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Tekfen Holding Investor Presentation May 2021
Tekfen GroupAt a glance
Tekfen Group Engineering
& ContractingChemical
Industry
Agricultural
Productionwww.tekfen.com.tr
1956 Feyyaz Berker,
Nihat Gökyiğit and
Necati Akçağlılar formed
an engineering
consulting company
1957 The three partners
establish 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
2019 Acquisition of 10%
share of SOCAR Polimer
Acquisition of Gonen
Yenilenebilir Enerji
2020 RUSFEN
established2
Services Investment
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
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
Ownership structure
3
Free Float, 47.8%
Gökyiğit, 22.2%
Berker, 22.6%
Others, 0.8%
Akçağlılar, 6.7%
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
At a glance
Main Operations
Construction
Engineering
Fabrication
Real Estate
Developement
Main Companies
Tekfen Construction
Tekfen Engineering
Tekfen
Manufacturing &
Engineering
GATE Construction
Engineering &
Contracting
Share in consolidated
revenues*: 60.5%
Main Operations
Fertilizer production
and distribution
Main Companies
Toros Agricultural
Industry & Trade
CFS Petrochemicals
Gonen Energy
Agroport
Chemical
Industry
Share in consolidated
revenues*: 33.2%
Main Operations
Terminal services
Free zone
operations
Insurance
Fuel-motel activities
Main Companies
Tekfen Insurance
Toros-Adana
Yumurtalık Free
Zone
Tekfen Tourism
Toros Shipping
Investment
Share in consolidated
revenues*: 1.7%
* As of 31.12.2020 4
Main Operations
Seed, sapling and
seedling production
and distribution
Agricultural
production and trade
Main Companies
Tekfen Agriculture
and Trade
Alanar Fruit & Alanar
Sapling
Hishtil-Toros
Seedling Industry &
Trade
Main Operations
Venture Capital
Petrochemical
Real Estate
Investment
Rental Activities
Main Companies
Tekfen Ventures
Tekfen Holding
Socar Polymer
Berlin Light
Dortmund
ServicesAgricultural
Production
Share in consolidated
revenues*: 4.2%Share in consolidated
revenues*: 0.4%
Revenues: TRY7.1bn
EBITDA: -TRY344mnRevenues: TRY3.9bn
EBITDA: TRY736mn
Revenues: TRY201mn
EBITDA: -TRY28mnRevenues: TRY486mn
EBITDA: TRY176mn
Revenues: TRY48mn
EBITDA: -TRY81mn
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
Tekfen’s Sustainability Vision
➢ Tekfen’s sustainability vision is conceptually embodied in the group’s
“Bridging Prosperity” motto. The primary goals of all economic activity
are to increase social wellbeing and to improve the quality of life of the
individuals who make up a society. Through its operations, Tekfen
serves as a bridge that gives individuals access to the essential
elements of material comfort while also paving the way to a sustainable
future.
➢ The goal of Tekfen’s “Bridging Prosperity” vision is to be able to respond
sustainably and flexibly to the changes implied by the redefinition of its
business practices which driven by the Megatrends such as
Demographic Change, Rise of Technology, and Climate
Change/Resource Scarcity.
➢ Tekfen’s vision is also to develop a sustainable business model that
embraces its entire value-creation chain and thereby to help contribute
to the fulfillment of the United Nations’ Sustainable Development Goals.
5
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
➢ Tekfen Holding’s publicly-traded shares are included in the Istanbul Stock Exchange’s BIST 30 index.
Owing to the company’s successful corporate governance, environment, and social-welfare
performance, Tekfen Holding’s shares have been included in the BIST Sustainability Index since
2016.
➢ Tekfen Holding joined the Carbon Disclosure Project’s Climate Change Program in 2017 and Water
Security Program in 2018. As a successful start Tekfen included in “B” list on both programme at first
years. Tekfen has succeeded in increasing its scores since then and included in the CDP “A-” list for
each programme in 2019.
➢ Tekfen Holding has been a signatory to the 10 principles of the United Nations (UN) Global Compact
which cover the areas of human rights, labour, the environment and anti-corruption since 2018. We
are also a cooperate member of the World Business Council for Sustainable Development’s local
network and partner since 2017.
➢ Tekfen Holding has published its first Sustainability Report in accordance with the Global Reporting
Initiative (GRI) standards in 2019. Please visit our website for more information about our
sustainability strategy, management and performance issues.
Tekfen’s Sustainability Vision
6
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
Tekfen Group
Human resources
Tekfen Holding has a dynamic and professional workforce of
over 17.000 employees.
Number of employees (breakdown by segment)
7
2013 2014 2015 2016 2017 2018 2019
13,61411,988 11,359 12,691
16,69617,539
15,222
1,033
1,020 1,0581,102
1,1121,140
1,398867
870817
502
488450
47415,514
13,87813,234
14,295
18,29619,180
17,094
Contracting Agri Industry Other Total
ENGINEERING &
CONTRACTING
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
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 69 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 2019.
