01.01.2019- 30.06.2019 Financial & Operational HighlightsBasic Balance Sheet Items (Million TRY) 31 Dec 18 30 June 19 Change (%) Total Assets 12,036 12,461 4 Shareholders' Equity 4,424

1/

01.01.2019- 30.06.2019

Financial & Operational

Highlights

2

❖ 2019 January – June Financial Results

❖ Detailed Information by Operating Segments

▪ Contracting Group

▪ Agri – Industry Group

▪ Real Estate Development Group

Content

3

Main Financial Indicators

* Earnings before interest, tax, depreciation and amortization

Basic Balance Sheet Items (Million TRY) 31 Dec 18 30 June 19 Change (%)

Total Assets 12,036 12,461 4▲

Shareholders' Equity 4,424 5,171 17▲

Basic Income Statement Items (Million TRY)

01 Jan -

30 June 18

01 Jan-

30 June 19 Change (%)

Revenues 5,103 8,306 63▲

Gross Profit 734 1,633 123▲

EBITDA* 593 1,397 136▲

Operational Profit 384 1,283 234▲

Income Before Tax 630 1,461 132▲

Net Profit 520 1,179 127▲

Sales Revenue

4

Consolidated (Million TRY) By Segment (Million TRY)

2018/6 2019/6

5,103

8,306

Contracting Agri Industry Real Estate Other

3,598

1,445

40 20

5,917

2,299

67 24

2018/6 2019/6

Consolidated (Million TRY)

2Q18 2Q19

2,837

3,718

By Segment (Million TRY)


2,109

701

16 10

2,628

1,057

21 12

2Q18 2Q19

*

* The impact of additional payments from clients is TRY641 million.

*

EBITDA

5

Consolidated EBITDA (Million TRY) EBITDA by Segment (Million TRY)

2018/6 2019/6

593

1,397


343 265

-2 -12

1,077

366

4

-49

2018/6 2019/6

2Q18 2Q19

297

455


181 129

-3 -9

274

204

0 -23

2Q18 2Q19

Consolidated EBITDA (Million TRY) EBITDA by Segment (Million TRY)

**


EBITDA Margin

6

Consolidated (%) By Segment (%)

2018/6 2019/6

11.6

16.8


9.5 18.3

-5.5

-62.6

18.2 15.9 6.3

-209.3

2018/6 2019/6

2Q18 2Q19

10.5 12.2


8.6 18.4

-17.9

-90.8

10.4 19.3

-1.5

-195.3

2Q18 2Q19


Net Profit

7


2018/6 2019/6

520

1,179


279

145

-19

115

860

272

-1

49

2018/6 2019/6

2Q18 2Q19

279

398


149

57

-10

83

235

155

-8

16

2Q18 2Q19


**


Net Profit Margin

8


2018/6 2019/6

10.2

14.2


7.8 10.1

-47.3

589.4

14.5 11.8

-1.1

207.3

2018/6 2019/6

2Q18 2Q19

9.8 10.7


7.1 8.2

-61.3

831.2

8.9 14.7

-36.8

140.3

2Q18 2Q19


Net Cash Position*

9

Consolidated (Million TRY) By Segments (Million TRY)

2018/12** 2019/6***

3,596 3,606


2,190

672

-95

828

2,025

372

-71

1,280

2018/12 2019/6

*****

* Net of bank loans, leasing payables, cash and cash equivalents.

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

million advance payment from ongoing Haradh Project in Saudi Arabia is included.

*** TRY287 million advance payment collected in Qatar for the ongoing Al Khor Motorway Project and TRY294



416

128

-18

157

352

65

-12

222

2018/12 2019/6

Net Cash Position in USD Terms*

10

Consolidated (Million USD) By Segments (Million USD)

***

**

2018/12** 2019/6***

683627

* Net of bank loans, leasing payables, cash and cash equivalents.

** USD121 million advance payment collected in Qatar for the ongoing Al Khor Motorway Project and USD62


*** USD50 million advance payment collected in Qatar for the ongoing Al Khor Motorway Project and USD51


11






Content

Contracting GroupBacklog as of

30 June 2019

12

* Not included in the consolidated revenues.

** Included in the financial statements using equity method.

- Expected end date” refers to the mechanical completion date.

