Upload
others
View
10
Download
0
Embed Size (px)
Citation preview
Tekfen GroupAt a glance
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
1956 Feyyaz Berker, Nihat Gökyiğit and Necati Akçağlılar formed an engineering consulting company
1957 The three partnersestablish Tekfen Construction Ltd.
1963 Tekfen Industry and Trading Co., Inc. is founded to produce incandescent lamps.
1970 Foundation of Tekfen Manufacturing
1971 Foundation of Tekfen Holding
1975 Iraq-Turkey pipeline
1978 Tekfen Construction goes overseas
1981 Toros Fertilizer starts production
1984 Foundation of Tekfen Engineering
1989 Tekfenbank Acquisition of Akgübre fertilizer
1992 Tekfen Philarmonics
2000 Tekfen Real Estate Development Group
2001 Acquisition of Bank Ekspres
2003 Tekfen Tower opens
2005 Acquisition of Samsun Gübre fertilizer plant
2006 Completion of BTC crude oil pipeline
2007 Partnership with Eurobank EFG in Tekfenbank
Acquisition of EFG Istanbul Securities
IPO of Tekfen Holding
2012 Sale of Eurobank Tekfen
2018 Acquisition of Alanar & Alara
2
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Corporate Governance
Share Classes
Single type of shares (one share one
vote)
Composition of the Board
4 out of 11 members are independent.
Board members to be elected for max.
of three years
Dividends
30% of the distributable income has to
be paid out
Ownership Structure
No cross ownership within the group
Gökyiğit
22.0%Berker
22.6%
Akçağlılar
6.7%
Others 1.5%
Free Float
47.2%
Ownership structure
3
www.tekfen.com.tr
Tekfen Group
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*: 74%
Main Operations
• Fertilizer production and
distribution
• Terminal services
• Seed, sapling and seedling
production and distribution
• Free zone operations
Main Companies
• Toros Agricultural Industry
& Trade
• Toros-Adana Yumurtalık
Free Zone
• Hishtil-Toros Seedling
Industry & Trade
• Black Sea Fertilizer Trade
• Tekfen Agriculture and
Trade
Agri Industry
Share in consolidated
revenues*: 24%
Main Operations
• Real Estate Development
• Construction & Marketing
of Real Estate Projects
• Facility Management
Main Companies
• Tekfen Real Estate
Development
• Tekfen Tourism & Facility
Management
• Tekfen Real Estate
Investment
• Florya Real Estate Inv.
Const. Tourism Co., Inc
Real Estate
Share in consolidated
revenues*: 1%
Tekfen Insurance
• Authorised agent of 18
insurance and 3 pension
fund companies
Tekfen Ventures
Venture fund that invests in
industrial and enterprise
software and hardware
technologies
Other
Share in consolidated
revenues*: 0%
* As of 31.12.2018 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.
5
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.
6
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.”
7
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.
8
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
19.000 employees.
Number of employees
Contracting Agri IndustryReal
EstateTotal
2013 13,614 1,033 348 15,514
2014 11,988 1,020 380 13,878
2015 11,359 1,058 390 13,234
2016 12,691 1,102 401 14,295
2017 16,696 1,112 382 18,296
2018 17,539 1,140 366 19,180
Number of employees (breakdown by segment)
9
15,514 13,878 13,234 14,295
18,296 19,180
2013 2014 2015 2016 2017 2018
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
EPC Turnkey Delivery
Design &
Engineering
Manufacturing &
Design of Process &
Storage Equipment
Turnkey
Construction
Export Finance &
Procurement &
Logistics
• EPC >> (also commissioning, start-up,
operational support &training)
• EPC-F >>
• EPCM >>
• Engineering
• Owner’s Engineer
• Procurement Services
• EPCM <<
• Job orders
• Erection Supervision
• EPC <<
• Lump sum turnkey
Construction
Contracts
• Procurement
Services
• EPC-F (B2B to
TEKFEN
Construction)
Group
11
Contracting
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 98 among the world’s 250 biggest international contractors, based on
contracting revenue from projects outside home country, in a list published by
Engineering News-Record magazine in 2018.
• Employing over 2,500 permanent technical and administrative staff and with an
extensive selection of new and well-maintained equipment and machinery
• Over 350 projects with a total amount of US$15 billion completed.
• Successfully completed US$9 billion worth of projects abroad.
• The Group has broken records for working hours without LTI (lost time incident) in
Azerbaijan, Kazakhstan and Ceyhan projects. 12
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Selected Clients
13
TURKISH
• TCK, Turkish State Highways Authority
• EÜAŞ, Electricity Production Co.
• PETKİM, Petrochemical Co.
• TÜPRAŞ, Turkish Petroleum Refineries Co.
• BOTAŞ, Petroleum Pipeline Co.
• Ministry of Public Works and Settlement
• Several Municipalities
• TPAO, Turkish Petroleum Co.
