2008 First Quarter Comparative Financial Results

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General Evaluation • In the first quarter of 2008, there was a turbulance in the financial markets. • ISE National-100 index, which was at 55.538 points level at the end of 2007, went through a declining trend starting from the first days of the new year, to close January at 42.698 points level, resulting in a 23% loss. After following a relatively horizontal path, and even registering a slight rise in February, the index started to decrease again in March and closed the month at 39.015 points level. • In March, the foreign exchange market fluctuated significantly as well. The USD/TRY rate which was at 1,18 level at the end of February jumped to 1,28 level at the end of March, resulting in a 8,5% increase. In the same period Euro/USD cross rate also rose from 1,51 to 1,58, thus the rate of appreciation of Euro against TRY was 13,4%. • These devolopments in the financial markets, especially the increase in the foreign exchange rates, have soon started to show their reflections on the macro economic parameters; particularly the inflation rate started to increase. As a result, in the following period, the Central Bank felt the necessity to declare that the official inflation target lost its validity. As a matter of fact, in mid-May the Central Bank increased its overnight borrowing rate -which is the main policy tool against inflation – by 50 basis points. All these developments create the risk that the growth rate of the economy for the rest of the year can be quite below the levels previously anticipated.

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General Evaluation • Agricultural input and output prices, which rose significantly in 2007, due to both the negative impact coming from the supply side as a result of the increase in commodity -particularly oil- prices, and the increase in the global demand for agricultural products, exhibited a further rise in the first quarter of 2008. These factors also create negative impact on domestic agricultural production and agricultural product prices. • Even under these circumstances, Tekfen Group managed to increase its revenues and profitability in the first quarter of 2008 when compared to same period in 2007. • As well known, the focus of Tekfen Holding’s activities is on Contracting (particularly projects abroad), Agri-Industry (especially fertilizer production and terminal services) and Real Estate Development (construction for residential and commercial purposes). • As for Tekfen Contracting Group, the rise in oil prices starting from early 2007 stimulated the infrastructural investments in oil and gas rich countres, which led to increase in both the volume of projects taken and the costs of those projects. Although, starting from early 2007, all the bids have been given taking the realized and potential cost increases into account, the negative impact coming from previously undertaken projects, showed its reflections on the Contracting Group’s financial results for the first quarter of 2008. Hovewer, as the current projects are completed, this negative impact will gradually fade out. Nevertheless, delays in engineering and material procurement services supplied by the third parties, in some projects -especially in those assumed in Libya and Saudi Arabia- affected the activities, and as a result revenues, negatively. Yet, the EBITDA margin was realized in line with the target. It is expected that the above mentioned delays will be compensated within 2008 and targeted revenues will be attained. 3

General Evaluation • The first quarter of 2008 was a period of success for Tekfen Agri-Industry Group. The reflection of the significant increase in fertilizer prices in international markets and in domestic prices, as well as the relatively lower increase in costs when compared to the increase in sales prices, led to an increase in the profitability of the Group. In spite of the contraction in domestic fertilizer consumption due to rising prices and draught, Tekfen Agri-Industry Group managed to keep its sales in terms of quantity. The main reasons behind this success are strong relations established through years with raw materials and fertilizer suppliers, superior logistics infrastructure and distribution network compared to its competitors and ability to increase market share thanks to efficient marketing strategies. • In spite of the fluctuations in the financial markets as mentioned above, as well as the signs of recession in the real estate market accompanied by increase in prices, Tekfen Real Estate Development Group managed to be immune to this negative macro conjuncture, thanks to the aboveaverage customer segment it addresses. Moreover, in an environment where prices of residential buildings decreased by 15-20%, office prices managed to keep their level and given the fact that the two major current projects of the Group are in office construction area, Tekfen Real Estate Development Group is expected not to be affected by adverse market conditions significantly.

