Tekfen Holding Investor Presentation May 2021

Tekfen GroupAt a glance

Tekfen Group Engineering

& ContractingChemical

Industry

Agricultural

Productionwww.tekfen.com.tr

1956 Feyyaz Berker,

Nihat Gökyiğit and

Necati Akçağlılar formed

an engineering

consulting company

1957 The three partners

establish Tekfen

Construction Ltd.

1963 Tekfen Industry

and Trading Co., Inc. is

founded to produce

incandescent lamps.

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

2019 Acquisition of 10%

share of SOCAR Polimer

Acquisition of Gonen

Yenilenebilir Enerji

2020 RUSFEN

established2

Services Investment

http://www.tekfen.com.tr/

www.tekfen.com.tr

Tekfen Group

Tekfen Group Engineering &

ContractingChemical

Industry

Agricultural

ProductionServices Investment

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

Ownership structure

3

Free Float, 47.8%

Gökyiğit, 22.2%

Berker, 22.6%

Others, 0.8%

Akçağlılar, 6.7%


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


At a glance

Main Operations

Construction

Engineering

Fabrication

Real Estate

Developement

Main Companies

Tekfen Construction

Tekfen Engineering

Tekfen

Manufacturing &

Engineering

GATE Construction

Engineering &

Contracting

Share in consolidated

revenues*: 60.5%

Main Operations

Fertilizer production

and distribution

Main Companies

Toros Agricultural

Industry & Trade

CFS Petrochemicals

Gonen Energy

Agroport

Chemical

Industry


revenues*: 33.2%

Main Operations

Terminal services

Free zone

operations

Insurance

Fuel-motel activities

Main Companies

Tekfen Insurance

Toros-Adana

Yumurtalık Free

Zone

Tekfen Tourism

Toros Shipping

Investment


revenues*: 1.7%

* As of 31.12.2020 4

Main Operations

Seed, sapling and

seedling production

and distribution

Agricultural

production and trade

Main Companies

Tekfen Agriculture

and Trade

Alanar Fruit & Alanar

Sapling

Hishtil-Toros

Seedling Industry &

Trade

Main Operations

Venture Capital

Petrochemical

Real Estate

Investment

Rental Activities

Main Companies

Tekfen Ventures

Tekfen Holding

Socar Polymer

Berlin Light

Dortmund

ServicesAgricultural

Production


revenues*: 4.2%Share in consolidated

revenues*: 0.4%

Revenues: TRY7.1bn

EBITDA: -TRY344mnRevenues: TRY3.9bn

EBITDA: TRY736mn

Revenues: TRY201mn

EBITDA: -TRY28mnRevenues: TRY486mn

EBITDA: TRY176mn

Revenues: TRY48mn

EBITDA: -TRY81mn


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


Tekfen’s Sustainability Vision

➢ Tekfen’s sustainability vision is conceptually embodied in the group’s

“Bridging Prosperity” motto. The primary goals of all economic activity

are to increase social wellbeing and to improve the quality of life of the

individuals who make up a society. Through its operations, Tekfen

serves as a bridge that gives individuals access to the essential

elements of material comfort while also paving the way to a sustainable

future.

➢ The goal of Tekfen’s “Bridging Prosperity” vision is to be able to respond

sustainably and flexibly to the changes implied by the redefinition of its

business practices which driven by the Megatrends such as

Demographic Change, Rise of Technology, and Climate

Change/Resource Scarcity.

➢ Tekfen’s vision is also to develop a sustainable business model that

embraces its entire value-creation chain and thereby to help contribute

to the fulfillment of the United Nations’ Sustainable Development Goals.

5


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


➢ Tekfen Holding’s publicly-traded shares are included in the Istanbul Stock Exchange’s BIST 30 index.

Owing to the company’s successful corporate governance, environment, and social-welfare

performance, Tekfen Holding’s shares have been included in the BIST Sustainability Index since

2016.

➢ Tekfen Holding joined the Carbon Disclosure Project’s Climate Change Program in 2017 and Water

Security Program in 2018. As a successful start Tekfen included in “B” list on both programme at first

years. Tekfen has succeeded in increasing its scores since then and included in the CDP “A-” list for

each programme in 2019.

➢ Tekfen Holding has been a signatory to the 10 principles of the United Nations (UN) Global Compact

which cover the areas of human rights, labour, the environment and anti-corruption since 2018. We

are also a cooperate member of the World Business Council for Sustainable Development’s local

network and partner since 2017.

➢ Tekfen Holding has published its first Sustainability Report in accordance with the Global Reporting

Initiative (GRI) standards in 2019. Please visit our website for more information about our

sustainability strategy, management and performance issues.

Tekfen’s Sustainability Vision

6


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


Tekfen Group

Human resources

Tekfen Holding has a dynamic and professional workforce of

over 17.000 employees.

