Source: NL Agency

The Netherlands:The Digital Gateway to Europe

IOF Dining Club 14 June 2012 GUOMAN Tower Hotel London

‘Connectivity & Security in a Big Data World’

Organised by: Arena InternationalIn association with: Netherlands Foreign Investment Agency

IOF Dining Club 14 June 2012

Introduction: Netherlands Foreign Investment Agency (NFIA) NFIA UK & Ireland: support from A to Z The Netherlands: facts & figures Why the Netherlands: location factors for datacentres

1. The Dutch business environment2. ICT market overview3. Connectivity4. Cyber security5. Energy supply 6. Talent - IT workforce7. Tax - Fiscal climate

NFIA Worldwide

The Hague London Istanbul New York Boston

Tokyo Osaka Seoul Taipei Shanghai Beijing Guangzhou Hong Kong Singapore Kuala Lumpur New Delhi Sao Paolo

Atlanta Chicago San Francisco Dubai Tel Aviv

NFIA services

Netherlands Foreign Investment AgencySupport from A to Z

1. in-person meetings and provide up-to-date, personalized information

2. personal guidance regarding site selection in a customized fact-finding trip

3. contacts with relevant business partners, government authorities, a variety of Dutch networks and service suppliers

4. advocacy towards national and EU governments

The Netherlands

Area: 16,000 sq miles

Population: 16.7 million

Currency: Euro (€)

Capital: Amsterdam

Three major international airports are within a 125 mile radius - Amsterdam Schiphol Airport, Brussels Airport and Airport Dusseldorf International

Locations factors

The Dutch business environment

Source: NL Agency

Main drivers for investment decisions:

1. The Dutch business environment2. ICT market overview3. Connectivity4. Cyber security5. Energy supply 6. Talent - IT workforce7. Tax - Fiscal climate

The Dutch business environment

#3 Human Development Report of best countries in which to live in

#4 United Nations World Happiness Report

#11 IMD's World Competitiveness Rankings 2012 (from #14)

#2 Bloomberg: best countries to business in

#6 WEF The Global Information Technology Report 2012

#1 Akamai's ranking of countries with fastest internet connections 2011

ICT Market Overview

ICT industry main driver for Dutch economic growth

Worth €55 billion and will grow with approximately 2.6% each year till 2015

70% of innovation in the Netherlands is ICT related

60% of all Forbes 2000 companies active in ICT have already established an office in the Amsterdam Area, including world players such as Microsoft, Google, Cisco, Tata, IBM, Oracle, Capgemini, Zarafa, Infosys

Cloud industry 15% of Dutch Industry (2012), increase to 19% in 2013

The Netherlands: one of the most advanced ICT markets in the world

The Dutch Digital Environment

Second highest bandwidth speed High number of internet users Broadband internet subscribers Domain name registrations ‘Openness’ of ICT Creative industry Chips ‘Light touch’ telecoms policy Broadband deployment Social Media

Key areas that make up the Dutch Digital Environment

Datacenter market overview

“Numerous big-name international businesses have operations in Amsterdam itself or in the vicinity of the capital.” (2011)

Increasing demand for data center services 33% of the European data centers Large quantity of empty buildings More than 6,300 foreign companies

with almost 9000 operations

Connectivity

Source: NL Agency

“One of the most network-rich countries in the world, the Netherlands has direct access to several submarine communication cable systems delivering low-latency links to other European nations, North America and beyond.”(2012)

Connectivity

Source: Akamai Technologies, 2012

Average Measured Connection Speed Europe

Rank Country Average Mbps (Q3, 2011)1 The

Netherlands8.5

2 Switzerland 7.53 Czech Republic 7.34 Ireland 7.05 Romania 6.66 Denmark 6.37 Norway 6.28 Belgium 6.29 Hungary 5.910 Finland 5.711 Slovakia 5.512 Austria 5.413 Sweden 5.314 Germany 5.315 Portugal 5.116 United Kingdom 5.117 Poland 4.318 Spain 4.019 Italy 4.020 France 3.821 Turkey 2.9

“The presence of AMS-IX, the largest Internet exchange in

Europe, makes Amsterdam an important hub for the networks

serving the continent. We are known as the gateway of

Europe.” (2012)