• DSI, State Hydraulic Works
• Turkish State Railways Authority
• Turkish Olympic Committee
• Ministry of Energy and Natural Resources
• DLH, State Harbours and Airports Authority
INTERNATIONAL
SAUDI ARABIA IRAQ
• Saudi Aramco
• Ma’aden
• Petro Rabigh
• WCC, Saline Water Conversion Co.
• Min. of Agriculture & Water
• Min. of Municipal & Rural Affairs
• SCOP, State Company for Oil Projects
• North Refineries Company
QATAR
• Qatar Petroleum
• QAPCO
• Ashghal (Public Works Authority)
KUWAIT MOROCCO
• Ministry of Public Works
• KOC, Kuwait Oil Co.
• OCP, State Phospate Company
• SAMIR, Refinery Company of Morocco
OTHER
• AGIP
• Shell
• BP
• BTC, Baku Tbilisi Ceyhan Pipeline Co.
• Uzbekneftegas, Uzbekistan
• Kazakturkmunay, Kazakhstan
• CPC, Caspian Pipeline Consortium, Kazakhstan
• AIOC (Azerbaijan Operating Co. led by BP)
• BP Exploration Shah Deniz Ltd.
• Georgian Pipeline Co.
• MMRA, Libya (Man Made River Authority)
• SOCAR (State Oil Company of Azerbaijan)
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Selected International Project Partners
14
• Alstom, France
• AMEC, UK
• Babcock Borsig Power, Germany
• Chiyoda Corp., Japan
• Fluor, USA
• Foster Wheeler, Italy
• Hitachi Plant Technologies, Japan
• Impregilo, Italy
• Itochu, Japan
• JGC, Japan
• John Brown, UK
• Lurgi GmBH, Germany
• Marubeni Corp., Japan
• Mitsubishi Corp., Japan
• Mitsui Corp. Japan
• Mitsubishi Heavy Ind., Japan
• NEC, Japan
• Nippon Signal, Japan
• Parsons Inc., USA
• Petrofac, UAE
• SAE, France
• Saipem, Snamprogetti, Italy
• Siemens, Germany
• Skoda Export, Czech Republic
• Sofregaz, France
• Spie Batignolles, France
• Technip, Germany
• Technicas Reunidas, Spain
• Toyo Engineering, Japan
• Uhde GmbH, Germany
• Vinci, France
• Williams Brothers, USA
Contracting
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 2018-end, Tekfen Contracting Group had an active portfolio of US$
2.7 billion, 90% of which were outside of Turkey, located in 6 different
countries.
• In 2018, Tekfen added 5 new projects to its backlog with a total size of
US$ 895 million. These projects are in Saudi Arabia (US$ 589 million),
Qatar (US$ 9 million), Turkey (US$ 59 million), Kazakhstan (US$ 234
million) and in Georgia (US$ 3 million).
Overview
15
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Total Manpower: 18.417*
TURKEY:8.414 ABROAD:10.003
Manpower
Azerbaijan 2.782
Morocco 1
Qatar 2.979
Russia 1Iraq 244 Saudi Arabia 1.369
Kazakhstan 2.624
Turkmenistan 3
16* As of 2018-end including subcontractors.
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Manpower Structure
17
NATIONALITY
TURKISH 12,294 66.75%
AZERBEIJANI 1,205 6.54%
TURKMEN 3 0.02%
MOROCCAN 8 0.04%
INDIAN 292 1.59%
NEPALESE 115 0.62%
PHILIPIN 86 0.47%
ETHIOPIAN 8 0.04%
KAZAKH 44 0.24%
IRAQI 4 0.02%
SAUDI 275 1.49%
OTHERS 4,083 22.17%
TOTAL 18,417 100%
DISIPLINE&DIVISION
ENGINEERS 1,034 5.61%
MANAGEMENT 203 1.10%
PROCUREMENT 43 0.23%
ADMIN 244 1.32%
QA&QC/HSE 199 1.08%
TECHNICIANS 92 0.50%
FOREMEN 318 1.73%
OPERATORS&DRIVERS 790 4.29%
CIVIL WORKS 1,272 6.91%
ELECTRICAL WORKS 239 1.30%
PIPE&WELDING WORKS 1,416 7.69%
MECHANICAL WORKS 973 5.28%
STEEL&ERECTION
WORKS230 1.25%
OTHERS 3,391 18.41%
SUBCONTRACTORS 7,973 43.29%
TOTAL 18,417 100%
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Areas of Expertise
18
BASIC
ENGINEERING*
DETAILED
ENGINEERING
PROCUREMENT FABRICATION CONSTRUCTION START UP
E
E + P
E + P + F
E + P + C
PMS
* In pipelines, tank farms / terminals, motorways, bridges, tunnels, infrastructure and civil projects.