Number of employees (breakdown by segment)

7

2013 2014 2015 2016 2017 2018 2019

13,61411,988 11,359 12,691

16,69617,539

15,222

1,033

1,020 1,0581,102

1,1121,140

1,398867

870817

502

488450

47415,514

13,87813,234

14,295

18,29619,180

17,094

Contracting Agri Industry Other Total


ENGINEERING &

CONTRACTING

Engineering & Contracting


& Contractingwww.tekfen.com.trChemical

IndustryAgricultural


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 69 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 2019.

✓ Employing over 2500 permanent technical and administrative staff and with an extensive selection of new and well-

maintained equipment and machinery

✓ Over 365 projects with a total amount of approx. US$30 billion completed.

✓ Successfully completed approx. US$18 billion worth of projects abroad.

✓ The Group has broken records for working hours without LTI (lost time incident) in many projects.

✓ 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 50 projects per year and the average success rate for winning tenders is around 10%.

✓ 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%.

9







Group

EPC Turnkey Delivery

➢ EPC (also commissioning, start-up,

operational support & training)

➢ EPC-F

➢ EPCM

Design &

Engineering

Turnkey

Construction

➢ Engineering

➢ Owner’s Engineer

➢ Procurement Services

➢ EPCM

➢ Job orders

➢ Erection Supervision

➢ Design& Fabrication

Manufacturing of

Process & Storage

Equipment

➢ Lump Sum Turnkey

➢ Construction

➢ Contract

➢ Real Estate Development

Export Finance

& Procurement

GATE

Kazakstan

AZFEN

Azerbaijan

CTS

Azerbaijan

10

➢ Procurement Services

➢ EPC-F







Selected International Project Partners

ABB, UK Flour, USAMitsubishi Corp.,

JapanTechnip, France

Air Liquide,

France

General Electric,

USA

Parsons Inc.,

USA

Tecnicas

Reunidas, Spain

Alstom, FranceILF Consulting,

AustriaPetrofac, UAE

Toyo Eng.,

Japan

Wood (formerly

Amec Foster

Wheeler, UK)

JGC, Japan Saipem, ItalyUhde GmBH,

Germany

Atlas Copco,

SwedenKBR, USA

Salini Impregilo,

ItalyUOP, USA

Babcock Borsig

Power, GermanyLinde, Germany

Siemens,

GermanyVinci, France

Bechtel, USAMarubeni Corp.,

Japan

Sofregaz, France Williams Brot.,

USA

11







Selected Clients

TURKEY SAUDI ARABIA QATAR AZERBAIJAN KAZAKHSTAN KUWAIT

TÜPRAŞ (Turkish

Petroleum

Refineries

Corporation)

Saudi Aramco

ASHGHAL,

Ministry of Public

Works

BP Exploration TengizchevroilKOC, Kuwait Oil

Company

BOTAŞ (Petroleum

Pipeline

Corporation)

Ma’aden, Saudi

Arabian MiningUhde GmbH SOCAR AGIP KCO

Ministry of Public

Works

Baku Tbilisi

Ceyhan Pipeline

Co.

Ministry of

Agriculture and

Water

QAPCO, Qatar

Petrochemical Co.

AIOC, Azerbaijan

International

Operating Company

Shell IRAQ

TANAP (Trans

Anatolian National

Gas Pipeline Co.)

Ministry of

Municipal and

Rural Affairs

QP, Qatar

Petroleum

Ministry of Taxes of

Azerbaijan RepublicKazMunayGas

SCOP, State

Company for Oil

Projects

Turkish State

RailwaysPetro Rabigh

Qatar Private

Engineering OfficeAzerigaz JSC GEORGIA

NRC, North

Refineries Company

Toros

Agri-IndustrySadara Chemical U.A.E. MOROCCO

Georgian Pipeline

Co.

ROO (Rumaila

Operating

Organization)

General Directorate

of Highways

SWCC, Saline

Water ConversionADCO (ADNOC)

Autoroutes of

Morocco

Caspian Pipeline

Consortium OMAN

TOTAL BRAZIL TURKMENISTANOCP, Groupe

Cherifien Des

PhosphatesUZBEKISTAN

PDO (Petroleum

Development

Oman)

Maire Tecnimont Petrobras Türkmengaz SAMIR Uzbekneftegas

12







Total Manpower: 16.567*

TURKEY: 2.212 ABROAD: 14.355

Manpower

Azerbaijan 3,577

Morocco 5

Qatar 4,077

Russia 6

Iraq 281 Saudi Arabia 3,766

Kazakhstan 2,639

Turkmenistan 3

Cezayir 1

13* As of 2019-end including subcontractors.