✓ Employing over 2500 permanent technical and administrative staff and with an extensive selection of new and well-
maintained equipment and machinery
✓ Over 365 projects with a total amount of approx. US$30 billion completed.
✓ Successfully completed approx. US$18 billion worth of projects abroad.
✓ The Group has broken records for working hours without LTI (lost time incident) in many projects.
✓ Currently, the tenders entered into typically have a contract size of over US$ 200 million, compared to the US$ 25 million
threshold prior to 2005.
✓ Tekfen bids for 50 projects per year and the average success rate for winning tenders is around 10%.
✓ 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%.
9
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Group
EPC Turnkey Delivery
➢ EPC (also commissioning, start-up,
operational support & training)
➢ EPC-F
➢ EPCM
Design &
Engineering
Turnkey
Construction
➢ Engineering
➢ Owner’s Engineer
➢ Procurement Services
➢ EPCM
➢ Job orders
➢ Erection Supervision
➢ Design& Fabrication
Manufacturing of
Process & Storage
Equipment
➢ Lump Sum Turnkey
➢ Construction
➢ Contract
➢ Real Estate Development
Export Finance
& Procurement
GATE
Kazakstan
AZFEN
Azerbaijan
CTS
Azerbaijan
10
➢ Procurement Services
➢ EPC-F
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Selected International Project Partners
ABB, UK Flour, USAMitsubishi Corp.,
JapanTechnip, France
Air Liquide,
France
General Electric,
USA
Parsons Inc.,
USA
Tecnicas
Reunidas, Spain
Alstom, FranceILF Consulting,
AustriaPetrofac, UAE
Toyo Eng.,
Japan
Wood (formerly
Amec Foster
Wheeler, UK)
JGC, Japan Saipem, ItalyUhde GmBH,
Germany
Atlas Copco,
SwedenKBR, USA
Salini Impregilo,
ItalyUOP, USA
Babcock Borsig
Power, GermanyLinde, Germany
Siemens,
GermanyVinci, France
Bechtel, USAMarubeni Corp.,
Japan
Sofregaz, France Williams Brot.,
USA
11
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Selected Clients
TURKEY SAUDI ARABIA QATAR AZERBAIJAN KAZAKHSTAN KUWAIT
TÜPRAŞ (Turkish
Petroleum
Refineries
Corporation)
Saudi Aramco
ASHGHAL,
Ministry of Public
Works
BP Exploration TengizchevroilKOC, Kuwait Oil
Company
BOTAŞ (Petroleum
Pipeline
Corporation)
Ma’aden, Saudi
Arabian MiningUhde GmbH SOCAR AGIP KCO
Ministry of Public
Works
Baku Tbilisi
Ceyhan Pipeline
Co.
Ministry of
Agriculture and
Water
QAPCO, Qatar
Petrochemical Co.
AIOC, Azerbaijan
International
Operating Company
Shell IRAQ
TANAP (Trans
Anatolian National
Gas Pipeline Co.)
Ministry of
Municipal and
Rural Affairs
QP, Qatar
Petroleum
Ministry of Taxes of
Azerbaijan RepublicKazMunayGas
SCOP, State
Company for Oil
Projects
Turkish State
RailwaysPetro Rabigh
Qatar Private
Engineering OfficeAzerigaz JSC GEORGIA
NRC, North
Refineries Company
Toros
Agri-IndustrySadara Chemical U.A.E. MOROCCO
Georgian Pipeline
Co.
ROO (Rumaila
Operating
Organization)
General Directorate
of Highways
SWCC, Saline
Water ConversionADCO (ADNOC)
Autoroutes of
Morocco
Caspian Pipeline
Consortium OMAN
TOTAL BRAZIL TURKMENISTANOCP, Groupe
Cherifien Des
PhosphatesUZBEKISTAN
PDO (Petroleum
Development
Oman)
Maire Tecnimont Petrobras Türkmengaz SAMIR Uzbekneftegas
12
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Total Manpower: 16.567*
TURKEY: 2.212 ABROAD: 14.355
Manpower
Azerbaijan 3,577
Morocco 5
Qatar 4,077
Russia 6
Iraq 281 Saudi Arabia 3,766
Kazakhstan 2,639
Turkmenistan 3
Cezayir 1
13* As of 2019-end including subcontractors.
