Tekfen Holding Investor Presentation March 2018
Tekfen GroupAt a glance
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
1956 Feyyaz Berker, Nihat Gökyiğit and Necati Akçağlılar formed an engineering consulting company
1957 The three partnersestablish Tekfen Construction Ltd.
1963 Tekfen Industry and Trading Co., Inc. is founded to produce incandescent lamps.
1970 Foundation of Tekfen Manufacturing
1971 Foundation of Tekfen Holding
1975 Iraq-Turkey pipeline
1978 Tekfen Construction goes overseas
1981 Toros Fertilizer starts production
1984 Foundation of Tekfen Engineering
1989 Tekfenbank Acquisition of Akgübre fertilizer
1992 Tekfen Philarmonics
2000 Tekfen Real Estate Development Group
2001 Acquisition of Bank Ekspres
2003 Tekfen Tower opens
2005 Acquisition of Samsun Gübre fertilizer plant
2006 Completion of BTC crude oil pipeline
2007 Partnership with Eurobank EFG in Tekfenbank
Acquisition of EFG Istanbul Securities
IPO of Tekfen Holding
2012 Sale of Eurobank Tekfen
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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 10 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
23%Berker 22%
Akçağlılar
7%
Others 1%
Free Float
47%
Ownership structure
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www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
At a glance
Main Operations
• Construction
• Engineering
• Fabrication
Main Companies
• Tekfen Construction
• Tekfen Engineering
• Tekfen Manufacturing &
Engineering
Contracting
Share in consolidated
revenues*: 65%
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
Share in consolidated
revenues*: 30%
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
Share in consolidated
revenues*: 5%
Tekfen Insurance
• Authorised agent of 18
insurance and 3 pension
fund companies
Other
Share in consolidated
revenues*: 0%
* As of 31.12.2017 4
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
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.
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www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Strategic focus
• Terminal activities are undertaken in the framework of Agri-industry segment
comprising of two marine terminals strategically located in the Mediterranean and the
Black Sea regions.
• It is observed that in parallel to the development and enrichment of every country,
demand for modern, luxurious and high standard residential and commercial housing
increases. Hence, Real Estate Development is another strategic focus for Tekfen
Group.
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www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
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.”
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www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Social Responsibility
• Tekfen Group believes that supporting social culture and environmental activities
are the natural extentions of its corporate structure. All the companies under the
Tekfen Group umbrella emphasize “usefulness”, “harmony” and “protection”
principles as a prerequisite for the activities in their own fields.
• Believing that supporting social development and improvement is everybody’s
common task Tekfen continues its efforts for this end for decades. These activities
which are the common values for all employees, from top executives to entry level
employees of the Group coincides with the philosophy which puts human and the
environment as the focal value.
• With the purpose of continuing its contribution to social and cultural activities,
Tekfen established Tekfen Foundation for Education Health, Culture, Arts, and
Protection of Natural Habitat in 1999. Supporting a variety of projects in the fields
of education, culture and art since its establishment, Tekfen Foundation obtained
status as an “institution that works for the benefit of society“ through the Cabinet’s
decision in 2004.
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www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Tekfen Group
Human resources
Tekfen Holding has a dynamic and
professional workforce of over
18.000 employees.
Number of employees
Contracting Agri Industry Real Estate Other Total
2013 13.614 348 1.033 519 15.514
2014 11.988 380 1.020 490 13.878
2015 11.359 390 1.058 427 13.234
2016 12.691 401 1.102 101 14.295
2017 16.696 382 1.112 106 18.296
Number of employees (breakdown by segment)
9
15,51413,878 13,234
14,295
18,296
2013 2014 2015 2016 2017
Contracting
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal 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 112 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 2017.
• Employing over 2500 permanent technical and administrative staff and with an
extensive selection of new and well-maintained equipment and machinery
• Over 350 projects with a total amount of US$15 billion completed.
• Successfully completed US$9 billion worth of projects abroad.
• The Group has broken records for working hours without LTI (lost time incident) in
Azerbaijan, Kazakhstan and Ceyhan projects. 11
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
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
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
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
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
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 2017-end, Tekfen Contracting Group had an active portfolio of US$ 3.4
billion, 83% of which were outside of Turkey, located in 5 different countries.
