Tekfen Holding Investor Presentation May 2015Share Classes Single type of shares (one share one vote) Composition of the Board ... core operations, deliver the highest quality products

Tekfen Holding Investor Presentation May 2015

Tekfen Group At 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 partners establish Tekfen Construction Ltd. 1963 Tekfen Industry and Trading Co., Inc. is founded to produce incandescent lamps.

1971 Foundation of Tekfen Holding 1975 Iraq-Turkey pipeline 1976 Mis Süt (Dairy products) enters the market 1978 Tekfen Construction goes overseas

1981 Toros Fertilizer starts production 1987 TAG Highway project 1989 Tekfenbank Acquisition of Akgübre fertitilizer 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

2

2007 Partnership with Eurobank EFG in Tekfenbank Acquisition of EFG Istanbul Securities IPO of Tekfen Holding

2012 Sale of Eurobank Tekfen

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 21%

Berker 21%

Akçağlılar 11%

Others 4%

Free Float 42%

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*: 61,9%

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

Agri Industry


revenues*: 36,3%

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*: 0,6%

Tekfen Insurance

• Authorised agent of 18

insurance and 3 pension

fund companies

Other


revenues*: 1,2%

4 * As of 31.12.2014


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.

• Tekfen Holding aims to grow and become leader in the strategic sectors mentioned

above and does not plan to enter new sectors in the near future.

6


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.

8


www.tekfen.com.tr

Tekfen Group


Tekfen Group

Human resources

Tekfen Holding has a dynamic and

professional workforce of over

13.000 employees.

Number of employees

Contracting Agri Industry Real Estate Other Total

2009 8.877 949 745 795 11.366

2010 10.680 993 569 837 13.079

2011 12.982 995 710 822 15.509

2012 15.546 1.035 419 532 17.532

2013 13.614 1.033 348 519 15.514

2014 11.988 1.020 380 490 13.878

Number of employees (breakdown by segment)

9

11.366

13.079

15.50917.532

15.51413.878

2009 2010 2011 2012 2013 2014


Contracting

Contracting

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

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 101 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 2014.

• Over 350 projects with a total amount of US$12.8 billion completed.

• Successfully completed US$6.6 billion worth of projects abroad.

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

Azerbaijan, Kazakhstan and Ceyhan projects.

11


Contracting


Selected Clients

12

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

13

• 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


PHOTO!

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$ 350 million.

• As of 2014-end, Tekfen Contracting Group had an active portfolio of US$ 2.4

billion, 68% of which were abroad, located in 4 different countries.

• In 2014, the Group undertook a total of US$712 million of new works.

Overview

14


Contracting


Total Manpower: 14.503

TURKEY:5.372 ABROAD:9.131

Manpower

Azerbaijan 6.555

Morocco 131

Qatar 1.866 Turkmenistan

23

Iraq 6 Saudi Arabia

520

Kazakhstan 24 Libya 1

Uzbekistan 5

15


Contracting


DISIPLINE&DIVISION

ENGINEERS 369 2,5%

MANAGEMENT 152 1,0%

PROCUREMENT 32 0,2%

ADMIN 459 3,2%

QA&QC/HSE 264 1,8%

TECHNICIANS 106 0,7%

FOREMEN 318 2,2%

OPERATORS&DRIVERS 810 5,6%

CIVIL WORKS 1.352 9,3%

ELECTRICAL WORKS 420 2,9%

PIPE&WELDING WORKS 1.730 11,9%

MECHANICAL WORKS 920 6,3%

STEEL&ERECTION WORKS 225 1,6%

OTHERS 4.452 30,7%

SUBCONTRACTORS 2.894 20,0%

TOTAL 14.503 100%

NATIONALITY

TURKISH 6.760 46,6%

AZERBEIJANI 4.844 33,4%

TURKMEN 20 0,2%

MOROCCAN 10 0,1%

INDIAN 282 1,9%

NEPALESE 233 1,6%

PHILIPIN 145 1,0%

ETHIOPIAN 264 1,8%

KAZAKH 16 0,1%

IRAQI 4 0,0%

OTHER 1.925 13,3%

TOTAL 14.503 100%

Manpower Structure

16


Contracting


Areas of Expertise

17

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


569 484 484 368 237 159 111 72 75 34 36555 561 474 754

175 201 242 167 264

1.535 1.350 1.668 1.257 1.2251.794

1.449 1.5892.524 1.619

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Abroad Turkey

• 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)

