LIGHTING AND LED MARKET IN TURKEY 01.08.2012 Uğur B. AYSELI

LIGHTING AND LED MARKET IN TURKEY

01.08.2012

Uğur B. AYSELI

“MAIN FOCUS OF LIGHTING IS TO PROVIDE IDEAL AND RIGHT SEEING CONDITIONS, NOT TO OBTAIN A CERTAIN LEVEL OF LIGHTING.”

18. CENTURY

DECORATION

Lighting and LED Market in Turkey

HOW DID IT START?

LIGHTING IN TURKEY

1960

1970

1990

Light bulb & Fluorescent light

Decorative


ACTORS

ISO 9000 ENEC VDE

50 big scale companies

300 mid-scale companies

Istanbul, Ankara, Izmir

AGİD


• ‘Today (2010), size of the Turkish lighting market is estimated around $350 million. Given the amount, lamps form $130 millon of the market, whereas lighting accessories form the other $220 millon. Size of the World lighting market is around $50 billion. Lamps form $35 billion of the market and the rest ($15 billion) is formed by lighting accessories.

*MFA

MARKET SIZE IN TURKEY


• ‘In the past 10 years, lighting market has shown a greater growth rate than the overall Turkish Economy. The market reached $1.5 billion, and will mainly focus on growing its export in 2012.’*

*AGİD, Fahir Gök

MARKET SIZE IN TURKEY


EXPECTATIONS (LED)

2015 %50

2020 %75

100 countries $250 million


Turkey’s Lighting Appliances Export (in m $)

2007 2008 2009

Droplights; wall and ceiling lighting appliances 82 98 84

Xmas tree ornament lights and sorts 1,5 1 1

Other electric lamps and lighting appliances 47 60 49

Commercial lamps, light signboards, lighted name signs/boards, etc. 23 23 24

POSSIBLE LED MARKET TOTAL 153,5 182 158

OVERALL 193 225 194


Turkey’s Lighting Appliances Export (in millions $)

2007 2008 2009Azerbaijan 7 17 14

Turkmenistan 4 5 14Iraq 9 10 13

Germany 12 16 12Libya 2 4 12

Algeria 3 2 9Romania 17 16 9

Kazakhstan 9 11 8UK 14 14 7

Russia 10 15 7

Belgium 6 6 5Qatar 0,2 1 5

Greece 6 6 4UAE 5 7 4

Gerogia 2 3 4Poland 4 3 4France 7 6 3

T.R. of Cyprus 3 4 3Ukraine 3 3 3

Other Countries 71 73 55OVERALL 193 225 194


Turkey’s Lighting Appliances Import (in millions $)

2007 2008 2009

Droplights; wall and ceiling lighting appliances 57 79 55

Xmas tree ornament lights and sorts 2 3 1

Other electric lamps and lighting appliances 41 46 29

Commercial lamps, light signboards, lighted name signs/boards, etc. 2 1 1

POSSIBLE LED MARKET TOTAL 102 129 86


Turkey’s Lighting Appliances Import (in millions $)

2007 2008 2009China 139 171 116

Germany 30 33 20Italy 29 32 17

France 11 13 7Spain 7 8 5

Austria 3 4 3Poland 2 2 3

Hungary 2 2 3Tailand 0,5 0,5 3

USA 3 5 2South Korea 2 2 2

Belgium 4 3 2UK 3 4 2

India 2 2 2Egypt 2 2 2

Netherland 2 2 1Czech Rep. 1 2 1

Finland 1 1 1Danmark 1 2 1

Other Countries 9 11 8Overall 253 302 201


WHERE IS IT USED?• Indoor Lighting

• Factories• Cold Storage Depots• Stores• Shopping Malls• Conference Halls• Plazas, Offices• Bars and Clubs

• Outdoor Lighting

• Street Lamp• Parking Lot• Outdoor Factory and Building lighting• Outdoor Wall Lighting (Wall wash)• Historical Artifact Lighting• Bridge, Tunnel, Passage, etc…

