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EY Attractiveness Surveys

Netherlands Attractiveness Survey 2014The Netherlands - stable and strong

2 EY’s attractiveness survey Barometer Nederlands vestigingsklimaat 2014

Realiteit section title section heading

Att

ract

iven

ess EY Attractiveness Surveys

EY’s attractiveness surveys are widely recognized by our clients,

the media and major public stakeholders as a key source of insight

on foreign direct investment (FDI). Examining the attractiveness

of a particular region or country as an investment destination.

The surveys are designed to help businesses to make investment

decisions and governments to remove barriers to future growth.

A two-step methodology analyses both the reality and perception

of FDI in the respective country or region. Findings are based

on the views of representative panels of international and local

opinion leaders and decision-makers.

3The Netherlands - stable and strong

www.ey.com/attractiveness

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ContentsEditorial

Management summary

RealityForeign direct investments in the Netherlands and Europe

PerceptionThe Netherlands seen through foreign investor’s eyes

ActionsWhat should be the next step for the Netherlands?

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4 EY’s attractiveness survey Netherlands Attractiveness Survey 2014

Europe has had a tough time in the last few years - recession, unemployment, austerity, weak consumer confidence and uncertainty have battered the economy. However, 2013 appears to have been a turning point. Most economies have begun to grow, consumer spending has increased, the Purchasing Managers’ Index has started reporting a rise and there are signs of improving competitiveness in some of the peripheral economies. Organizations have begun to see growth and profits again and boards are showing green flags for investment proposals.

Europe’s emergence from recession is well reflected in this year’s EY European attractiveness survey. The year 2013 set a record for FDI in Europe. Foreign direct investment decisions in the continent reached an all-time high of 3,955 projects, up 4% from the previous year and 17% from the pre-crisis average. Respondents of

our survey ranked Western Europe as the world’s most attractive region to establish operations — overtaking China for the first time since 2009. Also the other BRIC economies appeared to be losing some of their shine.

The Netherlands continues to be regarded as a safe investment haven. The number of foreign direct investment projects remained unchanged since the year before at 161. Primarily head offices, Internet data centres and R&D facilities are locating in the Netherlands in growing numbers, at the expense of sales and marketing, logistics and production facilities.

Just 40% of respondents in this EY Netherlands Attractiveness Survey expect the Netherlands’ attractiveness to increase in the coming years, compared to a figure of 54% for Europe. Nonetheless, our country still holds several strong trump

Nederland blijft een veilige investeringshaven

The Netherlands remains a safe haven for investment

Caroline RodenburgSenior Manager EY

Marcel van LooCountry ManagingPartner EY

Editorial



cards to draw investors. The most important are the skills level of local employees, the transport, logistics and telecommunications infrastructure and the overall quality of life. Factors that are seen as less attractive are mainly related to costs (e.g. labor costs, corporate income tax, grants and incentives) and rules and regulations (e.g. flexibility of labor laws).

Respondents at the European level do not regard economic recovery as an invitation to loosen the reins. They view competitive strength as a requisite for sustainable growth and a more attractive Europe. One of the elements contributing to such sustainable growth is the rising interest in corporate social responsibility (CSR): 86% of respondents to this survey cite CSR as an element of their investment policy. A further 65% state this applies to both social and ecological sustainability. The question naturally arises: How can the

Netherlands increase its attractiveness in this area? Does the country have the right institutions and policies in the area of social and ecological sustainability to help keep companies competitive over the long term?

The Netherlands Attractiveness Survey 2014 includes interviews with a number of foreign investors who have made investments in the Netherlands during the recent past, and shares the views of experts on the Dutch business climate. In contributing to the discussion about the attractiveness of the Netherlands, we hope this report and the survey results and expert views presented will provide fresh inspiration for effective policies on this subject.

The Netherlands remains a safe haven for investment


Businesses from the United States continue to be the largest foreign direct investor in the Netherlands. There was an increase in the number of investment projects originating from the other top-6 leading investor countries, but a notable drop in the number of investment projects from Japan, to only two.

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VerenigdeStaten

VerenigdKoninkrijk

Duitsland Frankrijk China Zweden India Zuid-Korea Singapore Zwitserland Oostenrijk Canada Japan Spanje Overig

2011 2012 2013

12013: a record year for foreign direct investment projects in Europe

Most investments still originate from the United States Stable and strong

Following a regression in 2012, the number of investment projects in Europe has resumed an upward trend, rising to 3,955 in 2013.

