Tekfen Holding Investor Presentation March 2019 · Tekfen Group Tekfen Group Contracting Agri Industry Real Estate Other Strategic focus •Tekfen Holding is devoted to the motto

Tekfen Holding Investor Presentation March 2019

Tekfen GroupAt a glance

Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr

1956 Feyyaz Berker, Nihat Gökyiğit and Necati Akçağlılar formed an engineering consulting company

1957 The three partnersestablish Tekfen Construction Ltd.

1963 Tekfen Industry and Trading Co., Inc. is founded to produce incandescent lamps.

1970 Foundation of Tekfen Manufacturing

1971 Foundation of Tekfen Holding

1975 Iraq-Turkey pipeline

1978 Tekfen Construction goes overseas

1981 Toros Fertilizer starts production

1984 Foundation of Tekfen Engineering

1989 Tekfenbank Acquisition of Akgübre fertilizer

1992 Tekfen Philarmonics

2000 Tekfen Real Estate Development Group

2001 Acquisition of Bank Ekspres

2003 Tekfen Tower opens

2005 Acquisition of Samsun Gübre fertilizer plant

2006 Completion of BTC crude oil pipeline

2007 Partnership with Eurobank EFG in Tekfenbank

Acquisition of EFG Istanbul Securities

IPO of Tekfen Holding

2012 Sale of Eurobank Tekfen

2018 Acquisition of Alanar & Alara

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http://www.tekfen.com.tr/

www.tekfen.com.tr

Tekfen Group

Tekfen Group Contracting Agri Industry Real Estate Other

Corporate Governance

Share Classes

Single type of shares (one share one

vote)

Composition of the Board

4 out of 11 members are independent.

Board members to be elected for max.

of three years

Dividends

30% of the distributable income has to

be paid out

Ownership Structure

No cross ownership within the group

Gökyiğit

22.0%Berker

22.6%

Akçağlılar

6.7%

Others 1.5%

Free Float

47.2%

Ownership structure

3


www.tekfen.com.tr

Tekfen Group


At a glance

Main Operations

• Construction

• Engineering

• Fabrication

Main Companies

• Tekfen Construction

• Tekfen Engineering

• Tekfen Manufacturing &

Engineering

Contracting

Share in consolidated

revenues*: 74%

Main Operations

• Fertilizer production and

distribution

• Terminal services

• Seed, sapling and seedling

production and distribution

• Free zone operations

Main Companies

• Toros Agricultural Industry

& Trade

• Toros-Adana Yumurtalık

Free Zone

• Hishtil-Toros Seedling

Industry & Trade

• Black Sea Fertilizer Trade

• Tekfen Agriculture and

Trade

Agri Industry


revenues*: 24%

Main Operations

• Real Estate Development

• Construction & Marketing

of Real Estate Projects

• Facility Management

Main Companies

• Tekfen Real Estate

Development

• Tekfen Tourism & Facility

Management

• Tekfen Real Estate

Investment

• Florya Real Estate Inv.

Const. Tourism Co., Inc

Real Estate


revenues*: 1%

Tekfen Insurance

• Authorised agent of 18

insurance and 3 pension

fund companies

Tekfen Ventures

Venture fund that invests in

industrial and enterprise

software and hardware

technologies

Other


revenues*: 0%

* As of 31.12.2018 4


www.tekfen.com.tr

Tekfen Group


Strategic focus

• Tekfen Holding is devoted to the motto “do what you know best in the best way

possible” which was determined by its founding shareholders. In this framework

Tekfen has focused on Contracting, Agri-industry / Terminal Services and Real-

Estate Development sectors.

• Contracting is an activity that Tekfen Holding operates in since its foundation and

has gained first class expertise. The potential demand for contracting activities of

the countries in Middle East, Caspian Region and North Africa which have been

developing and enriching in the recent years has played a key role in the

determination of this activity as a strategic focus.

• Agri-industry sector addresses to the most basic need of the mankind, namely

nutrition. Fertilizer, on the other hand, is an indispensable input for agri sector. Due

to the growing world population in addition to the alternative uses like bio-fuel

production, it is anticipated that demand for agricultural production and for

fertilizers will grow. As a result, this activity has a strategic focus for the Group.

5


www.tekfen.com.tr

Tekfen Group


Strategic focus

• Terminal activities are undertaken in the framework of Agri-industry segment

comprising of two marine terminals strategically located in the Mediterranean and

the Black Sea regions.

• It is observed that in parallel to the development and enrichment of every country,

demand for modern, luxurious and high standard residential and commercial

housing increases. Hence, Real Estate Development is another strategic focus for

Tekfen Group.

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www.tekfen.com.tr

Tekfen Group


Vision / Mission

Our Vision

“To be one of the leading forces of Turkey’s growth in our areas of

operations namely, Contracting, Agri-Industry and Real-Estate

Development.”

Our Mission

“While remaining commited to our traditional values, we aim to focus on

our core operations, deliver the highest quality products and services,

become the leader of our segments, and at the same time, generate value

for all of our stakeholders, namely, our customers, suppliers, employees,

shareholders and society.”

7


www.tekfen.com.tr

Tekfen Group


Social Responsibility

• Tekfen Group believes that supporting social culture and environmental activities

are the natural extentions of its corporate structure. All the companies under the

Tekfen Group umbrella emphasize “usefulness”, “harmony” and “protection”

principles as a prerequisite for the activities in their own fields.

• Believing that supporting social development and improvement is everybody’s

common task Tekfen continues its efforts for this end for decades. These activities

which are the common values for all employees, from top executives to entry level

employees of the Group coincides with the philosophy which puts human and the

environment as the focal value.

• With the purpose of continuing its contribution to social and cultural activities,

Tekfen established Tekfen Foundation for Education Health, Culture, Arts, and

Protection of Natural Habitat in 1999. Supporting a variety of projects in the fields

of education, culture and art since its establishment, Tekfen Foundation obtained

status as an “institution that works for the benefit of society“ through the Cabinet’s

decision in 2004.

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www.tekfen.com.tr

Tekfen Group


Tekfen Group

Human resources

Tekfen Holding has a dynamic and

professional workforce of over

19.000 employees.

Number of employees

Contracting Agri IndustryReal

EstateTotal

2013 13,614 1,033 348 15,514

2014 11,988 1,020 380 13,878

2015 11,359 1,058 390 13,234

2016 12,691 1,102 401 14,295

2017 16,696 1,112 382 18,296

2018 17,539 1,140 366 19,180

Number of employees (breakdown by segment)

9

15,514 13,878 13,234 14,295

18,296 19,180

2013 2014 2015 2016 2017 2018


Contracting

Contracting

Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate

EPC Turnkey Delivery

Design &

Engineering

Manufacturing &

Design of Process &

Storage Equipment

Turnkey

Construction

Export Finance &

Procurement &

Logistics

• EPC >> (also commissioning, start-up,

operational support &training)

• EPC-F >>

• EPCM >>

• Engineering

• Owner’s Engineer

• Procurement Services

• EPCM <<

• Job orders

• Erection Supervision

• EPC <<

• Lump sum turnkey

Construction

Contracts

• Procurement

Services

• EPC-F (B2B to

TEKFEN

Construction)

Group

11


Contracting


Overview

• Founded in 1956 as an engineering and consultancy firm.

