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1. こんにちは

2. INVESTMENT OPPORTUNITIES IN TURKEY, IZMIR and THE ROLES OF RDAs

4. Japan and the Republic of Turkey have maintained good relations for over a century. There has been wide-ranging interaction between the two countries, including visits by eminent persons, as well as economic and cultural exchange.

5. Visits To Turkey (since 2000) • 2000 State Secretary for Foreign Affairs, Ichita Yamamoto • 2001 Minister of State Ryutaro Hashimoto • 2002 Minister for Foreign Affairs Makiko Tanaka (January) Minister of Education, Culture, Sports, Science and Technology, Atsuko Toyama Prince Tomohito of Mikasa (October) • 2003 Prince Tomohito of Mikasa, Princess Tomohito of Mikasa (Nobuko), Princesses Akiko and Yohko • 2004 Prince Tomohito of Mikasa • 2005 Minister of Finance, Sadakazu Tanigaki (May) Prince Tomohito of Mikasa, Princess Akiko (September) • 2006 Prime Minister, Junichiro Koizumi • 2008 Princess Akiko • 2009 Crown Prince Naruhito • 2010 Minister of Foreign Affairs, Katsuya Okada (January) Prince Tomohito of Mikasa (May) Prince Tomohito of Mikasa, Princess Akiko (July) Speaker of the House of Representatives, Takahiro Yokomichi (July) • 2012 Minister of Foreign Affairs, Koichiro Gemba (January)

6. Visits To Japan (since 2000) 2000Minister of ForeignAffairs, Ismail Cem (April) Deputy Prime MinisterandMinister of EnergyandNaturalResources, Mustafa Cumhur Ersumer (June) Minister of Public Works andSettlement, Mehmet Aydin (August) EnvironmentMinister, Fevzi Aytekin (September) 2001Minister of Tourism, Mustafa Tashar 2002Minister of Public Works andSettlement, Akjan (March) Minister of Transport andCommunication, Vural (April) 2003Deputy Prime Minister, ErtugrulYalcinbayir (Februrary) NationalAssemblyChairman, BulentArinc (June) Minister of CultureandEnvironment, Erkan Mumcu (August) Deputy Prime MinisterandMinister of ForeignAffairs, Abdullah Gul (December) 2004 Prime Minister, Recep Tayyip Erdogan 2007Public Works Minister, Faruk Nafiz Ozak 2008President, Abdullah Gul 2009 Minister of CultureandTourism, ErtugrulGunay 2010Speaker of Grand NationalAssembly, Mehmet Ali Sahin (October) Minister of State, Zafer Caglayan (November) Minister of Transport andTelecommunications, BinaliYildirim (December) Minister of EnergyandNaturalResources, Taner Yildiz (December) 2011Deputy Prime Minister, Ali Babacan (December)

7. Commemorating 120th anniversary of the friendship between Japan and Turkey, "Japan Year 2010 in Turkey" was held and 186 various events were held in all over Turkey through the whole year.

8. Bilateral Treaties and Agreements: 1930 Commerce and navigation treaty 1957 Visa exemption agreement 1989 Agreement between Japan and Turkey for Air Services 1992 Agreement between Japan and Turkey Concerning the Reciprocal Promotion and Protection of Investment 1993 Convention between Japan and Turkey for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Income Taxes

9. Trade with Japan (in US Dollars) • Principal imports from Japan: $4.264 billion(2011) (Communications equipment, automobiles, machinery, iron and steel, engines, chemical and optical equipment)   • Principal exports to Japan: $296 million (2011) (Tuna, leaf tobacco, processed foods, volatile oils, chrome steel, carpets, glass products) Number of Residents: 1,485 Japanese residents in Turkey (as of October 2010) 2,452 Turkish residents in Japan (as of July 2010)