E : Engineering F : Fabrication
P : Procurement PMS : Project Management Services
C : Construction
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
RefineriesPetrochemical
Complexes
Oil & Gas
PlatformsPower Plants
BridgesMotorways Stadiums High-Rises
Pipelines
TunnelsRailwaysJetties
Underground
Gas StoragesStorage
Tanks
Business Areas
19
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
569 484 484 368 237 159 111 72 75 34 36555
561 474754 572 782 578
266
175 201 242167 264
1,5351,350
1,6681,257 1,225
1,794
1,449 1,589
2,5241,619
1,139
2,8882,841
2,480
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Turkey Abroad
• Thanks to its increasing investments in oil and gas producing countries, starting from 2005, the
backlog of Tekfen Contracting Group abroad increased significantly.
Backlog (US$ million) - 31 December 2018
Backlog Growth
20
744 685 726535 501
1,694
1,461
1,740
1,333 1,259
1,830
2,1502,005
2,998
2,373
1,711
3,6703,419
2,747
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Backlog (as of 31 December 2018)
21
* Not included in the consolidated revenues. Consolidated using equity method.
** The contracted work for this project will start as soon as the investor companies complete the project financing.
Project Location
Expected End
Dates
Current Contract
Price Tekfen Portion
Revenue Based
Completion Rate
Remaining Amount
(US$)
TANAP Project Lot3 Turkey 25/12/2017 608,777,899 $ 608,777,899 $ 99.3% 4,013,110
TANAP Compressor and Metering Stations Turkey 31/05/2019 464,387,823 $ 464,387,823 $ 88.3% 54,140,661
Afyon - Uşak Rapid Train Project and Afyon Direct Pass Infrastructure Turkey 30/06/2020 253,118,440 $ 126,559,220 $ 31.9% 86,237,001
Recieving Terminal Civil Works Turkey 15/10/2019 136,866,050 $ 136,866,050 $ 50.7% 67,429,151
TÜPRAŞ İzmit Refinery Maintenance & Repair Works Turkey 31/12/2019 18,923,569 $ 18,923,569 $ 24.8% 14,221,659
TÜPRAŞ İzmit Refinery Fluid Catalytic Cracker Revamp Installation Works Turkey 12/03/2021 40,104,913 $ 40,104,913 $ 0.0% 40,104,913
TURKEY TOTAL 266,146,495
Ministry of Tax Tower Azerbaijan 13/04/2021 156,396,082 $ 156,396,082 $ 30.3% 109,037,952
AZFEN Projects* Azerbaijan 19/03/2021 705,273,554 $ 282,109,422 $ 85.4% 41,118,593
AZERBAIJAN TOTAL 150,156,545
Jeddah Janbu Pipeline S. Arabia 28/02/2021 299,654,285 $ 299,654,285 $ 34.3% 196,825,886
Haradh Satellite Gas Compression Plants' Pipelines S. Arabia 09/08/2021 589,278,769 $ 589,278,769 $ 0.0% 589,278,769
SAUDI ARABIA TOTAL 786,104,654
Al Khor Expressway Qatar 25/03/2020 2,251,445,294 $ 2,251,445,294 $ 65.6% 774,954,507
Main Works for the Fifth Precinct Stadium Qatar 05/12/2019 343,663,227 $ 171,831,614 $ 20.3% 137,004,567
Design and Construct Service Road Enhancement to North Road Corridor Qatar 25/02/2019 978,264,270 $ 978,264,270 $ 98.4% 15,211,553
East Industrial Road Qatar 04/12/2019 199,895,018 $ 199,895,018 $ 20.2% 159,584,812
Design & Build of Celebration Pavilion Extension of the Building at Al Bidda Park Qatar 31/10/2018 9,409,794 $ 9,409,794 $ 99.8% 22,944
QATAR TOTAL 1,086,778,383
Installation Services for Dehydrators & Desalters Iraq 30/09/2019 32,288,573 $ 32,288,573 $ 27.7% 23,333,596
IRAQ TOTAL 23,333,596
Construction Compound Main Works Kazakhstan 29/01/2019 73,781,669 $ 73,781,669 $ 93.5% 4,830,734
FGP Temporary Construction Facilities Kazakhstan 03/08/2019 114,495,423 $ 114,495,423 $ 65.3% 39,672,970
FGP Wellhead Pressure Management Project Kazakhstan 24/04/2022 451,378,848 $ 451,378,848 $ 14.4% 386,347,071
KAZAKHSTAN TOTAL 430,850,775
Provision of Repair Services & Rehabilitation Works for BTC Georgia, SCPC & GPC Georgia 19/03/2021 19,500,000 $ 3,250,000 $ 0.0% 3,250,000
GEORGIA TOTAL 3,250,000
TOTAL 2,746,620,448
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects (as of 31 December 2018)
Backlog Breakdown by Regions
Region US$ (million)
Middle East 1,896
Turkey 266
Caspian Region 584
Total 2,747
Backlog Breakdown by Project Types
Project Type US$ (million)
Transportation 1,036
Pipeline 848
Buildings 291
Industrial Facilities 573
Total 2,747
22
Middle East69%
Turkey10%
Caspian Region
21%
Industrial Facilities
21%
Buildings11%
Transportation38%
Pipelines31%
Contracting
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%.