• In 2017, Tekfen added six new projects to its backlog with a total size of
US$960 million. These projects are in Iraq (US$ 99 million), Qatar (US$371
million), Turkey (US$ 271 million) and in Kazakhstan (US$ 219 million)
• The provision of personnel and machinery required for the installation
services of dehydrators and desalters in the Rumalia oil field has a contract
size of US$ 99 million at the end of the project.
•Awarded by Qatar Public Works Authority (Ashghal) for construction works
of East Industrial Road Project. The project size is QAR729,6 million
(~US$200million) with a duration of 27 months.
Overview
14
•Tekfen-Al Jaber Engineering (%50-%50) Joint Venture, was awarded the turnkey delivery of the engineering and construction
works of the “Main Works for the Fifth Precinct Stadium” Project in Qatar, where the 2022 Qatar World Cup finals will be held.
Tekfen’s share in the project is ~US$171 million.
•Tekfen Construction and Installation Co. Inc., has received a letter of intent for a contract award related to construction works of
the gas receiving terminal to be built near Kıyıköy, Turkey. The value of the 24-month unit price contract is Euro 98 million.
•GATE Construction and Contracting, Inc., Tekfen Construction and Installation, Inc., has a 50-percent share, has signed a
contract worth US$438 million with Tengizchevroil (TCO) covering the “Future Growth Project – Wellhead Pressure Management
Project, Area 51 Multi Well Pad, Civil, Mechanical, Electrical and Instrument Installation” works.
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Total Manpower: 20.800*
TURKEY:10.460 ABROAD:10.340
Manpower
Azerbaijan6.010
Morocco 32 Qatar 2.216
Turkmenistan3
Iraq 2
Saudi Arabia593
Kazakhstan1.484
15* As of 2017-end including subcontractors.
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
DISIPLINE&DIVISION
ENGINEERS 1168 5,62%
MANAGEMENT 230 1,11%
PROCUREMENT 48 0,23%
ADMIN 275 1,32%
QA&QC/HSE 225 1,08%
TECHNICIANS 105 0,50%
FOREMEN 360 1,73%
OPERATORS&DRIVERS 893 4,29%
CIVIL WORKS 1.437 6,91%
ELECTRICAL WORKS 271 1,30%
PIPE&WELDING WORKS 1.600 7,69%
MECHANICAL WORKS 1.100 5,29%
STEEL&ERECTION WORKS 260 1,25%
OTHERS 7.990 38,41%
SUBCONTRACTORS 4.838 23,26%
TOTAL 20.800 100%
NATIONALITY
TURKISH 12.712 61,12%
AZERBEIJANI 5.902 28,38%
TURKMEN 4 0,02%
MOROCCAN 32 0,15%
INDIAN 192 0,92%
NEPALESE 150 0,72%
PHILIPIN 82 0,39%
ETHIOPIAN 403 1,94%
KAZAKH 5 0,02%
IRAQI 2 0,01%
SAUDI 283 1,36%
OTHER 1.033 4,97%
TOTAL 20.800 100%
Manpower Structure
16
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
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
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
569 484 484 368 237 159 111 72 75 34 36555 561 474 754 572 782 578
175 201 242 167 264
1,535 1,350 1,6681,257 1,225
1,7941,449 1,589
2,524 1,6191,139
2,8882,841
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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 2017
Backlog Growth
18
744 685 726535 501
1.6941.461
1.740
1.333 1.259
1.8302.1502005
2.998
2.373
1.711
3.6703.419
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Backlog (as of 31 December 2017)
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 Location
Expected End
Dates
Current Contract
Price Tekfen Portion
Revenue Based
Completion Rate
Remaining Amount
(US$)
Prov. of Pipeline and Facilities Repair Services for BTC Turkey Turkey 15/12/2018 100,869,467 $ 100,869,467 $ 94.5% 5,579,178
TANAP Project Lot3 Turkey 25/12/2017 581,938,215 $ 581,938,215 $ 93.8% 36,093,896
TANAP Compressor and Metering Stations Turkey 31/05/2019 461,487,823 $ 461,487,823 $ 45.7% 250,682,604
Afyon - Uşak Rapid Train Project and Afyon Direct Pass Infrastructure Turkey 30/12/2019 291,949,127 $ 145,974,563 $ 18.3% 119,274,735
TANAP Management Office Fit Out Civil Works Turkey 08/05/2018 1,380,000 $ 1,380,000 $ 95.0% 69,000