10. WHO WE ARE

11. Who we are? CABINET DECISION IN 2006 Ministry of Development • Executive Board, which is the decision making body of the Agency consists of 8 people, who are: • Governor of İzmir • Mayor of İzmir • President of Provincial Council • President of İzmir Chamber of Commerce • President of Aegean Region Chamber of Industry • 3 delegates elected from the members of Development Council Development Council Executive Board Development Council is the consultative component of İzmir Development Agency consisting of 100 people from public, private and civil society sectors and academics. Development Council gives consultative decisions about policies and strategies of the Agency across the problems and opportunities faced in the region. Secretariat General is the executive body of the Agency which consists of Secretary General, experts and support staff. The units of Secretariat General are: Secretariat General Investment Support Office Program, Planning & Coordination Program Management Unit Monitoring and Evaluation Unit City Marketing & ForeignRelations Corporate Management Unit Responsible for preparingtheregionaldevelopmentplansandotherstrategieslikecluster, innovation,etc. Responsible for the management of financial and technical support to projects and activities implemented in the region Responsible for monitoring and evaluation of grant programs and projects supported by the Agency Responsible for dealing with the promotion of cityandimplementingthe marketing strategy of Izmir Consists of teams providing services in Finance, Human Resources, Press and Media Relations and IT systems

12. Our services Investment Decision Stage Support for your final decision - Investment premises alternatives - Budgeting - Infrastructure - Target market, competitors, suppliers, customers - Information about administrative formalities - Incentives • Setting up Your Business Entity • Support during your establishment period • Form of corporation • Articles of association • Commercial Registry • Residence and work permits • Recruiting your team Creating your Business Network Support….. - Recruiting your team - Networking with universities, industry associations,etc. - Inform you about the events in your sector - Networking with public bodies

13. Agenda

14. TURKEY IN THE WORLD

15. TURKEY IN THE WORLD

16. IZMIR IN GENERAL 3rd most populous city of Turkey and 3rd province on Turkey’s Competitiveness and Socio-economic Development Index Dynamic and well-educated population important role in the Turkish economy, thanks to its agricultural, industrial and tourism revenues 4th among the fastest-growing global metropolitan economiesaccording to the Global MetroMonitor 2011 report released by the Brookings Institute 15.500 graduates per annum 9 universities 13 organized industrial zones, two free zones, 1 technology development zone and four main trade ports

17. IZMIR IN GENERAL SOME PROMINENT INDICATORS • The second largest commercial centre in Turkey • A significant industrial base, realizing 9.3% of Turkey’s total industrial production • Created 48% of the Aegean Region's GDP in 2008 • % 9,7 of the total employment of Turkey • More than 4,000 export companies • 4.2% of the total imports and 5.8% of the total exports of Turkey • Has 1810 internationalcompanies • Ranked the 3rdcity in Turkey regarding income tax ..in the middle of everywhere..

18. Transportation & Logistics Aliaga Port İzmir Alsancak Port Çesme RoRo Port Dikili Port • Second largest container handling capacity in Turkey • Continuous expeditions to all main ports of the world • Handles 26% of the total exports and 20% of the total imports of Turkey • 12 privatedocksincluding Ege Gubre, NemportandPetkim • Annualcapacity of 70 million tonnes • Bulkfreights, containerand general cargotransportation • Bulkfreights: oil, chemicals, fuel-oil, diesel, gas, asphalt, naphtha, metal, iron, copper, grain, salt, etc. • General cargo and bulk freight port • Annual capacity of 1 million tonnes • Open to passenger vessels • 1,060 vessels per annum • Total length of 300 m quay • Total area of 25,152.50 m2 Transportation and Logistics(On going Projects) North Aegean Çandarlı Port (Project Phase) İzmir Adnan Menderes Airport • Highwayprojects • İzmir–Istanbul Highway • İzmir–Ankara and İzmir–Çanakkale Highway Projects • High-speedtrain • İzmir-Ankara high-speedtrainproject • LojisticsVillage • Kemalpaşa OIZ logisticvillageproject • Open to international flights • Direct flights from more than 40 cities from European and Middle Eastern countries • 18 km from the city centre • Capacity of 9 million passengers per annum • A HUB port serving all major international sea lines • Annual capacity of 20 million tonnes • The final capacity is to be 2 million TEU • Total area for the logistics and warehouse is 2 million m² • General cargo, bulk, RORO and container transportation, especially for Panamax-Post Panamax type transit vessels • The railway and roadway connections • To be operational in 2015