Areas of Expertise

15

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







Manpower Structure

14

NATIONALITY

TURKISH 10,366 62.57%

AZERBEIJANI 1,100 6.64%

TURKMEN 3 0.02%

MOROCCAN 11 0.07%

INDIAN 264 1.59%

NEPALESE 105 0.63%

PHILIPIN 72 0.43%

ETHIOPIAN 7 0.04%

KAZAKH 98 0.59%

IRAQI 5 0.03%

SAUDI 453 2.73%

OTHERS 4,083 24.65%

TOTAL 16,567 100.00%

DISIPLINE & DIVISION

ENGINEERS 445 2.69%

MANAGEMENT 222 1.34%

PROCUREMENT 91 0.55%

ADMIN 148 0.89%

QA&QC/HSE 113 0.68%

TECHNICIANS 24 0.14%

FOREMEN 246 1.48%

OPERATORS&DRIVERS 362 2.19%

CIVIL WORKS 183 1.10%

ELECTRICAL WORKS 287 1.73%

PIPE&WELDING WORKS 337 2.03%

MECHANICAL WORKS 751 4.53%

STEEL&ERECTION WORKS 178 1.07%

OTHERS 4725 28.52%

SUBCONTRACTORS 8,455 51.04%

TOTAL 16,567 100.00%







Business Areas

Refineries Oil & Gas

PlatformsPipelines

Petrochemical

ComplexesPower Plants Storage

Tanks

Stadiums High-Rises Metro &

Railways

Tunnels

Gas Compressor

& Metering

Stations

Oil & Gas Equip.

Manufacturing

Real EstateMarine

Terminals &

Jetties

BridgesMotorways

16







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 end-2019, Tekfen Contracting Group had an active portfolio of

US$ 1.7 billion, 91% of which were outside of Turkey, located in 7

different countries.

Overview

17







2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

569 484 484 368 237 159 111 72 75 34 36

555561 474

754572

782578

266 163

175 201 242167

264

1,5351,350

1,668

1,257 1,225

1,794

1,449 1,589

2,5241,619

1,139

2,888

2,841

2,480

1,552

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 2019

Backlog Growth

18

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

3,670

3,419

2,747

1,715







Backlog (as of 31 December 2019)

19

* Not included in the consolidated revenues. Consolidated using equity method.

** The contracted work for this project will start as soon as the investor companies complete the project financing.

Project LocationExpected End

Dates

Current Contract

PriceTekfen Portion

Revenue Based

Completion

Rate

Remaining Amount

(US$)

Provision of Civil / Structural Construction, Fabrication, Construction Services for BTC

Turkey Turkey31/12/2020 28,532,406 $ 28,532,406 $ 77.1% 6,520,400

TANAP Compressor and Metering Stations Turkey 31/10/2019 609,244,332 $ 609,244,332 $ 98.9% 6,699,777

Afyon - Uşak Rapid Train Project and Afyon Direct Pass Infrastructure Turkey 22/05/2020 227,262,900 $ 113,631,450 $ 35.8% 72,901,277

TÜPRAŞ İzmit Refinery Maintenance & Repair Works Turkey 28/02/2022 60,280,830 $ 60,280,830 $ 35.4% 38,935,731

TÜPRAŞ İzmit Refinery Fluid Catalytic Cracker Revamp Installation Works Turkey 19/05/2021 40,104,913 $ 40,104,913 $ 5.8% 37,762,265

TURKEY TOTAL 162,819,449

Ministry of Tax Tower Azerbaijan 30/04/2021 156,833,780 $ 156,833,780 $ 59.1% 64,121,549

AZFEN Projects* Azerbaijan 01/04/2022 767,404,415 $ 306,961,766 $ 30.8% 212,304,100

AZERBAIJAN TOTAL 276,425,649

Jeddah Janbu Pipeline S. Arabia 15/10/2020 299,960,951 $ 299,960,951 $ 81.4% 55,753,945

Haradh Satellite Gas Compression Plants' Pipelines S. Arabia 08/08/2021 612,198,426 $ 612,198,426 $ 18.9% 496,735,760

SAUDI ARABIA TOTAL 552,489,705

Al Khor Expressway Qatar 25/03/2020 2,245,955,468 $ 2,245,955,468 $ 97.2% 62,172,580

Main Works for the Fifth Precinct Stadium Qatar 15/09/2020 346,484,640 $ 173,242,320 $ 62.2% 65,455,794

Design and Construct Service Road Enhancement to North Road Corridor Qatar 11/03/2020 979,337,362 $ 979,337,362 $ 99.8% 2,429,919

East Industrial Road Qatar 10/02/2020 175,193,935 $ 175,193,935 $ 79.8% 35,473,409

QATAR TOTAL 165,531,702

Installation Services for Dehydrators & Desalters Iraq 31/08/2020 63,883,343 $ 63,883,343 $ 56.0% 28,139,069

IRAQ TOTAL 28,139,069

FGP Temporary Construction Facilities Kazakhstan 26/03/2020 115,270,925 $ 115,270,925 $ 96.0% 4,590,640

FGP Wellhead Pressure Management Project Kazakhstan 24/04/2022 469,250,816 $ 469,250,816 $ 42.4% 270,310,810