Star Aegean Refinery Turkey 31/03/2018 155,000,000 $ 155,000,000 $ 69.3% 47,618,380
Recieving Terminal Civil Works Turkey 13/12/2019 118,201,049 $ 118,201,049 $ 0.0% 118,201,049
TURKEY TOTAL 577,518,842
New Management Office Project of SOCAR Azerbaijan 15/09/2017 415,607,812 $ 415,607,812 $ 98.9% 4,656,463
Shah Deniz Stage 2 Fabrication of Offsite Facilities Azerbaijan 30/04/2018 974,783,328 $ 325,207,183 $ 100.0% 0
Shah Deniz Stage 2 Onshore Terminal Facility - Sangachal Terminal Azerbaijan 31/12/2017 1,300,000,000 $ 476,682,486 $ 95.1% 23,285,524
Ministry of Tax Tower Azerbaijan 31/08/2018 94,000,000 $ 94,000,000 $ 6.5% 87,925,488
AZFEN Projects* Azerbaijan 31/12/2018 2,053,778,691 $ 821,511,476 $ 89.2% 88,638,943
AZERBAIJAN TOTAL 204,506,418
Jeddah Janbu Pipeline S. Arabia 28/09/2021 299,350,973 $ 299,350,973 $ 10.1% 269,095,543
SAUDI ARABIA TOTAL 269,095,543
Al Khor Expressway Qatar 25/11/2019 2,082,191,781 $ 2,082,191,781 $ 23.8% 1,585,772,372
Main Works for the Fifth Precinct Stadium Qatar 05/12/2019 344,641,403 $ 172,320,702 $ 8.2% 158,198,039
Design and Construct Service Road Enhancement to North Road Corridor Qatar 04/07/2018 977,726,769 $ 977,726,769 $ 94.2% 56,566,002
East Industrial Road Qatar 05/12/2019 200,439,560 $ 200,439,560 $ 0.0% 200,439,560
QATAR TOTAL 2,000,975,973
Installation Services for Dehydrators & Desalters Iraq 16/02/2020 99,000,000 $ 99,000,000 $ 0.0% 99,000,000
IRAQ TOTAL 99,000,000
Construction Compound Main Works Kazakhstan 11/08/2018 76,671,867 $ 38,335,933 $ 34.9% 24,939,608
FGP Temporary Construction Facilities Kazakhstan 30/11/2018 73,166,686 $ 36,583,343 $ 34.9% 25,582,533
FGP Wellhead Pressure Management Project Kazakhstan 26/07/2022 434,285,665 $ 217,142,832 $ 0.0% 217,142,832
KAZAKHSTAN TOTAL 267,664,973
TOTAL 3,418,761,749
TOREN & Gazdepo Underground Gas Storage Project** Turkey 30/09/2021 1,813,233,523 $ 813,646,487 $ 0.0% 813,646,487
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects (as of 31 December 2017)
Backlog Breakdown by Regions
Region US$ (million)
Middle East 2,369
Turkey 578
Caspian Region 472
Total 3,419
Backlog Breakdown by Project Types
Project Type US$ (million)
Transportation 1,962
Pipeline 561
Buildings 301
Industrial Facilities 594
Total 3,419
20
Middle East69%
Turkey17%
Caspian Region
14%
Industrial Facilities
17%
Buildings9%
Transportation 63%
Pipelines16%
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
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%.
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Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
• 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
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Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
• 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
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
• 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
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
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
1.0291.319 1.339
1.111
1.864
2.395 2.3272.768
2.153
2.824
4.862
7.511
7,2%
8,3%
11,0%
13,2%
9,3%
5,9%
-4,3% -1,4%
7,6%
9,3%
11,3%
8,6%
-6,0%
-1,0%
4,0%
9,0%
14,0%
19,0%
-1.000
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E
Revenue EBITDA Margin
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
TURKEY – TRANS ANATOLIAN 56’’ NAUTRAL GAS PIPELINE (TANAP) PROJECT (Lot 3)
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
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects - Turkey
27
TANAP Project (Lot 3)
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
AZERBAIJAN – MINISTRY of TAXATION TOWER
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 Management Office 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.