• One of the largest contracting groups in Turkey.

• Main area of specialization is construction projects in the oil and gas industry.

• Is among the leading international construction companies in the world and ranks at

number 98 among the world’s 250 biggest international contractors, based on

contracting revenue from projects outside home country, in a list published by

Engineering News-Record magazine in 2018.

• Employing over 2,500 permanent technical and administrative staff and with an

extensive selection of new and well-maintained equipment and machinery

• Over 350 projects with a total amount of US$15 billion completed.

• Successfully completed US$9 billion worth of projects abroad.

• The Group has broken records for working hours without LTI (lost time incident) in

Azerbaijan, Kazakhstan and Ceyhan projects. 12


Contracting


Selected Clients

13

TURKISH

• TCK, Turkish State Highways Authority

• EÜAŞ, Electricity Production Co.

• PETKİM, Petrochemical Co.

• TÜPRAŞ, Turkish Petroleum Refineries Co.

• BOTAŞ, Petroleum Pipeline Co.

• Ministry of Public Works and Settlement

• Several Municipalities

• TPAO, Turkish Petroleum Co.

• DSI, State Hydraulic Works

• Turkish State Railways Authority

• Turkish Olympic Committee

• Ministry of Energy and Natural Resources

• DLH, State Harbours and Airports Authority

INTERNATIONAL

SAUDI ARABIA IRAQ

• Saudi Aramco

• Ma’aden

• Petro Rabigh

• WCC, Saline Water Conversion Co.

• Min. of Agriculture & Water

• Min. of Municipal & Rural Affairs

• SCOP, State Company for Oil Projects

• North Refineries Company

QATAR

• Qatar Petroleum

• QAPCO

• Ashghal (Public Works Authority)

KUWAIT MOROCCO

• Ministry of Public Works

• KOC, Kuwait Oil Co.

• OCP, State Phospate Company

• SAMIR, Refinery Company of Morocco

OTHER

• AGIP

• Shell

• BP

• BTC, Baku Tbilisi Ceyhan Pipeline Co.

• Uzbekneftegas, Uzbekistan

• Kazakturkmunay, Kazakhstan

• CPC, Caspian Pipeline Consortium, Kazakhstan

• AIOC (Azerbaijan Operating Co. led by BP)

• BP Exploration Shah Deniz Ltd.

• Georgian Pipeline Co.

• MMRA, Libya (Man Made River Authority)

• SOCAR (State Oil Company of Azerbaijan)


Contracting


Selected International Project Partners

14

• Alstom, France

• AMEC, UK

• Babcock Borsig Power, Germany

• Chiyoda Corp., Japan

• Fluor, USA

• Foster Wheeler, Italy

• Hitachi Plant Technologies, Japan

• Impregilo, Italy

• Itochu, Japan

• JGC, Japan

• John Brown, UK

• Lurgi GmBH, Germany

• Marubeni Corp., Japan

• Mitsubishi Corp., Japan

• Mitsui Corp. Japan

• Mitsubishi Heavy Ind., Japan

• NEC, Japan

• Nippon Signal, Japan

• Parsons Inc., USA

• Petrofac, UAE

• SAE, France

• Saipem, Snamprogetti, Italy

• Siemens, Germany

• Skoda Export, Czech Republic

• Sofregaz, France

• Spie Batignolles, France

• Technip, Germany

• Technicas Reunidas, Spain

• Toyo Engineering, Japan

• Uhde GmbH, Germany

• Vinci, France

• Williams Brothers, USA


Contracting


Overview

• With its sister companies Tekfen Engineering, Tekfen Manufacturing,

Hallesche Mitteldeutsche Bau-AG (HMB) (Germany), AZFEN (Azerbaijan)

and strategic partnerships, Tekfen is positioned to extend its services to

a large range of clients on three continents.

• The Group has one of the largest equipment fleets in Turkey with a

replacement value of US$ 275 million.

• As of 2018-end, Tekfen Contracting Group had an active portfolio of US$

2.7 billion, 90% of which were outside of Turkey, located in 6 different

countries.

• In 2018, Tekfen added 5 new projects to its backlog with a total size of

US$ 895 million. These projects are in Saudi Arabia (US$ 589 million),

Qatar (US$ 9 million), Turkey (US$ 59 million), Kazakhstan (US$ 234

million) and in Georgia (US$ 3 million).

Overview

15


Contracting


Total Manpower: 18.417*

TURKEY:8.414 ABROAD:10.003

Manpower

Azerbaijan 2.782

Morocco 1

Qatar 2.979

Russia 1Iraq 244 Saudi Arabia 1.369

Kazakhstan 2.624

Turkmenistan 3

16* As of 2018-end including subcontractors.


Contracting


Manpower Structure

17

NATIONALITY

TURKISH 12,294 66.75%

AZERBEIJANI 1,205 6.54%

TURKMEN 3 0.02%

MOROCCAN 8 0.04%

INDIAN 292 1.59%

NEPALESE 115 0.62%

PHILIPIN 86 0.47%

ETHIOPIAN 8 0.04%

KAZAKH 44 0.24%

IRAQI 4 0.02%

SAUDI 275 1.49%

OTHERS 4,083 22.17%

TOTAL 18,417 100%

DISIPLINE&DIVISION

ENGINEERS 1,034 5.61%

MANAGEMENT 203 1.10%

PROCUREMENT 43 0.23%

ADMIN 244 1.32%

QA&QC/HSE 199 1.08%

TECHNICIANS 92 0.50%

FOREMEN 318 1.73%

OPERATORS&DRIVERS 790 4.29%

CIVIL WORKS 1,272 6.91%

ELECTRICAL WORKS 239 1.30%

PIPE&WELDING WORKS 1,416 7.69%

MECHANICAL WORKS 973 5.28%

STEEL&ERECTION

WORKS230 1.25%

OTHERS 3,391 18.41%

SUBCONTRACTORS 7,973 43.29%

TOTAL 18,417 100%


Contracting


Areas of Expertise

18

BASIC

ENGINEERING*

DETAILED

ENGINEERING

PROCUREMENT FABRICATION CONSTRUCTION START UP

E

E + P

E + P + F

E + P + C

PMS

* In pipelines, tank farms / terminals, motorways, bridges, tunnels, infrastructure and civil projects.

E : Engineering F : Fabrication

P : Procurement PMS : Project Management Services

C : Construction


Contracting


RefineriesPetrochemical

Complexes

Oil & Gas

PlatformsPower Plants

BridgesMotorways Stadiums High-Rises

Pipelines

TunnelsRailwaysJetties

Underground

Gas StoragesStorage

Tanks

Business Areas

19


Contracting


569 484 484 368 237 159 111 72 75 34 36555

561 474754 572 782 578

266

175 201 242167 264

1,5351,350

1,6681,257 1,225

1,794

1,449 1,589

2,5241,619

1,139

2,8882,841

2,480

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Turkey Abroad

• Thanks to its increasing investments in oil and gas producing countries, starting from 2005, the

backlog of Tekfen Contracting Group abroad increased significantly.

