3. At a Crossroads Area : 780.580 km 2 Population: 76.805.524 (CIA, July 2009)

4. In the Past

5. Tomorrow

6. In the Future

8. …70% of the worlds total energy consumption …An Energy Gateway …50% of the worlds total energy production

9. …An Energy Gateway Proximity to 72% of the worlds proven gas & oil reserves. 7% of global oil supply transits through Turkey Ceyhan: one of the worlds most important energy market & terminal centers Turkey is expected to become Europes 4 th main energy artery. Turkey harbours a 120 bn. USD potential market for energy-related investments until 2020.

11. Demographics Turkey has a population of over 70 million with an average age of 28,5. 65% of inhabitants are below 34 years old. Turkey has a population of over 70 million with an average age of 28,5. 65% of inhabitants are below 34 years old. Source : TUIK

12. Skilled Labor Force Turkeys total workforce : 24,110,000 Total employed in manufacturing: 2,600,000 people Source: Investment Support and Promotion Agency, 2012

13. A Global Player Customs Union with the European Union Customs Union with the European Union Founding Member of the Economic Cooperation Organization Member of the Organization of Islamic Conference Member of the WTO Member of the WTO Free Trade Agreements Founding Member of the Black Sea Economic Cooperation Org. Founding Member of the UN Founding Member of the UN Member of NATO Member of NATO Founding Member of the European Council Founding Member of the Alliance of Civilizations An Official Candidate for EU Membership An Official Candidate for EU Membership Founding Member of the OECD Founding Member of the OECD

15. A Booming Economy Turkey is the 18 th largest economy in the world* grey indicates estimates Source: TUIK; International Monetary Fund, World Economic Outlook Database, April 2012 – * (GDP @current prices)

16. Rising Income Source: Ministry of Economy

17. Sustained Growth Source: TUIK, International Monetary Fund, World Economic Outlook Database, April 2012 grey indicates estimates

18. Source: International Monetary Fund, World Economic Outlook Database, April 2012 High Growth Turkeys economic growth rate is typically above the EU average and one of the highest in Europe.

19. Economic Freedom Index 2012 A Free Economy 62.5 % Free 73 rd freest economy in the world out of 184. 62.5 % Free 73 rd freest economy in the world out of 184. Source: The Heritage Foundation, 2012 - www.heritage.org

20. A Global Competitor Source: World Economic Forum Global Competitiveness Report 2010-2011 (rank out of 133 countries) Market size Domestic Market Size16 th Foreign Market Size26 th Goods market efficiency Time required to start a business13 th Intensity of local competition 15 th Effectiveness of anti-monopoly policy 34 th Business sophistication Local supplier quantity 27 th Value chain breadth 43 th Production process sophistication 38 th Financial market sophistication Strength of investor protection45 th Restriction on capital flows41 st Affordability of financial services40 th

21. Inflation (%) Source: International Monetary Fund, World Economic Outlook Database, April 2012 *grey indicates estimates Tight budgetary policies have enabled Turkey to lower its inflation rate to single digit rates. In 2010 inflation was at its lowest in 41 years. Tight budgetary policies have enabled Turkey to lower its inflation rate to single digit rates. In 2010 inflation was at its lowest in 41 years.