With 161 foreign direct investment projects, the Netherlands exactly matched the total from 2012.

2011 2012 20132010

Investeringsprojecten

3,758 3,909 3,7973,955

2 3

Source: EY’s European Investment Monitor 2014

Source: EY’s European Investment Monitor 2014 Source: EY’s European Investment Monitor 2014

United States

United Kingdom

Germany

France

China

Sweden

India

South Korea

Singapore

Switzerland

Austria

Canada

Japan

Spain

Other

626767

211519

121215

857

556

246

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2010 2011 2012 2013

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Management summary



Change in the types of facilities invested in 4


The outlook for new investment projects is better than in 2012. This mainly concerns investments in sales and marketing offices and logistics facilities. Notably, especially businesses already established in the Netherlands expect to make investments here.

21% 26%

+5%

2012 2013

Positive outlook for new investment projects5

Very attractive Fairly attractive

Local labor skills

Transport and logistics infrastructure

Telecommunicationsinfrastructure

Quality of life

Entrepreneurial culture and entrepreneurship

76%

74%

73%

72%

72%

29% 47%

42%32%

39%34%

42%30%

45%27%

Skills level of local employees and transport and logistics infrastructure are most attractive factors for locating in the Netherlands

The Netherlands has a number of clear strengths. Companies already established in the Netherlands generally have a more positive perception of the various business location factors than those that are not established in the Netherlands (yet).

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€Sales & Marketing

Headquarters

Logistics

Manufacturing

Internet Data Center

Research & Development

Testing & Servicing

Shared Services Center

2011 2012 2013

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50% view the Netherlands as having the right institutions and policies in the area of social and ecological sustainability

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RealityForeign direct investments in the Netherlands and Europe


161 foreign direct investment projects in the Netherlands in 2013; equal to 2012.

The United Kingdom, Germany and France are the main European locations for foreign direct investment.

The Netherlands ranks sixth in the top 10 of countries with the most foreign direct investment projects.

Most investments were made in sales and marketing facilities.

The United States is the most important investor in the Netherlands.

Key findings



Total number of foreign direct investment projects in Europe In 2013, Europe attracted a record number of 3,955 foreign direct investment projects, representing an increase of more than 4% relative to 2012 and the highest number of investments till now. This also marked a resumption of the upward trend in foreign direct investment projects in Europe after the regression in 2012.

The top 6 countries with the largest number of investment projects remained unchanged in 2013. Notable changes in the top 20 were Finland (+44%), Switzerland (+25%), Poland (-28%) and Spain and Serbia (both -19%). Among Eastern European countries, Russia took the lead over Poland.



Number of foreign direct investment projects in Europe

European investments

Country

United Kingdom 779 697

Germany 701 624

France 514 471

Spain 221 274

Belgium 175 169

Netherlands 161 161

Russia 114 128

Ireland 111 123

Finland 108 75

Poland 107 148

Turkey 98 95

Switzerland 76 61

Serbia 63 78

Czech Republic 60 64

Denmark 58 57

Sweden 54 54

Italy 53 60

Romania 52 50

Hungary 38 51

Portugal 38 46

Other 354 311

Total 3955 3797

+15%

+12%

-11%

-19%

-10%

-19%

-6%

-25%

-12%

-17%

-28%

+9%

+4%

+44%

0%

+3%

+25%

+2%

+4%

+14%

+4%

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Ranking in

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Number ofprojects in

2012Difference

2012-20131

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2011 2012 20132010

Investeringsprojecten

3,758 3,909 3,7973,955

Wonder Wang, CEO of Huawei Technologies Netherlands

“Other countries try to unveil the secret of the Dutch success formula” The Netherlands stands out in terms of its innovative culture, which is very important for a technology company such as ours. I would recommend the Netherlands to continue investing in the concept of being a gateway to Europe. Although the country still has a leading edge over other countries, I’ve noted that they are trying their very best to unveil the secret of the Dutch success formula.

