ENGINEERING FOR A BETTER FUTURE · 790 MW Rijnmond Natural Gas Fired CCPP has been completed in 22...

ENGINEERING FOR A BETTER FUTURE

Phone : +90 (212) 376 10 00 (pbx) Fax : +90 (212) 272 88 69Web: www.enka.com E-mail: [email protected]

Address:Balmumcu Mah., Zincirlikuyu Yolu No: 10Besiktas, Istanbul, Turkey 34349 2 of 41

EXPERIENCE63 Years of construction experience worldwide

RELIABILITY538 projects in 46 countries have beencompleted or under construction withhistorical value of USD 50 Billion

DIVERSIFICATIONWith a solid background of 63 years ENKA operates in 4 main segments:

Engineering & ConstructionEnergyReal EstateTrade

SYNERGYGroup of companies composed of morethan 50 subsidiaries operating in 7 majorgeographical areas:

CIS, Asia, Middle East, Europe, America, Africa & Turkey

EVALUATIONTraded publicly onBorsa Istanbul (BIST)with a market cap ofUSD 5,0 Billion (@ 30.06.2020)

Introduction



Milestones [1957-1976]

Founded Focused on The Partnership

First International First Power Plant

as a limited liability partnership as Şarık Tara &Sadi Gülçelik Enka Limited Şirketi

design, engineering and construction activities of industrial plants, buildings and infrastructure

was transformed into a joint stock company asENKA İnşaat ve Sanayi A.Ş.

Contract Benghazi Cement Factory and then 4 more cement factory projects in Libya

150 MW Tunçbilek Thermal Power Plant in Turkey

Diversification of activities and specialized subsidiary companies



Foundation First Natural Gas Outstanding

Real Estate Oil Fields

ENKA Sports, education and culture foundation and Sadi Gülçelik sports center establishments

combined cycle power plant in Turkey 600 MW Trakya CCCP

achievements with fast-track projects in Libya, Russia and Former Soviet Union Countries as well as in Turkey as a general contractor

Establishment of development companies in Moscow, Russia

Primary oil services contracts in Kazakhstan oil fields




Retail Business Power Generation Certified

Turkey BOO US Embassies

Development of shopping malls and retail business in Moscow, Russia

Power Generationas Independent Power Producer (IPP)

by BSI for ISO 9001 Quality Management System & ISO 14001 Environmental Management System & OHSAS 18001 Occupational Health and Safety Management System

Projects have been accomplished by the ENKA BECHTEL JOINT VENTURE

New US Embassy projects started in West African countries: Cameroon, Guinea, Mali and Sierra Leone




Gas Fired CCPP EPC in Russia Airport

World Record Continent America

790 MW Rijnmond Natural Gas Fired CCPP has been completed in 22 months by the ENKA Bechtel Joint Venture in the Netherlands

ENKA as a main contractor has been awarded 400 MW YajvaState District Power Plant EPC Project in Russia

Completion of Sheremetyevo Airport Terminal 3 in Moscow, Russia

ENKA set a new world record for power plant availability (with 99.8% which is 7% over the industry average) over the 12-month period with GE 9 FA gas turbines

First contract awarded in Continent America – new US Embassy Compound in Santa Domingo, Dominican Republic




Iraq Re-Entry Northern Iraq Oil & Gas

Izmit Bay Crossing Combined Cycle

ENKA’s re-entry into Iraq oil & gas market by winning the contract for mechanical, electrical and instrumentation works of early production facility in Majnoon Oil Field

First contract awarded in Northern Iraq after two decades

Erbil Combined Cycle Power Plant Conversion Project

Al-Najybia 500 MW gas turbine power plant and Rumaila Crude Oil Pumping Station Projects have been awarded

Steel Works Contract of IzmitBay Crossing Suspension Bridge Project has been awarded

Sulaymaniyah and Duhokcombined cycle plant conversion projects have been awarded




Caucasus Pipeline Kosovo Power Plants

Global Partners Hydroelectric

A contract related to South Caucasus Pipeline Expansion (SCPX) has been awarded to Bechtel-ENKA JV

