wearecommittedtobuildingamoreprosperouscommunityforeveryone.Eachnewinvestment–whethernewforeigndirectinvestmentoralocalexpansion–meansnewjobsforourfriendsandourneighbours.Itmeansnewcustomersforourlocalbusinesses.Itmeansagreatertaxbaseforourgovernments,whichmeansbetterparks,roadsandservices.Itmeansmoresupportforlocalcharitableandcommunityorganizations,likethe$11millionToyota has given to the United Way, or ESCRYPT’s scholarshipforwomeninphysicsatPerimeterInstitute.Investmentinourcommunitymakesforastronger, more resilient Waterloo Region.

In2019,WaterlooEDCwillbeginanewfive-yearmandate.Withour“why”top-of-mind,wearewellpositionedtocontinuetodeliverexcellentreturn-on-investmentforourmunicipalpartnersandsustainedprosperityforthegreatcitizensofthisRegion.

Let’sgettowork!

Tony LaMantia President & CEO, Waterloo EDC

MESSAGE FROM THE PRESIDENT & CEO

Tony LaMantiaPresident & CEO, Waterloo EDC

MISSIONTo build a world-leading legacy of sustainable economic development, prosperity and diversity for Waterloo Region.

VISIONTo be locally rooted, internationally competitive and globally renowned.

VALUESCollaborative, professional, integrity, accountable, results-focused.

3Investment

Marketing and Awareness

1Foreign Direct

Investment

2Local Business Retention and

Expansion

2018 BUSINESS PLAN: THREE STRATEGIC PILLARS

W A T E R L O O E D C 2 0 1 8 A N N U A L R E P O R T 4

We are pleased to report that 2018 was another successful year for Waterloo EDC. Here is a summary of our key highlights and significant wins:

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ANNUAL HIGHLIGHTS

8 localexpansioninvestments7 foreign direct investments

15 closed deals

Investment deals of $320.7 million

908 new jobs created from closed deals

Breakdown of deals by sector: 83% automotive/advanced manufacturing

15%informationandcommunicationstechnology

2%health/medtech

WINS BY MUNICIPALITY

40%46.6%

6.7% 6.7%

Cambridge Kitchener Waterloo Townships

INVESTMENT CLOSED DEALS IN 2018

Companies that closed deals in 2018

68.5%

18.8%

9.1% 3.6%

Closed Deals (#) Investment Value ($)

W A T E R L O O E D C 2 0 1 8 A N N U A L R E P O R T 6

INVESTMENT SALES PIPELINE

Forecast

Upside

Pipeline

INVESTMENT BY STAGE

$114,000,000 | 10%$1,055,000,000 | 88%

$26,925,000 | 2%53 potential deals in our pipeline(attheendof2018)withanestimatedvalueof $1.2 billion

6 opportunities in ‘Forecast’ stage withanestimatedvalueof $26,925,000

Waterloo EDC advocacy involvement: • Waterloo Region Advocacy Day at

Queen’s Park•OntarioGovernmentBusiness

Roundtable•AVINConsultation• Numerous Trade Commissioner events• Advanced Manufacturing Cluster workinggroup

• Advocacy on behalf of businesses seekingfunding/incentives

90+ inbound and 17 outbound missions

Twitterfollowersincreasedby 11.1%LinkedInfollowersincreasedby96.7%

Attendedandparticipatedinapproximately115 events

Countries visited: •USA:California(x4),Boston(x2), NewYork(x3),Detroit,Ohio

•Germany(x3)•UnitedKingdom• Ecuador

TOYOTA INVESTS $1.4 BILLIONInthefirsthalfof2018,ToyotaMotorManufacturingCanada announced Waterloo Region’s largest investmentin2018witha$1.4billioninvestmentinitsCambridgeandWoodstocklocations.ToyotawasalreadyWaterlooRegion’slargestemployer,andthisinvestmentpromisedtoadd450newjobsand1,000co-opplacements,aswellassupportingresearchanddevelopmentefforts.Inthelongterm,thisinvestmenthelpstoanchorToyota’sCanadianmanufacturingassets in Waterloo Region and establishes the Cambridgefacilityasacentreofexcellence.