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Main Financial Indicators Basic Balance Sheet Items (Million TRY)

31 Dec 07

31 Mar 08

Change(%)***

2.421

2.635

9

1.217 01 Jan 31 Mar 07

1.325 01 Jan31 Mar 08

9

537 94

659 183

23 94

Operating Profit

53

144

172

EBITDA*

63

162

157

Profit Before Tax From Continuing Operations Net Profit From Continuing Operations

55 39

148 116

166 202

155**

0

-100,0

193

116

-40

Total Assets Total Shareholders’ Equity Basic Income Statement Items (Million TRY) Sales Revenue Gross Profit

Profit After Tax for the Year from Discon’d Op. Net Profit for the Period

Change (%)

* Earnings before interest, tax, depreciation and amortization ** Sales revenue of Tekfenbank shares. *** In this presentation, figures expressing magnitude are rounded to integers. % change and margin figures, on the other hand, are computed by using the exact (not-rounded) magnitude figures. For this reason, % change and margin figures that are computed by dividing the magnitudes in the presentation may differ to some extent from those presented in the graphs and tables. 5

Sales Revenue Consolidated Sales Revenue (Million TRY)

Sales Revenue by Segment (Million TRY)

659

2007/1Q 2008/1Q

537 370 279 269

243

2 2007/1Q

9

13

2008 /1Q Contracting

Agri-industry

Real Estate

Other

Sales Revenue Breakdown (%)

2007/1Q

2008/1Q

0,5% 2,5%

1,3% 1,7% 40,9%

45,2%

6

11

51,8%

56,1%

EBITDA Consolidated EBITDA (Million TRY)

EBITDA by Segment (Million TRY)

162 2007/1Q

126

2008/1Q

63 32

35

36 0

2007/1Q

Contracting

2008/1Q

EBITDA Breakdown (%)

2008/1Q 0,8% 77,8%

7

-0,3%

21,7%

Agri-industry

1

Real Estate

-5

0

Other

EBITDA Margin

Consolidated EBITDA Margin (%)

EBITDA Margin by Segment (%)

34,0 11,4 13,0

14,7

2007/1Q

9,0

15,8

2008/1Q

24,5

-4,2

11,7

2007/1Q

8

2008/1Q

Contracting

Agri-industry

Real Estate

-36,6

Other

Net Profit from Continuing Operations

Net Profit From Con. Operations (Million TRY)

Net Profit from Continuing Operations by Segment (Million TRY)

116

39

92

2007/1Q 2008/1Q

27

23 10

16 0 -2

2007/1Q

9

2008/1Q

Contracting

Agri-industry

Real Estate

-11 Other

Continued Operations Net Profit Margin

Consolidated Cont’d Op. Profit Margin (%)

17,7

Continued Operations Profit Margin by Segment (%) 2007/1Q 2008/1Q

8,2 3,7

7,2

150,5

10,9 24,9

15,1 -28,1

2007/1Q

10

2008/1Q

Contracting

Agri-industry

Real Estate

-85,2

Other

Net Profit

Consolidated Net Profit (Million TRY)

Net Profit by Segment (Million TRY)

193

144*

2007/1Q 2008/1Q

155*

23

39 2007/1Q

92

116

2008/1Q

27 10

Contracting

0 Agri-industry

* Net income from discontinued operations (Banking) is included in “Other” segment.

11

17 -2

Real Estate

Other

Agri-Industry Financial Details

Million TRY

REVENUES EBITDA NET PROFIT 2007/1Q 2008/1Q 2007/1Q 2008/1Q 2007/1Q 2008/1Q AGRICULTURE 231 360 29 122 23 90 TERMINAL 12 10 7 4 4 2 TOTAL 243 370 35 126 27 92

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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.

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Contact Information For General Questions and Requests for Reports: Çağlar Gülveren, Investor Relations and Corporate Governance Coordinator e-mail: [email protected] Tel: +90 212 359 3420 For Questions Regarding Segmental Information: Contracting Group: Osman Birgili, Tekfen Construction Senior Vice President e-mail: [email protected] Tel: +90 212 359 3552 Agri-Industry Group: Esin Mete, Holding Vice President e-mail: [email protected] Tel: +90 212 357 0193 Real-Estate Development Group: Mehmet Erktin, Holding Vice President e-mail: [email protected] Tel: +90 212 357 1010

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