Tekfen Holding Investor Presentation November 2014 · Tekfen Group Contracting Agri Industry Real...
Transcript of Tekfen Holding Investor Presentation November 2014 · Tekfen Group Contracting Agri Industry Real...
Tekfen Holding Investor Presentation November 2014
Tekfen Group At a glance
Tekfen Group Contracting Agri Industry Real Estate Other www.tekfen.com.tr
1956 Feyyaz Berker, Nihat Gökyiğit and Necati Akçağlılar formed an engineering consulting company 1957 The three partners establish Tekfen Construction Ltd. 1963 Tekfen Industry and Trading Co., Inc. is founded to produce incandescent lamps.
1971 Foundation of Tekfen Holding 1975 Iraq-Turkey pipeline 1976 Mis Süt (Dairy products) enters the market 1978 Tekfen Construction goes overseas
1981 Toros Fertilizer starts production 1987 TAG Highway project 1989 Tekfenbank Acquisition of Akgübre fertitilizer 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
2
2007 Partnership with Eurobank EFG in Tekfenbank Acquisition of EFG Istanbul Securities IPO of Tekfen Holding
2012 Sale of Eurobank Tekfen
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Corporate Governance
Share Classes
Single type of shares (one share one
vote)
Composition of the Board
4 out of 11 members are independent.
Board members to be elected for max.
of three years
Dividends
30% of the distributable income has
to be paid out
Ownership Structure
No cross ownership within the group
Gökyiğit 21%
Berker 21%
Akçağlılar 13%
Others 4%
Free Float 40%
Ownership structure
3
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
At a glance
Main Operations
• Construction
• Engineering
• Fabrication
Main Companies
• Tekfen Construction
• Tekfen Engineering
• Tekfen Manufacturing &
Engineering
Contracting
Share in consolidated
revenues*: 60,5%
Main Operations
• Fertilizer production and
distribution
• Terminal services
• Seed, sapling and seedling
production and distribution
• Free zone operations
Main Companies
• Toros Agricultural Industry
& Trade
• Toros-Adana Yumurtalık
Free Zone
• Hishtil-Toros Seedling
Industry & Trade
• Black Sea Fertilizer Trade
Agri Industry
Share in consolidated
revenues*: 37,0%
Main Operations
• Real Estate Development
• Construction & Marketing
of Real Estate Projects
• Facility Management
Main Companies
• Tekfen Real Estate
Development
• Tekfen Tourism & Facility
Management
• Tekfen Real Estate
Investment
• Florya Real Estate Inv.
Const. Tourism Co., Inc
Real Estate
Share in consolidated
revenues*: 0,8%
Tekfen Industry
• Lighting and chemical
products
Tekfen Insurance
• Authorised agent of 18
insurance and 3 pension
fund companies
Other
Share in consolidated
revenues*: 1,7%
4 * As of 31.12.2013
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Strategic focus
• Tekfen Holding is devoted to the motto “do what you know best in the best way
possible” which was determined by its founding shareholders. In this framework
Tekfen has focused on Contracting, Agri-industry / Terminal Services and Real-Estate
Development sectors.
• Contracting is an activity that Tekfen Holding operates in since its foundation and
has gained first class expertise. The potential demand for contracting activities of the
countries in Middle East, Caspian Region and North Africa which have been
developing and enriching in the recent years has played a key role in the
determination of this activity as a strategic focus.
• Agri-industry sector addresses to the most basic need of the mankind, namely
nutrition. Fertilizer, on the other hand, is an indispensable input for agri sector. Due to
the growing world population in addition to the alternative uses like bio-fuel
production, it is anticipated that demand for agricultural production and for fertilizers
will grow. As a result, this activity has a strategic focus for the Group.
5
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Strategic focus
• Terminal activities are undertaken in the framework of Agri-industry segment
comprising of two marine terminals strategically located in the Mediterranean and the
Black Sea regions.
• It is observed that in parallel to the development and enrichment of every country,
demand for modern, luxurious and high standard residential and commercial housing
increases. Hence, Real Estate Development is another strategic focus for Tekfen
Group.
• Tekfen Holding aims to grow and become leader in the strategic sectors mentioned
above and does not plan to enter new sectors in the near future.
6
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Vision / Mission
Our Vision
“To be one of the leading forces of Turkey’s growth in our areas of operations
namely, Contracting, Agri-Industry and Real-Estate Development.”
Our Mission
“While remaining commited to our traditional values, we aim to focus on our
core operations, deliver the highest quality products and services, become
the leader of our segments, and at the same time, generate value for all of our
stakeholders, namely, our customers, suppliers, employees, shareholders
and society.”
7
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Social Responsibility
• Tekfen Group believes that supporting social culture and environmental activities
are the natural extentions of its corporate structure. All the companies under the
Tekfen Group umbrella emphasize “usefulness”, “harmony” and “protection”
principles as a prerequisite for the activities in their own fields.
• Believing that supporting social development and improvement is everybody’s
common task Tekfen continues its efforts for this end for decades. These activities
which are the common values for all employees, from top executives to entry level
employees of the Group coincides with the philosophy which puts human and the
environment as the focal value.
• With the purpose of continuing its contribution to social and cultural activities,
Tekfen established Tekfen Foundation for Education Health, Culture, Arts, and
Protection of Natural Habitat in 1999. Supporting a variety of projects in the fields
of education, culture and art since its establishment, Tekfen Foundation obtained
status as an “institution that works for the benefit of society“ through the Cabinet’s
decision in 2004.
8
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
16.868
11.36613.079
15.50917.532
15.514
2008 2009 2010 2011 2012 2013
Tekfen Group
Human resources
Tekfen Holding has a dynamic and
professional workforce of over
15.000 employees.
Number of employees
Contracting Agri Industry Real Estate Other Total
2008 14.664 1.050 325 760 16.799
2009 8.877 949 745 795 11.366
2010 10.680 993 569 837 13.079
2011 12.982 995 710 822 15.509
2012 15.546 1.035 419 532 17.532
2013 13.614 1.033 348 519 15.514
Number of employees (breakdown by segment)
9
Contracting
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Overview
• Founded in 1956 as an engineering and consultancy firm.
• One of the largest contracting groups in Turkey.
• Main area of specialization is construction projects in the oil and gas industry.
• Is among the leading international construction companies in the world and ranks at
number 101 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 2014.
• Over 350 projects with a total amount of US$12.2 billion completed .
