Contracting - Tekfen Holding

Tekfen Holding Investor Presentation March 2014
Tekfen Group
At a glance
1956 Feyyaz Berker,
Nihat Gökyiğit and Necati
Akçağlılar formed an
engineering consulting
company
1971 Foundation of
Tekfen Holding
1981 Toros Fertilizer
starts production
2000 Tekfen Real Estate
Development Group
1975 Iraq-Turkey
pipeline
1987 TAG Highway
project
2001 Acquisition of Bank
Ekspres
1957 The three partners
establish Tekfen
Construction Ltd.
1976 Mis Süt (Dairy
products) enters the
market
1989 Tekfenbank
Acquisition of Akgübre
fertitilizer
2003 Tekfen Tower
opens
1963 Tekfen Industry and
Trading Co., Inc. is
founded to produce
incandescent lamps.
1978 Tekfen
Construction goes
overseas
1992 Tekfen
Philarmonics
2007 Partnership with
Eurobank EFG in
Tekfenbank
2012 Sale of Eurobank
Tekfen
Acquisition of EFG
Istanbul Securities
IPO of Tekfen Holding
2005 Acquisition of
Samsun Gübre fertilizer
plant
2006 Completion of BTC
crude oil pipeline
2
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Corporate Governance
Ownership structure
Share Classes
Single type of shares (one share one
vote)
Gökyiğit ;
21%
Free Float;
34%
Berker ; 21%
Others; 4%
Akçağlılar ;
19%
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
3
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
At a glance
Contracting
Agri Industry
Main Operations
• Construction
• Engineering
• Fabrication
Real Estate
Other
Main Operations
• Fertilizer production and
distribution
• Terminal services
• Seed, sapling and seedling
production and distribution
• Free zone operations
Main Operations
• Real Estate Development
• Construction & Marketing
of Real Estate Projects
• Facility Management
Main Companies
• Tekfen Construction
• Tekfen Engineering
• Tekfen Manufacturing &
Engineering
Main Companies
• Toros Agricultural Industry
& Trade
• Toros-Adana Yumurtalık
Free Zone
• Hishtil-Toros Seedling
Industry & Trade
• Black Sea Fertilizer Trade
Main Companies
•Tekfen Real Estate
Development
•Tekfen Tourism & Facility
Management
• Tekfen Real Estate
Investment
Share in consolidated
revenues*: 60,5%
Share in consolidated
revenues*: 37,0%
Share in consolidated
revenues*: 0,8%
Tekfen Industry
• Lighting and chemical
products
Tekfen Papfen
• Cotton yarn production
Tekfen Insurance
• Authorised agent of 18
insurance and 3 pension
fund companies
Share in consolidated
revenues*: 1,7%
4
* As of 31.12.2013
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Strategic focus
• Tekfen Holding is devoted to the motto “do what you know best in the best way
possible” which was determined by its founding shareholders. In this framework
Tekfen has focused on Contracting, Agri-industry / Terminal Services and Real-Estate
Development sectors.
• Contracting is an activity that Tekfen Holding operates in since its foundation and
has gained first class expertise. The potential demand for contracting activities of the
countries in Middle East, Caspian Region and North Africa which have been
developing and enriching in the recent years has played a key role in the
determination of this activity as a strategic focus.
•Agri-industry sector addresses to the most basic need of the mankind, namely
nutrition. Fertilizer, on the other hand, is an indispensable input for agri sector. Due to
the growing world population in addition to the alternative uses like bio-fuel
production, it is anticipated that demand for agricultural production and for fertilizers
will grow. As a result, this activity has a strategic focus for the Group.
5
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Strategic focus
• Terminal activities are undertaken in the framework of Agri-industry segment
comprising of two marine terminals strategically located in the Mediterranean and the
Black Sea regions.
• It is observed that in parallel to the development and enrichment of every country,
demand for modern, luxurious and high standard residential and commercial housing
increases. Hence, Real Estate Development is another strategic focus for Tekfen
Group.
• 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
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Vision / Mission
Our Vision
“To be one of the leading forces of Turkey’s growth in our areas of operations
namely, Contracting, Agri-Industry and Real-Estate Development.”
Our Mission
“While remaining commited to our traditional values, we aim to focus on our
core operations, deliver the highest quality products and services, become
the leader of our segments, and at the same time, generate value for all of our
stakeholders, namely, our customers, suppliers, employees, shareholders
and society.”
7
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Social Responsibility
• Tekfen Group believes that supporting social culture and environmental activities
are the natural extentions of its corporate structure. All the companies under the
Tekfen Group umbrella emphasize “usefulness”, “harmony” and “protection”
principles as a prerequisite for the activities in their own fields.