Backlog Growth

18

744 685 726 535 501

1.694 1.461

1.740 1.333 1.259

1.830 2.150

2005

2.998

2.373


Contracting


Backlog (as of 31 December 2014)

19

* Not included in the consolidated revenues.

** Consolidated using equity method.

Project Location

Expected End

Dates

Revenue

Based

Completion

Rate

Remaining

Amount (US$)

Çiftehan-Pozantı Motorway Turkey 30.06.2015 324.784.000 $ 229.459.896 $ 98,1% 4.414.187

Prov. of Pipeline and Facilities Repair Services for BTC Turkey Turkey 10.09.2016 136.200.000 $ 136.200.000 $ 23,6% 104.121.763

Tüpraş - Residuum Upgrading Project of Izmit Refinery Turkey 28.02.2015 543.000.000 $ 543.000.000 $ 97,2% 15.223.120

Toros Tarım Samsun Plant Investment Project* Turkey 01.05.2015 161.244.332 $ 161.244.332 $ 74,4% 41.355.703

Supply and Fabrication of Pancakes of Top Sides Modules Turkey 30.09.2015 47.301.456 $ 47.301.456 $ 57,2% 20.258.802

Supply and Fabrication of Steel Structure Type Pancakes Turkey 28.02.2015 16.980.796 $ 16.980.796 $ 85,0% 2.543.670

Supply of Flare Tower Turkey 30.04.2015 2.224.000 $ 2.224.000 $ 0,0% 2.224.000

TANAP Project Lot3 Turkey 25.12.2017 563.959.000 $ 563.959.000 $ 0,0% 563.959.000

TURKEY TOTAL 754.100.245

New Management Office Project of SOCAR Azerbaijan 28.02.2015 381.943.450 $ 381.943.450 $ 90,3% 36.904.170

Baku Olympic Stadium Additional Completion Works Azerbaijan 30.05.2015 184.856.913 $ 184.856.913 $ 36,3% 117.756.368

Shah Deniz Stage 2 Fabrication of Offsite Facilities Azerbaijan 12.01.2017 262.365.979 $ 262.365.979 $ 14,1% 225.248.870

Shah Deniz Stage 2 Onshore Terminal Facility - Sangachal Terminal Azerbaijan 22.09.2017 349.697.605 $ 349.697.605 $ 10,2% 314.147.658

Baku Olympic Stadium Compound Area Works Azerbaijan 28.02.2015 5.842.415 $ 5.842.415 $ 0,0% 5.842.415

AZFEN Projects** Azerbaijan 1.700.301.900 $ 680.120.760 $ 22,1% 529.488.610

AZERBAIJAN TOTAL 1.229.388.091

Propylene Oxide Process Unit S. Arabia 31.07.2015 161.210.768 $ 161.210.768 $ 72,9% 43.653.553

SAUDI ARABIA TOTAL 43.653.553

OCP Slurry Pipeline Project Khouribga - Jorf Lasfar Morocco 31.07.2014 462.399.073 $ 462.399.073 $ 93,3% 30.828.334

MOROCCO TOTAL 30.828.334

Qatar Primary Routes North Roads Contracts 2&3 Qatar 30.09.2013 780.290.280 $ 780.290.280 $ 99,1% 7.036.777

Additional Work for North Road Project Qatar 30.06.2014 93.000.000 $ 93.000.000 $ 92,6% 6.908.324