Project Location

Expected End

Dates

Current Contract

Price Tekfen Portion

Revenue Based

Completion

Rate

Remaining

Amount (US$)

Provision of Civil / Structural Construction, Fabrication, Construction Services for BTC Turkey 31/12/2019 20,341,452 $ 20,341,452 $ 60.7% 7,984,694

TANAP Compressor and Metering Stations Turkey 31/10/2019 607,787,442 $ 607,787,442 $ 98.1% 11,818,378

Afyon - Uşak Rapid Train Project and Afyon Direct Pass Infrastructure Turkey 30/06/2020 238,912,113 $ 119,456,057 $ 33.8% 79,133,808

Recieving Terminal Civil Works Turkey 22/11/2019 148,493,264 $ 148,493,264 $ 69.1% 45,903,033

TÜPRAŞ İzmit Refinery Maintenance & Repair Works Turkey 31/12/2019 18,923,569 $ 18,923,569 $ 65.6% 6,500,678

TÜPRAŞ İzmit Refinery Fluid Catalytic Cracker Revamp Installation Works Turkey 19/05/2021 40,104,913 $ 40,104,913 $ 0.0% 40,104,913

TURKEY TOTAL 191,445,504

Ministry of Tax Tower Azerbaijan 30/04/2021 156,833,778 $ 156,833,778 $ 37.7% 97,677,685

AZFEN Projects* Azerbaijan 19/03/2021 347,458,594 $ 138,983,438 $ 68.4% 43,954,025

AZERBAIJAN TOTAL 141,631,710

Jeddah Janbu Pipeline S. Arabia 30/12/2020 299,960,952 $ 299,960,952 $ 65.8% 102,667,886

Haradh Satellite Gas Compression Plants' Pipelines S. Arabia 08/08/2021 590,005,720 $ 590,005,720 $ 6.8% 549,950,664

SAUDI ARABIA TOTAL 652,618,550

Al Khor Expressway Qatar 25/03/2020 2,245,955,468 $ 2,245,955,468 $ 88.3% 262,193,085

Main Works for the Fifth Precinct Stadium Qatar 05/12/2019 343,663,227 $ 171,831,614 $ 35.2% 111,371,724

Design and Construct Service Road Enhancement to North Road Corridor Qatar 23/09/2019 978,596,165 $ 978,596,165 $ 99.0% 10,178,674

East Industrial Road Qatar 10/02/2020 175,163,499 $ 175,163,499 $ 44.4% 97,358,422

Design & Build of Celebration Pavilion Extension of the Building at Al Bidda Park Qatar 31/10/2018 9,410,052 $ 9,410,052 $ 99.8% 23,203

QATAR TOTAL 481,125,108

Installation Services for Dehydrators & Desalters Iraq 30/06/2020 56,972,941 $ 56,972,941 $ 39.1% 34,672,734

IRAQ TOTAL 34,672,734

Construction Compound Main Works Kazakhstan 20/07/2019 75,319,290 $ 75,319,290 $ 96.0% 3,047,197

FGP Temporary Construction Facilities Kazakhstan 03/08/2019 109,401,444 $ 109,401,444 $ 88.4% 12,699,459

FGP Wellhead Pressure Management Project Kazakhstan 24/04/2022 461,395,845 $ 461,395,845 $ 29.4% 325,587,533

KAZAKHSTAN TOTAL 341,334,189

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

GEORGIA TOTAL 3,250,000

TOTAL 1,846,077,794

Contracting Group Growth

13

➢ The backlog, which was at USD 2.7 billion as of 2018-end, decreased to USD 1.8 billion as of

end of June 2019, due to rising completion rates of the projects.

➢ As of end of June 2019, the backlog outside Turkey adds up to 90% of total backlog.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

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

754 572 782 578266 191

175 201 242167 264

1,5351,350 1,668

1,257 1,2251,794

1,449 1,589

2,5241,619

1,139

2,8882,841

2,480

1,655

Abroad

Turkey2,747

Backlog (USD million)

744 685 726535 501

1,6941,461

1,740

1,333 1,259

1,8302,005

2,150

2,998

2,373

1,711

3,6703,419

1,846

Contracting Group Ongoing Projects

Backlog Breakdown by Regions Backlog by Project Types

14

Project Type Million USD

Transportation 449

Pipeline 676

Buildings 497

Industrial Facilities 225

Total 1,846

Middle

East

63%

Caspian

26%

Turkey

10%Pipe Line

37%

Industrial

Facilities

27%

Transportation

24%

Building

12%

Region Million USD

Middle East 1,168

Turkey 191

Caspian Region 486

Total 1,846

Contracting Group

15

Revenues &

EBITDA Margin

➢ The EBITDA margin which was at 18.2%** in 2019H1, is expected to be realized at 15.8%

for FY2019.

➢Tax rates vary between 0-35% on project and country basis.