• Believing that supporting social development and improvement is everybody’s
common task Tekfen continues its efforts for this end for decades. These activities
which are the common values for all employees, from top executives to entry level
employees of the Group coincides with the philosophy which puts human and the
environment as the focal value.
• With the purpose of continuing its contribution to social and cultural activities,
Tekfen established Tekfen Foundation for Education Health, Culture, Arts, and
Protection of Natural Habitat in 1999. Supporting a variety of projects in the fields
of education, culture and art since its establishment, Tekfen Foundation obtained
status as an “institution that works for the benefit of society“ through the Cabinet’s
decision in 2004.
8
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Human resources
Number of employees
16.868
15.509
15.514
13.079
11.366
2008
Tekfen Holding has a dynamic and
professional workforce of over
15.000 employees.
17.532
2009
2010
2011
2012
2013
Number of employees (breakdown by segment)
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
9
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Contracting
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 85 among the world’s 225 biggest international contractors, based on
contracting revenue from projects outside home country, in a list published by
Engineering News-Record magazine in 2013.
• 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
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Selected Clients
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)
12
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Selected International Project Partners
• 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
13
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Overview
Overview
• With its sister companies Tekfen Engineering, Tekfen Manufacturing,
Hallesche Mitteldeutsche Bau-AG (HMB) (Germany), AZFEN (Azerbaijan) and
strategic partnerships, Tekfen is positioned to extend its services to a large
range of clients on three continents.
• The Group has one of the largest equipment fleets in Turkey with a
replacement value of US$ 350 million.
• As of 2013-end, Tekfen Contracting Group had an active portfolio of US$ 3
billion, 85% of which are abroad, located in 8 different countries.
• In 2013, the Group undertook US$ 1,893 million of new works. Of this total,
US$ 1,757 million is in Azerbaijan and US$ 136 million is in Turkey. Total
additions to the backlog reached US$2.2 billion including the extensions in
ongoing projects.
• The projects in Azerbaijan are:
-US$ 640 million Baku Olympic Stadium with 68k persons capacity.
The project is expected to be completed in March 2015.
- Fabrication, installation and delivery of 2 offshore platforms and
associated platform connection bridge . Tekfen portion of the project
is US$ 496 million.
PHOTO!
- Construction of Shah Deniz Stage 2 Onshore Terminal Facilities at
Sangachal . Tekfen portion of the project is US$ 621 million.
• The project in Turkey amounts to US$ 136 million and entails the repairing,
strengthening and improvement works of the Baku-Tbilisi-Ceyhan pipeline.
14
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Manpower
Total Manpower: 14.354
TURKEY:7.526
ABROAD:6.828
Morocco 467
Qatar 1.448
Abu Dhabi 23
Azerbaijan
3.845
Turkmenistan
463
Iraq 145
Uzbekistan 6
Libya 13
Saudi Arabia
383
Kazakhstan 35
15
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Manpower Structure
DISIPLINE&DIVISION
ENGINEERS
347
2,4%
MANAGEMENT
152
1,1%
PROCUREMENT
27
0,2%
ADMIN
421
2,9%
QA&QC/HSE
126
0,9%
TECHNICIANS
149
1,0%
FOREMEN
315
OPERATORS&DRIVERS
NATIONALITY
TURKISH
8.980
62,6%
AZERBEIJANI
2.997
20,9%
TURKMEN
705
4,9%
MOROCCAN
326
2,3%
2,2%
INDIAN
183
1,9%
869
6,1%
NEPALESE
277
1,9%
1.447
10,1%
PHILIPIN
79
0,6%
ETHIOPIAN
248
0,2%
612
4,3%
KAZAKH
30
0,2%
1.744
12,2%
IRAQI
32
0,2%
MECHANICAL WORKS
748
5,2%
OTHER
497
3,5%
STEEL&ERECTION WORKS
442
3,1%
TOTAL
14.354
100%
OTHERS
2.521
17,6%
SUBCONTRACTORS
4.434
30,9%
14.354
100%
CIVIL WORKS
ELECTRICAL WORKS
PIPE&WELDING WORKS
TOTAL
16
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Areas of Expertise
BASIC
ENGINEERING*
DETAILED
ENGINEERING
PROCUREMENT
FABRICATION
CONSTRUCTION
START UP
E
E+P
E+P+F
E+P+C
PMS
E : Engineering
P : Procurement
C : Construction
F : Fabrication
PMS : Project Management Services
* In pipelines, tank farms / terminals, motorways, bridges, tunnels, infrastructure and civil projects.
