1 FS – OCTOBER 08 COMCEC MINISTERIAL EXCHANGE OF VIEWS ON IMPROVING INVESTMENT CLIMATE ISTANBUL OCTOBER 23, 2008 Francis SERMET Strategic Advisor to Republic of Turkey Prime Ministry Investment Support and Promotion Agency

2 FS – OCTOBER MNC (Multinational Corporations) WITH MORE THAN SUBSIDIARIES AND BRANCHES REPRESENTING 66% OF INVESTMENTS AND INTERNATIONAL TRADE OF GOODS AND SERVICES TURN OVER 33% OF GDP CONTROLING THE WORLD ECONOMY TRANSNATIONAL INVESTMENT

3 FS – OCTOBER 08 NEW MANUFACTURING PLAN HEADQUARTERS INFRASTRUCTURE DIFFERENT FACTORS CAN IMPROVE INVESTMENT CLIMATE DIFFERENT TYPES OF FDI

4 FS – OCTOBER 08 ACCESS TO CUSTOMERS STABLE SOCIAL AND POLITICAL ENVIRONMENT EASE OF DOING BUSINESS RELIABILITY AND QUALITY OF INFRASTRUCTURES AND UTILITIES ABILITY TO HIRE TECHNICAL PROFESSIONALS ABILITY TO HIRE MANAGEMENT LEVEL OF CORRUPTION COST OF LABOR CRIME AND SAFETY ABILITY TO HIRE SKILLED LABOURERS NATIONAL TAXES COST OF UTILITIES ROADS ACCESS TO RAW MATERIALS AVAILABILITY AND QUALITY OF UNIVERSITY AND TECHNICAL TRAINING LAND WITH SERVICES LOCAL TAXES ACCESS TO SUPPLIERS LABOR RELATIONS AND UNIONIZATION AIR SERVICE IMAGE OF THE COUNTRY, ETC. 21 MOST IMPORTANT FACTORS FOR SITE SELECTION FDI

5 FS – OCTOBER 08 TAX ADVANTAGES QUALIFIED MANAGERS QUALITY OF LIFE CENTRAL LOCATION SUPPORT FROM LOCAL AUTHORITIES PERSONAL PREFERENCE OF CEO INTERNATIONAL MANAGERS INTERNATIONAL SCHOOLS LANGUAGE SKILLS WORK ENVIRONMENT AND LABOUR RELATIONS ATTRACTIVENESS OF COMPETENCES PURCHASING POWER EDUCATION LEVEL INDIVIDUAL TAXES IMAGE OF THE COUNTRY AVAILABLE WORKFORCE PROXIMITY TO PRODUCTION PLAN. ETC. 17 MOST IMPORTANT CRITERIA TO CHOOSE A LOCATION FOR HQ

6 FS – OCTOBER 08 PERSONAL CONTACTS SYSTEMATIC APPROACH MULTIPLIERS MEDIA SEMINARS OFFICIAL VISITS INTERNET OTHERS BEST PRODUCT NEEDS BEST COMMUNICATION

7 FS – OCTOBER 08 NETWORK OF REPRESENTATIVES ONE STOP SHOP MANAGE BY KEY PERSON REPORTING TO MAIN DECISION LEVEL COMPETITIVE WORLD

8 FS – OCTOBER 08 OUR HOST COUNTRY: TURKEY WITH PRESIDENT ALPASLAN KORKMAZ REPORTING TO HE THE PM BEST PRODUCT / BEST TEAM BEST PRACTICE

9 FS – OCTOBER 08 ROI ON LONG TERM - JOBS - TAXES INDIRECT EFFECTS - REAL ESTATE - HOTEL, RESTAURANT, SCHOOL - SUB CONTRACTING - ENTREPRENEURIAL SPIRIT - KOW-HOW - ETC.

10 FS – OCTOBER 08 IN 3 YEARS: SWITZERLAND55% UK16% NL 7% SWITZERLAND A SUCCESS STORY HQ

11 FS – OCTOBER 08 HOLDING, HQ, PRINCIPAL, R&D 150 PEOPLE FIRST CONTACT BY REP IN 1998 DECISION IN IMAGE - SWISS MADE - LONG TERM - GLOBALIZATION - TAXES - HELP BY GOVERNMENT  COST NO PROBLEM SUNSTAR

12 FS – OCTOBER 08 MANUFACTURING: 1000 PEOPLE CONTACT BY REP - ALREADY IN SWITZERLAND - QUALIFIED MANPOWER / WATCH INDUSTRY - IMAGE ‘SWISS MADE’ - TAXES - INCENTIVES - HELP BY GOVERNMENT  COST NO PROBLEM J&J / MEDICAL FIELD

13 FS – OCTOBER 08 PRODUCT COMMUNICATION IMPLEMENTATION SUCCESS

14 FS – OCTOBER 08 THANK YOU FOR YOUR ATTENTION