After successfully completing the Route 7 Motorway Project, the new phase; Route 6 has also been awarded to Bechtel-ENKA JV in Kosovo

EPC contracts awarded;Simple Cycle Power Plant Project at Bazyan, Sulaymaniyah 1,500 MW Combined Cycle Power Plant Project at Besmaya

ENKA with its partner General Electric, will design and build the Samawa and Dhi Qar Combined Cycle Power Plants, which will add 750 MW each to Iraq

ENKA together with Clean Energy Group of Norway won the bid for the Namakhvani Project in Georgia, a Hydroelectric Power Plant with a total capacity of 433 MW under build-own-operate model




Our Missionto design, build and deliver safe, high-quality and cost-effective constructionprojects on schedule for our customerswhile providing quality employmentand career growth opportunities forENKA employees.

Our Visionto be one of the best and innovative engineering & construction companies serving globally.

Our Valuesdefine how we do work at ENKA. Wewill not undertake or execute aproject which comprises any of thesevalues. We believe that when wecommit to work within ENKA’s values,we achieve superior work in ourindustry.

ValuesVisionMission

Mission, Vision and Values



Tara Family51,04%

Gülçelik Family31,41%

ENKA Treasury Stock1,98%Shareholder Structure

As of 27 March 2020

ENKA Foundation5,87%

Free Float9,70%



TOTAL ASSETS

TOTAL EQUITY

CASH & MARKETABLE SECURITIES

REVENUE

EBITDA

EBITDA MARGIN

NET PROFIT

NET MARGIN

8.318

6.568

3.960

1.893

436

23,1%

686

36,2%

2019

7.796

6.103

3.252

2.881

757

26,3%

328

11,4%

2018

8.031

6.207

3.479

2.900

745

25,7%

705

24,3%

2017

7.587

5.667

3.194

3.506

732

20,9%

589

16,8%

2016

All figures given above are in Million US Dollars

Consolidated Financial Highlights

8.149

6.410

4.053

858

228

26,6%

260

30,3%

2Q 2020



CONSTRUCTION

POWER GENERATION

REAL ESTATE

TRADE

ELIMINATION

TOTAL

2017

USD %

(185) (6,4)

1.195 41,2

1.337 46,1

319 11,0

234 8,1

USD %

(98) (3,4)

1.011 35,1

1.474 51,2

329 11,4

165 5,7

2016

USD %

(94) (2,7)

1.453 41,5

1.582 45,1

319 9,1

246 7,0

2.900 1002.881 100 3.506 100

2018


Revenues by Business Lines

USD %

(43) (2,3)

1.147 60,6

324 17,1

346 18,3

119 6,3

1.893 100

2019

USD %

(15) (1,7)

673 78,4

0 0,0

147 17,1

53 6,2

858 100

2Q 2020



CONSTRUCTION

POWER GENERATION

REAL ESTATE

TRADE

ELIMINATION

2018

TOTAL

USD % MRG

1 0

757 100

209 28 21

326 43 22

204 27 62

17 2 10

2017

USD % MRG

0 0

745 100

212 28 18

312 42 23

193 26 61

28 4 12


EBITDA by Business Lines

2019

USD % MRG

3 1

436 100

142 33 12

68 16 21

213 49 62

10 2 8

2Q 2020

USD % MRG

0 0

228 100

138 60 20

(12) (5) -

98 43 67

4 2 7



All Figures given above are in Million Turkish Liras

Share Capital Increases (Shares Dividend-Bonus Issue)