22. Unemployment Source: International Monetary Fund, World Economic Outlook Database, April 2012

23. Distribution of GDP by Sector Source:TUIK

25. Free-Trade Agreements 19 Free Trade Agreements: EFTA member countries (Iceland, Norway, Switzerland, Lichtenstein), Israel, Macedonia, Croatia, Bosnia and Herzegovina, Palestine, Tunisia, Morocco, Syria, Egypt, Albania, Georgia, South Korea, Montenegro, Jordan and Chile. Free Trade Agreements under negotiation: Lebanon, South Africa, Mexico, and the Cooperation Council for Arab States. Free Trade Agreements for which talks have been initiated: Algeria, Ukraine, Mercosur (Brazil, Argentina, Uruguay, Paraguay, Venezuela), ACP countries (Ethiopia, Congo, Djibouti, Cameroon, Kenya, Gabon). 19 Free Trade Agreements: EFTA member countries (Iceland, Norway, Switzerland, Lichtenstein), Israel, Macedonia, Croatia, Bosnia and Herzegovina, Palestine, Tunisia, Morocco, Syria, Egypt, Albania, Georgia, South Korea, Montenegro, Jordan and Chile. Free Trade Agreements under negotiation: Lebanon, South Africa, Mexico, and the Cooperation Council for Arab States. Free Trade Agreements for which talks have been initiated: Algeria, Ukraine, Mercosur (Brazil, Argentina, Uruguay, Paraguay, Venezuela), ACP countries (Ethiopia, Congo, Djibouti, Cameroon, Kenya, Gabon).

26. Prevention of Double Taxation AlbaniaEstoniaKhazakstanOmanSweden AlgeriaEthiopiaKuwaitPakistanSyria AustriaFinlandKyrgyzystanPolandTadjikistan AzerbaijanFranceLatviaPortugalThailand BahrainGeorgiaLebanonQatarTunisia BangladeshGermanyLithuaniaRomaniaTurkmenistan BelarusGreeceLuxembourgRussian FederationUkraine BelgiumHungaryMacedoniaSaudi ArabiaUnited Arab Emirates Bosnia HerzegovinaIndiaMalaysiaSerbia-MontenegroUnited Kingdom BulgariaIndonesiaMoldovaSingaporeUSA CanadaIranMongoliaSlovakiaUzbekistan ChinaIrelandMorocooSloveniaYemen CroatiaIsraelNetherlandsSoudan Czech RepublicItalyNew ZealandSouth Africa DenmarkJapanNorthern CyprusSouth Korea EgyptJordanNorwaySpain

27. Foreign Trade Source : Ministry of Economy

29. Exports Exports in 2011 : 135 billion USD Share of Industry: 126 billion USD Transport vehicles: 15.8 billion USD Apparel & Clothing: 13,5 billion USD Machinery: 11.6 billion USD Iron & steel: 11,2 billion USD SMEs account for ~60% of exports

30. Exports by Region Source : TUİK

31. Top Export Partners Source : TUİK

32. Top 10 Export Categories 2011–USD millions Vehicles other than Railway15,805 Machineries, Mechanical Appliances11,563 Iron & Steel11,226 Electrical Machinery & Equipment8,882 Articles of Apparel and Clothing Accessories Knitted8,396 Mineral fuels, oils, distillation products, etc.6,539 Articles of Iron & Steel5,759 Articles of Apparel and Clothing Accessories Not Knitted5,129 Plastics and Articles Thereof4,581 Edible Fruits, nuts, etc.3.910 Source : Ministry of Economy

33. Turkey is the world leader in the production and export of: Hazelnuts Figs Raisins Various dried fruits Facts

34. Worlds largest exporter of Unmanufactured tobacco Poppy seeds Wheat of meslin flour Facts

35. worldwide exporter of Lemons (2 nd ) Fresh cherries (3 rd ) Fresh apricots (4 th ) Fresh mandarins (4 th ) Fresh grapefruits (4 th ) Facts

36. World exporter of Refined olive oil (6 th ) Tomatoes (5 th ) Facts

37. Worlds largest exporter of Marble Travertine Ecaussine Quartz

38. 2 nd exporter of woven cotton fabrics in the World Worlds largest exporter of cotton yarn Facts

39. Worlds 3 rd largest Europes 2 nd biggest exporter of carpets & other textile floor coverings Facts

40. Worlds 5 th & Europes largest exporter of knit or crocheted fabrics Worlds 4 th & Europes largest exporter of cotton denim fabrics Facts

41. Worlds 3 rd largest Europes #1 exporter of cotton T-shirts Among the Worlds largest Europes #1 exporter of various kinds of singlets, panties, briefs, pyjamas and bathrobes Facts