17
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Geography
• Tekfen Contracting Group continues its operations in 8 countries spread around 2 continents (Asia & Africa).
Among these, in 7 countries (Turkey, Azerbaijan, Qatar, Saudi Arabia, Turkmenistan, Morocco and Libya*)
Tekfen has construction sites. In Iraq, on the other hand, Tekfen gives project management services to BP.
• 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.
* As of the date of this presentation, the operations in Libya are frozen.
Tekfen Group
Contracting
Agri Industry
18
Real Estate
Other
www.tekfen.com.tr
Contracting
Backlog Growth
Backlog (US$ million)
Abroad
Turkey
2.998
1.694
744
685
726
535
175
569
201
484
242
484
167
368
2000
2001
2002
2003
1.740
1.461
1.830
1.333
1.259
1.257
1.535
1.350
1.668
264
237
159
111
72
75
1.225
34
2004
2005
2006
2007
2008
2009
501
2005
2.150
2.524
1.449
1.589
1.794
36
2010
555
2011
561
474
2012
2013
• Thanks to its increasing investments in oil and gas producing countries, starting from 2005, the
backlog of Tekfen Contracting Group abroad increased significantly.
19
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Backlog (as of 31 December 2013)
Project
Çiftehan-Pozantı Motorway
Prov. of P/L Repair Services/Geohazard Works/Main Oil Line Works/BP Iraq Works
Prov. of Pipeline and Facilities Repair Services for BTC Turkey
Tüpraş - Residuum Upgrading Project of Izmit Refinery
Toros Tarım Samsun Plant Investment Project
Supply and Fabrication of Steel Structure Type Pancakes
Supply and Fabrication of Pancakes of Top Sides Modules
TURKEY TOTAL
South Yoloten Gas Field Project Package 2&3A
TURKMENISTAN TOTAL
New Management Office Project of SOCAR
Fabrication of Topsides & Drilling Facilities and Integration of Living Quarters
Baku Olympic Stadium Project
Shah Deniz Stage 2 Fabrication of Offsite Facilities
Shah Deniz Stage 2 Onshore Terminal Facility - Sangachal Terminal
AZFEN Projects
AZERBAIJAN TOTAL
Propylene Oxide Process Unit
SAUDI ARABIA TOTAL
OCP Slurry Pipeline Project Khouribga - Jorf Lasfar
MOROCCO TOTAL
Qatar Primary Routes North Roads Contracts 2&3
Additional Work for North Road Project
QAPCO LDPE 3 Project Low Density Polyethylene Plant
Design and Construct Service Road Enhancement to North Road Corridor
QATAR TOTAL
Kufra Conveyance System
LIBYA TOTAL
Rumalia Field Dev. Project Prov. Of Engineering and Project Management Services
IRAQ TOTAL
TOTAL
Location
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Turkey
Expected End
Current
Dates *
Contract Price
Tekfen
Portion
15.10.2014
31.03.2014
10.09.2016
09.09.2014
31.12.2014
07.02.2014
08.12.2014
318.970.115
102.061.732
136.200.000
497.463.416
176.224.332
13.267.742
26.302.112
$
$
$
$
$
$
$
95,9%
98,5%
0,0%
69,9%
21,8%
0,0%
Turkmenistan
31.12.2013
315.493.170 $ 315.493.170 $
89,1%
Azerbaijan
Azerbaijan
Azerbaijan
Azerbaijan
Azerbaijan
Azerbaijan
30.09.2014
20.04.2014
28.02.2015
31.12.2017
15.10.2017
S. Arabia
348.145.408
206.799.725
717.792.893
262.365.978
369.395.209
1.761.574.939
$
$
$
$
$
$
$
225.352.386
102.061.732
136.200.000
497.463.416
176.224.332
13.267.742
26.302.112
Contracting
Agri Industry
0,0%
$ 348.145.408 $
$ 206.799.725 $
$ 717.792.893 $
$ 262.365.978 $
$ 369.395.209 $
$ 704.629.976 $
66,1%
98,6%
44,8%
0,0%
0,0%
27,7%
05.01.2015
149.826.676 $ 149.826.676 $
29,6%
Morocco
01.04.2014
433.867.013 $ 433.867.013 $
90,6%
Qatar
Qatar
Qatar
Qatar
30.09.2013
25.02.2014
30.06.2012
25.06.2016
792.756.364
95.991.781
166.348.917
592.030.028
$ 792.756.364 $
$ 95.991.781 $
$ 166.348.917 $
$ 592.030.028 $
96,4%
78,9%
98,2%
15,6%
Libya
On Hold
486.461.084 $ 325.928.926 $
70,0%
Iraq
30.06.2014
213.130.573 $ 213.130.573 $
83,1%
* “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.