Design and Construct Service Road Enhancement to North Road Corridor Qatar 25.06.2016 591.909.930 $ 591.909.930 $ 49,2% 300.871.578

QATAR TOTAL 314.816.679

Rumalia Field Dev. Project Prov. Of Engineering and Project Management Iraq 10.01.2015 196.838.679 $ 196.838.679 $ 99,9% 139.740

IRAQ TOTAL 139.740

TOTAL 2.372.926.642

Current

Contract Price

Tekfen

Portion


Contracting


Ongoing projects (as of 31 December 2014)

Backlog Breakdown by Regions

Region US$ (million)

Caspian Region 1.229

Turkey 754

Middle East 359

North Africa 31

Total 2.373

Backlog Breakdown by Project Types

Project Type US$ (million)

Industrial Facilities 1.169

Pipeline 699

Motorway 319

Buildings 161

Fabrication Works 25

Total 2.373

20

Middle East 15%

North Africa

1%

Turkey 32%

Caspian Region

52%

Industrial Facilities

49%

Buildings 7%

Motorways 13%

Pipelines 29%

Fabrication Works 1%


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%.

21


Contracting


• Founded in 1984.

• 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 100 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.

Tekfen Engineering Co., Inc.

• Disciplines:

• Industrial Plants

• Pipelines and Piping

• Motorways and Highways

• Bridges and Viaducts

• Mass Transit Systems and Railways

• Mass Housing

• Commercial Buildings

• Harbour & Offshore Structures

• Infrastructure

Engineering

22


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.

23

• 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

24


Contracting


Revenues and EBITDA Margin

Revenues (MTRY) and EBITDA Margin (%)

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

each project.

25

1.029

1.319 1.339

1.111

1.864

2.395 2.327

2.768

2.179

7,2%

8,3%

11,0%

13,2%

9,3%

5,9%

-4,3%

-1,4%

6,9%

-6,0%

-1,0%

4,0%

9,0%

14,0%

19,0%

-1.000

-500

0

500

1.000

1.500

2.000

2.500

3.000

2007 2008 2009 2010 2011 2012 2013 2014 2015E

Revenue EBITDA Margin


Contracting


TURKEY – TRANS ANATOLIAN 56’’ NAUTRAL GAS PIPELINE (TANAP) PROJECT

The project scope includes Detail Engineering, partial procurement, construction, installation, testing, pre-commissioning,

providing commissioning assistance and training the client’s personnel.

Project consists of approximately 509 km 56” of pipelines , starting from Yıldızeli (Sivas) to Eskişehir, including 14 Block valve

stations, 2 Pig Stations and other required facilities. Duration of work is 36 months from commencement date of the contract.

Ongoing projects – Turkey

26

509 km


Contracting


AZERBAIJAN – NEW MANAGEMENT OFFICE PROJECT OF SOCAR

Project is for the turnkey construction of SOCAR’s (State Oil Company of

Azerbaijan Republic) new headquarter complex in Baku. Project size, which was

USD 235 million initially, increased to USD 306 million.

Designed by Heerim Architects form South Korea, the two-towered project will

rise from an elongated, canopy-like podium and snake their way skywards.

Curving into each other, the seemingly shorter tower almost looks like its

resting its head on the chest of the taller tower, the taller towers peak slightly

bending over it in a confident, reassuring manner. The towers will have 32

floors, at a height of 173 meters. Covering an area of 12,000 square meters and

providing 100.000 sqm of usage area, the headquarter will mainly house office

space but will also have conference and sports facilities, a guest house and

retail spaces, food outlets to keep the expected 2000 employees in the tower.

Ongoing projects – Caspian Region

27


Contracting


AZERBAIJAN – BAKU OLYMPIC STADIUM

Baku Olympic Stadium Project which is located near the Boyuk Shor

Lake, Baku, Azerbaijan will have a capacity of 68.000 seats. 496.000 m2

total site area, 204.000 m2 gross floor area of the Stadium contains

commercial areas and disabled, public, media, CIP, VIP and VVIP

Sections.