42. 5 th largest exporter of fur apparel in the world, 3 rd in Europe Facts 3 rd exporter of Panty hose, socks, tights, stockings & other hosiery in the world, 2 nd in Europe

43. Europes 3 rd largest, Worlds 6 th biggest exporter of special woven or tufted fabric, lace and tapestry Facts

44. 4 th largest exporter of household glassware in the world – #3 in Europe Facts 3 rd largest exporter of drinking glasses in the world – #2 in Europe

45. Worlds 4 th, Europes 2 nd largest exporter of shaped soap 2 nd largest exporter of polishes and creams for footwear or leather in the world Facts

46. Worlds largest exporter of Cements Europes #1 exporter of Cement Clinkers Facts

47. 5 th largest exporter of ceramic bathroom and sanitary fixtures in the world and 3 rd in Europe Facts

48. Worlds largest exporter of non aluminous, hot- extruded iron bars and rods Facts

49. Worlds largest exporter of radiators (iron or steel) Facts

50. 5 th largest exporter of household washing machines in the world and 4 th in Europe Facts Worlds 4 th largest exporter of household type refrigerators in the world, 1 st in Europe

51. Worlds largest Exporter of centrifugal clothes-driers Facts Worlds 11 th largest exporter of Gold jewellery in the world, 2 nd in Europe

52. Facts

53. 6 th largest exporter of public transport type passenger motor vehicles in the world, 3 rd in Europe Worlds 9 th largest exporter of trucks 5 th in Eur ope Facts

55. Imports by Region Source: TUİK

56. Top Import Partners Source: TUİK

57. Top 10 Import Categories 2011–USD millions Mineral Fuels, Mineral Oils and Derivatives54,115 Nuclear reactors, boilers, machinery, etc27,107 Iron & Steel20,424 Vehicles other than Railway17,184 Electrical Machinery & Spare parts16,836 Plastics and Articles Thereof12,578 Pearls, Art. of Precious Stone & Metals, Metal Coins7,022 Organic Chemicals5,504 Pharmaceuticals4,697 Copper and Articles Thereof4,119 Source: Ministry of Economy

59. Turkey was ranked the 15 th most attractive country in the world in terms of FDI for 2008-2010. (UNCTAD) Turkey was ranked the 15 th most attractive country in the world in terms of FDI for 2008-2010. (UNCTAD) FDI inflows to Turkey have increased by over 1000% since 2004. FDI inflows to Turkey have increased by over 1000% since 2004.

60. New Investment Incentives System Support Instruments General Investment Incentives Scheme Regional Investment Incentives Scheme Large-Scale Investment Incentives Scheme Strategic Investment Incentives Scheme VAT Exemption++++ Customs Duty Exemption++++ Tax Reduction +++ Social Security Premium Support (Employers Share) +++ Income Tax Withholding Allowance * +++ Social Security Premium Support (Employees Share) * +++ Interest Payment Support ** + + Land Allocation +++ VAT Refund*** + * Provided that the investment is made in Region 6 ** Provided that the investment is made in Region 3, 4, 5 or 6 within the framework of the Regional Investment Incentives Scheme. ***Provided that the investment is made within the framework of the Strategic Investment Incentives Scheme with a minimum fixed investment amount over TRY 500 million.

61. New Investment Incentives System

62. FDI Legislation Main Principles: Equal treatment for domestic and foreign capital companies – all companies are entitled to the same rights as domestic companies No pre-entry /pre-establishment screening requirements –such as permits or approvals Unrestricted foreign ownership –Right to acquire real estate –Freedom to seek alternative dispute arbitration besides state jurisdiction No obligation to set up a specific company type Notification: Foreign capital companies are only required to notify the Undersecreteriat of Treasury for statistical purposes.