Tekfen Group
Revenue
Based
Completion
Rate
Real Estate
Remaining
Amount (US$)
9.277.222
1.547.057
136.200.000
149.684.562
137.765.254
13.267.742
26.302.112
474.043.949
34.404.721
34.404.721
118.051.105
2.846.167
396.318.251
262.365.978
369.395.209
509.108.606
1.658.085.316
105.416.366
105.416.366
40.701.625
40.701.625
28.724.060
20.269.877
3.067.922
499.758.064
551.819.923
97.898.859
97.898.859
35.917.805
35.917.805
2.998.288.564
20
Other
www.tekfen.com.tr
Contracting
Ongoing projects (as of 31 December 2013)
Backlog Breakdown by Regions
Backlog Breakdown by Project Types
North
Africa
5%
Middle
East
23%
Caspian
Region
56%
Industrial
Facilities
54%
Buildings
17%
Turkey
16%
Fabrication
Works 1%
Pipelines
9%
Region
US$ (million)
Caspian Region
1.692
Project Type
Motorways
19%
US$ (million)
Industrial Facilities
1.610
Middle East
693
Motorway
558
Turkey
476
Buildings
514
North Africa
139
Pipeline
276
Total
2.998
Fabrication Works
40
Total
2.998
21
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
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 1525%.
• 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
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Engineering
Tekfen Engineering Co., Inc.
• 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.
• 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
23
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Tekfen Manufacturing Co., Inc.
• Founded in 1970.
• Specialized mainly in engineering, manufacturing and construction of high
quality process and storage equipment related to petroleum, petrochemical,
chemical and fertilizer industries and power plants, such as cylindrical and
spherical storage tanks, heat exchangers, pressure vessels, process columns,
waste heat recovery boilers and pressurized piping for industrial plants to
respond to Tekfen’s increasing steel production and fabrication needs.
• 188 skilled manpower.
• Design and fabrication are carried out according to International
Codes such as ASME, API, TEMA, AD-2000, EN 13445, BS etc. and the
company is qualified to work with all sorts of carbon steel materials
(including high tensile quenched and tempered), clad carbon steels, all
types of stainless steels, non-ferrous materials such as Monel, Brass,
Aluminum etc.
•Heavy manufacturing facility in Derince (Kocaeli), Turkey.
• Kuwait, Saudi Arabia, Iraq, Iran, Pakistan, Libya, Syria, Jordan, Oman,
Lebanon, Israel, Northern Cyprus, Morocco, Tunisia, Senegal, Sudan,
Russia, Kazakhstan, Turkmenistan and Azerbaijan are the countries that
the company exports.
• Spread on an area of 48,500 m2, of which 18,000 m2 is covered.
24
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Fabrication Plants
Ceyhan Steel Structure Fabrication Plant
• 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
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.
25
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Revenues and EBITDA Margin
Revenues (MTRY) and EBITDA Margin (%)
Revenue
EBITDA Margin
3.000
19,0%
2.395
2.500
13,2%
2.000
1.339
1.319
1.029
1.000
1.111
8,3%
2.445
14,0%
1.864
11,0%
1.500
2.327
9,3%
9,0%
6,8%
7,2%
5,9%
4,0%
500
0
2007
2008
2009
2010
2011
2012
2013
2014E
-1,0%
-500
-4,3%
-1.000
-6,0%
• Expected project-end EBITDA margin on project basis varies from 10% to 25% at the beginning of
each project.
26
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Ongoing projects – Caspian Region
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.
AZERBAIJAN – COP-WC-PDQ (Chirag Oil Project - West Chirag –PDQ)
FABRICATION OF TOPSIDES, DRILLING FACILITIES AND THE INTEGRATION OF
LIVING QUARTERS
COP-WC-PDQ is a single integrated deck comprising a production platform, drilling
module, utilities and living quarters located 120 km South East of Baku, in water
depths of 170 meters within the 432 km² “Azeri - Chirag – Guneshli” Oil Field.
The onshore work scope covers fabrication, assembly, erection, testing,
mechanical completion, commissioning, weighing, jacking, onshore completion
and load-out of integrated deck.
The offshore work scope covers offshore hook up and commissioning assistance
works.
The project was undertaken in partnership with Azfen and AMEC.