• Successfully completed US$6.5 billion worth of projects abroad.
• The Group has broken records for working hours without LTI (lost time incident) in
Azerbaijan, Kazakhstan and Ceyhan projects.
11
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Selected Clients
12
TURKISH
• TCK, Turkish State Highways Authority
• EÜAŞ, Electricity Production Co.
• PETKİM, Petrochemical Co.
• TÜPRAŞ, Turkish Petroleum Refineries Co.
• BOTAŞ, Petroleum Pipeline Co.
• Ministry of Public Works and Settlement
• Several Municipalities
• TPAO, Turkish Petroleum Co.
• DSI, State Hydraulic Works
• Turkish State Railways Authority
• Turkish Olympic Committee
• Ministry of Energy and Natural Resources
• DLH, State Harbours and Airports Authority
INTERNATIONAL
SAUDI ARABIA IRAQ
• Saudi Aramco
• Ma’aden
• Petro Rabigh
• WCC, Saline Water Conversion Co.
• Min. of Agriculture & Water
• Min. of Municipal & Rural Affairs
• SCOP, State Company for Oil Projects
• North Refineries Company
QATAR
• Qatar Petroleum
• QAPCO
• Ashghal (Public Works Authority)
KUWAIT MOROCCO
• Ministry of Public Works
• KOC, Kuwait Oil Co.
• OCP, State Phospate Company
• SAMIR, Refinery Company of Morocco
OTHER
• AGIP
• Shell
• BP
• BTC, Baku Tbilisi Ceyhan Pipeline Co.
• Uzbekneftegas, Uzbekistan
• Kazakturkmunay, Kazakhstan
• CPC, Caspian Pipeline Consortium, Kazakhstan
• AIOC (Azerbaijan Operating Co. led by BP)
• BP Exploration Shah Deniz Ltd.
• Georgian Pipeline Co.
• MMRA, Libya (Man Made River Authority)
• SOCAR (State Oil Company of Azerbaijan)
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Selected International Project Partners
13
• Alstom, France
• AMEC, UK
• Babcock Borsig Power, Germany
• Chiyoda Corp., Japan
• Fluor, USA
• Foster Wheeler, Italy
• Hitachi Plant Technologies, Japan
• Impregilo, Italy
• Itochu, Japan
• JGC, Japan
• John Brown, UK
• Lurgi GmBH, Germany
• Marubeni Corp., Japan
• Mitsubishi Corp., Japan
• Mitsui Corp. Japan
• Mitsubishi Heavy Ind., Japan
• NEC, Japan
• Nippon Signal, Japan
• Parsons Inc., USA
• Petrofac, UAE
• SAE, France
• Saipem, Snamprogetti, Italy
• Siemens, Germany
• Skoda Export, Czech Republic
• Sofregaz, France
• Spie Batignolles, France
• Technip, Germany
• Technicas Reunidas, Spain
• Toyo Engineering, Japan
• Uhde GmbH, Germany
• Vinci, France
• Williams Brothers, USA
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
PHOTO!
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$ 350 million.
• As of 2013-end, Tekfen Contracting Group had an all-time high active
portfolio of US$ 3 billion, 85% of which were abroad, located in 8 different
countries.
• In 2013 and 2014, the Group undertook a total of US$ 1,904 million of new
works in Azerbaijan which, as a country, accounts for 61% of the remaining
works by the end of June 2014.
• Backlog is US$ 2.531 million by the end of June 2014.
Overview
14
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Total Manpower: 14.880
TURKEY:6.630 ABROAD:8.250
Manpower
Azerbaijan 5.721
Morocco 144
Qatar 1.796
Turkmenistan 30
Iraq 4 Saudi Arabia
521
Kazakhstan 25 Libya 3
Uzbekistan 6
15
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
DISIPLINE&DIVISION
ENGINEERS 385 2,6%
MANAGEMENT 149 1,0%
PROCUREMENT 31 0,2%
ADMIN 429 2,9%
QA&QC/HSE 376 2,5%
TECHNICIANS 90 0,6%
FOREMEN 295 2,0%
OPERATORS&DRIVERS 812 5,5%
CIVIL WORKS 1.350 9,1%
ELECTRICAL WORKS 420 2,8%
PIPE&WELDING WORKS 1.820 12,2%
MECHANICAL WORKS 1.360 9,1%
STEEL&ERECTION WORKS 510 3,4%
OTHERS 3.400 22,8%
SUBCONTRACTORS 3.453 23,2%
TOTAL 14.880 100%
NATIONALITY
TURKISH 7.900 53,09%
AZERBEIJANI 5.022 33,75%
TURKMEN 22 0,15%
MOROCCAN 6 0,04%
INDIAN 285 1,92%
NEPALESE 260 1,75%
PHILIPIN 152 1,02%
ETHIOPIAN 280 1,88%
KAZAKH 17 0,11%
IRAQI 4 0,03%
OTHER 932 6,26%
TOTAL 14.880 100%
Manpower Structure
16
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Areas of Expertise
17
BASIC
ENGINEERING*
DETAILED
ENGINEERING
PROCUREMENT FABRICATION CONSTRUCTION START UP
E
E + P
E + P + F
E + P + C
PMS
* In pipelines, tank farms / terminals, motorways, bridges, tunnels, infrastructure and civil projects.
E : Engineering F : Fabrication
P : Procurement PMS : Project Management Services
C : Construction
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
• Tekfen Contracting Group continues its operations in 8 countries spread around 2 continents (Asia & Africa).
Among these, in 5 countries (Turkey, Azerbaijan, Qatar, Saudi Arabia and Libya*) Tekfen has construction
sites. In Turkmenistan, Morocco and Iraq, on the other hand, construction works have been finalised.
• In addition to contracting activities, the Group has 3 manufacturing plants in Derince, Ceyhan (Turkey) and
Baku (Azerbaijan). Fabrication done (tanks, vessels, columns and heavy steel structures) in manufacturing
facilities of Tekfen are exported to countries such as Iran, Syria, Iraq and Brasil.
Geography
18 * As of the date of this presentation, the operations in Libya are frozen.
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
569 484 484 368 237 159 111 72 75 34 36555 561 474 259
175 201 242 167 264
1.535 1.350 1.6681.257 1.225
1.7941.449 1.589
2.524
1.949
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014/9
Abroad Turkey
• 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)
Backlog Growth
19
744 685 726
535 501
1.694 1.461
1.740
1.333 1.259
1.830 2.150
2005
2.998
2.209
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Backlog (as of 30 September 2014)
20
* “Expected end date” refers to the “Mechanical Completion” or “Temporary Acceptance” date for construction works.