63. Rights of Foreign Investors Free transfer of funds –Net profits, dividends, proceeds from sales or liquidations of any part of an investment, compensation payments, funds arising from license, management or similar agreements, and reimbursements and interest payments originating from foreign loans through banks or special financial institutions can be freely transferred abroad. Acquisition of real estate –Companies may freely acquire real estate through a legal entity established by or withthe participation of foreign investors in Turkey, provided that such acquisitions are permitted to Turkish citizens. Dispute settlement –Through either authorized local courts or national and international arbitration bodies. Valuation of non-cash capital –Non-cash capital is valued under the regulatios of Turkish Commercial Law. In the case stocks and bonds of companies abroad are used as the foreign capital share of foreign investors, the values assessed by the equivalent authorities in the home country or any other international institutions performing valuations will be accepted. Work permits for expatriates Setting up a liaison office –Liaison offices can be opened provided that they do not engage in commercial activities

64. Foreign Direct Investment Source: Ministry of Finance

65. Foreign Capital Companies Total number of foreign companies in Turkey : 29,283 Number of EU27 companies established in Turkey > 13,550 Countries with significant investments: Germany (4,779) the UK (2,334) the Iran (2,140) Source: Ministry of Finance

66. FDI Companies by Activity Source: Ministry of Economy

67. FDI Companies by Investing Region Source: Ministry of Economy

68. Top 5 Investors in Turkey (2011) Austria 17.3% Spain 17.3% Netherlands 12.3% USA 10.9% Source: Ministry of Economy

69. Multinationals in Turkey 3MCHEVRONGENERAL MOTORSMCKINSEYRENAULT ABB HOLDINGCITIBANKGILETTEMERCEDES- BENZREUTERS ABN AMROCNNGLAXOSMITHKLINEMERCK SHARP DOHMEROCHE AC NIELSEN ZETCOCA COLAGOODYEARMERLONISERVIER ACCENTURECOLGATE PALMOLIVEHENKELMETRO AGSHV GAS AEGCREDIT LYONNAISHEWLETT PACKARDMICROSOFTSIEMENS ALCATEL-CREDIT AGRICOLEHSBCMOBIL OILSOCIETE GENERALE ALLIANZCROWN CORKHYUNDAI CORPORATIONNESTLESODEXHO AMERICAN EXPRESSDANONEIBMNIKESONY EURASIA AUTOLIV CANKORDEUTSCHE BANKINTERGENNISSHO IWAITESCO KIPA AVENTIS PHARMADHLITOCHU CORPNORTEL NETWORKSTETRA PAK AXADUPONTJOHNSON & JOHNSONNOVARTISTHAMES WATER BANCA DI ROMAERICSSONJP MORGAN CHASEORACLE BANK OF TOKYO- MITSUBISHI BARCLAYS BANKFIATJTIPARS MCCANNTHE SHELL COMPANY BASFFMCLAFARGEPEPSI COLATNT BATFORDLEVISPERFETTITOTAL BAYERFORTISLILLYPFIZERTOYOTA BOSCHFOSTER WHEELERLOCKHEED-MARTINPHILIP MORRISUNILEVER BPFOUR SEASONSMANPHILIPSVOLKSWAGEN BRIDGESTONEFRITO LAYMARSA KRAFT JAKOPSPIRELLIXEROX BRISTOL MYERS SQUIBBGENERAL ELECTRICMCDONALDSPROCTER & GAMBLEYAZAKI

70. 1. Petrol Ofisi 6. BSH Home Appliances 41% (overall ranking: 2) 99,28% (overall ranking: 17) 2. Ford 7. Vestel 41,04% (overall ranking: 4) 74,69% (overall ranking: 16) 3. Tofas-Fiat 8. Unilever 37,86% (overall ranking:5) 99,98% (overall ranking: 18) 4. OYAK-Renault 9. Toyota 51% (overall ranking: 7) 100% (overall ranking: 21) 5. Mercedes-Benz10. Hyundai Assan 85% (overall ranking: 11) 85% (overall ranking: 27) Top 10 Foreign Capital Companies in terms of Net Sales (2011)