DATE PREVIOUS SHARE CAPITAL INCREASE INCREASE (%) INCREASED SHARE

CAPITAL

25.05.2012 2.500 300 12,00 2.800

12.06.2013 2.800 400 14,29 3.200

21.05.2014 3.200 400 12,50 3.600

06.05.2015 3.600 400 11,11 4.000

23.05.2016 4.000 200 5,00 4.200

27.04.2017 4.200 400 9,52 4.600

24.05.2018 4.600 400 8,70 5.000

27.05.2020 5.000 600 12,00 5.600



Dividend Payments

YEAR DATE GROSS RATECASH DIVIDEND D.P.F.S.*

TL USDNET RATE

TL USD

28.09.201614.12.201619.04.2017

3,33%3,33%

12,00%

2,83%2,83%10,81%

140 47,1140 40,3504 136,8

0 00 0

29,4 7,97

2016

784 224,2 29,4 7,972016 TOTAL

27.09.201713.12.201717.04.2018

3,59%4,00%12,00%

3,05%3,40%10,91%

165 46,2184 48,0552 134,8

0 00 0

32,3 7,89901 229,0 32,3 7,892017 TOTAL

2017

* Dividend paid to Founder Shares

12.12.201817.04.2019

4,00%15,00%

3,40%13,67%

200 37,3750 129,6

0 034,2 5,89

2018

950 166,9 34,2 5,892018 TOTAL

2016

2019 TOTAL

13.11.201914.04.2020

14,00%18,00%

11,90%16,41%

700 121,4900 133,1

0 040,5 5,99

2019

1,600 254,5 40,5 5,99



Share Buy BackDecision Taken Share Amount to be

Bought Number of Total Shares Percentage

July 2016 8,4 million 4,2 billion 0,20%July 2017 4,6 million 4,6 billion 0,10%August 2017 4,6 million 4,6 billion 0,10%January 2018 4,6 million 4,6 billion 0,10%May 2018 4,6 million 4,6 billion 0,10%June 2018 5 million 5 billion 0,10%July 2018 5 million 5 billion 0,10%August 2018 10 million 5 billion 0,20%January 2019 10 million 5 billion 0,20%September 2019 10 million 5 billion 0,20%October 2019 20 million 5 billion 0,40%February 2020 10 million 5 billion 0,20%

TOTAL COMPLETED 2,00%

New Decision Taken Share Amount to be Bought Number of Total Shares Percentage

August 2020 28 million 5,6 billion 0,50%



Work Force

ENKA Abroad

ENKA TURKEY

SUBSIDIARIES TURKEY

SUBSIDIARIES ABROAD

ENKA ABROADTechnical : 711Administrative : 368Workers : 15.148Total : 16.227

Technical : 26Administrative : 10Workers : 555Total : 591

Technical : 847Administrative : 453Workers : 1.727Total : 3.011

Technical : 387Administrative : 99Workers : 86Total : 572

Grand Total : 20.401



Awards & Achievements

POWER

INSURANCE

KOSOVOENKA’s Kosovo Motorway EPC Project(sections 1, 2, 3 & 4a) has beenawarded “The Best Project in theRoads/Highways Category” in 2013Global Best Projects Competition ofENR (Engineering News-Record)

KUNTSEVO

ADMIRED COMPANYENKA’s 411 MW CCPP Yajva StateDistrict Power Plant EPC Project hasbeen awarded “the Best Project in thePower/Industrial Category” in 2013Global Best Projects Competition ofNR (Engineering News-Record)

YAJVA

ENKA’s cityscape awards for emergingmarkets - 2012 category : RetailProject" award to ENKA TC for itsKuntsevo Multifunctional Trade andBusiness Center in Moscow

"Most Admired ConstructionCompany of Turkey awards" for theyears 2005 - 2012 by CAPITAL, abusiness and economics magazine

In 2011, ENKA’s Adapazarı PowerPlant has been selected as thePower Plant of the Year with anavailability of 99.8% by the POWERMAGAZINE

In 2011, ENKA’s insurer FactoryMutual Global (FM), awarded allthree ENKA power plants thestatus of highly protected risk inrecognition of ENKA’s commitmentto the reduction of potential lossesthrough a stringent programme ofrisk mitigation and prevention.



Awards & Achievements

GLOBAL

INNOVATIONThe most prestigious and innovativeleisure, shopping, business andresidential complex of Moscow, washonored with the Best ShoppingCenter 2015 award given by RussianCouncil of Shopping Centers (RCSC)to Kuntsevo Plaza.

Turkish Power Company ENKA POWERhas world class risk managementarticle which praises ENKA'scommitments and achievements inprotecting the power plant assetspublished in UTILITY WEEK MAGAZINEon 28 January 2011 edition.