Read the full interview on www.ey.nl/attractiveness


€Sales & Marketing

Headquarters

Logistics

Manufacturing

Internet Data Center

Research & Development

Testing & Servicing

Shared Services Center

2011 2012 2013

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Reality



Investment trends in the Netherlands

With 161 foreign direct investment projects in 2013, the Netherlands exactly matched the total from 2012. In practical terms, these projects concern the establishment of specific facilities such as head offices, sales organisations and logistics centres. This placed the Netherlands sixth in the top 10 of European countries in terms of attracting foreign direct investment projects. Once more, the Netherlands ranked just after Belgium, though the gap has increased (Belgium grew from 169 to 175 investments). In spite of this higher number, Belgium was rated as less of a competitor than in the previous year. In 2013, 13% of respondents considered Belgium as the Netherlands’ biggest competitor, compared to 7% in 2014.

Though the number of investment projects remained stable, we have seen several changes in the types of facilities invested in, including a decline in the number of foreign direct investments in sales and marketing, logistics and production facilities and growth in the number of investments in head offices, Internet data centres, R&D and testing and servicing facilities.

Foreign direct investments in the Netherlands by type of facility

Investments by country of originBusinesses from the United States continue to be the largest foreign investors in the Netherlands. The number of investments from the United States remained stable at 67 in 2013 and represented almost 42% of the total number of foreign direct investment projects in the Netherlands. There was an increase in the number of investment projects originating from the other top-6 leading investor countries, in contrast with Japan. The large number of investment projects from Japan recorded in recent years reversed in 2012 and tailed off to just two projects in 2013.

The number of investment projects originating from BRIC countries decreased from 12 to 11 in 2013, which also represents a decline in their relative share: from 7.0% in 2010, 6.5% in 2011 and 7.5% in 2012, to 6.8% in 2013. This places the Netherlands below the European average (7.9%)

Foreign direct investments in the Netherlands by country of origin

United States

United Kingdom

Germany

France

China

Sweden

India

South Korea

Singapore

Switzerland

Austria

Canada

Japan

Spain

Other

626767

211519

121215

857

556

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433

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272818

United States

United Kingdom

Germany

France

China

Sweden

India

South Korea

Singapore

Switzerland

Austria

Canada

Japan

Spain

Other

626767

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VerenigdeStaten

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Duitsland Frankrijk China Zweden India Zuid-Korea Singapore Zwitserland Oostenrijk Canada Japan Spanje Overig

2011 2012 2013



Foreign direct investments in the Netherlands by type of facility

Investments by city and provinceAmsterdam was by far the most popular location for foreign direct investment projects, with 29% of foreign companies that came to the Netherlands in 2013 opting for Amsterdam. In spite of the large number of investment projects (46), this total was considerably lower than in 2012 (59). Rotterdam continues to rank second, with 13 projects, up from 8 the year before. The Hague and Eindhoven are tied in third place with 8 projects each.

Where the Dutch provinces are concerned, North Holland attracted a particularly high number of foreign direct investment projects (60); a share of around 37% of the total (42% in 2012). The decline here primarily accrued to the benefit of South Holland (22 projects in 2012 versus 34 in 2013). North Brabant recorded a continued drop in the number of foreign direct investments, from 40 (2011) to 31 (2012) to 24 (2013).

Investments in ‘greenfield operations’ by sectorForeign companies mainly invest in greenfield operations in the Netherlands (80% in 2013), a trend that has been underway for some years. This involves the development of entirely new facilities. Foreign direct investments of this type are mainly concentrated in business services and software development. Compared with

countries such as Belgium, Germany and France, the number of foreign investor expansion projects in the Netherlands is relatively low (18.1% on average in the past three years, compared with 33.0%, 19.9%, 38.6% on average in Belgium, Germany and France, respectively).

OutlookThe outlook for new investment projects is better than in 2013, when 21% of senior executives from foreign companies stated they would or might invest in the Netherlands next year, compared to 26% this year. This mainly concerns investments in sales and marketing offices and logistics facilities. Notably, many of the businesses that expect they may invest in our country are already established in the Netherlands. Those interviewed expect that the Netherlands will mainly attract logistics (32%) and R&D facilities (26%), as well as head offices (22%) in the years ahead. The large number of investments in R&D facilities marks a positive development (particularly from companies already established in the Netherlands and from Asian companies). If this trend is borne out over the years ahead and the rise in the number of investments in R&D facilities continues, it would appear that the Netherlands’ ambition to attract knowledge-intensive industry is translating into absolute figures.