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Areas of Expertise
15
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
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Manpower Structure
14
NATIONALITY
TURKISH 10,366 62.57%
AZERBEIJANI 1,100 6.64%
TURKMEN 3 0.02%
MOROCCAN 11 0.07%
INDIAN 264 1.59%
NEPALESE 105 0.63%
PHILIPIN 72 0.43%
ETHIOPIAN 7 0.04%
KAZAKH 98 0.59%
IRAQI 5 0.03%
SAUDI 453 2.73%
OTHERS 4,083 24.65%
TOTAL 16,567 100.00%
DISIPLINE & DIVISION
ENGINEERS 445 2.69%
MANAGEMENT 222 1.34%
PROCUREMENT 91 0.55%
ADMIN 148 0.89%
QA&QC/HSE 113 0.68%
TECHNICIANS 24 0.14%
FOREMEN 246 1.48%
OPERATORS&DRIVERS 362 2.19%
CIVIL WORKS 183 1.10%
ELECTRICAL WORKS 287 1.73%
PIPE&WELDING WORKS 337 2.03%
MECHANICAL WORKS 751 4.53%
STEEL&ERECTION WORKS 178 1.07%
OTHERS 4725 28.52%
SUBCONTRACTORS 8,455 51.04%
TOTAL 16,567 100.00%
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Business Areas
Refineries Oil & Gas
PlatformsPipelines
Petrochemical
ComplexesPower Plants Storage
Tanks
Stadiums High-Rises Metro &
Railways
Tunnels
Gas Compressor
& Metering
Stations
Oil & Gas Equip.
Manufacturing
Real EstateMarine
Terminals &
Jetties
BridgesMotorways
16
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
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 end-2019, Tekfen Contracting Group had an active portfolio of
US$ 1.7 billion, 91% of which were outside of Turkey, located in 7
different countries.
Overview
17
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
569 484 484 368 237 159 111 72 75 34 36
555561 474
754572
782578
266 163
175 201 242167
264
1,5351,350
1,668
1,257 1,225
1,794
1,449 1,589
2,5241,619
1,139
2,888
2,841
2,480
1,552
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 2019
Backlog Growth
18
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
3,670
3,419
2,747
1,715
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Backlog (as of 31 December 2019)
19
* 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 LocationExpected End
Dates
Current Contract
PriceTekfen Portion
Revenue Based
Completion
Rate
Remaining Amount
(US$)
Provision of Civil / Structural Construction, Fabrication, Construction Services for BTC
Turkey Turkey31/12/2020 28,532,406 $ 28,532,406 $ 77.1% 6,520,400
TANAP Compressor and Metering Stations Turkey 31/10/2019 609,244,332 $ 609,244,332 $ 98.9% 6,699,777
Afyon - Uşak Rapid Train Project and Afyon Direct Pass Infrastructure Turkey 22/05/2020 227,262,900 $ 113,631,450 $ 35.8% 72,901,277
TÜPRAŞ İzmit Refinery Maintenance & Repair Works Turkey 28/02/2022 60,280,830 $ 60,280,830 $ 35.4% 38,935,731
TÜPRAŞ İzmit Refinery Fluid Catalytic Cracker Revamp Installation Works Turkey 19/05/2021 40,104,913 $ 40,104,913 $ 5.8% 37,762,265
TURKEY TOTAL 162,819,449
Ministry of Tax Tower Azerbaijan 30/04/2021 156,833,780 $ 156,833,780 $ 59.1% 64,121,549
AZFEN Projects* Azerbaijan 01/04/2022 767,404,415 $ 306,961,766 $ 30.8% 212,304,100
AZERBAIJAN TOTAL 276,425,649
Jeddah Janbu Pipeline S. Arabia 15/10/2020 299,960,951 $ 299,960,951 $ 81.4% 55,753,945
Haradh Satellite Gas Compression Plants' Pipelines S. Arabia 08/08/2021 612,198,426 $ 612,198,426 $ 18.9% 496,735,760
SAUDI ARABIA TOTAL 552,489,705
Al Khor Expressway Qatar 25/03/2020 2,245,955,468 $ 2,245,955,468 $ 97.2% 62,172,580
Main Works for the Fifth Precinct Stadium Qatar 15/09/2020 346,484,640 $ 173,242,320 $ 62.2% 65,455,794
Design and Construct Service Road Enhancement to North Road Corridor Qatar 11/03/2020 979,337,362 $ 979,337,362 $ 99.8% 2,429,919
East Industrial Road Qatar 10/02/2020 175,193,935 $ 175,193,935 $ 79.8% 35,473,409
QATAR TOTAL 165,531,702
Installation Services for Dehydrators & Desalters Iraq 31/08/2020 63,883,343 $ 63,883,343 $ 56.0% 28,139,069
IRAQ TOTAL 28,139,069
FGP Temporary Construction Facilities Kazakhstan 26/03/2020 115,270,925 $ 115,270,925 $ 96.0% 4,590,640
FGP Wellhead Pressure Management Project Kazakhstan 24/04/2022 469,250,816 $ 469,250,816 $ 42.4% 270,310,810
KAZAKHSTAN TOTAL 274,901,449
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
Kharampurskiy Field-PSJC Gazprom External Transport Pipeline Russia 21/05/2021 251,519,747 $ 251,519,747 $ 0.0% 251,519,747
RUSSIA TOTAL 251,519,747
TOTAL 1,715,076,769
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Ongoing projects (as of 31 December 2019)
Backlog Breakdown by Regions
Region US$ (million)
Middle East 746
Turkey 163
Caspian Region 806
Total 1,715
Backlog Breakdown by Project Types
Project Type US$ (million)
Transportation 173
Pipeline 820
Buildings 134
Industrial Facilities 587
Total 1,715
20
Middle East44%
Turkey9%
Caspian Region47%
Industrial Facilities 34%
Buildings 8%Transportation10%
Pipelines48%
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
❖ 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 520 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, some private industrial companies
and municipalities. Non-group clients generate around 35% of Tekfen Engineering’s business volume.