InJuly,WaterlooEDCPresident&CEOTonyLaMantiajoinedrepresentativesfromtheCityofCambridgeandtheRegionofWaterlooonamissiontoJapantomeetwithexecutivesofToyota–tothankthemfortheirsignificantinvestment–aswellasotherpotentialmultinationalinvestors.ThismissionhighlightedtoJapanesebusinessleadersfromcompanieslikePanasonic, Toshiba and Denso that Waterloo is an attractivelandingplaceforJapanesecompanieslookingtoexpandtotheNorthAmericanmarket.

FOREIGN DIRECT INVESTMENT

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TouroftheJapanToyotaTakaokaPlantwithDavidPerdue,EconomicAffairs,DougCraig,MayorofCambridge,KarenPepper,CityofCambridge,JamesGoodram,CityofCambridge,TonyLaMantia,WaterlooEDC,GaryDyke,Cityof Cambridge, Rod Regier, Region of Waterloo, Ron Haigh, Toyota,andLianneOuellette,GlobalAffairs.

TouroftheToyotaCityShowcaseatMegaWeb.

Ontario has always been a great home for Toyota Motor Manufacturing Canada. We benefit from investments in technology, innovation, and industry as well as the high-skilled workforce we’re fortunate to have as our team members. With our Ontario government partners, today we celebrate the results of our past 30 years of manufacturing in Canada, and continue on the path of building for our future.Fred Volf, President, Toyota Motor Manufacturing Canada

W A T E R L O O E D C 2 0 1 8 A N N U A L R E P O R T 8

LEONI ELOCAB AND HURON DIGITAL PATHOLOGY EXPANDIn2018,WaterlooEDCassistedwithanumberoflocalbusinessexpansions,includingLEONIElocabandHuronDigitalPathology.AtLEONI,thecompanyinvested$10.5million–supportedbyanadditional$1.5millionfromtheSouthwesternOntarioDevelopmentFund–toexpanditsfacilityinKitchenerandpurchasenewequipment.Thisprojectwillcreate19jobsandfurthersecuretheexisting79positions inKitchener.

HuronDigitalPathologyofficiallyopenedanewfacilityinSt.Jacobsthatmorethandoubledtheirsizetosupporttheirrapidgrowthfollowingbroad regulatoryapprovalfordigitalimagingtechnology in diagnosing disease.

ApartfromToyota,LEONIandHuronDigitalPathology,WaterlooEDChasfacilitatedadiversecollectionof12additionalnewinvestmentsintheRegionin2018.Theseincludelocalexpansionefforts,likeHockeyTechandNuvation,andforeigndirectinvestmentfromcompaniessuchasBorgWarnerandRattleHub. In total, the Waterloo EDC team closed 15 deals, valuedat$320million–accountingformore than900newjobs.

Ground-breakingceremonyatLEONI’snewestlocationinKitchenerwithGerryRemers,BoardChairofWaterlooEDC,LukasvonArx,LEONI,BerryVrbanovic,MayorofKitchener,ElkStegmann,LEONI,TonyLaMantia,WaterlooEDC,andLeeKieswetter,KieswetterExcavatingInc.

DaveJaworsky,MayorofWaterloo,andSandyShantz,MayorofWoolwich,atHuronDigitalPathology’sGrandOpening.

I have very high expectations for growing this company, and the future looks pretty bright.Patrick Myles, CEO, Huron Digital Pathology

RECORD NUMBER OF INBOUND AND OUTBOUND MISSIONS IN 2018In2018,theWaterlooEDCteamledmultiplemissionstoeachofourcoregeographies,whichincludeCalifornia,NewYork,Boston,theUnitedKingdomandGermany,aswellastookpartinseveralotherpotentialinvestmentopportunity-drivenmissionstootherpartsoftheworld.Intotal,theWaterlooEDCteamparticipatedin17outboundmissions.

