Tekfen Holding Investor Presentation March 2019
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Tekfen Holding Investor Presentation March 2019
Tekfen Group
At a glance
1956 Feyyaz Berker, 1970 Foundation of 1981 Toros Fertilizer 2000 Tekfen Real Estate 2007 Partnership with 2012 Sale of Eurobank
Nihat Gökyiğit and Tekfen Manufacturing starts production Development Group Eurobank EFG in Tekfen
Necati Akçağlılar Tekfenbank
formed an engineering 1971 Foundation of 1984 Foundation of 2001 Acquisition of Bank 2018 Acquisition of
consulting company Tekfen Holding Tekfen Engineering Ekspres Acquisition of EFG Alanar & Alara
Istanbul Securities
1957 The three partners 1975 Iraq-Turkey 1989 Tekfenbank 2003 Tekfen Tower opens
establish Tekfen pipeline Acquisition of Akgübre IPO of Tekfen Holding
Construction Ltd. fertilizer 2005 Acquisition of Samsun
1978 Tekfen Gübre fertilizer plant
1963 Tekfen Industry Construction goes 1992 Tekfen
and Trading Co., Inc. is overseas Philarmonics 2006 Completion of BTC
founded to produce crude oil pipeline
incandescent lamps. 2
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Tekfen Group
Corporate Governance
Ownership structure
Share Classes
Single type of shares (one share one
Free Float
47.2% vote)
Others 1.5% Composition of the Board
4 out of 11 members are independent.
Akçağlılar
6.7% Board members to be elected for max.
of three years
Gökyiğit
22.0%
Berker
22.6% Dividends
30% of the distributable income has to
be paid out
Ownership Structure
No cross ownership within the group
3
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Tekfen Group
At a glance
Contracting Agri Industry Real Estate Other
Main Operations Main Operations Main Operations Tekfen Insurance
• Construction • Fertilizer production and • Real Estate Development • Authorised agent of 18
• Engineering distribution • Construction & Marketing insurance and 3 pension
• Terminal services fund companies
• Fabrication of Real Estate Projects
• Seed, sapling and seedling
• Facility Management
production and distribution
Tekfen Ventures
• Free zone operations
Venture fund that invests in
Main Companies Main Companies industrial and enterprise
Main Companies
• Toros Agricultural Industry • Tekfen Real Estate software and hardware
• Tekfen Construction technologies
& Trade Development
• Tekfen Engineering
• Toros-Adana Yumurtalık • Tekfen Tourism & Facility
• Tekfen Manufacturing & Free Zone Management
Engineering • Hishtil-Toros Seedling • Tekfen Real Estate
Industry & Trade Investment
• Black Sea Fertilizer Trade • Florya Real Estate Inv.
• Tekfen Agriculture and Const. Tourism Co., Inc
Trade
Share in consolidated Share in consolidated Share in consolidated Share in consolidated
revenues*: 74% revenues*: 24% revenues*: 1% revenues*: 0%
4
* As of 31.12.2018
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Tekfen Group
Strategic focus
• Tekfen Holding is devoted to the motto “do what you know best in the best way
possible” which was determined by its founding shareholders. In this framework
Tekfen has focused on Contracting, Agri-industry / Terminal Services and Real-
Estate Development sectors.
• Contracting is an activity that Tekfen Holding operates in since its foundation and
has gained first class expertise. The potential demand for contracting activities of
the countries in Middle East, Caspian Region and North Africa which have been
developing and enriching in the recent years has played a key role in the
determination of this activity as a strategic focus.
• Agri-industry sector addresses to the most basic need of the mankind, namely
nutrition. Fertilizer, on the other hand, is an indispensable input for agri sector. Due
to the growing world population in addition to the alternative uses like bio-fuel
production, it is anticipated that demand for agricultural production and for
fertilizers will grow. As a result, this activity has a strategic focus for the Group.
5
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Tekfen Group
Strategic focus
• Terminal activities are undertaken in the framework of Agri-industry segment
comprising of two marine terminals strategically located in the Mediterranean and
the Black Sea regions.
• It is observed that in parallel to the development and enrichment of every country,
demand for modern, luxurious and high standard residential and commercial
housing increases. Hence, Real Estate Development is another strategic focus for
Tekfen Group.