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
27
www.tekfen.com.tr
Contracting
Tekfen Group
Contracting
COP-WC-PDQ Fabrication of Topsides, Drilling Facilities and
Living Quarters, Bayil, Azerbaijan
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Ongoing projects – Caspian Region
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.
29
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Ongoing projects – Caspian Region
Shah Deniz Stage 2 Project Overall Scope
30
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Ongoing projects – Caspian Region
Shah Deniz Stage 2
Tekfen Projects
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.
31
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Ongoing projects – Caspian Region
TURKMENISTAN – SOUTH YOLOTEN GAS FIELD DEVELOPMENT PROJECT
UTILITIES & OFF SITE - CROSS COUNTRY SALES GAS EXPORT PIPELINE
101 KM
The South Yoloten Gas Field Development is situated in the region of
Maryiskiy Welayat of Yoloteniskiy Etrap, 20 km to the South of Yoloten, in
the area of the 74th km of the trunk railway Mary – Serhetabad. The overall
gas development project targets upstream and treatment and downstream
works of 40 billion cubic meters natural gas annually.
Out of this 40 billion cubic meters, the EPC works for 10 billion cubic
meters including upstream works, flow lines, trunk lines, GTUs, central gas
processing facility and 56” gas export pipeline are under the scope of
Petrofac UIL. Accordingly, Tekfen has been awarded for the "utilities and
offsites" works of the Central Gas Processing facility including civil,
mechanical, electrical and instrumentation works and the installation of the
100 km long 56" cross-country export sales gas pipeline together with
assistance to commissioning works after the mechanical completion of the
aforementioned
The works are scheduled to be completed in 30 months.
32
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Galkynysh Gas Field Development Project
Contracting
Turkmenistan
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Ongoing projects - Middle East
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
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
34
www.tekfen.com.tr
North Road
Qatar
Contracting
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Ongoing projects - Middle East
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.
36
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Ongoing projects – North Africa
MOROCCO – OCP SLURRY PIPELINE PROJECT
OCP Slurry Pipeline project has been designed to deliver several grades of
phosphates to Jorf Lasfar Terminal. Project location is between Khouribga and
Jorf Lasfar. Project duration is 28 months.
The project scope includes Detail Engineering, Procurement, and Construction
(EPC) services to supply, install, and commission the facilities including all
associated works .
Project consists of approximately 240 km of pipelines including the feeder lines,
Doui Pump station, MEA Head Station, Halasaa pump station and Jorf Terminal.
Feeder pipelines from each wash plant pump station will deliver sequential batches
of each grade to segregated tanks at the head station at MEA. From the head
station sequential phosphate batches will be pumped through the main pipeline
into storage tanks at the terminal. One slurry grade will be supplied to the local acid
plants and all slurry grades will be supplied for export purposes.
37
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Phosphate Slurry Pipeline Project
Morocco
Contracting
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Ongoing projects – North Africa
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.
39
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Tekfen Group
Contracting
Kufra Conveyance System
Libya
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Ongoing projects – Turkey
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.
41
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Contracting
Strategic Direction
Tekfen Contracting Group consistently works on the following in line with the goals of its
Strategic Plan:
• Existing and new projects will be undertaken within the framework of the adopted business
principles and occupational health, safety and environment (HSE) policies. Maximizing work
quality and maintaining accident-free operations in line with occupational safety standards
are the main priorities.
• The company will continue to focus on projects that emphasize the EPC concept and it will
continue to improve its competency in this area. Engineering and procurement functions will
be key areas to be improved. To achieve this, required personnel recruitments are done both
in our engineering company and in procurement departments.
• The emphasis will be on increasing business volume in countries where operations
continue. The goal is to secure new projects that at least maintain the current level of
revenue generated from projects in these countries.
• Addition of new subcontractors to our existing subcontractor portfolio and increasing the
share of South East Asia origined personnel in our total work force are considered as
strategy implementations.
• Activities geared towards increasing efficiency and profitability will continue.
• All requirements to preserve Tekfen’s strong and prestigious brand image in existing
markets will be met.