KAZAKHSTAN TOTAL 274,901,449

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

Kharampurskiy Field-PSJC Gazprom External Transport Pipeline Russia 21/05/2021 251,519,747 $ 251,519,747 $ 0.0% 251,519,747

RUSSIA TOTAL 251,519,747

TOTAL 1,715,076,769







Ongoing projects (as of 31 December 2019)

Backlog Breakdown by Regions

Region US$ (million)

Middle East 746

Turkey 163

Caspian Region 806

Total 1,715

Backlog Breakdown by Project Types

Project Type US$ (million)

Transportation 173

Pipeline 820

Buildings 134

Industrial Facilities 587

Total 1,715

20

Middle East44%

Turkey9%

Caspian Region47%

Industrial Facilities 34%

Buildings 8%Transportation10%

Pipelines48%







❖ 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 520 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, some private industrial companies

and municipalities. Non-group clients generate around 35% of Tekfen Engineering’s business volume.

Disciplines:

Tekfen Engineering Co., Inc.

Engineering

21

Laser

ScaningProcess Plant &

PipingStatic &

Rotating

Equipment

Instrumen-

tation &

Control

Electrical &

Telecom-

munication

Architec-

tural

Structural Transpor-

tation







▪ 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, Nigeria, UK, France,

Russia, Kazakhstan, Turkmenistan and Azerbaijan are the countries that the

company exports pressure vessels.

▪ Spread on an area of 48,500 m2, of which 18,000 m2 is covered.

Tekfen Manufacturing Co., Inc.

22







✓ 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

23







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.

24

1,029 1,319 1,339 1,1111,864

2,395 2,3272,768

2,1532,824

4,862

9,009

10,539

8,922

7.2%

8.3%

11.0%

13.2%

9.3%

5.9%

-4.3%-1.4%

7.6%

9.3%

11.3%

10.7%

13.7%

0.8%

-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

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E

Revenue EBITDA Margin







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

25







Ongoing projects – Caspian Region

Ministry of Taxation Overall View Ministry of Taxation Overall View Ministry of Taxation Overall View

26Facade FacadeMinistry of Taxation Overall View







Ongoing projects - Middle East

27

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.








28

SAUDI ARABIA- HARADH & HAWIYAH FIELD SATELLITE GAS COMPRESSION SaGCP PIPELINES PROJECT

Saudi Aramco is installing gas compression facilities at Haradh & Hawiyah Saudi Arabia under the Southern Area Energy

Efficiency Program. The Program in Southern Area provides for improving and sustaining gas production from Haradh and

Hawiyah fields by reducing choke pressure at the wellhead to 300 pounds per square inch gauge (psig). The program will

extend plateau life at the same production rates for both fields for the next 20 years. The program will also provide for boosting

the production by around 1.3 billion standard cubic feet per day supplementing sales gas and condensate production.

As part of the Program, the Satellite GCP Pipelines Project will be constructed in the vicinity of the Saudi Aramco Haradh Field

near to the Haradh Gas Plant which is located in the Southern Area of the Eastern Province of Saudi Arabia. Project includes a

combination of Greenfield / Brownfield work within a large and remote geographic operating area.

Tekfen Construction and Installation Co. Inc.,has signed an agreement with Saudi Aramco for the construction works of the

Haradh Gas Increment Program – Satellite Gas Compression Plants Pipelines, Saudi Arabia. The project will be completed in

33 months with the contact value of US$ 590 million.








29

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.








Interchange D

Interchange A

Interchange E

Interchange B

Interchange F

Interchange C

Interchange G Interchange G1 Interchange H 30







North Road

Qatar


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.

31








Façade Works

Stadium 3D Render

Overall Site View

Overall Site View

Roof Cable Works

Roof Cable Works

Stadium Steel Structure Overall Site View Stadium Concrete Structure 32







Real Estate Development - 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


• 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


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

33







ProjectProject

Function

Start Date of

Project*

End Date of

Project

Estimated Revenue

(million)

Total/Tekfen Share

Esenyurt Project Residential May.13 Dec.17 TRY661

Berlin Project* Residential Dec.18 Dec.21 €57.5

Real Estate Development - Projects

34

Residential Office Retail

Esenyurt Project 180.155 - 2.595

Berlin Project 4,500 - -

* Includes 80% Tekfen share.

İzmir project land value (Tekfen Share): USD35mn

Topkapı Project land is located in stocks.







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): 644

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

35







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,

➢After, the completion of preliminary design works of the project, the

renovation license will be renewed. The construction of the buildings is aimed

to be completed 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

36

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 built

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

vehicles in the underground car park, which is

currently used as common in the plot. The historical

buildings already have a building license. The

design works for 1.500 m2 and 3.000 m2 total of

4.500 m² sellable / leasable area to be converted

into a luxury housing project has been initiated.