Backlog (US$ million) - 31 December 2018

Backlog Growth

20

744 685 726535 501

1,694

1,461

1,740

1,333 1,259

1,830

2,1502,005

2,998

2,373

1,711

3,6703,419

2,747


Contracting


Backlog (as of 31 December 2018)

21

* Not included in the consolidated revenues. Consolidated using equity method.

** The contracted work for this project will start as soon as the investor companies complete the project financing.

Project Location

Expected End

Dates

Current Contract

Price Tekfen Portion

Revenue Based

Completion Rate

Remaining Amount

(US$)

TANAP Project Lot3 Turkey 25/12/2017 608,777,899 $ 608,777,899 $ 99.3% 4,013,110

TANAP Compressor and Metering Stations Turkey 31/05/2019 464,387,823 $ 464,387,823 $ 88.3% 54,140,661

Afyon - Uşak Rapid Train Project and Afyon Direct Pass Infrastructure Turkey 30/06/2020 253,118,440 $ 126,559,220 $ 31.9% 86,237,001

Recieving Terminal Civil Works Turkey 15/10/2019 136,866,050 $ 136,866,050 $ 50.7% 67,429,151

TÜPRAŞ İzmit Refinery Maintenance & Repair Works Turkey 31/12/2019 18,923,569 $ 18,923,569 $ 24.8% 14,221,659

TÜPRAŞ İzmit Refinery Fluid Catalytic Cracker Revamp Installation Works Turkey 12/03/2021 40,104,913 $ 40,104,913 $ 0.0% 40,104,913

TURKEY TOTAL 266,146,495

Ministry of Tax Tower Azerbaijan 13/04/2021 156,396,082 $ 156,396,082 $ 30.3% 109,037,952

AZFEN Projects* Azerbaijan 19/03/2021 705,273,554 $ 282,109,422 $ 85.4% 41,118,593

AZERBAIJAN TOTAL 150,156,545

Jeddah Janbu Pipeline S. Arabia 28/02/2021 299,654,285 $ 299,654,285 $ 34.3% 196,825,886

Haradh Satellite Gas Compression Plants' Pipelines S. Arabia 09/08/2021 589,278,769 $ 589,278,769 $ 0.0% 589,278,769

SAUDI ARABIA TOTAL 786,104,654

Al Khor Expressway Qatar 25/03/2020 2,251,445,294 $ 2,251,445,294 $ 65.6% 774,954,507

Main Works for the Fifth Precinct Stadium Qatar 05/12/2019 343,663,227 $ 171,831,614 $ 20.3% 137,004,567

Design and Construct Service Road Enhancement to North Road Corridor Qatar 25/02/2019 978,264,270 $ 978,264,270 $ 98.4% 15,211,553

East Industrial Road Qatar 04/12/2019 199,895,018 $ 199,895,018 $ 20.2% 159,584,812

Design & Build of Celebration Pavilion Extension of the Building at Al Bidda Park Qatar 31/10/2018 9,409,794 $ 9,409,794 $ 99.8% 22,944

QATAR TOTAL 1,086,778,383

Installation Services for Dehydrators & Desalters Iraq 30/09/2019 32,288,573 $ 32,288,573 $ 27.7% 23,333,596

IRAQ TOTAL 23,333,596

Construction Compound Main Works Kazakhstan 29/01/2019 73,781,669 $ 73,781,669 $ 93.5% 4,830,734

FGP Temporary Construction Facilities Kazakhstan 03/08/2019 114,495,423 $ 114,495,423 $ 65.3% 39,672,970

FGP Wellhead Pressure Management Project Kazakhstan 24/04/2022 451,378,848 $ 451,378,848 $ 14.4% 386,347,071

KAZAKHSTAN TOTAL 430,850,775

Provision of Repair Services & Rehabilitation Works for BTC Georgia, SCPC & GPC Georgia 19/03/2021 19,500,000 $ 3,250,000 $ 0.0% 3,250,000

GEORGIA TOTAL 3,250,000

TOTAL 2,746,620,448


Contracting


Ongoing projects (as of 31 December 2018)

Backlog Breakdown by Regions

Region US$ (million)

Middle East 1,896

Turkey 266

Caspian Region 584

Total 2,747

Backlog Breakdown by Project Types

Project Type US$ (million)

Transportation 1,036

Pipeline 848

Buildings 291

Industrial Facilities 573

Total 2,747

22

Middle East69%

Turkey10%

Caspian Region

21%

Industrial Facilities

21%

Buildings11%

Transportation38%

Pipelines31%


Contracting


Overview

• Currently, the tenders entered into typically have a contract size of over

US$ 200 million, compared to the US$ 25 million threshold prior to 2005.

• Tekfen bids for 30 - 35 projects per year and the average success rate for

winning tenders is around 10%.

• The bid price is calculated as cost plus a mark-up, which is between 15-

25%.

• Average project completion period is approximately 2.5 years.

• Tax rates that the Group is exposed to in the countries it operates vary

between 0-35%.

23


Contracting


• Founded in 1984.

• The Largest Engineering Company in Turkey, in Oil & Gas

• Undertakes the engineering (E) of EPC projects and the detailed engineering in other projects

of Tekfen Contracting Group.

• Has experience on a wide spectrum of projects, with an emphasis on pipelines, industrial,

process plants and motorways.

• The company employs a professional staff of over 170 engineers who utilize advanced

software in the preparation of all design and contract documents.

• Also serves non-group clients, mainly the General Directorate of Highways and

municipalities. Non-group clients generate around 35% of Tekfen Engineering’s business

volume.

• Disciplines:

Tekfen Engineering Co., Inc.

Engineering

24

Laser

Scaning

Process Plant &

Piping

Static &

Rotating

Equipment

Instrumen-

tation &

Control

Electrical &

Telecom-

munication

Architec-

tural

Structural Transpor-

tation


Contracting


• Founded in 1970.

• Specialized mainly in engineering, manufacturing and construction of high

quality process and storage equipment related to petroleum, petrochemical,

chemical and fertilizer industries and power plants, such as cylindrical and

spherical storage tanks, heat exchangers, pressure vessels, process columns,

waste heat recovery boilers and pressurized piping for industrial plants to

respond to Tekfen’s increasing steel production and fabrication needs.

• 188 skilled manpower.

Tekfen Manufacturing Co., Inc.

25

• Design and fabrication are carried out according to International Codes

such as ASME, API, TEMA, AD-2000, EN 13445, BS etc. and the company

is qualified to work with all sorts of carbon steel materials (including high

tensile quenched and tempered), clad carbon steels, all types of stainless

steels, non-ferrous materials such as Monel, Brass, Aluminum etc.

•Heavy manufacturing facility in Derince (Kocaeli), Turkey.

• Kuwait, Saudi Arabia, Iraq, Iran, Pakistan, Libya, Syria, Jordan, Oman,

Lebanon, Israel, Northern Cyprus, Morocco, Tunisia, Senegal, Sudan,

Russia, Kazakhstan, Turkmenistan and Azerbaijan are the countries that

the company exports.