71. Banking Some foreign banks in Turkey: Arap Türk Bank A.Ş. Citibank A.Ş. Denizbank A.Ş. Deutsche Bank A.Ş. Eurobank Tekfen A.Ş. Finans Bank A.Ş. Fortis Bank A.Ş. HSBC Bank A.Ş. ING Bank A.Ş. Millennium Bank A.Ş. Bank Mellat Habib Bank Limited JPMorgan Chase Bank N.A. Société Générale (SA) The Royal Bank of Scotland N.V. WestLB AG

72. Expected Privatizations TEDAŞ (Gas and electricity distribution) Türkiye Şeker Fabrikaları A.Ş. (Sugar Manufacturing) Highways and ports T. Halkbank A.Ş. Milli Piyango İdaresi (National Lottery) THY (Turkish Airlines) A.Ş. Turkey Maritime Organization Inc. Sümer Holding A.Ş.

73. Major Cross-Border Acquisitions Oyak Bank (ING Group (NL) - 2,7 bn. USD) UN Ro-Ro (KKR & Co. (USA) - 910 mn. Euro) Demirdöküm (Vaillant (DE) - 211 mn. Euro) AFM Movie Theaters (Alfa Group (RU) – 52 mn. Euro) Eczacıbaşı Pharma (%75 / Zentiva – 460 mn. Euro) Ray Sigorta (%58 / TBIH Group - 82 mn. USD ) Intergum (Cadbury Schweppes (UK) 450 mn. USD) Acıbadem Health (%22 / Abraaj Capital) T. Genel Sigorta AŞ (%80 / Mapfre SA – 285 mn. Euro) Garanti Sigorta (%80 / Eureko (NL) 365mn. Euro) Garanti Emeklilik (%15 / Eureko (NL) 100mn. Euro) Dentistanbul (Global Environment Fund (USA)) ZapMedya (%70 / Int. Marketing & Sales Group - 13 mn. USD) Other examples: Başak Sigorta, Adabank, AVEA (gsm network), Dışbank, TEB, TGRT (Fox TV)

75. Ratio of R&D Expenditures to GDP (%) (%) Year Target for 2023 : %3 Data Source: TURKSTAT

76. Share of Technology Intensive Products in Exports Data Source: TURKSTAT, OECD STAN Database

77. Some widely recognized brands are owned by Turkish companies. Godiva (Ülker) Grundig (Beko) Arctic (Arçelik) Blomberg (Arçelik) Turkish-Owned Brands

78. Transportation THY is known as the best airline in Southern Europe Road Transportation (2010) –45% of Turkish exports –2,153 km of motorways –A total of 64,746 km of roads –10,500 private passenger cars Air transportation (2010) –46 airports –50,516,000 domestic passengers –52,189,000 international passengers –Cargo (tonne) 1.500.000 Sea transportation (2008) –Goods loaded: 75,623,167 tons

79. Did you know that… Istanbul is the only city in the region with 3 Exchange Markets : –The Istanbul Stock Exchange Market –The Istanbul Gold Exchange –The Istanbul Commodity Exchange There are 5 technoparks in Istanbul (18 in Turkey)

80. Did you know that… In 2010, the total number of international projects undertaken by Turkish contractors was 517 in 48 countries, for a total value of 20,3 bn. USD With 31 companies among the top 225 contracting companies, Turkey ranks 2 nd in the world after China. Between 1972 and 2010, about 700 Turkish contractors have completed over 6,000 projects in 89 countries.

81. With a market size of 20 billion USD, the Turkish communications sector is one of the largest in the Europe. 65 million GSM operator users –92% of households own a cell phone 50 million Internet users –43% of households have internet access The total ICT market is valued at 27,3 billion USD, with a yearly growth rate of 4,2%. Did you know that…

82. 51 million credit card users. More than 31,4 million people visited Turkey in 2011 (7 th most visited country in the world in 2010). 20 of the Top 100 hotels in the world are Turkish. Regional headquarters of many multinationals are located in Turkey. Did you know that…

83. Points to Remember A strategic location –a gateway for trade, energy, and communications. An active global player A successful economy – A young, well-qualified population – An competitive industrial exporter – Well-developed infrastructure – A large, expanding domestic market A beneficial investment climate

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