Tekfen Engineering & 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


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


Chemical

Industry


Chemical Industry

Chemical

Industrywww.tekfen.com.trTekfen Group Engineering &

Contracting

Agricultural


✓ Symbol of “quality” and “trust”

✓ In business since 1981 under TOROS brand name

✓ Almost 1,000 employees

✓ Supplying every type of fertilizer Turkish farmers need

✓ Market leader since 1986

✓ Vast dealers network with over 1,200 dealers

✓ Marketing and Sales Team located in 7 regions

✓ Constant contact with dealers and farmers

✓ Timely delivery to dealers via 8 warehouses

Overview

39


Chemical Industry

Chemical


Contracting

Agricultural


87

206

73

204

348

496

460

2013 2014 2015 2016 2017 2018 2019

TR

Y M

illio

n

Turnover EBITDA Breakdown

40

Overview

1,3541,541

1,5361,715

2,069

2,664

3,439

2013 2014 2015 2016 2017 2018 2019

TR

Y M

illio

n

→ Active in fertilizer production and distribution

→ Chemical industry turnover of TRY 3,439 million and EBITDA of TRY 460 million as of 2019

‘’ Data since 2019 are consolidated turnover figures of agricultural industry group. ‘’ Data since 2019 are consolidated EBITDA figures of agricultural industry group.


Chemical Industry

Chemical


Contracting

Agricultural


Regional Offices & Other Units

İSTANBUL

Head Office

İZMİR

REGIONAL OFFICE

Warehouse

Grain Silos

Seed Processing

ANKARA

REGIONAL OFFICE

Warehouse

SAMSUN

REGIONAL OFFICE

Warehouse

ANTALYA

REGIONAL OFFICE

Seedling Nurseries

Warehouse

KONYA

Warehouse

ADANA & CEYHAN

REGIONAL OFFICE

Bag Manufacturing Plant

Free Zone

Micropropagation

Warehouse

Grain Silos

Seed Processing

ŞANLIURFA

REGIONAL OFFICE

Warehouse

TEKİRDAĞ

REGIONAL OFFICE

Warehouse

41

NEVŞEHİR

Underground

Potato Seed

Warehouse


Chemical Industry

Chemical


Contracting

Agricultural


Regional Offices & Other Units

UKRAINE COUNTRY

OFFICE

TOROS-AGROPORT

42


Chemical Industry

Chemical


Contracting

Agricultural


➢ Nitrogen fertilizers:

▪ AN26 (CAN) - Calcium Ammonium Nitrate

▪ AN33 - Ammonium Nitrate

▪ AS - Ammonium Sulphate

▪ Urea

➢ Potash fertilizers:

▪ PS - Potassium Sulphate

Fertilizers – Product Types

43

➢ Phospate & 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


Chemical Industry

Chemical


Contracting

Agricultural


Fertilizers – Sales

44

AN26 22%

AN33 10%

AS 5%

Urea 12%

Ultra Nitrogen 1%DAP 11%

NP/NPK (Compound)

39%

AN26 22%

AN33 8%

AS 5%

Urea 12%DAP 12%

NP/NPK (Compound)

39%


Chemical Industry

Chemical


Contracting

Agricultural


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 2019

1000 t

on

s

Total Imports Toros Imports Toros Share

• Since 2017, fertilizer import data hasn’t been disclosed.

• 2019 official domestic fertilizer consumption and production data hasn’t been disclosed.

*

37%

39% 39%

42%

37%

39%

41%40%

36%

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 2019

1000 t

on

s

Total Production Toros Production Toros Share

31% 31%

28%

31%27%

26%26%

27% 29%

16%

19%

22%

25%

28%

31%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2011 2012 2013 2014 2015 2016 2017 2018 2019

1000 t

on

s

Consumption Toros Sales Market Share

*

Market Share of Toros by Product Types (2018)

*

38.6%

0.0%

17.0% 15.0%

32.5%35.8%

CAN* AN33 AS Urea DAP Compound


Chemical Industry

Chemical


Contracting

Agricultural


✓ Three chemical fertilizer plants located in Mersin, Ceyhan and Samsun

✓ One organic/organomineral fertilizer plant located in Balikesir

✓ One water soluable fertilizer plant located in Mersin

✓ 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

46

SAMSUN PLANT

MERSIN PLANT CEYHAN PLANT

GONEN PLANT


Chemical Industry

Chemical


Contracting

Agricultural


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

330,000 tpa NPK

325,000 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


Chemical Industry

Chemical


Contracting

Agricultural


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


Chemical Industry

Chemical


Contracting

Agricultural


Gonen Plant

➢ %100 subsidiary of Toros Tarım

➢ Established on 55,000 m2 land

➢ Founded in 2011 by Alper and Taner Önoğlu

➢ Installed capacity of 3.62 MW

➢ Annual production capacity of 15,000 tons of solid organic and 10,000 tons of liquid organic fertilizers

➢ The amount of organomineral fertilizers produced by Toros Tarım will reach 35,000 tons per year

➢ Inputs are procured from cattle and poultry farms, agricultural enterprises and food factories in the immediate vicinity

49


Chemical Industry

Chemical


Contracting

Agricultural


Fertilizers – DAP/NP/NPK Production Diagram

*Urea and/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**

50

➢ In Samsun Plant, Toros produces sulphuric and phosphoric acid for all its DAP/NPK units.