• Spread on an area of 48,500 m2, of which 18,000 m2 is covered.


Contracting


• Spread on an area of 160,000 m2, of which 30,000 m2

is covered,

• Annual capacity of 30,000 tons,

• 650 skilled manpower,

• Production space consisting of 5 fabrication shops,

• An open material handling storage area,

• A welding school,

• Materials divisions

• Social facility quarter.

• The plant is equipped with full shot blast,

• CNC flame cutting and coping facilities,

• Sawing and drilling lines,

• Automated beam welding line

• Training Center & Welding School

Ceyhan Steel Structure Fabrication Plant Bayil Steel Construction Manufacturing Plant

• Tekfen’s manufacturing facility in Baku, Azerbaijan

• Spread on an area of 290,000 m2, of which 26,000 m2 is

covered,

• Capable of meeting exceptionally high standards of the oil

and gas projects

• Equipped with high end machinery and advanced

technology to serve manufacturing of Topsides and

Modules

• Easy access is provided to the plant through the main

highway, being at a distance of 7 km from the city center of

Baku, materials and equipment can also be delivered to the

quaysides of the facility by the sea.

Fabrication Plants

26


Contracting


Revenues and EBITDA Margin

Revenues (TRYmn) and EBITDA Margin (%)

• Expected project-end EBITDA margin on project basis varies from 10% to 25% at the beginning of

each project.

27

1,0291,319 1,339 1,111

1,8642,395 2,327

2,7682,153

2,824

4,862

9,006

11,649

7.2%

8.3%

11.0%

13.2%

9.3%

5.9%

-4.3% -1.4%

7.6%

9.3%

11.3%

10.7%

11.5%

-6.0%

-1.0%

4.0%

9.0%

14.0%

19.0%

-1,000

1,000

3,000

5,000

7,000

9,000

11,000

13,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E

Revenue EBITDA Margin


Contracting


TURKEY – TRANS ANATOLIAN NATURAL GAS PIPELINE PROJECT (TANAP) COMPRESSOR AND METERING STATIONS

Project scope includes engineering, procurement, construction, erection, testing, pre-commissioning & commissioning,

initial start and support for performance testing phases of the compressor and metering stations of the Trans-Anatolian

Natural Gas Pipeline (TANAP) Project at four different locations in Turkey; MS1 and CS1 at Ardahan, CS5, CS5 Off-take and

MS2 at Eskişehir, MS3 at Çanakkale and MS4 at Edirne. Duration of work is 39 months from commencement date of the

contract and the contact value is US$ 457 million.

Ongoing projects – Turkey

28


Contracting


Ongoing projects - Turkey

27

TANAP Project (Lot 3)


Contracting


AZERBAIJAN – THE NEW MANAGEMENT OFFICE OF MINISTRY OF TAXATION OF AZERBAIJAN

One of the newest landmark of Baku, The New Management Office of Ministry of Taxation of Azerbaijan will be constructed

by Tekfen Construction. Five monumental cube shaped high rise tower has 33 floors with 169 meter height. High tech office

building has 44,300 square meter gross floor area with unique shaped 35,400 m2 façade. Design of The New Management

Office of Ministry of Taxation of Azerbaijan also contains recreation areas, conference halls, helipad, underground car park

and special floor gardens together with the auditorium building. Steel structure, reinforced concrete and facade works of

the project will be completed in 24 months with the contact value of US$ 94 million.

Ongoing projects – Caspian Region

30


Contracting


Ongoing projects – Caspian Region

31


Contracting


Ongoing projects - Middle East

32

SAUDI ARABIA- JANBU-JEDDAH PIPELINE

The purpose of the project is to efficiently meet the Kingdom’s refined product demands in Makkah Province. The turnkey

construction of the 333 Km long 20" gasoline and 24" jet fuel pipeline system (YNJ-1 & YNJ-2) with ultimate capacity of 577

MBD (240 MBD & 337 MBD respectively) is planned to deliver products from the proposed Yanbu’ Distribution Hub to the

existing and expanded North Jeddah Bulk Plant facility. The pipelines shall use a dual pipeline arrangement to deliver two

grades of gasoline (PG91 & PG95), ULSD and Jet A-1 refined products to an upgraded and expanded NJBP. The project will

be completed in 47 months with the contact value of US$ 299 million.


Contracting



33

QATAR – DESIGN AND BUILD OF AL KHOR EXSPRESSWAY

The Project comprises the Design and Build of a 34 Km long expressway b/w Al Khor and Doha with a total of

10 lanes in both directions (five traffic lanes in each direction) and various junctions, viaducts, and over-

passes and under-passes. Project size is ~US$ 2.1 billion. The project will be completed in 36 months. The

carriageways shall be divided by a central median which includes provision for the future Qatar Rail Metro

Red Line. A network of service roads is required adjacent to the main alignment which connects the upgrade

to existing and future developments. A shared pedestrian/ cycle way shall be constructed along the length of

one side of the expressway in addition to a separate fast cycle track adjacent to the service roads on the other

side of the expressway. The Works also include Landscape, Hardscape and Artscaping.


Contracting



34


Contracting


North Road

Qatar


QATAR – AL THUMAMA STADIUM (THE FIFTH PRECINCT)

Tekfen Construction & Al Jaber Engineering Joint Venture has been awarded by the Qatar Supreme

Committee for Delivery and Legacy for the turnkey delivery of the engineering and construction work of the

"Main Works for the Fifth Precinct Stadium" Project, where games the 2022 Qatar World Cup will be held. The

Fifth Precinct Stadium will be one of the eight stadiums which will host matches in the 2022 FIFA World Cup

Qatar (the Tournament); the stadium will be the host venue for the group, knockout and quarter-final matches.

The Stadium shall be designed and constructed to meet the Federation lnternationale de Football Association

(FIFA) standards in Tournament mode and will house minimum 40.000 Net spectators during the Tournament.

After the World Cup, Stadium will be converted into a legacy mode as an approximately 20.000 seat stadium

and a sport city for local football clubs, complemented by other mixed uses.

The cost of the project will be US$ 342.5 million (~US$ 171.2 million Tekfen share) and will be completed in 33

months.

35


Contracting



36


Contracting


Tekfen Contracting Group consistently works on the following in line with the goals of its

Strategic Plan:

• Existing and new projects will be undertaken within the framework of the adopted

business principles and occupational health, safety and environment (HSE) policies.

Maximizing work quality and maintaining accident-free operations in line with occupational

safety standards are the main priorities.

• The company will continue to focus on projects that emphasize the EPC concept and it will

continue to improve its competency in this area. Engineering and procurement functions

will be key areas to be improved. To achieve this, required personnel recruitments are done

both in our engineering company and in procurement departments.

• The emphasis will be on increasing business volume in countries where operations

continue. The goal is to secure new projects that at least maintain the current level of

revenue generated from projects in these countries.

• Addition of new subcontractors to our existing subcontractor portfolio and increasing the

share of South East Asia origined personnel in our total work force are considered as

strategy implementations.

• Activities geared towards increasing efficiency and profitability will continue.