6
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Tekfen Group
Vision / Mission
Our Vision
“To be one of the leading forces of Turkey’s growth in our areas of
operations namely, Contracting, Agri-Industry and Real-Estate
Development.”
Our Mission
“While remaining commited to our traditional values, we aim to focus on
our core operations, deliver the highest quality products and services,
become the leader of our segments, and at the same time, generate value
for all of our stakeholders, namely, our customers, suppliers, employees,
shareholders and society.”
7
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Tekfen Group
Social Responsibility
• Tekfen Group believes that supporting social culture and environmental activities
are the natural extentions of its corporate structure. All the companies under the
Tekfen Group umbrella emphasize “usefulness”, “harmony” and “protection”
principles as a prerequisite for the activities in their own fields.
• Believing that supporting social development and improvement is everybody’s
common task Tekfen continues its efforts for this end for decades. These activities
which are the common values for all employees, from top executives to entry level
employees of the Group coincides with the philosophy which puts human and the
environment as the focal value.
• With the purpose of continuing its contribution to social and cultural activities,
Tekfen established Tekfen Foundation for Education Health, Culture, Arts, and
Protection of Natural Habitat in 1999. Supporting a variety of projects in the fields
of education, culture and art since its establishment, Tekfen Foundation obtained
status as an “institution that works for the benefit of society“ through the Cabinet’s
decision in 2004.
8
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Tekfen Group
Human resources
Number of employees
Tekfen Holding has a dynamic and
professional workforce of over
18,296 19,180
19.000 employees.
15,514 13,878 14,295
13,234
2013 2014 2015 2016 2017 2018
Number of employees (breakdown by segment)
Real
Contracting Agri Industry Total
Estate
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
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Contracting
Contracting
Group
EPC Turnkey Delivery
• EPC >> (also commissioning, start-up,
operational support &training)
• EPC-F >>
• EPCM >>
Manufacturing & Export Finance &
Design & Turnkey
Design of Process & Procurement &
Engineering Storage Equipment Construction Logistics
• Engineering • Job orders • Lump sum turnkey • Procurement
• Owner’s Engineer • Erection Supervision Construction Services
• Procurement Services • EPCContracting 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 Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Contracting
Selected Clients
TURKISH
• TCK, Turkish State Highways Authority • TPAO, Turkish Petroleum Co.
• EÜAŞ, Electricity Production Co. • DSI, State Hydraulic Works
• PETKİM, Petrochemical Co. • Turkish State Railways Authority
• TÜPRAŞ, Turkish Petroleum Refineries Co. • Turkish Olympic Committee
• BOTAŞ, Petroleum Pipeline Co. • Ministry of Energy and Natural Resources
• Ministry of Public Works and Settlement • DLH, State Harbours and Airports Authority
• Several Municipalities
INTERNATIONAL
SAUDI ARABIA IRAQ
• Saudi Aramco • SCOP, State Company for Oil Projects
• Ma’aden • North Refineries Company
• Petro Rabigh
• WCC, Saline Water Conversion Co. QATAR
• Min. of Agriculture & Water
• Qatar Petroleum
• Min. of Municipal & Rural Affairs
• QAPCO
• Ashghal (Public Works Authority)
KUWAIT MOROCCO
• Ministry of Public Works • OCP, State Phospate Company
• KOC, Kuwait Oil Co. • SAMIR, Refinery Company of Morocco
OTHER
• AGIP • CPC, Caspian Pipeline Consortium, Kazakhstan
• Shell • AIOC (Azerbaijan Operating Co. led by BP)
• BP • BP Exploration Shah Deniz Ltd.
• BTC, Baku Tbilisi Ceyhan Pipeline Co. • Georgian Pipeline Co.
• Uzbekneftegas, Uzbekistan • MMRA, Libya (Man Made River Authority)
• Kazakturkmunay, Kazakhstan • SOCAR (State Oil Company of Azerbaijan)
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Selected International Project Partners
• Alstom, France • NEC, Japan
• AMEC, UK • Nippon Signal, Japan
• Babcock Borsig Power, Germany • Parsons Inc., USA
• Chiyoda Corp., Japan • Petrofac, UAE
• Fluor, USA • SAE, France
• Foster Wheeler, Italy • Saipem, Snamprogetti, Italy
• Hitachi Plant Technologies, Japan • Siemens, Germany
• Impregilo, Italy • Skoda Export, Czech Republic
• Itochu, Japan • Sofregaz, France
• JGC, Japan • Spie Batignolles, France
• John Brown, UK • Technip, Germany
• Lurgi GmBH, Germany • Technicas Reunidas, Spain
• Marubeni Corp., Japan • Toyo Engineering, Japan
• Mitsubishi Corp., Japan • Uhde GmbH, Germany
• Mitsui Corp. Japan • Vinci, France
• Mitsubishi Heavy Ind., Japan • Williams Brothers, USA
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting Overview
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).