SULPHUR


Chemical Industry

Chemical


Contracting

Agricultural


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

NITRIC ACID

AIR

WATER

AMMONIUM

NITRATE

AMMONIAAMMONIUM

NITRATE

CALCIUM

AMMONIUM

NITRATE

LIME

STONE

Fertilizers – CAN/AN Production Diagram

51


Chemical Industry

Chemical


Contracting

Agricultural


Procurement - Breakdown by Products

Fertilizers – Production and Imports

52

Production - Breakdown by Products

47%52%

49%

55%

49% 46%51%

19% 18% 19% 17%

31%27%

23%23% 20% 24%

16%

5%

10%12%

0% 0% 0% 0%1% 1%

1%0%

0% 0% 0%0%

1% 1%

11% 11%8%

12% 13% 14% 13%

2013: 1.41 mn tons 2014: 1.49 mn tons 2015: 1.37 mn tons 2016: 1.30 mn tons 2017: 1.58 mn tons 2018: 1.60 mn tons 2019: 1.68 mn tons

Compund (NP/NPK) AN 26 (CAN) AN33 Ultra Nitrogen Organomineral DAP

50%

40%

77%

62%

50%

63%68%

33%

21% 20%22%

46%37%

26%

15%

27%

3%0% 0% 0% 0%0%

12%

0%

16%

4%0%

7%2% 0% 0% 0% 0% 0% 0%

2013: 189K tons 2014: 360K tons 2015: 232K tons 2016: 365K tons 2017: 558K tons 2018: 439K tons 2019: 562K tons

Urea AS AN33 DAP Other

*Due to the ban of AN33 in the local market, the production was minimized just for exporting purpose.

*


Chemical Industry

Chemical


Contracting

Agricultural


Specialty Fertilizers:

➢ Leading brand in specialty fertilizers in Turkey since 2000

➢ Procurement from globally known leading producers

➢ Also, own production facility in Mersin

➢ Blending soluble NPKs for the high growth local market

Complementary Products and Services

53


Chemical Industry

Chemical


Contracting

Agricultural


CEYHAN PLANT

✓ ISO 14001:2015 Environment

Management

✓ ISO 9001:2015 Quality Management

✓ OHSAS 18001:2008 Occupational

Health and Safety Management

SAMSUN PLANT

✓ Emission Certificate


Management

✓ ISO 9001:2015 Quality

Management

✓ OHSAS 18001:2008 Occupational

Health and Safety Management

MERSIN PLANT

✓ Catalytic reduction system to

keep NOX emission in exhaust

gases released to atmosphere

from nitric acid unit under 200

ppm


Management

✓ ISO 9001:2015 Quality

Management

✓ OHSAS 18001:2008

Occupational Health and Safety

Management

Environmentally Conscious Production

54


Chemical Industry

Chemical


Contracting

Agricultural


Social Responsibility

55

Supporting farmers;

▪ Educational seminars and training programs

through «Farmer Academy» 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


Chemical Industry

Chemical


Contracting

Agricultural


Product Stewardship

56

✓ In 2018, Toros Tarim became the first Turkish fertilizer producer

who received IFA Protect & Sustain Certificate and distinct group

of 55 producers from 51 countries.

✓ Product Stewardship refers to the industry’s Safety, Health and

Environmental (SHE) management. It takes it beyond factory’s

gates, in cooperation with suppliers, transporters and retailers. In

many respects, it is about putting into place responsible business

management processes across a product's lifecycle.

✓ Toros Tarim is dedicated to put SHE principles at the first place

for all stakeholders.


Agricultural Production

Chemical

Industrywww.tekfen.com.trTekfen Group Engineering

& ContractingAgricultural


AGRICULTURAL

PRODUCTION



Chemical




Tekfen Agri

63

Tekfen Agri in Brief

✓ Founded in 2017.

✓ 90% of the Alanar Fruit and its affiliated company Alara Nursery was

bought in 2017.

✓ Following an approval of The Ministry of Industry and Technology,

Tekfen Agri Adana Agripark has become the R&D Centre in 2018.

✓ Upon purchasing remaining share of co-founders of Alanar Fruit and

Alanar Nursery, companies were incorporated in Tekfen Agri in 2019.