23
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
• Founded in 1984.
• The Largest Engineering Company in Turkey, in Oil & Gas
• Undertakes the engineering (E) of EPC projects and the detailed engineering in other projects
of Tekfen Contracting Group.
• Has experience on a wide spectrum of projects, with an emphasis on pipelines, industrial,
process plants and motorways.
• The company employs a professional staff of over 170 engineers who utilize advanced
software in the preparation of all design and contract documents.
• Also serves non-group clients, mainly the General Directorate of Highways and
municipalities. Non-group clients generate around 35% of Tekfen Engineering’s business
volume.
• Disciplines:
Tekfen Engineering Co., Inc.
Engineering
24
Laser
Scaning
Process Plant &
Piping
Static &
Rotating
Equipment
Instrumen-
tation &
Control
Electrical &
Telecom-
munication
Architec-
tural
Structural Transpor-
tation
Contracting
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.
25
• Design and fabrication are carried out according to International Codes
such as ASME, API, TEMA, AD-2000, EN 13445, BS etc. and the company
is qualified to work with all sorts of carbon steel materials (including high
tensile quenched and tempered), clad carbon steels, all types of stainless
steels, non-ferrous materials such as Monel, Brass, Aluminum etc.
•Heavy manufacturing facility in Derince (Kocaeli), Turkey.
• Kuwait, Saudi Arabia, Iraq, Iran, Pakistan, Libya, Syria, Jordan, Oman,
Lebanon, Israel, Northern Cyprus, Morocco, Tunisia, Senegal, Sudan,
Russia, Kazakhstan, Turkmenistan and Azerbaijan are the countries that
the company exports.
• Spread on an area of 48,500 m2, of which 18,000 m2 is covered.
Contracting
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
26
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Revenues and EBITDA Margin
Revenues (TRYmn) and EBITDA Margin (%)
• Expected project-end EBITDA margin on project basis varies from 10% to 25% at the beginning of
each project.
27
1,0291,319 1,339 1,111
1,8642,395 2,327
2,7682,153
2,824
4,862
9,006
11,649
7.2%
8.3%
11.0%
13.2%
9.3%
5.9%
-4.3% -1.4%
7.6%
9.3%
11.3%
10.7%
11.5%
-6.0%
-1.0%
4.0%
9.0%
14.0%
19.0%
-1,000
1,000
3,000
5,000
7,000
9,000
11,000
13,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E
Revenue EBITDA Margin
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
TURKEY – TRANS ANATOLIAN NATURAL GAS PIPELINE PROJECT (TANAP) COMPRESSOR AND METERING STATIONS
Project scope includes engineering, procurement, construction, erection, testing, pre-commissioning & commissioning,
initial start and support for performance testing phases of the compressor and metering stations of the Trans-Anatolian
Natural Gas Pipeline (TANAP) Project at four different locations in Turkey; MS1 and CS1 at Ardahan, CS5, CS5 Off-take and
MS2 at Eskişehir, MS3 at Çanakkale and MS4 at Edirne. Duration of work is 39 months from commencement date of the
contract and the contact value is US$ 457 million.
Ongoing projects – Turkey
28
Contracting
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 – THE NEW MANAGEMENT OFFICE OF MINISTRY OF TAXATION OF AZERBAIJAN
One of the newest landmark of Baku, The New Management Office of Ministry of Taxation of Azerbaijan will be constructed
by Tekfen Construction. Five monumental cube shaped high rise tower has 33 floors with 169 meter height. High tech office
building has 44,300 square meter gross floor area with unique shaped 35,400 m2 façade. Design of The New Management
Office of Ministry of Taxation of Azerbaijan also contains recreation areas, conference halls, helipad, underground car park
and special floor gardens together with the auditorium building. Steel structure, reinforced concrete and facade works of
the project will be completed in 24 months with the contact value of US$ 94 million.
Ongoing projects – Caspian Region
30
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects – Caspian Region
31
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects - Middle East
32
SAUDI ARABIA- JANBU-JEDDAH PIPELINE
The purpose of the project is to efficiently meet the Kingdom’s refined product demands in Makkah Province. The turnkey
construction of the 333 Km long 20" gasoline and 24" jet fuel pipeline system (YNJ-1 & YNJ-2) with ultimate capacity of 577
MBD (240 MBD & 337 MBD respectively) is planned to deliver products from the proposed Yanbu’ Distribution Hub to the
existing and expanded North Jeddah Bulk Plant facility. The pipelines shall use a dual pipeline arrangement to deliver two
grades of gasoline (PG91 & PG95), ULSD and Jet A-1 refined products to an upgraded and expanded NJBP. The project will
be completed in 47 months with the contact value of US$ 299 million.
