GENERAL KNOWLEDGE REGARDING DENIZLI

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1 GENERAL KNOWLEDGE REGARDING DENIZLI Fundamental Indicators of Denizli Province Area km 2 Population (2015) Population Density (Turkey Average 101) 84 Population of Denizli Municipality Order in the Socio-Economic 10th Development Classification List (Among 81 Turkish cities) Order in the Top Exporting Cities List by Foreign 8th Trade Data (Among 81 Turkish cities) Per Capita Gross Value Added (TR 32 Region) Turkish Liras Number of Denizli firms in Top 500 Industrial 11 Enterprises (listed by Istanbul Chamber of Industry ) Number of Companies involves Foreign Capital 12 Number of Organized Industrial Zones 6 Total Export (2015) 2,5 billion $ Total Import (2015) 1,6 billion $ Pre-School Enrolment Ratio (Turkey Average 42,5%) 63,1% Secondary Education Enrolment Ratio (Turkey 80,7% Average 76,6 %) Number of Students Per Class (Turkey Average 29) 22 Number of Hospital Beds per People 261 Rough mortality rate (per mile) 5,6 Infant Mortality (Turkey Average 10,1 ) 8,4 Cultivated Area in Use 32% Number of Accommodated Tourists (2014) Number of Beds Certified Tourism Investment (by Turkish Ministry of Culture and Tourism) (including tourists do not spend night, it is approximately 2 million.)

2 Denizli ranks among the top10 most developed cities of Turkey. According to Socio- Economic Development Classification of Cities and Regions published in 2011, which constitutes basis for the new incentive system, Denizli has risen to 10th place following İstanbul, Ankara, İzmir, Kocaeli, Antalya, Bursa, Eskişehir, Muğla and Tekirdağ. Denizli has a strong human resource capacity with the high literacy rate and Pamukkale University, one of the biggest universities of the Aegean Region. According to November-2015 foreign trade data, Denizli is listed 8 th among the top exporting cities of Turkey. According to 2014 data of Istanbul Chamber of Industry, Denizli hosts 21 firms of top 1000 Industrial Enterprises. According to 2014 data of Istanbul Chamber of Industry, following eleven firms of Denizli are listed among top 500 Industrial Enterprises: Er-Bakır Elektrolitik Bakır Mamülleri A.Ş., Abalıoğlu Yem Soya ve Tekstil San. A.Ş., Kocaer Haddecilik San. ve Tic. A.Ş., Aynes Gıda San. ve Tic. A.Ş., Menderes Tekstil San. ve Tic. A.Ş., Seval Kablo Aydınlatma Cihazları İth. İhr. San. ve Tic. A.Ş., Kardemir Haddecilik ve Elektrik Üretim San. ve Tic. Ltd. Şti., Pamukkale Kablo San. ve Tic. A.Ş., Denizli Çimento San. T.A.Ş., Atom Kablo San. ve Tic. A.Ş. and Gamateks Tekstil San. ve Tic. A.Ş..Nexans Türkiye Endüstri ve Ticaret A.Ş., a firm established in Denizli and now continuing its operations in İstanbul, is also listed in top 500 Industrial Enterprises. According to 2014 data of Istanbul Chamber of Industry, following ten firms of Denizli are listed among second top 500 Industrial Enterprises: Ozanteks Tekstil San. ve Tic. A.Ş., Küçüker Tekstil San. ve Tic. A.Ş., Modern Beton San. ve Tic. A.Ş., Kaynak İplik San. ve Tic. A.Ş., Shamrock Tekstil San. ve Tic. A.Ş., Çarkıt Kablo San. ve Tic. A.Ş., CMK Kablo Elektrik Sanayi İç