** “Financial completion rate” reflects the earned value of the project on the basis of revenue.
Project Location
Expected
End Dates *
Current
Contract Price
Tekfen
Portion
Revenue
Based
Completion
Rate
Remaining
Amount (US$)
Çiftehan-Pozantı Motorway Turkey 28.02.2015 322.728.999 $ 228.008.038 $ 97,6% 5.536.528
Prov. of Pipeline and Facilities Repair Services for BTC Turkey Turkey 10.09.2016 136.200.000 $ 136.200.000 $ 16,7% 113.504.956
Tüpraş - Residuum Upgrading Project of Izmit Refinery Turkey 31.12.2014 545.000.000 $ 545.000.000 $ 92,7% 39.769.777
Toros Tarım Samsun Plant Investment Project** Turkey 01.04.2015 161.244.332 $ 161.244.332 $ 63,0% 59.689.490
Supply and Fabrication of Pancakes of Top Sides Modules Turkey 30.06.2015 44.187.173 $ 44.187.173 $ 18,5% 36.005.684
Supply of Flare Tower Turkey 30.04.2015 2.224.000 $ 2.224.000 $ 0,0% 2.224.000
Supply and Fabrication of Steel Structure Type Pancakes Turkey 15.01.2015 16.889.842 $ 16.889.842 $ 85,5% 2.452.670
TURKEY TOTAL 259.183.105
South Yoloten Gas Field Project Package 2&3A Turkmenistan 31.12.2013 316.500.000 $ 316.500.000 $ 96,2% 12.000.000
TURKMENISTAN TOTAL 12.000.000
New Management Office Project of SOCAR Azerbaijan 28.02.2015 365.812.734 $ 365.812.734 $ 87,5% 45.823.767
Baku Olympic Stadium Project Azerbaijan 28.02.2015 640.500.000 $ 640.500.000 $ 95,7% 27.338.117
Additional Completion Works Azerbaijan 30.06.2015 164.259.255 $ 164.259.255 $ 0,0% 164.259.255
Shah Deniz Stage 2 Fabrication of Offsite Facilities Azerbaijan 31.01.2017 262.365.978 $ 262.365.978 $ 8,0% 241.287.809
Shah Deniz Stage 2 Onshore Terminal Facility - Sangachal Terminal Azerbaijan 15.10.2017 308.996.537 $ 308.996.537 $ 7,5% 285.812.330
AZFEN Projects** Azerbaijan 2.143.040.214 $ 857.216.086 $ 33,1% 573.125.428
AZERBAIJAN TOTAL 1.337.646.706
Propylene Oxide Process Unit S. Arabia 31.07.2015 149.826.676 $ 149.826.676 $ 65,4% 51.767.232
SAUDI ARABIA TOTAL 51.767.232
OCP Slurry Pipeline Project Khouribga - Jorf Lasfar Morocco 31.07.2014 461.881.940 $ 461.881.940 $ 92,6% 34.151.255
MOROCCO TOTAL 34.151.255
Qatar Primary Routes North Roads Contracts 2&3 Qatar 30.09.2013 781.665.409 $ 781.665.409 $ 99,0% 7.891.207
Additional Work for North Road Project Qatar 30.06.2014 94.621.917 $ 94.621.917 $ 91,0% 8.530.241
Design and Construct Service Road Enhancement to North Road Corridor Qatar 25.06.2016 591.909.930 $ 591.909.930 $ 32,6% 398.984.858
QATAR TOTAL 415.406.306
Kufra Conveyance System Libya On Hold 486.461.084 $ 325.928.926 $ 70,0% 97.898.859
LIBYA TOTAL 97.898.859
Rumalia Field Dev. Project Prov. Of Engineering and Project Management Services Iraq 31.12.2014 196.635.189 $ 196.635.189 $ 99,8% 450.000
IRAQ TOTAL 450.000
TOTAL 2.208.503.463
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Ongoing projects (as of 31 December 2013)
Backlog Breakdown by Regions
Region US$ (million)
Caspian Region 1.350
Middle East 468
Turkey 259
North Africa 132
Total 2.209
Backlog Breakdown by Project Types
Project Type US$ (million)
Industrial Facilities 1.264
Motorway 421
Pipeline 246
Buildings 237
Fabrication Works 41
Total 2.209
21
Middle East 21%
North Africa
6%
Turkey 12% Caspian
Region 61%
Industrial Facilities
57%
Buildings 11%
Motorways 19%
Pipelines 11%
Fabrication Works 2%
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Overview
• Currently, the tenders entered into typically have a contract size of over
US$ 200 million, compared to the US$ 25 million threshold prior to 2005.
• Tekfen bids for 30 - 35 projects per year and the average success rate for
winning tenders is around 10%.
• The bid price is calculated as cost plus a mark-up, which is between 15-
25%.
• Average project completion period is approximately 2.5 years.
• Tax rates that the Group is exposed to in the countries it operates vary
between 0-35%.
22
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
• Founded in 1984.
• Undertakes the engineering (E) of EPC projects and the detailed engineering in other projects
of Tekfen Contracting Group.
• Has experience on a wide spectrum of projects, with an emphasis on pipelines, industrial,
process plants and motorways.
• The company employs a professional staff of over 100 engineers who utilize advanced
software in the preparation of all design and contract documents.
• Also serves non-group clients, mainly the General Directorate of Highways and
municipalities. Non-group clients generate around 35% of Tekfen Engineering’s business
volume.
Tekfen Engineering Co., Inc.
• Disciplines:
• Industrial Plants
• Pipelines and Piping
• Motorways and Highways
• Bridges and Viaducts
• Mass Transit Systems and Railways
• Mass Housing
• Commercial Buildings
• Harbour & Offshore Structures
• Infrastructure
Engineering
23
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
• Founded in 1970.
• Specialized mainly in engineering, manufacturing and construction of high
quality process and storage equipment related to petroleum, petrochemical,
chemical and fertilizer industries and power plants, such as cylindrical and
spherical storage tanks, heat exchangers, pressure vessels, process columns,
waste heat recovery boilers and pressurized piping for industrial plants to
respond to Tekfen’s increasing steel production and fabrication needs.
• 188 skilled manpower.
Tekfen Manufacturing Co., Inc.
