Invest in FranceFRANCE, EXPECT MORE

Audrey LUCBERNET, Inward Investment OfficerAugust 2011

WHO WE ARE?2 Public entity under the supervision of the French government We help Indian companies in identifying the best investment opportunities in France (from setting-up an office to greenfield projects and M&A) Coordination with the regional authorities of France in order to follow the different steps of your project: finding a location, proposals of real estates, benchmark of cost of setting-up, administrative procedures, recruitment, staff expatriation, public funding, informations on tax and labour law in France, . . .

Our services are free of cost & confidential

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WHERE WE ARE?

ALLOCATION OF FDIs IN EUROPE

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- Number 1 in Europe in term of amount of FDIs

- Number 2 in Europe in term of number of projects

2ALLOCATION OF FDIs IN FRANCE PER ORIGIN & PER INDUSTRY

INDIAN INVESTMENTS IN FRANCE

France welcomes Indian Investments- 100 Indian companies in France

- hiring 7000 employees

- 60 000 Indian citizens living in France

France welcomes Indian Investments

2What are their & yours benefits in France?

THE MARKET2 The 2nd largest economy in Europe with access to 500 million consumers

The Gateway to your business in Europe, Africa & French speaking countries

France gives you access to more than 40 French speaking countries thats is to say more than 200 millions French speaking persons for which French is the native and administrative langage THE FRENCH SPEAKING MARKET

France gives you also access to the Schengen AreaSchengen Area = 25 member States

Including Switzerland since December 2008

UK and Ireland are not member States

THE MARKET2Food industry: 1st rank in EuropeLife sciences: 1st rank in EuropeAerospace: 1st rank in EuropeChemical industry: 2nd Rank in Europe

Automotive industry: 2nd rank in EuropeIT: 3rd rank in Europe

IT Market in France, Key figures

- Turnover: 112 billion euros telecommunications (55.7 billion), IT (13.4 billion) and electronic goods (8.4billion)

- Represents 16% of the European market

- Represent a workforce of 1 335 000 employees

- Important French leaders in IT: Alcatel-Lucent (telecoms and network equipment manufacturer), Dassault Systems (software development) France Telecom (telecommunications), Gemalto (world leader in the production and marketing of smart cards), Vivendi (communication and entertainment), Cap Gemini and Atos Origin (IT consulting).

- Presence of international companies: Microsoft set up an R&D center dedicated to the search engine "Live Search in Paris ; Huawei Technologies Co. Chinese telecoms supplier set-up a training center, including laboratories and classrooms & 2 R&D centers; British firm Cambridge Silicon Radio SARL extended its R&D center in 2010 dedicated to wireless communications. It is located in the Provence-Alpes-Cte dAzur region.

IT Clusters, source for research & partnership opportunitiesMedia & networkCap digitalSecure electronic transactionsSystem@aticImaginoveMinalogicSecure communication solutionsComplex optical & Imaging systemLasersAerospace valleyElopsys

IT Clusters specificsMINALOGIC in Rhne-Alpes, which fosters innovation in the development and production of intelligent miniaturized products and services for industry (micro-nanotechnologies and embedded software intelligence). www.minalogic.orgSCS (Secure Communication Solutions) in Provence-Alpes-Cte d'Azur, which focuses on the design and development of new solutions - integrating components, software, networks and systems - for safe and reliable data exchange and processing. www.pole-scs.orgSYSTEM@TIC in Ile-de-France, which specializes in ICT and encompasses complex systems and generic software, electronics and optoelectronics technologies. www.systematic-paris-region.orgImages et rseaux (Media and Networks) in Bretagne (Brittany) and Pays-de-la-Loire. This cluster specializes in communication networks and new digital image technologies. www.images-et-reseaux.com

Cap Digital in Ile-de-France, which specializes in the creation, distribution and multimedia exchange of digital content. www.capdigital.comTES (Secure Electronic Transactions) in Basse-Normandie, which focuses on secure data exchange, digital identity and financial transactions. www.pole-tes.comImaginove, in the Rhne-Alpes region, which aims to develop synergies between the different branches of the moving image sector (video games, cinema, audiovisual, animation and multimedia). www.imaginove.frAerospace Valley, in the Midi-Pyrenees & Aquitaine regions is the leading cluster in the field of aeronautics, space and embedded systems, with over 1,600 firms, 8,500 researchers and 1/3 of Frances workforce in aeronautics. Among its research programs, the cluster hosts a top-of-the-line research center in navigation, positioning and telecommunications http://www.aerospace-valley.com/