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Manpower
Total Manpower: 18.417*
TURKEY:8.414 ABROAD:10.003
Iraq 244 Saudi Arabia 1.369
Russia 1
Qatar 2.979
Kazakhstan 2.624
Morocco 1
Turkmenistan 3
Azerbaijan 2.782
* As of 2018-end including subcontractors. 16
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Manpower Structure
DISIPLINE&DIVISION
ENGINEERS 1,034 5.61%
203 1.10% NATIONALITY
MANAGEMENT
PROCUREMENT 43 0.23% TURKISH 12,294 66.75%
244 1.32% AZERBEIJANI 1,205 6.54%
ADMIN
199 1.08% TURKMEN 3 0.02%
QA&QC/HSE
92 0.50% MOROCCAN 8 0.04%
TECHNICIANS
318 1.73% INDIAN 292 1.59%
FOREMEN
790 4.29% NEPALESE 115 0.62%
OPERATORS&DRIVERS
1,272 6.91% PHILIPIN 86 0.47%
CIVIL WORKS
239 1.30% ETHIOPIAN 8 0.04%
ELECTRICAL WORKS
1,416 7.69% KAZAKH 44 0.24%
PIPE&WELDING WORKS
973 5.28% IRAQI 4 0.02%
MECHANICAL WORKS
STEEL&ERECTION SAUDI 275 1.49%
230 1.25%
WORKS
OTHERS 4,083 22.17%
OTHERS 3,391 18.41%
TOTAL 18,417 100%
SUBCONTRACTORS 7,973 43.29%
TOTAL 18,417 100%
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Areas of Expertise
BASIC DETAILED PROCUREMENT FABRICATION CONSTRUCTION START UP
ENGINEERING* ENGINEERING
E
E+P
E+P+F
E+P+C
PMS
E : Engineering F : Fabrication
P : Procurement PMS : Project Management Services
C : Construction
* In pipelines, tank farms / terminals, motorways, bridges, tunnels, infrastructure and civil projects.
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Business Areas
Oil & Gas Petrochemical Underground Storage
Refineries Pipelines Power Plants
Platforms Complexes Gas Storages Tanks
Motorways Bridges Stadiums High-Rises Jetties Railways Tunnels
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Backlog Growth
Backlog (US$ million) - 31 December 2018
3,670
Turkey Abroad 3,419
2,998
2,747
2,373
2,150 2,888
2,005
1,694 1,740 1,830 2,841
1,711
1,461 2,524
1,333 1,259 1,619 2,480
1,449 1,589
1,139
744 685 726 1,535 1,668 1,794
535 501 1,350 1,257
175 201 242 1,225
167 264 555 754 782
569 484 484 368 159 111 72 75 34 36 561 474 572 578
237 266
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
• Thanks to its increasing investments in oil and gas producing countries, starting from 2005, the
backlog of Tekfen Contracting Group abroad increased significantly.
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Backlog (as of 31 December 2018)
Expected End Current Contract Revenue Based Remaining Amount
Project Location Dates Price Tekfen Portion Completion Rate (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
* 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.
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Ongoing projects (as of 31 December 2018)
Backlog Breakdown by Regions Backlog Breakdown by Project Types
Buildings
Turkey 11%
Middle 10%
East
69% Industrial
Facilities
21%
Caspian
Region
21%
Transportation
Pipelines
38%
31%
Region US$ (million) Project Type US$ (million)
Middle East 1,896 Transportation 1,036
Turkey 266 Pipeline 848
Caspian Region 584 Buildings 291
Total 2,747 Industrial Facilities 573
Total 2,747
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
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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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Engineering
Tekfen Engineering Co., Inc.
• 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:
Process Laser Plant & Static & Instrumen- Electrical & Architec- Structural Transpor-
Scaning Piping Rotating tation & Telecom- tural tation
Equipment Control munication 24
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Tekfen Manufacturing Co., Inc.