Tekfen Construction has been awarded for completion of the Design and

Build Olympic Stadium Project in Baku , the work has been commenced

after the notice to proceed issued on 27.02.2013, planning the

completion of the Project within a period of 24 months.


28


Contracting


Baku Olympic Stadium


Contracting


OFFSHORE PLATFORMS

The contract signed on between ATA Consortium (AMEC – Tekfen – Azfen) of which Tekfen

is a member and BP Exploration (Shah Deniz) Ltd. comprises fabrication, installation and

delivery of 2 offshore platforms of total weight of 26.442 tonnes, and associated platform

connection bridge. Duration of work is 42 months from commencement date of the

contract.

SANGACHAL TERMINAL

The contract signed on between Tekfen – Azfen Consortium of which Tekfen is a member

and BP Exploration (Shah Deniz) Ltd. comprises construction of Shah Deniz Stage 2

Onshore Terminal Facilities at Sangachal, Baku,Azerbaijan. Scope of work includes

construction and installation of gas and condensate processing facilities, power

generation, storage tanks, utility systems, connections and upgrade works within existing

facilities, control systems, onshore pipelines between caspian sea shore and terminal,

compression facilities. Duration of work is 43 months from commencement date of the

contract.


30

Shah Deniz Stage 2

Tekfen Projects


Contracting



31

Shah Deniz Stage 2 Project Overall Scope


Contracting


Ongoing projects - Middle East

32

QATAR - PRIMARY ROUTES, NORTH ROAD PROJECT PHASE 2 & 3 and

ADDITIONAL WORKS

Tekfen, is awarded by Ashghal, Public Works Authoritry of Qatar; construction

of a 94 km Motorway, namely Primary Routes, North Road Project Phase 2 & 3.

The Main Works comprise two separate sections as described here below:

Contract 2 (Km : 4 + 000 – Km : 37 + 000): Contract “2” starts at Duhail, passing

through sub-urban and rural areas to the North of Doha City, namely Duhail,

Kheessa, Khuraitiyat, Umm Salal Ali, Umm Salal Mohammad. The Contract

includes the Simaisma road link and continues till its end after Al-Khor road

intersection.

Contract 3 (Km : 37 + 000 – Km : 98 + 200): Contract “3” starts near Al Khafaij

area, passing through rural areas, namely North Military Camp, Al Khaaban, Al

Juthay, Fuwairit, Al Ghariya, Athba Al Shamaliyah and Madinat Al Shamal.

QATAR - DESIGN AND CONSTRUCT SERVICE ROAD ENHANCEMENT TO

NORTH ROAD CORRIDOR PROJECT

Awarded by Ashghal, Public Works Authoritry of Qatar, the Project comprises

the Design, Construction and 400 days Maintenance of “Design and Construct

Service Road Enhancement to North Road Corridor Project”.

The scope of the project includes, new Service Roads, Carriageways,

Connection Roads, 96 km Bicycle Path, Flyovers and Bridges, Underpass

Bridges, Pedestrian Bridges, Road Pavement Works, Drainage System,

Guardrails and Concrete Barriers, Fencing, Electrical and Road Lighting Works,

Traffic Signing and Road Marking, Traffic Signalization, Footways, Paving with

Concrete Blocks and Natural Stone, Q-Tel, Qatar Armed Forces and DSSS (Doha

Street Surveillance System) Works, Landscaping & Irrigation System


Contracting


North Road

Qatar


Contracting


Ongoing projects - Middle East

34

SAUDI ARABIA - PROPYLENE OXIDE PROCESS UNIT

Tekfen was awarded the construction of LSPB contract for Propylene Oxide Plant at

Sadara Petrochemical Complex. The scope of work covers all civil works, erection of

prefabricated columns and vessels, installation of electrical and instrumentation including

central control building. Project location is in Jubail, and is part of the SADARA Chemical

Company's petrochemical plant. The works are scheduled to be completed in 30 months

and the project size is US$122,9 million.