Disciplines:
Tekfen Engineering Co., Inc.
Engineering
21
Laser
ScaningProcess Plant &
PipingStatic &
Rotating
Equipment
Instrumen-
tation &
Control
Electrical &
Telecom-
munication
Architec-
tural
Structural Transpor-
tation
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
▪ 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.
▪ 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, Nigeria, UK, France,
Russia, Kazakhstan, Turkmenistan and Azerbaijan are the countries that the
company exports pressure vessels.
▪ Spread on an area of 48,500 m2, of which 18,000 m2 is covered.
Tekfen Manufacturing Co., Inc.
22
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
✓ 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
23
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
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.
24
1,029 1,319 1,339 1,1111,864
2,395 2,3272,768
2,1532,824
4,862
9,009
10,539
8,922
7.2%
8.3%
11.0%
13.2%
9.3%
5.9%
-4.3%-1.4%
7.6%
9.3%
11.3%
10.7%
13.7%
0.8%
-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
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E
Revenue EBITDA Margin
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
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
25
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Ongoing projects – Caspian Region
Ministry of Taxation Overall View Ministry of Taxation Overall View Ministry of Taxation Overall View
26Facade FacadeMinistry of Taxation Overall View
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Ongoing projects - Middle East
27
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.
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
Ongoing projects - Middle East
28
SAUDI ARABIA- HARADH & HAWIYAH FIELD SATELLITE GAS COMPRESSION SaGCP PIPELINES PROJECT
Saudi Aramco is installing gas compression facilities at Haradh & Hawiyah Saudi Arabia under the Southern Area Energy
Efficiency Program. The Program in Southern Area provides for improving and sustaining gas production from Haradh and
Hawiyah fields by reducing choke pressure at the wellhead to 300 pounds per square inch gauge (psig). The program will
extend plateau life at the same production rates for both fields for the next 20 years. The program will also provide for boosting
the production by around 1.3 billion standard cubic feet per day supplementing sales gas and condensate production.
As part of the Program, the Satellite GCP Pipelines Project will be constructed in the vicinity of the Saudi Aramco Haradh Field
near to the Haradh Gas Plant which is located in the Southern Area of the Eastern Province of Saudi Arabia. Project includes a
combination of Greenfield / Brownfield work within a large and remote geographic operating area.
Tekfen Construction and Installation Co. Inc.,has signed an agreement with Saudi Aramco for the construction works of the
Haradh Gas Increment Program – Satellite Gas Compression Plants Pipelines, Saudi Arabia. The project will be completed in
33 months with the contact value of US$ 590 million.
Engineering & Contracting
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Ongoing projects - Middle East
29
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.
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Ongoing projects - Middle East
Interchange D
Interchange A
Interchange E
Interchange B
Interchange F
Interchange C
Interchange G Interchange G1 Interchange H 30
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
North Road
Qatar
Ongoing projects - Middle East
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.
31
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
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Ongoing projects - Middle East
Façade Works
Stadium 3D Render
Overall Site View
Overall Site View
Roof Cable Works
Roof Cable Works
Stadium Steel Structure Overall Site View Stadium Concrete Structure 32
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
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Real Estate Development - 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
• 55,000 m² Construction Area
• 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
• 17,000 m² Construction Area
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
33
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
ProjectProject
Function
Start Date of
Project*
End Date of
Project
Estimated Revenue
(million)
Total/Tekfen Share
Esenyurt Project Residential May.13 Dec.17 TRY661
Berlin Project* Residential Dec.18 Dec.21 €57.5
Real Estate Development - Projects
34
Residential Office Retail
Esenyurt Project 180.155 - 2.595
Berlin Project 4,500 - -
* Includes 80% Tekfen share.
İzmir project land value (Tekfen Share): USD35mn
Topkapı Project land is located in stocks.
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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): 644
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
35
Engineering & Contracting
Tekfen Group Engineering
& Contractingwww.tekfen.com.trChemical
IndustryAgricultural
ProductionServices Investment
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,
➢After, the completion of preliminary design works of the project, the
renovation license will be renewed. The construction of the buildings is aimed
to be completed 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
36
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 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. The historical
buildings already have a building license. The
design works for 1.500 m2 and 3.000 m2 total of
4.500 m² sellable / leasable area to be converted
into a luxury housing project has been initiated.