3 ve Dış Tic. Ltd. Şti., Özgüven Kablo San. ve Tic. Ltd. Şti., Erikoğlu Emaye Bakır Tel Sanayi A.Ş. ve Gökhan Tekstil San. ve Tic. A.Ş.. As can be seen with a glimpse of Denizli firms in top 1000 Industrial Enterprises, Denizli owes its strong structure not only textile and weaving but also cable, dairy, metal and metal processing sectors. Furthermore, as reported by Turkish Exporters Assembly, Denizli hosts 25 firms of top 1000 Export Companies. These companies are Başak Metal Tic. ve San. A.Ş., Menderes Teks. San. ve Tic. A.Ş., Kocaer Haddecilik San. ve Tic. A.Ş., DTS Denizli Tekstil Dış Tic. A.Ş., Seval İhracat İthalat ve Pazarlama Tic. Ltd. Şti., Gamateks Teks. San. ve Tic. A.Ş., Er-Bakır Elektrolitik Bakır Mamulleri A.Ş., Küçüker Teks. Dış Tic. A.Ş., Abalıoğlu Yem Soya ve Teks. San. A.Ş., CMK Kablo Elektrik Sanayi İç ve Dış Ticaret Ltd. Şti., Özgüven Dış Tic. Tel ve Kablo San. Ve Tic. Ltd. Şti., Elsan Elektrik Gereçleri San. ve Tic. A.Ş., Oğuzhan Tekstil Turizm İnşaat San. Ve Tic. A.Ş., Al Tekstil Konfeksiyon San. Tic. Ltd. Şti., Deniz Tekstil San. ve Tic. A.Ş., Kocaer Dış Ticaret A.Ş., Kaynak İplik San. ve Tic. A.Ş., Yaşarteks Tekstil Sanayi Tic. A.Ş., OCS Kablo San. ve Tic. A.Ş., Ozanteks Tekstil San.ve Tic. A.Ş, Alper İç ve Dış Tic.Ltd.Şti., Natural Tekstil Tic.Ltd.Şti., Eke Tekstil Konfeksiyon Turizm San.ve Tic.A.Ş., Hürsan Havlu Üretim San.ve Tic. A.Ş. and one more unannounced company. According to 2014 data of Istanbul Chamber of Industry, Denizli hosts 21 firms of top 1000 Industrial Enterprises. Denizli, draws attention with innovation and entrepreneurship; offers a wide range of investment opportunities from textile and garment to copper cable industry, greenhouses and organic agriculture to thermal tourism, machinery to soilless agriculture, marble to chemical industry, leathery to glass and cement manufacturing, viticulture and wine production to metal processing, religious and cultural tourism to natural tourism. With a right and reliable investment climate by means of its versatile structure, strong human resources, rich biological diversity, historical and cultural properties, Denizli is waiting investors. Denizli occupies a meaningful and distinct part in Turkish economy. With 5 organized industrial zones and 1 free zone, the city comes to fore regarding industrial activities: - Denizli Organized Industrial Zone, - Çardak Özdemir Sabancı Organized Industrial Zone, - Marble Specialized Organized Industrial Zone, - Leather Specialized Organized Industrial Zone,

4 - Sarayköy Agro-industry Specialized Organized Industrial Zone, - Denizli Free Zone. ORGANIZED INDUSTRIAL ZONES IN DENİZLİ PARAMETERS DENİZLİ FREE ZONE DENİZLİ ORGANIZED INDUSTRIAL ZONE DENİZLİ LEATHER SPECIALIZED ORGANIZED INDUSTRIAL ZONE ÇARDAK ÖZDEMİR SABANCI ORGANIZED INDUSTRIAL ZONE Number of Active Facilities Total Employment st. Predominant Sector Textile Textile Other nonmetallic mineral product 2nd. Predominant Sector Metal manufacturing Leather (cowhide leather) processing Sheep or goat leather processing - Plastic- rubber Denizli is not only an industry oriented city, but also a tourism and agricultural production center. There are 125 type of agricultural products being economically reaped. 96 different type of agricultural products are exported from Denizli to 62 country; for example fresh fruits as table grape, pomegranate, quince, peaches, apple and cherry; dried products as thyme, roasted chickpea, sunflower seed, anise, cumin, poppy seed, raisin. In Turkey, almost 90% of thyme production, 15% of sunflower seed and 80% of roasted chickpea is met solely from Denizli. Denizli takes place as 1 st in thyme production in the world, 1 st in both sunflower seed and poppy production of Turkey, 2 nd in the grape production of Turkey and in milk production 4 th of Egean Region, 9 th of Turkey. Turkey's highest production of ground cherry-physalis, a mythological fruit and used by Incas for many centuries for healing purposes, is in Denizli Çameli. Furhermore, Denizli is one of the cities with largest Hijaz pomegranate production, used in food, beverage and pharmaceutical sectors with its red skin, dark red seeds and sourish taste. Besides, in Denizli a local fruit Honaz cherry, a unique fruit with impressive taste, flavor and quality, is produced which grows only in Honaz. In Denizli, a city has no sea coast, fishery production and exportation sectors rises. The city is one of the leading positions in Turkey s fishery production. Especially Çameli district has an advantageous place with cold and clear waters for fishery investments.