Maarten Camps, Secretary-General of the Dutch Ministry of Economic Affairs

“Sustainable entrepreneurship is more profitable” Entrepreneurship without embedding sustainability into the corporate strategy and methods is an untenable position, eventually. It has become clear that sustainable entrepreneurship can be profitable - what’s more, non-sustainable entrepreneurship is, eventually, not profitable.




PerceptionThe Netherlands seen through foreign investor’s eyes

The skills level of local employees is considered the most attractive feature of the Dutch business climate.

Labor costs are still perceived as high by foreign investors.

Germany is considered the Netherlands’ biggest competitor.

Amsterdam is seen as the most attractive Dutch city.

Key findings



Perception Why do companies decide in favour of

the Netherlands?

It is important to know why companies decide in favour of the Netherlands, perhaps even more so under the current economic conditions. What are the factors that make foreign companies decide to locate in the Netherlands and what are the factors that keep them from doing so?

In the perception of foreign investors, the Netherlands has a number of clear strengths, including the skills level of local employees, the transport, logistics and telecommunications

infrastructure and the overall quality of life. The five factors cited as most attractive attracted similar scores (between 72% and 76%), while the other location factors were rated considerably lower at between 35% and 58%. However, we can discern a clear trend: companies already established in the Netherlands generally have a more positive perception of the various location factors than those that are not established in the Netherlands (yet).

Factors that are seen as less attractive are mainly related to costs (e.g. labor costs, corporate income tax, grants and incentives) and rules and regulations (e.g. flexibility of labor laws). There is a difference in perception here between companies that are and that are not established in the Netherlands. For instance, those established in the Netherlands are far more positive about aspects such as tax relief schemes, grants and incentives. Apparently, foreign companies only find out about these aspects once they decide to locate in the Netherlands.

Points for improvement with respect to the Dutch business climate for establishing a business

Strengths of the Dutch business climate for establishing a business

Companies already established in the Netherlands have a more positive perception

Not very attractive Not at all attractive

Labor costs

Labor law flexibility regarding hiring, termination and duration of work

Tax advantages, subsidies and support measures from public authorities

A clear and stable political, legislative and administrative environment

Corporate taxation

42%

39%

22%

22%

21%

36% 6%

10%29%

3%19%

4%18%

6%15%

Very attractive Fairly attractive

Local labor skills level

Transport and logistics infrastructure

Telecommunications infrastructure

Quality of life

Entrepreneurial culture and entrepreneurship

76%

74%

73%

72%

72%

29% 47%

42%32%

39%34%

42%30%

45%27%


Perception

13%

5%

42%44%

Bron: EY’s European Attractiveness Survey 2013

ChinaBelgiumGermany

UnitedKingdom

United States

2014 2013

7%

9%

3% 3%

Denmark

Switzerland

2%3%

1%3%

1%4%

The attractiveness of the Netherlands also depends on the climate for establishing a business in other countries. If other (European) countries make improvements to that climate, the position of the Netherlands may suffer. It could result in a lower number of foreign direct investment projects attracted, or companies leaving the

Netherlands altogether. For years, Germany has been regarded as the Netherlands’ biggest competitor. In 2014 the United Kingdom and Belgium traded places. Yet while investors may perceive Belgium as less of a competitor than in the past, it still attracted more investment projects than the Netherlands in 2013.

Competition

Main competitors for the Netherlands



Dutch cities

Most businesses seeking to establish a new location abroad start out by comparing countries, and comparing cities is a natural second step. Knowing this, cities promote themselves to make sure they attract the attention of companies that are looking around. Amsterdam is considered the most attractive Dutch city, followed by Rotterdam, though the gap between the two has narrowed considerably, from 33 to 14 percentage points (64% versus 50%). These perceptions diverge far more among companies that are not yet established in the Netherlands, with Amsterdam leading Rotterdam by 59% to 33%. Looking at respondents’ first choice, Amsterdam has clearly lost much of its advantage over Rotterdam. Whereas Amsterdam and Rotterdam scored 73% and 9%, respectively, in 2013, they scored 49% and 18% in 2014, The top 5 cities cited included the four major cities and Eindhoven. Evidently, these cities have been successful in getting the attention of foreign businesses. The Hague strengthened its position relative to the other cities (from 6% to 14%), while Utrecht and Eindhoven were almost unchanged.