19. FDI trend in İzmir Major international corporations that have chosen toinvest in İzmir Kanzai Altan, Philip Morris, KT&G, Hugo Boss, Akzo Nobel, Delphi, Tetra Pak, Gates, Cummins, Enercon, PFW, Mahle, Tesco, Eldor, Hoffmann, Japan Tobacco International, IBM, Dr. Oetker, General Motors, , Fokker, Larth, Coca Cola, Pepsi, Pratt&Whitney The number of international companies in İzmir is morethandoubledfrom 2006 to 2013.

20. TURKEY - JAPAN

21. ENERGY

22. Turkey Installed Capacity

23. Wind Energy Map of Turkey

24. 2023 Energy Targets Increasing wind power to 20,000 MW (up from 1,694 MW in 2010) Power plants with 600 MW geothermal, 3,000 MW solar energy 125,000 MW of installed power (up from 57,500 MW in 2012) Increasing the share of renewables to 30 percent 60,717 km of transmission lines (up from 49,104 km in 2010) 158,460 MVA of power distribution unit capacity (up from 98,996 MVA in 2010) Decreasing electricity loss-theft to 5 percent and extending the use of smart grids 5 billion m3 of natural gas storage capacity (up from 2.6 billion m3 in 2010) Establishing an energy stock exchange 8 nuclear reactors with a capacity of 10,000 MW will be active Construction of 4 nuclear reactors with a capacity of 5,000 MW Construction of power plants with a capacity of 18,500 MW in the coal basins Full utilization of hydropower

25. New Regulation

26. Labor Force in Energy Sector

27. BIOMEDICAL

28. Export & Import Values for Medical Devices in Turkey and İzmir

29. Health in Izmir Izmir, with its increasing number of medical schools and highly specialized trained clinicians and scientists, is becoming more attractive for health investments day by day. • 29 state hospitals • 19 private hospitals • 3 university hospitals 5 Medical Schools • Ege University • Dokuz Eylül University • Şifa University • İzmir Katip Çelebi University • İzmir University

30. Faculties / Institutes / Schools about Biomedical Sciences • Ege University, • Department of Biomedical Technologies • Department of Bioengineering • Ege Vocational School • Biomedical Equipment Technology (İKMEP) Associate Degree Program • Dokuz Eylul University • Izmir Vocational School of Biomedical Equipment Technology • Izmir Katip Çelebi University • Department ofBiomedical Engineering • Izmir Institute of Technology • Graduate Program in Biotechnology and Bioengineering • Department of Molecular Biology and Genetic

31. Opportunities Dokuz Eylul Technology Development Zone: DEPARK Izmir Technology Development Zone: IZTEKGEB Inc. Dokuz Eylul University-Industry Electronic Materials and Application Center: EMUM Dokuz Eylül University- Advanced Biomedical R & D and ApplicationCenter : IBAM İZTEKGEB Inc. & IZKA - Innovation Center (incubation center) Ege University - Drug Development and Pharmacokinetics Research Center: ARGEFAR Biomedical Sector Cluster: İNOVİZ

32. Policies & Regulations Offset For Turkey-wide purchases, Ministry of Health is preparing “The Offset Guideline” Investment Incentives for Manufacturing of Medical Devices The amount of minimum fixed investment: 531,000 $ (1,000,000 TL)