Revenues (TRY million) ve EBITDA Margin (%)

545 5341,073 1,031 1,319 1,341 1,111

1,8642,395 2,327

2,768

2,1532,824

4,862

9,006

10,723

5.1%

12.7%12.0%

7.3%

8.5%

11.2%

13.2%

9.3%

5.9%

-4.3%

-1.4%

7.6%

9.3%

11.3%10.7%

15.8%

-5%

0%

5%

10%

15%

-1,000

1,000

3,000

5,000

7,000

9,000

11,000

13,000

15,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019B

Revenue Margin

* EBITDA margin excluding the impact of claim collections is 9.8%.

16






Content

FERTILIZERS

Global Developments

➢ Fluctuation in prices continued in the second quarter of 2019:

➢ Average price of ammonia decreased by 22%,

➢ Average price of DAP decreased by 10%,

➢ Average price of sulphur decreased by 27%,

➢ Average price of urea decreased by 2%,year-on-year.

➢ Average price of MOP and ammonium nitrate increased by 9% and 2%, respectively.

Developments in Turkey

➢ After the decrease in fertilizer demand in 2018, the optimism created by the stabilization of the foreign

exchange rate in the first half of 2019 and the announcement of purchase prices of TMO (Turkish Grain

Board) positively affected the fertilizer sector.

17

Agri-Industry Group Developments

Fertilizer SalesToros Agri

2nd Quarter

18

➢ In 2019/2Q, fertilizer sales increased by 13%, y-y.

➢ Exports dropped by 1% y-y to 69k tons in 2019/2Q. 15% increase in domestic fertilizer sales brought

quarterly sum to 518k tons.

1st Half

335390

55

5970

69

0

100

200

300

400

500

600

2018/2Q 2019/2Q

1.0

00

To

n

Dealer Sales Wholesale Export

460

518

823916

155

185102

163

0

200

400

600

800

1,000

1,200

1,400

2018/6M 2019/6M

1.0

00

To

n

Dealer Sales Wholesale Export

1.080

1.265

Domestic Fertilizer Sales

by ProductsToros Agri

19

1st Half (1,000 Tons)2nd Quarter (1,000 Tons)

➢ In 2019/2Q, fertilizer demand strengthened and domestic fertilizer sales increased by 15%, y-y.

*Including CAN26 and CAN21 sales

2018/Q2 2019/Q2 Difference 2018/H1 2019/H1 Difference

AVERAGE DOMESTIC PRICE (US$/TON) 273 298 9% 281 300 7%

83

39

102

4

32

129

104

51

100

3

25

165

CAN AS UREA Ultra N DAP COMP

2018/2Q 2019/2Q

238

73

172

20

86

389

311

92

211

10

55

423

CAN AS UREA Ultra N DAP COMP

2018/6M 2019/6M

Toros Agri

20

2nd Quarter (1,000 tons)

Fertilizer Production

1st Half (1,000 tons)

CUR 2019/Q2: 95% (2018/Q2: 92%)

CUR 2019/H1: 92% (2018/H1: 89%)

*Including AN26 and CAN21 sales

**Export

126

3560

6

218

3

447

115

4777

4

221

3

467

CAN* AN** DAP Ultra N Comp OM Total

2018/2Q 2019/2Q

294

4182

16

432

10

875

227

92 104

8

462

5

898

CAN* AN** DAP Ultra N Comp OM Total

2018/6M 2019/6M

Fertilizer ProcurementToros Agri

21

2nd Quarter (1,000 tons) 1st Half (1,000 tons)

0

20

79

0

99

0

54

83

0

138

2018/2Q 2019/2Q

0

117

199

0

317

0

119

205

1

3252018/6M 2019/6M

Agri-Industry Group

22

➢ Handling quantity in dry/liquid bulk-general cargo segment decreased by 15% compared to 2018/6M. Main

reasons for the decrease are: 1) Economic stagnation due to the fact that volatility in lira’s value against

USD, 2) A customer moved its handling operations to its own terminal.

➢ Occupancy rate in petroleum products’ tanks was 10%. (2018/6M: 50%)

Handled Quantity (1,000 Tons) Leased capacity (1,000 m3)

* Handling quantity for petroleum products is not included.

Terminal Services

Dry/Liquid Bulk - General Cargo*

2,319

1,965

2018/6M 2019/6M

Petroleum Products

584

113

2018/6M 2019/6M

Agri-Industry Group

23

Revenue EBITDA Net Profit

Revenue, EBITDA and

Net Profit

➢ Toros Agri’s revenues increased due to higher average TRY/ton price.