• Vehicles• Over 300 LED’s used in a car


Our Additional Target Market

• Via M.E. 17 million street lamps, factories

• Via M.H. Over 2,000 Hospitals

• Via M.Ed. Over 50,000 schools

• Via M.D. Military bases, police stations, recruitment offices

• Via M.T. Metro Stations, Bus Stops


Where We Stand

Threshold

Current Market

Market Penetration Point ( Ministries and new LED markets)


JV – DATATEKNIK OFFERS:

Sales TeamProjectsNetworkingIncentivesR&D projects


JV – DATATEKNIK DEMANDS

Price discountBoth Parties investing for assembly lineTechnical Advisor from LednedPatentSales Team Labor Cost from JVFree License Major Vote


GOVERNMENT INCENTIVES


4 DIFFERENT SCHEMES:

1- General Investment Incentive Scheme

2- Regional Investment Incentive Scheme

3- Large Scale Investment Incentive Scheme

4- Strategic Investment Incentive Scheme


Regional Map of Provinces show classification of provinces forthe implementation purpose of the Investment Incentives Program


REGIONAL INVESTMENTS INCENTIVE SCHEME MEASURES


Incentive Measures REGIONS

I II III IV V VIVAT Exemption YES YES YES YES YES YESCustoms Duty Exemption YES YES YES YES YES YESTax Reduction Rate of

Contribution to Investment

(%)

Out of OIZ 15 20 25 30 40 50

Within OIZ 20 25 30 40 50 55

Tax Reduction Rate of Income tax discount(%)

Within or Out of OIZ 50 55 60 70 80 90

Social security Premium Support (Employer’s Share)

Support Period

Out of OIZ 2 years 3 years 5 years 6 years 7 years 10 years

Within OIZ 3 years 5 years 6 years 7 years 10 years 12 years

Land Allocation YES YES YES YES YES YESInterest Support

Local Loans

N/A N/A

3 points 4 points 5 points 7 points

Foreign Exchange/ FX denominated loans 1 point 1 point 2 point 2 point

ONE LEVEL UP

Investments in Organized Industrial Zones

Joint investments to be made by at least 5 companies operating in the same sector with the purpose of integrating these companies horizontally or vertically to this joint investment

Investments made to produce products developed by an R&D Project which is supported by The Scientific and Technological Research Council of Turkey, TÜBiTAK


TÜBİTAK GRANTEEThe Scientific and Technological Research Council of Turkey

• The Council grants:

Producing a new productDeveloping / ameliorating an existing productAugmenting quality and standards of an existing product Inventing new production cost reducing techniques Developing new production technologies

In the scope of R&D…


TÜBİTAK GRANTEEThe Scientific and Technological Research Council of Turkey

STANDS OUT…

• No Pay-Back

• Max 36 months

• Essential aid amount: 40%

• Max aid amount: 60%

• No limitation for the Gov’t Incentive


Market Rivals

Actors in the Market

Odsel Elektronik, LuxarOsram Ampul A.Ş.Pelsan AydınlatmaPSL Elektronik.Siteco Aydınlatma SL Enerji Aydınlatma TekfenTridonic Aydınlatma Türk Philips Ticaret Veksan Aydınlatma VestelYenigün Elektroteknik

Arlight Assan Elektronik Atıl AydınlatmaBIMBurç Aydınlatma CemdağEAE Elektrik Aydınlatma Federal Aydınlatma General Elektrik Türk Lamp 83 AydınlatmaLitpa AydınlatmaLSP Aydınlatma

COMPETITION

Partnership with CREE. $50 million worth of investment by 2014.

JV with Hong Kong based Turkish firm Evercase Development Ltd. Building a joint LED production facility by the end of 2012 in Turkey.


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LIGHTING AND LED MARKET IN TURKEY 01.08.2012 Uğur B. AYSELI