Rating Amsterdam, businesses cite the transport and logistics infrastructure (41%), the quality of life (25%) and the skills level of local employees and the domestic market (both 22%) as the most attractive aspects. Rotterdam is praised mainly for its transport and logistics infrastructure (49%), the skills level of local employees (26%) and entrepreneurial culture and the quality of life (both 20%).

The most attractive cities in the Netherlands


Amsterdam

Total First choice

64%

Utrecht

11%

49%

9%

Eindhoven

10%3%

The Hague

14%4%

Rotterdam

50%18%


Amsterdam

Total First choice

64%

Utrecht

11%

49%

9%

Eindhoven

10%3%

The Hague

14%4%

Rotterdam

50%18%

”With our tax regime, we belong to the top worldwide” The Netherlands has a solid tax regime that places it among the top worldwide. The country was the first to offer a participation exemption and has always been a frontrunner in concluding international tax treaties. As a result, the scope and quality of our current network of treaties are of an exceptionally high level.

Ratna Kroneman, Partner, EY Tax Advisors LLP




ActionsWhat should be the next step for the Netherlands?

40% expect the Dutch climate for establishing a business to improve over the next three years.

28% regard logistics and distribution as the driver of Dutch economic growth over the next few years.

22% consider improvements in education and training in new technologies a necessity for making the Netherlands more innovative.

30% see reducing the tax burden as a point for improvement if the Netherlands is to remain competitive globally.

Key findings



Foreign companies have confidence in the Dutch business climate, expecting that it will either improve (40%) or remain the same (35%) over the next three years. Roughly 14% expect it to worsen. This is in line with their expectations for Europe as a whole, with 54% expecting improvement, 33% expecting matters to remain the same and 12% expecting the business climate to worsen. Notably, 11% of respondents stated they were not sure as regards the climate in the Netherlands; this percentage has usually been lower, and for Europe is only 1%.

For a number of years now, the Dutch government has pursued a policy aimed at further bolstering the Dutch top sectors with which the country already stands out internationally. To achieve this, the government, the corporate sector, universities and research centres have teamed up to work on expertise and innovation. These top sectors are agriculture & food, the creative industry, energy, horticulture and propagation material, life sciences & health, water, high-tech systems and materials, logistics, chemicals and headquarters.

We have asked decision-makers of foreign companies which Dutch sectors they believe could fuel growth. They primarily see opportunities for logistics and distribution and ICT. For all other sectors, they see little difference in potential. The high scores given to logistics and distribution fit well with the Netherlands’ top sectors policy, though it is worth noting that mainly companies established in the Netherlands rank logistics and ICT in first place. Foreign companies mainly place their bets on the transport and automotive sector and on banking and insurance.

Confidence in the Dutch business climate

Drivers of the Dutch economy

Which business sectors will fuel growth in the Netherlands over the next few years?

Logistics and distribution channels

IT

Transport industry and automotive

BtoB services excluding finance

Banks / Finance / Insurance

28%

22%

15%

15%

14%

Clean tech

Pharmaceutical industry and biotechnology

Green technology

Energy and utilities

Consumer goods

14%

12%

12%

10%

9%

“The Netherlands could offer start-ups more incentives” What we see in the Netherlands is that the collaboration between the government, knowledge institutions and the business community, the “triple helix”, is much more effective than elsewhere. However, the country could devote more attention to attracting start-ups by offering them appealing incentives.

Patrick Gabriëls, Partner, EY Accountants and co-founder of Startupbootcamp HighTechXL



It is useful to know what foreign companies believe it takes to make the Netherlands a leader in innovation, if only because the Dutch government places a special focus on innovation, as attested by its ambition to grow R&D activities to make up 2.5% of the GDP by 2020. Innovation is also crucial to putting the economy on a sustainable growth track.

Companies cited improvements in education and training in new technologies (40%) as being the most important factor, followed by increasing tax incentives for innovative enterprises (34%) and the development of a culture of innovation and creativity (27%). A notably large number of Asian companies stress the importance of the development of a green and clean technology-based culture and of social innovation (36%).

Asked whether CSR is integrated in their company’s investment policy, 86% of respondents answered that it is. This percentage is highest among Western European and North American companies. Furthermore, the larger the company the more likely that they apply CSR in their investment policy; this is true of 98% of companies with a turnover of more than €1.5 billion as opposed to 78% of those with turnover under €150 million.