Ongoing projects – Caspian Region
28
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects – Caspian Region
29
Shah Deniz Stage 2 Project Overall Scope
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects - Middle East
30
SAUDI ARABIA- JANBU-JEDDAH PIPELINE
The purpose of the project is to efficiently meet the Kingdom’s refined product demands in Makkah Province.
The final agreement concerning the turnkey construction of the 333- km long 20" gasoline and 24" jet fuel pipeline
with ultimate capacity of 577 MBD (240 MBD & 337 MBD respectively) for a total cost of US$299 million and a
completion period of 47 months has been signed between Tekfen Construction and Installation and Aramco.
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects - Middle East
31
QATAR – DESIGN AND BUILD OF AL KHOR EXSPRESSWAY
Awarded by Private Engineering Office of Qatar, the Project comprises the Design and Build of a 34 km long
expressway with a total of 10 lanes in both directions and various junctions, viaducts, and over- and under-
passes. Project size is ~US$2.1 billion. 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 seperate fast cycle track
adjacent to the service roads on the other side of the expressway. The Works also include Landscape,
Hardscape and Artscaping.
*Concept design.
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
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 to sign the agreement 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 Stadium shall be designed and constructed to meet the FIFA standards in Tournament mode. The cost of
the 40,000 seated stadium project will be US$342.5 million (~US$171.2 million Tekfen share)
32
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
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
33
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Agri Industry
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
The pioneer in Turkey’s agricultural industry
• Symbol of “quality” and “trust”
• In business since 1981 under TOROS brand name
• Over 1,000 employees
• Seasoned – well experienced employees
Overview
35
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
• Active in fertilizer, seed, seedling and sapling production and distribution, as well as marine
terminal services and free zone operations
• Consolidated turnover of TRY 2,240 million as of 2017
• 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
36
Overview
2013 2014 2015 2016 2017
TR
Y M
illio
n
Terminal
Agri
2.240
8%
92%
1.423
1.626 1.659
1.851
95% 95% 93%93%
5%
5% 7%
7%
2013 2014 2015 2016 2017
TR
Y M
illio
nTerminal
Agri
468
117
248
145
290
74%74% 83% 71%50%
26%
26%
17%
50%
29%
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Fertilizers
• Supplying every type of fertilizer Turkish
farmers need
• Market leader since 1986
• Vast dealers network with over 800 dealers
• Marketing and Sales Team located in 7 regions
• Constant contact with dealers and farmers
• Timely delivery to dealers via 8 warehouses
37
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Regional Offices & Other Units
İSTANBUL
Head Office
İZMİR
REGIONAL OFFICE
Warehouse
Grain Silos
Seed Processing
ANKARA
REGIONAL OFFICE
Warehouse
SAMSUN
REGIONAL OFFICE
Warehouse
ANTALYA
REGIONAL OFFICE
Seedling Nurseries
WarehouseKONYA
Warehouse
ADANA & CEYHAN
REGIONAL OFFICE
Bag Manufacturing Plant
Free Zone
Micropropagation
Warehouse
Grain Silos
Seed Processing
ŞANLIURFA
REGIONAL OFFICE
Warehouse
TEKİRDAĞ
REGIONAL OFFICE
Warehouse
38
NEVŞEHİR
Underground
Potato Seed
Warehouse
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
• 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
39
• 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
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
2017 Total Sales: 1.9 million tons
Fertilizers – Sales
40
2016 Total Sales: 1.75 million tons
AN26 12%
AN33 17%
AS 4%Urea 16%
DAP 12%
NP/NPK (Compound)
39%
AN26 25%
AN33 5%
AS 6%Urea 13%
DAP 11%
NP/NPK (Compound)
40%
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
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
41
37%
39%
39%
42%
37%
39%
28%
31%
34%
37%
40%
43%
0
1.000
2.000
3.000
4.000
5.000
2011 2012 2013 2014 2015 2016 2017
1000 t
on
s
Total Production Toros Production Toros Share
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
1000 t
on
s
Total Imports Toros Imports Toros Share
31%
31%
28%
31%
27% 26%
16%
19%
22%
25%
28%
31%
34%
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
2011 2012 2013 2014 2015 2016 2017
1000 t
on
s
Consumption Toros Sales Market Share
*2017 market data hasn’t been disclosed
* *
*
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
• Three fertilizer plants located in Mersin, Ceyhan and Samsun
