Fred Morley, Greater Halifax Partnership presentation

HA L IFA X: C UR R E NT C ONDIT IONS A ND E C ONOMIC P R OS P E C T S

Fred Morley EVP and Chief Economist November 2012

T HE G R E AT E R HA L IFA X PA R T NE R S HIP

Partnership

Smart-Business

Marketing

Competitive Intelligence &

Strategic Advice

Investment Attraction

Investor Relations Community

Economic Development

Connector

Halifax Gateway

Economic Strategy

HOW MUC H DO Y OU K NOW A B OUT HA L IFA X?

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1. 600 Sq km 2. 3100 Sq km 3. 5600 Sq km 4. 9200 Sq km

Question 1:

How Big is Halifax?

3. 5600 Sq km, about the same size as

PEI…

Answer 1:

Halifax Regional Municipality Prince Edward Island

How Many Universities are there in Halifax?

Question 3:

1. Two 2. Three 3. Five 4. Six

Answer 3: 4. There are Six:

1. Dalhousie University, 2. Saint Mary’s University, 3. Mount St Vincent University, 4. Nova Scotia Centre for Arts and Design, 5. Kings College, and 6. Atlantic School of Theology

Which Canadian Banks got their start here in Halifax?

Question 4:

1. CIBC 2. Royal Bank 3. Bank of Nova Scotia/Scotiabank 4. Bank of Montreal 5. TD Bank 6. National Bank

Answer 4:

1. CIBC 2. Royal Bank 3. Bank of Nova Scotia/Scotiabank

Question 5:

Halifax is the North American Centre for what? 1. Centre for the study of migratory marine mammals 2. Buddhism 3. Agriculture Biodiversity 4. Early Nordic Cultural History

Answer 5:

2. Buddhism: for over a quarter of a century

Sakyong Mipham Rinpoche, the International spiritual leader of the Shambhala Buddhist movement , during his wedding in Halifax 2006.

Who was Robert Ross? Question 6:

HA L IFA X – T HE B A S IC S

• Halifax is Atlantic Canada’s largest city, home to 390,328 people

• 67% of the working age population have post-secondary education

• Nova Scotia has the most diversified and stable economy in the Atlantic region.

• Halifax produces 55% of Nova Scotia’s GDP – 19% of Atlantic Canada’s Total GDP

• Halifax produces 50% of Nova Scotia’s Retail Sales

P OP UL AT ION G R OWT H

Census Metropolitan Area

2006 Population 2011 Population

Actual Growth

% Growth

St. John’s 181,113 196,966 15,853 8.8%

Regina 194,971 210,566 15,595 8.0%

Quebec 719,153 765,706 46,553 6.5%

Halifax 372,858 390,328 17,470 4.7%

Victoria 330,088 344,615 14,527 4.4%

London 457,720 474,786 17,066 3.7%

HA L IFA X IS AT L A NT IC C A NA DA’S HUB F OR :

• Transportation and Logistics • Information Technology • Finance & Insurance • Business Services • Education • Healthcare • R&D • Media • Retail • Tourism

HA L IFA X A S S E T S

• Finance and Insurance – Over 50% of all the fund management and related activities

companies • Specialized legal services. • Specialized business services. • Information technology services.

– 43% of the firms across the Maritime Provinces involved in computer systems design and related services are located in Halifax.

• Cultural and entertainment activity • Specialized health care.

– Halifax is home to 46% of the Maritime Provinces' specialist physicians

• Industry Associations and Non-Governmental Organizations • R&D assets

WHAT T HE PA R T NE R S HIP OF F E R S

Prov Highway

Housing

Fed Tax

Port

Schools Fed Reg.

Shipping

Phone/ Cell

Airport

NSCC & Uni

Econ Dev.

HRM Reg.

HRM Tax

NS Tax

Internet

NS Reg.

WF Avail

WF Quality

Poor

er P

erfo

rman

ce

Be

tter

Per

form

ance

Less Important More Important

10 YEAR ECONOMIC OVERVIEW

Indicator 2001 2011 Trend

Population 359,000 390,328

Employment 189,400 224,000

Unemployment Rate 7.0% 6.1%

Inflation Rate 2.0% 3.5%

Housing Starts 1,404 2,954

Retail Sales ($ Millions) 4,268 6,481*

University Enrolment 30,233* 30,792 Sources: Statistics Canada, Conference Board of Canada,CMHC, MPHEC *Extrapolated from existing data.