42
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Agri Industry
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Overview
The pioneer in Turkey’s agricultural industry
• 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
44
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Overview
•
Active in fertilizer, seed, seedling and sapling production and distribution, as well as marine
terminal services and free zone operations
•
Consolidated turnover of TRY 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
1.424
1.209
883
5%
5%
6%
6%
5%
6%
6%
13%
6%
191
Seed, Seedling and
Others
Terminal Services
81%
88%
89%
90%
90%
Fertilizers
147
Million TRY
Million TRY
1.026
5%
5%
1.423
13%
137
6%
9%
21%
19%
Seed, Seedling and
Others
Terminal Services
117
7%
25%
Fertilizers
43
73%
2010
81%
72%
68%
2011
2012
2013
21%
2009
2010
2011
2012
64%
15%
2009
2013
45
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
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
46
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Regional Offices & Other Units
İSTANBUL
Head Office
TEKİRDAĞ
REGIONAL OFFICE
Warehouse
ANKARA
REGIONAL OFFICE
Warehouse
SAMSUN
REGIONAL OFFICE
Warehouse
ŞANLIURFA
REGIONAL OFFICE
Warehouse
İZMİR
REGIONAL OFFICE
Warehouse
Grain Silos
Seed Processing
ANTALYA
REGIONAL OFFICE
Seedling Nurseries
Warehouse
ADANA & CEYHAN
REGIONAL OFFICE
Bag Manufacturing Plant
Free Zone
Micropropagation
Warehouse
Grain Silos
Seed Processing
KONYA
Warehouse
47
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Fertilizers – Product Types
• 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
• 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
48
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Fertilizers – Sales
2012 Total Sales: 1.63 million tons
2013 Total Sales: 1.64 million tons
AS 3% Other 0,2%
Urea 4%
AS 3% Other 0,3%
Urea 7%
DAP 9%
NP/NPK
(Compound)
41%
DAP 10%
NP/NPK
(Compound)
42%
AN33 21%
AN33 21%
AN26 21%
AN26 17%
49
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Fertilizers – Leader in Turkish Fertilizer Market
Turkey’s Total Production and Toros’ Production
Consumption and Toros Sales Volume/Marketshare
30%
35%
31%
30%
1,000 tons
6.000
35%
28%
30%
5.000
25%
4.000
20%
3.000
15%
2.000
10%
1.000
5%
0
1,000 tons
7.000
0%
2009
Consumption
2010
2011
2012
Toros Sales
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
39%
37%
39%
40%
30%
20%
10%
0%
2013
2009
Marketshare
50%
42%
39%
2010
Total Production
2011
2012
Toros Production
2013
Toros Share
Turkey’s Total Imports and Toros’ Imports
3.500
19%
20%
1,000 tons
3.000
15%
2.500
10%
2.000
10%
8%
6%
1.500
1.000
10%
5%
500
0
0%
2009
2010
Total Imports
Tekfen Group
Contracting
Agri Industry
2011
Toros Imports
2012
2013
Toros Share
Real Estate
50
Other
www.tekfen.com.tr
Agri Industry
Fertilizers – Production Facilities
• Three fertilizer plants located in Mersin, Ceyhan and Samsun
• Total installed capacity is 2 million tpa of which 1,85 million tpa is in operation
• Leading producer with 38% share in Turkey’s total installed production capacity (SPO*)
SAMSUN PLANT
MERSIN PLANT
CEYHAN PLANT
* SPO:State Planning Organization
Tekfen Group
Contracting
51
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Fertilizers – Production Capacity
MERSIN PLANT
CEYHAN PLANT
SAMSUN PLANT
AN and CAN production
NPK and DAP production
NPK and DAP production
CAPACITY
660,000 tpa CAN
CAPACITY
2 x 330,000 tpa NPK
or
330,000 tpa NPK & 200,000 tpa DAP
CAPACITY
300,000 tpa NPK
227,000 tpa DAP
NITRIC ACID CAPACITY
405,000 tpa
PHOSPHORIC ACID CAPACITY
PLANT I = 80,000 tpa (100% P2O5)
PLANT II = 108,000 tpa (100% P2O5)
52
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Turkish Fertilizer Industry
Breakdown of Domestic Production Capacities*
Yıldız
4%
Toros
38%
Ege
6%
Gemlik
8%
• 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
Bagfaş
12%
Gübretaş
17%
İgsaş
15%
• 7 fertilizer producers with a total
annual production capacity of 5.3
million tpa in 10 plants (SPO*)
* SPO:State Planning Organization
Tekfen Group
Contracting
53
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Fertilizers – CAN/AN Production Diagram
In Mersin Plant, Toros produces nitric acid for its CAN/AN unit.
AMMONIA
AMMONIUM
NITRATE
AMMONIUM
NITRATE
CALCIUM
AMMONIUM
NITRATE
AIR
NITRIC ACID
WATER
LIME
STONE
54
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
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Agri Industry
Fertilizers – DAP/NP/NPK Production Diagram
• 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.
AMMONIA
SULPHURIC
ACID
PHOSPHORIC
ACID
DAP/NP/NPK
UREA/AS*
PHOSPHATE
ROCK
POTASH**
*Either Urea or AS is added as nitrogen (N) source in addition to ammonia.