RISK MANAGEMENT

ENKA’s EPC Project, Sulaymaniyah1.500 MW Combined Cycle PowerPlant Project was selected as the“Global Project of the Year 2017”,as well as the “Best Global Projectin Power/Industrial Category”, byENR.

DEVELOPMENTKuntsevo Plaza, has been awarded inthree categories of the prestigiousawards in 2016: Best RetailArchitecture Russia, Best RetailDevelopment (5 Stars) Russia and BestRetail Development Europe.



Engineering & Construction

ENKA’s global solutions spanthe entire project life cycle:

Engineering,

Fabrication,

Procurement,

Construction,

Commissioning and start-up,

Operation and management.

The fields of Engineering & Construction activities are;

• Oil & Gas Facilities, Pipelines

• Petrochemical Plants

• Power Plants

• Industrial Plants

• Airports, Harbors, and Offshore Works

• Motorways, Bridges, and Tunnels

• New Towns and Housing Complexes



Backlog as of June 30th, 2020

Special Projects

Serbia

Kazakhstan

Russia

Iraq

Turkey

Bahamas

Others

Country

Total

Backlog

2.535


21,4

20,5

15,9

15,4

8,3

7,8

4,3

6,4

%

100

541

519

404

390

210

199

108

164



Selected Projects Under Construction

Samawa and Dhi Qar Combined Cycle Power Plant Projects

Job Owner : Ministry of Electricity

Location : Samawa (293 Km Northwest of Basra)Nasiriyah (230 Km Northwest of Basra)

ENKA Share : USD 505 Million (1st Phases)

ENKA, with its partner General Electric, will design and build the Samawa and Dhi QarCombined Cycle Power Plants, which will add 750 MW each to the Iraqi Grid.

ENKA’s scope: Engineering, procurement of balance of plant (BOP), construction, erection,commissioning and start-up of the power plant, whereas GE will provide the power islandequipment (i.e. steam turbine generator (STG), heat recovery steam generator (HRSG), aircooled condenser (ACC), and main transformers), distributed control system (DCS) andswitchyard, will also be responsible for the plant performance tests.

The financing of the projects is arranged by UK Export Finance (UKEF).




PJSC Nizhnekamskneftekhim 495 MW CCGT-TPP

Job Owner : PJSC Nizhnekamskneftekhim, a member of TAIF Group

Location : Nizhnekamsk, Republic of Tatarstan - Russia

Siemens signed a contract for building 495 MW natural gas fired combined cyclepower plant on a turnkey basis in Tatarstan.

The contract amount is EUR 350 million and under the cooperation agreement withSiemens, ENKA’s share as the EPC contractor is about EUR 245 million.

The power plant is expected to be operative in May 2021.




FGP 3GP Mechanical, Electrical & Instrumentation Installation Works Tengiz, Kazakhstan

Job owner : TengizchevroilContractor : Senimdi Kurylys

(Bechtel – ENKA Joint Venture with equal shares)

Senimdi Kurylys LLP has been awarded a contract for mechanical, electrical and instrumentation installation works in Tengiz, Kazakhstan.

The Client is Tengizchevroil (TCO), which operates and develops Tengiz oil field, a joint venture (JV) with shares owned by Chevron (50%), ExxonMobil (25%), KazMunayGas (20%) and LukArco (5%).

Contract commenced in May 2018 with a project duration of 45 months.

The project will increase the Tengiz oil field’s annual oil production capacity by an additional 12 million tons.




Kazan 250 MW Combined Cycle Power Plant Kazan, Tatarstan, Russian Federation

Job owner : PJSC Kazanorgsintez (Member of the TAIF Group)

In October 2019, Siemens signed a contract with PJSC Kazanorgsintez, a member of theTAIF Group, for the delivery, installation, and commissioning of one SGT5-2000E gasturbine, one SST-600 steam turbine, one heat recovery steam generator and all associatedsystems for a 250 MW Combined Cycle Power Plant in Kazan (KOS Project) in Tatarstan inthe Russian Federation. ENKA has a “Cooperation Agreement” with Siemens regarding theconstruction of the plant.