24
• Design and fabrication are carried out according to International
Codes such as ASME, API, TEMA, AD-2000, EN 13445, BS etc. and the
company is qualified to work with all sorts of carbon steel materials
(including high tensile quenched and tempered), clad carbon steels, all
types of stainless steels, non-ferrous materials such as Monel, Brass,
Aluminum etc.
•Heavy manufacturing facility in Derince (Kocaeli), Turkey.
• Kuwait, Saudi Arabia, Iraq, Iran, Pakistan, Libya, Syria, Jordan, Oman,
Lebanon, Israel, Northern Cyprus, Morocco, Tunisia, Senegal, Sudan,
Russia, Kazakhstan, Turkmenistan and Azerbaijan are the countries that
the company exports.
• Spread on an area of 48,500 m2, of which 18,000 m2 is covered.
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
• Spread on an area of 160,000 m2, of which 30,000 m2 is
covered,
• Annual capacity of 30,000 tons,
• 650 skilled manpower,
• Production space consisting of 5 fabrication shops,
• An open material handling storage area,
• A welding school,
• Materials divisions
• Social facility quarter.
• The plant is equipped with full shot blast,
• CNC flame cutting and coping facilities,
• Sawing and drilling lines,
• Automated beam welding line
• Training Center & Welding School
Ceyhan Steel Structure Fabrication Plant Bayil Steel Construction Manufacturing Plant
• Tekfen’s manufacturing facility in Baku, Azerbaijan
• Spread on an area of 290,000 m2, of which 26,000 m2 is
covered,
• Capable of meeting exceptionally high standards of the oil
and gas projects
• Equipped with high end machinery and advanced
technology to serve manufacturing of Topsides and
Modules
• Easy access is provided to the plant through the main
highway, being at a distance of 7 km from the city center of
Baku, materials and equipment can also be delivered to the
quaysides of the facility by the sea.
Fabrication Plants
25
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Revenues and EBITDA Margin
Revenues (MTRY) and EBITDA Margin (%)
• Expected project-end EBITDA margin on project basis varies from 10% to 25% at the beginning of
each project.
26
1.029
1.319 1.339
1.111
1.864
2.395 2.327
2.548
7,2%
8,3%
11,0%
13,2%
9,3%
5,9%
-4,3%
8,1%
-6,0%
-1,0%
4,0%
9,0%
14,0%
19,0%
-1.000
-500
0
500
1.000
1.500
2.000
2.500
3.000
2007 2008 2009 2010 2011 2012 2013 2014E
Revenue EBITDA Margin
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
TURKEY – TÜPRAŞ IZMIT REFINERY, RESIDUUM UPGRADING PROJECT
Residuum Upgrade Project (RUP) has been decided for Izmit Refinery of Tüpraş, which
is located in Gulf of Izmit, at the center of a consumption hub that accounts for around
40% of Turkish petroleum product consumption.
The main purpose of the Residuum Upgrading Project (RUP) is to built units that
process the low value of fuel oil and convert it to valuable products. With completion of
the Residuum Upgrading Project, owner Tüpraş will process 4,2 million tons of high
sulfur fuel oil and produce 3,5 million tons of valuable high quality white products
(diesel / jet fuel, gasoline and LPG) in Euro-V standarts, 690,000 tons of petroleum coke
and 86,000 tons of sulfur.
Shell GSI, Foster Wheeler USA, UOP and Technip are the technology licensors for the
project. Tecnicas Reunidas, an international general contractor in engineering and
construction in the oil and gas sector, is the main contractor for the Project.
Tekfen has been awarded a $ 501 million contract that includes the execution of all
Construction Works for Civil Works, HVAC System, Steel Structure Engineering, Supply
and Erection, Mechanical Erection, Electrical and Instruments Installation and also
Precommissioning and Commissioning Activities.
As one of the most experienced contractors in the country in the oil and gas sector,
Tekfen will use approximately 5,000 of its own direct/indirect man-power in the peak,
utilize its own project management team and use its own machinery/equipments during
course of the project which started on December 2011. The project will last 33 months.
Ongoing projects – Turkey
27
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
AZERBAIJAN – NEW MANAGEMENT OFFICE PROJECT OF SOCAR
Project is for the turnkey construction of SOCAR’s (State Oil Company of
Azerbaijan Republic) new headquarter complex in Baku. Project size, which was
USD 235 million initially, increased to USD 306 million.
Designed by Heerim Architects form South Korea, the two-towered project will
rise from an elongated, canopy-like podium and snake their way skywards.
Curving into each other, the seemingly shorter tower almost looks like its
resting its head on the chest of the taller tower, the taller towers peak slightly
bending over it in a confident, reassuring manner. The towers will have 32
floors, at a height of 173 meters. Covering an area of 12,000 square meters and
providing 100.000 sqm of usage area, the headquarter will mainly house office
space but will also have conference and sports facilities, a guest house and
retail spaces, food outlets to keep the expected 2000 employees in the tower.
Ongoing projects – Caspian Region
28
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
AZERBAIJAN – BAKU OLYMPIC STADIUM
Baku Olympic Stadium Project which is located near the Boyuk Shor
Lake, Baku, Azerbaijan will have a capacity of 68.000 seats. 496.000 m2
total site area, 204.000 m2 gross floor area of the Stadium contains
commercial areas and disabled, public, media, CIP, VIP and VVIP
Sections.
Tekfen Construction has been awarded for completion of the Design and
Build Olympic Stadium Project in Baku , the work has been commenced
after the notice to proceed issued on 27.02.2013, planning the
completion of the Project within a period of 24 months.
Ongoing projects – Caspian Region
29
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
OFFSHORE PLATFORMS
The contract signed on between ATA Consortium (AMEC – Tekfen – Azfen) of which Tekfen
is a member and BP Exploration (Shah Deniz) Ltd. comprises fabrication, installation and
delivery of 2 offshore platforms of total weight of 26.442 tonnes, and associated platform
connection bridge. Duration of work is 42 months from commencement date of the
contract.
SANGACHAL TERMINAL
The contract signed on between Tekfen – Azfen Consortium of which Tekfen is a member
and BP Exploration (Shah Deniz) Ltd. comprises construction of Shah Deniz Stage 2
Onshore Terminal Facilities at Sangachal, Baku,Azerbaijan. Scope of work includes
construction and installation of gas and condensate processing facilities, power
generation, storage tanks, utility systems, connections and upgrade works within existing
facilities, control systems, onshore pipelines between caspian sea shore and terminal,
compression facilities. Duration of work is 43 months from commencement date of the
contract.