**Potash is added as potassium (K) source for NPKs.
Tekfen Group
Contracting
Agri Industry
Real Estate
55
Other
www.tekfen.com.tr
Agri Industry
Fertilizers – Raw Materials
Raw Materials Used in 2013 (1.48 million tons)
•
•
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
Potassium
Chloride 2%
Limestone 6%
Ammonia 21%
Ammonium
Sulphate 10%
Urea 7%
Phosphoric Acid
6%
Sulphuric Acid
22%
Phosphate
Rock 26%
56
Tekfen Group
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Agri Industry
Fertilizers – Production and Imports
Production - Breakdown by Products
48%
47%
46%
47%
43%
Compound
(NP/NPK)
28%
25%
23%
17%
12%
18%
16%
13%
21% 21%
11%
23%
19%
11%
AN26 (CAN)
11%
AN33
DAP
2009; 1.11 mn
tons
2010; 1.45 mn
tons
2011; 1.39 mn
tons
2012; 1.42 mn
tons
2013; 1.41 mn
tons
51%
50%
Imports - Breakdown by Products
57%
42%
38%
37%
34%
16%
12%
36%
30%
AN33
17%
12%
4%
AS
15%
11%
1%
Urea
33%
2%
Other
2%
2009; 562K tons 2010; 237K tons 2011; 219K tons 2012; 171K tons 2013; 189K tons
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
57
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Agri Industry
Marine Terminal Services
TOROS has two marine terminals offering loading/unloading and storage services to third parties
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
58
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Complementary Products and Services
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
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)
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
59
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Complementary Products and Services
Micropropagation:
•
Targets to meet the sector's demand for high quality,
high yield and disease-free homogenous seed,
saplings and young plants
•
First local successful producer of potato seeds on
commercial scale by using micropropagation
techniques in Turkey
•
Serving to a market which is historically dominated
by imported potato seeds
Free zone operations:
•
Founding partner and operator of the largest free
zone in Turkey
•
4.5 million m2 of area
•
Strategically located in Ceyhan region which is
becoming the energy hub for Turkey
60
Tekfen Group
Contracting
Agri Industry
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Other
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Agri Industry
Environmentally Conscious Production
MERSIN PLANT

Catalytic reduction system
to keep NOX emission in
exhaust gases released to
atmosphere from nitric acid
unit under 200 ppm
CEYHAN PLANT



ISO 14001:2004 Environment
Management
ISO 9001:2000 Quality
Management
OHSAS 18001:1999 Occupational
Health and Safety Management
SAMSUN PLANT

Emission Certificate
61
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Agri Industry
Social Responsibility
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
62
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Real Estate
Tekfen Real Estate Development Group
Real Estate Development
Business Structure
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
Tekfen Real Estate Investment Co.,Inc
Business Line : Investment, development
64
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Real Estate Development
Projects
Project
Project
Function
Start Date of
Project
End Date of
Project
Izmir Project
Mixed Use
Jan.13
Dec.16
Esenyurt Project
Residential
May.13
Jun.16
Estimated Revenue*
(million $)
Total/Tekfen Share
508/254
Estimated Cost**
(million $)
Total/Tekfen Share
230/115
Izmir Project Details:
*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.
Gross Leasable/ Sellable Area
(m²)
50.000
20.000
60.000
130.000
Project Total ***
Residence
Office
Shopping Mall
Total
Total Construction Area (m²)
80.000
35.000
120.000
235.000
*** Tekfen share is 50%.
65
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Real Estate Development
Ongoing Projects
Izmir Mixed Use
Transaction Overview:
• 50%-50% partnership with Renaissance Shopping Malls
• The largest mixed use project in Izmir
Total Project Size – (Revenues, $ 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: Q2/2014 – Q4/2016
• Landmark project for the city of Izmir
Investment Rationale:
• Location within the new planned CBD of Izmir
• High accesibility and visibility through the main arteries
66
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Real Estate Development
Ongoing Projects
Esenyurt Housing Project
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 1.400 residential and retail
units
Total Project Size – (Revenues, $ millions): 231
Tekfen Share : 100 %
Project Summary:
•Total Sellable Space:
Housing: 170.000 sqm, Retail: 3.000 sqm
• Construction Period- Start: Q2/2014 Complete: Q2/2016
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.
67
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Real Estate Development
Tekfen Services - Facility Management
• Facility Management of Tekfen Tower, Taksim
Residences, Tekfen Offices, Yalıkavak Tekfen Houses,
Gumusluk Muskulum Ciftligi, Kagithane Office Park,
Levent Office and S-Cafe are directed and operated by
Tekfen Tourism & Facility Management Co., Inc. under
the brand name of Tekfen Services.