65% of companies that apply CSR in their investment policy take account of both social and ecological sustainability. Among companies that focus on just one of these elements, the distribution between them is more or less equal (19% as against 14%).

50% of respondents view the Netherlands as having the right institutions and policies in the area of social and ecological sustainability to help keep companies competitive over the long term.

The Netherlands as a leader in innovation

Yes, for both environmental and social sustainability factors

Yes, but only in terms of social sustainability

Yes, but only in terms of ecological sustainability

No, not al all

Can't say

29%

9%

12%22%

28%

Yes, for both environmental and social sustainability factors

Yes, but only in terms of social sustainability

Yes, but only in terms of ecological sustainability

No, not al all

Can't say

29%

9%

12%22%

28%

Actions

Perception as regards the existence of institutions and policies in the area of social and environmental sustainability in the Netherlands that can help keep companies competitive over the long term



Decision-makers of foreign companies believe the Netherlands should focus primarily on reducing the tax burden, improving education, stimulating R&D and incentivising foreign companies. That will enable the Netherlands to retain its prominent position in the world’s competitive environment of countries and cities.

In the field of ICT, the new EU VAT regulations, with effect from 2015, represent an excellent opportunity for the Netherlands to present itself as a highly competitive location for businesses in the telecommunications, radio and television and digital services sectors. Under the new VAT regulations, companies in these sectors will be required to pay VAT no longer in the country where they have domicile, but in the home country of the consumer. Most providers of these services are currently based in Luxembourg on account of that country’s low VAT rate. Since from 2015 the provider’s country of establishment will no longer be relevant, other location criteria will come to the foreground. Several providers are already considering relocation. This is an opportunity for the Netherlands to prepare an attractive proposition and advertise itself as their ideal destination.

How can the Netherlands retain its worldwide competitiveness?

Once again, in 2014 the Netherlands proves to be favourably positioned to attract foreign direct investment projects. Ranking sixth among all other European countries is a notable feat. Even so, the fact that we have not been able to benefit from the growth in the total number of investment projects in Europe does remind us that we should not take this result for granted. We will have to continue investing in further improvements to the Dutch business climate.

The expected revival of the European markets and the particular strengths of the Netherlands provide opportunities to do so and have brought the country to a turning point. A number of structural measures should enable the Netherlands to translate this growing optimism into an even more attractive business climate.

This means we will also have to address the country’s more persistent weaknesses, particularly in the areas of costs (cost of labor, corporate income tax, grants and incentives) and regulatory transparency (including flexibility of labor laws). Removing these bottlenecks is becoming ever more urgent and should be a priority on Dutch policymakers’ agendas. At the same time, an effort should be made to highlight the attractiveness of the Dutch business climate more

effectively internationally. For example, foreign companies do not appear to be sufficiently aware of the opportunities in terms of tax relief schemes, grants en incentives.

To change that, public authorities, companies and knowledge institutions in the Netherlands will have to join forces to provide the international corporate sector with a clear picture of the benefits of the Dutch business environment. This should also include attention for the increasing importance of corporate social responsibility as an element of the business climate. In this context, it is important to consider whether the Netherlands has effective institutions and policies in the area of social and ecological sustainability. At the turning point where it is now, the country will need distinctive institutions and policies in this field in order to tip the scales in its favour.

Steps to be taken

“Attractiveness for start-ups Netherlands’ greatest strength” The way I see it, the Netherlands’ greatest strength is its attractiveness for start-ups. With the exception of the United Kingdom, in other European countries, you often have to deal

with elaborate and slow procedures. Compared to Iceland, it’s easier for us to gain access to capital of European investors here. That’s part of the reason we’ve decided to definitely relocate our head office to the Netherlands shortly.