5 It is expected that existing and continuing investments regarding energy, geothermal greenhouse, religious and thermal tourism fields will lead economic growth. In order to be an energy production center, first steps are taken by Natural Gas Combined Cycle Power Plant in Kaklık (in Honaz district) and geothermal energy based electricity production center in Sarayköy. Improvements of energy sector become more remarkable due to existing and continuing investments of electricity production from solar energy. Denizli the land of antic cities exhibits its difference via religious tourism, continuing archaeologic excavations and findings. Beyond that, existing hotels and intended work plans indicates the importance of Denizli s perspective and efforts. Textile, Garment and Weaving: Firms carrying their manufacturing business on towel, bathrobe, home textile, curtain, yarn, textile, clothing and haberdashery have a vital position in economic life of Denizli. In 2014, 1 billion and 505,9 million dollars amount of exports achieved by manufacturers of textile and textile raw materials, clothing, garment and carpet. There are strong companies listed in the top 1000 industrial enterprises and the top 1000 exporters of Turkey. In Buldan district, a light and comfortable fabric is weaved, which keeps cool in summer. During the Ottoman Period, courtiers of the palace believed in this fabric s healing effect. Besides, in Kızılcabölük, weaving is still carried out by manpower, using wooden looms in order to maintain the rooted and traditional weaving process. Both in domestic and foreign markets Kızılcabölük fabrics are sold and appreciated. Those traditional weaving products are used in Hollywood movies, various TV series, events and organizations. Furthermore, 40 thousand golden embroidered towels, which were given as the wedding invitation for the dream wedding of Prince William and Catherine Middleton, were produced in Denizli. Organic Agriculture and Greenhousing: Denizli, with its fertilelands and various kinds of agricultural products, has a significant potential for agriculture and agro-industry investments. Organic agriculture and geothermal greenhouses are the most prominent investment areas in Denizli regarding agriculture sector. Denizli, processing the most important geothermal resources in Turkey, draws attention among others. Geothermal resources are mainly located in Kızıldere, Tekkehamam-Sarayköy, Bölmekaya, Yenice-Kamara, Gölemezli, Karahayıt- Pamukkale, Çardak, Buldan and Babacık. Additionally, in Sarayköy, there is a Specialized Organized Industrial Zone based on Agriculture. Copper Wire and Cable Industry: This industry becomes increasingly important as textile industry. Main manufactures are electrolytes, copper wires and power cables. In 2014, 914 million dollars amount of export achieved by the sector. In Denizli, there are strong companies listed among the top 1000 industrial enterprises in Turkey.

6 Travertine and Marble Sector: Being one of the richest places in Turkey in terms of visible marble and travertine reserves, Denizli has a marble production capacity of 600 thousand cubic meters. In 2014, Denizli exported 315 million dollars amount of marble products. Leather Processing: Leather processing is another rooted craft in Denizli that dates back as early as weaving. This craft gained more value after Turkish Tribes from Central Asia settled down in Denizli. Early local Turkish leather processing activities were established upon the conquest of Honaz Castle by the Turks in Being one of the pioneering cities of the country in leather processing, cowhide leather and other leather products, Denizli also draws attention with cowhide leather manufacturing. Denizli single-handedly meets the 70% of Turkey s cowhide leather manufacturing needs. For example in 2012, tons of cowhide leather manufactured in Denizli. Viticulture and Wine Production: Under favor of its suitable climate and lands, Denizli is among the leading cities of viticulture and grape production. Both seedless (Razaki, Çal Karası, Ekse Karası, Kaleçik Karası, Şira) and seeded (different rounded shaped varieties and Sultani) grape varieties have been cultivated. In some districts as Buldan, Çal and Yenicekent grape production potential takes the attention; while in some others as Güney, Çal and Bekilli the potential is more focused on wine production. Religious and Cultural Tourism: Thanks to Pamukkale and Hierapolis where are ranked in UNESCO World Cultural Heritage List; city possess great potential which has not been utilized as much as desired. Both Pamukkale and Hierapolis are attraction centers. Pamukkale represents a unique beauty with its Cotton White Travertines. It is not possible to see such an other place all over the World. Therefore Pamukkale hosts millions of tourists every year. According to mythology, goddesses swam for their beauty in the healing waters of Pamukkale, and Hierapolis, which is also called Land of Gods, had been the scene of the wars and intrigues of many Greek gods. After the restoration completion of the 1800-year-old Ancient Theater in Hierapolis the theater hosts many activities. Denizli has great potential for religious and cultural tourism investments owing to cultural values such as: Hierapolis - where the grave of Saint Philip, one of the 12 apostles of Jesus mentioned in the Bible, is located, Colossae -where the first Christians lived, mentioned in the Bible, Laodikeia where was believed as the location of Eyes of God. Thermal Tourism: Besides the healing water of Pamukkale; there is Karahayıt Thermal Springs, also known as red water, which is highly important for thermal tourism. Karahayıt Thermal Springs have been a source of healing for 5000 years, renowned as the thermal springs where the Egyptian Queen Cleopatra took mud bath. Mainly due to culture and tourism potential of Pamukkale and thermal springs and mud of Karahayıt; Denizli hosts 2 million tourists.