• All requirements to preserve Tekfen’s strong and prestigious brand image in existing

markets will be met.

Strategic Direction

37


Agri Industry

Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting

Agri Industry


Agri Industry


The pioneer in Turkey’s agricultural industry

• Symbol of “quality” and “trust”

• In business since 1981 under TOROS brand name

• Over 1,000 employees

Overview

39


Agri Industry


2013 2014 2015 2016 2017 2018

TR

Y M

illio

nTerminal

Agri

589

16%

84%

• Active in fertilizer, seed, seedling and sapling production and distribution, as well as marine terminal

services and free zone operations

• Consolidated turnover of TRY 2,965 million as of 2018

• Significant player in port activities, providing services to third parties in two ports strategically located

at the Eastern Mediterranean and the Black Sea Coast

Turnover Breakdown EBITDA Breakdown

40

Overview

2013 2014 2015 2016 2017 2018

TR

Y M

illio

n

Terminal

Agri

2,240

8%

92%

2,9655%

95%

1,423

1,626 1,659

1,851

95% 95% 93%93%

5%

5% 7%

7%468

117

248

145

290

74%

74% 83%71%

50%

26%

26%

17%

50%

29%


Agri Industry


Fertilizers

• Supplying every type of fertilizer Turkish farmers

need

• Market leader since 1986

• Vast dealers network with over 800 dealers

• Marketing and Sales Team located in 7 regions

• Constant contact with dealers and farmers

• Timely delivery to dealers via 8 warehouses

41


Agri Industry


Regional Offices & Other Units

İSTANBUL

Head Office

İZMİR

REGIONAL OFFICE

Warehouse

Grain Silos

Seed Processing

ANKARA

REGIONAL OFFICE

Warehouse

SAMSUN

REGIONAL OFFICE

Warehouse

ANTALYA

REGIONAL OFFICE

Seedling Nurseries

WarehouseKONYA

Warehouse

ADANA & CEYHAN

REGIONAL OFFICE

Bag Manufacturing Plant

Free Zone

Micropropagation

Warehouse

Grain Silos

Seed Processing

ŞANLIURFA

REGIONAL OFFICE

Warehouse

TEKİRDAĞ

REGIONAL OFFICE

Warehouse

42

NEVŞEHİR

Underground

Potato Seed

Warehouse


Agri Industry


• Nitrogen fertilizers:

• AN26 (CAN) - Calcium Ammonium Nitrate

• AN33 - Ammonium Nitrate

• AS - Ammonium Sulphate

• Urea

• Phosphate fertilizers:

• TSP - Triple Super Phosphate

• SSP - Single Super Phosphate

• Potash fertilizers:

• PS - Potassium Sulphate

Fertilizers – Product Types

43

• Compound fertilizers (NPs and NPKs):

• DAP - Di-Ammonium Phosphate

• NP 20.20

• NP 20.20+Zn

• NPK 15.15.15

• NPK 15.15.15+Zn

• Special grade compound fertilizers:

• NPK 25.5.10

• NPK 15.15.15 Gold

• NPK 10.20.20


Agri Industry


2018 Total Sales: 1.84 million tons

Fertilizers – Sales

44

2017 Total Sales: 1.95 million tons

AN26 25%

AN33 5%

AS 6%Urea 13%

DAP 11%

NP/NPK (Compound)

40%AN26 22%

AN33 8%

AS 5%Urea 12%

DAP 12%

NP/NPK (Compound)

39%


Agri Industry


Consumption and Toros Sales Volume/Market share Turkey’s Total Production and Toros’ Share

Turkey’s Total Imports and Toros’ Share

Fertilizers – Leader in Turkish Fertilizer Market

45

10%

8%6%

11%

8%

10%

0%

2%

4%

6%

8%

10%

12%

0

1,000

2,000

3,000

4,000

5,000

2011 2012 2013 2014 2015 2016 2017 2018

1000 t

on

s

Total Imports Toros Imports Toros Share* 2017 market data hasn’t been disclosed

** 2018 market data hasn’t been disclosed

*

37%

39%39%

42%

37%

39%

41%

28%

31%

34%

37%

40%

43%

0

1,000

2,000

3,000

4,000

5,000

2011 2012 2013 2014 2015 2016 2017 2018

1000 t

on

s

Total Production Toros Production Toros Share

31%31%

28%

31%

27%

26%

26%

16%

19%

22%

25%

28%

31%

34%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2011 2012 2013 2014 2015 2016 2017 2018

1000 t

on

s

Consumption Toros Sales Market Share

****

**


Agri Industry


• Three fertilizer plants located in Mersin, Ceyhan and Samsun

• Total installed capacity is 2 million tpa of which 1,85 million tpa is in operation

• Leading producer with the largest share in Turkey’s total installed production capacity

Fertilizers – Production Facilities

SAMSUN PLANT

MERSIN PLANT CEYHAN PLANT

46


Agri Industry


CEYHAN PLANT

NPK and DAP production

CAPACITY

2 x 330,000 tpa NPK

or

330,000 tpa NPK & 200,000 tpa DAP

SAMSUN PLANT

NPK and DAP production

CAPACITY

300,000 tpa NPK

227,000 tpa DAP

PHOSPHORIC ACID CAPACITY

210,000 tpa (100% P2O5)

SULPHURIC ACID CAPACITY

726,000 tpa (100% H2SO4)

MERSIN PLANT

AN and CAN production

CAPACITY

660,000 tpa CAN

NITRIC ACID CAPACITY

405,000 tpa

Fertilizers – Production Capacity

47


Agri Industry


Fertilizers - Integration Investments

48

Place: Samsun Plant

Scope: Sulphuric and phosphoric acid investments,

NPK revamp investment

Amount: $335 million

Period: 2013-2015

Aim:

✓ Ensuring raw material supply security

✓ Self sufficiency in acid production

✓ Decreasing production costs


Agri Industry


Fertilizers – DAP/NP/NPK Production Diagram

*Either Urea or AS is added as nitrogen (N) source in addition to ammonia.

**Potash is added as potassium (K) source for NPKs.

SULPHURIC

ACID

PHOSPHATE

ROCK

PHOSPHORIC

ACID

AMMONIA

UREA/AS*DAP/NP/NPK

POTASH**

49

• In Samsun Plant, Toros produces sulphuric and phosphoric acid for all its DAP/NPK units.

SULPHUR


Agri Industry


In Mersin Plant, Toros produces nitric acid for its CAN/AN unit.

NITRIC ACIDAIR

WATER

AMMONIUM

NITRATE

AMMONIA AMMONIUM

NITRATE

CALCIUM

AMMONIUM

NITRATE

LIME

STONE

Fertilizers – CAN/AN Production Diagram

50


Agri Industry


Procurement - Breakdown by Products

Fertilizers – Production and Imports

51

Production - Breakdown by Products

47%52%

49%

55%

50% 47%

19% 18% 19% 17%

31%27%

23% 20% 24%

16%

5%

10%11% 11% 8%12%

13% 14%

2013: 1.41 mn tons 2014: 1.49 mn tons 2015: 1.37 mn tons 2016: 1.30 mn tons 2017: 1.58 mn tons 2018: 1.60 mn tons

Compund(NP/NPK)

AN 26(CAN)

AN33

DAP

50%

40%

77%

62%

50%

63%

33%

21% 20%22%

46%37%

15%

27%

3%0% 0% 0%0%

12%

0%

16%

4%0%2% 0% 0% 0% 0% 0%

2013: 189K tons 2014: 360K tons 2015: 232K tons 2016: 365K tons 2017: 558K tons 2018: 439K tons

Urea

AS

AN33

DAP

Other

*Due to the ban of AN33 in the local market, the production was minimized just for exporting purpose.