Within the framework of this “Cooperation Agreement” ENKA is to perform the engineering,procurement and construction (EPC) works. ENKA will also be responsible forcommissioning. Siemens will supply the gas and steam turbines.

It is anticipated that the basic design documentation package will receive RussianFederation state expertise approval in November 2020 and that construction work willcommence in December 2020. The plant is due to start operating in March 2023.

Contract price (ENKA’s share): EUR 182 Million




Morava Corridor Motorway Project Pojate – Preljina, Serbia

Job owner : Government of the Republic of Serbia Ministry of Construction,Transport and Infrastructure

ENKA and its joint venture partner Bechtel have been selected by the Government of theRepublic of Serbia to design and build the 112 km Morava Corridor Motorway Project whichwill connect central Serbia with Pan-European Corridors 10 and 11.

The construction of the motorway will start in early 2020. Under the contract terms andconditions, each individual section of the motorway will be completed within less than 2.5years during the course of a total construction period of four years.

The scope of works includes 78 bridges, 24 overpasses, 12 underpasses, over 20 million m3

of excavations, over 17 million m3 of earth filling, 490,000 m3 of concrete, 1.7 million m3 ofsubbase, 1.1 million tons of asphalt and 460 km of guardrail installation.

Contract price: EUR 745 Million + Indirect Costs




St. Petersburg High-Technological Multifunctional Medical Complex (HMMC)Russian Federation

Job owner : LLC MMC SOGAZ Medical Technologies / Limited Liability Company“Constructiv”

ENKA commenced work in 2019 on design and construction of a High-TechnologyMultifunctional Medical Complex (HMMC) Project in St. Petersburg in Russia.

The first phase comprises the construction of temporary site facilities and utilities, top soilremoval and excavation works, the construction of perimeter walls (piling, concrete andpanel works), the sublayers of the foundations and drainage works. For the remainingworks, a contract is due to be signed in April 2020.

The medical complex, which is scheduled to start operating in 2022, will not only be one ofthe most advanced of its kind in Russia, but will also be one of the three best equipped andmost multifunctional medical institutions in the world.




Marine Works in Prince George Wharf, Nassau, the Bahamas

Job owner : Nassau Cruise Port Limited (NCPL)Contractor : ENKA Construction and Development B.V.

NCPL proposes to reinvigorate the current tourism infrastructure in Nassau by boosting thecruise ship arrivals and drawing visitors from the vessels into Nassau. The current cruiseterminal functions as an official port of entry and is located near the western entrance ofNassau Harbor (the Harbor), a naturally formed harbor between New Providence andParadise Island.

The project site is located in Nassau Harbor on the northeastern face of the island of NewProvidence of the Bahamas, north of Nassau’s downtown area. The harbor and its navigationchannel are used by many ships for shelter and storage and is most notably visited on aregular basis by numerous cruise ships. The project include all existing berths, wharves,connecting structures, dolphins, surrounding waters for land reclamation, and dredging.

Contract price: USD 108 Million



Real Estate Portfolio

Class A Office AreaRetail Area *5 Star Hotel

TYPE

370.000 m2360.000 m2235 Rooms

SIZE (NLA)

90%96%

**

OCCUPANCY

USD 570/m2/yearUSD 230/m2/year

**

RATE

All assets are located in Moscow, except 1 shopping center which is located in St.Petersburg.

* During Apr and May 2020 all stores, except hypermarkets, pharmacies, mobile operators andpet shops were closed due to Covid-19. In Moscow malls opened in the beginning of June butentertainment areas, cinemas and fitness areas were not opened in the second quarter.

** Occupancy and rate of rooms of the hotel may vary daily.



1

3

2

46

7

5

9

13-14

1512

1 Leningradsky2 Kuntsevo Plaza3 Maryina Roshcha4 Kashirskaya5 Sevastopolsky6 Vernadskogo7 Belyaevo8 Podolsk9 Orekhovo-Zuyevo10 Sergiev Posad11 Pionerski (St. Petersburg)

Investments in RussiaRETAIL ( 360.000 m2 )

12 Naberezhnaya Tower13 Paveletskaya14 Moskva Krasnye Holmy15 MosENKA

OFFICE ( 370.000 m2 )