Allofouroutboundinvestmentattractionmissionsfocusedonqualifiedleadgenerationmeetingswithpotentialbusinessinvestors.Inaddition,oneofthemissionstoCaliforniaincludedKitchenerMayorBerryVrbanovic,whohelpedraiseawarenessofWaterloothroughparticipationattheMilkenConference,theFuture of Automobile Conference and more. Mayor VrbanovicalsospokeattheCityAge:BuildtheFutureconferenceinLosAngeles.Severalothermissionswerestrategicallytiedtolarge-scaleeventstomagnifytheeffectivenessofthemission.TeammembersattendedHannover-Messe–theworld’slargestindustrialtechnologytradeshow–inGermany,theAISummitintheUnitedKingdom,andAIWorldinbothNewYorkand Boston.

Over the course of 2018, Waterloo EDC led more than 90inboundmissionswithpotentialinvestors.Thesemissionsoftenincludedecosystemtoursinvolvingmeetingswithlocalcompanies,supportorganizationsandpost-secondaryinstitutions.Inboundmissionswelcomedpotentialcompanyrepresentativesfrom largeautomotive,aerospaceandtechnologycompanies,anairlineandoneoftheworld’slargestmanufacturers.TheseinboundmissionshelpfeedWaterlooEDC’sinvestmentpipelineandbuild strongerrelationshipswithinvestorswhoarealreadyinourpipeline.

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FDI STRATEGY AND PARTNERSHIPWaterlooEDCreceivedfundingsupportforanumberofforeigndirectinvestment-focusedinitiativesfromthe2018InvestCanadaCommunityInitiatives(ICCI).Someoftheprojectsincludedstrategiesforapproachingforeigndirectinvestmentandinvestmentpromotioninkeygeographies–includingtheUnitedKingdomandCalifornia–andforleveragingthestrengthoftheToronto-WaterlooCorridorwereexecutedwiththesefunds.Wereceivedone-timeStrategicSectorSupportGrantfundingfromtheProvinceofOntario,whichincreasedthenumberofmarkets Waterloo EDC could visit in 2018, resourced ourcontentdevelopmenteffortsandmore.

Finally,WaterlooEDCcontinuedtostrengthentheorganization’srelationshipwithourgovernmentpartners.Inthefirsthalfoftheyear,theWaterlooEDCteamhostedagroupofFederalTradeCommissionersfor a visit to Waterloo, and in October the team helpedprepareanewcohortofTradeCommissionerstotellthe“WhyWaterloo”story.WealsobeganaprogramofregularemailupdatestoensurethatTradeCommissioners–andothergovernmentpartners– arekeptapprisedofWaterloo-centricnews,collateraland more.

Lookingbackat2018,WaterlooEDCisproudtonotethatweoutperformedourinvestmentsalesgoalsandhavepositionedourselvesforasuccessful2019.

Baden-WürttembergDelegation.

FOREIGN DIRECT INVESTMENT CONTINUED

W A T E R L O O E D C 2 0 1 8 A N N U A L R E P O R T 1 0

“ Waterloo Region Economic Development Corporation is a great example of the collaborative and barn raising spirit that is a defining characteristic of our region. The team at Waterloo EDC is committed to seeing all parts of the region thrive, and they do a terrific job of matching opportunities with the part of our region where it can best be positioned for success. The organization is nimble, flexible and responsive – which is a must to ensure successful investment. ”

— Dave Jaworsky, Mayor of Waterloo

“ Waterloo EDC has proven to be effective in attracting new investment to Waterloo Region. The Rural Economic Development Strategy that is currently being prepared will strengthen the ability of the Townships to attract and retain local business opportunities within our communities.”

— Joe Nowak, Mayor of Wellesley Township

“ We are on the cusp of something big. Woolwich is a place where people choose to live and work and where businesses want to invest and innovate. Working in partnership with Waterloo EDC, Woolwich continues to attract businesses such as McCormick Tractors. This partnership has also assisted Conestoga Meat Packers to grow their business operations over the last couple years, adding hundreds of jobs. With a results-oriented partnership, the future is truly unlimited for economic growth in Woolwich.”