Regional Datacenter opportunities in the Netherlands

Connectivity

Latency between regional locations and Amsterdam Internet Exchange

The advantages of being in another area other than Amsterdam:

• Lower cost in general (including personnel costs)

• More building space (cheaper to build)• The same connectivity capabilities as

Amsterdam• Relatively low latency as the distances

are minimal

Latency overview to other European countries

Connectivity

Based on the distance traveled, a 4.9 microsecond latency per kilometer (0.62 mile)

Cyber security

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10.00Cyber security is being adequately addressed by corporations

Executive Opinion Survey:10 = strongly agree0 = strongly disagree

Source: IMD Competitiveness Yearbook, 2009

Security awareness in Europe

Energy Supply

Source: Energizing the Future

"The choice was essentially between London and Amsterdam, but London is pretty full and... there is no power; in Amsterdam there is plenty of power. We found it is much more economically beneficial to build in Amsterdam.” (2012)

Energy Supply

National 5 major electricity generating companies ‘Transmission System Operator’ is ‘TenneT,

fully owned by the central government

Regional 30 regional and local energy distribution

companies Regional network operations Distribution

System Operators (such as Liander, Stedinand Enexis) connect customers to the grid and provide the transport of electricity

The Netherlands has one of the most reliable and stable energy grids of Europe

“The average availability of the energy grid over

the last five years accounted to 99,9943%”

(2011)

KyotoCooling Datacenter Infra Solutions Optimair Menerga Air@workWKO

Sustainability

Examples of cooling systems and techniques available in the Netherlands

“At EvoSwitch, we are carbon neutral – not because we have to be but because it pays to be in the Netherlands.” (2012)

“Hitachi’s most energy efficient data center is in The Netherlands. This site is a showcase of technologies for energy efficient data centers throughout Europe, made possible in the Dutch technology environment”(2010)

The Netherlands has one of the lowest energy price in the European Union (Per 100kWh)

Energy Cost

Source: Eurostat, November 2011

€

IT Workforce

Source: ASML Netherlands B.V.

One of the highest productivity rates in the world

IT Workforce

Source: The Conference Board and Groningen Growth and Development Centre, 2012 (GDP per hour in US dollars 2011)

English language proficiency in Europe

Score Country Level

69.09 Norway Very High Proficiency

67.93 The Netherlands Very High Proficiency

66.58 Denmark Very High Proficiency

66.26 Sweden Very High Proficiency

61.25 Finland Very High Proficiency

58.58 Austria High Proficiency

57.23 Belgium High Proficiency

56.64 Germany High Proficiency

54.62 Poland Moderate Proficiency

54.6 Switzerland Moderate Proficiency

53.16 Portugal Moderate Proficiency

53.16 France Moderate Proficiency

49.05 Italy Low Proficiency

49.01 Spain Low Proficiency

IT Workforce

Multilingual and highly educated workforce

Source: EF EPI Ranking, 2011

“The Netherlands offers a number of clear advantages, including a high level of education and in-depth technical knowledge, linguistic aptitude and the multinational trade spirit of the Dutch.” (2011)

Source: Hans Kouwenhoven

Fiscal climate

Source: OECD, 2011

Corporate tax rates in Europe Rank Country Tax rate 20121 Ireland 12.50%2 The Netherlands 20.00% - 25.00%3 Finland 24.50%4 Austria 25.00%5 Denmark 25.00%6 United Kingdom 26.00%7 Sweden 26.30%8 Italy 27.50%9 Norway 28.00%10 Spain 30.00%11 Germany 22.825% - 33.325%12 Belgium 33.00%13 France 33.33%

Advance Tax Ruling (ATR)/ Advance Pricing Agreement (APA)

Extensive tax treaty network

R&D fiscal policy:- WBSO- Innovation Box- RDA

EIA

30% ruling

“The ‘30 percent ruling’ is a powerful recruiting tool that allows the company to pay less for global talent.“(2010)

“The Netherlands is well organized business-wise, especially regarding taxes.” (2008)

Questions?

Thank you!Dank voor uw aandacht!

Desiree Poldermansdesiree@nfia.co.uk, +44 (0)79 7085 4563

NFIA UK & Ireland - Embassy of the Kingdom of the Netherlands

www.nfia.co.ukwww.nfia.co.uk