• Founded in 1970.
• Specialized mainly in engineering, manufacturing and construction of high
quality process and storage equipment related to petroleum, petrochemical,
chemical and fertilizer industries and power plants, such as cylindrical and
spherical storage tanks, heat exchangers, pressure vessels, process columns,
waste heat recovery boilers and pressurized piping for industrial plants to
respond to Tekfen’s increasing steel production and fabrication needs.
• 188 skilled manpower.
• Design and fabrication are carried out according to International Codes
such as ASME, API, TEMA, AD-2000, EN 13445, BS etc. and the company
is qualified to work with all sorts of carbon steel materials (including high
tensile quenched and tempered), clad carbon steels, all types of stainless
steels, non-ferrous materials such as Monel, Brass, Aluminum etc.
•Heavy manufacturing facility in Derince (Kocaeli), Turkey.
• Kuwait, Saudi Arabia, Iraq, Iran, Pakistan, Libya, Syria, Jordan, Oman,
Lebanon, Israel, Northern Cyprus, Morocco, Tunisia, Senegal, Sudan,
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.
25
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Fabrication Plants
Ceyhan Steel Structure Fabrication Plant Bayil Steel Construction Manufacturing Plant
• Spread on an area of 160,000 m2, of which 30,000 m2 • Tekfen’s manufacturing facility in Baku, Azerbaijan
is covered, • Spread on an area of 290,000 m2, of which 26,000 m2 is
• Annual capacity of 30,000 tons, covered,
• 650 skilled manpower, • Capable of meeting exceptionally high standards of the oil
• Production space consisting of 5 fabrication shops, and gas projects
• An open material handling storage area, • Equipped with high end machinery and advanced
• A welding school, technology to serve manufacturing of Topsides and
• Materials divisions Modules
• Social facility quarter. • Easy access is provided to the plant through the main
• The plant is equipped with full shot blast, highway, being at a distance of 7 km from the city center of
• CNC flame cutting and coping facilities, Baku, materials and equipment can also be delivered to the
• Sawing and drilling lines, quaysides of the facility by the sea.
• Automated beam welding line
• Training Center & Welding School
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Revenues and EBITDA Margin
Revenues (TRYmn) and EBITDA Margin (%)
Revenue EBITDA Margin
13,000 19.0%
11,649
11,000
13.2% 14.0%
11.3% 9,006
9,000 11.0%
9.3% 11.5%
9.3%
8.3% 10.7%
7.6% 9.0%
7,000 5.9%
7.2% 4,862
5,000
4.0%
2,768 2,824
3,000 2,395 2,327 2,153
1,864
1,319 1,339 1,111 -1.0%
1,029
1,000
-1,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E -6.0%
-4.3% -1.4%
• Expected project-end EBITDA margin on project basis varies from 10% to 25% at the beginning of
each project.
27
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Ongoing projects – Turkey
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.
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Ongoing projects - Turkey
TANAP Project (Lot 3)
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Ongoing projects – Caspian Region
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.
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Ongoing projects – Caspian Region
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Ongoing projects - Middle East
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.
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Ongoing projects - Middle East
QATAR – DESIGN AND BUILD OF AL KHOR EXSPRESSWAY
The Project comprises the Design and Build of a 34 Km long expressway b/w Al Khor and Doha with a total of
10 lanes in both directions (five traffic lanes in each direction) and various junctions, viaducts, and over-
passes and under-passes. Project size is ~US$ 2.1 billion. The project will be completed in 36 months. The
carriageways shall be divided by a central median which includes provision for the future Qatar Rail Metro
Red Line. A network of service roads is required adjacent to the main alignment which connects the upgrade
to existing and future developments. A shared pedestrian/ cycle way shall be constructed along the length of
one side of the expressway in addition to a separate fast cycle track adjacent to the service roads on the other
side of the expressway. The Works also include Landscape, Hardscape and Artscaping.
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Ongoing projects - Middle East
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trNorth Road
Contracting 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.
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Ongoing projects - Middle East
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Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trContracting
Strategic Direction
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.