— Sandy Shantz, Mayor of Woolwich Township

“ As Kitchener and our region continues to develop as an epicentre for innovation, the role Waterloo EDC plays in raising our profile, telling our story and attracting new investment is paramount. Their results speak for themselves – more than $300 million in new investment in 2018. These tangible investments, and the jobs they create in our community, mean a more prosperous future for us all. I look forward to working collaboratively with Waterloo EDC as we showcase Kitchener and our Region on the world stage.”

— Berry Vrbanovic, Mayor of Kitchener

WaterlooEDCcontinuestoworkwithourlocalmunicipaleconomicdevelopmentpartnerstohelplocalbusinessesgrowthroughassistancewithgovernmentfundingandprovidingadvicethroughexpansionmeetings.In2018,WaterlooEDCassistedfourlocalcompaniesinnavigatinggovernmentfundingandincentivesandattended33meetingsaboutpossiblelocalexpansion.

Alongwithlocalmunicipalleaders,WaterlooEDCPresident&CEOTonyLaMantiaattendedWaterlooRegionAdvocacyDayatQueen’sPark.DiscussionswithprovincialleadersfocusedonissuesofpriorityforthecitizensandmunicipalitiesofWaterlooRegion,suchaslocalinfrastructureimprovements,includingimprovedToronto-WaterlooCorridorconnectivityandaffordablehousing.Greaterconnectivityisacentralconcernforthelocalbusinesscommunityandwillcontinuetoplayakeyroleinexpansiondecisionsforlocalcompanies.

TheGovernmentofCanadamadetheirhighly-anticipatedInnovationSuperclusterannouncementin2018,whichwillhavepositiveeconomicconsequencesfor Waterloo Region. As advocates for Waterloo on theseinitiatives,ourcommunitywillplayanimportantrole in the Advanced Manufacturing and SCALE.AI

superclusters,whichwillshare$950millioninfundingwiththreeadditionalprojectsoverthenexttenyears.Thesuperclusterinvestmentisexpectedtocreate50,000 jobs across Canada.

AftertheprovincialelectioninJune,WaterlooEDCworkedtointroducethelocalbusinesscommunitytothenewProgressiveConservativegovernmentthrougharoundtablesessionfocusingontheissuesonwhichtheprovincecouldmakeprogress.Thisroundtableincludedmanufacturing,automotive,technologyandsecuritycompanies,andwasheldattheheadofficeofa local manufacturer.

Withtheobjectiveofhelpinglocalcompaniesgrowandsucceed,WaterlooEDCsponsoredthreeinstallmentsoftheEconomicDevelopmentSpeakerSeries,inpartnershipwiththeGreaterKitchenerWaterlooChamberofCommerce(GKWCC).Thethreeeventswerefocusedonmodernizationinthefoodsector,talentstrategiesforcompanieslookingto grow,andaprofileinscalingfeaturingaspeakerfromfast-growinglocalcompany,North.

WaterlooEDCalsopartneredwiththeGKWCCtobring David MacNaughton, Canadian Ambassador to the United States of America, to Waterloo Region todiscussthenewUnitedStates-Mexico-CanadaAgreement(USMCA),whichwillreplacetheNorthAmericanFreeTradeAgreement(NAFTA).Thiseventwaswell-attendedandprovidedlocalcompanieswithahelpfulandinformedinsightintothenewagreement.

Othernotableeventsponsorshipsincludedthe2018AutoTechSymposium,Oktoberfest’sPassport-to-Successpartnerappreciationeventandthe Manufacturing Summit.

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LOCAL BUSINESS RETENTION AND EXPANSION

The involvement of local companies and partners like the University of Waterloo in these two successful supercluster applications will see some of Waterloo Region’s best researchers, innovators and companies become key contributors in growing these two areas that are so critical for both our community’s and our country’s economic future.

— Berry Vrbanovic, Mayor of Kitchener

2018AutoTechSymposium.