Engineering & Contracting
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& Contractingwww.tekfen.com.trChemical
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Tekfen Engineering & 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
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
Chemical
Industry
Chemical Industry
Chemical
Industrywww.tekfen.com.trTekfen Group Engineering &
Contracting
Agricultural
ProductionServices Investment
✓ Symbol of “quality” and “trust”
✓ In business since 1981 under TOROS brand name
✓ Almost 1,000 employees
✓ Supplying every type of fertilizer Turkish farmers need
✓ Market leader since 1986
✓ Vast dealers network with over 1,200 dealers
✓ Marketing and Sales Team located in 7 regions
✓ Constant contact with dealers and farmers
✓ Timely delivery to dealers via 8 warehouses
Overview
39
Chemical Industry
Chemical
Industrywww.tekfen.com.trTekfen Group Engineering &
Contracting
Agricultural
ProductionServices Investment
87
206
73
204
348
496
460
2013 2014 2015 2016 2017 2018 2019
TR
Y M
illio
n
Turnover EBITDA Breakdown
40
Overview
1,3541,541
1,5361,715
2,069
2,664
3,439
2013 2014 2015 2016 2017 2018 2019
TR
Y M
illio
n
→ Active in fertilizer production and distribution
→ Chemical industry turnover of TRY 3,439 million and EBITDA of TRY 460 million as of 2019
‘’ Data since 2019 are consolidated turnover figures of agricultural industry group. ‘’ Data since 2019 are consolidated EBITDA figures of agricultural industry group.
Chemical Industry
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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
Warehouse
KONYA
Warehouse
ADANA & CEYHAN
REGIONAL OFFICE
Bag Manufacturing Plant
Free Zone
Micropropagation
Warehouse
Grain Silos
Seed Processing
ŞANLIURFA
REGIONAL OFFICE
Warehouse
TEKİRDAĞ
REGIONAL OFFICE
Warehouse
41
NEVŞEHİR
Underground
Potato Seed
Warehouse
Chemical Industry
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Industrywww.tekfen.com.trTekfen Group Engineering &
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Regional Offices & Other Units
UKRAINE COUNTRY
OFFICE
TOROS-AGROPORT
42
Chemical Industry
Chemical
Industrywww.tekfen.com.trTekfen Group Engineering &
Contracting
Agricultural
ProductionServices Investment
➢ Nitrogen fertilizers:
▪ AN26 (CAN) - Calcium Ammonium Nitrate
▪ AN33 - Ammonium Nitrate
▪ AS - Ammonium Sulphate
▪ Urea
➢ Potash fertilizers:
▪ PS - Potassium Sulphate
Fertilizers – Product Types
43
➢ Phospate & 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
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Industrywww.tekfen.com.trTekfen Group Engineering &
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Fertilizers – Sales
44
AN26 22%
AN33 10%
AS 5%
Urea 12%
Ultra Nitrogen 1%DAP 11%
NP/NPK (Compound)
39%
AN26 22%
AN33 8%
AS 5%
Urea 12%DAP 12%
NP/NPK (Compound)
39%
Chemical Industry
Chemical
Industrywww.tekfen.com.trTekfen Group Engineering &
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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 2019
1000 t
on
s
Total Imports Toros Imports Toros Share
• Since 2017, fertilizer import data hasn’t been disclosed.
• 2019 official domestic fertilizer consumption and production data hasn’t been disclosed.
*
37%
39% 39%
42%
37%
39%
41%40%
36%
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 2019
1000 t
on
s
Total Production Toros Production Toros Share
31% 31%
28%
31%27%
26%26%
27% 29%
16%
19%
22%
25%
28%
31%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2011 2012 2013 2014 2015 2016 2017 2018 2019
1000 t
on
s
Consumption Toros Sales Market Share
*
Market Share of Toros by Product Types (2018)
*
38.6%
0.0%
17.0% 15.0%
32.5%35.8%
CAN* AN33 AS Urea DAP Compound
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Industrywww.tekfen.com.trTekfen Group Engineering &
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✓ Three chemical fertilizer plants located in Mersin, Ceyhan and Samsun
✓ One organic/organomineral fertilizer plant located in Balikesir
✓ One water soluable fertilizer plant located in Mersin
✓ 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
46
SAMSUN PLANT
MERSIN PLANT CEYHAN PLANT
GONEN PLANT
Chemical Industry
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Industrywww.tekfen.com.trTekfen Group Engineering &
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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
330,000 tpa NPK
325,000 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
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Industrywww.tekfen.com.trTekfen Group Engineering &
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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
Chemical Industry
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Industrywww.tekfen.com.trTekfen Group Engineering &
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Gonen Plant
➢ %100 subsidiary of Toros Tarım
➢ Established on 55,000 m2 land
➢ Founded in 2011 by Alper and Taner Önoğlu
➢ Installed capacity of 3.62 MW
➢ Annual production capacity of 15,000 tons of solid organic and 10,000 tons of liquid organic fertilizers
➢ The amount of organomineral fertilizers produced by Toros Tarım will reach 35,000 tons per year
➢ Inputs are procured from cattle and poultry farms, agricultural enterprises and food factories in the immediate vicinity
49
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Industrywww.tekfen.com.trTekfen Group Engineering &
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Fertilizers – DAP/NP/NPK Production Diagram
*Urea and/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**
50
➢ In Samsun Plant, Toros produces sulphuric and phosphoric acid for all its DAP/NPK units.