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

35


Agri Industry

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

Agri Industry


Agri Industry


The pioneer in Turkey’s agricultural industry

• Sign of “quality” and “trust”

• In business since 1981 under TOROS brand name

• Over 1,000 employees

• Highest employee loyalty in the industry

• Seasoned – well experienced employees

Overview

37


Agri Industry


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

terminal services and free zone operations

• Consolidated turnover of TRY 1,626 million as of 2014

• Leading company in Turkish fertilizer industry with a market share of 31% as of 2014

• 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

38

Overview

2010 2011 2012 2013 2014

Mil

lio

n T

RY

Seed, Seedling andOthers

Terminal Services

Fertilizers88% 89% 90%

5% 6%

6%

90%

5% 5%

6%

1.026

1.209

1.424 1.423

5% 5%

1.626

87%

5%

7%

2010 2011 2012 2013 2014

Mil

lio

n T

RY

Seed, Seedling andOthers

Terminal Services

Fertilizers

72% 73%

19% 21% 9%

6%

81%

13%

6%

147

191

137

117

68%

26%

7%

248

74%

17%

9%


Agri Industry


Fertilizers

• Supplying every type of fertilizer Turkish

farmers need

• Market leader since 1986

• Vast dealers network with over 800 dealers

• Marketing andSales Team located in 7 regions

• Constant contact with dealers and farmers

• Timely delivery to dealers via 8 warehouses

39


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

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

40

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

41

• 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


2014 Total Sales: 1.71 million tons

Fertilizers – Sales

42

2013 Total Sales: 1.64 million tons

NP/NPK (Compound)

42%

AN26 17%

AN33 21%

DAP 10%

Urea 7% AS 3% Other 0,3%

NP/NPK (Compound)

44%

AN26 16%

AN33 20%

DAP 10%

Urea 6%

AS 4%


Agri Industry


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

Turkey’s Total Imports and Toros’ Share

Fertilizers – Leader in Turkish Fertilizer Market

43

35% 31% 30%

28%

31%

0%

5%

10%

15%

20%

25%

30%

35%

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

2010 2011 2012 2013 2014

1,0

00 t

on

s

Consumption Toros Sales Marketshare

42% 37% 39% 39%

42%

0%

10%

20%

30%

40%

50%

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

2010 2011 2012 2013 2014

1,0

00 t

on

s

Total Production Toros Production Toros Share

10% 10%

8%

6%

11%

0%

5%

10%

15%

0

500

1.000

1.500

2.000

2.500

3.000

3.500

2010 2011 2012 2013 2014

1,0

00 t

on

s

Total Imports Toros Imports Toros 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 38% share in Turkey’s total installed production capacity (SPO*)

Fertilizers – Production Facilities

SAMSUN PLANT

MERSIN PLANT

CEYHAN PLANT

* SPO:State Planning Organization 44


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

PLANT I = 80,000 tpa (100% P2O5)

PLANT II = 108,000 tpa (100% P2O5)

MERSIN PLANT

AN and CAN production

CAPACITY

660,000 tpa CAN

NITRIC ACID CAPACITY

405,000 tpa

Fertilizers – Production Capacity

45


Agri Industry


• The scarcity of low-cost raw materials

and high investment costs is a barrier

for a new producer to enter into the

market

• No restrictions on imports

• 7 fertilizer producers with a total

annual production capacity of 5.3

million tpa in 10 plants (SPO*)

Toros 38%

Gübretaş 17%

İgsaş 15%

Bagfaş 12%

Gemlik 8%

Ege 6%

Yıldız 4%

Turkish Fertilizer Industry

Breakdown of Domestic Production Capacities*

* SPO:State Planning Organization 46


Agri Industry


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

NITRIC ACID AIR

WATER

AMMONIUM

NITRATE

AMMONIA AMMONIUM

NITRATE

CALCIUM

AMMONIUM

NITRATE

LIME

STONE

Fertilizers – CAN/AN Production Diagram

47


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**

48

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

• In Ceyhan Plant, phosphoric acid is imported for DAP/NPK units.