Ongoing projects – Caspian Region
31
Shah Deniz Stage 2
Tekfen Projects
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Ongoing projects – Caspian Region
32
Shah Deniz Stage 2 Project Overall Scope
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Ongoing projects - Middle East
33
QATAR - PRIMARY ROUTES, NORTH ROAD PROJECT PHASE 2 & 3 and
ADDITIONAL WORKS
Tekfen, is awarded by Ashghal, Public Works Authoritry of Qatar; construction
of a 94 km Motorway, namely Primary Routes, North Road Project Phase 2 & 3.
The Main Works comprise two separate sections as described here below:
Contract 2 (Km : 4 + 000 – Km : 37 + 000): Contract “2” starts at Duhail, passing
through sub-urban and rural areas to the North of Doha City, namely Duhail,
Kheessa, Khuraitiyat, Umm Salal Ali, Umm Salal Mohammad. The Contract
includes the Simaisma road link and continues till its end after Al-Khor road
intersection.
Contract 3 (Km : 37 + 000 – Km : 98 + 200): Contract “3” starts near Al Khafaij
area, passing through rural areas, namely North Military Camp, Al Khaaban, Al
Juthay, Fuwairit, Al Ghariya, Athba Al Shamaliyah and Madinat Al Shamal.
QATAR - DESIGN AND CONSTRUCT SERVICE ROAD ENHANCEMENT TO
NORTH ROAD CORRIDOR PROJECT
Awarded by Ashghal, Public Works Authoritry of Qatar, the Project comprises
the Design, Construction and 400 days Maintenance of “Design and Construct
Service Road Enhancement to North Road Corridor Project”.
The scope of the project includes, new Service Roads, Carriageways,
Connection Roads, 96 km Bicycle Path, Flyovers and Bridges, Underpass
Bridges, Pedestrian Bridges, Road Pavement Works, Drainage System,
Guardrails and Concrete Barriers, Fencing, Electrical and Road Lighting Works,
Traffic Signing and Road Marking, Traffic Signalization, Footways, Paving with
Concrete Blocks and Natural Stone, Q-Tel, Qatar Armed Forces and DSSS (Doha
Street Surveillance System) Works, Landscaping & Irrigation System
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
North Road
Qatar
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Ongoing projects - Middle East
35
SAUDI ARABIA - PROPYLENE OXIDE PROCESS UNIT
Tekfen was awarded the construction of LSPB contract for Propylene Oxide Plant at
Sadara Petrochemical Complex. The scope of work covers all civil works, erection of
prefabricated columns and vessels, installation of electrical and instrumentation including
central control building. Project location is in Jubail, and is part of the SADARA Chemical
Company's petrochemical plant. The works are scheduled to be completed in 30 months
and the project size is US$122,9 million.
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
LIBYA - AL KHUFRA - TAZERBO WATER CONVEYANCE SYSTEM (On Hold*)
Great Man Made River Authority of Libya awarded one of the most challenging
sections of Libya’s mega water transmission scheme to Tekfen – TML partnership
in 2005; Construction of Al Khufra - Tazerbo Water Conveyance System of 380 km
will take place at deeper south – east region of the Libyan Sahara.
Post-tensioned concrete pipes, each with a length of 7.5 meters, a diameter of 4
meters and a weigh of approximately 72 t, will be transported and erected to form
a water conveyance line within the scope of Great Man Made River Project, Phase
3 at the harsh conditions of Sahara Desert.
The source of the water is the Nubian Aquifer (a geological formation extending
from Western Cameroon to Eastern Palestine) in the south - east part of Libya.
The project is part of a multinational scheme monitored and supported by
International Fund for Agricultural Development (IFAD), an organization under
United Nations.
* The political and social unrest in Libya forced Tekfen to stop all activities and leave country
together with all other foreign contractors in February 2011.
Ongoing projects – North Africa
36
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Kufra Conveyance System
Libya
Contracting
Tekfen Group Contracting www.tekfen.com.tr Agri Industry Other Real Estate
Tekfen Contracting Group consistently works on the following in line with the goals of its
Strategic Plan:
• Existing and new projects will be undertaken within the framework of the adopted business
principles and occupational health, safety and environment (HSE) policies. Maximizing work
quality and maintaining accident-free operations in line with occupational safety standards
are the main priorities.
• The company will continue to focus on projects that emphasize the EPC concept and it will
continue to improve its competency in this area. Engineering and procurement functions will
be key areas to be improved. To achieve this, required personnel recruitments are done both
in our engineering company and in procurement departments.
• The emphasis will be on increasing business volume in countries where operations
continue. The goal is to secure new projects that at least maintain the current level of
revenue generated from projects in these countries.
• Addition of new subcontractors to our existing subcontractor portfolio and increasing the
share of South East Asia origined personnel in our total work force are considered as
strategy implementations.
• Activities geared towards increasing efficiency and profitability will continue.
• All requirements to preserve Tekfen’s strong and prestigious brand image in existing
markets will be met.