SULPHUR
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✓ In Mersin Plant, Toros produces nitric acid for its CAN/AN unit.
NITRIC ACID
AIR
WATER
AMMONIUM
NITRATE
AMMONIAAMMONIUM
NITRATE
CALCIUM
AMMONIUM
NITRATE
LIME
STONE
Fertilizers – CAN/AN Production Diagram
51
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Procurement - Breakdown by Products
Fertilizers – Production and Imports
52
Production - Breakdown by Products
47%52%
49%
55%
49% 46%51%
19% 18% 19% 17%
31%27%
23%23% 20% 24%
16%
5%
10%12%
0% 0% 0% 0%1% 1%
1%0%
0% 0% 0%0%
1% 1%
11% 11%8%
12% 13% 14% 13%
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 2019: 1.68 mn tons
Compund (NP/NPK) AN 26 (CAN) AN33 Ultra Nitrogen Organomineral DAP
50%
40%
77%
62%
50%
63%68%
33%
21% 20%22%
46%37%
26%
15%
27%
3%0% 0% 0% 0%0%
12%
0%
16%
4%0%
7%2% 0% 0% 0% 0% 0% 0%
2013: 189K tons 2014: 360K tons 2015: 232K tons 2016: 365K tons 2017: 558K tons 2018: 439K tons 2019: 562K tons
Urea AS AN33 DAP Other
*Due to the ban of AN33 in the local market, the production was minimized just for exporting purpose.
*
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Specialty Fertilizers:
➢ Leading brand in specialty fertilizers in Turkey since 2000
➢ Procurement from globally known leading producers
➢ Also, own production facility in Mersin
➢ Blending soluble NPKs for the high growth local market
Complementary Products and Services
53
Chemical Industry
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Industrywww.tekfen.com.trTekfen Group Engineering &
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CEYHAN PLANT
✓ ISO 14001:2015 Environment
Management
✓ ISO 9001:2015 Quality Management
✓ OHSAS 18001:2008 Occupational
Health and Safety Management
SAMSUN PLANT
✓ Emission Certificate
✓ ISO 14001:2015 Environment
Management
✓ ISO 9001:2015 Quality
Management
✓ OHSAS 18001:2008 Occupational
Health and Safety Management
MERSIN PLANT
✓ Catalytic reduction system to
keep NOX emission in exhaust
gases released to atmosphere
from nitric acid unit under 200
ppm
✓ ISO 14001:2015 Environment
Management
✓ ISO 9001:2015 Quality
Management
✓ OHSAS 18001:2008
Occupational Health and Safety
Management
Environmentally Conscious Production
54
Chemical Industry
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Social Responsibility
55
Supporting farmers;
▪ Educational seminars and training programs
through «Farmer Academy» 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
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Product Stewardship
56
✓ In 2018, Toros Tarim became the first Turkish fertilizer producer
who received IFA Protect & Sustain Certificate and distinct group
of 55 producers from 51 countries.
✓ Product Stewardship refers to the industry’s Safety, Health and
Environmental (SHE) management. It takes it beyond factory’s
gates, in cooperation with suppliers, transporters and retailers. In
many respects, it is about putting into place responsible business
management processes across a product's lifecycle.
✓ Toros Tarim is dedicated to put SHE principles at the first place
for all stakeholders.
Agricultural Production
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Industrywww.tekfen.com.trTekfen Group Engineering
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AGRICULTURAL
PRODUCTION
Agricultural Production
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Industrywww.tekfen.com.trTekfen Group Engineering
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Tekfen Agri
63
Tekfen Agri in Brief
✓ Founded in 2017.
✓ 90% of the Alanar Fruit and its affiliated company Alara Nursery was
bought in 2017.
✓ Following an approval of The Ministry of Industry and Technology,
Tekfen Agri Adana Agripark has become the R&D Centre in 2018.
✓ Upon purchasing remaining share of co-founders of Alanar Fruit and
Alanar Nursery, companies were incorporated in Tekfen Agri in 2019.