Agri Industry


Imports - Breakdown by Products

Fertilizers – Production and Imports

49

Production - Breakdown by Products

48% 46% 47% 47%

52%

23% 25% 21%

19% 18% 13%

18% 21%

23% 19%

16% 11% 11% 11% 11%

2010; 1.45 mntons

2011; 1.39 mntons

2012; 1.42 mntons

2013; 1.41 mntons

2014; 1.49 mntons

Compound(NP/NPK)

AN26 (CAN)

AN33

DAP

57%

42%

51% 50%

40%

30%

37% 36% 33%

21%

12% 17%

11% 15%

27%

0% 0% 0% 0%

12%

1% 4%

2% 2% 0%

2010; 237K tons 2011; 219K tons 2012; 171K tons 2013; 189K tons 2014; 360K tons

Urea

AS

AN33

DAP

Other


Agri Industry


Toros Ceyhan Terminal

• 1 jetty with 5 berths loading 1,300 tons and

discharging 1,000 tons of bulk liquids per day

• 1 jetty with 3 berths handling 45,000 tons of

dry bulk cargo per day

• Grain warehouse with 60,000 tons capacity

• Closed storage area capacity: 300,000 tons

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

• Bagging capacity: 38,000 tons per day

• Tank farm capacity: 236,000 m3

Toros Samsun Terminal

• 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

• Tank farm capacity: 60,000 m3

TOROS has two marine terminals offering loading/unloading and storage services to third parties

Marine Terminal Services

50


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:

• Suppliers of specialty fertilizers are globally known leading producers;

• Haifa Chemicals

• Tessenderlo Chemie

• Prayon

• Leading brand in specialty fertilizers in Turkey since 2000

Complementary Products and Services

51


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

52

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

53


Agri Industry



54

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


Real Estate

Real Estate Development

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

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

56




Project Project

Function

Start Date of

Project

End Date of

Project

Estimated Revenue*

(million $)

Total/Tekfen Share

Estimated Cost**

(million $)

Total/Tekfen Share

Izmir Project Mixed Use Jan.13 Dec.17 508/254 230/115

Esenyurt Project Residential May.13 Dec.16 231

Projects

57

Project Total ***

Gross Leasable/ Sellable Area

(m²) Total Construction Area (m²)

Residence 50.000 80.000

Office 20.000 35.000

Shopping Mall 60.000 120.000

Total 130.000 235.000

*** Tekfen share is 50%.

*Residential & Office Sales Revenue: 2.800 $/m² x 70.000 m² (adds up to $196 M in total)

Shopping Mall Revenue: 40 $/ m² /month x 10 years rent revenue (adds up to $ 288 M) + $24 M first year rent revenue with

80% occupancy

**Total cost, excluding land.

Izmir Project Details:




Ongoing Projects

Transaction Overview:

• 50%-50% partnership with Renaissance Shopping Malls

• The largest mixed use project in Izmir

Total Project Size – (Revenues, $ millions): 508

Tekfen Share : 50 %

Project Summary:

• Total Sellable/Leasable area :

Shopping Mall 30.000 sqm GLA, Home-Office Tower 10.000

sqm GLA and Residential Tower 25.000 sqm

• Est. Contruction period: Q4/2014 – Q4/2017

• Landmark project for the city of Izmir

Investment Rationale:

• Location within the new planned CBD of Izmir

• High accesibility and visibility through the main arteries

Izmir Mixed Use

58




Ongoing Projects

Transaction Overview:

• Being developed on 56.800 m² land which is purchased on May 2013

• Construction permit granted on December 2013 for the project including aproximately 1.444 residential and 25 retail units

• Project has been launched in 4Q2014.