37
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry Agri Industry Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
Agri Industry
Overview
The pioneer in Turkey’s agricultural industry
• Symbol of “quality” and “trust”
• In business since 1981 under TOROS brand name
• Over 1,000 employees
39
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Overview
• 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
2,965
5%
2,240 589
8%
1,851 16%
TRY Million
TRY Million
468
1,626 1,659 7%
5% 7%
Terminal Terminal
1,423 26%
5% Agri Agri
290
248
95% 95% 93% 93% 95% 17% 29%
92%
117 145
26% 50% 71% 74% 84%
74% 83%
50%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
40
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
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
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Regional Offices & Other Units
TEKİRDAĞ İSTANBUL ANKARA SAMSUN
REGIONAL OFFICE Head Office REGIONAL OFFICE REGIONAL OFFICE
Warehouse Warehouse Warehouse
ŞANLIURFA
REGIONAL OFFICE
İZMİR Warehouse
REGIONAL OFFICE
Warehouse
Grain Silos
Seed Processing
ADANA & CEYHAN
REGIONAL OFFICE
ANTALYA
Bag Manufacturing Plant
REGIONAL OFFICE
Seedling Nurseries NEVŞEHİR Free Zone
KONYA Underground Micropropagation
Warehouse Warehouse Potato Seed Warehouse
Warehouse Grain Silos
Seed Processing
42
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Fertilizers – Product Types
• Nitrogen fertilizers: • Compound fertilizers (NPs and NPKs):
• AN26 (CAN) - Calcium Ammonium Nitrate • DAP - Di-Ammonium Phosphate
• AN33 - Ammonium Nitrate • NP 20.20
• AS - Ammonium Sulphate • NP 20.20+Zn
• Urea • NPK 15.15.15
• NPK 15.15.15+Zn
• Phosphate fertilizers:
• TSP - Triple Super Phosphate • Special grade compound fertilizers:
• SSP - Single Super Phosphate • NPK 25.5.10
• NPK 15.15.15 Gold
• Potash fertilizers: • NPK 10.20.20
• PS - Potassium Sulphate
43
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Fertilizers – Sales
2017 Total Sales: 1.95 million tons 2018 Total Sales: 1.84 million tons
Urea 13% Urea 12%
AS 6% AS 5%
AN33 5% DAP 11% DAP 12%
AN33 8%
NP/NPK NP/NPK
AN26 25% (Compound) AN26 22% (Compound)
40% 39%
44
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Fertilizers – Leader in Turkish Fertilizer Market
Consumption and Toros Sales Volume/Market share Turkey’s Total Production and Toros’ Share
7,000 34% 5,000 42% 43%
31% 31% 41%
6,000 31% 31% 39%
4,000 39% 39% 40%
5,000 27% 28%
1000 tons
1000 tons
4,000 28% 26% 3,000 37%
25% 37%
26% 37%
3,000 2,000 34%
22% **
2,000
** 1,000 31%
1,000 19%
0 16% 0 28%
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
Consumption Toros Sales Market Share Total Production Toros Production Toros Share
Turkey’s Total Imports and Toros’ Share
5,000 11% 12%
10% 10%
4,000 10%
8%
6%
8%
1000 tons
8%
3,000
6%
2,000
4%
1,000
* ** 2%
0 0%
2011 2012 2013 2014 2015 2016 2017 2018
* 2017 market data hasn’t been disclosed
Total Imports Toros Imports Toros Share 45
** 2018 market data hasn’t been disclosed
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Fertilizers – Production Facilities
• 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
SAMSUN PLANT
MERSIN PLANT CEYHAN PLANT
46
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Fertilizers – Production Capacity
MERSIN PLANT CEYHAN PLANT SAMSUN PLANT
AN and CAN production NPK and DAP production NPK and DAP production
CAPACITY CAPACITY CAPACITY
660,000 tpa CAN 2 x 330,000 tpa NPK 300,000 tpa NPK
or 227,000 tpa DAP
NITRIC ACID CAPACITY 330,000 tpa NPK & 200,000 tpa DAP
405,000 tpa PHOSPHORIC ACID CAPACITY
210,000 tpa (100% P2O5)
SULPHURIC ACID CAPACITY
726,000 tpa (100% H2SO4)
47
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Fertilizers - Integration Investments
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
48
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Fertilizers – DAP/NP/NPK Production Diagram
• In Samsun Plant, Toros produces sulphuric and phosphoric acid for all its DAP/NPK units.