Strategic Direction
38
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
Agri Industry
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
The pioneer in Turkey’s agricultural industry
• Sign of “quality” and “trust”
• In business since 1981 under TOROS brand name
• Over 1,000 employees
• Highest employee loyalty in the industry
• Seasoned – well experienced employees
Overview
40
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
• Active in fertilizer, seed, seedling and sapling production and distribution, as well as marine
terminal services and free zone operations
• Consolidated turnover of TRY 1,423 million as of 2013
• Leading company in Turkish fertilizer industry with a market share of 28% as of 2013
• 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
41
Overview
2009 2010 2011 2012 2013
Mil
lio
n T
RY
Seed, Seedling andOthers
Terminal Services
Fertilizers81% 88% 89% 90%
6%
5%
13%
6%
6%
90%
5%
5%
6% 883
1.026
1.209
1.424 1.423
5%
5%
2009 2010 2011 2012 2013
Mil
lio
n T
RY
Seed, Seedling andOthers
Terminal Services
Fertilizers
72%
15%
73%
19%
64%
21% 9%
21%
6%
81%
13%
6%
43
147
191
137
117
68%
25%
7%
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
Fertilizers
• Supplying every type of fertilizer Turkish
farmers need
• Market leader since 1986
• Vast dealers network with over 800 dealers
• Sales and Marketing Team located in 7 regions
• Constant contact with dealers and farmers
• Timely delivery to dealers via 8 warehouses
42
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
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
43
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
• Nitrogen fertilizers:
• AN26 (CAN) - Calcium Ammonium Nitrate
• AN33 - Ammonium Nitrate
• AS - Ammonium Sulphate
• Urea
• Phosphate fertilizers:
• TSP - Triple Super Phosphate
• SSP - Single Super Phosphate
• Potash fertilizers:
• PS - Potassium Sulphate
Fertilizers – Product Types
44
• Compound fertilizers (NPs and NPKs):
• DAP - Di-Ammonium Phosphate
• NP 20.20
• NP 20.20+Zn
• NPK 15.15.15
• NPK 15.15.15+Zn
• Special grade compound fertilizers:
• NPK 25.5.10
• NPK 15.15.15 Gold
• NPK 10.20.20
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
2013 Total Sales: 1.64 million tons
Fertilizers – Sales
45
2012 Total Sales: 1.63 million tons
NP/NPK (Compound)
41%
AN26 21%
AN33 21%
DAP 9%
Urea 4% AS 3% Other 0,2%
NP/NPK (Compound)
42%
AN26 17%
AN33 21%
DAP 10%
Urea 7% AS 3% Other 0,3%
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
Consumption and Toros Sales Volume/Marketshare Turkey’s Total Production and Toros’ Production
Turkey’s Total Imports and Toros’ Imports
Fertilizers – Leader in Turkish Fertilizer Market
46
30% 35% 31% 30%
28%
0%
5%
10%
15%
20%
25%
30%
35%
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
2009 2010 2011 2012 2013
1,0
00 t
on
s
Consumption Toros Sales Marketshare
39% 42%
37% 39% 39%
0%
10%
20%
30%
40%
50%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
2009 2010 2011 2012 2013
1,0
00 t
on
s
Total Production Toros Production Toros Share
19%
10% 10% 8%
6%
0%
5%
10%
15%
20%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
2009 2010 2011 2012 2013
1,0
00 t
on
s
Total Imports Toros Imports Toros Share
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
• 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 38% share in Turkey’s total installed production capacity (SPO*)
Fertilizers – Production Facilities
SAMSUN PLANT
MERSIN PLANT
CEYHAN PLANT
* SPO:State Planning Organization 47
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
CEYHAN PLANT
NPK and DAP production
CAPACITY
2 x 330,000 tpa NPK
or
330,000 tpa NPK & 200,000 tpa DAP
SAMSUN PLANT
NPK and DAP production
CAPACITY
300,000 tpa NPK
227,000 tpa DAP
PHOSPHORIC ACID CAPACITY
PLANT I = 80,000 tpa (100% P2O5)
PLANT II = 108,000 tpa (100% P2O5)
MERSIN PLANT
AN and CAN production
CAPACITY
660,000 tpa CAN
NITRIC ACID CAPACITY
405,000 tpa
Fertilizers – Production Capacity
48
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
• The scarcity of low-cost raw materials
and high investment costs is a barrier
for a new producer to enter into the
market
• No restrictions on imports
• 7 fertilizer producers with a total
annual production capacity of 5.3
million tpa in 10 plants (SPO*)
Toros 38%
Gübretaş 17%
İgsaş 15%
Bagfaş 12%
Gemlik 8%
Ege 6%
Yıldız 4%
Turkish Fertilizer Industry
Breakdown of Domestic Production Capacities*
* SPO:State Planning Organization 49
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
In Mersin Plant, Toros produces nitric acid for its CAN/AN unit.
NITRIC ACID AIR
WATER
AMMONIUM
NITRATE
AMMONIA AMMONIUM
NITRATE
CALCIUM
AMMONIUM
NITRATE
LIME
STONE
Fertilizers – CAN/AN Production Diagram
50
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
Fertilizers – DAP/NP/NPK Production Diagram
*Either Urea or AS is added as nitrogen (N) source in addition to ammonia.
**Potash is added as potassium (K) source for NPKs.
SULPHURIC
ACID
PHOSPHATE
ROCK
PHOSPHORIC
ACID
AMMONIA
UREA/AS* DAP/NP/NPK
POTASH**
51
• In Samsun Plant, Toros both produces and imports phosphoric acid for its DAP/NPK units.
• In Ceyhan Plant, phosphoric acid is imported for DAP/NPK units.
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
Fertilizers – Raw Materials
Raw Materials Used in 2013 (1.48 million tons)
52
• Ammonia is one of the main raw materials
imported
• Phosphoric acid is an intermediate good and is
imported to be used for phosphatic fertilizers
(DAP/NP/NPK)
• Phosphate rock and sulphuric acid are imported
to produce phosphoric acid
• Urea is a nitrogen source and imported as raw
material
• Ammonium sulphate is a nitrogen and a sulphur
source and imported as raw material
• Potassium Chloride (KCl), also known as MOP, is
imported to be used as potassium source for
NPKs
• Limestone is used as filler
Ammonia 21%
Phosphoric Acid 6%
Phosphate Rock 26%
Sulphuric Acid 22%
Urea 7%
Ammonium Sulphate 10%
Limestone 6%
Potassium Chloride 2%
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
Imports - Breakdown by Products
Fertilizers – Production and Imports
53
Production - Breakdown by Products
43%
48% 46% 47% 47%
28%
23% 25%
21% 19%
12% 13%
18% 21%
23%
17% 16%
11% 11% 11%
2009; 1.11 mntons
2010; 1.45 mntons
2011; 1.39 mntons
2012; 1.42 mntons
2013; 1.41 mntons
Compound(NP/NPK)
AN26 (CAN)
AN33
DAP
38%
57%
42%
51% 50%
34%
12% 17%
11% 15%
12%
30%
37% 36% 33%
16%
1% 4% 2% 2%
2009; 562K tons 2010; 237K tons 2011; 219K tons 2012; 171K tons 2013; 189K tons
Urea
AN33
AS
Other
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
Toros Ceyhan Terminal
• 1 jetty with 5 berths loading 1,300 tons and
discharging 1,000 tons of bulk liquids per day
• 1 jetty with 3 berths handling 45,000 tons of