Real Estate Revenue & EBITDA

2Q 2020201920182017201620152014

YEAR

147346329319319382485

RENTAL REVENUE

98213204193223267337

EBITDA

66,7%61,6%62,0%60,5%69,9%69,9%69,6%

EBITDA MARGIN

All figures given above are in Million US dollars



Real Estate – Some Tenants



Real Estate New Investments

2 Kashirskaya PlazaMultifunctional Trade Center

Total Investment: USD 232 MillionTotal Area: 196.750 m2, Net Leasable Area: 70.000 m2

Completion: 2018

1 Kuntsevo Multifunctional Trade & Business Center

Total Investment: USD 484 MillionTotal Area: 245.000 m2, Net Leasable Area: 90.000 m2

29.000 m2 Office and 61.000 m2 Retail

Completion: 2015

Investment projects of ENKA TC (Fully owned by ENKA)



Real Estate Further InvestmentsInvestment projects of ENKA TC (Fully owned by ENKA)

1Existing shopping center is planned to be demolished.Total Investment: USD 335 MillionTotal Area: 245.000 m2, Net Leasable Area: 105.000 m2

3 Leningradsky PravaberejnayaOffice Center2 Vernadskogo

Office Center

A-Class offices including Multi-storey Car Park ProjectTotal Investment: USD 40 Million, will be started in 2020Total Area: 29.780 m2

Net Leasable Area: 20.600 m2 & car park

A-Class offices including Multi-storey Car Park ProjectTotal Investment: USD 80 Million, will be started in 2022Total Area: 64.800 m2

Net Leasable Area: 22.000 m2 & car park

Maryina RoshchaShopping Mall



Power Generation Overview3 gas-fired combined cycle power plants (total 3.854 MW)

Gebze 1.554 MWAdapazarı 777 MWIzmir 1.523 MW

Annual generation is 32 Billion Kwh net and the annual natural gas consumption isaround 6.5 Billion CBM,

Capability of meeting 11% of Turkey’s total demand, since Turkey’s consumption in 2018was 292 Billion Kwh and developed under the ‘BUILD-OWN-OPERATE’ programme,

Proximity to main electricity load centers, proven and environmentally friendlytechnology.

Will still be operative and owned by ENKA after 16 years from 2019 and the plants have35 – 40 years of economic life.

Following expiry of the Electricity Sale Agreements with EÜAŞ, Adapazarı and GebzeCombined Cycle Power Plants developed under the BO Scheme and owned by ENKAhave suspended their generation as of February 2019 and similarly Izmir CombinedCycle Power Plant has suspended its generation as of August 2019. A publicannouncement shall be made when the generation resumes.



Power Generation Debt Funding

Total Debt (75%)Total Equity (25%)Total Project Cost

COMMITTED AMOUNTS

1.530510

2.040

TOTAL

US EXIM, USAOPIC, USDHERMES, GERMANYOND, BELGIUMOTHER BANKS

PROJECT FINANCE TOTAL

86030018512560

TOTAL 1.530

All outstanding project finance loans have been fully paid back in 2013



Turkey’s Energy Consumption in 2019

CoalHydro Natural GasWindGeothermalOthersInternational (Net)Total Consumption

SOURCES

112,856 39.088,571 30.654,817 18.921,491 7.48,229 2.84,191 1.5(558) (0.2)

289,596 100

Million Kwh %

Source: Energy Exchange Istanbul (www.epias.com.tr)

http://www.epias.com.tr/



Turkey’s Energy Demand

128 127 133 141 150 161 175 190 198 194 210 230 242 246 255 264 275 290 292 290-4%

-2%

0%

2%

4%

6%

8%

10%

12%

75

125

175

225

275

BILLON KWH CHANGE

İNŞAAT VE SANAYİ A.Ş.Balmumcu Mah., Zincirlikuyu Yolu No: 10, 34349

Beşiktaş / İstanbul

Tel: +90 (212) 376 10 00 (pbx) Fax: +90 (212) 272 88 69

ENGINEERING FOR A BETTER FUTURE · 790 MW Rijnmond Natural Gas Fired CCPP has been completed in 22...

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