*


Agri Industry


Marine Terminal Services

52

✓ Providing loading/unloading and storage

services to third parties

✓ Ceyhan Port:

• Turkey’s 7th largest dry bulk & general

cargo port

• One of the most important transit

terminals for petroleum products in

Eastern Mediterranean

✓ Strong brand name associated with high-

quality customer service, technical know-how

and seasoned employees


Agri Industry


• 1 jetty with 2 berths handling 14,000 tons of dry bulk cargo per day

• Closed storage area capacity: 210,000 tons

• Open storage area capacity: 300,000 tons


SAMSUN PORT

CEYHAN PORT

53

• 2 jetties with 8 berths handling 60,000 tpd of dry bulk cargo and 20,000 tpd

of liquid bulk

• Closed storage area capacity: 300,000 tons

• Open storage area capacity: 1,000,000 tons

• Tank farm capacity: 195,000 m3


Agri Industry



54

Dry&Liquid Bulk and General Cargo*

Handled Quantity (mn tons)Petroleum Products

Occupancy Rate

*Does not include petroleum products’ handling volume

5.36

4.48

5.606.00

7.00

4.18

2013 2014 2015 2016 2017 2018

40%

55%60%

70%77%

42%

2013 2014 2015 2016 2017 2018


Agri Industry


Vegetable Seedlings:

• Operating under Hishtil-Toros Seedlings brandname

• A 50-50 JV with Hishtil Holdings since 1999

• Producing high quality grafted and standard

vegetable seedlings for the growing local and

foreign markets

• Nurseries located in Antalya and Adana

Field Crop Seeds:

• Cooperating with two state research institutes to produce and

distribute certain types of wheat

• Wheat seed breeding program receiving support from

TÜBİTAK (The Scientific and Technological Research Council

of Turkey)

Specialty Fertilizers:

• Leading brand in specialty fertilizers in Turkey since 2000

• Procurement from globally known leading producers

• Blending soluble NPKs for the high growth local market

Complementary Products and Services

55


Agri Industry


Micropropagation:

• Targets to meet the sector's demand for high quality,

high-yield and disease-free homogenous seed,

saplings and young plants

• First local successful producer of potato seeds on

commercial scale by using micropropagation

techniques in Turkey

• Serving to a market which is historically dominated

by imported potato seeds

Complementary Products and Services

56

Free zone operations:

• Founding partner and operator of the largest free

zone in Turkey

• 4.5 million m2 of area

• Strategically located in Ceyhan region which is

becoming the energy hub for Turkey


Agri Industry


CEYHAN PLANT

✓ ISO 14001:2004 Environment

Management

✓ ISO 9001:2000 Quality

Management

✓ OHSAS 18001:1999 Occupational

Health and Safety Management

SAMSUN PLANT

✓ Emission Certificate

MERSIN PLANT

✓ Catalytic reduction system

to keep NOX emission in

exhaust gases released to

atmosphere from nitric acid

unit under 200 ppm

Environmentally Conscious Production

57


Agri Industry



58

Supporting farmers;

• Educational seminars and training

programs to improve agricultural

productivity and product quality

Raising awareness;

• Supporting UNFPA’s “Improving health conditions of

seasonal workers in agriculture” program in Turkey

• “Wheat” documentary based on field trials done by

Toros throughout Turkey

• Sponsorships for scientific research and academic

seminars on agriculture and fertilizers

• “Balanced Fertilization with Right Fertilizers” Project

with the support of the Ministry of Food, Agriculture

and Livestock

• “Toprak Ana” (Mother Earth) documentary about

agricultural production in Turkey

Supporting local communities;

• Sponsoring sporting activities in Samsun and

Mersin

• Toros Primary School and Toros Secondary School

in Adana, and Toros Tarım Necati Akçağlılar High

School in Samsun


Agri Industry


Alanar Fruit & Alara Sapling

59

Current Situation

✓ Total area of ownership 3,632.9 decare and leased area of

1,108 decare, including 204,408 trees

✓ Produces and sells cherry, black fig, apricot,

pomegranate, nectarine, Japanese plum, persimmon,

chestnut

✓ 25% of the total sales are from production while, 75% of

the sales are imports

✓ Share of exports in total sales is around 90%

✓ Main export markets are Germany, England and Sweden

✓ 10.4% EBITDA margin in 2016

Targets After Tekfen Partnership

✓ New land investments of 6,011 da between 2017-2020

✓ Four new plant investments in Alasehir, Aydin, Malatya

and Bursa and various equipment investments

✓ Sales volume of 19,000 tons in 2022

✓ Share of sales from production to remain within the

range of 25-30%

✓ Targeting TRY225mn revenues and 16% EBITDA

margin in 2022

✓ Share of exports in total sales to remain at 85% level

Products are exported more than 30 countries


Agri Industry


Tekfen Agri - 2019 Expectations

60

0

20

0.0%

8.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

0

5

10

15

20

25

2018 2019E

EBITDA (TRYmn) & EBITDA margin (%)

EBITDA EBITDA Margin

-2

5

-1.3%

2.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

-4

-2

0

2

4

6

2018 2019E

Net profit (TRYmn) & Net margin (%)

Net Profit Net Margin

158

251

0

50

100

150

200

250

300

2018 2019E

Revenues (TRYmn)

Revenues Linear (Revenues)

59%


Real Estate Development

Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting

Real Estate




Te

kfe

n R

ea

l E

sta

te D

eve

lop

me

nt

Gro

up

Tekfen Real Estate Development Investment and Trade

Co., Inc

Business Line: Investment, development, project

management, asset management

Tekfen Tourism and Facility Management Co., Inc

Business Line: Facility Management

Florya Real Estate Inv. Const. Tourism Co., Inc

Business Line : Investment, development

Business Structure

62




Completed Projects

• First Mixed-use dev. in Turkey

• 180,000 m² Construction Area

• 34 680 m² GLA Shopping Mall

• 2 Office Towers (14 & 17 storey)

• Residential Tower (24 Storey)

• Class A+ Office Building

• Located in Istanbul

• 82.000 m² Construction Area

• 33.000 m² office GLA

• Residential Project

• Located in city center of Istanbul

• 24.000 m² Construction Area

• 18.500 m² Sellable Area

• 59 Residential Units

• Boutique Residence in aTangerine

Garden

• Located in Bodrum, Muğla

• 27,500 m² Land Size

• 2,350 m² Sellable area (18 units)