IT Clusters specifics

As a matter of fact - Opportunities for organic growth: To be close to your prospects or existing clients & to create more confidence towards themTo organise the administrative and visa procedures on your own

- Opportunities for inorganic growth: Availability of companies which are under chapter 11 or whose CMD is going for retirementReady made solution & access to technologies & skilled workforce

- Opportunities linked with the languageAccess to France & French speaking countries / clientsFront operations in France, back up office in Africa

- Opportunities in R&D:Partnership in the clusters R&D tax credit which cut down your expenditures by 40% the first year

- As a result, 50% of the Indian companies based in France are from IT -

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COMPETITIVE COSTS OF SETTING-UPSource: Competitive Alternatives: KPMGs Guide to International Business Location - KPMG 2010Index of total business costs(Overall results US=100.0) The cost of doing business in France is competitive(costs inclusive labour, facilities costs, transportation, utilities and taxes)

DISCOUNTED OFFICE SPACES AVAILABLE *

REGISTRATION PROCEDURES

Source: World Bank Group

2INDIA & FRANCE: STRONG STRATEGIC PARTNERS

Nuclear agreement in Oct 2008

Social security agreement ratified beginning 2011

Trade increase by more than 20% a year

Trade between India and France Global trade of 9 billion USD 700 set-up in India, 180 000 employees 100 set-up of Indian companies in France, 7 000 employees

2LATEST FUNDAMENTAL REFORMS OF ATTRACTIVENESS

LATEST FUNDAMENTAL REFORMS OF ATTRACTIVENESS In order to bolster the attractiveness of France, the French gouvernment under the governance of President Sarkozy, has implemented more than 50 reforms

1/ More flexibility in the labour market

2/ More welcoming incentives

3/ A better business mobility

21/ More flexibility in the labour market

Increase the working time

The working time is negotiated in each company.

Maximum of 48 hours a week (according to European rules).

Employers benefit from exemptions from tax and social security contributions for overtime hours

Employees have an increment of 25% of their salary for overtime hours

21/ More flexibility in the labour market

Period trial increased by 2 months

- Employers can increase the trial period for blue collars and employees to 4 months

Employers can increase the trial period for management staff to 8 months

Termination by mutual consent

Inspired by the USA and UK agreement, termination by mutual consent between the employee and the employer

France offers the best research tax credit in Europe:

This bonus provides a research tax credit rate of 40% the first year, 35% the second year, and 30% the third year & consecutive years

3. for foreign companies 2/ More welcoming incentives

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Example how to calculate the R&D tax credit2/ More welcoming incentives

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A new financial incentive to supportinvestment projects

What is it? a 0% interest rate loan Who can benefit? Companies < 5000 employees

investing 5 million euros & create / safeguard 25 jobs\

How much? The 0% interest rate loan will cover up to 40% of your investment

New2/ More welcoming incentives

2 new visa sectionsNEWMumbaiBangalorePondicherry3/ Business mobility

A welcoming business environment for foreign managers

General Manager

(CEO, CFO, in charge of the Fench subsidiary)

Employees

Intra Group Mobility

Temporary Residency Permitexpatriated salaried employee

3-year work & residence permitAssignment or expatriatedPermission granted to spouses to be employed in France

The Skills and Expertise permit

3-year work & residence permitRenewablePermission granted to spouses to be employed in France3/ Business mobility

10 years residence permit for exceptional economic contributions2Your investment must meet one of the following thresholds

A business plan which creates or saves 50 jobs, or

Investment of 10 million in tangible or intangible assets

NEW3/ Business mobility

A new Social security treaty between India and FranceNEWWhat is it?

Indian workers being assigned to France will be exempted from contributions to the retirement funds

What is your benefit?

25% reduction of the quarterly contribution to be paid

3/ Business mobility

Thanks for your attention & Bonne chance! Invest in France Agency

Embassy of France in India2/50E Shantipath, Chanakyapuri 110 021 New Delhi audrey.lucbernet@investinfrance.org Tel.: + 91 11 43 19 63 30 www.investinfrance.org

****IFA Germany 2006*IFA Germany 2006***Central of the 5 main european markets

**Central of the 5 main european markets

*Central of the 5 main european markets

IFA Germany 2006**Central of the 5 main european markets

**Central of the 5 main european markets

*Central of the 5 main european markets

*Central of the 5 main european markets

IFA Germany 2006***IFA Germany 2006*