Survey on the Attractiveness of France (2019) Main results January - PowerPoint PPT Presentation

Survey on the Attractiveness of France (2019) Main results January 14, 2020

Reminder of the methodology Sample Collection method Field dates OBJECTIVES Sounding board / invest: ◼ ◼ Online, except in the United Arab The fields took place on the following Emirates, where the fieldwork was dates: 573 foreign opinion leaders • Germany: October 31, 2019 – conducted by telephone. (senior executives) split as follows: November 8, 2019 101 in Germany • United Kingdom: October 25, 2019 – 100 in the United Kingdom November 7, 2019 100 in the United States • United States: October 25, 2019 – 100 in India November 7, 2019 100 in China • India: October 25, 2019 – November 7, 72 in the United Arab Emirates 2019 The weighting given to the United Arab Emirates • China: October 31, 2019 – November 8, was brought to 100, like other countries, in order to 2019 have the same weight when calculating the • United Arab Emirates: November 11, sounding board. 2019 – December 18, 2019 Mirror image: ◼ ◼ Field: October 24, 2019 to November 27, By telephone 189 senior executives of foreign businesses set up in 2019 France

Note for the reader Results are indicated in %, except where indicated otherwise. * : Low base: results to be interpreted with prudence ↗ ↘ : Significant positive/negative evolution since previous report In this report, when the sum of percentages is not equal to 100%, this can be explained: • Either when interviewees provide several answers (in which case, the sum of percentages is over 100). • Either when the figures are rounded. Rounded figures can also be explained as there can sometimes be a difference of +/-1 point between a sub-total and the sum of items that makes it up. To be noted for China and India: We have noticed a constant bias in our studies in these countries, for cultural reasons, with extremely positive answers to our surveys. Therefore we have decided, where possible, to propose scales in four terms, and to only retain for presentation the most positive term, so as to manage this bias and offer a more relevant comparison with other countries on the spectrum. 3

1 France’s attractiveness resisted, remaining at a high level 4

France’s attractiveness stabilized at a high level: 87% of senior executives based abroad considered France to be attractive, up 13 percentage points from 2016. Conversely, with executives of foreign businesses set up in France, after the strong increase seen in 2018, France’s attracti veness fell this year to its 2017 level. In all, would you say that France is an attractive destination for foreign investment? % No answer Not at all Completely Rather not Rather Change in % “attractive” 87 “Not attractive” sub -total “Attractive” sub -total 88 84 Sounding 74 board 87 13 3 10 44 43 Sounding board 2016 2017 2018 2019 * For India and China, % “Completely attractive” (cf. note for the reader) 73 66 77 58  56 53 42  39  12  58  Mirror image 1 3 46 45 44 39 Mirror image 2010 2011 2012 2013 2014 2016 2017 2018 2019 Q3 – Base: Sounding board – All (573) / Mirror image (189) 5

More than eight out of 10 foreign businesses set up in France drew a positive conclusion from their establishment. Would you say that the directors of your businesses draw a very positive, rather positive, rather negative or very negative conclusion of their investment in France? % No Very Negative sub-total: Positive sub-total: 85 82 answer 83 83 Very positive 82 negative 73 72 78 17% 82% 62 12 12 Rather negative 16 32 28 21 18 16 15 20 16 16 9 8 7 16 15 12 12 10 9 70 2010 2011 2012 2013 2014 2106 2017 2018 2019 Rather positive B5 – Base: Mirror image – All (189) 6

Germany remained the leading destination of foreign investment, followed by France, whose attractiveness continued to strengthen. France widened the gap with the United Kingdom (eight points difference in 2019, versus one point in 2018). These three countries continued to be well ahead of other countries. EUROPEAN COUNTRIES JUDGED TO BE THE MOST ATTRACTIVE % Germany Allemagne 44 France France 38 United Kingdom Royaume-Uni 30 Italy Italie 9 SW  Netherlands Pays-Bas 9 Spain Espagne 9 Ireland Irlande IR 8 PO UK NE GE CZ Sweden Suède 6 AU FR Pologne Poland 5 IT République Tchèque Czech Republic 5 SP Autriche Austria 5 Base: Sounding board – All (573) Q1: If we were to give you a European country in which it is interesting for foreign businesses to invest, which country would you think about first? ( Two responses possible) 7