HALIFAX SNAPSHOT

INDICATORS 2011 2012 Labour Force Size - August 239,400 240,300 Unemployment Rate - August 6.3% 6.5% Labour Force Participation Rate - August 70.6% 69.9%

Inflation Rate - August 3.5% 1.3% Housing Starts - August 232 446 Value of Building Permits - July ($ millions) 90.2 87.4

Retail Sales - July($ millions, Seasonally Adjusted) 554.2 545.8

Investment - Non-Residential Construction - Q2 '11/'12 ($mils)

90.3 103.6

R E C R E AT ION

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A R T S A ND C ULT UR E

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A R T S A ND C ULT UR E

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E C ONOMIC F OR E C A S T – C ONF E R E NC E B OA R D

G OL DE N G OOS E

Irving National Shipbuilding Project $25b

Emera Maritime Power transmission Line $1.2b Shell Offshore Exploration Project $1b

Potash Corp. Mine $1.7b

Point Lepreau Nuclear Facility Refurbishment $1.4B

Atlantic Canada Mega-projects Total $60.8b Here Are A Few Examples:

AT L A NT IC C A NA DA ME G A -P R OJ E C T S

White Rose Oil Fields Expansion $3.5b

Long Harbour Plant $2.8b

Hibernia South$1.7b Hebron Oil Fiild$8.3b

MA J OR P R OJ E C T S : S HIP S

T HE B R OA D E C ONOMIC IMPA C T S F OR NOVA S C OT IA , 2012-30

*Direct, indirect and induced in Nova Scotia. **All dollar values except real GDP are shown in current (non-inflation adjusted) dollars. Real GDP is shown in basic prices 2002 dollars). Source: Conference Board of Canada (May 2011) *** No contract scenario covers 2018-30 period where shock occurs at Halifax Shipyard after current contracts end.

Summary Economic Impact in Nova Scotia by NSPS Project Dollar values shown in $Millions

Annual Average Combat Scenario

Non-Combat Scenario

No Contract Scenario***

Employment* 8,453 3,744 -1,169

Real GDP (basic prices) $661 $278 -$171

Federal Income Taxes $66 $25 -$17.1

Provincial Income Taxes $51 $19 -$13

Corporate Income Taxes $34 $13 -$9.6

Indirect Taxes $115 $44 -$27.3

Personal Income $447 $183 -$118

Partners, Partners, Partners • Began with 5 core partners that grew to over 75 • Over 100,000 emails sent from partner databases • Over 100 locations with Ships Start Here materials • Mass deliveries of Ships Start Here tools & materials

CanadianShipsStartHere.ca • 10,571 declarations of support • 4,700 email addresses collected • 33,749 pageviews since launch on June 27, 2011

S T R ONG S UP P OR T AT HOME

IN HA L IFA X

NE IG HB OUR HOODS

Social Movement: FACEBOOK • Over 6,000 active “likes” at peak

• 100s of lawn-sign photos submitted from across Nova Scotia and beyond

• Over 700,000 post views from over 2,200 interactions

A OP S S TAT US

Major Milestone *AOPS DND Published Date NSPS Selection of Shipyards October 2011 ✔

Signing of Umbrella Agreement February 2012 ✔

Signing of AOPS Ancillary Contract (initial planning) June 27, 2012 ✔

Signing of AOPS Design Contract 2013

Finalize Engineering & Planning 2015

Signing of AOPS Build Contract 2015

Cut Steel on First AOPS 2015 Delivery of First AOPS 2018 AOPS Program Complete 2024

* Dates published by DND as of May 9, 2012

L OWE R C HUR C HIL L P R OJ E C T

B US INE S S E S A R E MODE R AT E LY OP T IMIS T IC

0%

10%

20%

30%

40%

50%

60%

70%

80%

Extremely optimistic Moderately optimistic

Not very optimistic Not at all optimistic Don't know/no answer

Optimism rating of current economic prospects for HRM businesses

Source: GHP Business Confidence Survey

Autumn 2011 Spring 2012 Autumn 2012

5 Y E A R S F R OM NOW

0%

10%

20%

30%

40%

50%

60%

70%

80%

Extremely optimistic Moderately optimistic

Not very optimistic Not at all optimistic Don't know/no answer

Optimism rating of future economic prospects (5 years) for HRM businesses

Source: GHP Business Confidence Survey

Autumn 2011 Spring 2012 Autumn 2012

R E S IDE NT IA L A ND NON-R E S IDE NT IA L B UIL DING P E R MIT S

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Residential and non-residential building permits, Halifax Source: Statistics Canada

Residential Non-Residential

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S UC C E S S : WE ’L L K NOW IT WHE N WE G E T IT

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G OOG L E F UT UR E V IE W

G OOG L E S T R E E T V IE W +

For more information on the Halifax advantage, visit: http://www.whyhalifax.com