dry bulk cargo per day
• Grain warehouse with 60,000 tons capacity
• Closed storage area capacity: 300,000 tons
• Open storage area capacity: 1,000,000 tons
• Bagging capacity: 38,000 tons per day
• Tank farm capacity: 236,000 m3
Toros Samsun Terminal
• 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
• Tank farm capacity: 60,000 m3
TOROS has two marine terminals offering loading/unloading and storage services to third parties
Marine Terminal Services
54
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
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
Field Crop Seeds:
• Cooperating with two state research institutes to produce and
distribute certain types of wheat
• Wheat seed breeding program that earned support from TÜBİTAK
(The Scientific and Technological Research Council of Turkey)
Specialty Fertilizers:
• Suppliers of specialty fertilizers are globally known leading producers;
• Haifa Chemicals
• Tessenderlo Chemie
• Prayon
• Rosier of the Total Group
• Leading brand in specialty fertilizers in Turkey since 2000
Complementary Products and Services
55
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
Micropropagation:
• Targets to meet the sector's demand for high quality,
high yield and disease-free homogenous seed,
saplings and young plants
• First local successful producer of potato seeds on
commercial scale by using micropropagation
techniques in Turkey
• Serving to a market which is historically dominated
by imported potato seeds
Complementary Products and Services
56
Free zone operations:
• Founding partner and operator of the largest free
zone in Turkey
• 4.5 million m2 of area
• Strategically located in Ceyhan region which is
becoming the energy hub for Turkey
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
CEYHAN PLANT
ISO 14001:2004 Environment
Management
ISO 9001:2000 Quality
Management
OHSAS 18001:1999 Occupational
Health and Safety Management
SAMSUN PLANT
Emission Certificate
MERSIN PLANT
Catalytic reduction system
to keep NOX emission in
exhaust gases released to
atmosphere from nitric acid
unit under 200 ppm
Environmentally Conscious Production
57
Agri Industry
Agri Industry www.tekfen.com.tr Real Estate Tekfen Group Other Contracting
Social Responsibility
58
Supporting farmers;
• Educational seminars and training
programs to improve agricultural
productivity and product quality
Raising awareness;
• Supporting UNFPA’s “Improving health conditions of
seasonal workers in agriculture” program in Turkey
• “Wheat” documentary based on field trials done by
Toros throughout Turkey
• Sponsorships for scientific research and academic
seminars on agriculture and fertilizers
• “Balanced Fertilization with Right Fertilizers” Project
with the support of the Ministry of Food, Agriculture
and Livestock
• “Toprak Ana” (Mother Earth) documentary about
agricultural production in Turkey
Supporting local communities;
• Sponsoring sporting activities in Samsun and
Mersin
• Toros Primary School and Toros Secondary School
in Adana, and Toros Tarım Necati Akçağlılar High
School in Samsun
Real Estate
Real Estate Development
Real Estate www.tekfen.com.tr Agri Industry Tekfen Group Other Contracting
Te
kfe
n R
ea
l E
sta
te D
eve
lop
me
nt
Gro
up
Tekfen Real Estate Development Investment and Trade
Co., Inc
Business Line: Investment, development, project
management, asset management
Tekfen Tourism and Facility Management Co., Inc
Business Line: Facility Management
Florya Real Estate Inv. Const. Tourism Co., Inc
Business Line : Investment, development
Business Structure
60
Real Estate Development
Real Estate www.tekfen.com.tr Agri Industry Tekfen Group Other Contracting
Project Project
Function
Start Date of
Project
End Date of
Project
Estimated Revenue*
(million $)
Total/Tekfen Share
Estimated Cost**
(million $)
Total/Tekfen Share
Izmir Project Mixed Use Jan.13 Dec.17 508/254 230/115
Esenyurt Project Residential May.13 Dec.16
Projects
61
Project Total ***
Gross Leasable/ Sellable Area
(m²) Total Construction Area (m²)
Residence 50.000 80.000
Office 20.000 35.000
Shopping Mall 60.000 120.000
Total 130.000 235.000
*** Tekfen share is 50%.
*Residential & Office Sales Revenue: 2.800 $/m² x 70.000 sqm (adds up to $196 M in total)
Shopping Mall Revenue: 40 $/ m² /month x 10 years rent revenue (adds up to $ 288 M) + $24 M first year rent revenue with
80% occupancy
**Total cost, excluding land.
Izmir Project Details:
Real Estate Development
Real Estate www.tekfen.com.tr Agri Industry Tekfen Group Other Contracting
Ongoing Projects
Transaction Overview:
• 50%-50% partnership with Renaissance Shopping Malls
• The largest mixed use project in Izmir
Total Project Size – (Revenues, $ millions): 508
Tekfen Share : 50 %
Project Summary:
• Total Sellable/Leasable area :
Shopping Mall 30.000 sqm GLA, Home-Office Tower 10.000
sqm GLA and Residential Tower 25.000 sqm
• Est. Contruction period: Q4/2014 – Q4/2017
• Landmark project for the city of Izmir
Investment Rationale:
• Location within the new planned CBD of Izmir
• High accesibility and visibility through the main arteries
Izmir Mixed Use
62
Real Estate Development
Real Estate www.tekfen.com.tr Agri Industry Tekfen Group Other Contracting
Ongoing Projects
Transaction Overview:
• Being developed on 56.800 sqm land which is purchased on May 2013
• Construction permit granted on December 2013 for the project including aproximately 1.444 residential and retail units
Total Project Size – (Revenues, $ millions): 231
Tekfen Share : 100 %
Project Summary:
•Total Sellable Space:
Housing: 180.155 sqm, Retail: 2.595 sqm
• Construction Period- Start: Q2/2014 Complete: Q4/2016
Investment Rationale:
• Esenyurt property is in a sought-after area because of its developing transportation infrastructure, the city’s growth dynamics, and its situation on the intersection between the E5 highway and TEM motorway
• Esenyurt has great potential for the development having a predominantly middle-class area which is tha target segment.
Esenyurt Housing Project
63
Real Estate Development
Real Estate www.tekfen.com.tr Agri Industry Tekfen Group Other Contracting
• Facility Management of Tekfen Tower, Taksim
Residences, Tekfen Offices, Yalıkavak Tekfen Houses,
Gumusluk Muskulum Ciftligi, Kagithane Office Park,
Levent Office and S-Cafe are directed and operated by
Tekfen Tourism & Facility Management Co., Inc. under
the brand name of Tekfen Services.
• Facility Management for the ongoing and the potential
projects of Tekfen Real Estate Development Group is
planned to be operated by Tekfen Services.
• Tekfen Services’ professional facility management
improves the values of Real Estate Development Group
projects.