Alanar Fruit in Brief
✓ Total area of ownership 6,200 decare and leased area of 475
decare, including 204,408 trees
✓ Produces and sells cherry, black fig, apricot, pomegranate,
nectarine, Japanese plum, persimmon, chestnut
✓ 20% of the total sales are from production while, 80% of the sales
are imports
✓ Share of exports in total sales is around 67%
✓ Main export markets are Germany, England and Sweden
Products are exported more than 30 countries
Agricultural Production
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Alanar Fruit & Alanar Sapling
64
Targets After Tekfen Partnership
✓ New land investments of 4,000 da between 2019-2023
✓ Four new plant investments in Alasehir, Aydin, Malatya and
Bursa and various equipment investments
✓ Sales volume of 25,000 tons in 2022
✓ Share of sales from production to remain within the range of
25-30%
✓ Targeting TRY522mn revenues and 20% EBITDA margin in
2023
✓ Share of exports in total sales to be around 90% level
-9
0
-10
4
-3.6%
0.0%
-5.3%
1.4%
-6.5%
-4.5%
-2.5%
-0.5%
1.5%
-15
-10
-5
0
5
10
15
2017 2018 2019 2020E
EBITDA (TRYmn) & EBITDA margin (%)
EBITDA EBITDA Margin
-6-2
-22
-29
-2.4%-1.3%
-10.7%
-9.8% -12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
-40
-30
-20
-10
0
2017 2018 2019 2020E
Net profit (TRYmn) & Net margin (%)
Net Profit Net Margin
34
158
206
294
0
50
100
150
200
250
300
350
2017 2018 2019 2020E
Revenues (TRYmn)
CAGR: 105%
Agricultural Production
Chemical
Industrywww.tekfen.com.trTekfen Group Engineering
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Vegetable Seedlings:
▪ 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)
Tekfen Tarım - Seed & Sapling Activities
60
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
Services
Investment www.tekfen.com.trTekfen Group Engineering
& Contracting
Chemical
Industry
Agricultural
ProductionServices
SERVICES
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Investment www.tekfen.com.trTekfen Group Engineering
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ProductionServices
Marine Terminal Services
62
✓ 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
✓ Significant player in port activities, providing services to
third parties in two ports strategically located at the
Eastern Mediterranean and the Black Sea Coast
Services
Investment www.tekfen.com.trTekfen Group Engineering
& Contracting
Chemical
Industry
Agricultural
ProductionServices
➢ 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
Marine Terminal Services
SAMSUN PORT
CEYHAN PORT
63
➢ 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
Services
Investment www.tekfen.com.trTekfen Group Engineering
& Contracting
Chemical
Industry
Agricultural
ProductionServices
Marine Terminal Services
64
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 4.40
2013 2014 2015 2016 2017 2018 2019
40%
55%60%
70%77%
42%
9%
2013 2014 2015 2016 2017 2018 2019
Services
Investment www.tekfen.com.trTekfen Group Engineering
& Contracting
Chemical
Industry
Agricultural
ProductionServices
Marine Terminal Services
Terminal Revenues & EBITDA & Net Income (TRYmn)
69
85
123
137
171
143 145
30
42
7283
120
93 90
2332
54
67
9182
68
2013 2014 2015 2016 2017 2018 2019
Revenues EBITDA Net Income
65
Services
Investment www.tekfen.com.trTekfen Group Engineering
& Contracting
Chemical
Industry
Agricultural
ProductionServices
Adana Yumurtalık Free Zone (TAYSEB)
➢ Established in 1990
➢ Founding partner and operator of the one of the largest free zones in Turkey
➢ 4.5 million m2 of area and fully installed infrastructure
➢ One of Turkey's biggest free zones today
➢ Strategically located in Ceyhan region which is becoming the energy hub for Turkey
➢ TAYSEB is an attractive venue for manufacturing-based high value-adding industrial investments.
66
Services
Investment www.tekfen.com.trTekfen Group Engineering
& Contracting
Chemical
Industry
Agricultural
ProductionServices
Tekfen Services
✓ 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.
✓ Tekfen Services has generated TRY57.5mn revenues and TRY0.4mn EBITDA in 2019.
67
Services
Investment www.tekfen.com.trTekfen Group Engineering
& Contracting
Chemical
Industry
Agricultural
ProductionServices
Tekfen Insurance
✓Tekfen Insurance started the insurance operations as the agency of La Suisse Insurance in 1982.
✓Tekfen Insurance continues today with the agency in all insurance branches in Turkey and 21 of
the world's leading insurance companies.
✓Tekfen Services has generated TRY14.6mn revenues and TRY8.9mn EBITDA in 2019.
68
Investments
www.tekfen.com.trTekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
INVESTMENTS
Investments
www.tekfen.com.trTekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
Tekfen Tower & Akmerkez
→ 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, 30% is used by Group Companies, while
the rest is rented to various institutions.
→ Total rental income from Tekfen Tower amounted to USD 9 million in 2019.
→ Total rental income from the two offices in Akmerkez is USD540,000 in 2019.
