Investment opportunities in Home furniture and interior design in Tuscany

1. Investment opportunities in Home furniture and interior design in Tuscany

2. INDEX

3. WHY INVEST IN HOME FURNITURE INDUSTRY IN TUSCANY High level of specialization in home furnishings industry Presence of specialized territorial clusters Differentiation of production towards the entire range of market segments Links with other cluster of industries localized in Tuscany (marble and stones, ships, motor caravan, …) and intersectoral cross-fertilization Openness to foreign markets Co-presence of big international players and SMEs Excellent localization, accessibility and infrastructure availability Skilled workforce and innovative environment Policy support

4. International context: rising demand for home furnishings products World trade of furniture 2003-2014. Current US$ billion World demand for home furnishings product is growing. After the crisis in 2009, World trade of furniture recovered, reaching in 2001 the pre-crisis levels. Source: CSIL, World furniture Outlook 2014 Main importing countries are the United States, Germany, France, the United Kingdom and Canada. After the decline of years 2008-2009, they showed a reprise in imports, recovering and achieving again the pre-crisis levels. Top exporters are China, Italy, Germany and Poland. Top furniture importing countries Imports, 2003-2013. Current US$ billion Top furniture exporting countries Exports, 2004-2013. Current US$ billion Source: CSIL, World furniture Outlook 2014 Source: CSIL, World furniture Outlook 2014

5. Furniture industry in Italy – Facts & Figures Territorial specialization in furniture Home furnishings is one of the most relevant sectors for the Made in Italy industry. It employs around 150 000 workers. Italy has a share of 6% of global World trade in furniture. The industry is geographically concentrated: Central and North Eastern regions are the most specialized areas, including Tuscany. Source: Italian Statistical Bureau

6. Furniture industry in Tuscany • Home furniture and related industry accounts for 7200 firms and 25600 workers • Main sectors are: • Wood products (excluding furniture):2 800 firms, 9 200 workers • Furnitures: 10 700 firms, 2 000 workers • Ceramics: 360 firms, 1700 workers • Electric and electronic home devices: 13 firms, 730workers • Design: 800 firms, 1400 workers • Main characteristics: • Small average firm size. Interdependence between big players and SMEs • Territorial specialization in cluster and h ighterritorial attachment • High propensity to exports

7. Characteristics of furniture and related industry in Tuscany: exports Furniture industry exports from Tuscany showed a huge development in the last decade, till the crisis that started in 2008. In following years exports recovered, but still the did not reach the 2007 levels. Given the growing pressure from competitors, especially from low cost Countries, Tuscan firms raised attention to design and material (for instance, on environmentally friendly wood) Source: Italian Statistical Bureau Main markets are still represented by Europe (Especially France and Germany) and USA. Exports to Russia grew sensibly. Currently Russia is the 5° market Source: Italian Statistical Bureau

8. Home furnishings industry clusters in Tuscany Localization of firms in furniture and related industries in Tuscany • Furniture industry is agglomerated across regional territory. • In some areas, industrial cluster developed. • Main advantages of agglomeration in industrial clusters include: • Presence of interdependent and integrates firms, specialized in distinct phases of production process; • Availability of skilled workforce; • Easy accessibility to suppliers; • Infrastructure and logistics; • Technological spillovers • In some areas, furniture cluster overlaid with other industrial agglomerations, such as the marble district in Massa-Carrara, the motorcaravan district in Poggibonsi, the shipping district in Viareggio, thus stimulating cross-fertilization and mutual development of industries. Pistoia cluster Florence Massa-Carrara and Viareggio Province of Pisa cluster Arezzo Poggibonsi-Sinalunga industrial district Firms with more than 10 workers. Size of the circles indicate the size of the firm. Source: Italian Statistical Bureau

9. 23 Human capital and research Tuscany offers a wide network of institutions offering education and/or research applied to home furnishings industry GENOVA - FRANCE MILANO U Universities & Research • University of Florence • Bachelor in industrial design • Master in interior design, Master in Applied sciences for made in Italy industries • Lab of ergonomics • University of Siena • Bachelor and Master in electronic engineering, • University of Pisa • High Schools and professional training • 5 high schools offer courses in design applied to home furnishings industries, with around 250 students enrolled toaccess and distributefor major EuropeanMarkets S S S U S Per ogniaffermazionediamocifredievidenza (+ 1 slide)d U S U I Major R&D centers and Universities in Tuscany • Livorno harbor • Carrara harbor • Piombino harbor ROMA • A1 Highway Milan/Florence/Rome/Naples • A12 Highway to Genoa and France • Florence International Airport • Pisa International Airport

10. Innovation poles Innovation poles represent hubs of knowledge, aimed to promote technological transfer, support to firms birth and growth. They link the world of business with public and research institutions. CENTO – Polo di competenza per il sistema interni CENTO is the innovation pole for home furniture and design industry. It hosts strategic projects, innovation projects and services to firms. It also manages business incubator activities and research and development . It is promoted by Tuscany Regional Administration, and it is managed by several bodies representing firms and institutions. Research is carried out in partnership with Tuscan Universities www.polocento.it I

11. Investment opportunities Policy support Tuscany Region provides support in localization investment. Regional Incentives Regional Administration granted 15 Euro billions over the last 5 years to firms for research and innovation activities in furniture industry. Incentives are mainly financed by EU Structural Funds resources. Main support have been given to research in ICT, research in new materials and nanotechnologies A comprehensive guide for investors aiming to start business in Tuscany is available at www.investintuscany.com

12. The Promoter Under the President of Regione Toscana, the government of the Region, an investment promotion program was undertaken to facilitate investments from foreign companies in the field of Cultural Heritage Along with Toscana Promozione, we support foreign companies willing to locate in Tuscany Our service is free of charge and strictly confidential Our experts can help you do business in Tuscany by: • Providing investment opportunities • Scouting and groundwork for potential investors • Establishing leads • Assisting investors: assessment, contacts, negotiation and after-care services Services for investors • We provide information services for investors wishing to locate their business in our region on issues ranging from incentives and market information to location opportunities • The service is free of charge and confidential • Take advantage of our network. It is at your disposal to give you detailed information, including: • Availability of location opportunities • Macro - economic and sector data • Start-up information • Bureaucratic procedures • European, national and regional incentives and grants

13. ContactDetails: INVEST IN TUSCANY Region of TuscanyDirectorate General for PresidencyRegional policies for attracting inward investments Piazza Duomo, 1050123 Florence, Italy Tel: + 39.055. 438 2425 / 5033 / 4896Fax: + 39 055 4384135Email: info@investintuscany.com www.investintuscany.com