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects - Middle East
33
QATAR – DESIGN AND BUILD OF AL KHOR EXSPRESSWAY
The Project comprises the Design and Build of a 34 Km long expressway b/w Al Khor and Doha with a total of
10 lanes in both directions (five traffic lanes in each direction) and various junctions, viaducts, and over-
passes and under-passes. Project size is ~US$ 2.1 billion. The project will be completed in 36 months. The
carriageways shall be divided by a central median which includes provision for the future Qatar Rail Metro
Red Line. A network of service roads is required adjacent to the main alignment which connects the upgrade
to existing and future developments. A shared pedestrian/ cycle way shall be constructed along the length of
one side of the expressway in addition to a separate fast cycle track adjacent to the service roads on the other
side of the expressway. The Works also include Landscape, Hardscape and Artscaping.
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects - Middle East
34
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 for the turnkey delivery of the engineering and construction work of the
"Main Works for the Fifth Precinct Stadium" Project, where games the 2022 Qatar World Cup will be held. The
Fifth Precinct Stadium will be one of the eight stadiums which will host matches in the 2022 FIFA World Cup
Qatar (the Tournament); the stadium will be the host venue for the group, knockout and quarter-final matches.
The Stadium shall be designed and constructed to meet the Federation lnternationale de Football Association
(FIFA) standards in Tournament mode and will house minimum 40.000 Net spectators during the Tournament.
After the World Cup, Stadium will be converted into a legacy mode as an approximately 20.000 seat stadium
and a sport city for local football clubs, complemented by other mixed uses.
The cost of the project will be US$ 342.5 million (~US$ 171.2 million Tekfen share) and will be completed in 33
months.
35
Contracting
Tekfen Group Contracting www.tekfen.com.trAgri Industry OtherReal Estate
Ongoing projects - Middle East
36
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
37
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
Overview
39
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
2013 2014 2015 2016 2017 2018
TR
Y M
illio
nTerminal
Agri
589
16%
84%
• Active in fertilizer, seed, seedling and sapling production and distribution, as well as marine terminal
services and free zone operations
• Consolidated turnover of TRY 2,965 million as of 2018
• Significant player in port activities, providing services to third parties in two ports strategically located
at the Eastern Mediterranean and the Black Sea Coast
Turnover Breakdown EBITDA Breakdown
40
Overview
2013 2014 2015 2016 2017 2018
TR
Y M
illio
n
Terminal
Agri
2,240
8%
92%
2,9655%
95%
1,423
1,626 1,659
1,851
95% 95% 93%93%
5%
5% 7%
7%468
117
248
145
290
74%
74% 83%71%
50%
26%
26%
17%
50%
29%
Agri Industry
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
41
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
42
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
43
• Compound fertilizers (NPs and NPKs):
• DAP - Di-Ammonium Phosphate
• NP 20.20
• NP 20.20+Zn
• NPK 15.15.15
• NPK 15.15.15+Zn
• Special grade compound fertilizers:
• NPK 25.5.10
• NPK 15.15.15 Gold
• NPK 10.20.20
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
2018 Total Sales: 1.84 million tons
Fertilizers – Sales
44
2017 Total Sales: 1.95 million tons
AN26 25%
AN33 5%
AS 6%Urea 13%
DAP 11%
NP/NPK (Compound)
40%AN26 22%
AN33 8%
AS 5%Urea 12%
DAP 12%
NP/NPK (Compound)
39%
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Consumption and Toros Sales Volume/Market share Turkey’s Total Production and Toros’ Share
Turkey’s Total Imports and Toros’ Share
Fertilizers – Leader in Turkish Fertilizer Market
45
10%
8%6%
11%
8%
10%
0%
2%
4%
6%
8%
10%
12%
0
1,000
2,000
3,000
4,000
5,000
2011 2012 2013 2014 2015 2016 2017 2018
1000 t
on
s
Total Imports Toros Imports Toros Share* 2017 market data hasn’t been disclosed
** 2018 market data hasn’t been disclosed
*
37%
39%39%
42%
37%
39%
41%
28%
31%
34%
37%
40%
43%
0
1,000
2,000
3,000
4,000
5,000
2011 2012 2013 2014 2015 2016 2017 2018
1000 t
on
s
Total Production Toros Production Toros Share
31%31%
28%
31%
27%
26%
26%
16%
19%
22%
25%
28%
31%
34%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2011 2012 2013 2014 2015 2016 2017 2018
1000 t
on
s
Consumption Toros Sales Market Share
****
**
Agri Industry
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
46
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
47
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Fertilizers - Integration Investments
48
Place: Samsun Plant
Scope: Sulphuric and phosphoric acid investments,
NPK revamp investment
Amount: $335 million
Period: 2013-2015
Aim:
✓ Ensuring raw material supply security
✓ Self sufficiency in acid production
✓ Decreasing production costs
Agri Industry
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**
49
• 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
50
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Procurement - Breakdown by Products
Fertilizers – Production and Imports
51
Production - Breakdown by Products
47%52%
49%
55%
50% 47%
19% 18% 19% 17%
31%27%
23% 20% 24%
16%
5%
10%11% 11% 8%12%
13% 14%
2013: 1.41 mn tons 2014: 1.49 mn tons 2015: 1.37 mn tons 2016: 1.30 mn tons 2017: 1.58 mn tons 2018: 1.60 mn tons
Compund(NP/NPK)
AN 26(CAN)
AN33
DAP
50%
40%
77%
62%
50%
63%
33%
21% 20%22%
46%37%
15%
27%
3%0% 0% 0%0%
12%
0%
16%
4%0%2% 0% 0% 0% 0% 0%
2013: 189K tons 2014: 360K tons 2015: 232K tons 2016: 365K tons 2017: 558K tons 2018: 439K tons
Urea
AS
AN33
DAP
Other
*Due to the ban of AN33 in the local market, the production was minimized just for exporting purpose.