70
Investments
www.tekfen.com.trTekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
Investing in the Future
Series A & B
Strategic Sectors
Category Leaders
Global Focus
$50M
Fund Size
~12Companies
$1-3MInitial
Investment
Fund Structure
Based in New York City, Tekfen Ventures is an early stage venture
fund investing in technologies that will redefine our sectors. As a
leader in our industry, we have the opportunity and responsibility to
help drive the critical innovations they need. Portfolio Companies
Tekfen Ventures
71
Investments
www.tekfen.com.trTekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
SOCAR Polymer
✓ Founded in 2013
✓ 184 kta PP and 120 HDPE kta production capacity
✓ PP and HDPE plants were put into operations in July 2018 and February 2019, respectively
✓ 10% of the shares are owned by Tekfen Holding
✓ Starting in 2020, SOCAR Polymer will be operating at full capacity
✓ Turkey, Azerbaijan, Western and Central Europe and Russia are the target markets
✓ Total investment size is USD820 million
✓ Revenues USD 400 million and EBITDA around USD 200 million expected in 2020 and onwards after
the plants start operating at full capacity
72
Investments
www.tekfen.com.trTekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
Berlin & Dortmund Projects
Dortmund Investment:
✓ On 2 May 2019, an investment in the amount of 3 million Euro with the purchase of 12.58% share
✓ Operation after the partial renovation of the office building built in 1993 located in the city center of
Dortmund / Germany.
✓ The pre-sales agreement was signed on 7 May 2019
✓ Total Estimated Project Size (Tekfen Share) is 4,7 million Euro and leasable Area is 24,611 sqm
✓ Total Estimated Project Start – 2019/Q2, Completion: 2023/Q3
✓ The project is located in the city center of Dortmund, opposite side of the opera house, at the
primary location on Hiltropwall Street with high accessibility and visibility.
Berlin Investment:
✓ On 17 June 2019, an investment in the amount of 5 million Euro with the purchase of 11.44% share
✓ Operation of the office building located in Berlin / Germany after the partial renovation. Tekfen
International's share in the project is 6.84%.
✓ The pre-sale agreement was signed on 18 June
✓ Total Estimated Project Size (Tekfen Share) is 9 million Euro and total leasable area is 64,774 sqm
✓ Estimated Project Start – 2019/Q2, Completion: 2024/Q2
✓ The project is located in the area of Wedding in the district of Mitte in Berlin and on the Seestraße,
one of the main axes of the area.
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Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
Financial Highlights 75
Net Cash Position 76
Capital Expenditures 77
Disclaimer 78
Contact Info 79
Appendix
74
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
Financial Highlights – Segmental Breakdown
75‘ Expected average TRY/USD exchange rate is 6.99 for 2020.
(Million TRY) Expectation
Revenue 2019 2020E
Contracting 10,538 8,922
Chemical Industry 3,451 3,774
Agricultural Production 206 294
Services 367 501
Investment 41 48
Total 14,603 13,539
EBITDA 2019 Margin 2020E Margin
Contracting 1,451 13.8% 69 0.8%
Chemical Industry 461 13.4% 605 16.0%
Agricultural Production -11 -5.2% 4 1.4%
Services 112 30.6% 187 37.4%
Investment -93 -225.6% (92) -192.0%
Total 1,921 13.2% 773 5.7%
Net Profit 2019 Margin 2020E Margin
Contracting 991 9.4% (223) -2.5%
Chemical Industry 328 9.5% 369 9.8%
Agricultural Production -22 -10.5% (29) -9.8%
Services 88 24.0% 141 28.3%
Investment 30 72.3% 153 318.5%
Total 1,415 9.7% 412 3.0%
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
331
2,136
3,5963,329
2016 2017 2018 2019-695
227
800749586
801
2,090
672834
1,562
511
1,256
Contracting Agri Industry Other
2016 2017 2018 2019
Tekfen GroupNet Cash Position*
Tekfen Group Net Cash Position (TRY million) Net Cash Position by segment (TRY million)
76
* 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,
**** TRY70 million advance payment collected in Qatar for the ongoing Al Khor Motorway Project and TRY214 million advance payment
from ongoing Haradh Project in Saudi Arabia is included.
**
***
***
****
******
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
Tekfen GroupCapital Expenditures
Capital Expenditures (Segmental Breakdown, Million TRY)
77
2011 2012 2013 2014 2015 2016 2017 2018 2019
78.4
142.6
24.7 27.0 17.345.7
167.9 186.5
107.7
11.4
49.9
158.4
371.2
275.0
120.0
61.171.5
167.0
6.7
0.71.0
3.2
3.8
4.0
3.73.9
17.0
96.5
193.3 184.1
401.5
296.1
169.7
232.7261.9
291.8
Contracting Agri Industry Other Total
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
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
78
www.tekfen.com.tr
Tekfen Group
Tekfen Group Engineering &
ContractingChemical
Industry
Agricultural
ProductionServices Investment
For General Questions and Requests for Reports:
Çağlar Gülveren, CFA
Investor Relations and Corporate Governance Director, Tekfen Group of Companies
E-MAİL: [email protected] / [email protected]
TEL: +90 212 359 34 20
Can Çimenser
Investor Relations Assistant Manager, Tekfen Group of Companies
E-MAİL : [email protected] / [email protected]
TEL : +90 212 359 38 09
Contact Information
79