Withanestablishedbaseofmarketingandinvestmentpromotionmaterials,andthedevelopmentofanewwebsite,WaterlooEDCfocused2018onoptimizingexistingcontent,strategiccontentdevelopment,andtheintegrationofnewinboundmarketingandsalesenablementtools.EverytacticfocusedonreachingWaterlooEDC’sinternationalbusinessaudience,intargetgeographiesandsupportingleadgeneration.

Thenewwaterlooedc.cawebsitelaunchedinJanuary2018.Thisinvestmentpromotionwebsite,andanaccompanyinginvestmentmarketingvideo,weredesignedtodemonstratetheunique“WhyWaterloo”valuepropositionforbusinesses.Theresultswereinstantaneous.Websitesessionsinthefirstquarterof2018wereupapproximately200%overthefirstquarterin2017.DownloadsofWaterlooEDCmaterials–includingfeaturesheets,costcomparisonsandsuccessstories–wereupmorethan350%.Thetrendofsubstantiallyincreasedsessionsanddownloadscontinuedthroughout2018,withyear-over-yearincreasesof251%and9040%,respectively.

TheWaterlooEDCteam’swebsitemarketingeffortswererewardedwithnineregional,nationalandinternationalawardsforwebsitedesignincludingDotCOMM,theInternationalEconomicDevelopmentCouncilandtheEconomicDevelopmentCouncil of Ontario.

Inordertobetterserveourtargetaudience,andtoprovideourbusinessdevelopmentteamwithimpactfulandrelevantcollateral,theWaterlooEDCteamputafocusoncontent–inallitsforms–in2018.Withthehelpofaconsultant,theteamidentifiedgapsandopportunities,createdastrategyforcontentdevelopmentanddelivery,andbeganimplementingthe strategy.

Allfeaturesheetsandcostcomparisonswereupdatedwithnewinformationandtofitnewbrandstandards.

Newvideosbasedonthe“WhyWaterloo”valuepropositionweredeveloped(forreleasein2019).Ane-bookfeaturing“SignatureSites”inWaterlooRegionwaspublished.Usingavailableanalytics,thecontenton waterlooedc.cawasrevisedtomaximizesearchengineoptimization.

Alsoin2018,theWaterlooEDCteamputanewfocusoninboundmarketingmethodologyforthepurposeofleadgeneration.Thisincludedtheimplementationofamarketingautomationplatformtomultiplytheimpactofthemarketingeffortatallstagesoftheinboundmethodology–attract,engageandconvert.Aspartofthiseffort,WaterlooEDClaunchedabloginlateNovember to share key elements of the Waterloo story –newsitems,successstories,etc.–whileprovidingopportunitiesforconversion.Thekeylearningsfromourongoingexperimentationwithinboundstrategieswillinformallcampaignsandcontentdevelopment in2019.

INVESTMENT MARKETING AND AWARENESS

W A T E R L O O E D C 2 0 1 8 A N N U A L R E P O R T 1 2

WaterlooEDC’sPublicInformationMeeting.

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W A T E R L O O E D C 2 0 1 8 A N N U A L R E P O R T 1 4

In 2017, Waterloo EDC – with input from our Board of Directors – finalized a strategic business plan that will lead the organization from 2018 to 2023. Thisplanfocusesonourcoreorganizationalpillars,coreobjectivesandpotentialincrementalmandatesthatwouldaccompanypossibleadditionalfunding.WaterlooEDCreceivedaone-timeStrategicSectorSupportGrantof$400,000in2018/2019asapilotprogramfromtheProvinceofOntario,andearlyresultssuggestastrongreturnonthisinvestment.IncreasedfundingwillbecriticalforustotrulyunlockthepotentialoftheToronto-WaterlooCorridorandthecorrespondingbenefitsandinvestmentsforWaterlooRegion.

Afterthefirstyearofthisplan,WaterlooEDCcanreportthatwithcloseddealsof$320.7millionin2018,wearealreadynearlyone-thirdofthewaytoourfive-yeargoal,witharobustpipelineofpotentialinvestmentsthatprovidesastrongpositiontocontinuetodeliveronourcloseddealsobjectives.Asweprogressourfive-yearstrategicplan,theteamisalsofocusedonlandingalarge,transformative,elephant-sizeddeal.

