1FS – OCTOBER 08

COMCECMINISTERIAL EXCHANGE

OF VIEWS ON IMPROVING INVESTMENT CLIMATE

ISTANBULOCTOBER 23, 2008

Francis SERMETStrategic Advisor

to Republic of Turkey Prime Ministry Investment Support and Promotion Agency

2FS – OCTOBER 08

60 000 MNC (Multinational Corporations)WITH MORE THAN 500 000 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

3FS – OCTOBER 08

NEW MANUFACTURING PLAN

HEADQUARTERS

INFRASTRUCTURE

DIFFERENT FACTORS CAN IMPROVE INVESTMENT CLIMATE

DIFFERENT TYPES OF FDI

4FS – OCTOBER 08

ACCESS TO CUSTOMERSSTABLE SOCIAL AND POLITICAL ENVIRONMENTEASE OF DOING BUSINESSRELIABILITY AND QUALITY OF INFRASTRUCTURES AND UTILITIESABILITY TO HIRE TECHNICAL PROFESSIONALSABILITY TO HIRE MANAGEMENTLEVEL OF CORRUPTIONCOST OF LABORCRIME AND SAFETYABILITY TO HIRE SKILLED LABOURERSNATIONAL TAXESCOST OF UTILITIESROADSACCESS TO RAW MATERIALSAVAILABILITY AND QUALITY OF UNIVERSITY AND TECHNICAL TRAININGLAND WITH SERVICESLOCAL TAXESACCESS TO SUPPLIERSLABOR RELATIONS AND UNIONIZATIONAIR SERVICEIMAGE OF THE COUNTRY, ETC.

21 MOST IMPORTANT FACTORS FOR SITE SELECTION FDI

5FS – OCTOBER 08

TAX ADVANTAGESQUALIFIED MANAGERSQUALITY OF LIFECENTRAL LOCATIONSUPPORT FROM LOCAL AUTHORITIESPERSONAL PREFERENCE OF CEOINTERNATIONAL MANAGERSINTERNATIONAL SCHOOLSLANGUAGE SKILLSWORK ENVIRONMENT AND LABOUR RELATIONSATTRACTIVENESS OF COMPETENCESPURCHASING POWEREDUCATION LEVELINDIVIDUAL TAXESIMAGE OF THE COUNTRYAVAILABLE WORKFORCEPROXIMITY TO PRODUCTION PLAN.ETC.

17 MOST IMPORTANT CRITERIA TO CHOOSE A LOCATION FOR HQ

6FS – OCTOBER 08

PERSONAL CONTACTSSYSTEMATIC APPROACHMULTIPLIERSMEDIASEMINARSOFFICIAL VISITS INTERNETOTHERS

BEST PRODUCT NEEDS BEST COMMUNICATION

7FS – OCTOBER 08

NETWORK OF REPRESENTATIVES

ONE STOP SHOP

MANAGE BY KEY PERSON

REPORTING TO MAIN DECISION LEVEL

COMPETITIVE WORLD

8FS – OCTOBER 08

OUR HOST COUNTRY: TURKEY

WITH PRESIDENT ALPASLAN KORKMAZ

REPORTING TO HE THE PM

BEST PRODUCT / BEST TEAM BEST PRACTICE

9FS – OCTOBER 08

ROI ON LONG TERM

- JOBS- TAXES

INDIRECT EFFECTS- REAL ESTATE- HOTEL, RESTAURANT, SCHOOL- SUB CONTRACTING- ENTREPRENEURIAL SPIRIT- KOW-HOW- ETC.

10FS – OCTOBER 08

IN 3 YEARS:

SWITZERLAND 55%

UK 16%

NL 7%

SWITZERLAND A SUCCESS STORY

HQ

11FS – OCTOBER 08

HOLDING, HQ, PRINCIPAL, R&D150 PEOPLEFIRST CONTACT BY REP IN 1998DECISION IN 2002

- IMAGE- SWISS MADE- LONG TERM- GLOBALIZATION- TAXES- HELP BY GOVERNMENT COST NO PROBLEM

SUNSTAR

12FS – OCTOBER 08

MANUFACTURING: 1000 PEOPLECONTACT BY REP

- ALREADY IN SWITZERLAND- QUALIFIED MANPOWER / WATCH INDUSTRY- IMAGE ‘SWISS MADE’- TAXES- INCENTIVES- HELP BY GOVERNMENT

COST NO PROBLEM

J&J / MEDICAL FIELD

13FS – OCTOBER 08

PRODUCT

COMMUNICATION

IMPLEMENTATION

SUCCESS

14FS – OCTOBER 08

THANK YOU FOR YOUR ATTENTION