*
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Marine Terminal Services
52
✓ Providing loading/unloading and storage
services to third parties
✓ Ceyhan Port:
• Turkey’s 7th largest dry bulk & general
cargo port
• One of the most important transit
terminals for petroleum products in
Eastern Mediterranean
✓ Strong brand name associated with high-
quality customer service, technical know-how
and seasoned employees
Agri Industry
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
53
• 2 jetties with 8 berths handling 60,000 tpd of dry bulk cargo and 20,000 tpd
of liquid bulk
• Closed storage area capacity: 300,000 tons
• Open storage area capacity: 1,000,000 tons
• Tank farm capacity: 195,000 m3
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Marine Terminal Services
54
Dry&Liquid Bulk and General Cargo*
Handled Quantity (mn tons)Petroleum Products
Occupancy Rate
*Does not include petroleum products’ handling volume
5.36
4.48
5.606.00
7.00
4.18
2013 2014 2015 2016 2017 2018
40%
55%60%
70%77%
42%
2013 2014 2015 2016 2017 2018
Agri Industry
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
55
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
56
Free zone operations:
• Founding partner and operator of the largest free
zone in Turkey
• 4.5 million m2 of area
• Strategically located in Ceyhan region which is
becoming the energy hub for Turkey
Agri Industry
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
57
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Social Responsibility
58
Supporting farmers;
• Educational seminars and training
programs to improve agricultural
productivity and product quality
Raising awareness;
• Supporting UNFPA’s “Improving health conditions of
seasonal workers in agriculture” program in Turkey
• “Wheat” documentary based on field trials done by
Toros throughout Turkey
• Sponsorships for scientific research and academic
seminars on agriculture and fertilizers
• “Balanced Fertilization with Right Fertilizers” Project
with the support of the Ministry of Food, Agriculture
and Livestock
• “Toprak Ana” (Mother Earth) documentary about
agricultural production in Turkey
Supporting local communities;
• Sponsoring sporting activities in Samsun and
Mersin
• Toros Primary School and Toros Secondary School
in Adana, and Toros Tarım Necati Akçağlılar High
School in Samsun
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Alanar Fruit & Alara Sapling
59
Current Situation
✓ Total area of ownership 3,632.9 decare and leased area of
1,108 decare, including 204,408 trees
✓ Produces and sells cherry, black fig, apricot,
pomegranate, nectarine, Japanese plum, persimmon,
chestnut
✓ 25% of the total sales are from production while, 75% of
the sales are imports
✓ Share of exports in total sales is around 90%
✓ Main export markets are Germany, England and Sweden
✓ 10.4% EBITDA margin in 2016
Targets After Tekfen Partnership
✓ New land investments of 6,011 da between 2017-2020
✓ Four new plant investments in Alasehir, Aydin, Malatya
and Bursa and various equipment investments
✓ Sales volume of 19,000 tons in 2022
✓ Share of sales from production to remain within the
range of 25-30%
✓ Targeting TRY225mn revenues and 16% EBITDA
margin in 2022
✓ Share of exports in total sales to remain at 85% level
Products are exported more than 30 countries
Agri Industry
Agri Industry www.tekfen.com.trReal EstateTekfen Group OtherContracting
Tekfen Agri - 2019 Expectations
60
0
20
0.0%
8.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
0
5
10
15
20
25
2018 2019E
EBITDA (TRYmn) & EBITDA margin (%)
EBITDA EBITDA Margin
-2
5
-1.3%
2.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
-4
-2
0
2
4
6
2018 2019E
Net profit (TRYmn) & Net margin (%)
Net Profit Net Margin
158
251
0
50
100
150
200
250
300
2018 2019E
Revenues (TRYmn)
Revenues Linear (Revenues)
59%
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
Real Estate
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
62
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
Completed Projects
• First Mixed-use dev. in Turkey
• 180,000 m² Construction Area
• 34 680 m² GLA Shopping Mall
• 2 Office Towers (14 & 17 storey)
• Residential Tower (24 Storey)
• Class A+ Office Building
• Located in Istanbul
• 82.000 m² Construction Area
• 33.000 m² office GLA
• Residential Project
• Located in city center of Istanbul
• 24.000 m² Construction Area
• 18.500 m² Sellable Area
• 59 Residential Units
• Boutique Residence in aTangerine
Garden
• Located in Bodrum, Muğla
• 27,500 m² Land Size
• 2,350 m² Sellable area (18 units)
• Office Development Project
• Located in Istanbul
• 14,235 m² Land Size
• 55,000 m² Construction Area
• 32,000 m² office GLA
1994 2003 2006 2008
2009 2010
• Class A+ Office Building
• Located in Levent, Istanbul
• 15,300 m² construction area
• 7,970 m² office GLA
2012
• Residential Project located in Şişli,
Istanbul
• 83 units (residences, home-offices, retail)