* Average price: 2019/Q2:1.739 TRY/ton – 2018/Q2: 1.199 TRY/ton

2018/2Q 2019/2Q

592

94237

4212

73

Mil

lion

TR

Y

Toros Agri Terminal Tekfen Agri

1.057

641

2018/2Q 2019/2Q

96

16524

28

-1

11

Mil

lion

TR

Y


204

119

2018/2Q 2019/2Q

29

12520

21

2

11

Mil

lion

TR

Y


158

52

Agri-Industry Group

24

Revenue EBITDA Net Profit

Revenue, EBITDA and

Net Profit

➢ Toros Agri’s revenues increased due to higher average TRY/ton fertilizer price.

* Average price: 2019/6M: 1.663 TRY/ton – 2018/6M: 1.137 TRY/ton

2018/6M 2019/6M

1,303

2,15368

6513

81

Mil

lion

TR

Y


1.384

2.299

2018/6M 2019/6M

212

321

45

39

-2

6

Mil

lion

TR

Y


255

366

2018/6M 2019/6M

108

23637

31

-6

7

Mil

lion

TR

Y


140

274

25






Content

Real Estate Development Group

Tekfen Real Estate Dev. Inv. and Trade Co., Inc

Business Line: Investment, Development, Project Management, Asset Management

Tekfen Tourism and Management Co., Inc

Business Line: Facility Management

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

Business Line: Investment, Development

Tek

fen

Rea

l E

sta

te D

evel

op

men

tG

rou

p

Organization

26

ProjectsReal Estate Development Group

¹ In the 4th quarter of 2018, the construction license was renewed and new design works were initiated according to the changing market conditions. Current market conditions

are observed to start sales and construction.

² Includes 80% Tekfen share.

³ 12,58% Tekfen's share in the project.4 6.84% Tekfen's share in the project.5 Targeted exit date for Dortmund and Berlin investments.

Project Project Function LocationStart Date of

Project

End Date of

Project 5

Estimated Project Size

(million)

HEP Istanbul Project Residential Istanbul May.13 Dec.17 TRY660

Topkapı Project¹ Residential Istanbul Apr.16 - -

Berlin Project² Residential Dahlem Dec. 18 Dec. 21 €57.5

Dortmund Investment³ Office Dortmund Apr.19 July 2023 €4.7

Berlin Investment4 Office Mitte June 19 June 2024 € 9

BREAKDOWN BY FUNCTION (m²)

Project Residential Sellable/

Leasable Area

Office Sellable/

Leasable Area

Retail

Sellable/

Leasable Area

HEP İstanbul Project 180,155 - 2.595

Topkapı Project 45,062 - 2,118

Berlin Project 4,500 - -

Dortmund Investment - 24,611 -

Berlin Investment - 64,774 -

27

İzmir Project Land Value (Tekfen Share): USD 35 million

Real Estate Development Ongoing Projects

HEP İstanbul Housing Project

Overview:

➢ Being developed on 56,800 sqm land area which is purchased in

May 2013

➢ Construction permit granted on December 2013 for the project

including 1,424 residential and 25 retail units

Project Size: TRY 660 million

Tekfen Share: 100%

Project Summary :

➢ Total Sellable Space: Housing: 180,155 sqm, Retail: 2,595 sqm

➢ Project Period - Start: 2013/Q2, Completed as of 2017/Q4

➢HEP Istanbul is spacious and well-designed multi-family housing

project in Esenyurt&Beylikdüzü region

➢The first project of its kind in the area to receive The LEED

Silver and Gold Certification given by USGBC in the housing

category.

Investment Rationale:

Residential demand is still strong in region, which has driven a its

developing transportation infrastructure, and its location on the

intersection between the E5 highway and TEM motorway.

1,289 residential units having a total area of

154,028 sqm and 3 retail units with a 770 sqm gross

area have been sold as of June 30th 2019. Total

sales amount is TRY484,69 million and 1,283 units

(including retail units) have been delivered to the

new owners. 1,147 owners are settled.

28


Topkapı Housing Project

Overview:

➢ A total of 13,793 sqm net land area

➢ Following the obtained construction permit, the sales of the

residential project supported by retail units is planned to be

started and the project is planned to be completed within 24

months.

Project Size:

Tekfen Share: 100%

Project Summary :

➢ Total Sellable Space:

Housing: 45,062 sqm, Retail: 2,118 sqm

➢ Estimated Project Period - Start: 2016/Q2, Completion: *

Investment Rationale:

➢ High accessibility, at the crossroads of highways, in walking

distance to the metro.

➢ Rapid transformation of light industrial area to residential units

supported by the zoning plans.