• Office Development Project

• Located in Istanbul

• 14,235 m² Land Size


• 32,000 m² office GLA

1994 2003 2006 2008

2009 2010

• Class A+ Office Building

• Located in Levent, Istanbul

• 15,300 m² construction area

• 7,970 m² office GLA

2012

• Residential Project located in Şişli,

Istanbul

• 83 units (residences, home-offices, retail)

• 2.500 m² Land size


2012

Akmerkez Tekfen Tower Taksim Residences Yalıkavak Homes

Müşkülüm Homes Levent Office Kağıthane Officepark Bomonti Apartments

• Summer House & Boutique Hotel

Project located in Bodrum, Muğla

• 60,000 m² Land, 12,500 m²

Sellable Area

• 40 Room Boutique Hotel

• 86 Residential Units

63




ProjectProject

Function

Start Date of

Project

End Date of

Project

Estimated Revenue

(million)

Total/Tekfen Share

Esenyurt Project Residential May.13 Dec.17 661 TRY

Topkapı Project Residential Apr.16 ** **

Topkapı Project – II Residential Sep. 17 *** ***

Izmir Project Mixed Use Jan.16 **** ****

Berlin Project***** Residential Dec.18 Dec.21 57.5 Euro

Projects

64

Residential Office Retail

Esenyurt Project 180.155 - 2.595

Topkapi Project 45.062 - 2.118

Topkapi Project II 44.467 - -

Izmir Project* - - -

Berlin Project 4,500 - -

* The start date of the project is the signing date of the purchase date / contract date of the property, the construction start date is not

shown in the table.

** Tekfen has 50% share in the project. The feasibility of the project is being studied in line with the new areas and the new concept plan

considering the changing market conditions. New business plan will be examined by evaluating the 2019 real estate market overview.

*** Project end date will be set according to construction start date. The project strategy is being developed in line with the current market

conditions to start sales and construction process. The feasibility of the project is being studied accordingly.

**** Construction schedule will be set according to completion of the zoning process. The feasibility study of the project will be revised in

line with the current market conditions.

***** Tekfen’s share




Ongoing Projects

Transaction Overview:

• Developed on 56.800 m² land which was purchased in May

2013

• Project includes 1.424 residential and 25 retail units

Total Project Size – (Revenues, TRY millions): 703

Tekfen Share : 100%

Project Summary:

• Total Sellable Space:

Housing: 180.155 m², Retail: 2.595 m²

• Construction Period- Start: Q2/2013 Complete: Q4/2017

Investment Rationale:

• Project property is in a sought-after area (Esenyurt)

because of its developing transportation infrastructure, the

city’s growth dynamics, and its situation on the

intersection between the E5 highway and TEM motorway

HEP Istanbul Project

65

1,226 residential units having a total area of 144,345 m² and 3 retail units

with a 770 m² gross area have been sold as of December 31st 2018, Total

sales amount is TRY446,22 million and 1,204 units (including retail units)

have been delivered to the new owners, 1,054 owners are settled.




Ongoing Projects


• A total of 13,793 m2 net land area

• Following the obtained construction permit, the sales of the

residential project supported by retail units is planned to be

started and the project is planned to be completed within 24

months.

Total Project Size – (Revenues, TRY millions): 460

Tekfen Share : 100%

Project Summary:

• Total Sellable Space:

Housing: 45.062 m², Retail: 2.118 m²

• Construction Period Start: - Complete: *


• High accessibility, near E-5 highway and intersection point for

tram, light metro and metrobus

• Rapid transformation of light industrial area to residential units

supported by the zoning plans

• Residential demand is increased after operational of the

universities and hospitals,

Topkapı Housing Project

66

Zeytinburnu Municipality requested revisions for the

project with the new board decision of the municipality,

after the project’s construction permit were obtained, For

this reason, the new plan was submitted to the

municipality, The building license approval process has

been granted in 2018 Q4, As a result of current economic

developments, the project is re-evaluated in line with

market conditions and sales price / manufacturing

balance, It is planned to develop a strategy plan in line

with the current market conditions and the construction

and sales process will be started accordingly, Sales office

construction work was suspended.

* Project schedule will be set according to the construction start date. In this period the feasibility of the project will be revised

in line with market conditions.




Ongoing Projects


• A revenue sharing agreement was signed on 28/09/2017 todevelop a residential project on the neighboring plots totaling20k m² area of the existing Tekfen Topkapı project, currentlythere is an active textile production on the plots.

• The construction permit will be obtained after zoning planrevision, and accordingly the sales will be started with theconstruction works and the project is planned to be completedwithin 24 months.

Total Project Tekfen Share – (Revenues, TRY millions): 254

Project Summary:

• Total Sellable Space: Housing: 44,467 m²

• Construction Period Start: - Complete: *


• High accessibility, near E-5 highway and intersection point fortram, light metro and metrobus lines.

• Rapid transformation of light industrial area to residential unitssupported by the zoning plans.

• Residential demand has increased after new universities andhospitals became operational.

• The project will be the second phase of existing Topkapı Project.It is aimed to develop a competitive project in terms of salesprice with the gained infrastructure and experience.

Topkapı Housing Project II

67

Revision works for the 1/5000 zoning plans have been

started, Approval of related institutions were taken for

approval process of Istanbul Metropolitan Municipality

(IMM), The plan revision proposal was submitted to IMM

approval and it is aimed to be put on the agenda of the

board meeting to be held in November, The approval of

1/5000 and 1/1000 revision zoning plans are targeted to be

completed in 2019 Q1, Considering the impact of the

current economic conditions on the real estate sector, the

development strategy of the project is evaluated by Tekfen

management,

(*) Construction schedule will be set according to completion of the zoning process. The feasibility study of the project will be

revised in line with the current market conditions.




Ongoing Projects


• 50%-50% partnership with Renaissance Shopping Malls

• The largest mixed use project in Izmir

Total Project Size – (Revenues, TRY millions): (*)

Tekfen Share : 50 %

Project Summary:

• Total Sellable/Leasable area (GLA) (*)

• Est. Contruction period: Q1/2016 – *

• Landmark project for the city of Izmir


• Location within the new planned CBD of Izmir

• High accesibility and visibility through the main arteries

Izmir Mixed Use

68* The feasibility of the project is being studied in line with the new areas and the new concept plan considering the changing market

conditions. New business plan will be examined by evaluating the 2019 real estate market overview.




Overview:

➢ On 21 December 2018, the Company has become the main

shareholder with the purchase of 80% share in the renovation

project of two historical buildings located in Dahlem district of

Germany / Berlin,

➢In 2019, the preliminary design works of the project will be

completed and the renovation license will be renewed, It is aimed to

complete the construction of the buildings in about 24 months,

Total Tekfen Project Share : 57,5 million Euro *

Project Summary :

➢ Total Sellable Housing Area: 4,500 m²

➢ Estimated Project Period - Start : Q4/2018, Completion:Q4/2021

Investment Rationale :

➢ Dahlem is located in the district of Steglitz-Zehlendorf, It is an elite

region with many low-rise and detached luxury houses with garden

and consular buildings, It is also one of the important academic

research centers of the city.