Alanar Fruit in Brief

✓ Total area of ownership 6,200 decare and leased area of 475

decare, including 204,408 trees

✓ Produces and sells cherry, black fig, apricot, pomegranate,

nectarine, Japanese plum, persimmon, chestnut

✓ 20% of the total sales are from production while, 80% of the sales

are imports

✓ Share of exports in total sales is around 67%

✓ Main export markets are Germany, England and Sweden

Products are exported more than 30 countries



Chemical




Alanar Fruit & Alanar Sapling

64

Targets After Tekfen Partnership

✓ New land investments of 4,000 da between 2019-2023

✓ Four new plant investments in Alasehir, Aydin, Malatya and

Bursa and various equipment investments

✓ Sales volume of 25,000 tons in 2022

✓ Share of sales from production to remain within the range of

25-30%

✓ Targeting TRY522mn revenues and 20% EBITDA margin in

2023

✓ Share of exports in total sales to be around 90% level

-9

0

-10

4

-3.6%

0.0%

-5.3%

1.4%

-6.5%

-4.5%

-2.5%

-0.5%

1.5%

-15

-10

-5

0

5

10

15

2017 2018 2019 2020E

EBITDA (TRYmn) & EBITDA margin (%)

EBITDA EBITDA Margin

-6-2

-22

-29

-2.4%-1.3%

-10.7%

-9.8% -12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

-40

-30

-20

-10

0

2017 2018 2019 2020E

Net profit (TRYmn) & Net margin (%)

Net Profit Net Margin

34

158

206

294

0

50

100

150

200

250

300

350

2017 2018 2019 2020E

Revenues (TRYmn)

CAGR: 105%



Chemical




Vegetable Seedlings:

▪ 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)

Tekfen Tarım - Seed & Sapling Activities

60

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


Services

Investment www.tekfen.com.trTekfen Group Engineering

& Contracting

Chemical

Industry

Agricultural

ProductionServices

SERVICES


Services


& Contracting

Chemical

Industry

Agricultural

ProductionServices

Marine Terminal Services

62

✓ 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

✓ Significant player in port activities, providing services to

third parties in two ports strategically located at the

Eastern Mediterranean and the Black Sea Coast


Services


& Contracting

Chemical

Industry

Agricultural

ProductionServices

➢ 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

63

➢ 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


Services


& Contracting

Chemical

Industry

Agricultural

ProductionServices


64

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 4.40

2013 2014 2015 2016 2017 2018 2019

40%

55%60%

70%77%

42%

9%

2013 2014 2015 2016 2017 2018 2019


Services


& Contracting

Chemical

Industry

Agricultural

ProductionServices


Terminal Revenues & EBITDA & Net Income (TRYmn)

69

85

123

137

171

143 145

30

42

7283

120

93 90

2332

54

67

9182

68

2013 2014 2015 2016 2017 2018 2019

Revenues EBITDA Net Income

65


Services


& Contracting

Chemical

Industry

Agricultural

ProductionServices

Adana Yumurtalık Free Zone (TAYSEB)

➢ Established in 1990

➢ Founding partner and operator of the one of the largest free zones in Turkey

➢ 4.5 million m2 of area and fully installed infrastructure

➢ One of Turkey's biggest free zones today

➢ Strategically located in Ceyhan region which is becoming the energy hub for Turkey

➢ TAYSEB is an attractive venue for manufacturing-based high value-adding industrial investments.

66


Services


& Contracting

Chemical

Industry

Agricultural

ProductionServices

Tekfen Services

✓ 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.

✓ Tekfen Services has generated TRY57.5mn revenues and TRY0.4mn EBITDA in 2019.

67


Services


& Contracting

Chemical

Industry

Agricultural

ProductionServices

Tekfen Insurance

✓Tekfen Insurance started the insurance operations as the agency of La Suisse Insurance in 1982.

✓Tekfen Insurance continues today with the agency in all insurance branches in Turkey and 21 of

the world's leading insurance companies.

✓Tekfen Services has generated TRY14.6mn revenues and TRY8.9mn EBITDA in 2019.

68


Investments

www.tekfen.com.trTekfen Group Engineering &

ContractingChemical

Industry

Agricultural


INVESTMENTS


Investments


ContractingChemical

Industry

Agricultural


Tekfen Tower & Akmerkez

→ 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, 30% is used by Group Companies, while

the rest is rented to various institutions.

→ Total rental income from Tekfen Tower amounted to USD 9 million in 2019.

→ Total rental income from the two offices in Akmerkez is USD540,000 in 2019.