• Facility Management for the ongoing and the potential
projects of Tekfen Real Estate Development Group is
planned to be operated by Tekfen Services.
• Tekfen Services’ professional facility management
improves the values of Real Estate Development Group
projects.
68
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Real Estate Development
Assets
• Tekfen Holding earns rental income from the offices it owns in Akmerkez
and Tekfen Tower.
• Tekfen Tower has 33.000 m² rentable area, of which, 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 as of
December, 2013.
69
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Real Estate Development
Social Responsibility
• The concept of “environmental friendly / sustainable building” is becoming more
and more important everyday as the awareness and consciousness for energy use
and environment increases. Tekfen Real Estate Group, as in its all other projects, is
aiming LEED-CS (core&shell) of The U.S. Green Building Association (USGBC) for
its new projects , Tekfen-OZ Kagithane OfisPark & Tekfen Bomonti Apartments.
• In accordance with this policy, Tekfen-OZ LeventOfis - completed in 2010 - is the
first project of the Group rewarded with LEED-CS Gold Certificate.
• The projects aim to achieve LEED certification by introducing sustainable solution
to design elements such as encouraging public transportation, collection and
reusing of storm water and grey water within the system, decreasing overall water
consumption, efficiency in energy consumption with shell design and decreasing
the load of the cooling system via plantation integrated within the facade system.
70
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Other
Other
Tekfen Industry
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.

Match production
• Manufacturing in India.
Tekfen Group
Contracting
72
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Appendix
Financial Highlights
Net Cash Position
Capital Expenditures
Disclaimer
Contact Info
74
75
76
77
78
73
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Financial Highlights – Segmental Breakdown
TRY Million
Revenues
Contracting
Agri Industry
Real Estate
Other
Total
2012 % in Total 2013 % in Total
2.395
61% 2.327
61%
1.424
36% 1.423
37%
61
2%
30
1%
68
2%
67
2%
3.949
100% 3.846
100%
2014E % in Total
2.445
61%
1.408
35%
54
1%
84
2%
3.991
100%
EBITDA
Contracting
Agri Industry
Real Estate
Other
Total
2012
142
137
0
2
281
Margin
5,9%
9,7%
-0,5%
2,5%
7,1%
2013
-100
117
0
-8
10
Margin
-4,3%
8,3%
-0,8%
-11,9%
0,3%
2014E
167
111
-7
1
272
Margin
6,8%
7,9%
-13,0%
1,2%
6,8%
Net Income
Contracting
Agri Industry
Real Estate
Other
Total
2012
24
116
2
159*
300*
Margin
1,0%
8,1%
3,0%
232,7%
7,6%
2013
-217
63
-1
92
-64
Margin
-9,3%
4,4%
-2,5%
137,2%
-1,7%
2014E
37
80
-6
40
151
Margin
1,5%
5,7%
-11,1%
47,6%
3,8%
*Sale of Eurobank Tekfen had an impact of around TRY129 million on the Net Income figure.
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
74
www.tekfen.com.tr
Tekfen Group
Net Cash Position
Tekfen Group Net Cash Position (TRY million)
Net Cash Position by segment (TRY million)
2011
635
2012
2013
688
391
376
196224
19
193
Contracting
-230
2011
2012
2013
Agri Industry
Real Estate
-99
Other
-619
75
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Capital Expenditures
Million TRY
193
184
2012
2013
133
97
2008
43
54
2009
2010
2011
Capital Expenditures (Segmental Breakdown, 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
76
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Disclaimer
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.
77
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr
Tekfen Group
Contact Information
• For General Questions and Requests for Reports:
Çağlar Gülveren, CFA
Investor Relations and Corporate Governance Coordinator
e-mail: cgulveren@tekfen.com.tr
Tel: +90 212 359 3420
• Contracting Group:
Fatih Bahçeci, Head of Projects Planning and Control
e-mail: fbahceci@tekfen.com.tr
Tel: +90 212 359 3583
• Agri-Industry Group:
Canan Senkut, Toros Tarım IR Chief
e-mail: canan.senkut@toros.com.tr
Tel: +90 212 357 0202 (ext.381)
• Real-Estate Development Group:
Ayşe Turalı, Assistant General Manager
e-mail: aturali@tekfenemlak.com
Tel: +90 212 377 0700
78
Tekfen Group
Contracting
Agri Industry
Real Estate
Other
www.tekfen.com.tr