➢In 2017, the total demand for housing in Berlin was 41,240, while

the housing supply was 30,716, The ratio of housing demand to

housing supply is 1,69, There are 857 apartments in this supply, The

district of Steglitz-Zehlendorf is the district with the highest number

of apartment supply with 114 apartments.

Ongoing Projects

69

Berlin Project

The Company's shares are allocated on behalf of

HMB, a subsidiary of Tekfen Holding in

Germany, The project consists of two historical

buildings with a total 4,500 sqm of leasable /

sellable area, totaling 1,500 sqm and 3,000 sqm,

built in 1907, In addition, there is a parking lot for

31 vehicles in the underground car park, which

is currently used as common in the plot where

the project is located, The historical buildings

have a renewal license, and the buildings will be

renewed and converted into a total of 42 luxury

housing projects to be sold and rented,




• Facility Management of Tekfen Tower, Taksim Residences, Tekfen

Offices, Yalıkavak Tekfen Houses, Gumusluk Muskulum Ciftligi,

Kagithane Office Park, Levent Office and S-Cafe are directed and

operated by Tekfen Tourism & Facility Management Co., Inc. under

the brand name of Tekfen Services.

• Facility Management for the ongoing and the potential projects of

Tekfen Real Estate Development Group is planned to be operated by

Tekfen Services.

• Tekfen Services’ professional facility management improves the

values of Real Estate Development Group projects.

Tekfen Services - Facility Management

70




• Tekfen Holding earns rental income from the offices it owns in Akmerkez

and Tekfen Tower.

• Tekfen Tower has 33.000 m² rentable area, of which, 27% is used by Group

Companies, while the rest is rented to various institutions.

• Total rental income from Tekfen Tower amounted to USD 12 million in

2018.

Assets

71




• The concept of “environmental friendly / sustainable building” is becoming more

and more important everyday as the awareness and consciousness for energy use

and environment increases. Tekfen Real Estate Group, as in its all other projects, is

aiming LEED-CS (core&shell) of The U.S. Green Building Association (USGBC) for

its new projects , Tekfen-OZ Kagithane OfisPark & Tekfen Bomonti Apartments.

• In accordance with this policy, Tekfen-OZ LeventOfis - completed in 2010 - is the

first project of the Group rewarded with LEED-CS Gold Certificate.

• The projects aim to achieve LEED certification by introducing sustainable solution

to design elements such as encouraging public transportation, collection and

reusing of storm water and grey water within the system, decreasing overall water

consumption, efficiency in energy consumption with shell design and decreasing

the load of the cooling system via plantation integrated within the facade system.


72


www.tekfen.com.tr

Tekfen Group


Financial Highlights 74

Net Cash Position 75

Capital Expenditures 76

Disclaimer 77

Contact Info 78

Appendix

73


www.tekfen.com.tr

Tekfen Group


Financial Highlights – Segmental Breakdown

74

TRY MillionRevenues 2017 % in Total 2018 % in Total 2019E % in TotalContracting 4,862 65% 9,006 74% 11,649 73%Agri Industry 2,240 30% 2,965 24% 4,102 26%Real Estate 351 5% 134 1% 158 1%Other 34 0% 42 0% 50 0%Total 7,487 100% 12,147 100% 15,960 100%

EBITDA 2017 Margin 2018 Margin 2019E MarginContracting 548 11.30% 959 10.70% 1340 11.50%Agri Industry 468 20.90% 589 19.90% 650 15.80%Real Estate 4 1.10% -3 -2.30% 14 9.10%Other -16 -45.30% -44 -104.50% -102 -203.90%Total 1,005 13.40% 1,501 12.40% 1,902 11.90%

Net Income 2017 Margin 2018 Margin 2019E MarginContracting 391 8.00% 741 8.20% 990 8.50%Agri Industry 347 15.50% 464 15.70% 616 15.00%Real Estate -14 -4.00% -25 -18.40% 8 4.80%Other 47 137.60% 221 521.50% -70 -141.10%Total 771 10.30% 1,402 11.50% 1,544 9.70%


www.tekfen.com.tr

Tekfen Group


331

2,136

3,596

2016 2017 2018 -475

227

-220

800

1,142

586

-393

801

2190

672

-95

828

Contracting Agri Industry Real Estate Other

2016 2017 2018

Tekfen Group

Net Cash Position*

Tekfen Group Net Cash Position (TRY million) Net Cash Position by segment (TRY million)

75

* Net of financial liabilities, cash, cash equivalents and deposits.

** TRY1,196 million advance payment collected in Qatar for the ongoing Al Khor Motorway Project is included.

*** TRY636 million advance payment collected in Qatar for the ongoing Al Khor Motorway Project and TRY326 million advance

payment from ongoing Haradh Project in Saudi Arabia is included,

****

***

***


www.tekfen.com.tr

Tekfen Group


Tekfen Group

Capital Expenditures

Million TRY

Contracting Agri Industry Real Estate Other Total

2011 78.4 11.4 0.3 6.4 96.5

2012 142.6 49.9 0.3 0.4 193.3

2013 24.7 158.4 0.4 0.6 184.1

2014 27.0 371.2 2.6 0.7 401.5

2015 17.3 275.0 1.9 1.9 296.1

2016 45.7 120.0 2.6 1.4 169.7

2017 167.9 61.1 0.6 3.1 232.7

2018 186.2 71.5 0.6 3.6 261.9

Capital Expenditures (Segmental Breakdown, Million TRY)

76

97193 184

402296

170233

262

2011 2012 2013 2014 2015 2016 2017 2018


www.tekfen.com.tr

Tekfen Group


Tekfen Holding A.S. (the “Company”) has prepared this presentation (the “Presentation”) in

order to provide investors with general information about the Company. The contents of this

Presentation is based on public information and on data provided by the Company

management. Neither the Company nor any of its directors, managers or employees nor any

other person shall have any liability whatsoever for any loss arising from use of this

presentation. This Presentation does not constitute an offer or invitation to purchase the

securities of the Company. Investors and prospective investors interested in the securities of

the Company are required to conduct their own independent investigations and appraisal of

the business, financial condition of the Company and the nature of its securities. Except for

the historical information contained herein, the statements made in this Presentation with

respect to the Company’s plans, strategies, beliefs and other prospective matters are

forward-looking statements that involve risk and uncertainty that are not under the

Company’s control which may cause actual results to differ materially from those anticipated.

Except where otherwise indicated, this Presentation speaks as of the date hereof. We

undertake no duty to update or revise any forward looking statements, whether as a result of

new information, future events or otherwise.

Disclaimer

77


www.tekfen.com.tr

Tekfen Group


• For General Questions and Requests for Reports:

Çağlar Gülveren, CFA - Investor Relations and Corporate Governance

Director, Tekfen Group of Companies

e-mail: [email protected] / [email protected]

Tel: +90 212 359 34 20

Can Çimenser - Investor Relations Assistant Manager,

Tekfen Group of Companies

e-mail: [email protected] / [email protected]

Tel: +90 212 359 38 09

Contact Information

78


Documents

Tekfen Holding Investor Presentation March 2019 · Tekfen Group Tekfen Group Contracting Agri Industry Real Estate Other Strategic focus •Tekfen Holding is devoted to the motto