70


Investments


ContractingChemical

Industry

Agricultural


Investing in the Future

Series A & B

Strategic Sectors

Category Leaders

Global Focus

$50M

Fund Size

~12Companies

$1-3MInitial

Investment

Fund Structure

Based in New York City, Tekfen Ventures is an early stage venture

fund investing in technologies that will redefine our sectors. As a

leader in our industry, we have the opportunity and responsibility to

help drive the critical innovations they need. Portfolio Companies

Tekfen Ventures

71


Investments


ContractingChemical

Industry

Agricultural


SOCAR Polymer

✓ Founded in 2013

✓ 184 kta PP and 120 HDPE kta production capacity

✓ PP and HDPE plants were put into operations in July 2018 and February 2019, respectively

✓ 10% of the shares are owned by Tekfen Holding

✓ Starting in 2020, SOCAR Polymer will be operating at full capacity

✓ Turkey, Azerbaijan, Western and Central Europe and Russia are the target markets

✓ Total investment size is USD820 million

✓ Revenues USD 400 million and EBITDA around USD 200 million expected in 2020 and onwards after

the plants start operating at full capacity

72


Investments


ContractingChemical

Industry

Agricultural


Berlin & Dortmund Projects

Dortmund Investment:

✓ On 2 May 2019, an investment in the amount of 3 million Euro with the purchase of 12.58% share

✓ Operation after the partial renovation of the office building built in 1993 located in the city center of

Dortmund / Germany.

✓ The pre-sales agreement was signed on 7 May 2019

✓ Total Estimated Project Size (Tekfen Share) is 4,7 million Euro and leasable Area is 24,611 sqm

✓ Total Estimated Project Start – 2019/Q2, Completion: 2023/Q3

✓ The project is located in the city center of Dortmund, opposite side of the opera house, at the

primary location on Hiltropwall Street with high accessibility and visibility.

Berlin Investment:

✓ On 17 June 2019, an investment in the amount of 5 million Euro with the purchase of 11.44% share

✓ Operation of the office building located in Berlin / Germany after the partial renovation. Tekfen

International's share in the project is 6.84%.

✓ The pre-sale agreement was signed on 18 June

✓ Total Estimated Project Size (Tekfen Share) is 9 million Euro and total leasable area is 64,774 sqm

✓ Estimated Project Start – 2019/Q2, Completion: 2024/Q2

✓ The project is located in the area of Wedding in the district of Mitte in Berlin and on the Seestraße,

one of the main axes of the area.

73


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


Financial Highlights 75

Net Cash Position 76

Capital Expenditures 77

Disclaimer 78

Contact Info 79

Appendix

74


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


Financial Highlights – Segmental Breakdown

75‘ Expected average TRY/USD exchange rate is 6.99 for 2020.

(Million TRY) Expectation

Revenue 2019 2020E

Contracting 10,538 8,922

Chemical Industry 3,451 3,774

Agricultural Production 206 294

Services 367 501

Investment 41 48

Total 14,603 13,539

EBITDA 2019 Margin 2020E Margin

Contracting 1,451 13.8% 69 0.8%

Chemical Industry 461 13.4% 605 16.0%

Agricultural Production -11 -5.2% 4 1.4%

Services 112 30.6% 187 37.4%

Investment -93 -225.6% (92) -192.0%

Total 1,921 13.2% 773 5.7%

Net Profit 2019 Margin 2020E Margin

Contracting 991 9.4% (223) -2.5%

Chemical Industry 328 9.5% 369 9.8%

Agricultural Production -22 -10.5% (29) -9.8%

Services 88 24.0% 141 28.3%

Investment 30 72.3% 153 318.5%

Total 1,415 9.7% 412 3.0%


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


331

2,136

3,5963,329

2016 2017 2018 2019-695

227

800749586

801

2,090

672834

1,562

511

1,256

Contracting Agri Industry Other

2016 2017 2018 2019

Tekfen GroupNet Cash Position*

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

76

* 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,

**** TRY70 million advance payment collected in Qatar for the ongoing Al Khor Motorway Project and TRY214 million advance payment

from ongoing Haradh Project in Saudi Arabia is included.

**

***

***

****

******


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


Tekfen GroupCapital Expenditures

Capital Expenditures (Segmental Breakdown, Million TRY)

77

2011 2012 2013 2014 2015 2016 2017 2018 2019

78.4

142.6

24.7 27.0 17.345.7

167.9 186.5

107.7

11.4

49.9

158.4

371.2

275.0

120.0

61.171.5

167.0

6.7

0.71.0

3.2

3.8

4.0

3.73.9

17.0

96.5

193.3 184.1

401.5

296.1

169.7

232.7261.9

291.8

Contracting Agri Industry Other Total


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


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

78


www.tekfen.com.tr

Tekfen Group


ContractingChemical

Industry

Agricultural


For General Questions and Requests for Reports:

Çağlar Gülveren, CFA

Investor Relations and Corporate Governance Director, Tekfen Group of Companies

E-MAİL: [email protected] / [email protected]

TEL: +90 212 359 34 20

Can Çimenser

Investor Relations Assistant Manager, Tekfen Group of Companies

E-MAİL : [email protected] / [email protected]

TEL : +90 212 359 38 09

Contact Information

79


mailto:[email protected]




Tekfen Holding Investor Presentation May 2021 · 2021. 5. 27. · Tekfen Group At a glance Tekfen...

Documents

Transcript of Tekfen Holding Investor Presentation May 2021 · 2021. 5. 27. · Tekfen Group At a glance Tekfen...