• Total installed capacity is 2 million tpa of which 1,85 million tpa is in operation
• Leading producer with the largest share in Turkey’s total installed production capacity
Fertilizers – Production Facilities
SAMSUN PLANT
MERSIN PLANT CEYHAN PLANT
42
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
CEYHAN PLANT
NPK and DAP production
CAPACITY
2 x 330,000 tpa NPK
or
330,000 tpa NPK & 200,000 tpa DAP
SAMSUN PLANT
NPK and DAP production
CAPACITY
300,000 tpa NPK
227,000 tpa DAP
PHOSPHORIC ACID CAPACITY
210,000 tpa (100% P2O5)
SULPHURIC ACID CAPACITY
726,000 tpa (100% H2SO4)
MERSIN PLANT
AN and CAN production
CAPACITY
660,000 tpa CAN
NITRIC ACID CAPACITY
405,000 tpa
Fertilizers – Production Capacity
43
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Fertilizers - Integration Investments
44
Place: Samsun Plant
Scope: Sulphuric and phosphoric acid investments,
NPK revamp investment
Amount: $335 million
Period: 2013-2015
Aim:
✓ Ensuring raw material supply security
✓ Self sufficiency in acid production
✓ Decreasing production costs
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
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**
45
• In Samsun Plant, Toros produces sulphuric and phosphoric acid for all its DAP/NPK units.
SULPHUR
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
In Mersin Plant, Toros produces nitric acid for its CAN/AN unit.
NITRIC ACIDAIR
WATER
AMMONIUM
NITRATE
AMMONIA AMMONIUM
NITRATE
CALCIUM
AMMONIUM
NITRATE
LIME
STONE
Fertilizers – CAN/AN Production Diagram
46
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Procurement - Breakdown by Products
Fertilizers – Production and Imports
47
Production - Breakdown by Products
47%
52%49%
55%
50%
19% 18% 19%17%
31%
23%20%
24%
16%
5%
11% 11%8%
12% 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
Compund(NP/NPK)AN 26(CAN)AN33
DAP
50%
40%
77%
62%
50%
33%
21% 20%22%
46%
15%
27%
3%0% 0%0%
12%
0%
16%
4%2% 0% 0% 0% 0%
2013: 189K tons 2014: 360K tons 2015: 232K tons 2016: 365K tons 2017: 558K tons
Urea
AS
AN33
DAP
Other
*Due to the ban of AN33 in the local market, the production was minimized just for exporting purpose
*
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Marine Terminal Services
48
✓ Providing loading/unloading and storage
services to third parties
✓ Ceyhan Port:
• Turkey’s 5th largest dry bulk & general
cargo port
• One of the largest transit terminals for
petroleum products in Eastern
Mediterranean
✓ Samsun Port:
• Black Sea region’s 3rd largest port
✓ Strong brand name associated with high-
quality customer service, technical know-how
and seasoned employees
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
• 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
49
• 1 jetty with 3 berths handling 45,000 tpd of dry bulk cargo
• 1 jetty with 5 berths loading 1,300 tpd and discharging 1,000 tpd bulk liquids
• Closed storage area capacity: 300,000 tons
• Open storage area capacity: 1,000,000 tons
• Tank farm capacity: 195,000 m3
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Marine Terminal Services
50
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
2013 2014 2015 2016 2017
40%
55%60%
70%77%
2013 2014 2015 2016 2017
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Vegetable Seedlings:
• Operating under Hishtil-Toros Seedlings brandname
• A 50-50 JV with Hishtil Holdings since 1999
• Producing high quality grafted and standard
vegetable seedlings for the growing local and
foreign markets
• Nurseries located in Antalya and Adana
Field Crop Seeds:
• Cooperating with two state research institutes to produce and
distribute certain types of wheat
• Wheat seed breeding program receiving support from TÜBİTAK (The
Scientific and Technological Research Council of Turkey)
Specialty Fertilizers:
• Leading brand in specialty fertilizers in Turkey since 2000
• Procurement from globally known leading producers
• Blending soluble NPKs for the high growth local market
Complementary Products and Services
51
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
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
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
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
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Social Responsibility
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
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Alanar Fruit & Alanar Sapling
55
Current Situation
✓ Total area of ownership 3,632.9 decare and leased area
of 1,108 decare, including 204,408 trees
✓ Produces and sells cherry, black fig, apricot,
pomegranate, nectarine, Japanese plum, persimmon,
chestnut
✓ 25% of the total sales are from production while, 75% of
the sales are imports
✓ Share of exports in total sales is around 90%
✓ Main export markets are Germany, England and Sweden