Total Project Size – (Revenues, $ millions): 231

Tekfen Share : 100 %

Project Summary:

• Total Sellable Space:

Housing: 180.155 m², Retail: 2.595 m²

Construction Period- Start: Q2/2014 Complete: Q4/2016

Investment Rationale:

• Esenyurt property is in a sought-after area because of its developing transportation infrastructure, the city’s growth dynamics, and its situation on the intersection between the E5 highway and TEM motorway

• Esenyurt has great potential for the development having a predominantly middle-class area which is tha target segment.

Esenyurt Housing Project

59




• 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

60




• 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, 25% is used by Group

Companies, while the rest is rented to various institutions.

•Total rental income from Tekfen Tower amounted to USD 13.3 million in

2014.

Assets

61




• 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.


62


www.tekfen.com.tr

Tekfen Group


Financial Highlights 64

Net Cash Position 65

Capital Expenditures 66

Disclaimer 67

Contact Info 68

Appendix

63


www.tekfen.com.tr

Tekfen Group


TRY Million

Revenues 2013 % in Total 2014 % in Total 2015E % in Total

Contracting 2.327 61% 2.768 62% 2.179 51% Agri Industry 1.423 37% 1.626 36% 1.969 46% Real Estate 30 1% 26 1% 46 1%

Other 67 2% 55 1% 43 1% Total 3.846 100% 4.475 100% 4.237 100%

EBITDA 2013 Margin 2014 Margin 2015E Margin Contracting -100 -4,3% -38* -1,4% 151 6,9%

Agri Industry 117 8,3% 248 15,3% 209 10,6% Real Estate 0 -0,8% -7 -28,0% -9 -20,5%

Other -8 -11,9% -15 -27,0% 2 4,7% Total 10 0,3% 188 4,2% 353 8,3%

Net Income 2013 Margin 2014 Margin 2015E Margin Contracting -217 -9,3% -197* -7,1% 55 2,5%

Agri Industry 63 4,4% 218 13,4% 152 7,7% Real Estate -1 -2,5% -4 -15,9% -9 -19,4% Other 92 137,2% 41 74,3% 53 122,2%

Total -64 -1,7% 58 1,3% 251 5,9%

Financial Highlights – Segmental Breakdown

64 * Net asset write-off in Libya had a negative impact of TRY139,8 million on EBITDA and TRY189,7 million on Net Profit figures.


www.tekfen.com.tr

Tekfen Group


2012 2013 2014

193

-290

147

11

767

-619

224

-99

688

-612

69

-91

636

Contracting Agri Industry Real Estate Other

2012 2013 2014

Tekfen Group

Net Cash Position

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

65

635

1


www.tekfen.com.tr

Tekfen Group


Tekfen Group

Capital Expenditures

43 5497

193 184

402

2009 2010 2011 2012 2013 2014

Million TRY

Contracting Agri Industry Real Estate Other Total

2009 26,5 15,3 0,7 0,8 43,3

2010 30,0 10,2 0,2 13,5 53,9

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

Capital Expenditures (Segmental Breakdown, Million TRY)

66


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

67


www.tekfen.com.tr

Tekfen Group


• For General Questions and Requests for Reports:

Çağlar Gülveren, CFA - Investor Relations and Corporate Governance Coordinator

e-mail: [email protected]

Tel: +90 212 359 3420

• Contracting Group:

Fatih Bahçeci, Vice President, Projects Planning and Control


Tel: +90 212 359 3583

• Agri-Industry Group:

Canan Senkut, Toros Tarım IR Chief


Tel: +90 212 357 0202 (ext.381)

• Real-Estate Development Group:

Ayşe Turalı, Assistant General Manager


Tel: +90 212 359 3703

Contact Information

68


Documents

Tekfen Holding Investor Presentation May 2015Share Classes Single type of shares (one share one vote) Composition of the Board ... core operations, deliver the highest quality products