• 2.500 m² Land size
• 17,000 m² Construction Area
2012
Akmerkez Tekfen Tower Taksim Residences Yalıkavak Homes
Müşkülüm Homes Levent Office Kağıthane Officepark Bomonti Apartments
• Summer House & Boutique Hotel
Project located in Bodrum, Muğla
• 60,000 m² Land, 12,500 m²
Sellable Area
• 40 Room Boutique Hotel
• 86 Residential Units
63
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
Esenyurt Project Residential May.13 Dec.17 661 TRY
Topkapı Project Residential Apr.16 ** **
Topkapı Project – II Residential Sep. 17 *** ***
Izmir Project Mixed Use Jan.16 **** ****
Berlin Project***** Residential Dec.18 Dec.21 57.5 Euro
Projects
64
Residential Office Retail
Esenyurt Project 180.155 - 2.595
Topkapi Project 45.062 - 2.118
Topkapi Project II 44.467 - -
Izmir Project* - - -
Berlin Project 4,500 - -
* The start date of the project is the signing date of the purchase date / contract date of the property, the construction start date is not
shown in the table.
** Tekfen has 50% share in the project. The feasibility of the project is being studied in line with the new areas and the new concept plan
considering the changing market conditions. New business plan will be examined by evaluating the 2019 real estate market overview.
*** Project end date will be set according to construction start date. The project strategy is being developed in line with the current market
conditions to start sales and construction process. The feasibility of the project is being studied accordingly.
**** Construction schedule will be set according to completion of the zoning process. The feasibility study of the project will be revised in
line with the current market conditions.
***** Tekfen’s share
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): 703
Tekfen Share : 100%
Project Summary:
• Total Sellable Space:
Housing: 180.155 m², Retail: 2.595 m²
• Construction Period- Start: Q2/2013 Complete: Q4/2017
Investment Rationale:
• Project property is in a sought-after area (Esenyurt)
because of its developing transportation infrastructure, the
city’s growth dynamics, and its situation on the
intersection between the E5 highway and TEM motorway
HEP Istanbul Project
65
1,226 residential units having a total area of 144,345 m² and 3 retail units
with a 770 m² gross area have been sold as of December 31st 2018, Total
sales amount is TRY446,22 million and 1,204 units (including retail units)
have been delivered to the new owners, 1,054 owners are settled.
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
• Following the obtained construction permit, the sales of the
residential project supported by retail units is planned to be
started and the project is planned to be completed within 24
months.
Total Project Size – (Revenues, TRY millions): 460
Tekfen Share : 100%
Project Summary:
• Total Sellable Space:
Housing: 45.062 m², Retail: 2.118 m²
• Construction Period Start: - Complete: *
Investment Rationale:
• High accessibility, near E-5 highway and intersection point for
tram, light metro and metrobus
• Rapid transformation of light industrial area to residential units
supported by the zoning plans
• Residential demand is increased after operational of the
universities and hospitals,
Topkapı Housing Project
66
Zeytinburnu Municipality requested revisions for the
project with the new board decision of the municipality,
after the project’s construction permit were obtained, For
this reason, the new plan was submitted to the
municipality, The building license approval process has
been granted in 2018 Q4, As a result of current economic
developments, the project is re-evaluated in line with
market conditions and sales price / manufacturing
balance, It is planned to develop a strategy plan in line
with the current market conditions and the construction
and sales process will be started accordingly, Sales office
construction work was suspended.
* Project schedule will be set according to the construction start date. In this period the feasibility of the project will be revised
in line with market conditions.
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: - 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
67
Revision works for the 1/5000 zoning plans have been
started, Approval of related institutions were taken for
approval process of Istanbul Metropolitan Municipality
(IMM), The plan revision proposal was submitted to IMM
approval and it is aimed to be put on the agenda of the
board meeting to be held in November, The approval of
1/5000 and 1/1000 revision zoning plans are targeted to be
completed in 2019 Q1, Considering the impact of the
current economic conditions on the real estate sector, the
development strategy of the project is evaluated by Tekfen
management,
(*) Construction schedule will be set according to completion of the zoning process. The feasibility study of the project will be
revised in line with the current market conditions.