Tekfen Services - Facility Management
64
Real Estate Development
Real Estate www.tekfen.com.tr Agri Industry Tekfen Group Other Contracting
• 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, 25% is used by Group
Companies, while the rest is rented to various institutions.
•Total rental income from Tekfen Tower amounted to USD 11.4 million in
2013.
Assets
65
Real Estate Development
Real Estate www.tekfen.com.tr Agri Industry Tekfen Group Other Contracting
• The concept of “environmental friendly / sustainable building” is becoming more
and more important everyday as the awareness and consciousness for energy use
and environment increases. Tekfen Real Estate Group, as in its all other projects, is
aiming LEED-CS (core&shell) of The U.S. Green Building Association (USGBC) for
its new projects , Tekfen-OZ Kagithane OfisPark & Tekfen Bomonti Apartments.
• In accordance with this policy, Tekfen-OZ LeventOfis - completed in 2010 - is the
first project of the Group rewarded with LEED-CS Gold Certificate.
• The projects aim to achieve LEED certification by introducing sustainable solution
to design elements such as encouraging public transportation, collection and
reusing of storm water and grey water within the system, decreasing overall water
consumption, efficiency in energy consumption with shell design and decreasing
the load of the cooling system via plantation integrated within the facade system.
Social Responsibility
66
Other
Other
Other www.tekfen.com.tr Agri Industry Real Estate Tekfen Group Contracting
Tekfen Industry and Trade Co. Inc. operates in two main sectors:
Lighting and Chemical Products
Light bulb sector
• Wide product range
• Own “Tekfen” brand products are incandescent,
fluoresant, halogen lamps, starters and magnetic balasts,
also owned other brand “Tekfen Wiselite” products are
energy saving lamps, LEDs, metal halide, sodium vapor,
mercury vapor lamps and electronic balasts.
• Outsourced from China
• Due to increasing global demand for LED lamps, the
company increased its investments in this area in 2008.
Goal is to become one of the leading players in the LED
segment of the Turkish market.
Fentox brand household insecticide
• Product line that includes Fentox Stop, Super Fentox,
Water-based New Fentox, Fentox Likit and Fentox Mat,
also new products Fenkov Lotion and Fenkov Aerosol
were added to this portfolio.
Tekfen Industry
68
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Financial Highlights 70
Net Cash Position 71
Capital Expenditures 72
Disclaimer 73
Contact Info 74
Appendix
69
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
TRY Million
Revenues 2012 % in Total 2013 % in Total 2014E % in Total Contracting 2.395 61% 2.327 61% 2.548 60% Agri Industry 1.424 36% 1.423 37% 1.601 38%
Real Estate 61 2% 30 1% 27 1% Other 68 2% 67 2% 76 2%
Total 3.949 100% 3.846 100% 4.252 100% EBITDA 2012 Margin 2013 Margin 2014E Margin
Contracting 142 5,9% -100 -4,3% 205 8,1% Agri Industry 137 9,7% 117 8,3% 201 12,6%
Real Estate 0 -0,5% 0 -0,8% -9 -31,5% Other 2 2,5% -8 -11,9% -1 -1,3% Total 281 7,1% 10 0,3% 396 9,3%
Net Income 2012 Margin 2013 Margin 2014E Margin
Contracting 24 1,0% -217 -9,3% 68 2,7% Agri Industry 116 8,1% 63 4,4% 136 8,5% Real Estate 2 3,0% -1 -2,5% -7 -25,9%
Other 159* 232,7% 92 137,2% 46 60,5% Total 300* 7,6% -64 -1,7% 243 5,7%
Financial Highlights – Segmental Breakdown
70 *Sale of Eurobank Tekfen had an impact of around TRY129 million on the Net Income figure.
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
2011 2012 2013
193
-230
196
19
391
-290
147
11
767
-619
224
-99
688
Contracting Agri Industry Real Estate Other
2011 2012 2013
Tekfen Group
Net Cash Position
Tekfen Group Net Cash Position (TRY million) Net Cash Position by segment (TRY million)
71
376
635
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Tekfen Group
Capital Expenditures
133
43 5497
193 184
2008 2009 2010 2011 2012 2013
Million TRY
Contracting Agri Industry Real Estate Other Total
2008 88,5 17,3 15,8 11,8 133,4
2009 26,5 15,3 0,7 0,8 43,3
2010 30,0 10,2 0,2 13,5 53,9
2011 78,4 11,4 0,3 6,4 96,5
2012 142,6 49,9 0,3 0,4 193,3
2013 24,7 158,4 0,4 0,6 184,1
Capital Expenditures (Segmental Breakdown, Million TRY)
72
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
Tekfen Holding A.S. (the “Company”) has prepared this presentation (the “Presentation”) in
order to provide investors with general information about the Company. The contents of this
Presentation is based on public information and on data provided by the Company
management. Neither the Company nor any of its directors, managers or employees nor any
other person shall have any liability whatsoever for any loss arising from use of this
presentation. This Presentation does not constitute an offer or invitation to purchase the
securities of the Company. Investors and prospective investors interested in the securities of
the Company are required to conduct their own independent investigations and appraisal of
the business, financial condition of the Company and the nature of its securities. Except for
the historical information contained herein, the statements made in this Presentation with
respect to the Company’s plans, strategies, beliefs and other prospective matters are
forward-looking statements that involve risk and uncertainty that are not under the
Company’s control which may cause actual results to differ materially from those anticipated.
Except where otherwise indicated, this Presentation speaks as of the date hereof. We
undertake no duty to update or revise any forward looking statements, whether as a result of
new information, future events or otherwise.
Disclaimer
73
www.tekfen.com.tr
Tekfen Group
Tekfen Group Contracting Agri Industry Real Estate Other
• For General Questions and Requests for Reports:
Çağlar Gülveren, CFA - Investor Relations and Corporate Governance Coordinator
e-mail: [email protected]
Tel: +90 212 359 3420
• Contracting Group:
Fatih Bahçeci, Vice President, Projects Planning and Control
e-mail: [email protected]
Tel: +90 212 359 3583
• Agri-Industry Group:
Canan Senkut, Toros Tarım IR Chief
e-mail: [email protected]
Tel: +90 212 357 0202 (ext.381)
• Real-Estate Development Group:
Ayşe Turalı, Assistant General Manager
e-mail: [email protected]
Tel: +90 212 377 0700
Contact Information
74