33. AUTOMOTIVE

34. The Automotive Environment in Turkey • - The product portfolio of 22 automotive manufacturers in Turkey covers a range of vehicles from sedans to heavy trucks. (even military products) • - Current production capacity of Turkey is 1,6 million veh./year. • - For the production of commercial vehicles Turkey has already become a center of excellence. • According to the figures of 2012 Turkey was the largest light commercial vehicle producer of Europe. • -The global automotive producers in Turkey: Toyota, Renault, Ford, Honda, Fiat, Hyundai, Man, Mercedes, Isuzu, Mitsubishi, Iveco, Peugeot, Opel, Case, • As of today, there are more than 1500 companies operating in the Turkish automobile supplyindustry. Around 450 of them are working directly with the OEMs. • More than 250 companies with foreign capital have manufacturing operations in Turkey. 17 of thesecompanies are among the top 20 automotive suppliers. • An increasing number of Turkish suppliers are competing in the global arena with their own brand. • - Around 200,000 people are employed in the Turkish automotive supply industry.

35. Why to invest in automotive in Turkey? Investments incentives for prioritized investments can be listed as below: ➢VAT exemption ➢Customs Tax exemption ➢Social Security Premium (SSP) Support Employer’s Share for 7 years ➢80% Tax Discount with a 40% rate of contribution to investment ➢Interest support up to 700.000 TL, ➢Land allocation

36. Why to invest in automotive in Turkey? • Examples of obtainable savings by these incentives: • Labor: Yearly cost ~ 14 kEuro/ operator  ~10 kEuro/ operator (tax incentive) • Plant : Investment ~ 1000 Euro /m2  500 Euro / m2 (land allocation) • Operating costs: Gain of ~%20 comparing with the existing car producers similar costs • Examples of obtainable savings by the production environment in Turkey: • High productivity ( average DSTR in OEM : 3.0) • - High quality (ppm < 3 in subsidiaries) • Available capacity in subsidiaries (~ %60 of the subsidiaries work 1 shift) • Low transportation costs (with the new investments on logistics ways)

37. Why to invest in automotive in Turkey? Over 2,000 motor vehicle & related production firms in Izmir Izmir is an established export platform for the industry, accounting for over 10% of Turkey’s exports of motor vehicles Strong supply-chain in Izmir with 5,500 firms in industrial machinery & equipment and metals manufacturing related sectors Excellent labour availability Large pool of experienced workers with nearly 25,000 employees in motor vehicle productionA further 60,000+ employees in industrial machinery & equipment and metals manufacturing related sectorsLarge pool of students with nearly 4,500 university and vocational students graduating each year in engineering in Izmir Low costs Labour costs are around 70% lower than in Western EuropeSalaries are 50% lower than Istanbul for skilled and semi-skilled manufacturing workers and engineersWage growth of in Izmir is below that of Istanbul ensuring a cost effective workforce in the years to come Lower property costs than Istanbul (industrial rental costs 44% of Istanbul) High quality infrastructure Presence of international quality free zones offering tax and other benefitProximity to a major international portOnly 4 hours by road to Istanbul with the new motorway under construction:

38. ICT

39. Information & Communication Technologies Market in İzmir • The total number of the enterprises in ICT sector in İzmir is 1295 • The total amount of the revenues created by ICT sector in İzmir is about 390 million dollars • The total number people employed in ICT sector in İzmir is 9343 • The attrition rate is about 20% by city and all sectors • The attrition rate in ICT sector is about between 5%-7% for corporate and large enterprises

40. Information & Communication Technologies Key Players MARKET

41. Information & Communication Technologies Human Capital Number of Graduates by Area Studied

42. Information & Communication Technologies Human Capital Wages

43. IncentivesandSupports

44. INCENTIVES

45. OTHER SUPPORTS • SupportstoSME’sby KOSGEB (Small andMediumIndustry Dev. Org) • TUBİTAK Supports • Supports of Ministry of Science, IndustryandTechnology • Supports of Ministry of EconomyforExportCompanies • Training support Incentives From ISKUR • Technology Development ZoneIncentives

46. The reasons to invest in İzmir Current Issues and important infrastructural projects in İzmir Region EXPO 2020 Candidate

47. www.investinizmir.com

48. Thank you.. ありがとうございました