✓ 10.4% EBITDA margin in 2016Targets After Tekfen Partnership
✓ New land investments of 6,011 da between 2017-2020
✓ Four new plant investments in Alasehir, Aydin, Malatya
and Bursa and various equipment investments
✓ Sales volume of 19,000 tons in 2022
✓ Share of sales from production to remain within the
range of 25-30%
✓ Targeting TL225mn revenues and 16% EBITDA margin in
2022
✓ Share of exports in total sales to remain at 85% level
Real Estate
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
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
57
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
ProjectProject
Function
Start Date of
Project
End Date of
Project
Estimated Revenue
(million)
Total/Tekfen Share
Izmir Project Mixed Use Mar.16 * *
Esenyurt Project Residential Sep.14 May 17 TRY687
Topkapı Project Residential Apr.16 Mar.20 TRY460
Topkapı Project – II Residential Sep. 17 ** TRY 254***
Projects
58
Residential Office Retail
Izmir Project* - - -
Esenyurt Project 180.155 - 2.595
Topkapi Project 45.062 - 2.118
Topkapi Project II 44.467 - -
* Tekfen has 50% share in the project. Revision works of the concept project were started according to the current market
conditions. The construction works are planned to be started in 2018. Project schedule will be set according to construction
start date.
** Project schedule will be set according to zoning process.
*** The project will be developed via revenue sharing model and estimated Project size refers to Tekfen share.
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
Ongoing Projects
Transaction Overview:
• 50%-50% partnership with Renaissance Shopping Malls
• The largest mixed use project in Izmir
Total Project Size – (Revenues, TRY millions): (*)
Tekfen Share : 50 %
Project Summary:
• Total Sellable/Leasable area (GLA) (*)
• Est. Contruction period: Q1/2016 – *
• Landmark project for the city of Izmir
Investment Rationale:
• Location within the new planned CBD of Izmir
• High accesibility and visibility through the main arteries
Izmir Mixed Use
59
* Demolishing work of the existing buildings on the site is completed. The urban transformation approval and the EIA report have
been granted. Revision works of the concept project were started according to the current market conditions. The construction
works are planned to be started in 2018, the project schedule will be set according to construction start date.
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
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): 687
Tekfen Share : 100%
Project Summary:
• Total Sellable Space:
Housing: 180.155 m², Retail: 2.595 m²
• Construction Period- Start: Q2/2015 Complete: Q2/2017
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
60
Project has been launched on October 30th, 2014. 1028 residential units having a
total area of 115,732 m² have been sold as of December 31st 2017. Total sales
amount is TRY330,2 million and 1,006 residences have been delivered to the new
owners.
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
Ongoing Projects
Transaction Overview:
• A total of 13,793 m2 net land area has reached with theacquisition of the adjusted plots of Toros Tarım and TopkapıVitaminli Yem Sanayi A.Ş. in Nov. 2016.
• Following the obtained construction permit, the sales of theresidential project supported by retail units is planned to bestarted in October 2017 and the project is planned to becompleted within 24 months.
Total Project Size – (Revenues, TRY millions): 460
Tekfen Share : 100%
Project Summary:
• Total Sellable Space:
Housing: 45.062 m², Retail: 2.118 m²
• Construction Period Start: Q1/2018 Complete: Q1/2020
Investment Rationale:
• High accessibility, near E-5 highway and intersection point fortram, light metro and metrobus
• Rapid transformation of light industrial area to residential unitssupported by the zoning plans
• Residential demand is increased after operational of theuniversities and hospitals,
Topkapı Housing Project
61
Zeytinburnu Municipality requested revisions for the
project with the new board decision of the
municipality, after the project’s construction permit
were obtained. For this reason, negotiations are still
being held with the municipality. Revised
construction permit is planned to be approved in
February by municipality. During this period, the
sales office construction has been started and it is
targeted to be completed in June 2018.
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
Ongoing Projects
Transaction Overview:
• A revenue sharing agreement was signed on 28/09/2017 todevelop a residential project on the neighboring plots totaling20k m² area of the existing Tekfen Topkapı project, currentlythere is an active textile production on the plots.
