Annual Business Review 2019Build scale, expand reach

Record levels of Exports in 2019Export growth of 8%

Exports (€bn)

€12.90bn€13.93bn

€15.20bn€16.22bn

€17.15bn€18.63bn

€20.59bn€21.60bn

€22.71bn€23.80bn

€25.60bn €26.00bn

€10

€12

€14

€16

€18

€20

€22

€24

€26

€28

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2020 Target

€26bn

8%

Exports have increased by

€12.7bnBetween 2009 and 2019

2019 Exports

€25.6bn

Client Exports by Sector

€2.41bnDigital Technologies

+11%

€0.72bnElectronics

€2.24bnConstruction

+18%

€1.75bnEngineering

€12.17bnFood

+3%

+11% €0.95bnConsumer Retail

+9%

+12%

+19%

Export growth of non-food sectors of 14%

54% 55% 54% 53% 55% 55% 51% 49% 51% 49% 48%

46% 45% 46% 47% 45% 45% 49% 51% 49% 51% 52%

12.9bn 13.9bn 15.2bn 16.2bn 17.1bn 18.6bn 20.6bn 21.6bn 22.7bn 23.8bn 25.6bn

0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Food/Non Food as % total exports

Food Exports Non Food Exports Total

52%of total exports

Non food Exports

€13.42bn

North America

€4.72bn18% of exports

UK

€7.9bn31% of exports

M. East/Africa/India

€1.4bn5% of exports

Asia Pacific

€2.14bn8% of exportsLatin America

€0.23bn1% of exports

Unspecified & Sales to Ornua(Formerly the Irish Dairy Board)

€1.75bn7% of exports

TOTAL

€25.6bn

+16% +2%

+23%

+12%

+6%

+8%

Client Exports 2019 by Territory

Northern Europe

€1.13bn4% of exports

Central/Eastern/CIS/Russia

€0.65bn3% of exports

Eurozone

€5.65bn22% of exports

+19%

-5%

+15%

€5.5bn €5.6bn €5.5bn

€6.2bn €6.2bn

€6.8bn

€7.5bn €7.6bn €7.6bn €7.7bn€7.9bn

€

€1

€2

€3

€4

€5

€6

€7

€8

€9

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Ex

po

rts

(€b

n)

UK Export Trends

UK continues to be number 1 export market+2% growth

Non-food exports

grew by 6%.

+2%

UK Exports represented 31% of exports in 2019

7

42% 40% 36% 38% 36% 37% 37% 35% 34% 33% 31%

58% 60% 64% 62% 64% 63% 63% 65% 66% 67% 69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

UK as % of Total Exports

UK as % of Export Sales Other Territories

2020 target of 33% Export Diversification achieved

€2.6bn€2.9bn

€3.3bn €3.2bn

€3.6bn

€3.9bn€4.1bn €4.2bn

€4.6bn€4.8bn

€5.6bn

€

€1

€2

€3

€4

€5

€6

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Exports to the Eurozone + 15%

8

Exp

ort

s €

bn

Eurozone

continues to be

the No 2 export

market by value.

€2.6bn

€5.6bn

non-food exports

€2.6bn

25%

+2%+15%

Since 2009, exports have grown by

€3bn

3 X €1bn markets in the Eurozone

3%France

€1bn

16%Germany

€1.3bn

35%Netherlands

€1.4bn

21%

42%

89%

Digital Technologies

€418m

Electronics

€202m

Construction

€682m

USA & Canada +16% increase to €4.7bn

10

• Since 2009, exports have grown by €3.4bn.• Non Food export grew by 22% to €3.6bn in exports in 2019.

€1.3bn €1.5bn€1.7bn €1.8bn

€2.bn€2.3bn

€2.9bn

€3.7bn€4.bn €4.1bn

€4.7bn

€

€1

€2

€3

€4

€5

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

USA & Canada Export Trends

+16%

€b

n

Asia Pacific + 6% growth to €2.1bn

11

• Since 2009, exports grew by almost €1.4bn• Non food exports grew by 7%

€.7bn€.8bn

€.9bn €.9bn

€1.1bn

€1.4bn€1.6bn

€1.8bn€1.9bn

€2bn€2.1bn

€

€1

€1

€2

€2

€3

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Asia/Pacific Export Trends

+6%

€b

n

new overseas

contracts

new overseas

presences

Ministerial-led

trade events

international buyer visits to

Ireland facilitated by

Enterprise Ireland.

Munich, Lyon, Manchester,

Copenhagen, Montreal,

Seattle, Melbourne and Ho

Chi Minh City

Growth Overseas

1,636 402 56

1,283

8 New offices

€23.8bn€25bn

€26.4bn

€27.8bn

€29.3bn

€27bn

€15

€18

€21

€24

€27

€30

2015 2016 2017 2018 2019 2020 Target

€,b

nWhy is this export growth so important?

Exports€25.6bn€

Jobs221,895

Expenditure in Irish economy

€29.3bn

Expenditure in Irish Economy 2020 Target €27bn

2020 Challenges

Covid-19 Recovery

Brexit Readiness

1

2

Covid 19 –Challenges

directly affected by the global crisis

➔ 75% report impact to their sales exports for 2020

➔ 58% report a negative impact on staffing and employee levels

➔ 51% report a reduction in cash flow

1,900 clients

1,000 clients negatively impacted

Covid-19 Actions

Stabilise

Protect your business, maintain operations and continuity.

Reset

Adapt your business plans and operations to new conditions.

Recover

Restart innovation and capitalise on early demand as recovery develops.

Actions

➔One-to-one contact with clients

➔ Liquidity schemes and advisory supports.

➔Getting clients ready for recovery.

➔ through funding, innovation and diversification supports.

Positive EU changes for start-ups and small companies

EU has amended State aid rules which will allow start-ups

and small companies access liquidity.

Covid-19 Business Response Hub

• 5,050 engagements with enterprises

across Ireland

Brexit – Addressing Challenges

CHALLENGES:

➔Currency Fluctuations

➔UK Global Tariff (1st Jan 2021) if trade

deal between UK and EU not reached

➔Potential risk of no transition period +

WTO tariffs.

ADDRESSING CHALLENGES:

➔ 643 Brexit Exposed Companies

➔ €125m funding to Brexit exposed clients in 2018 and 2019

➔ €40m funding to 551 Brexit exposed clients in first 6 months of 2020

➔Main Sectors – Food, Engineering, Construction & Timber

➔Exports grew by 6% in 2019 (8% rest of client base)

2020 Outlook

➔Strong and resilient exporting base of clients

➔Positive export results to build on

➔Supporting companies to reset and recover from Covid19

➔Brexit Readiness

➔Message for businesses – put in funding plans now

– focus on customers and markets

Annual Business Review 2019Build scale, expand reach