2 Maintaining this strong attractiveness also concerns French industry 8

French industry also remained very attractive with senior executives abroad, who consider that the French ecosystem encourages industry. Do you believe that French industrial sectors are attractive? % No No, not at all No, not really Yes, quite so Yes, completely answer Sub- total “No” Sub- total “Yes” 4 15 43 39 19 81 Do you think that the French ecosystem encourages industry? 81 4 19 15 46 35 No Hardly Quite a Not at all Completely answer at all bit IN1 / F5 – Base: All – Sounding board (573) 9

Attractiveness which feeds off the quality of performance is recognized on all dimensions tested. Do you believe that French industries perform well on the following points? % Don’t know Not at all well Not very well Quite well Very well Sub-total not well Sub-total well 86 Automatization of production tools Automatisation de l'outil de production 14 2 13 50 36 Digitalization of industrial processes 53  Digitalisation des process industriels 15 1 13 33 85 Quality of employees Qualité des salariés 15 85 2 13 47 38 44  40  Upgrade in the quality of products offered 84 Montée en gamme des produits 2 13 15 44  40  Quality of management 84 Qualité du management 16 1 15 43  39  18 Promotion of French expertise Promotion des savoir-faire français 17 2 82 44  Partnerships with innovative startups Partenariats avec des start-ups innovantes 20 1 18 36 80 Base: IN2 – Base: All – Sounding board (573) 10

3 In a competitive environment, France seems to be taking advantage of the decline in attractiveness of the United Kingdom in terms of stability, buoyancy and business attractiveness… 11

While perceived economic stability in France declined a little (down four percentage points), perceptions of the legal and fiscal environment stabilized at a high level, in contrast with the increase in perceived instability in the British legal and fiscal environment. STABILITY % Completely agree Mostly agree Concerning Concerning the Concerning Germany United Kingdom France Sub-total Sub-total Sub-total “agree” “agree” “agree” Item not asked in the United Kingdom 38 48 86  0 0 Item not asked in Germany Economically stable Stable legal and fiscal 49  94  38  77  38 45 84 45 39 business environment Legal and fiscal business 42  47  39  79  34 45 79 89 40 environment easy to understand Base: Sounding board – All (573) Q6, Q7, Q8 Are you completely, rather, rather not or not at all in agreement with the following suggestions concerning France, Germany and the United Kingdom? 12

The same can be said for France’s buoyancy: the stabilization of perceptions was confirmed at a high level (but below Germany), while the United Kingdom recorded a net decline on looking towards its future and being innovative. BUOYANCY, VOLUNTARISM % Completely agree Mostly agree Concerning Concerning the Concerning United Kingdom Germany France Sub- total “agree” Sub- total “agree” Sub- total “agree” Looks to attract foreign investors Item not asked Item not asked 43  43  0 86 0 Looking to the future, 56  37  44  37  81  46  40  93 86 which is investing for its future Engaged in reforms 0 85 42 43 Item not asked Item not asked to modernize its economy 0 47  38  85  56  45  39  36 92 Innovative 83 Base: Sounding board – All (573) Q6, Q7, Q8 Are you completely, rather, rather not or not at all in agreement with the following suggestions concerning France, Germany and the United Kingdom? 13

France is now an equal match for the United Kingdom in terms of business attractiveness, even if it remained a little way back from Germany. BUSINESS % Completely agree Mostly agree Concerning Concerning Concerning the France Germany United Kingdom Sub- total “agree” Sub- total “agree” Sub- total “agree” Which encourages 43  82  35 48 83 45 44 90 39 entrepreneurship and startups 46  44  Which offers a good return on investment 90 32 49 81 40 43 82 Where it’s easy to do business 44  90  46 37 43 80 40 40 80 Where you must invest 0 38  42  Item not asked Item not asked 79 0 Base: Sounding board – All (573) Q6, Q7, Q8 Are you completely, rather, rather not or not at all in agreement with the following suggestions concerning France, Germany and the United Kingdom? 14