➢ Residential demand has increased after public and private

universities and hospitals became operational.

29

The building license approval process has been granted

in 2018 Q4. As a result of current economic

developments, the project is re-evaluated in line with

the existing market conditions and sales

price/construction cost equilibrium.

It is planned to develop a strategy plan in line with the

current market conditions and the construction and

sales process will be started accordingly. In this

context, the project design brief was updated and new

design studies were initiated.

* Project end date will be determined by the date of construction start.


Berlin Project

Overview:

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

shareholder with the purchase of 80% share in the renovation

project of two historical buildings located in Dahlem district of

Germany / Berlin.

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

completed and the renovation license will be renewed. It is aimed

to complete the construction of the buildings in about 24 months.

Total Estimated Tekfen Project Size (Tekfen Share) : 57.5

million Euro

Project Summary :

➢ Total Sellable Housing Area: 4.500 sqm

➢ Estimated Project Start – 2018/Q4, Completion: 2021/Q4

Investment Rationale :

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

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

garden and consular buildings. It is also one of the important

academic research centers of the city.

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

while the housing supply was 30,716 units. The ratio of housing

demand to housing supply is 1.69. There are 857 apartments in this

supply. The district of Steglitz-Zehlendorf is the district with the

highest number of apartment supply with 114 apartments.

The Company's shares are allocated on behalf of

HMB, a subsidiary of Tekfen Holding in Germany.

The project consists of two historical buildings built in

1907. In addition, there is a parking lot for 31 vehicles

in the underground car park, which is currently used as

common in the plot. The historical buildings already

have a building license. The design works for 1.500

m2 and 3.000 m2 total of 4.500 m² sellable / leasable

area to be converted into a luxury housing project has

been initiated. It is aimed to obtain a renewal license

in 2019.

30


Dortmund Investment Project

Overview:

➢ On 2 May 2019, an investment in the amount of 3 million Euro

with the purchase of 12.58% share was made on behalf of Tekfen

Real Estate for the fund which was established by international funds

for the acqusition and operation after the partial renovation of the

office building built in 1993 located in the city center of Dortmund /

Germany.

➢ The pre-sales agreement was signed on 7 May 2019 and the title

deed transfer of the real estate will be realized on 31 July 2019.

➢Total Estimated Project Size (Tekfen Share): 4,7 million Euro

Project Summary :

➢ Total Leasable Area: 24,611 sqm



➢ The project is located in the city center of Dortmund, opposite

side of the opera house, at the primary location on Hiltropwall Street

with high accessibility and visibility.

➢ Value add is targeted by refurbishment and releasing of vacant

spaces.

The office building with a GLA of 24,611 m² , is used

by Postbank, the owner of the property. Postbank will

continue to be a tenant in the half of the building and

the remaining parts will be leased again after the

renovation.

31


Berlin Investment Project

Overview:

➢ On 17 June 2019, an investment in the amount of 5 million Euro

with the purchase of 11.44% share was made on behalf of Tekfen

International based in Luxemburg, a subsidiary of Tekfen Holding,

for the fund which was established by international funds for the

acqusition and operation of the office building located in Berlin /

Germany after the partial renovation. Tekfen International's share in

the project is 6.84%.

➢ The pre-sale agreement was signed on 18 June 2019 and the title

deed transfer of the real estate will be realized at the end of the year.

Total Estimated Project Size (Tekfen Share): 9 million Euro

Project Summary :

➢ Total Leasable Area: 64,774 sqm



➢ The project is located in the area of Wedding in the district of

Mitte in Berlin and on the Seestraße, one of the main axes of the

area.

➢ Value add is targeted by refurbishment and releasing of vacant

spaces.

The office campus, which was established in the early

1900s as Germany's first bulb-producing factory,

consists of a total of 5 blocks. There is a tram and bus

stop 140 m away and a metro station (U-Bahn) 600 m

away.

32

Disclaimer

33

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.

Contact Information

❖ For General Questions and Requests for Reports:

Çağlar Gülveren, CFA Investor Relations and Corporate Governance

Director, Tekfen Group of Companies

e-mail: [email protected]

Tel: +90 212 359 3420

Can Çimenser, Investor Relations Assistant Manager

e-mail: [email protected]

Tel: +90 212 359 3809

34

mailto:[email protected]

mailto:[email protected]

Documents

01.01.2019- 30.06.2019 Financial & Operational HighlightsBasic Balance Sheet Items (Million TRY) 31 Dec 18 30 June 19 Change (%) Total Assets 12,036 12,461 4 Shareholders' Equity 4,424