AMMONIA
SULPHUR SULPHURIC
ACID
PHOSPHORIC UREA/AS*
ACID DAP/NP/NPK
PHOSPHATE
ROCK
POTASH**
*Either Urea or AS is added as nitrogen (N) source in addition to ammonia.
49
**Potash is added as potassium (K) source for NPKs.
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Fertilizers – CAN/AN Production Diagram
In Mersin Plant, Toros produces nitric acid for its CAN/AN unit.
AMMONIA AMMONIUM
NITRATE
AMMONIUM
NITRATE
AIR CALCIUM
NITRIC ACID AMMONIUM
WATER NITRATE
LIME
STONE
50
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Fertilizers – Production and Imports
Production - Breakdown by Products
55%
52% Compund
47% 49% 50% 47%
(NP/NPK)
AN 26
31% (CAN)
27%
23% 24% AN33
20%
19% 18% 19% 17%16%
11% 11% 12%
13% 10%14% DAP
8%
5%
*
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
Procurement - Breakdown by Products
77%
62% 63%
Urea
50% AS
50%
40% 46%
33%
37% AN33
27%
22% DAP
21% 20%
15% 16%
12% Other
3% 4%
0% 2% 0% 0%0% 0% 0% 0% 0% 0%0%0%
2013: 189K tons 2014: 360K tons 2015: 232K tons 2016: 365K tons 2017: 558K tons 2018: 439K tons
*Due to the ban of AN33 in the local market, the production was minimized just for exporting purpose. 51
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Marine Terminal Services
✓ 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
52
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Marine Terminal Services
• 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
SAMSUN PORT
CEYHAN PORT
• 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 53
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Marine Terminal Services
Dry&Liquid Bulk and General Cargo* Petroleum Products
Handled Quantity (mn tons) Occupancy Rate
7.00
6.00 77%
5.36 5.60 70%
60%
4.48 55%
4.18
40% 42%
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
*Does not include petroleum products’ handling volume 54
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Complementary Products and Services
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
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)
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
55
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Complementary Products and Services
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
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
56
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Environmentally Conscious Production
MERSIN PLANT CEYHAN PLANT SAMSUN PLANT
✓ Catalytic reduction system ✓ ISO 14001:2004 Environment ✓ Emission Certificate
to keep NOX emission in Management
exhaust gases released to ✓ ISO 9001:2000 Quality
atmosphere from nitric acid Management
unit under 200 ppm ✓ OHSAS 18001:1999 Occupational
Health and Safety Management
57
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Social Responsibility
Supporting farmers; Raising awareness;
• Educational seminars and training • Supporting UNFPA’s “Improving health conditions of
programs to improve agricultural seasonal workers in agriculture” program in Turkey
productivity and product quality
• “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
58
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Alanar Fruit & Alara Sapling
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 Products are exported more than 30 countries
✓ 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
59
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trAgri Industry
Tekfen Agri - 2019 Expectations
Revenues (TRYmn) EBITDA (TRYmn) & EBITDA margin (%)
300 25 10.0%
251
250 59% 20 8.0% 8.0%
200 158 15 6.0%
150 20
10 4.0%
100
50 5 2.0%
0
0 0 0.0% 0.0%
2018 2019E 2018 2019E
Revenues Linear (Revenues) EBITDA EBITDA Margin
Net profit (TRYmn) & Net margin (%)
6 5 3.0%
4 2.0% 2.0%
2 1.0%
0 0.0%
2018 2019E
-2 -1.0%
-1.3%
-4 -2 -2.0%
Net Profit Net Margin
60
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Real Estate
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Business Structure
Tekfen Real Estate Development Group
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
62
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Completed Projects
1994 2003 2006 2008
Akmerkez Tekfen Tower Taksim Residences Yalıkavak Homes
• First Mixed-use dev. in Turkey • Class A+ Office Building • Residential Project • Summer House & Boutique Hotel
• 180,000 m² Construction Area • Located in Istanbul • Located in city center of Istanbul Project located in Bodrum, Muğla
• 34 680 m² GLA Shopping Mall • 82.000 m² Construction Area • 24.000 m² Construction Area • 60,000 m² Land, 12,500 m²
• 2 Office Towers (14 & 17 storey) • 33.000 m² office GLA • 18.500 m² Sellable Area Sellable Area
• Residential Tower (24 Storey) • 59 Residential Units • 40 Room Boutique Hotel
• 86 Residential Units
2009 2010 2012 2012
Müşkülüm Homes Levent Office Kağıthane Officepark Bomonti Apartments
• Boutique Residence in aTangerine • Class A+ Office Building • Office Development Project • Residential Project located in Şişli,
Garden • Located in Levent, Istanbul • Located in Istanbul Istanbul
• Located in Bodrum, Muğla • 15,300 m² construction area • 14,235 m² Land Size • 83 units (residences, home-offices, retail)
• 27,500 m² Land Size • 7,970 m² office GLA • 55,000 m² Construction Area • 2.500 m² Land size
• 32,000 m² office GLA • 17,000 m² Construction Area 63
• 2,350 m² Sellable area (18 units)
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Projects
Estimated Revenue
Project Start Date of End Date of
Project (million)
Function Project Project
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
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 64
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Ongoing Projects
HEP Istanbul Project
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
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.