*WaterlooEDCisseekingprovincialandfederalgovernmentfundingtoleveragecurrentmunicipalcontributions.

STRATEGIC PLAN

Investment Sales and Trade Promotion

Concierge Service

Investment Marketing and Awareness

Intergovernmental Advocacy

To forge a clear track record of investment attraction, scale-up wins, trade promotion and increased Waterloo Region health

To build a best-in-class “go to” concierge service to facilitate investment attraction and retention

To increase awareness and interest of Waterloo Region’s unique economic development value proposition in targeted geographies and sectors

To lead government navigation, advocacy and economic development initiatives to increase Waterloo Region prosperity

OBJECTIVES WITH ADDITIONAL FUNDING*2019 – 2023Close deals of $500M, develop a pipeline of potential investment of $250M

CURRENT OBJECTIVES 2018 – 2023

Close deals of $350M, maintain a pipeline of potential investment of $200M

STRATEGIC BUSINESS PLAN 2018 – 2023

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FINANCIAL STATEMENTS

REVENUEMunicipal funding $2,000,000 Federal government funding $152,876 Provincial government funding $267,714Other revenue $21,102 Total revenue $2,441,692

EXPENSESProgram costs $679,949 Administrative $1,817,158 Amortization $44,620 Total expenses $2,541,727

(Deficiency) of revenue over expenses ($100,035)

NET ASSETSNet assets, beginning of year $738,170 (Deficiency) of revenue over expenses ($100,035)Net assets, end of year $638,135

STATEMENT OF EARNINGS – YEAR ENDED DECEMBER 31, 2018

STATEMENT OF NET ASSETS – YEAR ENDED DECEMBER 31, 2018

W A T E R L O O E D C 2 0 1 8 A N N U A L R E P O R T 1 6

ASSETSCash $218,955 Investments $420,000 Accounts receivable $161,132 HST receivable $23,796 Prepaid expenses $25,234 Current assets $849,117

Capital assets $39,344 Total assets $888,461

LIABILITIES AND NET ASSETSAccounts payable and accrued liabilities $250,326 Net assets $638,135 Total liabilities and net assets $888,461

FINANCIAL POSITION – DECEMBER 31, 2018

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BOARD OF DIRECTORS

Gerry Remers Chair of the BoardRetiredPresidentandCOO,ChristieDigital Systems Canada

Jane Black* RetiredRegional Vice President, Royal Bank

Charles CipollaRetiredCharteredProfessional Accountant and former President ofRockwellAutomation

Bob Crow* Senior Business Advisor, Communitech & Canadian Digital MediaNetwork

Krystal Darling**

CEO, Tri-Mach GroupInc.

Chris Donnelly*

Vice President and Counsel, Government,Industry and RegulatoryAffairs,Manulife Financial

Arnold Drung President, Conestoga Meat Packers Ltd.

Dr. Barbara Fennessy Vice President, AppliedResearchandInternationalEducation,ConestogaCollegeInstituteofTechnology and Advanced Learning

David Fransen ChiefOperationsOfficer,NextGenerationManufacturing Canada

Murray Gamble President,C3Group

Martha George President,GrandValleyConstructionAssociation

Mike Kirkup CTO, Encircle

Greg McCauley RetiredCharteredProfessional Accountant

Jeff MacIntyre Co-founder, GrappleworksLtd.

Jennifer McCredieLeader, North American Strategy and Business Development,Oracle

Avvey Peters Chief Strategy Officer,Communitech

Jay Shah** Director, Velocity

Erica Tennenbaum**

Vice President, Wealth Advisor and AssociatePortfolioManager at RBC DominionSecurities*DepartedtheBoardin2018**JoinedtheBoardfor2019

Waterloo Region Economic Development Corporation 151CharlesSt.W,Suite100,Kitchener,ON,N2G1H6

@WaterlooEDC/WaterlooEDCwaterlooedc.ca