• The construction permit will be obtained after zoning planrevision, and accordingly the sales will be started with theconstruction works and the project is planned to be completedwithin 24 months.
Total Project Tekfen Share – (Revenues, TRY millions): 254
Project Summary:
• Total Sellable Space: Housing: 44,467 m²
• Construction Period Start: Q4/2017 Complete: *
Investment Rationale:
• High accessibility, near E-5 highway and intersection point fortram, light metro and metrobus lines.
• Rapid transformation of light industrial area to residential unitssupported by the zoning plans.
• Residential demand has increased after new universities andhospitals became operational.
• The project will be the second phase of existing Topkapı Project.It is aimed to develop a competitive project in terms of salesprice with the gained infrastructure and experience.
Topkapı Housing Project II
62
1/5000 and 1/1000 zoning plans of one plot were required
to be renewed. After the signing of the contract,
negotiations with the city planning offices have been
initiated in coordination with the municipality for the
renewal of the plans. Project will start upon the completion
of zoning process.
(*) Construction schedule will be set acoording to zoning process.
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
• 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
63
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
• Tekfen Holding earns rental income from the offices it owns in Akmerkez
and Tekfen Tower.
• Tekfen Tower has 33.000 m² rentable area, of which, 27% is used by Group
Companies, while the rest is rented to various institutions.
• Total rental income from Tekfen Tower amounted to USD 11.5 million in
2017.
Assets
64
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
• 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.
Social Responsibility
65
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Financial Highlights 67
Net Cash Position 68
Capital Expenditures 69
Disclaimer 70
Contact Info 71
Appendix
66
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
TRY Million
Revenues 2016 % in Total 2017 % in Total 2018E % in TotalContracting 2.824 60% 4,862 65% 7,511 72%Agri Industry 1.851 38% 2,240 30% 2,688 26%
Real Estate 33 1% 351 5% 122 2%
Other 30 1% 34 0% 43 0%
Total 4.737 100% 7.487 100% 10.364 100%
EBITDA 2016 Margin 2017 Margin 2018E MarginContracting 261 9,3% 548 11,3% 643 8,6%Agri Industry 290 15,6% 468 20,9% 455 16,9%
Real Estate -11 -32,8% 4 1,1% 16 13,2%
Other -12 -39,2% -16 -45,3% -29 -68,3%
Total 529 11,2% 1.005 13,4% 1.085 10,5%
Net Income 2016 Margin 2017 Margin 2018E MarginContracting 81 2,9% 391 8,0% 448 6,0%
Agri Industry 140 7,5% 347 15,5% 375 13,9%
Real Estate 11 33,0% -14 -4,0% -25 -20,3%Other 99 331,0% 47 137,6% -18 -40,7%
Total 330 7,0% 771 10,3% 780 7,5%
Financial Highlights – Segmental Breakdown
67
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
-183
331
2.136
2015 2016 2017-680
-323
-39
860
-475
227
-220
800
1.142
586
-393
801
Contracting Agri Industry Real Estate Other
2015 2016 2017
Tekfen Group
Net Cash Position*
Tekfen Group Net Cash Position (TRY million) Net Cash Position by segment (TRY million)
68
* 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.
**
**
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Tekfen Group
Capital Expenditures
Million TRY
Contracting Agri Industry Real Estate Other Total
2011 78,4 11,4 0,3 6,4 96,5
2012 142,6 49,9 0,3 0,4 193,3
2013 24,7 158,4 0,4 0,6 184,1
2014 27,0 371,2 2,6 0,7 401,5
2015 17,3 275,0 1,9 1,9 296,1
2016 45,7 120,0 2,6 1,4 169,7
2017 167,9 0,6 61,1 3,1 232,7
Capital Expenditures (Segmental Breakdown, Million TRY)
69
97193 184
402296
170233
2011 2012 2013 2014 2015 2016 2017
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
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
70
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
• For General Questions and Requests for Reports:
Çağlar Gülveren, CFA - Investor Relations and Corporate Governance
Director, Tekfen Group of Companies
e-mail: [email protected] / [email protected]
Tel: +90 212 359 3420
Can Çimenser - Investor Relations Assistant Manager,
Tekfen Group of Companies
e-mail: [email protected] / [email protected]
Tel: +90 212 359 3809
Contact Information
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