65
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Ongoing Projects
Topkapı Housing Project
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: *
Zeytinburnu Municipality requested revisions for the
project with the new board decision of the municipality,
Investment Rationale:
after the project’s construction permit were obtained, For • High accessibility, near E-5 highway and intersection point for
this reason, the new plan was submitted to the tram, light metro and metrobus
municipality, The building license approval process has • Rapid transformation of light industrial area to residential units
been granted in 2018 Q4, As a result of current economic supported by the zoning plans
developments, the project is re-evaluated in line with
market conditions and sales price / manufacturing • Residential demand is increased after operational of the
balance, It is planned to develop a strategy plan in line universities and hospitals,
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
66
in line with market conditions.
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Ongoing Projects
Topkapı Housing Project II
Transaction Overview:
• A revenue sharing agreement was signed on 28/09/2017 to
develop a residential project on the neighboring plots totaling
20k m² area of the existing Tekfen Topkapı project, currently
there is an active textile production on the plots.
• The construction permit will be obtained after zoning plan
revision, and accordingly the sales will be started with the
construction works and the project is planned to be completed
within 24 months.
Total Project Tekfen Share – (Revenues, TRY millions): 254
Project Summary:
• Total Sellable Space: Housing: 44,467 m²
• Construction Period Start: - Complete: *
Revision works for the 1/5000 zoning plans have been
started, Approval of related institutions were taken for Investment Rationale:
approval process of Istanbul Metropolitan Municipality
(IMM), The plan revision proposal was submitted to IMM • High accessibility, near E-5 highway and intersection point for
approval and it is aimed to be put on the agenda of the tram, light metro and metrobus lines.
board meeting to be held in November, The approval of • Rapid transformation of light industrial area to residential units
1/5000 and 1/1000 revision zoning plans are targeted to be supported by the zoning plans.
completed in 2019 Q1, Considering the impact of the • Residential demand has increased after new universities and
current economic conditions on the real estate sector, the hospitals became operational.
development strategy of the project is evaluated by Tekfen • The project will be the second phase of existing Topkapı Project.
management, It is aimed to develop a competitive project in terms of sales
price with the gained infrastructure and experience.
(*) 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. 67
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Ongoing Projects
Izmir Mixed Use
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
* 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. 68
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Ongoing Projects
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 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
The Company's shares are allocated on behalf of Investment Rationale :
HMB, a subsidiary of Tekfen Holding in ➢ Dahlem is located in the district of Steglitz-Zehlendorf, It is an elite
Germany, The project consists of two historical region with many low-rise and detached luxury houses with garden
buildings with a total 4,500 sqm of leasable /
and consular buildings, It is also one of the important academic
sellable area, totaling 1,500 sqm and 3,000 sqm,
research centers of the city.
built in 1907, In addition, there is a parking lot for
31 vehicles in the underground car park, which ➢In 2017, the total demand for housing in Berlin was 41,240, while
is currently used as common in the plot where the housing supply was 30,716, The ratio of housing demand to
the project is located, The historical buildings housing supply is 1,69, There are 857 apartments in this supply, The
have a renewal license, and the buildings will be district of Steglitz-Zehlendorf is the district with the highest number
renewed and converted into a total of 42 luxury of apartment supply with 114 apartments.
housing projects to be sold and rented,
69
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Tekfen Services - Facility Management
• 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.
70
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Assets
• 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.
71
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.trReal Estate Development
Social Responsibility
• 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.
72
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