Gauti Reynisson, founder and CEO of Mint Solutions Holland BV



The Netherlands Attractiveness Survey 2014 is based on two main sources:

Actual attractiveness of the Netherlands to foreign investors

Actual investment projects in Europe according to the EY European Investment Monitor (EIM). Created by EY in 1997, the EIM permanently monitors the actual cross-border investments and expansions of international companies in Europe. By excluding portfolio investments and mergers and acquisitions, it shows the reality of investments in manufacturing or service operations by foreign companies. The database, which is maintained by Oxford Intelligence, registers announced investments, as well as, where available, the number of jobs created and the amount in capital expenditure involved. Projects are identified by monitoring and analyzing over 10,000 sources of news on a daily basis. The research team aims to contact 70% of the companies that make investments. This verification process ensures that data are presented accurately. The EIM excludes the following:

Mergers, acquisitions and joint ventures

License agreements

Retail and leisure operations, hotels and property investments

Investments in utility services, including telecommunications networks, airports and ports

Extraction activities (minerals, ores and fuels)

Portfolio investments

Replacement investments with respect to manufacturing facilities

Not-for-profit organizations

The perception of foreign investors with respect to the attractiveness of the Netherlands and its

competitors The perceptions and expectations of international decision-makers with respect to the Netherlands as a prospective investment country. This information was obtained from interviewing 202 decision-makers of international companies. These interviews were held by the CSA Institute in January 2014. About 50% of the persons interviewed are established in the Netherlands, while the other 50% are established abroad. Of the latter group, 28% are established outside Europe (North America: 18%, Asia: 9%, Oceania: 1%). A total of 808 international decision-makers were asked to voice their opinion on the attractiveness of Europe.

Methodology

1 2

Methodology

Information on the sample The selection of companies is representative for those that actually invest in the Netherlands. This was validated by taking into consideration the nationality of the parent companies, the size of the companies and their industry affiliation. Their respective shares will be presented in the following pie charts. Nationality of the respondents In order to ensure that the geographical distance between the respondents and their business location was observed, the companies were divided into two groups according to their nationality: Half of the group of decision-makers work for subsidiaries in the Netherlands and were interviewed in the Netherlands.

The other half of the group of decision-makers were interviewed in their country of origin.



Surveyed companies by nationality Company size and sectors

Sectors of industry

North America41%

27%Western Europe

Asia19%

Nordics8%

Oceania2%

Central and Eastern Europe3%

Industry, automotive and energy34%

Other sectors of activity2%

34%Private and business services

15%Consumer goods

Chemical and pharmaceutical industries

4%High-tech & telecommunication infrastructures and equipments

11%

Position of the respondents

Financial Director51%

18%Marketing and

Commercial Director

6%Managing Director /

Senior Vice President / COO

Other20%

Director of Development5%

The interviews were held with decision-makers who had gained experience in or with the Netherlands. Most of them were finance directors.

The five selected and surveyed sectors of industry are representative of the foreign companies that are established in the Netherlands (based on the EY European Investment Monitor).

To provide further representativeness guarantees with respect to diversity and international strategies, the survey ensured that the views of the following target groups were included as well: • SMEs • Multinational corporations • Industrial companies • Service companies

Less than € 150 million35%

40%€ 150 million -

€ 1.5 billion

More than € 1.5 billion

25%


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EY International Location Advisory Services EY International Location Advisory Services (ILAS) is a part of Real Estate Advisory Services (REAS) and focuses on the area of transaction guidance and support, strategic real estate advice and project finance. We offer services in the fields of real estate portfolio optimisation, due-diligence audits, valuation, land commercialisation and risk management, feasibility studies, area development and public-private partnership projects. We support companies globally in making strategic decisions regarding international investments and location or relocation questions. In addition, we help governments and investment promotion agencies in their targeting, acquisition and after-care strategy and policy formulation aimed at maximizing the volume and quality of investments. Deciding on target group, acquisition and after-care strategies is a relevant factor in that respect. Companies are increasingly contemplating new locations, developing cross-border investment strategies. In addition, more and more countries attempt to attract and retain foreign investors. These new opportunities require a sharpened focus on the balance between the risks and rewards of economies and industries globally. Today, more than ever, companies look at a variety of costs, quality and risk factors before selecting their strategic business locations. The question of ‘where do we (re)locate?’ is becoming a more and more important part of a company’s overall strategy. EY ILAS will help you determine the how, where and when of such decisions. We offer solutions for clients who have questions related to their location strategy, plant and office locations, real estate investments and divestments. Following an analysis of an investment project’s specific needs, our team works with the client’s management on the best long-term options in terms of criteria such as cost savings, available labour pools, and secure infrastructure.

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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

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Contacts:

Tristan DhondtPartner / Real Estate Advisory ServicesTel.: +31 88 4071006 Email: [email protected]

Caroline RodenburgSenior Manager / International Location Advisory ServicesTel.: +31 88 4070809Email: [email protected]

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