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
68* The feasibility of the project is being studied in line with the new areas and the new concept plan considering the changing market
conditions. New business plan will be examined by evaluating the 2019 real estate market overview.
Real Estate Development
Real Estate www.tekfen.com.trAgri IndustryTekfen Group OtherContracting
Overview:
➢ On 21 December 2018, the Company has become the main
shareholder with the purchase of 80% share in the renovation
project of two historical buildings located in Dahlem district of
Germany / Berlin,
➢In 2019, the preliminary design works of the project will be
completed and the renovation license will be renewed, It is aimed to
complete the construction of the buildings in about 24 months,
Total Tekfen Project Share : 57,5 million Euro *
Project Summary :
➢ Total Sellable Housing Area: 4,500 m²
➢ Estimated Project Period - Start : Q4/2018, Completion:Q4/2021
Investment Rationale :
➢ Dahlem is located in the district of Steglitz-Zehlendorf, It is an elite
region with many low-rise and detached luxury houses with garden
and consular buildings, It is also one of the important academic
research centers of the city.
➢In 2017, the total demand for housing in Berlin was 41,240, while
the housing supply was 30,716, The ratio of housing demand to
housing supply is 1,69, There are 857 apartments in this supply, The
district of Steglitz-Zehlendorf is the district with the highest number
of apartment supply with 114 apartments.
Ongoing Projects
69
Berlin Project
The Company's shares are allocated on behalf of
HMB, a subsidiary of Tekfen Holding in
Germany, The project consists of two historical
buildings with a total 4,500 sqm of leasable /
sellable area, totaling 1,500 sqm and 3,000 sqm,
built in 1907, In addition, there is a parking lot for
31 vehicles in the underground car park, which
is currently used as common in the plot where
the project is located, The historical buildings
have a renewal license, and the buildings will be
renewed and converted into a total of 42 luxury
housing projects to be sold and rented,
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
70
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 12 million in
2018.
Assets
71
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
72
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Financial Highlights 74
Net Cash Position 75
Capital Expenditures 76
Disclaimer 77
Contact Info 78
Appendix
73
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Financial Highlights – Segmental Breakdown
74
TRY MillionRevenues 2017 % in Total 2018 % in Total 2019E % in TotalContracting 4,862 65% 9,006 74% 11,649 73%Agri Industry 2,240 30% 2,965 24% 4,102 26%Real Estate 351 5% 134 1% 158 1%Other 34 0% 42 0% 50 0%Total 7,487 100% 12,147 100% 15,960 100%
EBITDA 2017 Margin 2018 Margin 2019E MarginContracting 548 11.30% 959 10.70% 1340 11.50%Agri Industry 468 20.90% 589 19.90% 650 15.80%Real Estate 4 1.10% -3 -2.30% 14 9.10%Other -16 -45.30% -44 -104.50% -102 -203.90%Total 1,005 13.40% 1,501 12.40% 1,902 11.90%
Net Income 2017 Margin 2018 Margin 2019E MarginContracting 391 8.00% 741 8.20% 990 8.50%Agri Industry 347 15.50% 464 15.70% 616 15.00%Real Estate -14 -4.00% -25 -18.40% 8 4.80%Other 47 137.60% 221 521.50% -70 -141.10%Total 771 10.30% 1,402 11.50% 1,544 9.70%
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
331
2,136
3,596
2016 2017 2018 -475
227
-220
800
1,142
586
-393
801
2190
672
-95
828
Contracting Agri Industry Real Estate Other
2016 2017 2018
Tekfen Group
Net Cash Position*
Tekfen Group Net Cash Position (TRY million) Net Cash Position by segment (TRY million)
75
* Net of financial liabilities, cash, cash equivalents and deposits.
** TRY1,196 million advance payment collected in Qatar for the ongoing Al Khor Motorway Project is included.
*** TRY636 million advance payment collected in Qatar for the ongoing Al Khor Motorway Project and TRY326 million advance
payment from ongoing Haradh Project in Saudi Arabia is included,
****
***
***
www.tekfen.com.tr
Tekfen Group
Tekfen Group 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 61.1 0.6 3.1 232.7
2018 186.2 71.5 0.6 3.6 261.9
Capital Expenditures (Segmental Breakdown, Million TRY)
76
97193 184
402296
170233
262
2011 2012 2013 2014 2015 2016 2017 2018
www.tekfen.com.tr
Tekfen Group
Tekfen 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
77
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 34 20
Can Çimenser - Investor Relations Assistant Manager,
Tekfen Group of Companies
e-mail: [email protected] / [email protected]
Tel: +90 212 359 38 09
Contact Information
78